U.S. Congress - Text of H.R.2998 as Introduced in House American Clean Energy And Security Act of 2009
The easiest way to email your members of Congress
Donate NowH.R.2998 - American Clean Energy And Security Act of 2009
To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.
Most commented sections:
Loading Bill Text
Rollover any line of text to comment and/or link to it.
HR 2998 IHCommentsClose CommentsPermalink
111th CONGRESSCommentsClose CommentsPermalink
1st SessionCommentsClose CommentsPermalink
H. R. 2998CommentsClose CommentsPermalink
To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.CommentsClose CommentsPermalink
IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink
June 23, 2009CommentsClose CommentsPermalink
June 23, 2009CommentsClose CommentsPermalink
Mr. WAXMAN (for himself and Mr. MARKEY of Massachusetts) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Foreign Affairs, Ways and Means, Financial Services, Education and Labor, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, Oversight and Government Reform, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink
A BILLCommentsClose CommentsPermalink
To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.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 ‘American Clean Energy and Security Act of 2009’.CommentsClose CommentsPermalink
(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink
Sec. 2. Definitions.CommentsClose CommentsPermalink
Sec. 3. International participation.CommentsClose CommentsPermalink
TITLE I--CLEAN ENERGY
Subtitle A--Combined Efficiency and Renewable Electricity Standard
Sec. 101. Combined efficiency and renewable electricity standard.CommentsClose CommentsPermalink
Sec. 102. Clarifying State authority to adopt renewable energy incentives.CommentsClose CommentsPermalink
Subtitle B--Carbon Capture and Sequestration
Sec. 111. National strategy.CommentsClose CommentsPermalink
Sec. 112. Regulations for geologic sequestration sites.CommentsClose CommentsPermalink
‘Sec. 813. Geologic sequestration sites.CommentsClose CommentsPermalink
Sec. 113. Studies and reports.CommentsClose CommentsPermalink
Sec. 114. Carbon capture and sequestration demonstration and early deployment program.CommentsClose CommentsPermalink
Sec. 115. Commercial deployment of carbon capture and sequestration technologies.CommentsClose CommentsPermalink
‘Sec. 786. Commercial deployment of carbon capture and sequestration technologies.CommentsClose CommentsPermalink
Sec. 116. Performance standards for coal-fueled power plants.CommentsClose CommentsPermalink
‘Sec. 812. Performance standards for new coal-fired power plants.CommentsClose CommentsPermalink
Subtitle C--Clean Transportation
Sec. 121. Electric vehicle infrastructure.CommentsClose CommentsPermalink
Sec. 122. Large-scale vehicle electrification program.CommentsClose CommentsPermalink
Sec. 123. Plug-in electric drive vehicle manufacturing.CommentsClose CommentsPermalink
Sec. 124. Investment in clean vehicles.CommentsClose CommentsPermalink
Sec. 125. Advanced technology vehicle manufacturing incentive loans.CommentsClose CommentsPermalink
Sec. 126. Amendment to renewable fuels standard.CommentsClose CommentsPermalink
Sec. 127. Open fuel standard.CommentsClose CommentsPermalink
Sec. 128. Diesel emissions reduction.CommentsClose CommentsPermalink
Sec. 129. Loan guarantees for projects to construct renewable fuel pipelines.CommentsClose CommentsPermalink
Subtitle D--State Energy and Environment Development Accounts
Sec. 131. Establishment of SEED Accounts.CommentsClose CommentsPermalink
Sec. 132. Support of State renewable energy and energy efficiency programs.CommentsClose CommentsPermalink
Sec. 133. Support of Indian renewable energy and energy efficiency programs.CommentsClose CommentsPermalink
Subtitle E--Smart Grid Advancement
Sec. 141. Definitions.CommentsClose CommentsPermalink
Sec. 142. Assessment of Smart Grid cost effectiveness in products.CommentsClose CommentsPermalink
Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE labels.CommentsClose CommentsPermalink
Sec. 144. Smart Grid peak demand reduction goals.CommentsClose CommentsPermalink
Sec. 145. Reauthorization of energy efficiency public information program to include Smart Grid information.CommentsClose CommentsPermalink
Sec. 146. Inclusion of Smart Grid features in appliance rebate program.CommentsClose CommentsPermalink
Subtitle F--Transmission Planning
Sec. 151. Transmission planning.CommentsClose CommentsPermalink
Sec. 152. Net metering for Federal agencies.CommentsClose CommentsPermalink
Sec. 153. Support for qualified advanced electric transmission manufacturing plants, qualified high efficiency transmission property, and qualified advanced electric transmission property.CommentsClose CommentsPermalink
Subtitle G--Technical Corrections to Energy Laws
Sec. 161. Technical corrections to Energy Independence and Security Act of 2007.CommentsClose CommentsPermalink
Sec. 162. Technical corrections to Energy Policy Act of 2005.CommentsClose CommentsPermalink
Subtitle H--Energy and Efficiency Centers and Research
Sec. 171. Energy Innovation Hubs.CommentsClose CommentsPermalink
Sec. 172. Advanced energy research.CommentsClose CommentsPermalink
Sec. 173. Building Assessment Centers.CommentsClose CommentsPermalink
Sec. 174. Centers for Energy and Environmental Knowledge and Outreach.CommentsClose CommentsPermalink
Subtitle I--Nuclear and Advanced Technologies
Sec. 181. Revisions to loan guarantee program authority.CommentsClose CommentsPermalink
Sec. 182. Purpose.CommentsClose CommentsPermalink
Sec. 183. Definitions.CommentsClose CommentsPermalink
Sec. 184. Clean energy investment fund.CommentsClose CommentsPermalink
Sec. 185. Energy technology deployment goals.CommentsClose CommentsPermalink
Sec. 186. Clean energy deployment administration.CommentsClose CommentsPermalink
Sec. 187. Direct support.CommentsClose CommentsPermalink
Sec. 188. Indirect support.CommentsClose CommentsPermalink
Sec. 189. Federal credit authority.CommentsClose CommentsPermalink
Sec. 190. General provisions.CommentsClose CommentsPermalink
Sec. 191. Conforming amendments.CommentsClose CommentsPermalink
Subtitle J--Miscellaneous
Sec. 195. Increased hydroelectric generation at existing Federal facilities.CommentsClose CommentsPermalink
Sec. 196. Clean technology business competition grant program.CommentsClose CommentsPermalink
Sec. 197. National Bioenergy Partnership.CommentsClose CommentsPermalink
Sec. 198. Office of Consumer Advocacy.CommentsClose CommentsPermalink
TITLE II--ENERGY EFFICIENCY
Subtitle A--Building Energy Efficiency Programs
Sec. 201. Greater energy efficiency in building codes.CommentsClose CommentsPermalink
Sec. 202. Building retrofit program.CommentsClose CommentsPermalink
Sec. 203. Energy efficient manufactured homes.CommentsClose CommentsPermalink
Sec. 204. Building energy performance labeling program.CommentsClose CommentsPermalink
Sec. 205. Tree planting programs.CommentsClose CommentsPermalink
Sec. 206. Energy efficiency for data center buildings.CommentsClose CommentsPermalink
Subtitle B--Lighting and Appliance Energy Efficiency Programs
Sec. 211. Lighting efficiency standards.CommentsClose CommentsPermalink
Sec. 212. Other appliance efficiency standards.CommentsClose CommentsPermalink
Sec. 213. Appliance efficiency determinations and procedures.CommentsClose CommentsPermalink
Sec. 214. Best-in-Class Appliances Deployment Program.CommentsClose CommentsPermalink
Sec. 215. WaterSense.CommentsClose CommentsPermalink
Sec. 216. Federal procurement of water efficient products.CommentsClose CommentsPermalink
Sec. 217. Water efficient product rebate programs.CommentsClose CommentsPermalink
Sec. 218. Certified stoves program.CommentsClose CommentsPermalink
Sec. 219. Energy Star standards.CommentsClose CommentsPermalink
Subtitle C--Transportation Efficiency
Sec. 221. Emissions standards.CommentsClose CommentsPermalink
‘Part B--Mobile Sources
‘Sec. 821. Greenhouse gas emission standards for mobile sources.CommentsClose CommentsPermalink
Sec. 222. Greenhouse gas emissions reductions through transportation efficiency.CommentsClose CommentsPermalink
‘Part D--Transportation Emissions
‘Sec. 841. Greenhouse gas emissions reductions through transportation efficiency.CommentsClose CommentsPermalink
Sec. 223. SmartWay transportation efficiency program.CommentsClose CommentsPermalink
‘Sec. 822. SmartWay transportation efficiency program.CommentsClose CommentsPermalink
Sec. 224. State vehicle fleets.CommentsClose CommentsPermalink
Subtitle D--Industrial Energy Efficiency Programs
Sec. 241. Industrial plant energy efficiency standards.CommentsClose CommentsPermalink
Sec. 242. Electric and thermal waste energy recovery award program.CommentsClose CommentsPermalink
Sec. 243. Clarifying election of waste heat recovery financial incentives.CommentsClose CommentsPermalink
Sec. 244. Motor market assessment and commercial awareness program.CommentsClose CommentsPermalink
Sec. 245. Motor efficiency rebate program.CommentsClose CommentsPermalink
Subtitle E--Improvements in Energy Savings Performance Contracting
Sec. 251. Energy savings performance contracts.CommentsClose CommentsPermalink
Subtitle F--Public Institutions
Sec. 261. Public institutions.CommentsClose CommentsPermalink
Sec. 262. Community energy efficiency flexibility.CommentsClose CommentsPermalink
Sec. 263. Small community joint participation.CommentsClose CommentsPermalink
Sec. 264. Low income community energy efficiency program.CommentsClose CommentsPermalink
Subtitle G--Miscellaneous
Sec. 271. Energy efficient information and communications technologies.CommentsClose CommentsPermalink
Sec. 272. National energy efficiency goals.CommentsClose CommentsPermalink
Sec. 273. Affiliated island energy independence team.CommentsClose CommentsPermalink
Sec. 274. Product carbon disclosure program.CommentsClose CommentsPermalink
TITLE III--REDUCING GLOBAL WARMING POLLUTION
Sec. 301. Short title.CommentsClose CommentsPermalink
Subtitle A--Reducing Global Warming Pollution
Sec. 311. Reducing global warming pollution.CommentsClose CommentsPermalink
‘TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM
‘Part A--Global Warming Pollution Reduction Goals and Targets
‘Sec. 701. Findings and purpose.CommentsClose CommentsPermalink
‘Sec. 702. Economy-wide reduction goals.CommentsClose CommentsPermalink
‘Sec. 703. Reduction targets for specified sources.CommentsClose CommentsPermalink
‘Sec. 704. Supplemental pollution reductions.CommentsClose CommentsPermalink
‘Sec. 705. Review and program recommendations.CommentsClose CommentsPermalink
‘Sec. 706. National Academy review.CommentsClose CommentsPermalink
‘Sec. 707. Presidential response and recommendations.CommentsClose CommentsPermalink
‘Part B--Designation and Registration of Greenhouse Gases
‘Sec. 711. Designation of greenhouse gases.CommentsClose CommentsPermalink
‘Sec. 712. Carbon dioxide equivalent value of greenhouse gases.CommentsClose CommentsPermalink
‘Sec. 713. Greenhouse gas registry.CommentsClose CommentsPermalink
‘Part C--Program Rules
‘Sec. 721. Emission allowances.CommentsClose CommentsPermalink
‘Sec. 722. Prohibition of excess emissions.CommentsClose CommentsPermalink
‘Sec. 723. Penalty for noncompliance.CommentsClose CommentsPermalink
‘Sec. 724. Trading.CommentsClose CommentsPermalink
‘Sec. 725. Banking and borrowing.CommentsClose CommentsPermalink
‘Sec. 726. Strategic reserve.CommentsClose CommentsPermalink
‘Sec. 727. Permits.CommentsClose CommentsPermalink
‘Sec. 728. International emission allowances.CommentsClose CommentsPermalink
‘Part D--Offsets
‘Sec. 731. Offsets Integrity Advisory Board.CommentsClose CommentsPermalink
‘Sec. 732. Establishment of offsets program.CommentsClose CommentsPermalink
‘Sec. 733. Eligible project types.CommentsClose CommentsPermalink
‘Sec. 734. Requirements for offset projects.CommentsClose CommentsPermalink
‘Sec. 735. Approval of offset projects.CommentsClose CommentsPermalink
‘Sec. 736. Verification of offset projects.CommentsClose CommentsPermalink
‘Sec. 737. Issuance of offset credits.CommentsClose CommentsPermalink
‘Sec. 738. Audits.CommentsClose CommentsPermalink
‘Sec. 739. Program review and revision.CommentsClose CommentsPermalink
‘Sec. 740. Early offset supply.CommentsClose CommentsPermalink
‘Sec. 741. Environmental considerations.CommentsClose CommentsPermalink
‘Sec. 742. Trading.CommentsClose CommentsPermalink
‘Sec. 743. International offset credits.CommentsClose CommentsPermalink
‘Part E--Supplemental Emissions Reductions From Reduced Deforestation
‘Sec. 751. Definitions.CommentsClose CommentsPermalink
‘Sec. 752. Findings.CommentsClose CommentsPermalink
‘Sec. 753. Supplemental emissions reductions through reduced deforestation.CommentsClose CommentsPermalink
‘Sec. 754. Requirements for international deforestation reduction program.CommentsClose CommentsPermalink
‘Sec. 755. Reports and reviews.CommentsClose CommentsPermalink
‘Sec. 756. Legal effect of part.CommentsClose CommentsPermalink
Sec. 312. Definitions.CommentsClose CommentsPermalink
‘Sec. 700. Definitions.CommentsClose CommentsPermalink
Subtitle B--Disposition of Allowances
Sec. 321. Disposition of allowances for global warming pollution reduction program.CommentsClose CommentsPermalink
‘Part H--Disposition of Allowances
‘Sec. 781. Allocation of allowances for supplemental reductions.CommentsClose CommentsPermalink
‘Sec. 782. Allocation of emission allowances.CommentsClose CommentsPermalink
‘Sec. 783. Electricity consumers.CommentsClose CommentsPermalink
‘Sec. 784. Natural gas consumers.CommentsClose CommentsPermalink
‘Sec. 785. Home heating oil, propane, and kerosene consumers.CommentsClose CommentsPermalink
‘Sec. 787. Allocations to refineries.CommentsClose CommentsPermalink
‘Sec. 788. [Struck out->]CommentsClose CommentsPermalink
[ SECTION RESERVED ][<-Struck out] .CommentsClose CommentsPermalink
‘Sec. 789. Climate change consumer refunds.CommentsClose CommentsPermalink
‘Sec. 790. Exchange for State-issued allowances.CommentsClose CommentsPermalink
‘Sec. 791. Auction procedures.CommentsClose CommentsPermalink
‘Sec. 792. Auctioning allowances for other entities.CommentsClose CommentsPermalink
‘Sec. 793. Establishment of funds.CommentsClose CommentsPermalink
‘Sec. 794. Oversight of allocations.CommentsClose CommentsPermalink
Subtitle C--Additional Greenhouse Gas Standards
Sec. 331. Greenhouse gas standards.CommentsClose CommentsPermalink
‘TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS
‘Sec. 801. Definitions.CommentsClose CommentsPermalink
‘Part A--Stationary Source Standards
‘Sec. 811. Standards of performance.CommentsClose CommentsPermalink
‘Part C--Exemptions From Other Programs
‘Sec. 831. Criteria pollutants.CommentsClose CommentsPermalink
‘Sec. 832. International air pollution.CommentsClose CommentsPermalink
‘Sec. 833. Hazardous air pollutants.CommentsClose CommentsPermalink
‘Sec. 834. New source review.CommentsClose CommentsPermalink
‘Sec. 835. Title V permits.CommentsClose CommentsPermalink
Sec. 332. HFC Regulation.CommentsClose CommentsPermalink
Sec. 333. Black carbon.CommentsClose CommentsPermalink
‘Part E--Black Carbon
‘Sec. 851. Black carbon.CommentsClose CommentsPermalink
Sec. 334. States.CommentsClose CommentsPermalink
Sec. 335. State programs.CommentsClose CommentsPermalink
‘Part F--Miscellaneous
‘Sec. 861. State programs.CommentsClose CommentsPermalink
‘Sec. 862. Grants for support of air pollution control programs.CommentsClose CommentsPermalink
Sec. 336. Enforcement.CommentsClose CommentsPermalink
Sec. 337. Conforming amendments.CommentsClose CommentsPermalink
Sec. 338. Davis-Bacon compliance.CommentsClose CommentsPermalink
Sec. 339. National strategy for domestic biological carbon sequestration.CommentsClose CommentsPermalink
Subtitle D--Carbon Market Assurance
Sec. 341. Carbon market assurance.CommentsClose CommentsPermalink
Subtitle E--Additional Market Assurance
Sec. 351. Regulation of certain transactions in derivatives involving energy commodities.CommentsClose CommentsPermalink
Sec. 352. No effect on authority of the Federal Energy Regulatory Commission.CommentsClose CommentsPermalink
Sec. 353. Inspector General of the Commodity Futures Trading Commission.CommentsClose CommentsPermalink
Sec. 354. Settlement and clearing through registered derivatives clearing organizations.CommentsClose CommentsPermalink
Sec. 355. Limitation on eligibility to purchase a credit default swap.CommentsClose CommentsPermalink
Sec. 356. Transaction fees.CommentsClose CommentsPermalink
Sec. 357. No effect on antitrust law or authority of the Federal Trade Commission.CommentsClose CommentsPermalink
Sec. 358. Regulation of carbon derivatives markets.CommentsClose CommentsPermalink
Sec. 359. Cease-and-desist authority.CommentsClose CommentsPermalink
TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY
Subtitle A--Ensuring Real Reductions in Industrial Emissions
Sec. 401. Ensuring real reductions in industrial emissions.CommentsClose CommentsPermalink
‘Part F--Ensuring Real Reductions in Industrial Emissions
‘Sec. 761. Purposes.CommentsClose CommentsPermalink
‘Sec. 762. International negotiations.CommentsClose CommentsPermalink
‘Sec. 763. Definitions.CommentsClose CommentsPermalink
‘subpart 1--emission allowance rebate program
‘Sec. 764. Eligible industrial sectors.CommentsClose CommentsPermalink
‘Sec. 765. Distribution of emission allowance rebates.CommentsClose CommentsPermalink
‘subpart 2--international reserve allowance program
‘Sec. 766. International reserve allowance program.CommentsClose CommentsPermalink
‘subpart 3--presidential determination
‘Sec. 767. Presidential reports and determinations.CommentsClose CommentsPermalink
Subtitle B--Green Jobs and Worker Transition
Part 1--Green Jobs
Sec. 421. Clean energy curriculum development grants.CommentsClose CommentsPermalink
Sec. 422. Increased funding for energy worker training program.CommentsClose CommentsPermalink
Part 2--Climate Change Worker Adjustment Assistance
Sec. 425. Petitions, eligibility requirements, and determinations.CommentsClose CommentsPermalink
Sec. 426. Program benefits.CommentsClose CommentsPermalink
Sec. 427. General provisions.CommentsClose CommentsPermalink
Subtitle C--Consumer Assistance
Sec. 431. Energy refund program.CommentsClose CommentsPermalink
Sec. 432. Modification of earned income credit amount for individuals with no qualifying children.CommentsClose CommentsPermalink
Sec. 433. Protection of Social Security and Medicare trust funds.CommentsClose CommentsPermalink
Subtitle D--Exporting Clean Technology
Sec. 441. Findings and purposes.CommentsClose CommentsPermalink
Sec. 442. Definitions.CommentsClose CommentsPermalink
Sec. 443. Governance.CommentsClose CommentsPermalink
Sec. 444. Determination of eligible countries.CommentsClose CommentsPermalink
Sec. 445. Qualifying activities.CommentsClose CommentsPermalink
Sec. 446. Assistance.CommentsClose CommentsPermalink
Subtitle E--Adapting to Climate Change
Part 1--Domestic Adaptation
subpart a--national climate change adaptation program
Sec. 451. Global change research and data management.CommentsClose CommentsPermalink
Sec. 452. National Climate Service.CommentsClose CommentsPermalink
Sec. 453. State programs to build resilience to climate change impacts.CommentsClose CommentsPermalink
subpart b--public health and climate change
Sec. 461. Sense of Congress on public health and climate change.CommentsClose CommentsPermalink
Sec. 462. Relationship to other laws.CommentsClose CommentsPermalink
Sec. 463. National strategic action plan.CommentsClose CommentsPermalink
Sec. 464. Advisory board.CommentsClose CommentsPermalink
Sec. 465. Reports.CommentsClose CommentsPermalink
Sec. 466. Definitions.CommentsClose CommentsPermalink
Sec. 467. Climate Change Health Protection and Promotion Fund.CommentsClose CommentsPermalink
subpart c--natural resource adaptation
Sec. 471. Purposes.CommentsClose CommentsPermalink
Sec. 472. Natural resources climate change adaptation policy.CommentsClose CommentsPermalink
Sec. 473. Definitions.CommentsClose CommentsPermalink
Sec. 474. Council on Environmental Quality.CommentsClose CommentsPermalink
Sec. 475. Natural Resources Climate Change Adaptation Panel.CommentsClose CommentsPermalink
Sec. 476. Natural Resources Climate Change Adaptation Strategy.CommentsClose CommentsPermalink
Sec. 477. Natural resources adaptation science and information.CommentsClose CommentsPermalink
Sec. 478. Federal natural resource agency adaptation plans.CommentsClose CommentsPermalink
Sec. 479. State natural resources adaptation plans.CommentsClose CommentsPermalink
Sec. 480. Natural Resources Climate Change Adaptation Fund.CommentsClose CommentsPermalink
Sec. 481. National Wildlife Habitat and Corridors Information Program.CommentsClose CommentsPermalink
Sec. 482. Additional provisions regarding Indian tribes.CommentsClose CommentsPermalink
Part 2--International Climate Change Adaptation Program
Sec. 491. Findings and purposes.CommentsClose CommentsPermalink
Sec. 492. Definitions.CommentsClose CommentsPermalink
Sec. 493. International Climate Change Adaptation Program.CommentsClose CommentsPermalink
Sec. 494. Distribution of allowances.CommentsClose CommentsPermalink
Sec. 495. Bilateral assistance.CommentsClose CommentsPermalink
SEC. 2. DEFINITIONS.
For purposes of this Act:CommentsClose CommentsPermalink
(1) ADMINISTRATOR- The term ‘Administrator’ means the Administrator of the Environmental Protection Agency.CommentsClose CommentsPermalink
(2) STATE- The term ‘State’ has the meaning given that term in section 302 of the Clean Air Act.CommentsClose CommentsPermalink
SEC. 3. INTERNATIONAL PARTICIPATION.
The Administrator, in consultation with the Department of State and the United States Trade Representative, shall annually prepare and certify a report to the Congress regarding whether China and India have adopted greenhouse gas emissions standards at least as strict as those standards required under this Act. If the Administrator determines that China and India have not adopted greenhouse gas emissions standards at least as stringent as those set forth in this Act, the Administrator shall notify each Member of Congress of his determination, and shall release his determination to the media.CommentsClose CommentsPermalink
TITLE I--CLEAN ENERGYCommentsClose CommentsPermalink
TITLE I--CLEAN ENERGYCommentsClose CommentsPermalink
Subtitle A--Combined Efficiency and Renewable Electricity StandardCommentsClose CommentsPermalink
Subtitle A--Combined Efficiency and Renewable Electricity StandardCommentsClose CommentsPermalink
SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.
(a) In General- Title VI of the Public Utility Regulatory Policies Act of 1978 (
‘SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.
‘(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
‘(1) CHP SAVINGS- The term ‘CHP savings’ means--CommentsClose CommentsPermalink
‘(A) CHP system savings from a combined heat and power system that commences operation after the date of enactment of this section; andCommentsClose CommentsPermalink
‘(B) the increase in CHP system savings from, at any time after the date of the enactment of this section, upgrading, replacing, expanding, or increasing the utilization of a combined heat and power system that commenced operation on or before the date of enactment of this section.CommentsClose CommentsPermalink
‘(2) CHP SYSTEM SAVINGS- The term ‘CHP system savings’ means the increment of electric output of a combined heat and power system that is attributable to the higher efficiency of the combined system (as compared to the efficiency of separate production of the electric and thermal outputs).CommentsClose CommentsPermalink
‘(3) COMBINED HEAT AND POWER SYSTEM- The term ‘combined heat and power system’ means a system that uses the same energy source both for the generation of electrical or mechanical power and the production of steam or another form of useful thermal energy, provided that--CommentsClose CommentsPermalink
‘(A) the system meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; andCommentsClose CommentsPermalink
‘(B) the net sales of electricity by the facility to customers not consuming the thermal output from that facility will not exceed 50 percent of total annual electric generation by the facility.CommentsClose CommentsPermalink
‘(4) CUSTOMER FACILITY SAVINGS- The term ‘customer facility savings’ means a reduction in end-use electricity consumption (including recycled energy savings) at a facility of an end-use consumer of electricity served by a retail electric supplier, as compared to--CommentsClose CommentsPermalink
‘(A) in the case of a new facility, consumption at a reference facility of average efficiency;CommentsClose CommentsPermalink
‘(B) in the case of an existing facility, consumption at such facility during a base period, except as provided in subparagraphs (C) and (D);CommentsClose CommentsPermalink
‘(C) in the case of new equipment that replaces existing equipment with remaining useful life, the projected consumption of the existing equipment for the remaining useful life of such equipment, and thereafter, consumption of new equipment of average efficiency of the same equipment type; andCommentsClose CommentsPermalink
‘(D) in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment, consumption by new equipment of average efficiency of the same equipment type.CommentsClose CommentsPermalink
‘(5) DISTRIBUTED RENEWABLE GENERATION FACILITY- The term ‘distributed renewable generation facility’ means a facility that--CommentsClose CommentsPermalink
‘(A) generates renewable electricity;CommentsClose CommentsPermalink
‘(B) primarily serves 1 or more electricity consumers at or near the facility site; andCommentsClose CommentsPermalink
‘(C) is no greater than--CommentsClose CommentsPermalink
‘(i) 2 megawatts in capacity; orCommentsClose CommentsPermalink
‘(ii) 4 megawatts in capacity, in the case of a facility that is placed in service after the date of enactment of this section and generates electricity from a renewable energy resource other than by means of combustion.CommentsClose CommentsPermalink
‘(6) ELECTRICITY SAVINGS- The term ‘electricity savings’ means reductions in electricity consumption, relative to business-as-usual projections, achieved through measures implemented after the date of enactment of this section, limited to--CommentsClose CommentsPermalink
‘(A) customer facility savings of electricity, adjusted to reflect any associated increase in fuel consumption at the facility;CommentsClose CommentsPermalink
‘(B) reductions in distribution system losses of electricity achieved by a retail electricity distributor, as compared to losses attributable to new or replacement distribution system equipment of average efficiency;CommentsClose CommentsPermalink
‘(C) CHP savings; andCommentsClose CommentsPermalink
‘(D) fuel cell savings.CommentsClose CommentsPermalink
‘(7) FEDERAL LAND- The term ‘Federal land’ means land owned by the United States, other than land held in trust for an Indian or Indian tribe.CommentsClose CommentsPermalink
‘(8) FEDERAL RENEWABLE ELECTRICITY CREDIT- The term ‘Federal renewable electricity credit’ means a credit, representing one megawatt hour of renewable electricity, issued pursuant to subsection (e).CommentsClose CommentsPermalink
‘(9) FUEL CELL- The term ‘fuel cell’ means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by electrochemical processes occurring at separate electrodes in the device.CommentsClose CommentsPermalink
‘(10) FUEL CELL SAVINGS- The term ‘fuel cell savings’ means the electricity saved by a fuel cell that is installed after the date of enactment of this section, or by upgrading a fuel cell that commenced operation on or before the date of enactment of this section, as a result of the greater efficiency with which the fuel cell transforms fuel into electricity as compared with sources of electricity delivered through the grid, provided that--CommentsClose CommentsPermalink
‘(A) the fuel cell meets such requirements relating to efficiency and other operating characteristics as the Commission may promulgate by regulation; andCommentsClose CommentsPermalink
‘(B) the net sales of electricity from the fuel cell to customers not consuming the thermal output from the fuel cell, if any, do not exceed 50 percent of the total annual electricity generation by the fuel cell.CommentsClose CommentsPermalink
‘(11) HIGH CONSERVATION PRIORITY LAND- The term ‘high conservation priority land’ means land that is not Federal land and is--CommentsClose CommentsPermalink
‘(A) globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; orCommentsClose CommentsPermalink
‘(B) old-growth or late-successional forest, as identified by the office of the relevant State Forester or relevant State agency with regulatory jurisdiction over forestry activities.CommentsClose CommentsPermalink
‘(12) OTHER QUALIFYING ENERGY RESOURCE- The term ‘other qualifying energy resource’ means any of the following:CommentsClose CommentsPermalink
‘(A) Landfill gas.CommentsClose CommentsPermalink
‘(B) Wastewater treatment gas.CommentsClose CommentsPermalink
‘(C) Coal mine methane used to generate electricity at or near the mine mouth.CommentsClose CommentsPermalink
‘(D) Qualified waste-to-energy.CommentsClose CommentsPermalink
‘(13) QUALIFIED HYDROPOWER- The term ‘qualified hydropower’ means--CommentsClose CommentsPermalink
‘(A) energy produced from increased efficiency achieved, or additions of capacity made, on or after January 1, 1992, at a hydroelectric facility that was placed in service before that date and does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions; orCommentsClose CommentsPermalink
‘(B) energy produced from generating capacity added to a dam on or after January 1, 1992, provided that the Commission certifies that--CommentsClose CommentsPermalink
‘(i) the dam was placed in service before the date of the enactment of this section and was operated for flood control, navigation, or water supply purposes and was not producing hydroelectric power prior to the addition of such capacity;CommentsClose CommentsPermalink
‘(ii) the hydroelectric project installed on the dam is licensed (or is exempt from licensing) by the Commission and is in compliance with the terms and conditions of the license or exemption, and with other applicable legal requirements for the protection of environmental quality, including applicable fish passage requirements; andCommentsClose CommentsPermalink
‘(iii) the hydroelectric project installed on the dam is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license or exemption requirements that require changes in water surface elevation for the purpose of improving the environmental quality of the affected waterway.CommentsClose CommentsPermalink
‘(14) QUALIFIED WASTE-TO-ENERGY- The term ‘qualified waste-to-energy’ means energy from the combustion of municipal solid waste or construction, demolition, or disaster debris, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, provided that--CommentsClose CommentsPermalink
‘(A) such term shall include only the energy derived from the non-fossil biogenic portion of such waste or debris;CommentsClose CommentsPermalink
‘(B) the Commission determines, with the concurrence of the Administrator of the Environmental Protection Agency, that the total lifecycle greenhouse gas emissions attributable to the generation of electricity from such waste or debris are lower than those attributable to the likely alternative method of disposing of such waste or debris; andCommentsClose CommentsPermalink
‘(C) the owner or operator of the facility generating electricity from such energy provides to the Commission, on an annual basis--CommentsClose CommentsPermalink
‘(i) a certification that the facility is in compliance with all applicable State, tribal, and Federal environmental permits;CommentsClose CommentsPermalink
‘(ii) in the case of a facility that commenced operation before the date of enactment of this section, a certification that the facility meets emissions standards promulgated under sections 112 or 129 of the Clean Air Act (
42 U.S.C. 7412 or 7429) that apply as of the date of enactment of this section to new facilities within the relevant source category; andCommentsClose CommentsPermalink‘(iii) in the case of the combustion, pyrolization, or gasification of municipal solid waste, a certification that each local government unit from which such waste originates operates, participates in the operation of, contracts for, or otherwise provides for, recycling services for its residents.CommentsClose CommentsPermalink
‘(15) RECYCLED ENERGY SAVINGS- The term ‘recycled energy savings’ means a reduction in electricity consumption that results from a modification of an industrial or commercial system that commenced operation before the date of enactment of this section, in order to recapture electrical, mechanical, or thermal energy that would otherwise be wasted.CommentsClose CommentsPermalink
‘(16) RENEWABLE BIOMASS- The term ‘renewable biomass’ means any of the following:CommentsClose CommentsPermalink
‘(A) Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on January 1, 2009.CommentsClose CommentsPermalink
‘(B) Plant material, including waste material, harvested or collected from pastureland that was nonforested on January 1, 2009.CommentsClose CommentsPermalink
‘(C) Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food waste (but not municipal solid waste, recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals).CommentsClose CommentsPermalink
‘(D) Animal waste or animal byproducts, including products of animal waste digesters.CommentsClose CommentsPermalink
‘(E) Algae.CommentsClose CommentsPermalink
‘(F) Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a public official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line.CommentsClose CommentsPermalink
‘(G) Residues from or byproducts of milled logs.CommentsClose CommentsPermalink
‘(H) Any of the following removed from forested land that is not Federal and is not high conservation priority land:CommentsClose CommentsPermalink
‘(i) Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established--CommentsClose CommentsPermalink
‘(I) prior to January 1, 2009; orCommentsClose CommentsPermalink
‘(II) on land that, as of January 1, 2009, was cultivated or fallow and non-forested.CommentsClose CommentsPermalink
‘(ii) Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally-regenerated forests or other non-plantation forests, including for the purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation.CommentsClose CommentsPermalink
‘(iii) Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after January 1, 2009, to restore or maintain native forest types.CommentsClose CommentsPermalink
‘(iv) Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees.CommentsClose CommentsPermalink
‘(I) Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (
43 U.S.C. 1702 )), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are--CommentsClose CommentsPermalink
‘(i) not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands, components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;CommentsClose CommentsPermalink
‘(ii) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; andCommentsClose CommentsPermalink
‘(iii) harvested in accordance with Federal and State law and applicable land management plans.CommentsClose CommentsPermalink
‘(17) RENEWABLE ELECTRICITY- The term ‘renewable electricity’ means electricity generated (including by means of a fuel cell) from a renewable energy resource or other qualifying energy resources.CommentsClose CommentsPermalink
‘(18) RENEWABLE ENERGY RESOURCE- The term ‘renewable energy resource’ means each of the following:CommentsClose CommentsPermalink
‘(A) Wind energy.CommentsClose CommentsPermalink
‘(B) Solar energy.CommentsClose CommentsPermalink
‘(C) Geothermal energy.CommentsClose CommentsPermalink
‘(D) Renewable biomass.CommentsClose CommentsPermalink
‘(E) Biogas derived exclusively from renewable biomass.CommentsClose CommentsPermalink
‘(F) Biofuels derived exclusively from renewable biomass.CommentsClose CommentsPermalink
‘(G) Qualified hydropower.CommentsClose CommentsPermalink
‘(H) Marine and hydrokinetic renewable energy, as that term is defined in section 632 of the Energy Independence and Security Act of 2007 (
42 U.S.C. 17211 ).CommentsClose CommentsPermalink‘(19) RETAIL ELECTRIC SUPPLIER-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘retail electric supplier’ means, for any given year, an electric utility that sold not less than 4,000,000 megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year.CommentsClose CommentsPermalink
‘(B) INCLUSIONS AND LIMITATIONS- For purposes of determining whether an electric utility qualifies as a retail electric supplier under subparagraph (A)--CommentsClose CommentsPermalink
‘(i) the sales of any affiliate of an electric utility to electric consumers, other than sales to the affiliate’s lessees or tenants, for purposes other than resale shall be considered to be sales of such electric utility; andCommentsClose CommentsPermalink
‘(ii) sales by any electric utility to an affiliate, lessee, or tenant of such electric utility shall not be treated as sales to electric consumers.CommentsClose CommentsPermalink
‘(C) AFFILIATE- For purposes of this paragraph, the term ‘affiliate’ when used in relation to a person, means another person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, such person, as determined under regulations promulgated by the Commission.CommentsClose CommentsPermalink
‘(20) RETAIL ELECTRIC SUPPLIER’S BASE AMOUNT- The term ‘retail electric supplier’s base amount’ means the total amount of electric energy sold by the retail electric supplier, expressed in megawatt hours, to electric customers for purposes other than resale during the relevant calendar year, excluding--CommentsClose CommentsPermalink
‘(A) electricity generated by a hydroelectric facility that is not qualified hydropower;CommentsClose CommentsPermalink
‘(B) electricity generated by a nuclear generating unit placed in service after the date of enactment of this section; andCommentsClose CommentsPermalink
‘(C) the proportion of electricity generated by a fossil-fueled generating unit that is equal to the proportion of greenhouse gases produced by such unit that are captured and geologically sequestered.CommentsClose CommentsPermalink
‘(21) RETIRE AND RETIREMENT- The terms ‘retire’ and ‘retirement’ with respect to a Federal renewable electricity credit, means to disqualify such credit for any subsequent use under this section, regardless of whether the use is a sale, transfer, exchange, or submission in satisfaction of a compliance obligation.CommentsClose CommentsPermalink
‘(22) THIRD-PARTY EFFICIENCY PROVIDER- The term ‘third-party efficiency provider’ means any retailer, building owner, energy service company, financial institution or other commercial, industrial or nonprofit entity that is capable of providing electricity savings in accordance with the requirements of this section.CommentsClose CommentsPermalink
‘(23) TOTAL ANNUAL ELECTRICITY SAVINGS- The term ‘total annual electricity savings’ means electricity savings during a specified calendar year from measures implemented since the date of the enactment of this section, taking into account verified measure lifetimes or verified annual savings attrition rates, as determined in accordance with such regulations as the Commission may promulgate and measured in megawatt hours.CommentsClose CommentsPermalink
‘(b) Annual Compliance Obligation-CommentsClose CommentsPermalink
‘(1) IN GENERAL- For each of calendar years 2012 through 2039, not later than March 31 of the following calendar year, each retail electric supplier shall submit to the Commission an amount of Federal renewable electricity credits and demonstrated total annual electricity savings that, in the aggregate, is equal to such retail electric supplier’s annual combined target as set forth in subsection (d), except as otherwise provided in subsection (g).CommentsClose CommentsPermalink
‘(2) DEMONSTRATION OF SAVINGS- For purposes of this subsection, submission of demonstrated total annual electricity savings means submission of a report that demonstrates, in accordance with the requirements of subsection (f), the total annual electricity savings achieved by the retail electric supplier within the relevant compliance year.CommentsClose CommentsPermalink
‘(3) RENEWABLE ELECTRICITY CREDITS PORTION- Except as provided in paragraph (4), each retail electric supplier must submit Federal renewable electricity credits equal to at least three quarters of the retail electric supplier’s annual combined target.CommentsClose CommentsPermalink
‘(4) STATE PETITION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Upon written request from the Governor of any State (including, for purposes of this paragraph, the Mayor of the District of Columbia), the Commission shall increase, to not more than two fifths, the proportion of the annual combined targets of retail electric suppliers located within such State that may be met through submission of demonstrated total annual electricity savings, provided that such increase shall be effective only with regard to the portion of a retail electric supplier’s annual combined target that is attributable to electricity sales within such State.CommentsClose CommentsPermalink
‘(B) CONTENTS- A Governor’s request under this paragraph shall include an explanation of the Governor’s rationale for determining, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, to make such request. The request shall specify the maximum proportion of annual combined targets (not more than two fifths) that can be met through demonstrated total annual electricity savings, and the period for which such proportion shall be effective.CommentsClose CommentsPermalink
‘(C) REVISION- The Governor of any State may, after consultation with the relevant State regulatory authority and other retail electricity ratemaking authorities within the State, submit a written request for revocation or revision of a previous request submitted under this paragraph. The Commission shall grant such request, provided that--CommentsClose CommentsPermalink
‘(i) any revocation or revision shall not apply to the combined annual target for any year that is any earlier than 2 calendar years after the calendar year in which such request is submitted, so as to provide retail electric suppliers with adequate notice of such change; andCommentsClose CommentsPermalink
‘(ii) any revision shall meet the requirements of subparagraph (A).CommentsClose CommentsPermalink
‘(c) Establishment of Program- Not later than 1 year after the date of enactment of this section, the Commission shall promulgate regulations to implement and enforce the requirements of this section. In promulgating such regulations, the Commission shall, to the extent practicable--CommentsClose CommentsPermalink
‘(1) preserve the integrity, and incorporate best practices, of existing State and tribal renewable electricity and energy efficiency programs;CommentsClose CommentsPermalink
‘(2) rely upon existing and emerging State, tribal, or regional tracking systems that issue and track non-Federal renewable electricity credits; andCommentsClose CommentsPermalink
‘(3) cooperate with the States and Indian tribes to facilitate coordination between State, tribal, and Federal renewable electricity and energy efficiency programs and to minimize administrative burdens and costs to retail electric suppliers.CommentsClose CommentsPermalink
‘(d) Annual Compliance Requirement-CommentsClose CommentsPermalink
‘(1) ANNUAL COMBINED TARGETS- For each of calendar years 2012 through 2039, a retail electric supplier’s annual combined target shall be the product of--CommentsClose CommentsPermalink
‘(A) the required annual percentage for such year, as set forth in paragraph (2); andCommentsClose CommentsPermalink
‘(B) the retail electric supplier’s base amount for such year.CommentsClose CommentsPermalink
‘(2) REQUIRED ANNUAL PERCENTAGE- For each of calendar years 2012 through 2039, the required annual percentage shall be as follows:CommentsClose CommentsPermalink
-----------------------CommentsClose CommentsPermalink
-----------------------CommentsClose CommentsPermalink
2012 6.0 CommentsClose CommentsPermalink
2013 6.0 CommentsClose CommentsPermalink
2014 9.5 CommentsClose CommentsPermalink
2015 9.5 CommentsClose CommentsPermalink
2016 13.0 CommentsClose CommentsPermalink
2017 13.0 CommentsClose CommentsPermalink
2018 16.5 CommentsClose CommentsPermalink
2019 16.5 CommentsClose CommentsPermalink
2020 20.0 CommentsClose CommentsPermalink
2021 through 2039 20.0 CommentsClose CommentsPermalink
-----------------------CommentsClose CommentsPermalink
‘(e) Federal Renewable Electricity Credits-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The regulations promulgated under this section shall include provisions governing the issuance, tracking, and verification of Federal renewable electricity credits. Except as provided in paragraphs (2), (3), and (4) of this subsection, the Commission shall issue to each generator of renewable electricity, 1 Federal renewable electricity credit for each megawatt hour of renewable electricity generated by such generator after December 31, 2011. The Commission shall assign a unique serial number to each Federal renewable electricity credit.CommentsClose CommentsPermalink
‘(2) GENERATION FROM CERTAIN STATE RENEWABLE ELECTRICITY PROGRAMS- Where renewable electricity is generated with the support of payments from a retail electric supplier pursuant to a State renewable electricity program (whether through State alternative compliance payments or through payments to a State renewable electricity procurement fund or entity), the Commission shall issue Federal renewable electricity credits to such retail electric supplier for the proportion of the relevant renewable electricity generation that is attributable to the retail electric supplier’s payments, as determined pursuant to regulations issued by the Commission. For any remaining portion of the relevant renewable electricity generation, the Commission shall issue Federal renewable electricity credits to the generator, as provided in paragraph (1), except that in no event shall more than 1 Federal renewable electricity credit be issued for the same megawatt hour of electricity. In determining how Federal renewable electricity credits will be apportioned among retail electric suppliers and generators in such circumstances, the Commission shall consider information and guidance furnished by the relevant State or States.CommentsClose CommentsPermalink
‘(3) CERTAIN POWER SALES CONTRACTS- When a generator has sold renewable electricity to a retail electric supplier under a contract for power from a facility placed in service before the date of enactment of this section, and the contract does not provide for the determination of ownership of the Federal renewable electricity credits associated with such generation, the Commission shall issue such Federal renewable electricity credits to the retail electric supplier for the duration of the contract.CommentsClose CommentsPermalink
‘(4) CREDIT MULTIPLIER FOR DISTRIBUTED RENEWABLE GENERATION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Except as provided in subparagraph (B), the Commission shall issue 3 Federal renewable electricity credits for each megawatt hour of renewable electricity generated by a distributed renewable generation facility.CommentsClose CommentsPermalink
‘(B) ADJUSTMENT- Except as provided in subparagraph (C), not later than January 1, 2014, and not less frequently than every 4 years thereafter, the Commission shall review the effect of this paragraph and shall, as necessary, reduce the number of Federal renewable electricity credits per megawatt hour issued under this paragraph for any given energy source or technology, but not below 1, to ensure that such number is no higher than the Commission determines is necessary to make distributed renewable generation facilities using such source or technology cost competitive with other sources of renewable electricity generation.CommentsClose CommentsPermalink
‘(C) FACILITIES PLACED IN SERVICE AFTER ENACTMENT- For any distributed renewable generation facility placed in service after the date of enactment of this section, subparagraph (B) shall not apply for the first 10 years after the date on which the facility is placed in service. For each year during such 10-year period, the Commission shall issue to the facility the same number of Federal renewable electricity credits per megawatt hour as are issued to that facility in the year in which such facility is placed in service. After such 10-year period, the Commission shall issue Federal renewable electricity credits to the facility in accordance with the current multiplier as determined pursuant to subparagraph (B).CommentsClose CommentsPermalink
‘(5) CREDITS BASED ON QUALIFIED HYDROPOWER- For purposes of this subsection, the number of Federal renewable electricity credits issued for qualified hydropower shall be calculated--CommentsClose CommentsPermalink
‘(A) based solely on the increase in average annual generation directly resulting from the efficiency improvements or capacity additions described in subsection (a)(13)(A); andCommentsClose CommentsPermalink
‘(B) using the same water flow information used to determine a historic average annual generation baseline for the hydroelectric facility, as certified by the Commission.CommentsClose CommentsPermalink
‘(6) GENERATION FROM QUALIFIED WASTE-TO-ENERGY- In the case of electricity generated from the combustion of any municipal solid waste or construction, demolition, or disaster debris that is included in the definition of renewable biomass, or from the gasification or pyrolization of such waste or debris and the combustion of the resulting gas at the same facility, the Commission shall issue Federal renewable electricity credits only for electricity generated from qualified waste-to-energy.CommentsClose CommentsPermalink
‘(7) GENERATION FROM MIXED RENEWABLE AND NONRENEWABLE RESOURCES- If electricity is generated using both a renewable energy resource or other qualifying energy resource and an energy source that is not a renewable energy resource or other qualifying energy resource (as, for example, in the case of co-firing of renewable biomass and fossil fuel), the Commission shall issue Federal renewable electricity credits based on the proportion of the electricity that is attributable to the renewable energy resource or other qualifying energy resource.CommentsClose CommentsPermalink
‘(8) PROHIBITION AGAINST DOUBLE-COUNTING- Except as provided in paragraph (4) of this subsection, the Commission shall ensure that no more than 1 Federal renewable electricity credit will be issued for any megawatt hour of renewable electricity and that no Federal renewable electricity credit will be used more than once for compliance with this section.CommentsClose CommentsPermalink
‘(9) TRADING- The lawful holder of a Federal renewable electricity credit may sell, exchange, transfer, submit for compliance in accordance with subsection (b), or submit such credit for retirement by the Commission.CommentsClose CommentsPermalink
‘(10) BANKING- A Federal renewable electricity credit may be submitted in satisfaction of the compliance obligation set forth in subsection (b) for the compliance year in which the credit was issued or for any of the 3 immediately subsequent compliance years. The Commission shall retire any Federal renewable electricity credit that has not been retired by April 2 of the calendar year that is 3 years after the calendar year in which the credit was issued.CommentsClose CommentsPermalink
‘(11) RETIREMENT- The Commission shall retire a Federal renewable electricity credit immediately upon submission by the lawful holder of such credit, whether in satisfaction of a compliance obligation under subsection (b) or on some other basis.CommentsClose CommentsPermalink
‘(f) Electricity Savings-CommentsClose CommentsPermalink
‘(1) STANDARDS FOR MEASUREMENT OF SAVINGS- As part of the regulations promulgated under this section, the Commission shall prescribe standards and protocols for defining and measuring electricity savings and total annual electricity savings that can be counted towards the compliance obligation set forth in subsection (b). Such protocols and standards shall, at minimum--CommentsClose CommentsPermalink
‘(A) specify the types of energy efficiency and energy conservation measures that can be counted;CommentsClose CommentsPermalink
‘(B) require that energy consumption estimates for customer facilities or portions of facilities in the applicable base and current years be adjusted, as appropriate, to account for changes in weather, level of production, and building area;CommentsClose CommentsPermalink
‘(C) account for the useful life of measures;CommentsClose CommentsPermalink
‘(D) include deemed savings values for specific, commonly used measures;CommentsClose CommentsPermalink
‘(E) allow for savings from a program to be estimated based on extrapolation from a representative sample of participating customers;CommentsClose CommentsPermalink
‘(F) include procedures for counting CHP savings, recycled energy savings, and fuel cell savings;CommentsClose CommentsPermalink
‘(G) include procedures for documenting measurable and verifiable electricity savings achieved as a result of market transformation efforts;CommentsClose CommentsPermalink
‘(H) include procedures for counting electricity savings achieved by solar water heating and solar light pipe technology that has the capability to provide measurable data on the amount of megawatt-hours displaced;CommentsClose CommentsPermalink
‘(I) avoid double-counting of savings used for compliance with this section, including savings that are transferred pursuant to paragraph (3);CommentsClose CommentsPermalink
‘(J) ensure that, except as provided in subparagraph (L), the retail electric supplier claiming the savings played a significant role in achieving the savings (including through the activities of a designated agent of the supplier or through the purchase of transferred savings);CommentsClose CommentsPermalink
‘(K) include savings from programs administered by a retail electric supplier (or a retail electricity distributor that is not a retail electric supplier) that are funded by State, Federal, or other sources;CommentsClose CommentsPermalink
‘(L) in any State in which the State regulatory authority has designated 1 or more entities to administer electric ratepayer-funded efficiency programs approved by such State regulatory authority, provide that electricity savings achieved through such programs shall be distributed equitably among retail electric suppliers in accordance with the direction of the relevant State regulatory authority; andCommentsClose CommentsPermalink
‘(M) exclude savings achieved as a result of compliance with mandatory appliance and equipment efficiency standards or building codes.CommentsClose CommentsPermalink
‘(2) STANDARDS FOR THIRD-PARTY VERIFICATION OF SAVINGS- The regulations promulgated under this section shall establish procedures and standards requiring third-party verification of all reported electricity savings, including requirements for accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest.CommentsClose CommentsPermalink
‘(3) TRANSFERS OF SAVINGS-CommentsClose CommentsPermalink
‘(A) BILATERAL CONTRACTS FOR SAVINGS TRANSFERS- Subject to the limitations of this paragraph, a retail electric supplier may use electricity savings transferred, pursuant to a bilateral contract, from another retail electric supplier, an owner of an electric distribution facility that is not a retail electric supplier, a State, or a third-party efficiency provider to meet the applicable compliance obligation under subsection (b).CommentsClose CommentsPermalink
‘(B) REQUIREMENTS- Electricity savings transferred and used for compliance pursuant to this paragraph shall be--CommentsClose CommentsPermalink
‘(i) measured and verified in accordance with the procedures specified under this subsection;CommentsClose CommentsPermalink
‘(ii) reported in accordance with paragraph (4) of this subsection; andCommentsClose CommentsPermalink
‘(iii) achieved within the same State as is served by the retail electric supplier.CommentsClose CommentsPermalink
‘(C) REGULATORY APPROVAL- Nothing in this paragraph shall limit or affect the authority of a State regulatory authority to require a retail electric supplier that is regulated by such authority to obtain such authority’s authorization or approval of a contract for transfer of savings under this paragraph.CommentsClose CommentsPermalink
‘(4) REPORTING SAVINGS-CommentsClose CommentsPermalink
‘(A) REQUIREMENTS- The regulations promulgated under this section shall establish requirements governing the submission of reports to demonstrate, in accordance with the protocols and standards for measurement and third-party verification established under this subsection, the total annual electricity savings achieved by a retail electric supplier within the relevant year.CommentsClose CommentsPermalink
‘(B) REVIEW AND APPROVAL- The Commission shall review each report submitted to the Commission by a retail electric supplier and shall exclude any electricity savings that have not been adequately demonstrated in accordance with the requirements of this subsection.CommentsClose CommentsPermalink
‘(5) STATE ADMINISTRATION-CommentsClose CommentsPermalink
‘(A) DELEGATION OF AUTHORITY- Upon receipt of an application from the Governor of a State (including, for purposes of this subsection, the Mayor of the District of Columbia), the Commission may delegate to the State the authority to review and verify reported electricity savings for purposes of determining demonstrated total annual electricity savings that may be counted towards a retail electric supplier’s compliance obligation under subsection (b). The Commission shall make a substantive determination approving or disapproving a State application under this subparagraph, after notice and comment, within 180 days of receipt of a complete application.CommentsClose CommentsPermalink
‘(B) ALTERNATIVE MEASUREMENT AND VERIFICATION PROCEDURES AND STANDARDS- As part of an application submitted under subparagraph (A), a State may request to use alternative measurement and verification procedures and standards to those specified in paragraphs (1) and (2), provided the State demonstrates that such alternative procedures and standards provide a level of accuracy of measurement and verification at least equivalent to the Federal procedures and standards promulgated under paragraphs (1) and (2).CommentsClose CommentsPermalink
‘(C) REVIEW OF STATE IMPLEMENTATION- The Commission shall, not less frequently than once every 4 years, review each State’s implementation of delegated authority under this paragraph to ensure conformance with the requirements of this section. The Commission may, at any time, revoke the delegation of authority under this section upon a finding that the State is not implementing its delegated responsibilities in conformity with this paragraph. As a condition of maintaining its delegated authority under this paragraph, the Commission may require a State to submit a revised application under subparagraph (A) if the Commission has--CommentsClose CommentsPermalink
‘(i) promulgated new or substantially revised measurement and verification procedures and standards under this subsection; orCommentsClose CommentsPermalink
‘(ii) otherwise substantially revised the program established under this section.CommentsClose CommentsPermalink
‘(g) Alternative Compliance Payments-CommentsClose CommentsPermalink
‘(1) IN GENERAL- A retail electric supplier may satisfy the requirements of subsection (b) in whole or in part by submitting in accordance with this subsection, in lieu of each Federal renewable electricity credit or megawatt hour of demonstrated total annual electricity savings that would otherwise be due, a payment equal to $25, adjusted for inflation on January 1 of each year following calendar year 2009, in accordance with such regulations as the Commission may promulgate.CommentsClose CommentsPermalink
‘(2) PAYMENT TO STATE FUNDS- Except as otherwise provided in this paragraph, payments made under this subsection shall be made directly to the State or States in which the retail electric supplier is located, in proportion to the portion of the retail electric supplier’s base amount that is sold within each relevant State, provided that such payments are deposited directly into a fund in the State treasury established for this purpose and that the State uses such funds in accordance with paragraphs (3) and (4). If the Commission determines at any time that a State is in substantial noncompliance with paragraph (3) or (4), the Commission shall direct that any future alternative compliance payments that would otherwise be paid to such State under this subsection shall instead be paid to the Commission and deposited in the United States Treasury.CommentsClose CommentsPermalink
‘(3) STATE USE OF FUNDS- As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall use such payments exclusively for the purposes of--CommentsClose CommentsPermalink
‘(A) deploying technologies that generate electricity from renewable energy resources; orCommentsClose CommentsPermalink
‘(B) implementing cost-effective energy efficiency programs to achieve electricity savings.CommentsClose CommentsPermalink
‘(4) REPORTING- As a condition of continued receipt of alternative compliance payments pursuant to this subsection, a State shall, within 12 months of receipt of any such payments and at 12-month intervals thereafter until such payments are expended, provide a report to the Commission, in accordance with such regulations as the Commission may prescribe, giving a full accounting of the use of such payments, including a detailed description of the activities funded thereby.CommentsClose CommentsPermalink
‘(h) Information Collection- The Commission may require any retail electric supplier, renewable electricity generator, or such other entities as the Commission deems appropriate, to provide any information the Commission determines appropriate to carry out this section. Failure to submit such information or submission of false or misleading information under this subsection shall be a violation of this section.CommentsClose CommentsPermalink
‘(i) Enforcement and Judicial Review-CommentsClose CommentsPermalink
‘(1) FAILURE TO SUBMIT CREDITS OR DEMONSTRATE SAVINGS- If any person fails to comply with the requirements of subsection (b) or (g), such person shall be liable to pay to the Commission a civil penalty equal to the product of--CommentsClose CommentsPermalink
‘(A) double the alternative compliance payment calculated under subsection (g)(1), andCommentsClose CommentsPermalink
‘(B) the aggregate quantity of Federal renewable electricity credits, total annual electricity savings, or equivalent alternative compliance payments that the person failed to submit in violation of the requirements of subsections (b) and (g).CommentsClose CommentsPermalink
‘(2) ENFORCEMENT- The Commission shall assess a civil penalty under paragraph (1) in accordance with the procedures described in section 31(d) of the Federal Power Act (
16 U.S.C. 823b(d) ).CommentsClose CommentsPermalink‘(3) VIOLATION OF REQUIREMENT OF REGULATIONS OR ORDERS- Any person who violates, or fails or refuses to comply with, any requirement of a regulation promulgated or order issued under this section shall be subject to a civil penalty under section 316A(b) of the Federal Power Act (
16 U.S.C. 825o-1 ). Such penalty shall be assessed by the Commission in the same manner as in the case of a violation referred to in section 316A(b) of such Act.CommentsClose CommentsPermalink‘(j) Judicial Review- Any person aggrieved by a final action taken by the Commission under this section, other than the assessment of a civil penalty under subsection (i), may use the procedures for review described in section 313 of the Federal Power Act (
16 U.S.C. 825l ). For purposes of this paragraph, references to an order in section 313 of such Act shall be deemed to refer also to all other final actions of the Commission under this section other than the assessment of a civil penalty under subsection (i).CommentsClose CommentsPermalink‘(k) Savings Provisions- Nothing in this section shall--CommentsClose CommentsPermalink
‘(1) diminish or qualify any authority of a State, a political subdivision of a State, or an Indian tribe to--CommentsClose CommentsPermalink
‘(A) adopt or enforce any law or regulation respecting renewable electricity or energy efficiency, including any law or regulation establishing requirements more stringent than those established by this section, provided that no such law or regulation may relieve any person of any requirement otherwise applicable under this section; orCommentsClose CommentsPermalink
‘(B) regulate the acquisition and disposition of Federal renewable electricity credits by retail electric suppliers within the jurisdiction of such State, political subdivision, or Indian tribe, including the authority to require such retail electric supplier to acquire and submit to the Secretary for retirement Federal renewable electricity credits in excess of those submitted under this section; orCommentsClose CommentsPermalink
‘(2) affect the application of, or the responsibility for compliance with, any other provision of law or regulation, including environmental and licensing requirements.CommentsClose CommentsPermalink
‘(l) Sunset- This section expires on December 31, 2040.’.CommentsClose CommentsPermalink
(b) Conforming Amendment- The table of contents set forth in section 1(b) of the Public Utility Regulatory Policies Act of 1978 (
16 U.S.C. 2601 and following) is amended by inserting after the item relating to section 609 the following:CommentsClose CommentsPermalink
‘Sec. 610. Combined efficiency and renewable electricity standard.’.CommentsClose CommentsPermalink
SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RENEWABLE ENERGY INCENTIVES.
Section 210 of the Public Utility Regulatory Policies Act of 1978 is amended by adding at the end thereof:CommentsClose CommentsPermalink
‘(o) Clarification of State Authority to Adopt Renewable Energy Incentives- Notwithstanding any other provision of this Act or the Federal Power Act, a State legislature or regulatory authority may set the rates for a sale of electric energy by a facility generating electric energy from renewable energy sources pursuant to a State-approved production incentive program under which the facility voluntarily sells electric energy. For purposes of this subsection, ‘State-approved production incentive program’ means a requirement imposed pursuant to State law, or by a State regulatory authority acting within its authority under State law, that an electric utility purchase renewable energy (as defined in section 609 of this Act) at a specified rate.’.CommentsClose CommentsPermalink
Subtitle B--Carbon Capture and SequestrationCommentsClose CommentsPermalink
Subtitle B--Carbon Capture and SequestrationCommentsClose CommentsPermalink
SEC. 111. NATIONAL STRATEGY.
(a) In General- Not later than 1 year after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Energy, the Secretary of the Interior, and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory and other barriers to the commercial-scale deployment of carbon capture and sequestration.CommentsClose CommentsPermalink
(b) Barriers- The report under this section shall--CommentsClose CommentsPermalink
(1) identify those regulatory, legal, and other gaps and barriers that could be addressed by a Federal agency using existing statutory authority, those, if any, that require Federal legislation, and those that would be best addressed at the State, tribal, or regional level;CommentsClose CommentsPermalink
(2) identify regulatory implementation challenges, including those related to approval of State and tribal programs and delegation of authority for permitting; andCommentsClose CommentsPermalink
(3) recommend rulemakings, Federal legislation, or other actions that should be taken to further evaluate and address such barriers.CommentsClose CommentsPermalink
SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.
(a) Coordinated Certification and Permitting Process- Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by adding after section 812 (as added by section 116 of this Act) the following:CommentsClose CommentsPermalink
‘SEC. 813. GEOLOGIC SEQUESTRATION SITES.
‘(a) Coordinated Process- The Administrator shall establish a coordinated approach to certifying and permitting geologic sequestration, taking into consideration all relevant statutory authorities. In establishing such approach, the Administrator shall--CommentsClose CommentsPermalink
‘(1) take into account, and reduce redundancy with, the requirements of section 1421 of the Safe Drinking Water Act (
42 U.S.C. 300h ), as amended by section 112(b) of the American Clean Energy and Security Act of 2009, including the rulemaking for geologic sequestration wells described at 73 Fed. Reg. 43491-541 (July 25, 2008); andCommentsClose CommentsPermalink‘(2) to the extent practicable, reduce the burden on certified entities and implementing authorities.CommentsClose CommentsPermalink
‘(b) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to protect human health and the environment by minimizing the risk of escape to the atmosphere of carbon dioxide injected for purposes of geologic sequestration.CommentsClose CommentsPermalink
‘(c) Requirements- The regulations under subsection (b) shall include--CommentsClose CommentsPermalink
‘(1) a process to obtain certification for geologic sequestration under this section; andCommentsClose CommentsPermalink
‘(2) requirements for--CommentsClose CommentsPermalink
‘(A) monitoring, record keeping, and reporting for emissions associated with injection into, and escape from, geologic sequestration sites, taking into account any requirements or protocols developed under section 713;CommentsClose CommentsPermalink
‘(B) public participation in the certification process that maximizes transparency;CommentsClose CommentsPermalink
‘(C) the sharing of data between States, Indian tribes, and the Environmental Protection Agency; andCommentsClose CommentsPermalink
‘(D) other elements or safeguards necessary to achieve the purpose set forth in subsection (b).CommentsClose CommentsPermalink
‘(d) Report- Not later than 2 years after the promulgation of regulations under subsection (b), and at 3-year intervals thereafter, the Administrator shall deliver to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on geologic sequestration in the United States, and, to the extent relevant, other countries in North America. Such report shall include--CommentsClose CommentsPermalink
‘(1) data regarding injection, emissions to the atmosphere, if any, and performance of active and closed geologic sequestration sites, including those where enhanced hydrocarbon recovery operations occur;CommentsClose CommentsPermalink
‘(2) an evaluation of the performance of relevant Federal environmental regulations and programs in ensuring environmentally protective geologic sequestration practices;CommentsClose CommentsPermalink
‘(3) recommendations on how such programs and regulations should be improved or made more effective; andCommentsClose CommentsPermalink
‘(4) other relevant information.’.CommentsClose CommentsPermalink
(b) Safe Drinking Water Act Standards- Section 1421 of the Safe Drinking Water Act (
42 U.S.C. 300h ) is amended by inserting after subsection (d) the following:CommentsClose CommentsPermalink‘(e) Carbon Dioxide Geologic Sequestration Wells-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations under subsection (a) for carbon dioxide geologic sequestration wells.CommentsClose CommentsPermalink
‘(2) FINANCIAL RESPONSIBILITY- The regulations referred to in paragraph (1) shall include requirements for maintaining evidence of financial responsibility, including financial responsibility for emergency and remedial response, well plugging, site closure, and post-injection site care. Financial responsibility may be established for carbon dioxide geologic sequestration wells in accordance with regulations promulgated by the Administrator by any one, or any combination, of the following: insurance, guarantee, trust, standby trust, surety bond, letter of credit, qualification as a self-insurer, or any other method satisfactory to the Administrator.’.CommentsClose CommentsPermalink
SEC. 113. STUDIES AND REPORTS.
(a) Study of Legal Framework for Geologic Sequestration Sites-CommentsClose CommentsPermalink
(1) ESTABLISHMENT OF TASK FORCE- As soon as practicable, but not later than 6 months after the date of enactment of this Act, the Administrator shall establish a task force to be composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in environmental law, State and tribal officials with environmental expertise, representatives of State and tribal Attorneys General, representatives from the Environmental Protection Agency, the Department of the Interior, the Department of Energy, the Department of Transportation, and other relevant Federal agencies, and members of the private sector, to conduct a study of--CommentsClose CommentsPermalink
(A) existing Federal environmental statutes, State environmental statutes, and State common law that apply to geologic sequestration sites for carbon dioxide, including the ability of such laws to serve as risk management tools;CommentsClose CommentsPermalink
(B) the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites where carbon dioxide injection has been used for enhanced hydrocarbon recovery;CommentsClose CommentsPermalink
(C) the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or private sector assumption of liabilities and financial responsibilities with respect to closed geologic sequestration sites;CommentsClose CommentsPermalink
(D) private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health and safety risk from closed geologic sequestration sites; andCommentsClose CommentsPermalink
(E) the subsurface mineral rights, water rights, or property rights issues associated with geologic sequestration of carbon dioxide, including issues specific to Federal lands.CommentsClose CommentsPermalink
(2) REPORT- Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1) shall submit to Congress a report describing the results of the study conducted under that paragraph including any consensus recommendations of the task force.CommentsClose CommentsPermalink
(b) Environmental Statutes-CommentsClose CommentsPermalink
(1) STUDY- The Administrator shall conduct a study examining how, and under what circumstances, the environmental statutes for which the Environmental Protection Agency has responsibility would apply to carbon dioxide injection and geologic sequestration activities.CommentsClose CommentsPermalink
(2) REPORT- Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report describing the results of the study conducted under paragraph (1).CommentsClose CommentsPermalink
SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY DEPLOYMENT PROGRAM.
(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
(1) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
(2) DISTRIBUTION UTILITY- The term ‘distribution utility’ means an entity that distributes electricity directly to retail consumers under a legal, regulatory, or contractual obligation to do so.CommentsClose CommentsPermalink
(3) ELECTRIC UTILITY- The term ‘electric utility’ has the meaning provided by section 3(22) of the Federal Power Act (
(4) FOSSIL FUEL-BASED ELECTRICITY- The term ‘fossil fuel-based electricity’ means electricity that is produced from the combustion of fossil fuels.CommentsClose CommentsPermalink
(5) FOSSIL FUEL- The term ‘fossil fuel’ means coal, petroleum, natural gas or any derivative of coal, petroleum, or natural gas.CommentsClose CommentsPermalink
(6) CORPORATION- The term ‘Corporation’ means the Carbon Storage Research Corporation established in accordance with this section.CommentsClose CommentsPermalink
(7) QUALIFIED INDUSTRY ORGANIZATION- The term ‘qualified industry organization’ means the Edison Electric Institute, the American Public Power Association, the National Rural Electric Cooperative Association, a successor organization of such organizations, or a group of owners or operators of distribution utilities delivering fossil fuel-based electricity who collectively represent at least 20 percent of the volume of fossil fuel-based electricity delivered by distribution utilities to consumers in the United States.CommentsClose CommentsPermalink
(8) RETAIL CONSUMER- The term ‘retail consumer’ means an end-user of electricity.CommentsClose CommentsPermalink
(b) Carbon Storage Research Corporation-CommentsClose CommentsPermalink
(1) ESTABLISHMENT-CommentsClose CommentsPermalink
(A) REFERENDUM- Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the qualified industry organizations. Voting rights in such referendum shall be based on the quantity of fossil fuel-based electricity delivered to consumers in the previous calendar year or other representative period as determined by the Secretary pursuant to subsection (f). Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities pursuant to subparagraph (B). All distribution utilities voting in the referendum shall certify to the independent auditing firm the quantity of fossil fuel-based electricity represented by their vote.CommentsClose CommentsPermalink
(B) STATE REGULATORY AUTHORITIES- Upon its own motion or the petition of a qualified industry organization, each State regulatory authority shall consider its support or opposition to the creation of the Corporation under subparagraph (A). State regulatory authorities may notify the independent auditing firm referred to in subparagraph (A) of their views on the creation of the Corporation within 180 days after the date of enactment of this Act. If 40 percent or more of the State regulatory authorities submit to the independent auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations as provided in subparagraph (A).CommentsClose CommentsPermalink
(2) TERMINATION- The Corporation shall be authorized to collect assessments and conduct operations pursuant to this section for a 10-year period from the date 6 months after the date of enactment of this Act. After such 10-year period, the Corporation is no longer authorized to collect assessments and shall be dissolved on the date 15 years after such date of enactment, unless the period is extended by an Act of Congress.CommentsClose CommentsPermalink
(3) GOVERNANCE- The Corporation shall operate as a division or affiliate of the Electric Power Research Institute (referred to in this section as ‘EPRI’) and be managed by a Board of not more than 15 voting members responsible for its operations, including compliance with this section. EPRI, in consultation with the Edison Electric Institute, the American Public Power Association and the National Rural Electric Cooperative Association shall appoint the Board members under clauses (i), (ii), and (iii) of subparagraph (A) from among candidates recommended by those organizations. At least a majority of the Board members appointed by EPRI shall be representatives of distribution utilities subject to assessments under subsection (d).CommentsClose CommentsPermalink
(A) MEMBERS- The Board shall include at least one representative of each of the following:CommentsClose CommentsPermalink
(i) Investor-owned utilities.CommentsClose CommentsPermalink
(ii) Utilities owned by a State agency, a municipality, and an Indian tribe.CommentsClose CommentsPermalink
(iii) Rural electric cooperatives.CommentsClose CommentsPermalink
(iv) Fossil fuel producers.CommentsClose CommentsPermalink
(v) Nonprofit environmental organizations.CommentsClose CommentsPermalink
(vi) Independent generators or wholesale power providers.CommentsClose CommentsPermalink
(vii) Consumer groups.CommentsClose CommentsPermalink
(B) NONVOTING MEMBERS- The Board shall also include as additional nonvoting Members the Secretary of Energy or his designee and 2 representatives of State regulatory authorities as defined in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (
(4) COMPENSATION- Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses relating to their service.CommentsClose CommentsPermalink
(5) TERMS- Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2 years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year.CommentsClose CommentsPermalink
(6) STATUS OF CORPORATION- The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any other purpose, and no funds of the Corporation shall be treated as public money for purposes of chapter 33 of title 31, United States Code, or for any other purpose.CommentsClose CommentsPermalink
(c) Functions and Administration of the Corporation-CommentsClose CommentsPermalink
(1) IN GENERAL- The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under subsection (d) to issue grants and contracts to eligible entities.CommentsClose CommentsPermalink
(2) PURPOSE- The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties, be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or conversion technologies.CommentsClose CommentsPermalink
(3) ELIGIBLE ENTITIES- Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities, academic institutions, national laboratories, Federal research agencies, State and tribal research agencies, nonprofit organizations, or consortiums of 2 or more entities. Pilot-scale and similar small-scale projects are not eligible for support by the Corporation. Owners or developers of projects supported by the Corporation shall, where appropriate, share in the costs of such projects.CommentsClose CommentsPermalink
(4) GRANTS FOR EARLY MOVERS- Fifty percent of the funds raised under this section shall be provided in the form of grants to electric utilities that had, prior to the award of any grant under this section, committed resources to deploy a large scale electricity generation unit with integrated carbon capture and sequestration or conversion applied to a substantial portion of the unit’s carbon dioxide emissions. Grant funds shall be provided to defray costs incurred by such electricity utilities for at least 5 such electricity generation units.CommentsClose CommentsPermalink
(5) ADMINISTRATION- The members of the Board of Directors of the Corporation shall elect a Chairman and other officers as necessary, may establish committees and subcommittees of the Corporation, and shall adopt rules and bylaws for the conduct of business and the implementation of this section. The Board shall appoint an Executive Director and professional support staff who may be employees of the Electric Power Research Institute (EPRI). After consultation with the Technical Advisory Committee established under subsection (j), the Secretary, and the Director of the National Energy Technology Laboratory to obtain advice and recommendations on plans, programs, and project selection criteria, the Board shall establish priorities for grants, contracts, and assistance; publish requests for proposals for grants, contracts, and assistance; and award grants, contracts, and assistance competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by the Technical Advisory Committee. The Board shall give preference to applications that reflect the best overall value and prospect for achieving the purposes of the section, such as those which demonstrate an integrated approach for capture and storage or capture and conversion technologies. The Board members shall not participate in making grants or awards to entities with whom they are affiliated.CommentsClose CommentsPermalink
(6) USES OF GRANTS, CONTRACTS, AND ASSISTANCE- A grant, contract, or other assistance provided under this subsection may be used to purchase carbon dioxide when needed to conduct tests of carbon dioxide storage sites, in the case of established projects that are storing carbon dioxide emissions, or for other purposes consistent with the purposes of this section. The Corporation shall make publicly available at no cost information learned as a result of projects which it supports financially.CommentsClose CommentsPermalink
(7) INTELLECTUAL PROPERTY- The Board shall establish policies regarding the ownership of intellectual property developed as a result of Corporation grants and other forms of technology support. Such policies shall encourage individual ingenuity and invention.CommentsClose CommentsPermalink
(8) ADMINISTRATIVE EXPENSES- Up to 5 percent of the funds collected in any fiscal year under subsection (d) may be used for the administrative expenses of operating the Corporation (not including costs incurred in the determination and collection of the assessments pursuant to subsection (d)).CommentsClose CommentsPermalink
(9) PROGRAMS AND BUDGET- Before August 1 each year, the Corporation, after consulting with the Technical Advisory Committee and the Secretary and the Director of the Department’s National Energy Technology Laboratory and other interested parties to obtain advice and recommendations, shall publish for public review and comment its proposed plans, programs, project selection criteria, and projects to be funded by the Corporation for the next calendar year. The Corporation shall also publish for public review and comment a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs. The Secretary may recommend programs and activities the Secretary considers appropriate. The Corporation shall include in the first publication it issues under this paragraph a strategic plan or roadmap for the achievement of the purposes of the Corporation, as set forth in paragraph (2).CommentsClose CommentsPermalink
(10) RECORDS; AUDITS- The Corporation shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the Corporation and make public such information. The books of the Corporation shall be audited by a certified public accountant at least once each fiscal year and at such other times as the Corporation may designate. Copies of each audit shall be provided to the Congress, all Corporation board members, all qualified industry organizations, each State regulatory authority and, upon request, to other members of the industry. If the audit determines that the Corporation’s practices fail to meet generally accepted accounting principles the assessment collection authority of the Corporation under subsection (d) shall be suspended until a certified public accountant renders a subsequent opinion that the failure has been corrected. The Corporation shall make its books and records available for review by the Secretary or the Comptroller General of the United States.CommentsClose CommentsPermalink
(11) PUBLIC ACCESS- The Corporation Board’s meetings shall be open to the public and shall occur after at least 30 days advance public notice. Meetings of the Board of Directors may be closed to the public where the agenda of such meetings includes only confidential matters pertaining to project selection, the award of grants or contracts, personnel matters, or the receipt of legal advice. The minutes of all meetings of the Corporation shall be made available to and readily accessible by the public.CommentsClose CommentsPermalink
(12) ANNUAL REPORT- Each year the Corporation shall prepare and make publicly available a report which includes an identification and description of all programs and projects undertaken by the Corporation during the previous year. The report shall also detail the allocation or planned allocation of Corporation resources for each such program and project. The Corporation shall provide its annual report to the Congress, the Secretary, each State regulatory authority, and upon request to the public. The Secretary shall, not less than 60 days after receiving such report, provide to the President and Congress a report assessing the progress of the Corporation in meeting the objectives of this section.CommentsClose CommentsPermalink
(d) Assessments-CommentsClose CommentsPermalink
(1) AMOUNT- (A) In all calendar years following its establishment, the Corporation shall collect an assessment on distribution utilities for all fossil fuel-based electricity delivered directly to retail consumers (as determined under subsection (f)). The assessments shall reflect the relative carbon dioxide emission rates of different fossil fuel-based electricity, and initially shall be not less than the following amounts for coal, natural gas, and oil:CommentsClose CommentsPermalink
-------------------------------------------------------------CommentsClose CommentsPermalink
-------------------------------------------------------------CommentsClose CommentsPermalink
Fuel type Rate of assessment per kilowatt hour CommentsClose CommentsPermalink
Coal $0.00043 CommentsClose CommentsPermalink
Natural Gas $0.00022 CommentsClose CommentsPermalink
Oil $0.00032. CommentsClose CommentsPermalink
-------------------------------------------------------------CommentsClose CommentsPermalink
(B) The Corporation is authorized to adjust the assessments on fossil fuel-based electricity to reflect changes in the expected quantities of such electricity from different fuel types, such that the assessments generate not less than $1.0 billion and not more than $1.1 billion annually. The Corporation is authorized to supplement assessments through additional financial commitments.CommentsClose CommentsPermalink
(2) INVESTMENT OF FUNDS- Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds collected through assessments under this subsection, and any other funds received by the Corporation, only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States.CommentsClose CommentsPermalink
(3) REVERSION OF UNUSED FUNDS- If the Corporation does not disburse, dedicate or assign 75 percent or more of the available proceeds of the assessed fees in any calendar year 7 or more years following its establishment, due to an absence of qualified projects or similar circumstances, it shall reimburse the remaining undedicated or unassigned balance of such fees, less administrative and other expenses authorized by this section, to the distribution utilities upon which such fees were assessed, in proportion to their collected assessments.CommentsClose CommentsPermalink
(e) ERCOT-CommentsClose CommentsPermalink
(1) ASSESSMENT, COLLECTION, AND REMITTANCE- (A) Notwithstanding any other provision of this section, within ERCOT, the assessment provided for in subsection (d) shall be--CommentsClose CommentsPermalink
(i) levied directly on qualified scheduling entities, or their successor entities;CommentsClose CommentsPermalink
(ii) charged consistent with other charges imposed on qualified scheduling entities as a fee on energy used by the load-serving entities; andCommentsClose CommentsPermalink
(iii) collected and remitted by ERCOT to the Corporation in the amounts and in the same manner as set forth in subsection (d).CommentsClose CommentsPermalink
(B) The assessment amounts referred to in subparagraph (A) shall be--CommentsClose CommentsPermalink
(i) determined by the amount and types of fossil fuel-based electricity delivered directly to all retail customers in the prior calendar year beginning with the year ending immediately prior to the period described in subsection (b)(2); andCommentsClose CommentsPermalink
(ii) take into account the number of renewable energy credits retired by the load-serving entities represented by a qualified scheduling entity within the prior calendar year.CommentsClose CommentsPermalink
(2) ADMINISTRATION EXPENSES- Up to 1 percent of the funds collected in any fiscal year by ERCOT under the provisions of this subsection may be used for the administrative expenses incurred in the determination, collection and remittance of the assessments to the Corporation.CommentsClose CommentsPermalink
(3) AUDIT- ERCOT shall provide a copy of its annual audit pertaining to the administration of the provisions of this subsection to the Corporation.CommentsClose CommentsPermalink
(4) DEFINITIONS- For the purposes of this subsection:CommentsClose CommentsPermalink
(A) The term ‘ERCOT’ means the Electric Reliability Council of Texas.CommentsClose CommentsPermalink
(B) The term ‘load-serving entities’ has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.CommentsClose CommentsPermalink
(C) The term ‘qualified scheduling entities’ has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.CommentsClose CommentsPermalink
(D) The term ‘renewable energy credit’ has the meaning as promulgated and adopted by the Public Utility Commission of Texas pursuant to section 39.904(b) of the Public Utility Regulatory Act of 1999, and in effect on the date of enactment of this Act.CommentsClose CommentsPermalink
(f) Determination of Fossil Fuel-based Electricity Deliveries-CommentsClose CommentsPermalink
(1) FINDINGS- The Congress finds that:CommentsClose CommentsPermalink
(A) The assessments under subsection (d) are to be collected based on the amount of fossil fuel-based electricity delivered by each distribution utility.CommentsClose CommentsPermalink
(B) Since many distribution utilities purchase all or part of their retail consumer’s electricity needs from other entities, it may not be practical to determine the precise fuel mix for the power sold by each individual distribution utility.CommentsClose CommentsPermalink
(C) It may be necessary to use average data, often on a regional basis with reference to Regional Transmission Organization (‘RTO’) or NERC regions, to make the determinations necessary for making assessments.CommentsClose CommentsPermalink
(2) DOE PROPOSED RULE- The Secretary, acting in close consultation with the Energy Information Administration, shall issue for notice and comment a proposed rule to determine the level of fossil fuel electricity delivered to retail customers by each distribution utility in the United States during the most recent calendar year or other period determined to be most appropriate. Such proposed rule shall balance the need to be efficient, reasonably precise, and timely, taking into account the nature and cost of data currently available and the nature of markets and regulation in effect in various regions of the country. Different methodologies may be applied in different regions if appropriate to obtain the best balance of such factors.CommentsClose CommentsPermalink
(3) FINAL RULE- Within 6 months after the date of enactment of this Act, and after opportunity for comment, the Secretary shall issue a final rule under this subsection for determining the level and type of fossil fuel-based electricity delivered to retail customers by each distribution utility in the United States during the appropriate period. In issuing such rule, the Secretary may consider opportunities and costs to develop new data sources in the future and issue recommendations for the Energy Information Administration or other entities to collect such data. After notice and opportunity for comment the Secretary may, by rule, subsequently update and modify the methodology for making such determinations.CommentsClose CommentsPermalink
(4) ANNUAL DETERMINATIONS- Pursuant to the final rule issued under paragraph (3), the Secretary shall make annual determinations of the amounts and types for each such utility and publish such determinations in the Federal Register. Such determinations shall be used to conduct the referendum under subsection (b) and by the Corporation in applying any assessment under this subsection.CommentsClose CommentsPermalink
(5) REHEARING AND JUDICIAL REVIEW- The owner or operator of any distribution utility that believes that the Secretary has misapplied the methodology in the final rule in determining the amount and types of fossil fuel electricity delivered by such distribution utility may seek rehearing of such determination within 30 days of publication of the determination in the Federal Register. The Secretary shall decide such rehearing petitions within 30 days. The Secretary’s determinations following rehearing shall be final and subject to judicial review in the United States Court of Appeals for the District of Columbia.CommentsClose CommentsPermalink
(g) Compliance With Corporation Assessments- The Corporation may bring an action in the appropriate court of the United States to compel compliance with an assessment levied by the Corporation under this section. A successful action for compliance under this subsection may also require payment by the defendant of the costs incurred by the Corporation in bringing such action.CommentsClose CommentsPermalink
(h) Midcourse Review- Not later than 5 years following establishment of the Corporation, the Comptroller General of the United States shall prepare an analysis, and report to Congress, assessing the Corporation’s activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of carbon capture and storage technologies, adequacy of funding, and administration of funds. The report shall also make such recommendations as may be appropriate in each of these areas. The Corporation shall reimburse the Government Accountability Office for the costs associated with performing this midcourse review.CommentsClose CommentsPermalink
(i) Recovery of Costs-CommentsClose CommentsPermalink
(1) IN GENERAL- A distribution utility whose transmission, delivery, or sales of electric energy are subject to any form of rate regulation shall not be denied the opportunity to recover the full amount of the prudently incurred costs associated with complying with this section, consistent with applicable State or Federal law.CommentsClose CommentsPermalink
(2) RATEPAYER REBATES- Regulatory authorities that approve cost recovery pursuant to paragraph (1) may order rebates to ratepayers to the extent that distribution utilities are reimbursed undedicated or unassigned balances pursuant to subsection (d)(3).CommentsClose CommentsPermalink
(j) Technical Advisory Committee-CommentsClose CommentsPermalink
(1) ESTABLISHMENT- There is established an advisory committee, to be known as the ‘Technical Advisory Committee’.CommentsClose CommentsPermalink
(2) MEMBERSHIP- The Technical Advisory Committee shall be comprised of not less than 7 members appointed by the Board from among academic institutions, national laboratories, independent research institutions, and other qualified institutions. No member of the Committee shall be affiliated with EPRI or with any organization having members serving on the Board. At least one member of the Committee shall be appointed from among officers or employees of the Department of Energy recommended to the Board by the Secretary of Energy.CommentsClose CommentsPermalink
(3) CHAIRPERSON AND VICE CHAIRPERSON- The Board shall designate one member of the Technical Advisory Committee to serve as Chairperson of the Committee and one to serve as Vice Chairperson of the Committee.CommentsClose CommentsPermalink
(4) COMPENSATION- The Board shall provide compensation to members of the Technical Advisory Committee for travel and other incidental expenses and such other compensation as the Board determines to be necessary.CommentsClose CommentsPermalink
(5) PURPOSE- The Technical Advisory Committee shall provide independent assessments and technical evaluations, as well as make non-binding recommendations to the Board, concerning Corporation activities, including but not limited to the following:CommentsClose CommentsPermalink
(A) Reviewing and evaluating the Corporation’s plans and budgets described in subsection (c)(9), as well as any other appropriate areas, which could include approaches to prioritizing technologies, appropriateness of engineering techniques, monitoring and verification technologies for storage, geological site selection, and cost control measures.CommentsClose CommentsPermalink
(B) Making annual non-binding recommendations to the Board concerning any of the matters referred to in subparagraph (A), as well as what types of investments, scientific research, or engineering practices would best further the goals of the Corporation.CommentsClose CommentsPermalink
(6) PUBLIC AVAILABILITY- All reports, evaluations, and other materials of the Technical Advisory Committee shall be made available to the public by the Board, without charge, at time of receipt by the Board.CommentsClose CommentsPermalink
(k) Lobbying Restrictions- No funds collected by the Corporation shall be used in any manner for influencing legislation or elections, except that the Corporation may recommend to the Secretary and the Congress changes in this section or other statutes that would further the purposes of this section.CommentsClose CommentsPermalink
(l) Davis-Bacon Compliance- The Corporation shall ensure that entities receiving grants, contracts, or other financial support from the Corporation for the project activities authorized by this section are in compliance with the Davis-Bacon Act (
SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.
Part H of title VII of the Clean Air Act (as added by section 321 of this Act) is amended by adding the following new section after section 785:CommentsClose CommentsPermalink
‘SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.
‘(a) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations providing for the distribution of emission allowances allocated pursuant to section 782(f), pursuant to the requirements of this section, to support the commercial deployment of carbon capture and sequestration technologies in both electric power generation and industrial operations.CommentsClose CommentsPermalink
‘(b) Eligibility Criteria- For an owner or operator of a project to be eligible to receive emission allowances under this section, the project must--CommentsClose CommentsPermalink
‘(1) implement carbon capture and sequestration technology--CommentsClose CommentsPermalink
‘(A) at an electric generating unit that--CommentsClose CommentsPermalink
‘(i) has a nameplate capacity of 200 megawatts or more;CommentsClose CommentsPermalink
‘(ii) in the case of a retrofit application, applies the carbon capture and sequestration technology to the flue gas from at least 200 megawatts of the total nameplate generating capacity of the unit, provided that clause (i) shall apply without exception;CommentsClose CommentsPermalink
‘(iii) derives at least 50 percent of its annual fuel input from coal, petroleum coke, or any combination of these 2 fuels; andCommentsClose CommentsPermalink
‘(iv) upon implementation of capture and sequestration technology, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by--CommentsClose CommentsPermalink
‘(I) the unit, measured on an annual basis, determined in accordance with section 812(b)(2); orCommentsClose CommentsPermalink
‘(II) in the case of retrofit applications under clause (ii), the treated portion of flue gas from the unit, measured on an annual basis, determined in accordance with section 812(b)(2); orCommentsClose CommentsPermalink
‘(B) at an industrial source that--CommentsClose CommentsPermalink
‘(i) absent carbon capture and sequestration, would emit greater than 50,000 tons per year of carbon dioxide;CommentsClose CommentsPermalink
‘(ii) upon implementation, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the emission point, measured on an annual basis, determined in accordance with section 812(b)(2); andCommentsClose CommentsPermalink
‘(iii) does not produce a liquid transportation fuel from a solid fossil-based feedstock;CommentsClose CommentsPermalink
‘(2) geologically sequester carbon dioxide at a site that meets all applicable permitting and certification requirements for geologic sequestration, or, pursuant to such requirements as the Administrator may prescribe by regulation, convert captured carbon dioxide to a stable form that will safely and permanently sequester such carbon dioxide;CommentsClose CommentsPermalink
‘(3) meet all other applicable State, tribal, and Federal permitting requirements; andCommentsClose CommentsPermalink
‘(4) be located in the United States.CommentsClose CommentsPermalink
‘(c) Phase I Distribution to Electric Generating Units-CommentsClose CommentsPermalink
‘(1) APPLICATION- This subsection shall apply only to projects at the first 6 gigawatts of electric generating units, measured in cumulative generating capacity of such units, that receive allowances under this section.CommentsClose CommentsPermalink
‘(2) DISTRIBUTION- The Administrator shall distribute emission allowances allocated under section 782(f) to the owner or operator of each eligible project at an electric generating unit in a quantity equal to the quotient obtained by dividing--CommentsClose CommentsPermalink
‘(A) the product obtained by multiplying--CommentsClose CommentsPermalink
‘(i) the number of metric tons of carbon dioxide emissions avoided through capture and sequestration of emissions by the project, as determined pursuant to such methodology as the Administrator shall prescribe by regulation; andCommentsClose CommentsPermalink
‘(ii) a bonus allowance value, pursuant to paragraph (3); byCommentsClose CommentsPermalink
‘(B) the average fair market value of an emission allowance during the preceding year.CommentsClose CommentsPermalink
‘(3) BONUS ALLOWANCE VALUES-CommentsClose CommentsPermalink
‘(A) For a generating unit achieving the capture and sequestration of 85 percent or more of the carbon dioxide that otherwise would be emitted by such unit, the bonus allowance value shall be $90 per ton.CommentsClose CommentsPermalink
‘(B) The Administrator shall by regulation establish a bonus allowance value for each rate of lower capture and sequestration achieved by a generating unit, from a minimum of $50 per ton for a 50 percent rate and varying directly with increasing rates of capture and sequestration up to $90 per ton for an 85 percent rate.CommentsClose CommentsPermalink
‘(C) For a generating unit that achieves the capture and sequestration of at least 50 percent of the carbon dioxide that otherwise would be emitted by such unit by not later than January 1, 2017, the otherwise applicable bonus allowance value under this paragraph shall be increased by $10, provided that the owner of such unit notifies the Administrator by not later than January 1, 2012, of its intent to achieve such rate of capture and sequestration.CommentsClose CommentsPermalink
‘(D) For a carbon capture and sequestration project sequestering in a geological formation for purposes of enhanced hydrocarbon recovery, the Administrator shall, by regulation, reduce the applicable bonus allowance value under this paragraph to reflect the lower net cost of the project when compared to sequestration into geological formations solely for purposes of sequestration.CommentsClose CommentsPermalink
‘(E) The Administrator shall annually adjust for inflation the bonus allowance values established under this paragraph.CommentsClose CommentsPermalink
‘(d) Phase II Distribution to Electric Generating Units-CommentsClose CommentsPermalink
‘(1) APPLICATION- This subsection shall apply only to the distribution of emission allowances for carbon capture and sequestration projects at electric generating units after the capacity threshold identified in subsection (c)(1) is reached.CommentsClose CommentsPermalink
‘(2) REGULATIONS- Not later than 2 years prior to the date on which the capacity threshold identified in subsection (c)(1) is projected to be reached, the Administrator shall promulgate regulations to govern the distribution of emission allowances to the owners or operators of eligible projects under this subsection.CommentsClose CommentsPermalink
‘(3) REVERSE AUCTIONS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Except as provided in paragraph (4), the regulations promulgated under paragraph (2) shall provide for the distribution of emission allowances to the owners or operators of eligible projects under this subsection through reverse auctions, which shall be held no less frequently than once each calendar year. The Administrator may establish a separate auction for each of no more than 5 different project categories, defined on the basis of coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof. The Administrator may establish appropriate minimum rates of capture and sequestration in implementing this paragraph.CommentsClose CommentsPermalink
‘(B) AUCTION PROCESS- At each reverse auction--CommentsClose CommentsPermalink
‘(i) the Administrator shall solicit bids from eligible projects;CommentsClose CommentsPermalink
‘(ii) eligible projects participating in the auction shall submit a bid including the desired level of carbon dioxide sequestration incentive per ton and the estimated quantity of carbon dioxide that the project will permanently sequester over 10 years; andCommentsClose CommentsPermalink
‘(iii) the Administrator shall select bids, within each auction, for the sequestration amount submitted, beginning with the eligible project submitting the bid for the lowest level of sequestration incentive on a per ton basis and meeting such other requirements as the Administrator may specify, until the amount of funds available for the reverse auction is committed.CommentsClose CommentsPermalink
‘(C) FORM OF DISTRIBUTION- The Administrator shall distribute emission allowances to the owners or operators of eligible projects selected through a reverse auction under this paragraph pursuant to a formula equivalent to that described in subsection (c)(2), except that the bonus allowance value that is bid by the entity shall be substituted for the bonus allowance values set forth in subsection (c)(3).CommentsClose CommentsPermalink
‘(4) ALTERNATIVE DISTRIBUTION METHOD-CommentsClose CommentsPermalink
‘(A) IN GENERAL- If the Administrator determines that reverse auctions would not provide for efficient and cost-effective commercial deployment of carbon capture and sequestration technologies, the Administrator may instead, through regulations promulgated under paragraph (2) or (5), prescribe a schedule for the award of bonus allowances to the owners or operators of eligible projects under this subsection, in accordance with the requirements of this paragraph.CommentsClose CommentsPermalink
‘(B) MULTIPLE TRANCHES- The Administrator shall divide emission allowances available for distribution to the owners or operators of eligible projects into a series of tranches, each supporting the deployment of a specified quantity of cumulative electric generating capacity utilizing carbon capture and sequestration technology, each of which shall not be greater than 6 gigawatts.CommentsClose CommentsPermalink
‘(C) METHOD OF DISTRIBUTION- The Administrator shall distribute emission allowances within each tranche, on a first-come, first-served basis--CommentsClose CommentsPermalink
‘(i) based on the date of full-scale operation of capture and sequestration technology; andCommentsClose CommentsPermalink
‘(ii) pursuant to a formula, similar to that set forth in subsection (c)(2) (except that the Administrator shall prescribe bonus allowance values different than those set forth in subsection (c)(3)), establishing the number of allowances to be distributed per ton of carbon dioxide sequestered by the project.CommentsClose CommentsPermalink
‘(D) REQUIREMENTS- For each tranche established pursuant to subparagraph (B), the Administrator shall establish a schedule for distributing emission allowances that--CommentsClose CommentsPermalink
‘(i) is based on a sliding scale that provides higher bonus allowance values for projects achieving higher rates of capture and sequestration;CommentsClose CommentsPermalink
‘(ii) for each capture and sequestration rate, establishes a bonus allowance value that is lower than that established for such rate in the previous tranche (or, in the case of the first tranche, than that established for such rate under subsection (c)(3)); andCommentsClose CommentsPermalink
‘(iii) may establish different bonus allowance levels for no more than 5 different project categories, defined by coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof.CommentsClose CommentsPermalink
‘(E) CRITERIA FOR ESTABLISHING BONUS ALLOWANCE VALUES- In setting bonus allowance values under this paragraph, the Administrator shall seek to cover no more than the reasonable incremental capital and operating costs of a project that are attributable to implementation of carbon capture, transportation, and sequestration technologies, taking into account--CommentsClose CommentsPermalink
‘(i) the reduced cost of compliance with section 722 of this Act;CommentsClose CommentsPermalink
‘(ii) the reduced cost associated with sequestering in a geological formation for purposes of enhanced hydrocarbon recovery when compared to sequestration into geological formations solely for purposes of sequestration;CommentsClose CommentsPermalink
‘(iii) the relevant factors defining the project category; andCommentsClose CommentsPermalink
‘(iv) such other factors as the Administrator determines are appropriate.CommentsClose CommentsPermalink
‘(5) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.CommentsClose CommentsPermalink
‘(e) Limits for Certain Electric Generating Units-CommentsClose CommentsPermalink
‘(1) DEFINITIONS- For purposes of this subsection, the terms ‘covered EGU’ and ‘initially permitted’ shall have the meaning given those terms in section 812 of this Act.CommentsClose CommentsPermalink
‘(2) COVERED EGUS INITIALLY PERMITTED FROM 2009 THROUGH 2014- For a covered EGU that is initially permitted on or after January 1, 2009, and before January 1, 2015, the Administrator shall reduce the quantity of emission allowances that the owner or operator of such covered EGU would otherwise be eligible to receive under this section as follows:CommentsClose CommentsPermalink
‘(A) In the case of a unit commencing operation on or before January 1, 2019, if the date in clause (ii)(I) is earlier than the date in clause (ii)(II), by the product of--CommentsClose CommentsPermalink
‘(i) 20 percent; andCommentsClose CommentsPermalink
‘(ii) the number of years, if any, that have elapsed between--CommentsClose CommentsPermalink
‘(I) the earlier of January 1, 2020, or the date that is 5 years after the commencement of operation of such covered EGU; andCommentsClose CommentsPermalink
‘(II) the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).CommentsClose CommentsPermalink
‘(B) In the case of a unit commencing operation after January 1, 2019, by the product of--CommentsClose CommentsPermalink
‘(i) 20 percent; andCommentsClose CommentsPermalink
‘(ii) the number of years between--CommentsClose CommentsPermalink
‘(I) the commencement of operation of such covered EGU; andCommentsClose CommentsPermalink
‘(II) the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).CommentsClose CommentsPermalink
‘(3) COVERED EGUS INITIALLY PERMITTED FROM 2015 THROUGH 2019- The owner or operator of a covered EGU that is initially permitted on or after January 1, 2015, and before January 1, 2020, shall be ineligible to receive emission allowances pursuant to this section if such unit, upon commencement of operations (and thereafter), does not achieve and maintain an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).CommentsClose CommentsPermalink
‘(f) Industrial Sources-CommentsClose CommentsPermalink
‘(1) ALLOWANCES- The Administrator may distribute not more than 15 percent of the allowances allocated under section 782(f) for any vintage year to the owners or operators of eligible industrial sources to support the commercial-scale deployment of carbon capture and sequestration technologies at such sources.CommentsClose CommentsPermalink
‘(2) DISTRIBUTION- The Administrator shall, by regulation, prescribe requirements for the distribution of emission allowances to the owners or operators of industrial sources under this subsection, based on a bonus allowance formula that awards allowances to qualifying projects on the basis of tons of carbon dioxide captured and permanently sequestered. The Administrator may provide for the distribution of emission allowances pursuant to--CommentsClose CommentsPermalink
‘(A) a reverse auction method, similar to that described under subsection (d)(3), including the use of separate auctions for different project categories; orCommentsClose CommentsPermalink
‘(B) an incentive schedule, similar to that described under subsection (d)(4), which shall ensure that incentives are set so as to satisfy the requirement described in subsection (d)(4)(E).CommentsClose CommentsPermalink
‘(3) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.CommentsClose CommentsPermalink
‘(g) Limitations- Allowances may be distributed under this section only for tons of carbon dioxide emissions that have already been captured and sequestered. A qualifying project may receive annual emission allowances under this section only for the first 10 years of operation. No greater than 72 gigawatts of total cumulative generating capacity (including industrial applications, measured by such equivalent metric as the Administrator may designate) may receive emission allowances under this section. Upon reaching the limit described in the preceding sentence, any emission allowances that are allocated for carbon capture and sequestration deployment under section 782(f) and are not yet obligated under this section shall be treated as allowances not designated for distribution for purposes of section 782(r).CommentsClose CommentsPermalink
‘(h) Exhaustion of Account and Annual Roll-over of Surplus Allowances-CommentsClose CommentsPermalink
‘(1) In distributing emission allowances under this section, the Administrator shall ensure that qualifying projects receiving allowances receive distributions for 10 years.CommentsClose CommentsPermalink
‘(2) If the Administrator determines that the emission allowances allocated under section 782(f) with a vintage year that matches the year of distribution will be exhausted once the estimated full 10-year distributions will be provided to current eligible participants, the Administrator shall provide to new eligible projects allowances from vintage years after the year of the distribution.CommentsClose CommentsPermalink
‘(i) Retrofit Applications- (1) In calculating bonus allowance values for retrofit applications eligible under subsection (b)(1)(A)(ii) and (iv)(II), the Administrator shall apply the required capture rates with respect to the treated portion of flue gas from the unit.CommentsClose CommentsPermalink
‘(2) No additional projects shall be eligible for allowances under subsection (b)(1)(A)(ii) and (iv)(II) as of such time as the Administrator reports, pursuant to section 812(d), that carbon capture and sequestration retrofit projects at electric generating units that are eligible for allowances under this section have been applied, in the aggregate, to the flue gas generated by 1 gigawatt of total cumulative generating capacity.CommentsClose CommentsPermalink
‘(j) Davis-Bacon Compliance- All laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this section through the use of emission allowances shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV, chapter 31, part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
section 3145 of title 40, United States Code .’.CommentsClose CommentsPermalink
SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.
(a) In General- Title VIII of the Clean Air Act (as added by section 331 of this Act) is amended by adding the following new section after section 811:CommentsClose CommentsPermalink
‘SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.
‘(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
‘(1) COVERED EGU- The term ‘covered EGU’ means a utility unit that is required to have a permit under section 503(a) and is authorized under state or federal law to derive at least 30 percent of its annual heat input from coal, petroleum coke, or any combination of these fuels.CommentsClose CommentsPermalink
‘(2) INITIALLY PERMITTED- The term ‘initially permitted’ means that the owner or operator has received a Clean Air Act preconstruction approval or permit, for the covered EGU as a new (not a modified) source, but administrative review or appeal of such approval or permit has not been exhausted. A subsequent modification of any such approval or permits, ongoing administrative or court review, appeals, or challenges, or the existence or tolling of any time to pursue further review, appeals, or challenges shall not affect the date on which a covered EGU is considered to be initially permitted under this paragraph.CommentsClose CommentsPermalink
‘(b) Standards- (1) A covered EGU that is initially permitted on or after January 1, 2020, shall achieve an emission limit that is a 65 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis, or meet such more stringent standard as the Administrator may establish pursuant to subsection (c).CommentsClose CommentsPermalink
‘(2) A covered EGU that is initially permitted after January 1, 2009, and before January 1, 2020, shall, by the applicable compliance date established under this paragraph, achieve an emission limit that is a 50 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis. Compliance with the requirement set forth in this paragraph shall be required by the earliest of the following:CommentsClose CommentsPermalink
‘(A) Four years after the date the Administrator has published pursuant to subsection (d) a report that there are in commercial operation in the United States electric generating units or other stationary sources equipped with carbon capture and sequestration technology that, in the aggregate--CommentsClose CommentsPermalink
‘(i) have a total of at least 4 gigawatts of nameplate generating capacity of which--CommentsClose CommentsPermalink
‘(I) at least 3 gigawatts must be electric generating units; andCommentsClose CommentsPermalink
‘(II) up to 1 gigawatt may be industrial applications, for which capture and sequestration of 3 million tons of carbon dioxide per year on an aggregate annualized basis shall be considered equivalent to 1 gigawatt;CommentsClose CommentsPermalink
‘(ii) include at least 2 electric generating units, each with a nameplate generating capacity of 250 megawatts or greater, that capture, inject, and sequester carbon dioxide into geologic formations other than oil and gas fields; andCommentsClose CommentsPermalink
‘(iii) are capturing and sequestering in the aggregate at least 12 million tons of carbon dioxide per year, calculated on an aggregate annualized basis.CommentsClose CommentsPermalink
‘(B) January 1, 2025.CommentsClose CommentsPermalink
‘(3) If the deadline for compliance with paragraph (2) is January 1, 2025, the Administrator may extend the deadline for compliance by a covered EGU by up to 18 months if the Administrator makes a determination, based on a showing by the owner or operator of the unit, that it will be technically infeasible for the unit to meet the standard by the deadline. The owner or operator must submit a request for such an extension by no later than January 1, 2022, and the Administrator shall provide for public notice and comment on the extension request.CommentsClose CommentsPermalink
‘(c) Review and Revision of Standards- Not later than 2025 and at 5-year intervals thereafter, the Administrator shall review the standards for new covered EGUs under this section and shall, by rule, reduce the maximum carbon dioxide emission rate for new covered EGUs to a rate which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated.CommentsClose CommentsPermalink
‘(d) Reports- Not later than the date 18 months after the date of enactment of this title and semiannually thereafter, the Administrator shall publish a report on the nameplate capacity of units (determined pursuant to subsection (b)(2)(A)) in commercial operation in the United States equipped with carbon capture and sequestration technology, including the information described in subsection (b)(2)(A) (including the cumulative generating capacity to which carbon capture and sequestration retrofit projects meeting the criteria described in section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the quantities of carbon dioxide captured and sequestered by such projects).CommentsClose CommentsPermalink
‘(e) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the requirements of this section.’.CommentsClose CommentsPermalink
Subtitle C--Clean TransportationCommentsClose CommentsPermalink
Subtitle C--Clean TransportationCommentsClose CommentsPermalink
SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE.
(a) Amendment of PURPA- Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (
‘(20) PLUG-IN ELECTRIC DRIVE VEHICLE INFRASTRUCTURE-CommentsClose CommentsPermalink
‘(A) UTILITY PLAN FOR INFRASTRUCTURE- Each electric utility shall develop a plan to support the use of plug-in electric drive vehicles, including heavy-duty hybrid electric vehicles. The plan may provide for deployment of electrical charging stations in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops. Any such plan may also include--CommentsClose CommentsPermalink
‘(i) battery exchange, fast charging infrastructure and other services;CommentsClose CommentsPermalink
‘(ii) triggers for infrastructure deployment based upon market penetration of plug-in electric drive vehicles; andCommentsClose CommentsPermalink
‘(iii) such other elements as the State determines necessary to support plug-in electric drive vehicles.CommentsClose CommentsPermalink
Each plan under this paragraph shall provide for the deployment of the charging infrastructure or other infrastructure necessary to adequately support the use of plug-in electric drive vehicles.CommentsClose CommentsPermalink
‘(B) SUPPORT REQUIREMENTS- Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall--CommentsClose CommentsPermalink
‘(i) require that charging infrastructure deployed is interoperable with products of all auto manufacturers to the extent possible; andCommentsClose CommentsPermalink
‘(ii) consider adopting minimum requirements for deployment of electrical charging infrastructure and other appropriate requirements necessary to support the use of plug-in electric drive vehicles.CommentsClose CommentsPermalink
‘(C) COST RECOVERY- Each State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall consider whether, and to what extent, to allow cost recovery for plans and implementation of plans.CommentsClose CommentsPermalink
‘(D) SMART GRID INTEGRATION- The State regulatory authority (in the case of each electric utility for which it has ratemaking authority) and each utility (in the case of a nonregulated utility) shall, in accordance with regulations issued by the Federal Energy Regulatory Commission pursuant to section 1305(d) of the Energy Independence and Security Act of 2007--CommentsClose CommentsPermalink
‘(i) establish any appropriate protocols and standards for integrating plug-in electric drive vehicles into an electrical distribution system, including Smart Grid systems and devices as described in title XIII of the Energy Independence and Security Act of 2007;CommentsClose CommentsPermalink
‘(ii) include, to the extent feasible, the ability for each plug-in electric drive vehicle to be identified individually and to be associated with its owner’s electric utility account, regardless of the location that the vehicle is plugged in, for purposes of appropriate billing for any electricity required to charge the vehicle’s batteries as well as any crediting for electricity provided to the electric utility from the vehicle’s batteries; andCommentsClose CommentsPermalink
‘(iii) review the determination made in response to section 1252 of the Energy Policy Act of 2005 in light of this section, including whether time-of-use pricing should be employed to enable the use of plug-in electric drive vehicles to contribute to meeting peak-load and ancillary service power needs.’.CommentsClose CommentsPermalink
(b) Compliance-CommentsClose CommentsPermalink
(1) TIME LIMITATIONS- Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (
‘(7)(A) Not later than 3 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (20) of section 111(d).CommentsClose CommentsPermalink
‘(B) Not later than 4 years after the date of enactment of the this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph (20) of section 111(d).’.CommentsClose CommentsPermalink
(2) FAILURE TO COMPLY- Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (
(3) PRIOR STATE ACTIONS- Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (
SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.
(a) Deployment Program- The Secretary of Energy shall establish a program to deploy and integrate plug-in electric drive vehicles into the electricity grid in multiple regions. In carrying out the program, the Secretary may provide financial assistance described under subsection (d), consistent with the goals under subsection (b). The Secretary shall select regions based upon applications for assistance received pursuant to subsection (c).CommentsClose CommentsPermalink
(b) Goals- The goals of the program established pursuant to subsection (a) shall be--CommentsClose CommentsPermalink
(1) to demonstrate the viability of a vehicle-based transportation system that is not overly dependent on petroleum as a fuel and contributes to lower carbon emissions than a system based on conventional vehicles;CommentsClose CommentsPermalink
(2) to facilitate the integration of advanced vehicle technologies into electricity distribution areas to improve system performance and reliability;CommentsClose CommentsPermalink
(3) to demonstrate the potential benefits of coordinated investments in vehicle electrification on personal mobility and a regional grid;CommentsClose CommentsPermalink
(4) to demonstrate protocols and standards that facilitate vehicle integration into the grid; andCommentsClose CommentsPermalink
(5) to investigate differences in each region and regulatory environment regarding best practices in implementing vehicle electrification.CommentsClose CommentsPermalink
(c) Applications- Any State, Indian tribe, or local government (or group of State, Indian tribe, or local governments) may apply to the Secretary of Energy for financial assistance in furthering the regional deployment and integration into the electricity grid of plug-in electric drive vehicles. Such applications may be jointly sponsored by electric utilities, automobile manufacturers, technology providers, car sharing companies or organizations, or other persons or entities.CommentsClose CommentsPermalink
(d) Use of Funds- Pursuant to applications received under subsection (c), the Secretary may make financial assistance available to any applicant or joint sponsor of the application to be used for any of the following:CommentsClose CommentsPermalink
(1) Assisting persons located in the regional deployment area, including fleet owners, in the purchase of new plug-in electric drive vehicles by offsetting in whole or in part the incremental cost of such vehicles above the cost of comparable conventionally fueled vehicles.CommentsClose CommentsPermalink
(2) Supporting the use of plug-in electric drive vehicles by funding projects for the deployment of any of the following:CommentsClose CommentsPermalink
(A) Electrical charging infrastructure for plug-in electric drive vehicles, including battery exchange, fast charging infrastructure, and other services, in public or private locations, including street parking, parking garages, parking lots, homes, gas stations, and highway rest stops.CommentsClose CommentsPermalink
(B) Smart Grid equipment and infrastructure, as described in title XIII of the Energy Independence and Security Act of 2007, to facilitate the charging and integration of plug-in electric drive vehicles.CommentsClose CommentsPermalink
(3) Such other projects as the Secretary determines appropriate to support the large-scale deployment of plug-in electric drive vehicles in regional deployment areas.CommentsClose CommentsPermalink
(e) Program Requirements- The Secretary, in consultation with the Administrator and the Secretary of Transportation, shall determine design elements and requirements of the program established pursuant to subsection (a), including--CommentsClose CommentsPermalink
(1) the type of financial mechanism with which to provide financial assistance;CommentsClose CommentsPermalink
(2) criteria for evaluating applications submitted under subsection (c), including the anticipated ability to promote deployment and market penetration of vehicles that are less dependent on petroleum as a fuel source; andCommentsClose CommentsPermalink
(3) reporting requirements for entities that receive financial assistance under this section, including a comprehensive set of performance data characterizing the results of the deployment program.CommentsClose CommentsPermalink
(f) Information Clearinghouse- The Secretary shall, as part of the program established pursuant to subsection (a), collect and make available to the public information regarding the cost, performance, and other technical data regarding the deployment and integration of plug-in electric drive vehicles.CommentsClose CommentsPermalink
(g) Authorization- There are authorized to be appropriated to carry out this section such sums as may be necessary.CommentsClose CommentsPermalink
SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFACTURING.
(a) Vehicle Manufacturing Assistance Program- The Secretary of Energy shall establish a program to provide financial assistance to automobile manufacturers to facilitate the manufacture of plug-in electric drive vehicles, as defined in section 131(a)(5) of the Energy Independence and Security Act of 2007, that are developed and produced in the United States.CommentsClose CommentsPermalink
(b) Financial Assistance- The Secretary of Energy may provide financial assistance to an automobile manufacturer under the program established pursuant to subsection (a) for--CommentsClose CommentsPermalink
(1) the reconstruction or retooling of facilities for the manufacture of plug-in electric drive vehicles that are developed and produced in the United States; andCommentsClose CommentsPermalink
(2) if appropriate, the purchase of vehicle batteries to be used in the manufacture of vehicles manufactured pursuant to paragraph (1).CommentsClose CommentsPermalink
(c) Coordination With Regional Deployment- The Secretary may provide financial assistance under subsection (b) in conjunction with the award of financial assistance under the large scale vehicle electrification program established pursuant to section 122 of this Act.CommentsClose CommentsPermalink
(d) Program Requirements- The Secretary shall determine design elements and requirements of the program established pursuant to subsection (a), including--CommentsClose CommentsPermalink
(1) the type of financial mechanism with which to provide financial assistance;CommentsClose CommentsPermalink
(2) criteria, in addition to the criteria described under subsection (e), for evaluating applications for financial assistance; andCommentsClose CommentsPermalink
(3) reporting requirements for automobile manufacturers that receive financial assistance under this section.CommentsClose CommentsPermalink
(e) Criteria- In selecting recipients of financial assistance from among applicant automobile manufacturers, the Secretary shall give preference to proposals that--CommentsClose CommentsPermalink
(1) are most likely to be successful; andCommentsClose CommentsPermalink
(2) are located in local markets that have the greatest need for the facility.CommentsClose CommentsPermalink
(f) Reports- The Secretary shall annually submit to Congress a report on the program established pursuant to this section.CommentsClose CommentsPermalink
(g) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.CommentsClose CommentsPermalink
SEC. 124. INVESTMENT IN CLEAN VEHICLES.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) ADVANCED TECHNOLOGY VEHICLES AND QUALIFYING COMPONENTS- The terms ‘advanced technology vehicles’ and ‘qualifying components’ shall have the definition of such terms in section 136 of the Energy Independence and Security Act of 2007, except that for purposes of this section, the average base year as described in such section 136(a)(1)(C) shall be the following:CommentsClose CommentsPermalink
(A) In each of the years 2012 through 2016, model year 2009.CommentsClose CommentsPermalink
(B) In 2017, the Administrator shall, notwithstanding such section 136(a)(1)(C), determine an appropriate baseline based on technological and economic feasibility.CommentsClose CommentsPermalink
(2) PLUG-IN ELECTRIC DRIVE VEHICLE- The term ‘plug-in electric drive vehicle’ shall have the definition of such term in section 131 of the Energy Independence and Security Act of 2007.CommentsClose CommentsPermalink
(b) Distribution of Allowances- The Administrator shall, in accordance with this section, distribute emission allowances allocated pursuant to section 782(i) of the Clean Air Act not later than September 30 of 2012 and each calendar year thereafter through 2025.CommentsClose CommentsPermalink
(c) Plug-in Electric Drive Vehicle Manufacturing and Deployment-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall, at the direction of the Secretary of Energy, provide emission allowances allocated pursuant to section 782(i) to applicants, joint sponsors and automobile manufacturers pursuant to sections 122 and 123 of this Act.CommentsClose CommentsPermalink
(2) ANNUAL AMOUNT- In each of the years 2012 through 2017, one-quarter of the portion of the emission allowances allocated pursuant to section 782(i) of the Clean Air Act shall be available to carry out paragraph (1) such that--CommentsClose CommentsPermalink
(A) one-eighth of the portion shall be available to carry out section 122; and,CommentsClose CommentsPermalink
(B) one-eighth of the portion shall be available to carry out section 123.CommentsClose CommentsPermalink
(3) PREFERENCE- In directing the provision of emission allowances under this subsection to carry out section 122, the Secretary shall give preference to applications under section 122(c) that are jointly sponsored by one or more automobile manufacturers.CommentsClose CommentsPermalink
(4) MULTI-YEAR COMMITMENTS- The Administrator shall commit to providing emission allowances to an applicant, joint sponsor, or automobile manufacturer for up to five consecutive years if--CommentsClose CommentsPermalink
(A) an application under section 122 or 123 of this Act requests a multi-year commitment;CommentsClose CommentsPermalink
(B) such application meets the criteria for support established by the Secretary of Energy under sections 122 or 123 of this Act;CommentsClose CommentsPermalink
(C) the Administrator confirms to the Secretary that emission allowances will be available for a multi-year commitment;CommentsClose CommentsPermalink
(D) the Secretary of Energy determines that a multi-year commitment for such application will advance the goals of section 122 or 123; andCommentsClose CommentsPermalink
(E) the Secretary of Energy directs the Administrator to make a multi-year commitment.CommentsClose CommentsPermalink
(5) INSUFFICIENT APPLICATIONS- If, in any year, emission allowances available under paragraph (2) cannot be provided because of insufficient numbers of submitted applications that meet the criteria for support established by the Secretary of Energy under sections 122 or 123 of this Act, the remaining emission allowances shall be distributed according to subsection (d).CommentsClose CommentsPermalink
(d) Advanced Technology Vehicles-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall, at the direction of the Secretary of Energy, provide any emission allowances allocated pursuant to section 782(i) of the Clean Air Act that are not provided under subsection (c) to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of--CommentsClose CommentsPermalink
(A) reequipping, expanding, or establishing a manufacturing facility in the United States to produce--CommentsClose CommentsPermalink
(i) qualifying advanced technology vehicles; orCommentsClose CommentsPermalink
(ii) qualifying components; andCommentsClose CommentsPermalink
(B) engineering integration performed in the United States of qualifying vehicles and qualifying components.CommentsClose CommentsPermalink
(2) PREFERENCE- In directing the provision of emission allowances under this subsection during the years 2012 through 2017, the Secretary shall give preference to applications for projects that save the maximum number of gallons of fuel.CommentsClose CommentsPermalink
SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING INCENTIVE LOANS.
Section 136(d)(1) of the Energy Independence and Security Act of 2007 (
SEC. 126. AMENDMENT TO RENEWABLE FUELS STANDARD.
(a) Definition of Renewable Biomass- Section 211(o)(1)(I) of the Clean Air Act (
‘(I) RENEWABLE BIOMASS- The term ‘renewable biomass’ means any of the following:CommentsClose CommentsPermalink
‘(i) Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on January 1, 2009.CommentsClose CommentsPermalink
‘(ii) Plant material, including waste material, harvested or collected from pastureland that was nonforested on January 1, 2009.CommentsClose CommentsPermalink
‘(iii) Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food waste (but not recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals).CommentsClose CommentsPermalink
‘(iv) Animal waste or animal byproducts, including products of animal waste digesters.CommentsClose CommentsPermalink
‘(v) Algae.CommentsClose CommentsPermalink
‘(vi) Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a public official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line.CommentsClose CommentsPermalink
‘(vii) Residues from or byproducts of milled logs.CommentsClose CommentsPermalink
‘(viii) Any of the following removed from forested land that is not Federal and is not high conservation priority land:CommentsClose CommentsPermalink
‘(I) Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established--CommentsClose CommentsPermalink
‘(aa) prior to January 1, 2009; orCommentsClose CommentsPermalink
‘(bb) on land that, as of January 1, 2009, was cultivated or fallow and non-forested.CommentsClose CommentsPermalink
‘(II) Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally-regenerated forests or other non-plantation forests, including for the purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation.CommentsClose CommentsPermalink
‘(III) Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after January 1, 2009, to restore or maintain native forest types.CommentsClose CommentsPermalink
‘(IV) Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees.CommentsClose CommentsPermalink
‘(ix) Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (
43 U.S.C. 1702 )), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are--CommentsClose CommentsPermalink
‘(I) not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands, components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;CommentsClose CommentsPermalink
‘(II) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; andCommentsClose CommentsPermalink
‘(III) harvested in accordance with Federal and State law and applicable land management plans.’.CommentsClose CommentsPermalink
(b) Definition of High Conservation Priority Land- Section 211(o)(1) of the Clean Air Act (
42 U.S.C. 7545(o) ) is amended by inserting the following at the end thereof:CommentsClose CommentsPermalink
‘(M) HIGH CONSERVATION PRIORITY LAND- The term ‘high conservation priority land’ means land that is not Federal land and is--CommentsClose CommentsPermalink
‘(i) globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; orCommentsClose CommentsPermalink
‘(ii) old-growth or late-successional forest, as identified by the office of the State Forester or relevant State agency with regulatory jurisdiction over forestry activities.’.CommentsClose CommentsPermalink
SEC. 127. OPEN FUEL STANDARD.
(a) Findings- The Congress finds that--CommentsClose CommentsPermalink
(1) the status of oil as a strategic commodity, which derives from its domination of the transportation sector, presents a clear and present danger to the United States;CommentsClose CommentsPermalink
(2) in a prior era, when salt was a strategic commodity, salt mines conferred national power and wars were fought over the control of such mines;CommentsClose CommentsPermalink
(3) technology, in the form of electricity and refrigeration, decisively ended salt’s monopoly of meat preservation and greatly reduced its strategic importance;CommentsClose CommentsPermalink
(4) fuel competition and consumer choice would similarly serve to end oil’s monopoly in the transportation sector and strip oil of its strategic status;CommentsClose CommentsPermalink
(5) the current closed fuel market has allowed a cartel of petroleum exporting countries to inflate fuel prices, effectively imposing a harmful tax on the economy of the United States;CommentsClose CommentsPermalink
(6) much of the inflated petroleum revenues the oil cartel earns at the expense of the people of the United States are used for purposes antithetical to the interests of the United States and its allies;CommentsClose CommentsPermalink
(7) alcohol fuels, including ethanol and methanol, could potentially provide significant supplies of additional fuels that could be produced in the United States and in many other countries in the Western Hemisphere that are friendly to the United States;CommentsClose CommentsPermalink
(8) alcohol fuels can only play a major role in securing the energy independence of the United States if a substantial portion of vehicles in the United States are capable of operating on such fuels;CommentsClose CommentsPermalink
(9) it is not in the best interest of United States consumers or the United States Government to be constrained to depend solely upon petroleum resources for vehicle fuels if alcohol fuels are potentially available;CommentsClose CommentsPermalink
(10) existing technology, in the form of flexible fuel vehicles, allows internal combustion engine cars and trucks to be produced at little or no additional cost, which are capable of operating on conventional gasoline, alcohol fuels, or any combination of such fuels, as availability or cost advantage dictates, providing a platform on which fuels can compete;CommentsClose CommentsPermalink
(11) the necessary distribution system for such alcohol fuels will not be developed in the United States until a substantial fraction of the vehicles in the United States are capable of operating on such fuels;CommentsClose CommentsPermalink
(12) the establishment of such a vehicle fleet and distribution system would provide a large market that would mobilize private resources to substantially advance the technology and expand the production of alcohol fuels in the United States and abroad;CommentsClose CommentsPermalink
(13) the United States has an urgent national security interest to develop alcohol fuels technology, production, and distribution systems as rapidly as possible;CommentsClose CommentsPermalink
(14) new cars sold in the United States that are equipped with an internal combustion engine should allow for fuel competition by being flexible fuel vehicles, and new diesel cars should be capable of operating on biodiesel; andCommentsClose CommentsPermalink
(15) such an open fuel standard would help to protect the United States economy from high and volatile oil prices and from the threats caused by global instability, terrorism, and natural disaster.CommentsClose CommentsPermalink
(b) Open Fuel Standard for Transportation- (1) Chapter 329 of title 49, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink
‘Sec. 32920. Open fuel standard for transportation
‘(a) Definitions- In this section:CommentsClose CommentsPermalink
‘(1) E85- The term ‘E85’ means a fuel mixture containing 85 percent ethanol and 15 percent gasoline by volume.CommentsClose CommentsPermalink
‘(2) FLEXIBLE FUEL AUTOMOBILE- The term ‘flexible fuel automobile’ means an automobile that has been warranted by its manufacturer to operate on gasoline, E85, and M85.CommentsClose CommentsPermalink
‘(3) FUEL CHOICE-ENABLING AUTOMOBILE- The term ‘fuel choice-enabling automobile’ means--CommentsClose CommentsPermalink
‘(A) a flexible fuel automobile; orCommentsClose CommentsPermalink
‘(B) an automobile that has been warranted by its manufacturer to operate on biodiesel.CommentsClose CommentsPermalink
‘(4) LIGHT-DUTY AUTOMOBILE- The term ‘light-duty automobile’ means--CommentsClose CommentsPermalink
‘(A) a passenger automobile; orCommentsClose CommentsPermalink
‘(B) a non-passenger automobile.CommentsClose CommentsPermalink
‘(5) LIGHT-DUTY AUTOMOBILE MANUFACTURER’S ANNUAL COVERED INVENTORY- The term ‘light-duty automobile manufacturer’s annual covered inventory’ means the number of light-duty automobiles powered by an internal combustion engine that a manufacturer, during a given calendar year, manufactures in the United States or imports from outside of the United States for sale in the United States.CommentsClose CommentsPermalink
‘(6) M85- The term ‘M85’ means a fuel mixture containing 85 percent methanol and 15 percent gasoline by volume.CommentsClose CommentsPermalink
‘(b) Open Fuel Standard for Transportation-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary may promulgate regulations to require each light-duty automobile manufacturer’s annual covered inventory to be comprised of a minimum percentage of fuel-choice enabling automobiles, with sufficient lead time, if the Secretary, in coordination with the Secretary of Energy and the Administrator of the Environmental Protection Agency, determines such requirement is a cost-effective way to achieve the Nation’s energy independence and environmental objectives. The cost-effective determination shall consider the future availability of both alternative fuel supply and infrastructure to deliver the alternative fuel to the fuel-choice enabling vehicles.CommentsClose CommentsPermalink
‘(2) TEMPORARY EXEMPTION FROM REQUIREMENTS-CommentsClose CommentsPermalink
‘(A) APPLICATION- A manufacturer may request an exemption from the requirement described in paragraph (1) by submitting an application to the Secretary, at such time, in such manner, and containing such information as the Secretary may require by regulation. Each such application shall specify the models, lines, and types of automobiles affected.CommentsClose CommentsPermalink
‘(B) EVALUATION- After evaluating an application received from a manufacturer, the Secretary may at any time, under such terms and conditions, and to such extent as the Secretary considers appropriate, temporarily exempt, or renew the exemption of, a light-duty automobile from the requirement described in paragraph (1) if the Secretary determines that unavoidable events not under the control of the manufacturer prevent the manufacturer of such automobile from meeting its required production volume of fuel choice-enabling automobiles, including--CommentsClose CommentsPermalink
‘(i) a disruption in the supply of any component required for compliance with the regulations;CommentsClose CommentsPermalink
‘(ii) a disruption in the use and installation by the manufacturer of such component; orCommentsClose CommentsPermalink
‘(iii) application to plug-in electric drive vehicles causing such vehicles to fail to meet State air quality requirements.CommentsClose CommentsPermalink
‘(C) CONSOLIDATION- The Secretary may consolidate applications received from multiple manufacturers under subparagraph (A) if they are of a similar nature.CommentsClose CommentsPermalink
‘(D) CONDITIONS- Any exemption granted under subparagraph (B) shall be conditioned upon the manufacturer’s commitment to recall the exempted automobiles for installation of the omitted components within a reasonable time proposed by the manufacturer and approved by the Secretary after such components become available in sufficient quantities to satisfy both anticipated production and recall volume requirements.CommentsClose CommentsPermalink
‘(E) NOTICE- The Secretary shall publish in the Federal Register--CommentsClose CommentsPermalink
‘(i) notice of each application received from a manufacturer;CommentsClose CommentsPermalink
‘(ii) notice of each decision to grant or deny a temporary exemption; andCommentsClose CommentsPermalink
‘(iii) the reasons for granting or denying such exemptions.’.CommentsClose CommentsPermalink
(2) The table of contents in chapter 329 of such title is amended adding at the end the following:CommentsClose CommentsPermalink
‘32920. Open fuel standard for transportation.’.CommentsClose CommentsPermalink
SEC. 128. DIESEL EMISSIONS REDUCTION.
Subtitle G of title VII of the Energy Policy Act of 2005 (
(1) in the matter preceding clause (i) in section 791(3)(B), by inserting ‘in any State’ after ‘nonprofit organization or institution’;CommentsClose CommentsPermalink
(2) in section 791(9), by striking ‘The term ‘State’ includes the District of Columbia.’ and inserting ‘The term ‘State’ includes the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.’; andCommentsClose CommentsPermalink
(3) in section 793(c)--CommentsClose CommentsPermalink
(A) in paragraph (2)(A), by striking ‘51 States’ and inserting ‘56 States’;CommentsClose CommentsPermalink
(B) in paragraph (2)(A), by striking ‘1.96 percent’ and inserting ‘1.785 percent’;CommentsClose CommentsPermalink
(C) in paragraph (2)(B), by striking ‘51 States’ and inserting ‘56 States’; andCommentsClose CommentsPermalink
(D) in paragraph (2)(B), by amending clause (ii) to read as follows:CommentsClose CommentsPermalink
‘(ii) the amount of funds remaining after each State described in paragraph (1) receives the 1.785-percent allocation under this paragraph.’.CommentsClose CommentsPermalink
SEC. 129. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE FUEL PIPELINES.
(a) Definitions- Section 1701 of the Energy Policy Act of 2005 (
‘(6) RENEWABLE FUEL- The term ‘renewable fuel’ has the meaning given the term in section 211(o)(1) of the Clean Air Act (
42 U.S.C. 7545(o)(1) ), except that the term shall include all ethanol and biodiesel.CommentsClose CommentsPermalink‘(7) RENEWABLE FUEL PIPELINE- The term ‘renewable fuel pipeline’ means a common carrier pipeline for transporting renewable fuel.’.CommentsClose CommentsPermalink
(b) Renewable Fuel Pipeline Eligibility- Section 1703(b) the Energy Policy Act of 2005 (
‘(11) Renewable fuel pipelines.’.CommentsClose CommentsPermalink
Subtitle D--State Energy and Environment Development AccountsCommentsClose CommentsPermalink
Subtitle D--State Energy and Environment Development AccountsCommentsClose CommentsPermalink
SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) SEED ACCOUNT- The term ‘SEED Account’ means a State Energy and Environment Development Account established pursuant to this section.CommentsClose CommentsPermalink
(2) STATE ENERGY OFFICE- The term ‘State Energy Office’ means a State entity eligible for grants under part D of title III of the Energy Policy and Conservation Act (
(b) Establishment of Program- The Administrator shall establish a program under which a State, through its State Energy Office or other State agency designated by the State, may operate a State Energy and Environment Development Account.CommentsClose CommentsPermalink
(c) Purpose- The purpose of each SEED Account is to serve as a common State-level repository for managing and accounting for emission allowances provided to States designated for renewable energy and energy efficiency purposes.CommentsClose CommentsPermalink
(d) Regulations- Not later than one year after the date of enactment of this Act, the Administrator shall promulgate regulations to carry out this section, including regulations--CommentsClose CommentsPermalink
(1) to ensure that each State operates its SEED Account and any subaccounts thereof efficiently and in accordance with this Act and applicable State and Federal laws;CommentsClose CommentsPermalink
(2) to prevent waste, fraud, and abuse;CommentsClose CommentsPermalink
(3) to indicate the emission allowances that may be deposited in a State’s SEED Account pending distribution or use;CommentsClose CommentsPermalink
(4) to indicate the programs and objectives authorized by Federal law for which emission allowances in a SEED Account may be distributed or used;CommentsClose CommentsPermalink
(5) to identify the forms of financial assistance and incentives that States may provide through distribution or use of SEED Accounts; andCommentsClose CommentsPermalink
(6) to prescribe the form and content of reports that the States are required to submit under this section on the use of SEED Accounts.CommentsClose CommentsPermalink
(e) Operation-CommentsClose CommentsPermalink
(1) DEPOSITS-CommentsClose CommentsPermalink
(A) IN GENERAL- In the allowance tracking system established pursuant to section 724(d) of the Clean Air Act, the Administrator shall establish a SEED Account for each State and place in it the allowances allocated pursuant to section 782(g) of the Clean Air Act to be distributed to States pursuant to sections 132 and 201 of this Act.CommentsClose CommentsPermalink
(B) FINANCIAL ACCOUNT- A State may create a financial account associated with its SEED Account to deposit, retain, and manage any proceeds of any sale of any allowance provided pursuant to this Act pending expenditure or disbursement of those proceeds for purposes permitted under this section. The funds in such an account shall not be commingled with other funds not derived from the sale of allowances provided to the State; however, loans made by the State from such funds pursuant to paragraph (2)(C)(i) may be repaid into such a financial account, including any interest charged.CommentsClose CommentsPermalink
(2) WITHDRAWALS-CommentsClose CommentsPermalink
(A) IN GENERAL- All allowances distributed pursuant to sections 132 and 201, including the proceeds of any sale of such allowances, shall support renewable energy and energy efficiency programs authorized or approved by the Federal Government.CommentsClose CommentsPermalink
(B) DEDICATED ALLOWANCES- Allowances distributed pursuant to sections 132 and 201 that are required by law to be used for specific purposes for a specified period shall be used according to those requirements during that period.CommentsClose CommentsPermalink
(C) UNDEDICATED ALLOWANCES- To the extent that allowances distributed pursuant to sections 132 and 201 are not required by law to be used for specific purposes for a specified period as described in subparagraph (B), such allowances or the proceeds of their sale may be used for any of the following purposes:CommentsClose CommentsPermalink
(i) LOANS- Loans of allowances, or the proceeds from the sale of allowances, may be provided, interest on commercial loans may be subsidized at an interest rate as low as zero, and other credit support may be provided to support programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.CommentsClose CommentsPermalink
(ii) GRANTS- Grants of allowances or the proceeds of their sale may be provided to support programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.CommentsClose CommentsPermalink
(iii) OTHER FORMS OF SUPPORT- Allowances or the proceeds of the sale of allowances may be provided for other forms of support for programs authorized to use SEED Account allowance value or any other renewable energy or energy efficiency purpose authorized or approved by the Federal Government.CommentsClose CommentsPermalink
(iv) ADMINISTRATIVE COSTS- Except to the extent provided in Federal law authorizing or allocating allowances deposited in a SEED Account, not more than 5 percent of the allowance value in a SEED Account in any year may be used to cover administrative expenses of the SEED Account.CommentsClose CommentsPermalink
(D) SUBACCOUNTS- A State may request that the Administrator establish accounts for local governments that request such subaccounts to hold allowances distributed to local governments for renewable energy or energy efficiency programs authorized or approved by the Federal Government.CommentsClose CommentsPermalink
(E) INTENDED USE PLANS-CommentsClose CommentsPermalink
(i) IN GENERAL- After providing for public review and comment, each State administering a SEED Account shall annually prepare a plan that identifies the intended uses of the allowances or proceeds from the sale of allowances in its SEED Account.CommentsClose CommentsPermalink
(ii) CONTENTS- An intended use plan shall include--CommentsClose CommentsPermalink
(I) a list of the projects or programs for which withdrawals from the SEED Account are intended in the next fiscal year that begins after the date of the plan, including a description of each project;CommentsClose CommentsPermalink
(II) the relationship of each of the projects or programs to an identified Federal purpose authorized by this Act, or any other Federal statute;CommentsClose CommentsPermalink
(III) the expected terms of use of allowance value to provide assistance;CommentsClose CommentsPermalink
(IV) the criteria and methods established for the distribution of allowances or allowance value;CommentsClose CommentsPermalink
(V) a description of the equivalent financial value and status of the SEED Account; andCommentsClose CommentsPermalink
(VI) a statement of the mid-term and long-term goals of the State for use of its SEED Account.CommentsClose CommentsPermalink
(3) ACCOUNTABILITY AND TRANSPARENCY-CommentsClose CommentsPermalink
(A) CONTROLS AND PROCEDURES- Any State that has a SEED Account shall establish fiscal controls and recordkeeping and accounting procedures for the SEED Account sufficient to ensure proper accounting during appropriate accounting periods for distributions into the SEED Account, transfers from the SEED Account, and SEED Account balances, including any related financial accounts. Such controls and procedures shall conform to generally accepted government accounting principles. Any State that has a SEED Account shall retain records for a period of at least 5 years.CommentsClose CommentsPermalink
(B) AUDITS- Any State that has a SEED Account shall have an annual audit conducted of the SEED Account by an independent public accountant in accordance with generally accepted auditing standards, and shall transmit the results of that audit to the Administrator.CommentsClose CommentsPermalink
(C) STATE REPORT- Each State administering a SEED Account shall make publicly available and submit to the Administrator a report every 2 years on its activities related to its SEED Account.CommentsClose CommentsPermalink
(D) PUBLIC INFORMATION- Any--CommentsClose CommentsPermalink
(i) controls and procedures established under subparagraph (A); andCommentsClose CommentsPermalink
(ii) information obtained through audits conducted under subparagraph (B), except to the extent that it would be protected from disclosure, if it were information held by the Federal Government, under
shall be made publicly available.CommentsClose CommentsPermalink
(E) OTHER PROTECTIONS- The Administrator shall require such additional procedures and protections as are necessary to ensure that any State that has a SEED Account will operate the SEED Account in an accountable and transparent manner.CommentsClose CommentsPermalink
(f) Requirements for Eligibility- A State’s eligibility to receive allowances in its SEED Account shall depend on that State’s compliance with the requirements of this Act (and the amendments made by this Act).CommentsClose CommentsPermalink
(g) Authorization of Appropriations- There are authorized to be appropriated to the Administrator such sums as may be necessary for SEED Account operations.CommentsClose CommentsPermalink
SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND ENERGY EFFICIENCY PROGRAMS.
(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
(1) ALLOWANCE- The term ‘allowance’ means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).CommentsClose CommentsPermalink
(2) COST-EFFECTIVE- The term ‘cost-effective’, with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program or measure, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer.CommentsClose CommentsPermalink
(3) RENEWABLE ENERGY RESOURCE- The term ‘renewable energy resource’ shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of this Act).CommentsClose CommentsPermalink
(4) VINTAGE YEAR- The term ‘vintage year’ shall the meaning given that term in section 700 of the Clean Air Act (as added by section 311 of this Act).CommentsClose CommentsPermalink
(b) Distribution Among States- Not later than September 30 of each calendar year from 2011 through 2049, the Administrator shall, in accordance with this section, distribute allowances allocated pursuant to section 782(g)(1) of the Clean Air Act (as added by section 311 of this Act) for the following vintage year. The Administrator shall distribute 0.5 percent of such allowances pursuant to section 133 of this Act. The Administrator shall distribute the remaining allowances to States for renewable energy and energy efficiency programs to be deposited in and administered through the State Energy and Environment Development (SEED) Accounts established pursuant to section 131. The Administrator shall distribute allowances among the States under this section each year in accordance with the following formula:CommentsClose CommentsPermalink
(1) One third of the allowances shall be divided equally among the States.CommentsClose CommentsPermalink
(2) One third of the allowances shall be distributed ratably among the States based on the population of each State, as contained in the most recent reliable census data available from the Bureau of the Census, Department of Commerce, for all States at the time the Administrator calculates the formula for distribution.CommentsClose CommentsPermalink
(3) One third of the allowances for shall be distributed ratably among the States on the basis of the energy consumption of each State as contained in the most recent State Energy Data Report available from the Energy Information Administration (or such alternative reliable source as the Administrator may designate).CommentsClose CommentsPermalink
(c) Uses- The allowances distributed to each State pursuant to this section shall be used exclusively in accordance with the following requirements:CommentsClose CommentsPermalink
(1) Not less than 12.5 percent shall be distributed by the State to units of local government within such State to be used exclusively to support the energy efficiency and renewable energy purposes listed in paragraphs (2) and (3).CommentsClose CommentsPermalink
(2) Not less than 20 percent shall be used exclusively for the following energy efficiency purposes, provided that not less than 1 percent shall be used for the purpose described in subparagraph (D) and not less than 5 percent shall be used for the purpose described in subparagraph (E):CommentsClose CommentsPermalink
(A) Implementation and enforcement of building codes adopted in compliance with section 201.CommentsClose CommentsPermalink
(B) Implementation of the energy efficient manufactured homes program established pursuant to section 203.CommentsClose CommentsPermalink
(C) Implementation of the building energy performance labeling program established pursuant to section 204.CommentsClose CommentsPermalink
(D) Low-income community energy efficiency programs that are consistent with the grant program established under section 264 of this Act.CommentsClose CommentsPermalink
(E) Implementation of the Retrofit for Energy and Environmental Performance (REEP) program established pursuant to section 202.CommentsClose CommentsPermalink
(3) Not less than 20 percent shall be used exclusively for capital grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, and interest rate buy-downs for--CommentsClose CommentsPermalink
(A) re-equipping, expanding, or establishing a manufacturing facility that receives certification from the Secretary of Energy pursuant to section 1302 of the American Recovery and Reinvestment Act of 2009 for the production of--CommentsClose CommentsPermalink
(i) property designed to be used to produce energy from renewable energy sources; andCommentsClose CommentsPermalink
(ii) electricity storage systems;CommentsClose CommentsPermalink
(B) deployment of technologies to generate electricity from renewable energy sources; andCommentsClose CommentsPermalink
(C) deployment of facilities or equipment, such as solar panels, to generate electricity or thermal energy from renewable energy resources in and on buildings in an urban environment.CommentsClose CommentsPermalink
(4) The remaining 47.5 percent shall be used exclusively for any of the following purposes:CommentsClose CommentsPermalink
(A) Energy efficiency purposes described in paragraph (2).CommentsClose CommentsPermalink
(B) Renewable energy purposes described in paragraph (3)(B) and (C).CommentsClose CommentsPermalink
(C) Cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane, including, where appropriate, programs or mechanisms administered by local governments and entities other than the State.CommentsClose CommentsPermalink
(D) Enabling the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (
(E) Providing the non-Federal share of support for surface transportation capital projects under--CommentsClose CommentsPermalink
(i) sections 5307, 5308, 5309, 5310, 5311 and 5319 of title 49, United States Code; andCommentsClose CommentsPermalink
(ii) sections 142, 146, and 149 of title 23, United States Code,CommentsClose CommentsPermalink
provided that not more than 10 percent of allowances distributed to each State pursuant to this section shall be used for such purpose.CommentsClose CommentsPermalink
(5) For any allowances used for the purpose described in paragraph (4)(C), the State shall--CommentsClose CommentsPermalink
(A) prioritize expansion of existing energy efficiency programs approved and overseen by the State or the appropriate State regulatory authority; andCommentsClose CommentsPermalink
(B) demonstrate that such allowances have been used to supplement, and not to supplant, existing and otherwise available State, local, and ratepayer funding for such purpose.CommentsClose CommentsPermalink
(d) Reporting- Each State receiving allowances under this section shall include in its biennial reports required under section 131, in accordance with such requirements as the Administrator may prescribeCommentsClose CommentsPermalink
(1) a list of entities receiving allowances or allowance value under this section, including entities receiving such allowances or allowance value from units of local government pursuant to subsection (c)(1);CommentsClose CommentsPermalink
(2) the amount and nature of allowances or allowance value received by each such recipient;CommentsClose CommentsPermalink
(3) the specific purposes for which such allowances or allowance value was conveyed to each such recipient;CommentsClose CommentsPermalink
(4) documentation of the amount of energy savings, emission reductions, renewable energy deployment, and new or retooled manufacturing capacity resulting from the use of such allowances or allowance value; andCommentsClose CommentsPermalink
(5) for any energy efficiency program supported under subsection (c)(4)(C)--CommentsClose CommentsPermalink
(A) an assessment demonstrating the cost-effectiveness of such program; andCommentsClose CommentsPermalink
(B) a demonstration that the requirements set forth in subsection (c)(5) have been satisfied.CommentsClose CommentsPermalink
(e) Enforcement- If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold up to twice the number of allowances that the State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States in accordance with the requirements of subsection (b).CommentsClose CommentsPermalink
SEC. 133. SUPPORT OF INDIAN RENEWABLE ENERGY AND ENERGY EFFICIENCY PROGRAMS.
(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
(1) ALLOWANCE; COST-EFFECTIVE; RENEWABLE ENERGY RESOURCE- The terms ‘allowance’, ‘cost-effective’, and ‘renewable energy resource’ have the meaning given those terms in section 132 of this Act.CommentsClose CommentsPermalink
(2) INDIAN TRIBE- The term ‘Indian tribe’ has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25. U.S.C. 450b).CommentsClose CommentsPermalink
(3) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
(b) Establishment- Not later than 18 months after the date of enactment of this Act, the Secretary shall, in consultation with the Administrator and the Secretary of the Interior, promulgate regulations establishing a program to distribute allowances to Indian tribes on a competitive basis for the following purposes:CommentsClose CommentsPermalink
(1) ENERGY EFFICIENCY- Cost-effective energy efficiency programs for end-use consumers of electricity, natural gas, home heating oil, or propane.CommentsClose CommentsPermalink
(2) RENEWABLE ENERGY- Deployment of technologies to generate electricity from renewable energy resources.CommentsClose CommentsPermalink
(c) Requirements- The regulations promulgated pursuant to subsection (b) shall prescribe design elements and requirements of the program established under this section, including--CommentsClose CommentsPermalink
(1) objective criteria for evaluating proposals submitted by Indian tribes, and for selecting projects and programs to receive support, under this section;CommentsClose CommentsPermalink
(2) reporting requirements for Indian tribes that receive allowances under this section; andCommentsClose CommentsPermalink
(3) other appropriate elements and requirements.CommentsClose CommentsPermalink
(d) Distribution- The Administrator shall, at the direction of the Secretary, distribute to Indian tribes allowances that are set aside, pursuant to section 132, for use under this section.CommentsClose CommentsPermalink
Subtitle E--Smart Grid AdvancementCommentsClose CommentsPermalink
Subtitle E--Smart Grid AdvancementCommentsClose CommentsPermalink
SEC. 141. DEFINITIONS.
For purposes of this subtitle:CommentsClose CommentsPermalink
(1) The term ‘applicable baseline’ means the average of the highest three annual peak demands a load-serving entity has experienced during the 5 years immediately prior to the date of enactment of this Act.CommentsClose CommentsPermalink
(2) The term ‘Commission’ means Federal Energy Regulatory Commission.CommentsClose CommentsPermalink
(3) The term ‘load-serving entity’ means an entity that provides electricity directly to retail consumers with the responsibility to assure power quality and reliability, including such entities that are investor-owned, publicly owned, owned by rural electric cooperatives, or other entities.CommentsClose CommentsPermalink
(4) The term ‘peak demand’ means the highest point of electricity demand, net of any distributed electricity generation or storage from sources on the load-serving entity’s customers’ premises, during any hour on the system of a load serving entity during a calendar year, expressed in Megawatts (MW), or more than one such high point as a function of seasonal demand changes.CommentsClose CommentsPermalink
(5) The term ‘peak demand reduction’ means the reduction in annual peak demand as compared to a previous baseline year or period, expressed in Megawatts (MW), whether accomplished by--CommentsClose CommentsPermalink
(A) diminishing the end-use requirements for electricity;CommentsClose CommentsPermalink
(B) use of locally stored energy or generated electricity to meet those requirements from distributed resources on the load-serving entity’s customers’ premises and without use of high-voltage transmission; orCommentsClose CommentsPermalink
(C) energy savings from efficient operation of the distribution grid resulting from the use of a Smart Grid.CommentsClose CommentsPermalink
(6) The term ‘peak demand reduction plan’ means a plan developed by or for a load-serving entity that it will implement to meet its peak demand reduction goals.CommentsClose CommentsPermalink
(7) The term ‘peak period’ means the time period on the system of a load-serving entity relative to peak demand that may warrant special measures or electricity resources to maintain system reliability while meeting peak demand.CommentsClose CommentsPermalink
(8) The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
(9) The term ‘Smart Grid’ has the meaning provided by section 1301 of the Energy Independence and Security Act of 2007 (
SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN PRODUCTS.
(a) Assessment- Within one year after the date of enactment of this Act, the Secretary and the Administrator shall each assess the potential for cost-effective integration of Smart Grid technologies and capabilities in all products that are reviewed by the Department of Energy and the Environmental Protection Agency, respectively, for potential designation as Energy Star products.CommentsClose CommentsPermalink
(b) Analysis- (1) Within 2 years after the date of enactment of this Act, the Secretary and the Administrator shall each prepare an analysis of the potential energy savings, greenhouse gas emission reductions, and electricity cost savings that could accrue for each of the products identified by the assessment in subsection (a) in the following optimal circumstances:CommentsClose CommentsPermalink
(A) The products possessed Smart Grid capability and interoperability that is tested and proven reliable.CommentsClose CommentsPermalink
(B) The products were utilized in an electricity utility service area which had Smart Grid capability and offered customers rate or program incentives to use the products.CommentsClose CommentsPermalink
(C) The utility’s rates reflected national average costs, including average peak and valley seasonal and daily electricity costs.CommentsClose CommentsPermalink
(D) Consumers using such products took full advantage of such capability.CommentsClose CommentsPermalink
(E) The utility avoided incremental investments and rate increases related to such savings.CommentsClose CommentsPermalink
(2) The analysis under paragraph (1) shall be considered the ‘best case’ Smart Grid analysis. On the basis of such an analysis for each product, the Secretary and the Administrator shall determine whether the installation of Smart Grid capability for such a product would be cost effective. For purposes of this paragraph, the term ‘cost effective’ means that the cumulative savings from using the product under the best case Smart Grid circumstances for a period of one-half of the product’s expected useful life will be greater than the incremental cost of the Smart Grid features included in the product.CommentsClose CommentsPermalink
(3) To the extent that including Smart Grid capability in any products analyzed under paragraph (2) is found to be cost effective in the best case, the Secretary and the Administrator shall, not later than 3 years after the date of enactment of this Act take each of the following actions:CommentsClose CommentsPermalink
(A) Inform the manufacturer of such product of such finding of cost effectiveness.CommentsClose CommentsPermalink
(B) Assess the potential contributions the development and use of products with Smart Grid technologies bring to reducing peak demand and promoting grid stability.CommentsClose CommentsPermalink
(C) Assess the potential national energy savings and electricity cost savings that could be realized if Smart Grid potential were installed in the relevant products reviewed by the Energy Star program.CommentsClose CommentsPermalink
(D) Assess and identify options for providing consumers information on products with Smart Grid capabilities, including the necessary conditions for cost-effective savings.CommentsClose CommentsPermalink
(E) Submit a report to Congress summarizing the results of the assessment for each class of products, and presenting the potential energy and greenhouse gas savings that could result if Smart Grid capability were installed and utilized on such products.CommentsClose CommentsPermalink
SEC. 143. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE ENERGY GUIDE LABELS.
Section 324(a)(2) of the Energy Policy and Conservation Act (
‘(J)(i) Not later than 1 year after the date of enactment of this subparagraph, the Federal Trade Commission shall initiate a rulemaking to consider making a special note in a prominent manner on any ENERGY GUIDE label for any product actually including Smart Grid capability that--CommentsClose CommentsPermalink
‘(I) Smart Grid capability is a feature of that product;CommentsClose CommentsPermalink
‘(II) the use and value of that feature depended on the Smart Grid capability of the utility system in which the product was installed and the active utilization of that feature by the customer; andCommentsClose CommentsPermalink
‘(III) on a utility system with Smart Grid capability, the use of the product’s Smart Grid capability could reduce the customer’s cost of the product’s annual operation by an estimated dollar amount range representing the result of incremental energy and electricity cost savings that would result from the customer taking full advantage of such Smart Grid capability.CommentsClose CommentsPermalink
‘(ii) Not later than 3 years after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).’.CommentsClose CommentsPermalink
SEC. 144. SMART GRID PEAK DEMAND REDUCTION GOALS.
(a) Goals- Not later than one year after the date of enactment of this section, each load-serving entity, or, at the option of the State, each State with respect to load-serving entities that the State regulates, shall determine and publish peak demand reduction goals for any load-serving entities that have an applicable baseline in excess of 250 megawatts.CommentsClose CommentsPermalink
(b) Baselines- (1) The Commission, in consultation with the Secretary and the Administrator, shall develop and publish, after an opportunity for public comment, but not later than 180 days after enactment of this section, a methodology to provide for adjustments or normalization to a load-serving entity’s applicable baseline over time to reflect changes in the number of customers served, weather conditions, general economic conditions, and any other appropriate factors external to peak demand management, as determined by the Commission.CommentsClose CommentsPermalink
(2) The Commission shall support load-serving entities (including any load-serving entities with an applicable baseline of less than 250 megawatts that volunteer to participate in achieving the purposes of this section) in determining their applicable baselines, and in developing their peak demand reduction goals.CommentsClose CommentsPermalink
(3) The Secretary, in consultation with the Commission, the Administrator, and the North American Electric Reliability Corporation, shall develop a system and rules for measurement and verification of demand reductions.CommentsClose CommentsPermalink
(c) Peak Demand Reduction Goals- (1) Peak demand reduction goals may be established for an individual load-serving entity, or, at the determination of a State, tribal, or regional entity, by that State, tribal, or regional entity for a larger region that shares a common system peak demand and for which peak demand reduction measures would offer regional benefit.CommentsClose CommentsPermalink
(2) A State or regional entity establishing peak demand reduction goals shall cooperate, as necessary and appropriate, with the Commission, the Secretary, State regulatory commissions, State energy offices, the North American Electric Reliability Corporation, and other relevant authorities.CommentsClose CommentsPermalink
(3) In determining the applicable peak demand reduction goals--CommentsClose CommentsPermalink
(A) States and other jurisdictional entities may utilize the results of the 2009 National Demand Response Potential Assessment, as authorized by section 571 of the National Energy Conservation Policy Act (
(B) the relative economics of peak demand reduction and generation required to meet peak demand shall be evaluated in a neutral and objective manner.CommentsClose CommentsPermalink
(4) The applicable peak demand reduction goals shall provide that--CommentsClose CommentsPermalink
(A) load-serving entities will reduce or mitigate peak demand by a minimum percentage amount from the applicable baseline to a lower peak demand during calendar year 2012;CommentsClose CommentsPermalink
(B) load-serving entities will reduce or mitigate peak demand by a minimum percentage greater amount from the applicable baseline to a lower peak demand during calendar year 2015; andCommentsClose CommentsPermalink
(C) the minimum percentage reductions established as peak demand reduction goals shall be the maximum reductions that are realistically achievable with an aggressive effort to deploy Smart Grid and peak demand reduction technologies and methods, including but not limited to those listed in subsection (d).CommentsClose CommentsPermalink
(d) Plan- Each load-serving entity shall prepare a peak demand reduction plan that demonstrates its ability to meet each applicable goal by any or a combination of the following options:CommentsClose CommentsPermalink
(1) Direct reduction in megawatts of peak demand through--CommentsClose CommentsPermalink
(A) energy efficiency measures (including efficient transmission wire technologies which significantly reduce line loss compared to traditional wire technology) with reliable and continued application during peak demand periods; orCommentsClose CommentsPermalink
(B) use of a Smart Grid.CommentsClose CommentsPermalink
(2) Demonstration that an amount of megawatts equal to a stated portion of the applicable goal is contractually committed to be available for peak reduction through one or more of the following:CommentsClose CommentsPermalink
(A) Megawatts enrolled in demand response programs.CommentsClose CommentsPermalink
(B) Megawatts subject to the ability of a load-serving entity to call on demand response programs, smart appliances, smart electricity or energy storage devices, distributed generation resources on the entity’s customers’ premises, or other measures directly capable of actively, controllably, reliably, and dynamically reducing peak demand (‘dynamic peak management control’).CommentsClose CommentsPermalink
(C) Megawatts available from distributed dynamic electricity or energy storage under agreement with the owner of that storage.CommentsClose CommentsPermalink
(D) Megawatts committed from dispatchable distributed generation demonstrated to be reliable under peak period conditions and in compliance with air quality regulations.CommentsClose CommentsPermalink
(E) Megawatts available from smart appliances and equipment with Smart Grid capability available for direct control by the utility through agreement with the customer owning the appliances or equipment or with a third party pursuant to such agreements.CommentsClose CommentsPermalink
(F) Megawatts from a demonstrated and assured minimum of distributed solar electric generation capacity in instances where peak period and peak demand conditions are directly related to solar radiation and accompanying heat.CommentsClose CommentsPermalink
(3) If any of the methods listed in subparagraph (C), (D), or (E) of paragraph (2) are relied upon to meet its peak demand reduction goals, the load-serving entity must demonstrate this capability by operating a test during the applicable calendar year.CommentsClose CommentsPermalink
(4) Nothing in this section shall require the publication in peak demand reduction goals or in any peak demand reduction plan of any information that is confidential for competitive or other reasons or that identifies individual customers.CommentsClose CommentsPermalink
(e) Existing Authority and Requirements- Nothing in this section diminishes or supersedes any authority of a State or political subdivision of a State to adopt or enforce any law or regulation respecting peak demand management, demand response, distributed energy storage, use of distributed generation, or the regulation of load-serving entities. The Commission, in consultation with States and Indian tribes having such peak management, demand response and distributed energy storage programs, shall to the maximum extent practicable, facilitate coordination between the Federal program and such State and tribal programs.CommentsClose CommentsPermalink
(f) Relief- The Commission may, for good cause, grant relief to load-serving entities from the requirements of this section.CommentsClose CommentsPermalink
(g) Other Laws- Except as provided in subsections (e) and (f), no law or regulation shall relieve any person of any requirement otherwise applicable under this section.CommentsClose CommentsPermalink
(h) Compliance- (1) The Commission shall within one year after the date of enactment of this Act establish a public website where the Commission will provide information and data demonstrating compliance by States, Indian tribes regional entities, and load-serving entities with this section, including the success of load-serving entities in meeting applicable peak demand reduction goals.CommentsClose CommentsPermalink
(2) The Commission shall, by April 1 of each year beginning in 2012, provide a report to Congress on compliance with this section and success in meeting applicable peak demand reduction goals and, as appropriate, shall make recommendations as to how to increase peak demand reduction efforts.CommentsClose CommentsPermalink
(3) The Commission shall note in each such report any State, political subdivision of a State, or load-serving entity that has failed to comply with this section, or is not a part of any region or group of load-serving entities serving a region that has complied with this section.CommentsClose CommentsPermalink
(4) The Commission shall have and exercise the authority to take reasonable steps to modify the process of establishing peak demand reduction goals and to accept adjustments to them as appropriate when sought by load-serving entities.CommentsClose CommentsPermalink
(i) Assistance and Funding-CommentsClose CommentsPermalink
(1) ASSISTANCE TO STATES AND TRIBES- Any costs incurred by States for activities undertaken pursuant to this section shall be supported by the use of emission allowances allocated to the States’ SEED Accounts or to the tribes pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.CommentsClose CommentsPermalink
(2) FUNDING- There are authorized to be appropriated such sums as may be necessary to the Commission, the Secretary, and the Administrator to carry out the provisions of this section.CommentsClose CommentsPermalink
SEC. 145. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC INFORMATION PROGRAM TO INCLUDE SMART GRID INFORMATION.
(a) In General- Section 134 of the Energy Policy Act of 2005 (
(1) By amending the section heading to read as follows: ‘energy efficiency and smart grid public information initiative’.CommentsClose CommentsPermalink
(2) In paragraph (1) of subsection (a) by striking ‘reduce energy consumption during the 4-year period beginning on the date of enactment of this Act’ and inserting ‘increase energy efficiency and to adopt Smart Grid technology and practices’.CommentsClose CommentsPermalink
(3) In paragraph (2) of subsection (a) by striking ‘benefits to consumers of reducing’ and inserting ‘economic and environmental benefits to consumers and the United States of optimizing’.CommentsClose CommentsPermalink
(4) In subsection (a) by inserting at the beginning of paragraph (3) ‘the effect of energy efficiency and Smart Grid capability in reducing energy and electricity prices throughout the economy, together with’.CommentsClose CommentsPermalink
(5) In subsection (a)(4) by redesignating subparagraph (D) as (E), by striking ‘and’ at the end of subparagraph (C), and by inserting after subparagraph (C) the following:CommentsClose CommentsPermalink
‘(D) purchasing and utilizing equipment that includes Smart Grid features and capability; and’.CommentsClose CommentsPermalink
(6) In subsection (c), by striking ‘Not later than July 1, 2009,’ and inserting, ‘For each year when appropriations pursuant to the authorization in this section exceed $10,000,000,’.CommentsClose CommentsPermalink
(7) In subsection (d) by striking ‘2010’ and inserting ‘2020’.CommentsClose CommentsPermalink
(8) In subsection (e) by striking ‘2010’ and inserting ‘2020’.CommentsClose CommentsPermalink
(b) Table of Contents- The item relating to section 134 in the table of contents for the Energy Policy Act of 2005 (
‘Sec. 134. Energy efficiency and Smart Grid public information initiative.’.CommentsClose CommentsPermalink
SEC. 146. INCLUSION OF SMART GRID FEATURES IN APPLIANCE REBATE PROGRAM.
(a) Amendments- Section 124 of the Energy Policy Act of 2005 (
(1) By amending the section heading to read as follows: ‘energy efficient and smart appliance rebate program.’.CommentsClose CommentsPermalink
(2) By redesignating paragraphs (4) and (5) of subsection (a) as paragraphs (5) and (6), respectively, and inserting after paragraph (3) the following:CommentsClose CommentsPermalink
‘(4) SMART APPLIANCE- The term ‘smart appliance’ means a product that the Administrator of the Environmental Protection Agency or the Secretary of Energy has determined qualifies for such a designation in the Energy Star program pursuant to section 142 of the American Clean Energy and Security Act of 2009, or that the Secretary or the Administrator has separately determined includes the relevant Smart Grid capabilities listed in section 1301 of the Energy Independence and Security Act of 2007 (
15 U.S.C. 17381 ).’.CommentsClose CommentsPermalink
(3) In subsection (b)(1) by inserting ‘and smart’ after ‘efficient’ and by inserting after ‘products’ the first place it appears ‘, including products designated as being smart appliances’.CommentsClose CommentsPermalink
(4) In subsection (b)(3), by inserting ‘the administration of’ after ‘carry out’.CommentsClose CommentsPermalink
(5) In subsection (d), by inserting ‘the administration of’ after ‘carrying out’ and by inserting ‘, and up to 100 percent of the value of the rebates provided pursuant to this section’ before the period at the end.CommentsClose CommentsPermalink
(6) In subsection (e)(3), by inserting ‘, with separate consideration as applicable if the product is also a smart appliance,’ after ‘Energy Star product’ the first place it appears and by inserting ‘or smart appliance’ before the period at the end.CommentsClose CommentsPermalink
(7) In subsection (f), by striking ‘$50,000,000’ through the period at the end and inserting ‘$100,000,000 for each fiscal year from 2010 through 2015.’.CommentsClose CommentsPermalink
(b) Table of Contents- The item relating to section 124 in the table of contents for the Energy Policy Act of 2005 (
‘Sec. 124. Energy efficient and smart appliance rebate program.’.CommentsClose CommentsPermalink
Subtitle F--Transmission PlanningCommentsClose CommentsPermalink
Subtitle F--Transmission PlanningCommentsClose CommentsPermalink
SEC. 151. TRANSMISSION PLANNING.
Part II of the Federal Power Act (
‘SEC. 216A. TRANSMISSION PLANNING.
‘(a) Federal Policy-CommentsClose CommentsPermalink
‘(1) OBJECTIVES- It is the policy of the United States that regional electric grid planning should facilitate the deployment of renewable and other zero-carbon energy sources for generating electricity to reduce greenhouse gas emissions while ensuring reliability, reducing congestion, ensuring cyber-security, and providing for cost-effective electricity services throughout the United States.CommentsClose CommentsPermalink
‘(2) OPTIONS- In addition to the policy under paragraph (1), it is the policy of the United States that regional electric grid planning to meet these objectives should take into account all significant demand-side and supply-side options, including energy efficiency, distributed generation, renewable energy and zero-carbon electricity generation technologies, smart-grid technologies and practices, demand response, electricity storage, voltage regulation technologies, high capacity conductors with at least 25 percent greater efficiency than traditional ACSR (aluminum stranded conductors steel reinforced) conductors, superconductor technologies, underground transmission technologies, and new conventional electric transmission capacity and corridors.CommentsClose CommentsPermalink
‘(b) Planning-CommentsClose CommentsPermalink
‘(1) PLANNING PRINCIPLES- Not later than 1 year after the date of enactment of this section, the Commission shall adopt, after notice and opportunity for comment, national electricity grid planning principles derived from the Federal policy established under subsection (a) to be applied in ongoing and future transmission planning that may implicate interstate transmission of electricity.CommentsClose CommentsPermalink
‘(2) REGIONAL PLANNING ENTITIES- Not later than 3 months after the date of adoption by the Commission of national electricity grid planning principles pursuant to paragraph (1), entities that conduct or may conduct transmission planning pursuant to State, tribal, or Federal law or regulation, including States, Indian tribes, entities designated by States and Indian tribes, Federal Power Marketing Administrations, public utility transmission providers, operators and owners, regional organizations, and electric utilities, and that are willing to incorporate the national electricity grid planning principles adopted by the Commission in their electric grid planning, shall identify themselves and the regions for which they propose to develop plans to the Commission.CommentsClose CommentsPermalink
‘(3) COORDINATION OF REGIONAL PLANNING ENTITIES- The Commission shall encourage regional planning entities described under paragraph (2) to cooperate and coordinate across regions and to harmonize regional electric grid planning with planning in adjacent or overlapping jurisdictions to the maximum extent feasible. The Commission shall work with States, Indian tribes, Federal Power Marketing Administrations, public utilities transmission providers, load-serving entities, transmission operators, Regional Transmission Organizations, Independent System Operators, and other organizations to resolve any conflict or competition among proposed planning entities in order to build consensus and promote the Federal policy established under subsection (a). The Commission shall seek to ensure that planning that is consistent with the national electricity grid planning principles adopted pursuant to paragraph (1) is conducted in all regions of the United States and the territories.CommentsClose CommentsPermalink
‘(4) RELATION TO EXISTING PLANNING POLICY- In implementing the Federal policy established under subsection (a), the Commission shall--CommentsClose CommentsPermalink
‘(A) incorporate any ongoing planning efforts undertaken pursuant to section 217;CommentsClose CommentsPermalink
‘(B) consult with and invite the participation of the Secretary of Energy in relationship to the Secretary’s duties pursuant to section 216; andCommentsClose CommentsPermalink
‘(C) coordinate with the Secretaries of the Interior and Agriculture and with Indian tribes in carrying out the Secretaries’ or tribal governments’ existing responsibilities for the planning or siting of transmission facilities on Federal or tribal lands.CommentsClose CommentsPermalink
‘(5) ASSISTANCE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The Commission shall provide support to and participate in the regional grid planning processes conducted by regional planning entities. The Commission may provide planning resources and assistance as required or as requested by regional planning entities, including system data, cost information, system analysis, technical expertise, modeling support, dispute resolution services, and other assistance to regional planning entities, as appropriate.CommentsClose CommentsPermalink
‘(B) AUTHORIZATION- There are authorized to be appropriated such sums as may be necessary to carry out this paragraph.CommentsClose CommentsPermalink
‘(6) CONFLICT RESOLUTION- In the event that regional grid plans conflict, the Commission shall assist the regional planning entities in resolving such conflicts in order to achieve the objectives of the Federal policy established under subsection (a).CommentsClose CommentsPermalink
‘(7) SUBMISSION OF PLANS- The Commission shall require regional planning entities to submit initial regional electric grid plans to the Commission not later than 18 months after the date the Commission promulgates national electricity grid planning principles pursuant to paragraph (1) and to update such plans not less than every 3 years thereafter. Regional electric grid plans should, in general, be developed from sub-regional requirements and plans, including planning input reflecting individual utility service areas. Regional plans may then in turn be combined into larger regional plans, up to interconnection-wide and national plans, as appropriate and necessary as determined by the Commission. The Commission shall review such plans for consistency with the national grid planning principles and may return a plan to one or more planning entities for further consideration, along with the Commission’s own recommendations for resolution of any conflict or for improvement. To the extent practicable, all plans submitted to the Commission shall be public documents and available on the Commission’s website.CommentsClose CommentsPermalink
‘(8) MULTI-REGIONAL MEETINGS- As regional grid plans are submitted to the Commission, the Commission may convene multi-regional meetings to discuss regional grid plan consistency and integration, including requirements for multi-regional projects, and to resolve any conflicts that emerge from such multi-regional projects. The Commission shall provide its recommendations for eliminating any inter-regional conflicts.CommentsClose CommentsPermalink
‘(9) REPORT TO CONGRESS- Not later than 3 years after the date of enactment of this section, the Commission shall provide a report to Congress containing the results of the initial regional grid planning process, including summaries of the adopted regional plans. The Commission shall provide an electronic version of its report on its website with links to all regional and sub-regional plans taken into account. The Commission shall note and provide its recommended resolution for any conflicts not resolved during the planning process. The Commission shall make any recommendations to Congress on the appropriate Federal role or support required to address the needs of the electric grid, including recommendations for addressing any needs that are beyond the reach of existing State, tribal, and Federal authority.’.CommentsClose CommentsPermalink
SEC. 152. NET METERING FOR FEDERAL AGENCIES.
(a) Standard- Subsection (b) of section 113 of the Public Utility Regulatory Policies Act of 1978 (
‘(6) NET METERING FOR FEDERAL AGENCIES- Each electric utility shall offer to arrange (either directly or through a third party) to make interconnection and net metering available to Federal Government agencies, offices, or facilities in accordance with the requirements of section 115(j). The standard under this paragraph shall apply only to electric utilities that sold over 4,000,000 megawatt hours of electricity in the preceding year to the ultimate consumers thereof. In the case of a standard under this paragraph, a period of 1 year after the date of the enactment of this section shall be substituted for the 2-year period referred to in other provisions of this section.’.CommentsClose CommentsPermalink
(b) Special Rules- Section 115 of the Public Utility Regulatory Policies Act of 1978 (
‘(j) Net Metering for Federal Agencies- (1) The standard under paragraph (6) of section 113(b) shall require that rates and charges and contract terms and conditions for the sale of electric energy to the Federal Government or agency shall be the same as the rates and charges and contract terms and conditions that would be applicable if the agency did not own or operate a qualified generation unit and use a net metering system.CommentsClose CommentsPermalink
‘(2)(A) The standard under paragraph (6) of section 113(b) shall require that each electric utility shall arrange to provide to the Government office or agency that qualifies for net metering an electrical energy meter capable of net metering and measuring, to the maximum extent practicable, the flow of electricity to or from the customer, using a single meter and single register, the cost of which shall be recovered from the customer.CommentsClose CommentsPermalink
‘(B) In a case in which it is not practicable to provide a meter under subparagraph (A), the utility (either directly or through a third party) shall, at the expense of the utility install 1 or more of those electric energy meters.CommentsClose CommentsPermalink
‘(3)(A) The standard under paragraph (6) of section 113(b) shall require that each electric utility shall calculate the electric energy consumption for the Government office or agency using a net metering system that meets the requirements of this subsection and paragraph (6) of section 113(b) and shall measure the net electricity produced or consumed during the billing period using the metering installed in accordance with this paragraph.CommentsClose CommentsPermalink
‘(B) If the electricity supplied by the retail electric supplier exceeds the electricity generated by the Government office or agency during the billing period, the Government office or agency shall be billed for the net electric energy supplied by the retail electric supplier in accordance with normal billing practices.CommentsClose CommentsPermalink
‘(C) If electric energy generated by the Government office or agency exceeds the electric energy supplied by the retail electric supplier during the billing period, the Government office or agency shall be billed for the appropriate customer charges for that billing period and credited for the excess electric energy generated during the billing period, with the credit appearing as a kilowatt-hour credit on the bill for the following billing period.CommentsClose CommentsPermalink
‘(D) Any kilowatt-hour credits provided to the Government office or agency as provided in this subsection shall be applied to the Government office or agency electric energy consumption on the following billing period bill (except for a billing period that ends in the next calendar year). At the beginning of each calendar year, any unused kilowatt-hour credits remaining from the preceding year will carry over to the new year.CommentsClose CommentsPermalink
‘(4) The standard under paragraph (6) of section 113(b) shall require that each electric utility shall offer a meter and retail billing arrangement that has time-differentiated rates. The kilowatt-hour credit shall be based on the ratio representing the difference in retail rates for each time-of-use rate, or the credits shall be reflected on the bill of the Government office or agency as a monetary credit reflecting retail rates at the time of generation of the electric energy by the customer-generator.CommentsClose CommentsPermalink
‘(5) The standard under paragraph (6) of section 113(b) shall require that the qualified generation unit, interconnection standards, and net metering system used by the Government office or agency shall meet all applicable safety and performance and reliability standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, and the American National Standards Institute.CommentsClose CommentsPermalink
‘(6) The standard under paragraph (6) of section 113(b) shall require that electric utilities shall not make additional charges, including standby charges, for equipment or services for safety or performance that are in addition to those necessary to meet the other standards and requirements of this subsection and paragraph (6) of section 113(b).CommentsClose CommentsPermalink
‘(7) For purposes of this subsection and paragraph (6) of section 113(b):CommentsClose CommentsPermalink
‘(A) The term ‘Government’ means any office, facility, or agency of the Federal Government.CommentsClose CommentsPermalink
‘(B) The term ‘customer-generator’ means the owner or operator of a electricity generation unit.CommentsClose CommentsPermalink
‘(C) The term ‘electric generation unit’ means any renewable electric generation unit that is owned, operated, or sited on a Federal Government facility.CommentsClose CommentsPermalink
‘(D) The term ‘net metering’ means the process of--CommentsClose CommentsPermalink
‘(i) measuring the difference between the electricity supplied to a customer-generator and the electricity generated by the customer-generator that is delivered to a utility at the same point of interconnection during an applicable billing period; andCommentsClose CommentsPermalink
‘(ii) providing an energy credit to the customer-generator in the form of a kilowatt-hour credit for each kilowatt-hour of electricity produced by the customer-generator from an electric generation unit.’.CommentsClose CommentsPermalink
(c) Savings Provision- If this section or a portion of this section is determined to be invalid or unenforceable, that shall not affect the validity or enforceability of any other provision of this Act.CommentsClose CommentsPermalink
SEC. 153. SUPPORT FOR QUALIFIED ADVANCED ELECTRIC TRANSMISSION MANUFACTURING PLANTS, QUALIFIED HIGH EFFICIENCY TRANSMISSION PROPERTY, AND QUALIFIED ADVANCED ELECTRIC TRANSMISSION PROPERTY.
(a) Loan Guarantees Prior to September 30, 2011- Section 1705(a) of the Energy Policy Act of 2005 (
‘(5) The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of a qualified high efficiency transmission property or a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities). For purposes of this paragraph:CommentsClose CommentsPermalink
‘(A) The term ‘qualified advanced electric transmission property’ means any high voltage electric transmission cable, related substation, converter station, or other integrated facility that--CommentsClose CommentsPermalink
‘(i) utilizes advanced ultra low resistance superconductive material or other advanced technology that has been determined by the Secretary of Energy as--CommentsClose CommentsPermalink
‘(I) reasonably likely to become commercially viable within 10 years after the date of enactment of this paragraph;CommentsClose CommentsPermalink
‘(II) capable of reliably transmitting at least 5 gigawatts of high-voltage electric energy for distances greater than 300 miles with energy losses not exceeding 3 percent of the total power transported; andCommentsClose CommentsPermalink
‘(III) not creating an electromagnetic field;CommentsClose CommentsPermalink
‘(ii) has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; andCommentsClose CommentsPermalink
‘(iii) can be located safely and economically in a permanent underground right of way not to exceed 25 feet in width.CommentsClose CommentsPermalink
The term ‘qualified advanced electric transmission property’ shall not include any property placed in service after December 31, 2016.CommentsClose CommentsPermalink
‘(B)(i) The term ‘qualified high efficiency transmission property’ means any high voltage overhead electric transmission line, related substation, or other integrated facility that--CommentsClose CommentsPermalink
‘(I) utilizes advanced conductor core technology that--CommentsClose CommentsPermalink
‘(aa) has been determined by the Secretary of Energy as reasonably likely to become commercially viable within 10 years after the date of enactment of this paragraph;CommentsClose CommentsPermalink
‘(bb) is suitable for use on transmission lines up to 765kV; andCommentsClose CommentsPermalink
‘(cc) exhibits power losses at least 30 percent lower than that of transmission lines using conventional ‘ACSR’ conductors;CommentsClose CommentsPermalink
‘(II) has been determined by an appropriate energy regulatory body, upon application, to be in the public interest and thereby eligible for inclusion in regulated rates; andCommentsClose CommentsPermalink
‘(III) can be located safely and economically in a right of way not to exceed that used by conventional ‘ACSR’ conductors; andCommentsClose CommentsPermalink
‘(ii) The term ‘qualified high efficiency transmission property’ shall not include any property placed in service after December 31, 2016.CommentsClose CommentsPermalink
‘(C) The term ‘qualified advanced electric transmission manufacturing plant’ means any industrial facility located in the United States which can be equipped, re-equipped, expanded, or established to produce in whole or in part qualified advanced electric transmission property.’.CommentsClose CommentsPermalink
(b) Additional Loan Guarantee Authority- Section 1703 of the Energy Policy Act of 2005 (
‘(12) The development, construction, acquisition, retrofitting, or engineering integration of a qualified advanced electric transmission manufacturing plant or the construction of a qualified advanced electric transmission property (whether by construction of new facilities or the modification of existing facilities). For purposes of this paragraph, the terms ‘qualified advanced electric transmission property’ and ‘qualified advanced electric transmission manufacturing plant’ have the meanings provided by section 1705(a)(5).’.CommentsClose CommentsPermalink
(c) Grants- The Secretary of Energy is authorized to provide grants for up to 50 percent of costs incurred in connection with the development, construction, acquisition of components for, or engineering of a qualified advanced electric transmission property defined in paragraph (5) of section 1705(a) of the Energy Policy Act of 2005 (
Subtitle G--Technical Corrections to Energy LawsCommentsClose CommentsPermalink
Subtitle G--Technical Corrections to Energy LawsCommentsClose CommentsPermalink
SEC. 161. TECHNICAL CORRECTIONS TO ENERGY INDEPENDENCE AND SECURITY ACT OF 2007.
(a) Title III--Energy Savings Through Improved Standards for Appliance and Lighting- (1) Section 325(u) of the Energy Policy and Conservation Act (
(A) by redesignating paragraph (7) as paragraph (4); andCommentsClose CommentsPermalink
(B) in paragraph (4) (as so redesignated), by striking ‘supplies is’ and inserting ‘supply is’.CommentsClose CommentsPermalink
(2) Section 302 of the Energy Independence and Security Act of 2007 (121 Stat. 1551)) is amended--CommentsClose CommentsPermalink
(A) in subsection (a), by striking ‘end of the paragraph’ and inserting ‘end of subparagraph (A)’; andCommentsClose CommentsPermalink
(B) in subsection (b), by striking ‘6313(a)’ and inserting ‘6314(a)’.CommentsClose CommentsPermalink
(3) Section 343(a)(1) of the Energy Policy and Conservation Act (
(A) by striking ‘TEST PROCEDURES’ and all that follows through ‘At least once’ and inserting ‘TEST PROCEDURES- At least once’; andCommentsClose CommentsPermalink
(B) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left).CommentsClose CommentsPermalink
(4) Section 342(a)(6) of the Energy Policy and Conservation Act (
(A) in subparagraph (B)--CommentsClose CommentsPermalink
(i) by striking ‘If the Secretary’ and inserting the following:CommentsClose CommentsPermalink
‘(i) IN GENERAL- If the Secretary’;CommentsClose CommentsPermalink
(ii) by striking ‘clause (ii)(II)’ and inserting ‘subparagraph (A)(ii)(II)’;CommentsClose CommentsPermalink
(iii) by striking ‘clause (i)’ and inserting ‘subparagraph (A)(i)’; andCommentsClose CommentsPermalink
(iv) by adding at the end the following:CommentsClose CommentsPermalink
‘(ii) FACTORS- In determining whether a standard is economically justified for the purposes of subparagraph (A)(ii)(II), the Secretary shall, after receiving views and comments furnished with respect to the proposed standard, determine whether the benefits of the standard exceed the burden of the proposed standard by, to the maximum extent practicable, considering--CommentsClose CommentsPermalink
‘(I) the economic impact of the standard on the manufacturers and on the consumers of the products subject to the standard;CommentsClose CommentsPermalink
‘(II) the savings in operating costs throughout the estimated average life of the product in the type (or class) compared to any increase in the price of, or in the initial charges for, or maintenance expenses of, the products that are likely to result from the imposition of the standard;CommentsClose CommentsPermalink
‘(III) the total projected quantity of energy savings likely to result directly from the imposition of the standard;CommentsClose CommentsPermalink
‘(IV) any lessening of the utility or the performance of the products likely to result from the imposition of the standard;CommentsClose CommentsPermalink
‘(V) the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of the standard;CommentsClose CommentsPermalink
‘(VI) the need for national energy conservation; andCommentsClose CommentsPermalink
‘(VII) other factors the Secretary considers relevant.CommentsClose CommentsPermalink
‘(iii) ADMINISTRATION-CommentsClose CommentsPermalink
‘(I) ENERGY USE AND EFFICIENCY- The Secretary may not prescribe any amended standard under this paragraph that increases the maximum allowable energy use, or decreases the minimum required energy efficiency, of a covered product.CommentsClose CommentsPermalink
‘(II) UNAVAILABILITY-CommentsClose CommentsPermalink
‘(aa) IN GENERAL- The Secretary may not prescribe an amended standard under this subparagraph if the Secretary finds (and publishes the finding) that interested persons have established by a preponderance of the evidence that a standard is likely to result in the unavailability in the United States in any product type (or class) of performance characteristics (including reliability, features, sizes, capacities, and volumes) that are substantially the same as those generally available in the United States at the time of the finding of the Secretary.CommentsClose CommentsPermalink
‘(bb) OTHER TYPES OR CLASSES- The failure of some types (or classes) to meet the criterion established under this subclause shall not affect the determination of the Secretary on whether to prescribe a standard for the other types or classes.’; andCommentsClose CommentsPermalink
(B) in subparagraph (C)(iv), by striking ‘An amendment prescribed under this subsection’ and inserting ‘Notwithstanding subparagraph (D), an amendment prescribed under this subparagraph’.CommentsClose CommentsPermalink
(5) Section 342(a)(6)(B)(iii) of the Energy Policy and Conservation Act (as added by section 306(c) of the Energy Independence and Security Act of 2007) is transferred and redesignated as clause (vi) of section 342(a)(6)(C) of the Energy Policy and Conservation Act (as amended by section 305(b)(2) of the Energy Independence and Security Act of 2007).CommentsClose CommentsPermalink
(6) Section 340 of the Energy Policy and Conservation Act (
(7) Section 345 of the Energy Policy and Conservation Act (
(A) by striking ‘subparagraphs (B) through (G)’ each place it appears and inserting ‘subparagraphs (B), (C), (D), (I), (J), and (K)’;CommentsClose CommentsPermalink
(B) by striking ‘part A’ each place it appears and inserting ‘part B’; andCommentsClose CommentsPermalink
(C) in subsection (h)(3), by striking ‘section 342(f)(3)’ and inserting ‘section 342(f)(4)’.CommentsClose CommentsPermalink
(8) Section 340(13) of the Energy Policy and Conservation Act (
(A) by striking subparagraphs (A) and (B) and inserting the following:CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘electric motor’ means any motor that is--CommentsClose CommentsPermalink
‘(i) a general purpose T-frame, single-speed, foot-mounting, polyphase squirrel-cage induction motor of the National Electrical Manufacturers Association, Design A and B, continuous rated, operating on 230/460 volts and constant 60 Hertz line power as defined in NEMA Standards Publication MG1-1987; orCommentsClose CommentsPermalink
‘(ii) a motor incorporating the design elements described in clause (i), but is configured to incorporate one or more of the following variations--CommentsClose CommentsPermalink
‘(I) U-frame motor;CommentsClose CommentsPermalink
‘(II) NEMA Design C motor;CommentsClose CommentsPermalink
‘(III) close-coupled pump motor;CommentsClose CommentsPermalink
‘(IV) footless motor;CommentsClose CommentsPermalink
‘(V) vertical solid shaft normal thrust motor (as tested in a horizontal configuration);CommentsClose CommentsPermalink
‘(VI) 8-pole motor; orCommentsClose CommentsPermalink
‘(VII) poly-phase motor with a voltage rating of not more than 600 volts (other than 230 volts or 460 volts, or both, or can be operated on 230 volts or 460 volts, or both).’; andCommentsClose CommentsPermalink
(B) by redesignating subparagraphs (C) through (I) as subparagraphs (B) through (H), respectively.CommentsClose CommentsPermalink
(9)(A) Section 342(b) of the Energy Policy and Conservation Act (
(i) in paragraph (1), by striking ‘paragraph (2)’ and inserting ‘paragraph (3)’;CommentsClose CommentsPermalink
(ii) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4);CommentsClose CommentsPermalink
(iii) by inserting after paragraph (1) the following:CommentsClose CommentsPermalink
‘(2) STANDARDS EFFECTIVE BEGINNING DECEMBER 19, 2010-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Except for definite purpose motors, special purpose motors, and those motors exempted by the Secretary under paragraph (3) and except as provided for in subparagraphs (B), (C), and (D), each electric motor manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-12.CommentsClose CommentsPermalink
‘(B) FIRE PUMP ELECTRIC MOTORS- Except for those motors exempted by the Secretary under paragraph (3), each fire pump electric motor manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency that is not less than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-11.CommentsClose CommentsPermalink
‘(C) NEMA DESIGN B ELECTRIC MOTORS- Except for those motors exempted by the Secretary under paragraph (3), each NEMA Design B electric motor with power ratings of more than 200 horsepower, but not greater than 500 horsepower, manufactured (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-11.CommentsClose CommentsPermalink
‘(D) MOTORS INCORPORATING CERTAIN DESIGN ELEMENTS- Except for those motors exempted by the Secretary under paragraph (3), each electric motor described in section 340(13)(A)(ii) manufactured with power ratings from 1 to 200 horsepower (alone or as a component of another piece of equipment) on or after December 19, 2010, shall have a nominal full load efficiency of not less than the nominal full load efficiency described in NEMA MG-1 (2006) Table 12-11.’; andCommentsClose CommentsPermalink
(iv) in paragraph (3) (as redesignated by clause (ii)), by striking ‘paragraph (1)’ each place it appears in subparagraphs (A) and (D) and inserting ‘paragraphs (1) and (2)’.CommentsClose CommentsPermalink
(B) Section 313 of the Energy Independence and Security Act of 2007 (121 Stat. 1568) is repealed.CommentsClose CommentsPermalink
(C) The amendments made by--CommentsClose CommentsPermalink
(i) subparagraph (A) shall take effect on December 19, 2010; andCommentsClose CommentsPermalink
(ii) subparagraph (B) shall take effect on December 19, 2007.CommentsClose CommentsPermalink
(10) Section 321(30)(D)(i)(III) of the Energy Policy and Conservation Act (
(11) Section 321(30)(T) of the Energy Policy and Conservation Act (
(A) in clause (i)--CommentsClose CommentsPermalink
(i) by striking the comma after ‘household appliance’ and inserting ‘and’; andCommentsClose CommentsPermalink
(ii) by striking ‘and is sold at retail,’; andCommentsClose CommentsPermalink
(B) in clause (ii), by inserting ‘when sold at retail,’ before ‘is designated’.CommentsClose CommentsPermalink
(12) Section 325 of the Energy Policy and Conservation Act (
‘(i) General Service Fluorescent Lamps, General Service Incandescent Lamps, Intermediate Base Incandescent Lamps, Candelabra Base Incandescent Lamps, and Incandescent Reflector Lamps-CommentsClose CommentsPermalink
‘(1) ENERGY EFFICIENCY STANDARDS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Each of the following general service fluorescent lamps, general service incandescent lamps, intermediate base incandescent lamps, candelabra base incandescent lamps, and incandescent reflector lamps manufactured after the effective date specified in the tables listed in this subparagraph shall meet or exceed the following lamp efficacy, new maximum wattage, and CRI standards:CommentsClose CommentsPermalink
‘FLUORESCENT LAMPSCommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
Lamp Type Nominal Lamp Wattage Minimum CRI Minimum Average Lamp Efficacy (LPW) Effective Date (Period of Months) CommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
4-foot medium bi-pin >35 W 69 75.0 36 CommentsClose CommentsPermalink
45 75.0 36 CommentsClose CommentsPermalink
2-foot U-shaped >35 W 69 68.0 36 CommentsClose CommentsPermalink
45 64.0 36 CommentsClose CommentsPermalink
8-foot slimline 65 W 69 80.0 18 CommentsClose CommentsPermalink
45 80.0 18 CommentsClose CommentsPermalink
8-foot high output >100 W 69 80.0 18 CommentsClose CommentsPermalink
45 80.0 18 CommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
‘INCANDESCENT REFLECTOR LAMPSCommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
Nominal Lamp Wattage Minimum Average Lamp Efficacy (LPW) Effective Date (Period of Months) CommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
40-50 10.5 36 CommentsClose CommentsPermalink
51-66 11.0 36 CommentsClose CommentsPermalink
67-85 12.5 36 CommentsClose CommentsPermalink
86-115 14.0 36 CommentsClose CommentsPermalink
116-155 14.5 36 CommentsClose CommentsPermalink
156-205 15.0 36 CommentsClose CommentsPermalink
-------------------------------------------------------------------------------- CommentsClose CommentsPermalink
‘GENERAL SERVICE INCANDESCENT LAMPSCommentsClose CommentsPermalink
-------------------------------------------------------------------------------CommentsClose CommentsPermalink
Rated Lumen Ranges Maximum Rated Wattage Minimum Rated Lifetime Effective Date CommentsClose CommentsPermalink
-------------------------------------------------------------------------------CommentsClose CommentsPermalink
1490-2600 72 1,000 hrs 1/1/2012 CommentsClose CommentsPermalink
1050-1489 53 1,000 hrs 1/1/2013 CommentsClose CommentsPermalink
750-1049 43 1,000 hrs 1/1/2014 CommentsClose CommentsPermalink
310-749 29 1,000 hrs 1/1/2014 CommentsClose CommentsPermalink
-------------------------------------------------------------------------------CommentsClose CommentsPermalink
‘MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPSCommentsClose CommentsPermalink
-------------------------------------------------------------------------------CommentsClose CommentsPermalink
Rated Lumen Ranges Maximum Rated Wattage Minimum Rated Lifetime Effective Date CommentsClose CommentsPermalink
-------------------------------------------------------------------------------CommentsClose CommentsPermalink
1118-1950 72 1,000 hrs 1/1/2012 CommentsClose CommentsPermalink
788-1117 53 1,000 hrs 1/1/2013 CommentsClose CommentsPermalink
563-787 43 1,000 hrs 1/1/2014 CommentsClose CommentsPermalink
232-562 29 1,000 hrs 1/1/2014 CommentsClose CommentsPermalink
-------------------------------------------------------------------------------CommentsClose CommentsPermalink
‘(B) APPLICATION-CommentsClose CommentsPermalink
‘(i) APPLICATION CRITERIA- This subparagraph applies to each lamp that--CommentsClose CommentsPermalink
‘(I) is intended for a general service or general illumination application (whether incandescent or not);CommentsClose CommentsPermalink
‘(II) has a medium screw base or any other screw base not defined in ANSI C81.61-2006;CommentsClose CommentsPermalink
‘(III) is capable of being operated at a voltage at least partially within the range of 110 to 130 volts; andCommentsClose CommentsPermalink
‘(IV) is manufactured or imported after December 31, 2011.CommentsClose CommentsPermalink
‘(ii) REQUIREMENT- For purposes of this paragraph, each lamp described in clause (i) shall have a color rendering index that is greater than or equal to--CommentsClose CommentsPermalink
‘(I) 80 for nonmodified spectrum lamps; orCommentsClose CommentsPermalink
‘(II) 75 for modified spectrum lamps.CommentsClose CommentsPermalink
‘(C) CANDELABRA INCANDESCENT LAMPS AND INTERMEDIATE BASE INCANDESCENT LAMPS-CommentsClose CommentsPermalink
‘(i) CANDELABRA BASE INCANDESCENT LAMPS- Effective beginning January 1, 2012, a candelabra base incandescent lamp shall not exceed 60 rated watts.CommentsClose CommentsPermalink
‘(ii) INTERMEDIATE BASE INCANDESCENT LAMPS- Effective beginning January 1, 2012, an intermediate base incandescent lamp shall not exceed 40 rated watts.CommentsClose CommentsPermalink
‘(D) EXEMPTIONS-CommentsClose CommentsPermalink
‘(i) STATUTORY EXEMPTIONS- The standards specified in subparagraph (A) shall not apply to the following types of incandescent reflector lamps:CommentsClose CommentsPermalink
‘(I) Lamps rated at 50 watts or less that are ER30, BR30, BR40, or ER40 lamps.CommentsClose CommentsPermalink
‘(II) Lamps rated at 65 watts that are BR30, BR40, or ER40 lamps.CommentsClose CommentsPermalink
‘(III) R20 incandescent reflector lamps rated 45 watts or less.CommentsClose CommentsPermalink
‘(ii) ADMINISTRATIVE EXEMPTIONS-CommentsClose CommentsPermalink
‘(I) PETITION- Any person may petition the Secretary for an exemption for a type of general service lamp from the requirements of this subsection.CommentsClose CommentsPermalink
‘(II) CRITERIA- The Secretary may grant an exemption under subclause (I) only to the extent that the Secretary finds, after a hearing and opportunity for public comment, that it is not technically feasible to serve a specialized lighting application (such as a military, medical, public safety, or certified historic lighting application) using a lamp that meets the requirements of this subsection.CommentsClose CommentsPermalink
‘(III) ADDITIONAL CRITERION- To grant an exemption for a product under this clause, the Secretary shall include, as an additional criterion, that the exempted product is unlikely to be used in a general service lighting application.CommentsClose CommentsPermalink
‘(E) EXTENSION OF COVERAGE-CommentsClose CommentsPermalink
‘(i) PETITION- Any person may petition the Secretary to establish standards for lamp shapes or bases that are excluded from the definition of general service lamps.CommentsClose CommentsPermalink
‘(ii) INCREASED SALES OF EXEMPTED LAMPS- The petition shall include evidence that the availability or sales of exempted incandescent lamps have increased significantly since the date on which the standards on general service incandescent lamps were established.CommentsClose CommentsPermalink
‘(iii) CRITERIA- The Secretary shall grant a petition under clause (i) if the Secretary finds that--CommentsClose CommentsPermalink
‘(I) the petition presents evidence that demonstrates that commercial availability or sales of exempted incandescent lamp types have increased significantly since the standards on general service lamps were established and likely are being widely used in general lighting applications; andCommentsClose CommentsPermalink
‘(II) significant energy savings could be achieved by covering exempted products, as determined by the Secretary based in part on sales data provided to the Secretary from manufacturers and importers.CommentsClose CommentsPermalink
‘(iv) NO PRESUMPTION- The grant of a petition under this subparagraph shall create no presumption with respect to the determination of the Secretary with respect to any criteria under a rulemaking conducted under this section.CommentsClose CommentsPermalink
‘(v) EXPEDITED PROCEEDING- If the Secretary grants a petition for a lamp shape or base under this subparagraph, the Secretary shall--CommentsClose CommentsPermalink
‘(I) conduct a rulemaking to determine standards for the exempted lamp shape or base; andCommentsClose CommentsPermalink
‘(II) complete the rulemaking not later than 18 months after the date on which notice is provided granting the petition.CommentsClose CommentsPermalink
‘(F) EFFECTIVE DATES-CommentsClose CommentsPermalink
‘(i) IN GENERAL- In this paragraph, except as otherwise provided in a table contained in subparagraph (A) or in clause (ii), the term ‘effective date’ means the last day of the month specified in the table that follows October 24, 1992.CommentsClose CommentsPermalink
‘(ii) SPECIAL EFFECTIVE DATES-CommentsClose CommentsPermalink
‘(I) ER, BR, AND BPAR LAMPS- The standards specified in subparagraph (A) shall apply with respect to ER incandescent reflector lamps, BR incandescent reflector lamps, BPAR incandescent reflector lamps, and similar bulb shapes on and after January 1, 2008, or the date that is 180 days after the date of enactment of the Energy Independence and Security Act of 2007.CommentsClose CommentsPermalink
‘(II) LAMPS BETWEEN 2.25-2.75 INCHES IN DIAMETER- The standards specified in subparagraph (A) shall apply with respect to incandescent reflector lamps with a diameter of more than 2.25 inches, but not more than 2.75 inches, on and after the later of January 1, 2008, or the date that is 180 days after the date of enactment of the Energy Independence and Security Act of 2007.CommentsClose CommentsPermalink
‘(2) COMPLIANCE WITH EXISTING LAW- Notwithstanding section 332(a)(5) and section 332(b), it shall not be unlawful for a manufacturer to sell a lamp that is in compliance with the law at the time the lamp was manufactured.CommentsClose CommentsPermalink
‘(3) RULEMAKING BEFORE OCTOBER 24, 1995-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Not later than 36 months after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than the end of the 54-month period beginning on October 24, 1992, to determine whether the standards established under paragraph (1) should be amended.CommentsClose CommentsPermalink
‘(B) ADMINISTRATION- The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period beginning on the date on which the final rule is published.CommentsClose CommentsPermalink
‘(4) RULEMAKING BEFORE OCTOBER 24, 2000-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Not later than 8 years after October 24, 1992, the Secretary shall initiate a rulemaking procedure and shall publish a final rule not later than 9 years and 6 months after October 24, 1992, to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended.CommentsClose CommentsPermalink
‘(B) ADMINISTRATION- The rule shall contain the amendment, if any, and provide that the amendment shall apply to products manufactured on or after the 36-month period beginning on the date on which the final rule is published.CommentsClose CommentsPermalink
‘(5) RULEMAKING FOR ADDITIONAL GENERAL SERVICE FLUORESCENT LAMPS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Not later than the end of the 24-month period beginning on the date labeling requirements under section 324(a)(2)(C) become effective, the Secretary shall--CommentsClose CommentsPermalink
‘(i) initiate a rulemaking procedure to determine whether the standards in effect for fluorescent lamps and incandescent lamps should be amended so that the standards would be applicable to additional general service fluorescent lamps; andCommentsClose CommentsPermalink
‘(ii) publish, not later than 18 months after initiating the rulemaking, a final rule including the amended standards, if any.CommentsClose CommentsPermalink
‘(B) ADMINISTRATION- The rule shall provide that the amendment shall apply to products manufactured after a date which is 36 months after the date on which the rule is published.CommentsClose CommentsPermalink
‘(6) STANDARDS FOR GENERAL SERVICE LAMPS-CommentsClose CommentsPermalink
‘(A) RULEMAKING BEFORE JANUARY 1, 2014-CommentsClose CommentsPermalink
‘(i) IN GENERAL- Not later than January 1, 2014, the Secretary shall initiate a rulemaking procedure to determine whether--CommentsClose CommentsPermalink
‘(I) standards in effect for general service lamps should be amended; andCommentsClose CommentsPermalink
‘(II) the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded lamp sales collected by the Secretary from manufacturers.CommentsClose CommentsPermalink
‘(ii) SCOPE- The rulemaking--CommentsClose CommentsPermalink
‘(I) shall not be limited to incandescent lamp technologies; andCommentsClose CommentsPermalink
‘(II) shall include consideration of a minimum standard of 45 lumens per watt for general service lamps.CommentsClose CommentsPermalink
‘(iii) AMENDED STANDARDS- If the Secretary determines that the standards in effect for general service lamps should be amended, the Secretary shall publish a final rule not later than January 1, 2017, with an effective date that is not earlier than 3 years after the date on which the final rule is published.CommentsClose CommentsPermalink
‘(iv) PHASED-IN EFFECTIVE DATES- The Secretary shall consider phased-in effective dates under this subparagraph after considering--CommentsClose CommentsPermalink
‘(I) the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, workers, and raw materials; andCommentsClose CommentsPermalink
‘(II) the time needed to work with retailers and lighting designers to revise sales and marketing strategies.CommentsClose CommentsPermalink
‘(v) BACKSTOP REQUIREMENT- If the Secretary fails to complete a rulemaking in accordance with clauses (i) through (iv) or if the final rule does not produce savings that are greater than or equal to the savings from a minimum efficacy standard of 45 lumens per watt, effective beginning January 1, 2020, the Secretary shall prohibit the manufacture of any general service lamp that does not meet a minimum efficacy standard of 45 lumens per watt.CommentsClose CommentsPermalink
‘(vi) STATE PREEMPTION- Neither section 327(c) nor any other provision of law shall preclude California or Nevada from adopting, effective beginning on or after January 1, 2018--CommentsClose CommentsPermalink
‘(I) a final rule adopted by the Secretary in accordance with clauses (i) through (iv);CommentsClose CommentsPermalink
‘(II) if a final rule described in subclause (I) has not been adopted, the backstop requirement under clause (v); orCommentsClose CommentsPermalink
‘(III) in the case of California, if a final rule described in subclause (I) has not been adopted, any California regulations relating to these covered products adopted pursuant to State statute in effect as of the date of enactment of the Energy Independence and Security Act of 2007.CommentsClose CommentsPermalink
‘(B) RULEMAKING BEFORE JANUARY 1, 2020-CommentsClose CommentsPermalink
‘(i) IN GENERAL- Not later than January 1, 2020, the Secretary shall initiate a rulemaking procedure to determine whether--CommentsClose CommentsPermalink
‘(I) standards in effect for general service lamps should be amended; andCommentsClose CommentsPermalink
‘(II) the exclusions for certain incandescent lamps should be maintained or discontinued based, in part, on excluded lamp sales data collected by the Secretary from manufacturers.CommentsClose CommentsPermalink
‘(ii) SCOPE- The rulemaking shall not be limited to incandescent lamp technologies.CommentsClose CommentsPermalink
‘(iii) AMENDED STANDARDS- If the Secretary determines that the standards in effect for general service lamps should be amended, the Secretary shall publish a final rule not later than January 1, 2022, with an effective date that is not earlier than 3 years after the date on which the final rule is published.CommentsClose CommentsPermalink
‘(iv) PHASED-IN EFFECTIVE DATES- The Secretary shall consider phased-in effective dates under this subparagraph after considering--CommentsClose CommentsPermalink
‘(I) the impact of any amendment on manufacturers, retiring and repurposing existing equipment, stranded investments, labor contracts, workers, and raw materials; andCommentsClose CommentsPermalink
‘(II) the time needed to work with retailers and lighting designers to revise sales and marketing strategies.CommentsClose CommentsPermalink
‘(7) FEDERAL ACTIONS-CommentsClose CommentsPermalink
‘(A) COMMENTS OF SECRETARY-CommentsClose CommentsPermalink
‘(i) IN GENERAL- With respect to any lamp to which standards are applicable under this subsection or any lamp specified in section 346, the Secretary shall inform any Federal entity proposing actions that would adversely impact the energy consumption or energy efficiency of the lamp of the energy conservation consequences of the action.CommentsClose CommentsPermalink
‘(ii) CONSIDERATION- The Federal entity shall carefully consider the comments of the Secretary.CommentsClose CommentsPermalink
‘(B) AMENDMENT OF STANDARDS- Notwithstanding section 325(n)(1), the Secretary shall not be prohibited from amending any standard, by rule, to permit increased energy use or to decrease the minimum required energy efficiency of any lamp to which standards are applicable under this subsection if the action is warranted as a result of other Federal action (including restrictions on materials or processes) that would have the effect of either increasing the energy use or decreasing the energy efficiency of the product.CommentsClose CommentsPermalink
‘(8) COMPLIANCE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Not later than the date on which standards established pursuant to this subsection become effective, or, with respect to high-intensity discharge lamps covered under section 346, the effective date of standards established pursuant to that section, each manufacturer of a product to which the standards are applicable shall file with the Secretary a laboratory report certifying compliance with the applicable standard for each lamp type.CommentsClose CommentsPermalink
‘(B) CONTENTS- The report shall include the lumen output and wattage consumption for each lamp type as an average of measurements taken over the preceding 12-month period.CommentsClose CommentsPermalink
‘(C) OTHER LAMP TYPES- With respect to lamp types that are not manufactured during the 12-month period preceding the date on which the standards become effective, the report shall--CommentsClose CommentsPermalink
‘(i) be filed with the Secretary not later than the date that is 12 months after the date on which manufacturing is commenced; andCommentsClose CommentsPermalink
‘(ii) include the lumen output and wattage consumption for each such lamp type as an average of measurements taken during the 12-month period.’.CommentsClose CommentsPermalink
(13) Section 325(l)(4)(A) of the Energy Policy and Conservation Act (
42 U.S.C. 6295(l)(4)(A) ) (as amended by section 321(a)(3)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1581)) is amended by striking ‘only’.CommentsClose CommentsPermalink(14) Section 327(b)(1)(B) of the Energy Policy and Conservation Act (
42 U.S.C. 6297(b)(1)(B) ) (as amended by section 321(d)(3) of the Energy Independence and Security Act of 2007 (121 Stat. 1585)) is amended--CommentsClose CommentsPermalink
(A) in clause (i), by inserting ‘and’ after the semicolon at the end;CommentsClose CommentsPermalink
(B) in clause (ii), by striking ‘; and’ and inserting a period; andCommentsClose CommentsPermalink
(C) by striking clause (iii).CommentsClose CommentsPermalink
(15) Section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1586) is amended--CommentsClose CommentsPermalink
(A) in the matter preceding paragraph (1), by striking ‘is amended’ and inserting ‘(as amended by section 306(b)) is amended’; andCommentsClose CommentsPermalink
(B) by striking paragraphs (1) and (2) and inserting the following:CommentsClose CommentsPermalink
‘(1) in paragraph (5), by striking ‘or’ after the semicolon at the end;CommentsClose CommentsPermalink
‘(2) in paragraph (6), by striking the period at the end and inserting ‘; or’; and’.CommentsClose CommentsPermalink
(16) Section 332(a) of the Energy Policy and Conservation Act (
42 U.S.C. 6302(a) ) (as amended by section 321(e) of the Energy Independence and Security Act of 2007 (121 Stat. 1586)) is amended by redesignating the second paragraph (6) as paragraph (7).CommentsClose CommentsPermalink(17) Section 321(30)(C)(ii) of the Energy Policy and Conservation Act (
42 U.S.C. 6291(30)(C)(ii) ) (as amended by section 322(a)(1)(B) of the Energy Independence and Security Act of 2007 (121 Stat. 1587)) is amended by inserting a period after ‘40 watts or higher’.CommentsClose CommentsPermalink(18) Section 322(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1588)) is amended by striking ‘6995(i)’ and inserting ‘6295(i)’.CommentsClose CommentsPermalink
(19) Section 327(c) of the Energy Policy and Conservation Act (
42 U.S.C. 6297(c) ) (as amended by sections 324(f) of the Energy Independence and Security Act of 2007 (121 Stat. 1594)) is amended--CommentsClose CommentsPermalink
(A) in paragraph (6), by striking ‘or’ after the semicolon at the end;CommentsClose CommentsPermalink
(B) in paragraph (8)(B), by striking ‘and’ after the semicolon at the end;CommentsClose CommentsPermalink
(C) in paragraph (9)--CommentsClose CommentsPermalink
(i) by striking ‘except that--’ and all that follows through ‘if the Secretary fails to issue’ and inserting ‘except that if the Secretary fails to issue’;CommentsClose CommentsPermalink
(ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively (and by moving the margins of such subparagraphs 2 ems to the left); andCommentsClose CommentsPermalink
(iii) by striking the period at the end and inserting a semicolon; andCommentsClose CommentsPermalink
(D) by adding at the end the following:CommentsClose CommentsPermalink
‘(10) is a regulation for general service lamps that conforms with Federal standards and effective dates;CommentsClose CommentsPermalink
‘(11) is an energy efficiency standard for general service lamps enacted into law by the State of Nevada prior to December 19, 2007, if the State has not adopted the Federal standards and effective dates pursuant to subsection (b)(1)(B)(ii); or’.CommentsClose CommentsPermalink
(20) Section 325(b) of the Energy Independence and Security Act of 2007 (121 Stat. 1596)) is amended by striking ‘6924(c)’ and inserting ‘6294(c)’.CommentsClose CommentsPermalink
(b) Title IV--Energy Savings in Buildings and Industry- (1) Section 401 of the Energy Independence and Security Act of 2007 (
42 U.S.C. 17061 ) is amended--CommentsClose CommentsPermalink
(A) in paragraph (2), by striking ‘484’ and inserting ‘494’; andCommentsClose CommentsPermalink
(B) in paragraph (13), by striking ‘Agency’ and inserting ‘Administration’.CommentsClose CommentsPermalink
(2) Section 422 of the Energy Conservation and Production Act (
42 U.S.C. 6872 ) (as amended by section 411(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1600)) is amended by striking 1 of the 2 periods at the end of paragraph (5).CommentsClose CommentsPermalink(3) Section 305(a)(3)(D)(i) of the Energy Conservation and Production Act (
42 U.S.C. 6834(a)(3)(D)(i) ) (as amended by section 433(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1612)) is amended--CommentsClose CommentsPermalink
(A) in subclause (I)--CommentsClose CommentsPermalink
(i) by striking ‘in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the Energy Information Agency’ and inserting ‘as measured by the calendar year 2003 Commercial Buildings Energy Consumption Survey or the calendar year 2005 Residential Energy Consumption Survey data from the Energy Information Administration’; andCommentsClose CommentsPermalink
(ii) in the table at the end, by striking ‘Fiscal Year’ and inserting ‘Calendar Year’; andCommentsClose CommentsPermalink
(B) in subclause (II)--CommentsClose CommentsPermalink
(i) by striking ‘(II) Upon petition’ and inserting the following:CommentsClose CommentsPermalink
‘(II) DOWNWARD ADJUSTMENT OF NUMERIC REQUIREMENT-CommentsClose CommentsPermalink
‘(aa) IN GENERAL- On petition’; andCommentsClose CommentsPermalink
(ii) by striking the last sentence and inserting the following:CommentsClose CommentsPermalink
‘(bb) EXCEPTIONS TO REQUIREMENT FOR CONCURRENCE OF SECRETARY-CommentsClose CommentsPermalink
‘(AA) IN GENERAL- The requirement to petition and obtain the concurrence of the Secretary under this subclause shall not apply to any Federal building with respect to which the Administrator of General Services is required to transmit a prospectus to Congress under
section 3307 of title 40, United States Code , or to any other Federal building designed, constructed, or renovated by the Administrator if the Administrator certifies, in writing, that meeting the applicable numeric requirement under subclause (I) with respect to the Federal building would be technically impracticable in light of the specific functional needs for the building.CommentsClose CommentsPermalink‘(BB) ADJUSTMENT- In the case of a building described in subitem (AA), the Administrator may adjust the applicable numeric requirement of subclause (I) downward with respect to the building.’.CommentsClose CommentsPermalink
(4) Section 436(c)(3) of the Energy Independence and Security Act of 2007 (
(5) Section 440 of the Energy Independence and Security Act of 2007 (
(6) Section 373(c) of the Energy Policy and Conservation Act (
(c) Date of Enactment- Section 1302 of the Energy Independence and Security Act of 2007 (
(d) Reference- Section 1306(c)(3) of the Energy Independence and Security Act of 2007 (
(e) Effective Date- This section and the amendments made by this section take effect as if included in the Energy Independence and Security Act of 2007 (
SEC. 162. TECHNICAL CORRECTIONS TO ENERGY POLICY ACT OF 2005.
(a) Title I--Energy Efficiency- Section 325(g)(8)(C)(ii) of the Energy Policy and Conservation Act (
(b) Effective Date- This section and the amendments made by this section take effect as if included in the Energy Policy Act of 2005 (
Subtitle H--Energy and Efficiency Centers and ResearchCommentsClose CommentsPermalink
Subtitle H--Energy and Efficiency Centers and ResearchCommentsClose CommentsPermalink
SEC. 171. ENERGY INNOVATION HUBS.
(a) Purpose- The Secretary shall carry out a program to establish Energy Innovation Hubs to enhance the Nation’s economic, environmental, and energy security by promoting commercial application of clean, indigenous energy alternatives to oil and other fossil fuels, reducing greenhouse gas emissions, and ensuring that the United States maintains a technological lead in the development and commercial application of state-of-the-art energy technologies. To achieve these purposes the program shall--CommentsClose CommentsPermalink
(1) leverage the expertise and resources of the university and private research communities, industry, venture capital, national laboratories, and other participants in energy innovation to support cross-disciplinary research and development in areas not being served by the private sector in order to develop and transfer innovative clean energy technologies into the marketplace;CommentsClose CommentsPermalink
(2) expand the knowledge base and human capital necessary to transition to a low-carbon economy; andCommentsClose CommentsPermalink
(3) promote regional economic development by cultivating clusters of clean energy technology firms, private research organizations, suppliers, and other complementary groups and businesses.CommentsClose CommentsPermalink
(b) Definitions- For purposes of this section:CommentsClose CommentsPermalink
(1) ALLOWANCE- The term ‘allowance’ means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).CommentsClose CommentsPermalink
(2) CLEAN ENERGY TECHNOLOGY- The term ‘clean energy technology’ means a technology that--CommentsClose CommentsPermalink
(A) produces energy from solar, wind, geothermal, biomass, tidal, wave, ocean, and other renewable energy resources (as such term is defined in section 610 of the Public Utility Regulatory Policies Act of 1978);CommentsClose CommentsPermalink
(B) more efficiently transmits, distributes, or stores energy;CommentsClose CommentsPermalink
(C) enhances energy efficiency for buildings and industry, including combined heat and power;CommentsClose CommentsPermalink
(D) enables the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 (
(E) produces an advanced or sustainable material with energy or energy efficiency applications;CommentsClose CommentsPermalink
(F) enhances water security through improved water management, conservation, distribution, and end use applications; orCommentsClose CommentsPermalink
(G) improves energy efficiency for transportation, including electric vehicles.CommentsClose CommentsPermalink
(3) CLUSTER- The term ‘cluster’ means a concentration of firms directly involved in the research, development, finance, and commercialization of clean energy technologies whose geographic proximity facilitates utilization and sharing of skilled human resources, infrastructure, research facilities, educational and training institutions, venture capital, and input suppliers.CommentsClose CommentsPermalink
(4) HUB- The term ‘Hub’ means an Energy Innovation Hub established in accordance with this section.CommentsClose CommentsPermalink
(5) PROJECT- The term ‘project’ means an activity with respect to which a Hub provides support under subsection (e).CommentsClose CommentsPermalink
(6) QUALIFYING ENTITY- The term ‘qualifying entity’ means each of the following:CommentsClose CommentsPermalink
(A) A research university.CommentsClose CommentsPermalink
(B) A State or Federal institution with a focus on the advancement of clean energy technologies.CommentsClose CommentsPermalink
(C) A nongovernmental organization with research or commercialization expertise in clean energy technology development.CommentsClose CommentsPermalink
(7) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
(8) TECHNOLOGY DEVELOPMENT FOCUS- The term ‘technology development focus’ means the unique technology development areas in which a Hub will specialize, and may include solar electricity, fuels from solar energy, batteries and energy storage, electricity grid systems and devices, energy efficient building systems and design, advanced materials, modeling and simulation, and other clean energy technology development areas designated by the Secretary.CommentsClose CommentsPermalink
(9) TRANSLATIONAL RESEARCH- The term ‘translational research’ means coordination of basic or applied research with technical and commercial applications to enable promising discoveries or inventions to attract investment sufficient for market penetration and diffusion.CommentsClose CommentsPermalink
(10) VINTAGE YEAR- The term ‘vintage year’ has the meaning given that term in section 700 of the Clean Air Act (as added by section 312 of this Act).CommentsClose CommentsPermalink
(c) Role of the Secretary- The Secretary shall--CommentsClose CommentsPermalink
(1) have ultimate responsibility for, and oversight of, all aspects of the program under this section;CommentsClose CommentsPermalink
(2) provide for the distribution of allowances allocated under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act) to support the establishment of 8 Hubs, each with a unique designated technology development focus, pursuant to this section;CommentsClose CommentsPermalink
(3) coordinate the innovation activities of Hubs with those occurring through other Department of Energy entities, including the National Laboratories, the Advanced Research Projects Agency--Energy, and Energy Frontier Research Collaborations, and within industry, including by annually--CommentsClose CommentsPermalink
(A) issuing guidance regarding national energy research and development priorities and strategic objectives; andCommentsClose CommentsPermalink
(B) convening a conference of staff of the Department of Energy and representatives from such other entities to share research results, program plans, and opportunities for collaboration.CommentsClose CommentsPermalink
(d) Entities Eligible for Support- A consortium shall be eligible to receive allowances to support the establishment of a Hub under this section if--CommentsClose CommentsPermalink
(1) it is composed of--CommentsClose CommentsPermalink
(A) 2 research universities with a combined annual research budget of $500,000,000; andCommentsClose CommentsPermalink
(B) 1 or more additional qualifying entities;CommentsClose CommentsPermalink
(2) its members have established a binding agreement that documents--CommentsClose CommentsPermalink
(A) the structure of the partnership agreement;CommentsClose CommentsPermalink
(B) a governance and management structure to enable cost-effective implementation of the program;CommentsClose CommentsPermalink
(C) an intellectual property management policy;CommentsClose CommentsPermalink
(D) a conflicts of interest policy consistent with subsection (e)(4);CommentsClose CommentsPermalink
(E) an accounting structure that meets the requirements of the Department of Energy and can be audited under subsection (f)(5); andCommentsClose CommentsPermalink
(F) that it has an Advisory Board consistent with subsection (e)(3);CommentsClose CommentsPermalink
(3) it receives financial contributions from States, consortium participants, or other non-Federal sources, to be used to support project awards pursuant to subsection (e);CommentsClose CommentsPermalink
(4) it is part of an existing cluster or demonstrates high potential to develop a new cluster; andCommentsClose CommentsPermalink
(5) it operates as a nonprofit organization.CommentsClose CommentsPermalink
(e) Energy Innovation Hubs-CommentsClose CommentsPermalink
(1) ROLE- Hubs receiving allowances under this section shall support translational research activities leading to commercial application of clean energy technologies, in accordance with the purposes of this section, through issuance of awards to projects managed by qualifying entities and other entities meeting the Hub’s project criteria, including national laboratories. Each such Hub shall--CommentsClose CommentsPermalink
(A) develop and publish for public review and comment proposed plans, programs, project selection criteria, and terms for individual project awards under this subsection;CommentsClose CommentsPermalink
(B) submit an annual report to the Secretary summarizing the Hub’s activities, organizational expenditures, and Board members, which shall include a certification of compliance with conflict of interest policies and a description of each project in the research portfolio;CommentsClose CommentsPermalink
(C) establish policies--CommentsClose CommentsPermalink
(i) regarding intellectual property developed as a result of Hub awards and other forms of technology support that encourage individual ingenuity and invention while speeding technology transfer and facilitating the establishment of rapid commercialization pathways;CommentsClose CommentsPermalink
(ii) to prevent resources provided to the Hub from being used to displace private sector investment otherwise likely to occur, including investment from private sector entities that are members of the consortium;CommentsClose CommentsPermalink
(iii) to facilitate the participation of private investment firms or other private entities that invest in clean energy technologies to perform due diligence on award proposals, to participate in the award review process, and to provide guidance to projects supported by the Hub; andCommentsClose CommentsPermalink
(iv) to facilitate the participation of entrepreneurs with a demonstrated history of developing and commercializing clean energy technologies;CommentsClose CommentsPermalink
(D) oversee project solicitations, review proposed projects, and select projects for awards; andCommentsClose CommentsPermalink
(E) monitor project implementation.CommentsClose CommentsPermalink
(2) DISTRIBUTION OF AWARDS BY HUBS- A Hub shall distribute awards under this subsection to support clean energy technology projects conducting translational research and related activities, provided that at least 50 percent of such support shall be provided to projects related to the Hub’s technology development focus.CommentsClose CommentsPermalink
(3) ADVISORY BOARDS-CommentsClose CommentsPermalink
(A) IN GENERAL- Each Hub shall establish an Advisory Board, the members of which shall have extensive and relevant scientific, technical, industry, financial, or research management expertise. The Advisory Board shall review the Hub’s proposed plans, programs, project selection criteria, and projects and shall ensure that projects selected for awards meet the conflict of interest policies of the Hub. Advisory Board members other than those representing consortium members shall serve for no more than 3 years. All Advisory Board members shall comply with the Hub’s conflict of interest policies and procedures.CommentsClose CommentsPermalink
(B) MEMBERS- Each Advisory Board shall consist of--CommentsClose CommentsPermalink
(i) 5 members selected by the consortium’s research universities;CommentsClose CommentsPermalink
(ii) 2 members selected by the consortium’s other qualifying entities;CommentsClose CommentsPermalink
(iii) 2 members selected at large by other Advisory Board members to represent the entrepreneur and venture capital communities; andCommentsClose CommentsPermalink
(iv) 1 member appointed by the Secretary.CommentsClose CommentsPermalink
(D) COMPENSATION- Members of an Advisory Board may receive reimbursement for travel expenses and a reasonable stipend.CommentsClose CommentsPermalink
(4) CONFLICT OF INTEREST-CommentsClose CommentsPermalink
(A) PROCEDURES- Hubs shall establish procedures to ensure that any employee or consortia designee for Hub activities who serves in a decisionmaking capacity shall--CommentsClose CommentsPermalink
(i) disclose any financial interests in, or financial relationships with, applicants for or recipients of awards under this subsection, including those of his or her spouse or minor child, unless such relationships or interests would be considered to be remote or inconsequential; andCommentsClose CommentsPermalink
(ii) recuse himself or herself from any funding decision for projects in which he or she has a personal financial interest.CommentsClose CommentsPermalink
(B) DISQUALIFICATION AND REVOCATION- The Secretary may disqualify an application or revoke allowances distributed to the Hub or awards provided under this subsection, if cognizant officials of the Hub fail to comply with procedures required under subparagraph (A).CommentsClose CommentsPermalink
(f) Distribution of Allowances to Energy Innovation Hubs-CommentsClose CommentsPermalink
(1) DISTRIBUTION OF ALLOWANCES- Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Secretary shall, in accordance with the requirements of this section, distribute to eligible consortia allowances allocated for the following vintage year under section 782(h)(1) of the Clean Air Act (as added by section 321 of this Act). Not less than 10 percent and not more than 30 percent of the allowances available for distribution in any given year shall be distributed to support any individual Hub under this section.CommentsClose CommentsPermalink
(2) SELECTION AND SCHEDULE- Allowances to support the establishment of a Hub shall be distributed to eligible consortia (as defined in subsection (d)) selected through a competitive process. Not later than 120 days after the date of enactment of this Act, the Secretary shall solicit proposals from eligible consortia to establish Hubs, which shall be submitted not later than 180 days after the date of enactment of this Act. The Secretary shall select the program consortia not later than 270 days after the date of enactment of this Act. For at least 3 awards to consortia under this section, the Secretary shall give special consideration to applications in which 1 or more of the institutions under subsection (d)(1)(A) are 1890 Land Grant Institutions (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (
(3) AMOUNT AND TERM OF AWARDS- For each Hub selected to receive an award under this subsection, the Secretary shall define a quantity of allowances that shall be distributed to such Hub each year for an initial period not to exceed 5 years. The Secretary may extend the term of such award by up to 5 additional years, and a Hub may compete to receive an increase in the quantity of allowances per year that it shall receive during any such extension. A Hub shall be eligible to compete for a new award after the expiration of the term of any award, including any extension of such term, under this subsection.CommentsClose CommentsPermalink
(4) USE OF ALLOWANCES- Allowances distributed under this section shall be used exclusively to support project awards pursuant to subsection (e)(1) and (2), provided that a Hub may use not more than 10 percent of the value of such allowances for its administrative expenses related to making such awards. Allowances distributed under this section shall not be used for construction of new buildings or facilities for Hubs, and construction of new buildings or facilities shall not be considered as part of the non-Federal share of a cost sharing agreement under this section.CommentsClose CommentsPermalink
(5) AUDIT- Each Hub shall conduct, in accordance with such requirements as the Secretary may prescribe, an annual audit to determine the extent to which allowances distributed to the Hub under this subsection, and awards under subsection (e), have been utilized in a manner consistent with this section. The auditor shall transmit a report of the results of the audit to the Secretary and to the Government Accountability Office. The Secretary shall include such report in an annual report to Congress, along with a plan to remedy any deficiencies cited in the report. The Government Accountability Office may review such audits as appropriate and shall have full access to the books, records, and personnel of the Hub to ensure that allowances distributed to the Hub under this subsection, and awards made under subsection (e), have been utilized in a manner consistent with this section.CommentsClose CommentsPermalink
(6) REVOCATION OF ALLOWANCES- The Secretary shall have authority to review awards made under this subsection and to revoke such awards if the Secretary determines that a Hub has used the award in a manner not consistent with the requirements of this section.CommentsClose CommentsPermalink
SEC. 172. ADVANCED ENERGY RESEARCH.
(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
(1) ALLOWANCE- The term ‘allowance’ means an emission allowance established under section 721 of the Clean Air Act (as added by section 311 of this Act).CommentsClose CommentsPermalink
(2) DIRECTOR- The term ‘Director’ means Director of the Advanced Research Projects Agency-Energy.CommentsClose CommentsPermalink
(b) In General- Not later than September 30 of 2011 and each calendar year thereafter through 2049, the Director shall distribute allowances allocated for the following vintage year under section 782(h)(2) of the Clean Air Act (as added by section 321 of this Act). Such allowances shall be distributed on a competitive basis to institutions of higher education, companies, research foundations, trade and industry research collaborations, or consortia of such entities, or other appropriate research and development entities to achieve the goals of the Advanced Research Projects Agency-Energy (as described in section 5012(c) of the America COMPETES Act) through targeted acceleration of--CommentsClose CommentsPermalink
(1) novel early-stage energy research with possible technology applications;CommentsClose CommentsPermalink
(2) development of techniques, processes, and technologies, and related testing and evaluation;CommentsClose CommentsPermalink
(3) development of manufacturing processes for technologies; andCommentsClose CommentsPermalink
(4) demonstration and coordination with nongovernmental entities for commercial applications of technologies and research applications.CommentsClose CommentsPermalink
(c) Responsibilities- The Director shall be responsible for assessing the success of programs and terminating programs carried out under this section that are not achieving the goals of the programs, consistent with 5012(e)(2) and (4) of the America COMPETES Act. The Director shall designate program managers whose responsibilities are consistent with 5012(f)(1)(B) of the America COMPETES Act. The Director’s reporting and coordination requirements established through 5012(g) and (h) of the America COMPETES Act shall apply to activities funded through this section.CommentsClose CommentsPermalink
(d) Supplement Not Supplant- Assistance provided under this section shall be used to supplement, and not to supplant, any other Federal resources available to carry out activities described in this section.CommentsClose CommentsPermalink
SEC. 173. BUILDING ASSESSMENT CENTERS.
(a) In General- The Secretary of Energy (in this section referred to as the ‘Secretary’) shall provide funding to institutions of higher education for Building Assessment Centers to--CommentsClose CommentsPermalink
(1) identify opportunities for optimizing energy efficiency and environmental performance in existing buildings;CommentsClose CommentsPermalink
(2) promote high-efficiency building construction techniques and materials options;CommentsClose CommentsPermalink
(3) promote applications of emerging concepts and technologies in commercial and institutional buildings;CommentsClose CommentsPermalink
(4) train engineers, architects, building scientists, and building technicians in energy-efficient design and operation;CommentsClose CommentsPermalink
(5) assist local community colleges, trade schools, registered apprenticeship programs and other accredited training programs in training building technicians;CommentsClose CommentsPermalink
(6) promote research and development for the use of alternative energy sources to supply heat and power, for buildings, particularly energy-intensive buildings; andCommentsClose CommentsPermalink
(7) coordinate with and assist State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United States.CommentsClose CommentsPermalink
(b) Coordination With Regional Centers for Energy and Environmental Knowledge and Outreach- A Building Assessment Center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174.CommentsClose CommentsPermalink
(c) Coordination and Duplication- The Secretary shall coordinate efforts under this section with other programs of the Department of Energy and other Federal agencies to avoid duplication of effort.CommentsClose CommentsPermalink
(d) Authorization of Appropriations- There are authorized to be appropriated to the Secretary to carry out this section $50,000,000 for fiscal year 2010 and each fiscal year thereafter.CommentsClose CommentsPermalink
SEC. 174. CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND OUTREACH.
(a) Regional Centers for Energy and Environmental Knowledge and Outreach-CommentsClose CommentsPermalink
(1) ESTABLISHMENT- The Secretary shall establish not more than 10 regional Centers for Energy and Environmental Knowledge and Outreach at institutions of higher education to coordinate with and advise industrial research and assessment centers, Building Assessment Centers, and Clean Energy Application Centers located in the region of such Center for Energy and Environmental Knowledge and Outreach.CommentsClose CommentsPermalink
(2) TECHNICAL ASSISTANCE PROGRAMS- Each Center for Energy and Environmental Knowledge and Outreach shall consist of at least one, new or existing, high performing, of the following:CommentsClose CommentsPermalink
(A) An industrial research and assessment center.CommentsClose CommentsPermalink
(B) A Clean Energy Application Center.CommentsClose CommentsPermalink
(C) A Building Assessment Center.CommentsClose CommentsPermalink
(3) SELECTION CRITERIA- The Secretary shall select Centers for Energy and Environmental Knowledge and Outreach through a competitive process, based on the following:CommentsClose CommentsPermalink
(A) Identification of the highest performing industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.CommentsClose CommentsPermalink
(B) The degree to which an institution of higher education maintains credibility among regional private sector organizations such as trade associations, engineering associations, and environmental organizations.CommentsClose CommentsPermalink
(C) The degree to which an institution of higher education is providing or has provided technical assistance, academic leadership, and market leadership in the energy arena in a manner that is consistent with the areas of focus of industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.CommentsClose CommentsPermalink
(D) The presence of an additional industrial research and assessment center, Clean Energy Application Center, or Building Assessment Center at the institution of higher education.CommentsClose CommentsPermalink
(4) GEOGRAPHIC DIVERSITY- In selecting Centers for Energy and Environmental Knowledge and Outreach under this subsection, the Secretary shall ensure such Centers are distributed geographically in a relatively uniform manner to ensure all regions of the Nation are represented.CommentsClose CommentsPermalink
(5) REGIONAL LEADERSHIP- Each Center for Energy and Environmental Knowledge and Outreach shall, to the extent possible, provide leadership to all other industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers located in the Center’s geographic region, as determined by the Secretary. Such leadership shall include--CommentsClose CommentsPermalink
(A) developing regional goals specific to the purview of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers programs;CommentsClose CommentsPermalink
(B) developing regionally specific technical resources; andCommentsClose CommentsPermalink
(C) outreach to interested parties in the region to inform them of the information, resources, and services available through the associated industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.CommentsClose CommentsPermalink
(6) FURTHER COORDINATION- To increase the value and capabilities of the regionally associated industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers programs, Centers for Energy and Environmental Knowledge and Outreach shall--CommentsClose CommentsPermalink
(A) coordinate with Manufacturing Extension Partnership Centers of the National Institute of Science and Technology;CommentsClose CommentsPermalink
(B) coordinate with the relevant programs in the Department of Energy, including the Building Technology Program and Industrial Technologies Program;CommentsClose CommentsPermalink
(C) increase partnerships with the National Laboratories of the Department of Energy to leverage the expertise and technologies of the National Laboratories to achieve the goals of the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers;CommentsClose CommentsPermalink
(D) work with relevant municipal, county, and State economic development entities to leverage relevant financial incentives for capital investment and other policy tools for the protection and growth of local business and industry;CommentsClose CommentsPermalink
(E) partner with local professional and private trade associations and business development interests to leverage existing knowledge of local business challenges and opportunities;CommentsClose CommentsPermalink
(F) work with energy utilities and other administrators of publicly funded energy programs to leverage existing energy efficiency and clean energy programs;CommentsClose CommentsPermalink
(G) identify opportunities for reducing greenhouse gas emissions; andCommentsClose CommentsPermalink
(H) promote sustainable business practices for those served by the industrial research and assessment centers, Clean Energy Application Centers, and Building Assessment Centers.CommentsClose CommentsPermalink
(7) WORKFORCE TRAINING-CommentsClose CommentsPermalink
(A) IN GENERAL- The Secretary shall require each Center for Energy and Environmental Knowledge and Outreach to establish or maintain an internship program for the region of such Center, designed to encourage students who perform energy assessments to continue working with a particular company, building, or facility to help implement the recommendations contained in any such assessment provided to such company, building, or facility. Each Center for Energy and Environmental Knowledge and Outreach shall act as internship coordinator to help match students to available opportunities.CommentsClose CommentsPermalink
(B) FEDERAL SHARE- The Federal share of the cost of carrying out internship programs described under subparagraph (A) shall be 50 percent.CommentsClose CommentsPermalink
(C) FUNDING- Subject to the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall use to carry out this paragraph not less than $5,000,000 for fiscal year 2010 and each fiscal year thereafter.CommentsClose CommentsPermalink
(8) SMALL BUSINESS LOANS- The Administrator of the Small Business Administration shall, to the maximum practicable, expedite consideration of applications from eligible small business concerns for loans under the Small Business Act (
(9) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink
(A) INDUSTRIAL RESEARCH AND ASSESSMENT CENTER- The term ‘industrial research and assessment center’ means a center established or maintained pursuant to section 452(e) of the Energy Independence and Security Act of 2007 (
(B) CLEAN ENERGY APPLICATION CENTER- The term ‘Clean Energy Application Center’ means a center redesignated and described section under section 375 of the Energy Policy and Conservation Act (
(C) BUILDING ASSESSMENT CENTER- The term ‘Building Assessment Center’ means an institution of higher education-based center established pursuant to section 173.CommentsClose CommentsPermalink
(D) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
(10) FUNDING- There are authorized to be appropriated to the Secretary to carry out this subsection $10,000,000 for fiscal year 2010 and each fiscal year thereafter. Subject to the availability of appropriations, of the funds made available to carry out this subsection, the Secretary shall provide to each Center for Energy and Environmental Knowledge and Outreach not less than $500,000 for fiscal year 2010 and each fiscal year thereafter.CommentsClose CommentsPermalink
(b) Integration of Other Technical Assistance Programs-CommentsClose CommentsPermalink
(1) CLEAN ENERGY APPLICATION CENTERS- Section 375 of the Energy Policy and Conservation Act (
(A) by redesignating subsection (f) as subsection (g); andCommentsClose CommentsPermalink
(B) by adding after subsection (e) the following new subsection:CommentsClose CommentsPermalink
‘(f) Coordination With Centers for Energy and Environmental Knowledge and Outreach- A Clean Energy Application Center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174 of the American Clean Energy and Security Act of 2009.’.CommentsClose CommentsPermalink
(2) INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS- Section 452(e) of the Energy Independence and Security Act of 2007 (
(A) by striking ‘The Secretary’ and all that follows through ‘shall be--’ and inserting the following:CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers, whose purposes shall be--’;CommentsClose CommentsPermalink
(B) by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively (and by moving the margins of such subparagraphs 2 ems to the right); andCommentsClose CommentsPermalink
(C) by adding at the end the following new paragraph:CommentsClose CommentsPermalink
‘(2) COORDINATION WITH CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND OUTREACH- An industrial research and assessment center may serve as a Center for Energy and Environmental Knowledge and Outreach established pursuant to section 174 of the American Clean Energy and Security Act of 2009.’.CommentsClose CommentsPermalink
(c) Additional Funding for Clean Energy Application Centers- Subsection (g) of section 375 of the Energy Policy and Conservation Act (
Subtitle I--Nuclear and Advanced TechnologiesCommentsClose CommentsPermalink
Subtitle I--Nuclear and Advanced TechnologiesCommentsClose CommentsPermalink
SEC. 181. REVISIONS TO LOAN GUARANTEE PROGRAM AUTHORITY.
(a) Definition of Conditional Commitment- Section 1701 of the Energy Policy Act of 2005 (
‘(8) CONDITIONAL COMMITMENT- The term ‘conditional commitment’ means a final term sheet negotiated between the Secretary and a project sponsor or sponsors, which term sheet shall be binding on both parties and become a final loan guarantee agreement if all conditions precedent established in the term sheet, which shall include the acquisition of all necessary permits and licenses, are satisfied.’.CommentsClose CommentsPermalink
(b) Specific Appropriation or Contribution- Section 1702 of the Energy Policy Act of 2005 (
‘(b) Specific Appropriation or Contribution-CommentsClose CommentsPermalink
‘(1) IN GENERAL- No guarantee shall be made unless--CommentsClose CommentsPermalink
‘(A) an appropriation for the cost has been made;CommentsClose CommentsPermalink
‘(B) the Secretary has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury; orCommentsClose CommentsPermalink
‘(C) a combination of appropriations or payments from the borrower has been made sufficient to cover the cost of the obligation.CommentsClose CommentsPermalink
‘(2) LIMITATION- The source of payments received from a borrower under paragraph (1)(B) shall not be a loan or other debt obligation that is made or guaranteed by the Federal Government.’.CommentsClose CommentsPermalink
(c) Fees- Section 1702(h) of the Energy Policy Act of 2005 (
‘(2) AVAILABILITY- Fees collected under this subsection shall--CommentsClose CommentsPermalink
‘(A) be deposited by the Secretary into a special fund in the Treasury to be known as the ‘Incentives For Innovative Technologies Fund’; andCommentsClose CommentsPermalink
‘(B) remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.’.CommentsClose CommentsPermalink
(d) Wage Rate Requirements- Section 1702 of the Energy Policy Act of 2005 (
‘(k) Wage Rate Requirements- No loan guarantee shall be made under this title unless the borrower has provided to the Secretary reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the guaranteed loan will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
section 3145 of title 40, United States Code .’.CommentsClose CommentsPermalink
(e) Subrogation- Section 1702(g)(2) of the Energy Policy Act of 2005 (
‘(B) SUPERIORITY OF RIGHTS- Except as provided in subparagraph (C), the rights of the Secretary, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property.CommentsClose CommentsPermalink
‘(C) TERMS AND CONDITIONS- A guarantee agreement shall include such detailed terms and conditions as the Secretary determines appropriate to--CommentsClose CommentsPermalink
‘(i) protect the financial interests of the United States in the case of default;CommentsClose CommentsPermalink
‘(ii) have available all the patents and technology necessary for any person selected, including the Secretary, to complete and operate the project;CommentsClose CommentsPermalink
‘(iii) provide for sharing the proceeds received from the sale of project assets with other creditors or control the disposition of project assets if necessary to protect the financial interests of the United States in the case of default; andCommentsClose CommentsPermalink
‘(iv) provide such lien priority in project assets as necessary to protect the financial interests of the United States in the case of a default.’.CommentsClose CommentsPermalink
SEC. 182. PURPOSE.
The purpose of sections 183 through 189 of this subtitle is to promote the domestic development and deployment of clean energy technologies required for the 21st century through the establishment of a self-sustaining Clean Energy Deployment Administration that will provide for an attractive investment environment through partnership with and support of the private capital market in order to promote access to affordable financing for accelerated and widespread deployment of--CommentsClose CommentsPermalink
(1) clean energy technologies;CommentsClose CommentsPermalink
(2) advanced or enabling energy infrastructure technologies;CommentsClose CommentsPermalink
(3) energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; andCommentsClose CommentsPermalink
(4) manufacturing technologies for any of the technologies or applications described in this section.CommentsClose CommentsPermalink
SEC. 183. DEFINITIONS.
In this subtitle:CommentsClose CommentsPermalink
(1) ADMINISTRATION- The term ‘Administration’ means the Clean Energy Deployment Administration established by section 186.CommentsClose CommentsPermalink
(2) ADVISORY COUNCIL- The term ‘Advisory Council’ means the Energy Technology Advisory Council of the Administration.CommentsClose CommentsPermalink
(3) BREAKTHROUGH TECHNOLOGY- The term ‘breakthrough technology’ means a clean energy technology that--CommentsClose CommentsPermalink
(A) presents a significant opportunity to advance the goals developed under section 185, as assessed under the methodology established by the Advisory Council; butCommentsClose CommentsPermalink
(B) has generally not been considered a commercially ready technology as a result of high perceived technology risk or other similar factors.CommentsClose CommentsPermalink
(4) CLEAN ENERGY TECHNOLOGY- The term ‘clean energy technology’ means a technology related to the production, use, transmission, storage, control, or conservation of energy--CommentsClose CommentsPermalink
(A) that will contribute to a stabilization of atmospheric greenhouse gas concentrations thorough reduction, avoidance, or sequestration of energy-related emissions and--CommentsClose CommentsPermalink
(i) reduce the need for additional energy supplies by using existing energy supplies with greater efficiency or by transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States; orCommentsClose CommentsPermalink
(ii) diversify the sources of energy supply of the United States to strengthen energy security and to increase supplies with a favorable balance of environmental effects if the entire technology system is considered; andCommentsClose CommentsPermalink
(B) for which, as determined by the Administrator, insufficient commercial lending is available at affordable rates to allow for widespread deployment.CommentsClose CommentsPermalink
(5) COST- The term ‘cost’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (
(6) DIRECT LOAN- The term ‘direct loan’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (
(7) FUND- The term ‘Fund’ means the Clean Energy Investment Fund established by section 184(a).CommentsClose CommentsPermalink
(8) GREEN BONDS- The term ‘Green Bonds’ means bonds issued pursuant to section 184.CommentsClose CommentsPermalink
(8) LOAN GUARANTEE- The term ‘loan guarantee’ has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (
(9) NATIONAL LABORATORY- The term ‘National Laboratory’ has the meaning given the term in section 2 of the Energy Policy Act of 2005 (
(10) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink
(11) STATE- The term ‘State’ means--CommentsClose CommentsPermalink
(A) a State;CommentsClose CommentsPermalink
(B) the District of Columbia;CommentsClose CommentsPermalink
(C) the Commonwealth of Puerto Rico; andCommentsClose CommentsPermalink
(D) any other territory or possession of the United States.CommentsClose CommentsPermalink
(12) TECHNOLOGY RISK- The term ‘technology risk’ means the risks during construction or operation associated with the design, development, and deployment of clean energy technologies (including the cost, schedule, performance, reliability and maintenance, and accounting for the perceived risk), from the perspective of commercial lenders, that may be increased as a result of the absence of adequate historical construction, operating, or performance data from commercial applications of the technology.CommentsClose CommentsPermalink
SEC. 184. CLEAN ENERGY INVESTMENT FUND.
(a) Establishment- There is established in the Treasury of the United States a revolving fund, to be known as the ‘Clean Energy Investment Fund’, consisting of--CommentsClose CommentsPermalink
(1) such amounts as are deposited in the Fund under this subtitle; andCommentsClose CommentsPermalink
(2) such sums as may be appropriated to supplement the Fund.CommentsClose CommentsPermalink
(b) Authorization of Appropriations- There are authorized to be appropriated to the Fund such sums as are necessary to carry out this subtitle.CommentsClose CommentsPermalink
(c) Expenditures From Fund-CommentsClose CommentsPermalink
(1) IN GENERAL- Amounts in the Fund shall be available to the Administrator of the Administration for obligation without fiscal year limitation, to remain available until expended.CommentsClose CommentsPermalink
(2) ADMINISTRATIVE EXPENSES-CommentsClose CommentsPermalink
(A) FEES- Fees collected for administrative expenses shall be available without limitation to cover applicable expenses.CommentsClose CommentsPermalink
(B) FUND- To the extent that administrative expenses are not reimbursed through fees, an amount not to exceed 1.5 percent of the amounts in the Fund as of the beginning of each fiscal year shall be available to pay the administrative expenses for the fiscal year necessary to carry out this subtitle.CommentsClose CommentsPermalink
(d) Transfers of Amounts-CommentsClose CommentsPermalink
(1) IN GENERAL- The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.CommentsClose CommentsPermalink
(2) ADJUSTMENTS- Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.CommentsClose CommentsPermalink
(3) CASH FLOWS- Cash flows associated with costs of the Fund described in section 502(5)(B) of the Federal Credit Reform Act of 1990 (
(e) Green Bonds-CommentsClose CommentsPermalink
(1) INITIAL CAPITALIZATION- The Secretary of the Treasury shall issue Green Bonds in the amount of $7,500,000,000 on the credit of the United States to acquire capital stock of the Administration. Stock certificates evidencing ownership in the Administration shall be issued by the Administration to the Secretary of the Treasury, to the extent of payments made for the capital stock of the Administration.CommentsClose CommentsPermalink
(2) DENOMINATIONS AND MATURITY- Green Bonds shall be in such forms and denominations, and shall mature within such periods, as determined by the Secretary of the Treasury.CommentsClose CommentsPermalink
(3) INTEREST- Green Bonds shall bear interest at a rate not less than the current average yield on outstanding market obligations of the United States of comparable maturity during the month preceding the issuance of the obligation as determined by the Secretary of the Treasury.CommentsClose CommentsPermalink
(4) LAWFUL INVESTMENTS- Green Bonds shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof.CommentsClose CommentsPermalink
SEC. 185. ENERGY TECHNOLOGY DEPLOYMENT GOALS.
(a) Goals- Not later than 1 year after the date of enactment of this Act, the Secretary, after consultation with the Advisory Council, shall develop and publish for review and comment in the Federal Register recommended near-, medium-, and long-term goals (including numerical performance targets at appropriate intervals to measure progress toward those goals) for the deployment of clean energy technologies through the credit support programs established by section 187 to promote--CommentsClose CommentsPermalink
(1) sufficient electric generating capacity using clean energy technologies to meet the energy needs of the United States;CommentsClose CommentsPermalink
(2) clean energy technologies in vehicles and fuels that will substantially reduce the reliance of the United States on foreign sources of energy and insulate consumers from the volatility of world energy markets;CommentsClose CommentsPermalink
(3) a domestic commercialization and manufacturing capacity that will establish the United States as a world leader in clean energy technologies across multiple sectors;CommentsClose CommentsPermalink
(4) installation of sufficient infrastructure to allow for the cost-effective deployment of clean energy technologies appropriate to each region of the United States;CommentsClose CommentsPermalink
(5) the transformation of the building stock of the United States to zero net energy consumption;CommentsClose CommentsPermalink
(6) the recovery, use, and prevention of waste energy;CommentsClose CommentsPermalink
(7) domestic manufacturing of clean energy technologies on a scale that is sufficient to achieve price parity with conventional energy sources;CommentsClose CommentsPermalink
(8) domestic production of commodities and materials (such as steel, chemicals, polymers, and cement) using clean energy technologies so that the United States will become a world leader in environmentally sustainable production of the commodities and materials;CommentsClose CommentsPermalink
(9) a robust, efficient, and interactive electricity transmission grid that will allow for the incorporation of clean energy technologies, distributed generation, and demand-response in each regional electric grid;CommentsClose CommentsPermalink
(10) sufficient availability of financial products to allow owners and users of residential, retail, commercial, and industrial buildings to make energy efficiency and distributed generation technology investments with reasonable payback periods; andCommentsClose CommentsPermalink
(11) such other goals as the Secretary, in consultation with the Advisory Council, determines to be consistent with the purpose stated in section 182.CommentsClose CommentsPermalink
(b) Revisions- The Secretary shall revise the goals established under subsection (a), from time to time as appropriate, to account for advances in technology and changes in energy policy.CommentsClose CommentsPermalink
SEC. 186. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.
(a) Establishment-CommentsClose CommentsPermalink
(1) ESTABLISHMENT OF CORPORATION- There is established a corporation to be known as the Clean Energy Deployment Administration that shall be wholly owned by the United States.CommentsClose CommentsPermalink
(2) INDEPENDENT CORPORATION- The Administration shall be an independent corporation. Neither the Administration nor any of its functions, powers, or duties shall be transferred to or consolidated with any other department, agency, or corporation of the Government unless the Congress provides otherwise.CommentsClose CommentsPermalink
(3) CHARTER- The Administration shall be chartered for 20 years from the date of enactment of this section.CommentsClose CommentsPermalink
(4) STATUS-CommentsClose CommentsPermalink
(A) INSPECTOR GENERAL- Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--CommentsClose CommentsPermalink
(i) in paragraph (1), by inserting ‘the Administrator of the Clean Energy Deployment Administration;’ after ‘Export-Import Bank;’; andCommentsClose CommentsPermalink
(ii) in paragraph (2), by inserting ‘the Clean Energy Deployment Administration,’ after ‘Export-Import Bank,’.CommentsClose CommentsPermalink
(3) OFFICES-CommentsClose CommentsPermalink
(A) PRINCIPAL OFFICE- The Administration shall--CommentsClose CommentsPermalink
(i) maintain the principal office of the Administration in the national capital region; andCommentsClose CommentsPermalink
(ii) for purposes of venue in civil actions, be considered to be a resident of the District of Columbia.CommentsClose CommentsPermalink
(B) OTHER OFFICES- The Administration may establish other offices in such other places as the Administration considers necessary or appropriate for the conduct of the business of the Administration.CommentsClose CommentsPermalink
(b) Administrator-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator of the Administration shall be--CommentsClose CommentsPermalink
(A) appointed by the President, with the advice and consent of the Senate, for a 5-year term; andCommentsClose CommentsPermalink
(B) compensated at the prevailing rate for compensation for similar positions in industry.CommentsClose CommentsPermalink
(2) DUTIES- The Administrator of the Administration shall--CommentsClose CommentsPermalink
(A) serve as the Chief Executive Officer of the Administration and Chairman of the Board;CommentsClose CommentsPermalink
(B) ensure that--CommentsClose CommentsPermalink
(i) the Administration operates in a safe and sound manner, including maintenance of adequate capital and internal controls (consistent with section 404 of the Sarbanes-Oxley Act of 2002 (
(ii) the operations and activities of the Administration foster liquid, efficient, competitive, and resilient energy and energy efficiency finance markets;CommentsClose CommentsPermalink
(iii) the Administration carries out the purpose stated in section 182 only through activities that are authorized under and consistent with sections 182 through 189; andCommentsClose CommentsPermalink
(iv) the activities of the Administration and the manner in which the Administration is operated are consistent with the public interest;CommentsClose CommentsPermalink
(C) develop policies and procedures for the Administration that will--CommentsClose CommentsPermalink
(i) promote a self-sustaining portfolio of investments that will maximize the value of investments to effectively promote clean energy technologies;CommentsClose CommentsPermalink
(ii) promote transparency and openness in Administration operations;CommentsClose CommentsPermalink
(iii) afford the Administration with sufficient flexibility to meet the purpose stated in section 182; andCommentsClose CommentsPermalink
(iv) provide for the efficient processing of applications; andCommentsClose CommentsPermalink
(D) with the concurrence of the Board, set expected loss reserves for the support provided by the Administration consistent with section 187(c).CommentsClose CommentsPermalink
(c) Board of Directors-CommentsClose CommentsPermalink
(1) IN GENERAL- The Board of Directors of the Administration shall consist of--CommentsClose CommentsPermalink
(A) the Secretary or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;CommentsClose CommentsPermalink
(B) the Secretary of the Treasury or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;CommentsClose CommentsPermalink
(C) the Secretary of the Interior or the designee of the Secretary, who shall serve as an ex-officio member of the Board of Directors;CommentsClose CommentsPermalink
(D) the Secretary of Agriculture or the designee of the Secretary, who shall serve as an ex officio member of the Board of Directors;CommentsClose CommentsPermalink
(E) the Administrator of the Administration, who shall serve as the Chairman of the Board of Directors; andCommentsClose CommentsPermalink
(F) 4 additional members who shall--CommentsClose CommentsPermalink
(i) be appointed by the President, with the advice and consent of the Senate, for staggered 5-year terms; andCommentsClose CommentsPermalink
(ii) have experience in banking, financial services, technology assessment, energy regulation, or risk management, including individuals with substantial experience in the development of energy projects, the electricity generation sector, the transportation sector, the manufacturing sector, and the energy efficiency sector.CommentsClose CommentsPermalink
(2) DUTIES- The Board of Directors shall--CommentsClose CommentsPermalink
(A) oversee the operations of the Administration and ensure industry best practices are followed in all financial transactions involving the Administration;CommentsClose CommentsPermalink
(B) consult with the Administrator of the Administration on the general policies and procedures of the Administration to ensure the interests of the taxpayers are protected;CommentsClose CommentsPermalink
(C) ensure the portfolio of investments are consistent with purpose stated in section 182 and with the long-term financial stability of the Administration;CommentsClose CommentsPermalink
(D) ensure that the operations and activities of the Administration are consistent with the development of a robust private sector that can provide commercial loans or financing products; andCommentsClose CommentsPermalink
(E) not serve on a full-time basis, except that the Board of Directors shall meet at least quarterly to review, as appropriate, applications for credit support and set policies and procedures as necessary.CommentsClose CommentsPermalink
(3) REMOVAL- An appointed member of the Board of Directors may be removed from office by the President for good cause.CommentsClose CommentsPermalink
(4) VACANCIES- An appointed seat on the Board of Directors that becomes vacant shall be filled by appointment by the President, but only for the unexpired portion of the term of the vacating member.CommentsClose CommentsPermalink
(5) COMPENSATION OF MEMBERS- An appointed member of the Board of Directors shall be compensated at the prevailing rate for compensation for similar positions in industry.CommentsClose CommentsPermalink
(d) Energy Technology Advisory Council-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administration shall have an Energy Technology Advisory Council consisting of 8 members selected by the Board of Directors of the Administration.CommentsClose CommentsPermalink
(2) QUALIFICATIONS- The members of the Advisory Council shall--CommentsClose CommentsPermalink
(A) have clean energy project development, clean energy finance, commercial, and/or relevant scientific expertise; andCommentsClose CommentsPermalink
(B) include representatives of--CommentsClose CommentsPermalink
(i) the academic community;CommentsClose CommentsPermalink
(ii) the private research community;CommentsClose CommentsPermalink
(iii) National Laboratories;CommentsClose CommentsPermalink
(iv) the technology or project development community; andCommentsClose CommentsPermalink
(v) the commercial energy financing and operations sector.CommentsClose CommentsPermalink
(3) DUTIES- The Advisory Council shall--CommentsClose CommentsPermalink
(A) develop and publish for comment in the Federal Register a methodology for assessment of clean energy technologies that will allow the Administration to evaluate projects based on the progress likely to be achieved per-dollar invested in maximizing the attributes of the definition of clean energy technology, taking into account the extent to which support for a clean energy technology is likely to accrue subsequent benefits that are attributable to a commercial scale deployment taking place earlier than that which otherwise would have occurred without the support; andCommentsClose CommentsPermalink
(B) advise on the technological approaches that should be supported by the Administration to meet the technology deployment goals established by the Secretary pursuant to section 185.CommentsClose CommentsPermalink
(4) TERM-CommentsClose CommentsPermalink
(A) IN GENERAL- Members of the Advisory Council shall have 5-year staggered terms, as determined by the Administrator of the Administration.CommentsClose CommentsPermalink
(B) REAPPOINTMENT- A member of the Advisory Council may be reappointed.CommentsClose CommentsPermalink
(5) COMPENSATION- A member of the Advisory Council, who is not otherwise compensated as a Federal employee, shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under
(e) Staff-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator of the Administration, in consultation with the Board of Directors, may--CommentsClose CommentsPermalink
(A) appoint and terminate such officers, attorneys, employees, and agents as are necessary to carry out this subtitle; andCommentsClose CommentsPermalink
(B) vest those personnel with such powers and duties as the Administrator of the Administration may determine.CommentsClose CommentsPermalink
(f) Conflicts of Interest- No director, officer, attorney, agent, or employee of the Administration shall in any manner, directly or indirectly, participate in the deliberation upon, or the determination of, any question affecting such individual’s personal interests, or the interests of any corporation, partnership, or association in which such individual is directly or indirectly personally interested.CommentsClose CommentsPermalink
(g) Sunset-CommentsClose CommentsPermalink
(1) EXPIRATION OF CHARTER- The Administration shall continue to exercise its functions until all obligations and commitments of the Administration are discharged, even after its charter has expired.CommentsClose CommentsPermalink
(2) PRIOR OBLIGATIONS- No provisions of this subsection shall be construed as preventing the Administration from--CommentsClose CommentsPermalink
(A) undertaking obligations prior to the date of the expiration of its charter which mature subsequent to such date;CommentsClose CommentsPermalink
(B) assuming, prior to the date of the expiration of its charter, liability as guarantor, endorser, or acceptor of obligations which mature subsequent to such date; orCommentsClose CommentsPermalink
(C) continuing as a corporation and exercising any of its functions subsequent to the date of the expiration of its charter for purposes of orderly liquidation, including the administration of its assets and the collection of any obligations held by the Administration.CommentsClose CommentsPermalink
SEC. 187. DIRECT SUPPORT.
(a) In General- The Administration may issue direct loans, letters of credit, and loan guarantees to deploy clean energy technologies if the Administrator of the Administration has determined that deployment of the technologies would benefit or be accelerated by the support.CommentsClose CommentsPermalink
(b) Eligibility Criteria- In carrying out this section and awarding credit support to projects, the Administrator of the Administration shall account for--CommentsClose CommentsPermalink
(1) how the technology rates based on an evaluation methodology established by the Advisory Council;CommentsClose CommentsPermalink
(2) how the project fits with the goals established under section 185; andCommentsClose CommentsPermalink
(3) the potential for the applicant to successfully complete the project.CommentsClose CommentsPermalink
(c) Risk-CommentsClose CommentsPermalink
(1) EXPECTED LOAN LOSS RESERVE- The Administrator of the Administration shall establish an expected loan loss reserve to account for estimated losses attributable to activities under this section that is consistent with the purposes of--CommentsClose CommentsPermalink
(A) developing breakthrough technologies to the point at which technology risk is largely mitigated;CommentsClose CommentsPermalink
(B) achieving widespread deployment and advancing the commercial viability of clean energy technologies; andCommentsClose CommentsPermalink
(C) advancing the goals established under section 185.CommentsClose CommentsPermalink
(2) INITIAL EXPECTED LOAN LOSS RESERVE- Until such time as the Administrator of the Administration determines sufficient data exist to establish an expected loan loss reserve that is appropriate, the Administrator of the Administration shall consider establishing an initial rate of 10 percent for the portfolio of investments under this subtitle.CommentsClose CommentsPermalink
(3) PORTFOLIO INVESTMENT APPROACH- The Administration shall--CommentsClose CommentsPermalink
(A) use a portfolio investment approach to mitigate risk and diversify investments across technologies and ensure that no particular technology is provided more than 30 percent of the financial support available;CommentsClose CommentsPermalink
(B) to the maximum extent practicable and consistent with long-term self-sufficiency, weigh the portfolio of investments in projects to advance the goals established under section 185;CommentsClose CommentsPermalink
(C) consistent with the expected loan loss reserve established under this subsection, the purpose stated in section 182, and section 186(b)(2)(B), provide the maximum practicable percentage of support to promote breakthrough technologies; andCommentsClose CommentsPermalink
(D) give the highest priority to investments that promote technologies that will achieve the maximum greenhouse gas emission reductions within a reasonable period of time per dollar invested and the earliest reductions in greenhouse gas emissions.CommentsClose CommentsPermalink
(4) LOSS RATE REVIEW-CommentsClose CommentsPermalink
(A) IN GENERAL- The Board of Directors shall review on an annual basis the loss rates of the portfolio to determine the adequacy of the reserves.CommentsClose CommentsPermalink
(B) REPORT- Not later than 90 days after the date of the initiation of the review, the Administrator of the Administration shall submit to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate, and the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives a report describing the results of the review and any recommended policy changes.CommentsClose CommentsPermalink
(5) FEDERAL COST SHARE- Direct loans, letters of credit and loan guarantees by the Administration shall not exceed an amount equal to 80 percent of the project cost of the facility that is the subject of the loan, letter of credit or loan guarantee, as estimated at the time at which the loan, letter of credit or loan guarantee is issued.CommentsClose CommentsPermalink
(d) Application Review-CommentsClose CommentsPermalink
(1) IN GENERAL- To the maximum extent practicable and consistent with sound business practices, the Administration shall seek to consolidate reviews of applications for credit support under this subtitle such that final decisions on applications can generally be issued not later than 180 days after the date of submission of a completed application.CommentsClose CommentsPermalink
(2) ENVIRONMENTAL REVIEW- In carrying out this subtitle, the Administration shall, to the maximum extent practicable--CommentsClose CommentsPermalink
(A) avoid duplicating efforts that have already been undertaken by other agencies (including State agencies acting under Federal programs); andCommentsClose CommentsPermalink
(B) with the advice of the Council on Environmental Quality and any other applicable agencies, use the administrative records of similar reviews conducted throughout the executive branch to develop the most expeditious review process practicable.CommentsClose CommentsPermalink
(e) Wage Rate Requirements-CommentsClose CommentsPermalink
(1) IN GENERAL- No credit support shall be issued under this section unless the borrower has provided to the Administrator of the Administration reasonable assurances that all laborers and mechanics employed by contractors and subcontractors in the performance of construction work financed in whole or in part by the Administration will be paid wages at rates not less than those prevailing on projects of a character similar to the contract work in the civil subdivision of the State in which the contract work is to be performed as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code.CommentsClose CommentsPermalink
(2) LABOR STANDARDS- With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
(f) Limitations- (1) The Administration shall not provide direct support as defined under this section or indirect support as defined under section 188 to an individual clean energy technology project that obtained a loan guarantee under title XVII of the Energy Policy Act of 2005.CommentsClose CommentsPermalink
(2) No direct or indirect support provided by the Administration may be used to pay any part of the cost of an obligation or a loan guarantee under Title XVII of the Energy Policy Act of 2005.CommentsClose CommentsPermalink
SEC. 188. INDIRECT SUPPORT.
(a) In General- For the purpose of enhancing the availability of private financing for clean energy technology deployment, the Administration may--CommentsClose CommentsPermalink
(1) provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable owners and users of buildings and industrial facilities to--CommentsClose CommentsPermalink
(A) significantly increase the energy efficiency of such buildings or facilities; orCommentsClose CommentsPermalink
(B) install systems that individually generate electricity from renewable energy resources and have a capacity of no more than 2 megawatts;CommentsClose CommentsPermalink
(2) facilitate financing transactions in tax equity markets and long-term purchasing of clean energy by state, local, and non-governmental not-for-profit entities, to the degree and extent that the Administration determines such financing activity is appropriate and consistent with carrying out the purposes described in Section 182 of this Act; andCommentsClose CommentsPermalink
(3) provide credit support to portfolios of taxable debt obligations originated by state, local, and private sector entities that enable the deployment of energy storage applications for electric drive vehicles, stationary applications, and electricity transmission and distribution.CommentsClose CommentsPermalink
(b) Definitions- For purposes of the section:CommentsClose CommentsPermalink
(1) CREDIT SUPPORT- The term ‘credit support’ means--CommentsClose CommentsPermalink
(A) direct loans, letters of credit, loan guarantees, and insurance products; andCommentsClose CommentsPermalink
(B) the purchase or commitment to purchase, or the sale or commitment to sell, debt instruments (including subordinated securities).CommentsClose CommentsPermalink
(2) RENEWABLE ENERGY RESOURCE- The term ‘renewable energy resource’ shall have the meaning given that term in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of this Act).CommentsClose CommentsPermalink
(c) Transparency- The Administration shall seek to foster through its credit support activities--CommentsClose CommentsPermalink
(1) the development and consistent application of standard contractual terms, transparent underwriting standards and consistent measurement and verification protocols, as applicable; andCommentsClose CommentsPermalink
(2) the creation of performance data that promotes effective underwriting and risk management to support lending markets and stimulate the development of private investment markets.CommentsClose CommentsPermalink
(d) Exempt Securities- All securities insured or guaranteed by the Administration shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to the principal or interest by the United States, be considered to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.CommentsClose CommentsPermalink
SEC. 189. FEDERAL CREDIT AUTHORITY.
(a) Payments of Liabilities-CommentsClose CommentsPermalink
(1) IN GENERAL- Any payment made to discharge liabilities arising from agreements under this subtitle shall be paid exclusively out of the Fund or the associated credit account, as appropriate.CommentsClose CommentsPermalink
(2) SECURITY- Subject to paragraph (1), the full faith and credit of the United States is pledged to the payment of all obligations entered into by the Administration pursuant to this subtitle.CommentsClose CommentsPermalink
(b) Fees-CommentsClose CommentsPermalink
(1) IN GENERAL- Consistent with achieving the purpose stated in section 182, the Administrator of the Administration shall charge fees or collect compensation generally in accordance with commercial rates.CommentsClose CommentsPermalink
(2) AVAILABILITY OF FEES- All fees collected by the Administration may be retained by the Administration and placed in the Fund and may remain available to the Administration, without further appropriation or fiscal year limitation, for use in carrying out the purpose stated in section 182.CommentsClose CommentsPermalink
(3) BREAKTHROUGH TECHNOLOGIES- The Administration shall charge the minimum amount in fees or compensation practicable for breakthrough technologies, consistent with the long-term viability of the Administration, unless the Administration first determines that a higher charge will not impede the development of the technology.CommentsClose CommentsPermalink
(4) ALTERNATIVE FEE ARRANGEMENTS- The Administration may use such alternative arrangements (such as profit participation, contingent fees, and other valuable contingent interests) as the Administration considers appropriate to compensate the Administration for the expenses of the Administration and the risk inherent in the support of the Administration.CommentsClose CommentsPermalink
(c) Cost Transfer Authority- Amounts collected by the Administration for the cost of a loan or loan guarantee shall be transferred by the Administration to the respective credit accounts.CommentsClose CommentsPermalink
SEC. 190. GENERAL PROVISIONS.
(a) Immunity From Impairment, Limitation, or Restriction-CommentsClose CommentsPermalink
(1) IN GENERAL- All rights and remedies of the Administration (including any rights and remedies of the Administration on, under, or with respect to any mortgage or any obligation secured by a mortgage) shall be immune from impairment, limitation, or restriction by or under--CommentsClose CommentsPermalink
(A) any law (other than a law enacted by Congress expressly in limitation of this paragraph) that becomes effective after the acquisition by the Administration of the subject or property on, under, or with respect to which the right or remedy arises or exists or would so arise or exist in the absence of the law; orCommentsClose CommentsPermalink
(B) any administrative or other action that becomes effective after the acquisition.CommentsClose CommentsPermalink
(2) STATE LAW- The Administrator of the Administration may conduct the business of the Administration without regard to any qualification or law of any State relating to incorporation.CommentsClose CommentsPermalink
(b) Use of Other Agencies- With the consent of a department, establishment, or instrumentality (including any field office), the Administration may--CommentsClose CommentsPermalink
(1) use and act through any department, establishment, or instrumentality; andCommentsClose CommentsPermalink
(2) use, and pay compensation for, information, services, facilities, and personnel of the department, establishment, or instrumentality.CommentsClose CommentsPermalink
(c) Financial Matters-CommentsClose CommentsPermalink
(1) INVESTMENTS- Funds of the Administration may be invested in such investments as the Board of Directors may prescribe. Earnings from such funds, other than fees collected under section 189, may be spent by the Administration only to such extent or in such amounts as are provided in advance by appropriation Acts.CommentsClose CommentsPermalink
(2) FISCAL AGENTS- Any Federal Reserve bank or any bank as to which at the time of the designation of the bank by the Administrator of the Administration there is outstanding a designation by the Secretary of the Treasury as a general or other depository of public money, may be designated by the Administrator of the Administration as a depositary or custodian or as a fiscal or other agent of the Administration.CommentsClose CommentsPermalink
(d) Periodic Reports- Not later than 1 year after commencement of operation of the Administration and at least biannually thereafter, the Administrator of the Administration shall submit to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives a report that includes a description of--CommentsClose CommentsPermalink
(1) the technologies supported by activities of the Administration and how the activities advance the purpose stated in section 182; andCommentsClose CommentsPermalink
(2) the performance of the Administration on meeting the goals established under section 185.CommentsClose CommentsPermalink
(g) Audits by the Comptroller General-CommentsClose CommentsPermalink
(1) IN GENERAL- The programs, activities, receipts, expenditures, and financial transactions of the Administration shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.CommentsClose CommentsPermalink
(2) ACCESS- The representatives of the Government Accountability Office shall--CommentsClose CommentsPermalink
(A) have access to the personnel and to all books, accounts, documents, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to, under the control of, or in use by the Administration, or any agent, representative, attorney, advisor, or consultant retained by the Administration, and necessary to facilitate the audit;CommentsClose CommentsPermalink
(B) be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians;CommentsClose CommentsPermalink
(C) be authorized to obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to the audit without cost to the Comptroller General; andCommentsClose CommentsPermalink
(D) have the right of access of the Comptroller General to such information pursuant to
(3) ASSISTANCE AND COST-CommentsClose CommentsPermalink
(A) IN GENERAL- For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to section 3709 of the Revised Statutes (
(B) REIMBURSEMENT-CommentsClose CommentsPermalink
(i) IN GENERAL- On the request of the Comptroller General, the Administration shall reimburse the Government Accountability Office for the full cost of any audit conducted by the Comptroller General under this subsection.CommentsClose CommentsPermalink
(ii) CREDITING- Such reimbursements shall--CommentsClose CommentsPermalink
(I) be credited to the appropriation account entitled ‘Salaries and Expenses, Government Accountability Office’ at the time at which the payment is received; andCommentsClose CommentsPermalink
(II) remain available until expended.CommentsClose CommentsPermalink
(h) Annual Independent Audits-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator of the Administration shall--CommentsClose CommentsPermalink
(A) have an annual independent audit made of the financial statements of the Administration by an independent public accountant in accordance with generally accepted auditing standards; andCommentsClose CommentsPermalink
(B) submit to the Secretary and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House the results of the audit.CommentsClose CommentsPermalink
(2) CONTENT- In conducting an audit under this subsection, the independent public accountant shall determine and report on whether the financial statements of the Administration--CommentsClose CommentsPermalink
(A) are presented fairly in accordance with generally accepted accounting principles; andCommentsClose CommentsPermalink
(B) comply with any disclosure requirements imposed under this subtitle.CommentsClose CommentsPermalink
(i) Financial Reports-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator of the Administration shall submit to the Secretary and to the Committee on Energy and Natural Resources and the Committee on Finance of the Senate and the Committee on Energy and Commerce and the Committee on Ways and Means of the House annual and quarterly reports of the financial condition and operations of the Administration, which shall be in such form, contain such information, and be submitted on such dates as the Secretary shall require.CommentsClose CommentsPermalink
(2) CONTENTS OF ANNUAL REPORTS- Each annual report shall include--CommentsClose CommentsPermalink
(A) financial statements prepared in accordance with generally accepted accounting principles;CommentsClose CommentsPermalink
(B) any supplemental information or alternative presentation that the Secretary may require; andCommentsClose CommentsPermalink
(C) an assessment (as of the end of the most recent fiscal year of the Administration), signed by the chief executive officer and chief accounting or financial officer of the Administration, of--CommentsClose CommentsPermalink
(i) the effectiveness of the internal control structure and procedures of the Administration; andCommentsClose CommentsPermalink
(ii) the compliance of the Administration with applicable safety and soundness laws.CommentsClose CommentsPermalink
(3) SPECIAL REPORTS- The Secretary may require the Administrator of the Administration to submit other reports on the condition (including financial condition), management, activities, or operations of the Administration, as the Secretary considers appropriate.CommentsClose CommentsPermalink
(4) ACCURACY- Each report of financial condition shall contain a declaration by the Administrator of the Administration or any other officer designated by the Board of Directors of the Administration to make the declaration, that the report is true and correct to the best of the knowledge and belief of the officer.CommentsClose CommentsPermalink
(5) AVAILABILITY OF REPORTS- Reports required under this section shall be published and made publicly available as soon as is practicable after receipt by the Secretary.CommentsClose CommentsPermalink
(j) Spending Safeguards and Reporting-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator--CommentsClose CommentsPermalink
(A) shall require any entity receiving financing support from the Administration to report quarterly, in a format specified by the Administrator, on such entity’s use of such support and its progress fulfilling the objectives for which such support was granted, and the Administrator shall make these reports available to the public;CommentsClose CommentsPermalink
(B) may establish additional reporting and information requirements for any recipient of financing support from the Administration;CommentsClose CommentsPermalink
(C) shall establish appropriate mechanisms to ensure appropriate use and compliance with all terms of any financing support from the Administration;CommentsClose CommentsPermalink
(D) shall create and maintain a fully searchable database, accessible on the Internet (or successor protocol) at no cost to the public, that contains at least--CommentsClose CommentsPermalink
(i) a list of each entity that has applied for financing support;CommentsClose CommentsPermalink
(ii) a description of each application;CommentsClose CommentsPermalink
(iii) the status of each such application;CommentsClose CommentsPermalink
(iv) the name of each entity receiving financing support;CommentsClose CommentsPermalink
(v) the purpose for which such entity is receiving such financing support;CommentsClose CommentsPermalink
(vi) each quarterly report submitted by the entity pursuant to this section; andCommentsClose CommentsPermalink
(vii) such other information sufficient to allow the public to understand and monitor the financial support provided by the Administration;CommentsClose CommentsPermalink
(E) shall make all financing transactions available for public inspection, including formal annual reviews by both a private auditor and the Comptroller General; andCommentsClose CommentsPermalink
(F) shall at all times be available to receive public comment in writing on the activities of the Administration.CommentsClose CommentsPermalink
(2) PROTECTION OF CONFIDENTIAL BUSINESS INFORMATION- To the extent necessary and appropriate, the Administrator may redact any information regarding applicants and borrowers to protect confidential business information.CommentsClose CommentsPermalink
SEC. 191. CONFORMING AMENDMENTS.
(a) Tax Exempt Status- Subsection (l) of section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following:CommentsClose CommentsPermalink
‘(4) The Clean Energy Deployment Administration established under
section 9801 of title 31, United States Code .’.CommentsClose CommentsPermalink
(b) Wholly Owned Government Corporation- Paragraph (3) of
‘(S) the Clean Energy Deployment Administration.’.CommentsClose CommentsPermalink
Subtitle J--MiscellaneousCommentsClose CommentsPermalink
Subtitle J--MiscellaneousCommentsClose CommentsPermalink
SEC. 195. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL FACILITIES.
(a) In General- The Secretary of the Interior, the Secretary of Energy, and the Secretary of the Army shall jointly update the study of the potential for increasing electric power production capability at federally owned or operated water regulation, storage, and conveyance facilities required in section 1834 of the Energy Policy Act of 2005.CommentsClose CommentsPermalink
(b) Content- The update under this section shall include identification and description in detail of each facility that is capable, with or without modification, of producing additional hydroelectric power, including estimation of the existing potential for the facility to generate hydroelectric power.CommentsClose CommentsPermalink
(c) Report- The Secretaries shall submit to the Committees on Energy and Commerce, Natural Resources, and Transportation and Infrastructure of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the findings, conclusions, and recommendations of the update of the study under this section by not later than 12 months after the date of enactment of this Act. The report shall include each of the following:CommentsClose CommentsPermalink
(1) The identifications, descriptions, and estimations referred to in subsection (b).CommentsClose CommentsPermalink
(2) A description of activities currently conducted or considered, or that could be considered, to produce additional hydroelectric power from each identified facility.CommentsClose CommentsPermalink
(3) A summary of prior actions taken by the Secretaries to produce additional hydroelectric power from each identified facility.CommentsClose CommentsPermalink
(4) The costs to install, upgrade, or modify equipment or take other actions to produce additional hydroelectric power from each identified facility, and the level of Federal power customer involvement in the determination of such costs.CommentsClose CommentsPermalink
(5) The benefits that would be achieved by such installation, upgrade, modification, or other action, including quantified estimates of any additional energy or capacity from each facility identified under subsection (b).CommentsClose CommentsPermalink
(6) A description of actions that are planned, underway, or might reasonably be considered to increase hydroelectric power production by replacing turbine runners, by performing generator upgrades or rewinds, or by construction of pumped storage facilities.CommentsClose CommentsPermalink
(7) The impact of increased hydroelectric power production on irrigation, water supply, fish, wildlife, Indian tribes, river health, water quality, navigation, recreation, fishing, and flood control.CommentsClose CommentsPermalink
(8) Any additional recommendations to increase hydroelectric power production from, and reduce costs and improve efficiency at, federally owned or operated water regulation, storage, and conveyance facilities.CommentsClose CommentsPermalink
SEC. 196. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT PROGRAM.
(a) In General- The Secretary of Energy is authorized to provide grants to organizations to conduct business competitions that provide incentives, training, and mentorship to entrepreneurs and early stage start-up companies throughout the United States to meet high priority economic, environmental, and energy security goals in areas to include energy efficiency, renewable energy, air quality, water quality and conservation, transportation, smart grid, green building, and waste management. Such competitions shall have the purpose of accelerating the development and deployment of clean technology businesses and green jobs; stimulating green economic development; providing business training and mentoring to early stage clean technology companies; and strengthening the competitiveness of United States clean technology industry in world trade markets. Priority shall be given to business competitions that are private sector led, encourage regional and interregional cooperation, and can demonstrate market-driven practices and show the creation of cost-effective green jobs through an annual publication of competition activities and directory of companies.CommentsClose CommentsPermalink
(b) Eligibility- An organization eligible for a grant under subsection (a) is--CommentsClose CommentsPermalink
(1) any organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; andCommentsClose CommentsPermalink
(2) any sponsored entity of an organization described in paragraph (1) that is operated as a nonprofit entity.CommentsClose CommentsPermalink
(c) Priority- In making grants under this section, the Secretary shall give priority to those organizations that can demonstrate broad funding support from private and other non-Federal funding sources to leverage Federal investment.CommentsClose CommentsPermalink
(d) Authorization of Appropriations- For the purpose of carrying out this section, there are authorized to be appropriated $20,000,000.CommentsClose CommentsPermalink
SEC. 197. NATIONAL BIOENERGY PARTNERSHIP.
(a) In General- The Secretary of Energy shall establish a National Bioenergy Partnership to provide coordination among programs of State governments, the Federal Government, and the private sector that support the institutional and physical infrastructure necessary to promote the deployment of sustainable biomass fuels and bioenergy technologies for the United States.CommentsClose CommentsPermalink
(b) Program- The National Bioenergy Partnership shall consist of five regions, to be administered by the CONEG Policy Research Center, the Council of Great Lakes Governors, the Southern States Energy Board, the Western Governors Association, and the Pacific Regional Biomass Energy Partnership led by the Washington State University Energy Program.CommentsClose CommentsPermalink
(c) Authorization of Appropriations- There are authorized to be appropriated for each of fiscal years 2010 through 2014 to carry out this section--CommentsClose CommentsPermalink
(1) $5,000,000, to be allocated among the 5 regions described in subsection (b) on the basis of the number of States in each region, for distribution among the member States of that region based on procedures developed by the member States of the region; andCommentsClose CommentsPermalink
(2) $2,500,000, to be allocated equally among the 5 regions described in subsection (b) for region-wide activities, including technical assistance and regional studies and coordination.CommentsClose CommentsPermalink
SEC. 198. OFFICE OF CONSUMER ADVOCACY.
Section 319 of the Federal Power Act is amended to read as follows:CommentsClose CommentsPermalink
‘SEC. 319. OFFICE OF CONSUMER ADVOCACY.
‘(a) Office-CommentsClose CommentsPermalink
‘(1) ESTABLISHMENT- There is established within the Commission an Office of Consumer Advocacy to serve as an advocate for the public interest. The Office of Administrative Litigation within the Commission shall be incorporated into the Office of Consumer Advocacy.CommentsClose CommentsPermalink
‘(2) DIRECTOR- The Office shall be headed by a Director to be appointed by the President by and with the advice and consent of the Senate from among individuals who are licensed attorneys admitted to the Bar of any State or of the District of Columbia and who have experience in public utility proceedings.CommentsClose CommentsPermalink
‘(3) DUTIES- The Office may--CommentsClose CommentsPermalink
‘(A) represent the interests of energy customers--CommentsClose CommentsPermalink
‘(i) on matters before the Commission concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission;CommentsClose CommentsPermalink
‘(ii) as amicus curiae, in the review in the courts of the United States of rulings by the Commission in such matters; andCommentsClose CommentsPermalink
‘(iii) as amicus, in hearings and proceedings in other Federal regulatory agencies and commissions related to such matters;CommentsClose CommentsPermalink
‘(B) monitor and review energy customer complaints and grievances on matters concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission;CommentsClose CommentsPermalink
‘(C) investigate independently, or within the context of formal proceedings, the services provided by, the rates charged by, and the valuation of the properties of, public utilities and natural gas companies under the jurisdiction of the Commission;CommentsClose CommentsPermalink
‘(D) develop means, such as public dissemination of information, consultative services, and technical assistance, to ensure, to the maximum extent practicable, that the interests of energy consumers are adequately represented in the course of any hearing or proceeding described in subparagraph (A);CommentsClose CommentsPermalink
‘(E) collect data concerning rates or service of public utilities and natural gas companies under the jurisdiction of the Commission; andCommentsClose CommentsPermalink
‘(F) prepare and issue reports and recommendations.CommentsClose CommentsPermalink
‘(4) COMPENSATION AND POWERS- The Director shall be compensated at Level IV of the Executive Schedule. The Director may--CommentsClose CommentsPermalink
‘(A) employ not more than 25 full-time professional employees at appropriate levels in the GS Scale and such additional support personnel as required; andCommentsClose CommentsPermalink
‘(B) procure temporary and intermittent services as needed.CommentsClose CommentsPermalink
‘(5) INFORMATION FROM OTHER FEDERAL AGENCIES- The Director may request, from any department, agency, or instrumentality of the United States such information as he deems necessary to carry out his functions under this section. Upon such request, the head of the department, agency, or instrumentality concerned shall, to the extent practicable and authorized by law, provide such information to the Office.CommentsClose CommentsPermalink
‘(b) Consumer Advocacy Advisory Committee-CommentsClose CommentsPermalink
‘(1) ESTABLISHMENT- The Director shall establish an advisory committee to be known as Consumer Advocacy Advisory Committee (in this section referred to as the ‘Advisory Committee’) to review rates, services, and disputes and to make recommendations to the Director.CommentsClose CommentsPermalink
‘(2) COMPOSITION- The Director shall appoint 5 members to the Advisory Committee including--CommentsClose CommentsPermalink
‘(A) 2 individuals representing State utility consumer advocates; andCommentsClose CommentsPermalink
‘(B) 1 individual, from a nongovernmental organization representing consumers.CommentsClose CommentsPermalink
‘(3) MEETINGS- The Advisory Committee shall meet at such frequency as may be required to carry out its duties.CommentsClose CommentsPermalink
‘(4) REPORTS- The Director shall provide for the publication of recommendations of the Advisory Committee on the public website established for the Office.CommentsClose CommentsPermalink
‘(5) DURATION- Notwithstanding any other provision of law, the Advisory Committee shall continue in operation during the period for which the Office exists.CommentsClose CommentsPermalink
‘(c) Definitions-CommentsClose CommentsPermalink
‘(1) ENERGY CUSTOMER- The term ‘energy customer’ means a residential customer or a small commercial customer that receives products or services directly or indirectly from a public utility or natural gas company under the jurisdiction of the Commission.CommentsClose CommentsPermalink
‘(2) NATURAL GAS COMPANY- The term ‘natural gas company’ has the meaning given the term in section 2 of the Natural Gas Act (
15 U.S.C. 717a ), as modified by section 601(a) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a) ).CommentsClose CommentsPermalink‘(3) OFFICE- The term ‘Office’ means the Office of Consumer Advocacy established under this section.CommentsClose CommentsPermalink
‘(4) PUBLIC UTILITY- The term ‘public utility’ has the meaning given the term in section 201(e) of this Act.CommentsClose CommentsPermalink
‘(5) SMALL COMMERCIAL CUSTOMER- The term ‘small commercial customer’ means a commercial customer that has a peak demand of not more than 1,000 kilowatts per hour.CommentsClose CommentsPermalink
‘(d) Authorization of Appropriations- There are authorized to be appropriated such sums as necessary to carry out this section.CommentsClose CommentsPermalink
‘(e) Savings Clause- Nothing in this section affects the rights or obligations of any State utility consumer advocate.’.CommentsClose CommentsPermalink
TITLE II--ENERGY EFFICIENCYCommentsClose CommentsPermalink
TITLE II--ENERGY EFFICIENCYCommentsClose CommentsPermalink
Subtitle A--Building Energy Efficiency ProgramsCommentsClose CommentsPermalink
Subtitle A--Building Energy Efficiency ProgramsCommentsClose CommentsPermalink
SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.
Section 304 of the Energy Conservation and Production Act (
‘SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING CODES.
‘(a) Energy Efficiency Targets-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Except as provided in paragraph (2) or (3), the national building code energy efficiency target for the national average percentage improvement of a building’s energy performance when built to a code meeting the target shall be--CommentsClose CommentsPermalink
‘(A) effective on the date of enactment of the American Clean Energy and Security Act of 2009, 30 percent reduction in energy use relative to a comparable building constructed in compliance with the baseline code;CommentsClose CommentsPermalink
‘(B) effective January 1, 2014, for residential buildings, and January 1, 2015, for commercial buildings, 50 percent reduction in energy use relative to the baseline code; andCommentsClose CommentsPermalink
‘(C) effective January 1, 2017, for residential buildings, and January 1, 2018, for commercial buildings, and every 3 years thereafter, respectively, through January 1, 2029, and January 1, 2030, 5 percent additional reduction in energy use relative to the baseline code.CommentsClose CommentsPermalink
‘(2) CONSENSUS-BASED CODES- If on any effective date specified in paragraph (1)(A), (B), or (C) a successor code to the baseline codes provides for greater reduction in energy use than is required under paragraph (1), the overall percentage reduction in energy use provided by that successor code shall be the national building code energy efficiency target.CommentsClose CommentsPermalink
‘(3) TARGETS ESTABLISHED BY SECRETARY- The Secretary may by rule establish a national building code energy efficiency target for residential or commercial buildings achieving greater reductions in energy use than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such greater reductions in energy use can be achieved with a code that is life cycle cost-justified and technically feasible. The Secretary may by rule establish a national building code energy efficiency target for residential or commercial buildings achieving a reduction in energy use that is greater than zero but less than the targets prescribed in paragraph (1) or (2) if the Secretary determines that such lesser target is the maximum reduction in energy use that can be achieved through a code that is life cycle cost-justified and technically feasible.CommentsClose CommentsPermalink
‘(4) ADDITIONAL REDUCTIONS IN ENERGY USE- Effective on January 1, 2033, and once every 3 years thereafter, the Secretary shall determine, after notice and opportunity for comment, whether further energy efficiency building code improvements for residential or commercial buildings, respectively, are life cycle cost-justified and technically feasible, and shall establish updated national building code energy efficiency targets that meet such criteria.CommentsClose CommentsPermalink
‘(5) ZERO-NET-ENERGY BUILDINGS- In setting targets under this subsection, the Secretary shall consider ways to support the deployment of distributed renewable energy technology, and shall seek to achieve the goal of zero-net-energy commercial buildings established in section 422 of the Energy Independence and Security Act of 2007 (
42 U.S.C. 17082 ).CommentsClose CommentsPermalink‘(6) BASELINE CODE- For purposes of this section, the term ‘baseline code’ means--CommentsClose CommentsPermalink
‘(A) for residential buildings, the 2006 International Energy Conservation Code (IECC) published by the International Code Council (ICC); andCommentsClose CommentsPermalink
‘(B) for commercial buildings, the code published in ASHRAE Standard 90.1-2004.CommentsClose CommentsPermalink
‘(7) CONSULTATION- In establishing the targets required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.CommentsClose CommentsPermalink
‘(b) National Energy Efficiency Building Codes-CommentsClose CommentsPermalink
‘(1) REQUIREMENT-CommentsClose CommentsPermalink
‘(A) IN GENERAL- There shall be established national energy efficiency building codes under this subsection, for residential and commercial buildings, sufficient to meet each of the national building code energy efficiency targets established under subsection (a), not later than the date that is one year after the deadline for establishment of each such target, except that the national energy efficiency building code established to meet the target described in subsection (a)(1)(A) shall be established by not later than 15 months after the effective date of that target.CommentsClose CommentsPermalink
‘(B) EXISTING CODE- If the Secretary finds prior to the date provided in subparagraph (A) for establishing a national code for any target that one or more energy efficiency building codes published by a recognized developer of national energy codes and standards meet or exceed the established target, the Secretary shall select the code that meets the target with the highest efficiency in the most cost-effective manner, and such code shall be the national energy efficiency building code.CommentsClose CommentsPermalink
‘(C) REQUIREMENT TO ESTABLISH CODE- If the Secretary does not make a finding under subparagraph (B), the national energy efficiency building code shall be established by rule by the Secretary under paragraph (2).CommentsClose CommentsPermalink
‘(2) ESTABLISHMENT BY SECRETARY-CommentsClose CommentsPermalink
‘(A) PROCEDURE- In order to establish a national energy efficiency building code as required under paragraph (1)(C), the Secretary shall--CommentsClose CommentsPermalink
‘(i) not later than six months prior to the effective date for each target, review existing and proposed codes published or under review by recognized developers of national energy codes and standards;CommentsClose CommentsPermalink
‘(ii) determine the percentage of energy efficiency improvements that are or would be achieved in such published or proposed code versions relative to the target;CommentsClose CommentsPermalink
‘(iii) propose improvements to such published or proposed code versions sufficient to meet or exceed the target; andCommentsClose CommentsPermalink
‘(iv) unless a finding is made under paragraph (1)(B) with respect to a code published by a recognized developer of national energy codes and standards, adopt a code that meets or exceeds the relevant national building code energy efficiency target by not later than one year after the effective date of each such target, and by not later than 15 months after the target is established under subsection (a)(1)(A).CommentsClose CommentsPermalink
‘(B) CALCULATIONS- Each national energy efficiency building code established by the Secretary under this paragraph shall be set at the maximum level the Secretary determines is life cycle cost-justified and technically feasible, in accordance with the following:CommentsClose CommentsPermalink
‘(i) SAVINGS CALCULATIONS- Calculations of energy savings shall take into account the typical lifetimes of different products, measures, and system configurations.CommentsClose CommentsPermalink
‘(ii) COST-EFFECTIVENESS CALCULATIONS- Calculations of life cycle cost-effectiveness shall be based on life cycle cost methods and procedures under section 544 of the National Energy Conservation Policy Act (
42 U.S.C. 8254 ), but shall incorporate to the extent feasible externalities such as impacts on climate change and on peak energy demand that are not already incorporated in assumed energy costs.CommentsClose CommentsPermalink‘(C) CONSIDERATIONS- In developing a national energy efficiency building code under this paragraph, the Secretary shall consider--CommentsClose CommentsPermalink
‘(i) for residential national energy efficiency building codes--CommentsClose CommentsPermalink
‘(I) residential building standards published or proposed by ASHRAE;CommentsClose CommentsPermalink
‘(II) building codes published or proposed by the International Code Council (ICC);CommentsClose CommentsPermalink
‘(III) data from the Residential Energy Services Network (RESNET) on compliance measures utilized by consumers to qualify for the residential energy efficiency tax credits established under the Energy Policy Act of 2005;CommentsClose CommentsPermalink
‘(IV) data and information from the Department of Energy’s Building America Program;CommentsClose CommentsPermalink
‘(V) data and information from the Energy Star New Homes program;CommentsClose CommentsPermalink
‘(VI) data and information from the New Building Institute and similar organizations; andCommentsClose CommentsPermalink
‘(VII) standards for practices and materials to achieve cool roofs in residential buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs, without reduction of otherwise applicable ceiling insulation standards; andCommentsClose CommentsPermalink
‘(ii) for commercial national energy efficiency building codes--CommentsClose CommentsPermalink
‘(I) commercial building standards proposed by ASHRAE;CommentsClose CommentsPermalink
‘(II) building codes proposed by the International Code Council (ICC);CommentsClose CommentsPermalink
‘(III) the Core Performance Criteria published by the New Buildings Institute;CommentsClose CommentsPermalink
‘(IV) data and information developed by the Director of the Commercial High-Performance Green Building Office of the Department of Energy and any public-private partnerships established under that Office;CommentsClose CommentsPermalink
‘(V) data and information from the Energy Star for Buildings program;CommentsClose CommentsPermalink
‘(VI) data and information from the New Building Institute, RESNET, and similar organizations; andCommentsClose CommentsPermalink
‘(VII) standards for practices and materials to achieve cool roofs in commercial buildings, taking into consideration reduced air conditioning energy use as a function of cool roofs, the potential reduction in global warming from increased solar reflectance from buildings, and cool roofs criteria in State and local building codes and in national and local voluntary programs, without reduction of otherwise applicable ceiling insulation standards.CommentsClose CommentsPermalink
‘(D) CONSULTATION- In establishing any national energy efficiency building code required by this section, the Secretary shall consult with the Director of the National Institute of Standards and Technology.CommentsClose CommentsPermalink
‘(3) CONSENSUS STANDARD ASSISTANCE- (A) To support the development of consensus standards that may provide the basis for national energy efficiency building codes, minimize duplication of effort, encourage progress through consensus, and facilitate the development of greater building efficiency, the Secretary shall provide assistance to recognized developers of national energy codes and standards to develop, and where the relevant code has been adopted as the national code, disseminate consensus based energy efficiency building codes as provided in this paragraph.CommentsClose CommentsPermalink
‘(B) Upon a finding by the Secretary that a code developed by such a developer meets a target established under subsection (a), the Secretary shall--CommentsClose CommentsPermalink
‘(i) send notice of the Secretary’s finding to all duly authorized or appointed State, tribal, and local code agencies; andCommentsClose CommentsPermalink
‘(ii) provide sufficient support to such a developer to make the code available on the Internet, or to accomplish distribution of such code to all such State, tribal, and local code agencies at no cost to the State, tribal, and local code agencies.CommentsClose CommentsPermalink
‘(C) The Secretary may contract with such a developer and with other organizations with expertise on codes to provide training for State, tribal, and local code officials and building inspectors in the implementation and enforcement of such code.CommentsClose CommentsPermalink
‘(D) The Secretary may provide grants and other support to such a developer to--CommentsClose CommentsPermalink
‘(i) develop appropriate refinements to such code; andCommentsClose CommentsPermalink
‘(ii) support analysis of options for improvements in the code to meet the next scheduled target.CommentsClose CommentsPermalink
‘(4) CODE DEVELOPED BY SECRETARY- If the Secretary establishes a national energy efficiency building code under paragraph (2), the Secretary shall--CommentsClose CommentsPermalink
‘(A) to the extent that such code is based on a prior code developed by a recognized developer of national energy codes and standards, negotiate and provide appropriate compensation to such developer for the use of the code materials that remain in the code established by the Secretary; andCommentsClose CommentsPermalink
‘(B) disseminate the national energy efficiency building codes to State, tribal, and local code officials, and support training and provide guidance and technical assistance to such officials as appropriate.CommentsClose CommentsPermalink
‘(c) State Adoption of Energy Efficiency Building Codes-CommentsClose CommentsPermalink
‘(1) REQUIREMENT- Not later than 1 year after a national energy efficiency building code for residential or commercial buildings is established or revised under subsection (b), each State--CommentsClose CommentsPermalink
‘(A) shall--CommentsClose CommentsPermalink
‘(i) review and update the provisions of its building code regarding energy efficiency to meet or exceed the target met in the new national energy efficiency building code, to achieve equivalent or greater energy savings;CommentsClose CommentsPermalink
‘(ii) document, where local governments establish building codes, that local governments representing not less than 80 percent of the State’s urban population have adopted the new national code, or have adopted local codes that meet or exceed the target met in the new national code to achieve equivalent or greater energy savings; orCommentsClose CommentsPermalink
‘(iii) adopt the new national code; andCommentsClose CommentsPermalink
‘(B) shall provide a certification to the Secretary demonstrating that energy efficiency building code provisions that apply pursuant to subparagraph (A) in that State meet or exceed the target met by the new national code, to achieve equivalent or greater energy savings.CommentsClose CommentsPermalink
‘(2) CONFIRMATION-CommentsClose CommentsPermalink
‘(A) REQUIREMENT- Not later than 90 days after a State certification is provided under paragraph (1)(B), the Secretary shall determine whether the State’s energy efficiency building code provisions meet the requirements of this subsection.CommentsClose CommentsPermalink
‘(B) ACCEPTANCE BY SECRETARY- If the Secretary determines under subparagraph (A) that the State’s energy efficiency building code or codes meet the requirements of this subsection, the Secretary shall accept the certification.CommentsClose CommentsPermalink
‘(C) DEFICIENCY NOTICE- If the Secretary determines under subparagraph (A) that the State’s building code or codes do not meet the requirements of this subsection, the Secretary shall identify the deficiency in meeting the national building code energy efficiency target, and, to the extent possible, indicate areas where further improvement in the State’s code provisions would allow the deficiency to be eliminated.CommentsClose CommentsPermalink
‘(D) REVISION OF CODE AND RECERTIFICATION- A State may revise its code or codes and submit a recertification under paragraph (1)(B) to the Secretary at any time.CommentsClose CommentsPermalink
‘(3) COMPLIANT CODE- For the purposes of meeting the target described in subsection (a)(1)(A) for residential buildings, a State that adopts the code represented in California’s Title 24-2009 by the date 27 months after the date of enactment of the American Clean Energy and Security Act of 2009 shall be considered to have met the requirements of this subsection for the applicable period.CommentsClose CommentsPermalink
‘(d) Application of National Code to State and Local Jurisdictions-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Upon the expiration of 18 months after a national energy efficiency building code is established under subsection (b), in any jurisdiction where the State has not had a certification relating to that code accepted by the Secretary under subsection (c)(2)(B), and the local government has not had a certification relating to that code accepted by the Secretary under subsection (e)(5), the national energy efficiency building code shall become the applicable energy efficiency building code for such jurisdiction.CommentsClose CommentsPermalink
‘(2) CONFLICTS- In the event of a conflict between a provision of the national energy efficiency building code and a provision of other applicable energy codes, the national energy efficiency building code shall apply. If there is a conflict between a provision of the national energy efficiency building code and a provision of any applicable fire code, life safety code, egress code, or accessibility code, the Secretary shall take appropriate actions to resolve such conflict in a manner that does not compromise the objectives of such codes.CommentsClose CommentsPermalink
‘(3) STATE LEGISLATIVE ADOPTION- In a State in which the relevant building energy code is adopted legislatively, the deadline in paragraph (1) shall not be earlier than 1 year after the first day that the legislature meets following establishment of a national energy efficiency building code.CommentsClose CommentsPermalink
‘(4) NOTICE OF INTENT TO ENFORCE- A State or locality that enforces building codes may assume responsibility for enforcing the national energy efficiency building code by notifying the Secretary to that effect not later than three months after the date established under paragraph (1).CommentsClose CommentsPermalink
‘(5) VIOLATIONS- Violations of this section shall be defined as follows:CommentsClose CommentsPermalink
‘(A) If the building is subject to the requirements of a State energy efficiency building code with respect to which a certification has been accepted by the Secretary under subsection (c)(2)(B) or a local energy efficiency building code with respect to which a certification has been accepted by the Secretary pursuant to subsection (e)(5), or the requirements of the national energy efficiency building code in a State where the State or locality has notified the Secretary of its intent to enforce the provisions of the national energy efficiency building code, a violation shall be determined pursuant to the relevant provisions of State or local law.CommentsClose CommentsPermalink
‘(B) If the building is subject to the requirements of a national energy efficiency building code made applicable under paragraph (1) of this subsection, except as provided in subparagraph (A), a violation shall be defined by the Secretary pursuant to subsection (g).CommentsClose CommentsPermalink
‘(e) State Enforcement of Energy Efficiency Building Codes-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Each State, or where applicable under State law each local government, shall implement and enforce applicable State or local codes with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B) or paragraph (5) of this subsection, or the national energy efficiency building codes, as provided in this subsection.CommentsClose CommentsPermalink
‘(2) STATE CERTIFICATION- Not later than 2 years after the date of a certification under subsection (c)(1) or the application of a national energy efficiency building code under subsection (d)(1), each State shall certify that it has--CommentsClose CommentsPermalink
‘(A) achieved compliance with--CommentsClose CommentsPermalink
‘(i) State codes, or, as provided under State law, local codes, with respect to which a certification was accepted by the Secretary under subsection (c)(2)(B); orCommentsClose CommentsPermalink
‘(ii) the national energy efficiency building code, as applicable; orCommentsClose CommentsPermalink
‘(B) for any certification submitted within 7 years after the date of enactment of the American Clean Energy and Security Act of 2009, made significant progress toward achieving such compliance.CommentsClose CommentsPermalink
‘(3) ACHIEVING COMPLIANCE- A State shall be considered to achieve compliance with a code described in paragraph (2)(A) if at least 90 percent of new and substantially renovated building space in that State in the preceding year upon inspection meets the requirements of the code. A certification under paragraph (2) shall include documentation of the rate of compliance based on--CommentsClose CommentsPermalink
‘(A) independent inspections of a random sample of the new and substantially renovated buildings covered by the code in the preceding year; orCommentsClose CommentsPermalink
‘(B) an alternative method that yields an accurate measure of compliance as determined by the Secretary.CommentsClose CommentsPermalink
‘(4) SIGNIFICANT PROGRESS- A State shall be considered to have made significant progress toward achieving compliance with a code described in paragraph (2)(A) if--CommentsClose CommentsPermalink
‘(A) the State has developed a plan, including for hiring enforcement staff, providing training, providing manuals and checklists, and instituting enforcement programs, designed to achieve full compliance within 5 years after the date of the adoption of the code;CommentsClose CommentsPermalink
‘(B) the State is taking significant, timely, and measurable action to implement that plan;CommentsClose CommentsPermalink
‘(C) the State has not reduced its expenditures for code enforcement; andCommentsClose CommentsPermalink
‘(D) at least 50 percent of new and substantially renovated building space in the State in the preceding year upon inspection meets the requirements of the code.CommentsClose CommentsPermalink
‘(5) Secretary’S DETERMINATION- Not later than 90 days after a State certification under paragraph (2), the Secretary shall determine whether the State has demonstrated that it has complied with the requirements of this subsection, including accurate measurement of compliance, or that it has made significant progress toward compliance. If such determination is positive, the Secretary shall accept the certification. If the determination is negative, the Secretary shall identify the areas of deficiency.CommentsClose CommentsPermalink
‘(6) OUT OF COMPLIANCE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Any State for which the Secretary has not accepted a certification under paragraph (5) by the dates specified in paragraph (2) is out of compliance with this section.CommentsClose CommentsPermalink
‘(B) LOCAL COMPLIANCE- In any State that is out of compliance with this section as provided in subparagraph (A), a local government may be in compliance with this section by meeting all certification requirements of this subsection.CommentsClose CommentsPermalink
‘(C) NONCOMPLIANCE- Any State that is not in compliance with this section, as provided in subparagraph (A), shall, until the State regains such compliance, be ineligible to receive--CommentsClose CommentsPermalink
‘(i) emission allowances pursuant to subsection (h)(1);CommentsClose CommentsPermalink
‘(ii) Federal funding in excess of that State’s share (calculated according to the allocation formula in section 363 of the Energy Policy and Conservation Act (
42 U.S.C. 6323 )) of $125,000,000 each year; andCommentsClose CommentsPermalink‘(iii) for--CommentsClose CommentsPermalink
‘(I) the first year for which the State is out of compliance, 25 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;CommentsClose CommentsPermalink
‘(II) the second year for which the State is out of compliance, 50 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009;CommentsClose CommentsPermalink
‘(III) the third year for which the State is out of compliance, 75 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009; andCommentsClose CommentsPermalink
‘(IV) the fourth and subsequent years for which the State is out of compliance, 100 percent of any additional funding or other items of monetary value otherwise provided under the American Clean Energy and Security Act of 2009.CommentsClose CommentsPermalink
‘(f) Federal Enforcement and Training- Where a State fails and local governments in that State also fail to enforce the applicable State or national energy efficiency building codes, the Secretary shall enforce such codes, as follows:CommentsClose CommentsPermalink
‘(1) The Secretary shall establish, by rule, within 2 years after the date of enactment of the American Clean Energy and Security Act of 2009, an energy efficiency building code enforcement capability.CommentsClose CommentsPermalink
‘(2) Such enforcement capability shall be designed to achieve 90 percent compliance with such code in any State within 1 year after the date of the Secretary’s determination that such State is out of compliance with this section.CommentsClose CommentsPermalink
‘(3) The Secretary may set and collect reasonable inspection fees to cover the costs of inspections required for such enforcement. Revenue from fees collected shall be available to the Secretary to carry out the requirements of this section upon appropriation.CommentsClose CommentsPermalink
‘(4) In any jurisdiction to which this subsection applies, the Secretary shall coordinate enforcement of the national energy efficiency building code with State and local code enforcement of other building codes.CommentsClose CommentsPermalink
‘(5) In any jurisdiction to which this subsection applies, the Secretary shall enhance compliance by conducting training and education of builders and other professionals in the jurisdiction concerning the national energy efficiency building code.CommentsClose CommentsPermalink
‘(6) The Secretary shall coordinate with professional organizations representing code officials, architects, engineers, builders, and other experts to develop training curricula concerning the national energy efficiency building code.CommentsClose CommentsPermalink
‘(7) If the Secretary enforces such codes under this subsection, the Secretary may, as appropriate, redefine violations of such codes.CommentsClose CommentsPermalink
‘(g) Enforcement Procedures- The Secretary shall propose and, not later than three years after the date of enactment of the American Clean Energy and Security Act of 2009, shall define by rule violations of the energy efficiency building codes to be enforced by the Secretary pursuant to this section, and the penalties that shall apply to violators, in any jurisdiction in which the national energy efficiency building code has been made applicable under subsection (d)(1). To the extent that the Secretary determines that the authority to adopt and impose such violations and penalties by rule requires further statutory authority, the Secretary shall report such determination to Congress as soon as such determination is made, but not later than one year after the enactment of the American Clean Energy and Security Act of 2009.CommentsClose CommentsPermalink
‘(h) Federal Support-CommentsClose CommentsPermalink
‘(1) ALLOWANCE ALLOCATION FOR STATE COMPLIANCE- For each vintage year from 2012 through 2050, the Administrator shall distribute allowances allocated pursuant to section 782(g)(2) of the Clean Air Act to the SEED Account for each State. Such allowances shall be distributed according to a formula established by the Secretary as follows:CommentsClose CommentsPermalink
‘(A) One-fifth in an equal amount to each of the 50 States and United States territories.CommentsClose CommentsPermalink
‘(B) Two-fifths as a function of the relative energy use in all buildings in each State in the most recent year for which data is available.CommentsClose CommentsPermalink
‘(C) Two-fifths based on the number of building construction starts recorded in each State, the number of new building permits applied for in each State, or other relevant available data indicating building activity in each State, in the judgment of the Secretary, for the year prior to the year of the distribution.CommentsClose CommentsPermalink
‘(2) ALLOWANCE ALLOCATION TO LOCAL GOVERNMENTS- In the instance that the Secretary certifies that one or more local governments are in compliance with this section pursuant to subsection (e)(6)(B), the Administrator shall provide to each such local government the portion of the emission allowances that would have been provided to that State as a function of the population of that locality as a proportion of the population of that State as a whole.CommentsClose CommentsPermalink
‘(3) UNALLOCATED ALLOWANCES- To the extent that allowances are not provided to State or local governments for lack of certification in any year, those allowances shall be added to the amount provided to those States and local governments that are certified as eligible in that year.CommentsClose CommentsPermalink
‘(4) USE OF ALLOWANCES- Each State or each local government shall use such emission allowances as it receives pursuant to this section exclusively for the purposes of this section, including covering a reasonable portion of the costs of the development, adoption, implementation, and enforcement of a State or local energy efficiency building code that meets the national building code energy efficiency targets, or the national energy efficiency building code. In a State where local governments provide substantially all building code enforcement, a minimum of 50 percent of the allowance value received pursuant to this section shall be distributed to local governments as a function of the relative populations of such localities. In a State where local and State governments share building code enforcement duties, the State and local shares of allowance value required for enforcement shall be allocated in proportion to the number of building inspections performed by each level of government, and the share for local governments shall be distributed as a function of the relative populations of such localities. States shall further ensure that the allowance value made available pursuant to section 782 of the Clean Air Act and section 132 of the American Clean Energy and Security Act of 2009 is provided to the applicable State or local governmental entities as necessary to adopt and implement energy efficiency building codes, provide training for inspectors, ensure compliance, and provide such other functions as necessary. Actions taken by local authorities pursuant to this section shall constitute an acceptable use of funds authorized pursuant to the Energy Efficiency and Conservation Block Grant program under section 544 of the Energy Independence and Security Act of 2007 (
42 U.S.C. 17154 ).CommentsClose CommentsPermalink‘(i) Authorization of Appropriations- There are authorized to be appropriated to the Secretary of Energy $25,000,000, and such additional sums as may be necessary to provide enforcement of a national energy efficiency building code, for each of fiscal years 2010 through 2020, and such sums thereafter as may be necessary to support the purposes of this section.CommentsClose CommentsPermalink
‘(j) Annual Reports by Secretary- The Secretary shall annually submit to Congress, and publish in the Federal Register, a report on--CommentsClose CommentsPermalink
‘(1) the status of national energy efficiency building codes;CommentsClose CommentsPermalink
‘(2) the status of energy efficiency building code adoption and compliance in the States;CommentsClose CommentsPermalink
‘(3) the implementation of this section;CommentsClose CommentsPermalink
‘(4) the status of Federal enforcement of building codes, including coordination with State and local enforcement, and the extent and resolution of any conflicts between the national energy efficiency building code and other residential and commercial building codes in force in the same jurisdictions; andCommentsClose CommentsPermalink
‘(5) impacts of past action under this section, and potential impacts of further action, on lifetime energy use by buildings, including resulting energy and cost savings.’.CommentsClose CommentsPermalink
SEC. 202. BUILDING RETROFIT PROGRAM.
(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
(1) ASSISTED HOUSING- The term ‘assisted housing’ means those properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959 (
(2) NONRESIDENTIAL BUILDING- The term ‘nonresidential building’ means a building with a primary use or purpose other than residential housing, including any building used for commercial offices, schools, academic and other public and private institutions, nonprofit organizations including faith-based organizations, hospitals, hotels, and other nonresidential purposes. Such buildings shall include mixed-use properties used for both residential and nonresidential purposes in which more than half of building floor space is nonresidential.CommentsClose CommentsPermalink
(3) PERFORMANCE-BASED BUILDING RETROFIT PROGRAM- The term ‘performance-based building retrofit program’ means a program that determines building energy efficiency success based on actual measured savings after a retrofit is complete, as evidenced by energy invoices or evaluation protocols.CommentsClose CommentsPermalink
(4) PRESCRIPTIVE BUILDING RETROFIT PROGRAM- The term ‘prescriptive building retrofit program’ means a program that projects building retrofit energy efficiency success based on the known effectiveness of measures prescribed to be included in a retrofit.CommentsClose CommentsPermalink
(5) PUBLIC HOUSING- The term ‘public housing’ means properties receiving assistance under section 9 of the United States Housing Act of 1937 (
(6) RECOMMISSIONING; RETROCOMMISSIONING- The terms ‘recommissioning’ and ‘retrocommissioning’ have the meaning given those terms in section 543(f)(1) of the National Energy Conservation Policy Act (
(7) RESIDENTIAL BUILDING- The term ‘residential building’ means a building whose primary use is residential. Such buildings shall include single-family homes (both attached and detached), owner-occupied units in larger buildings with their own dedicated space-conditioning systems, apartment buildings, multi-unit condominium buildings, public housing, assisted housing, and buildings used for both residential and nonresidential purposes in which more than half of building floor space is residential.CommentsClose CommentsPermalink
(8) STATE ENERGY PROGRAM- The term ‘State Energy Program’ means the program under part D of title III of the Energy Policy and Conservation Act (
(b) Establishment- The Administrator shall develop and implement, in consultation with the Secretary of Energy, standards for a national energy and environmental building retrofit policy for single-family and multifamily residences. The Administrator shall develop and implement, in consultation with the Secretary of Energy and the Director of Commercial High-Performance Green Buildings, standards for a national energy and environmental building retrofit policy for nonresidential buildings. The programs to implement the residential and nonresidential policies based on the standards developed under this section shall together be known as the Retrofit for Energy and Environmental Performance (REEP) program.CommentsClose CommentsPermalink
(c) Purpose- The purpose of the REEP program is to facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes.CommentsClose CommentsPermalink
(d) Federal Administration-CommentsClose CommentsPermalink
(1) EXISTING PROGRAMS- In creating and operating the REEP program--CommentsClose CommentsPermalink
(A) the Administrator shall make appropriate use of existing programs, including the Energy Star program and in particular the Environmental Protection Agency Energy Star for Buildings program; andCommentsClose CommentsPermalink
(B) the Secretary of Energy shall make appropriate use of existing programs, including delegating authority to the Director of Commercial High-Performance Green Buildings appointed under section 421 of the Energy Independence and Security Act of 2007 (
(2) CONSULTATION AND COORDINATION- The Administrator and the Secretary of Energy shall consult with and coordinate with the Secretary of Housing and Urban Development in carrying out the REEP program with regard to retrofitting of public housing and assisted housing. As a result of such consultation, the Administrator shall establish standards to ensure that retrofits of public housing and assisted housing funded pursuant to this section are cost-effective, including opportunities to address the potential co-performance of repair and replacement needs that may be supported with other forms of Federal assistance.CommentsClose CommentsPermalink
(3) ASSISTANCE- The Administrator and the Secretary of Energy shall provide consultation and assistance to State and local agencies for the establishment of revolving loan funds, loan guarantees, or other forms of financial assistance under this section.CommentsClose CommentsPermalink
(e) State and Local Administration-CommentsClose CommentsPermalink
(1) DESIGNATION AND DELEGATION- A State may designate one or more agencies or entities, including those regulated by the State, to carry out the purposes of this section, but shall designate one entity or individual as the principal point of contact for the Administrator regarding the REEP Program. The designated State agency, agencies, or entities may delegate performance of appropriate elements of the REEP program, upon their request and subject to State law, to counties, municipalities, appropriate public agencies, and other divisions of local government, as well as to entities regulated by the State. In making any such designation or delegation, a State shall give priority to entities that administer existing comprehensive retrofit programs, including those under the supervision of State utility regulators. States shall maintain responsibility for meeting the standards and requirements of the REEP program. In any State that elects not to administer the REEP program, a unit of local government may propose to do so within its jurisdiction, and if the Administrator finds that such local government is capable of administering the program, the Administrator may provide allowances to that local government, prorated according to the population of the local jurisdiction relative to the population of the State, for purposes of the REEP program.CommentsClose CommentsPermalink
(2) EMPLOYMENT- States and local government entities may administer a REEP program in a manner that authorizes public or regulated investor-owned utilities, building auditors and inspectors, contractors, nonprofit organizations, for-profit companies, and other entities to perform audits and retrofit services under this section. A State may provide incentives for retrofits without direct participation by the State or its agents, so long as the resulting savings are measured and verified. A State or local administrator of a REEP program shall seek to ensure that sufficient qualified entities are available to support retrofit activities so that building owners have a competitive choice among qualified auditors, raters, contractors, and providers of services related to retrofits. Nothing in this section is intended to deny the right of a building owner to choose the specific providers of retrofit services to engage for a retrofit project in that owner’s building.CommentsClose CommentsPermalink
(3) EQUAL INCENTIVES FOR EQUAL IMPROVEMENT- In general, the States should strive to offer the same levels of incentives for retrofits that meet the same efficiency improvement goals, regardless of whether the State, its agency or entity, or the building owner has conducted the retrofit achieving the improvement, provided the improvement is measured and verified.CommentsClose CommentsPermalink
(f) Elements of Reep Program- The Administrator, in consultation with the Secretary of Energy, shall establish goals, guidelines, practices, and standards for accomplishing the purpose stated in subsection (c), and shall annually review and, as appropriate, revise such goals, guidelines, practices, and standards. The program under this section shall include the following:CommentsClose CommentsPermalink
(1) Residential Energy Services Network (RESNET) or Building Performance Institute (BPI) analyst certification of residential building energy and environment auditors, inspectors, and raters, or an equivalent certification system as determined by the Administrator.CommentsClose CommentsPermalink
(2) BPI certification or licensing by States of residential building energy and environmental retrofit contractors, or an equivalent certification or licensing system as determined by the Administrator.CommentsClose CommentsPermalink
(3) Provision of BPI, RESNET, or other appropriate information on equipment and procedures, as determined by the Administrator, that contractors can use to test the energy and environmental efficiency of buildings effectively (such as infrared photography and pressurized testing, and tests for water use and indoor air quality).CommentsClose CommentsPermalink
(4) Provision of clear and effective materials to describe the testing and retrofit processes for typical buildings.CommentsClose CommentsPermalink
(5) Guidelines for offering and managing prescriptive building retrofit programs and performance-based building retrofit programs for residential and nonresidential buildings.CommentsClose CommentsPermalink
(6) Guidelines for applying recommissioning and retrocommissioning principles to improve a building’s operations and maintenance procedures.CommentsClose CommentsPermalink
(7) A requirement that building retrofits conducted pursuant to a REEP program utilize, especially in all air-conditioned buildings, roofing materials with high solar energy reflectance, unless inappropriate due to green roof management, solar energy production, or for other reasons identified by the Administrator, in order to reduce energy consumption within the building, increase the albedo of the building’s roof, and decrease the heat island effect in the area of the building, without reduction of otherwise applicable ceiling insulation standards.CommentsClose CommentsPermalink
(8) Determination of energy savings in a performance-based building retrofit program through--CommentsClose CommentsPermalink
(A) for residential buildings, comparison of before and after retrofit scores on the Home Energy Rating System (HERS) Index, where the final score is produced by an objective third party;CommentsClose CommentsPermalink
(B) for nonresidential buildings, Environmental Protection Agency Portfolio Manager benchmarks; orCommentsClose CommentsPermalink
(C) for either residential or nonresidential buildings, use of an Administrator-approved simulation program by a contractor with the appropriate certification, subject to appropriate software standards and verification of at least 15 percent of all work done, or such other percentage as the Administrator may determine.CommentsClose CommentsPermalink
(9) Guidelines for utilizing the Energy Star Portfolio Manager, the Home Energy Rating System (HERS) rating system, Home Performance with Energy Star program approvals, and any other tools associated with the retrofit program.CommentsClose CommentsPermalink
(10) Requirements and guidelines for post-retrofit inspection and confirmation of work and energy savings.CommentsClose CommentsPermalink
(11) Detailed descriptions of funding options for the benefit of State and local governments, along with model forms, accounting aids, agreements, and guides to best practices.CommentsClose CommentsPermalink
(12) Guidance on opportunities for--CommentsClose CommentsPermalink
(A) rating or certifying retrofitted buildings as Energy Star buildings, or as green buildings under a recognized green building rating system;CommentsClose CommentsPermalink
(B) assigning Home Energy Rating System (HERS) or similar ratings; andCommentsClose CommentsPermalink
(C) completing any applicable building performance labels.CommentsClose CommentsPermalink
(13) Sample materials for publicizing the program to building owners, including public service announcements and advertisements.CommentsClose CommentsPermalink
(14) Processes for tracking the numbers and locations of buildings retrofitted under the REEP program, with information on projected and actual savings of energy and its value over time.CommentsClose CommentsPermalink
(g) Requirements- As a condition of receiving allowances for the REEP program pursuant to this Act, a State or qualifying local government shall--CommentsClose CommentsPermalink
(1) adopt the standards for training, certification of contractors, certification of buildings, and post-retrofit inspection as developed by the Administrator for residential and nonresidential buildings, respectively, except as necessary to match local conditions, needs, efficiency opportunities, or other local factors, or to accord with State laws or regulations, and then only after the Administrator approves such a variance; andCommentsClose CommentsPermalink
(2) establish fiscal controls and accounting procedures (which conform to generally accepted government accounting principles) sufficient to ensure proper accounting during appropriate accounting periods for payments received and disbursements, and for fund balances.CommentsClose CommentsPermalink
The Administrator shall conduct or require each State to have such independent financial audits of REEP-related funding as the Administrator considers necessary or appropriate to carry out the purposes of this section.CommentsClose CommentsPermalink
(h) Options to Support Reep Program- The emission allowances provided pursuant to this Act to the States SEED Accounts shall support the implementation through State REEP programs of alternate means of creating incentives for, or reducing financial barriers to, improved energy and environmental performance in buildings, consistent with this section, including--CommentsClose CommentsPermalink
(1) implementing prescriptive building retrofit programs and performance-based building retrofit programs;CommentsClose CommentsPermalink
(2) providing credit enhancement, interest rate subsidies, loan guarantees, or other credit support;CommentsClose CommentsPermalink
(3) providing initial capital for public revolving fund financing of retrofits, with repayments by beneficiary building owners over time through their tax payments, calibrated to create net positive cash flow to the building owner;CommentsClose CommentsPermalink
(4) providing funds to support utility-operated retrofit programs with repayments over time through utility rates, calibrated to create net positive cash flow to the building owner, and transferable from one building owner to the next with the building’s utility services;CommentsClose CommentsPermalink
(5) providing funds to local government programs to provide REEP services and financial assistance; andCommentsClose CommentsPermalink
(6) other means proposed by State and local agencies, subject to the approval of the Administrator.CommentsClose CommentsPermalink
(i) Support for Program-CommentsClose CommentsPermalink
(1) USE OF ALLOWANCES- Direct Federal support for the REEP program is provided through the emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement elements of the REEP Program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.CommentsClose CommentsPermalink
(2) INITIAL AWARD LIMITS- Except as provided in paragraph (3), State and local REEP programs may make per-building direct expenditures for retrofit improvements, or their equivalent in indirect or other forms of financial support, from funds derived from the sale of allowances received directly from the Administrator in amounts not to exceed the following amounts per unit:CommentsClose CommentsPermalink
(A) RESIDENTIAL BUILDING PROGRAM-CommentsClose CommentsPermalink
(i) AWARDS- For residential buildings--CommentsClose CommentsPermalink
(I) support for a free or low-cost detailed building energy audit that prescribes measures sufficient to achieve at least a 20 percent reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $200, in addition to any earned by achieving a 20 percent or greater efficiency improvement;CommentsClose CommentsPermalink
(II) a total of $1,000 for a combination of measures, prescribed in an audit conducted under subclause (I), designed to reduce energy consumption by more than 10 percent, and $2,000 for a combination of measures prescribed in such an audit, designed to reduce energy consumption by more than 20 percent;CommentsClose CommentsPermalink
(III) $3,000 for demonstrated savings of 20 percent, pursuant to a performance-based building retrofit program; andCommentsClose CommentsPermalink
(IV) $1,000 for each additional 5 percentage points of energy savings achieved beyond savings for which funding is provided under subclause (II) or (III).CommentsClose CommentsPermalink
Funding shall not be provided under clauses (II) and (III) for the same energy savings.CommentsClose CommentsPermalink
(ii) MAXIMUM PERCENTAGE- Awards under clause (i) shall not exceed 50 percent of retrofit costs for each building. For buildings with multiple residential units, awards under clause (i) shall not be greater than 50 percent of the total cost of retrofitting the building, prorated among individual residential units on the basis of relative costs of the retrofit. In the case of public housing and assisted housing, the 50 percent contribution matching the contribution from REEP program funds may come from any other source, including other Federal funds.CommentsClose CommentsPermalink
(iii) ADDITIONAL AWARDS- Additional awards may be provided for purposes of increasing energy efficiency, for buildings achieving at least 20 percent energy savings using funding provided under clause (i), in the form of grants of not more than $600 for measures projected or measured (using an appropriate method approved by the Administrator) to achieve at least 35 percent potable water savings through equipment or systems with an estimated service life of not less than seven years, and not more than an additional $20 may be provided for each additional one percent of such savings, up to a maximum total grant of $1,200.CommentsClose CommentsPermalink
(B) NONRESIDENTIAL BUILDING PROGRAM-CommentsClose CommentsPermalink
(i) AWARDS- For nonresidential buildings--CommentsClose CommentsPermalink
(I) support for a free or low-cost detailed building energy audit that prescribes, as part of a energy-reducing measures sufficient to achieve at least a 20 percent reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $500, in addition to any award earned by achieving a 20 percent or greater efficiency improvement;CommentsClose CommentsPermalink
(II) $0.15 per square foot of retrofit area for demonstrated energy use reductions from 20 percent to 30 percent;CommentsClose CommentsPermalink
(III) $0.75 per square foot for demonstrated energy use reductions from 30 percent to 40 percent;CommentsClose CommentsPermalink
(IV) $1.60 per square foot for demonstrated energy use reductions from 40 percent to 50 percent; andCommentsClose CommentsPermalink
(V) $2.50 per square foot for demonstrated energy use reductions exceeding 50 percent.CommentsClose CommentsPermalink
(ii) MAXIMUM PERCENTAGE- Amounts provided under subclauses (II) through (V) of clause (i) combined shall not exceed 50 percent of the total retrofit cost of a building. In nonresidential buildings with multiple units, such awards shall be prorated among individual units on the basis of relative costs of the retrofit.CommentsClose CommentsPermalink
(iii) ADDITIONAL AWARDS- Additional awards may be provided, for buildings achieving at least 20 percent energy savings using funding provided under clause (i), as follows:CommentsClose CommentsPermalink
(I) WATER- For purposes of increasing energy efficiency, grants may be made for whole building potable water use reduction (using an appropriate method approved by the Administrator) for up to 50 percent of the total retrofit cost, including amounts up to--CommentsClose CommentsPermalink
(aa) $24.00 per thousand gallons per year of potable water savings of 40 percent or more;CommentsClose CommentsPermalink
(bb) $27.00 per thousand gallons per year of potable water savings of 50 percent or more; andCommentsClose CommentsPermalink
(cc) $30.00 per thousand gallons per year of potable water savings of 60 percent or more.CommentsClose CommentsPermalink
(II) ENVIRONMENTAL IMPROVEMENTS- Additional awards of up to $1,000 may be granted for the inclusion of other environmental attributes that the Administrator, in consultation with the Secretary, identifies as contributing to energy efficiency. Such attributes may include, but are not limited to waste diversion and the use of environmentally preferable materials (including salvaged, renewable, or recycled materials, and materials with no or low-VOC content). The Administrator may recommend that States develop such standards as are necessary to account for local or regional conditions that may affect the feasibility or availability of identified resources and attributes.CommentsClose CommentsPermalink
(iv) INDOOR AIR QUALITY MINIMUM- Nonresidential buildings receiving incentives under this section must satisfy at a minimum the most recent version of ASHRAE Standard 62.1 for ventilation, or the equivalent as determined by the Administrator. A State may issue a waiver from this requirement to a building project on a showing that such compliance is infeasible due to the physical constraints of the building’s existing ventilation system, or such other limitations as may be specified by the Administrator.CommentsClose CommentsPermalink
(C) HISTORIC BUILDINGS- Notwithstanding subparagraphs (A) and (B), a building in or eligible for the National Register of Historic Places shall be eligible for awards under this paragraph in amounts up to 120 percent of the amounts set forth in subparagraphs (A) and (B).CommentsClose CommentsPermalink
(D) SUPPLEMENTAL SUPPORT- State and local governments may supplement the per-building expenditures under this paragraph with funding from other sources.CommentsClose CommentsPermalink
(3) ADJUSTMENT- The Administrator may adjust the specific dollar limits funded by the sale of allowances pursuant to paragraph (2) in years subsequent to the second year after the date of enactment of this Act, and every 2 years thereafter, as the Administrator determines necessary to achieve optimum cost-effectiveness and to maximize incentives to achieve energy efficiency within the total building award amounts provided in that paragraph, and shall publish and hold constant such revised limits for at least 2 years. The Administrator, in consultation with the Secretary of Housing and Urban Development, may establish different dollar limits for public housing and assisted housing than for other residential buildings.CommentsClose CommentsPermalink
(j) Report to Congress- The Administrator shall conduct an annual assessment of the achievements of the REEP program in each State, shall prepare an annual report of such achievements and any recommendations for program modifications, and shall provide such report to Congress at the end of each fiscal year during which funding or other resources were made available to the States for the REEP Program.CommentsClose CommentsPermalink
(k) Other Sources of Federal Support-CommentsClose CommentsPermalink
(1) ADDITIONAL STATE ENERGY PROGRAM FUNDS- Any Federal funding provided to a State Energy Program that is not required to be expended for a different federally designated purpose may be used to support a REEP program.CommentsClose CommentsPermalink
(2) PROGRAM ADMINISTRATION- State Energy Offices or designated State agencies may expend up to 10 percent of available allowance value provided under this section for program administration.CommentsClose CommentsPermalink
(3) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for the purposes of this section, for each of fiscal years 2010, 2011, 2012, and 2013--CommentsClose CommentsPermalink
(A) $50,000,000 to the Administrator for program administration costs; andCommentsClose CommentsPermalink
(B) $20,000,000 to the Secretary of Energy for program administration costs.CommentsClose CommentsPermalink
SEC. 203. ENERGY EFFICIENT MANUFACTURED HOMES.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) MANUFACTURED HOME- The term ‘manufactured home’ has the meaning given such term in section 603 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (
(2) ENERGY STAR QUALIFIED MANUFACTURED HOME- The term ‘Energy Star qualified manufactured home’ means a manufactured home that has been designed, produced, and installed in accordance with Energy Star’s guidelines by an Energy Star certified plant.CommentsClose CommentsPermalink
(b) Purpose- The purpose of this section is to assist low-income households residing in manufactured homes constructed prior to 1976 to save energy and energy expenditures by providing support toward the purchase of new Energy Star qualified manufactured homes.CommentsClose CommentsPermalink
(c) State Implementation of Program-CommentsClose CommentsPermalink
(1) MANUFACTURED HOME REPLACEMENT PROGRAM- Any State may provide to the owner of a manufactured home constructed prior to 1976 a rebate to use toward the purchase of a new Energy Star qualified manufactured home pursuant to this section.CommentsClose CommentsPermalink
(2) USE OF ALLOWANCES- Direct Federal support for the program established in this section is provided through the emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.CommentsClose CommentsPermalink
(3) REBATES-CommentsClose CommentsPermalink
(A) PRIMARY RESIDENCE REQUIREMENT- A rebate described under paragraph (1) may only be made to an owner of a manufactured home constructed prior to 1976 that is used on a year-round basis as a primary residence.CommentsClose CommentsPermalink
(B) DISMANTLING AND REPLACEMENT- A rebate described under paragraph (1) may be made only if the manufactured home constructed prior to 1976 will be--CommentsClose CommentsPermalink
(i) rendered unusable for human habitation (including appropriate recycling); andCommentsClose CommentsPermalink
(ii) replaced, in the same general location, as determined by the applicable State agency, with an Energy Star qualified manufactured home.CommentsClose CommentsPermalink
(C) SINGLE REBATE- A rebate described under paragraph (1) may not be provided to any owner of a manufactured home constructed prior to 1976 that was or is a member of a household for which any other member of the household was provided a rebate pursuant to this section.CommentsClose CommentsPermalink
(D) ELIGIBLE HOUSEHOLDS- To be eligible to receive a rebate described under paragraph (1), an owner of a manufactured home constructed prior to 1976 shall demonstrate to the applicable State agency that the total income of all members the owner’s household does not exceed 200 percent of the Federal poverty level for income in the applicable area.CommentsClose CommentsPermalink
(E) ADVANCE AVAILABILITY- A rebate may be provided under this section in a manner to facilitate the purchase of a new Energy Star qualified manufactured home.CommentsClose CommentsPermalink
(4) REBATE LIMITATION- Rebates provided by States under this section shall not exceed $7,500 per manufactured home from any value derived from the use of emission allowances provided to the State pursuant to section 132.CommentsClose CommentsPermalink
(5) USE OF STATE FUNDS- A State providing rebates under this section may supplement the amount of such rebates under paragraph (4) by any additional amount is from State funds and other sources, including private donations or grants from charitable organizations.CommentsClose CommentsPermalink
(6) COORDINATION WITH SIMILAR PROGRAMS-CommentsClose CommentsPermalink
(A) STATE PROGRAMS- A State conducting an existing program that has the purpose of replacing manufactured homes constructed prior to 1976 with Energy Star qualified manufactured homes, may use allowance value provided under section 782 of the Clean Air Act to support such a program, provided such funding does not exceed the rebate limitation amount under paragraph (4).CommentsClose CommentsPermalink
(B) FEDERAL PROGRAMS- The Secretary of Energy shall coordinate with and seek to achieve the purpose of this section through similar Federal programs including--CommentsClose CommentsPermalink
(i) the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act (
(ii) the program under part D of title III of the Energy Policy and Conservation Act (
(C) COORDINATION WITH OTHER STATE AGENCIES- A State agency using allowance value to administer the program under this section may coordinate its efforts, and share funds for administration, with other State agencies involved in low-income housing programs.CommentsClose CommentsPermalink
(7) ADMINISTRATIVE EXPENSES- A State using allowance value under this section may expend not more than 10 percent of such value for administrative expenses related to this program.CommentsClose CommentsPermalink
SEC. 204. BUILDING ENERGY PERFORMANCE LABELING PROGRAM.
(a) Establishment-CommentsClose CommentsPermalink
(1) PURPOSE- The Administrator shall establish a building energy performance labeling program with broad applicability to the residential and commercial markets to enable and encourage knowledge about building energy performance by owners and occupants and to inform efforts to reduce energy consumption nationwide.CommentsClose CommentsPermalink
(2) COMPONENTS- In developing such program, the Administrator shall--CommentsClose CommentsPermalink
(A) consider existing programs, such as Environmental Protection Agency’s Energy Star program, the Home Energy Rating System (HERS) Index, and programs at the Department of Energy;CommentsClose CommentsPermalink
(B) support the development of model performance labels for residential and commercial buildings; andCommentsClose CommentsPermalink
(C) utilize incentives and other means to spur use of energy performance labeling of public and private sector buildings nationwide.CommentsClose CommentsPermalink
(b) Data Assessment for Building Energy Performance-CommentsClose CommentsPermalink
(1) INITIAL REPORT- Not later than 90 days after the date of enactment of this Act, the Administrator shall provide to Congress, as well as to the Secretary of Energy and the Office of Management and Budget, a report identifying--CommentsClose CommentsPermalink
(A) all principal building types for which statistically significant energy performance data exists to serve as the basis of measurement protocols and labeling requirements for achieved building energy performance; andCommentsClose CommentsPermalink
(B) those building types for which additional data are required to enable the development of such protocols and requirements.CommentsClose CommentsPermalink
(2) ADDITIONAL REPORTS- Additional updated reports shall be provided under this subsection as often as The Administrator considers practicable, but not less than every 2 years.CommentsClose CommentsPermalink
(c) Building Data Acquisition-CommentsClose CommentsPermalink
(1) RESOURCE REQUIREMENTS- For all principal building types identified under subsection (b), the Secretary of Energy, not later than 90 days after a report by the Administrator under subsection (b), shall provide to Congress, the Administrator, and the Office of Management and Budget a statement of additional resources needed, if any, to fully develop the relevant data, as well as the anticipated timeline for data development.CommentsClose CommentsPermalink
(2) CONSULTATION- The Secretary of Energy shall consult with the Administrator concerning the Administrator’s ability to use data series for these additional building types to support the achieved performance component in the labeling program.CommentsClose CommentsPermalink
(3) IMPROVEMENTS TO BUILDING ENERGY CONSUMPTION DATABASES-CommentsClose CommentsPermalink
(A) COMMERCIAL DATABASE- The Secretary of Energy shall support improvements to the Commercial Buildings Energy Consumption Survey (CBECS) as authorized by section 205(k) of the Department of Energy Organization Act (
(i) to enable complete and robust data for the actual energy performance of principal building types currently covered by survey;CommentsClose CommentsPermalink
(ii) to cover additional building types as identified by the Administrator under subsection (b)(1)(B), to enable the development of achieved performance measurement protocols are developed for at least 90 percent of all major commercial building types within 5 years after the date of enactment of this Act; andCommentsClose CommentsPermalink
(iii) to include third-party audits of random data samplings to ensure the quality and accuracy of survey information.CommentsClose CommentsPermalink
(B) RESIDENTIAL DATABASES- The Administrator, in consultation with the Energy Information Administration and the Secretary of Energy, shall support improvements to the Residential Energy Consumption Survey (RECS) as authorized by section 205(k) of the Department of Energy Organization Act (
(C) CONSULTATION- The Secretary of Energy and the Administrator shall consult with public, private, and nonprofit sector representatives from the building industry and real estate industry to assist in the evaluation and improvement of building energy performance databases and labeling programs.CommentsClose CommentsPermalink
(d) Identification of Measurement Protocols for Achieved Performance-CommentsClose CommentsPermalink
(1) PROPOSED PROTOCOLS AND REQUIREMENTS- At the earliest practicable date, but not later than 1 year after identifying a building type under subsection (b)(1)(A), the Administrator shall propose a measurement protocol for that building type and a requirement detailing how to use that protocol in completing applicable commercial or residential performance labels created pursuant to this section.CommentsClose CommentsPermalink
(2) FINAL RULE- After providing for notice and comment, the Administrator shall publish a final rule containing a measurement protocol and the corresponding requirements for applying that protocol. Such a rule--CommentsClose CommentsPermalink
(A) shall define the minimum period for measurement of energy use by buildings of that type and other details for determining achieved performance, to include leased buildings or parts thereof;CommentsClose CommentsPermalink
(B) shall identify necessary data collection and record retention requirements; andCommentsClose CommentsPermalink
(C) may specify transition rules and exemptions for classes of buildings within the building type.CommentsClose CommentsPermalink
(e) Procedures for Evaluating Designed Performance- The Administrator shall develop protocols for evaluating the designed performance of individual building types. The Administrator may conduct such feasibility studies and demonstration projects as are necessary to evaluate the sufficiency of proposed protocols for designed performance.CommentsClose CommentsPermalink
(f) Creation of Building Energy Performance Labeling Program-CommentsClose CommentsPermalink
(1) MODEL LABEL- Not later than 1 year after the date of enactment of this Act, the Administrator shall propose a model building energy label that provides a format--CommentsClose CommentsPermalink
(A) to display achieved performance and designed performance data;CommentsClose CommentsPermalink
(B) that may be tailored for residential and commercial buildings, and for single-occupancy and multitenanted buildings; andCommentsClose CommentsPermalink
(C) to display other appropriate elements identified during the development of measurement protocols under subsections (d) and (e).CommentsClose CommentsPermalink
(2) INCLUSIONS- Nothing in this section shall require the inclusion on such a label of designed performance data where impracticable or not cost effective, or to preclude the display of both achieved performance and designed performance data for a particular building where both such measures are available, practicable, and cost effective.CommentsClose CommentsPermalink
(3) EXISTING PROGRAMS- In developing the model label, the Administrator shall consider existing programs, including--CommentsClose CommentsPermalink
(A) the Environmental Protection Agency’s Energy Star Portfolio Manager program and the California HERS II Program Custom Approach for the achieved performance component of the label;CommentsClose CommentsPermalink
(B) the Home Energy Rating System (HERS) Index system for the designed performance component of the label; andCommentsClose CommentsPermalink
(C) other Federal and State programs, including the Department of Energy’s related programs on building technologies and those of the Federal Energy Management Program.CommentsClose CommentsPermalink
(4) FINAL RULE- After providing for notice and comment, the Administrator shall publish a final rule containing the label applicable to covered building types.CommentsClose CommentsPermalink
(g) Demonstration Projects for Labeling Program-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall conduct building energy performance labeling demonstration projects for different building types--CommentsClose CommentsPermalink
(A) to ensure the sufficiency of the current Commercial Buildings Energy Consumption Survey and other data to serve as the basis for new measurement protocols for the achieved performance component of the building energy performance labeling program;CommentsClose CommentsPermalink
(B) to inform the development of measurement protocols for building types not currently covered by the Commercial Buildings Energy Consumption Survey; andCommentsClose CommentsPermalink
(C) to identify any additional information that needs to be developed to ensure effective use of the model label.CommentsClose CommentsPermalink
(2) PARTICIPATION- Such demonstration projects shall include participation of--CommentsClose CommentsPermalink
(A) buildings from diverse geographical and climate regions;CommentsClose CommentsPermalink
(B) buildings in both urban and rural areas;CommentsClose CommentsPermalink
(C) single-family residential buildings;CommentsClose CommentsPermalink
(D) multihousing residential buildings with more than 50 units, including at least one project that provides affordable housing to individuals of diverse incomes;CommentsClose CommentsPermalink
(E) single-occupant commercial buildings larger than 30,000 square feet;CommentsClose CommentsPermalink
(F) multitenanted commercial buildings larger than 50,000 square feet; andCommentsClose CommentsPermalink
(G) buildings from both the public and private sectors.CommentsClose CommentsPermalink
(3) PRIORITY- Priority in the selection of demonstration projects shall be given to projects that facilitate large-scale implementation of the labeling program for samples of buildings across neighborhoods, geographic regions, cities, or States.CommentsClose CommentsPermalink
(4) FINDINGS- The Administrator shall report any findings from demonstration projects under this subsection, including an identification of any areas of needed data improvement, to the Department of Energy’s Energy Information Administration and Building Technologies Program.CommentsClose CommentsPermalink
(5) COORDINATION- The Administrator and the Secretary of Energy shall coordinate demonstration projects undertaken pursuant to this subsection with those undertaken as part of the Zero-Net-Energy Commercial Buildings Initiative adopted under section 422 of the Energy Independence and Security Act of 2007 (
(h) Implementation of Labeling Program-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator, in consultation with the Secretary of Energy, shall work with all State Energy Offices established pursuant to part D of title III of the Energy Policy and Conservation Act (
(2) OUTREACH TO LOCAL AUTHORITIES- The Administrator shall, acting in consultation and coordination with the respective States, encourage use of the labeling program by counties and other localities to broaden access to information about building energy use, for example, through disclosure of building label contents in tax, title, and other records those localities maintain. For this purpose, the Administrator shall develop an electronic version of the label and information that can be readily transmitted and read in widely-available computer programs but is protected from unauthorized manipulation.CommentsClose CommentsPermalink
(3) MEANS OF IMPLEMENTATION- In adopting the model labeling program established under this section, a State shall seek to ensure that labeled information be made accessible to the public in a manner so that owners, lenders, tenants, occupants, or other relevant parties can utilize it. Such accessibility may be accomplished through--CommentsClose CommentsPermalink
(A) preparation, and public disclosure of the label through filing with tax and title records at the time of--CommentsClose CommentsPermalink
(i) a building audit conducted with support from Federal or State funds;CommentsClose CommentsPermalink
(ii) a building energy-efficiency retrofit conducted in response to such an audit;CommentsClose CommentsPermalink
(iii) a final inspection of major renovations or additions made to a building in accordance with a building permit issued by a local government entity;CommentsClose CommentsPermalink
(iv) a sale that is recorded for title and tax purposes consistent with paragraph (8);CommentsClose CommentsPermalink
(v) a new lien recorded on the property for more than a set percentage of the assessed value of the property, if that lien reflects public financial assistance for energy-related improvements to that building; orCommentsClose CommentsPermalink
(vi) a change in ownership or operation of the building for purposes of utility billing; orCommentsClose CommentsPermalink
(B) other appropriate means.CommentsClose CommentsPermalink
(4) STATE IMPLEMENTATION OF PROGRAM-CommentsClose CommentsPermalink
(A) ELIGIBILITY- A State may become eligible to utilize allowance value to implement this program by--CommentsClose CommentsPermalink
(i) adopting by statute or regulation a requirement that buildings be assessed and labeled, consistent with the labeling requirements of the program established under this section; orCommentsClose CommentsPermalink
(ii) adopting a plan to implement a model labeling program consistent with this section within one year of enactment of this Act, including the establishment of that program within 3 years after the date of enactment of this Act, and demonstrating continuous progress under that plan.CommentsClose CommentsPermalink
(B) USE OF ALLOWANCES- Direct Federal support for the program established in this section is provided through the emission allowances allocated to the States’ SEED Accounts pursuant to section 132 of this Act. To the extent that a State provides allowances to local governments within the State to implement this program, that shall be deemed a distribution of such allowances to units of local government pursuant to subsection (c)(1) of that section.CommentsClose CommentsPermalink
(5) GUIDANCE- The Administrator may create or identify model programs and resources to provide guidance to offer to States and localities for creating labeling programs consistent with the model program established under this section.CommentsClose CommentsPermalink
(6) PROGRESS REPORT- The Administrator, in consultation with the Secretary of Energy, shall provide a progress report to Congress not later than 3 years after the date of enactment of this Act that--CommentsClose CommentsPermalink
(A) evaluates the effectiveness of efforts to advance use of the model labeling program by States and localities;CommentsClose CommentsPermalink
(B) recommends any legislative changes necessary to broaden the use of the model labeling program; andCommentsClose CommentsPermalink
(C) identifies any changes to broaden the use of the model labeling program that the Administrator has made or intends to make that do not require additional legislative authority.CommentsClose CommentsPermalink
(7) STATE INFORMATION- The Administrator may require States to report to the Administrator information that the Administrator requires to provide the report required under paragraph (6).CommentsClose CommentsPermalink
(8) PREVENTION OF DISRUPTION OF SALES TRANSACTIONS- No State shall implement a new labeling program pursuant to this section in a manner that requires the labeling of a building to occur after a contract has been executed for the sale of that building and before the sales transaction is completed.CommentsClose CommentsPermalink
(i) Implementation of Labeling Program in Federal Buildings-CommentsClose CommentsPermalink
(1) USE OF LABELING PROGRAM- The Secretary of Energy and the Administrator shall use the labeling program established under this section to evaluate energy performance in the facilities of the Department of Energy and the Environmental Protection Agency, respectively, to the extent practicable, and shall encourage and support implementation efforts in other Federal agencies.CommentsClose CommentsPermalink
(2) ANNUAL PROGRESS REPORT- The Secretary of Energy and Administrator shall provide an annual progress report to Congress and the Office of Management and Budget detailing efforts to implement this subsection, as well as any best practices or needed resources identified as a result of such efforts.CommentsClose CommentsPermalink
(j) Public Outreach- The Secretary of Energy and the Administrator, in consultation with nonprofit and industry stakeholders with specialized expertise, and in conjunction with other energy efficiency public awareness efforts, shall establish a business and consumer education program to increase awareness about the importance of building energy efficiency and to facilitate widespread use of the labeling program established under this section.CommentsClose CommentsPermalink
(k) Definitions- In this section:CommentsClose CommentsPermalink
(1) BUILDING TYPE- The term ‘building type’ means a grouping of buildings as identified by their principal building activities, or as grouped by their use, including office buildings, laboratories, libraries, data centers, retail establishments, hotels, warehouses, and educational buildings.CommentsClose CommentsPermalink
(2) MEASUREMENT PROTOCOL- The term ‘measurement protocol’ means the methodology, prescribed by the Administrator, for defining a benchmark for building energy performance for a specific building type and for measuring that performance against the benchmark.CommentsClose CommentsPermalink
(3) ACHIEVED PERFORMANCE- The term ‘achieved performance’ means the actual energy consumption of a building as compared to a baseline building of the same type and size, determined by actual consumption data normalized for appropriate variables.CommentsClose CommentsPermalink
(4) DESIGNED PERFORMANCE- The term ‘designed performance’ means the energy consumption performance a building would achieve if operated consistent with its design intent for building energy use, utilizing a standardized set of operational conditions informed by data collected or confirmed during an energy audit.CommentsClose CommentsPermalink
(l) Authorization of Appropriations- There are authorized to be appropriated--CommentsClose CommentsPermalink
(1) to the Administrator $50,000,000 for implementation of this section for each fiscal year from 2010 through 2020; andCommentsClose CommentsPermalink
(2) to the Secretary of Energy $20,000,000 for implementation of this section for fiscal year 2010 and $10,000,000 for fiscal years 2011 through 2020.CommentsClose CommentsPermalink
SEC. 205. TREE PLANTING PROGRAMS.
(a) Findings- The Congress finds that--CommentsClose CommentsPermalink
(1) the utility sector is the largest single source of greenhouse gas emissions in the United States today, producing approximately one-third of the country’s emissions;CommentsClose CommentsPermalink
(2) heating and cooling homes accounts for nearly 60 percent of residential electricity usage in the United States;CommentsClose CommentsPermalink
(3) shade trees planted in strategic locations can reduce residential cooling costs by as much as 30 percent;CommentsClose CommentsPermalink
(4) shade trees have significant clean-air benefits associated with them;CommentsClose CommentsPermalink
(5) every 100 healthy large trees removes about 300 pounds of air pollution (including particulate matter and ozone) and about 15 tons of carbon dioxide from the air each year;CommentsClose CommentsPermalink
(6) tree cover on private property and on newly-developed land has declined since the 1970s, even while emissions from transportation and industry have been rising; andCommentsClose CommentsPermalink
(7) in over a dozen test cities across the United States, increasing urban tree cover has generated between two and five dollars in savings for every dollar invested in such tree planting.CommentsClose CommentsPermalink
(b) Definitions- As used in this section:CommentsClose CommentsPermalink
(1) The term ‘Secretary’ refers to the Secretary of Energy.CommentsClose CommentsPermalink
(2) The term ‘retail power provider’ means any entity authorized under applicable State or Federal law to generate, distribute, or provide retail electricity, natural gas, or fuel oil service.CommentsClose CommentsPermalink
(3) The term ‘tree-planting organization’ means any nonprofit or not-for-profit group which exists, in whole or in part, to--CommentsClose CommentsPermalink
(A) expand urban and residential tree cover;CommentsClose CommentsPermalink
(B) distribute trees for planting;CommentsClose CommentsPermalink
(C) increase awareness of the environmental and energy-related benefits of trees;CommentsClose CommentsPermalink
(D) educate the public about proper tree planting, care, and maintenance strategies; orCommentsClose CommentsPermalink
(E) carry out any combination of the foregoing activities.CommentsClose CommentsPermalink
(4) The term ‘tree-siting guidelines’ means a comprehensive list of science-based measurements outlining the species and minimum distance required between trees planted pursuant to this section, in addition to the minimum required distance to be maintained between such trees and--CommentsClose CommentsPermalink
(A) building foundations;CommentsClose CommentsPermalink
(B) air conditioning units;CommentsClose CommentsPermalink
(C) driveways and walkways;CommentsClose CommentsPermalink
(D) property fences;CommentsClose CommentsPermalink
(E) preexisting utility infrastructure;CommentsClose CommentsPermalink
(F) septic systems;CommentsClose CommentsPermalink
(G) swimming pools; andCommentsClose CommentsPermalink
(H) other infrastructure as deemed appropriate.CommentsClose CommentsPermalink
(5) The terms ‘small office’, ‘small office buildings’, and ‘small office settings’ means nonresidential buildings or structures zoned for business purposes that are 20,000 square feet or less in total area.CommentsClose CommentsPermalink
(c) Purposes- The purpose of this section is to establish a grant program to assist retail power providers with the establishment and operation of targeted tree-planting programs in residential and small office settings, for the following purposes:CommentsClose CommentsPermalink
(1) Reducing the peak-load demand for electricity from residences and small office buildings during the summer months through direct shading of buildings provided by strategically planted trees.CommentsClose CommentsPermalink
(2) Reducing wintertime demand for energy from residences and small office buildings by blocking cold winds from reaching such structures, which lowers interior temperatures and drives heating demand.CommentsClose CommentsPermalink
(3) Protecting public health by removing harmful pollution from the air.CommentsClose CommentsPermalink
(4) Utilizing the natural photosynthetic and transpiration process of trees to lower ambient temperatures and absorb carbon dioxide, thus mitigating the effects of climate change.CommentsClose CommentsPermalink
(5) Lowering electric bills for residential and small office ratepayers by limiting electricity consumption without reducing benefits.CommentsClose CommentsPermalink
(6) Relieving financial and demand pressure on retail power providers that stems from large peak-load energy demand.CommentsClose CommentsPermalink
(7) Protecting water quality and public health by reducing stormwater runoff and keeping harmful pollutants from entering waterways.CommentsClose CommentsPermalink
(8) Ensuring that trees are planted in locations that limit the amount of public money needed to maintain public and electric infrastructure.CommentsClose CommentsPermalink
(d) General Authority-CommentsClose CommentsPermalink
(1) ASSISTANCE- The Secretary is authorized to provide financial, technical, and related assistance to retail power providers to assist with the establishment of new, or continued operation of existing, targeted tree-planting programs for residences and small office buildings.CommentsClose CommentsPermalink
(2) PUBLIC RECOGNITION INITIATIVE- In carrying out the authority provided under this section, the Secretary shall also create a national public recognition initiative to encourage participation in tree-planting programs by retail power providers.CommentsClose CommentsPermalink
(3) ELIGIBILITY- Only those programs which utilize targeted, strategic tree-siting guidelines to plant trees in relation to building location, sunlight, and prevailing wind direction shall be eligible for assistance under this section.CommentsClose CommentsPermalink
(4) REQUIREMENTS- In order to qualify for assistance under this section, a tree-planting program shall meet each of the following requirements:CommentsClose CommentsPermalink
(A) The program shall provide free or discounted shade-providing or wind-reducing trees to residential and small office consumers interested in lowering their home energy costs.CommentsClose CommentsPermalink
(B) The program shall optimize the electricity-consumption reduction benefit of each tree by planting in strategic locations around a given residence or small office.CommentsClose CommentsPermalink
(C) The program shall either--CommentsClose CommentsPermalink
(i) provide maximum amounts of shade during summer intervals when residences and small offices are exposed to the most sun intensity; orCommentsClose CommentsPermalink
(ii) provide maximum amounts of wind protection during fall and winter intervals when residences and small offices are exposed to the most wind intensity.CommentsClose CommentsPermalink
(D) The program shall use the best available science to create tree siting guidelines which dictate where the optimum tree species are best planted in locations that achieve maximum reductions in consumer energy demand while causing the least disruption to public infrastructure, considering overhead and underground facilities.CommentsClose CommentsPermalink
(E) The program shall receive certification from the Secretary that it is designed to achieve the goals set forth in subparagraphs (A) through (D). In designating criteria for such certification, the Secretary shall collaborate with the United States Forest Service’s Urban and Community Forestry Program to ensure that certification requirements are consistent with such above goals.CommentsClose CommentsPermalink
(5) NEW PROGRAM FUNDING SHARE- The Secretary shall ensure that no less than 30 percent of the funds made available under this section are distributed to retail power providers which--CommentsClose CommentsPermalink
(A) have not previously established or operated qualified tree-planting programs; orCommentsClose CommentsPermalink
(B) are operating qualified tree-planting programs which were established no more than three years prior to the date of enactment of this section.CommentsClose CommentsPermalink
(e) Agreements Between Electricity Providers and Tree-planting Organizations-CommentsClose CommentsPermalink
(1) GRANT AUTHORIZATION- In providing assistance under this section, the Secretary is authorized to award grants only to retail power providers that have entered into binding legal agreements with nonprofit tree-planting organizations.CommentsClose CommentsPermalink
(2) CONDITIONS OF AGREEMENT- Those agreements between retail power providers and tree-planting organizations shall set forth conditions under which nonprofit tree-planting organizations shall provide targeted tree-planting programs which may require these organizations to--CommentsClose CommentsPermalink
(A) participate in local technical advisory committees responsible for drafting general tree-siting guidelines and choosing the most effective species of trees to plant in given locations;CommentsClose CommentsPermalink
(B) coordinate volunteer recruitment to assist with the physical act of planting trees in residential locations;CommentsClose CommentsPermalink
(C) undertake public awareness campaigns to educate local residents about the benefits, cost savings, and availability of free shade trees;CommentsClose CommentsPermalink
(D) establish education and information campaigns to encourage recipients to maintain their shade trees over the long term;CommentsClose CommentsPermalink
(E) serve as the point of contact for existing and potential residential participants who have questions or concerns regarding the tree-planting program;CommentsClose CommentsPermalink
(F) require tree recipients to sign agreements committing to voluntary stewardship and care of provided trees;CommentsClose CommentsPermalink
(G) monitor and report on the survival, growth, overall health, and estimated energy savings of provided trees up until the end of their establishment period which shall be no less than five years; andCommentsClose CommentsPermalink
(H) ensure that trees planted near existing power lines will not interfere with energized electricity distribution lines when mature, and that no new trees will be planted under or adjacent to high-voltage electric transmission lines without prior consultation with the applicable retail power provider receiving assistance under this section.CommentsClose CommentsPermalink
(3) LACK OF NONPROFIT ORGANIZATION- If qualified nonprofit or not-for-profit tree planting organizations do not exist or operate within areas served by retail power providers applying for assistance under this section, the requirements of this section shall apply to binding legal agreements entered into by such retail power providers and one of the following entities:CommentsClose CommentsPermalink
(A) Local municipal governments with jurisdiction over the urban or suburban forest.CommentsClose CommentsPermalink
(B) The State Forester for the State in which the tree planting program will operate.CommentsClose CommentsPermalink
(C) The United States Forest Service’s Urban and Community Forestry representative for the State in which the tree-planting program will operate.CommentsClose CommentsPermalink
(D) A landscaping services company that is--CommentsClose CommentsPermalink
(i) identified in consultation with a national or State nonprofit or not-for-profit tree-planting organization;CommentsClose CommentsPermalink
(ii) licensed to operate in the State in which the tree-planting program will operate; andCommentsClose CommentsPermalink
(iii) a business as defined by the United States Census Bureau’s 2007 North American Industry Classification System Code 561730.CommentsClose CommentsPermalink
(f) Technical Advisory Committees-CommentsClose CommentsPermalink
(1) DESCRIPTION- In order to qualify for assistance under this section, the retail power provider shall establish and consult with a local technical advisory committee which shall provide advice and consultation to the program, and may--CommentsClose CommentsPermalink
(A) design and adopt an approved plant list that emphasizes the use of hardy, noninvasive tree species and, where geographically appropriate, the use of native, or site-adapted, or low water-use shade trees;CommentsClose CommentsPermalink
(B) design and adopt planting, installation, and maintenance specifications and create a process for inspection and quality control;CommentsClose CommentsPermalink
(C) ensure that tree recipients are educated to care for and maintain their trees over the long term;CommentsClose CommentsPermalink
(D) help the public become more engaged and educated in the planting and care of shade trees;CommentsClose CommentsPermalink
(E) prioritize which sites receive trees, giving preference to locations with the most potential for energy conservation and secondary preference to areas where the average annual income is below the regional median; andCommentsClose CommentsPermalink
(F) assist with monitoring and collection of data on tree health, tree survival, and energy conservation benefits generated under this section.CommentsClose CommentsPermalink
(2) COMPENSATION- Individuals serving on local technical advisory committees shall not receive compensation for their service.CommentsClose CommentsPermalink
(3) COMPOSITION- Local technical advisory committees shall be composed of representatives from public, private, and nongovernmental agencies with expertise in demand-side energy efficiency management, urban forestry, or arboriculture, and shall be composed of the following:CommentsClose CommentsPermalink
(A) Up to 4 persons, but no less than one person, representing the retail power provider receiving assistance under this section.CommentsClose CommentsPermalink
(B) Up to 4 persons, but no less than one person, representing the local tree-planting organization which will partner with the retail power provider to carry out this section.CommentsClose CommentsPermalink
(C) Up to 3 persons representing local nonprofit conservation or environmental organizations. Preference shall be given to those entities which are organized under section 501(c)(3) of the Internal Revenue Code of 1986, and which have demonstrated expertise engaging the public in energy conservation, energy efficiency, or green building practices or a combination thereof, such that no single organization is represented by more than one individual under this paragraph.CommentsClose CommentsPermalink
(D) Up to 2 persons representing a local affordable housing agency, affordable housing builder, or community development corporation.CommentsClose CommentsPermalink
(E) Up to 3, but no less than one, persons representing local city or county government for each municipality where a shade tree-planting program will take place; at least one of these representatives shall be the city or county forester, city or county arborist, or functional equivalent.CommentsClose CommentsPermalink
(F) Up to one person representing the local government agency responsible for management of roads, sewers, and infrastructure, including but not limited to public works departments, transportation agencies, or equivalents.CommentsClose CommentsPermalink
(G) Up to 3 persons representing the nursery and landscaping industry.CommentsClose CommentsPermalink
(H) Up to 3 persons representing the research community or academia with expertise in natural resources or energy management issues.CommentsClose CommentsPermalink
(4) CHAIRPERSON- Each local technical advisory committee shall elect a chairperson to preside over Committee meetings, act as a liaison to governmental and other outside entities, and direct the general operation of the committee; only committee representatives from paragraph (3)(A) or paragraph (3)(B) of this subsection shall be eligible to act as local technical advisory committee chairpersons.CommentsClose CommentsPermalink
(5) CREDENTIALS- At least one of the members of each local technical advisory committee shall be certified with one or more of the following credentials: International Society of Arboriculture; Certified Arborist, ISA; Certified Arborist Municipal Specialist, ISA; Certified Arborist Utility Specialist, ISA; Board Certified Master Arborist; or Registered Landscape Architect recommended by the American Society of Landscape Architects.CommentsClose CommentsPermalink
(g) Cost-share Program-CommentsClose CommentsPermalink
(1) FEDERAL SHARE- The Federal share of support for projects funded under this section shall not exceed 50 percent of the cost of such project and shall be provided on a matching basis.CommentsClose CommentsPermalink
(2) NON-FEDERAL SHARE- The non-Federal share of such costs may be paid or contributed by any governmental or nongovernmental entity other than from funds derived directly or indirectly from an agency or instrumentality of the United States.CommentsClose CommentsPermalink
(h) Rulemaking-CommentsClose CommentsPermalink
(1) RULEMAKING PERIOD- The Secretary shall be authorized to solicit comments and initiate a rulemaking period that shall last no more than 6 months after the date of enactment of this section.CommentsClose CommentsPermalink
(2) COMPETITIVE GRANT RULE- At the conclusion of the rulemaking period under paragraph (1), the Secretary shall promulgate a rule governing a public, competitive grants process through which retail power providers may apply for Federal support under this section.CommentsClose CommentsPermalink
(i) Nonduplicity- Nothing in this section shall be construed to supersede, duplicate, cancel, or negate the programs or authorities provided under section 9 of the Cooperative Forestry Assistance Act of 1978 (92 Stat. 369;
(j) Authorization of Appropriations- There are hereby authorized to be appropriated such sums as may be necessary for the implementation of this section.CommentsClose CommentsPermalink
SEC. 206. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.
Section 453(c)(1) of the Energy Independence and Security Act of 2007 (
Subtitle B--Lighting and Appliance Energy Efficiency ProgramsCommentsClose CommentsPermalink
Subtitle B--Lighting and Appliance Energy Efficiency ProgramsCommentsClose CommentsPermalink
SEC. 211. LIGHTING EFFICIENCY STANDARDS.
(a) Outdoor Lighting-CommentsClose CommentsPermalink
(1) DEFINITIONS-CommentsClose CommentsPermalink
(A) Section 340(1) of the Energy Policy and Conservation Act (
‘(L) Outdoor luminaires.CommentsClose CommentsPermalink
‘(M) Outdoor high light output lamps.CommentsClose CommentsPermalink
‘(N) Any other type of industrial equipment which the Secretary classifies as covered equipment under section 341(b).’.CommentsClose CommentsPermalink
(B) Section 340 of the Energy Policy and Conservation Act (
‘(25) The term ‘luminaire’ means a complete lighting unit consisting of one or more light sources and ballast(s), together with parts designed to distribute the light, to position and protect such lamps, and to connect such light sources to the power supply.CommentsClose CommentsPermalink
‘(26) The term ‘outdoor luminaire’ means a luminaire that is listed as suitable for wet locations pursuant to Underwriters Laboratories Inc. standard UL 1598 and is labeled as ‘Suitable for Wet Locations’ consistent with section 410.4(A) of the National Electrical Code 2005, or is designed for roadway illumination and meets the requirements of Addendum A for IESNA TM-15-07: Backlight, Uplight, and Glare (BUG) Ratings, except for--CommentsClose CommentsPermalink
‘(A) luminaires designed for outdoor video display images that cannot be used in general lighting applications;CommentsClose CommentsPermalink
‘(B) portable luminaires designed for use at construction sites;CommentsClose CommentsPermalink
‘(C) luminaires designed for continuous immersion in swimming pools and other water features;CommentsClose CommentsPermalink
‘(D) seasonal luminaires incorporating solely individual lamps rated at 10 watts or less;CommentsClose CommentsPermalink
‘(E) luminaires designed to be used in emergency conditions that incorporate a means of charging a battery and a device to switch the power supply to emergency lighting loads automatically upon failure of the normal power supply;CommentsClose CommentsPermalink
‘(F) components used for repair of installed luminaries and that meet the requirements of section 342(h);CommentsClose CommentsPermalink
‘(G) a luminaire utilizing an electrode-less fluorescent lamp as the light source;CommentsClose CommentsPermalink
‘(H) decorative gas lighting systems;CommentsClose CommentsPermalink
‘(I) luminaires designed explicitly for lighting for theatrical purposes, including performance, stage, film production, and video production;CommentsClose CommentsPermalink
‘(J) luminaires designed as theme elements in theme/amusement parks and that cannot be used in most general lighting applications;CommentsClose CommentsPermalink
‘(K) luminaires designed explicitly for vehicular roadway tunnels designed to comply with ANSI/IESNA RP-22-05;CommentsClose CommentsPermalink
‘(L) luminaires designed explicitly for hazardous locations meeting UL Standard 844;CommentsClose CommentsPermalink
‘(M) searchlights;CommentsClose CommentsPermalink
‘(N) luminaires that are designed to be recessed into a building, and that cannot be used in most general lighting applications;CommentsClose CommentsPermalink
‘(O) a luminaire rated only for residential applications utilizing a light source or sources regulated under the amendments made by section 321 of the Energy Independence and Security Act of 2007 and with a light output no greater than 2,600 lumens;CommentsClose CommentsPermalink
‘(P) a residential pole-mounted luminaire that is not rated for commercial use utilizing a light source or sources meeting the efficiency requirements of section 231 of the Energy Independence and Security Act of 2007 and mounted on a post or pole not taller than 10.5 feet above ground and with a light output not greater than 2,600 lumens;CommentsClose CommentsPermalink
‘(Q) a residential fixture with E12 (Candelabra) bases that is rated for not more than 300 watts total; orCommentsClose CommentsPermalink
‘(R) a residential fixture with medium screw bases that is rated for not more than 145 watts.CommentsClose CommentsPermalink
‘(27) The term ‘outdoor high light outputlamp’ means a lamp that--CommentsClose CommentsPermalink
‘(A) has a rated lumen output not less than 2601 lumens;CommentsClose CommentsPermalink
‘(B) is capable of being operated at a voltage not less than 110 volts and not greater than 300 volts, or driven at a constant current of 6.6 amperes;CommentsClose CommentsPermalink
‘(C) is not a Parabolic Aluminized Reflector lamp; andCommentsClose CommentsPermalink
‘(D) is not a J-type double-ended (T-3) halogen quartz lamp, utilizing R-7S bases, that is manufactured before January 1, 2015.CommentsClose CommentsPermalink
‘(28) The term ‘outdoor lighting control’ means a device incorporated in a luminaire that receives a signal, from either a sensor (such as an occupancy sensor, motion sensor, or daylight sensor) or an input signal (including analog or digital signals communicated through wired or wireless technology), and can adjust the light level according to the signal.’.CommentsClose CommentsPermalink
(2) STANDARDS- Section 342 of the Energy Policy and Conservation Act (
‘(g) Outdoor Luminaires-CommentsClose CommentsPermalink
‘(1) Each outdoor luminaire manufactured on or after January 1, 2011, shall--CommentsClose CommentsPermalink
‘(A) have an initial luminaire efficacy of at least 50 lumens per watt; andCommentsClose CommentsPermalink
‘(B) be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.CommentsClose CommentsPermalink
‘(2) Each outdoor luminaire manufactured on or after January 1, 2013, shall--CommentsClose CommentsPermalink
‘(A) have an initial luminaire efficacy of at least 70 lumens per watt; andCommentsClose CommentsPermalink
‘(B) be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.6.CommentsClose CommentsPermalink
‘(3) Each outdoor luminaire manufactured on or after January 1, 2015, shall--CommentsClose CommentsPermalink
‘(A) have an initial luminaire efficacy of at least 80 lumens per watt; andCommentsClose CommentsPermalink
‘(B) be designed to use a light source with a lumen maintenance, calculated as mean rated lumens divided by initial lumens, of at least 0.65.CommentsClose CommentsPermalink
‘(4) In addition to the requirements of paragraphs (1) through (3), each outdoor luminaire manufactured on or after January 1, 2011, shall have the capability of producing at least two different light levels, including 100 percent and 60 percent of full lamp output as tested with the maximum rated lamp per UL1598 or the manufacturer’s maximum specified for the luminaire under test.CommentsClose CommentsPermalink
‘(5)(A) Not later than January 1, 2017, the Secretary shall issue a final rule amending the applicable standards established in paragraphs (3) and (4) if technologically feasible and economically justified.CommentsClose CommentsPermalink
‘(B) A final rule issued under subparagraph (A) shall establish efficiency standards at the maximum level that is technically feasible and economically justified, as provided in subsections (o) and (p) of section 325. The Secretary may also, in such rulemaking, amend or discontinue the product exclusions listed in section 340(26)(A) through (P), or amend the lumen maintenance requirements in paragraph (3) if the Secretary determines that such amendments are consistent with the purposes of this Act.CommentsClose CommentsPermalink
‘(C) If the Secretary issues a final rule under subparagraph (A) establishing amended standards, the final rule shall provide that the amended standards apply to products manufactured on or after January 1, 2020, or one year after the date on which the final amended standard is published, whichever is later.CommentsClose CommentsPermalink
‘(h) Outdoor High Light Output Lamps- Each outdoor high light output lamp manufactured on or after January 1, 2012, shall have a lighting efficiency of at least 45 lumens per watt.’.CommentsClose CommentsPermalink
(3) TEST PROCEDURES- Section 343(a) of the Energy Policy and Conservation Act (
‘(10) OUTDOOR LIGHTING-CommentsClose CommentsPermalink
‘(A) With respect to outdoor luminaires and outdoor high light output lamps, the test procedures shall be based upon the test procedures specified in illuminating engineering society procedures LM-79 as of March 1, 2009, and LM-31, and/or other appropriate consensus test procedures developed by the Illuminating Engineering Society or other appropriate consensus standards bodies.CommentsClose CommentsPermalink
‘(B) If illuminating engineering society procedure LM--79 is amended, the Secretary shall amend the test procedures established in subparagraph (A) as necessary to be consistent with the amended LM-79 test procedure, unless the Secretary determines, by rule, published in the Federal Register and supported by clear and convincing evidence, that to do so would not meet the requirements for test procedures under paragraph (2).CommentsClose CommentsPermalink
‘(C) The Secretary may revise the test procedures for outdoor luminaires or outdoor high light output lamps by rule consistent with paragraph (2), and may incorporate as appropriate consensus test procedures developed by the Illuminating Engineering Society or other appropriate consensus standards bodies.’.CommentsClose CommentsPermalink
(4) PREEMPTION- Section 345 of the Energy Policy and Conservation Act (
‘(i)(1) Except as provided in paragraph (2), section 327 shall apply to outdoor luminaires to the same extent and in the same manner as the section applies under part B.CommentsClose CommentsPermalink
‘(2) Any State standard that is adopted on or before January 1, 2015, pursuant to a statutory requirement to adopt efficiency standards for reducing outdoor lighting energy use enacted prior to January 31, 2008, shall not be preempted.’.CommentsClose CommentsPermalink
(5) ENERGY EFFICIENCY STANDARDS FOR CERTAIN LUMINAIRES- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall, in consultation with the National Electrical Manufacturers Association, collect data for United States sales of luminaires described in section 340(26)(H) and (M) of the Energy Policy and Conservation Act, to determine the historical growth rate. If the Secretary finds that the growth in market share of such luminaires exceeds twice the year to year rate of the average of the previous three years, then the Secretary shall within 12 months initiate a rulemaking to determine if such exclusion should be eliminated, if substitute products exist that perform more efficiently and fulfill the performance functions of these luminaires.CommentsClose CommentsPermalink
(b) Portable Lighting-CommentsClose CommentsPermalink
(1) PORTABLE LIGHT FIXTURES-CommentsClose CommentsPermalink
(A) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act (
‘(67) ART WORK LIGHT FIXTURE- The term ‘art work light fixture’ means a light fixture designed only to be mounted directly to an art work and for the purpose of illuminating that art work.CommentsClose CommentsPermalink
‘(68) LED LIGHT ENGINE- The term ‘LED light engine’ or ‘LED light engine with integral heat sink’ means a subsystem of an LED light fixture that--CommentsClose CommentsPermalink
‘(A) includes 1 or more LED components, including--CommentsClose CommentsPermalink
‘(i) an LED driver power source with electrical and mechanical interfaces; andCommentsClose CommentsPermalink
‘(ii) an integral heat sink to provide thermal dissipation; andCommentsClose CommentsPermalink
‘(B) may be designed to accept additional components that provide aesthetic, optical, and environmental control.CommentsClose CommentsPermalink
‘(69) LED LIGHT FIXTURE- The term ‘LED light fixture’ means a complete lighting unit consisting of--CommentsClose CommentsPermalink
‘(A) an LED light source with 1 or more LED lamps or LED light engines; andCommentsClose CommentsPermalink
‘(B) parts--CommentsClose CommentsPermalink
‘(i) to distribute the light;CommentsClose CommentsPermalink
‘(ii) to position and protect the light source; andCommentsClose CommentsPermalink
‘(iii) to connect the light source to electrical power.CommentsClose CommentsPermalink
‘(70) LIGHT FIXTURE- The term ‘light fixture’ means a product designed to provide light that includes--CommentsClose CommentsPermalink
‘(A) at least 1 lamp socket; andCommentsClose CommentsPermalink
‘(B) parts--CommentsClose CommentsPermalink
‘(i) to distribute the light;CommentsClose CommentsPermalink
‘(ii) position and protect 1 or more lamps; andCommentsClose CommentsPermalink
‘(iii) to connect 1 or more lamps to a power supply.CommentsClose CommentsPermalink
‘(71) PORTABLE LIGHT FIXTURE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘portable light fixture’ means a light fixture that has a flexible cord and an attachment plug for connection to a nominal 120-volt circuit that--CommentsClose CommentsPermalink
‘(i) allows the user to relocate the product without any rewiring; andCommentsClose CommentsPermalink
‘(ii) typically can be controlled with a switch located on the product or the power cord of the product.CommentsClose CommentsPermalink
‘(B) EXCLUSIONS- The term ‘portable light fixture’ does not include--CommentsClose CommentsPermalink
‘(i) direct plug-in night lights, sun or heat lamps, medical or dental lights, portable electric hand lamps, signs or commercial advertising displays, photographic lamps, germicidal lamps, or light fixtures for marine use or for use in hazardous locations (as those terms are defined in ANSI/NFPA 70 of the National Electrical Code); orCommentsClose CommentsPermalink
‘(ii) decorative lighting strings, decorative lighting outfits, or electric candles or candelabra without lamp shades that are covered by Underwriter Laboratories (UL) standard 588, ‘Seasonal and Holiday Decorative Products’.’.CommentsClose CommentsPermalink
(B) COVERAGE-CommentsClose CommentsPermalink
(i) IN GENERAL- Section 322(a) of the Energy Policy and Conservation Act (
42 U.S.C. 6292(a) ) is amended--CommentsClose CommentsPermalink
(I) by redesignating paragraph (20) as paragraph (24); andCommentsClose CommentsPermalink
(II) by inserting after paragraph (19) the following:CommentsClose CommentsPermalink
‘(20) Portable light fixtures.’.CommentsClose CommentsPermalink
(ii) CONFORMING AMENDMENTS- Section 325(l) of the Energy Policy and Conservation Act (
(C) TEST PROCEDURES- Section 323(b) of the Energy Policy and Conservation Act (
‘(19) LED FIXTURES AND LED LIGHT ENGINES- Test procedures for LED fixtures and LED light engines shall be based on Illuminating Engineering Society of North America (IESNA) test procedure LM-79, Approved Method for Electrical and Photometric Testing of Solid-State Lighting Devices, and IESNA-approved test procedure for testing LED light engines.’.CommentsClose CommentsPermalink
(D) STANDARDS- Section 325 of the Energy Policy and Conservation Act (
(i) by redesignating subsection (ii) as subsection (oo);CommentsClose CommentsPermalink
(ii) in subsection (oo)(2), as redesignated in clause (i) of this subparagraph, by striking ‘(hh)’ each place it appears and inserting ‘(mm)’; andCommentsClose CommentsPermalink
(iii) by inserting after subsection (hh) the following:CommentsClose CommentsPermalink
‘(ii) Portable Light Fixtures-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Subject to paragraphs (2) and (3), portable light fixtures manufactured on or after January 1, 2012, shall meet 1 or more of the following requirements:CommentsClose CommentsPermalink
‘(A) Be a fluorescent light fixture that meets the requirements of the Energy Star Program for Residential Light Fixtures, Version 4.2.CommentsClose CommentsPermalink
‘(B) Be equipped with only 1 or more GU-24 line-voltage sockets, not be rated for use with incandescent lamps of any type (as defined in ANSI standards), and meet the requirements of version 4.2 of the Energy Star program for residential light fixtures.CommentsClose CommentsPermalink
‘(C) Be an LED light fixture or a light fixture with an LED light engine and comply with the following minimum requirements:CommentsClose CommentsPermalink
‘(i) Minimum light output: 200 lumens (initial).CommentsClose CommentsPermalink
‘(ii) Minimum LED light engine efficacy: 40 lumens/watt installed in fixtures that meet the minimum light fixture efficacy of 29 lumens/watt or, alternatively, a minimum LED light engine efficacy of 60 lumens/watt for fixtures that do not meet the minimum light fixture efficacy of 29 lumens/watt.CommentsClose CommentsPermalink
‘(iii) All portable fixtures shall have a minimum LED light fixture efficacy of 29 lumens/watt and a minimum LED light engine efficacy of 60 lumens/watt by January 1, 2016.CommentsClose CommentsPermalink
‘(iv) Color Correlated Temperature (CCT): 2700K through 4000K.CommentsClose CommentsPermalink
‘(v) Minimum Color Rendering Index (CRI): 75.CommentsClose CommentsPermalink
‘(vi) Power factor equal to or greater than 0.70.CommentsClose CommentsPermalink
‘(vii) Portable luminaries that have internal power supplies shall have zero standby power when the luminaire is turned off.CommentsClose CommentsPermalink
‘(viii) LED light sources shall deliver at least 70 percent of initial lumens for at least 25,000 hours.CommentsClose CommentsPermalink
‘(D)(i) Be equipped with an ANSI-designated E12, E17, or E26 screw-based socket and be prepackaged and sold together with 1 screw-based compact fluorescent lamp or screw-based LED lamp for each screw-based socket on the portable light fixture.CommentsClose CommentsPermalink
‘(ii) The compact fluorescent or LED lamps prepackaged with the light fixture shall be fully compatible with any light fixture controls incorporated into the light fixture (for example, light fixtures with dimmers shall be packed with dimmable lamps).CommentsClose CommentsPermalink
‘(iii) Compact fluorescent lamps prepackaged with light fixtures shall meet the requirements of the Energy Star Program for CFLs Version 4.0.CommentsClose CommentsPermalink
‘(iv) Screw-based LED lamps shall comply with the minimum requirements described in subparagraph (C).CommentsClose CommentsPermalink
‘(E) Be equipped with 1 or more single-ended, non-screw based halogen lamp sockets (line or low voltage), a dimmer control or high-low control, and be rated for a maximum of 100 watts.CommentsClose CommentsPermalink
‘(2) REVIEW-CommentsClose CommentsPermalink
‘(A) REVIEW- The Secretary shall review the criteria and standards established under paragraph (1) to determine if revised standards are technologically feasible and economically justified.CommentsClose CommentsPermalink
‘(B) COMPONENTS- The review shall include consideration of--CommentsClose CommentsPermalink
‘(i) whether a separate compliance procedure is still needed for halogen fixtures described in subparagraph (E) and, if necessary, what an appropriate standard for halogen fixtures shall be;CommentsClose CommentsPermalink
‘(ii) whether the specific technical criteria described in subparagraphs (A), (C), and (D)(iii) should be modified; andCommentsClose CommentsPermalink
‘(iii) which fixtures should be exempted from the light fixture efficacy standard as of January 1, 2016, because the fixtures are primarily decorative in nature (as defined by the Secretary) and, even if exempted, are likely to be sold in limited quantities.CommentsClose CommentsPermalink
‘(C) TIMING-CommentsClose CommentsPermalink
‘(i) DETERMINATION- Not later than January 1, 2014, the Secretary shall publish amended standards, or a determination that no amended standards are justified, under this subsection.CommentsClose CommentsPermalink
‘(ii) STANDARDS- Any standards under this paragraph shall take effect on January 1, 2016.CommentsClose CommentsPermalink
‘(3) ART WORK LIGHT FIXTURES- Art work light fixtures manufactured on or after January 1, 2012, shall--CommentsClose CommentsPermalink
‘(A) comply with paragraph (1); orCommentsClose CommentsPermalink
‘(B)(i) contain only ANSI-designated E12 screw-based line-voltage sockets;CommentsClose CommentsPermalink
‘(ii) have not more than 3 sockets;CommentsClose CommentsPermalink
‘(iii) be controlled with an integral high/low switch;CommentsClose CommentsPermalink
‘(iv) be rated for not more than 25 watts if fitted with 1 socket; andCommentsClose CommentsPermalink
‘(v) be rated for not more than 15 watts per socket if fitted with 2 or 3 sockets.CommentsClose CommentsPermalink
‘(4) EXCEPTION FROM PREEMPTION- Notwithstanding section 327, Federal preemption shall not apply to a regulation concerning portable light fixtures adopted by the California Energy Commission on or before January 1, 2014.’.CommentsClose CommentsPermalink
(2) GU-24 BASE LAMPS-CommentsClose CommentsPermalink
(A) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act (
42 U.S.C. 6291 ) (as amended by paragraph (1)(A)) is amended by adding at the end the following:CommentsClose CommentsPermalink‘(72) GU-24- The term ‘GU-24’ means the designation of a lamp socket, based on a coding system by the International Electrotechnical Commission, under which--CommentsClose CommentsPermalink
‘(A) ‘G’ indicates a holder and socket type with 2 or more projecting contacts, such as pins or posts;CommentsClose CommentsPermalink
‘(B) ‘U’ distinguishes between lamp and holder designs of similar type that are not interchangeable due to electrical or mechanical requirements; andCommentsClose CommentsPermalink
‘(C) 24 indicates the distance in millimeters between the electrical contact posts.CommentsClose CommentsPermalink
‘(73) GU-24 ADAPTOR-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘GU-24 Adaptor’ means a 1-piece device, pig-tail, wiring harness, or other such socket or base attachment that--CommentsClose CommentsPermalink
‘(i) connects to a GU-24 socket on 1 end and provides a different type of socket or connection on the other end; andCommentsClose CommentsPermalink
‘(ii) does not alter the voltage.CommentsClose CommentsPermalink
‘(B) EXCLUSION- The term ‘GU-24 Adaptor’ does not include a fluorescent ballast with a GU-24 base.CommentsClose CommentsPermalink
‘(74) GU-24 BASE LAMP- ‘GU-24 base lamp’ means a light bulb designed to fit in a GU-24 socket.’.CommentsClose CommentsPermalink
(B) STANDARDS- Section 325 of the Energy Policy and Conservation Act (
42 U.S.C. 6295 ) (as amended by paragraph (1)(D)) is amended by inserting after subsection (ii) the following:CommentsClose CommentsPermalink‘(jj) GU-24 Base Lamps-CommentsClose CommentsPermalink
‘(1) IN GENERAL- A GU-24 base lamp shall not be an incandescent lamp as defined by ANSI.CommentsClose CommentsPermalink
‘(2) GU-24 ADAPTORS- GU-24 adaptors shall not adapt a GU-24 socket to any other line voltage socket.’.CommentsClose CommentsPermalink
(3) STANDARDS FOR CERTAIN INCANDESCENT REFLECTOR LAMPS- Section 325(i) of the Energy Policy and Conservation Act (
42 U.S.C. 6295(i) ), as amended by section 161(a)(12) of this Act, is amended by adding at the end the following:CommentsClose CommentsPermalink‘(9) CERTAIN INCANDESCENT REFLECTOR LAMPS- (A) No later than 12 months after enactment of this paragraph, the Secretary shall publish a final rule establishing standards for incandescent reflector lamp types described in paragraph (1)(D). Such standards shall be effective on July 1, 2013.CommentsClose CommentsPermalink
‘(B) Any rulemaking for incandescent reflector lamps completed after enactment of this section shall consider standards for all incandescent reflector lamps, inclusive of those specified in paragraph (1)(C).CommentsClose CommentsPermalink
‘(10) REFLECTOR LAMPS- No later than January 1, 2015, the Secretary shall publish a final rule establishing and amending standards for reflector lamps, including incandescent reflector lamps. Such standards shall be effective no sooner than three years after publication of the final rule. Such rulemaking shall consider incandescent and nonincandescent technologies. Such rulemaking shall consider a new metric other than lumens-per-watt based on the photometric distribution of light from such lamps.’.CommentsClose CommentsPermalink
SEC. 212. OTHER APPLIANCE EFFICIENCY STANDARDS.
(a) Standards for Water Dispensers, Hot Food Holding Cabinets, and Portable Electric Spas-CommentsClose CommentsPermalink
(1) DEFINITIONS- Section 321 of the Energy Policy and Conservation Act (
‘(75) The term ‘water dispenser’ means a factory-made assembly that mechanically cools and heats potable water and that dispenses the cooled or heated water by integral or remote means.CommentsClose CommentsPermalink
‘(76) The term ‘bottle-type water dispenser’ means a drinking water dispenser designed for dispensing both hot and cold water that uses a removable bottle or container as the source of potable water.CommentsClose CommentsPermalink
‘(77) The term ‘commercial hot food holding cabinet’ means a heated, fully-enclosed compartment with one or more solid or glass doors that is designed to maintain the temperature of hot food that has been cooked in a separate appliance. Such term does not include heated glass merchandizing cabinets, drawer warmers, commercial hot food holding cabinets with interior volumes of less than 8 cubic feet, or cook-and-hold appliances.CommentsClose CommentsPermalink
‘(78) The term ‘portable electric spa’ means a factory-built electric spa or hot tub, supplied with equipment for heating and circulating water.’.CommentsClose CommentsPermalink
(2) COVERAGE- Section 322(a) of the Energy Policy and Conservation Act (
‘(21) Bottle type water dispensers.CommentsClose CommentsPermalink
‘(22) Commercial hot food holding cabinets.CommentsClose CommentsPermalink
‘(23) Portable electric spas.’.CommentsClose CommentsPermalink
(3) TEST PROCEDURES- Section 323(b) of the Energy Policy and Conservation Act (
‘(20) BOTTLE TYPE WATER DISPENSERS- Test procedures for bottle type water dispensers shall be based on ‘Energy Star Program Requirements for Bottled Water Coolers version 1.1’ published by the Environmental Protection Agency. Units with an integral, automatic timer shall not be tested using section 4D, ‘Timer Usage,’ of the test criteria.CommentsClose CommentsPermalink
‘(21) COMMERCIAL HOT FOOD HOLDING CABINETS- Test procedures for commercial hot food holding cabinets shall be based on the test procedures described in ANSI/ASTM F2140-01 (Test for idle energy rate-dry test). Interior volume shall be based on the method shown in the Environmental Protection Agency’s ‘Energy Star Program Requirements for Commercial Hot Food Holding Cabinets’ as in effect on August 15, 2003.CommentsClose CommentsPermalink
‘(22) PORTABLE ELECTRIC SPAS- Test procedures for portable electric spas shall be based on the test method for portable electric spas contained in section 1604, title 20, California Code of Regulations as amended on December 3, 2008. When the American National Standards Institute publishes a test procedure for portable electric spas, the Secretary shall revise the Department of Energy’s procedure.’.CommentsClose CommentsPermalink
(4) STANDARDS- Section 325 of the Energy Policy and Conservation Act (
‘(kk) Bottle Type Water Dispensers- Effective January 1, 2012, bottle-type water dispensers designed for dispensing both hot and cold water shall not have standby energy consumption greater than 1.2 kilowatt-hours per day.CommentsClose CommentsPermalink
‘(ll) Commercial Hot Food Holding Cabinets- Effective January 1, 2012, commercial hot food holding cabinets with interior volumes of 8 cubic feet or greater shall have a maximum idle energy rate of 40 watts per cubic foot of interior volume.CommentsClose CommentsPermalink
‘(mm) Portable Electric Spas- Effective January 1, 2012, portable electric spas shall not have a normalized standby power greater than 5(V 2/3 ) Watts where V=the fill volume in gallons.CommentsClose CommentsPermalink
‘(nn) Revisions- The Secretary of Energy shall consider revisions to the standards in subsections (kk), (ll), and (mm) in accordance with subsection (o) and publish a final rule no later than January 1, 2013 establishing such revised standards, or make a finding that no revisions are technically feasible and economically justified. Any such revised standards shall take effect January 1, 2016.’.CommentsClose CommentsPermalink
(b) Commercial Furnace Efficiency Standards- Section 342(a) of the Energy Policy and Conservation Act (
‘(11) WARM AIR FURNACES- Each warm air furnace with an input rating of 225,000 Btu per hour or more and manufactured after January 1, 2011, shall meet the following standard levels:CommentsClose CommentsPermalink
‘(A) GAS-FIRED UNITS-CommentsClose CommentsPermalink
‘(i) Minimum thermal efficiency of 80 percent.CommentsClose CommentsPermalink
‘(ii) Include an interrupted or intermittent ignition device.CommentsClose CommentsPermalink
‘(iii) Have jacket losses not exceeding 0.75 percent of the input rating.CommentsClose CommentsPermalink
‘(iv) Have either power venting or a flue damper.CommentsClose CommentsPermalink
‘(B) OIL-FIRED UNITS-CommentsClose CommentsPermalink
‘(i) Minimum thermal efficiency of 81 percent.CommentsClose CommentsPermalink
‘(ii) Have jacket losses not exceeding 0.75 percent of the input rating.CommentsClose CommentsPermalink
‘(iii) Have either power venting or a flue damper.’.CommentsClose CommentsPermalink
SEC. 213. APPLIANCE EFFICIENCY DETERMINATIONS AND PROCEDURES.
(a) Definition of Energy Conservation Standard- Section 321(6) of the Energy Policy and Conservation Act (
‘(6) ENERGY CONSERVATION STANDARD-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘energy conservation standard’ means 1 or more performance standards that--CommentsClose CommentsPermalink
‘(i) for covered products (excluding clothes washers, dishwashers, showerheads, faucets, water closets, and urinals), prescribe a minimum level of energy efficiency or a maximum quantity of energy use, determined in accordance with test procedures prescribed under section 323;CommentsClose CommentsPermalink
‘(ii) for showerheads, faucets, water closets, and urinals, prescribe a minimum level of water efficiency or a maximum quantity of water use, determined in accordance with test procedures prescribed under section 323; andCommentsClose CommentsPermalink
‘(iii) for clothes washers and dishwashers--CommentsClose CommentsPermalink
‘(I) prescribe a minimum level of energy efficiency or a maximum quantity of energy use, determined in accordance with test procedures prescribed under section 323; andCommentsClose CommentsPermalink
‘(II) may include a minimum level of water efficiency or a maximum quantity of water use, determined in accordance with those test procedures.CommentsClose CommentsPermalink
‘(B) INCLUSIONS- The term ‘energy conservation standard’ includes--CommentsClose CommentsPermalink
‘(i) 1 or more design requirements, if the requirements were established--CommentsClose CommentsPermalink
‘(I) on or before the date of enactment of this subclause;CommentsClose CommentsPermalink
‘(II) as part of a direct final rule under section 325(p)(4); orCommentsClose CommentsPermalink
‘(III) as part of a final rule published on or after January 1, 2012, andCommentsClose CommentsPermalink
‘(ii) any other requirements that the Secretary may prescribe under section 325(r).CommentsClose CommentsPermalink
‘(C) EXCLUSION- The term ‘energy conservation standard’ does not include a performance standard for a component of a finished covered product, unless regulation of the component is specifically authorized or established pursuant to this title.’.CommentsClose CommentsPermalink
(b) Adopting Consensus Test Procedures and Test Procedures in Use Elsewhere- Section 323(b) of the Energy Policy and Conservation Act (
‘(23) CONSENSUS AND ALTERNATE TEST PROCEDURES-CommentsClose CommentsPermalink
‘(A) RECEIPT OF JOINT RECOMMENDATION OR ALTERNATE TESTING PROCEDURE- On receipt of--CommentsClose CommentsPermalink
‘(i) a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates), as determined by the Secretary, and contains recommendations with respect to the testing procedure for a covered product; orCommentsClose CommentsPermalink
‘(ii) a submission of a testing procedure currently in use for a covered product by a State, nation, or group of nations--CommentsClose CommentsPermalink
‘(I) if the Secretary determines that the recommended testing procedure contained in the statement or submission is in accordance with subsection (b)(3), the Secretary may issue a final rule that establishes an energy or water conservation testing procedure that is published simultaneously with a notice of proposed rulemaking that proposes a new or amended energy or water conservation testing procedure that is identical to the testing procedure established in the final rule to establish the recommended testing procedure (referred to in this paragraph as a ‘direct final rule’); orCommentsClose CommentsPermalink
‘(II) if the Secretary determines that a direct final rule cannot be issued based on the statement or submission, the Secretary shall publish a notice of the determination, together with an explanation of the reasons for the determination.CommentsClose CommentsPermalink
‘(B) PUBLIC COMMENT- The Secretary shall solicit public comment for a period of at least 110 days with respect to each direct final rule issued by the Secretary under subparagraph (A)(ii)(I).CommentsClose CommentsPermalink
‘(C) WITHDRAWAL OF DIRECT FINAL RULES-CommentsClose CommentsPermalink
‘(i) IN GENERAL- Not later than 120 days after the date on which a direct final rule issued under subparagraph (A)(ii)(I) is published in the Federal Register, the Secretary shall withdraw the direct final rule if--CommentsClose CommentsPermalink
‘(I) the Secretary receives 1 or more adverse public comments relating to the direct final rule under subparagraph (B)or any alternative joint recommendation; andCommentsClose CommentsPermalink
‘(II) based on the rulemaking record relating to the direct final rule, the Secretary determines that such adverse public comments or alternative joint recommendation may provide a reasonable basis for withdrawing the direct final rule under paragraph (3) or any other applicable law.CommentsClose CommentsPermalink
‘(ii) ACTION ON WITHDRAWAL- On withdrawal of a direct final rule under clause (i), the Secretary shall--CommentsClose CommentsPermalink
‘(I) proceed with the notice of proposed rulemaking published simultaneously with the direct final rule as described in subparagraph (A)(ii)(I); andCommentsClose CommentsPermalink
‘(II) publish in the Federal Register the reasons why the direct final rule was withdrawn.CommentsClose CommentsPermalink
‘(iii) TREATMENT OF WITHDRAWN DIRECT FINAL RULES- A direct final rule that is withdrawn under clause (i) shall not be considered to be a final rule for purposes of subsection (b).CommentsClose CommentsPermalink
‘(D) EFFECT OF PARAGRAPH- Nothing in this paragraph authorizes the Secretary to issue a direct final rule based solely on receipt of more than 1 statement containing recommended test procedures relating to the direct final rule.’.CommentsClose CommentsPermalink
(c) Updating Television Test Methods- Section 323(b) of the Energy Policy and Conservation Act (
‘(24) TELEVISIONS- (A) On the date of enactment of this paragraph, Appendix H to Subpart B of Part 430 of the United States Code of Federal Regulations, ‘Uniform Test Method for Measuring the Energy Consumption of Television Sets’, is repealed.CommentsClose CommentsPermalink
‘(B) No later than 12 months after the date of enactment of this paragraph the Secretary shall publish in the Federal Register a final rule prescribing a new test method for televisions.’.CommentsClose CommentsPermalink
(d) Criteria for Prescribing New or Amended Standards- (1) Section 325(o)(2)(B)(i) of the Energy Policy and Conservation Act (
(A) By striking ‘and’ at the end of subclause (VI).CommentsClose CommentsPermalink
(B) By redesignating subclause (VII) as subclause (XI).CommentsClose CommentsPermalink
(C) By inserting the following new subclauses after subclause (VI):CommentsClose CommentsPermalink
‘(VII) the estimated value of the carbon dioxide and other emission reductions that will be achieved by virtue of the higher energy efficiency of the covered products resulting from the imposition of the standard;CommentsClose CommentsPermalink
‘(VIII) the estimated impact of standards for a particular product on average consumer energy prices;CommentsClose CommentsPermalink
‘(IX) the increased energy efficiency that may be attributable to the installation of Smart Grid technologies or capabilities in the covered products, if applicable in the determination of the Secretary;CommentsClose CommentsPermalink
‘(X) the availability in the United States or in other nations of examples or prototypes of covered products that achieve significantly higher efficiency standards for energy or for water; and’.CommentsClose CommentsPermalink
(2) Section 325(o)(2)(B)(iii) of such Act is amended as follows:CommentsClose CommentsPermalink
(A) By striking ‘three’ and inserting ‘5’.CommentsClose CommentsPermalink
(B) By inserting after the first sentence the following ‘For products with an average expected useful life of less than 5 years, such rebuttable presumption shall be determined utilizing 75 percent of the product’s average expected useful life as a multiplier instead of 5.’.CommentsClose CommentsPermalink
(C) By striking the last sentence and inserting the following: ‘Such a presumption may be rebutted only if the Secretary finds, based on clear, convincing, and reliable evidence, that--CommentsClose CommentsPermalink
‘(I) such standard level would cause serious and unavoidable hardship to the average consumer of the product, or to manufacturers supplying a significant portion of the market for the product, that substantially outweighs the standard level’s benefits;CommentsClose CommentsPermalink
‘(II) the standard and implementing regulations cannot be designed to avoid or mitigate the hardship identified under subclause (I), through the adoption of regional standards consistent with paragraph (6) of this subsection, or other reasonable means consistent with this part;CommentsClose CommentsPermalink
‘(III) the same or substantially similar hardship would not occur under a standard adopted in the absence of the presumption, but that otherwise meets the requirements of this section; andCommentsClose CommentsPermalink
‘(IV) the hardship cannot be avoided or mitigated pursuant the procedures specified in section 504 of the Department of Energy Organization Act (
42 U.S.C. 7194 ).CommentsClose CommentsPermalink
A determination by the Secretary that the criteria triggering such presumption are not met, or that the criterion for rebutting the presumption are met shall not be taken into consideration in the Secretary’s determination of whether a standard is economically justified.’.CommentsClose CommentsPermalink
(e) Obtaining Appliance Information From Manufacturers- Section 326(d) of the Energy Policy and Conservation Act (
‘(d) Information Requirements- (1) For purposes of carrying out this part, the Secretary shall publish proposed regulations not later than one year after the date of enactment of the American Clean Energy and Security Act of 2009, and after receiving public comment, final regulations not later than 18 months from such date of enactment under this part or other provision of law administered by the Secretary, which shall require each manufacturer of a covered product to submit information or reports to the Secretary on an annual basis in a form adopted by the Secretary. Such reports shall include information or data with respect to--CommentsClose CommentsPermalink
‘(A) the manufacturers’ compliance with all requirements applicable pursuant to this part;CommentsClose CommentsPermalink
‘(B) the economic impact of any proposed energy conservation standard;CommentsClose CommentsPermalink
‘(C) the manufacturers’ annual shipments of each class or category of covered products, organized, to the maximum extent practicable, by--CommentsClose CommentsPermalink
‘(i) energy efficiency, energy use, and, if applicable, water use;CommentsClose CommentsPermalink
‘(ii) the presence or absence of such efficiency related or energy consuming operational characteristics or components as the Secretary determines are relevant for the purposes of carrying out this part; andCommentsClose CommentsPermalink
‘(iii) the State or regional location of sale, for covered products for which the Secretary may adopt regional standards; andCommentsClose CommentsPermalink
‘(D) such other categories of information as the Secretary deems relevant to carry out this part, including such other information as may be necessary to establish and revise test procedures, labeling rules, and energy conservation standards and to insure compliance with the requirements of this part.CommentsClose CommentsPermalink
‘(2) In adopting regulations under this subsection, the Secretary shall consider existing public sources of information, including nationally recognized certification programs of trade associations.CommentsClose CommentsPermalink
‘(3) The Secretary shall exercise authority under this section in a manner designed to minimize unnecessary burdens on manufacturers of covered products.CommentsClose CommentsPermalink
‘(4) To the extent that they do not conflict with the duties of the Secretary in carrying out this part, the provisions of section 11(d) of the Energy Supply and Environmental Coordination Act of 1974 (
15 U.S.C. 796(d) ) shall apply with respect to information obtained under this subsection to the same extent and in the same manner as they apply with respect to other energy information obtained under such section.’.CommentsClose CommentsPermalink
(f) State Waiver- Section 327(c) of the Energy Policy and Conservation Act (
‘(12) is a regulation concerning standards for hot food holding cabinets, drinking water dispensers and portable electric spas adopted by the California Energy Commission on or before January 1, 2013.’.CommentsClose CommentsPermalink
(g) Waiver of Federal Preemption- Paragraph (1) of section 327(d) of the Energy Policy and Conservation Act (
(1) In subparagraph (A) by striking ‘State regulation’ each place it appears and inserting ‘State statute or regulation’.CommentsClose CommentsPermalink
(2) In subparagraph (B) by adding at the end the following new sentence: ‘In making such a finding, the Secretary may not reject a petition for failure of the petitioning State or river basin commission to produce confidential information maintained by any manufacturer or distributor, or group or association of manufacturers or distributors, and which the petitioning party does not have the legal right to obtain.’.CommentsClose CommentsPermalink
(3) In clause (ii) of subparagraph (C) by striking ‘costs’ each place it appears and inserting ‘estimated costs’.CommentsClose CommentsPermalink
(4) In subparagraph (C) by striking ‘within the context of the State’s energy plan and forecast, and,’.CommentsClose CommentsPermalink
(h) Inclusion of Carbon Output on Appliance ‘Energyguide’ Labels- (1) Section 324(a)(2) of the Energy Policy and Conservation Act (
‘(I)(i) Not later than 90 days after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to implement the additional labeling requirements specified in subsection (c)(1)(C) of this section with an effective date for the revised labeling requirement not later than 12 months from issuance of the final rule.CommentsClose CommentsPermalink
‘(ii) Not later than 24 months after the date of enactment of this subparagraph, the Commission shall complete the rulemaking initiated under clause (i).CommentsClose CommentsPermalink
‘(iii) Not later than 90 days after issuance of the final rule as provided in this subparagraph, the Secretary shall issue calculation methods required to effectuate the labeling requirements specified in subsection (c)(1)(C) of this section.’.CommentsClose CommentsPermalink
(2) Section 324(c)(1) of the Energy Policy and Conservation Act (
(A) by striking ‘and’ at the end of subparagraph (A);CommentsClose CommentsPermalink
(B) by striking the period at the end of subparagraph (B) and inserting a semicolon; andCommentsClose CommentsPermalink
(C) by adding at the end the following new subparagraphs:CommentsClose CommentsPermalink
‘(C) for products or groups of products providing a comparable function (including the group of products comprising the heating function of heat pumps and furnaces) among covered products listed in paragraphs (3), (4), (5), (8), (9), (10), and (11) of section 322(a) of this part, and others designated by the Secretary, the estimated total annual atmospheric carbon dioxide emissions (or their equivalent in other greenhouse gases) associated with, or caused by, the product, calculated utilizing--CommentsClose CommentsPermalink
‘(i) national average energy use for the product including energy consumed at the point of end use based on test procedures developed under section 323 of this part;CommentsClose CommentsPermalink
‘(ii) national average energy consumed or lost in the production, generation, transportation, storage, and distribution of energy to the point of end use; andCommentsClose CommentsPermalink
‘(iii) any direct emissions of greenhouse gases from the product during normal use;CommentsClose CommentsPermalink
‘(D) in determining the national average energy consumption and total annual atmospheric carbon dioxide emissions, the Secretary shall utilize Federal Government sources, including the Energy Information Administration Annual Energy Review, the Environmental Protection Agency eGRID data base, Environmental Protection Agency AP-42 Emission Factors as amended, and other sources determined to be appropriate by the Secretary; andCommentsClose CommentsPermalink
‘(E) information presenting, for each product (or group of products providing the comparable function) identified in section (c)(1)(C) of this section, the estimated annual carbon dioxide emissions calculated within the range of emissions calculated for all models of the product or group according to its function, including those models consuming fuels and those models not consuming fuels.’.CommentsClose CommentsPermalink
(i) Permitting States to Seek Injunctive Enforcement- (1) Section 334 of the Energy Policy and Conservation Act (
‘SEC. 334. JURISDICTION AND VENUE.
‘(a) Jurisdiction- The United States district courts shall have jurisdiction to restrain--CommentsClose CommentsPermalink
‘(1) any violation of section 332; andCommentsClose CommentsPermalink
‘(2) any person from distributing in commerce any covered product which does not comply with an applicable rule under section 324 or 325.CommentsClose CommentsPermalink
‘(b) Authority- Any action referred to in subsection (a) shall be brought by the Commission or by the attorney general of a State in the name of the State, except that--CommentsClose CommentsPermalink
‘(1) any such action to restrain any violation of section 332(a)(3) which relates to requirements prescribed by the Secretary or any violation of section 332(a)(4) which relates to request of the Secretary under section 326(b)(2) shall be brought by the Secretary; andCommentsClose CommentsPermalink
‘(2) any violation of section 332(a)(5) or 332(a)(7) shall be brought by the Secretary or by the attorney general of a State in the name of the State.CommentsClose CommentsPermalink
‘(c) Venue and Service of Process- Any such action may be brought in the United States district court for a district wherein any act, omission, or transaction constituting the violation occurred, or in such court of the district wherein the defendant is found or transacts business. In any action under this section, process may be served on a defendant in any other district in which the defendant resides or may be found.’.CommentsClose CommentsPermalink
(2) The item relating to section 334 in the table of contents for such Act is amended to read as follows:CommentsClose CommentsPermalink
‘Sec. 334. Jurisdiction and venue.’.CommentsClose CommentsPermalink
(j) Treatment of Appliances Within Building Codes- (1) Section 327(f)(3) of the Energy Policy and Conservation Act (
42 U.S.C. 6297(f)(3) ) is amended by striking subparagraphs (B) through (G) and inserting the following:CommentsClose CommentsPermalink
‘(B) The code meets at least one of the following requirements:CommentsClose CommentsPermalink
‘(i) The code does not require that the covered product have an energy efficiency exceeding--CommentsClose CommentsPermalink
‘(I) the applicable energy conservation standard established in or prescribed under section 325;CommentsClose CommentsPermalink
‘(II) the level required by a regulation of that State for which the Secretary has issued a rule granting a waiver under subsection (d) of this section; orCommentsClose CommentsPermalink
‘(III) the required level established in the International Energy Conservation Code or in a standard of the American Society of Heating, Refrigerating and Air-Conditioning Engineers, or by the Secretary pursuant to section 304 of the Energy Conservation and Production Act.CommentsClose CommentsPermalink
‘(ii) If the code uses one or more baseline building designs against which all submitted building designs are to be evaluated and such baseline building designs contain a covered product subject to an energy conservation standard established in or prescribed under section 325, the baseline building designs are based on an efficiency level for such covered product which meets but does not exceed one of the levels specified in clause (i).CommentsClose CommentsPermalink
‘(iii) If the code sets forth one or more optional combinations of items which meet the energy consumption or conservation objective, in at least one combination that the State has found to be reasonably achievable using commercially available technologies the efficiency of the covered product meets but does not exceed one of the levels specified in clause (i).CommentsClose CommentsPermalink
‘(C) The credit to the energy consumption or conservation objective allowed by the code for installing covered products having energy efficiencies exceeding one of the levels specified in subparagraph (B)(i) is on a one-for-one equivalent energy use or equivalent energy cost basis, taking into account the typical lifetime of the product.CommentsClose CommentsPermalink
‘(D) The energy consumption or conservation objective is specified in terms of an estimated total consumption of energy (which may be calculated from energy loss- or gain-based codes) utilizing an equivalent amount of energy (which may be specified in units of energy or its equivalent cost) and equivalent lifetimes.CommentsClose CommentsPermalink
‘(E) The estimated energy use of any covered product permitted or required in the code, or used in calculating the objective, is determined using the applicable test procedures prescribed under section 323, except that the State may permit the estimated energy use calculation to be adjusted to reflect the conditions of the areas where the code is being applied if such adjustment is based on the use of the applicable test procedures prescribed under section 323 or other technically accurate documented procedure.’.CommentsClose CommentsPermalink
(2) Section 327(f)(4)(B) of the Energy Policy and Conservation Act (
42 U.S.C. 6297(f)(4)(B) ) is amended to read as follows:CommentsClose CommentsPermalink‘(B) If a building code requires the installation of covered products with efficiencies exceeding the levels and requirements specified in paragraph (3)(B), such requirement of the building code shall not be applicable unless the Secretary has granted a waiver for such requirement under subsection (d) of this section.’.CommentsClose CommentsPermalink
SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PROGRAM.
(a) In General- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in consultation with the Administrator, shall establish a program to be known as the ‘Best-in-Class Appliances Deployment Program’ to--CommentsClose CommentsPermalink
(1) provide bonus payments to retailers or distributors under subsection (c) for sales of best-in-class high-efficiency household appliance models, high-efficiency installed building equipment, and high-efficiency consumer electronics, with the goal of reducing life-cycle costs for consumers, encouraging innovation, and maximizing energy savings and public benefit;CommentsClose CommentsPermalink
(2) provide bounties under subsection (d) to retailers and manufacturers for the replacement, retirement, and recycling of old, inefficient, and environmentally harmful products; andCommentsClose CommentsPermalink
(3) provide premium awards under subsection (e) to manufacturers for developing and producing new Superefficient Best-in-Class Products.CommentsClose CommentsPermalink
(b) Designation of Best-in-Class Product Models-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary of Energy shall designate product models of appliances, equipment, or electronics as Best-in-Class Product models. The Secretary shall publicly announce the Best-in-Class Product models designated under this subsection. The Secretary shall define product classes broadly and, except as provided in paragraph (2), shall designate as Best-in-Class Product models no more than the most efficient 10 percent of the commercially available product models in a class that demonstrate, as a group, a distinctly greater energy efficiency than the average energy efficiency of that class of appliances, equipment, or electronics. In designating models, the Secretary shall--CommentsClose CommentsPermalink
(A) identify commercially available models in the relevant class of products;CommentsClose CommentsPermalink
(B) identify the subgroup of those models that share the distinctly higher energy-efficiency characteristics that warrant designation as best-in-class; andCommentsClose CommentsPermalink
(C) add other models in that class to the list of Best-in-Class Product models as they demonstrate their ability to meet the higher-efficiency characteristics on which the designation was made.CommentsClose CommentsPermalink
(2) PERCENTAGE EXCEPTION- If there are fewer than 10 product models in a class of products, the Secretary may designate one or more of such models as Best-in-Class Products.CommentsClose CommentsPermalink
(3) REVIEW OF BEST-IN-CLASS STANDARDS- The Secretary shall review annually the product-specific criteria for designating, and the product models that qualify as, Best-in-Class Products and, after notice and a 30-day comment period, make upwards adjustments in the efficiency criteria as necessary to maintain an appropriate ratio of such product models to the total number of product models in the product class.CommentsClose CommentsPermalink
(4) SMART GRID ENERGY EFFICIENCY SAVINGS- The Secretary shall include energy efficiency savings achieved by a commercially available product having smart grid capability in determining the efficiency level of a product for purposes of a Best-In-Class Product designation pursuant to this subsection. In measuring energy efficiency savings achieved by smart grid capability, the Secretary shall use a metric that--CommentsClose CommentsPermalink
(A) is based on the time-differentiated value and amount of energy consumption;CommentsClose CommentsPermalink
(B) accounts for the capability of the product to respond to a smart grid in which the physical capability of the product to save or delay energy because of a smart grid feature is weighted by the likelihood that the feature will be used;CommentsClose CommentsPermalink
(C) is based on the value of a unit of electric or gas consumption as a function of time of day and season; andCommentsClose CommentsPermalink
(D) includes a test method by which the manufacturer shall determine the energy efficiency of smart grid capable products.CommentsClose CommentsPermalink
(c) Bonuses for Sales of Best-in-Class Products-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary of Energy shall make bonus payments to retailers or, as provided in paragraph (5)(B), distributors for the sale of Best-in-Class Products.CommentsClose CommentsPermalink
(2) BONUS PROGRAM- The Secretary shall--CommentsClose CommentsPermalink
(A) publicly announce the availability and amount of the bonus to be paid for each sale of a Best-in-Class Product of a model designated under subsection (b); andCommentsClose CommentsPermalink
(B) make bonus payments in at least that amount for each Best-in-Class Product of that model sold during the 3-year period beginning on the date the model is designated under subsection (b).CommentsClose CommentsPermalink
(3) UPGRADE OF BEST-IN-CLASS PRODUCT ELIGIBILITY- In conducting a review under subsection (b)(3), the Secretary shall--CommentsClose CommentsPermalink
(A) consider designating as a Best-in-Class Product model a Superefficient Best-in-Class Product model that has been designated pursuant to subsection (e);CommentsClose CommentsPermalink
(B) announce any change in the bonus payment as necessary to increase the market share of Best-in-Class Product models;CommentsClose CommentsPermalink
(C) list models that will be eligible for bonuses in the new amount; andCommentsClose CommentsPermalink
(D) continue paying bonus payments at the original level, for the sale of any models that previously qualified as Best-in-Class Products but do not qualify at the new level, for the remainder of the 3-year period announced with the original designation.CommentsClose CommentsPermalink
(4) SIZE OF INDIVIDUAL BONUS PAYMENTS- (A) The size of each bonus payment under this subsection shall be the product of--CommentsClose CommentsPermalink
(i) an amount determined by the Secretary; andCommentsClose CommentsPermalink
(ii) the difference in energy consumption between the Best-in-Class Product and the average product in the product class.CommentsClose CommentsPermalink
(B) The Secretary shall determine the amount under subparagraph (A)(i) for each product type, in consultation with State and utility efficiency program administrators as well as the Administrator, based on estimates of the amount of bonus payment that would provide significant incentive to increase the market share of Best-in-Class Products.CommentsClose CommentsPermalink
(5) ELIGIBLE BONUS RECIPIENT- (A) The Secretary shall ensure that not more than 1 bonus payment is provided under this subsection for each Best-in-Class Product.CommentsClose CommentsPermalink
(B) The Secretary may make distributors eligible to receive bonus payments under this subsection for sales that are not to the final end-user, to the extent that the Secretary determines that for a particular product category distributors are well situated to increase sales of Best-in-Class Products.CommentsClose CommentsPermalink
(d) Bounties for Replacement, Retirement, and Recycling of Existing Low-Efficiency Products-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary of Energy shall make bounty payments to--CommentsClose CommentsPermalink
(A) retailers for the replacement, retirement, and recycling of older operating low-efficiency products that might otherwise continue in operation; andCommentsClose CommentsPermalink
(B) manufacturers of Superefficient Best-in-Class Products for the retirement and recycling of older operating low-efficiency products that perform the same function and which might otherwise continue in operation.CommentsClose CommentsPermalink
(2) BOUNTIES- Bounties shall be payable--CommentsClose CommentsPermalink
(A) to a retailer upon documentation that the sale of a Best-in-Class Product was accompanied by the replacement, retirement, and recycling of--CommentsClose CommentsPermalink
(i) an inefficient but still-functioning product; orCommentsClose CommentsPermalink
(ii) a nonfunctioning product containing a refrigerant, by the consumer to whom the Best-in-Class Product was sold; andCommentsClose CommentsPermalink
(B) to a manufacturer upon documentation of the retirement and recycling of--CommentsClose CommentsPermalink
(i) an inefficient but still-functioning product from a consumer to whom a Superefficient Best-in-Class Product was delivered; orCommentsClose CommentsPermalink
(ii) a nonfunctioning product containing a refrigerant from a consumer to whom a Superefficient Best-in-Class Product was delivered.CommentsClose CommentsPermalink
(3) AMOUNT-CommentsClose CommentsPermalink
(A) FUNCTIONING PRODUCTS- The bounty payment payable under this subsection for a product described in paragraphs (2)(A)(i) and (2)(B)(i) shall be based on the difference between the estimated energy use of the product replaced and the energy use of an average new product in the product class, over the estimated remaining lifetime of the product that was replaced.CommentsClose CommentsPermalink
(B) NONFUNCTIONING PRODUCTS CONTAINING REFRIGERANTS- The bounty payment payable under this subsection for a product described in paragraphs (2)(A)(ii) and (2)(B)(ii) shall be in the amount that the Secretary of Energy, in consultation with the Administrator, determines is sufficient to promote the recycling of such products, up to the amount of bounty for a comparable product described in paragraphs (2)(A) and (2)(B).CommentsClose CommentsPermalink
(4) RETIREMENT- The Secretary shall ensure that no product for which a bounty is paid under this subsection is returned to active service, but that it is instead destroyed, and recycled to the extent feasible.CommentsClose CommentsPermalink
(5) RECYCLING APPLIANCES CONTAINING REFRIGERANTS- Exclusively for the purpose of implementing the bounty payment program for products containing a refrigerant under this section, the Administrator shall establish standards for environmentally responsible methods of recycling and disposal of refrigerant-containing appliances that, at a minimum, meet the requirements set by the Responsible Appliance Disposal (RAD) Program for refrigerant disposal. The Secretary shall ensure that such standards are met before a bounty payment is made under this subsection for a product containing a refrigerant. Nothing in this section shall be interpreted to alter the requirements of section 608 of the Clean Air Act or to relieve any person from complying with those requirements.CommentsClose CommentsPermalink
(e) Premium Awards for Development and Production of Superefficient Best-in-Class Products-CommentsClose CommentsPermalink
(1) IN GENERAL- (A) The Secretary of Energy shall provide premium awards to manufacturers for the development and production of Superefficient Best-in-Class Products. The Secretary shall set and periodically revise standards for eligibility of products for designation as a Superefficient Best-in-Class Product.CommentsClose CommentsPermalink
(B) The Secretary may establish a standard for a Superefficient Best-in-Class Product even if no product meeting that standard exists, if the Secretary has reasonable grounds to conclude that a mass-producible product could be made to meet that standard.CommentsClose CommentsPermalink
(C) The Secretary may also establish a Superefficient Best-in-Class Product standard that is met by one or more existing Best-in-Class Product models, if those product models have distinct energy efficiency attributes and performance characteristics that make them significantly better than other product models qualifying as best-in-class. The Secretary may not designate as Superefficient Best-in-Class Products under this subparagraph models that represent more than 10 percent of the currently qualifying Best-in-Class Product models. This subparagraph shall not apply to products designated pursuant to paragraph (4)(A).CommentsClose CommentsPermalink
(D) In making its finding on the efficiency level a product can achieve for purposes of a Superefficient Best-In-Class Product designation pursuant to this paragraph, the Secretary shall include energy efficiency savings that would be achieved by a product as a result of smart grid capability when a product having such capability can be produced and sold commercially to mass market consumers. In measuring energy efficiency savings achieved by smart grid capability, the Secretary shall use a metric that-CommentsClose CommentsPermalink
(i) is based on the time-differentiated value and amount of energy consumption;CommentsClose CommentsPermalink
(ii) accounts for the capability of the product to respond to a smart grid in which the physical capability of the product to save or delay energy because of a smart grid feature is weighted by the likelihood that the feature will be used;CommentsClose CommentsPermalink
(iii) is based on the value of a unit of electric or gas consumption as a function of time of day and season; andCommentsClose CommentsPermalink
(iv) includes a test method by which the manufacturer shall determine the energy efficiency of smart grid capable products.CommentsClose CommentsPermalink
(2) PREMIUM AWARDS- (A) The premium award payment provided to a manufacturer under this subsection shall be in addition to any bonus payments made under subsection (c).CommentsClose CommentsPermalink
(B) The amount of the premium award paid per unit of Superefficient Best-in-Class Products sold to retailers or distributors shall, except as provided by subparagraph (F), be the product of--CommentsClose CommentsPermalink
(i) an amount determined by the Secretary; andCommentsClose CommentsPermalink
(ii) the difference in energy consumption between the Superefficient Best-in-Class Product and the average product in the product class.CommentsClose CommentsPermalink
(C) The Secretary shall determine the amount under subparagraph (B)(i) for each product type, in consultation with State and utility efficiency program administrators as well as the Administrator, based on consideration of the present value to the Nation of the energy (and water or other resources or inputs) saved over the useful life of the product. The Secretary may also take into consideration the methods used to increase sales of qualifying products in determining such amount.CommentsClose CommentsPermalink
(D) The Secretary may adjust the value described in subparagraph (C) upward or downward as appropriate, including based on the effect of the premium awards on the sales of products in different classes that may be affected by the program under this subsection.CommentsClose CommentsPermalink
(E) Premium award payments shall be applied to sales of any Superefficient Best-in-Class Product for the first 3 years after designation as a Superefficient Best-in-Class Product.CommentsClose CommentsPermalink
(F) For years 2011 through 2013, the Secretary shall make bonus payments to manufacturers of the products designated in paragraph (4)(A) for each product produced in the following amounts:CommentsClose CommentsPermalink
(i) $75 for each dishwasher.CommentsClose CommentsPermalink
(ii) $250 for each clothes washer.CommentsClose CommentsPermalink
(iii) $200 for each refrigerator or refrigerator-freezer.CommentsClose CommentsPermalink
(iv) $250 for each clothes dryer.CommentsClose CommentsPermalink
(v) $200 for each cooking product.CommentsClose CommentsPermalink
(vi) $300 for each water heater.CommentsClose CommentsPermalink
(3) COORDINATION OF INCENTIVES- No product for which Federal tax credit is received under section 45M of the Internal Revenue Code of 1986 shall be eligible to receive premium award payments pursuant to this subsection.CommentsClose CommentsPermalink
(4) DESIGNATIONS-CommentsClose CommentsPermalink
(A) INITIAL DESIGNATIONS- Notwithstanding any other provisions of this section, the products the Secretary shall designate as a Superefficient Best-In-Class Product include, but are not limited to, the following products manufactured in 2011 through 2013:CommentsClose CommentsPermalink
(i) A dishwasher, clothes washer, refrigerator, or refrigerator-freezer that meets the highest efficiency performance standards in its product category as provided in Section 305(b) of the Emergency Economic Stabilization Act of 2008 and has the smart grid capability specified in paragraph (5).CommentsClose CommentsPermalink
(ii) A water heater that meets an efficiency standard that is the same or equivalent to the standard provided in Section 1333 of the Energy Policy Act of 2005 and has the smart grid capability specified in paragraph (5).CommentsClose CommentsPermalink
(iii) A clothes dryer or cooking product that the Secretary determines meets the standards specified in subsection (j)(3), which the Secretary shall promulgate no later than one year after the date of enactment, and has the smart grid capability specified in paragraph (5).CommentsClose CommentsPermalink
(B) EXTENSION OF INITIAL DESIGNATIONS-CommentsClose CommentsPermalink
(i) GENERAL- The Secretary shall in 2013 extend the Superefficient Best-In-Class Product designation of each product specified in subparagraph (A)(i) through (iii) through 2017, provided that for each product designation extended--CommentsClose CommentsPermalink
(I) the extension will result in significant energy efficiency savings;CommentsClose CommentsPermalink
(II) the product meets the Superefficient Best-In-Class Product criteria specified in paragraph (1);CommentsClose CommentsPermalink
(III) the eligibility standards of the product include the smart grid capability specified in paragraph (5); andCommentsClose CommentsPermalink
(IV) the Secretary makes appropriate revisions to the eligibility standards of the product as provided by paragraph (1).CommentsClose CommentsPermalink
(ii) AWARDS- If a Superefficient Best-In-Class Product designation for a product is extended pursuant to this subparagraph, the premium award for the product shall be determined in accordance with paragraph (2).CommentsClose CommentsPermalink
(5) SMART GRID CAPABILITY-CommentsClose CommentsPermalink
(A) Until the Secretary promulgates criteria under subparagraph (B), the term ‘smart grid capability’ means capability of receiving and interpreting time-of-use pricing and peak-load-shed signals from a utility and--CommentsClose CommentsPermalink
(i) in the case of a cooking product, reducing a minimum of 20 percent during peak demand as measured by the tested average wattage over the course of a typical operating cycle of the product; orCommentsClose CommentsPermalink
(ii) in the case of a clothes washer, a refrigerator, a dishwasher, a dryer and a water heater, reducing a minimum of 50 percent during peak demand as measured by the tested average wattage over the course of a typical operating cycle of the product, provided that the typical operating cycle of a refrigerator and a water heater shall be a 24-hour period.CommentsClose CommentsPermalink
(B) After completion of the analysis required under section 142(b) of this Act, the Secretary shall expeditiously promulgate, after notice and a 30-day public comment period, criteria for what constitutes ‘smart grid capability.’CommentsClose CommentsPermalink
(f) Reporting- The Secretary of Energy shall require, as a condition of receiving a bonus, bounty, or premium award under this section, that a report containing the following documentation be provided:CommentsClose CommentsPermalink
(1) For retailers and distributors, the number of units sold within each product type, and model-specific wholesale purchase prices and retail sale prices, on a monthly basis.CommentsClose CommentsPermalink
(2) For manufacturers, model-specific energy efficiency and consumption data.CommentsClose CommentsPermalink
(3) For manufacturers, on an immediate basis, information concerning any product design or function changes that affect the energy consumption of the unit.CommentsClose CommentsPermalink
(4) The methods used to increase the sales of qualifying products.CommentsClose CommentsPermalink
(g) Monitoring and Verification Protocols- The Secretary of Energy shall establish monitoring and verification protocols for energy consumption tests for each product model and for sales of energy-efficient models. The Secretary shall estimate actual savings of energy from the use of Smart Grid capability in appliances for which premium award payments are made pursuant to subsection (e) as a function of utility and consumer readiness to utilize such capability.CommentsClose CommentsPermalink
(h) Disclosure- The Secretary of Energy may require that manufacturers, retailers and distributors disclose publicly and to consumers their participation in the program under this section.CommentsClose CommentsPermalink
(i) Cost-Effectiveness Requirement-CommentsClose CommentsPermalink
(1) REQUIREMENT- The Secretary of Energy shall make cost-effectiveness a top priority in designing the program under, and administering, this section, except that the cost-effectiveness of providing premium awards to manufacturers under subsection (e), in aggregate, may be lower by this measure than that of the bonuses and bounties to retailers and distributors under subsections (c) and (d).CommentsClose CommentsPermalink
(2) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink
(A) COST-EFFECTIVENESS- The term ‘cost-effectiveness’ means a measure of aggregate savings in the cost of energy over the lifetime of a product in relation to the cost to the Secretary of the bonuses, bounties, and premium awards provided under this section for a product.CommentsClose CommentsPermalink
(B) SAVINGS- The term ‘savings’ means the cumulative megawatt-hours of electricity or million British thermal units of other fuels saved by a product during the projected useful life of the product, in comparison to projected energy consumption of the average product in the same class, taking into consideration the impact of any documented measures to replace, retire, and recycle low-efficiency products at the time of purchase of highly-efficient substitutes.CommentsClose CommentsPermalink
(j) Definitions- In this section--CommentsClose CommentsPermalink
(1) the term ‘distributor’ mean an individual, organization, or company that sells products in multiple lots and not directly to end-users;CommentsClose CommentsPermalink
(2) the term ‘retailer’ means an individual, organization, or company that sells products directly to end-users;CommentsClose CommentsPermalink
(3) the term ‘manufacturer’ means an individual, organization, or company that transforms raw materials into mass-producible finished goods; andCommentsClose CommentsPermalink
(4) the term ‘Superefficient Best-in-Class Product’ means a product that--CommentsClose CommentsPermalink
(A) can be mass produced; andCommentsClose CommentsPermalink
(B) achieves the highest level of efficiency that the Secretary of Energy finds can, given the current state of technology, be produced and sold commercially to mass-market consumers.CommentsClose CommentsPermalink
(k) Authorization of Appropriations- There are authorized to be appropriated $600,000,000 for each of the fiscal years 2011 through 2013 to the Secretary of Energy for purposes of this section, and such sums as may be necessary for subsequent fiscal years. Of funds appropriated, not more than 10 percent for any fiscal year may be expended on program administration, and not less than 40 percent of any funds appropriated during fiscal years 2011 through 2013 shall be for purposes of subsection (e).CommentsClose CommentsPermalink
SEC. 215. WATERSENSE.
(a) In General- There is established within the Environmental Protection Agency a WaterSense program to identify and promote water efficient products, buildings and landscapes, and services in order--CommentsClose CommentsPermalink
(1) to reduce water use;CommentsClose CommentsPermalink
(2) to reduce the strain on water, wastewater, and stormwater infrastructure;CommentsClose CommentsPermalink
(3) to conserve energy used to pump, heat, transport, and treat water; andCommentsClose CommentsPermalink
(4) to preserve water resources for future generations,CommentsClose CommentsPermalink
through voluntary labeling of, or other forms of communications about, products, buildings and landscapes, and services that meet the highest water efficiency and performance standards.CommentsClose CommentsPermalink
(b) Duties- The Administrator shall--CommentsClose CommentsPermalink
(1) promote WaterSense labeled products, buildings and landscapes, and services in the market place as the preferred technologies and services for--CommentsClose CommentsPermalink
(A) reducing water use; andCommentsClose CommentsPermalink
(B) ensuring product and service performance;CommentsClose CommentsPermalink
(2) work to enhance public awareness of the WaterSense label through public outreach, education, and other means;CommentsClose CommentsPermalink
(3) establish and maintain performance standards so that products, buildings and landscapes, and services labeled with the WaterSense label perform as well or better than their less efficient counterparts;CommentsClose CommentsPermalink
(4) publicize the need for proper installation and maintenance of WaterSense products by a licensed, and where certification guidelines exist, WaterSense-certified professional to ensure optimal performance;CommentsClose CommentsPermalink
(5) preserve the integrity of the WaterSense label;CommentsClose CommentsPermalink
(6) regularly review and, when appropriate, update WaterSense criteria for categories of products, buildings and landscapes, and services, at least once every four years;CommentsClose CommentsPermalink
(7) to the extent practical, regularly estimate and make available to the public the production and relative market shares of WaterSense labeled products, buildings and landscapes, and services, at least annually;CommentsClose CommentsPermalink
(8) to the extent practical, regularly estimate and make available to the public the water and energy savings attributable to the use of WaterSense labeled products, buildings and landscapes, and services, at least annually;CommentsClose CommentsPermalink
(9) solicit comments from interested parties and the public prior to establishing or revising a WaterSense category, specification, installation criterion, or other criterion (or prior to effective dates for any such category, specification, installation criterion, or other criterion);CommentsClose CommentsPermalink
(10) provide reasonable notice to interested parties and the public of any changes (including effective dates), on the adoption of a new or revised category, specification, installation criterion, or other criterion, along with--CommentsClose CommentsPermalink
(A) an explanation of changes; andCommentsClose CommentsPermalink
(B) as appropriate, responses to comments submitted by interested parties;CommentsClose CommentsPermalink
(11) provide appropriate lead time (as determined by the Administrator) prior to the applicable effective date for a new or significant revision to a category, specification, installation criterion, or other criterion, taking into account the timing requirements of the manufacturing, marketing, training, and distribution process for the specific product, building and landscape, or service category addressed; andCommentsClose CommentsPermalink
(12) identify and, where appropriate, implement other voluntary approaches in commercial, institutional, residential, municipal, and industrial sectors to encourage reuse and recycling technologies, improve water efficiency, or lower water use while meeting, where applicable, the performance standards established under paragraph (3).CommentsClose CommentsPermalink
(c) Authorization of Appropriations- There are authorized to be appropriated $7,500,000 for fiscal year 2010, $10,000,000 for fiscal year 2011, $20,000,000 for fiscal year 2012, and $50,000,000 for fiscal year 2013 and each year thereafter, adjusted for inflation, to carry out this section.CommentsClose CommentsPermalink
SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) AGENCY- The term ‘agency’ has the meaning given that term in
(2) WATERSENSE PRODUCT OR SERVICE- The term ‘WaterSense product or service’ means a product or service that is rated for water efficiency under the WaterSense program.CommentsClose CommentsPermalink
(3) WATERSENSE PROGRAM- The term ‘WaterSense program’ means the program established by section 215 of this Act.CommentsClose CommentsPermalink
(4) FEMP DESIGNATED PRODUCT- The term ‘FEMP designated product’ means a product that is designated under the Federal Energy Management Program of the Department of Energy as being among the highest 25 percent of equivalent products for efficiency.CommentsClose CommentsPermalink
(5) PRODUCT AND SERVICE- The terms ‘product’ and ‘service’ do not include any water consuming product or service designed or procured for combat or combat-related missions. The terms also exclude products or services already covered by the Federal procurement regulations established under section 553 of the National Energy Conservation Policy Act (
(b) Procurement of Water Efficient Products-CommentsClose CommentsPermalink
(1) REQUIREMENT- To meet the requirements of an agency for a water consuming product or service, the head of the agency shall, except as provided in paragraph (2), procure--CommentsClose CommentsPermalink
(A) a WaterSense product or service; orCommentsClose CommentsPermalink
(B) a FEMP designated product.CommentsClose CommentsPermalink
A WaterSense plumbing product should preferably, when possible, be installed by a licensed and, when WaterSense certification guidelines exist, WaterSense-certified plumber or mechanical contractor, and a WaterSense irrigation system should preferably, when possible, be installed, maintained, and audited by a WaterSense-certified irrigation professional to ensure optimal performance.CommentsClose CommentsPermalink
(2) EXCEPTIONS- The head of an agency is not required to procure a WaterSense product or service or FEMP designated product under paragraph (1) if the head of the agency finds in writing that--CommentsClose CommentsPermalink
(A) a WaterSense product or service or FEMP designated product is not cost-effective over the life of the product, taking energy and water cost savings into account; orCommentsClose CommentsPermalink
(B) no WaterSense product or service or FEMP designated product is reasonably available that meets the functional requirements of the agency.CommentsClose CommentsPermalink
(3) PROCUREMENT PLANNING- The head of an agency shall incorporate into the specifications for all procurements involving water consuming products and systems, including guide specifications, project specifications, and construction, renovation, and services contracts that include provision of water consuming products and systems, and into the factors for the evaluation of offers received for the procurement, criteria used for rating WaterSense products and services and FEMP designated products. The head of an agency shall consider, to the maximum extent practicable, additional measures for reducing agency water consumption, including water reuse technologies, leak detection and repair, and use of waterless products that perform similar functions to existing water-consuming products.CommentsClose CommentsPermalink
(c) Regulations- Not later than 180 days after the date of enactment of this Act, the Secretary of Energy, working in coordination with the Administrator, shall issue guidelines to carry out this section.CommentsClose CommentsPermalink
SEC. 217. WATER EFFICIENT PRODUCT REBATE PROGRAMS.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) ELIGIBLE STATE- The term ‘eligible State’ means a State that meets the requirements of subsection (b).CommentsClose CommentsPermalink
(2) RESIDENTIAL WATER EFFICIENT PRODUCT OR SERVICE- The term ‘residential water efficient product or service’ means a product or service for a residence or its landscape that is rated for water efficiency and performance--CommentsClose CommentsPermalink
(A) by the WaterSense program, where a WaterSense specification does not exist; orCommentsClose CommentsPermalink
(B) by a State program and approved by the Administrator.CommentsClose CommentsPermalink
Categories of water efficient products and services may include faucets, irrigation technologies and services, point-of-use water treatment devices, reuse and recycling technologies, toilets, and showerheads.CommentsClose CommentsPermalink
(3) STATE PROGRAM- The term ‘State program’ means a State program for administering rebates or vouchers for consumer purchase of water efficient products and services as described in subsection (b)(1).CommentsClose CommentsPermalink
(4) WATERSENSE PROGRAM- The term ‘WaterSense program’ means the program established by section 215 of this Act.CommentsClose CommentsPermalink
(b) Eligible States- A State shall be eligible to receive an allocation under subsection (c) if the State--CommentsClose CommentsPermalink
(1) establishes (or has established) a State program to provide rebates or vouchers to residential consumers for the purchase of residential water efficient products or services to replace used products of the same type;CommentsClose CommentsPermalink
(2) submits an application for the allocation at such time, in such form, and containing such information as the Administrator may require; andCommentsClose CommentsPermalink
(3) provides assurances satisfactory to the Administrator that the State will use the allocation to supplement, but not supplant, funds made available to carry out the State program.CommentsClose CommentsPermalink
(c) Amount of Allocations-CommentsClose CommentsPermalink
(1) IN GENERAL- Subject to paragraph (2), for each fiscal year, the Administrator shall allocate to each eligible State to carry out subsection (d) an amount equal to the product obtained by multiplying the amount made available under subsection (g) for the fiscal year by the ratio that the population of the State in the most recent calendar year for which data are available bears to the total population of all eligible States in that calendar year.CommentsClose CommentsPermalink
(2) MINIMUM ALLOCATIONS- For each fiscal year, the amounts allocated under this subsection shall be adjusted proportionately so that no eligible State is allocated a sum that is less than an amount determined by the Administrator.CommentsClose CommentsPermalink
(d) Use of Allocated Funds- Funds allocated to a State under subsection (c) may be used to pay up to 50 percent of the cost of establishing and carrying out a State program.CommentsClose CommentsPermalink
(e) Fixture Recycling- States are encouraged to promote or implement fixture recycling programs to manage the disposal of older fixtures replaced due to the rebate program under this section.CommentsClose CommentsPermalink
(f) Issuance of Rebates- Rebates or vouchers may be provided to residential consumers that meet the requirements of the State program. The State may issue all rebates or vouchers directly to residential consumers or, with approval of the Administrator, delegate some or all rebate and voucher administration to other organizations including, but not limited to, local governments, municipal water authorities, and water utilities. The amount of a rebate or voucher shall be determined by the State, taking into consideration--CommentsClose CommentsPermalink
(1) the amount of the allocation to the State under subsection (c);CommentsClose CommentsPermalink
(2) the amount of any Federal or State tax incentive available for the purchase of the residential water efficient product or service;CommentsClose CommentsPermalink
(3) the amount necessary to change consumer behavior to purchase water efficient products and services; andCommentsClose CommentsPermalink
(4) the consumer expenditures for onsite preparation, assembly, and original installation of the product.CommentsClose CommentsPermalink
(g) Authorization of Appropriations- There are authorized to be appropriated to the Administrator to carry out this section $50,000,000 for each of the fiscal years 2010 and 2011, $75,000,000 for fiscal year 2012, $100,000,000 for fiscal year 2013, and $150,000,000 for fiscal year 2014 and each year thereafter, adjusted for inflation.CommentsClose CommentsPermalink
SEC. 218. CERTIFIED STOVES PROGRAM.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) AGENCY- The term ‘Agency’ means the Environmental Protection Agency.CommentsClose CommentsPermalink
(2) WOOD STOVE OR PELLET STOVE- The term ‘wood stove or pellet stove’ means a wood stove, pellet stove, or fireplace insert that uses wood or pellets for fuel.CommentsClose CommentsPermalink
(3) CERTIFIED STOVE- The term ‘certified stove’ means a wood stove or pellet stove that meets the standards of performance for new residential wood heaters under subpart AAA of part 60 of subchapter C of chapter I of title 40, Code of Federal Regulations (or successor regulations), as certified by the Administrator. Pellet stoves and fireplace inserts using pellets for fuel that are exempt from testing by the Administrator but meet the same standards of performance as wood stoves are considered certified for the purposes of this section.CommentsClose CommentsPermalink
(4) ELIGIBLE ENTITY- The term ‘eligible entity’ means--CommentsClose CommentsPermalink
(A) a State, a local government, or a federally recognized Indian tribe;CommentsClose CommentsPermalink
(B) Alaskan Native villages or regional or village corporations (as defined in, or established under, the Alaskan Native Claims Settlement Act (
(C) a nonprofit organization or institution that--CommentsClose CommentsPermalink
(i) represents or provides pollution reduction or educational services relating to wood smoke minimization to persons, organizations, or communities; orCommentsClose CommentsPermalink
(ii) has, as its principal purpose, the promotion of air quality or energy efficiency.CommentsClose CommentsPermalink
(b) Establishment- The Administrator shall establish and carry out a program to assist in the replacement of wood stoves or pellet stoves that do not meet the standards of performance referred to in subsection (a)(4) by--CommentsClose CommentsPermalink
(1) requiring that each wood stove or pellet stove sold in the United States on and after the date of enactment of this Act meet the standards of performance referred to in subsection (a)(4);CommentsClose CommentsPermalink
(2) requiring that no wood stove or pellet stove replaced under this program is sold or returned to active service, but that it is instead destroyed and recycled to the maximum extent feasible;CommentsClose CommentsPermalink
(3) providing funds to an eligible entity to replace a wood stove or pellet stove that does not meet the standards of performance in subsection (a)(4) with a certified stove, including funds to pay for--CommentsClose CommentsPermalink
(A) installation of a replacement certified stove; andCommentsClose CommentsPermalink
(B) necessary replacement of or repairs to ventilation, flues, chimneys, or other relevant items necessary for safe installation of a replacement certified stove;CommentsClose CommentsPermalink
(4) in addition to any funds that may be appropriated for the program under this subsection, using existing Federal, State, and local programs and incentives, to the greatest extent practicable;CommentsClose CommentsPermalink
(5) prioritizing the replacement of wood stoves or pellet stoves manufactured before July 1, 1990; andCommentsClose CommentsPermalink
(6) carrying out such other activities as the Administrator determines appropriate to facilitate the replacement of wood stoves or pellet stoves that do not meet the standards of performance referred to in subsection (a)(3).CommentsClose CommentsPermalink
(c) Regulations- The Administrator may promulgate such regulations as are necessary to carry out the program established under subsection (b).CommentsClose CommentsPermalink
(d) Funding-CommentsClose CommentsPermalink
(1) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out the program under this section $20,000,000 for the period of fiscal years 2010 through 2014.CommentsClose CommentsPermalink
(2) DESIGNATED USE- Of amounts appropriated pursuant to this subsection--CommentsClose CommentsPermalink
(A) 25 percent shall be designated for use to carry out the program under this section on lands held in trust for the benefit of a federally recognized Indian tribe;CommentsClose CommentsPermalink
(B) 3 percent shall be designated for use to carry out the program under this section in Alaskan Native villages or regional or village corporations (as defined in, or established under, the Alaskan Native Claims Settlement Act (
(C) 72 percent shall be designated for use to carry out the program under this section nationwide.CommentsClose CommentsPermalink
(3) REGULATORY PROGRAMS-CommentsClose CommentsPermalink
(A) IN GENERAL- No grant or loan provided under this section shall be used to fund the costs of emissions reductions that are mandated under Federal, State, or local law.CommentsClose CommentsPermalink
(B) MANDATED- For purposes of subparagraph (A), voluntary or elective emission reduction measures shall not be considered ‘mandated’, regardless of whether the reductions are included in the implementation plan of a State.CommentsClose CommentsPermalink
(e) EPA Authority to Accept Wood Stove or Pellet Stove Replacement Supplemental Environmental Projects-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator may accept (notwithstanding sections 3302 and 1301 of title 31, United States Code) wood stove or pellet stove replacement Supplemental Environmental Projects if such projects, as part of a settlement of any alleged violation of environmental law--CommentsClose CommentsPermalink
(A) protect human health or the environment;CommentsClose CommentsPermalink
(B) are related to the underlying alleged violation;CommentsClose CommentsPermalink
(C) do not constitute activities that the defendant would otherwise be legally required to perform; andCommentsClose CommentsPermalink
(D) do not provide funds for the staff of the Agency or for contractors to carry out the Agency’s internal operations.CommentsClose CommentsPermalink
(2) CERTIFICATION- In any settlement agreement regarding an alleged violation of environmental law in which a defendant agrees to perform a wood stove or pellet stove replacement Supplemental Environmental Project, the Administrator shall require the defendant to include in the settlement documents a certification under penalty of law that the defendant would have agreed to perform a comparably valued, alternative project other than a wood stove or pellet stove replacement Supplemental Environmental Project if the Administrator were precluded by law from accepting a wood stove or pellet stove replacement Supplemental Environmental Project. A failure by the Administrator to include this language in such a settlement agreement shall not create a cause of action against the United States under the Clean Air Act or any other law or create a basis for overturning a settlement agreement entered into by the United States.CommentsClose CommentsPermalink
SEC. 219. ENERGY STAR STANDARDS.
(a) Energy Star- Section 324A(c) of the Energy Policy and Conservation Act is amended--CommentsClose CommentsPermalink
(1) in paragraph (6)(B), by striking ‘and’ after the semicolon at the end;CommentsClose CommentsPermalink
(2) in paragraph (7), by striking the period at the end and inserting a semicolon; andCommentsClose CommentsPermalink
(3) by adding at the end the following:CommentsClose CommentsPermalink
‘(8) not later than 18 months after the date of enactment of this paragraph, establish and implement a rating system for products identified as Energy Star products pursuant to this section to provide consumers with the most helpful information on the relative energy efficiency of those products, unless the Administrator and the Secretary communicate to Congress that establishing such a system would diminish the value of the Energy Star brand to consumers;CommentsClose CommentsPermalink
‘(9)(A) review the Energy Star product criteria for the 10 product models in each product category with the greatest energy consumption at least once every 3 years; andCommentsClose CommentsPermalink
‘(B) based on the review, update and publish the Energy Star product criteria for each such category, as necessary; andCommentsClose CommentsPermalink
‘(10) require periodic verification of compliance with the Energy Star product criteria by products identified as Energy Star products pursuant to this section, including--CommentsClose CommentsPermalink
‘(A) purchase and testing of products from the market; orCommentsClose CommentsPermalink
‘(B) other appropriate testing and compliance approaches.’.CommentsClose CommentsPermalink
(b) Authorization of Appropriations- There are authorized to be appropriated to carry out the amendments made by this section $5,000,000 for fiscal year 2010 and for each fiscal year thereafter.CommentsClose CommentsPermalink
Subtitle C--Transportation EfficiencyCommentsClose CommentsPermalink
Subtitle C--Transportation EfficiencyCommentsClose CommentsPermalink
SEC. 221. EMISSIONS STANDARDS.
Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by inserting after part A the following new part:CommentsClose CommentsPermalink
‘PART B--MOBILE SOURCES
‘SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR MOBILE SOURCES.
‘(a) New Motor Vehicles and New Motor Vehicle Engines- (1) Pursuant to section 202(a)(1), by December 31, 2010, the Administrator shall promulgate standards applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section). The Administrator may revise these standards from time to time.CommentsClose CommentsPermalink
‘(2) Regulations issued under section 202(a)(1) applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section), shall contain standards that reflect the greatest degree of emissions reduction achievable through the application of technology which the Administrator determines will be available for the model year to which such standards apply, giving appropriate consideration to cost, energy, and safety factors associated with the application of such technology. Any such regulations shall take effect after such period as the Administrator finds necessary to permit the development and application of the requisite technology, and, at a minimum, shall apply for a period no less than 3 model years beginning no earlier than the model year commencing 4 years after such regulations are promulgated.CommentsClose CommentsPermalink
‘(3) Regulations issued under section 202(a)(1) applicable to emissions of greenhouse gases from new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, excluding such motor vehicles covered by the Tier II standards (as established by the Administrator as of the date of the enactment of this section), shall supersede and satisfy any and all of the rulemaking and compliance requirements of
section 32902(k) of title 49, United States Code .CommentsClose CommentsPermalink‘(4) Other than as specifically set forth in paragraph (3) of this subsection, nothing in this section shall affect or otherwise increase or diminish the authority of the Secretary of Transportation to adopt regulations to improve the overall fuel efficiency of the commercial goods movement system.CommentsClose CommentsPermalink
‘(b) Nonroad Vehicles and Engines- (1) Pursuant to section 213(a)(4) and (5), the Administrator shall identify those classes or categories of new nonroad vehicles or engines, or combinations of such classes or categories, that, in the judgment of the Administrator, both contribute significantly to the total emissions of greenhouse gases from nonroad engines and vehicles, and provide the greatest potential for significant and cost-effective reductions in emissions of greenhouse gases. The Administrator shall promulgate standards applicable to emissions of greenhouse gases from these new nonroad engines or vehicles by December 31, 2012. The Administrator shall also promulgate standards applicable to emissions of greenhouse gases for such other classes and categories of new nonroad vehicles and engines as the Administrator determines appropriate and in the timeframe the Administrator determines appropriate. The Administrator shall base such determination, among other factors, on the relative contribution of greenhouse gas emissions, and the costs for achieving reductions, from such classes or categories of new nonroad engines and vehicles. The Administrator may revise these standards from time to time.CommentsClose CommentsPermalink
‘(2) Standards under section 213(a)(4) and (5) applicable to emissions of greenhouse gases from those classes or categories of new nonroad engines or vehicles identified in the first sentence of paragraph (1) of this subsection, shall achieve the greatest degree of emissions reduction achievable based on the application of technology which the Administrator determines will be available at the time such standards take effect, taking into consideration cost, energy, and safety factors associated with the application of such technology. Any such regulations shall take effect at the earliest possible date after such period as the Administrator finds necessary to permit the development and application of the requisite technology, giving appropriate consideration to the cost of compliance within such period, the applicable compliance dates for other standards, and other appropriate factors, including the period of time appropriate for the transfer of applicable technology from other applications, including motor vehicles, and the period of time in which previously promulgated regulations have been in effect.CommentsClose CommentsPermalink
‘(3) For purposes of this section and standards under section 213(a)(4) or (5) applicable to emissions of greenhouse gases, the term ‘nonroad engines and vehicles’ shall include non-internal combustion engines and the vehicles these engines power (such as electric engines and electric vehicles), for those non-internal combustion engines and vehicles which would be in the same category and have the same uses as nonroad engines and vehicles that are powered by internal combustion engines.CommentsClose CommentsPermalink
‘(c) Averaging, Banking, and Trading of Emissions Credits- In establishing standards applicable to emissions of greenhouse gases pursuant to this section and sections 202(a), 213(a)(4) and (5), and 231(a), the Administrator may establish provisions for averaging, banking, and trading of greenhouse gas emissions credits within or across classes or categories of motor vehicles and motor vehicle engines, nonroad vehicles and engines (including marine vessels), and aircraft and aircraft engines, to the extent the Administrator determines appropriate and considering the factors appropriate in setting standards under those sections. Such provisions may include reasonable and appropriate provisions concerning generation, banking, trading, duration, and use of credits.CommentsClose CommentsPermalink
‘(d) Reports- The Administrator shall, from time to time, submit a report to Congress that projects the amount of greenhouse gas emissions from the transportation sector, including transportation fuels, for the years 2030 and 2050, based on the standards adopted under this section.CommentsClose CommentsPermalink
‘(e) Greenhouse Gases- Notwithstanding the provisions of section 711, hydrofluorocarbons shall be considered a greenhouse gas for purposes of this section.’.CommentsClose CommentsPermalink
SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION EFFICIENCY.
(a) Environmental Protection Agency- Title VIII of the Clean Air Act, as added by section 331 of this Act, is further amended by inserting after part C the following new part:CommentsClose CommentsPermalink
‘PART D--TRANSPORTATION EMISSIONS
‘SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION EFFICIENCY.
‘(a) In General- The Administrator, in consultation with the Secretary of Transportation, shall promulgate, and update from time to time, regulations to establish national transportation-related greenhouse gas emissions reduction goals, standardized models and methodologies for use in developing surface transportation-related greenhouse gas emissions reduction targets pursuant to sections 134 and 135 of title 23 of the United States Code and methods for collection of data on transportation-related greenhouse gas emissions. Such goals shall be commensurate with the emissions reductions goals established under the American Clean Energy and Security Act of 2009. In establishing such goals, models, and methodologies, the Administrator shall consult with States and metropolitan planning organizations and may utilize existing models and methodologies.CommentsClose CommentsPermalink
‘(b) Timing- The Administrator shall--CommentsClose CommentsPermalink
‘(1) publish proposed regulations under subsection (a) not later than 12 months after the date of enactment of this section; andCommentsClose CommentsPermalink
‘(2) promulgate final regulations under subsection (a) not later than 18 months after the date of enactment of this section.CommentsClose CommentsPermalink
‘(c) Assessment- At least every 6 years after promulgating final regulations under subsection (a), the Administrator, jointly with the Secretary of Transportation, shall assess current and projected progress in reducing national transportation-related greenhouse gas emissions. The assessment shall examine the contributions to emissions reductions attributable to improvements in vehicle efficiency, greenhouse gas performance of transportation fuels, increased efficiency in utilizing transportation systems and the effects of local and State planning.’.CommentsClose CommentsPermalink
(b) Metropolitan Planning Organizations- Section 134 of title 23 of the United States Code is amended as follows:CommentsClose CommentsPermalink
(1) In subsection (a)(1)--CommentsClose CommentsPermalink
(A) by striking ‘minimizing’ and inserting ‘reducing’; andCommentsClose CommentsPermalink
(B) by inserting ‘, reliance on oil, impacts on the environment, transportation-related greenhouse gas emissions’ after ‘consumption’.CommentsClose CommentsPermalink
(2) In subsection (h)(1)(E)--CommentsClose CommentsPermalink
(A) by inserting ‘sustainability and livability, reduce surface transportation-related greenhouse gas emissions and reliance on oil, adapt to the effects of climate change,’ after ‘energy conservation’;CommentsClose CommentsPermalink
(B) by inserting ‘and public health’ after ‘quality of life’; andCommentsClose CommentsPermalink
(C) by inserting ‘, including housing and land use patterns’ after ‘development patterns’.CommentsClose CommentsPermalink
(3) In subsection (i)(4)(A) by inserting ‘air quality, public health, housing, transportation,’ after ‘conservation,’.CommentsClose CommentsPermalink
(4) In subsection (k) by inserting at the end the following new paragraph:CommentsClose CommentsPermalink
‘(6) EMISSIONS REDUCTION PROCESS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Within a metropolitan planning area serving a transportation management area, the transportation planning process under this section shall address transportation-related greenhouse gas emissions by including emission reduction targets and strategies.CommentsClose CommentsPermalink
‘(B) ESTABLISHMENT OF EMISSIONS REDUCTION TARGETS AND STRATEGIES-CommentsClose CommentsPermalink
‘(i) IN GENERAL- Not later than one year after the promulgation of the final regulations required under section 841 of the Clean Air Act, each metropolitan planning organization shall develop surface transportation-related greenhouse gas emission reduction targets, as well as strategies to meet such targets, as part of the transportation planning process under this section. If more than one metropolitan planning organization has been designated within a metropolitan planning area serving a transportation management area, each such metropolitan planning organization shall work cooperatively with other such organization to develop the surface transportation-related greenhouse gas emission reduction targets required under this subparagraph.CommentsClose CommentsPermalink
‘(ii) MINIMUM REQUIREMENTS- Each metropolitan planning organization that develops targets and strategies required under clause (i) shall demonstrate progress in stabilizing and reducing transportation-related greenhouse gas emissions in each metropolitan planning area serving a surface transportation management area. The targets and strategies shall, at a minimum--CommentsClose CommentsPermalink
‘(I) be based on the models and methodologies established in the final regulations required under section 841 of the Clean Air Act;CommentsClose CommentsPermalink
‘(II) address sources of surface transportation-related greenhouse gas emissions and contribute to achievement of the national transportation-related greenhouse gas emissions reduction goals;CommentsClose CommentsPermalink
‘(III) include efforts to increase public transportation ridership; andCommentsClose CommentsPermalink
‘(IV) include efforts to increase walking, bicycling, and other forms of nonmotorized transportation.CommentsClose CommentsPermalink
‘(C) PUBLIC NOTICE- Each metropolitan planning organization shall make its emission reduction targets and strategies, and an analysis of the anticipated effects thereof, available to the public through its Web site.CommentsClose CommentsPermalink
‘(D) ENFORCEMENT- If the Secretary finds that a metropolitan planning organization has failed to develop, submit or publish its emission reduction targets and strategies, the Secretary shall not certify that the requirements of this section are met with respect to the metropolitan planning process of such organization.’.CommentsClose CommentsPermalink
(c) States- Section 135 of title 23 of the United States Code is amended as follows:CommentsClose CommentsPermalink
(1) In subsection (d)(1)(E)--CommentsClose CommentsPermalink
(A) by inserting ‘sustainability and livability, reduce surface transportation-related greenhouse gas emissions and reliance on oil, adapt to the effects of climate change,’ after ‘energy conservation’;CommentsClose CommentsPermalink
(B) by inserting ‘and public health’ after ‘quality of life’; andCommentsClose CommentsPermalink
(C) by inserting ‘, including housing and land use patterns’ after ‘development patterns’.CommentsClose CommentsPermalink
(2) In subsection (f)(2)(D)(i) by inserting ‘air quality, public health, housing, transportation,’ after ‘conservation,’.CommentsClose CommentsPermalink
(3) In subsection (f) by inserting at the end the following new paragraph:CommentsClose CommentsPermalink
‘(9) EMISSIONS REDUCTION PROCESS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Within a State, the transportation planning process under this section shall address transportation-related greenhouse gas emissions by including emission reduction targets and strategies.CommentsClose CommentsPermalink
‘(B) ESTABLISHMENT OF EMISSIONS REDUCTION TARGETS AND STRATEGIES-CommentsClose CommentsPermalink
‘(i) IN GENERAL- Not later than one year after the promulgation of the final regulations required under section 841 of the Clean Air Act, each State shall develop surface transportation-related greenhouse gas emission reduction targets, as well as strategies to meet such targets, as part of the transportation planning process under this section.CommentsClose CommentsPermalink
‘(ii) MINIMUM REQUIREMENTS- Each State that develops targets and strategies required under clause (i) shall demonstrate progress in stabilizing and reducing transportation-related greenhouse gas emissions in such State. The targets and strategies shall, at a minimum,CommentsClose CommentsPermalink
‘(I) be based on the models and methodologies established in the final regulations required under section 841 of the Clean Air Act;CommentsClose CommentsPermalink
‘(II) address sources of surface transportation-related greenhouse gas emissions and contribute to achievement of the national transportation-related greenhouse gas emissions reduction goals;CommentsClose CommentsPermalink
‘(III) include efforts to increase public transportation ridership; andCommentsClose CommentsPermalink
‘(IV) include efforts to increase walking, bicycling, and other forms of nonmotorized transportation.CommentsClose CommentsPermalink
‘(D) PUBLIC NOTICE- Each State shall make its emission reduction targets and strategies, and an analysis of the anticipated effects thereof, available to the public through its Web site.CommentsClose CommentsPermalink
‘(E) ENFORCEMENT- If the Secretary finds that a State has failed to develop, submit or publish its emission reduction targets and strategies, the Secretary shall not certify that the requirements of this section are met with respect to the statewide planning process of such State.’.CommentsClose CommentsPermalink
(d) Department of Transportation- The Secretary of Transportation shall establish appropriate requirements, including performance measures, to ensure that transportation plans developed under sections 134 and 135 of title 23 of the United States Code sufficiently meet the requirements of this section, including achieving progress towards national transportation-related greenhouse gas emissions reduction goals.CommentsClose CommentsPermalink
SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.
Part B of title VIII of the Clean Air Act, as added by section 221 of this Act is amended by adding after section 821 the following section:CommentsClose CommentsPermalink
‘SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.
‘(a) In General- There is established within the Environmental Protection Agency a SmartWay Transport Program to quantify, demonstrate, and promote the benefits of technologies, products, fuels, and operational strategies that reduce petroleum consumption, air pollution, and greenhouse gas emissions from the mobile source sector.CommentsClose CommentsPermalink
‘(b) General Duties- Under the program established under this section, the Administrator shall carry out each of the following:CommentsClose CommentsPermalink
‘(1) Development of measurement protocols to evaluate the energy consumption and greenhouse gas impacts from technologies and strategies in the mobile source sector, including those for passenger transport and goods movement.CommentsClose CommentsPermalink
‘(2) Development of qualifying thresholds for certifying, verifying, or designating energy-efficient, low-greenhouse gas SmartWay technologies and strategies for each mode of passenger transportation and goods movement.CommentsClose CommentsPermalink
‘(3) Development of partnership and recognition programs to promote best practices and drive demand for energy-efficient, low-greenhouse gas transportation performance.CommentsClose CommentsPermalink
‘(4) Promotion of the availability of, and encouragement of the adoption of, SmartWay certified or verified technologies and strategies, and publication of the availability of financial incentives, such as assistance from loan programs and other Federal and State incentives.CommentsClose CommentsPermalink
‘(c) Smartway Transport Freight Partnership- The Administrator shall establish a SmartWay Transport Freight Partnership program with shippers and carriers of goods to promote energy-efficient, low-greenhouse gas transportation. In carrying out such partnership, the Administrator shall undertake each of the following:CommentsClose CommentsPermalink
‘(1) Certification of the energy and greenhouse gas performance of participating freight carriers, including those operating rail, trucking, marine, and other goods movement operations.CommentsClose CommentsPermalink
‘(2) Publication of a comprehensive energy and greenhouse gas performance index of freight modes (including rail, trucking, marine, and other modes of transporting goods) and individual freight companies so that shippers can choose to deliver their goods more efficiently.CommentsClose CommentsPermalink
‘(3) Development of tools for--CommentsClose CommentsPermalink
‘(A) carriers to calculate their energy and greenhouse gas performance; andCommentsClose CommentsPermalink
‘(B) shippers to calculate the energy and greenhouse gas impacts of moving their products and to evaluate the relative impacts from transporting their goods by different modes and corporate carriers.CommentsClose CommentsPermalink
‘(4) Provision of recognition opportunities for participating shipper and carrier companies demonstrating advanced practices and achieving superior levels of greenhouse gas performance.CommentsClose CommentsPermalink
‘(d) Improving Freight Greenhouse Gas Performance Databases- The Administrator shall, in coordination with other appropriate agencies, define and collect data on the physical and operational characteristics of the Nation’s truck population, with special emphasis on data related to energy efficiency and greenhouse gas performance to inform the performance index published under subsection (c)(2) of this section, and other means of goods transport as necessary, at least every 5 years.CommentsClose CommentsPermalink
‘(e) Establishment of Financing Program- The Administrator shall establish a SmartWay Financing Program to competitively award funding to eligible entities identified by the Administrator in accordance with the program requirements in subsection (g).CommentsClose CommentsPermalink
‘(f) Purpose- Under the SmartWay Financing Program, eligible entities shall--CommentsClose CommentsPermalink
‘(1) use funds awarded by the Administrator to provide flexible loan and lease terms that increase approval rates or lower the costs of loans and leases in accordance with guidance developed by the Administrator; andCommentsClose CommentsPermalink
‘(2) make such loans and leases available to public and private entities for the purpose of adopting low-greenhouse gas technologies or strategies for the mobile source sector that are designated by the Administrator.CommentsClose CommentsPermalink
‘(g) Program Requirements- The Administrator shall determine program design elements and requirements, including--CommentsClose CommentsPermalink
‘(1) the type of financial mechanism with which to award funding, in the form of grants or contracts;CommentsClose CommentsPermalink
‘(2) the designation of eligible entities to receive funding, including State, tribal, and local governments, regional organizations comprised of governmental units, nonprofit organizations, or for-profit companies;CommentsClose CommentsPermalink
‘(3) criteria for evaluating applications from eligible entities, including anticipated--CommentsClose CommentsPermalink
‘(A) cost-effectiveness of loan or lease program on a metric-ton-of-greenhouse gas-saved-per-dollar basis;CommentsClose CommentsPermalink
‘(B) ability to promote the loan or lease program and associated technologies and strategies to the target audience; andCommentsClose CommentsPermalink
‘(4) reporting requirements for entities that receive awards, including--CommentsClose CommentsPermalink
‘(A) actual cost-effectiveness and greenhouse gas savings from the loan or lease program based on a methodology designated by the Administrator;CommentsClose CommentsPermalink
‘(B) the total number of applications and number of approved applications; andCommentsClose CommentsPermalink
‘(C) terms granted to loan and lease recipients compared to prevailing market practices.CommentsClose CommentsPermalink
‘(h) Authorization of Appropriations- Such sums as necessary are authorized to be appropriated to the Administrator to carry out this section.’.CommentsClose CommentsPermalink
SEC. 224. STATE VEHICLE FLEETS.
Section 507(o) of the Energy Policy Act of 1992 (
‘(3) The Secretary shall revise the rules under this subsection with respect to the types of alternative fueled vehicles required for compliance with this subsection to ensure those rules are consistent with any guidance issued pursuant to section 303 of this Act.’.CommentsClose CommentsPermalink
Subtitle D--Industrial Energy Efficiency ProgramsCommentsClose CommentsPermalink
Subtitle D--Industrial Energy Efficiency ProgramsCommentsClose CommentsPermalink
SEC. 241. INDUSTRIAL PLANT ENERGY EFFICIENCY STANDARDS.
The Secretary of Energy shall continue to support the development of the American National Standards Institute (ANSI) voluntary industrial plant energy efficiency certification program, pending International Standards Organization (ISO) consensus standard 50001, and other related ANSI/ISO standards. In addition, the Department shall undertake complementary activities through the Department of Energy’s Industry Technologies Program that support the voluntary implementation of such standards by manufacturing firms. There are authorized to be appropriated to the Secretary such sums as are necessary to carry out these activities. The Secretary shall report to Congress on the status of standards development and plans for further standards development pursuant to this section by not later than 18 months after the date of enactment of this Act, and shall prepare a second such report 18 months thereafter.CommentsClose CommentsPermalink
SEC. 242. ELECTRIC AND THERMAL WASTE ENERGY RECOVERY AWARD PROGRAM.
(a) Electric and Thermal Waste Energy Recovery Awards- The Secretary of Energy shall establish a program to make monetary awards to the owners and operators of new and existing electric energy generation facilities or thermal energy production facilities using fossil or nuclear fuel, to encourage them to use innovative means of recovering any thermal energy that is a potentially useful byproduct of electric power generation or other processes to--CommentsClose CommentsPermalink
(1) generate additional electric energy; orCommentsClose CommentsPermalink
(2) make sales of thermal energy not used for electric generation, in the form of steam, hot water, chilled water, or desiccant regeneration, or for other commercially valid purposes.CommentsClose CommentsPermalink
(b) Amount of Awards-CommentsClose CommentsPermalink
(1) ELIGIBILITY- Awards shall be made under subsection (a) only for the use of innovative means that achieve net energy efficiency at the facility concerned significantly greater than the current standard technology in use at similar facilities.CommentsClose CommentsPermalink
(2) AMOUNT- The amount of an award made under subsection (a) shall equal an amount up to the value of 25 percent of the energy projected to be recovered or generated during the first 5 years of operation of the facility using the innovative energy recovery method, or such lesser amount that the Secretary determines to be the minimum amount that can cost-effectively stimulate such innovation.CommentsClose CommentsPermalink
(3) LIMITATION- No person may receive an award under this section if a grant under the waste energy incentive grant program under section 373 of the Energy Policy and Conservation Act (
(c) Regulatory Status- The Secretary of Energy shall--CommentsClose CommentsPermalink
(1) assist State regulatory commissions to identify and make changes in State regulatory programs for electric utilities to provide appropriate regulatory status for thermal energy byproduct businesses of regulated electric utilities to encourage those utilities to enter businesses making the sales referred to in subsection (a)(2); andCommentsClose CommentsPermalink
(2) encourage self-regulated utilities to enter businesses making the sales referred to in subsection (a)(2).CommentsClose CommentsPermalink
(d) Authorization of Appropriations- There are authorized to be appropriated to the Secretary of Energy such sums as are necessary for the purposes of this section.CommentsClose CommentsPermalink
SEC. 243. CLARIFYING ELECTION OF WASTE HEAT RECOVERY FINANCIAL INCENTIVES.
Section 373(e) of the Energy Policy and Conservation Act (
(1) by striking ‘that qualifies for’ and inserting ‘who elects to claim’; andCommentsClose CommentsPermalink
(2) by inserting ‘from that project’ after ‘for waste heat recovery’.CommentsClose CommentsPermalink
SEC. 244. MOTOR MARKET ASSESSMENT AND COMMERCIAL AWARENESS PROGRAM.
(a) Findings- Congress finds that--CommentsClose CommentsPermalink
(1) electric motor systems account for about half of the electricity used in the United States;CommentsClose CommentsPermalink
(2) electric motor energy use is determined by both the efficiency of the motor and the system in which the motor operates;CommentsClose CommentsPermalink
(3) Federal Government research on motor end use and efficiency opportunities is more than a decade old; andCommentsClose CommentsPermalink
(4) the Census Bureau has discontinued collection of data on motor and generator importation, manufacture, shipment, and sales.CommentsClose CommentsPermalink
(b) Definitions- In this section:CommentsClose CommentsPermalink
(1) DEPARTMENT- The term ‘Department’ means the Department of Energy.CommentsClose CommentsPermalink
(2) INTERESTED PARTIES- The term ‘interested parties’ includes--CommentsClose CommentsPermalink
(A) trade associations;CommentsClose CommentsPermalink
(B) motor manufacturers;CommentsClose CommentsPermalink
(C) motor end users;CommentsClose CommentsPermalink
(D) electric utilities; andCommentsClose CommentsPermalink
(E) individuals and entities that conduct energy efficiency programs.CommentsClose CommentsPermalink
(3) SECRETARY- The term ‘Secretary’ means the Secretary of Energy, in consultation with interested parties.CommentsClose CommentsPermalink
(c) Assessment- The Secretary shall conduct an assessment of electric motors and the electric motor market in the United States that shall--CommentsClose CommentsPermalink
(1) include important subsectors of the industrial and commercial electric motor market (as determined by the Secretary), including--CommentsClose CommentsPermalink
(A) the stock of motors and motor-driven equipment;CommentsClose CommentsPermalink
(B) efficiency categories of the motor population; andCommentsClose CommentsPermalink
(C) motor systems that use drives, servos, and other control technologies;CommentsClose CommentsPermalink
(2) characterize and estimate the opportunities for improvement in the energy efficiency of motor systems by market segment, including opportunities for--CommentsClose CommentsPermalink
(A) expanded use of drives, servos, and other control technologies;CommentsClose CommentsPermalink
(B) expanded use of process control, pumps, compressors, fans or blowers, and material handling components; andCommentsClose CommentsPermalink
(C) substitution of existing motor designs with existing and future advanced motor designs, including electronically commutated permanent magnet, interior permanent magnet, and switched reluctance motors; andCommentsClose CommentsPermalink
(3) develop an updated profile of motor system purchase and maintenance practices, including surveying the number of companies that have motor purchase and repair specifications, by company size, number of employees, and sales.CommentsClose CommentsPermalink
(d) Recommendations; Update- Based on the assessment conducted under subsection (c), the Secretary shall--CommentsClose CommentsPermalink
(1) develop--CommentsClose CommentsPermalink
(A) recommendations to update the detailed motor profile on a periodic basis;CommentsClose CommentsPermalink
(B) methods to estimate the energy savings and market penetration that is attributable to the Save Energy Now Program of the Department; andCommentsClose CommentsPermalink
(C) recommendations for the Director of the Census Bureau on market surveys that should be undertaken in support of the motor system activities of the Department; andCommentsClose CommentsPermalink
(2) prepare an update to the Motor Master+ program of the Department.CommentsClose CommentsPermalink
(e) Program- Based on the assessment, recommendations, and update required under subsections (c) and (d), the Secretary shall establish a proactive, national program targeted at motor end-users and delivered in cooperation with interested parties to increase awareness of--CommentsClose CommentsPermalink
(1) the energy and cost-saving opportunities in commercial and industrial facilities using higher efficiency electric motors;CommentsClose CommentsPermalink
(2) improvements in motor system procurement and management procedures in the selection of higher efficiency electric motors and motor-system components, including drives, controls, and driven equipment; andCommentsClose CommentsPermalink
(3) criteria for making decisions for new, replacement, or repair motor and motor system components.CommentsClose CommentsPermalink
SEC. 245. MOTOR EFFICIENCY REBATE PROGRAM.
(a) In General- Part C of title III of the Energy Policy and Conservation Act (
‘SEC. 347. MOTOR EFFICIENCY REBATE PROGRAM.
‘(a) Establishment- Not later than January 1, 2010, in accordance with subsection (b), the Secretary shall establish a program to provide rebates for expenditures made by entities--CommentsClose CommentsPermalink
‘(1) for the purchase and installation of a new electric motor that has a nominal full load efficiency that is not less than the nominal full load efficiency as defined in--CommentsClose CommentsPermalink
‘(A) table 12-12 of NEMA Standards Publication MG 1-2006 for random wound motors rated 600 volts or lower; orCommentsClose CommentsPermalink
‘(B) table 12-13 of NEMA Standards Publication MG 1-2006 for form wound motors rated 5000 volts or lower; andCommentsClose CommentsPermalink
‘(2) to replace an installed motor of the entity the specifications of which are established by the Secretary by a date that is not later than 90 days after the date of enactment of this section.CommentsClose CommentsPermalink
‘(b) Requirements-CommentsClose CommentsPermalink
‘(1) APPLICATION- To be eligible to receive a rebate under this section, an entity shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require, including--CommentsClose CommentsPermalink
‘(A) demonstrated evidence that the entity purchased an electric motor described in subsection (a)(1) to replace an installed motor described in subsection (a)(2);CommentsClose CommentsPermalink
‘(B) demonstrated evidence that the entity--CommentsClose CommentsPermalink
‘(i) removed the installed motor of the entity from service; andCommentsClose CommentsPermalink
‘(ii) properly disposed the installed motor of the entity; andCommentsClose CommentsPermalink
‘(C) the physical nameplate of the installed motor of the entity.CommentsClose CommentsPermalink
‘(2) AUTHORIZED AMOUNT OF REBATE- The Secretary may provide to an entity that meets each requirement under paragraph (1) a rebate the amount of which shall be equal to the product obtained by multiplying--CommentsClose CommentsPermalink
‘(A) the nameplate horsepower of the electric motor purchased by the entity in accordance with subsection (a)(1); andCommentsClose CommentsPermalink
‘(B) $25.00.CommentsClose CommentsPermalink
‘(3) PAYMENTS TO DISTRIBUTORS OF QUALIFYING ELECTRIC MOTORS- To assist in the payment for expenses relating to processing and motor core disposal costs, the Secretary shall provide to the distributor of an electric motor described in subsection (a)(1), the purchaser of which received a rebate under this section, an amount equal to the product obtained by multiplying--CommentsClose CommentsPermalink
‘(A) the nameplate horsepower of the electric motor; andCommentsClose CommentsPermalink
‘(B) $5.00.CommentsClose CommentsPermalink
‘(c) Authorization of Appropriations- There are authorized to be appropriated to carry out this section, to remain available until expended--CommentsClose CommentsPermalink
‘(1) $80,000,000 for fiscal year 2011;CommentsClose CommentsPermalink
‘(2) $75,000,000 for fiscal year 2012;CommentsClose CommentsPermalink
‘(3) $70,000,000 for fiscal year 2013;CommentsClose CommentsPermalink
‘(4) $65,000,000 for fiscal year 2014; andCommentsClose CommentsPermalink
‘(5) $60,000,000 for fiscal year 2015.’.CommentsClose CommentsPermalink
(b) Table of Contents- The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part C of title III the following:CommentsClose CommentsPermalink
‘Sec. 347. Motor efficiency rebate program.’.CommentsClose CommentsPermalink
Subtitle E--Improvements in Energy Savings Performance ContractingCommentsClose CommentsPermalink
Subtitle E--Improvements in Energy Savings Performance ContractingCommentsClose CommentsPermalink
SEC. 251. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Competition Requirements for Task or Delivery Orders Under Energy Savings Performance Contracts-CommentsClose CommentsPermalink
(1) COMPETITION REQUIREMENTS- Subsection (a) of section 801 of the National Energy Conservation Policy Act (
‘(3)(A) The head of a Federal agency may issue a task or delivery order under an energy savings performance contract by--CommentsClose CommentsPermalink
‘(i) notifying all contractors that have received an award under such contract that the agency proposes to discuss energy savings performance services for some or all of its facilities and, following a reasonable period of time to provide a proposal in response to the notice, soliciting an expression of interest in performing site surveys or investigations and feasibility designs and studies and the submission of qualifications from such contractors, and including in such notice summary information concerning energy use for any facilities that the agency has specific interest in including in such contract;CommentsClose CommentsPermalink
‘(ii) reviewing all expressions of interest and qualifications submitted pursuant to the notice under clause (i);CommentsClose CommentsPermalink
‘(iii) selecting two or more contractors (from among those reviewed under clause (ii)) to conduct discussions concerning the contractors’ respective qualifications to implement potential energy conservation measures, including requesting references demonstrating experience on similar efforts and the resulting energy savings of such similar efforts, and providing an opportunity for a post-award debriefing to all contractors that submitted expressions of interest and qualifications under clause (ii) pursuant to the notice;CommentsClose CommentsPermalink
‘(iv) selecting and authorizing--CommentsClose CommentsPermalink
‘(I) more than one contractor (from among those selected under clause (iii)) to conduct site surveys, investigations, feasibility designs and studies or similar assessments for the energy savings performance contract services (or for discrete portions of such services), for the purpose of allowing each such contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures; orCommentsClose CommentsPermalink
‘(II) one contractor (from among those selected under clause (iii)) to conduct a site survey, investigation, a feasibility design and study or similar for the purpose of allowing the contractor to submit a firm, fixed-price proposal to implement specific energy conservation measures;CommentsClose CommentsPermalink
‘(v) negotiating a task or delivery order for energy savings performance contracting services with the contractor or contractors selected under clause (iv) based on the energy conservation measures identified; andCommentsClose CommentsPermalink
‘(vi) issuing a task or delivery order for energy savings performance contracting services to such contractor or contractors.CommentsClose CommentsPermalink
‘(B) The issuance of a task or delivery order for energy savings performance contracting services pursuant to subparagraph (A) is deemed to satisfy the task and delivery order competition requirements in
section 2304c(d) of title 10, United States Code , and section 303J(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253j(d) ).CommentsClose CommentsPermalink‘(C) The Secretary may issue guidance as necessary to agencies issuing task or delivery orders pursuant to subparagraph (A).’.CommentsClose CommentsPermalink
(2) EFFECTIVE DATE- The amendment made by paragraph (1) is inapplicable to task or delivery orders issued before the date of enactment of this section.CommentsClose CommentsPermalink
(b) Inclusion of Thermal Renewable Energy- Section 203 of the Energy Policy Act of 2005 (
(1) in subsection (a), by striking ‘electric’; andCommentsClose CommentsPermalink
(2) in subsection (b)(2), by inserting ‘or thermal’ after ‘means electric’.CommentsClose CommentsPermalink
(c) Credit for Renewable Energy Produced and Used on Site- Subsection (c) of section 203 of the Energy Policy Act of 2005 (
‘(c) Calculation- Renewable energy produced at a Federal facility, on Federal lands, or on Indian lands (as defined in title XXVI of the Energy Policy Act of 1992 (
25 U.S.C. 3501 et seq.)) shall be calculated separately from renewable energy consumed at a Federal facility, and each may be used to comply with the consumption requirement under subsection (a).’.CommentsClose CommentsPermalink
(d) Financing Flexibility- Section 801(a)(2)(E) of the National Energy Conservation Policy Act (
Subtitle F--Public InstitutionsCommentsClose CommentsPermalink
Subtitle F--Public InstitutionsCommentsClose CommentsPermalink
SEC. 261. PUBLIC INSTITUTIONS.
Section 399A of the Energy Policy and Conservation Act (
(1) in subsection (a)(5), by striking ‘or a designee’ and inserting ‘an Indian tribe, a not-for-profit hospital or not-for-profit inpatient health care facility, or a designated agent’;CommentsClose CommentsPermalink
(2) in subsection (c)(1), by striking subparagraph (C);CommentsClose CommentsPermalink
(3) in subsection (f)(3)(A), by striking ‘$1,000,000’ and inserting ‘$2,500,000’; andCommentsClose CommentsPermalink
(4) in subsection (i)(1), by striking ‘$250,000,000 for each of fiscal years 2009 through 2013’ and inserting ‘$250,000,000 for each of fiscal years 2010 through 2015’.CommentsClose CommentsPermalink
SEC. 262. COMMUNITY ENERGY EFFICIENCY FLEXIBILITY.
Section 545(b)(3) of the Energy Independence and Security Act of 2007 (
(1) by striking ‘Indian tribe may use’ and all that follows through ‘for administrative expenses’ and inserting ‘Indian tribe may use for administrative expenses’;CommentsClose CommentsPermalink
(2) by striking subparagraphs (B) and (C);CommentsClose CommentsPermalink
(3) by redesignating the remaining clauses (i) and (ii) as subparagraphs (A) and (B), respectively and adjusting the margin of those subparagraphs accordingly; andCommentsClose CommentsPermalink
(4) by striking the semicolon at the end and inserting a period.CommentsClose CommentsPermalink
SEC. 263. SMALL COMMUNITY JOINT PARTICIPATION.
(a) Section 541(3)(A) of the Energy Independence and Security Act of 2007 is amended in clause (i) by striking ‘and’ at the end of subclause (II), in clause (ii) by striking the period at the end of subclause (II) and inserting ‘; or’, and by inserting the following new clause (iii):CommentsClose CommentsPermalink
‘(iii) a group of adjacent, contiguous, or geographically proximate units of local government that reach agreement to act jointly for purposes of this section and that represent a combined population of not less than 35,000.’.CommentsClose CommentsPermalink
(b) Section 541(3)(B) of the Energy Independence and Security Act of 2007 is amended in clause (i) by striking ‘or’, in clause (ii) by striking the period at the end and inserting ‘; or’, and by inserting the following new clause (iii):CommentsClose CommentsPermalink
‘(iii) a group of adjacent, contiguous, or geographically proximate units of local government that reach agreement to act jointly for purposes of this section and that represent a combined population of not less than 50,000.’.CommentsClose CommentsPermalink
SEC. 264. LOW INCOME COMMUNITY ENERGY EFFICIENCY PROGRAM.
(a) In General- The Secretary of Energy is authorized to make grants to private, nonprofit, mission-driven community development organizations including community development corporations and community development financial institutions to provide financing to businesses and projects that improve energy efficiency; identify and develop alternative, renewable, and distributed energy supplies; provide technical assistance and promote job and business opportunities for low-income residents; and increase energy conservation in low income rural and urban communities.CommentsClose CommentsPermalink
(b) Grants- The purpose of such grants is to increase the flow of capital and benefits to low income communities, minority-owned and woman-owned businesses and entrepreneurs and other projects and activities located in low income communities in order to reduce environmental degradation, foster energy conservation and efficiency and create job and business opportunities for local residents. The Secretary may make grants on a competitive basis for--CommentsClose CommentsPermalink
(1) investments that develop alternative, renewable, and distributed energy supplies;CommentsClose CommentsPermalink
(2) capitalizing loan funds that lend to energy efficiency projects and energy conservation programs;CommentsClose CommentsPermalink
(3) technical assistance to plan, develop, and manage an energy efficiency financing program; andCommentsClose CommentsPermalink
(4) technical and financial assistance to assist small-scale businesses and private entities develop new renewable and distributed sources of power or combined heat and power generation.CommentsClose CommentsPermalink
(c) Authorization of Appropriations- For the purposes of this section there is authorized to be appropriated $50,000,000 for each of the fiscal years 2010 through 2015.CommentsClose CommentsPermalink
Subtitle G--MiscellaneousCommentsClose CommentsPermalink
Subtitle G--MiscellaneousCommentsClose CommentsPermalink
SEC. 271. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS TECHNOLOGIES.
Section 543 of the National Energy Conservation Policy Act (
‘SEC. 543. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS TECHNOLOGIES.
‘(a) In General- Not later than 1 year after the date of enactment of the American Clean Energy and Security Act of 2009, each Federal agency shall collaborate with the Director of the Office of Management and Budget (referred to in this section as the ‘Director’) to create an implementation strategy, including best practices and measurement and verification techniques, for the purchase and use of energy efficient information and communications technologies and practices. Wherever possible, existing standards, specifications, performance metrics, and best management practices that have been or are being developed in open collaboration and with broad stakeholder input and review should be incorporated. In addition, agency strategies shall be flexible, cost-effective, and based on the specific operating requirements and statutory mission of each agency.CommentsClose CommentsPermalink
‘(b) Energy Efficient Information and Communications Technologies- In developing an implementation strategy, each agency shall--CommentsClose CommentsPermalink
‘(1) consider information and communications technologies and infrastructure, including, but not limited to, advanced metering infrastructure, information and communications technology services and products, efficient data center strategies, applications modernization and rationalization, building systems energy efficiency, and telework; andCommentsClose CommentsPermalink
‘(2) ensure that agencies are eligible to realize the savings and rewards brought about through increased efficiencies.CommentsClose CommentsPermalink
‘(c) Performance Goals- Not later than 6 months after the date of enactment of the American Clean Energy and Security Act of 2009, the Director shall establish performance goals for evaluating the efforts of the agencies in improving the maintenance, purchase and use of energy efficiency of information and communications technology systems. These performance goals should measure information technology costs over a specific time horizon (3 to 5 years), providing a complete picture of all costs, including energy.CommentsClose CommentsPermalink
‘(d) Report- Not later than 18 months after the date of enactment of the American Clean Energy and Security Act of 2009, and annually thereafter, the Director shall submit a report to Congress on--CommentsClose CommentsPermalink
‘(1) the progress of each agency in reducing energy use through its implementation strategy; andCommentsClose CommentsPermalink
‘(2) new and emerging technologies that would help achieve increased energy efficiency.’.CommentsClose CommentsPermalink
SEC. 272. NATIONAL ENERGY EFFICIENCY GOALS.
(a) Goals- The energy efficiency goals of the United States are--CommentsClose CommentsPermalink
(1) to achieve an improvement in the overall energy productivity of the United States (measured in gross domestic product per unit of energy input) of at least 2.5 percent per year by the year 2012; andCommentsClose CommentsPermalink
(2) to maintain that annual rate of improvement each year through 2030.CommentsClose CommentsPermalink
(b) Strategic Plan-CommentsClose CommentsPermalink
(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Secretary of Energy (referred to in this section as the ‘Secretary’), in cooperation with the Administrator and the heads of other appropriate Federal agencies, shall develop a strategic plan to achieve the national goals for improvement in energy productivity established under subsection (a).CommentsClose CommentsPermalink
(2) PUBLIC INPUT AND COMMENT- The Secretary shall develop the plan in a manner that provides appropriate opportunities for public input and comment.CommentsClose CommentsPermalink
(c) Plan Contents- The strategic plan shall--CommentsClose CommentsPermalink
(1) identify future regulatory, funding, and policy priorities that would assist the United States in meeting the national goals;CommentsClose CommentsPermalink
(2) include energy savings estimates for each sector; andCommentsClose CommentsPermalink
(3) include data collection methodologies and compilations used to establish baseline and energy savings data.CommentsClose CommentsPermalink
(d) Plan Updates-CommentsClose CommentsPermalink
(1) IN GENERAL- The Secretary shall--CommentsClose CommentsPermalink
(A) update the strategic plan biennially; andCommentsClose CommentsPermalink
(B) include the updated strategic plan in the national energy policy plan required by section 801 of the Department of Energy Organization Act (
(2) CONTENTS- In updating the plan, the Secretary shall--CommentsClose CommentsPermalink
(A) report on progress made toward implementing efficiency policies to achieve the national goals established under subsection (a); andCommentsClose CommentsPermalink
(B) verify, to the maximum extent practicable, energy savings resulting from the policies.CommentsClose CommentsPermalink
(e) Report to Congress and the Public- The Secretary shall submit to Congress, and make available to the public, the initial strategic plan developed under subsection (b) and each updated plan.CommentsClose CommentsPermalink
SEC. 273. AFFILIATED ISLAND ENERGY INDEPENDENCE TEAM.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) AFFILIATED ISLAND- The term ‘affiliated island’ means--CommentsClose CommentsPermalink
(A) the Commonwealth of Puerto Rico;CommentsClose CommentsPermalink
(B) Guam;CommentsClose CommentsPermalink
(C) American Samoa;CommentsClose CommentsPermalink
(D) the Commonwealth of the Northern Mariana Islands;CommentsClose CommentsPermalink
(E) the Federated States of Micronesia;CommentsClose CommentsPermalink
(F) the Republic of the Marshall Islands;CommentsClose CommentsPermalink
(G) the Republic of Palau; andCommentsClose CommentsPermalink
(H) the United States Virgin Islands.CommentsClose CommentsPermalink
(2) SECRETARY- The term ‘Secretary’ means the Secretary of Energy (acting through the Assistant Secretary of Energy Efficiency and Renewable Energy), in consultation with the Secretary of the Interior and the Secretary of State.CommentsClose CommentsPermalink
(3) TEAM- The term ‘team’ means the team established by the Secretary under subsection (b).CommentsClose CommentsPermalink
(b) Establishment- As soon as practicable after the date of enactment of this Act, the Secretary shall assemble a team of technical, policy, and financial experts to address the energy needs of each affiliated island--CommentsClose CommentsPermalink
(1) to reduce the reliance and expenditure of each affiliated island on imported fossil fuels;CommentsClose CommentsPermalink
(2) to increase the use by each affiliated island of indigenous, nonfossil fuel energy sources;CommentsClose CommentsPermalink
(3) to improve the performance of the energy infrastructure of the affiliated island through projects--CommentsClose CommentsPermalink
(A) to improve the energy efficiency of power generation, transmission, and distribution; andCommentsClose CommentsPermalink
(B) to increase consumer energy efficiency;CommentsClose CommentsPermalink
(4) to improve the performance of the energy infrastructure of each affiliated island through enhanced planning, education, and training;CommentsClose CommentsPermalink
(5) to adopt research-based and public-private partnership-based approaches as appropriate;CommentsClose CommentsPermalink
(6) to stimulate economic development and job creation; andCommentsClose CommentsPermalink
(7) to enhance the engagement by the Federal Government in international efforts to address island energy needs.CommentsClose CommentsPermalink
(c) Duties of Team-CommentsClose CommentsPermalink
(1) ENERGY ACTION PLANS-CommentsClose CommentsPermalink
(A) IN GENERAL- In accordance with subparagraph (B), the team shall provide technical, programmatic, and financial assistance to each utility of each affiliated island, and the government of each affiliated island, as appropriate, to develop and implement an energy Action Plan for each affiliated island to reduce the reliance of each affiliated island on imported fossil fuels through increased efficiency and use of indigenous clean-energy resources.CommentsClose CommentsPermalink
(B) REQUIREMENTS- Each Action Plan described in subparagraph (A) for each affiliated island shall require and provide for--CommentsClose CommentsPermalink
(i) the conduct of 1 or more studies to assess opportunities to reduce fossil fuel use through--CommentsClose CommentsPermalink
(I) the improvement of the energy efficiency of the affiliated island; andCommentsClose CommentsPermalink
(II) the increased use by the affiliated island of indigenous clean-energy resources;CommentsClose CommentsPermalink
(ii) the identification and implementation of the most cost-effective strategies and projects to reduce the dependence of the affiliated island on fossil fuels;CommentsClose CommentsPermalink
(iii) the promotion of education and training activities to improve the capacity of the local utilities of the affiliated island, and the government of the affiliated island, as appropriate, to plan for, maintain, and operate the energy infrastructure of the affiliated island through the use of local or regional institutions, as appropriate;CommentsClose CommentsPermalink
(iv) the coordination of the activities described in clause (iii) to leverage the expertise and resources of international entities, the Department of Energy, the Department of the Interior, and the regional utilities of the affiliated island;CommentsClose CommentsPermalink
(v) the identification, and development, as appropriate, of research-based and private-public, partnership approaches to implement the Action Plan; andCommentsClose CommentsPermalink
(vi) any other component that the Secretary determines to be necessary to reduce successfully the use by each affiliated island of fossil fuels.CommentsClose CommentsPermalink
(2) REPORTS TO SECRETARY- Not later than 1 year after the date on which the Secretary establishes the team and biennially thereafter, the team shall submit to the Secretary a report that contains a description of the progress of each affiliated island in--CommentsClose CommentsPermalink
(A) implementing the Action Plan of the affiliated island developed under paragraph (1)(A); andCommentsClose CommentsPermalink
(B) reducing the reliance of the affiliated island on fossil fuels.CommentsClose CommentsPermalink
(d) Use of Regional Utility Organizations- To provide expertise to affiliated islands to assist the affiliated islands in meeting the purposes of this section, the Secretary shall consider--CommentsClose CommentsPermalink
(1) including regional utility organizations in the establishment of the team; andCommentsClose CommentsPermalink
(2) providing assistance through regional utility organizations.CommentsClose CommentsPermalink
(e) Annual Reports to Congress- Not later than 30 days after the date on which the Secretary receives a report submitted by the team under subsection (c)(2), the Secretary shall submit to the appropriate committees of Congress a report that contains a summary of the report of the team.CommentsClose CommentsPermalink
(f) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.CommentsClose CommentsPermalink
SEC. 274. PRODUCT CARBON DISCLOSURE PROGRAM.
(a) EPA Study- The Administrator shall conduct a study to determine the feasibility of establishing a national program for measuring, reporting, publicly disclosing, and labeling products or materials sold in the United States for their carbon content, and shall, not later than 18 months after the date of enactment of this Act, transmit a report to Congress which shall include the following:CommentsClose CommentsPermalink
(1) A determination of whether a national product carbon disclosure program and labeling program would be effective in achieving the intended goals of achieving greenhouse gas reductions and an examination of existing programs globally and their strengths and weaknesses.CommentsClose CommentsPermalink
(2) Criteria for identifying and prioritizing sectors and products and processes that should be covered in such program or programs.CommentsClose CommentsPermalink
(3) An identification of products, processes, or sectors whose inclusion could have a substantial carbon impact (prioritizing industrial products such as iron and steel, aluminum, cement, chemicals, and paper products, and also including food, beverage, hygiene, cleaning, household cleaners, construction, metals, clothing, semiconductor, and consumer electronics).CommentsClose CommentsPermalink
(4) Suggested methodology and protocols for measuring the carbon content of the products across the entire carbon lifecycle of such products for use in a carbon disclosure program and labeling program.CommentsClose CommentsPermalink
(5) A review of existing greenhouse gas product accounting standards, methodologies, and practices including the Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and Publically Available Specification 2050, and including a review of the strengths and weaknesses of each.CommentsClose CommentsPermalink
(6) A survey of secondary databases including the Manufacturing Energy Consumption Survey and evaluate the quality of data for use in a product carbon disclosure program and product carbon labeling program and an identification of gaps in the data relative to the potential purposes of a national product carbon disclosure program and product carbon labeling program and development of recommendations for addressing these data gaps.CommentsClose CommentsPermalink
(7) An assessment of the utility of comparing products and the appropriateness of product carbon standards.CommentsClose CommentsPermalink
(8) An evaluation of the information needed on a label for clear and accurate communication, including what pieces of quantitative and qualitative information needs to be disclosed.CommentsClose CommentsPermalink
(9) An evaluation of the appropriate boundaries of the carbon lifecycle analysis for different sectors and products.CommentsClose CommentsPermalink
(10) An analysis of whether default values should be developed for products whose producer does not participate in the program or does not have data to support a disclosure or label and determine best ways to develop such default values.CommentsClose CommentsPermalink
(11) A recommendation of certification and verification options necessary to assure the quality of the information and avoid greenwashing or the use of insubstantial or meaningless environmental claims to promote a product.CommentsClose CommentsPermalink
(12) An assessment of options for educating consumers about product carbon content and the product carbon disclosure program and product carbon labeling program.CommentsClose CommentsPermalink
(13) An analysis of the costs and timelines associated with establishing a national product carbon disclosure program and product carbon labeling program, including options for a phased approach. Costs should include those for businesses associated with the measurement of carbon footprints and those associated with creating a product carbon label and managing and operating a product carbon labeling program, and options for minimizing these costs.CommentsClose CommentsPermalink
(14) An evaluation of incentives (such as financial incentives, brand reputation, and brand loyalty) to determine whether reductions in emissions can be accelerated through encouraging more efficient manufacturing or by encouraging preferences for lower-emissions products to substitute for higher-emissions products whose level of performance is no better.CommentsClose CommentsPermalink
(b) Development of National Carbon Disclosure Program- Upon conclusion of the study, and not more than 36 months after the date of enactment of this Act, the Administrator shall establish a national product carbon disclosure program, participation in which shall be voluntary, and which may involve a product carbon label with broad applicability to the wholesale and consumer markets to enable and encourage knowledge about carbon content by producers and consumers and to inform efforts to reduce energy consumption (carbon dioxide equivalent emissions) nationwide. In developing such a program, the Administrator shall--CommentsClose CommentsPermalink
(1) consider the results of the study conducted under subsection (a);CommentsClose CommentsPermalink
(2) consider existing and planned programs and proposals and measurement standards (including the Publicly Available Specification 2050, standards to be developed by the World Resource Institute/World Business Council for Sustainable Development, the International Standards Organization, and the bill AB19 pending in the California legislature);CommentsClose CommentsPermalink
(3) consider the compatibility of a national product carbon disclosure program with existing programs;CommentsClose CommentsPermalink
(4) utilize incentives and other means to spur the adoption of product carbon disclosure and product carbon labeling;CommentsClose CommentsPermalink
(5) develop protocols and parameters for a product carbon disclosure program, including a methodology and formula for assessing, verifying, and potentially labeling a product’s greenhouse gas content, and for data quality requirements to allow for product comparison;CommentsClose CommentsPermalink
(6) create a means to--CommentsClose CommentsPermalink
(A) document best practices;CommentsClose CommentsPermalink
(B) ensure clarity and consistency;CommentsClose CommentsPermalink
(C) work with suppliers, manufacturers, and retailers to encourage participation;CommentsClose CommentsPermalink
(D) ensure that protocols are consistent and comparable across like products; andCommentsClose CommentsPermalink
(E) evaluate the effectiveness of the program;CommentsClose CommentsPermalink
(7) make publicly available information on product carbon content to ensure transparency;CommentsClose CommentsPermalink
(8) provide for public outreach, including a consumer education program to increase awareness;CommentsClose CommentsPermalink
(9) develop training and education programs to help businesses learn how to measure and communicate their carbon footprint and easy tools and templates for businesses to use to reduce cost and time to measure their products’ carbon lifecycle;CommentsClose CommentsPermalink
(10) consult with the Secretary of Energy, the Secretary of Commerce, the Federal Trade Commission, and other Federal agencies, as necessary;CommentsClose CommentsPermalink
(11) gather input from stakeholders through consultations, public workshops or hearings with representatives of consumer product manufacturers, consumer groups, and environmental groups;CommentsClose CommentsPermalink
(12) utilize systems for verification and product certification that will ensure that claims manufacturers make about their products are valid;CommentsClose CommentsPermalink
(13) create a process for reviewing the accuracy of product carbon label information and protecting the product carbon label in the case of a change in the product’s energy source, supply chain, ingredients, or other factors, and specify the frequency to which data should be updated; andCommentsClose CommentsPermalink
(14) develop a standardized, easily understandable carbon label, if appropriate, and create a process for responding to inaccuracies and misuses of such a label.CommentsClose CommentsPermalink
(c) Report to Congress- Not later than 5 years after the program is established pursuant to subsection (b), the Administrator shall report to Congress on the effectiveness and impact of the program, the level of voluntary participation, and any recommendations for additional measures.CommentsClose CommentsPermalink
(d) Definitions- As used in this section--CommentsClose CommentsPermalink
(1) the term ‘carbon content’ means the amount of greenhouse gas emissions and their warming impact on the atmosphere expressed in carbon dioxide equivalent associated with a product’s value chain;CommentsClose CommentsPermalink
(2) the term ‘carbon footprint’ means the level of greenhouse gas emissions produced by a particular activity, service, or entity; andCommentsClose CommentsPermalink
(3) the term ‘carbon lifecycle’ means the greenhouse gas emissions that are released as part of the processes of creating, producing, processing or manufacturing, modifying, transporting, distributing, storing, using, recycling, or disposing of goods and services.CommentsClose CommentsPermalink
(e) Authorization of Appropriations- There is authorized to be appropriated to the Administrator $5,000,000 for the study required by subsection (a) and $25,000,000 for each of fiscal years 2010 through 2025 for the program required under subsection (b).CommentsClose CommentsPermalink
TITLE III--REDUCING GLOBAL WARMING POLLUTIONCommentsClose CommentsPermalink
TITLE III--REDUCING GLOBAL WARMING POLLUTIONCommentsClose CommentsPermalink
SEC. 301. SHORT TITLE.
This title, and sections 112, 116, 221, 222, 223, and 401 of this Act, and the amendments made by this title and those sections, may be cited as the ‘Safe Climate Act’.CommentsClose CommentsPermalink
Subtitle A--Reducing Global Warming PollutionCommentsClose CommentsPermalink
Subtitle A--Reducing Global Warming PollutionCommentsClose CommentsPermalink
SEC. 311. REDUCING GLOBAL WARMING POLLUTION.
The Clean Air Act (42 U.S.C. and following) is amended by adding after title VI the following new title:CommentsClose CommentsPermalink
‘TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAMCommentsClose CommentsPermalink
‘PART A--GLOBAL WARMING POLLUTION REDUCTION GOALS AND TARGETS
‘SEC. 701. FINDINGS AND PURPOSE.
‘(a) Findings- The Congress finds as follows:CommentsClose CommentsPermalink
‘(1) Global warming poses a significant threat to the national security, economy, public health and welfare, and environment of the United States, as well as of other nations.CommentsClose CommentsPermalink
‘(2) Reviews of scientific studies, including by the Intergovernmental Panel on Climate Change and the National Academy of Sciences, demonstrate that global warming is the result of the combined anthropogenic greenhouse gas emissions from numerous sources of all types and sizes. Each increment of emission, when combined with other emissions, causes or contributes materially to the acceleration and extent of global warming and its adverse effects for the lifetime of such gas in the atmosphere. Accordingly, controlling emissions in small as well as large amounts is essential to prevent, slow the pace of, reduce the threats from, and mitigate global warming and its adverse effects.CommentsClose CommentsPermalink
‘(3) Because they induce global warming, greenhouse gas emissions cause or contribute to injuries to persons in the United States, including--CommentsClose CommentsPermalink
‘(A) adverse health effects such as disease and loss of life;CommentsClose CommentsPermalink
‘(B) displacement of human populations;CommentsClose CommentsPermalink
‘(C) damage to property and other interests related to ocean levels, acidification, and ice changes;CommentsClose CommentsPermalink
‘(D) severe weather and seasonal changes;CommentsClose CommentsPermalink
‘(E) disruption, costs, and losses to business, trade, employment, farms, subsistence, aesthetic enjoyment of the environment, recreation, culture, and tourism;CommentsClose CommentsPermalink
‘(F) damage to plants, forests, lands, and waters;CommentsClose CommentsPermalink
‘(G) harm to wildlife and habitat;CommentsClose CommentsPermalink
‘(H) scarcity of water and the decreased abundance of other natural resources;CommentsClose CommentsPermalink
‘(I) worsening of tropospheric air pollution;CommentsClose CommentsPermalink
‘(J) substantial threats of similar damage; andCommentsClose CommentsPermalink
‘(K) other harm.CommentsClose CommentsPermalink
‘(4) That many of these effects and risks of future effects of global warming are widely shared does not minimize the adverse effects individual persons have suffered, will suffer, and are at risk of suffering because of global warming.CommentsClose CommentsPermalink
‘(5) That some of the adverse and potentially catastrophic effects of global warming are at risk of occurring and not a certainty does not negate the harm persons suffer from actions that increase the likelihood, extent, and severity of such future impacts.CommentsClose CommentsPermalink
‘(6) Nations of the world look to the United States for leadership in addressing the threat of and harm from global warming. Full implementation of the Safe Climate Act is critical to engage other nations in an international effort to mitigate the threat of and harm from global warming.CommentsClose CommentsPermalink
‘(7) Global warming and its adverse effects are occurring and are likely to continue and increase in magnitude, and to do so at a greater and more harmful rate, unless the Safe Climate Act is fully implemented and enforced in an expeditious manner.CommentsClose CommentsPermalink
‘(b) Purpose- It is the general purpose of the Safe Climate Act to help prevent, reduce the pace of, mitigate, and remedy global warming and its adverse effects. To fulfill such purpose, it is necessary to--CommentsClose CommentsPermalink
‘(1) require the timely fulfillment of all governmental acts and duties, both substantive and procedural, and the prompt compliance of covered entities with the requirements of the Safe Climate Act;CommentsClose CommentsPermalink
‘(2) establish and maintain an effective, transparent, and fair market for emission allowances and preserve the integrity of the cap on emissions and of offset credits;CommentsClose CommentsPermalink
‘(3) advance the production and deployment of clean energy and energy efficiency technologies; andCommentsClose CommentsPermalink
‘(4) ensure effective enforcement of the Safe Climate Act by citizens, States, Indian tribes, and all levels of government because each violation of the Safe Climate Act is likely to result in an additional increment of greenhouse gas emission and will slow the pace of implementation of the Safe Climate Act and delay the achievement of the goals set forth in section 702, and cause or contribute to global warming and its adverse effects.CommentsClose CommentsPermalink
‘SEC. 702. ECONOMY-WIDE REDUCTION GOALS.
‘The goals of the Safe Climate Act are to reduce steadily the quantity of United States greenhouse gas emissions such that--CommentsClose CommentsPermalink
‘(1) in 2012, the quantity of United States greenhouse gas emissions does not exceed 97 percent of the quantity of United States greenhouse gas emissions in 2005;CommentsClose CommentsPermalink
‘(2) in 2020, the quantity of United States greenhouse gas emissions does not exceed 80 percent of the quantity of United States greenhouse gas emissions in 2005;CommentsClose CommentsPermalink
‘(3) in 2030, the quantity of United States greenhouse gas emissions does not exceed 58 percent of the quantity of United States greenhouse gas emissions in 2005; andCommentsClose CommentsPermalink
‘(4) in 2050, the quantity of United States greenhouse gas emissions does not exceed 17 percent of the quantity of United States greenhouse gas emissions in 2005.CommentsClose CommentsPermalink
‘SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES.
‘(a) In General- The regulations issued under section 721 shall cap and reduce annually the greenhouse gas emissions of capped sources each calendar year beginning in 2012 such that--CommentsClose CommentsPermalink
‘(1) in 2012, the quantity of greenhouse gas emissions from capped sources does not exceed 97 percent of the quantity of greenhouse gas emissions from such sources in 2005;CommentsClose CommentsPermalink
‘(2) in 2020, the quantity of greenhouse gas emissions from capped sources does not exceed 83 percent of the quantity of greenhouse gas emissions from such sources in 2005;CommentsClose CommentsPermalink
‘(3) in 2030, the quantity of greenhouse gas emissions from capped sources does not exceed 58 percent of the quantity of greenhouse gas emissions from such sources in 2005; andCommentsClose CommentsPermalink
‘(4) in 2050, the quantity of greenhouse gas emissions from capped sources does not exceed 17 percent of the quantity of greenhouse gas emissions from such sources in 2005.CommentsClose CommentsPermalink
‘(b) Definition- For purposes of this section, the term ‘greenhouse gas emissions from such sources in 2005’ means emissions to which section 722 would have applied if the requirements of this title for the specified year had been in effect for 2005.CommentsClose CommentsPermalink
‘SEC. 704. SUPPLEMENTAL POLLUTION REDUCTIONS.
‘For the purposes of decreasing the likelihood of catastrophic climate change, preserving tropical forests, building capacity to generate offset credits, and facilitating international action on global warming, the Administrator shall set aside the percentage specified in section 781 of the quantity of emission allowances established under section 721(a) for each year, to be used to achieve a reduction of greenhouse gas emissions from deforestation in developing countries in accordance with part E. In 2020, activities supported under part E shall provide greenhouse gas reductions in an amount equal to an additional 10 percentage points of reductions from United States greenhouse gas emissions in 2005. The Administrator shall distribute these allowances with respect to activities in countries that enter into and implement agreements or arrangements relating to reduced deforestation as described in section 754(a)(2).CommentsClose CommentsPermalink
‘SEC. 705. REVIEW AND PROGRAM RECOMMENDATIONS.
‘(a) In General- The Administrator shall, in consultation with appropriate Federal agencies, submit to Congress a report not later than July 1, 2013, and every 4 years thereafter, that includes--CommentsClose CommentsPermalink
‘(1) an analysis of key findings based on the latest scientific information and data relevant to global climate change;CommentsClose CommentsPermalink
‘(2) an analysis of capabilities to monitor and verify greenhouse gas reductions on a worldwide basis, including for the United States, as required under the Safe Climate Act; andCommentsClose CommentsPermalink
‘(3) an analysis of the status of worldwide greenhouse gas reduction efforts, including implementation of the Safe Climate Act and other policies, both domestic and international, for reducing greenhouse gas emissions, preventing dangerous atmospheric concentrations of greenhouse gases, preventing significant irreversible consequences of climate change, and reducing vulnerability to the impacts of climate change.CommentsClose CommentsPermalink
‘(b) Exception- Paragraph (3) of subsection (a) shall not apply to the first report submitted under such subsection.CommentsClose CommentsPermalink
‘(c) Latest Scientific Information- The analysis required under subsection (a)(1) shall--CommentsClose CommentsPermalink
‘(1) address existing scientific information and reports, considering, to the greatest extent possible, the most recent assessment report of the Intergovernmental Panel on Climate Change, reports by the United States Global Change Research Program, the Natural Resources Climate Change Adaptation Panel established under section 475 of the American Clean Energy and Security Act of 2009, and Federal agencies, and the European Union’s global temperature data assessment; andCommentsClose CommentsPermalink
‘(2) review trends and projections for--CommentsClose CommentsPermalink
‘(A) global and country-specific annual emissions of greenhouse gases, and cumulative greenhouse gas emissions produced between 1850 and the present, including--CommentsClose CommentsPermalink
‘(i) global cumulative emissions of anthropogenic greenhouse gases;CommentsClose CommentsPermalink
‘(ii) global annual emissions of anthropogenic greenhouse gases; andCommentsClose CommentsPermalink
‘(iii) by country, annual total, annual per capita, and cumulative anthropogenic emissions of greenhouse gases for the top 50 emitting nations;CommentsClose CommentsPermalink
‘(B) significant changes, both globally and by region, in annual net non-anthropogenic greenhouse gas emissions from natural sources, including permafrost, forests, or oceans;CommentsClose CommentsPermalink
‘(C) global atmospheric concentrations of greenhouse gases, expressed in annual concentration units as well as carbon dioxide equivalents based on 100-year global warming potentials;CommentsClose CommentsPermalink
‘(D) major climate forcing factors, such as aerosols;CommentsClose CommentsPermalink
‘(E) global average temperature, expressed as seasonal and annual averages in land, ocean, and land-plus-ocean averages; andCommentsClose CommentsPermalink
‘(F) sea level rise;CommentsClose CommentsPermalink
‘(3) assess the current and potential impacts of global climate change on--CommentsClose CommentsPermalink
‘(A) human populations, including impacts on public health, economic livelihoods, subsistence, human infrastructure, and displacement or permanent relocation due to flooding, severe weather, extended drought, erosion, or other ecosystem changes;CommentsClose CommentsPermalink
‘(B) freshwater systems, including water resources for human consumption and agriculture and natural and managed ecosystems, flood and drought risks, and relative humidity;CommentsClose CommentsPermalink
‘(C) the carbon cycle, including impacts related to the thawing of permafrost, the frequency and intensity of wildfire, and terrestrial and ocean carbon sinks;CommentsClose CommentsPermalink
‘(D) ecosystems and animal and plant populations, including impacts on species abundance, phenology, and distribution;CommentsClose CommentsPermalink
‘(E) oceans and ocean ecosystems, including effects on sea level, ocean acidity, ocean temperatures, coral reefs, ocean circulation, fisheries, and other indicators of ocean ecosystem health;CommentsClose CommentsPermalink
‘(F) the cryosphere, including effects on ice sheet mass balance, mountain glacier mass balance, and sea-ice extent and volume;CommentsClose CommentsPermalink
‘(G) changes in the intensity, frequency, or distribution of severe weather events, including precipitation, tropical cyclones, tornadoes, and severe heat waves;CommentsClose CommentsPermalink
‘(H) agriculture and forest systems; andCommentsClose CommentsPermalink
‘(I) any other indicators the Administrator deems appropriate;CommentsClose CommentsPermalink
‘(4) summarize any significant socio-economic impacts of climate change in the United States, including the territories of the United States, drawing on work by Federal agencies and the academic literature, including impacts on--CommentsClose CommentsPermalink
‘(A) public health;CommentsClose CommentsPermalink
‘(B) economic livelihoods and subsistence;CommentsClose CommentsPermalink
‘(C) displacement or permanent relocation due to flooding, severe weather, extended drought, erosion, or other ecosystem changes;CommentsClose CommentsPermalink
‘(D) human infrastructure, including coastal infrastructure vulnerability to extreme events and sea level rise, river floodplain infrastructure, and sewer and water management systems;CommentsClose CommentsPermalink
‘(E) agriculture and forests, including effects on potential growing season, distribution, and yield;CommentsClose CommentsPermalink
‘(F) water resources for human consumption, agriculture and natural and managed ecosystems, flood and drought risks, and relative humidity;CommentsClose CommentsPermalink
‘(G) energy supply and use; andCommentsClose CommentsPermalink
‘(H) transportation;CommentsClose CommentsPermalink
‘(5) in assessing risks and impacts, use a risk management framework, including both qualitative and quantitative measures, to assess the observed and projected impacts of current and future climate change, accounting for--CommentsClose CommentsPermalink
‘(A) both monetized and non-monetized losses;CommentsClose CommentsPermalink
‘(B) potential nonlinear, abrupt, or essentially irreversible changes in the climate system;CommentsClose CommentsPermalink
‘(C) potential nonlinear increases in the cost of impacts;CommentsClose CommentsPermalink
‘(D) potential low-probability, high impact events; andCommentsClose CommentsPermalink
‘(E) whether impacts are transitory or essentially permanent; andCommentsClose CommentsPermalink
‘(6) based on the findings of the Administrator under this section, as well as assessments produced by the Intergovernmental Panel on Climate Change, the United States Global Change Research program, and other relevant scientific entities--CommentsClose CommentsPermalink
‘(A) describe increased risks to natural systems and society that would result from an increase in global average temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above the pre-industrial average or an increase in atmospheric greenhouse gas concentrations above 450 parts per million carbon dioxide equivalent; andCommentsClose CommentsPermalink
‘(B) identify and assess--CommentsClose CommentsPermalink
‘(i) significant residual risks not avoided by the thresholds described in subparagraph (A);CommentsClose CommentsPermalink
‘(ii) alternative thresholds or targets that may more effectively limit the risks identified pursuant to clause (i); andCommentsClose CommentsPermalink
‘(iii) thresholds above those described in subparagraph (A) which significantly increase the risk of certain impacts or render them essentially permanent.CommentsClose CommentsPermalink
‘(d) Status of Monitoring and Verification Capabilities to Evaluate Greenhouse Gas Reduction Efforts- The analysis required under subsection (a)(2) shall evaluate the capabilities of the monitoring, reporting, and verification systems used to quantify progress in achieving reductions in greenhouse gas emissions both globally and in the United States (as described in section 702), including--CommentsClose CommentsPermalink
‘(1) quantification of emissions and emission reductions by entities participating in the cap and trade program under this title;CommentsClose CommentsPermalink
‘(2) quantification of emissions and emission reductions by entities participating in the offset program under this title;CommentsClose CommentsPermalink
‘(3) quantification of emission and emissions reductions by entities regulated by performance standards;CommentsClose CommentsPermalink
‘(4) quantification of aggregate net emissions and emissions reductions by the United States; andCommentsClose CommentsPermalink
‘(5) quantification of global changes in net emissions and in sources and sinks of greenhouse gases.CommentsClose CommentsPermalink
‘(e) Status of Greenhouse Gas Reduction Efforts- The analysis required under subsection (a)(3) shall address--CommentsClose CommentsPermalink
‘(1) whether the programs under Safe Climate Act and other Federal statutes are resulting in sufficient United States greenhouse gas emissions reductions to meet the emissions reduction goals described in section 702, taking into account the use of offsets; andCommentsClose CommentsPermalink
‘(2) whether United States actions, taking into account international actions, commitments, and trends, and considering the range of plausible emissions scenarios, are sufficient to avoid--CommentsClose CommentsPermalink
‘(A) atmospheric greenhouse gas concentrations above 450 parts per million carbon dioxide equivalent;CommentsClose CommentsPermalink
‘(B) global average surface temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above the pre-industrial average, or such other temperature thresholds as the Administrator deems appropriate; andCommentsClose CommentsPermalink
‘(C) other temperature or greenhouse gas thresholds identified pursuant to subsection (c)(6)(B).CommentsClose CommentsPermalink
‘(f) Recommendations-CommentsClose CommentsPermalink
‘(1) LATEST SCIENTIFIC INFORMATION- Based on the analysis described in subsection (a)(1), each report under subsection (a) shall identify actions that could be taken to--CommentsClose CommentsPermalink
‘(A) improve the characterization of changes in the earth-climate system and impacts of global climate change;CommentsClose CommentsPermalink
‘(B) better inform decision making and actions related to global climate change;CommentsClose CommentsPermalink
‘(C) mitigate risks to natural and social systems; andCommentsClose CommentsPermalink
‘(D) design policies to better account for climate risks.CommentsClose CommentsPermalink
‘(2) MONITORING, REPORTING AND VERIFICATION- Based on the analysis described in subsection (a)(2), each report under subsection (a) shall identify key gaps in measurement, reporting, and verification capabilities and make recommendations to improve the accuracy and reliability of those capabilities.CommentsClose CommentsPermalink
‘(3) STATUS OF GREENHOUSE GAS REDUCTION EFFORTS- Based on the analysis described in subsection (a)(3), taking into account international actions, commitments, and trends, and considering the range of plausible emissions scenarios, each report under subsection (a) shall identify--CommentsClose CommentsPermalink
‘(A) the quantity of additional reductions required to meet the emissions reduction goals in section 702;CommentsClose CommentsPermalink
‘(B) the quantity of additional reductions in global greenhouse gas emissions needed to avoid the concentration and temperature thresholds identified in subsection (e); andCommentsClose CommentsPermalink
‘(C) possible strategies and approaches for achieving additional reductions.CommentsClose CommentsPermalink
‘(g) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary.CommentsClose CommentsPermalink
‘SEC. 706. NATIONAL ACADEMY REVIEW.
‘(a) In General- Not later than 1 year after the date of enactment of this title, the Administrator shall offer to enter into a contract with the National Academy of Sciences (in this section referred to as the ‘Academy’) under which the Academy shall, not later than July 1, 2014, and every 4 years thereafter, submit to Congress and the Administrator a report that includes--CommentsClose CommentsPermalink
‘(1) a review of the most recent report and recommendations issued under section 705; andCommentsClose CommentsPermalink
‘(2) an analysis of technologies to achieve reductions in greenhouse gas emissions.CommentsClose CommentsPermalink
‘(b) Failure to Issue a Report- In the event that the Administrator has not issued all or part of the most recent report required under section 705, the Academy shall conduct its own review and analysis of the required information.CommentsClose CommentsPermalink
‘(c) Technological Information- The analysis required under subsection (a)(2) shall--CommentsClose CommentsPermalink
‘(1) review existing technological information and reports, including the most recent reports by the Department of Energy, the United States Global Change Research Program, the Intergovernmental Panel on Climate Change, and the International Energy Agency and any other relevant information on technologies or practices that reduce or limit greenhouse gas emissions;CommentsClose CommentsPermalink
‘(2) include the participation of technical experts from relevant private industry sectors;CommentsClose CommentsPermalink
‘(3) review the current and future projected deployment of technologies and practices in the United States that reduce or limit greenhouse gas emissions, including--CommentsClose CommentsPermalink
‘(A) technologies for capture and sequestration of greenhouse gases;CommentsClose CommentsPermalink
‘(B) technologies to improve energy efficiency;CommentsClose CommentsPermalink
‘(C) low- or zero-greenhouse gas emitting energy technologies;CommentsClose CommentsPermalink
‘(D) low- or zero-greenhouse gas emitting fuels;CommentsClose CommentsPermalink
‘(E) biological sequestration practices and technologies; andCommentsClose CommentsPermalink
‘(F) any other technologies the Academy deems relevant; andCommentsClose CommentsPermalink
‘(4) review and compare the emissions reduction potential, commercial viability, market penetration, investment trends, and deployment of the technologies described in paragraph (3), including--CommentsClose CommentsPermalink
‘(A) the need for additional research and development, including publicly funded research and development;CommentsClose CommentsPermalink
‘(B) the extent of commercial deployment, including, where appropriate, a comparison to the cost and level of deployment of conventional fossil fuel-fired energy technologies and devices; andCommentsClose CommentsPermalink
‘(C) an evaluation of any substantial technological, legal, or market-based barriers to commercial deployment.CommentsClose CommentsPermalink
‘(d) Recommendations-CommentsClose CommentsPermalink
‘(1) LATEST SCIENTIFIC INFORMATION- Based on the review described in subsection (a)(1), the Academy shall identify actions that could be taken to--CommentsClose CommentsPermalink
‘(A) improve the characterization of changes in the earth-climate system and impacts of global climate change;CommentsClose CommentsPermalink
‘(B) better inform decision making and actions related to global climate change;CommentsClose CommentsPermalink
‘(C) mitigate risks to natural and social systems;CommentsClose CommentsPermalink
‘(D) design policies to better account for climate risks; andCommentsClose CommentsPermalink
‘(E) improve the accuracy and reliability of capabilities to monitor, report, and verify greenhouse gas emissions reduction efforts.CommentsClose CommentsPermalink
‘(2) TECHNOLOGICAL INFORMATION- Based on the analysis described in subsection (a)(2), the Academy shall identify--CommentsClose CommentsPermalink
‘(A) additional emissions reductions that may be possible as a result of technologies described in the analysis;CommentsClose CommentsPermalink
‘(B) barriers to the deployment of such technologies; andCommentsClose CommentsPermalink
‘(C) actions that could be taken to speed deployment of such technologies.CommentsClose CommentsPermalink
‘(3) STATUS OF GREENHOUSE GAS REDUCTION EFFORTS- Based on the review described in subsection (a)(1), the Academy shall identify--CommentsClose CommentsPermalink
‘(A) the quantity of additional reductions required to meet the emissions reduction goals described in section 702; andCommentsClose CommentsPermalink
‘(B) the quantity of additional reductions in global greenhouse gas emissions needed to avoid the concentration and temperature thresholds described in section 705(c)(6)(A) or identified pursuant to section 705(c)(6)(B).CommentsClose CommentsPermalink
‘(e) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary.CommentsClose CommentsPermalink
‘SEC. 707. PRESIDENTIAL RESPONSE AND RECOMMENDATIONS.
‘(a) Agency Actions- The President shall direct relevant Federal agencies to use existing statutory authority to take appropriate actions identified in the reports submitted under sections 705 and 706, and to address any shortfalls identified in such reports, not later than July 1, 2015, and every 4 years thereafter.CommentsClose CommentsPermalink
‘(b) Plan- In the event that the Administrator or the National Academy of Sciences has concluded, in the most recent report submitted under section 705 or 706 respectively, that the United States will not achieve the necessary domestic greenhouse gas emissions reductions, or that global actions will not maintain safe global average surface temperature and atmospheric greenhouse gas concentration thresholds, the President shall, not later than July 1, 2015, and every 4 years thereafter, submit to Congress a plan identifying domestic and international actions that will achieve necessary additional greenhouse gas reductions, including any recommendations for legislative action.CommentsClose CommentsPermalink
‘PART B--DESIGNATION AND REGISTRATION OF GREENHOUSE GASES
‘SEC. 711. DESIGNATION OF GREENHOUSE GASES.
‘(a) Greenhouse Gases- For purposes of this title, the following are greenhouse gases:CommentsClose CommentsPermalink
‘(1) Carbon dioxide.CommentsClose CommentsPermalink
‘(2) Methane.CommentsClose CommentsPermalink
‘(3) Nitrous oxide.CommentsClose CommentsPermalink
‘(4) Sulfur hexafluoride.CommentsClose CommentsPermalink
‘(5) Hydrofluorocarbons emitted from a chemical manufacturing process at an industrial stationary source.CommentsClose CommentsPermalink
‘(6) Any perfluorocarbon.CommentsClose CommentsPermalink
‘(7) Nitrogen trifluoride.CommentsClose CommentsPermalink
‘(8) Any other anthropogenic gas designated as a greenhouse gas by the Administrator under this section.CommentsClose CommentsPermalink
‘(b) Determination on Administrator’s Initiative- The Administrator shall, by rule--CommentsClose CommentsPermalink
‘(1) determine whether 1 metric ton of another anthropogenic gas makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide;CommentsClose CommentsPermalink
‘(2) determine the carbon dioxide equivalent value for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1);CommentsClose CommentsPermalink
‘(3) for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1) and that is used as a substitute for a class I or class II substance under title VI, determine the extent to which to regulate that gas under section 619 and specify appropriate compliance obligations under section 619;CommentsClose CommentsPermalink
‘(4) designate as a greenhouse gas for purposes of this title each gas for which the Administrator makes an affirmative determination under paragraph (1), to the extent that it is not regulated under section 619; andCommentsClose CommentsPermalink
‘(5) specify the appropriate compliance obligations under this title for each gas designated as a greenhouse gas under paragraph (4).CommentsClose CommentsPermalink
‘(c) Petitions to Designate a Greenhouse Gas-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Any person may petition the Administrator to designate as a greenhouse gas any anthropogenic gas 1 metric ton of which makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide.CommentsClose CommentsPermalink
‘(2) CONTENTS OF PETITION- The petitioner shall provide sufficient data, as specified by rule by the Administrator, to demonstrate that the gas is likely to be designated as a greenhouse gas and is likely to be produced, imported, used, or emitted in the United States. To the extent practicable, the petitioner shall also identify producers, importers, distributors, users, and emitters of the gas in the United States.CommentsClose CommentsPermalink
‘(3) REVIEW AND ACTION BY THE ADMINISTRATOR- Not later than 90 days after receipt of a petition under paragraph (2), the Administrator shall determine whether the petition is complete and notify the petitioner and the public of the decision.CommentsClose CommentsPermalink
‘(4) ADDITIONAL INFORMATION- The Administrator may require producers, importers, distributors, users, or emitters of the gas to provide information on the contribution of the gas to global warming over 100 years compared to carbon dioxide.CommentsClose CommentsPermalink
‘(5) TREATMENT OF PETITION- For any substance used as a substitute for a class I or class II substance under title VI, the Administrator may elect to treat a petition under this subsection as a petition to list the substance as a class II, group II substance under section 619, and may require the petition to be amended to address listing criteria promulgated under that section.CommentsClose CommentsPermalink
‘(6) DETERMINATION- Not later than 2 years after receipt of a complete petition, the Administrator shall, after notice and an opportunity for comment--CommentsClose CommentsPermalink
‘(A) issue and publish in the Federal Register--CommentsClose CommentsPermalink
‘(i) a determination that 1 metric ton of the gas does not make a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide; andCommentsClose CommentsPermalink
‘(ii) an explanation of the decision; orCommentsClose CommentsPermalink
‘(B) determine that 1 metric ton of the gas makes a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide, and take the actions described in subsection (b) with respect to such gas.CommentsClose CommentsPermalink
‘(7) GROUNDS FOR DENIAL- The Administrator may not deny a petition under this subsection solely on the basis of inadequate Environmental Protection Agency resources or time for review.CommentsClose CommentsPermalink
‘(d) Science Advisory Board Consultation-CommentsClose CommentsPermalink
‘(1) CONSULTATION- The Administrator shall--CommentsClose CommentsPermalink
‘(A) give notice to the Science Advisory Board prior to making a determination under subsection (b)(1), (c)(6), or (e)(2)(B);CommentsClose CommentsPermalink
‘(B) consider the written recommendations of the Science Advisory Board under paragraph (2) regarding the determination; andCommentsClose CommentsPermalink
‘(C) consult with the Science Advisory Board regarding such determination, including consultation subsequent to receipt of such written recommendations.CommentsClose CommentsPermalink
‘(2) FORMULATION OF RECOMMENDATIONS- Upon receipt of notice under paragraph (1)(A) regarding a pending determination under subsection (b)(1), (c)(6), or (e)(2)(B), the Science Advisory Board shall--CommentsClose CommentsPermalink
‘(A) formulate recommendations regarding such determination, subject to a peer review process; andCommentsClose CommentsPermalink
‘(B) submit such recommendations in writing to the Administrator.CommentsClose CommentsPermalink
‘(e) Manufacturing and Emission Notices-CommentsClose CommentsPermalink
‘(1) NOTICE REQUIREMENT-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Effective 24 months after the date of enactment of this title, no person may manufacture or introduce into interstate commerce a fluorinated gas, or emit a significant quantity, as determined by the Administrator, of any fluorinated gas that is generated as a byproduct during the production or use of another fluorinated gas, unless--CommentsClose CommentsPermalink
‘(i) the gas is designated as a greenhouse gas under this section or is an ozone-depleting substance listed as a class I or class II substance under title VI;CommentsClose CommentsPermalink
‘(ii) the Administrator has determined that 1 metric ton of such gas does not make a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide; orCommentsClose CommentsPermalink
‘(iii) the person manufacturing or importing the gas for distribution into interstate commerce, or emitting the gas, has submitted to the Administrator, at least 90 days before the start of such manufacture, introduction into commerce, or emission, a notice of such person’s manufacture, introduction into commerce, or emission of such gas, and the Administrator has not determined that that notice or a substantially similar notice submitted by that person is incomplete.CommentsClose CommentsPermalink
‘(B) ALTERNATIVE COMPLIANCE- For a gas that is a substitute for a class I or class II substance under title VI and either has been listed as acceptable for use under section 612 or is currently subject to evaluation under section 612, the Administrator may accept the notice and information provided pursuant to that section as fulfilling the obligation under clause (iii) of subparagraph (A).CommentsClose CommentsPermalink
‘(2) REVIEW AND ACTION BY THE ADMINISTRATOR-CommentsClose CommentsPermalink
‘(A) COMPLETENESS- Not later than 90 days after receipt of notice under paragraph (1)(A)(iii) or (B), the Administrator shall determine whether the notice is complete.CommentsClose CommentsPermalink
‘(B) DETERMINATION- If the Administrator determines that the notice is complete, the Administrator shall, after notice and an opportunity for comment, not later than 12 months after receipt of the notice--CommentsClose CommentsPermalink
‘(i) issue and publish in the Federal Register--CommentsClose CommentsPermalink
‘(I) a determination that 1 metric ton of the gas does not make a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide; andCommentsClose CommentsPermalink
‘(II) an explanation of the decision; orCommentsClose CommentsPermalink
‘(ii) determine that 1 metric ton of the gas makes a contribution to global warming over 100 years that is equal to or greater than that made by 1 metric ton of carbon dioxide, and take the actions described in subsection (b) with respect to such gas.CommentsClose CommentsPermalink
‘(f) Regulations- Not later than one year after the date of enactment of this title, the Administrator shall promulgate regulations to carry out this section. Such regulations shall include--CommentsClose CommentsPermalink
‘(1) requirements for the contents of a petition submitted under subsection (c);CommentsClose CommentsPermalink
‘(2) requirements for the contents of a notice required under subsection (e); andCommentsClose CommentsPermalink
‘(3) methods and standards for evaluating the carbon dioxide equivalent value of a gas.CommentsClose CommentsPermalink
‘(g) Gases Regulated Under Title VI- The Administrator shall not designate a gas as a greenhouse gas under this section to the extent that the gas is regulated under title VI.CommentsClose CommentsPermalink
‘(h) Savings Clause- Nothing in this section shall be interpreted to relieve any person from complying with the requirements of section 612.CommentsClose CommentsPermalink
‘SEC. 712. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE GASES.
‘(a) Measure of Quantity of Greenhouse Gases- Any provision of this title or title VIII that refers to a quantity or percentage of a quantity of greenhouse gases shall mean the quantity or percentage of the greenhouse gases expressed in carbon dioxide equivalents.CommentsClose CommentsPermalink
‘(b) Initial Value- Except as provided by the Administrator under this section or section 711--CommentsClose CommentsPermalink
‘(1) the carbon dioxide equivalent value of greenhouse gases for purposes of this Act shall be as follows:CommentsClose CommentsPermalink
‘CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASESCommentsClose CommentsPermalink
----------------------------------------------------------------------CommentsClose CommentsPermalink
Greenhouse gas (1 metric ton) Carbon dioxide equivalent (metric tons) CommentsClose CommentsPermalink
----------------------------------------------------------------------CommentsClose CommentsPermalink
Carbon dioxide 1 CommentsClose CommentsPermalink
Methane 25 CommentsClose CommentsPermalink
Nitrous oxide 298 CommentsClose CommentsPermalink
HFC-23 14,800 CommentsClose CommentsPermalink
HFC-125 3,500 CommentsClose CommentsPermalink
HFC-134a 1,430 CommentsClose CommentsPermalink
HFC-143a 4,470 CommentsClose CommentsPermalink
HFC-152a 124 CommentsClose CommentsPermalink
HFC-227ea 3,220 CommentsClose CommentsPermalink
HFC-236fa 9,810 CommentsClose CommentsPermalink
HFC-4310mee 1,640 CommentsClose CommentsPermalink
CF4 7,390 CommentsClose CommentsPermalink
C2F6 12,200 CommentsClose CommentsPermalink
C4F10 8,860 CommentsClose CommentsPermalink
C6F14 9,300 CommentsClose CommentsPermalink
SF6 22,800 CommentsClose CommentsPermalink
NF3 17,200 CommentsClose CommentsPermalink
----------------------------------------------------------------------CommentsClose CommentsPermalink
; andCommentsClose CommentsPermalink
‘(2) the carbon dioxide equivalent value for purposes of this Act for any greenhouse gas not listed in the table under paragraph (1) shall be the 100-year Global Warming Potentials provided in the Intergovernmental Panel on Climate Change Fourth Assessment Report.CommentsClose CommentsPermalink
‘(c) Periodic Review-CommentsClose CommentsPermalink
‘(1) Not later than February 1, 2017, and (except as provided in paragraph (3)) not less than every 5 years thereafter, the Administrator shall--CommentsClose CommentsPermalink
‘(A) review and, if appropriate, revise the carbon dioxide equivalent values established under this section or section 711(b)(2), based on a determination of the number of metric tons of carbon dioxide that makes the same contribution to global warming over 100 years as 1 metric ton of each greenhouse gas; andCommentsClose CommentsPermalink
‘(B) publish in the Federal Register the results of that review and any revisions.CommentsClose CommentsPermalink
‘(2) A revised determination published in the Federal Register under paragraph (1)(B) shall take effect for greenhouse gas emissions starting on January 1 of the first calendar year starting at least 9 months after the date on which the revised determination was published.CommentsClose CommentsPermalink
‘(3) The Administrator may decrease the frequency of review and revision under paragraph (1) if the Administrator determines that such decrease is appropriate in order to synchronize such review and revision with any similar review process carried out pursuant to the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992, or to an agreement negotiated under that convention, except that in no event shall the Administrator carry out such review and revision any less frequently than every 10 years.CommentsClose CommentsPermalink
‘(d) Methodology- In setting carbon dioxide equivalent values, for purposes of this section or section 711, the Administrator shall take into account publications by the Intergovernmental Panel on Climate Change or a successor organization under the auspices of the United Nations Environmental Programme and the World Meteorological Organization.CommentsClose CommentsPermalink
‘SEC. 713. GREENHOUSE GAS REGISTRY.
‘(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
‘(1) CLIMATE REGISTRY- The term ‘Climate Registry’ means the greenhouse gas emissions registry jointly established and managed by more than 40 States and Indian tribes in 2007 to collect high-quality greenhouse gas emission data from facilities, corporations, and other organizations to support various greenhouse gas emission reporting and reduction policies for the member States and Indian tribes.CommentsClose CommentsPermalink
‘(2) REPORTING ENTITY- The term ‘reporting entity’ means--CommentsClose CommentsPermalink
‘(A) a covered entity;CommentsClose CommentsPermalink
‘(B) an entity that--CommentsClose CommentsPermalink
‘(i) would be a covered entity if it had emitted, produced, imported, manufactured, or delivered in 2008 or any subsequent year more than the applicable threshold level in the definition of covered entity in paragraph (13) of section 700; andCommentsClose CommentsPermalink
‘(ii) has emitted, produced, imported, manufactured, or delivered in 2008 or any subsequent year more than the applicable threshold level in the definition of covered entity in paragraph (13) of section 700, provided that the figure of 25,000 tons of carbon dioxide equivalent is read instead as 10,000 tons of carbon dioxide equivalent and the figure of 460,000,000 cubic feet is read instead as 184,000,000 cubic feet;CommentsClose CommentsPermalink
‘(C) any other entity that emits a greenhouse gas, or produces, imports, manufactures, or delivers material whose use results or may result in greenhouse gas emissions if the Administrator determines that reporting under this section by such entity will help achieve the purposes of this title or title VIII;CommentsClose CommentsPermalink
‘(D) any vehicle fleet with emissions of more than 25,000 tons of carbon dioxide equivalent on an annual basis, if the Administrator determines that the inclusion of such fleet will help achieve the purposes of this title or title VIII; orCommentsClose CommentsPermalink
‘(E) any entity that delivers electricity to a facility in an energy-intensive industrial sector that meets the energy or greenhouse gas intensity criteria in section 764(b)(2)(A)(i).CommentsClose CommentsPermalink
‘(b) Regulations-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than 6 months after the date of enactment of this title, the Administrator shall issue regulations establishing a Federal greenhouse gas registry. Such regulations shall--CommentsClose CommentsPermalink
‘(A) require reporting entities to submit to the Administrator data on--CommentsClose CommentsPermalink
‘(i) greenhouse gas emissions in the United States;CommentsClose CommentsPermalink
‘(ii) the production and manufacture in the United States, importation into the United States, and, at the discretion of the Administrator, exportation from the United States, of fuels and industrial gases the uses of which result or may result in greenhouse gas emissions;CommentsClose CommentsPermalink
‘(iii) deliveries in the United States of natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, the combustion of which result or may result in greenhouse gas emissions; andCommentsClose CommentsPermalink
‘(iv) the capture and sequestration of greenhouse gases;CommentsClose CommentsPermalink
‘(B) require covered entities and, where appropriate, other reporting entities to submit to the Administrator data sufficient to ensure compliance with or implementation of the requirements of this title;CommentsClose CommentsPermalink
‘(C) require reporting of electricity delivered to facilities in an energy-intensive industrial sector that meets the energy or greenhouse gas intensity criteria in section 764(b)(2)(A)(i);CommentsClose CommentsPermalink
‘(D) ensure the completeness, consistency, transparency, accuracy, precision, and reliability of such data;CommentsClose CommentsPermalink
‘(E) take into account the best practices from the most recent Federal, State, tribal, and international protocols for the measurement, accounting, reporting, and verification of greenhouse gas emissions, including protocols from the Climate Registry and other mandatory State or multistate authorized programs;CommentsClose CommentsPermalink
‘(F) take into account the latest scientific research;CommentsClose CommentsPermalink
‘(G) require that, for covered entities with respect to greenhouse gases to which section 722 applies, and, to the extent determined to be appropriate by the Administrator, for covered entities with respect to other greenhouse gases and for other reporting entities, submitted data are based on--CommentsClose CommentsPermalink
‘(i) continuous monitoring systems for fuel flow or emissions, such as continuous emission monitoring systems;CommentsClose CommentsPermalink
‘(ii) alternative systems that are demonstrated as providing data with the same precision, reliability, accessibility, and timeliness, or, to the extent the Administrator determines is appropriate for reporting small amounts of emissions, the same precision, reliability, and accessibility and similar timeliness, as data provided by continuous monitoring systems for fuel flow or emissions; orCommentsClose CommentsPermalink
‘(iii) alternative methodologies that are demonstrated to provide data with precision, reliability, accessibility, and timeliness, or, to the extent the Administrator determines is appropriate for reporting small amounts of emissions, precision, reliability, and accessibility, as similar as is technically feasible to that of data generally provided by continuous monitoring systems for fuel flow or emissions, if the Administrator determines that, with respect to a reporting entity, there is no continuous monitoring system or alternative system described in clause (i) or (ii) that is technically feasible;CommentsClose CommentsPermalink
‘(H) require that the Administrator, in determining the extent to which the requirement to use systems or methodologies in accordance with subparagraph (G) is appropriate for reporting entities other than covered entities or for greenhouse gases to which section 722 does not apply, consider the cost of using such systems and methodologies, and of using other systems and methodologies that are available and suitable, for quantifying the emissions involved in light of the purposes of this title, including the goal of collecting consistent entity-wide data;CommentsClose CommentsPermalink
‘(I) include methods for minimizing double reporting and avoiding irreconcilable double reporting of greenhouse gas emissions;CommentsClose CommentsPermalink
‘(J) establish measurement protocols for carbon capture and sequestration systems, taking into consideration the regulations promulgated under section 813;CommentsClose CommentsPermalink
‘(K) require that reporting entities provide the data required under this paragraph in reports submitted electronically to the Administrator, in such form and containing such information as may be required by the Administrator;CommentsClose CommentsPermalink
‘(L) include requirements for keeping records supporting or related to, and protocols for auditing, submitted data;CommentsClose CommentsPermalink
‘(M) establish consistent policies for calculating carbon content and greenhouse gas emissions for each type of fossil fuel with respect to which reporting is required;CommentsClose CommentsPermalink
‘(N) subsequent to implementation of policies developed under subparagraph (M), provide for immediate dissemination, to States, Indian tribes, and on the Internet, of all data reported under this section as soon as practicable after electronic audit by the Administrator and any resulting correction of data, except that data shall not be disseminated under this subparagraph if--CommentsClose CommentsPermalink
‘(i) its nondissemination is vital to the national security of the United States, as determined by the President; orCommentsClose CommentsPermalink
‘(ii) it is confidential business information that cannot be derived from information that is otherwise publicly available and that would cause significant calculable competitive harm if published, except that--CommentsClose CommentsPermalink
‘(I) data relating to greenhouse gas emissions, including any upstream or verification data from reporting entities, shall not be considered to be confidential business information; andCommentsClose CommentsPermalink
‘(II) data that is confidential business information shall be provided to a State or Indian tribe within whose jurisdiction the reporting entity is located, if the Administrator determines that such State or Indian tribe has in effect protections for confidential business information that are at least as protective as protections applicable to the Federal Government;CommentsClose CommentsPermalink
‘(O) prescribe methods by which the Administrator shall, in cases in which satisfactory data are not submitted to the Administrator for any period of time, estimate emission, production, importation, manufacture, or delivery levels--CommentsClose CommentsPermalink
‘(i) for covered entities with respect to greenhouse gas emissions, production, importation, manufacture, or delivery regulated under this title to ensure that emissions, production, importation, manufacture, or deliveries are not underreported, and to create a strong incentive for meeting data monitoring and reporting requirements--CommentsClose CommentsPermalink
‘(I) with a conservative estimate of the highest emission, production, importation, manufacture, or delivery levels that may have occurred during the period for which data are missing; orCommentsClose CommentsPermalink
‘(II) to the extent the Administrator considers appropriate, with an estimate of such levels assuming the unit is emitting, producing, importing, manufacturing, or delivering at a maximum potential level during the period, in order to ensure that such levels are not underreported and to create a strong incentive for meeting data monitoring and reporting requirements; andCommentsClose CommentsPermalink
‘(ii) for covered entities with respect to greenhouse gas emissions to which section 722 does not apply and for other reporting entities, with a reasonable estimate of the emission, production, importation, manufacture, or delivery levels that may have occurred during the period for which data are missing;CommentsClose CommentsPermalink
‘(P) require the designation of a designated representative for each reporting entity;CommentsClose CommentsPermalink
‘(Q) require an appropriate certification, by the designated representative for the reporting entity, of accurate and complete accounting of greenhouse gas emissions, as determined by the Administrator; andCommentsClose CommentsPermalink
‘(R) include requirements for other data necessary for accurate and complete accounting of greenhouse gas emissions, as determined by the Administrator, including data for quality assurance of monitoring systems, monitors and other measurement devices, and other data needed to verify reported emissions, production, importation, manufacture, or delivery.CommentsClose CommentsPermalink
‘(2) TIMING-CommentsClose CommentsPermalink
‘(A) CALENDAR YEARS 2007 THROUGH 2010- For a base period of calendar years 2007 through 2010, each reporting entity shall submit annual data required under this section to the Administrator not later than March 31, 2011. The Administrator may waive or modify reporting requirements for calendar years 2007 through 2010 for categories of reporting entities to the extent that the Administrator determines that the reporting entities did not keep data or records necessary to meet reporting requirements. The Administrator may, in addition to or in lieu of such requirements, collect information on energy consumption and production.CommentsClose CommentsPermalink
‘(B) SUBSEQUENT CALENDAR YEARS- For calendar year 2011 and each subsequent calendar year, each reporting entity shall submit quarterly data required under this section to the Administrator not later than 60 days after the end of the applicable quarter, except when the data is already being reported to the Administrator on an earlier timeframe for another program.CommentsClose CommentsPermalink
‘(3) WAIVER OF REPORTING REQUIREMENTS- The Administrator may waive reporting requirements under this section for specific entities to the extent that the Administrator determines that sufficient and equally or more reliable verified and timely data are available to the Administrator and the public on the Internet under other mandatory statutory requirements.CommentsClose CommentsPermalink
‘(4) ALTERNATIVE THRESHOLD- The Administrator may, by rule, establish applicability thresholds for reporting under this section using alternative metrics and levels, provided that such metrics and levels are easier to administer and cover the same size and type of sources as the threshold defined in this section.CommentsClose CommentsPermalink
‘(c) Interrelationship With Other Systems- In developing the regulations issued under subsection (b), the Administrator shall take into account the work done by the Climate Registry and other mandatory State or multistate programs. Such regulations shall include an explanation of any major differences in approach between the system established under the regulations and such registries and programs.CommentsClose CommentsPermalink
‘PART C--PROGRAM RULES
‘SEC. 721. EMISSION ALLOWANCES.
‘(a) In General- The Administrator shall establish a separate quantity of emission allowances for each calendar year starting in 2012, in the amounts prescribed under subsection (e).CommentsClose CommentsPermalink
‘(b) Identification Numbers- The Administrator shall assign to each emission allowance established under subsection (a) a unique identification number that includes the vintage year for that emission allowance.CommentsClose CommentsPermalink
‘(c) Legal Status of Emission Allowances-CommentsClose CommentsPermalink
‘(1) IN GENERAL- An allowance established by the Administrator under this title does not constitute a property right, nor does any credit or other instrument established or issued under the American Clean Energy and Security Act of 2009, and the amendments made thereby, for the purpose of demonstrating compliance with this title.CommentsClose CommentsPermalink
‘(2) TERMINATION OR LIMITATION- Nothing in this Act or any other provision of law shall be construed to limit or alter the authority of the United States, including the Administrator acting pursuant to statutory authority, to terminate or limit allowances or offset credits.CommentsClose CommentsPermalink
‘(3) OTHER PROVISIONS UNAFFECTED- Except as otherwise specified in this Act, nothing in this Act relating to allowances or offset credits established or issued under this title shall affect the application of any other provision of law to a covered entity, or the responsibility for a covered entity to comply with any such provision of law.CommentsClose CommentsPermalink
‘(d) Savings Provision- Nothing in this part shall be construed as requiring a change of any kind in any State law regulating electric utility rates and charges, or as affecting any State law regarding such State regulation, or as limiting State regulation (including any prudency review) under such a State law. Nothing in this part shall be construed as modifying the Federal Power Act or as affecting the authority of the Federal Energy Regulatory Commission under that Act. Nothing in this part shall be construed to interfere with or impair any program for competitive bidding for power supply in a State in which such program is established.CommentsClose CommentsPermalink
‘(e) Allowances for Each Calendar Year-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Except as provided in paragraph (2), the number of emission allowances established by the Administrator under subsection (a) for each calendar year shall be as provided in the following table:CommentsClose CommentsPermalink
----------------------------------------------------------------CommentsClose CommentsPermalink
‘Calendar year Emission allowances (in millions) CommentsClose CommentsPermalink
----------------------------------------------------------------CommentsClose CommentsPermalink
2012 4,627 CommentsClose CommentsPermalink
2013 4,544 CommentsClose CommentsPermalink
2014 5,099 CommentsClose CommentsPermalink
2015 5,003 CommentsClose CommentsPermalink
2016 5,482 CommentsClose CommentsPermalink
2017 5,375 CommentsClose CommentsPermalink
2018 5,269 CommentsClose CommentsPermalink
2019 5,162 CommentsClose CommentsPermalink
2020 5,056 CommentsClose CommentsPermalink
2021 4,903 CommentsClose CommentsPermalink
2022 4,751 CommentsClose CommentsPermalink
2023 4,599 CommentsClose CommentsPermalink
2024 4,446 CommentsClose CommentsPermalink
2025 4,294 CommentsClose CommentsPermalink
2026 4,142 CommentsClose CommentsPermalink
2027 3,990 CommentsClose CommentsPermalink
2028 3,837 CommentsClose CommentsPermalink
2029 3,685 CommentsClose CommentsPermalink
2030 3,533 CommentsClose CommentsPermalink
2031 3,408 CommentsClose CommentsPermalink
2032 3,283 CommentsClose CommentsPermalink
2033 3,158 CommentsClose CommentsPermalink
2034 3,033 CommentsClose CommentsPermalink
2035 2,908 CommentsClose CommentsPermalink
2036 2,784 CommentsClose CommentsPermalink
2037 2,659 CommentsClose CommentsPermalink
2038 2,534 CommentsClose CommentsPermalink
2039 2,409 CommentsClose CommentsPermalink
2040 2,284 CommentsClose CommentsPermalink
2041 2,159 CommentsClose CommentsPermalink
2042 2,034 CommentsClose CommentsPermalink
2043 1,910 CommentsClose CommentsPermalink
2044 1,785 CommentsClose CommentsPermalink
2045 1,660 CommentsClose CommentsPermalink
2046 1,535 CommentsClose CommentsPermalink
2047 1,410 CommentsClose CommentsPermalink
2048 1,285 CommentsClose CommentsPermalink
2049 1,160 CommentsClose CommentsPermalink
2050 and each year thereafter 1,035 CommentsClose CommentsPermalink
----------------------------------------------------------------CommentsClose CommentsPermalink
‘(2) REVISION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The Administrator may adjust, in accordance with subparagraph (B), the number of emission allowances established pursuant to paragraph (1) if, after notice and an opportunity for public comment, the Administrator determines that--CommentsClose CommentsPermalink
‘(i) United States greenhouse gas emissions in 2005 were other than 7,206 million metric tons carbon dioxide equivalent;CommentsClose CommentsPermalink
‘(ii) if the requirements of this title for 2012 had been in effect in 2005, section 722 would have required emission allowances to be held for other than 66.2 percent of United States greenhouse gas emissions in 2005;CommentsClose CommentsPermalink
‘(iii) if the requirements of this title for 2014 had been in effect in 2005, section 722 would have required emission allowances to be held for other than 75.7 percent of United States greenhouse gas emissions in 2005; orCommentsClose CommentsPermalink
‘(iv) if the requirements of this title for 2016 had been in effect in 2005, section 722 would have required emission allowances to be held for other than 84.5 percent United States greenhouse gas emissions in 2005.CommentsClose CommentsPermalink
‘(B) ADJUSTMENT FORMULA-CommentsClose CommentsPermalink
‘(i) IN GENERAL- If the Administrator adjusts under this paragraph the number of emission allowances established pursuant to paragraph (1), the number of emission allowances the Administrator establishes for any given calendar year shall equal the product of--CommentsClose CommentsPermalink
‘(I) United States greenhouse gas emissions in 2005, expressed in tons of carbon dioxide equivalent;CommentsClose CommentsPermalink
‘(II) the percent of United States greenhouse gas emissions in 2005, expressed in tons of carbon dioxide equivalent, that would have been subject to section 722 if the requirements of this title for the given calendar year had been in effect in 2005; andCommentsClose CommentsPermalink
‘(III) the percentage set forth for that calendar year in section 703(a), or determined under clause (ii) of this subparagraph.CommentsClose CommentsPermalink
‘(ii) TARGETS- In applying the portion of the formula in clause (i)(III) of this subparagraph, for calendar years for which a percentage is not listed in section 703(a), the Administrator shall use a uniform annual decline in the amount of emissions between the years that are specified.CommentsClose CommentsPermalink
‘(iii) CARBON DIOXIDE EQUIVALENT VALUE- If the Administrator adjusts under this paragraph the number of emission allowances established pursuant to paragraph (1), the Administrator shall use the carbon dioxide equivalent values established pursuant to section 712.CommentsClose CommentsPermalink
‘(iv) LIMITATION ON ADJUSTMENT TIMING- Once a calendar year has started, the Administrator may not adjust the number of emission allowances to be established for that calendar year.CommentsClose CommentsPermalink
‘(C) LIMITATION ON ADJUSTMENT AUTHORITY- The Administrator may adjust under this paragraph the number of emission allowances to be established pursuant to paragraph (1) only once.CommentsClose CommentsPermalink
‘(f) Compensatory Allowance-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The regulations promulgated under subsection (h) shall provide for the establishment and distribution of compensatory allowances for--CommentsClose CommentsPermalink
‘(A) the destruction, in 2012 or later, of fluorinated gases that are greenhouse gases if--CommentsClose CommentsPermalink
‘(i) allowances or offset credits were retired for their production or importation; andCommentsClose CommentsPermalink
‘(ii) such gases are not required to be destroyed under any other provision of law;CommentsClose CommentsPermalink
‘(B) the nonemissive use, in 2012 or later, of petroleum-based or coal-based liquid or gaseous fuel, petroleum coke, natural gas liquid, or natural gas as a feedstock, if allowances or offset credits were retired for the greenhouse gases that would have been emitted from their combustion; andCommentsClose CommentsPermalink
‘(C) the conversionary use, in 2012 or later, of fluorinated gases in a manufacturing process, including semiconductor research or manufacturing, if allowances or offset credits were retired for the production or importation of such gas.CommentsClose CommentsPermalink
‘(2) ESTABLISHMENT AND DISTRIBUTION-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Not later than 90 days after the end of each calendar year, the Administrator shall establish and distribute to the entity taking the actions described in subparagraph (A), (B), or (C) of paragraph (1) a quantity of compensatory allowances equivalent to the number of tons of carbon dioxide equivalent of avoided emissions achieved through such actions. In establishing the quantity of compensatory allowances, the Administrator shall take into account the carbon dioxide equivalent value of any greenhouse gas resulting from such action.CommentsClose CommentsPermalink
‘(B) SOURCE OF ALLOWANCES- Compensatory allowances established under this subsection shall not be emission allowances established under subsection (a).CommentsClose CommentsPermalink
‘(C) IDENTIFICATION NUMBERS- The Administrator shall assign to each compensatory allowance established under subparagraph (A) a unique identification number.CommentsClose CommentsPermalink
‘(3) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink
‘(A) the term ‘destruction’ means the conversion of a greenhouse gas by thermal, chemical, or other means to another gas or set of gases with little or no carbon dioxide equivalent value;CommentsClose CommentsPermalink
‘(B) the term ‘nonemissive use’ means the use of fossil fuel as a feedstock in an industrial or manufacturing process to the extent that greenhouse gases are not emitted from such process, and to the extent that the products of such process are not intended for use as, or to be contained in, a fuel; andCommentsClose CommentsPermalink
‘(C) the term ‘conversionary use’ means the conversion during research or manufacturing of a fluorinated gas into another greenhouse gas or set of gases with a lower carbon dioxide equivalent value.CommentsClose CommentsPermalink
‘(4) FEEDSTOCK EMISSIONS STUDY-CommentsClose CommentsPermalink
‘(A) The Administrator may conduct a study to determine the extent to which petroleum-based or coal-based liquid or gaseous fuel, petroleum coke, natural gas liquid, or natural gas are used as feedstocks in manufacturing processes to produce products and the greenhouse gas emissions resulting from such uses.CommentsClose CommentsPermalink
‘(B) If as a result of such a study, the Administrator determines that the use of such products by noncovered sources results in substantial emissions of greenhouse gases and that such emissions have not been adequately addressed under other requirements of this Act, the Administrator may, after notice and comment rulemaking, promulgate a regulation reducing compensatory allowances commensurately if doing so will not result in shifting such emissions to noncovered sources.CommentsClose CommentsPermalink
‘(g) Fluorinated Gases Assessment- No later than March 31, 2014, the Administrator shall complete an assessment of the regulation of non-HFC fluorinated gases under this title to determine whether the most appropriate point of regulation is at the gas manufacturer or importer level, or at the source of emissions downstream. If the Administrator determines, based on consideration of environmental effectiveness, cost effectiveness, administrative feasibility, extent of coverage of emissions, competitiveness and other relevant considerations consistent with the purposes of this title, that emissions of non-HFC fluorinated gases can best be regulated by designating downstream emission sources as covered entities with compliance obligations under section 722, the Administrator shall, after notice and comment rulemaking, change the definition of covered entity and the compliance obligations under section 722 with respect to non-HFC fluorinated gases accordingly, consistent with the purposes of this title, and establish such other requirements as are necessary to ensure compliance for such entities with the requirements of this title.CommentsClose CommentsPermalink
‘(h) Regulations- Not later than 24 months after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the provisions of this title.CommentsClose CommentsPermalink
‘SEC. 722. PROHIBITION OF EXCESS EMISSIONS.
‘(a) Prohibition- Except as provided in subsection (c), effective January 1, 2012, each covered entity is prohibited from emitting greenhouse gases and having attributable greenhouse gas emissions, in combination, in excess of its allowable emissions level. A covered entity’s allowable emissions level for each calendar year is the number of emission allowances (or credits or other allowances as provided in subsection (d)) it holds as of 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (j)) of the following calendar year.CommentsClose CommentsPermalink
‘(b) Methods of Demonstrating Compliance- Except as otherwise provided in this section, the owner or operator of a covered entity shall not be considered to be in compliance with the prohibition in subsection (a) unless, as of 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (j)) of each calendar year starting in 2013, the owner or operator holds a quantity of emission allowances (or credits or other allowances as provided in subsection (d)) at least as great as the quantity calculated as follows:CommentsClose CommentsPermalink
‘(1) ELECTRICITY SOURCES- For a covered entity described in section 700(13)(A), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that such covered entity emitted in the previous calendar year, excluding emissions resulting from the combustion of--CommentsClose CommentsPermalink
‘(A) petroleum-based or coal-based liquid fuel;CommentsClose CommentsPermalink
‘(B) natural gas liquid;CommentsClose CommentsPermalink
‘(C) renewable biomass or gas derived from renewable biomass; orCommentsClose CommentsPermalink
‘(D) petroleum coke or gas derived from petroleum coke.CommentsClose CommentsPermalink
‘(2) FUEL PRODUCERS AND IMPORTERS- For a covered entity described in section 700(13)(B), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by such covered entity during the previous calendar year for sale or distribution in interstate commerce, assuming no capture and sequestration of any greenhouse gas emissions.CommentsClose CommentsPermalink
‘(3) INDUSTRIAL GAS PRODUCERS AND IMPORTERS- For a covered entity described in section 700(13)(C), 1 emission allowance for each ton of carbon dioxide equivalent of fossil fuel-based carbon dioxide, nitrous oxide, or any other fluorinated gas that is a greenhouse gas (except for nitrogen trifluoride), or any combination thereof, produced or imported by such covered entity during the previous calendar year for sale or distribution in interstate commerce.CommentsClose CommentsPermalink
‘(4) NITROGEN TRIFLUORIDE SOURCES- For a covered entity described in section 700(13)(D), 1 emission allowance for each ton of carbon dioxide equivalent of nitrogen trifluoride that such covered entity emitted in the previous calendar year.CommentsClose CommentsPermalink
‘(5) GEOLOGICAL SEQUESTRATION SITES- For a covered entity described in section 700(13)(E), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that such covered entity emitted in the previous calendar year.CommentsClose CommentsPermalink
‘(6) INDUSTRIAL STATIONARY SOURCES- For a covered entity described in section 700(13)(F), (G), or (H), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that such covered entity emitted in the previous calendar year, excluding emissions resulting from--CommentsClose CommentsPermalink
‘(A) the combustion of petroleum-based or coal-based liquid fuel;CommentsClose CommentsPermalink
‘(B) the combustion of natural gas liquid;CommentsClose CommentsPermalink
‘(C) the combustion of renewable biomass or gas derived from renewable biomass;CommentsClose CommentsPermalink
‘(D) the combustion of petroleum coke or gas derived from petroleum coke; orCommentsClose CommentsPermalink
‘(E) the use of any fluorinated gas that is a greenhouse gas purchased for use at that covered entity, except for nitrogen trifluoride.CommentsClose CommentsPermalink
‘(7) INDUSTRIAL FOSSIL FUEL-FIRED COMBUSTION DEVICES- For a covered entity described in section 700(13)(I), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that the devices emitted in the previous calendar year, excluding emissions resulting from the combustion of--CommentsClose CommentsPermalink
‘(A) petroleum-based or coal-based liquid fuel;CommentsClose CommentsPermalink
‘(B) natural gas liquid;CommentsClose CommentsPermalink
‘(C) renewable biomass or gas derived from renewable biomass; orCommentsClose CommentsPermalink
‘(D) petroleum coke or gas derived from petroleum coke.CommentsClose CommentsPermalink
‘(8) NATURAL GAS LOCAL DISTRIBUTION COMPANIES- For a covered entity described in section 700(13)(J), 1 emission allowance for each ton of carbon dioxide equivalent of greenhouse gas that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, that such entity delivered during the previous calendar year to customers that are not covered entities, assuming no capture and sequestration of that greenhouse gas.CommentsClose CommentsPermalink
‘(9) ALGAE-BASED FUELS- Where carbon dioxide (or another greenhouse gas) generated by a covered entity is used as an input in the production of algae-based fuels, the Administrator shall ensure that emission allowances are required to be held either for the carbon dioxide generated by a covered entity that is used to grow the algae or for the portion of the carbon dioxide emitted from combustion of the fuel produced from such algae that is attributable to carbon dioxide generated by a covered entity, but not for both.CommentsClose CommentsPermalink
‘(10) FUGITIVE EMISSIONS- The greenhouse gas emissions to which paragraphs (1), (4), (6), and (7) apply shall not include fugitive emissions of greenhouse gas, except to the extent the Administrator determines that data on the carbon dioxide equivalent value of greenhouse gas in the fugitive emissions can be provided with sufficient precision, reliability, accessibility, and timeliness to ensure the integrity of emission allowances, the allowance tracking system, and the cap on emissions.CommentsClose CommentsPermalink
‘(11) EXPORT EXEMPTION- This section shall not apply to any petroleum-based or coal-based liquid fuel, petroleum coke, natural gas liquid, fossil fuel-based carbon dioxide, nitrous oxide, or fluorinated gas that is exported for sale or use.CommentsClose CommentsPermalink
‘(12) NATURAL GAS LIQUIDS- For natural gas liquids, the covered entity subject to the requirement stated in paragraph (2) shall be the owner of the natural gas liquids at the point the natural gas liquids are separated into merchantable products.CommentsClose CommentsPermalink
‘(13) APPLICATION OF MULTIPLE PARAGRAPHS- For a covered entity to which more than 1 of paragraphs (1) through (8) apply, all applicable paragraphs shall apply, except that not more than 1 emission allowance shall be required for the same emission.CommentsClose CommentsPermalink
‘(14) APPLICATION TO FRACTIONS OF TONS- In applying paragraphs (1) through (8), any amount less than 1 ton of carbon dioxide equivalent of emissions or attributable greenhouse gas emissions shall be treated as 1 ton of such carbon dioxide equivalent.CommentsClose CommentsPermalink
‘(c) Phase-in of Prohibition-CommentsClose CommentsPermalink
‘(1) INDUSTRIAL STATIONARY SOURCES- The prohibition under subsection (a) shall first apply to a covered entity described in section 700(13)(D), (F), (G), (H), or (I), with respect to emissions occurring during calendar year 2014.CommentsClose CommentsPermalink
‘(2) NATURAL GAS LOCAL DISTRIBUTION COMPANIES- The prohibition under subsection (a) shall first apply to a covered entity described in section 700(13)(J) with respect to deliveries occurring during calendar year 2016.CommentsClose CommentsPermalink
‘(d) Additional Methods- In addition to using the method of compliance described in subsection (b), a covered entity may do the following:CommentsClose CommentsPermalink
‘(1) OFFSET CREDITS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Covered entities collectively may, in accordance with this paragraph, use offset credits to demonstrate compliance for up to a maximum of 2 billion tons of greenhouse gas emissions annually. The ability to demonstrate compliance with offset credits shall be divided pro rata among covered entities by allowing each covered entity to satisfy a percentage of the number of allowances required to be held under subsection (b) to demonstrate compliance by holding 1 domestic offset credit or 1.25 international offset credits in lieu of an emission allowance, except as provided in subparagraph (D).CommentsClose CommentsPermalink
‘(B) APPLICABLE PERCENTAGE- The percentage referred to in subparagraph (A) for a given calendar year shall be determined by dividing 2 billion by the sum of 2 billion plus the number of emission allowances established under section 721(a) for the previous year, and multiplying that number by 100. Not more than one half of the applicable percentage under this paragraph may be used by holding domestic offset credits, and not more than one half of the applicable percentage under this paragraph may be used by holding international offset credits, except as provided in subparagraph (C).CommentsClose CommentsPermalink
‘(C) MODIFIED PERCENTAGES- If the Administrator determines that domestic offset credits available for use in demonstrating compliance in any calendar year at domestic offset prices generally equal to or less than emission allowance prices, are likely to offset less than 0.9 billion tons of greenhouse gas emissions (measured in tons of carbon dioxide equivalents), for purposes of compliance demonstration in that year the Administrator shall--CommentsClose CommentsPermalink
‘(i) increase the percentage of emissions that can be offset through the use of international offset credits to reflect the amount that 1.0 billion exceeds the number of domestic offset credits the Administrator determines is available, at prices generally equal to or less than emission allowance prices, for that year, up to a maximum of 0.5 billion tons of greenhouse gas emissions; andCommentsClose CommentsPermalink
‘(ii) decrease the percentage of emissions that can be offset through the use of domestic offset credits by the same amount.CommentsClose CommentsPermalink
‘(D) INTERNATIONAL OFFSET CREDITS- Notwithstanding subparagraph (A), to demonstrate compliance prior to calendar year 2018, a covered entity may use 1 international offset credit in lieu of an emission allowance up to the amount permitted under this paragraph.CommentsClose CommentsPermalink
‘(E) President’S RECOMMENDATION- The President may make a recommendation to Congress as to whether the number 2 billion specified in subparagraphs (A) and (B) should be increased or decreased.CommentsClose CommentsPermalink
‘(2) INTERNATIONAL EMISSION ALLOWANCES- To demonstrate compliance, a covered entity may hold an international emission allowance in lieu of an emission allowance, except as modified under section 728(d).CommentsClose CommentsPermalink
‘(3) COMPENSATORY ALLOWANCES- To demonstrate compliance, a covered entity may hold a compensatory allowance obtained under section 721(f) in lieu of an emission allowance.CommentsClose CommentsPermalink
‘(e) Retirement of Allowances and Credits- As soon as practicable after a deadline established for covered entities to demonstrate compliance with this title, the Administrator shall retire the quantity of allowances or credits required to be held under this title.CommentsClose CommentsPermalink
‘(f) Alternative Metrics- For categories of covered entities described in subparagraph (B), (C), (D), (G), (H), or (I) of section 700(13), the Administrator may, by rule, establish an applicability threshold for inclusion under those subparagraphs using an alternative metric and level, provided that such metric and level are easier to administer and cover the same size and type of sources as the threshold defined in such subparagraphs.CommentsClose CommentsPermalink
‘(g) Threshold Review- For each category of covered entities described in subparagraph (B), (C), (D), (G), (H), or (I) of section 700(13), the Administrator shall, in 2020 and once every 8 years thereafter, review the carbon dioxide equivalent emission threshold that is used to define covered entities in such category. After consideration of--CommentsClose CommentsPermalink
‘(1) emissions from covered entities in such category, and from other entities of the same type that emit less than the threshold amount for the category (including emission sources that commence operation after the date of enactment of this title that are not covered entities); andCommentsClose CommentsPermalink
‘(2) whether greater greenhouse gas emission reductions can be cost-effectively achieved by lowering the applicable threshold,CommentsClose CommentsPermalink
the Administrator may by rule lower such threshold to not less than 10,000 tons of carbon dioxide equivalent emissions. In determining the cost effectiveness of potential reductions from lowering the threshold for covered entities, the Administrator shall consider alternative regulatory greenhouse gas programs, including setting standards under other titles of this Act.CommentsClose CommentsPermalink
‘(h) Designated Representatives- The regulations promulgated under section 721(h) shall require that each covered entity, and each entity holding allowances or offset credits or receiving allowances or offset credits from the Administrator under this title, submit to the Administrator a certificate of representation designating a designated representative.CommentsClose CommentsPermalink
‘(i) Education and Outreach-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Administrator shall establish and carry out a program of education and outreach to assist covered entities, especially entities having little experience with environmental regulatory requirements similar or comparable to those under this title, in preparing to meet the compliance obligations of this title. Such program shall include education with respect to using markets to effectively achieve such compliance.CommentsClose CommentsPermalink
‘(2) FAILURE TO RECEIVE INFORMATION- A failure to receive information or assistance under this subsection may not be used as a defense against an allegation of any violation of this title.CommentsClose CommentsPermalink
‘(j) Adjustment of Deadline- The Administrator may, by rule, establish a deadline for demonstrating compliance, for a calendar year, later than the date provided in subsection (a), as necessary to ensure the availability of emissions data, but in no event shall the deadline be later than June 1.CommentsClose CommentsPermalink
‘(k) Notice Requirement for Covered Entities Receiving Natural Gas From Natural Gas Local Distribution Companies- The owner or operator of a covered entity that takes delivery of natural gas from a natural gas local distribution company shall, not later than September 1 of each calendar year, notify such natural gas local distribution company in writing that such entity will qualify as a covered entity under this title for that calendar year.CommentsClose CommentsPermalink
‘(l) Compliance Obligation- For purposes of this title, the year of a compliance obligation is the year in which compliance is determined, not the year in which the greenhouse gas emissions occur or the covered entity has attributable greenhouse gas emissions.CommentsClose CommentsPermalink
‘SEC. 723. PENALTY FOR NONCOMPLIANCE.
‘(a) Enforcement- A violation of any prohibition of, requirement of, or regulation promulgated pursuant to this title shall be a violation of this Act. It shall be a violation of this Act for a covered entity to emit greenhouse gases and have attributable greenhouse gas emissions, in combination, in excess of its allowable emissions level as provided in section 722(a). Each ton of carbon dioxide equivalent for which a covered entity fails to demonstrate compliance under section 722 shall be a separate violation.CommentsClose CommentsPermalink
‘(b) Excess Emissions Penalty-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The owner or operator of any covered entity that fails for any year to comply, on the deadline described in section 722(a) or (j), shall be liable for payment to the Administrator of an excess emissions penalty in the amount described in paragraph (2).CommentsClose CommentsPermalink
‘(2) AMOUNT- The amount of an excess emissions penalty required to be paid under paragraph (1) shall be equal to the product obtained by multiplying--CommentsClose CommentsPermalink
‘(A) the tons of carbon dioxide equivalent of greenhouse gas emissions or attributable greenhouse gas emissions for which the owner or operator of a covered entity failed to demonstrate compliance under section 722 on the deadline; byCommentsClose CommentsPermalink
‘(B) twice the auction clearing price for the earliest vintage year emission allowances in the last auction carried out pursuant to section 791 before such deadline.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 regulations promulgated by the Administrator, which shall be issued not later than 2 years after the date of enactment of this title.CommentsClose CommentsPermalink
‘(4) NO EFFECT ON LIABILITY- An excess emissions penalty due and payable by the owners or operators of a covered entity under this subsection shall not diminish the liability of the owners or operators for any fine, penalty, or assessment against the owners or operators for the same violation under any other provision of this Act or any other law.CommentsClose CommentsPermalink
‘(c) Excess Emissions Allowances- The owner or operator of a covered entity that fails for any year to comply on the deadline described in section 722(a) or (j) shall be liable to offset the covered entity’s excess combination of greenhouse gases emitted and attributable greenhouse gas emissions by an equal quantity of emission allowances during the following calendar year, or such longer period as the Administrator may prescribe. During the year in which the covered entity failed to comply, or any year thereafter, the Administrator may deduct the emission allowances required under this subsection to offset the covered entity’s excess greenhouse gas emissions or attributable greenhouse gas emissions.CommentsClose CommentsPermalink
‘SEC. 724. TRADING.
‘(a) Permitted Transactions- Except as otherwise provided in this title, the lawful holder of an emission allowance, compensatory allowance, or offset credit may, without restriction, sell, exchange, transfer, hold for compliance in accordance with section 722, or request that the Administrator retire the emission allowance, compensatory allowance, or offset credit.CommentsClose CommentsPermalink
‘(b) No Restriction on Transactions- The privilege of purchasing, holding, selling, exchanging, transferring, and requesting retirement of emission allowances, compensatory allowances, or offset credits shall not be restricted to the owners and operators of covered entities, except as otherwise provided in this title.CommentsClose CommentsPermalink
‘(c) Effectiveness of Allowance Transfers- No transfer of an allowance or offset credit shall be effective for purposes of this title until a certification of the transfer, signed by the designated representative of the transferor, is received and recorded by the Administrator in accordance with regulations promulgated under section 721(h).CommentsClose CommentsPermalink
‘(d) Allowance Tracking System- The regulations promulgated under section 721(h) shall include a system for issuing, recording, holding, and tracking allowances and offset credits that shall specify all necessary procedures and requirements for an orderly and competitive functioning of the allowance and offset credit markets. Such regulations shall provide for appropriate publication of the information in the system on the Internet.CommentsClose CommentsPermalink
‘SEC. 725. BANKING AND BORROWING.
‘(a) Banking- An emission allowance may be used to comply with section 722 or section 723 for emissions in--CommentsClose CommentsPermalink
‘(1) the vintage year for the allowance; orCommentsClose CommentsPermalink
‘(2) any calendar year subsequent to the vintage year for the allowance.CommentsClose CommentsPermalink
‘(b) Expiration-CommentsClose CommentsPermalink
‘(1) REGULATIONS- The Administrator may establish by regulation criteria and procedures for determining whether, and for implementing a determination that, the expiration of an allowance or offset credit established or issued by the Administrator under this title, or expiration of the ability to use an international emission allowance to comply with section 722, is necessary to ensure the authenticity and integrity of allowances or offset credits or the allowance tracking system.CommentsClose CommentsPermalink
‘(2) GENERAL RULE- An allowance or offset credit established or issued by the Administrator under this title shall not expire unless--CommentsClose CommentsPermalink
‘(A) it is retired by the Administrator pursuant to this title; orCommentsClose CommentsPermalink
‘(B) it is determined to expire or to have expired by a specific date by the Administrator in accordance with regulations promulgated under paragraph (1).CommentsClose CommentsPermalink
‘(3) INTERNATIONAL EMISSION ALLOWANCES- The ability to use an international emission allowance to comply with section 722 shall not expire unless--CommentsClose CommentsPermalink
‘(A) the allowance is retired by the Administrator pursuant to this title; orCommentsClose CommentsPermalink
‘(B) the ability to use such allowance to meet such compliance obligation requirements is determined to expire or to have expired by a specific date by the Administrator in accordance with regulations promulgated under paragraph (1).CommentsClose CommentsPermalink
‘(c) Borrowing Future Vintage Year Allowances-CommentsClose CommentsPermalink
‘(1) BORROWING WITHOUT INTEREST- In addition to the uses described in subsection (a), an emission allowance may be used to demonstrate compliance under section 722 or comply with section 723 for emissions, production, importation, manufacture, or deliveries in the calendar year immediately preceding the vintage year for the allowance.CommentsClose CommentsPermalink
‘(2) BORROWING WITH INTEREST-CommentsClose CommentsPermalink
‘(A) IN GENERAL- A covered entity may demonstrate compliance under section 722 in a specific calendar year for up to 15 percent of its emissions by holding emission allowances with a vintage year 1 to 5 years later than that calendar year.CommentsClose CommentsPermalink
‘(B) LIMITATIONS- An emission allowance borrowed pursuant to this paragraph shall be an emission allowance that is established by the Administrator for a specific future calendar year under section 721(a) and that is held by the borrower.CommentsClose CommentsPermalink
‘(C) PREPAYMENT OF INTEREST- For each emission allowance that an owner or operator of a covered entity borrows pursuant to this paragraph, such owner or operator shall, at the time it borrows the allowance, hold for retirement by the Administrator, and the Administrator shall retire, a quantity of emission allowances that is equal to the product obtained by multiplying--CommentsClose CommentsPermalink
‘(i) 0.08; byCommentsClose CommentsPermalink
‘(ii) the number of years between the calendar year in which the allowance is being used to satisfy a compliance obligation and the vintage year of the allowance.CommentsClose CommentsPermalink
‘SEC. 726. STRATEGIC RESERVE.
‘(a) Strategic Reserve Auctions-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Once each quarter of each calendar year for which allowances are established under section 721(a), the Administrator shall auction strategic reserve allowances.CommentsClose CommentsPermalink
‘(2) RESTRICTION TO COVERED ENTITIES- In each auction conducted under paragraph (1), only covered entities that the Administrator expects will be required to comply with section 722 in the following calendar year shall be eligible to make purchases.CommentsClose CommentsPermalink
‘(b) Pool of Emission Allowances for Strategic Reserve Auctions-CommentsClose CommentsPermalink
‘(1) FILLING THE STRATEGIC RESERVE INITIALLY-CommentsClose CommentsPermalink
‘(A) IN GENERAL- The Administrator shall, not later than 2 years after the date of enactment of this title, establish a strategic reserve account, and shall place in that account an amount of emission allowances established under section 721(a) for each calendar year from 2012 through 2050 in the amounts specified in subparagraph (B) of this paragraph.CommentsClose CommentsPermalink
‘(B) AMOUNT- The amount referred to in subparagraph (A) shall be--CommentsClose CommentsPermalink
‘(i) for each of calendar years 2012 through 2019, 1 percent of the quantity of emission allowances established for that year pursuant to section 721(e)(1);CommentsClose CommentsPermalink
‘(ii) for each of calendar years 2020 through 2029, 2 percent of the quantity of emission allowances established for that year pursuant to section 721(e)(1); andCommentsClose CommentsPermalink
‘(iii) for each of calendar years 2030 through 2050, 3 percent of the quantity of emission allowances established for that year pursuant to section 721(e)(1).CommentsClose CommentsPermalink
‘(C) EFFECT ON OTHER PROVISIONS- Any provision in this title (except for subparagraph (B) of this paragraph) that refers to a quantity or percentage of the emission allowances established for a calendar year under section 721(a) shall be considered to refer to the amount of emission allowances as determined pursuant to section 721(e), less any emission allowances established for that year that are placed in the strategic reserve account under this paragraph.CommentsClose CommentsPermalink
‘(2) SUPPLEMENTING THE STRATEGIC RESERVE- The Administrator shall also--CommentsClose CommentsPermalink
‘(A) at the end of each calendar year, transfer to the strategic reserve account each emission allowance that was offered for sale but not sold at any auction conducted under section 791; andCommentsClose CommentsPermalink
‘(B) deposit emission allowances established under subsection (g) from auction proceeds into the strategic reserve, to the extent necessary to maintain the reserve at its original size.CommentsClose CommentsPermalink
‘(c) Minimum Strategic Reserve Auction Price-CommentsClose CommentsPermalink
‘(1) IN GENERAL- At each strategic reserve auction, the Administrator shall offer emission allowances for sale beginning at a minimum price per emission allowance, which shall be known as the ‘minimum strategic reserve auction price’.CommentsClose CommentsPermalink
‘(2) INITIAL MINIMUM STRATEGIC RESERVE AUCTION PRICES- The minimum strategic reserve auction price shall be $28 (in constant 2009 dollars) for the strategic reserve auctions held in 2012. For the strategic reserve auctions held in 2013 and 2014, the minimum strategic reserve auction price shall be the strategic reserve auction price for the previous year increased by 5 percent plus the rate of inflation (as measured by the Consumer Price Index for All Urban Consumers).CommentsClose CommentsPermalink
‘(3) MINIMUM STRATEGIC RESERVE AUCTION PRICE IN SUBSEQUENT YEARS- For each strategic reserve auction held in 2015 and each year thereafter, the minimum strategic reserve auction price shall be 60 percent above a rolling 36-month average of the daily closing price for that year’s emission allowance vintage as reported on registered carbon trading facilities, calculated using constant dollars.CommentsClose CommentsPermalink
‘(d) Quantity of Emission Allowances Released From the Strategic Reserve-CommentsClose CommentsPermalink
‘(1) INITIAL LIMITS- For each of calendar years 2012 through 2016, the annual limit on the number of emission allowances from the strategic reserve account that may be auctioned is an amount equal to 5 percent of the emission allowances established for that calendar year under section 721(a). This limit does not apply to international offset credits sold on consignment pursuant to subsection (h).CommentsClose CommentsPermalink
‘(2) LIMITS IN SUBSEQUENT YEARS- For calendar year 2017 and each year thereafter, the annual limit on the number of emission allowances from the strategic reserve account that may be auctioned is an amount equal to 10 percent of the emission allowances established for that calendar year under section 721(a). This limit does not apply to international offset credits sold on consignment pursuant to subsection (h).CommentsClose CommentsPermalink
‘(3) ALLOCATION OF LIMITATION- One-fourth of each year’s annual strategic reserve auction limit under this subsection shall be made available for auction in each quarter. Any allowances from the strategic reserve account that are made available for sale in a quarterly auction and not sold shall be rolled over and added to the quantity available for sale in the following quarter, except that allowances not sold at auction in the fourth quarter of a year shall not be rolled over to the following calendar year’s auctions, but shall be returned to the strategic reserve account.CommentsClose CommentsPermalink
‘(e) Purchase Limit-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Except as provided in paragraph (2) or (3), the annual number of emission allowances that a covered entity may purchase at the strategic reserve auctions in each calendar year shall not exceed 20 percent of the covered entity’s combined greenhouse gas emissions and attributable greenhouse gas emissions during the most recent year for which allowances or offset credits were retired under section 722.CommentsClose CommentsPermalink
‘(2) 2012 LIMIT- For calendar year 2012, the maximum aggregate number of emission allowances that a covered entity may purchase from that year’s strategic reserve auctions shall be 20 percent of the covered entity’s combined greenhouse gas emissions and attributable greenhouse gas emissions that the covered entity reported to the registry established under section 713 for 2011 and that would be subject to section 722(a) if occurring in later calendar years.CommentsClose CommentsPermalink
‘(3) NEW ENTRANTS- The Administrator shall, by regulation, establish a separate purchase limit applicable to entities that expect to become a covered entity in the year of the auction, permitting them to purchase emission allowances at the strategic reserve auctions in their first calendar year of operation in an amount of at least 20 percent of their expected combined greenhouse gas emissions and attributable greenhouse gas emissions for that year.CommentsClose CommentsPermalink
‘(f) Delegation or Contract- Pursuant to regulations under this section, the Administrator may, by delegation or contract, provide for the conduct of strategic reserve auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations.CommentsClose CommentsPermalink
‘(g) Use of Auction Proceeds-CommentsClose CommentsPermalink
‘(1) DEPOSIT IN STRATEGIC RESERVE FUND- The proceeds from strategic reserve auctions shall be placed in the Strategic Reserve Fund established under section 793(1), and shall be available without further appropriation or fiscal year limitation for the purposes described in this subsection.CommentsClose CommentsPermalink
‘(2) INTERNATIONAL OFFSET CREDITS FOR REDUCED DEFORESTATION- The Administrator shall use the proceeds from each strategic reserve auction to purchase international offset credits issued for reduced deforestation activities pursuant to section 743(e). The Administrator shall retire those international offset credits and establish a number of emission allowances equal to 80 percent of the number of international offset credits so retired. Emission allowances established under this paragraph shall be in addition to those established under section 721(a).CommentsClose CommentsPermalink
‘(3) EMISSION ALLOWANCES- The Administrator shall deposit emission allowances established under paragraph (2) in the strategic reserve, except that, with respect to any such emission allowances in excess of the amount necessary to fill the strategic reserve to its original size, the Administrator shall--CommentsClose CommentsPermalink
‘(A) except as provided in subparagraph (B), assign a vintage year to the emission allowance, which shall be no earlier than the year in which the allowance is established under paragraph (2), and shall treat such allowances as ones that are not designated for distribution or auction for purposes of section 782(q) and (r); andCommentsClose CommentsPermalink
‘(B) to the extent any such allowances cannot be assigned a vintage year because of the limitation in paragraph (4), retire the allowances.CommentsClose CommentsPermalink
‘(4) LIMITATION- In no case may the Administrator assign under paragraph (3)(A) more emission allowances to a vintage year than the number of emission allowances from that vintage year that were placed in the strategic reserve account under subsection (b)(1).CommentsClose CommentsPermalink
‘(h) Availability of International Offset Credits for Auction-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The regulations promulgated under section 721(h) shall allow any entity holding international offset credits from reduced deforestation issued under section 743(e) to request that the Administrator include such offset credits in an upcoming strategic reserve auction. The regulations shall provide that--CommentsClose CommentsPermalink
‘(A) such international offset credits will be used to fill bid orders only after the supply of strategic reserve allowances available for sale at that auction has been depleted;CommentsClose CommentsPermalink
‘(B) international offset credits may be sold at a strategic reserve auction under this subsection only if the Administrator determines that it is highly likely that covered entities will, to cover emissions occurring in the year the auction is held, use offset credits to demonstrate compliance under section 722 for emissions equal to or greater than 80 percent of 2 billion tons of carbon dioxide equivalent;CommentsClose CommentsPermalink
‘(C) upon sale of such international offset credits, the Administrator shall retire those international offset credits, and establish and provide to the purchasers a number of emission allowances equal to 80 percent of the number of international offset credits so retired, which allowances shall be in addition to those established under section 721(a); andCommentsClose CommentsPermalink
‘(D) for international offset credits sold pursuant to this subsection, the proceeds for the entity that offered the international offset credits for sale shall be the lesser of--CommentsClose CommentsPermalink
‘(i) the average daily closing price for international offset credits sold on registered exchanges (or if such price is unavailable, the average price as determined by the Administrator) during the six months prior to the strategic reserve auction at which they were auctioned, with the remaining funds collected upon the sale of the international offset credits deposited in the Treasury; andCommentsClose CommentsPermalink
‘(ii) the amount received for the international offset credits at the auction.CommentsClose CommentsPermalink
‘(2) PROCEEDS- For international offset credits sold pursuant to this subsection, notwithstanding
section 3302 of title 31, United States Code , or any other provision of law, within 90 days of receipt, the United States shall transfer the proceeds from the auction, as defined in paragraph (1)(D), to the entity that offered the international offset credits for sale. No funds transferred from a purchaser to a seller of international offset credits under this paragraph shall be held by any officer or employee of the United States or treated for any purpose as public monies.CommentsClose CommentsPermalink‘(3) PRICING- When the Administrator acts under this subsection as the agent of an entity in possession of international offset credits, the Administrator is not obligated to obtain the highest price possible for the international offset credits, and instead shall auction such international offset credits in the same manner and pursuant to the same rules (except as modified in paragraph (1)) as set forth for auctioning strategic reserve allowances. Entities requesting that such international offset credits be offered for sale at a strategic reserve auction may not set a minimum reserve price for their international offset credits that is different than the minimum strategic reserve auction price set pursuant to subsection (c).CommentsClose CommentsPermalink
‘(i) Initial Regulations- Not later than 24 months after the date of enactment of this title, the Administrator shall promulgate regulations, in consultation with other appropriate agencies, governing the auction of allowances under this section. Such regulations shall include the following requirements:CommentsClose CommentsPermalink
‘(1) FREQUENCY; FIRST AUCTION- Auctions shall be held four times per year at regular intervals, with the first auction to be held no later than March 31, 2012.CommentsClose CommentsPermalink
‘(2) AUCTION FORMAT- Auctions shall follow a single-round, sealed-bid, uniform price format.CommentsClose CommentsPermalink
‘(3) PARTICIPATION; FINANCIAL ASSURANCE- Auctions shall be open to any covered entity eligible to purchase emission allowances at the auction under subsection (a)(2), except that the Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids.CommentsClose CommentsPermalink
‘(4) DISCLOSURE OF BENEFICIAL OWNERSHIP- Each bidder in an auction shall be required to disclose the person or entity sponsoring or benefitting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder.CommentsClose CommentsPermalink
‘(5) PURCHASE LIMITS- No person may, directly or in concert with another participant, purchase more than 20 percent of the allowances offered for sale at any quarterly auction.CommentsClose CommentsPermalink
‘(6) PUBLICATION OF INFORMATION- After the auction, the Administrator shall, in a timely fashion, publish the identities of winning bidders, the quantity of allowances obtained by each winning bidder, and the auction clearing price.CommentsClose CommentsPermalink
‘(7) OTHER REQUIREMENTS- The Administrator may include in the regulations such other requirements or provisions as the Administrator, in consultation with other agencies as appropriate, considers appropriate to promote effective, efficient, transparent, and fair administration of auctions under this section.CommentsClose CommentsPermalink
‘(j) Revision of Regulations- The Administrator may, at any time, in consultation with other agencies as appropriate, revise the initial regulations promulgated under subsection (i). Such revised regulations need not meet the requirements identified in subsection (i) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this subsection, the Administrator shall not consider maximization of revenues to the Federal Government.CommentsClose CommentsPermalink
‘SEC. 727. PERMITS.
‘(a) Permit Program- For stationary sources subject to title V of this Act that are covered entities, the provisions of this title shall be implemented by permits issued to such covered entities (and enforced) in accordance with the provisions of title V, as modified by this title. Any such permit issued by the Administrator, or by a State or Indian tribe with an approved permit program, shall require the owner or operator of a covered entity to hold allowances or offset credits at least equal to the total annual amount of carbon dioxide equivalents for its combined emissions and attributable greenhouse gas emissions to which section 722 applies. No such permit shall be issued that is inconsistent with the requirements of this title, and title V as applicable. Nothing in this section regarding compliance plans or in title V shall be construed as affecting allowances or offset credits. Submission of a statement by the owner or operator, or the designated representative of the owners and operators, of a covered entity that the owners and operators will hold allowances or offset credits for the entity’s combined emissions and attributable greenhouse gas emissions to which section 722 applies shall be deemed to meet the proposed and approved planning requirements of title V. Recordation by the Administrator of transfers of allowances and offset credits shall amend automatically all applicable proposed or approved permit applications, compliance plans, and permits.CommentsClose CommentsPermalink
‘(b) Multiple Owners- No permit shall be issued under this section and no allowances or offset credits shall be disbursed under this title to a covered entity or any other person until the designated representative of the owners or operators has filed a certificate of representation with regard to matters under this title, including the holding and distribution of emission allowances and the proceeds of transactions involving emission allowances. Where there are multiple holders of a legal or equitable title to, or a leasehold interest in, such a covered entity or other entity or where a utility or industrial customer purchases power under a long-term power purchase contract from an independent power production facility that is a covered entity, the certificate shall state--CommentsClose CommentsPermalink
‘(1) that emission allowances and the proceeds of transactions involving emission allowances will be deemed to be held or distributed in proportion to each holder’s legal, equitable, leasehold, or contractual reservation or entitlement; orCommentsClose CommentsPermalink
‘(2) if such multiple holders have expressly provided for a different distribution of emission allowances by contract, that emission allowances and the proceeds of transactions involving emission allowances will be deemed to be held or distributed in accordance with the contract.CommentsClose CommentsPermalink
A passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly, upon the revenues or income from the covered entity or other entity shall not be deemed to be a holder of a legal, equitable, leasehold, or contractual interest for the purpose of holding or distributing emission allowances as provided in this subsection, during either the term of such leasehold or thereafter, unless expressly provided for in the leasehold agreement. Except as otherwise provided in this subsection, where all legal or equitable title to or interest in a covered entity, or other entity, is held by a single person, the certificate shall state that all emission allowances received by the entity are deemed to be held for that person.CommentsClose CommentsPermalink
‘(c) Prohibition- It shall be unlawful for any person to operate any stationary source subject to the requirements of this section except in compliance with the terms and requirements of a permit issued by the Administrator or a State or Indian tribe with an approved permit program in accordance with this section. For purposes of this subsection, compliance, as provided in section 504(f), with a permit issued under title V which complies with this title for covered entities shall be deemed compliance with this subsection as well as section 502(a).CommentsClose CommentsPermalink
‘(d) Reliability- Nothing in this section or title V shall be construed as requiring termination of operations of a stationary source that is a covered entity for failure to have an approved permit, or compliance plan, that is consistent with the requirements in the second and fifth sentences of subsection (a) concerning the holding of allowances or offset credits, except that any such covered entity may be subject to the applicable enforcement provision of section 113.CommentsClose CommentsPermalink
‘(e) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to implement this section. To provide for permits required under this section, each State in which one or more stationary sources that are covered entities are located shall submit, in accordance with this section and title V, revised permit programs for approval.CommentsClose CommentsPermalink
‘SEC. 728. INTERNATIONAL EMISSION ALLOWANCES.
‘(a) Qualifying Programs- The Administrator, in consultation with the Secretary of State, may by rule designate an international climate change program as a qualifying international program if--CommentsClose CommentsPermalink
‘(1) the program is run by a national or supranational foreign government, and imposes a mandatory absolute tonnage limit on greenhouse gas emissions from 1 or more foreign countries, or from 1 or more economic sectors in such a country or countries; andCommentsClose CommentsPermalink
‘(2) the program is at least as stringent as the program established by this title, including provisions to ensure at least comparable monitoring, compliance, enforcement, quality of offsets, and restrictions on the use of offsets.CommentsClose CommentsPermalink
‘(b) Disqualified Allowances- An international emission allowance may not be held under section 722(d)(2) if it is in the nature of an offset instrument or allowance awarded based on the achievement of greenhouse gas emission reductions or avoidance, or greenhouse gas sequestration, that are not subject to the mandatory absolute tonnage limits referred to in subsection (a)(1).CommentsClose CommentsPermalink
‘(c) Retirement-CommentsClose CommentsPermalink
‘(1) ENTITY CERTIFICATION- The owner or operator of an entity that holds an international emission allowance under section 722(d)(2) shall certify to the Administrator that such international emission allowance has not previously been used to comply with any foreign, international, or domestic greenhouse gas regulatory program.CommentsClose CommentsPermalink
‘(2) RETIREMENT-CommentsClose CommentsPermalink
‘(A) FOREIGN AND INTERNATIONAL REGULATORY ENTITIES- The Administrator, in consultation with the Secretary of State, shall seek, by whatever means appropriate, including agreements and technical cooperation on allowance tracking, to ensure that any relevant foreign, international, and domestic regulatory entities--CommentsClose CommentsPermalink
‘(i) are notified of the use, for purposes of compliance with this title, of any international emission allowance; andCommentsClose CommentsPermalink
‘(ii) provide for the disqualification of such international emission allowance for any subsequent use under the relevant foreign, international, or domestic greenhouse gas regulatory program, regardless of whether such use is a sale, exchange, or submission to satisfy a compliance obligation.CommentsClose CommentsPermalink
‘(B) DISQUALIFICATION FROM FURTHER USE- The Administrator shall ensure that, once an international emission allowance has been disqualified or otherwise used for purposes of compliance with this title, such allowance shall be disqualified from any further use under this title.CommentsClose CommentsPermalink
‘(d) Use Limitations- The Administrator may, by rule, apply a limit to the percentage of the combined greenhouse gas emissions and attributable greenhouse gas emissions of a covered entity with respect to which compliance may be demonstrated by holding international emission allowances under section 722(d)(2), consistent with the purposes of the Safe Climate Act.CommentsClose CommentsPermalink
‘PART D--OFFSETS
‘SEC. 731. OFFSETS INTEGRITY ADVISORY BOARD.
‘(a) Establishment- Not later than 30 days after the date of enactment of this title, the Administrator shall establish an independent Offsets Integrity Advisory Board. The Advisory Board shall make recommendations to the Administrator for use in promulgating and revising regulations under this part and part E, and for ensuring the overall environmental integrity of the programs established pursuant to those regulations.CommentsClose CommentsPermalink
‘(b) Membership- The Advisory Board shall be comprised of at least nine members. Each member shall be qualified by education, training, and experience to evaluate scientific and technical information on matters referred to the Board under this section. The Administrator shall appoint Advisory Board members, including a chair and vice-chair of the Advisory Board. Terms shall be 3 years in length, except for initial terms, which may be up to 5 years in length to allow staggering. Members may be reappointed only once for an additional 3-year term, and such second term may follow directly after a first term.CommentsClose CommentsPermalink
‘(c) Activities- The Advisory Board established pursuant to subsection (a) shall--CommentsClose CommentsPermalink
‘(1) provide recommendations, not later than 90 days after the Advisory Board’s establishment and periodically thereafter, to the Administrator regarding offset project types that should be considered for eligibility under section 733, taking into consideration relevant scientific and other issues, including--CommentsClose CommentsPermalink
‘(A) the availability of a representative data set for use in developing the activity baseline;CommentsClose CommentsPermalink
‘(B) the potential for accurate quantification of greenhouse gas reduction, avoidance, or sequestration for an offset project type;CommentsClose CommentsPermalink
‘(C) the potential level of scientific and measurement uncertainty associated with an offset project type; andCommentsClose CommentsPermalink
‘(D) any beneficial or adverse environmental, public health, welfare, social, economic, or energy effects associated with an offset project type;CommentsClose CommentsPermalink
‘(2) make available to the Administrator its advice and comments on offset methodologies that should be considered under regulations promulgated with respect to section 734, including methodologies to address the issues of additionality, activity baselines, quantification methods, leakage, uncertainty, permanence, and environmental integrity;CommentsClose CommentsPermalink
‘(3) make available to the Administrator, and other relevant Federal agencies, its advice and comments regarding scientific, technical, and methodological issues specific to the issuance of international offset credits under section 743;CommentsClose CommentsPermalink
‘(4) make available to the Administrator, and other relevant Federal agencies, its advice and comments regarding scientific, technical, and methodological issues associated with the implementation of part E;CommentsClose CommentsPermalink
‘(5) make available to the Administrator its advice and comments on areas in which further knowledge is required to appraise the adequacy of existing, revised, or proposed methodologies for use under this part and part E, and describe the research efforts necessary to provide the required information; andCommentsClose CommentsPermalink
‘(6) make available to the Administrator its advice and comments on other ways to improve or safeguard the environmental integrity of programs established under this part and part E.CommentsClose CommentsPermalink
‘(d) Scientific Review of Offset and Deforestation Reduction Programs- Not later than January 1, 2017, and at five-year intervals thereafter, the Advisory Board shall submit to the Administrator and make available to the public an analysis of relevant scientific and technical information related to this part and part E. The Advisory Board shall review approved and potential methodologies, scientific studies, offset project monitoring, offset project verification reports, and audits related to this part and part E, and evaluate the net emissions effects of implemented offset projects. The Advisory Board shall recommend changes to offset methodologies, protocols, or project types, or to the overall offset program under this part, to ensure that offset credits issued by the Administrator do not compromise the integrity of the annual emission reductions established under section 703, and to avoid or minimize adverse effects to human health or the environment.CommentsClose CommentsPermalink
‘SEC. 732. ESTABLISHMENT OF OFFSETS PROGRAM.
‘(a) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with appropriate Federal agencies and taking into consideration the recommendations of the Advisory Board, shall promulgate regulations establishing a program for the issuance of offset credits in accordance with the requirements of this part. The Administrator shall periodically revise these regulations as necessary to meet the requirements of this part.CommentsClose CommentsPermalink
‘(b) Requirements- The regulations described in subsection (a) shall--CommentsClose CommentsPermalink
‘(1) authorize the issuance of offset credits with respect to qualifying offset projects that result in reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases;CommentsClose CommentsPermalink
‘(2) ensure that such offset credits represent verifiable and additional greenhouse gas emission reductions or avoidance, or increases in sequestration;CommentsClose CommentsPermalink
‘(3) ensure that offset credits issued for sequestration offset projects are only issued for greenhouse gas reductions that are permanent;CommentsClose CommentsPermalink
‘(4) provide for the implementation of the requirements of this part; andCommentsClose CommentsPermalink
‘(5) include as reductions in greenhouse gases reductions achieved through the destruction of methane and its conversion to carbon dioxide, and reductions achieved through destruction of chlorofluorocarbons or other ozone depleting substances, if permitted by the Administrator under section 619(b)(9) and subject to the conditions specified in section 619(b)(9), based on the carbon dioxide equivalent value of the substance destroyed.CommentsClose CommentsPermalink
‘(c) Coordination to Minimize Negative Effects- In promulgating and implementing regulations under this part, the Administrator shall act (including by rejecting projects, if necessary) to avoid or minimize, to the maximum extent practicable, adverse effects on human health or the environment resulting from the implementation of offset projects under this part.CommentsClose CommentsPermalink
‘(d) Offset Registry- The Administrator shall establish within the allowance tracking system established under section 724(d) an Offset Registry for qualifying offset projects and offset credits issued with respect thereto under this part.CommentsClose CommentsPermalink
‘(e) Legal Status of Offset Credit- An offset credit does not constitute a property right.CommentsClose CommentsPermalink
‘(f) Fees- The Administrator shall assess fees payable by offset project developers in an amount necessary to cover the administrative costs to the Environmental Protection Agency of carrying out the activities under this part. Amounts collected for such fees shall be available to the Administrator for carrying out the activities under this part to the extent provided in advance in appropriations Acts.CommentsClose CommentsPermalink
‘SEC. 733. ELIGIBLE PROJECT TYPES.
‘(a) List of Eligible Project Types-CommentsClose CommentsPermalink
‘(1) IN GENERAL- As part of the regulations promulgated under section 732(a), the Administrator shall establish, and may periodically revise, a list of types of projects eligible to generate offset credits, including international offset credits, under this part.CommentsClose CommentsPermalink
‘(2) ADVISORY BOARD RECOMMENDATIONS- In determining the eligibility of project types, the Administrator shall take into consideration the recommendations of the Advisory Board. If a list established under this section differs from the recommendations of the Advisory Board, the regulations promulgated under section 732(a) shall include a justification for the discrepancy.CommentsClose CommentsPermalink
‘(3) INITIAL DETERMINATION- The Administrator shall establish the initial eligibility list under paragraph (1) not later than one year after the date of enactment of this title. The Administrator shall add additional project types to the list not later than 2 years after the date of enactment of this title. In determining the initial list, the Administrator shall give priority to consideration of offset project types that are recommended by the Advisory Board and for which there are well developed methodologies that the Administrator determines would meet the criteria of section 734, with such modifications as the Administrator deems appropriate. In establishing methodologies pursuant to section 734, the Administrator shall give priority to methodologies for offset project types included on the initial eligibility list.CommentsClose CommentsPermalink
‘(b) Modification of List- The Administrator--CommentsClose CommentsPermalink
‘(1) may at any time, by rule, add a project type to the list established under subsection (a) if the Administrator, in consultation with appropriate Federal agencies and taking into consideration the recommendations of the Advisory Board, determines that the project type can generate additional reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, subject to the requirements of this part;CommentsClose CommentsPermalink
‘(2) may at any time, by rule, determine that a project type on the list does not meet the requirements of this part, and remove the project type from the list established under subsection (a), in consultation with appropriate Federal agencies and taking into consideration any recommendations of the Advisory Board; andCommentsClose CommentsPermalink
‘(3) shall consider adding to or removing from the list established under subsection (a), at a minimum, project types proposed to the Administrator--CommentsClose CommentsPermalink
‘(A) by petition pursuant to subsection (c); orCommentsClose CommentsPermalink
‘(B) by the Advisory Board.CommentsClose CommentsPermalink
‘(c) Petition Process- Any person may petition the Administrator to modify the list established under subsection (a) by adding or removing a project type pursuant to subsection (b). Any such petition shall include a showing by the petitioner that there is adequate data to establish that the project type does or does not meet the requirements of this part. Not later than 12 months after receipt of such a petition, the Administrator shall either grant or deny the petition and publish a written explanation of the reasons for the Administrator’s decision. The Administrator may not deny a petition under this subsection on the basis of inadequate Environmental Protection Agency resources or time for review.CommentsClose CommentsPermalink
‘SEC. 734. REQUIREMENTS FOR OFFSET PROJECTS.
‘(a) Methodologies- As part of the regulations promulgated under section 732(a), the Administrator shall establish, for each type of offset project listed as eligible under section 733, the following:CommentsClose CommentsPermalink
‘(1) ADDITIONALITY- A standardized methodology for determining the additionality of greenhouse gas emission reductions or avoidance, or greenhouse gas sequestration, achieved by an offset project of that type. Such methodology shall ensure, at a minimum, that any greenhouse gas emission reduction or avoidance, or any greenhouse gas sequestration, is considered additional only to the extent that it results from activities that--CommentsClose CommentsPermalink
‘(A) are not required by or undertaken to comply with any law, including any regulation or consent order;CommentsClose CommentsPermalink
‘(B) were not commenced prior to January 1, 2009, except in the case of--CommentsClose CommentsPermalink
‘(i) offset project activities that commenced after January 1, 2001, and were registered as of the date of enactment of this title under an offset program with respect to which the Administrator has made an affirmative determination under section 740(a)(2); orCommentsClose CommentsPermalink
‘(ii) activities that are readily reversible, with respect to which the Administrator may set an alternative earlier date under this subparagraph that is not earlier than January 1, 2001, where the Administrator determines that setting such an alternative date may produce an environmental benefit by removing an incentive to cease and then reinitiate activities that began prior to January 1, 2009; andCommentsClose CommentsPermalink
‘(C) exceed the activity baseline established under paragraph (2).CommentsClose CommentsPermalink
‘(2) ACTIVITY BASELINES- A standardized methodology for establishing activity baselines for offset projects of that type. The Administrator shall set activity baselines to reflect a conservative estimate of business-as-usual performance or practices for the relevant type of activity such that the baseline provides an adequate margin of safety to ensure the environmental integrity of offsets calculated in reference to such baseline.CommentsClose CommentsPermalink
‘(3) QUANTIFICATION METHODS- A standardized methodology for determining the extent to which greenhouse gas emission reductions or avoidance, or greenhouse gas sequestration, achieved by an offset project of that type exceed a relevant activity baseline, including protocols for monitoring and accounting for uncertainty.CommentsClose CommentsPermalink
‘(4) LEAKAGE- A standardized methodology for accounting for and mitigating potential leakage, if any, from an offset project of that type, taking uncertainty into account.CommentsClose CommentsPermalink
‘(b) Accounting for Reversals-CommentsClose CommentsPermalink
‘(1) IN GENERAL- For each type of sequestration project listed under section 733, the Administrator shall establish requirements to account for and address reversals, including--CommentsClose CommentsPermalink
‘(A) a requirement to report any reversal with respect to an offset project for which offset credits have been issued under this part;CommentsClose CommentsPermalink
‘(B) provisions to require emission allowances to be held in amounts to fully compensate for greenhouse gas emissions attributable to reversals, and to assign responsibility for holding such emission allowances; andCommentsClose CommentsPermalink
‘(C) any other provisions the Administrator determines necessary to account for and address reversals.CommentsClose CommentsPermalink
‘(2) MECHANISMS- The Administrator shall prescribe mechanisms to ensure that any sequestration with respect to which an offset credit is issued under this part results in a permanent net increase in sequestration, and that full account is taken of any actual or potential reversal of such sequestration, with an adequate margin of safety. The Administrator shall prescribe at least one of the following mechanisms to meet the requirements of this paragraph:CommentsClose CommentsPermalink
‘(A) An offsets reserve, pursuant to paragraph (3).CommentsClose CommentsPermalink
‘(B) Insurance that provides for purchase and provision to the Administrator for retirement of an amount of offset credits or emission allowances equal in number to the tons of carbon dioxide equivalents of greenhouse gas emissions released due to reversal.CommentsClose CommentsPermalink
‘(C) Another mechanism that the Administrator determines satisfies the requirements of this part.CommentsClose CommentsPermalink
‘(3) OFFSETS RESERVE-CommentsClose CommentsPermalink
‘(A) IN GENERAL- An offsets reserve referred to in paragraph (2)(A) is a program under which, before issuance of offset credits under this part, the Administrator shall subtract and reserve from the quantity to be issued a quantity of offset credits based on the risk of reversal. The Administrator shall--CommentsClose CommentsPermalink
‘(i) hold these reserved offset credits in the offsets reserve; andCommentsClose CommentsPermalink
‘(ii) register the holding of the reserved offset credits in the Offset Registry established under section 732(d).CommentsClose CommentsPermalink
‘(B) PROJECT REVERSAL-CommentsClose CommentsPermalink
‘(i) IN GENERAL- If a reversal has occurred with respect to an offset project for which offset credits are reserved under this paragraph, the Administrator shall retire offset credits or emission allowances from the offsets reserve to fully account for the tons of carbon dioxide equivalent that are no longer sequestered.CommentsClose CommentsPermalink
‘(ii) INTENTIONAL REVERSALS- If the Administrator determines that a reversal was intentional, the offset project developer for the relevant offset project shall place into the offsets reserve a quantity of offset credits, or combination of offset credits and emission allowances, equal in number to the number of reserve offset credits that were canceled due to the reversal pursuant to clause (i).CommentsClose CommentsPermalink
‘(iii) UNINTENTIONAL REVERSALS- If the Administrator determines that a reversal was unintentional, the offset project developer for the relevant offset project shall place into the offsets reserve a quantity of offset credits, or combination of offset credits and emission allowances, equal in number to half the number of offset credits that were reserved for that offset project, or half the number of reserve offset credits that were canceled due to the reversal pursuant to clause (i), whichever is less.CommentsClose CommentsPermalink
‘(C) USE OF RESERVED OFFSET CREDITS- Offset credits placed into the offsets reserve under this paragraph may not be used to comply with section 722.CommentsClose CommentsPermalink
‘(c) Crediting Periods-CommentsClose CommentsPermalink
‘(1) IN GENERAL- For each offset project type, the Administrator shall specify a crediting period, and establish provisions for petitions for new crediting periods, in accordance with this subsection.CommentsClose CommentsPermalink
‘(2) DURATION- The crediting period shall be no less than 5 and no greater than 10 years for any project type other than those involving sequestration.CommentsClose CommentsPermalink
‘(3) ELIGIBILITY- An offset project shall be eligible to generate offset credits under this part only during the project’s crediting period. During such crediting period, the project shall remain eligible to generate offset credits, subject to the methodologies and project type eligibility list that applied as of the date of project approval under section 735, except as provided in paragraph (4) of this subsection.CommentsClose CommentsPermalink
‘(4) PETITION FOR NEW CREDITING PERIOD- An offset project developer may petition for a new crediting period to commence after termination of a crediting period, subject to the methodologies and project type eligibility list in effect at the time when such petition is submitted. A petition may not be submitted under this paragraph more than 18 months before the end of the pending crediting period. The Administrator may limit the number of new crediting periods available for projects of particular project types.CommentsClose CommentsPermalink
‘(d) Environmental Integrity- In establishing the requirements under this section, the Administrator shall apply conservative assumptions or methods to maximize the certainty that the environmental integrity of the cap established under section 703 is not compromised.CommentsClose CommentsPermalink
‘(e) Pre-existing Methodologies- In promulgating requirements under this section, the Administrator shall give due consideration to methodologies for offset projects existing as of the date of enactment of this title.CommentsClose CommentsPermalink
‘(f) Added Project Types- The Administrator shall establish methodologies described in subsection (a), and, as applicable, requirements and mechanisms for reversals as described in subsection (b), for any project type that is added to the list pursuant to section 733.CommentsClose CommentsPermalink
‘SEC. 735. APPROVAL OF OFFSET PROJECTS.
‘(a) Approval Petition- An offset project developer shall submit an offset project approval petition providing such information as the Administrator requires to determine whether the offset project is eligible for issuance of offset credits under rules promulgated pursuant to this part.CommentsClose CommentsPermalink
‘(b) Timing- An approval petition shall be submitted to the Administrator under subsection (a) no later than the time at which an offset project’s first verification report is submitted under section 736.CommentsClose CommentsPermalink
‘(c) Approval Petition Requirements- As part of the regulations promulgated under section 732, the Administrator shall include provisions for, and shall specify, the required components of an offset project approval petition required under subsection (a), which shall include--CommentsClose CommentsPermalink
‘(1) designation of an offset project developer; andCommentsClose CommentsPermalink
‘(2) any other information that the Administrator considers to be necessary to achieve the purposes of this part.CommentsClose CommentsPermalink
‘(d) Approval and Notification- Not later than 90 days after receiving a complete approval petition under subsection (a), the Administrator shall make the approval petition publicly available, approve or deny the petition in writing and if the petition is denied, provide the reasons for denial, and make the Administrator’s written decision publicly available. After an offset project is approved, the offset project developer shall not be required to resubmit an approval petition during the offset project’s crediting period, except as provided in section 734(c)(4).CommentsClose CommentsPermalink
‘(e) Appeal- The Administrator shall establish procedures for appeal and review of determinations made under subsection (d).CommentsClose CommentsPermalink
‘(f) Voluntary Preapproval Review- The Administrator may establish a voluntary preapproval review procedure, to allow an offset project developer to request the Administrator to conduct a preliminary eligibility review for an offset project. Findings of such reviews shall not be binding upon the Administrator. The voluntary preapproval review procedure--CommentsClose CommentsPermalink
‘(1) shall require the offset project developer to submit such basic project information as the Administrator requires to provide a meaningful review; andCommentsClose CommentsPermalink
‘(2) shall require a response from the Administrator not later than 6 weeks after receiving a request for review under this subsection.CommentsClose CommentsPermalink
‘SEC. 736. VERIFICATION OF OFFSET PROJECTS.
‘(a) In General- As part of the regulations promulgated under section 732(a), the Administrator shall establish requirements, including protocols, for verification of the quantity of greenhouse gas emission reductions or avoidance, or sequestration of greenhouse gases, resulting from an offset project. The regulations shall require that an offset project developer shall submit a report, prepared by a third-party verifier accredited under subsection (d), providing such information as the Administrator requires to determine the quantity of greenhouse gas emission reductions or avoidance, or sequestration of greenhouse gases, resulting from the offset project.CommentsClose CommentsPermalink
‘(b) Schedule- The Administrator shall prescribe a schedule for the submission of verification reports under subsection (a).CommentsClose CommentsPermalink
‘(c) Verification Report Requirements- The Administrator shall specify the required components of a verification report required under subsection (a), which shall include--CommentsClose CommentsPermalink
‘(1) the name and contact information for a designated representative for the offset project developer;CommentsClose CommentsPermalink
‘(2) the quantity of greenhouse gases reduced, avoided, or sequestered;CommentsClose CommentsPermalink
‘(3) the methodologies applicable to the project pursuant to section 734;CommentsClose CommentsPermalink
‘(4) a certification that the project meets the applicable requirements;CommentsClose CommentsPermalink
‘(5) a certification establishing that the conflict of interest requirements in the regulations promulgated under subsection (d)(1) have been complied with; andCommentsClose CommentsPermalink
‘(6) any other information that the Administrator considers to be necessary to achieve the purposes of this part.CommentsClose CommentsPermalink
‘(d) Verifier Accreditation-CommentsClose CommentsPermalink
‘(1) IN GENERAL- As part of the regulations promulgated under section 732(a), the Administrator shall establish a process and requirements for periodic accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest.CommentsClose CommentsPermalink
‘(2) STANDARDS-CommentsClose CommentsPermalink
‘(A) AMERICAN NATIONAL STANDARDS INSTITUTE ACCREDITATION- The Administrator may accredit, or accept for purposes of accreditation under this subsection, verifiers accredited under the American National Standards Institute (ANSI) accreditation program in accordance with ISO 14065. The Administrator shall accredit, or accept for accreditation, verifiers under this subparagraph only if the Administrator finds that the American National Standards Institute accreditation program provides sufficient assurance that the requirements of this part will be met.CommentsClose CommentsPermalink
‘(B) EPA ACCREDITATION- As part of the regulations promulgated under section 732(a), the Administrator may establish accreditation standards for verifiers under this subsection, and may establish related training and testing programs and requirements.CommentsClose CommentsPermalink
‘(3) PUBLIC ACCESSIBILITY- Each verifier meeting the requirements for accreditation in accordance with this subsection shall be listed in a publicly accessible database, which shall be maintained and updated by the Administrator.CommentsClose CommentsPermalink
‘SEC. 737. ISSUANCE OF OFFSET CREDITS.
‘(a) Determination and Notification- Not later than 90 days after receiving a complete verification report under section 736, the Administrator shall--CommentsClose CommentsPermalink
‘(1) make the report publicly available;CommentsClose CommentsPermalink
‘(2) make a determination of the quantity of greenhouse gas emissions that have been reduced or avoided, or greenhouse gases that have been sequestered, by the offset project; andCommentsClose CommentsPermalink
‘(3) notify the offset project developer in writing of such determination and make such determination publicly available.CommentsClose CommentsPermalink
‘(b) Issuance Of Offset Credits- The Administrator shall issue one offset credit to an offset project developer for each ton of carbon dioxide equivalent that the Administrator has determined has been reduced, avoided, or sequestered during the period covered by a verification report submitted in accordance with section 736, only if--CommentsClose CommentsPermalink
‘(1) the Administrator has approved the offset project pursuant to section 735; andCommentsClose CommentsPermalink
‘(2) the relevant emissions reduction, avoidance, or sequestration has--CommentsClose CommentsPermalink
‘(A) already occurred, during the offset project’s crediting period; andCommentsClose CommentsPermalink
‘(B) occurred after January 1, 2009.CommentsClose CommentsPermalink
‘(c) Appeal- The Administrator shall establish procedures for appeal and review of determinations made under subsection (a).CommentsClose CommentsPermalink
‘(d) Timing- Offset credits meeting the criteria established in subsection (b) shall be issued not later than 2 weeks following the verification determination made by the Administrator under subsection (a).CommentsClose CommentsPermalink
‘(e) Registration- The Administrator shall assign a unique serial number to and register each offset credit to be issued in the Offset Registry established under section 732(d).CommentsClose CommentsPermalink
‘SEC. 738. AUDITS.
‘(a) In General- The Administrator shall, on an ongoing basis, conduct random audits of offset projects, offset credits, and practices of third-party verifiers. In each year, the Administrator shall conduct audits, at minimum, for a representative sample of project types and geographic areas.CommentsClose CommentsPermalink
‘(b) Delegation- The Administrator may delegate to a State or tribal government the responsibility for conducting audits under this section if the Administrator finds that the program proposed by the State or tribal government provides assurances equivalent to those provided by the auditing program of the Administrator, and that the integrity of the offset program under this part will be maintained. Nothing in this subsection shall prevent the Administrator from conducting any audit the Administrator considers necessary and appropriate.CommentsClose CommentsPermalink
‘SEC. 739. PROGRAM REVIEW AND REVISION.
‘At least once every 5 years, the Administrator shall review and, based on new or updated information and taking into consideration the recommendations of the Advisory Board, update and revise--CommentsClose CommentsPermalink
‘(1) the list of eligible project types established under section 733;CommentsClose CommentsPermalink
‘(2) the methodologies established, including specific activity baselines, under section 734(a);CommentsClose CommentsPermalink
‘(3) the reversal requirements and mechanisms established or prescribed under section 734(b);CommentsClose CommentsPermalink
‘(4) measures to improve the accountability of the offsets program; andCommentsClose CommentsPermalink
‘(5) any other requirements established under this part to ensure the environmental integrity and effective operation of this part.CommentsClose CommentsPermalink
‘SEC. 740. EARLY OFFSET SUPPLY.
‘(a) Projects Registered Under Other Government-recognized Programs- Except as provided in subsection (b) or (c), the Administrator shall issue one offset credit for each ton of carbon dioxide equivalent emissions reduced, avoided, or sequestered--CommentsClose CommentsPermalink
‘(1) under an offset project that was started after January 1, 2001;CommentsClose CommentsPermalink
‘(2) for which a credit was issued under any regulatory or voluntary greenhouse gas emission offset program that the Administrator determines--CommentsClose CommentsPermalink
‘(A) was established under State or tribal law or regulation prior to January 1, 2009, or has been approved by the Administrator pursuant to subsection (e);CommentsClose CommentsPermalink
‘(B) has developed offset project type standards, methodologies, and protocols through a public consultation process or a peer review process;CommentsClose CommentsPermalink
‘(C) has made available to the public standards, methodologies, and protocols that require that credited emission reductions, avoidance, or sequestration are permanent, additional, verifiable, and enforceable;CommentsClose CommentsPermalink
‘(D) requires that all emission reductions, avoidance, or sequestration be verified by a State or tribal regulatory agency or an accredited third-party independent verification body;CommentsClose CommentsPermalink
‘(E) requires that all credits issued are registered in a publicly accessible registry, with individual serial numbers assigned for each ton of carbon dioxide equivalent emission reductions, avoidance, or sequestration; andCommentsClose CommentsPermalink
‘(F) ensures that no credits are issued for an activity if the entity administering the program, or a program administrator or representative, has funded, solicited, or served as a fund administrator for the development of the activity; andCommentsClose CommentsPermalink
‘(3) for which the credit described in paragraph (2) is transferred to the Administrator.CommentsClose CommentsPermalink
‘(b) Ineligible Credits- Subsection (a) shall not apply to offset credits that have expired or have been retired, canceled, or used for compliance under a program established under State or tribal law or regulation.CommentsClose CommentsPermalink
‘(c) Limitation- Notwithstanding subsection (a)(1), offset credits shall be issued under this section--CommentsClose CommentsPermalink
‘(1) only for reductions or avoidance of greenhouse gas emissions, sequestration of greenhouse gases, or destruction of chlorofluorocarbons (subject to the conditions specified in section 619(b)(9) and based on the carbon dioxide equivalent value of the substance destroyed), that occur after January 1, 2009; andCommentsClose CommentsPermalink
‘(2) only until the date that is 3 years after the date of enactment of this title, or the date that regulations promulgated under section 732(a) take effect, whichever occurs sooner.CommentsClose CommentsPermalink
‘(d) Retirement of Credits- The Administrator shall seek to ensure that offset credits described in subsection (a)(2) are retired for purposes of use under a program described in subsection (b).CommentsClose CommentsPermalink
‘(e) Other Programs- (1) Offset programs that either--CommentsClose CommentsPermalink
‘(A) were not established under State or tribal law or regulation; orCommentsClose CommentsPermalink
‘(B) were not established prior to January 1, 2009,CommentsClose CommentsPermalink
but that otherwise meet all of the criteria of subsection (a)(2) may apply to the Administrator to be approved under this subsection as an eligible program for early offset credits under this section.CommentsClose CommentsPermalink
‘(2) The Administrator shall approve any such program that the Administrator determines has criteria and methodologies of at least equal stringency to the criteria and methodologies of the programs established under State or tribal law or regulation that the Administrator determines meet the criteria of subsection (a)(2). The Administrator may approve types of offsets under any such program that are subject to criteria and methodologies of at least equal stringency to the criteria and methodologies for such types of offsets applied under the programs established under State or tribal law or regulation that the Administrator determines meet the criteria of subsection (a)(2). The Administrator shall make a determination on any application received under this section by no later than 180 days from the date of receipt of the application.CommentsClose CommentsPermalink
‘SEC. 741. ENVIRONMENTAL CONSIDERATIONS.
‘If the Administrator lists forestry or other relevant land management-related offset projects as eligible offset project types under section 733, the Administrator, in consultation with appropriate Federal agencies, shall promulgate regulations for the selection and use of species in such offset projects--CommentsClose CommentsPermalink
‘(1) to ensure that native species are given primary consideration in such projects;CommentsClose CommentsPermalink
‘(2) to enhance biological diversity in such projects;CommentsClose CommentsPermalink
‘(3) to prohibit the use of federally designated or State-designated noxious weeds;CommentsClose CommentsPermalink
‘(4) to prohibit the use of a species listed by a regional or State invasive plant authority within the applicable region or State; andCommentsClose CommentsPermalink
‘(5) in the case of forestry offset projects, in accordance with widely accepted, environmentally sustainable forestry practices.CommentsClose CommentsPermalink
‘SEC. 742. TRADING.
‘Section 724 shall apply to the trading of offset credits.CommentsClose CommentsPermalink
‘SEC. 743. INTERNATIONAL OFFSET CREDITS.
‘(a) In General- The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, may issue, in accordance with this section, international offset credits based on activities that reduce or avoid greenhouse gas emissions, or increase sequestration of greenhouse gases, in a developing country. Such credits may be issued for projects eligible under section 733 or as provided in subsection (c), (d), or (e) of this section.CommentsClose CommentsPermalink
‘(b) Issuance-CommentsClose CommentsPermalink
‘(1) REGULATIONS- Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Secretary of State, the Administrator of the United States Agency for International Development, and any other appropriate Federal agency, and taking into consideration the recommendations of the Advisory Board, shall promulgate regulations for implementing this section. Except as otherwise provided in this section, the issuance of international offset credits under this section shall be subject to the requirements of this part.CommentsClose CommentsPermalink
‘(2) REQUIREMENTS FOR INTERNATIONAL OFFSET CREDITS- The Administrator may issue international offset credits only if--CommentsClose CommentsPermalink
‘(A) the United States is a party to a bilateral or multilateral agreement or arrangement that includes the country in which the project or measure achieving the relevant greenhouse gas emission reduction or avoidance, or greenhouse gas sequestration, has occurred;CommentsClose CommentsPermalink
‘(B) such country is a developing country; andCommentsClose CommentsPermalink
‘(C) such agreement or arrangement--CommentsClose CommentsPermalink
‘(i) ensures that the requirements of this part apply to the issuance of international offset credits under this section; andCommentsClose CommentsPermalink
‘(ii) provides for the appropriate distribution of international offset credits issued.CommentsClose CommentsPermalink
‘(c) Sector-based Credits-CommentsClose CommentsPermalink
‘(1) IN GENERAL- In order to minimize the potential for leakage and to encourage countries to take nationally appropriate mitigation actions to reduce or avoid greenhouse gas emissions, or sequester greenhouse gases, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall--CommentsClose CommentsPermalink
‘(A) identify sectors of specific countries with respect to which the issuance of international offset credits on a sectoral basis is appropriate; andCommentsClose CommentsPermalink
‘(B) issue international offset credits for such sectors only on a sectoral basis.CommentsClose CommentsPermalink
‘(2) IDENTIFICATION OF SECTORS-CommentsClose CommentsPermalink
‘(A) GENERAL RULE- For purposes of paragraph (1)(A), a sectoral basis shall be appropriate for activities--CommentsClose CommentsPermalink
‘(i) in countries that have comparatively high greenhouse gas emissions, or comparatively greater levels of economic development; andCommentsClose CommentsPermalink
‘(ii) that, if located in the United States, would be within a sector subject to the compliance obligation under section 722.CommentsClose CommentsPermalink
‘(B) FACTORS- In determining the sectors and countries for which international offset credits should be awarded only on a sectoral basis, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall consider the following factors:CommentsClose CommentsPermalink
‘(i) The country’s gross domestic product.CommentsClose CommentsPermalink
‘(ii) The country’s total greenhouse gas emissions.CommentsClose CommentsPermalink
‘(iii) Whether the comparable sector of the United States economy is covered by the compliance obligation under section 722.CommentsClose CommentsPermalink
‘(iv) The heterogeneity or homogeneity of sources within the relevant sector.CommentsClose CommentsPermalink
‘(v) Whether the relevant sector provides products or services that are sold in internationally competitive markets.CommentsClose CommentsPermalink
‘(vi) The risk of leakage if international offset credits were issued on a project-level basis, instead of on a sectoral basis, for activities within the relevant sector.CommentsClose CommentsPermalink
‘(vii) The capability of accurately measuring, monitoring, reporting, and verifying the performance of sources across the relevant sector.CommentsClose CommentsPermalink
‘(viii) Such other factors as the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, determines are appropriate to--CommentsClose CommentsPermalink
‘(I) ensure the integrity of the United States greenhouse gas emissions cap established under section 703; andCommentsClose CommentsPermalink
‘(II) encourage countries to take nationally appropriate mitigation actions to reduce or avoid greenhouse gas emissions, or sequester greenhouse gases.CommentsClose CommentsPermalink
‘(3) SECTORAL BASIS-CommentsClose CommentsPermalink
‘(A) DEFINITION- In this subsection, the term ‘sectoral basis’ means the issuance of international offset credits only for the quantity of sector-wide reductions or avoidance of greenhouse gas emissions, or sector-wide increases in sequestration of greenhouse gases, achieved across the relevant sector of the economy relative to a domestically enforceable baseline level of absolute emissions established in an agreement or arrangement described in subsection (b)(2)(A) for the sector.CommentsClose CommentsPermalink
‘(B) BASELINE- The baseline for a sector shall be established on an absolute basis and at levels of greenhouse gas emissions consistent with the thresholds identified in section 705(e)(2) and lower than would occur under a business-as-usual scenario taking into account relevant domestic or international policies or incentives to reduce greenhouse gas emissions, among other factors, and additionality and performance shall be determined on the basis of such baseline.CommentsClose CommentsPermalink
‘(d) Credits Issued by an International Body-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Administrator, in consultation with the Secretary of State, may issue international offset credits in exchange for instruments in the nature of offset credits that are issued by an international body established pursuant to the United Nations Framework Convention on Climate Change, to a protocol to such Convention, or to a treaty that succeeds such Convention. The Administrator may issue international offset credits under this subsection only if, in addition to the requirements of subsection (b), the Administrator has determined that the international body that issued the instruments has implemented substantive and procedural requirements for the relevant project type that provide equal or greater assurance of the integrity of such instruments as is provided by the requirements of this part. Starting January 1, 2016, the Administrator shall issue no offset credit pursuant to this subsection if the activity generating the greenhouse gas emissions reductions or avoidance, or greenhouse gas sequestration, occurs in a country and sector identified by the Administrator under subsection (c).CommentsClose CommentsPermalink
‘(2) RETIREMENT- The Administrator, in consultation with the Secretary of State, shall seek, by whatever means appropriate, including agreements, arrangements, or technical cooperation with the international issuing body described in paragraph (1), to ensure that such body--CommentsClose CommentsPermalink
‘(A) is notified of the Administrator’s issuance, under this subsection, of an international offset credit in exchange for an instrument issued by such international body; andCommentsClose CommentsPermalink
‘(B) provides, to the extent feasible, for the disqualification of the instrument issued by such international body for subsequent use under any relevant foreign or international greenhouse gas regulatory program, regardless of whether such use is a sale, exchange, or submission to satisfy a compliance obligation.CommentsClose CommentsPermalink
‘(e) Offsets From Reduced Deforestation-CommentsClose CommentsPermalink
‘(1) REQUIREMENTS- The Administrator, in accordance with the regulations promulgated under subsection (b)(1) and an agreement or arrangement described in subsection (b)(2)(A), shall issue international offset credits for greenhouse gas emission reductions achieved through activities to reduce deforestation only if, in addition to the requirements of subsection (b)--CommentsClose CommentsPermalink
‘(A) the activity occurs in--CommentsClose CommentsPermalink
‘(i) a country listed by the Administrator pursuant to paragraph (2);CommentsClose CommentsPermalink
‘(ii) a state or province listed by the Administrator pursuant to paragraph (5); orCommentsClose CommentsPermalink
‘(iii) a country listed by the Administrator pursuant to paragraph (6);CommentsClose CommentsPermalink
‘(B) except as provided in paragraph (5) or (6), the quantity of the international offset credits is determined by comparing the national emissions from deforestation relative to a national deforestation baseline for that country established, in accordance with an agreement or arrangement described in subsection (b)(2)(A), pursuant to paragraph (4);CommentsClose CommentsPermalink
‘(C) the reduction in emissions from deforestation has occurred before the issuance of the international offset credit and, taking into consideration relevant international standards, has been demonstrated using ground-based inventories, remote sensing technology, and other methodologies to ensure that all relevant carbon stocks are accounted;CommentsClose CommentsPermalink
‘(D) the Administrator has made appropriate adjustments, such as discounting for any additional uncertainty, to account for circumstances specific to the country, including its technical capacity described in paragraph (2)(A);CommentsClose CommentsPermalink
‘(E) the activity is designed, carried out, and managed--CommentsClose CommentsPermalink
‘(i) in accordance with widely accepted, environmentally sustainable forest management practices;CommentsClose CommentsPermalink
‘(ii) to promote or restore native forest species and ecosystems where practicable, and to avoid the introduction of invasive nonnative species;CommentsClose CommentsPermalink
‘(iii) in a manner that gives due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;CommentsClose CommentsPermalink
‘(iv) with consultations with, and full participation of, local communities, indigenous peoples, and forest-dependent communities, in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, and monitoring and evaluation of activities; andCommentsClose CommentsPermalink
‘(v) with equitable sharing of profits and benefits derived from offset credits with local communities, indigenous peoples, and forest-dependent communities; andCommentsClose CommentsPermalink
‘(F) the reduction otherwise satisfies and is consistent with any relevant requirements established by an agreement reached under the auspices of the United Nations Framework Convention on Climate Change.CommentsClose CommentsPermalink
‘(2) ELIGIBLE COUNTRIES- The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, and in accordance with an agreement or arrangement described in subsection (b)(2)(A), shall establish, and periodically review and update, a list of the developing countries that have the capacity to participate in deforestation reduction activities at a national level, including--CommentsClose CommentsPermalink
‘(A) the technical capacity to monitor, measure, report, and verify forest carbon fluxes for all significant sources of greenhouse gas emissions from deforestation with an acceptable level of uncertainty, as determined taking into account relevant internationally accepted methodologies, such as those established by the Intergovernmental Panel on Climate Change;CommentsClose CommentsPermalink
‘(B) the institutional capacity to reduce emissions from deforestation, including strong forest governance and mechanisms to equitably distribute deforestation resources for local actions; andCommentsClose CommentsPermalink
‘(C) a land use or forest sector strategic plan that--CommentsClose CommentsPermalink
‘(i) assesses national and local drivers of deforestation and forest degradation and identifies reforms to national policies needed to address them;CommentsClose CommentsPermalink
‘(ii) estimates the country’s emissions from deforestation and forest degradation;CommentsClose CommentsPermalink
‘(iii) identifies improvements in data collection, monitoring, and institutional capacity necessary to implement a national deforestation reduction program; andCommentsClose CommentsPermalink
‘(iv) establishes a timeline for implementing the program and transitioning to low-emissions development with respect to emissions from forest and land use activities.CommentsClose CommentsPermalink
‘(3) PROTECTION OF INTERESTS- With respect to an agreement or arrangement described in subsection (b)(2)(A) that addresses international offset credits under this subsection, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall seek to ensure the establishment and enforcement by such country of legal regimes, processes, standards, and safeguards that--CommentsClose CommentsPermalink
‘(A) give due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;CommentsClose CommentsPermalink
‘(B) promote consultations with, and full participation of, forest-dependent communities and indigenous peoples in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, and monitoring and evaluation of activities; andCommentsClose CommentsPermalink
‘(C) encourage equitable sharing of profits and benefits derived from international offset credits with local communities, indigenous peoples, and forest-dependent communities.CommentsClose CommentsPermalink
‘(4) NATIONAL DEFORESTATION BASELINE- A national deforestation baseline established under this subsection shall--CommentsClose CommentsPermalink
‘(A) be national in scope;CommentsClose CommentsPermalink
‘(B) be consistent with nationally appropriate mitigation commitments or actions with respect to deforestation, taking into consideration the average annual historical deforestation rates of the country during a period of at least 5 years, the applicable drivers of deforestation, and other factors to ensure additionality;CommentsClose CommentsPermalink
‘(C) establish a trajectory that would result in zero net deforestation by not later than 20 years after the national deforestation baseline has been established;CommentsClose CommentsPermalink
‘(D) be adjusted over time to take account of changing national circumstances;CommentsClose CommentsPermalink
‘(E) be designed to account for all significant sources of greenhouse gas emissions from deforestation in the country; andCommentsClose CommentsPermalink
‘(F) be consistent with the national deforestation baseline, if any, established for such country under section 754(d)(1) and (2).CommentsClose CommentsPermalink
‘(5) STATE-LEVEL OR PROVINCE-LEVEL ACTIVITIES-CommentsClose CommentsPermalink
‘(A) ELIGIBLE STATES OR PROVINCES- The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall establish within 2 years after the date of enactment of this title, and periodically review and update, a list of states or provinces in developing countries where--CommentsClose CommentsPermalink
‘(i) the developing country is not included on the list of countries established pursuant to paragraph (6)(A);CommentsClose CommentsPermalink
‘(ii) the state or province by itself is a major emitter of greenhouse gases from tropical deforestation on a scale commensurate to the emissions of other countries; andCommentsClose CommentsPermalink
‘(iii) the state or province meets the eligibility criteria in paragraphs (2) and (3) for the geographic area under its jurisdiction.CommentsClose CommentsPermalink
‘(B) ACTIVITIES- The Administrator may issue international offset credits for greenhouse gas emission reductions achieved through activities to reduce deforestation at a state or provincial level that meet the requirements of this section. Such credits shall be determined by comparing the emissions from deforestation within that state or province relative to the state or province deforestation baseline for that state or province established, in accordance with an agreement or arrangement described in subsection (b)(2)(A), pursuant to subparagraph (C) of this paragraph.CommentsClose CommentsPermalink
‘(C) STATE OR PROVINCE DEFORESTATION BASELINE- A state or province deforestation baseline shall--CommentsClose CommentsPermalink
‘(i) be consistent with any existing nationally appropriate mitigation commitments or actions for the country in which the activity is occurring, taking into consideration the average annual historical deforestation rates of the state or province during a period of at least 5 years, relevant drivers of deforestation, and other factors to ensure additionality;CommentsClose CommentsPermalink
‘(ii) establish a trajectory that would result in zero net deforestation by not later than 20 years after the state or province deforestation baseline has been established; andCommentsClose CommentsPermalink
‘(iii) be designed to account for all significant sources of greenhouse gas emissions from deforestation in the state or province and adjusted to fully account for emissions leakage outside the state or province.CommentsClose CommentsPermalink
‘(D) PHASE OUT- Beginning 5 years after the first calendar year for which a covered entity must demonstrate compliance with section 722(a), the Administrator shall issue no further international offset credits for eligible state-level or province-level activities to reduce deforestation pursuant to this paragraph.CommentsClose CommentsPermalink
‘(6) PROJECTS AND PROGRAMS TO REDUCE DEFORESTATION-CommentsClose CommentsPermalink
‘(A) ELIGIBLE COUNTRIES- The Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall establish within 2 years after the date of enactment of this title, and periodically review and update, a list of developing countries each of which--CommentsClose CommentsPermalink
‘(i) the Administrator determines, based on recent, credible, and reliable emissions data, accounts for less than 1 percent of global greenhouse gas emissions and less than 3 percent of global forest-sector and land use change greenhouse gas emissions; andCommentsClose CommentsPermalink
‘(ii) has, or in the determination of the Administrator is making a good faith effort to develop, a land use or forest sector strategic plan that meets the criteria described in paragraph (2)(C).CommentsClose CommentsPermalink
‘(B) ACTIVITIES- The Administrator may issue international offset credits for greenhouse gas emission reductions achieved through project or program level activities to reduce deforestation in countries listed under subparagraph (A) that meet the requirements of this section. The quantity of international offset credits shall be determined by comparing the project-level or program-level emissions from deforestation to a deforestation baseline for such project or program established pursuant to subparagraph (C).CommentsClose CommentsPermalink
‘(C) PROJECT-LEVEL OR PROGRAM-LEVEL BASELINE- A project-level or program-level deforestation baseline shall--CommentsClose CommentsPermalink
‘(i) be consistent with any existing nationally appropriate mitigation commitments or actions for the country in which the project or program is occurring, taking into consideration the average annual historical deforestation rates relevant to the specific project or program during a period of at least 5 years, applicable drivers of deforestation, and other factors to ensure additionality;CommentsClose CommentsPermalink
‘(ii) be designed to account for all significant sources of greenhouse gas emissions from deforestation in the project or program boundary; andCommentsClose CommentsPermalink
‘(iii) be adjusted to fully account for emissions leakage outside the project or program boundary.CommentsClose CommentsPermalink
‘(D) PHASE OUT- (i) Beginning 5 years after the first calendar year for which a covered entity must demonstrate compliance with section 722(a), the Administrator shall issue no further international offset credits for project-level or program-level activities pursuant to this paragraph, except as provided in clause (ii).CommentsClose CommentsPermalink
‘(ii) The Administrator may extend the phase out deadline for the issuance of international offset credits under this paragraph by up to 8 years with respect to eligible activities taking place in a least developed country, which for purposes of this paragraph is defined as a foreign country that the United Nations has identified as among the least developed of developing countries at the time that the Administrator determines to provide an extension, if the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, determines the country--CommentsClose CommentsPermalink
‘(I) lacks sufficient capacity to adopt and implement effective programs to achieve reductions in deforestation measured against national baselines;CommentsClose CommentsPermalink
‘(II) is receiving support under part E to develop such capacity; andCommentsClose CommentsPermalink
‘(III) has developed and is working to implement a credible national strategy or plan to reduce deforestation.CommentsClose CommentsPermalink
‘(7) DEFORESTATION- In implementing this subsection, the Administrator, taking into consideration the recommendations of the Advisory Board, may include forest degradation, or soil carbon losses associated with forested wetlands or peatlands, within the meaning of deforestation.CommentsClose CommentsPermalink
‘(8) CONSULTATION- In implementing this subsection, the Administrator shall consult with the Secretary of Agriculture on relevant matters within such Secretary’s area of expertise.CommentsClose CommentsPermalink
‘(f) Modification of Requirements- In promulgating regulations under subsection (b)(1) with respect to the issuance of international offset credits under subsection (c), (d), or (e), the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, may modify or omit a requirement of this part (excluding the requirements of this section) if the Administrator determines that the application of that requirement to such subsection is not feasible. In modifying or omitting such a requirement on the basis of infeasibility, the Administrator, in consultation with the Secretary of State and the Administrator of the United States Agency for International Development, shall ensure, with an adequate margin of safety, the integrity of international offset credits issued under this section and of the greenhouse gas emissions cap established pursuant to section 703.CommentsClose CommentsPermalink
‘(g) Avoiding Double Counting- The Administrator, in consultation with the Secretary of State, shall seek, by whatever means appropriate, including agreements, arrangements, or technical cooperation, to ensure that activities on the basis of which international offset credits are issued under this section are not used for compliance with an obligation to reduce or avoid greenhouse gas emissions, or increase greenhouse gas sequestration, under a foreign or international regulatory system. In addition, no international offset credits shall be issued for emission reductions from activities with respect to which emission allowances were allocated under section 781 for distribution under part E.CommentsClose CommentsPermalink
‘(h) Limitation- The Administrator shall not issue international offset credits generated by projects based on the destruction of hydrofluorocarbons.CommentsClose CommentsPermalink
‘PART E--SUPPLEMENTAL EMISSIONS REDUCTIONS FROM REDUCED DEFORESTATION
‘SEC. 751. DEFINITIONS.
‘In this part:CommentsClose CommentsPermalink
‘(1) LEAKAGE PREVENTION ACTIVITIES- The term ‘leakage prevention activities’ means activities in developing countries that are directed at preserving existing forest carbon stocks, including forested wetlands and peatlands, that might, absent such activities, be lost through leakage.CommentsClose CommentsPermalink
‘(2) NATIONAL DEFORESTATION REDUCTION ACTIVITIES- The term ‘national deforestation reduction activities’ means activities in developing countries that reduce a quantity of greenhouse gas emissions from deforestation that is calculated by measuring actual emissions against a national deforestation baseline established pursuant to section 754(d)(1) and (2).CommentsClose CommentsPermalink
‘(3) SUBNATIONAL DEFORESTATION REDUCTION ACTIVITIES- The term ‘subnational deforestation reduction activities’ means activities in developing countries that reduce a quantity of greenhouse gas emissions from deforestation that are calculated by measuring actual emissions using an appropriate baseline established by the Administrator that is less than national in scope.CommentsClose CommentsPermalink
‘(4) SUPPLEMENTAL EMISSIONS REDUCTIONS- The term ‘supplemental emissions reductions’ means greenhouse gas emissions reductions achieved from reduced or avoided deforestation under this part.CommentsClose CommentsPermalink
‘(5) USAID- The term ‘USAID’ means the United States Agency for International Development.CommentsClose CommentsPermalink
‘SEC. 752. FINDINGS.
‘Congress finds that--CommentsClose CommentsPermalink
‘(1) as part of a global effort to mitigate climate change, it is in the national interest of the United States to assist developing countries to reduce and ultimately halt emissions from deforestation;CommentsClose CommentsPermalink
‘(2) deforestation is one of the largest sources of greenhouse gas emissions in developing countries, amounting to roughly 20 percent of overall emissions globally;CommentsClose CommentsPermalink
‘(3) recent scientific analysis shows that it will be substantially more difficult to limit the increase in global temperatures to less than 2 degrees centigrade above preindustrial levels without reducing and ultimately halting net emissions from deforestation;CommentsClose CommentsPermalink
‘(4) reducing emissions from deforestation is highly cost-effective, compared to many other sources of emissions reductions;CommentsClose CommentsPermalink
‘(5) in addition to contributing significantly to worldwide efforts to address global warming, assistance under this part will generate significant environmental and social cobenefits, including protection of biodiversity, ecosystem services, and forest-related livelihoods; andCommentsClose CommentsPermalink
‘(6) under the Bali Action Plan, developed country parties to the United Nations Framework Convention on Climate Change, including the United States, committed to ‘enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation,’ including, inter alia, consideration of ‘improved access to adequate, predictable, and sustainable financial resources and financial and technical support, and the provision of new and additional resources, including official and concessional funding for developing country parties’ .CommentsClose CommentsPermalink
‘SEC. 753. SUPPLEMENTAL EMISSIONS REDUCTIONS THROUGH REDUCED DEFORESTATION.
‘(a) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Administrator of USAID and any other appropriate agencies, shall promulgate regulations establishing a program to use emission allowances set aside for this purpose under section 781 to reduce greenhouse gas emissions from deforestation in developing countries in accordance with the requirements of this part.CommentsClose CommentsPermalink
‘(b) Objectives- The objectives of the program established under this section shall be to--CommentsClose CommentsPermalink
‘(1) achieve supplemental emissions reductions of at least 720,000,000 tons of carbon dioxide equivalent in 2020, a cumulative amount of at least 6,000,000,000 tons of carbon dioxide equivalent by December 31, 2025, and additional supplemental emissions reductions in subsequent years;CommentsClose CommentsPermalink
‘(2) build capacity to reduce deforestation in developing countries experiencing deforestation, including preparing developing countries to participate in international markets for international offset credits for reduced emissions from deforestation; andCommentsClose CommentsPermalink
‘(3) preserve existing forest carbon stocks in countries where such forest carbon may be vulnerable to international leakage, particularly in developing countries with largely intact native forests.CommentsClose CommentsPermalink
‘SEC. 754. REQUIREMENTS FOR INTERNATIONAL DEFORESTATION REDUCTION PROGRAM.
‘(a) Eligible Countries- The Administrator may support activities under this part only with respect to a developing country that--CommentsClose CommentsPermalink
‘(1) the Administrator, in consultation with the Administrator of USAID, determines is experiencing deforestation or forest degradation or has standing forest carbon stocks that may be at risk of deforestation or degradation; andCommentsClose CommentsPermalink
‘(2) has entered into a bilateral or multilateral agreement or arrangement with the United States establishing the conditions of its participation in the program established under this part, which shall include an agreement to meet the standards established under subsection (d) for the activities to which those standards apply.CommentsClose CommentsPermalink
‘(b) Activities-CommentsClose CommentsPermalink
‘(1) AUTHORIZED ACTIVITIES- Subject to the requirements of this part, the Administrator, in consultation with the Administrator of USAID, may support activities to achieve the objectives identified in section 753(b), including--CommentsClose CommentsPermalink
‘(A) national deforestation reduction activities;CommentsClose CommentsPermalink
‘(B) subnational deforestation reduction activities, including pilot activities that reduce greenhouse gas emissions but are subject to significant uncertainty;CommentsClose CommentsPermalink
‘(C) activities to measure, monitor, and verify deforestation, avoided deforestation, and deforestation rates;CommentsClose CommentsPermalink
‘(D) leakage prevention activities;CommentsClose CommentsPermalink
‘(E) development of measurement, monitoring, and verification capacities to enable a country to quantify supplemental emissions reductions and to generate for sale offset credits from reduced or avoided deforestation;CommentsClose CommentsPermalink
‘(F) development of governance structures to reduce deforestation and illegal logging;CommentsClose CommentsPermalink
‘(G) enforcement of requirements for reduced deforestation or forest conservation;CommentsClose CommentsPermalink
‘(H) efforts to combat illegal logging and increase enforcement cooperation;CommentsClose CommentsPermalink
‘(I) providing incentives for policy reforms to achieve the objectives identified in section 753(b); andCommentsClose CommentsPermalink
‘(J) monitoring and evaluation of the results of the activities conducted under this section.CommentsClose CommentsPermalink
‘(2) ACTIVITIES SELECTED BY USAID-CommentsClose CommentsPermalink
‘(A) The Administrator of USAID, in consultation with the Administrator, may select for support and implementation pursuant to subsection (c) any of the activities described in paragraph (1), consistent with this part and the regulations promulgated under subsection (d), and subject to the requirement to achieve the objectives listed in section 753(b)(1).CommentsClose CommentsPermalink
‘(B) With respect to the activities listed in subparagraphs (D) through (J) of paragraph (1), the Administrator of USAID, in consultation with the Administrator, shall have primary but not exclusive responsibility for selecting the activities to be supported and implemented.CommentsClose CommentsPermalink
‘(3) INTERAGENCY COORDINATION- The Administrator and the Administrator of USAID shall jointly develop and biennially update a strategic plan for meeting the objectives listed in section 753(b) and shall execute a memorandum of understanding delineating the agencies’ respective roles in implementing this part.CommentsClose CommentsPermalink
‘(c) Mechanisms-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Administrator may support activities to achieve the objectives identified in section 753(b) by--CommentsClose CommentsPermalink
‘(A) developing and implementing programs and projects that achieve such objectives; andCommentsClose CommentsPermalink
‘(B) distributing emission allowances to a country that is eligible under subsection (a), to a private or public group (including international organizations), or to an international fund established by an international agreement to which the United States is a party, to carry out activities to achieve such objectives.CommentsClose CommentsPermalink
‘(2) USAID ACTIVITIES- With respect to activities selected and implemented by the Administrator of USAID pursuant to subsection (b)(2), the Administrator shall distribute emission allowances as provided in paragraph (1) of this subsection based upon the direction of the Administrator of USAID, subject to the availability of allowances for such activities.CommentsClose CommentsPermalink
‘(3) IMPLEMENTATION THROUGH INTERNATIONAL ORGANIZATIONS- If support is distributed through an international organization, the agency responsible for selecting activities in accordance with subsection (b)(1) or (2), in consultation with the Secretary of State, shall ensure the establishment and implementation of adequate mechanisms to apply and enforce the eligibility requirements and other requirements of this section.CommentsClose CommentsPermalink
‘(4) ROLE OF THE SECRETARY OF STATE- The Administrator may not distribute emission allowances under this part to the government of another country or to an international organization or international fund unless the Secretary of State has concurred with such distribution.CommentsClose CommentsPermalink
‘(d) Standards- The Administrator, in consultation with the Administrator of USAID, shall promulgate regulations establishing standards to ensure that supplemental emissions reductions achieved through supported activities are additional, measurable, verifiable, permanent, and monitored, and account for leakage and uncertainty. In addition, such standards shall--CommentsClose CommentsPermalink
‘(1) require the establishment of a national deforestation baseline for each country with national deforestation reduction activities that is used to account for reductions achieved from such activities;CommentsClose CommentsPermalink
‘(2) provide that a national deforestation baseline established under paragraph (1) shall--CommentsClose CommentsPermalink
‘(A) be national in scope;CommentsClose CommentsPermalink
‘(B) be consistent with nationally appropriate mitigation commitments or actions with respect to deforestation, taking into consideration the average annual historical deforestation rates of the country during a period of at least 5 years, the applicable drivers of deforestation, and other factors to ensure additionality;CommentsClose CommentsPermalink
‘(C) establish a trajectory that would result in zero net deforestation by not later than 20 years from the date the baseline is established;CommentsClose CommentsPermalink
‘(D) be adjusted over time to take account of changing national circumstances;CommentsClose CommentsPermalink
‘(E) be designed to account for all significant sources of greenhouse gas emissions from deforestation in the country; andCommentsClose CommentsPermalink
‘(F) be consistent with the national deforestation baseline, if any, established for such country under section 743(e)(4);CommentsClose CommentsPermalink
‘(3) with respect to support provided pursuant to subsection (b)(1)(A) or (B), require supplemental emissions reductions to be achieved and verified prior to compensation through the distribution of emission allowances under this part;CommentsClose CommentsPermalink
‘(4) with respect to accounting for subnational deforestation reduction activities that lack the standardized or precise measurement and monitoring techniques needed for a full accounting of changes in emissions or baselines, or are subject to other sources of uncertainty, apply a conservative discount factor to reflect the uncertainty regarding the levels of reductions achieved;CommentsClose CommentsPermalink
‘(5) ensure that activities under this part shall be designed, carried out, and managed--CommentsClose CommentsPermalink
‘(A) in accordance with widely accepted, environmentally sustainable forest management practices;CommentsClose CommentsPermalink
‘(B) to promote or restore native forest species and ecosystems where practicable, and to avoid the introduction of invasive nonnative species;CommentsClose CommentsPermalink
‘(C) in a manner that gives due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;CommentsClose CommentsPermalink
‘(D) with consultations with, and full participation of, local communities, indigenous peoples, and forest-dependent communities in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, and monitoring and evaluation of activities; andCommentsClose CommentsPermalink
‘(E) with equitable sharing of profits and benefits derived from the activities with local communities, indigenous peoples, and forest-dependent communities; andCommentsClose CommentsPermalink
‘(6) with respect to support for all activities under this part, seek to ensure the establishment and enforcement, by the country in which the activities occur, of legal regimes, standards, processes, and safeguards that--CommentsClose CommentsPermalink
‘(A) give due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;CommentsClose CommentsPermalink
‘(B) promote consultations with local communities and indigenous peoples and forest-dependent communities in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, monitoring, and evaluation of activities under this part; andCommentsClose CommentsPermalink
‘(C) encourage equitable sharing of profits and benefits from incentives for emissions reductions or leakage prevention with local communities, indigenous peoples, and forest-dependent communities.CommentsClose CommentsPermalink
‘(e) Scope- (1) The Administrator shall include within the scope of activities under this part reduced emissions from forest degradation.CommentsClose CommentsPermalink
‘(2) The Administrator, in consultation with the Administrator of USAID, may decide, taking into account any advice from the Advisory Board, to expand, where appropriate, the scope of activities under this part to include reduced soil carbon-derived emissions associated with deforestation and degradation of forested wetlands and peatlands.CommentsClose CommentsPermalink
‘(f) Accounting- The Administrator shall establish a publicly accessible registry of the supplemental emissions reductions achieved through support provided under this part each year, after appropriately discounting for uncertainty and other relevant factors as required by the standards established under subsection (d).CommentsClose CommentsPermalink
‘(g) Transition to National Reductions- Beginning 5 years after the date that a country entered into the agreement or arrangement required under subsection (a)(2), the Administrator shall provide no further compensation through emission allowances to that country under this part for any subnational deforestation reduction activities, except that the Administrator may extend this period by an additional 5 years if the Administrator, in consultation with the Administrator of USAID, determines that--CommentsClose CommentsPermalink
‘(1) the country is making substantial progress towards adopting and implementing a program to achieve reductions in deforestation measured against a national baseline;CommentsClose CommentsPermalink
‘(2) the greenhouse gas emissions reductions achieved are not resulting in significant leakage; andCommentsClose CommentsPermalink
‘(3) the greenhouse gas emissions reductions achieved are being appropriately discounted to account for any leakage that is occurring.CommentsClose CommentsPermalink
The limitation under this subsection shall not apply to support for activities to further the objectives listed in section 753(b)(2) or (3).CommentsClose CommentsPermalink
‘(h) Coordination With U.S. Foreign Assistance- Subject to the direction of the President, the Administrator and the Administrator of USAID shall, to the extent practicable and consistent with the objectives of this program, seek to align activities under this section with broader development, poverty alleviation, or natural resource management objectives and initiatives in the recipient country.CommentsClose CommentsPermalink
‘(i) Support as Supplement- The provision of support for activities under this part shall be used to supplement, and not to supplant, any other Federal, State, or local support available to carry out such qualifying activities under this part.CommentsClose CommentsPermalink
‘(j) Not Eligible for Offset Credit- Activities that receive support under this part shall not be issued offset credits for the greenhouse gas emissions reductions or avoidance, or greenhouse gas sequestration, produced by such activities.CommentsClose CommentsPermalink
‘SEC. 755. REPORTS AND REVIEWS.
‘(a) Reports- Not later than January 1, 2014, and annually thereafter, the Administrator and the Administrator of USAID shall submit to the Committee on Energy and Commerce and the Committee on Foreign Affairs of the House of Representatives, and the Committee on Environment and Public Works and the Committee on Foreign Relations of the Senate, and make available to the public, a report on the support provided under this part during the prior fiscal year. The report shall include--CommentsClose CommentsPermalink
‘(1) a statement of the quantity of supplemental emissions reductions for which compensation in the form of emission allowances was provided under this part during the prior fiscal year, as registered by the Administrator under section 754(f); andCommentsClose CommentsPermalink
‘(2) a description of the national and subnational deforestation reduction activities, capacity-building activities, and leakage prevention activities supported under this part, including a statement of the quantity of emission allowances distributed to each recipient for each activity during the prior fiscal year, and a description of what was accomplished through each of the activities.CommentsClose CommentsPermalink
‘(b) Reviews- Not later than 4 years after the date of enactment of this title and every 5 years thereafter, the Administrator and the Administrator of USAID, taking into consideration any evaluation by or recommendations from the Advisory Board established under section 731, shall conduct a review of the activities undertaken pursuant to this part and make any appropriate changes in the program established under this part, consistent with the requirements of this part, based on the findings of the review. The review shall include the effects of the activities on--CommentsClose CommentsPermalink
‘(1) total documented carbon stocks of each country that directly or indirectly received support under this part compared with such country’s national deforestation baseline established under section 754(d)(1) and (2);CommentsClose CommentsPermalink
‘(2) the number of countries with the capacity to generate for sale instruments in the nature of offset credits from forest-related activities, and the amount of such activities;CommentsClose CommentsPermalink
‘(3) forest governance in each country that directly or indirectly received support under this part;CommentsClose CommentsPermalink
‘(4) indigenous peoples and forest-dependent communities residing in areas affected by such activities;CommentsClose CommentsPermalink
‘(5) biodiversity and ecosystem services within forested areas associated with the activities;CommentsClose CommentsPermalink
‘(6) subnational and international leakage; andCommentsClose CommentsPermalink
‘(7) any program or mechanism established under the United Nations Framework Convention on Climate Change related to greenhouse gas emissions from deforestation.CommentsClose CommentsPermalink
‘SEC. 756. LEGAL EFFECT OF PART.
‘(1) IN GENERAL- Nothing in this part supersedes, limits, or otherwise affects any restriction imposed by Federal law (including regulations) on any interaction between an entity located in the United States and an entity located in a foreign country.CommentsClose CommentsPermalink
‘(2) ROLE OF THE SECRETARY OF STATE- Nothing in this part shall be construed as affecting the role of the Secretary of State or the responsibilities of the Secretary under section 622(c) of the Foreign Assistance Act of 1961.’.CommentsClose CommentsPermalink
SEC. 312. DEFINITIONS.
Title VII of the Clean Air Act, as added by section 311 of this Act, is amended by inserting before part A the following new section:CommentsClose CommentsPermalink
‘SEC. 700. DEFINITIONS.
‘In this title:CommentsClose CommentsPermalink
‘(1) ADDITIONAL- The term ‘additional’, when used with respect to reductions or avoidance of greenhouse gas emissions, or to sequestration of greenhouse gases, means reductions, avoidance, or sequestration that result in a lower level of net greenhouse gas emissions or atmospheric concentrations than would occur in the absence of an offset project.CommentsClose CommentsPermalink
‘(2) ADDITIONALITY- The term ‘additionality’ means the extent to which reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, are additional.CommentsClose CommentsPermalink
‘(3) ADVISORY BOARD- The term ‘Advisory Board’ means the Offsets Integrity Advisory Board established under section 731.CommentsClose CommentsPermalink
‘(4) AFFILIATED- The term ‘affiliated’--CommentsClose CommentsPermalink
‘(A) when used in relation to an entity means owned or controlled by, or under common ownership or control with, another entity, as determined by the Administrator; andCommentsClose CommentsPermalink
‘(B) when used in relation to a natural gas local distribution company, means owned or controlled by, or under common ownership or control with, another natural gas local distribution company, as determined by the Administrator.CommentsClose CommentsPermalink
‘(5) ALLOWANCE- The term ‘allowance’ means a limited authorization to emit, or have attributable greenhouse gas emissions in an amount of, 1 ton of carbon dioxide equivalent of a greenhouse gas in accordance with this title. Such term includes an emission allowance, a compensatory allowance, and an international emission allowance, but does not include an international reserve allowance established under section 766.CommentsClose CommentsPermalink
‘(6) ATTRIBUTABLE GREENHOUSE GAS EMISSIONS- The term ‘attributable greenhouse gas emissions’, for a given calendar year, means--CommentsClose CommentsPermalink
‘(A) for a covered entity that is a fuel producer or importer described in paragraph (13)(B), greenhouse gases that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by that covered entity during that calendar year for sale or distribution in interstate commerce, assuming no capture and sequestration of any greenhouse gas emissions;CommentsClose CommentsPermalink
‘(B) for a covered entity that is an industrial gas producer or importer described in paragraph (13)(C), the tons of carbon dioxide equivalent of any gas described in clauses (i) through (vi) of paragraph (13)(C)--CommentsClose CommentsPermalink
‘(i) produced or imported by such covered entity during that calendar year for sale or distribution in interstate commerce; orCommentsClose CommentsPermalink
‘(ii) released as fugitive emissions in the production of fluorinated gas; andCommentsClose CommentsPermalink
‘(C) for a natural gas local distribution company described in paragraph (13)(J), greenhouse gases that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, that such entity delivered during that calendar year to customers that are not covered entities, assuming no capture and sequestration of that greenhouse gas.CommentsClose CommentsPermalink
‘(7) BIOLOGICAL SEQUESTRATION; BIOLOGICALLY SEQUESTERED- The terms ‘biological sequestration’ and ‘biologically sequestered’ mean the removal of greenhouse gases from the atmosphere by terrestrial biological means, such as by growing plants, and the storage of those greenhouse gases in plants or soils.CommentsClose CommentsPermalink
‘(8) CAPPED EMISSIONS- The term ‘capped emissions’ means greenhouse gas emissions to which section 722 applies, including emissions from the combustion of natural gas, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid to which section 722(b)(2) or (8) applies.CommentsClose CommentsPermalink
‘(9) CAPPED SOURCE- The term ‘capped source’ means a source that directly emits capped emissions.CommentsClose CommentsPermalink
‘(10) CARBON DIOXIDE EQUIVALENT- The term ‘carbon dioxide equivalent’ means the unit of measure, expressed in metric tons, of greenhouse gases as provided under section 711 or 712.CommentsClose CommentsPermalink
‘(11) CARBON STOCK- The term ‘carbon stock’ means the quantity of carbon contained in a biological reservoir or system which has the capacity to accumulate or release carbon.CommentsClose CommentsPermalink
‘(12) COMPENSATORY ALLOWANCE- The term ‘compensatory allowance’ means an allowance issued under section 721(f).CommentsClose CommentsPermalink
‘(13) COVERED ENTITY- The term ‘covered entity’ means each of the following:CommentsClose CommentsPermalink
‘(A) Any electricity source.CommentsClose CommentsPermalink
‘(B) Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce in 2008 or any subsequent year, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, the combustion of which would emit 25,000 or more tons of carbon dioxide equivalent, as determined by the Administrator.CommentsClose CommentsPermalink
‘(C) Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce, in bulk, or in products designated by the Administrator, in 2008 or any subsequent year 25,000 or more tons of carbon dioxide equivalent of--CommentsClose CommentsPermalink
‘(i) fossil fuel-based carbon dioxide;CommentsClose CommentsPermalink
‘(ii) nitrous oxide;CommentsClose CommentsPermalink
‘(iii) perfluorocarbons;CommentsClose CommentsPermalink
‘(iv) sulfur hexafluoride;CommentsClose CommentsPermalink
‘(v) any other fluorinated gas, except for nitrogen trifluoride, that is a greenhouse gas, as designated by the Administrator under section 711; orCommentsClose CommentsPermalink
‘(vi) any combination of greenhouse gases described in clauses (i) through (v).CommentsClose CommentsPermalink
‘(D) Any stationary source that has emitted 25,000 or more tons of carbon dioxide equivalent of nitrogen trifluoride in 2008 or any subsequent year.CommentsClose CommentsPermalink
‘(E) Any geologic sequestration site.CommentsClose CommentsPermalink
‘(F) Any stationary source in the following industrial sectors:CommentsClose CommentsPermalink
‘(i) Adipic acid production.CommentsClose CommentsPermalink
‘(ii) Primary aluminum production.CommentsClose CommentsPermalink
‘(iii) Ammonia manufacturing.CommentsClose CommentsPermalink
‘(iv) Cement production, excluding grinding-only operations.CommentsClose CommentsPermalink
‘(v) Hydrochlorofluorocarbon production.CommentsClose CommentsPermalink
‘(vi) Lime manufacturing.CommentsClose CommentsPermalink
‘(vii) Nitric acid production.CommentsClose CommentsPermalink
‘(viii) Petroleum refining.CommentsClose CommentsPermalink
‘(ix) Phosphoric acid production.CommentsClose CommentsPermalink
‘(x) Silicon carbide production.CommentsClose CommentsPermalink
‘(xi) Soda ash production.CommentsClose CommentsPermalink
‘(xii) Titanium dioxide production.CommentsClose CommentsPermalink
‘(xiii) Coal-based liquid or gaseous fuel production.CommentsClose CommentsPermalink
‘(G) Any stationary source in the chemical or petrochemical sector that, in 2008 or any subsequent year--CommentsClose CommentsPermalink
‘(i) produces acrylonitrile, carbon black, ethylene, ethylene dichloride, ethylene oxide, or methanol; orCommentsClose CommentsPermalink
‘(ii) produces a chemical or petrochemical product if producing that product results in annual combustion plus process emissions of 25,000 or more tons of carbon dioxide equivalent.CommentsClose CommentsPermalink
‘(H) Any stationary source that--CommentsClose CommentsPermalink
‘(i) is in one of the following industrial sectors: ethanol production; ferroalloy production; fluorinated gas production; food processing; glass production; hydrogen production; iron and steel production; lead production; pulp and paper manufacturing; and zinc production; andCommentsClose CommentsPermalink
‘(ii) has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year.CommentsClose CommentsPermalink
‘(I) Any fossil fuel-fired combustion device (such as a boiler) or grouping of such devices that--CommentsClose CommentsPermalink
‘(i) is all or part of an industrial source not specified in subparagraph (D), (F), (G), or (H); andCommentsClose CommentsPermalink
‘(ii) has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year.CommentsClose CommentsPermalink
‘(J) Any natural gas local distribution company that (or any group of 2 or more affiliated natural gas local distribution companies that, in the aggregate), in 2008 or any subsequent year, delivers 460,000,000 cubic feet or more of natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, to customers that are not covered entities.CommentsClose CommentsPermalink
‘(14) CREDITING PERIOD- The term ‘crediting period’ means the period with respect to which an offset project is eligible to earn offset credits under part D, as determined under section 734(c).CommentsClose CommentsPermalink
‘(15) DESIGNATED REPRESENTATIVE- The term ‘designated representative’ means, with respect to a covered entity, a reporting entity (as defined in section 713), an offset project developer, or any other entity receiving or holding allowances or offset credits under this title, an individual authorized, through a certificate of representation submitted to the Administrator by the owners and operators or similar entity official, to represent the owners and operators or similar entity official in all matters pertaining to this title (including the holding, transfer, or disposition of allowances or offset credits), and to make all submissions to the Administrator under this title.CommentsClose CommentsPermalink
‘(16) DEVELOPING COUNTRY- The term ‘developing country’ means a country eligible to receive official development assistance according to the income guidelines of the Development Assistance Committee of the Organization for Economic Cooperation and Development.CommentsClose CommentsPermalink
‘(17) DOMESTIC OFFSET CREDIT- The term ‘domestic offset credit’ means an offset credit issued under part D, other than an international offset credit.CommentsClose CommentsPermalink
‘(18) ELECTRICITY SOURCE- The term ‘electricity source’ means a stationary source that includes one or more utility units.CommentsClose CommentsPermalink
‘(19) EMISSION- The term ‘emission’ means the release of a greenhouse gas into the ambient air. Such term does not include gases that are captured and geologically sequestered, except to the extent that they are later released into the atmosphere, in which case compliance must be demonstrated pursuant to section 722(b)(5).CommentsClose CommentsPermalink
‘(20) EMISSION ALLOWANCE- The term ‘emission allowance’ means an allowance established under section 721(a) or section 726(g)(2) or (h)(1)(C).CommentsClose CommentsPermalink
‘(21) FAIR MARKET VALUE- The term ‘fair market value’ means the average daily closing price on registered exchanges or, if such a price is unavailable, the average price as determined by the Administrator, during a specified time period, of an emission allowance.CommentsClose CommentsPermalink
‘(22) FEDERAL LAND- The term ‘Federal land’ means land that is owned by the United States, other than land held in trust for an Indian or Indian tribe.CommentsClose CommentsPermalink
‘(23) FOSSIL FUEL- The term ‘fossil fuel’ means natural gas, petroleum, or coal, or any form of solid, liquid, or gaseous fuel derived from such material, including consumer products that are derived from such materials and are combusted.CommentsClose CommentsPermalink
‘(24) FOSSIL FUEL-FIRED- The term ‘fossil fuel-fired’ means powered by combustion of fossil fuel, alone or in combination with any other fuel, regardless of the percentage of fossil fuel consumed.CommentsClose CommentsPermalink
‘(25) FUGITIVE EMISSIONS- The term ‘fugitive emissions’ means emissions from leaks, valves, joints, or other small openings in pipes, ducts, or other equipment, or from vents.CommentsClose CommentsPermalink
‘(26) GEOLOGIC SEQUESTRATION; GEOLOGICALLY SEQUESTERED- The terms ‘geologic sequestration’ and ‘geologically sequestered’ mean the sequestration of greenhouse gases in subsurface geologic formations for purposes of permanent storage.CommentsClose CommentsPermalink
‘(27) GEOLOGIC SEQUESTRATION SITE- The term ‘geologic sequestration site’ means a site where carbon dioxide is geologically sequestered.CommentsClose CommentsPermalink
‘(28) GREENHOUSE GAS- The term ‘greenhouse gas’ means any gas described in section 711(a) or designated under section 711, except to the extent that it is regulated under title VI.CommentsClose CommentsPermalink
‘(29) HIGH CONSERVATION PRIORITY LAND- The term ‘high conservation priority land’ means land that is not Federal land and is--CommentsClose CommentsPermalink
‘(A) globally or State ranked as critically imperiled or imperiled under a State Natural Heritage Program; orCommentsClose CommentsPermalink
‘(B) old-growth or late-successional forest, as identified by the office of the State Forester or relevant State agency with regulatory jurisdiction over forestry activities.CommentsClose CommentsPermalink
‘(30) HOLD- The term ‘hold’ means, with respect to an allowance or offset credit, to have in the appropriate account in the allowance tracking system established under section 724(d), or submit to the Administrator for recording in such account.CommentsClose CommentsPermalink
‘(31) INDUSTRIAL SOURCE- The term ‘industrial source’ means any stationary source that--CommentsClose CommentsPermalink
‘(A) is not an electricity source; andCommentsClose CommentsPermalink
‘(B) is in--CommentsClose CommentsPermalink
‘(i) the manufacturing sector (as defined in North American Industrial Classification System codes 31, 32, and 33); orCommentsClose CommentsPermalink
‘(ii) the natural gas processing or natural gas pipeline transportation sector (as defined in North American Industrial Classification System codes 211112 and 486210).CommentsClose CommentsPermalink
‘(32) INTERNATIONAL EMISSION ALLOWANCE- The term ‘international emission allowance’ means a tradable authorization to emit 1 ton of carbon dioxide equivalent of greenhouse gas that is issued by a national or supranational foreign government pursuant to a qualifying international program designated by the Administrator pursuant to section 728(a).CommentsClose CommentsPermalink
‘(33) INTERNATIONAL OFFSET CREDIT- The term ‘international offset credit’ means an offset credit issued by the Administrator under section 743.CommentsClose CommentsPermalink
‘(34) LEAKAGE- Except as provided in part F, the term ‘leakage’ means a significant increase in greenhouse gas emissions, or significant decrease in sequestration, which is caused by an offset project or activities under part E and occurs outside the boundaries of the offset project or the relevant program or project under part E.CommentsClose CommentsPermalink
‘(35) MINERAL SEQUESTRATION- The term ‘mineral sequestration’ means sequestration of carbon dioxide from the atmosphere by capturing carbon dioxide into a permanent mineral, such as the aqueous precipitation of carbonate minerals that results in the storage of carbon dioxide in a mineral form.CommentsClose CommentsPermalink
‘(36) NATURAL GAS LIQUID- The term ‘natural gas liquid’ means ethane, butane, isobutane, natural gasoline, and propane.CommentsClose CommentsPermalink
‘(37) NATURAL GAS LOCAL DISTRIBUTION COMPANY- The term ‘natural gas local distribution company’ has the meaning given the term ‘local distribution company’ in section 2(17) of the Natural Gas Policy Act of 1978 (
15 U.S.C. 3301(17) ).CommentsClose CommentsPermalink‘(38) OFFSET CREDIT- The term ‘offset credit’ means a credit issued under part D.CommentsClose CommentsPermalink
‘(39) OFFSET PROJECT- The term ‘offset project’ means a project or activity that reduces or avoids greenhouse gas emissions, or sequesters greenhouse gases, and for which offset credits are or may be issued under part D.CommentsClose CommentsPermalink
‘(40) OFFSET PROJECT DEVELOPER- The term ‘offset project developer’ means the individual or entity designated as the offset project developer in an offset project approval petition under section 735(c)(1).CommentsClose CommentsPermalink
‘(41) PETROLEUM- The term ‘petroleum’ includes crude oil, tar sands, oil shale, and heavy oils.CommentsClose CommentsPermalink
‘(42) RENEWABLE BIOMASS- The term ‘renewable biomass’ means any of the following:CommentsClose CommentsPermalink
‘(A) Plant material, including waste material, harvested or collected from actively managed agricultural land that was in cultivation, cleared, or fallow and nonforested on January 1, 2009.CommentsClose CommentsPermalink
‘(B) Plant material, including waste material, harvested or collected from pastureland that was nonforested on January 1, 2009.CommentsClose CommentsPermalink
‘(C) Nonhazardous vegetative matter derived from waste, including separated yard waste, landscape right-of-way trimmings, construction and demolition debris or food waste (but not municipal solid waste, recyclable waste paper, painted, treated or pressurized wood, or wood contaminated with plastic or metals).CommentsClose CommentsPermalink
‘(D) Animal waste or animal byproducts, including products of animal waste digesters.CommentsClose CommentsPermalink
‘(E) Algae.CommentsClose CommentsPermalink
‘(F) Trees, brush, slash, residues, or any other vegetative matter removed from within 600 feet of any building, campground, or route designated for evacuation by a public official with responsibility for emergency preparedness, or from within 300 feet of a paved road, electric transmission line, utility tower, or water supply line.CommentsClose CommentsPermalink
‘(G) Residues from or byproducts of milled logs.CommentsClose CommentsPermalink
‘(H) Any of the following removed from forested land that is not Federal land and is not high conservation priority land:CommentsClose CommentsPermalink
‘(i) Trees, brush, slash, residues, interplanted energy crops, or any other vegetative matter removed from an actively managed tree plantation established--CommentsClose CommentsPermalink
‘(I) prior to January 1, 2009; orCommentsClose CommentsPermalink
‘(II) on land that, as of January 1, 2009, was cultivated or fallow and non-forested.CommentsClose CommentsPermalink
‘(ii) Trees, logging residue, thinnings, cull trees, pulpwood, and brush removed from naturally-regenerated forests or other non-plantation forests, including for the purposes of hazardous fuel reduction or preventative treatment for reducing or containing insect or disease infestation.CommentsClose CommentsPermalink
‘(iii) Logging residue, thinnings, cull trees, pulpwood, brush and species that are non-native and noxious, from stands that were planted and managed after January 1, 2009, to restore or maintain native forest types.CommentsClose CommentsPermalink
‘(iv) Dead or severely damaged trees removed within 5 years of fire, blowdown, or other natural disaster, and badly infested trees.CommentsClose CommentsPermalink
‘(I) Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (
43 U.S.C. 1702 )), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are--CommentsClose CommentsPermalink
‘(i) not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth or mature forest stands, components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas; or Wild and Scenic Rivers corridors;CommentsClose CommentsPermalink
‘(ii) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; andCommentsClose CommentsPermalink
‘(iii) harvested in accordance with Federal and State law, and applicable land management plans.CommentsClose CommentsPermalink
‘(43) RETIRE- The term ‘retire’, with respect to an allowance or offset credit established or issued under this title, means to disqualify such allowance or offset credit for any subsequent use under this title, regardless of whether the use is a sale, exchange, or submission of the allowance or offset credit to satisfy a compliance obligation.CommentsClose CommentsPermalink
‘(44) REVERSAL- The term ‘reversal’ means an intentional or unintentional loss of sequestered greenhouse gases to the atmosphere.CommentsClose CommentsPermalink
‘(45) SEQUESTERED AND SEQUESTRATION- The terms ‘sequestered’ and ‘sequestration’ mean the separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator. The terms include biological, geologic, and mineral sequestration, but do not include ocean fertilization techniques.CommentsClose CommentsPermalink
‘(46) STATIONARY SOURCE- The term ‘stationary source’ means any integrated operation comprising any plant, building, structure, or stationary equipment, including support buildings and equipment, that is located within one or more contiguous or adjacent properties, is under common control of the same person or persons, and emits or may emit a greenhouse gas.CommentsClose CommentsPermalink
‘(47) STRATEGIC RESERVE ALLOWANCE- The term ‘strategic reserve allowance’ means an emission allowance reserved for, transferred to, or deposited in the strategic reserve under section 726.CommentsClose CommentsPermalink
‘(48) TON- The term ‘ton’ means metric ton.CommentsClose CommentsPermalink
‘(49) UNCAPPED EMISSIONS- The term ‘uncapped emissions’ means emissions of greenhouse gases emitted after December 31, 2011, that are not capped emissions.CommentsClose CommentsPermalink
‘(50) UNITED STATES GREENHOUSE GAS EMISSIONS- The term ‘United States greenhouse gas emissions’ means the total quantity of annual greenhouse gas emissions from the United States, as calculated by the Administrator and reported to the United Nations Framework Convention on Climate Change Secretariat.CommentsClose CommentsPermalink
‘(51) UTILITY UNIT- The term ‘utility unit’ means a combustion device that, on January 1, 2009, or any date thereafter, is fossil fuel-fired and serves a generator that produces electricity for sale, unless such combustion device, during the 12-month period starting the later of January 1, 2009, or the commencement of commercial operation and each calendar year starting after such later date--CommentsClose CommentsPermalink
‘(A) is part of an integrated cycle system that cogenerates steam and electricity during normal operation and that supplies one-third or less of its potential electric output capacity and 25 MW or less of electrical output for sale; orCommentsClose CommentsPermalink
‘(B) combusts materials of which more than 95 percent is municipal solid waste on a heat input basis.CommentsClose CommentsPermalink
‘(52) VINTAGE YEAR- The term ‘vintage year’ means the calendar year for which an emission allowance is established under section 721(a) or which is assigned to an emission allowance under section 726(g)(3)(A), except that the vintage year for a strategic reserve allowance shall be the year in which such allowance is purchased at auction.’.CommentsClose CommentsPermalink
Subtitle B--Disposition of AllowancesCommentsClose CommentsPermalink
Subtitle B--Disposition of AllowancesCommentsClose CommentsPermalink
SEC. 321. DISPOSITION OF ALLOWANCES FOR GLOBAL WARMING POLLUTION REDUCTION PROGRAM.
Title VII of the Clean Air Act, as added by section 311 of this Act, is amended by adding at the end the following part:CommentsClose CommentsPermalink
‘PART H--DISPOSITION OF ALLOWANCES
‘SEC. 781. ALLOCATION OF ALLOWANCES FOR SUPPLEMENTAL REDUCTIONS.
‘(a) In General- The Administrator shall allocate for each vintage year the following percentage of the emission allowances established under section 721(a), for distribution in accordance with part E:CommentsClose CommentsPermalink
‘(1) For vintage years 2012 through 2025, 5 percent.CommentsClose CommentsPermalink
‘(2) For vintage years 2026 through 2030, 3 percent.CommentsClose CommentsPermalink
‘(3) For vintage years 2031 through 2050, 2 percent.CommentsClose CommentsPermalink
‘(b) Adjustment- The Administrator shall modify the percentages set forth in subsection (a) as necessary to ensure the achievement of the annual supplemental emission reduction objective for 2020, and the cumulative reduction objective through 2025, set forth in section 753(b)(1).CommentsClose CommentsPermalink
‘(c) Carryover- If the Administrator has not distributed all of the allowances allocated pursuant to this section for a given vintage year by the end of that year, all such undistributed emission allowances shall, in accordance with section 782(s), be exchanged for allowances from the following vintage year and treated as part of the allocation for supplemental reductions entities under this section for that later vintage year.CommentsClose CommentsPermalink
‘SEC. 782. ALLOCATION OF EMISSION ALLOWANCES.
‘(a) Electricity Consumers- (1) The Administrator shall allocate emission allowances for the benefit of electricity consumers, to be distributed in accordance with section 783(b), (c), and (d) in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2012 and 2013: 43.75 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage years 2014 and 2015: 38.89 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage years 2016 through 2025: 35.00 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(D) For vintage year 2026: 28 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(E) For vintage year 2027: 21 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(F) For vintage year 2028: 14 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(G) For vintage year 2029: 7 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(2) The Administrator shall allocate emission allowances for energy efficiency, renewable electricity, and low income ratepayer assistance programs administered by small electricity local distribution companies, to be distributed in accordance with section 783(e) in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2012 through 2025: 0.5 percent of the emission allowances established each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage year 2026: 0.4 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage year 2027: 0.3 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(D) For vintage year 2028: 0.2 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(E) For vintage year 2029: 0.1 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(b) Natural Gas Consumers- The Administrator shall allocate emission allowances for the benefit of natural gas consumers to be distributed in accordance with section 784 in the following amounts:CommentsClose CommentsPermalink
‘(1) For vintage years 2016 through 2025, 9 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) For vintage year 2026, 7.2 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(3) For vintage year 2027, 5.4 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(4) For vintage year 2028, 3.6 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(5) For vintage year 2029, 1.8 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(c) Home Heating Oil and Propane Consumers- The Administrator shall allocate emission allowances for the benefit of home heating oil and propane consumers to be distributed in accordance with section 785 in the following amounts:CommentsClose CommentsPermalink
‘(1) For vintage years 2012 and 2013, 1.875 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) For vintage years 2014 and 2015, 1.67 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(3) For vintage years 2016 through 2025, 1.5 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(4) For vintage year 2026, 1.2 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(5) For vintage year 2027, 0.9 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(6) For vintage year 2028, 0.6 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(7) For vintage year 2029, 0.3 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(d) Low Income Consumers- For each vintage year starting in 2012, the Administrator shall auction, pursuant to section 791, 15 percent of the emission allowances established for each year under section 721(a), with the proceeds used for the benefit of low income consumers to fund the program set forth in subtitle C of title IV of American Clean Energy and Security Act of 2009 and the amendments made thereby.CommentsClose CommentsPermalink
‘(e) Trade-vulnerable Industries-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Administrator shall allocate emission allowances to energy-intensive, trade-exposed entities, to be distributed in accordance with section 765, in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2012 and 2013, up to 2.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage year 2014, up to 15 percent of the emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage year 2015, up to the product of--CommentsClose CommentsPermalink
‘(i) the amount specified in paragraph (2); multiplied byCommentsClose CommentsPermalink
‘(ii) the quantity of emission allowances established for 2015 under section 721(a) divided by the quantity of emission allowances established for 2014 under section 721(a).CommentsClose CommentsPermalink
‘(D) For vintage year 2016, up to the product of--CommentsClose CommentsPermalink
‘(i) the amount specified in paragraph (3); multiplied byCommentsClose CommentsPermalink
‘(ii) the quantity of emission allowances established for 2015 under section 721(a) divided by the quantity of emission allowances established for 2014 under section 721(a).CommentsClose CommentsPermalink
‘(E) For vintage years 2017 through 2025, up to the product of--CommentsClose CommentsPermalink
‘(i) the amount specified in paragraph (4); multiplied byCommentsClose CommentsPermalink
‘(ii) the quantity of emission allowances established for that year under section 721(a) divided by the quantity of emission allowances established for 2016 under section 721(a).CommentsClose CommentsPermalink
‘(F) For vintage years 2026 through 2050, up to the product of the amount specified in paragraph (4)--CommentsClose CommentsPermalink
‘(i) multiplied by the quantity of emission allowances established for the applicable year during 2026 through 2050 under section 721(a) divided by the quantity of emission allowances established for 2016 under section 721(a); andCommentsClose CommentsPermalink
‘(ii) multiplied by a factor that shall equal 90 percent for 2026 and decline 10 percent for each year thereafter until reaching zero, except that, if the President modifies a percentage for a year under subparagraph (A) of section 767(c)(3), the highest percentage the President applies for any sector under that subparagraph for that year (not exceeding 100 percent) shall be used for that year instead of the factor otherwise specified in this clause.CommentsClose CommentsPermalink
‘(2) CARRYOVER- After the Administrator distributes emission allowances pursuant to section 765 for any given vintage year, any emission allowances allocated to energy-intensive, trade-exposed entities pursuant to this subsection that have not been so distributed shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation to such entities for that later vintage year.CommentsClose CommentsPermalink
‘(f) Deployment of Carbon Capture and Sequestration Technology-CommentsClose CommentsPermalink
‘(1) ANNUAL ALLOCATION- The Administrator shall allocate emission allowances for the deployment of carbon capture and sequestration technology to be distributed in accordance with section 786 in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2014 through 2017, 1.75 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage years 2018 and 2019, 4.75 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage years 2020 through 2050, 5 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) CARRYOVER- If the Administrator has not distributed all of the allowances allocated pursuant to this subsection for a given vintage year by the end of that year, all such undistributed emission allowances shall, in accordance with subsection (s), be exchanged for allowances from the following vintage year and treated as part of the allocation for the deployment of carbon capture and sequestration technology under this subsection for that later vintage year.CommentsClose CommentsPermalink
‘(g) Investment in Energy Efficiency and Renewable Energy- The Administrator shall allocate emission allowances to invest in energy efficiency and renewable energy as follows:CommentsClose CommentsPermalink
‘(1) To be distributed in accordance with section 132 of the American Clean Energy and Security Act of 2009 in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2012 through 2015, 9.5 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage years 2016 through 2017, 6.5 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage years 2018 through 2021, 5.5 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(D) For vintage years 2022 through 2025, 1.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(E) For vintage years 2026 through 2050, 4.5 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(F) At the same time allowances are distributed under subparagraph (D) for each of the vintage years 2022 through 2025, 3.55 percent of emission allowances established under section 721(a) for the vintage year four years after that vintage year shall also be distributed (which shall be in addition to the emission allowances distributed under subparagraph (E)).CommentsClose CommentsPermalink
‘(2) To be distributed in accordance with section 304 of the Energy Conservation and Production Act, as amended by section 201 of the American Clean Energy and Security Act of 2009, for each vintage year from 2012 through 2050, 0.5 percent of emission allowances established for that year under section 721(a).CommentsClose CommentsPermalink
‘(h) Energy Research and Development-CommentsClose CommentsPermalink
‘(1) ENERGY INNOVATION HUBS- For vintage years 2012 through 2050, the Administrator shall allocate 0.45 percent of the emission allowances established under section 721(a) to be distributed to Energy Innovation Hubs in accordance with section 171 of the American Clean Energy and Security Act of 2009.CommentsClose CommentsPermalink
‘(2) ADVANCED ENERGY RESEARCH- For vintage years 2012 through 2050, the Administrator shall allocate 1.05 percent of the emission allowances established under section 721(a) for the Advanced Research Project Agency-Energy to be distributed in accordance with section 172 of the American Clean Energy and Security Act of 2009.CommentsClose CommentsPermalink
‘(i) Investment in Clean Vehicle Technology- The Administrator shall allocate emission allowances to invest in the development and deployment of clean vehicles, to be distributed in accordance with section 124 of the American Clean Energy and Security Act of 2009 in the following amounts:CommentsClose CommentsPermalink
‘(1) For vintage years 2012 through 2017, 3 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) For vintage years 2018 through 2025, 1 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(j) Domestic Fuel Production- For vintage years 2014 through 2026, the Administrator shall allocate and distribute according to section 787--CommentsClose CommentsPermalink
‘(1) 2 percent of the emission allowances established for each year under section 721(a) to domestic petroleum refineries that are covered entities pursuant to section 700(13)(F)(viii), including small business refiners; andCommentsClose CommentsPermalink
‘(2) an additional 0.25 percent of the emissions allowances established for each year under section 721(a) to small business refiners that are covered entities pursuant to section 700(13)(F)(viii).CommentsClose CommentsPermalink
‘(k) Investment in Workers- The Administrator shall auction pursuant to section 791 emission allowances for the benefit of workers pursuant to part 2 of subtitle B of the American Clean Energy and Security Act of 2009 in the following amounts, and shall deposit into the Climate Change Worker Adjustment Assistance Fund established pursuant to section 793, and report to the Secretary of Labor on, the proceeds from the sale of these allowances:CommentsClose CommentsPermalink
‘(1) For vintage years 2012 through 2021, 0.5 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) For vintage years 2022 through 2050, 1.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
All amounts deposited into the fund shall be available to the Secretary of Labor until expended to carry out part 2 of subtitle B of title IV of the American Clean Energy and Security Act of 2009. Of the amounts deposited, not more than $10,000,000 shall be available to the Secretary of Labor for Federal administration costs of such part 2 each fiscal year.CommentsClose CommentsPermalink
‘(l) Domestic Adaptation- The Administrator shall allocate emission allowances for domestic adaptation as follows:CommentsClose CommentsPermalink
‘(1) To be distributed in accordance with section 453 of the American Clean Energy and Security Act of 2009 in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2012 through 2021, 0.9 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage years 2022 through 2026, 1.9 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage years 2027 through 2050, 3.9 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) For vintage year 2012 and thereafter, the Administrator shall auction, pursuant to section 791, 0.1 percent of the emission allowances established for each year under section 721(a), and shall deposit the proceeds in the Climate Change Health Protection and Promotion Fund established by section 467 of the American Clean Energy and Security Act of 2009.CommentsClose CommentsPermalink
‘(m) Wildlife and Natural Resource Adaptation- The Administrator shall allocate emission allowances for wildlife and natural resource adaptation as follows:CommentsClose CommentsPermalink
‘(1) To be distributed to State agencies in accordance with section 480(a) of the American Clean Energy and Security Act of 2009 in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2012 through 2021, 0.385 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage years 2022 through 2026, 0.77 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage years 2027 through 2050, 1.54 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) To be auctioned pursuant to section 791, with the proceeds to be deposited in the Natural Resources Climate Change Adaptation Fund established pursuant to section 480(b), in the following amounts:CommentsClose CommentsPermalink
‘(A) For vintage years 2012 through 2021, 0.615 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(B) For vintage years 2022 through 2026, 1.23 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(C) For vintage years 2027 through 2050, 2.46 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(n) International Adaptation- The Administrator shall allocate emission allowances for international adaptation to be distributed in accordance with part 2 of subtitle E of title IV of the American Clean Energy and Security Act of 2009 in the following amounts:CommentsClose CommentsPermalink
‘(1) For vintage years 2012 through 2021, 1.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) For vintage years 2022 through 2026, 2.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(3) For vintage years 2027 through 2050, 4.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(o) International Clean Technology Deployment- The Administrator shall allocate emission allowances for international clean technology deployment for distribution in accordance with subtitle D of title IV of the American Clean Energy and Security Act of 2009 in the following amounts:CommentsClose CommentsPermalink
‘(1) For vintage years 2012 through 2021, 1.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(2) For vintage years 2022 through 2026, 2.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(3) For vintage years 2027 through 2050, 4.0 percent of the emission allowances established for each year under section 721(a).CommentsClose CommentsPermalink
‘(p) Release of Future Allowances- The Administrator shall make future year allowances available by auctioning allowances, pursuant to section 791, in the following amounts:CommentsClose CommentsPermalink
‘(1) In each of calendar years 2014 through 2019, a string of 0.70 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string.CommentsClose CommentsPermalink
‘(2) In each of calendar years 2020 through 2025, a string of 0.50 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string.CommentsClose CommentsPermalink
‘(3) In each of calendar years 2026 through 2030, a string of 0.3 billion allowances with vintage years 12 to 17 years after the year of the auction, with an equal number of allowances from each vintage year in the string.CommentsClose CommentsPermalink
‘(q) Deficit Reduction-CommentsClose CommentsPermalink
‘(1) For each of vintage years 2012 through 2025, any allowances not allocated for distribution or auction pursuant to section 781 or subsections (a) through (o) of this section, or disbursed pursuant to section 790, shall be auctioned by the Administrator pursuant to section 791 and the proceeds shall be deposited into the Treasury.CommentsClose CommentsPermalink
‘(2) Unless otherwise specified, any allowances allocated pursuant to subsections (a) through (o) and not distributed by March 31 of the calendar year following the allowance’s vintage year, shall be auctioned by the Administrator and the proceeds shall be deposited into the Treasury.CommentsClose CommentsPermalink
‘(3) For auctions conducted through calendar year 2020 pursuant to subsection (p), the auction proceeds shall be deposited into the Treasury.CommentsClose CommentsPermalink
‘(r) Climate Change Consumer Refund-CommentsClose CommentsPermalink
‘(1) For each of vintage years 2026 through 2050, the Administrator shall auction the following allowances established under section 721(a) and deposit the proceeds into the Climate Change Consumer Refund Account:CommentsClose CommentsPermalink
‘(A) Any allowances not allocated for distribution or auction pursuant to section 781 or subsections (a) through (p) of this section, or disbursed pursuant to section 790.CommentsClose CommentsPermalink
‘(B) Unless otherwise specified, any allowances allocated pursuant to subsections (a) through (o) and not distributed by March 31 of the calendar year following the allowance’s vintage year.CommentsClose CommentsPermalink
‘(2) For auctions conducted pursuant to subsection (p) in calendar years 2021 and thereafter, the Administrator shall place the proceeds from the sales of the these allowances into the Climate Change Consumer Refund Account.CommentsClose CommentsPermalink
‘(3) Funds deposited into the Climate Change Consumer Refund Account shall be used as specified in section 789 and shall be available for expenditure, without further appropriation or fiscal year limitation.CommentsClose CommentsPermalink
‘(s) Treatment of Carryover Allowances-CommentsClose CommentsPermalink
‘(1) IN GENERAL- If there are undistributed allowances from a vintage year for supplemental reductions pursuant to section 781(c), energy-intensive, trade-exposed industries pursuant to subsection (e)(2) of this section, or deployment of carbon capture and sequestration technology pursuant to subsection (f)(2) of this section, the Administrator shall--CommentsClose CommentsPermalink
‘(A) use the undistributed allowances to increase for the same vintage year--CommentsClose CommentsPermalink
‘(i) the allocation of allowances to be auctioned for deficit reduction pursuant to subsection (q) or for consumer refunds pursuant to subsection (r);CommentsClose CommentsPermalink
‘(ii) the allocation of allowances to be auctioned for low income consumers pursuant to subsection (d); orCommentsClose CommentsPermalink
‘(iii) a combination of both; andCommentsClose CommentsPermalink
‘(B) except as provided in paragraph (2)--CommentsClose CommentsPermalink
‘(i) decrease by the same amount for the following vintage year the allocation for the purpose for which the allocation was increased pursuant to subparagraph (A); andCommentsClose CommentsPermalink
‘(ii) increase by the same amount for the following vintage year the allocation for the purpose for which the undistributed allowances were originally allocated.CommentsClose CommentsPermalink
‘(2) EXCESS UNDISTRIBUTED ALLOWANCES- (A) For each vintage year for which this subsection applies, the Administrator shall determine whether--CommentsClose CommentsPermalink
‘(i) the total quantity of undistributed allowances for that vintage year that were allocated pursuant to section 781(c), and subsections (e)(2) and (f)(2) of this section, exceedsCommentsClose CommentsPermalink
‘(ii) the total quantity of allowances allocated pursuant to subsection (d), (q) and (r) for the following vintage year, decreased by the quantity of allowances for that following vintage year set aside for the reserve established by section 791(f).CommentsClose CommentsPermalink
‘(B) If the Administrator determines under subparagraph (A) that the quantity described in subparagraph (A)(i) exceeds the quantity described in subparagraph (A)(ii), paragraph (1)(B)(ii) of this subsection shall not apply. Instead, for each purpose described in section 781(c), or subsections (e)(2) or (f)(2) of this section for which undistributed allowances for a given vintage year were allocated, the Administrator shall increase the allocation for the following vintage year by the amount that is the product of--CommentsClose CommentsPermalink
‘(i) the number of undistributed allowances for that purpose, timesCommentsClose CommentsPermalink
‘(ii) the quantity described in subparagraph (A)(ii) divided by the quantity described in subparagraph (A)(i).CommentsClose CommentsPermalink
‘SEC. 783. ELECTRICITY CONSUMERS.
‘(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
‘(1) COAL-FUELED UNIT- The term ‘coal-fueled unit’ means a utility unit that derives at least 85 percent of its heat input from coal, petroleum coke, or any combination of these 2 fuels.CommentsClose CommentsPermalink
‘(2) ELECTRICITY LOCAL DISTRIBUTION COMPANY- The term ‘electricity local distribution company’ means an electric utility--CommentsClose CommentsPermalink
‘(A) that has a legal, regulatory, or contractual obligation to deliver electricity directly to retail consumers in the United States, regardless of whether that entity or another entity sells the electricity as a commodity to those retail consumers; andCommentsClose CommentsPermalink
‘(B) the retail rates of which, except in the case of an electric cooperative, are regulated or set by--CommentsClose CommentsPermalink
‘(i) a State regulatory authority;CommentsClose CommentsPermalink
‘(ii) a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing); orCommentsClose CommentsPermalink
‘(iii) an Indian tribe pursuant to tribal law.CommentsClose CommentsPermalink
‘(3) ELECTRICITY SAVINGS; RENEWABLE ENERGY RESOURCE- The terms ‘electricity savings’ and ‘renewable energy resource’ shall have the meaning given those terms in section 610 of the Public Utility Regulatory Policies Act of 1978 (as added by section 101 of the American Clean Energy and Security Act of 2009).CommentsClose CommentsPermalink
‘(4) INDEPENDENT POWER PRODUCTION FACILITY- The term ‘independent power production facility’ means a facility--CommentsClose CommentsPermalink
‘(A) that is used for the generation of electric energy, at least 80 percent of which is sold at wholesale; andCommentsClose CommentsPermalink
‘(B) the sales of the output of which are not subject to retail rate regulation or setting of retail rates by--CommentsClose CommentsPermalink
‘(i) a State regulatory authority;CommentsClose CommentsPermalink
‘(ii) a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing);CommentsClose CommentsPermalink
‘(iii) an electric cooperative; orCommentsClose CommentsPermalink
‘(iv) an Indian tribe pursuant to tribal law.CommentsClose CommentsPermalink
‘(5) LONG-TERM CONTRACT GENERATOR- The term ‘long-term contract generator’ means a qualifying small power production facility, a qualifying cogeneration facility ), an independent power production facility, or a facility for the production of electric energy for sale to others that is owned and operated by an electric cooperative that is--CommentsClose CommentsPermalink
‘(A) a covered entity; andCommentsClose CommentsPermalink
‘(B) as of the date of enactment of this title--CommentsClose CommentsPermalink
‘(i) a facility with 1 or more sales or tolling agreements executed before March 1, 2007, that govern the facility’s electricity sales and provide for sales at a price (whether a fixed price or a price formula) for electricity that does not allow for recovery of the costs of compliance with the limitation on greenhouse gas emissions under this title, provided that such agreements are not between entities that are affiliates of one another; orCommentsClose CommentsPermalink
‘(ii) a facility consisting of 1 or more cogeneration units that makes useful thermal energy available to an industrial or commercial process with 1 or more sales agreements executed before March 1, 2007, that govern the facility’s useful thermal energy sales and provide for sales at a price (whether a fixed price or price formula) for useful thermal energy that does not allow for recovery of the costs of compliance with the limitation on greenhouse gas emissions under this title, provided that such agreements are not between entities that are affiliates of one another.CommentsClose CommentsPermalink
‘(6) MERCHANT COAL UNIT- The term ‘merchant coal unit’ means a coal-fueled unit that--CommentsClose CommentsPermalink
‘(A) is or is part of a covered entity;CommentsClose CommentsPermalink
‘(B) is not owned by a Federal, State, or regional agency or power authority; andCommentsClose CommentsPermalink
‘(C) generates electricity solely for sale to others, provided that all or a portion of such sales are made by a separate legal entity that--CommentsClose CommentsPermalink
‘(i) has a full or partial ownership or leasehold interest in the unit, as certified in accordance with such requirements as the Administrator shall prescribe; andCommentsClose CommentsPermalink
‘(ii) is not subject to retail rate regulation or setting of retail rates by--CommentsClose CommentsPermalink
‘(I) a State regulatory authority;CommentsClose CommentsPermalink
‘(II) a State or political subdivision thereof (or an agency or instrumentality of, or corporation wholly owned by, either of the foregoing);CommentsClose CommentsPermalink
‘(III) an electric cooperative; orCommentsClose CommentsPermalink
‘(IV) an Indian tribe pursuant to tribal law.CommentsClose CommentsPermalink
‘(7) MERCHANT COAL UNIT SALES- The term ‘merchant coal unit sales’ means sales to others of electricity generated by a merchant coal unit that are made by the owner or leaseholder described in paragraph (6)(C).CommentsClose CommentsPermalink
‘(8) NEW COAL-FUELED UNIT- The term ‘new coal-fueled unit’ means a coal-fueled unit that commenced operation on or after January 1, 2009 and before September 30, 2012.CommentsClose CommentsPermalink
‘(9) NEW MERCHANT COAL UNIT- The term ‘new merchant coal unit’ means a merchant coal unit--CommentsClose CommentsPermalink
‘(A) that commenced operation on or after January 1, 2009 and before September 30, 2012; andCommentsClose CommentsPermalink
‘(B) the actual, on-site construction of which commenced prior to January 1, 2009.CommentsClose CommentsPermalink
‘(10) QUALIFYING SMALL POWER PRODUCTION FACILITY; QUALIFYING COGENERATION FACILITY- The terms ‘qualifying small power production facility’ and ‘qualifying cogeneration facility’ have the meanings given those terms in section 3(17)(C) and 3(18)(B) of the Federal Power Act (
16 U.S.C. 796(17)(C) and 796(18)(B)).CommentsClose CommentsPermalink‘(11) SMALL LDC- The term ‘small LDC’ means, for any given year, an electricity local distribution company that delivered less than 4,000,000 megawatt hours of electric energy directly to retail consumers in the preceding year.CommentsClose CommentsPermalink
‘(12) STATE REGULATORY AUTHORITY- The term ‘State regulatory authority’ has the meaning given that term in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (
16 U.S.C. 2602(17) ).CommentsClose CommentsPermalink‘(13) USEFUL THERMAL ENERGY- The term ‘useful thermal energy’has the meaning given that term in section 371(7) of the Energy Policy and Conservation Act (
42 U.S.C. 6341(7) ).CommentsClose CommentsPermalink‘(b) Electricity Local Distribution Companies-CommentsClose CommentsPermalink
‘(1) DISTRIBUTION OF ALLOWANCES- Not later than September 30 of 2011 and each calendar year thereafter through 2028, the Administrator shall distribute to electricity local distribution companies for the benefit of retail ratepayers the quantity of emission allowances allocated for the following vintage year pursuant to section 782(a)(1). Notwithstanding the preceding sentence, the Administrator shall withhold from distribution under this subsection a quantity of emission allowances equal to the lesser of 14.3 percent of the quantity of emission allowances allocated under section 782(a)(1) for the relevant vintage year, or 105 percent of the emission allowances for the relevant vintage year that the Administrator anticipates will be distributed to merchant coal units and to long-term contract generators, respectively, under subsections (c) and (d). If not required by subsections (c) and (d) to distribute all of these reserved allowances, the Administrator shall distribute any remaining emission allowances to electricity local distribution companies in accordance with this subsection.CommentsClose CommentsPermalink
‘(2) DISTRIBUTION BASED ON EMISSIONS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- For each vintage year, 50 percent of the emission allowances available for distribution under paragraph (1), after reserving allowances for distribution under subsections (c) and (d), shall be distributed by the Administrator among individual electricity local distribution companies ratably based on the annual average carbon dioxide emissions attributable to generation of electricity delivered at retail by each such company during the base period determined under subparagraph (B).CommentsClose CommentsPermalink
‘(B) BASE PERIOD-CommentsClose CommentsPermalink
‘(i) VINTAGE YEARS 2012 AND 2013- For vintage years 2012 and 2013, an electricity local distribution company’s base period shall be--CommentsClose CommentsPermalink
‘(I) calendar years 2006 through 2008; orCommentsClose CommentsPermalink
‘(II) any 3 consecutive calendar years between 1999 and 2008, inclusive, that such company selects, provided that the company timely informs the Administrator of such selection.CommentsClose CommentsPermalink
‘(ii) VINTAGE YEARS 2014 AND THEREAFTER- For vintage years 2014 and thereafter, the base period shall be--CommentsClose CommentsPermalink
‘(I) the base period selected under clause (i); orCommentsClose CommentsPermalink
‘(II) calendar year 2012, in the case of an electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by a new coal-fueled unit, provided that such company timely informs the Administrator of its election to use 2012 as its base period.CommentsClose CommentsPermalink
‘(C) DETERMINATION OF EMISSIONS-CommentsClose CommentsPermalink
‘(i) DETERMINATION FOR 1999-2008- As part of the regulations promulgated pursuant to subsection (f), the Administrator, after consultation with the Energy Information Administration, shall determine the average amount of carbon dioxide emissions attributable to generation of electricity delivered at retail by each electricity local distribution company for each of the years 1999 through 2008, taking into account entities’ electricity generation, electricity purchases, and electricity sales. In the case of any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by, a coal-fueled unit that commenced operation after January 1, 2006 and before December 31, 2008, the Administrator shall adjust the emissions attributable to such company’s retail deliveries in calendar years 2006 through 2008 to reflect the emissions that would have occurred if the relevant unit were in operation during the entirety of such 3-year period.CommentsClose CommentsPermalink
‘(ii) ADJUSTMENTS FOR NEW COAL-FUELED UNITS-CommentsClose CommentsPermalink
‘(I) VINTAGE YEARS 2012 AND 2013- For purposes of emission allowance distributions for vintage years 2012 and 2013, in the case of any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by, a new coal-fueled unit, the Administrator shall adjust the emissions attributable to such company’s retail deliveries in the applicable base period to reflect the emissions that would have occurred if the new coal-fueled unit were in operation during such period.CommentsClose CommentsPermalink
‘(II) VINTAGE YEAR 2014 AND THEREAFTER- Not later than necessary for use in making emission allowance distributions under this subsection for vintage year 2014, the Administrator shall, for any electricity local distribution company that owns, co-owns, or purchases through a power purchase agreement (whether directly or through a cooperative arrangement) a substantial portion of the electricity generated by a new coal-fueled unit and has selected calendar year 2012 as its base period pursuant to subparagraph (B)(ii)(II), determine the amount of carbon dioxide emissions attributable to generation of electricity delivered at retail by such company in calendar year 2012. If the relevant new coal-fueled unit was not yet operational by January 1, 2012, the Administrator shall adjust such determination to reflect the emissions that would have occurred if such unit were in operation for all of calendar year 2012.CommentsClose CommentsPermalink
‘(iii) REQUIREMENTS- Determinations under this paragraph shall be as precise as practicable, taking into account the nature of data currently available and the nature of markets and regulation in effect in various regions of the country. The following requirements shall apply to such determinations:CommentsClose CommentsPermalink
‘(I) The Administrator shall determine the amount of fossil fuel-based electricity delivered at retail by each electricity local distribution company, and shall use appropriate emission factors to calculate carbon dioxide emissions associated with the generation of such electricity.CommentsClose CommentsPermalink
‘(II) Where it is not practical to determine the precise fuel mix for the electricity delivered at retail by an individual electricity local distribution company, the Administrator may use the best available data, including average data on a regional basis with reference to Regional Transmission Organizations or regional entities (as that term is defined in section 215(a)(7) of the Federal Power Act (
16 U.S.C. 824o(a)(7) ), to estimate fuel mix and emissions. Different methodologies may be applied in different regions if appropriate to obtain the most accurate estimate.CommentsClose CommentsPermalink‘(3) DISTRIBUTION BASED ON DELIVERIES-CommentsClose CommentsPermalink
‘(A) INITIAL FORMULA- Except as provided in subparagraph (B), for each vintage year, the Administrator shall distribute 50 percent of the emission allowances available for distribution under paragraph (1), after reserving allowances for distribution under subsections (c) and (d), among individual electricity local distribution companies ratably based on each electricity local distribution company’s annual average retail electricity deliveries for calendar years 2006 through 2008, unless the owner or operator of the company selects 3 other consecutive years between 1999 and 2008, inclusive, and timely notifies the Administrator of its selection.CommentsClose CommentsPermalink
‘(B) UPDATING- Prior to distributing 2015 vintage year emission allowances under this paragraph and at 3-year intervals thereafter, the Administrator shall update the distribution formula under this paragraph to reflect changes in each electricity local distribution company’s service territory since the most recent formula was established. For each successive 3-year period, the Administrator shall distribute allowances ratably among individual electricity local distribution companies based on the product of--CommentsClose CommentsPermalink
‘(i) each electricity local distribution company’s average annual deliveries per customer during calendar years 2006 through 2008, or during the 3 alternative consecutive years selected by such company under subparagraph (A); andCommentsClose CommentsPermalink
‘(ii) the number of customers of such electricity local distribution company in the most recent year in which the formula is updated under this subparagraph.CommentsClose CommentsPermalink
‘(4) PROHIBITION AGAINST EXCESS DISTRIBUTIONS- The regulations promulgated under subsection (f) shall ensure that, notwithstanding paragraphs (2) and (3), no electricity local distribution company shall receive a greater quantity of allowances under this subsection than is necessary to offset any increased electricity costs to such company’s retail ratepayers, including increased costs attributable to purchased power costs, due to enactment of this title. Any emission allowances withheld from distribution to an electricity local distribution company pursuant to this paragraph shall be distributed among all remaining electricity local distribution companies ratably based on emissions pursuant to paragraph (2).CommentsClose CommentsPermalink
‘(5) USE OF ALLOWANCES-CommentsClose CommentsPermalink
‘(A) RATEPAYER BENEFIT- Emission allowances distributed to an electricity local distribution company under this subsection shall be used exclusively for the benefit of retail ratepayers of such electricity local distribution company and may not be used to support electricity sales or deliveries to entities or persons other than such ratepayers.CommentsClose CommentsPermalink
‘(B) RATEPAYER CLASSES- In using emission allowances distributed under this subsection for the benefit of ratepayers, an electricity local distribution company shall ensure that ratepayer benefits are distributed--CommentsClose CommentsPermalink
‘(i) among ratepayer classes ratably based on electricity deliveries to each class; andCommentsClose CommentsPermalink
‘(ii) equitably among individual ratepayers within each ratepayer class, including entities that receive emission allowances pursuant to part F.CommentsClose CommentsPermalink
‘(C) LIMITATION- In general, an electricity local distribution company shall not use the value of emission allowances distributed under this subsection to provide to any ratepayer a rebate that is based solely on the quantity of electricity delivered to such ratepayer. To the extent an electricity local distribution company uses the value of emission allowances distributed under this subsection to provide rebates, it shall, to the maximum extent practicable, provide such rebates with regard to the fixed portion of ratepayers’ bills or as a fixed credit or rebate on electricity bills.CommentsClose CommentsPermalink
‘(D) INDUSTRIAL RATEPAYERS- Notwithstanding subparagraph (C), if compliance with the requirements of this title results (or would otherwise result) in an increase in electricity costs for industrial retail ratepayers of any given electricity local distribution company (including entities that receive emission allowances pursuant to part F), such electricity local distribution company--CommentsClose CommentsPermalink
‘(i) shall pass through to industrial retail ratepayers their ratable share (based on deliveries to each ratepayer class) of the value of the emission allowances distributed to such company under this subsection, to reduce electricity cost impacts on such ratepayers; andCommentsClose CommentsPermalink
‘(ii) may do so based on the quantity of electricity delivered to individual industrial retail ratepayers.CommentsClose CommentsPermalink
‘(E) GUIDELINES- As part of the regulations promulgated under subsection (f), the Administrator shall, after consultation with State regulatory authorities, prescribe guidelines for the implementation of the requirements of this paragraph. Such guidelines shall include requirements to ensure that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of the allowances distributed to each electricity local distribution company pursuant to this subsection.CommentsClose CommentsPermalink
‘(6) REGULATORY PROCEEDINGS-CommentsClose CommentsPermalink
‘(A) REQUIREMENT- No electricity local distribution company shall be eligible to receive emission allowances under this subsection or subsection (e) unless the State regulatory authority with authority over such company’s retail rates, or the entity with authority to regulate or set retail electricity rates of an electricity local distribution company not regulated by a State regulatory authority, has--CommentsClose CommentsPermalink
‘(i) after public notice and an opportunity for comment, promulgated a regulation or completed a rate proceeding (or the equivalent, in the case of a ratemaking entity other than a State regulatory authority) that provides for the full implementation of the requirements of paragraph (5) of this subsection and the requirements of subsection (e); andCommentsClose CommentsPermalink
‘(ii) made available to the Administrator and the public a report describing, in adequate detail, the manner in which the requirements of paragraph (5) and the requirements of subsection (e) will be implemented.CommentsClose CommentsPermalink
‘(B) UPDATING- The Administrator shall require, as a condition of continued receipt of emission allowances under this subsection by an electricity local distribution company, that a new regulation be promulgated or rate proceeding be completed , after public notice and an opportunity for comment, and a new report be made available to the Administrator and the public, pursuant to subparagraph (A), not less frequently than every 5 years.CommentsClose CommentsPermalink
‘(7) PLANS AND REPORTING-CommentsClose CommentsPermalink
‘(A) REGULATIONS- As part of the regulations promulgated under subsection (f), the Administrator shall prescribe requirements governing plans and reports to be submitted in accordance with this paragraph.CommentsClose CommentsPermalink
‘(B) PLANS- Not later than April 30 of 2011 and every 5 years thereafter through 2026, each electricity local distribution company shall submit to the Administrator a plan, approved by the State regulatory authority or other entity charged with regulating tor setting the retail rates of such company, describing such company’s plans for the disposition of the value of emission allowances to be received pursuant to this subsection and subsection (e), in accordance with the requirements of this subsection and subsection (e). Such plan shall include a description of the manner in which the company will provide to industrial retail ratepayers (including entities that receive emission allowances under part F) their ratable share of the value of such allowances.CommentsClose CommentsPermalink
‘(C) REPORTS- Not later than June 30 of 2013 and each calendar year thereafter through 2031, each electricity local distribution company shall submit a report to the Administrator, and to the relevant State regulatory authority or other entity charged with regulating or setting the retail electricity rates of such company, describing the disposition of the value of any emission allowances received by such company in the prior calendar year pursuant to this subsection and subsection (e), including--CommentsClose CommentsPermalink
‘(i) a description of sales, transfer, exchange, or use by the company for compliance with obligations under this title, of any such emission allowances;CommentsClose CommentsPermalink
‘(ii) the monetary value received by the company, whether in money or in some other form, from the sale, transfer, or exchange of any such emission allowances;CommentsClose CommentsPermalink
‘(iii) the manner in which the company’s disposition of any such emission allowances complies with the requirements of this subsection and of subsection (e), including each of the requirements of paragraph (5) of this subsection, including the requirement that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of such allowances; andCommentsClose CommentsPermalink
‘(iv) such other information as the Administrator may require pursuant to subparagraph (A).CommentsClose CommentsPermalink
‘(D) PUBLICATION- The Administrator shall make available to the public all plans and reports submitted under this subsection, including by publishing such plans and reports on the Internet.CommentsClose CommentsPermalink
‘(8) AUDITS- Each year, the Administrator shall audit a representative sample of electricity local distribution companies to ensure that emission allowances distributed under this subsection have been used exclusively for the benefit of retail ratepayers and that such companies are complying with the requirements of this subsection and of subsection (e), including the requirement that industrial retail ratepayers (including entities that receive emission allowances under part F) receive their ratable share of the value of such allowances. In selecting companies for audit, the Administrator shall take into account any credible evidence of noncompliance with such requirements. The Administrator shall make available to the public a report describing the results of each such audit, including by publishing such report on the Internet.CommentsClose CommentsPermalink
‘(9) ENFORCEMENT- A violation of any requirement of this subsection or of subsection (e) shall be a violation of this Act. Each emission allowance the value of which is used in violation of the requirements of this subsection or of subsection (e) shall be a separate violation.CommentsClose CommentsPermalink
‘(c) Merchant Coal Units-CommentsClose CommentsPermalink
‘(1) QUALIFYING EMISSIONS- The qualifying emissions for a merchant coal unit for a given calendar year shall be the product of the number of megawatt hours of merchant coal unit sales generated by such unit in such calendar year and the average carbon dioxide emissions per megawatt hour generated by such unit during the base period under paragraph (2), provided that the number of megawatt hours in a given calendar year for purposes of such calculation shall be reduced in proportion to the portion of such unit’s carbon dioxide emissions that are either--CommentsClose CommentsPermalink
‘(A) captured and sequestered in such calendar year; orCommentsClose CommentsPermalink
‘(B) attributable to the combustion or gasification of biomass, to the extent that the owner or operator of the unit is not required to hold emission allowances for such emissions.CommentsClose CommentsPermalink
‘(2) BASE PERIOD- For purposes of this subsection, the base period for a merchant coal unit shall be--CommentsClose CommentsPermalink
‘(A) calendar years 2006 through 2008; orCommentsClose CommentsPermalink
‘(B) in the case of a new merchant coal unit--CommentsClose CommentsPermalink
‘(i) the first full calendar year of operation of such unit, provided that such year shall not be any year after calendar year 2012; orCommentsClose CommentsPermalink
‘(ii) calendar year 2012, if such unit commences operation on or after January 1, 2012.CommentsClose CommentsPermalink
‘(3) PHASE-DOWN SCHEDULE- The Administrator shall identify an annual phase-down factor, applicable to distributions to merchant coal units for each of vintage years 2012 through 2029, that corresponds to the overall decline in the amount of emission allowances allocated to the electricity sector in such years pursuant to section 782(a)(1). Such factor shall--CommentsClose CommentsPermalink
‘(A) for vintage year 2012, be equal to 1.0;CommentsClose CommentsPermalink
‘(B) for each of vintage years 2013 through 2029, correspond to the quotient of--CommentsClose CommentsPermalink
‘(i) the quantity of emission allowances allocated under section 782(a)(1) for such vintage year; divided byCommentsClose CommentsPermalink
‘(ii) the quantity of emission allowances allocated under section 782(a)(1) for vintage year 2012.CommentsClose CommentsPermalink
‘(4) DISTRIBUTION OF EMISSION ALLOWANCES- Not later than March 1 of 2013 and each calendar year through 2030, the Administrator shall distribute emission allowances of the preceding vintage year to the owner or operator of each merchant coal unit described in subsection (a)(6)(C) in an amount equal to the product of--CommentsClose CommentsPermalink
‘(A) 0.5;CommentsClose CommentsPermalink
‘(B) the qualifying emissions for such merchant coal unit for the preceding year, as determined under paragraph (1); andCommentsClose CommentsPermalink
‘(C) the phase-down factor for the preceding calendar year, as identified under paragraph (3).CommentsClose CommentsPermalink
‘(5) ADJUSTMENT-CommentsClose CommentsPermalink
‘(A) STUDY- Not later than July 1, 2014, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall complete a study to determine whether the allocation formula under paragraph (3) is resulting in, or is likely to result in, windfall profits to merchant coal generators or substantially disparate treatment of merchant coal generators operating in different markets or regions.CommentsClose CommentsPermalink
‘(B) REGULATION- If the Administrator, in consultation with the Federal Energy Regulatory Commission, makes an affirmative finding of windfall profits or disparate treatment under subparagraph (A), the Administrator shall, not later than 18 months after the completion of the study described in subparagraph (A), promulgate regulations providing for the adjustment of the allocation formula under paragraph (3) to mitigate, to the extent practicable, such windfall profits, if any, and such disparate treatment, if any.CommentsClose CommentsPermalink
‘(6) LIMITATION ON ALLOWANCES- Notwithstanding paragraph (4) or (5), for each vintage year the Administrator shall distribute under this subsection no more than 10 percent of the total quantity of emission allowances available for such vintage year for distribution to the electricity sector under section 782(a)(1). If the quantity of emission allowances that would otherwise be distributed pursuant to paragraph (4) or (5) for any vintage year would exceed such limit, the Administrator shall distribute 10 percent of the total emission allowances available for distribution under section 782(a)(1) for such vintage year ratably among merchant coal generators based on the applicable formula under paragraph (4) or (5).CommentsClose CommentsPermalink
‘(7) ELIGIBILITY- The owner or operator of a merchant coal unit shall not be eligible to receive emission allowances under this subsection for any vintage year for which such owner or operator has elected to receive emission allowances for the same unit under subsection (d).CommentsClose CommentsPermalink
‘(d) Long-term Contract Generators-CommentsClose CommentsPermalink
‘(1) DISTRIBUTION- Not later than March 1 of 2013 and each calendar year through 2030, the Administrator shall distribute to the owner or operator of each long-term contract generator a quantity of emission allowances of the preceding vintage year that is equal to the sum of--CommentsClose CommentsPermalink
‘(A) the number of tons of carbon dioxide emitted as a result of a qualifying electricity sales agreement referred to in subsection (a)(5)(B)(i); andCommentsClose CommentsPermalink
‘(B) the incremental number of tons of carbon dioxide emitted solely as a result of a qualifying thermal sales agreement referred to in subsection (a)(5)(B)(ii), provided that in no event shall the Administrator distribute more than 1 emission allowance for the same ton of emissions.CommentsClose CommentsPermalink
‘(2) LIMITATION ON ALLOWANCES- Notwithstanding paragraph (1), for each vintage year the Administrator shall distribute under this subsection no more than 4.3 percent of the total quantity of emission allowances available for such vintage year for distribution to the electricity sector under section 782(a)(1). If the quantity of emission allowances that would otherwise be distributed pursuant to paragraph (1) for any vintage year would exceed such limit, the Administrator shall distribute 4.3 percent of the total emission allowances available for distribution under section 782(a)(1) for such vintage year ratably among long-term contract generators based on paragraph (1).CommentsClose CommentsPermalink
‘(3) ELIGIBILITY-CommentsClose CommentsPermalink
‘(A) FACILITY ELIGIBILITY- The owner or operator of a facility shall cease to be eligible to receive emission allowances under this subsection upon the earliest date on which the facility no longer meets each and every element of the definition of a long-term contract generator under subsection (a)(5).CommentsClose CommentsPermalink
‘(B) CONTRACT ELIGIBILITY- The owner or operator of a facility shall cease to be eligible to receive emission allowances under this subsection based on an electricity or thermal sales agreement referred to in subsection (a)(5)(B) upon the earliest date that such agreement--CommentsClose CommentsPermalink
‘(i) expires;CommentsClose CommentsPermalink
‘(ii) is terminated; orCommentsClose CommentsPermalink
‘(iii) is amended in any way that changes the location of the facility, the price (whether a fixed price or price formula) for electricity or thermal energy sold under such agreement, the quantity of electricity or thermal energy sold under the agreement, or the expiration or termination date of the agreement.CommentsClose CommentsPermalink
‘(4) DEMONSTRATION OF ELIGIBILITY- To be eligible to receive allowance distributions under this subsection, the owner or operator of a long-term contract generator shall submit each of the following in writing to the Administrator within 180 days after the date of enactment of this title, and not later than September 30 of each vintage year for which such generator wishes to receive emission allowances:CommentsClose CommentsPermalink
‘(A) A certificate of representation described in section 700(15).CommentsClose CommentsPermalink
‘(B) An identification of each owner and each operator of the facility.CommentsClose CommentsPermalink
‘(C) An identification of the units at the facility and the location of the facility.CommentsClose CommentsPermalink
‘(D) A written certification by the designated representative that the facility meets all the requirements of the definition of a long-term contract generator.CommentsClose CommentsPermalink
‘(E) The expiration date of each qualifying electricity or thermal sales agreement referred to in subsection (a)(5)(B).CommentsClose CommentsPermalink
‘(F) A copy of each qualifying electricity or thermal sales agreement referred to in subsection (a)(5)(B).CommentsClose CommentsPermalink
‘(5) NOTIFICATION- Not later than 30 days after, in accordance with paragraph (3), a facility or an agreement ceases to meet the eligibility requirements for distribution of emission allowances pursuant to this subsection, the designated representative of such facility shall notify the Administrator in writing when, and on what basis, such facility or agreement ceased to meet such requirements.CommentsClose CommentsPermalink
‘(e) Small LDCs-CommentsClose CommentsPermalink
‘(1) DISTRIBUTION- Not later than September 30 of each calendar year from 2011 through 2028, the Administrator shall, in accordance with this subsection, distribute emission allowances allocated pursuant to section 782(a)(2) for the following vintage year. Such allowances shall be distributed ratably among small LDCs based on historic emissions in accordance with the same measure of such emissions applied to each such small LDC for the relevant vintage year under subsection (b)(2) of this section.CommentsClose CommentsPermalink
‘(2) USES- A small LDC receiving allowances under this section shall use such allowances exclusively for the following purposes:CommentsClose CommentsPermalink
‘(A) Cost-effective programs to achieve electricity savings, provided that such savings shall not be transferred or used for compliance with section 610 of the Public Utility Regulatory Policies Act of 1978.CommentsClose CommentsPermalink
‘(B) Deployment of technologies to generate electricity from renewable energy resources, provided that any Federal renewable electricity credits issued based on generation supported under this section shall be submitted to the Federal Energy Regulatory Commission for voluntary retirement and shall not be used for compliance with section 610 of the Public Utility Regulatory Policies Act of 1978.CommentsClose CommentsPermalink
‘(C) Assistance programs to reduce electricity costs for low-income residential ratepayers of such small LDC, provided that such assistance is made available equitably to all residential ratepayers below a certain income level, which shall not be higher than 200 percent of the poverty line (as that term is defined in section 673(2) of the Community Services Block Grant Act (
42 U.S.C. 9902(2) ).CommentsClose CommentsPermalink‘(3) REQUIREMENTS- As part of the regulations promulgated under subsection (f), the Administrator shall prescribe--CommentsClose CommentsPermalink
‘(A) after consultation with the Federal Energy Regulatory Commission, requirements to ensure that programs and projects under paragraph (2)(A) and (B) are consistent with the standards established by, and effectively supplement electricity savings and generation of electricity from renewable energy resources achieved by, the Combined Efficiency and Renewable Electricity Standard established under section 610 of the Public Utility Regulatory Policies Act of 1978;CommentsClose CommentsPermalink
‘(B) eligibility criteria and guidelines for consumer assistance programs for low-income residential ratepayers under paragraph (2)(C); andCommentsClose CommentsPermalink
‘(C) such other requirements as the Administrator determines appropriate to ensure compliance with the requirements of this subsection.CommentsClose CommentsPermalink
‘(4) REPORTING- Reports submitted under subsection (b)(7) shall include, in accordance with such requirements as the Administrator may prescribe--CommentsClose CommentsPermalink
‘(A) a description of any facilities deployed under paragraph (2)(A), the quantity of resulting electricity generation from renewable energy resources;CommentsClose CommentsPermalink
‘(B) an assessment demonstrating the cost-effectiveness of, and electricity savings achieved by, programs supported under paragraph (2)(B); andCommentsClose CommentsPermalink
‘(C) a description of assistance provided to low-income retail ratepayers under paragraph (2)(C).CommentsClose CommentsPermalink
‘(f) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall promulgate regulations to implement the requirements of this section.CommentsClose CommentsPermalink
‘SEC. 784. NATURAL GAS CONSUMERS.
‘(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
‘(1) COST-EFFECTIVE- The term ‘cost-effective’, with respect to an energy efficiency program, means that the program meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program, including program costs and incremental costs borne by the energy consumer.CommentsClose CommentsPermalink
‘(2) NATURAL GAS LOCAL DISTRIBUTION COMPANY- The term ‘natural gas local distribution company’ means a natural gas local distribution company that is a covered entity.CommentsClose CommentsPermalink
‘(3) NON-COVERED ENTITY- The term ‘non-covered entity’ means, when used in reference to a date or period prior to the enactment of this title, an entity that would not have been a covered entity if this title had been in effect during such date or period.CommentsClose CommentsPermalink
‘(4) STATE REGULATORY AUTHORITY- The term ‘State regulatory authority’ has the meaning given the term ‘State commission’ in section 2(8) of the Natural Gas Act (
15 U.S.C. 717a(8) ).CommentsClose CommentsPermalink‘(b) Distribution- Not later than June 30 of 2015 and each calendar year thereafter through 2028, the Administrator shall distribute to natural gas local distribution companies for the benefit of retail ratepayers the quantity of emission allowances allocated for the following vintage year pursuant to section 782(b). Such allowances shall be distributed among local natural gas distribution companies based on the following formula:CommentsClose CommentsPermalink
‘(1) INITIAL FORMULA- Except as provided in paragraph (2), for each vintage year, the Administrator shall distribute emission allowances among natural gas local distribution companies ratably based on each such company’s annual average retail natural gas deliveries for 2006 through 2008 to customers that were non-covered entities, unless the owner or operator of the company selects 3 other consecutive years between 1999 and 2008, inclusive, and timely notifies the Administrator of its selection.CommentsClose CommentsPermalink
‘(2) UPDATING- Prior to distributing 2019 vintage year emission allowances and at 3-year intervals thereafter, the Administrator shall update the distribution formula under this subsection to reflect changes in each natural gas local distribution company’s service territory since the most recent formula was established. For each successive 3-year period, the Administrator shall distribute allowances ratably among natural gas local distribution companies based on the product of--CommentsClose CommentsPermalink
‘(A) each natural gas local distribution company’s average annual natural gas deliveries per customer to customers that were non-covered entities during calendar years 2006 through 2008, or during the 3 alternative consecutive years selected by such company under paragraph (1); andCommentsClose CommentsPermalink
‘(B) the number of customers of such natural gas local distribution company that are not covered entities in the most recent year in which the formula is updated under this paragraph.CommentsClose CommentsPermalink
‘(c) Use of Allowances-CommentsClose CommentsPermalink
‘(1) RATEPAYER BENEFIT- Emission allowances distributed to a natural gas local distribution company under this section shall be used exclusively for the benefit of retail ratepayers of such natural gas local distribution company other than covered entities and may not be used to support natural gas sales or deliveries to entities or persons other than such ratepayers.CommentsClose CommentsPermalink
‘(2) RATEPAYER CLASSES- In using emission allowances distributed under this section for the benefit of ratepayers, a natural gas local distribution company shall ensure that ratepayer benefits are distributed--CommentsClose CommentsPermalink
‘(A) among ratepayer classes ratably based on natural gas deliveries to each class, excluding deliveries to covered entities; andCommentsClose CommentsPermalink
‘(B) equitably among individual ratepayers other than covered entities within each ratepayer class.CommentsClose CommentsPermalink
‘(3) LIMITATION- In general, a natural gas local distribution company shall not use the value of emission allowances distributed under this section to provide to any ratepayer a rebate that is based solely on the quantity of natural gas delivered to such ratepayer. To the extent a natural gas local distribution company uses the value of emission allowances distributed under this section to provide rebates, it shall, to the maximum extent practicable, provide such rebates with regard to the fixed portion of ratepayers’ bills or as a fixed creditor rebate on natural gas bills.CommentsClose CommentsPermalink
‘(4) INDUSTRIAL RATEPAYERS- Notwithstanding paragraph (3), if compliance with the requirements of this title results (or would otherwise result) in an increase in natural gas costs for industrial retail ratepayers of any given natural gas local distribution company that are not covered entities (including entities that receive emission allowances pursuant to part F), such natural gas local distribution company--CommentsClose CommentsPermalink
‘(A) shall pass through to industrial retail ratepayers that are not covered entities their ratable share (based on deliveries to each ratepayer class) of the value of the emission allowances distributed to such company under this subsection, to reduce natural gas cost impacts on such ratepayers; andCommentsClose CommentsPermalink
‘(B) may do so based on the quantity of natural gas delivered to individual industrial retail ratepayers.CommentsClose CommentsPermalink
‘(5) ENERGY EFFICIENCY PROGRAMS- The value of no less than one third of the emission allowances distributed to natural gas local distribution companies pursuant to this section in any calendar year shall be used for cost-effective energy efficiency programs for natural gas consumers. Such programs must be authorized and overseen by the State regulatory authority, or by the entity with authority to regulate or set retail natural gas rates in the case of a natural gas local distribution company that is not regulated by a State regulatory authority.CommentsClose CommentsPermalink
‘(6) CERTAIN INTRACOMPANY DELIVERIES- If a natural gas local distribution company makes an intracompany delivery of natural gas to a customer that is not a covered entity, for which such company is required to hold emission allowances under section 722, such customer shall, for purposes of this section, be considered a retail ratepayer and a member of a ratepayer class to be determined by the relevant State regulatory authority, or other entity with authority to regulate or set natural gas rates in the case of a company not regulated by a State regulatory authority.CommentsClose CommentsPermalink
‘(7) GUIDELINES- As part of the regulations promulgated under subsection (h), the Administrator shall, after consultation with State regulatory authorities, prescribe guidelines for the implementation of the requirements of this subsection. Such guidelines shall include requirements to ensure that industrial retail ratepayers that are not covered entities (including entities that receive emission allowances under part F) receive their ratable share of the value of the allowances distributed to each natural gas local distribution company pursuant to this section.CommentsClose CommentsPermalink
‘(d) Regulatory Proceedings-CommentsClose CommentsPermalink
‘(1) REQUIREMENT- No natural gas local distribution company shall be eligible to receive emission allowances under this section unless the State regulatory authority with authority over the retail rates of such company, or the entity with authority to regulate or set retail rates of a natural gas local distribution company not regulated by a State regulatory authority, has--CommentsClose CommentsPermalink
‘(A) after public notice and an opportunity for comment, promulgated a regulation or completed a public rate proceeding (or the equivalent, in the case of a ratemaking entity other than a State regulatory authority) that provides for the full implementation of the requirements of subsection (c); andCommentsClose CommentsPermalink
‘(B) made available to the Administrator and the public a report describing, in adequate detail, the manner in which the requirements of subsection (c) will be implemented.CommentsClose CommentsPermalink
‘(2) UPDATING- The Administrator shall require, as a condition of continued receipt of emission allowances under this section, that a new regulation be promulgated or rate proceeding be completed, after public notice and an opportunity for comment, and a new report be made available to the Administrator and the public, pursuant to paragraph (1), not less frequently than every 5 years.CommentsClose CommentsPermalink
‘(e) Plans and Reporting-CommentsClose CommentsPermalink
‘(1) REGULATIONS- As part of the regulations promulgated under subsection (h), the Administrator shall prescribe requirements governing plans and reports to be submitted in accordance with this subsection.CommentsClose CommentsPermalink
‘(2) PLANS- Not later than April 30 of 2015 and every 5 years thereafter through 2025, each natural gas local distribution company shall submit to the Administrator a plan, approved by the State regulatory authority or other entity charged with regulating or setting the retail rates of such company, describing such company’s plans for the disposition of the value of emission allowances to be received pursuant to this section, in accordance with the requirements of this section.CommentsClose CommentsPermalink
‘(3) REPORTS- Not later than June 30 of 2017 and each calendar year thereafter through 2031, each natural gas local distribution company shall submit a report to the Administrator, approved by the relevant State regulatory authority or other entity charged with regulating or setting the retail natural gas rates of such company, describing the disposition of the value of any emission allowances received by such company in the prior calendar year pursuant to this section, including--CommentsClose CommentsPermalink
‘(A) a description of sales, transfer, exchange, or use by the company for compliance with obligations under this title, of any such emission allowances;CommentsClose CommentsPermalink
‘(B) the monetary value received by the company, whether in money or in some other form, from the sale, transfer, or exchange of emission allowances received by the company under this section;CommentsClose CommentsPermalink
‘(C) the manner in which the company’s disposition of emission allowances received under this section complies with the requirements of this section, including each of the requirements of subsection (c);CommentsClose CommentsPermalink
‘(D) the cost-effectiveness of, and energy savings achieved by, energy efficiency programs supported through such emission allowances; andCommentsClose CommentsPermalink
‘(E) such other information as the Administrator may require pursuant to paragraph (1).CommentsClose CommentsPermalink
‘(4) PUBLICATION- The Administrator shall make available to the public all plans and reports submitted by natural gas local distribution companies under this subsection, including by publishing such plans and reports on the Internet.CommentsClose CommentsPermalink
‘(f) Audits- Each year, the Administrator shall audit a representative sample of natural gas local distribution companies to ensure that emission allowances distributed under this section have been used exclusively for the benefit of retail ratepayers and that such companies are complying with the requirements of this section. In selecting companies for audit, the Administrator shall take into account any credible evidence of noncompliance with such requirements. The Administrator shall make available to the public a report describing the results of each such audit, including by publishing such report on the Internet.CommentsClose CommentsPermalink
‘(g) Enforcement- A violation of any requirement of this section shall be a violation of this Act. Each emission allowance the value of which is used in violation of the requirements of this section shall be a separate violation.CommentsClose CommentsPermalink
‘(h) Regulations- Not later than January 1, 2014, the Administrator, in consultation with the Federal Energy Regulatory Commission, shall promulgate regulations to implement the requirements of this section.CommentsClose CommentsPermalink
‘SEC. 785. HOME HEATING OIL, PROPANE, AND KEROSENE CONSUMERS.
‘(a) Definitions- For purposes of this section:CommentsClose CommentsPermalink
‘(1) CARBON CONTENT- The term ‘carbon content’ means the amount of carbon dioxide that would be emitted as a result of the combustion of a fuel.CommentsClose CommentsPermalink
‘(2) COST-EFFECTIVE- The term ‘cost-effective’ has the meaning given that term in section 784(a)(1).CommentsClose CommentsPermalink
‘(3) OILHEAT FUEL- The term ‘oilheat fuel’ means fuel that--CommentsClose CommentsPermalink
‘(A) is--CommentsClose CommentsPermalink
‘(i) No. 1 distillate;CommentsClose CommentsPermalink
‘(ii) No. 2 dyed distillate;CommentsClose CommentsPermalink
‘(iii) a liquid blended with No. 1 distillate or No. 2 dyed distillate; orCommentsClose CommentsPermalink
‘(iv) a biobased liquid; andCommentsClose CommentsPermalink
‘(B) is used as a fuel for nonindustrial commercial or residential space or hot water heating.CommentsClose CommentsPermalink
‘(b) Distribution Among States- Not later than September 30 of each of calendar years 2011 through 2028, the Administrator shall distribute among the States, in accordance with this section, the quantity of emission allowances allocated for the following vintage year pursuant to section 782(c). The Administrator shall distribute emission allowances among the States under this section each year ratably based on the ratio of--CommentsClose CommentsPermalink
‘(1) the carbon content of oilheat fuel, propane, and kerosene sold to consumers within each State in the preceding year for residential or commercial uses; toCommentsClose CommentsPermalink
‘(2) the carbon content of oilheat fuel, propane, and kerosene sold to consumers within the United States in the preceding year for residential or commercial uses.CommentsClose CommentsPermalink
‘(c) Use of Allowances-CommentsClose CommentsPermalink
‘(1) IN GENERAL- States shall use emission allowances distributed under this section exclusively for the benefit of consumers of oilheat fuel, propane, or kerosene for residential or commercial purposes. Such proceeds shall be used exclusively for--CommentsClose CommentsPermalink
‘(A) cost-effective energy efficiency programs for consumers that use oilheat fuel, propane, or kerosene for residential or commercial purposes; orCommentsClose CommentsPermalink
‘(B) rebates or other direct financial assistance programs for consumers of oilheat fuel, propane, or kerosene used for residential or commercial purposes.CommentsClose CommentsPermalink
‘(2) ADMINISTRATION AND DELIVERY MECHANISMS- In administering programs supported by this section, States shallCommentsClose CommentsPermalink
‘(A) use no less than 50 percent of the value of emission allowances received under this section for cost-effective energy efficiency programs to reduce consumers’ overall fuel costs;CommentsClose CommentsPermalink
‘(B) to the extent practicable, deliver consumer support under this section through existing energy efficiency and consumer energy assistance programs or delivery mechanisms, including, where appropriate, programs or mechanisms administered by parties other than the State; andCommentsClose CommentsPermalink
‘(C) seek to coordinate the administration and delivery of energy efficiency and consumer energy assistance programs supported under this section, with one another and with existing programs for various fuel types, so as to deliver comprehensive, fuel-blind, coordinated programs to consumers.CommentsClose CommentsPermalink
‘(d) Reporting- Each State receiving emission allowances under this section shall submit to the Administrator, within 12 months of each receipt of such allowances, a report, in accordance with such requirements as the Administrator may prescribe, that--CommentsClose CommentsPermalink
‘(1) describes the State’s use of emission allowances distributed under this section, including a description of the energy efficiency and consumer assistance programs supported with such allowances;CommentsClose CommentsPermalink
‘(2) demonstrates the cost-effectiveness of, and the energy savings and greenhouse gas emissions reductions achieved by, energy efficiency programs supported under this section; andCommentsClose CommentsPermalink
‘(3) includes a report prepared by an independent third party, in accordance with such regulations as the Administrator may promulgate, evaluating the performance of the energy efficiency and consumer assistance programs supported under this section.CommentsClose CommentsPermalink
‘(e) Enforcement- If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold a portion of the emission allowances, the quantity of which is equal to up to twice the quantity of the allowances that the State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States ratably in accordance with the formula in subsection (b).CommentsClose CommentsPermalink
‘SEC. 787. ALLOCATIONS TO REFINERIES.
‘(a) Purpose- The purpose of this section is to provide emission allowance rebates to petroleum refineries in the United States in a manner that promotes energy efficiency and a reduction in greenhouse gas emissions at such facilities.CommentsClose CommentsPermalink
‘(b) Definitions- In this section:CommentsClose CommentsPermalink
‘(1) EMISSIONS- The term ‘emissions’ includes direct emissions from fuel combustion, process emissions, and indirect emissions from the generation of electricity, steam, and hydrogen used to produce the output of a petroleum refinery or the petroleum refinery sector.CommentsClose CommentsPermalink
‘(2) PETROLEUM REFINERY- The term ‘petroleum refinery’ means a facility classified under code 324110 of the North American Industrial Classification System of 2002.CommentsClose CommentsPermalink
‘(3) SMALL BUSINESS REFINER- The term ‘small business refiner’ means a refiner that meets the applicable Federal refinery capacity and employee limitations criteria described in section 45H(c)(1) of the Internal Revenue Code of 1986 (as in effect on the date of enactment of this section and without regard to section 45H(d)). Eligibility of a small business refiner under this paragraph shall not be recalculated or disallowed on account of (i) its merger with another small business refiner or refiners after December 31, 2002 or (ii) its acquisition of another small business refiner (or refinery of such refiner) after December 31, 2002.CommentsClose CommentsPermalink
‘(c) In General- For each vintage year between 2014 and 2026, the Administrator shall distribute allowances pursuant to this section to owners and operators of petroleum refineries, including small business refiners, in the United States.CommentsClose CommentsPermalink
‘(d) Distribution Schedule- The Administrator shall distribute emission allowances pursuant to the regulations issued under subsection (e) for each vintage year no later than October 31 of the preceding calendar year.CommentsClose CommentsPermalink
‘(e) Regulations- Not later than 3 years after the date of enactment of this title, the Administrator, in consultation with the Administrator of the Energy Information Administration, shall promulgate regulations that establish a formula for distributing emission allowances consistent with the purpose of this section. In establishing such formula, the Administrator shall consider the relative complexity of refinery processes and appropriate mechanisms to take energy efficiency and greenhouse gas reductions into account. If a petroleum refinery’s electricity provider received a free allocation of emission allowances pursuant to section 782(a), the Administrator shall take this free allocation into account when establishing such formula to avoid rebates to a petroleum refinery for costs that the Administrator determines were not incurred by the petroleum refinery because the allowances were freely allocated to the petroleum refinery’s electricity provider and used for the benefit of the petroleum refinery. This formula shall apply separately to the distribution of allowances allocated pursuant to section 782(j)(1) and to those allocated under section 782(j)(2).CommentsClose CommentsPermalink
‘SEC. 788. [Struck out->]
[ SECTION RESERVED ][<-Struck out] .
‘SEC. 789. CLIMATE CHANGE CONSUMER REFUNDS.
‘(a) Refund- In each year after deposits are made to the Climate Change Consumer Refund Account, the Secretary of the Treasury shall provide tax refunds on a per capita basis to each household in the United States that shall collectively equal the amount deposited into the Climate Change Consumer Refund Account.CommentsClose CommentsPermalink
‘(b) Limitations- The Secretary of the Treasury shall establish procedures to ensure that individuals who are not--CommentsClose CommentsPermalink
‘(1) citizens or nationals of the United States; orCommentsClose CommentsPermalink
‘(2) immigrants lawfully residing in the United States,CommentsClose CommentsPermalink
are excluded for the purpose of calculating and distributing refunds under this section.CommentsClose CommentsPermalink
‘SEC. 790. EXCHANGE FOR STATE-ISSUED ALLOWANCES.
‘(a) In General- Not later than one year after the date of enactment of this title, the Administrator shall issue regulations allowing any person in the United States to exchange greenhouse gas emission allowances issued before December 31, 2011, by the State of California or for the Regional Greenhouse Gas Initiative, or the Western Climate Initiative (in this section referred to as ‘State allowances’) for emission allowances established by the Administrator under section 721(a).CommentsClose CommentsPermalink
‘(b) Regulations- Regulations issued under subsection (a) shall--CommentsClose CommentsPermalink
‘(1) provide that a person exchanging State allowances under this section receive emission allowances established under section 721(a) in the amount that is sufficient to compensate for the cost of obtaining and holding such State allowances;CommentsClose CommentsPermalink
‘(2) establish a deadline by which persons must exchange the State allowances; andCommentsClose CommentsPermalink
‘(3) provide that the Federal emission allowances disbursed pursuant to this section shall be deducted from the allowances to be auctioned pursuant to section 782(d).CommentsClose CommentsPermalink
‘(c) Cost of Obtaining State Allowance- For purposes of this section, the cost of obtaining a State allowance shall be the average auction price, for emission allowances issued in the year in which the State allowance was issued, under the program under which the State allowance was issued.CommentsClose CommentsPermalink
‘SEC. 791. AUCTION PROCEDURES.
‘(a) In General- To the extent that auctions of emission allowances by the Administrator are authorized by this part, such auctions shall be carried out pursuant to this section and the regulations established hereunder.CommentsClose CommentsPermalink
‘(b) Initial Regulations- Not later than 12 months after the date of enactment of this title, the Administrator, in consultation with other agencies, as appropriate, shall promulgate regulations governing the auction of allowances under this section. Such regulations shall include the following requirements:CommentsClose CommentsPermalink
‘(1) FREQUENCY; FIRST AUCTION- Auctions shall be held four times per year at regular intervals, with the first auction to be held no later than March 31, 2011.CommentsClose CommentsPermalink
‘(2) AUCTION SCHEDULE; CURRENT AND FUTURE VINTAGES- The Administrator shall, at each quarterly auction under this section, offer for sale both a portion of the allowances with the same vintage year as the year in which the auction is being conducted and a portion of the allowances with vintage years from future years. The preceding sentence shall not apply to auctions held before 2012, during which period, by necessity, the Administrator shall auction only allowances with a vintage year that is later than the year in which the auction is held. Beginning with the first auction and at each quarterly auction held thereafter, the Administrator may offer for sale allowances with vintage years of up to four years after the year in which the auction is being conducted, except as provided in section 782(p).CommentsClose CommentsPermalink
‘(3) AUCTION FORMAT- Auctions shall follow a single-round, sealed-bid, uniform price format.CommentsClose CommentsPermalink
‘(4) PARTICIPATION; FINANCIAL ASSURANCE- Auctions shall be open to any person, except that the Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids.CommentsClose CommentsPermalink
‘(5) DISCLOSURE OF BENEFICIAL OWNERSHIP- Each bidder in the auction shall be required to disclose the person or entity sponsoring or benefitting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder.CommentsClose CommentsPermalink
‘(6) PURCHASE LIMITS- No person may, directly or in concert with another participant, purchase more than 5 percent of the allowances offered for sale at any quarterly auction.CommentsClose CommentsPermalink
‘(7) PUBLICATION OF INFORMATION- After the auction, the Administrator shall, in a timely fashion, publish the identities of winning bidders, the quantity of allowances obtained by each winning bidder, and the auction clearing price.CommentsClose CommentsPermalink
‘(8) OTHER REQUIREMENTS- The Administrator may include in the regulations such other requirements or provisions as the Administrator, in consultation with other agencies, as appropriate, considers appropriate to promote effective, efficient, transparent, and fair administration of auctions under this section.CommentsClose CommentsPermalink
‘(c) Revision of Regulations- The Administrator may, in consultation with other agencies, as appropriate, at any time, revise the initial regulations promulgated under subsection (b) by promulgating new regulations. Such revised regulations need not meet the requirements identified in subsection (b) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this subsection, the Administrator shall not consider maximization of revenues to the Federal Government.CommentsClose CommentsPermalink
‘(d) Reserve Auction Price- The minimum reserve auction price shall be $10 (in constant 2009 dollars) for auctions occurring in 2012. The minimum reserve price for auctions occurring in years after 2012 shall be the minimum reserve auction price for the previous year increased by 5 percent plus the rate of inflation (as measured by the Consumer Price Index for all urban consumers).CommentsClose CommentsPermalink
‘(e) Delegation or Contract- Pursuant to regulations under this section, the Administrator may by delegation or contract provide for the conduct of auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations.CommentsClose CommentsPermalink
‘(f) Small Business Refiner Reserve- The Administrator shall, in accordance with this subsection, issue regulations setting aside a specified number of allowances that small business refiners may purchase at the average auction price and may use to demonstrate compliance pursuant to section 722. These regulations shall provide the following:CommentsClose CommentsPermalink
‘(1) AMOUNT- The Administrator shall place in the small business refiner reserve account allowances that are to be sold at auction pursuant to the allocations in section 782 in an amount equal to--CommentsClose CommentsPermalink
‘(A) 6.2 percent of the emission allowances established under section 721(a) for each vintage year from 2012 through 2013;CommentsClose CommentsPermalink
‘(B) 5.4 percent of the emission allowances established under section 721(a) for each vintage year from 2014 through 2015; andCommentsClose CommentsPermalink
‘(C) 4.9 percent of the emission allowances established under section 721(a) for each vintage year from 2016 through 2024.CommentsClose CommentsPermalink
‘(2) ALLOWED PURCHASES- From January 1 of the calendar year that matches the vintage year for which allowances have been placed in the reserve, through January 14 of the following year, small business refiners (as defined in section 787(b)) may purchase allowances from this reserve at the price determined pursuant to paragraph (3).CommentsClose CommentsPermalink
‘(3) PRICE- The price for allowances purchased from this reserve shall be the average auction price for allowances of the same vintage year purchased at auctions conducted pursuant to this section during the 12 months preceding the purchase of the allowances.CommentsClose CommentsPermalink
‘(4) USE OF ALLOWANCES- Allowances purchased from this reserve shall only be used by the purchaser to demonstrate compliance pursuant to section 722 for attributable greenhouse gas emissions in the calendar year that matches the vintage year of the purchased allowance. Allowances purchased from this reserve may not be banked, traded or borrowed.CommentsClose CommentsPermalink
‘(5) LIMITATIONS ON PURCHASE AMOUNT- The Administrator, by regulation adopted after public notice and an opportunity for comment, shall establish procedures to distribute the ability to purchase allowances from the reserve fairly among all small business refiners interested in purchasing allowances from this reserve so as to address the potential that requests to purchase allowances exceed the number of allowances available in the reserve. This regulation may place limits on the number of allowances a small business refiner may purchase from the reserve.CommentsClose CommentsPermalink
‘(6) UNSOLD ALLOWANCES- Vintage year allowances not sold from the reserve on or before January 15 of the calendar year following the vintage year shall be sold at an auction conducted pursuant to this section no later than March 31 of the calendar year following the vintage year. If significantly more allowances are being placed in the reserve than are being purchased from the reserve several years in a row, the Administrator may adjust either the percent of allowances placed in the reserve or the date by which allowances may be purchased from the reserve.CommentsClose CommentsPermalink
‘SEC. 792. AUCTIONING ALLOWANCES FOR OTHER ENTITIES.
‘(a) Consignment- Any entity holding emission allowances or compensatory allowances may request that the Administrator auction, pursuant to section 791, the allowances on consignment.CommentsClose CommentsPermalink
‘(b) Pricing- When the Administrator acts under this section as the agent of an entity in possession of emission allowances or compensatory allowances, the Administrator is not obligated to obtain the highest price possible for the allowances, and instead shall auction consignment allowances in the same manner and pursuant to the same rules as auctions of other allowances under section 791. The Administrator may permit the entity offering the allowance for sale to condition the sale of its allowances pursuant to this section on a minimum reserve price that is different than the reserve auction price set pursuant to section 791(d).CommentsClose CommentsPermalink
‘(c) Proceeds- For emission allowances and compensatory allowances auctioned pursuant to this section, notwithstanding
section 3302 of title 31, United States Code , or any other provision of law, within 90 days of receipt, the United States shall transfer the proceeds from the auction to the entity which held the allowances auctioned. No funds transferred from a purchaser to a seller of emission allowances or compensatory allowances under this subsection shall be held by any officer or employee of the United States or treated for any purpose as public monies.CommentsClose CommentsPermalink‘(d) Unsold Allowances- Allowances offered for sale under this section that are not sold shall be returned to the entity in possession of the allowance, notwithstanding section 726(b)(2)(A).CommentsClose CommentsPermalink
‘(e) Regulations- The Administrator shall issue regulations within 24 months after the date of enactment of this title to implement this section.CommentsClose CommentsPermalink
‘SEC. 793. ESTABLISHMENT OF FUNDS.
‘There is hereby established in the Treasury of the United States the following separate accounts:CommentsClose CommentsPermalink
‘(1) The Strategic Reserve Fund.CommentsClose CommentsPermalink
‘(2) The Climate Change Consumer Refund Account.CommentsClose CommentsPermalink
‘(3) The Climate Change Worker Adjustment Assistance Fund.CommentsClose CommentsPermalink
‘SEC. 794. OVERSIGHT OF ALLOCATIONS.
‘(a) In General- Not later than January 1, 2014, and every 2 years thereafter, the Comptroller General of the United States shall carry out and report to Congress on the results of a review of programs administered by the Federal Government that distribute emission allowances or funds from any Federal auction of allowances.CommentsClose CommentsPermalink
‘(b) Contents- Each such report shall include a comprehensive evaluation of the administration and effectiveness of each program, including--CommentsClose CommentsPermalink
‘(1) the efficiency, transparency, and soundness of the administration of each program;CommentsClose CommentsPermalink
‘(2) the performance of activities receiving assistance under each program;CommentsClose CommentsPermalink
‘(3) the cost-effectiveness of each program in achieving the stated purposes of the program; andCommentsClose CommentsPermalink
‘(4) recommendations, if any, for legislative, regulatory, or administrative changes to each program to improve its effectiveness.CommentsClose CommentsPermalink
‘(c) Focus- In evaluating program performance, each review under this section review shall address the effectiveness of such programs in--CommentsClose CommentsPermalink
‘(1) creating and preserving jobs;CommentsClose CommentsPermalink
‘(2) ensuring a manageable transition for working families and workers;CommentsClose CommentsPermalink
‘(3) reducing the emissions, or enhancing sequestration, of greenhouse gases;CommentsClose CommentsPermalink
‘(4) developing clean technologies; andCommentsClose CommentsPermalink
‘(5) building resilience to the impacts of climate change.’.CommentsClose CommentsPermalink
Subtitle C--Additional Greenhouse Gas StandardsCommentsClose CommentsPermalink
Subtitle C--Additional Greenhouse Gas StandardsCommentsClose CommentsPermalink
SEC. 331. GREENHOUSE GAS STANDARDS.
The Clean Air Act (
‘TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDSCommentsClose CommentsPermalink
‘SEC. 801. DEFINITIONS.
‘For purposes of this title, terms that are defined in title VII, except for the term ‘stationary source’, shall have the meaning given those terms in title VII.CommentsClose CommentsPermalink
‘PART A--STATIONARY SOURCE STANDARDS
‘SEC. 811. STANDARDS OF PERFORMANCE.
‘(a) Uncapped Stationary Sources-CommentsClose CommentsPermalink
‘(1) INVENTORY OF SOURCE CATEGORIES- (A) Within 12 months after the date of enactment of this title, the Administrator shall publish under section 111(b)(1)(A) an inventory of categories of stationary sources that consist of those categories that contain sources that individually had uncapped greenhouse gas emissions greater than 10,000 tons of carbon dioxide equivalent and that, in the aggregate, were responsible for emitting at least 20 percent annually of the uncapped greenhouse gas emissions.CommentsClose CommentsPermalink
‘(B) The Administrator shall include in the inventory under this paragraph each source category that is responsible for at least 10 percent of the uncapped methane emissions in 2005. Notwithstanding any other provision, the inventory required by this section shall not include sources of enteric fermentation. The list under this paragraph shall include industrial sources, the emissions from which, when added to the capped emissions from industrial sources, constitute at least 95 percent of the greenhouse gas emissions of the industrial sector.CommentsClose CommentsPermalink
‘(C) For purposes of this subsection, emissions shall be calculated using tons of carbon dioxide equivalents. In promulgating the inventory required by this paragraph and the schedule required under by paragraph (2)(C), the Administrator shall use the most current emissions data available at the time of promulgation, except as provided in subparagraph (B).CommentsClose CommentsPermalink
‘(D) Notwithstanding any other provisions, the Administrator may list under 111(b) any source category identified in the inventory required by this subsection without making a finding that the source category causes or contributes significantly to, air pollution with may be reasonably anticipated to endanger public health or welfare.CommentsClose CommentsPermalink
‘(2) STANDARDS AND SCHEDULE- (A) For each category identified as provided in paragraph (1), the Administrator shall promulgate standards of performance under section 111 for the uncapped emissions of greenhouse gases from stationary sources in that category and shall promulgate corresponding regulations under section 111(d).CommentsClose CommentsPermalink
‘(B) The Administrator shall promulgate standards as required by this subsection for stationary sources in categories identified as provided in paragraph (1) as expeditiously as practicable, assuring that--CommentsClose CommentsPermalink
‘(i) standards for identified source categories that, combined, emitted 80 percent or more of the greenhouse gas emissions of the identified source categories shall be promulgated not later than 3 years after the date of enactment of this title and shall include standards for natural gas extraction; andCommentsClose CommentsPermalink
‘(ii) for all other identified source categories--CommentsClose CommentsPermalink
‘(I) standards for not less than an additional 25 percent of the identified categories shall be promulgated not later than 5 years after the date of enactment of this title;CommentsClose CommentsPermalink
‘(II) standards for not less than an additional 25 percent of the identified categories shall be promulgated not later than 7 years after the date of enactment of this title; andCommentsClose CommentsPermalink
‘(III) standards for all the identified categories shall be promulgated not later than 10 years after the date of enactment of this title.CommentsClose CommentsPermalink
‘(C) Not later than 24 months after the date of enactment of this title and after notice and opportunity for comment, the Administrator shall publish a schedule establishing a date for the promulgation of standards for each category of sources identified pursuant to paragraph (1). The date for each category shall be consistent with the requirements of subparagraph (B). The determination of priorities for the promulgation of standards pursuant to this paragraph is not a rulemaking and shall not be subject to judicial review, except that failure to promulgate any standard pursuant to the schedule established by this paragraph shall be subject to review under section 304(a)(2).CommentsClose CommentsPermalink
‘(D) Notwithstanding section 307, no action of the Administrator listing a source category under paragraph (1) shall be a final agency action subject to judicial review, except that any such action may be reviewed under section 307 when the Administrator issues performance standards for such category.CommentsClose CommentsPermalink
‘(b) Capped Sources- No standard of performance shall be established under section 111 for capped greenhouse gas emissions from a capped source unless the Administrator determines that such standards are appropriate because of effects that do not include climate change effects. In promulgating a standard of performance under section 111 for the emission from capped sources of any air pollutant that is not a greenhouse gas, the Administrator shall treat the emission of any greenhouse gas by those entities as a nonair quality public health and environmental impact within the meaning of section 111(a)(1).CommentsClose CommentsPermalink
‘(c) Performance Standards- For purposes of setting a performance standard for source categories identified pursuant to subsection (a)--CommentsClose CommentsPermalink
‘(1) The Administrator shall take into account the goal of reducing total United States greenhouse gas emissions as set forth in section 702.CommentsClose CommentsPermalink
‘(2) The Administrator may promulgate a design, equipment, work practice, or operational standard, or any combination thereof, under section 111 in lieu of a standard of performance under that section without regard to any determination of feasibility that would otherwise be required under section 111(h).CommentsClose CommentsPermalink
‘(3) Notwithstanding any other provision, in setting the level of each standard required by this section, the Administrator shall take into account projections of allowance prices, such that the marginal cost of compliance (expressed as dollars per ton of carbon dioxide equivalent reduced) imposed by the standard would not, in the judgement of the Administrator, be expected to exceed the Administrator’s projected allowance prices over the time period spanning from the date of initial compliance to the date that the next revisions of the standard would come into effect pursuant to the schedule under section 111(b)(1)(B).CommentsClose CommentsPermalink
‘(d) Definitions- In this section, the terms ‘uncapped greenhouse gas emissions’ and ‘uncapped methane emissions’ mean those greenhouse gas or methane emissions, respectively, to which section 722 would not have applied if the requirements of this title had been in effect for the same year as the emissions data upon which the list is based.CommentsClose CommentsPermalink
‘(e) Study of the Effects of Performance Standards-CommentsClose CommentsPermalink
‘(1) STUDY- The Administrator shall conduct a study of the impacts of performance standards required under this section, which shall evaluate the effect of such standards on the--CommentsClose CommentsPermalink
‘(A) costs of achieving compliance with the economy-wide reduction goals specified in section 702 and the reduction targets specified in section 703;CommentsClose CommentsPermalink
‘(B) available supply of offset credits; andCommentsClose CommentsPermalink
‘(C) ability to achieve the economy-wide reduction goals specified in section 702 and any other benefits of such standards.CommentsClose CommentsPermalink
‘(2) REPORT- The Administrator shall submit to the House Energy and Commerce Committee a report that describes the results of the study not later than 18 months after the publication of the standards required under subsection (a)(2)(B)(i).CommentsClose CommentsPermalink
‘PART C--EXEMPTIONS FROM OTHER PROGRAMS
‘SEC. 831. CRITERIA POLLUTANTS.
‘As of the date of the enactment of the Safe Climate Act, no greenhouse gas may be added to the list under section 108(a) on the basis of its effect on global climate change.CommentsClose CommentsPermalink
‘SEC. 832. INTERNATIONAL AIR POLLUTION.
‘Section 115 shall not apply to an air pollutant with respect to that pollutant’s contribution to global warming.CommentsClose CommentsPermalink
‘SEC. 833. HAZARDOUS AIR POLLUTANTS.
‘No greenhouse gas may be added to the list of hazardous air pollutants under section 112 unless such greenhouse gas meets the listing criteria of section 112(b) independent of its effects on global climate change.CommentsClose CommentsPermalink
‘SEC. 834. NEW SOURCE REVIEW.
‘The provisions of part C of title I shall not apply to a major emitting facility that is initially permitted or modified after January 1, 2009, on the basis of its emissions of any greenhouse gas.CommentsClose CommentsPermalink
‘SEC. 835. TITLE V PERMITS.
‘Notwithstanding any provision of title III or V, no stationary source shall be required to apply for, or operate pursuant to, a permit under title V, solely because the source emits any greenhouse gases that are regulated solely because of their effect on global climate change.’.CommentsClose CommentsPermalink
SEC. 332. HFC REGULATION.
(a) In General- Title VI of the Clean Air Act (
‘SEC. 619. HYDROFLUOROCARBONS (HFCS).
‘(a) Treatment as Class II, Group II Substances- Except as otherwise provided in this section, hydrofluorocarbons shall be treated as class II substances for purposes of applying the provisions of this title. The Administrator shall establish two groups of class II substances. Class II, group I substances shall include all hydrochlorofluorocarbons (HCFCs) listed pursuant to section 602(b). Class II, group II substances shall include each of the following:CommentsClose CommentsPermalink
‘(1) Hydrofluorocarbon-23 (HFC-23).CommentsClose CommentsPermalink
‘(2) Hydrofluorocarbon-32 (HFC-32).CommentsClose CommentsPermalink
‘(3) Hydrofluorocarbon-41 (HFC-41).CommentsClose CommentsPermalink
‘(4) Hydrofluorocarbon-125 (HFC-125).CommentsClose CommentsPermalink
‘(5) Hydrofluorocarbon-134 (HFC-134).CommentsClose CommentsPermalink
‘(6) Hydrofluorocarbon-134a (HFC-134a).CommentsClose CommentsPermalink
‘(7) Hydrofluorocarbon-143 (HFC-143).CommentsClose CommentsPermalink
‘(8) Hydrofluorocarbon-143a (HFC-143a).CommentsClose CommentsPermalink
‘(9) Hydrofluorocarbon-152 (HFC-152).CommentsClose CommentsPermalink
‘(10) Hydrofluorocarbon-152a (HFC-152a).CommentsClose CommentsPermalink
‘(11) Hydrofluorocarbon-227ea (HFC-227ea).CommentsClose CommentsPermalink
‘(12) Hydrofluorocarbon-236cb (HFC-236cb).CommentsClose CommentsPermalink
‘(13) Hydrofluorocarbon-236ea (HFC-236ea).CommentsClose CommentsPermalink
‘(14) Hydrofluorocarbon-236fa (HFC-236fa).CommentsClose CommentsPermalink
‘(15) Hydrofluorocarbon-245ca (HFC-245ca).CommentsClose CommentsPermalink
‘(16) Hydrofluorocarbon-245fa (HFC-245fa).CommentsClose CommentsPermalink
‘(17) Hydrofluorocarbon-365mfc (HFC-365mfc).CommentsClose CommentsPermalink
‘(18) Hydrofluorocarbon-43-10mee (HFC-43-10mee).CommentsClose CommentsPermalink
‘(19) Hydrofluoroolefin-1234yf (HFO-1234yf).CommentsClose CommentsPermalink
‘(20) Hydrofluoroolefin-1234ze (HFO-1234ze).CommentsClose CommentsPermalink
Not later than 6 months after the date of enactment of this title, the Administrator shall publish an initial list of class II, group II substances, which shall include the substances listed in this subsection. The Administrator may add to the list of class II, group II substances any other substance used as a substitute for a class I or II substance if the Administrator determines that 1 metric ton of the substance makes the same or greater contribution to global warming over 100 years as 1 metric ton of carbon dioxide. Within 24 months after the date of enactment of this section, the Administrator shall amend the regulations under this title (including the regulations referred to in sections 603, 608, 609, 610, 611, 612, and 613) to apply to class II, group II substances.CommentsClose CommentsPermalink
‘(b) Consumption and Production of Class II, Group II Substances-CommentsClose CommentsPermalink
‘(1) IN GENERAL-CommentsClose CommentsPermalink
‘(A) CONSUMPTION PHASE DOWN- In the case of class II, group II substances, in lieu of applying section 605 and the regulations thereunder, the Administrator shall promulgate regulations phasing down the consumption of class II, group II substances in the United States, and the importation of products containing any class II, group II substance, in accordance with this subsection within 18 months after the date of enactment of this section. Effective January 1, 2012, it shall be unlawful for any person to produce any class II, group II substance, import any class II, group II substance, or import any product containing any class II, group II substance without holding one consumption allowance or one destruction offset credit for each carbon dioxide equivalent ton of the class II, group II substance. Any person who exports a class II, group II substance for which a consumption allowance was retired may receive a refund of that allowance from the Administrator following the export.CommentsClose CommentsPermalink
‘(B) PRODUCTION- If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, that restricts the production of class II, group II substances, the Administrator shall promulgate regulations establishing a baseline for the production of class II, group II substances in the United States and phasing down the production of class II, group II substances in the United States, in accordance with such multilateral agreement and subject to the same exceptions and other provisions as are applicable to the phase down of consumption of class II, group II substances under this section (except that the Administrator shall not require a person who obtains production allowances from the Administrator to make payment for such allowances if the person is making payment for a corresponding quantity of consumption allowances of the same vintage year). Upon the effective date of such regulations, it shall be unlawful for any person to produce any class II, group II substance without holding one consumption allowance and one production allowance, or one destruction offset credit, for each carbon dioxide equivalent ton of the class II, group II substance.CommentsClose CommentsPermalink
‘(C) INTEGRITY OF CAP- To maintain the integrity of the class II, group II cap, the Administrator may, through rulemaking, limit the percentage of each person’s compliance obligation that may be met through the use of destruction offset credits or banked allowances.CommentsClose CommentsPermalink
‘(D) COUNTING OF VIOLATIONS- Each consumption allowance, production allowance, or destruction offset credit not held as required by this section shall be a separate violation of this section.CommentsClose CommentsPermalink
‘(2) SCHEDULE- Pursuant to the regulations promulgated pursuant to paragraph (1)(A), the number of class II, group II consumption allowances established by the Administrator for each calendar year beginning in 2012 shall be the following percentage of the baseline, as established by the Administrator pursuant to paragraph (3):CommentsClose CommentsPermalink
-----------------------------------CommentsClose CommentsPermalink
‘Calendar Year Percent of Baseline CommentsClose CommentsPermalink
-----------------------------------CommentsClose CommentsPermalink
2012 90 CommentsClose CommentsPermalink
2013 87.5 CommentsClose CommentsPermalink
2014 85 CommentsClose CommentsPermalink
2015 82.5 CommentsClose CommentsPermalink
2016 80 CommentsClose CommentsPermalink
2017 77.5 CommentsClose CommentsPermalink
2018 75 CommentsClose CommentsPermalink
2019 71 CommentsClose CommentsPermalink
2020 67 CommentsClose CommentsPermalink
2021 63 CommentsClose CommentsPermalink
2022 59 CommentsClose CommentsPermalink
2023 54 CommentsClose CommentsPermalink
2024 50 CommentsClose CommentsPermalink
2025 46 CommentsClose CommentsPermalink
2026 42 CommentsClose CommentsPermalink
2027 38 CommentsClose CommentsPermalink
2028 34 CommentsClose CommentsPermalink
2029 30 CommentsClose CommentsPermalink
2030 25 CommentsClose CommentsPermalink
2031 21 CommentsClose CommentsPermalink
2032 17 CommentsClose CommentsPermalink
after 2032 15 CommentsClose CommentsPermalink
-----------------------------------CommentsClose CommentsPermalink
‘(3) BASELINE- (A) Within 12 months after the date of enactment of this section, the Administrator shall promulgate regulations to establish the baseline for purposes of paragraph (2). The baseline shall be the sum, expressed in metric tons of carbon dioxide equivalents, of--CommentsClose CommentsPermalink
‘(i) the annual average consumption of all class II substances in calendar years 2004, 2005, and 2006; plusCommentsClose CommentsPermalink
‘(ii) the annual average quantity of all class II substances contained in imported products in calendar years 2004, 2005, and 2006.CommentsClose CommentsPermalink
‘(B) Notwithstanding subparagraph (A), if the Administrator determines that the baseline is higher than 370 million metric tons of carbon dioxide equivalents, then the Administrator shall establish the baseline at 370 million metric tons of carbon dioxide equivalents.CommentsClose CommentsPermalink
‘(C) Notwithstanding subparagraph (A), if the Administrator determines that the baseline is lower than 280 million metric tons of carbon dioxide equivalents, then the Administrator shall establish the baseline at 280 million metric tons of carbon dioxide equivalents.CommentsClose CommentsPermalink
‘(4) DISTRIBUTION OF ALLOWANCES-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Pursuant to the regulations promulgated under paragraph (1)(A), for each calendar year beginning in 2012, the Administrator shall sell consumption allowances in accordance with this paragraph.CommentsClose CommentsPermalink
‘(B) ESTABLISHMENT OF POOLS- The Administrator shall establish two allowance pools. Eighty percent of the consumption allowances available for a calendar year shall be placed in the producer-importer pool, and 20 percent of the consumption allowances available for a calendar year shall be placed in the secondary pool.CommentsClose CommentsPermalink
‘(C) PRODUCER-IMPORTER POOL-CommentsClose CommentsPermalink
‘(i) AUCTION- (I) For each calendar year, the Administrator shall offer for sale at auction the following percentage of the consumption allowances in the producer-importer pool:CommentsClose CommentsPermalink
--------------------------------------------------CommentsClose CommentsPermalink
‘Calendar Year Percent Available for Auction CommentsClose CommentsPermalink
--------------------------------------------------CommentsClose CommentsPermalink
2012 10 CommentsClose CommentsPermalink
2013 20 CommentsClose CommentsPermalink
2014 30 CommentsClose CommentsPermalink
2015 40 CommentsClose CommentsPermalink
2016 50 CommentsClose CommentsPermalink
2017 60 CommentsClose CommentsPermalink
2018 70 CommentsClose CommentsPermalink
2019 80 CommentsClose CommentsPermalink
2020 and thereafter 90 CommentsClose CommentsPermalink
--------------------------------------------------CommentsClose CommentsPermalink
‘(II) Any person who produced or imported any class II substance during calendar year 2004, 2005, or 2006 may participate in the auction. No other persons may participate in the auction unless permitted to do so pursuant to subclause (III).CommentsClose CommentsPermalink
‘(III) Not later than three years after the date of the initial auction and from time to time thereafter, the Administrator shall determine through rulemaking whether any persons who did not produce or import a class II substance during calendar year 2004, 2005, or 2006 will be permitted to participate in future auctions. The Administrator shall base this determination on the duration, consistency, and scale of such person’s purchases of consumption allowances in the secondary pool under subparagraph (D)(ii)(III), as well as economic or technical hardship and other factors deemed relevant by the Administrator.CommentsClose CommentsPermalink
‘(IV) The Administrator shall set a minimum bid per consumption allowance of the following:CommentsClose CommentsPermalink
‘(aa) For vintage year 2012, $1.00.CommentsClose CommentsPermalink
‘(bb) For vintage year 2013, $1.20.CommentsClose CommentsPermalink
‘(cc) For vintage year 2014, $1.40.CommentsClose CommentsPermalink
‘(dd) For vintage year 2015, $1.60.CommentsClose CommentsPermalink
‘(ee) For vintage year 2016, $1.80.CommentsClose CommentsPermalink
‘(ff) For vintage year 2017, $2.00.CommentsClose CommentsPermalink
‘(gg) For vintage year 2018 and thereafter, $2.00 adjusted for inflation after vintage year 2017 based upon the producer price index as published by the Department of Commerce.CommentsClose CommentsPermalink
‘(ii) NON-AUCTION SALE- (I) For each calendar year, as soon as practicable after auction, the Administrator shall offer for sale the remaining consumption allowances in the producer-importer pool at the following prices:CommentsClose CommentsPermalink
‘(aa) A fee of $1.00 per vintage year 2012 allowance.CommentsClose CommentsPermalink
‘(bb) A fee of $1.20 per vintage year 2013 allowance.CommentsClose CommentsPermalink
‘(cc) A fee of $1.40 per vintage year 2014 allowance.CommentsClose CommentsPermalink
‘(dd) For each vintage year 2015 allowance, a fee equal to the average of $1.10 and the auction clearing price for vintage year 2014 allowances.CommentsClose CommentsPermalink
‘(ee) For each vintage year 2016 allowance, a fee equal to the average of $1.30 and the auction clearing price for vintage year 2015 allowances.CommentsClose CommentsPermalink
‘(ff) For each vintage year 2017 allowance, a fee equal to the average of $1.40 and the auction clearing price for vintage year 2016 allowances.CommentsClose CommentsPermalink
‘(gg) For each allowance of vintage year 2018 and subsequent vintage years, a fee equal to the auction clearing price for that vintage year.CommentsClose CommentsPermalink
‘(II) The Administrator shall offer to sell the remaining consumption allowances in the producer-importer pool to producers of class II, group II substances and importers of class II, group II substances in proportion to their relative allocation share.CommentsClose CommentsPermalink
‘(III) Such allocation share for such sale shall be determined by the Administrator using such producer’s or importer’s annual average data on class II substances from calendar years 2004, 2005, and 2006, on a carbon dioxide equivalent basis, and--CommentsClose CommentsPermalink
‘(aa) shall be based on a producer’s production, plus importation, plus acquisitions and purchases from persons who produced class II substances in the United States during calendar years 2004, 2005, or 2006, less exportation, less transfers and sales to persons who produced class II substances in the United States during calendar years 2004, 2005, or 2006; andCommentsClose CommentsPermalink
‘(bb) for an importer of class II substances that did not produce in the United States any class II substance during calendar years 2004, 2005, and 2006, shall be based on the importer’s importation less exportation.CommentsClose CommentsPermalink
For purposes of item (aa), the Administrator shall account for 100 percent of class II, group II substances and 60 percent of class II, group I substances. For purposes of item (bb), the Administrator shall account for 100 percent of class II, group II substances and 100 percent of class II, group I substances.CommentsClose CommentsPermalink
‘(IV) Any consumption allowances made available for nonauction sale to a specific producer or importer of class II, group II substances but not purchased by the specific producer or importer shall be made available for sale to any producer or importer of class II substances during calendar years 2004, 2005, or 2006. If demand for such consumption allowances exceeds supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances that may include pro rata shares, historic production and importation, economic or technical hardship, or other factors deemed relevant by the Administrator. If the supply of such consumption allowances exceeds demand, the Administrator may offer such consumption allowances for sale in the secondary pool as set forth in subparagraph (D).CommentsClose CommentsPermalink
‘(D) SECONDARY POOL- (i) For each calendar year, as soon as practicable after the auction required in subparagraph (C), the Administrator shall offer for sale the consumption allowances in the secondary pool at the prices listed in subparagraph (C)(ii).CommentsClose CommentsPermalink
‘(ii) The Administrator shall accept applications for purchase of secondary pool consumption allowances from--CommentsClose CommentsPermalink
‘(I) importers of products containing class II, group II substances;CommentsClose CommentsPermalink
‘(II) persons who purchased any class II, group II substance directly from a producer or importer of class II, group II substances for use in a product containing a class II, group II substance, a manufacturing process, or a reclamation process;CommentsClose CommentsPermalink
‘(III) persons who did not produce or import a class II substance during calendar year 2004, 2005, or 2006, but who the Administrator determines have subsequently taken significant steps to produce or import a substantial quantity of any class II, group II substance; andCommentsClose CommentsPermalink
‘(IV) persons who produced or imported any class II substance during calendar year 2004, 2005, or 2006.CommentsClose CommentsPermalink
‘(iii) If the supply of consumption allowances in the secondary pool equals or exceeds the demand for consumption allowances in the secondary pool as presented in the applications for purchase, the Administrator shall sell the consumption allowances in the secondary pool to the applicants in the amounts requested in the applications for purchase. Any consumption allowances in the secondary pool not purchased in a calendar year may be rolled over and added to the quantity available in the secondary pool in the following year.CommentsClose CommentsPermalink
‘(iv) If the demand for consumption allowances in the secondary pool as presented in the applications for purchase exceeds the supply of consumption allowances in the secondary pool, the Administrator shall sell the consumption allowances as follows:CommentsClose CommentsPermalink
‘(I) The Administrator shall first sell the consumption allowances in the secondary pool to any importers of products containing class II, group II substances in the amounts requested in their applications for purchase. If the demand for such consumption allowances exceeds supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances among importers of products containing class II, group II substances that may include pro rata shares, historic importation, economic or technical hardship, or other factors deemed relevant by the Administrator.CommentsClose CommentsPermalink
‘(II) The Administrator shall next sell any remaining consumption allowances to persons identified in subclauses (II) and (III) of clause (ii) in the amounts requested in their applications for purchase. If the demand for such consumption allowances exceeds remaining supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances among subclauses (II) and (III) applicants that may include pro rata shares, historic use, economic or technical hardship, or other factors deemed relevant by the Administrator.CommentsClose CommentsPermalink
‘(III) The Administrator shall then sell any remaining consumption allowances to persons who produced or imported any class II substance during calendar year 2004, 2005, or 2006 in the amounts requested in their applications for purchase. If demand for such consumption allowances exceeds remaining supply of such consumption allowances, the Administrator shall develop and utilize criteria for the sale of such consumption allowances that may include pro rata shares, historic production and importation, economic or technical hardship, or other factors deemed relevant by the Administrator.CommentsClose CommentsPermalink
‘(IV) Each person who purchases consumption allowances in a non-auction sale under this subparagraph shall be required to disclose the person or entity sponsoring or benefitting from the purchases if such person or entity is, in whole or in part, other than the purchaser or the purchaser’s employer.CommentsClose CommentsPermalink
‘(E) DISCRETION TO WITHHOLD ALLOWANCES- Nothing in this paragraph prevents the Administrator from exercising discretion to withhold and retire consumption allowances that would otherwise be available for auction or nonauction sale. Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations establishing criteria for withholding and retiring consumption allowances.CommentsClose CommentsPermalink
‘(5) BANKING- A consumption allowance or destruction offset credit may be used to meet the compliance obligation requirements of paragraph (1) in--CommentsClose CommentsPermalink
‘(A) the vintage year for the allowance or destruction offset credit; orCommentsClose CommentsPermalink
‘(B) any calendar year subsequent to the vintage year for the allowance or destruction offset credit.CommentsClose CommentsPermalink
‘(6) AUCTIONS-CommentsClose CommentsPermalink
‘(A) INITIAL REGULATIONS- Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations governing the auction of allowances under this section. Such regulations shall include the following requirements:CommentsClose CommentsPermalink
‘(i) FREQUENCY; FIRST AUCTION- Auctions shall be held one time per year at regular intervals, with the first auction to be held no later than October 31, 2011.CommentsClose CommentsPermalink
‘(ii) AUCTION FORMAT- Auctions shall follow a single-round, sealed-bid, uniform price format.CommentsClose CommentsPermalink
‘(iii) FINANCIAL ASSURANCE- The Administrator may establish financial assurance requirements to ensure that auction participants can and will perform on their bids.CommentsClose CommentsPermalink
‘(iv) DISCLOSURE OF BENEFICIAL OWNERSHIP- Each bidder in the auction shall be required to disclose the person or entity sponsoring or benefitting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder.CommentsClose CommentsPermalink
‘(v) PUBLICATION OF INFORMATION- After the auction, the Administrator shall, in a timely fashion, publish the number of bidders, number of winning bidders, the quantity of allowances sold, and the auction clearing price.CommentsClose CommentsPermalink
‘(vi) BIDDING LIMITS IN 2012- In the vintage year 2012 auction, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the greater of--CommentsClose CommentsPermalink
‘(I) the number of allowances which, when added to the number of allowances available for purchase by the participant in the producer-importer pool non-auction sale, would equal the participant’s annual average consumption of class II, group II substances in calendar years 2004, 2005, and 2006; orCommentsClose CommentsPermalink
‘(II) the number of allowances equal to the product of--CommentsClose CommentsPermalink
‘(aa) 1.20 multiplied by the participant’s allocation share of the producer-importer pool non-auction sale as determined under paragraph (4)(C)(ii); andCommentsClose CommentsPermalink
‘(bb) the number of vintage year 2012 allowances offered at auction.CommentsClose CommentsPermalink
‘(vii) BIDDING LIMITS IN 2013- In the vintage year 2013 auction, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the product of--CommentsClose CommentsPermalink
‘(I) 1.15 multiplied by the ratio of the total number of vintage year 2012 allowances purchased by the participant from the auction and from the producer-importer pool non-auction sale to the total number of vintage year 2012 allowances in the producer-importer pool; andCommentsClose CommentsPermalink
‘(II) the number of vintage year 2013 allowances offered at auction.CommentsClose CommentsPermalink
‘(viii) BIDDING LIMITS IN SUBSEQUENT YEARS- In the auctions for vintage year 2014 and subsequent vintage years, no auction participant may, directly or in concert with another participant, bid for or purchase more allowances offered for sale at the auction than the product of--CommentsClose CommentsPermalink
‘(I) 1.15 multiplied by the ratio of the highest number of allowances required to be held by the participant in any of the three prior vintage years to meet its compliance obligation under paragraph (1) to the total number of allowances in the producer-importer pool for such vintage year; andCommentsClose CommentsPermalink
‘(II) the number of allowances offered at auction for that vintage year.CommentsClose CommentsPermalink
‘(ix) OTHER REQUIREMENTS- The Administrator may include in the regulations such other requirements or provisions as the Administrator considers necessary to promote effective, efficient, transparent, and fair administration of auctions under this section.CommentsClose CommentsPermalink
‘(B) REVISION OF REGULATIONS- The Administrator may, at any time, revise the initial regulations promulgated under subparagraph (A) based on the Administrator’s experience in administering allowance auctions by promulgating new regulations. Such revised regulations need not meet the requirements identified in subparagraph (A) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations under this paragraph, the Administrator shall not consider maximization of revenues to the Federal Government.CommentsClose CommentsPermalink
‘(C) DELEGATION OR CONTRACT- Pursuant to regulations under this section, the Administrator may, by delegation or contract, provide for the conduct of auctions under the Administrator’s supervision by other departments or agencies of the Federal Government or by nongovernmental agencies, groups, or organizations.CommentsClose CommentsPermalink
‘(7) PAYMENTS FOR ALLOWANCES-CommentsClose CommentsPermalink
‘(A) INITIAL REGULATIONS- Not later than 18 months after the date of enactment of this section, the Administrator shall promulgate regulations governing the payment for allowances purchased in auction and non-auction sales under this section. Such regulations shall include the requirement that, in the event that full payment for purchased allowances is not made on the date of purchase, equal payments shall be made one time per calendar quarter with all payments for allowances of a vintage year made by the end of that vintage year.CommentsClose CommentsPermalink
‘(B) REVISION OF REGULATIONS- The Administrator may, at any time, revise the initial regulations promulgated under subparagraph (A) based on the Administrator’s experience in administering collection of payments by promulgating new regulations. Such revised regulations need not meet the requirements identified in subparagraph (A) if the Administrator determines that an alternative payment structure or frequency would be more effective, taking into account factors including cost of administration, transparency, and fairness. In determining whether and how to revise the initial regulations under this paragraph, the Administrator shall not consider maximization of revenues to the Federal Government.CommentsClose CommentsPermalink
‘(C) PENALTIES FOR NON-PAYMENT- Failure to pay for purchased allowances in accordance with the regulations promulgated pursuant to this paragraph shall be a violation of the requirements of subsection (b). Section 113(c)(3) shall apply in the case of any person who knowingly fails to pay for purchased allowances in accordance with the regulations promulgated pursuant to this paragraph.CommentsClose CommentsPermalink
‘(8) IMPORTED PRODUCTS- If the United States becomes a party or otherwise adheres to a multilateral agreement, including any amendment to the Montreal Protocol on Substances That Deplete the Ozone Layer, which restricts the production or consumption of class II, group II substances--CommentsClose CommentsPermalink
‘(A) as of the date on which such agreement or amendment enters into force, it shall no longer be unlawful for any person to import from a party to such agreement or amendment any product containing any class II, group II substance whose production or consumption is regulated by such agreement or amendment without holding one consumption allowance or one destruction offset credit for each carbon dioxide equivalent ton of the class II, group II substance;CommentsClose CommentsPermalink
‘(B) the Administrator shall promulgate regulations within 12 months of the date the United States becomes a party or otherwise adheres to such agreement or amendment, or the date on which such agreement or amendment enters into force, whichever is later, to establish a new baseline for purposes of paragraph (2), which new baseline shall be the original baseline less the carbon dioxide equivalent of the annual average quantity of any class II substances regulated by such agreement or amendment contained in products imported from parties to such agreement or amendment in calendar years 2004, 2005, and 2006;CommentsClose CommentsPermalink
‘(C) as of the date on which such agreement or amendment enters into force, no person importing any product containing any class II, group II substance may, directly or in concert with another person, purchase any consumption allowances for sale by the Administrator for the importation of products from a party to such agreement or amendment that contain any class II, group II substance restricted by such agreement or amendment; andCommentsClose CommentsPermalink
‘(D) the Administrator may adjust the two allowance pools established in paragraph (4) such that up to 90 percent of the consumption allowances available for a calendar year are placed in the producer-importer pool with the remaining consumption allowances placed in the secondary pool.CommentsClose CommentsPermalink
‘(9) OFFSETS-CommentsClose CommentsPermalink
‘(A) CHLOROFLUOROCARBON DESTRUCTION- Within 18 months after the date of enactment of this section, the Administrator shall promulgate regulations to provide for the issuance of offset credits for the destruction, in the calendar year 2012 or later, of chlorofluorocarbons in the United States. The Administrator shall establish and distribute to the destroying entity a quantity of destruction offset credits equal to 0.8 times the number of metric tons of carbon dioxide equivalents of reduction achieved through the destruction. No destruction offset credits shall be established for the destruction of a class II, group II substance.CommentsClose CommentsPermalink
‘(B) DEFINITION- For purposes of this paragraph, the term ‘destruction’ means the conversion of a substance by thermal, chemical, or other means to another substance with little or no carbon dioxide equivalent value and no ozone depletion potential.CommentsClose CommentsPermalink
‘(C) REGULATIONS- The regulations promulgated under this paragraph shall include standards and protocols for project eligibility, certification of destroyers, monitoring, tracking, destruction efficiency, quantification of project and baseline emissions and carbon dioxide equivalent value, and verification. The Administrator shall ensure that destruction offset credits represent real and verifiable destruction of chlorofluorocarbons or other class I or class II, group I, substances authorized under subparagraph (D).CommentsClose CommentsPermalink
‘(D) OTHER SUBSTANCES- The Administrator may promulgate regulations to add to the list of class I and class II, group I, substances that may be destroyed for destruction offset credits, taking into account a candidate substance’s carbon dioxide equivalent value, ozone depletion potential, prevalence in banks in the United States, and emission rates, as well as the need for additional cost containment under the class II, group II cap and the integrity of the class II, group II cap. The Administrator shall not add a class I or class II, group I substance to the list if the consumption of the substance has not been completely phased-out internationally (except for essential use exemptions or other similar exemptions) pursuant to the Montreal Protocol.CommentsClose CommentsPermalink
‘(E) EXTENSION OF OFFSETS- (i) At any time after the Administrator promulgates regulations pursuant to subparagraph (A), the Administrator may, pursuant to the requirements of part D of title VII and based on the carbon dioxide equivalent value of the substance destroyed, add the types of destruction projects authorized to receive destruction offset credits under this paragraph to the list of types of projects eligible for offset credits under section 733. If such projects are added to the list under section 733, the issuance of offset credits for such projects under part D of title VII shall be governed by the requirements of such part D, while the issuance of offset credits for such projects under this paragraph shall be governed by the requirements of this paragraph. Nothing in this paragraph shall affect the issuance of offset credits under section 740.CommentsClose CommentsPermalink
‘(ii) The Administrator shall not make the addition under clause (i) unless the Administrator finds that insufficient destruction is occurring or is projected to occur under this paragraph and that the addition would increase destruction.CommentsClose CommentsPermalink
‘(iii) In no event shall more than one destruction offset credit be issued under title VII and this section for the destruction of the same quantity of a substance.CommentsClose CommentsPermalink
‘(10) LEGAL STATUS OF ALLOWANCES AND CREDITS- None of the following constitutes a property right:CommentsClose CommentsPermalink
‘(A) A production or consumption allowance.CommentsClose CommentsPermalink
‘(B) A destruction offset credit.CommentsClose CommentsPermalink
‘(c) Deadlines for Compliance- Notwithstanding the deadlines specified for class II substances in sections 608, 609, 610, 612, and 613 that occur prior to January 1, 2009, the deadline for promulgating regulations under those sections for class II, group II substances shall be January 1, 2012.CommentsClose CommentsPermalink
‘(d) Exceptions for Essential Uses- Notwithstanding any phase down of production and consumption required by this section, to the extent consistent with any applicable multilateral agreement to which the United States is a party or otherwise adheres, the Administrator may provide the following exceptions for essential uses:CommentsClose CommentsPermalink
‘(1) MEDICAL DEVICES- The Administrator, after notice and opportunity for public comment, and in consultation with the Commissioner of the Food and Drug Administration, may provide an exception for the production and consumption of class II, group II substances solely for use in medical devices.CommentsClose CommentsPermalink
‘(2) AVIATION AND SPACE VEHICLE SAFETY- The Administrator, after notice and opportunity for public comment, may authorize the production and consumption of limited quantities of class II, group II substances solely for the purposes of aviation or space vehicle safety if either the Administrator of the Federal Aviation Administration or the Administrator of the National Aeronautics and Space Administration, in consultation with the Administrator, determines that no safe and effective substitute has been developed and that such authorization is necessary for aviation or space flight safety purposes.CommentsClose CommentsPermalink
‘(e) Developing Countries- Notwithstanding any phase down of production required by this section, the Administrator, after notice and opportunity for public comment, may authorize the production of limited quantities of class II, group II substances in excess of the amounts otherwise allowable under this section solely for export to, and use in, developing countries. Any production authorized under this subsection shall be solely for purposes of satisfying the basic domestic needs of such countries as provided in applicable international agreements, if any, to which the United States is a party or otherwise adheres.CommentsClose CommentsPermalink
‘(f) National Security; Fire Suppression, etc- The provisions of subsection (f) and paragraphs (1) and (2) of subsection (g) of section 604 shall apply to any consumption and production phase down of class II, group II substances in the same manner and to the same extent, consistent with any applicable international agreement to which the United States is a party or otherwise adheres, as such provisions apply to the substances specified in such subsection.CommentsClose CommentsPermalink
‘(g) Accelerated Schedule- In lieu of section 606, the provisions of paragraphs (1), (2), and (3) of this subsection shall apply in the case of class II, group II substances.CommentsClose CommentsPermalink
‘(1) IN GENERAL- The Administrator shall promulgate initial regulations not later than 18 months after the date of enactment of this section, and revised regulations any time thereafter, which establish a schedule for phasing down the consumption (and, if the condition in subsection (b)(1)(B) is met, the production) of class II, group II substances that is more stringent than the schedule set forth in this section if, based on the availability of substitutes, the Administrator determines that such more stringent schedule is practicable, taking into account technological achievability, safety, and other factors the Administrator deems relevant, or if the Montreal Protocol, or any applicable international agreement to which the United States is a party or otherwise adheres, is modified or established to include a schedule or other requirements to control or reduce production, consumption, or use of any class II, group II substance more rapidly than the applicable schedule under this section.CommentsClose CommentsPermalink
‘(2) PETITION- Any person may submit a petition to promulgate regulations under this subsection in the same manner and subject to the same procedures as are provided in section 606(b).CommentsClose CommentsPermalink
‘(3) INCONSISTENCY- If the Administrator determines that the provisions of this section regarding banking, allowance rollover, or destruction offset credits create a significant potential for inconsistency with the requirements of any applicable international agreement to which the United States is a party or otherwise adheres, the Administrator may promulgate regulations restricting the availability of banking, allowance rollover, or destruction offset credits to the extent necessary to avoid such inconsistency.CommentsClose CommentsPermalink
‘(h) Exchange- Section 607 shall not apply in the case of class II, group II substances. Production and consumption allowances for class II, group II substances may be freely exchanged or sold but may not be converted into allowances for class II, group I substances.CommentsClose CommentsPermalink
‘(i) Labeling- (1) In applying section 611 to products containing or manufactured with class II, group II substances, in lieu of the words ‘destroying ozone in the upper atmosphere’ on labels required under section 611 there shall be substituted the words ‘contributing to global warming’.CommentsClose CommentsPermalink
‘(2) The Administrator may, through rulemaking, exempt from the requirements of section 611 products containing or manufactured with class II, group II substances determined to have little or no carbon dioxide equivalent value compared to other substances used in similar products.CommentsClose CommentsPermalink
‘(j) Nonessential Products- For the purposes of section 610, class II, group II substances shall be regulated under section 610(b), except that in applying section 610(b) the word ‘hydrofluorocarbon’ shall be substituted for the word ‘chlorofluorocarbon’ and the term ‘class II, group II’ shall be substituted for the term ‘class I’. Class II, group II substances shall not be subject to the provisions of section 610(d).CommentsClose CommentsPermalink
‘(k) International Transfers- In the case of class II, group II substances, in lieu of section 616, this subsection shall apply. To the extent consistent with any applicable international agreement to which the United States is a party or otherwise adheres, including any amendment to the Montreal Protocol, the United States may engage in transfers with other parties to such agreement or amendment under the following conditions:CommentsClose CommentsPermalink
‘(1) The United States may transfer production allowances to another party to such agreement or amendment if, at the time of the