U.S. Congress - Text of S.3036 as Placed on Calendar Senate Lieberman-Warner Climate Security Act of 2008
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Donate NowS.3036 - Lieberman-Warner Climate Security Act of 2008
A bill to direct the Administrator of the Environmental Protection Agency to establish a program to decrease emissions of greenhouse gases, and for other purposes.
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S 3036 PCSCommentsClose CommentsPermalink
To direct the Administrator of the Environmental Protection Agency to establish a program to decrease emissions of greenhouse gases, and for other purposes.CommentsClose CommentsPermalink
May 20, 2008
Mrs. BOXER introduced the following bill; which was read the first timeCommentsClose CommentsPermalink
May 21, 2008
Read the second time and placed on the calendarCommentsClose CommentsPermalink
To direct the Administrator of the Environmental Protection Agency to establish a program to decrease emissions of greenhouse gases, and for other purposes.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Lieberman-Warner Climate Security Act of 2008'.CommentsClose CommentsPermalink
(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink
Sec. 2. Findings.CommentsClose CommentsPermalink
Sec. 3. Purposes.CommentsClose CommentsPermalink
Sec. 4. Definitions.CommentsClose CommentsPermalink
TITLE I--CAPPING GREENHOUSE GAS EMISSIONS
Subtitle A--Tracking Emissions
Sec. 1101. Purpose.CommentsClose CommentsPermalink
Sec. 1102. Definitions.CommentsClose CommentsPermalink
Sec. 1103. Reporting requirements.CommentsClose CommentsPermalink
Sec. 1104. Data quality and verification.CommentsClose CommentsPermalink
Sec. 1105. Federal greenhouse gas registry.CommentsClose CommentsPermalink
Sec. 1106. Enforcement.CommentsClose CommentsPermalink
Subtitle B--Reducing Emissions
Sec. 1201. Emission allowance account.CommentsClose CommentsPermalink
Sec. 1202. Compliance obligation.CommentsClose CommentsPermalink
Sec. 1203. Penalty for noncompliance.CommentsClose CommentsPermalink
Sec. 1204. Rulemaking.CommentsClose CommentsPermalink
TITLE II--MANAGING AND CONTAINING COSTS EFFICIENTLY
Subtitle A--Trading
Sec. 2101. Sale, exchange, and retirement of emission allowances.CommentsClose CommentsPermalink
Sec. 2102. No restriction on transactions.CommentsClose CommentsPermalink
Sec. 2103. Allowance transfer system.CommentsClose CommentsPermalink
Sec. 2104. Allowance tracking system.CommentsClose CommentsPermalink
Subtitle B--Banking
Sec. 2201. Indication of calendar year.CommentsClose CommentsPermalink
Sec. 2202. Effect of time.CommentsClose CommentsPermalink
Subtitle C--Borrowing
Sec. 2301. Regulations.CommentsClose CommentsPermalink
Sec. 2302. Term.CommentsClose CommentsPermalink
Sec. 2303. Repayment with interest.CommentsClose CommentsPermalink
Subtitle D--Offsets
Sec. 2401. Outreach initiative on revenue enhancement for agricultural producers.CommentsClose CommentsPermalink
Sec. 2402. Establishment of domestic offset program.CommentsClose CommentsPermalink
Sec. 2403. Eligible offset project types.CommentsClose CommentsPermalink
Sec. 2404. Project initiation and approval.CommentsClose CommentsPermalink
Sec. 2405. Offset verification and issuance of allowances.CommentsClose CommentsPermalink
Sec. 2406. Tracking of reversals for sequestration projects.CommentsClose CommentsPermalink
Sec. 2407. Examinations.CommentsClose CommentsPermalink
Sec. 2408. Timing and the provision of offset allowances.CommentsClose CommentsPermalink
Sec. 2409. Offset registry.CommentsClose CommentsPermalink
Sec. 2410. Environmental considerations.CommentsClose CommentsPermalink
Sec. 2411. Program review.CommentsClose CommentsPermalink
Sec. 2412. Retail carbon offsets.CommentsClose CommentsPermalink
Subtitle E--International Emission Allowances
Sec. 2501. Use of international emission allowances.CommentsClose CommentsPermalink
Sec. 2502. Regulations.CommentsClose CommentsPermalink
Sec. 2503. Facility certification.CommentsClose CommentsPermalink
Subtitle F--Carbon Market Efficiency Board
Sec. 2601. Purposes.CommentsClose CommentsPermalink
Sec. 2602. Establishment of Carbon Market Efficiency Board.CommentsClose CommentsPermalink
Sec. 2603. Duties.CommentsClose CommentsPermalink
Sec. 2604. Powers.CommentsClose CommentsPermalink
Sec. 2605. Estimate of costs to economy of limiting greenhouse gas emissions.CommentsClose CommentsPermalink
TITLE III--ALLOCATING AND DISTRIBUTING ALLOWANCES
Subtitle A--Auctions
Sec. 3101. Allocation for early auctions.CommentsClose CommentsPermalink
Sec. 3102. Allocation for annual auctions.CommentsClose CommentsPermalink
Subtitle B--Early Action
Sec. 3201. Allocation.CommentsClose CommentsPermalink
Sec. 3202. Distribution.CommentsClose CommentsPermalink
Subtitle C--States
Sec. 3301. Allocation for energy savings.CommentsClose CommentsPermalink
Sec. 3302. Allocation for States with programs that exceed Federal emission reduction targets.CommentsClose CommentsPermalink
Sec. 3303. General allocation.CommentsClose CommentsPermalink
Sec. 3304. Allocation for mass transit.CommentsClose CommentsPermalink
Subtitle D--Electricity Consumers
Sec. 3401. Allocation.CommentsClose CommentsPermalink
Sec. 3402. Distribution.CommentsClose CommentsPermalink
Sec. 3403. Use.CommentsClose CommentsPermalink
Sec. 3404. Reporting.CommentsClose CommentsPermalink
Subtitle E--Natural Gas Consumers
Sec. 3501. Allocation.CommentsClose CommentsPermalink
Sec. 3502. Distribution.CommentsClose CommentsPermalink
Sec. 3503. Use.CommentsClose CommentsPermalink
Sec. 3504. Reporting.CommentsClose CommentsPermalink
Subtitle F--Bonus Allowances for Carbon Capture and Geological Sequestration
Sec. 3601. Allocation.CommentsClose CommentsPermalink
Sec. 3602. Qualifying projects.CommentsClose CommentsPermalink
Sec. 3603. Distribution.CommentsClose CommentsPermalink
Sec. 3604. 10-Year limit.CommentsClose CommentsPermalink
Sec. 3605. Exhaustion of bonus allowance account.CommentsClose CommentsPermalink
Subtitle G--Domestic Agriculture and Forestry
Sec. 3701. Allocation.CommentsClose CommentsPermalink
Sec. 3702. Agricultural and forestry greenhouse gas management research.CommentsClose CommentsPermalink
Sec. 3703. Distribution.CommentsClose CommentsPermalink
Subtitle H--International Forest Protection
Sec. 3801. Findings.CommentsClose CommentsPermalink
Sec. 3802. Definition of forest carbon activities.CommentsClose CommentsPermalink
Sec. 3803. Allocation.CommentsClose CommentsPermalink
Sec. 3804. Definition and eligibility requirements.CommentsClose CommentsPermalink
Sec. 3805. International forest carbon activities.CommentsClose CommentsPermalink
Sec. 3806. Reviews and discount.CommentsClose CommentsPermalink
Subtitle I--Transition Assistance
Sec. 3901. General allocation and distribution.CommentsClose CommentsPermalink
Sec. 3902. Distributing emission allowances to owners and operators of fossil fuel-fired electric power generating facilities.CommentsClose CommentsPermalink
Sec. 3903. Distributing additional emission allowances to rural electric cooperatives.CommentsClose CommentsPermalink
Sec. 3904. Distributing emission allowances to owners and operators of energy intensive manufacturing facilities.CommentsClose CommentsPermalink
Sec. 3905. Distributing emission allowances to owners and operators of facilities and other entities that produce or import petroleum-based fuel.CommentsClose CommentsPermalink
Sec. 3906. Distributing emission allowances to hydrofluorocarbon producers and importers.CommentsClose CommentsPermalink
Subtitle J--Reducing Methane Emissions From Landfills and Coal Mines
Sec. 3907. Allocation.CommentsClose CommentsPermalink
Sec. 3908. Distribution.CommentsClose CommentsPermalink
TITLE IV--AUCTIONS AND USES OF AUCTION PROCEEDS
Subtitle A--Funds
Sec. 4101. Establishment.CommentsClose CommentsPermalink
Sec. 4102. Amounts in Funds.CommentsClose CommentsPermalink
Subtitle B--Climate Change Credit Corporation
Sec. 4201. Establishment.CommentsClose CommentsPermalink
Sec. 4202. Applicable laws.CommentsClose CommentsPermalink
Sec. 4203. Board of directors.CommentsClose CommentsPermalink
Sec. 4204. Review and audit by Comptroller General.CommentsClose CommentsPermalink
Subtitle C--Auctions
Sec. 4301. Early auctions.CommentsClose CommentsPermalink
Sec. 4302. Annual auctions.CommentsClose CommentsPermalink
Subtitle D--Energy Technology Deployment
Sec. 4401. General allocations.CommentsClose CommentsPermalink
Sec. 4402. Zero- or low-carbon energy technologies deployment.CommentsClose CommentsPermalink
Sec. 4403. Advanced coal and sequestration technologies program.CommentsClose CommentsPermalink
Sec. 4404. Fuel from cellulosic biomass.CommentsClose CommentsPermalink
Sec. 4405. Advanced technology vehicles manufacturing incentive program.CommentsClose CommentsPermalink
Sec. 4406. Sustainable energy program.CommentsClose CommentsPermalink
Subtitle E--Energy Consumers
Sec. 4501. Proportions of funding availability.CommentsClose CommentsPermalink
Sec. 4502. Rural energy assistance program.CommentsClose CommentsPermalink
Subtitle F--Climate Change Worker Training Program
Sec. 4601. Funding.CommentsClose CommentsPermalink
Sec. 4602. Purposes.CommentsClose CommentsPermalink
Sec. 4603. Establishment.CommentsClose CommentsPermalink
Sec. 4604. Activities.CommentsClose CommentsPermalink
Sec. 4605. Worker protections and nondiscrimination requirements.CommentsClose CommentsPermalink
Sec. 4606. Workforce training and safety.CommentsClose CommentsPermalink
Subtitle G--Adaptation Program for Natural Resources in United States and Territories
Sec. 4701. Definitions.CommentsClose CommentsPermalink
Sec. 4702. Adaptation fund.CommentsClose CommentsPermalink
Subtitle H--International Climate Change Adaptation and National Security Program
Sec. 4801. Findings.CommentsClose CommentsPermalink
Sec. 4802. Purposes.CommentsClose CommentsPermalink
Sec. 4803. Establishment.CommentsClose CommentsPermalink
Sec. 4804. Funding.CommentsClose CommentsPermalink
Subtitle I--Emergency Firefighting Programs
Sec. 4901. Findings.CommentsClose CommentsPermalink
Sec. 4902. Bureau of Land Management emergency firefighting program.CommentsClose CommentsPermalink
Sec. 4903. Forest Service emergency firefighting program.CommentsClose CommentsPermalink
TITLE V--ENERGY EFFICIENCY
Subtitle A--Appliance Efficiency
Sec. 5101. Residential boilers.CommentsClose CommentsPermalink
Sec. 5102. Regional variations in heating or cooling standards.CommentsClose CommentsPermalink
Subtitle B--Building Efficiency
Sec. 5201. Updating State building energy efficiency codes.CommentsClose CommentsPermalink
Sec. 5202. Conforming amendment.CommentsClose CommentsPermalink
TITLE VI--GLOBAL EFFORT TO REDUCE GREENHOUSE GAS EMISSIONS
Sec. 6001. Definitions.CommentsClose CommentsPermalink
Sec. 6002. Purposes.CommentsClose CommentsPermalink
Sec. 6003. International negotiations.CommentsClose CommentsPermalink
Sec. 6004. Interagency review.CommentsClose CommentsPermalink
Sec. 6005. Presidential determinations.CommentsClose CommentsPermalink
Sec. 6006. International reserve allowance program.CommentsClose CommentsPermalink
Sec. 6007. Adjustment of international reserve allowance requirements.CommentsClose CommentsPermalink
TITLE VII--REVIEWS AND RECOMMENDATIONS
Sec. 7001. National Academy of Sciences Reviews.CommentsClose CommentsPermalink
Sec. 7002. Environmental Protection Agency review.CommentsClose CommentsPermalink
Sec. 7003. Environmental Protection Agency recommendations.CommentsClose CommentsPermalink
Sec. 7004. Presidential recommendations.CommentsClose CommentsPermalink
Sec. 7005. Adaptation assessments and plan.CommentsClose CommentsPermalink
Sec. 7006. Study by Administrator of aviation sector greenhouse gas emissions.CommentsClose CommentsPermalink
TITLE VIII--FRAMEWORK FOR GEOLOGICAL SEQUESTRATION OF CARBON DIOXIDE
Sec. 8001. National drinking water regulations.CommentsClose CommentsPermalink
Sec. 8002. Assessment of geological storage capacity for carbon dioxide.CommentsClose CommentsPermalink
Sec. 8003. Study of the feasibility relating to construction of pipelines and geological carbon dioxide sequestration activities.CommentsClose CommentsPermalink
Sec. 8004. Liabilities for closed geological storage sites.CommentsClose CommentsPermalink
TITLE IX--MISCELLANEOUS
Sec. 9001. Paramount interest waiver.CommentsClose CommentsPermalink
Sec. 9002. Administrative procedure and judicial review.CommentsClose CommentsPermalink
Sec. 9003. Retention of State authority.CommentsClose CommentsPermalink
Sec. 9004. Tribal authority.CommentsClose CommentsPermalink
Sec. 9005. Rocky Mountain Centers for Study of Coal Utilization.CommentsClose CommentsPermalink
Sec. 9006. Sun grant center research on compliance with Clean Air Act.CommentsClose CommentsPermalink
Sec. 9007. Authorization of appropriations.CommentsClose CommentsPermalink
TITLE X--CONTROL OF HYDROFLUOROCARBON CONSUMPTION
Sec. 10001. Applicability.CommentsClose CommentsPermalink
Sec. 10002. Definitions.CommentsClose CommentsPermalink
Sec. 10003. Cap on hydrofluorocarbon consumption and importation into United States.CommentsClose CommentsPermalink
Sec. 10004. Hydrofluorocarbon consumption allowance account.CommentsClose CommentsPermalink
Sec. 10005. Allocation of hydrofluorocarbon consumption allowances.CommentsClose CommentsPermalink
Sec. 10006. Compliance obligation.CommentsClose CommentsPermalink
Sec. 10007. Sale, exchange, and other uses of hydrofluorocarbon consumption allowances.CommentsClose CommentsPermalink
Sec. 10008. Allowance transfer system.CommentsClose CommentsPermalink
Sec. 10009. Banking and borrowing.CommentsClose CommentsPermalink
Sec. 10010. Hydrofluorocarbon destruction allowances.CommentsClose CommentsPermalink
TITLE XI--AMENDMENTS TO CLEAN AIR ACT
Sec. 11001. National recycling and emission reduction program.CommentsClose CommentsPermalink
Sec. 11002. Servicing of motor vehicle air conditioners.CommentsClose CommentsPermalink
Sec. 11003. Carbon dioxide reduction.CommentsClose CommentsPermalink
SEC. 2. FINDINGS.
Congress finds that--CommentsClose CommentsPermalink
(1) unchecked global warming poses a significant threat to--CommentsClose CommentsPermalink
(A) the national security and economy of the United States;CommentsClose CommentsPermalink
(B) public health and welfare in the United States;CommentsClose CommentsPermalink
(C) the well-being of other countries; andCommentsClose CommentsPermalink
(D) the global environment;CommentsClose CommentsPermalink
(2) under the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992, the United States is committed to stabilizing greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous anthropogenic interference with the climate system;CommentsClose CommentsPermalink
(3) according to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, stabilizing greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous interference with the climate system will require a global effort to reduce anthropogenic greenhouse gas emissions worldwide by 50 to 85 percent below 2000 levels by 2050;CommentsClose CommentsPermalink
(4) prompt, decisive action is critical, since global warming pollutants can persist in the atmosphere for more than a century;CommentsClose CommentsPermalink
(5) the ingenuity of the people of the United States will allow the United States to become a leader in curbing global warming;CommentsClose CommentsPermalink
(6) it is possible and desirable to cap greenhouse gas emissions, from sources that together account for the majority of those emissions in the United States, at or slightly below the current level in 2012, and to lower the cap each year between 2012 and 2050, on the condition that the system includes--CommentsClose CommentsPermalink
(A) cost containment measures;CommentsClose CommentsPermalink
(B) periodic review of requirements;CommentsClose CommentsPermalink
(C) an aggressive program for deploying advanced energy technology;CommentsClose CommentsPermalink
(D) programs to assist low- and middle-income energy consumers; andCommentsClose CommentsPermalink
(E) programs to mitigate the impacts of any unavoidable global climate change;CommentsClose CommentsPermalink
(7) Congress may need to update the emissions caps in order to account for continuing scientific data and steps taken, or not taken, by foreign countries;CommentsClose CommentsPermalink
(8) accurate emission data and timely compliance with the requirements of the greenhouse gas emission reduction and trading program established under this Act are needed to ensure that reductions are achieved and to provide equity, efficiency, and openness in the market for allowances subject to the program;CommentsClose CommentsPermalink
(9) additional policies external to a cap-and-trade program may be required, including with respect to--CommentsClose CommentsPermalink
(A) the transportation sector, where reducing greenhouse gas emissions requires changes in vehicles, in fuels, and in consumer behavior; andCommentsClose CommentsPermalink
(B) the built environment, where reducing direct and indirect greenhouse gas emissions requires changes in buildings, appliances, lighting, heating, cooling, and consumer behavior;CommentsClose CommentsPermalink
(10) significant and sustained domestic investments are required to support an aggressive program for developing and deploying advanced technologies to reduce greenhouse gas emissions;CommentsClose CommentsPermalink
(11) all, or virtually all, emissions of greenhouse gases from the combustion of natural gas in the United States should be reduced through the inclusion in a cap-and-trade system of entities that sell natural gas in the United States;CommentsClose CommentsPermalink
(12) including natural gas in a cap-and-trade system in the United States should be carried out in a way that minimizes, to the extent feasible, the number of entities required to submit emission allowances for the natural gas sold by the entities;CommentsClose CommentsPermalink
(13) including natural gas in a cap-and-trade system in the United States promotes substantial reductions in total United States greenhouse gas emissions while also minimizing, to the extent feasible, the activities within the industrial sector that necessitate the submission of emission allowances;CommentsClose CommentsPermalink
(14) emissions of sulfur dioxide, nitrogen oxides, and mercury to the atmosphere from coal-fired electric power generating facilities in the United States inflicts harm on the public health, economy, and natural resources of the United States;CommentsClose CommentsPermalink
(15) fossil fuel-fired electric power generating facilities emit approximately 67 percent of the total sulfur dioxide emissions, 23 percent of the total nitrogen oxide emissions, 40 percent of the total carbon dioxide emissions, and 40 percent of the total mercury emissions in the United States;CommentsClose CommentsPermalink
(16) while the reductions in emissions of sulfur dioxide, nitrogen oxides, and mercury that will occur in the presence of a declining cap on the greenhouse gas emissions from coal-fired electric power generating facilities are larger than those that would occur in the absence of such a cap, new, stricter Federal limits on emissions of sulfur dioxide, nitrogen oxides, and mercury may still be needed to protect public health; andCommentsClose CommentsPermalink
(17) many existing fossil fuel-fired electric power generating facilities were exempted by Congress from emissions limitations applicable to new and modified units based on an expectation by Congress that, over time, the units would be retired or updated with new pollution control equipment, but many of the exempted facilities nevertheless continue to operate and emit pollutants at relatively high rates and without new pollution control equipment.CommentsClose CommentsPermalink
SEC. 3. PURPOSES.
The purposes of this Act are--CommentsClose CommentsPermalink
(1) to establish the core of a Federal program that will reduce United States greenhouse gas emissions substantially enough between 2007 and 2050 to avert the catastrophic impacts of global climate change; andCommentsClose CommentsPermalink
(2) to accomplish that purpose while preserving robust growth in the United States economy, creating new jobs, and avoiding the imposition of hardship on United States citizens.CommentsClose CommentsPermalink
SEC. 4. DEFINITIONS.
In this Act:CommentsClose CommentsPermalink
(1) ADDITIONAL; ADDITIONALITY- The terms `additional' and `additionality' mean the extent to which reductions in greenhouse gas emissions or increases in sequestration are incremental to business-as-usual, measured as the difference between--CommentsClose CommentsPermalink
(A) baseline greenhouse gas fluxes of an offset project; andCommentsClose CommentsPermalink
(B) greenhouse gas fluxes of the offset project.CommentsClose CommentsPermalink
(2) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.CommentsClose CommentsPermalink
(3) BASELINE- The term `baseline' means the greenhouse gas flux or carbon stock that would have occurred in the absence of an offset project.CommentsClose CommentsPermalink
(4) BIOLOGICAL SEQUESTRATION; BIOLOGICALLY SEQUESTERED- The terms `biological sequestration' and `biologically sequestered' mean--CommentsClose CommentsPermalink
(A) the removal of greenhouse gases from the atmosphere by biological means, such as by growing plants; andCommentsClose CommentsPermalink
(B) the storage of those greenhouse gases in the plants or related soils.CommentsClose CommentsPermalink
(5) CARBON DIOXIDE EQUIVALENT- The term `carbon dioxide equivalent' means, for each greenhouse gas, the quantity of the greenhouse gas that the Administrator determines makes the same contribution to global warming as 1 metric ton of carbon dioxide.CommentsClose CommentsPermalink
(6) CORPORATION- The term `Corporation' means the Climate Change Credit Corporation established by section 4201(a).CommentsClose CommentsPermalink
(7) COVERED FACILITY- The term `covered facility' means--CommentsClose CommentsPermalink
(A) any facility that uses more than 5,000 tons of coal in a calendar year;CommentsClose CommentsPermalink
(B) any facility that is a natural gas processing plant or that produces natural gas in the State of Alaska, or any entity that imports natural gas (including liquefied natural gas);CommentsClose CommentsPermalink
(C) any facility that in any year produces, or any entity that in any year imports, petroleum- or coal-based liquid or gaseous fuel, the combustion of which will emit a group I greenhouse gas, assuming no capture and sequestration of that gas;CommentsClose CommentsPermalink
(D) any facility that in any year produces for sale or distribution, or any entity that in any year imports, more than 10,000 carbon dioxide equivalents of chemicals that are group I greenhouse gas, assuming no capture and destruction or sequestration of that gas; orCommentsClose CommentsPermalink
(E) any facility that in any year emits as a byproduct of the production of hydrochlorofluorocarbons more than 10,000 carbon dioxide equivalents of hydrofluorocarbons.CommentsClose CommentsPermalink
(8) DESTRUCTION- The term `destruction' means the conversion of a greenhouse gas by thermal, chemical, or other means--CommentsClose CommentsPermalink
(A) to another gas with a low- or zero-global warming potential; andCommentsClose CommentsPermalink
(B) for which credit given reflects the extent of reduction in global warming potential actually achieved.CommentsClose CommentsPermalink
(9) EMISSION ALLOWANCE- The term `emission allowance' means an authorization to emit 1 carbon dioxide equivalent of greenhouse gas.CommentsClose CommentsPermalink
(10) EMISSION ALLOWANCE ACCOUNT- The term `Emission Allowance Account' means the aggregate of emission allowances that the Administrator establishes for a calendar year.CommentsClose CommentsPermalink
(11) FACILITY- The term `facility' means--CommentsClose CommentsPermalink
(A) 1 or more buildings, structures, or installations located on 1 or more contiguous or adjacent properties of an entity in the United States; andCommentsClose CommentsPermalink
(B) at the option of the Administrator, any activity or operation that--CommentsClose CommentsPermalink
(i) emits 10,000 carbon dioxide equivalents in any year; andCommentsClose CommentsPermalink
(ii) has a technical connection with the activities carried out at a facility, such as use of transportation fleets, pipelines, transmission lines, and distribution lines, but that is not conducted or located on the property of the facility.CommentsClose CommentsPermalink
(12) FAIR MARKET VALUE- The term `fair market value' means the average market price, in a particular calendar year, of an emission allowance.CommentsClose CommentsPermalink
(13) GEOLOGICAL SEQUESTRATION; GEOLOGICALLY SEQUESTERED- The terms `geological sequestration' and `geologically sequestered' mean the permanent isolation of greenhouse gases, without reversal, in geological formations, in accordance with part C of the Safe Drinking Water Act (
(14) GROUP I GREENHOUSE GAS- The term `group I greenhouse gas' means any of--CommentsClose CommentsPermalink
(A) carbon dioxide;CommentsClose CommentsPermalink
(B) methane;CommentsClose CommentsPermalink
(C) nitrous oxide;CommentsClose CommentsPermalink
(D) sulfur hexafluoride; orCommentsClose CommentsPermalink
(E) a perfluorocarbon.CommentsClose CommentsPermalink
(15) GROUP II GREENHOUSE GAS- The term `group II greenhouse gas' means a hydrofluorocarbon.CommentsClose CommentsPermalink
(16) LEAKAGE- The term `leakage' means--CommentsClose CommentsPermalink
(A) a significant unaccounted increase in greenhouse gas emissions by a facility or entity caused by an offset project that produces an accounted reduction in greenhouse gas emissions, as determined by the Administrator; orCommentsClose CommentsPermalink
(B) a significant unaccounted decrease in sequestration that is caused by an offset project that results in an accounted increase in sequestration, as determined by the Administrator.CommentsClose CommentsPermalink
(17) LOAD-SERVING ENTITY- The term `load-serving entity' means an entity, whether public or private--CommentsClose CommentsPermalink
(A) that has a legal, regulatory, or contractual obligation to deliver electricity to retail consumers; andCommentsClose CommentsPermalink
(B) whose rates and costs are, except in the case of a registered electric cooperative, regulated by a State agency, regulatory commission, municipality, or public utility district.CommentsClose CommentsPermalink
(18) NATURAL GAS PROCESSING PLANT- The term `natural gas processing plant' means a facility in the United States that is designed to separate natural gas liquids from natural gas.CommentsClose CommentsPermalink
(19) NEW ENTRANT- The term `new entrant' means any facility that commences operation on or after January 1, 2008.CommentsClose CommentsPermalink
(20) OFFSET ALLOWANCE- The term `offset allowance' means a unit of reduction in the quantity of emissions or an increase in sequestration equal to 1 carbon dioxide equivalent at an entity that is not a covered facility, where the reduction in emissions or increase in sequestration is eligible to be used as an additional means of compliance for the submission requirements established under section 1202.CommentsClose CommentsPermalink
(21) OFFSET PROJECT- The term `offset project' means a domestic project, other than a project at a covered facility, that reduces greenhouse gas emissions or increases terrestrial sequestration of carbon dioxide.CommentsClose CommentsPermalink
(22) PROJECT DEVELOPER- The term `project developer' means an individual or entity implementing an offset project.CommentsClose CommentsPermalink
(23) QUANTITY OF REMAINDER EMISSION ALLOWANCES- The term `quantity of remainder emission allowances' means the quantity of emission allowances established for a calendar year, less the quantity of emission allowances obtained by multiplying--CommentsClose CommentsPermalink
(A) the quantity of emission allowances established for that year; byCommentsClose CommentsPermalink
(B) the percentage that corresponds to that year in the table contained in section 3101(c).CommentsClose CommentsPermalink
(24) RETAIL RATE FOR DISTRIBUTION SERVICE-CommentsClose CommentsPermalink
(A) IN GENERAL- The term `retail rate for distribution service' means the rate that a load-serving entity charges for the use of the system of the load-serving entity.CommentsClose CommentsPermalink
(B) EXCLUSION- The term `retail rate for distribution service' does not include any energy component of the rate.CommentsClose CommentsPermalink
(25) RETIRE AN EMISSION ALLOWANCE- The term `retire an emission allowance' means to disqualify an emission allowance for any subsequent use, regardless of whether the use is a sale, exchange, or submission of the allowance in satisfying a compliance obligation.CommentsClose CommentsPermalink
(26) REVERSAL- The term `reversal' means an intentional or unintentional loss of sequestered carbon dioxide to the atmosphere in significant quantities, as determined by the Administrator, in order to accomplish the purposes of this Act in an effective and efficient manner.CommentsClose CommentsPermalink
(27) RURAL ELECTRIC COOPERATIVE- The term `rural electric cooperative' means a cooperatively-owned association that was in existence as of October 18, 2007, and is eligible to receive loans under section 4 of the Rural Electrification Act of 1936 (
(28) SEQUESTERED AND SEQUESTRATION- The terms `sequestered' and `sequestration' mean the capture, permanent separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator.CommentsClose CommentsPermalink
(29) STATE REGULATORY AUTHORITY- The term `State regulatory authority' means any State agency that has ratemaking authority with respect to the retail rate for distribution service.CommentsClose CommentsPermalink
TITLE I--CAPPING GREENHOUSE GAS EMISSIONS
Subtitle A--Tracking Emissions
SEC. 1101. PURPOSE.
The purpose of this subtitle is to establish a Federal greenhouse gas registry that--CommentsClose CommentsPermalink
(1) is complete, consistent, transparent, and accurate;CommentsClose CommentsPermalink
(2) will collect reliable and accurate data that can be used by public and private entities to design efficient and effective energy security initiatives and greenhouse gas emission reduction strategies; andCommentsClose CommentsPermalink
(3) will provide appropriate high-quality data to be used for implementing greenhouse gas reduction policies.CommentsClose CommentsPermalink
SEC. 1102. DEFINITIONS.
In this subtitle:CommentsClose CommentsPermalink
(1) AFFECTED FACILITY-CommentsClose CommentsPermalink
(A) IN GENERAL- The term `affected facility' means--CommentsClose CommentsPermalink
(i) a covered facility;CommentsClose CommentsPermalink
(ii) another facility that emits a greenhouse gas, as determined by the Administrator; andCommentsClose CommentsPermalink
(iii) at the option of the Administrator, a vehicle fleet with emissions of more than 10,000 carbon dioxide equivalents in any year, assuming no double-counting of emissions.CommentsClose CommentsPermalink
(B) EXCLUSIONS- The term `affected facility' does not include any facility that--CommentsClose CommentsPermalink
(i) is not a covered facility;CommentsClose CommentsPermalink
(ii) is owned or operated by a small business (as described in part 121 of title 13, Code of Federal Regulations (or a successor regulation)); andCommentsClose CommentsPermalink
(iii) emits fewer than 10,000 carbon dioxide equivalents in any year.CommentsClose CommentsPermalink
(2) CARBON CONTENT- The term `carbon content' means the quantity of carbon (in carbon dioxide equivalent) contained in a fuel.CommentsClose CommentsPermalink
(3) CLIMATE REGISTRY- The term `Climate Registry' means the greenhouse gas emissions registry jointly established and managed by more than 40 States and Indian tribes to collect high-quality greenhouse gas emission data from facilities, corporations, and other organizations to support various greenhouse gas emission reporting and reduction policies for the member States and Indian tribes.CommentsClose CommentsPermalink
(4) FEEDSTOCK FOSSIL FUEL- The term `feedstock fossil fuel' means fossil fuel used as raw material in a manufacturing process.CommentsClose CommentsPermalink
(5) GREENHOUSE GAS EMISSIONS- The term `greenhouse gas emissions' means emissions of a greenhouse gas, including--CommentsClose CommentsPermalink
(A) stationary combustion source emissions emitted as a result of combustion of fuels in stationary equipment, such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, and other similar sources;CommentsClose CommentsPermalink
(B) process emissions consisting of emissions from chemical or physical processes other than combustion;CommentsClose CommentsPermalink
(C) fugitive emissions consisting of intentional and unintentional emissions from equipment leaks, such as joints, seals, packing, and gaskets, or from piles, pits, cooling towers, and other similar sources; andCommentsClose CommentsPermalink
(D) biogenic emissions resulting from biological processes, such as anaerobic decomposition, nitrification, and denitrification.CommentsClose CommentsPermalink
(6) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (
(7) REGISTRY- The term `Registry' means the Federal greenhouse gas registry established under section 1105(a).CommentsClose CommentsPermalink
(8) SOURCE- The term `source' means any building, structure, installation, unit, point, operation, vehicle, land area, or other item that emits or may emit a greenhouse gas.CommentsClose CommentsPermalink
SEC. 1103. REPORTING REQUIREMENTS.
(a) In General- Subject to this section, each affected facility shall submit to the Administrator, for inclusion in the Registry, periodic reports, including annual and quarterly data, that--CommentsClose CommentsPermalink
(1) include the quantity and type of fossil fuels, including feedstock fossil fuels, that are extracted, produced, refined, imported, exported, or consumed at or by the facility;CommentsClose CommentsPermalink
(2) include the quantity of hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, nitrous oxide, carbon dioxide that has been captured and sequestered, and other greenhouse gases generated, produced, imported, exported, or consumed at or by the facility;CommentsClose CommentsPermalink
(3) include the quantity of electricity generated, imported, exported, or consumed by or at the facility, and information on the quantity of greenhouse gases emitted when the imported, exported, or consumed electricity was generated, as determined by the Administrator;CommentsClose CommentsPermalink
(4) include the aggregate quantity of all greenhouse gas emissions from sources at the facility, including stationary combustion source emissions, process emissions, and fugitive emissions;CommentsClose CommentsPermalink
(5) include greenhouse gas emissions expressed in metric tons of each greenhouse gas emitted and in the quantity of carbon dioxide equivalents of each greenhouse gas emitted;CommentsClose CommentsPermalink
(6) include a list and description of sources of greenhouse gas emissions at the facility;CommentsClose CommentsPermalink
(7) quantify greenhouse gas emissions in accordance with the measurement standards established under section 1104;CommentsClose CommentsPermalink
(8) include other data necessary for accurate and complete accounting of greenhouse gas emissions, as determined by the Administrator;CommentsClose CommentsPermalink
(9) include an appropriate certification regarding the accuracy and completeness of reported data, as determined by the Administrator; andCommentsClose CommentsPermalink
(10) are submitted electronically to the Administrator, in such form and to such extent as may be required by the Administrator.CommentsClose CommentsPermalink
(b) De Minimis Exemptions-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator may determine--CommentsClose CommentsPermalink
(A) whether certain sources at a facility should be considered to be eligible for a de minimis exemption from a requirement for reporting under subsection (a); andCommentsClose CommentsPermalink
(B) the level of greenhouse gases emitted from a source that would qualify for such an exemption.CommentsClose CommentsPermalink
(2) FACTORS- In making a determination under paragraph (1), the Administrator shall consider the availability and suitability of simplified techniques and tools for quantifying emissions and the cost to measure those emissions relative to the purposes of this title, including the goal of collecting complete and consistent facility-wide data.CommentsClose CommentsPermalink
(c) Verification of Report Required- Before including the information from a report required under this section in the Registry, the Administrator shall verify the completeness and accuracy of the report using information provided under this section, obtained under section 9002(c), or obtained under other provisions of law.CommentsClose CommentsPermalink
(d) Timing-CommentsClose CommentsPermalink
(1) CALENDAR YEARS 2004 THROUGH 2007- For a baseline period of calendar years 2004 through 2007, each affected facility shall submit required annual data described in this section to the Administrator not later than March 31, 2009.CommentsClose CommentsPermalink
(2) SUBSEQUENT CALENDAR YEARS- For calendar year 2008 and each subsequent calendar year, each affected facility shall submit quarterly data described in this section to the Administrator not later than 60 days after the end of the applicable quarter.CommentsClose CommentsPermalink
(e) No Effect on Other Requirements- Nothing in this title affects any requirement in effect as of the date of enactment of this Act relating to the reporting of--CommentsClose CommentsPermalink
(1) fossil fuel production, refining, importation, exportation, or consumption data;CommentsClose CommentsPermalink
(2) greenhouse gas emission data; orCommentsClose CommentsPermalink
(3) other relevant data.CommentsClose CommentsPermalink
SEC. 1104. DATA QUALITY AND VERIFICATION.
(a) Protocols and Methods-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall establish by regulation, taking into account the work done by the Climate Registry, comprehensive protocols and methods to ensure the accuracy, completeness, consistency, and transparency of data on greenhouse gas emissions and fossil fuel production, refining, importation, exportation, and consumption submitted to the Registry that include--CommentsClose CommentsPermalink
(A) accounting and reporting standards for fossil fuel production, refining, importation, exportation, and consumption;CommentsClose CommentsPermalink
(B) a requirement that, where technically feasible, submitted data are monitored using monitoring systems for fuel flow or emissions, such as continuous emission monitoring systems or equivalent systems of similar rigor, accuracy, quality, and timeliness;CommentsClose CommentsPermalink
(C) a requirement that, if a facility has already been directed to monitor emissions of a greenhouse gas using a continuous emission monitoring system under existing law, that system be used in complying with this Act with respect to the greenhouse gas;CommentsClose CommentsPermalink
(D) for cases in which the Administrator determines that monitoring emissions with the precision, reliability, accessibility, and timeliness similar to that provided by a continuous emission monitoring system are not technologically feasible, standardized methods for calculating greenhouse gas emissions in specific industries using other readily available and reliable information, such as fuel consumption, materials consumption, production, or other relevant activity data, on the condition that those methods do not underreport emissions, as compared with the continuous emission monitoring system;CommentsClose CommentsPermalink
(E) information on the accuracy of measurement and calculation methods;CommentsClose CommentsPermalink
(F) methods to avoid double-counting of greenhouse gas emissions;CommentsClose CommentsPermalink
(G) protocols to prevent an affected facility from avoiding the reporting requirements of this title (such as by reorganizing into multiple entities or outsourcing activities that result in greenhouse gas emissions); andCommentsClose CommentsPermalink
(H) protocols for verification of data submitted by affected facilities.CommentsClose CommentsPermalink
(2) BEST PRACTICES- The protocols and methods developed under paragraph (1) shall incorporate and conform to the best practices from the most recent Federal, State, and international protocols for the measurement, accounting, reporting, and verification of greenhouse gas emissions to ensure the accuracy, completeness, and consistency of the data.CommentsClose CommentsPermalink
(b) Verification; Information by Reporting Entities- Each affected facility shall--CommentsClose CommentsPermalink
(1) provide information sufficient for the Administrator to verify, in accordance with the protocols and methods developed under subsection (a), that the fossil fuel data and greenhouse gas emission data of the affected facility have been completely and accurately reported; andCommentsClose CommentsPermalink
(2) ensure the submission or retention, for the 5-year period beginning on the date of provision of the information, of--CommentsClose CommentsPermalink
(A) data sources;CommentsClose CommentsPermalink
(B) information on internal control activities;CommentsClose CommentsPermalink
(C) information on assumptions used in reporting emissions and fuels;CommentsClose CommentsPermalink
(D) uncertainty analyses; andCommentsClose CommentsPermalink
(E) other relevant data and information to facilitate the verification of reports submitted to the Registry.CommentsClose CommentsPermalink
(c) Waiver of Reporting Requirements- The Administrator may waive reporting requirements for specific facilities if the Administrator determines that sufficient and equally or more reliable data are available under other provisions of law.CommentsClose CommentsPermalink
(d) Missing Data- If information, satisfactory to the Administrator, is not provided for an affected facility, the Administrator shall--CommentsClose CommentsPermalink
(1) prescribe methods to estimate emissions for the facility for each period for which data are missing, reflecting the highest emission levels that may reasonably have occurred during the period for which data are missing; andCommentsClose CommentsPermalink
(2) take appropriate enforcement action pursuant to this section and section 9002(b).CommentsClose CommentsPermalink
SEC. 1105. FEDERAL GREENHOUSE GAS REGISTRY.
(a) Establishment- The Administrator shall establish a Federal greenhouse gas registry.CommentsClose CommentsPermalink
(b) Administration- In establishing the Registry, the Administrator shall--CommentsClose CommentsPermalink
(1) design and operate the Registry;CommentsClose CommentsPermalink
(2) establish an advisory body that is broadly representative of private enterprise, agriculture, environmental groups, and State, tribal, and local governments to guide the development and management of the Registry;CommentsClose CommentsPermalink
(3) provide coordination and technical assistance for the development of proposed protocols and methods, taking into account the duties carried out by the Climate Registry, to be published by the Administrator;CommentsClose CommentsPermalink
(4)(A) develop an electronic format for reporting under guidelines established under section 1104(a)(1); andCommentsClose CommentsPermalink
(B) make the electronic format available to reporting entities;CommentsClose CommentsPermalink
(5) verify and audit the data submitted by reporting entities;CommentsClose CommentsPermalink
(6) establish consistent policies for calculating carbon content and greenhouse gas emissions for each type of fossil fuel reported under section 1103;CommentsClose CommentsPermalink
(7) calculate carbon content and greenhouse gas emissions associated with the combustion of fossil fuel data reported by reporting entities;CommentsClose CommentsPermalink
(8) immediately publish on the Internet all information contained in the Registry, except in any case in which publishing the information would result in a disclosure of--CommentsClose CommentsPermalink
(A) information vital to national security, as determined by the President; orCommentsClose CommentsPermalink
(B) confidential business information that cannot be derived from information that is otherwise publicly available and that would cause significant calculable competitive harm if published (except that information relating to greenhouse gas emissions shall not be considered to be confidential business information).CommentsClose CommentsPermalink
(c) Third-Party Verification- The Administrator may use the services of third parties that have no conflicts of interest to verify reports required under section 1103.CommentsClose CommentsPermalink
(d) Regulations- The Administrator shall--CommentsClose CommentsPermalink
(1) not later than 180 days after the date of enactment of this Act, propose regulations to carry out this section; andCommentsClose CommentsPermalink
(2) not later than July 1, 2008, promulgate final regulations to carry out this section.CommentsClose CommentsPermalink
SEC. 1106. ENFORCEMENT.
(a) Civil Actions- The Administrator may bring a civil action in United States district court against the owner or operator of an affected facility that fails to comply with any requirement of this subtitle.CommentsClose CommentsPermalink
(b) Penalty- Any person that has violated or is violating this subtitle shall be subject to a civil penalty of not more than $25,000 per day of each violation.CommentsClose CommentsPermalink
Subtitle B--Reducing Emissions
SEC. 1201. EMISSION ALLOWANCE ACCOUNT.
(a) In General- The Administrator shall establish a separate quantity of emission allowances for each of calendar years 2012 through 2050.CommentsClose CommentsPermalink
(b) Identification Numbers- The Administrator shall assign to each emission allowance established under subsection (a) a unique identification number that includes the calendar year for which that emission allowance was established.CommentsClose CommentsPermalink
(c) Legal Status of Emission Allowances-CommentsClose CommentsPermalink
(1) IN GENERAL- An emission allowance shall not be a property right.CommentsClose CommentsPermalink
(2) TERMINATION OR LIMITATION- Nothing in this Act or any other provision of law limits the authority of the United States to terminate or limit an emission allowance.CommentsClose CommentsPermalink
(3) OTHER PROVISIONS UNAFFECTED- Nothing in this Act relating to emission allowances shall affect the application of, or compliance with, any other provision of law to or by a covered facility.CommentsClose CommentsPermalink
(d) Allowances for Each Calendar Year- The numbers of emission allowances established by the Administrator for each of calendar years 2012 through 2050 shall be as follows:CommentsClose CommentsPermalink
----------------------------------------------------------CommentsClose CommentsPermalink
Calendar Year Number of Emission Allowances (in Millions) CommentsClose CommentsPermalink
----------------------------------------------------------CommentsClose CommentsPermalink
2012 5,775 CommentsClose CommentsPermalink
2013 5,669 CommentsClose CommentsPermalink
2014 5,562 CommentsClose CommentsPermalink
2015 5,456 CommentsClose CommentsPermalink
2016 5,349 CommentsClose CommentsPermalink
2017 5,243 CommentsClose CommentsPermalink
2018 5,137 CommentsClose CommentsPermalink
2019 5,030 CommentsClose CommentsPermalink
2020 4,924 CommentsClose CommentsPermalink
2021 4,817 CommentsClose CommentsPermalink
2022 4,711 CommentsClose CommentsPermalink
2023 4,605 CommentsClose CommentsPermalink
2024 4,498 CommentsClose CommentsPermalink
2025 4,392 CommentsClose CommentsPermalink
2026 4,286 CommentsClose CommentsPermalink
2027 4,179 CommentsClose CommentsPermalink
2028 4,073 CommentsClose CommentsPermalink
2029 3,966 CommentsClose CommentsPermalink
2030 3,860 CommentsClose CommentsPermalink
2031 3,754 CommentsClose CommentsPermalink
2032 3,647 CommentsClose CommentsPermalink
2033 3,541 CommentsClose CommentsPermalink
2034 3,435 CommentsClose CommentsPermalink
2035 3,328 CommentsClose CommentsPermalink
2036 3,222 CommentsClose CommentsPermalink
2037 3,115 CommentsClose CommentsPermalink
2038 3,009 CommentsClose CommentsPermalink
2039 2,903 CommentsClose CommentsPermalink
2040 2,796 CommentsClose CommentsPermalink
2041 2,690 CommentsClose CommentsPermalink
2042 2,584 CommentsClose CommentsPermalink
2043 2,477 CommentsClose CommentsPermalink
2044 2,371 CommentsClose CommentsPermalink
2045 2,264 CommentsClose CommentsPermalink
2046 2,158 CommentsClose CommentsPermalink
2047 2,052 CommentsClose CommentsPermalink
2048 1,945 CommentsClose CommentsPermalink
2049 1,839 CommentsClose CommentsPermalink
2050 1,732 CommentsClose CommentsPermalink
----------------------------------------------------------CommentsClose CommentsPermalink
SEC. 1202. COMPLIANCE OBLIGATION.
(a) In General- Not later than 90 days after the end of a calendar year, the owner or operator of a covered facility shall submit to the Administrator an emission allowance, an offset allowance awarded pursuant to subtitle D of title II, or an international emission allowance obtained in compliance with regulations promulgated under section 2502, for each carbon dioxide equivalent of--CommentsClose CommentsPermalink
(1) group I greenhouse gas that was emitted by the use of coal by that covered facility during the preceding year;CommentsClose CommentsPermalink
(2) group I greenhouse gas that will, assuming no capture and sequestration of that gas, be emitted from the use of any petroleum- or coal-based liquid or gaseous fuel that was produced or imported by that covered facility during the preceding year;CommentsClose CommentsPermalink
(3) group I greenhouse gas that was produced for sale or distribution or imported by that facility during the preceding year;CommentsClose CommentsPermalink
(4) group II greenhouse gas that was emitted as a byproduct of hydrochlorofluorocarbon production; andCommentsClose CommentsPermalink
(5) group I greenhouse gas that will, assuming no capture and destruction or sequestration of that gas, be emitted--CommentsClose CommentsPermalink
(A) from the use of natural gas that was, by that covered facility, processed, imported, or produced and not reinjected into the field; orCommentsClose CommentsPermalink
(B) from the use of natural gas liquids that were processed or imported by that covered facility during the preceding year.CommentsClose CommentsPermalink
(b) Requirements-CommentsClose CommentsPermalink
(1) ASSUMPTIONS- For the purpose of calculating the submission requirement under paragraphs (2) through (5) of subsection (a), the Administrator shall, subject to subsections (e) through (g), assume that no capture, sequestration, chemical retention, or other retention of a greenhouse gas has occurred or will occur.CommentsClose CommentsPermalink
(2) FACTORS FOR CONSIDERATION- For the purpose of calculating the submission requirement under paragraph (1) of subsection (a), the Administrator shall take into account any metric tons of carbon dioxide that the owner or operator has geologically sequestered during the preceding calendar year.CommentsClose CommentsPermalink
(c) Retirement of Allowances- Immediately upon receipt of an emission allowance under subsection (a), the Administrator shall retire the emission allowance.CommentsClose CommentsPermalink
(d) Determination of Compliance- Not later than July 1 of each year, the Administrator shall determine whether the owners and operators of all covered facilities are in full compliance with subsection (a) for the preceding year.CommentsClose CommentsPermalink
(e) Feedstock Credit- If the Administrator determines that an entity has used a petroleum- or coal-based product, natural gas, or a natural gas liquid as a feedstock during any of calendar years 2012 through 2050, such that no group I greenhouse gas associated with that feedstock will be emitted, the Administrator shall establish and distribute to that entity a quantity of emission allowances equal to the quantity of emission allowances, offset allowances, or international emission allowances submitted under subsection (a) for that petroleum- or coal-based product, natural gas, or natural gas liquid.CommentsClose CommentsPermalink
(f) Sequestration Credit- If the Administrator determines that the owner or operator of a covered facility that is subject to the submission requirement under any of paragraphs (2) through (5) of subsection (a) has geologically sequestered carbon dioxide during any of calendar years 2012 through 2050, the Administrator shall establish and distribute to that owner or operator a quantity of emission allowances equal to the number of metric tons of carbon dioxide that the owner or operator geologically sequestered during that calendar year.CommentsClose CommentsPermalink
(g) Destruction Credit- If the Administrator determines that an entity has destroyed greenhouse gas during any of calendar years 2012 through 2050, the Administrator shall establish and distribute to that entity a quantity of emission allowances equal to the number of carbon dioxide equivalents of greenhouse gas that the owner or operator destroyed during that calendar year.CommentsClose CommentsPermalink
SEC. 1203. PENALTY FOR NONCOMPLIANCE.
(a) Excess Emissions Penalty-CommentsClose CommentsPermalink
(1) IN GENERAL- The owner or operator of any covered facility that fails for any year to submit to the Administrator by the deadline described in section 1202(a) or 2303, 1 or more of the emission allowances due pursuant to either of those sections shall be liable for the payment to the Administrator of an excess emissions penalty.CommentsClose CommentsPermalink
(2) AMOUNT- The amount of an excess emissions penalty required to be paid under paragraph (1) shall be, as determined by the Administrator, an amount equal to the product obtained by multiplying--CommentsClose CommentsPermalink
(A) the number of excess emission allowances that the owner or operator failed to submit; andCommentsClose CommentsPermalink
(B) the greater of--CommentsClose CommentsPermalink
(i) $200; orCommentsClose CommentsPermalink
(ii) a dollar figure representing 3 times the mean market value of an emission allowance during the calendar year for which the emission allowances were due.CommentsClose CommentsPermalink
(3) TIMING- An excess emissions penalty required under this subsection shall be immediately due and payable to the Administrator, without demand, in accordance with such regulations as shall be promulgated by the Administrator by the date that is 1 year after the date of enactment of this Act.CommentsClose CommentsPermalink
(4) DEPOSIT- The Administrator shall deposit each excess emissions penalty paid under this subsection in the Treasury of the United States.CommentsClose CommentsPermalink
(5) NO EFFECT ON LIABILITY- An excess emissions penalty due and payable by the owner or operator of a covered facility under this subsection shall not diminish the liability of the owner or operator for any fine, penalty, or assessment against the owner or operator for the same violation under any other provision of this Act or any other law.CommentsClose CommentsPermalink
(b) Excess Emission Allowance-CommentsClose CommentsPermalink
(1) IN GENERAL- The owner or operator of a covered facility that fails for any year to submit to the Administrator by the deadline described in section 1202(a) or 2303 1 or more of the emission allowances due pursuant to either of those sections shall be liable to offset the excess emissions by an equal quantity, in tons, during--CommentsClose CommentsPermalink
(A) the following calendar year; orCommentsClose CommentsPermalink
(B) such longer period as the Administrator may prescribe.CommentsClose CommentsPermalink
(2) PLAN-CommentsClose CommentsPermalink
(A) IN GENERAL- Not later than 60 days after the end of the calendar year during which a covered facility emits excess emissions, the owner or operator of the covered facility shall submit to the Administrator, and to the State in which the covered facility is located, a proposed plan to achieve the required offsets for the excess emissions.CommentsClose CommentsPermalink
(B) CONDITION OF OPERATION- Upon approval of a proposed plan described in subparagraph (A) by the Administrator, the plan, as submitted, modified, or conditioned, shall be considered to be a condition of the operating permit for the covered facility, without further review or revision of the permit.CommentsClose CommentsPermalink
(C) DEDUCTION OF ALLOWANCES- For each covered facility that, in any calendar year, emits excess emissions, the Administrator shall deduct, from emission allowances allocated to the covered facility for the calendar year, or for succeeding years during which offsets are required, emission allowances equal to the excess quantity, in tons, of the excess emissions.CommentsClose CommentsPermalink
(c) Prohibition- It shall be unlawful for the owner or operator of any facility liable for a penalty and offset under this section to fail--CommentsClose CommentsPermalink
(1) to pay the penalty in accordance with this section;CommentsClose CommentsPermalink
(2) to provide, and thereafter comply with, a proposed plan for compliance as required by subsection (b)(2); andCommentsClose CommentsPermalink
(3) to offset excess emissions as required by subsection (b)(1).CommentsClose CommentsPermalink
(d) No Effect on Other Section- Nothing in this subtitle limits or otherwise affects the application of section 9002(b).CommentsClose CommentsPermalink
SEC. 1204. RULEMAKING.
Not later than 2 years after the date of enactment of this Act, the Administrator shall, by rule, expand the definition of the term `covered facility' to ensure the inclusion of all greenhouse gas emissions from natural gas emitted, flared during production or processing, or sold for use in the United States.CommentsClose CommentsPermalink
TITLE II--MANAGING AND CONTAINING COSTS EFFICIENTLY
Subtitle A--Trading
SEC. 2101. SALE, EXCHANGE, AND RETIREMENT OF EMISSION ALLOWANCES.
Except as otherwise provided in this Act, the lawful holder of an emission allowance may, without restriction, sell, exchange, transfer, submit for compliance in accordance with section 1202, or retire the emission allowance.CommentsClose CommentsPermalink
SEC. 2102. NO RESTRICTION ON TRANSACTIONS.
The privilege of purchasing, holding, selling, exchanging, and retiring emission allowances shall not be restricted to the owners and operators of covered facilities.CommentsClose CommentsPermalink
SEC. 2103. ALLOWANCE TRANSFER SYSTEM.
(a) In General- Not later than 18 months after the date of enactment of this Act, the Administrator shall promulgate regulations to carry out the provisions of this Act relating to emission allowances, including regulations providing that the transfer of emission allowances shall not be effective until such date as a written certification of the transfer, signed by a responsible official of each party to the transfer, is received and recorded by the Administrator in accordance with those regulations.CommentsClose CommentsPermalink
(b) Transfers-CommentsClose CommentsPermalink
(1) IN GENERAL- The regulations promulgated under subsection (a) shall permit the transfer of allowances prior to the issuance of the allowances.CommentsClose CommentsPermalink
(2) DEDUCTION AND ADDITION OF TRANSFERS- A recorded pre-allocation transfer of allowances shall be--CommentsClose CommentsPermalink
(A) deducted by the Administrator from the number of allowances that would otherwise be distributed to the transferor; andCommentsClose CommentsPermalink
(B) added to those allowances distributed to the transferee.CommentsClose CommentsPermalink
SEC. 2104. ALLOWANCE TRACKING SYSTEM.
The regulations promulgated under section 2103(a) shall include a system for issuing, recording, and tracking emission allowances that shall specify all necessary procedures and requirements for an orderly and competitive functioning of the emission allowance system.CommentsClose CommentsPermalink
Subtitle B--Banking
SEC. 2201. INDICATION OF CALENDAR YEAR.
An emission allowance submitted to the Administrator by the owner or operator of a covered facility in accordance with section 1202(a) shall not be required to indicate in the identification number of the emission allowance the calendar year for which the emission allowance is submitted.CommentsClose CommentsPermalink
SEC. 2202. EFFECT OF TIME.
The passage of time shall not, by itself, cause an emission allowance to be retired or otherwise diminish the compliance value of the emission allowance.CommentsClose CommentsPermalink
Subtitle C--Borrowing
SEC. 2301. REGULATIONS.
(a) In General- Not later than 3 years after the date of enactment of this Act, the Administrator shall promulgate regulations under which, subject to subsection (b), the owner or operator of a covered facility may--CommentsClose CommentsPermalink
(1) borrow emission allowances from the Administrator; andCommentsClose CommentsPermalink
(2) for a calendar year, submit borrowed emission allowances to the Administrator in satisfaction of up to 15 percent of the compliance obligation under section 1202(a).CommentsClose CommentsPermalink
(b) Limitation- An emission allowance borrowed under subsection (a) shall be an emission allowance established by the Administrator for a specific future calendar year under subsection 1201(a).CommentsClose CommentsPermalink
SEC. 2302. TERM.
The owner or operator of a covered facility shall not submit, and the Administrator shall not accept, a borrowed emission allowance in partial satisfaction of the compliance obligation under section 1202(a) for any calendar year that is more than 5 years earlier than the calendar year included in the identification number of the borrowed emission allowance.CommentsClose CommentsPermalink
SEC. 2303. REPAYMENT WITH INTEREST.
For each borrowed emission allowance submitted in partial satisfaction of the compliance obligation under subsection 1202(a) for a particular calendar year (referred to in this section as the `use year'), the number of emission allowances that the owner or operator is required to submit under section 1202(a) for the year from which the borrowed emission allowance was taken (referred to in this section as the `source year') shall be increased by an amount equal to the product obtained by multiplying--CommentsClose CommentsPermalink
(1) 1.1; andCommentsClose CommentsPermalink
(2) the number of years beginning after the use year and before the source year.CommentsClose CommentsPermalink
Subtitle D--Offsets
SEC. 2401. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR AGRICULTURAL PRODUCERS.
(a) 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.CommentsClose CommentsPermalink
(b) Components- The initiative under this section--CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) opportunities to earn new revenue under this subtitle;CommentsClose CommentsPermalink
(B) measurement protocols, monitoring, verifying, inventorying, registering, insuring, and marketing offsets under this title;CommentsClose CommentsPermalink
(C) emerging domestic and international markets for energy crops, allowances, and offsets; andCommentsClose CommentsPermalink
(D) local, regional, and national databases and aggregation networks to facilitate achievement, measurement, registration, and sales of offsets;CommentsClose CommentsPermalink
(2) shall provide--CommentsClose CommentsPermalink
(A) outreach materials, including the handbook published under subsection (c), to interested parties;CommentsClose CommentsPermalink
(B) workshops; andCommentsClose CommentsPermalink
(C) technical assistance; andCommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(c) Handbook-CommentsClose CommentsPermalink
(1) IN GENERAL- Not later than 2 years after the date of enactment of this Act, the Secretary of Agriculture, in consultation with the Administrator and after an opportunity for public comment, 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.CommentsClose CommentsPermalink
(2) DISTRIBUTION- The Secretary of Agriculture shall ensure, to the maximum extent practicable, that the handbook--CommentsClose CommentsPermalink
(A) is made available through the Internet and in other electronic media;CommentsClose CommentsPermalink
(B) includes, with respect to the electronic form of the handbook described in subparagraph (A), electronic forms and calculation tools to facilitate the petition process described in section 2404; andCommentsClose CommentsPermalink
(C) is distributed widely through land-grant colleges and universities and other appropriate institutions.CommentsClose CommentsPermalink
SEC. 2402. ESTABLISHMENT OF DOMESTIC OFFSET PROGRAM.
(a) Alternative Means of Compliance- Beginning with calendar year 2012, the owner or operator of a covered entity may satisfy up to 15 percent of the total allowance submission requirement of the covered entity under section 1202(a) by submitting offset allowances generated in accordance with this subtitle.CommentsClose CommentsPermalink
(b) Regulations Required-CommentsClose CommentsPermalink
(1) IN GENERAL- Not later than 18 months after the date of enactment of this Act, the Administrator, in conjunction with the Secretary of Agriculture, shall promulgate regulations authorizing the issuance and certification of offset allowances.CommentsClose CommentsPermalink
(2) CERTAIN SOURCES-CommentsClose CommentsPermalink
(A) IN GENERAL- For offsets from sources of greenhouse gases not linked to agricultural, forestry, or other land use-related projects, the regulations promulgated under this subsection shall require that the owner of the project establish the project baseline and register emissions under the Federal Greenhouse Gas Registry established under section 1105.CommentsClose CommentsPermalink
(B) REQUIREMENT- The regulations described in subparagraph (A) shall--CommentsClose CommentsPermalink
(i) authorize the issuance and certification of offset allowances for greenhouse gas emission reductions below the project baseline; andCommentsClose CommentsPermalink
(ii) ensure that those offsets represent real, verifiable, additional, permanent, and enforceable reductions in greenhouse gas emissions or increases in sequestration.CommentsClose CommentsPermalink
(3) AGRICULTURAL, FORESTRY, AND OTHER LAND USE-RELATED PROJECTS- For offsets from certain agricultural, forestry, and other land use-related projects undertaken within the United States, the regulations promulgated under this subsection shall include provisions that--CommentsClose CommentsPermalink
(A) ensure that those offsets represent real, verifiable, additional, permanent, and enforceable reductions in greenhouse gas emissions or increases in biological sequestration;CommentsClose CommentsPermalink
(B) specify the types of offset projects eligible to generate offset allowances, in accordance with section 2403;CommentsClose CommentsPermalink
(C) establish procedures for project initiation and approval, in accordance with section 2404;CommentsClose CommentsPermalink
(D) establish procedures to monitor, quantify, and discount reductions in greenhouse gas emissions or increases in biological sequestration, in accordance with subsections (d) through (g) of section 2404;CommentsClose CommentsPermalink
(E) establish procedures for third-party verification, registration, and issuance of offset allowances, in accordance with section 2405;CommentsClose CommentsPermalink
(F) ensure permanence of offsets by mitigating and compensating for reversals, in accordance with section 2406; andCommentsClose CommentsPermalink
(G) assign a unique serial number to each offset allowance issued under this section.CommentsClose CommentsPermalink
(c) Offset Allowances Awarded- The Administrator shall issue offset allowances for qualifying emission reductions and biological sequestrations from offset projects that satisfy the applicable requirements of this subtitle.CommentsClose CommentsPermalink
(d) Ownership- Initial ownership of an offset allowance shall lie with a project developer, unless otherwise specified in a legally-binding contract or agreement.CommentsClose CommentsPermalink
(e) Transferability- An offset allowance generated pursuant to this subtitle may be sold, traded, or transferred, on the conditions that--CommentsClose CommentsPermalink
(1) the offset allowance has not expired or been retired or canceled; andCommentsClose CommentsPermalink
(2) liability and responsibility for mitigating and compensating for reversals of registered offset allowances is specified in accordance with section 2406(b).CommentsClose CommentsPermalink
SEC. 2403. ELIGIBLE OFFSET PROJECT TYPES.
(a) In General- Offset allowances from agricultural, forestry, and other land use-related projects shall be limited to those allowances achieving an offset of 1 or more greenhouse gases by a method other than a reduction of combustion of greenhouse gas-emitting fuel.CommentsClose CommentsPermalink
(b) Categories of Eligible Offset Projects- Subject to the requirements promulgated pursuant to section 2402(b), the types of operations eligible to generate offset allowances under this subtitle include--CommentsClose CommentsPermalink
(1) agricultural and rangeland sequestration and management practices, including--CommentsClose CommentsPermalink
(A) altered tillage practices;CommentsClose CommentsPermalink
(B) winter cover cropping, continuous cropping, and other means to increase biomass returned to soil in lieu of planting followed by fallowing;CommentsClose CommentsPermalink
(C) conversion of cropland to rangeland or grassland, on the condition that the land has been in nonforest use for at least 10 years before the date of initiation of the project;CommentsClose CommentsPermalink
(D) reduction of nitrogen fertilizer use or increase in nitrogen use efficiency;CommentsClose CommentsPermalink
(E) reduction in the frequency and duration of flooding of rice paddies; andCommentsClose CommentsPermalink
(F) reduction in carbon emissions from organic soils;CommentsClose CommentsPermalink
(2) changes in carbon stocks attributed to land use change and forestry activities limited to--CommentsClose CommentsPermalink
(A) afforestation or reforestation of acreage not forested as of October 18, 2007; andCommentsClose CommentsPermalink
(B) forest management resulting in an increase in forest stand volume;CommentsClose CommentsPermalink
(3) manure management and disposal, including--CommentsClose CommentsPermalink
(A) waste aeration; andCommentsClose CommentsPermalink
(B) methane capture and combustion;CommentsClose CommentsPermalink
(4) subject to the requirements of this subtitle, any other terrestrial offset practices identified by the Administrator, including--CommentsClose CommentsPermalink
(A) the capture or reduction of fugitive greenhouse gas emissions for which no covered facility is required under section 1202(a) to submit any emission allowances, offset allowances, or international emission allowances;CommentsClose CommentsPermalink
(B) methane capture and combustion at nonagricultural facilities; andCommentsClose CommentsPermalink
(C) other actions that result in the avoidance or reduction of greenhouse gas emissions in accordance with section 2402; andCommentsClose CommentsPermalink
(5) combinations of any of the offset practices described in paragraphs (1) through (4).CommentsClose CommentsPermalink
SEC. 2404. PROJECT INITIATION AND APPROVAL.
(a) Project Approval- A project developer--CommentsClose CommentsPermalink
(1) may submit a petition for offset project approval at any time following the effective date of regulations promulgated under section 2402(b); butCommentsClose CommentsPermalink
(2) may not register or issue offset allowances until such approval is received and until after the emission reductions or sequestrations supporting the offset allowances have actually occurred.CommentsClose CommentsPermalink
(b) Petition Process- Prior to offset registration and issuance of offset allowances, a project developer shall submit a petition to the Administrator, consisting of--CommentsClose CommentsPermalink
(1) a copy of the monitoring and quantification plan prepared for the offset project, as described under subsection (d);CommentsClose CommentsPermalink
(2) a greenhouse gas initiation certification, as described under subsection (e); andCommentsClose CommentsPermalink
(3) subject to the requirements of this subtitle, any other information identified by the Administrator in the regulations promulgated under section 2402 as necessary to meet the objectives of this subtitle.CommentsClose CommentsPermalink
(c) Approval and Notification-CommentsClose CommentsPermalink
(1) IN GENERAL- Not later than 180 days after the date on which the Administrator receives a complete petition under subsection (b), the Administrator shall--CommentsClose CommentsPermalink
(A) determine whether the monitoring and quantification plan satisfies the applicable requirements of this subtitle;CommentsClose CommentsPermalink
(B) determine whether the greenhouse gas initiation certification indicates a significant deviation in accordance with subsection (e)(3);CommentsClose CommentsPermalink
(C) notify the project developer of the determinations under subparagraphs (A) and (B); andCommentsClose CommentsPermalink
(D) issue offset allowances for approved projects.CommentsClose CommentsPermalink
(2) APPEAL- The Administrator shall establish mechanisms for appeal and review of determinations made under this subsection.CommentsClose CommentsPermalink
(d) Monitoring and Quantification-CommentsClose CommentsPermalink
(1) IN GENERAL- A project developer shall make use of the standardized tools and methods described in this section to monitor, quantify, and discount reductions in greenhouse gas emissions or increases in sequestration.CommentsClose CommentsPermalink
(2) MONITORING AND QUANTIFICATION PLAN- A monitoring and quantification plan shall be used to monitor, quantify, and discount reductions in greenhouse gas emissions or increases in sequestration as described by this subsection.CommentsClose CommentsPermalink
(3) PLAN COMPLETION AND RETENTION- A monitoring and quantification plan shall be--CommentsClose CommentsPermalink
(A) completed for all offset projects prior to offset project initiation; andCommentsClose CommentsPermalink
(B) retained by the project developer for the duration of the offset project.CommentsClose CommentsPermalink
(4) PLAN REQUIREMENTS- Subject to section 2402, the Administrator, in conjunction with the Secretary of Agriculture, shall specify the required components of a monitoring and quantification plan, including--CommentsClose CommentsPermalink
(A) a description of the offset project, including project type;CommentsClose CommentsPermalink
(B) a determination of accounting periods;CommentsClose CommentsPermalink
(C) an assignment of reporting responsibility;CommentsClose CommentsPermalink
(D) the contents and timing of public reports, including summaries of the original data, as well as the results of any analyses;CommentsClose CommentsPermalink
(E) a delineation of project boundaries, based on acceptable methods and formats;CommentsClose CommentsPermalink
(F) a description of which of the monitoring and quantification tools developed under subsection (f) are to be used to monitor and quantify changes in greenhouse gas fluxes or carbon stocks associated with a project;CommentsClose CommentsPermalink
(G) a description of which of the standardized methods developed under subsection (g) to be used to determine additionality, estimate the baseline carbon, and discount for leakage;CommentsClose CommentsPermalink
(H) based on the standardized methods chosen in subparagraphs (F) and (G), a determination of uncertainty in accordance with subsection (h);CommentsClose CommentsPermalink
(I) what site-specific data, if any, will be used in monitoring, quantification, and the determination of discounts;CommentsClose CommentsPermalink
(J) a description of procedures for use in managing and storing data, including quality-control standards and methods, such as redundancy in case records are lost;CommentsClose CommentsPermalink
(K) subject to the requirements of this subtitle, any other information identified by the Administrator or the Secretary of Agriculture as being necessary to meet the objectives of this subtitle; andCommentsClose CommentsPermalink
(L) a description of the risk of reversals for the project, including any way in which the proposed project may alter the risk of reversal for the project or other projects in the area.CommentsClose CommentsPermalink
(e) Greenhouse Gas Initiation Certification-CommentsClose CommentsPermalink
(1) IN GENERAL- In reviewing a petition submitted under subsection (b), the Administrator shall seek to exclude each activity that undermines the integrity of the offset program established under this subtitle, such as the conversion or clearing of land, or marked change in management regime, in anticipation of offset project initiation.CommentsClose CommentsPermalink
(2) GREENHOUSE GAS INITIATION CERTIFICATION REQUIREMENTS- A greenhouse gas initiation certification developed under this subsection shall include--CommentsClose CommentsPermalink
(A) the estimated greenhouse gas flux or carbon stock for the offset project for each of the 4 complete calendar years preceding the effective date of the regulations promulgated under section 2402(b); andCommentsClose CommentsPermalink
(B) the estimated greenhouse gas flux or carbon stock for the offset project, averaged across each of the 4 calendar years preceding the effective date of the regulations promulgated under section 2402(b).CommentsClose CommentsPermalink
(3) DETERMINATION OF SIGNIFICANT DEVIATION- Based on standards developed by the Administrator, in conjunction with the Secretary of Agriculture--CommentsClose CommentsPermalink
(A) each greenhouse gas initiation certification submitted pursuant to this section shall be reviewed; andCommentsClose CommentsPermalink
(B) a determination shall be made as to whether, as a result of activities or behavior inconsistent with the purposes of this title, a significant deviation exists between the average annual greenhouse gas flux or carbon stock and the greenhouse gas flux or carbon stock for a given year.CommentsClose CommentsPermalink
(4) ADJUSTMENT FOR PROJECTS WITH SIGNIFICANT DEVIATION- In the case of a significant deviation, the Administrator shall adjust the number of allowances awarded in order to account for the deviation.CommentsClose CommentsPermalink
(f) Development of Monitoring and Quantification Tools for Offset Projects-CommentsClose CommentsPermalink
(1) IN GENERAL- Subject to section 2402(b), the Administrator, in conjunction with the Secretary of Agriculture, shall develop standardized tools for use in the monitoring and quantification of changes in greenhouse gas fluxes or carbon stocks for each offset project type listed under section 2403(b).CommentsClose CommentsPermalink
(2) TOOL DEVELOPMENT- The tools used to monitor and quantify changes in greenhouse gas fluxes or carbon stocks shall, for each project type, include applicable--CommentsClose CommentsPermalink
(A) statistically-sound field and remote sensing sampling methods, procedures, techniques, protocols, or programs;CommentsClose CommentsPermalink
(B) models, factors, equations, or look-up tables; andCommentsClose CommentsPermalink
(C) any other process or tool considered to be acceptable by the Administrator, in conjunction with the Secretary of Agriculture.CommentsClose CommentsPermalink
(g) Development of Accounting and Discounting Methods-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator, in consultation with the Secretary of Agriculture, shall--CommentsClose CommentsPermalink
(A) develop standardized methods for use in accounting for additionality and uncertainty, estimating the baseline, and discounting for leakage for each offset project type listed under section 2403(b); andCommentsClose CommentsPermalink
(B) require that leakage be subtracted from reductions in greenhouse gas emissions or increases in sequestration attributable to a project.CommentsClose CommentsPermalink
(2) ADDITIONALITY DETERMINATION AND BASELINE ESTIMATION- The standardized methods used to determine additionality and establish baselines shall, for each project type, at a minimum--CommentsClose CommentsPermalink
(A) in the case of a sequestration project, determine the greenhouse gas flux and carbon stock on comparable land identified on the basis of--CommentsClose CommentsPermalink
(i) similarity in current management practices;CommentsClose CommentsPermalink
(ii) similarity of regional, State, or local policies or programs; andCommentsClose CommentsPermalink
(iii) similarity in geographical and biophysical characteristics;CommentsClose CommentsPermalink
(B) in the case of an emission reduction project, use as a basis emissions from comparable land or facilities; andCommentsClose CommentsPermalink
(C) in the case of a sequestration project or emission reduction project, specify a selected time period.CommentsClose CommentsPermalink
(3) LEAKAGE- The standardized methods used to determine and discount for leakage shall, at a minimum, take into consideration--CommentsClose CommentsPermalink
(A) the scope of the offset system in terms of activities and geography covered;CommentsClose CommentsPermalink
(B) the markets relevant to the offset project;CommentsClose CommentsPermalink
(C) emission intensity per unit of production, both inside and outside of the offset project; andCommentsClose CommentsPermalink
(D) a time period sufficient in length to yield a stable leakage rate.CommentsClose CommentsPermalink
(h) Uncertainty for Agricultural and Forestry Projects-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator, in conjunction with the Secretary of Agriculture, shall develop standardized methods for use in determining and discounting for uncertainty for each offset project type listed under section 2403(b).CommentsClose CommentsPermalink
(2) BASIS- The standardized methods used to determine and discount for uncertainty shall be based on--CommentsClose CommentsPermalink
(A) the robustness and rigor of the methods used by a project developer to monitor and quantify changes in greenhouse gas fluxes or carbon stocks;CommentsClose CommentsPermalink
(B) the robustness and rigor of methods used by a project developer to determine additionality and leakage; andCommentsClose CommentsPermalink
(C) an exaggerated proportional discount that increases relative to uncertainty, as determined by the Administrator, in conjunction with the Secretary of Agriculture, to encourage better measurement and accounting.CommentsClose CommentsPermalink
(i) Acquisition of New Data and Review of Methods for Agricultural and Forestry Projects- The Administrator, in conjunction with the Secretary of Agriculture, shall--CommentsClose CommentsPermalink
(1) establish a comprehensive field sampling program to improve the scientific bases on which the standardized tools and methods developed under this section are based; andCommentsClose CommentsPermalink
(2) review and revise the standardized tools and methods developed under this section, based on--CommentsClose CommentsPermalink
(A) validation of existing methods, protocols, procedures, techniques, factors, equations, or models;CommentsClose CommentsPermalink
(B) development of new methods, protocols, procedures, techniques, factors, equations, or models;CommentsClose CommentsPermalink
(C) increased availability of field data or other datasets; andCommentsClose CommentsPermalink
(D) any other information identified by the Administrator, in conjunction with the Secretary of Agriculture, that is necessary to meet the objectives of this subtitle.CommentsClose CommentsPermalink
(j) Exclusion- No activity for which any emission allowances are received under subtitle G of title III shall generate offset allowances under this subtitle.CommentsClose CommentsPermalink
SEC. 2405. OFFSET VERIFICATION AND ISSUANCE OF ALLOWANCES.
(a) In General- Offset allowances may be claimed for net emission reductions or increases in sequestration annually, after accounting for any necessary discounts in accordance with section 2404, by submitting a verification report for an offset project to the Administrator.CommentsClose CommentsPermalink
(b) Offset Verification-CommentsClose CommentsPermalink
(1) SCOPE OF VERIFICATION- A verification report for an offset project shall--CommentsClose CommentsPermalink
(A) be completed by a verifier accredited in accordance with paragraph (3); andCommentsClose CommentsPermalink
(B) shall be developed taking into consideration--CommentsClose CommentsPermalink
(i) the information and methodology contained within a monitoring and quantification plan;CommentsClose CommentsPermalink
(ii) data and subsequent analysis of the offset project, including--CommentsClose CommentsPermalink
(I) quantification of net emission reductions or increases in sequestration;CommentsClose CommentsPermalink
(II) determination of additionality;CommentsClose CommentsPermalink
(III) calculation of leakage;CommentsClose CommentsPermalink
(IV) assessment of permanence;CommentsClose CommentsPermalink
(V) discounting for uncertainty; andCommentsClose CommentsPermalink
(VI) the adjustment of net emission reductions or increases in sequestration by the discounts determined under clauses (II) through (V); andCommentsClose CommentsPermalink
(iii) subject to the requirements of this subtitle, any other information identified by the Administrator as being necessary to achieve the purposes of this subtitle.CommentsClose CommentsPermalink
(2) VERIFICATION REPORT REQUIREMENTS- The Administrator shall specify the required components of a verification report, including--CommentsClose CommentsPermalink
(A) the quantity of offsets generated;CommentsClose CommentsPermalink
(B) the amount of discounts applied;CommentsClose CommentsPermalink
(C) an assessment of methods (and the appropriateness of those methods);CommentsClose CommentsPermalink
(D) an assessment of quantitative errors or omissions (and the effect of the errors or omissions on offsets);CommentsClose CommentsPermalink
(E) any potential conflicts of interest between a verifier and project developer; andCommentsClose CommentsPermalink
(F) any other provision that the Administrator considers to be necessary to achieve the purposes of this subtitle.CommentsClose CommentsPermalink
(3) VERIFIER ACCREDITATION-CommentsClose CommentsPermalink
(A) IN GENERAL- Not later than 18 months after the date of enactment of this Act, the Administrator shall promulgate regulations establishing a process and requirements for accreditation by a third-party verifier that has no conflicts of interest.CommentsClose CommentsPermalink
(B) PUBLIC ACCESSIBILITY- Each verifier meeting the requirements for accreditation in accordance with this paragraph shall be listed in a publicly-accessible database, which shall be maintained and updated by the Administrator.CommentsClose CommentsPermalink
(c) Registration and Awarding of Offsets-CommentsClose CommentsPermalink
(1) IN GENERAL- Not later than 90 days after the date on which the Administrator receives a verification report required under subsection (b), the Administrator shall--CommentsClose CommentsPermalink
(A) determine whether the offsets satisfy the applicable requirements of this subtitle; andCommentsClose CommentsPermalink
(B) notify the project developer of that determination.CommentsClose CommentsPermalink
(2) AFFIRMATIVE DETERMINATION- In the case of an affirmative determination under paragraph (1), the Administrator shall--CommentsClose CommentsPermalink
(A) register the offset allowances in accordance with this subtitle; andCommentsClose CommentsPermalink
(B) issue the offset allowances.CommentsClose CommentsPermalink
(3) APPEAL AND REVIEW- The Administrator shall establish mechanisms for the appeal and review of determinations made under this subsection.CommentsClose CommentsPermalink
SEC. 2406. TRACKING OF REVERSALS FOR SEQUESTRATION PROJECTS.
(a) Reversal Certification-CommentsClose CommentsPermalink
(1) IN GENERAL- Subject to section 2402, the Administrator shall promulgate regulations requiring the submission of a reversal certification for each offset project on an annual basis following the registration of offset allowances.CommentsClose CommentsPermalink
(2) REQUIREMENTS- A reversal certification submitted in accordance with this subsection shall state--CommentsClose CommentsPermalink
(A) whether any unmitigated reversal relating to the offset project has occurred in the year preceding the year in which the certification is submitted; andCommentsClose CommentsPermalink
(B) the quantity of each unmitigated reversal.CommentsClose CommentsPermalink
(b) Effect on Offset Allowances-CommentsClose CommentsPermalink
(1) INVALIDITY- The Administrator shall declare invalid all offset allowances issued for any offset project that has undergone a complete reversal.CommentsClose CommentsPermalink
(2) PARTIAL REVERSAL- In the case of an offset project that has undergone a partial reversal, the Administrator shall render invalid offset allowances issued for the offset project in direct proportion to the degree of reversal.CommentsClose CommentsPermalink
(c) Accountability for Reversals- Liability and responsibility for compensation of a reversal of a registered offset allowance under subsection (a) shall lie with the owner of the offset allowance, as described in section 2402.CommentsClose CommentsPermalink
(d) Compensation for Reversals- The unmitigated reversal of 1 or more registered offset allowances that were submitted for the purpose of compliance with section 1202(a) shall require the submission of--CommentsClose CommentsPermalink
(1) an equal number of offset allowances; orCommentsClose CommentsPermalink
(2) a combination of offset allowances and emission allowances equal to the unmitigated reversal.CommentsClose CommentsPermalink
(e) Project Termination- A project developer may cease participation in the domestic offset program established under this subtitle at any time, on the condition that any registered allowances awarded for increases in sequestration have been compensated for by the project developer through the submission of an equal number of any combination of offset allowances and emission allowances.CommentsClose CommentsPermalink
SEC. 2407. EXAMINATIONS.
(a) Regulations- Not later than 2 years after the date of enactment of this Act, the Administrator, in conjunction with the Secretary of Agriculture, shall promulgate regulations governing the examination and auditing of offset allowances.CommentsClose CommentsPermalink
(b) Requirements- The regulations promulgated under this section shall specifically consider--CommentsClose CommentsPermalink
(1) principles for initiating and conducting examinations;CommentsClose CommentsPermalink
(2) the type or scope of examinations, including--CommentsClose CommentsPermalink
(A) reporting and recordkeeping; andCommentsClose CommentsPermalink
(B) site review or visitation;CommentsClose CommentsPermalink
(3) the rights and privileges of an examined party; andCommentsClose CommentsPermalink
(4) the establishment of an appeal process.CommentsClose CommentsPermalink
SEC. 2408. TIMING AND THE PROVISION OF OFFSET ALLOWANCES.
(a) Initiation of Offset Projects- An offset project that commences operation on or after the effective date of regulations promulgated under section 2407(a) shall be eligible to generate offset allowances under this subtitle if the offset project meets the other applicable requirements of this subtitle.CommentsClose CommentsPermalink
(b) Pre-Existing Projects-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator may allow for the transition into the Registry of offset projects and banked offset allowances that, as of the effective date of regulations promulgated under section 2407(a), are registered under or meet the standards of the Climate Registry, the California Action Registry, the GHG Registry, the Chicago Climate Exchange, the GHG CleanProjects Registry, or any other Federal, State, or private reporting programs or registries if the Administrator determines that such other offset projects and banked offset allowances under those other programs or registries satisfy the applicable requirements of this subtitle.CommentsClose CommentsPermalink
(2) EXCEPTION- An offset allowance that is expired, retired, or canceled under any other offset program, registry, or market as of the effective date of regulations promulgated under section 2407(a) shall be ineligible for transition into the Registry.CommentsClose CommentsPermalink
SEC. 2409. OFFSET REGISTRY.
In addition to the requirements established by section 2404, an offset allowance registered under this subtitle shall be accompanied in the Registry by--CommentsClose CommentsPermalink
(1) a verification report submitted pursuant to section 2405(a);CommentsClose CommentsPermalink
(2) a reversal certification submitted pursuant to section 2406(b); andCommentsClose CommentsPermalink
(3) subject to the requirements of this subtitle, any other information identified by the Administrator as being necessary to achieve the purposes of this subtitle.CommentsClose CommentsPermalink
SEC. 2410. ENVIRONMENTAL CONSIDERATIONS.
(a) Coordination To Minimize Negative Effects- In promulgating regulations under this subtitle, the Administrator, in conjunction with the Secretary of Agriculture, shall act (including by rejecting projects, if necessary) to avoid or minimize, to the maximum extent practicable, adverse effects on human health or the environment resulting from the implementation of offset projects under this subtitle.CommentsClose CommentsPermalink
(b) Report on Positive Effects- Not later than 2 years after the date of enactment of this Act, the Administrator, in conjunction with the Secretary of Agriculture, shall submit to Congress a report detailing--CommentsClose CommentsPermalink
(1) the incentives, programs, or policies capable of fostering improvements to human health or the environment in conjunction with the implementation of offset projects under this subtitle; andCommentsClose CommentsPermalink
(2) the cost of those incentives, programs, or policies.CommentsClose CommentsPermalink
(c) Use of Native Plant Species in Offset Projects- Not later than 18 months after the date of enactment of this Act, the Administrator, in conjunction with the Secretary of Agriculture, shall promulgate regulations for the selection, use, and storage of native and nonnative plant materials--CommentsClose CommentsPermalink
(1) to ensure native plant materials are given primary consideration, in accordance with applicable Department of Agriculture guidance for use of native plant materials;CommentsClose CommentsPermalink
(2) to prohibit the use of Federal- or State-designated noxious weeds; andCommentsClose CommentsPermalink
(3) to prohibit the use of a species listed by a regional or State invasive plant council within the applicable region or State.CommentsClose CommentsPermalink
SEC. 2411. PROGRAM REVIEW.
Not later than 5 years after the date of enactment of this Act, and periodically thereafter, the Administrator, in conjunction with the Secretary of Agriculture, shall review and revise, as necessary to achieve the purposes of this Act, the regulations promulgated under this subtitle.CommentsClose CommentsPermalink
SEC. 2412. RETAIL CARBON OFFSETS.
(a) Definition of Retail Carbon Offset- In this section, the term `retail carbon offset' means any carbon credit or carbon offset that cannot be used in satisfaction of any mandatory compliance obligation under a regulatory system for reducing greenhouse gas emissions.CommentsClose CommentsPermalink
(b) Qualifying Levels and Requirements- Not later than January 1, 2009, the Administrator shall establish new qualifying levels and requirements for Energy Star certification for retail carbon offsets, effective beginning January 1, 2010.CommentsClose CommentsPermalink
Subtitle E--International Emission Allowances
SEC. 2501. USE OF INTERNATIONAL EMISSION ALLOWANCES.
The owner or operator of a covered facility may satisfy up to 15 percent of the allowance submission requirement of the covered facility under section 1202(a) by submitting emission allowances obtained on a foreign greenhouse gas emissions trading market, on the condition that the Administrator has certified the market in accordance with the regulations promulgated pursuant to section 2502(a).CommentsClose CommentsPermalink
SEC. 2502. REGULATIONS.
(a) In General- Not later than 2 years after the date of enactment of this Act, the Administrator shall promulgate regulations, taking into consideration protocols adopted in accordance with the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992--CommentsClose CommentsPermalink
(1) approving the use under this subtitle of emission allowances from such foreign greenhouse gas emissions trading markets as the regulations may establish; andCommentsClose CommentsPermalink
(2) permitting the use of international emission allowances from the foreign country that issued the emission allowances.CommentsClose CommentsPermalink
(b) Requirements- The regulations promulgated under subsection (a) shall require that, in order to be approved for use under this subtitle--CommentsClose CommentsPermalink
(1) an emission allowance shall have been issued by a foreign country pursuant to a governmental program that imposes mandatory absolute tonnage limits on greenhouse gas emissions from the foreign country, or 1 or more industry sectors in that country, pursuant to protocols described in subsection (a); andCommentsClose CommentsPermalink
(2) the governmental program be of comparable stringency to the program established by this Act, including comparable monitoring, compliance, and enforcement.CommentsClose CommentsPermalink
SEC. 2503. FACILITY CERTIFICATION.
The owner or operator of a covered facility who submits an international emission allowance under this subtitle shall certify that the allowance has not been retired from use in the registry of the applicable foreign country.CommentsClose CommentsPermalink
Subtitle F--Carbon Market Efficiency Board
SEC. 2601. PURPOSES.
The purposes of this subtitle are--CommentsClose CommentsPermalink
(1) to ensure that the imposition of limits on greenhouse gas emissions will not significantly harm the economy of the United States; andCommentsClose CommentsPermalink
(2) to establish a Carbon Market Efficiency Board to ensure the implementation and maintenance of a stable, functioning, and efficient market in emission allowances.CommentsClose CommentsPermalink
SEC. 2602. ESTABLISHMENT OF CARBON MARKET EFFICIENCY BOARD.
(a) Establishment- There is established a board, to be known as the `Carbon Market Efficiency Board' (referred to in this subtitle as the `Board').CommentsClose CommentsPermalink
(b) Purposes- The purposes of the Board are--CommentsClose CommentsPermalink
(1) to promote the achievement of the purposes of this Act;CommentsClose CommentsPermalink
(2) to observe the national greenhouse gas emission market and evaluate periods during which the cost of emission allowances provided under Federal law might pose significant harm to the economy; andCommentsClose CommentsPermalink
(3) to submit to the President and Congress, and publish on the Internet, quarterly reports--CommentsClose CommentsPermalink
(A) describing--CommentsClose CommentsPermalink
(i) the status of the emission allowance market established under this Act;CommentsClose CommentsPermalink
(ii) the economic cost and benefits of the market, regional, industrial, and consumer responses to the market;CommentsClose CommentsPermalink
(iii) where practicable, energy investment responses to the market;CommentsClose CommentsPermalink
(iv) any corrective measures that should be carried out to relieve excessive net costs of the market;CommentsClose CommentsPermalink
(v) plans to compensate for those measures to ensure that the long-term emission-reduction goals of this Act are achieved; andCommentsClose CommentsPermalink
(vi) any instances of actual or potential fraud on, or manipulation of, the market that the Board has identified, and the effects of such fraud or manipulation;CommentsClose CommentsPermalink
(B) that are timely and succinct to ensure regular monitoring of market trends; andCommentsClose CommentsPermalink
(C) that are prepared independently by the Board.CommentsClose CommentsPermalink
(c) Membership-CommentsClose CommentsPermalink
(1) COMPOSITION- The Board shall be composed of--CommentsClose CommentsPermalink
(A) 7 members who are citizens of the United States, to be appointed by the President, by and with the advice and consent of the Senate; andCommentsClose CommentsPermalink
(B) an advisor who is a scientist with expertise in climate change and the effects of climate change on the environment, to be appointed by the President, by and with the advice and consent of the Senate.CommentsClose CommentsPermalink
(2) REQUIREMENTS- In appointing members of the Board under paragraph (1), the President shall--CommentsClose CommentsPermalink
(A) ensure fair representation of the financial, agricultural, industrial, and commercial sectors, and the geographical regions, of the United States, and include a representative of consumer interests;CommentsClose CommentsPermalink
(B) appoint not more than 1 member from each such geographical region; andCommentsClose CommentsPermalink
(C) ensure that not more than 4 members of the Board serving at any time are affiliated with the same political party.CommentsClose CommentsPermalink
(3) COMPENSATION-CommentsClose CommentsPermalink
(A) IN GENERAL- A member of the Board shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level II of the Executive Schedule under
(B) CHAIRPERSON- The Chairperson of the Board shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level I of the Executive Schedule under
(4) PROHIBITIONS-CommentsClose CommentsPermalink
(A) CONFLICTS OF INTEREST- An individual employed by, or holding any official relationship (including any shareholder) with, any entity engaged in the generation, transmission, distribution, or sale of energy, an individual who has any pecuniary interest in the generation, transmission, distribution, or sale of energy, or an individual who has a pecuniary interest in the implementation of this Act, shall not be appointed to the Board under this subsection.CommentsClose CommentsPermalink
(B) NO OTHER EMPLOYMENT- A member of the Board shall not hold any other employment during the term of service of the member.CommentsClose CommentsPermalink
(d) Term; Vacancies-CommentsClose CommentsPermalink
(1) TERM-CommentsClose CommentsPermalink
(A) IN GENERAL- The term of a member of the Board shall be 14 years, except that the members first appointed to the Board shall be appointed for terms in a manner that ensures that--CommentsClose CommentsPermalink
(i) the term of not more than 1 member shall expire during any 2-year period; andCommentsClose CommentsPermalink
(ii) no member serves a term of more than 14 years.CommentsClose CommentsPermalink
(B) OATH OF OFFICE- A member shall take the oath of office of the Board by not later than 15 days after the date on which the member is appointed under subsection (c)(1).CommentsClose CommentsPermalink
(C) REMOVAL-CommentsClose CommentsPermalink
(i) IN GENERAL- A member may be removed from the Board on determination of the President for cause.CommentsClose CommentsPermalink
(ii) NOTIFICATION- Not later than 30 days before removing a member from the Board for cause under clause (i), the President shall provide to Congress an advance notification of the determination by the President to remove the member.CommentsClose CommentsPermalink
(2) VACANCIES-CommentsClose CommentsPermalink
(A) IN GENERAL- A vacancy on the Board--CommentsClose CommentsPermalink
(i) shall not affect the powers of the Board; andCommentsClose CommentsPermalink
(ii) shall be filled in the same manner as the original appointment was made.CommentsClose CommentsPermalink
(B) SERVICE UNTIL NEW APPOINTMENT- A member of the Board the term of whom has expired or otherwise been terminated shall continue to serve until the date on which a replacement is appointed under subparagraph (A)(ii), if the President determines that service to be appropriate.CommentsClose CommentsPermalink
(e) Chairperson and Vice-Chairperson- Of members of the Board, the President shall appoint--CommentsClose CommentsPermalink
(1) 1 member to serve as Chairperson of the Board for a term of 4 years; andCommentsClose CommentsPermalink
(2) 1 member to serve as Vice-Chairperson of the Board for a term of 4 years.CommentsClose CommentsPermalink
(f) Meetings-CommentsClose CommentsPermalink
(1) INITIAL MEETING- The Board shall hold the initial meeting of the Board as soon as practicable after the date on which all members have been appointed to the Board under subsection (c)(1).CommentsClose CommentsPermalink
(2) PRESIDING OFFICER- A meeting of the Board shall be presided over by--CommentsClose CommentsPermalink
(A) the Chairperson;CommentsClose CommentsPermalink
(B) in any case in which the Chairperson is absent, the Vice-Chairperson; orCommentsClose CommentsPermalink
(C) in any case in which the Chairperson and Vice-Chairperson are absent, a chairperson pro tempore, to be elected by the members of the Board.CommentsClose CommentsPermalink
(3) QUORUM- Four members of the Board shall constitute a quorum for a meeting of the Board.CommentsClose CommentsPermalink
(4) OPEN MEETINGS- The Board shall be subject to
(g) Records- The Board shall be subject to
(h) Review by Government Accountability Office- Not later than January 1, 2013, and annually thereafter, the Comptroller General of the United States shall conduct a review of the efficacy of the Board in fulfilling the purposes and duties of the Board under this subtitle.CommentsClose CommentsPermalink
SEC. 2603. DUTIES.
(a) Information Gathering-CommentsClose CommentsPermalink
(1) AUTHORITY- The Board shall collect and analyze relevant market information to promote a full understanding of the dynamics of the emission allowance market established under this Act.CommentsClose CommentsPermalink
(2) INFORMATION- The Board shall gather such information as the Board determines to be appropriate regarding the status of the market, including information relating to--CommentsClose CommentsPermalink
(A) emission allowance allocation and availability;CommentsClose CommentsPermalink
(B) the price of emission allowances;CommentsClose CommentsPermalink
(C) macro- and micro-economic effects of unexpected significant increases and decreases in emission allowance prices, or shifts in the emission allowance market, should those increases, decreases, or shifts occur;CommentsClose CommentsPermalink
(D) economic effect thresholds that could warrant implementation of cost relief measures described in section 2604(a) after the initial 2-year period described in subsection (d)(2);CommentsClose CommentsPermalink
(E) in the event any cost relief measures described in section 2604(a) are taken, the effects of those measures on the market;CommentsClose CommentsPermalink
(F) maximum levels of cost relief measures that are necessary to achieve avoidance of economic harm and preserve achievement of the purposes of this Act; andCommentsClose CommentsPermalink
(G) the success of the market in promoting achievement of the purposes of this Act.CommentsClose CommentsPermalink
(b) Treatment as Primary Activity-CommentsClose CommentsPermalink
(1) IN GENERAL- During the initial 2-year period of operation of the Board, information gathering under subsection (a) shall be the primary activity of the Board.CommentsClose CommentsPermalink
(2) SUBSEQUENT AUTHORITY- After the 2-year period described in paragraph (1), the Board shall assume authority to implement the cost-relief measures described in section 2604(a).CommentsClose CommentsPermalink
(c) Study-CommentsClose CommentsPermalink
(1) IN GENERAL- During the 2-year period beginning on the date on which the emission allowance market established under this Act begins operation, the Board shall conduct a study of other markets for tradeable permits to emit covered greenhouse gases.CommentsClose CommentsPermalink
(2) REPORT- Not later than 180 days after the beginning of the period described in paragraph (1), the Board shall submit to Congress, and publish on the Internet, a report describing the status of the market, specifically with respect to volatility within the market and the average price of emission allowances during that 180-day period.CommentsClose CommentsPermalink
(d) Employment of Cost Relief Measures-CommentsClose CommentsPermalink
(1) IN GENERAL- If the Board determines that the emission allowance market established under this Act poses a significant harm to the economy of the United States, the Board shall carry out such cost relief measures relating to that market as the Board determines to be appropriate under section 2604(a).CommentsClose CommentsPermalink
(2) INITIAL PERIOD- During the 2-year period beginning on the date on which the emission allowance market established under this Act begins operation, if the Board determines that the average daily closing price of emission allowances during a 180-day period exceeds the upper range of the estimate provided under section 2605, the Board shall--CommentsClose CommentsPermalink
(A) increase the quantity of emission allowances that covered facilities may borrow from the prescribed allocations of the covered facilities for future years; andCommentsClose CommentsPermalink
(B) take subsequent action as described in section 2604(a)(2).CommentsClose CommentsPermalink
(3) REQUIREMENTS- Any action carried out pursuant to this subsection shall be subject to the requirements of section 2604(a)(3)(B).CommentsClose CommentsPermalink
(e) Reports- The Board shall submit to the President and Congress quarterly reports--CommentsClose CommentsPermalink
(1) describing the status of the emission allowance market established under this Act, the economic effects of the market, regional, industrial, and consumer responses to the market, energy investment responses to the market, the effects on the market of any fraud on, or manipulation of, the market that the Board has identified, any corrective measures that should be carried out to relieve excessive costs of the market, and plans to compensate for those measures; andCommentsClose CommentsPermalink
(2) that are prepared independently by the Board, and not in partnership with Federal agencies.CommentsClose CommentsPermalink
SEC. 2604. POWERS.
(a) Cost Relief Measures-CommentsClose CommentsPermalink
(1) IN GENERAL- Beginning on the day after the date of expiration of the 2-year period described in section 2603(b), the Board may carry out 1 or more of the following cost relief measures to ensure functioning, stable, and efficient markets for emission allowances:CommentsClose CommentsPermalink
(A) Increase the quantity of emission allowances that covered facilities may borrow from the prescribed allocations of the covered facilities for future years.CommentsClose CommentsPermalink
(B) Expand the period during which a covered facility may repay the Administrator for an emission allowance as described in subparagraph (A).CommentsClose CommentsPermalink
(C) Lower the interest rate at which an emission allowance may be borrowed as described in subparagraph (A).CommentsClose CommentsPermalink
(D) Increase the quantity of emission allowances obtained on a foreign greenhouse gas emissions trading market that the owner or operator of any covered facility may use to satisfy the allowance submission requirement of the covered facility under section 1202(a), on the condition that the Administrator has certified the market in accordance with the regulations promulgated pursuant to section 2502(a).CommentsClose CommentsPermalink
(E) Increase the quantity of offset allowances generated in accordance with subtitle D that the owner or operator of any covered facility may use to satisfy the total allowance submission requirement of the covered facility under section 1202(a).CommentsClose CommentsPermalink
(F) Expand the total quantity of emission allowances made available to all covered facilities at any given time by borrowing against the total allowable quantity of emission allowances to be provided for future years.CommentsClose CommentsPermalink
(2) SUBSEQUENT ACTIONS- On determination by the Board to carry out a cost relief measure pursuant to paragraph (1), the Board shall--CommentsClose CommentsPermalink
(A) allow the cost relief measure to be used only during the applicable allocation year;CommentsClose CommentsPermalink
(B) exercise the cost relief measure incrementally, and only as needed to avoid significant economic harm during the applicable allocation year;CommentsClose CommentsPermalink
(C) specify the terms of the relief to be achieved using the cost relief measure, including requirements for entity-level or national market-level compensation to be achieved by a specific date or within a specific time period;CommentsClose CommentsPermalink
(D) in accordance with section 2603(e), submit to the President and Congress a report describing the actions carried out by the Board and recommendations for the terms under which the cost relief measure should be authorized by Congress and carried out by Federal entities; andCommentsClose CommentsPermalink
(E) evaluate, at the end of the applicable allocation year, actions that need to be carried out during subsequent years to compensate for any cost relief measure carried out during the applicable allocation year.CommentsClose CommentsPermalink
(3) ACTION ON EXPANSION OF BORROWING-CommentsClose CommentsPermalink
(A) IN GENERAL- If the Board carries out a cost relief measure pursuant to paragraph (1) that results in the expansion of borrowing of emission allowances under this Act, and if the average daily closing price of emission allowances for the 180-day period beginning on the date on which borrowing is so expanded exceeds the upper range of the estimate provided under section 2605, the Board shall increase the quantity of emission allowances available for the applicable allocation year in accordance with this paragraph.CommentsClose CommentsPermalink
(B) REQUIREMENTS- An increase in the quantity of emission allowances under subparagraph (A) shall--CommentsClose CommentsPermalink
(i) apply to all covered facilities;CommentsClose CommentsPermalink
(ii) be allocated in accordance with the applicable formulas and procedures established under this Act;CommentsClose CommentsPermalink
(iii) be equal to not more than 5 percent of the total quantity of emission allowances otherwise available for the applicable allocation year under this Act;CommentsClose CommentsPermalink
(iv) remain in effect only for the applicable allocation year;CommentsClose CommentsPermalink
(v) specify the date by which the increase shall be repaid by covered facilities through a proportionate reduction of emission allowances available for subsequent allocation years; andCommentsClose CommentsPermalink
(vi) require the repayment under clause (v) to be made by not later than the date that is 15 years after the date on which the increase is provided.CommentsClose CommentsPermalink
(b) Assessments- Not more frequently than semiannually, the Board may levy on owners and operators of covered facilities an assessment sufficient to pay the estimated expenses of the Board and the salaries of members of and employees of the Board during the 180-day period beginning on the date on which the assessment is levied, taking into account any deficit carried forward from the preceding 180-day period.CommentsClose CommentsPermalink
(c) Limitations- Nothing in this section gives the Board the authority--CommentsClose CommentsPermalink
(1) to consider or prescribe entity-level petitions for relief from the costs of an emission allowance allocation or trading program established under Federal law;CommentsClose CommentsPermalink
(2) to carry out any investigative or punitive process under the jurisdiction of any Federal or State court;CommentsClose CommentsPermalink
(3) to interfere with, modify, or adjust any emission allowance allocation scheme established under Federal law; orCommentsClose CommentsPermalink
(4) to modify the total quantity of emission allowances issued under this Act for the period of calendar years 2012 through 2050.CommentsClose CommentsPermalink
SEC. 2605. ESTIMATE OF COSTS TO ECONOMY OF LIMITING GREENHOUSE GAS EMISSIONS.
Not later than July 1, 2014, the Administrator, using economic and scientific analyses, shall submit to Congress a report that describes--CommentsClose CommentsPermalink
(1) the projected price range at which emission allowances are expected to trade during the 2-year period of the initial greenhouse gas emission market established under Federal law; andCommentsClose CommentsPermalink
(2) the projected impact of that market on the economy of the United States.CommentsClose CommentsPermalink
TITLE III--ALLOCATING AND DISTRIBUTING ALLOWANCES
Subtitle A--Auctions
SEC. 3101. ALLOCATION FOR DEPOSITS INTO DEFICIT REDUCTION FUND.
(a) Establishment- There is established in the Treasury a fund to be known as the `Deficit Reduction Fund' (referred to in this section as the `Fund').CommentsClose CommentsPermalink
(b) Appropriations- No disbursements shall be made from the Fund except pursuant to an appropriation Act.CommentsClose CommentsPermalink
(c) Allocation- Not later than April 1, 2011, and annually thereafter through calendar year 2049, the Administrator shall allocate to the Corporation a percentage of the quantity of emission allowances established for the following calendar year, as follows:CommentsClose CommentsPermalink
----------------CommentsClose CommentsPermalink
Year Percentage CommentsClose CommentsPermalink
----------------CommentsClose CommentsPermalink
2012 6.10 CommentsClose CommentsPermalink
2013 6.33 CommentsClose CommentsPermalink
2014 6.56 CommentsClose CommentsPermalink
2015 6.79 CommentsClose CommentsPermalink
2016 7.02 CommentsClose CommentsPermalink
2017 7.25 CommentsClose CommentsPermalink
2018 7.71 CommentsClose CommentsPermalink
2019 7.94 CommentsClose CommentsPermalink
2020 8.40 CommentsClose CommentsPermalink
2021 9.09 CommentsClose CommentsPermalink
2022 9.43 CommentsClose CommentsPermalink
2023 9.89 CommentsClose CommentsPermalink
2024 10.52 CommentsClose CommentsPermalink
2025 11.16 CommentsClose CommentsPermalink
2026 11.85 CommentsClose CommentsPermalink
2027 12.77 CommentsClose CommentsPermalink
2028 13.46 CommentsClose CommentsPermalink
2029 14.15 CommentsClose CommentsPermalink
2030 14.43 CommentsClose CommentsPermalink
2031 15.99 CommentsClose CommentsPermalink
2032 15.99 CommentsClose CommentsPermalink
2033 15.99 CommentsClose CommentsPermalink
2034 15.99 CommentsClose CommentsPermalink
2035 15.99 CommentsClose CommentsPermalink
2036 15.99 CommentsClose CommentsPermalink
2037 15.99 CommentsClose CommentsPermalink
2038 15.99 CommentsClose CommentsPermalink
2039 15.99 CommentsClose CommentsPermalink
2040 15.99 CommentsClose CommentsPermalink
2041 15.99 CommentsClose CommentsPermalink
2042 15.99 CommentsClose CommentsPermalink
2043 15.99 CommentsClose CommentsPermalink
2044 15.99 CommentsClose CommentsPermalink
2045 15.99 CommentsClose CommentsPermalink
2046 15.99 CommentsClose CommentsPermalink
2047 15.99 CommentsClose CommentsPermalink
2048 15.99 CommentsClose CommentsPermalink
2049 15.99 CommentsClose CommentsPermalink
2050 15.99 CommentsClose CommentsPermalink
----------------CommentsClose CommentsPermalink
(d) Auctioning- Not later than 330 days before the beginning of a calendar year identified in the table contained in subsection (c), the Corporation shall auction all of the emission allowances allocated to the Corporation for the calendar year under subsection (c).CommentsClose CommentsPermalink
(e) Deposits- The Corporation shall deposit all proceeds of auctions conducted pursuant to subsection (d), immediately upon receipt of those proceeds, in the Fund.CommentsClose CommentsPermalink
SEC. 3102. ALLOCATION FOR EARLY AUCTIONS.
Not later than 180 days after the date of enactment of this Act, the Administrator shall allocate 5 percent of the quantity of remainder emission allowances for calendar year 2012, 3 percent of the quantity of remainder emission allowances for calendar year 2013, and 1 percent of the quantity of remainder emission allowances for calendar 2014, to the Corporation for early auctioning in accordance with section 4301.CommentsClose CommentsPermalink
SEC. 3103. ALLOCATION FOR ANNUAL AUCTIONS.
Not later than April 1, 2011, and annually thereafter through calendar year 2049, the Administrator shall allocate to the Corporation for annual auctioning a percentage of the quantity of remainder emission allowances for the following calendar year, as follows:CommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
Calendar Year Percentage of Quantity of Remainder Emission Allowances Allocated to the Corporation CommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
2012 21.5 CommentsClose CommentsPermalink
2013 24.5 CommentsClose CommentsPermalink
2014 27.5 CommentsClose CommentsPermalink
2015 29.5 CommentsClose CommentsPermalink
2016 30.5 CommentsClose CommentsPermalink
2017 31.5 CommentsClose CommentsPermalink
2018 33.5 CommentsClose CommentsPermalink
2019 34.5 CommentsClose CommentsPermalink
2020 36.5 CommentsClose CommentsPermalink
2021 39.5 CommentsClose CommentsPermalink
2022 41 CommentsClose CommentsPermalink
2023 43 CommentsClose CommentsPermalink
2024 45.75 CommentsClose CommentsPermalink
2025 48.5 CommentsClose CommentsPermalink
2026 51.5 CommentsClose CommentsPermalink
2027 55.5 CommentsClose CommentsPermalink
2028 58.5 CommentsClose CommentsPermalink
2029 61.5 CommentsClose CommentsPermalink
2030 62.75 CommentsClose CommentsPermalink
2031 69.5 CommentsClose CommentsPermalink
2032 69.5 CommentsClose CommentsPermalink
2033 69.5 CommentsClose CommentsPermalink
2034 69.5 CommentsClose CommentsPermalink
2035 69.5 CommentsClose CommentsPermalink
2036 69.5 CommentsClose CommentsPermalink
2037 69.5 CommentsClose CommentsPermalink
2038 69.5 CommentsClose CommentsPermalink
2039 69.5 CommentsClose CommentsPermalink
2040 69.5 CommentsClose CommentsPermalink
2041 69.5 CommentsClose CommentsPermalink
2042 69.5 CommentsClose CommentsPermalink
2043 69.5 CommentsClose CommentsPermalink
2044 69.5 CommentsClose CommentsPermalink
2045 69.5 CommentsClose CommentsPermalink
2046 69.5 CommentsClose CommentsPermalink
2047 69.5 CommentsClose CommentsPermalink
2048 69.5 CommentsClose CommentsPermalink
2049 69.5 CommentsClose CommentsPermalink
2050 69.5 CommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
Subtitle B--Early Action
SEC. 3201. ALLOCATION.
Not later than 2 years after the date of enactment of this Act, the Administrator shall allocate to owners or operators of covered facilities and other facilities that emit greenhouse gas, in recognition of actions of the owners and operators taken since January 1, 1994, that resulted in verified and credible reductions of greenhouse gas emissions--CommentsClose CommentsPermalink
(1) 5 percent of the quantity of remainder emission allowances for calendar year 2012;CommentsClose CommentsPermalink
(2) 4 percent of the quantity of remainder emission allowances for calendar year 2013;CommentsClose CommentsPermalink
(3) 3 percent of the quantity of remainder emission allowances for calendar year 2014;CommentsClose CommentsPermalink
(4) 2 percent of the quantity of remainder emission allowances for calendar year 2015; andCommentsClose CommentsPermalink
(5) 1 percent of the quantity of remainder emission allowances for calendar year 2016.CommentsClose CommentsPermalink
SEC. 3202. DISTRIBUTION.
(a) In General- Not later than 1 year after the date of enactment of this Act, the Administrator shall establish, by regulation, procedures and standards for use in distributing, to owners and operators of covered facilities and other facilities that emit greenhouse gas, emission allowances allocated under section 3201.CommentsClose CommentsPermalink
(b) Consideration- The procedures and standards established under subsection (a) shall provide for consideration of verified and credible emission reductions registered before the date of enactment of this Act under--CommentsClose CommentsPermalink
(1) the Climate Leaders Program, or any other voluntary greenhouse gas reduction program of the United States Environmental Protection Agency and United States Department of Energy;CommentsClose CommentsPermalink
(2) the Voluntary Reporting of Greenhouse Gases Program of the Energy Information Administration;CommentsClose CommentsPermalink
(3) State or regional greenhouse gas emission reduction programs that include systems for tracking and verifying the greenhouse gas emission reductions; andCommentsClose CommentsPermalink
(4) voluntary entity programs that resulted in entity-wide reductions in greenhouse gas emissions.CommentsClose CommentsPermalink
(c) Distribution- Not later than 4 years after the date of enactment of this Act, the Administrator shall distribute all emission allowances allocated under section 3201.CommentsClose CommentsPermalink
Subtitle C--States
SEC. 3301. ALLOCATION FOR ENERGY SAVINGS.
(a) Allocation- Not later than April 1, 2011, and annually thereafter through calendar year 2049, the Administrator shall allocate 2 percent of the quantity of remainder emission allowances for the following calendar year among States that have adopted regulations by not later than the date on which the allowance allocations are made, that subject regulated natural gas and electric utilities that deliver gas or electricity in those States to regulations that--CommentsClose CommentsPermalink
(1) automatically adjust the rates charged by natural gas and electric utilities to fully recover fixed costs of service without regard to whether their actual sales are higher or lower than the forecast of sales on which the tariffed rates were based; andCommentsClose CommentsPermalink
(2) make cost-effective energy-efficiency expenditures by investor-owned natural gas or electric utilities at least as rewarding to their shareholders as power or energy purchases, or expenditures on new energy supplies or infrastructure.CommentsClose CommentsPermalink
(b) Allocation for Building Efficiency- Not later than January 1, 2012, and annually thereafter through January 1, 2050, the Administrator shall allocate 1 percent of the quantity of remainder emission allowances among States that are in compliance with section 304(c) of the Energy Conservation and Production Act (as amended by section 5201).CommentsClose CommentsPermalink
(c) Distribution- Not later than 2 years after the date of enactment of this Act, the Administrator shall establish procedures and standards for the distribution of emission allowances to States in accordance with subsections (a) and (b).CommentsClose CommentsPermalink
(d) Use- Any State receiving emission allowances under this section for a calendar year shall retire or use, in 1 or more of the ways described in section 3303(c)(1), not less than 90 percent of the emission allowances allocated to the State (or proceeds of the sale of those allowances) under this section for the calendar year.CommentsClose CommentsPermalink
SEC. 3302. ALLOCATION FOR STATES WITH PROGRAMS THAT EXCEED FEDERAL EMISSION REDUCTION TARGETS.
(a) Allocation- Not later than April 1, 2011, and annually thereafter through calendar year 2049, the Administrator shall allocate 2 percent of the quantity of remainder emission allowances for the following calendar year among States that have--CommentsClose CommentsPermalink
(1) before the date of enactment of this Act, enacted statewide greenhouse gas emission reduction targets that are more stringent than the nationwide targets established under subtitle B of title I; andCommentsClose CommentsPermalink
(2) by the time of an allocation under this subsection, imposed on covered facilities within the States aggregate greenhouse gas emission limitations more stringent than those imposed on covered facilities under subtitle B of title I.CommentsClose CommentsPermalink
(b) Distribution- Not later than 2 years after the date of enactment of this Act, the Administrator shall establish procedures and standards for use in distributing emission allowances among States in accordance with subsection (a).CommentsClose CommentsPermalink
(c) Use- Any State receiving emission allowances under this section for a calendar year shall retire or use, in 1 or more of the ways described in section 3303(c)(1), not less than 90 percent of the emission allowances allocated to the State (or proceeds of the sale of those allowances) under this section for the calendar year.CommentsClose CommentsPermalink
SEC. 3303. GENERAL ALLOCATION.
(a) Allocation- Subject to subsection (d)(3), not later than April 1, 2011, and annually thereafter through calendar year 2049, the Administrator shall allocate 5 percent of the quantity of remainder emission allowances for the following calendar year among States.CommentsClose CommentsPermalink
(b) Distribution- The allowances available for allocation to States under subsection (a) for a calendar year shall be distributed as follows:CommentsClose CommentsPermalink
(1) For each calendar year, 1/3 of the quantity of allowances available for allocation to States under subsection (a) shall be distributed among individual States based on the proportion that--CommentsClose CommentsPermalink
(A) the expenditures of a State for the low-income home energy assistance program established under the Low-Income Home Energy Assistance Act of 1981 (
(B) the expenditures of all States for that program for the preceding calendar year.CommentsClose CommentsPermalink
(2) For each calendar year, 1/3 of the quantity of allowances available for allocation to States under subsection (a) shall be distributed among the States based on the proportion that--CommentsClose CommentsPermalink
(A) the population of a State, as determined by the most recent decennial census preceding the calendar year for which the allocation regulations are for the allocation year; bears toCommentsClose CommentsPermalink
(B) the population of all States, as determined by that census.CommentsClose CommentsPermalink
(3) For each calendar year, 1/3 of the quantity of allowances available for allocation to States under subsection (a) shall be distributed among the States based on the proportion that--CommentsClose CommentsPermalink
(A) the quantity of carbon dioxide that would be emitted assuming that all of the coal that is mined, natural gas that is processed, and petroleum that is refined within the boundaries of a State during the preceding year is completely combusted and that none of the carbon dioxide emissions are captured, as determined by the Secretary of Energy; bears toCommentsClose CommentsPermalink
(B) the aggregate quantity of carbon dioxide that would be emitted assuming that all of the coal that is mined, natural gas that is processed, and petroleum that is refined in all States for the preceding year is completely combusted and that none of the carbon dioxide emissions are captured, as determined by the Secretary of Energy.CommentsClose CommentsPermalink
(c) Use-CommentsClose CommentsPermalink
(1) IN GENERAL- During any calendar year, a State shall retire or use in 1 or more of the following ways not less than 90 percent of the allowances allocated to the State (or proceeds of sale of those emission allowances) under this section for that calendar year:CommentsClose CommentsPermalink
(A) To mitigate impacts on low-income energy consumers.CommentsClose CommentsPermalink
(B) To promote energy efficiency (including support of electricity and natural gas demand reduction, waste minimization, and recycling programs).CommentsClose CommentsPermalink
(C) To promote investment in nonemitting electricity generation technology, including planning for the siting of facilities employing that technology in States (including territorial waters of States).CommentsClose CommentsPermalink
(D) To improve public transportation and passenger rail service and otherwise promote reductions in vehicle miles traveled.CommentsClose CommentsPermalink
(E) To encourage advances in energy technology that reduce or sequester greenhouse gas emissions.CommentsClose CommentsPermalink
(F) To address local or regional impacts of climate change, including by accommodating, protecting, or relocating affected communities and public infrastructure.CommentsClose CommentsPermalink
(G) To collect, evaluate, disseminate, and use information necessary for affected coastal communities to adapt to climate change (such as information derived from inundation prediction systems).CommentsClose CommentsPermalink
(H) To mitigate obstacles to investment by new entrants in electricity generation markets and energy-intensive manufacturing sectors.CommentsClose CommentsPermalink
(I) To address local or regional impacts of climate change policy, including providing assistance to displaced workers.CommentsClose CommentsPermalink
(J) To mitigate impacts on energy-intensive industries in internationally competitive markets.CommentsClose CommentsPermalink
(K) To reduce hazardous fuels, and to prevent and suppress wildland fire.CommentsClose CommentsPermalink
(L) To fund rural, municipal, and agricultural water projects that are consistent with the sustainable use of water resources.CommentsClose CommentsPermalink
(M) To fund any other purpose the States determine to be necessary to mitigate any negative economic impacts as a result of--CommentsClose CommentsPermalink
(i) global warming; orCommentsClose CommentsPermalink
(ii) new regulatory requirements as a result of this Act.CommentsClose CommentsPermalink
(2) DEADLINE- A State shall distribute or sell allowances for use in accordance with paragraph (1) by not later than the beginning of each allowance allocation year.CommentsClose CommentsPermalink
(3) RETURN OF ALLOWANCES- Not later than 330 days before the end of each allowance allocation year, a State shall return to the Administrator any allowances not distributed by the deadline under paragraph (2).CommentsClose CommentsPermalink
(4) USE FOR RECYCLING- During any calendar year, a State shall retire or use not less than 5 percent of the emission allowances allocated to the State (or proceeds of sale of those emission allowances) under this section for increasing recycling rates through activities such as--CommentsClose CommentsPermalink
(A) improving recycling infrastructure;CommentsClose CommentsPermalink
(B) increasing public education on the benefits of recycling, particularly with respect to greenhouse gases;CommentsClose CommentsPermalink
(C) improving residential, commercial, and industrial collection of recyclables;CommentsClose CommentsPermalink
(D) improving recycling system efficiency;CommentsClose CommentsPermalink
(E) increasing recycling yields; andCommentsClose CommentsPermalink
(F) improving the quality and usefulness of recycled materials.CommentsClose CommentsPermalink
(d) Program for Tribal Communities-CommentsClose CommentsPermalink
(1) ESTABLISHMENT- Not later than 3 years after the date of enactment of this Act, the Administrator, in consultation with the Secretary of the Interior, shall by regulation establish a program for tribal communities--CommentsClose CommentsPermalink
(A) that is designed to deliver assistance to tribal communities within the United States that face disruption or dislocation as a result of global climate change; andCommentsClose CommentsPermalink
(B) under which the Administrator shall distribute 0.5 percent of the quantity of remainder emission allowances for each calendar among tribal governments of the tribal communities described in subparagraph (A).CommentsClose CommentsPermalink
(2) ALLOCATION- Beginning in the first calendar year that begins after promulgation of the regulations referred to in paragraph (1), and annually thereafter until calendar year 2050, the Administrator shall allocate 0.5 percent of the quantity of remainder emission allowances for each calendar year to the program established under paragraph (1).CommentsClose CommentsPermalink
SEC. 3304. ALLOCATION FOR MASS TRANSIT.
(a) Allocation- Not later than April 1, 2011, and annually thereafter through calendar year 2049, the Administrator shall allocate 1 percent of the quantity of remainder emission allowances for the following calendar year among States.CommentsClose CommentsPermalink
(b) Distribution- The emission allowances available for allocation to States under subsection (a) for a calendar year shall be distributed among the States based on the formula established in
(c) Use- During any calendar year, a State receiving emission allowances under this section shall--CommentsClose CommentsPermalink
(1) use the emission allowances (or proceeds of sale of those emission allowances) only for--CommentsClose CommentsPermalink
(A) the operating costs of State and municipal mass transit systems;CommentsClose CommentsPermalink
(B) efforts to increase mass transit service and ridership in the State, including by adding new mass transit systems; andCommentsClose CommentsPermalink
(C) efforts to increase the efficiency of mass transit systems through the development, purchase, or deployment of innovative technologies that reduce emissions of greenhouse gases; andCommentsClose CommentsPermalink
(2) shall ensure that use of the emission allowances (or proceeds of sale of those emission allowances) by the State for the purposes described in paragraph (1) is geographically distributed as follows:CommentsClose CommentsPermalink
(A) At least 60 percent in urban areas.CommentsClose CommentsPermalink
(B) At least 20 percent in areas that are not urban areas.CommentsClose CommentsPermalink
(C) 20 percent as the State determines to be appropriate.CommentsClose CommentsPermalink
(d) Return of Unused Emission Allowances- Any State receiving emission allowances under this section shall return to the Administrator any such emission allowance that the State has failed to use in accordance with subsection (c) by not later than 5 years after the date of receipt of the emission allowance from the Administrator.CommentsClose CommentsPermalink
(e) Use of Returned Emission Allowances- The Administrator shall immediately transfer to the Corporation for auctioning under section 4302 any emission allowances returned to the Administrator under subsection (d).CommentsClose CommentsPermalink
Subtitle D--Electricity Consumers
SEC. 3401. ALLOCATION.
Not later than April 1, 2011, and annually thereafter through calendar year 2049, the Administrator shall alloca