To direct the Environmental Protection Agency to establish a product carbon disclosure program to facilitate carbon content labeling, and for other purposes.

Summary: Directs the Administrator of the Environmental Protection Agency (EPA) to study and report to Congress on 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, including regarding: (1) whether such a program would be effective in achieving greenhouse gas reductions; (2) criteria for identifying and prioritizing sectors, products, and processes that should be covered; (3) an identification of products, processes, or sectors whose inclusion could have a substantial carbon impact; (4) suggested methodology and protocols for measuring the carbon content of products across their entire carbon lifecycle; (5) options for educating consumers about product carbon content and the program; (6) an analysis of the associated costs and timelines; and (7) an evaluation of incentives to determine whether reductions in emissions can be accelerated through encouraging more efficient manufacturing or by encouraging preferences for lower-emissions products over higher-emissions products whose level of performance is no better.

Requires the Administrator, upon concluding the study, to 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 nationwide.

SECTION 1. PRODUCT CARBON DISCLOSURE PROGRAM.

    (a) EPA Study.--The Administrator of the Environmental Protection 
Agency shall conduct a study to determine the feasibility of 
establishing a national program for measuring, reporting, publicly 
disclosing, and labeling products or materials sold in the United 
States for their carbon content, and shall, not later than 18 months 
after the date of enactment of this Act, transmit a report to Congress 
which shall include the following:
            (1) A determination of whether a national product carbon 
        disclosure program and labeling program would be effective in 
        achieving the intended goals of achieving greenhouse gas 
        reductions and an examination of existing programs globally and 
        their strengths and weaknesses.
            (2) Criteria for identifying and prioritizing sectors and 
        products and processes that should be covered in such program 
        or programs.
            (3) An identification of products, processes, or sectors 
        whose inclusion could have a substantial carbon impact 
        (prioritizing industrial products such as iron and steel, 
        aluminum, cement, chemicals, and paper products, and also 
        including food, beverage, hygiene, cleaning, household 
        cleaners, construction, metals, clothing, semiconductor, and 
        consumer electronics).
            (4) Suggested methodology and protocols for measuring the 
        carbon content of the products across the entire carbon 
        lifecycle of such products for use in a carbon disclosure 
        program and labeling program.
            (5) A review of existing greenhouse gas product accounting 
        standards, methodologies, and practices including the 
        Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and 
        Publically Available Specification 2050, and including a review 
        of the strengths and weaknesses of each.
            (6) A survey of secondary databases including the 
        Manufacturing Energy Consumption Survey and evaluate the 
        quality of data for use in a product carbon disclosure program 
        and product carbon labeling program and an identification of 
        gaps in the data relative to the potential purposes of a 
        national product carbon disclosure program and product carbon 
        labeling program and development of recommendations for 
        addressing these data gaps.
            (7) An assessment of the utility of comparing products and 
        the appropriateness of product carbon standards.
            (8) An evaluation of the information needed on a label for 
        clear and accurate communication, including what pieces of 
        quantitative and qualitative information needs to be disclosed.
            (9) An evaluation of the appropriate boundaries of the 
        carbon lifecycle analysis for different sectors and products.
            (10) An analysis of whether default values should be 
        developed for products whose producer does not participate in 
        the program or does not have data to support a disclosure or 
        label and determine best ways to develop such default values.
            (11) A recommendation of certification and verification 
        options necessary to assure the quality of the information and 
        avoid greenwashing or the use of insubstantial or meaningless 
        environmental claims to promote a product.
            (12) An assessment of options for educating consumers about 
        product carbon content and the product carbon disclosure 
        program and product carbon labeling program.
            (13) An analysis of the costs and timelines associated with 
        establishing a national product carbon disclosure program and 
        product carbon labeling program, including options for a phased 
        approach. Costs should include those for businesses associated 
        with the measurement of carbon footprints and those associated 
        with creating a product carbon label and managing and operating 
        a product carbon labeling program, and options for minimizing 
        these costs.
            (14) An evaluation of incentives (such as financial 
        incentives, brand reputation, and brand loyalty) to determine 
        whether reductions in emissions can be accelerated through 
        encouraging more efficient manufacturing or by encouraging 
        preferences for lower-emissions products to substitute for 
        higher-emissions products whose level of performance is no 
        better.
    (b) Development of National Carbon Disclosure Program.--Upon 
conclusion of the study, and not more than 36 months after the date of 
enactment of this Act, the Administrator shall establish a national 
product carbon disclosure program, participation in which shall be 
voluntary, and which may involve a product carbon label with broad 
applicability to the wholesale and consumer markets to enable and 
encourage knowledge about carbon content by producers and consumers and 
to inform efforts to reduce energy consumption (carbon dioxide 
equivalent emissions) nationwide. In developing such a program, the 
Administrator shall--
            (1) consider the results of the study conducted under 
        subsection (a);
            (2) consider existing and planned programs and proposals 
        and measurement standards (including the Publicly Available 
        Specification 2050, standards to be developed by the World 
        Resource Institute/World Business Council for Sustainable 
        Development, the International Standards Organization, and the 
        bill AB19 pending in the California legislature);
            (3) consider the compatibility of a national product carbon 
        disclosure program with existing programs;
            (4) utilize incentives and other means to spur the adoption 
        of product carbon disclosure and product carbon labeling;
            (5) develop protocols and parameters for a product carbon 
        disclosure program, including a methodology and formula for 
        assessing, verifying, and potentially labeling a product's 
        greenhouse gas content, and for data quality requirements to 
        allow for product comparison;
            (6) create a means to--
                    (A) document best practices;
                    (B) ensure clarity and consistency;
                    (C) work with suppliers, manufacturers, and 
                retailers to encourage participation;
                    (D) ensure that protocols are consistent and 
                comparable across like products; and
                    (E) evaluate the effectiveness of the program;
            (7) make publicly available information on product carbon 
        content to ensure transparency;
            (8) provide for public outreach, including a consumer 
        education program to increase awareness;
            (9) develop training and education programs to help 
        businesses learn how to measure and communicate their carbon 
        footprint and easy tools and templates for businesses to use to 
        reduce cost and time to measure their products' carbon 
        lifecycle;
            (10) consult with the Secretary of Energy, the Secretary of 
        Commerce, the Federal Trade Commission, and other Federal 
        agencies, as necessary;
            (11) gather input from stakeholders through consultations, 
        public workshops or hearings with representatives of consumer 
        product manufacturers, consumer groups, and environmental 
        groups;
            (12) utilize systems for verification and product 
        certification that will ensure that claims manufacturers make 
        about their products are valid;
            (13) create a process for reviewing the accuracy of product 
        carbon label information and protecting the product carbon 
        label in the case of a change in the product's energy source, 
        supply chain, ingredients, or other factors, and specify the 
        frequency to which data should be updated; and
            (14) develop a standardized, easily understandable carbon 
        label, if appropriate, and create a process for responding to 
        inaccuracies and misuses of such a label.
    (c) Report to Congress.--Not later than 5 years after the program 
is established pursuant to subsection (b), the Administrator shall 
report to Congress on the effectiveness and impact of the program, the 
level of voluntary participation, and any recommendations for 
additional measures.
    (d) Definitions.--As used in this Act--
            (1) the term ``carbon content'' means the amount of 
        greenhouse gas emissions and their warming impact on the 
        atmosphere expressed in carbon dioxide equivalent associated 
        with a product's value chain;
            (2) the term ``carbon footprint'' means the level of 
        greenhouse gas emissions produced by a particular activity, 
        service, or entity; and
            (3) the term ``carbon lifecycle'' means the greenhouse gas 
        emissions that are released as part of the processes of 
        creating, producing, processing or manufacturing, modifying, 
        transporting, distributing, storing, using, recycling, or 
        disposing of goods and services.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator $5,000,000 for the study required by 
subsection (a) and $25,000,000 for each of fiscal years 2010 through 
2025 for the program required under subsection (b).