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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2651 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 2651

To require large publicly traded companies and significant emitters of 
    greenhouse gases to report their emissions to the Environmental 
               Protection Agency, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 11, 2007

  Mr. Engel introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To require large publicly traded companies and significant emitters of 
    greenhouse gases to report their emissions to the Environmental 
               Protection Agency, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Greenhouse Gas Accountability Act of 
2007''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) global climate change poses a significant and immediate 
        threat to national security, the United States economy, public 
        health and welfare, and the global environment;
            (2) having accurate data on greenhouse gas emissions is 
        essential in order to implement a greenhouse gas regulatory 
        regime;
            (3) compiling accurate information on the distribution and 
        processing of fuels and the manufacture of products that 
        contribute to global warming is important in crafting 
        legislation to address global warming; and
            (4) the public and investors have the right to know which 
        facilities, entities, and countries contribute to global 
        warming pollution.
    (b) Purpose.--The purpose of this Act is to establish a mandatory 
greenhouse gas inventory that--
            (1) is complete, consistent, transparent, and accurate;
            (2) will provide accurate data that can be used by public 
        and private entities to design efficient and effective 
        greenhouse gas emission reduction strategies;
            (3) will provide the appropriate high-quality data to be 
        used in any future greenhouse gas regulatory regime; and
            (4) will provide the public and investors information on 
        the scope, amount, and sources of greenhouse gas pollution.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Carbon dioxide equivalents.--The term ``carbon dioxide 
        equivalents'' means, for each greenhouse gas, the amount of 
        each such greenhouse gas that makes the same contribution to 
        global warming as one metric ton of carbon dioxide, as 
        determined by the Administrator.
            (3) Commission.--The term ``Commission'' means the 
        Securities and Exchange Commission.
            (4) Direct emissions.--The term ``direct emissions'' means 
        greenhouse gas emissions by an entity from a site, facility, or 
        equipment that is owned or controlled by that entity, and such 
        term includes--
                    (A) emissions from the generation of electricity, 
                heat, or steam resulting from combustion of fuels in 
                stationary sources such as boilers, furnaces, and 
                turbines;
                    (B) emissions from physical or chemical processing, 
                including those resulting from manufacture or 
                processing of chemicals and materials such as cement, 
                aluminum, and adipic acid, ammonia manufacture, and 
                waste processing;
                    (C) emissions from the transportation of materials, 
                products, waste, and employees resulting from the 
                combustion of fuels in entity-owned or controlled 
                mobile combustion sources such as trucks, trains, 
                ships, airplanes, buses, and cars;
                    (D) fugitive emissions resulting from intentional 
                or unintentional releases, including--
                            (i) equipment leaks from joints, seals, 
                        packing, and gaskets;
                            (ii) methane emissions from coal mines and 
                        venting;
                            (iii) hydrofluorocarbon emissions during 
                        the use of refrigeration and air conditioning 
                        equipment; and
                            (iv) methane leakages from gas transport;
                    (E) emissions from farming or raising of animals; 
                and
                    (F) any other type of direct emission the 
                Administrator determines appropriate.
            (5) Estimated product emissions.--The term ``estimated 
        product emissions'' means the greenhouse gas emissions of motor 
        vehicles, fuels, or any other product or material the 
        Administrator determines appropriate, with respect to the 
        portion of the life cycle of the product or material after the 
        product or material leaves the control of the reporting entity.
            (6) Greenhouse gas.--The term ``greenhouse gas'' means--
                    (A) carbon dioxide;
                    (B) methane;
                    (C) nitrous oxide;
                    (D) hydrofluorocarbons;
                    (E) perfluorocarbons;
                    (F) sulfur hexafluoride; or
                    (G) any other emission or chemical compound the 
                Administrator determines appropriate.
            (7) Indirect emissions.--The term ``indirect emissions'' 
        means greenhouse gas emissions that are the result of the 
        activities of an entity but are not its direct emissions, and 
        includes--
                    (A) emissions from the generation of electricity 
                acquired and consumed by the entity, as calculated 
                based on guidance provided by the Administrator;
                    (B) for an entity providing transmission and 
                distribution of electricity services, emissions 
                associated with the portion of the electricity that is 
                consumed or lost during the transmission or 
                distribution process, as calculated based on guidance 
                provided by the Administrator; and
                    (C) any other type of indirect emission the 
                Administrator determines appropriate.
            (8) Significant emitter.--The term ``significant emitter'' 
        means--
                    (A) an entity that directly or indirectly emits 
                over--
                            (i) 10,000 metric tons of greenhouse gas 
                        per year, measured in units of carbon dioxide 
                        equivalents, at one facility; or
                            (ii) 100,000 metric tons of greenhouse gas 
                        per year, measured in units of carbon dioxide 
                        equivalents, entity wide; or
                    (B) an entity that produces or imports--
                            (i) fuels, including fossil fuels, that, 
                        when combusted, will emit;
                            (ii) hydrofluorocarbons, perfluorocarbons, 
                        or sulfur hexafluoride that, when used, will 
                        emit; or
                            (iii) other greenhouse gases that, when 
                        used, will emit,
                over 100,000 metric tons of greenhouse gas per year, 
                measured in units of carbon dioxide equivalents.

SEC. 4. GREENHOUSE GAS EMISSIONS REPORTING PROGRAM.

    (a) Establishment of Reporting Program.--The Administrator shall 
establish a program to require each entity described in subsection (b) 
to annually report to the Administrator the greenhouse gas emissions of 
the entity for the previous year. In designing the program, the 
Administrator shall consider the standards and principles embodied in 
the WRI/WBCSD Greenhouse Gas Protocol's Corporate Accounting and 
Reporting Standard (revised edition). The program shall be designed 
to--
            (1) ensure the maximum practicable completeness and 
        accuracy of the greenhouse gas emissions database at the 
        Environmental Protection Agency;
            (2) be consistent with the standards, protocols, and 
        principles of the Climate Registry and the California Climate 
        Registry;
            (3) allow for electronic reporting of emissions;
            (4) maximize the ease of compliance for reporting entities; 
        and
            (5) minimize double counting of emissions.
    (b) Reporting Entities.--The following entities shall be required 
to report greenhouse gas emissions to the Administrator under the 
program established under subsection (a):
            (1) Any significant emitter.
            (2) Any issuer of securities (as such terms are defined in 
        section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c) that is required to file an annual report under section 
        13(a) or 15(d) of such Act (15 U.S.C. 78m(a), 78o(d)), with 
        annual revenues exceeding $10,000,000.
            (3) Any entity with annual revenues exceeding $10,000,000 
        that is engaged in the business of--
                    (A) automobiles and components thereof;
                    (B) aerospace and defense;
                    (C) chemicals;
                    (D) construction materials;
                    (E) electric utilities;
                    (F) energy equipment and services;
                    (G) oil, gas, and consumable fuels;
                    (H) metals and mining;
                    (I) paper and forest products; or
                    (J) transportation.
    (c) Identification of Appropriate Reporting Entity.--The 
Administrator shall consult with the Securities Exchange Commission as 
necessary to enable identification of entity boundaries. In determining 
entity boundaries, the Administrator shall consider the standards and 
principles embodied in the WRI/WBCSD Greenhouse Gas Protocol's 
Corporate Accounting and Reporting Standard (revised edition).
    (d) Nature of Reporting Requirement.--
            (1) Reporting by entity, country, and facility.--An entity 
        described in subsection (b)(1) shall report emissions by 
        entity, by country, and by facility. When reporting by 
        facility, entities are only required to report the emissions of 
        facilities which generate over 10,000 metric tons of greenhouse 
        gas per year, measured in units of carbon dioxide equivalents. 
        When reporting entity-wide emissions, entities shall include 
        all emissions, even those from facilities which generate less 
        than 10,000 metric tons of greenhouse gas per year, measured in 
        units of carbon dioxide equivalents.
            (2) Reporting by entity and country only.--An entity 
        described in subsection (b)(2) or (3), that is not an entity 
        described in subsection (b)(1), shall report emissions by 
        entity and by country.
            (3) Emissions reporting.--(A) Direct, indirect, and 
        estimated product emissions shall be reported separately.
            (B) Each type of direct emission described in subparagraph 
        (A), (B), (C), (D), or (E) of section 3(4), and each type of 
        direct emission added by the Administrator pursuant to 
        subparagraph (F) of such section 3(4), shall be reported 
        separately.
            (C) Each type of indirect emission described in 
        subparagraph (A) or (B) of section 3(7), and each type of 
        indirect emission added by the Administrator pursuant to 
        subparagraph (C) of such section 3(7), shall be reported 
        separately.
            (D) Emissions relating to each of the greenhouse gases 
        described in subparagraph (A), (B), (C), (D), (E), or (F) of 
        section 3(6), and emissions relating to each other emission or 
        chemical compound added by the Administrator pursuant to 
        subparagraph (G) of such section 3(6), shall be reported 
        separately.
            (4) Vehicle manufacturers.--An entity that manufactures or 
        imports motor vehicles shall separately report the estimated 
        product emissions of all vehicles manufactured or imported by 
        the entity, as calculated based on guidance provided by the 
        Administrator.
            (5) Fuels.--An entity that mines, extracts, refines, 
        distributes, processes, imports, or sells fuels shall 
        separately report the estimated product emissions resulting 
        from the use of all such fuels (including hydrogen fuels and 
        fuels derived from biomass), as calculated based on guidance 
        provided by the Administrator.
            (6) Biomass combustion.--Greenhouse gas emissions from the 
        combustion of biomass shall not be included as direct 
        emissions, but shall be reported separately as biomass 
        emissions.
            (7) De minimis emissions.--The Administrator may excuse 
        from the reporting requirements of the program under this 
        section any source of emissions that is responsible for only de 
        minimis amounts of greenhouse gas emissions.
    (e) Included Items.--A report submitted pursuant to this section--
            (1) shall identify the appropriate contact at the entity 
        responsible for preparing the report;
            (2) shall detail the tools and methods used in the 
        calculation of emission levels and preparation of the report;
            (3) may indicate whether the information contained in the 
        report has been verified by an independent third party, and if 
        it has been so verified, shall identify and include the results 
        of the independent third-party verification; and
            (4) shall be made available in electronic form.
    (f) Schedule of Program Development.--
            (1) Regulations.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall issue 
        regulations establishing the program under this section. Such 
        regulations shall include--
                    (A) tools and procedures, developed in consultation 
                with the Secretary of Energy, to assist entities in 
                compliance with the reporting requirements of the 
                program; and
                    (B) other guidance required under this section.
            (2) Effective date of reporting requirement.--Entities 
        shall be required to submit their first greenhouse gas 
        emissions report under this section not later than 6 months 
        after the issuance of regulations under paragraph (1).
    (g) Optional Reporting.--An entity may additionally report offsets, 
sequestration projects, or other efforts to mitigate its greenhouse gas 
emissions, pursuant to guidance provided by the Administrator.
    (h) Audits.--The Administrator may conduct an investigation or 
order an audit as necessary to verify the accuracy of information 
contained in a report submitted pursuant to this section.
    (i) Public Release.--The Administrator shall make available to the 
public all reports submitted pursuant to this section after the date 
which is 1 year after the effective date described in subsection 
(f)(2). After such date, the Administrator, upon receiving a report, 
shall make it available in electronic form within 30 days.
    (j) GAO Report.--
            (1) Accessibility.--The Administrator shall provide access 
        to the Government Accountability Office of any document or 
        information submitted to, generated by, or otherwise in the 
        possession of the Environmental Protection Agency pursuant to 
        this Act.
            (2) Review and reports.--
                    (A) In general.--Not later than January 1 of the 
                first year following the calendar year in which 
                regulations are issued under subsection (f)(1), and on 
                January 1 of each year thereafter for the first five 
                years and as requested thereafter by one of the 
                committees described in clause (i) or (ii), the 
                Government Accountability Office shall submit a report 
                under this subsection to--
                            (i) the Committee on Environment and Public 
                        Works of the Senate; and
                            (ii) the Committee on Energy and Commerce 
                        of the House of Representatives.
                    (B) Contents.--Each report submitted under 
                subparagraph (A) shall include--
                            (i) a review of the entities' compliance 
                        with the reporting requirements of this Act, 
                        including the accuracy of the information 
                        contained in such reports, based on a 
                        randomized review of companies required to 
                        report under this Act;
                            (ii) a determination of whether the 
                        regulations issued under subsection (f)(1) or 
                        this Act should be revised to improve 
                        compliance and accuracy of reporting; and
                            (iii) a determination of whether the 
                        regulations and this Act are effective in 
                        inventorying greenhouse gases.
    (k) Penalties.--A person who violates any requirement of this Act 
shall be liable to the United States for a civil penalty in an amount 
not to exceed $25,000 for each such violation for each day a violation 
continues. The Administrator may assess penalties on a per entity or 
per facility basis for reports not submitted or submitted not 
correctly, which may include per day penalties, depending on the 
circumstances of the violation. Violations may be corrected by 
submitting a corrected report.
    (l) Report to Congress.--Not later than 1 year after the effective 
date described in subsection (f)(2), the Administrator shall transmit 
to the Congress a report containing--
            (1) an assessment, prepared after consultation with the 
        reporting entities, of the effectiveness of the implementation 
        of this section;
            (2) a description of any modifications the Administrator 
        intends to make to the program under this section; and
            (3) recommendations on whether a program to certify 
        independent third parties described in subsection (e)(3) would 
        be feasible and useful.

SEC. 5. NATIONAL GREENHOUSE GAS EMISSIONS DATABASE.

    (a) Establishment.--The Administrator shall establish a public 
website containing national greenhouse gas emissions database using 
data obtained pursuant to section 4. Such website database shall be 
designed to correlate the data so as to be most useful for 
policymakers, government agencies, investors, and researchers. The 
website database shall allow the public, investors, and policymakers 
to--
            (1) search and aggregate greenhouse gas releases by 
        greenhouse gas;
            (2) ascertain through a single search the total greenhouse 
        gas releases of an entity, by reporting year;
            (3) download data from the database;
            (4) determine the emissions of individual entities, 
        industries, and geographic areas; and
            (5) use the database for policymaking and regulatory 
        purposes.
    (b) Availability to Public.--The database established under 
subsection (a) shall be made available to the public 1 year after the 
effective date described in section 4(f)(2).

SEC. 6. DISCLOSURES TO SHAREHOLDERS BY PUBLICLY TRADED COMPANIES.

    (a) Summary Required in Financial Reports.--Not later than 1 year 
after the date of enactment of this Act, the Commission shall revise 
its regulations under the Securities Exchange Act of 1934 to require 
that each annual report filed by an issuer of securities as required by 
section 13(a) or 15(d) of such Act (15 U.S.C. 78m(a), 78o(d)) contain, 
in a form prescribed by the Commission after consultation with the 
Administrator--
            (1) a table of the greenhouse gas emission of the issuer 
        over the previous year;
            (2) a short summary of the nature of such emissions and--
                    (A) the estimated financial exposure of the issuer 
                because of the emissions of the issuer; and
                    (B) the potential economic impacts of climate 
                change on the interests of the issuer;
            (3) a link or address by which to obtain access to the 
        complete greenhouse gas emission report to the Administrator 
        under section 4 of this Act; and
            (4) a statement of whether or not the issuer has had such 
        greenhouse gas emission report independently verified.
    (b) Interim Interpretive Release.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Commission shall issue an 
        interpretive release clarifying that under items 101 and 303 of 
        Regulation S-K of the Commission under part 229 of title 17, 
        Code of Federal Regulations (as in effect on the date of 
        enactment of this Act)--
                    (A) the commitments of the United States to reduce 
                emissions of global warming pollution under the United 
                Nations Framework Convention on Climate Change, done at 
                New York on May 9, 1992, are considered to be a 
                material effect; and
                    (B) global warming constitutes a known trend.
            (2) Period of effectiveness.--The interpretive release 
        issued under paragraph (1) shall remain in effect until the 
        effective date of the final regulations promulgated under 
        subsection (a).
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