II

107TH CONGRESS

1ST SESSION S. 1294

To establish a new national policy designed to manage the risk of potential

climate change, ensure long-term energy security, and to strengthen

provisions in the Energy Policy Act of 1992 and the Federal Nonnuclear

Energy Research and Development Act of 1974 with respect to potential

climate change.

IN THE SENATE OF THE UNITED STATES

AUGUST 1, 2001

Mr. MURKOWSKI (for Mr. CRAIG, Mr. HAGEL, Mr. DOMENICI, Mr. ROBERTS,

and Mr. BOND) introduced the following bill; which was read twice and

referred to the Committee on Energy and Natural Resources

A BILL

To establish a new national policy designed to manage the

risk of potential climate change, ensure long-term energy

security, and to strengthen provisions in the Energy Policy Act of 1992 and the Federal Nonnuclear Energy

Research and Development Act of 1974 with respect

to potential climate change.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Climate Change Risk

5 Management Act of 2001’’.
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1 SEC. 2. FINDINGS.

2 Congress finds that—

3 (1) human activities, namely energy production

4 and use, contribute to increasing concentrations of

5 greenhouse gases in the atmosphere, which may ulti6 mately contribute to global climate change beyond

7 that resulting from natural variability;

8 (2) although the science of global climate

9 change has been advanced in the past ten years, the

10 timing and magnitude of climate change-related im11 pacts on the United States cannot currently be pre12 dicted with any reasonable certainty;

13 (3) furthermore, a recent National Research

14 Council review of climate change science suggests

15 that without an understanding of the sources and

16 degree of uncertainty regarding climate change and

17 its impacts, decision-makers could fail to define the

18 best ways to manage the risk of climate change;

19 (4) despite this uncertainty, the potential im20 pacts from human-induced climate change pose a

21 substantial risk that should be managed in a respon22 sible manner;

23 (5) given that the bulk of greenhouse gas emis24 sions from human activities result from energy pro25 duction and use, national and international energy

26 policy decisions made now and in the longer-term fu-
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1 ture will influence the extent and timing of any cli2 mate change and resultant impacts from climate

3 change later this century;

4 (6) the characteristics of greenhouse gases and

5 the physical nature of the climate system require

6 that stabilization of atmospheric greenhouse gas con7 centrations at any future level must be a long-term

8 effort undertaken on a global basis;

9 (7) the characteristics of existing energy-related

10 infrastructure and capital suggest that effective

11 greenhouse gas management efforts will depend on

12 the development of long-term, cost-effective tech13 nologies and practices that can be demonstrated and

14 deployed commercially in the United States and

15 around the world;

16 (8) environmental progress, energy security,

17 economic prosperity, and satisfaction of basic human

18 needs are interrelated, particularly in developing

19 countries;

20 (9) developing countries will constitute the

21 major source of greenhouse gas emissions in the

22 21st century and the major source of increases in

23 such emissions;

24 (10) any program to address the risks of cli25 mate change that does not fully include developing
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1 nations as integral participants will be ineffective;

2 and

3 (11) a new long-term, technology-based, cost-ef4 fective, flexible, and global strategy to ensure long5 term energy security and manage the risk of climate

6 change is needed, and should be promoted by the

7 United States in its domestic and international ac8 tivities in this regard.

9 SEC. 3. DEFINITIONS.

10 Title XVI of the Energy Policy Act of 1992 (42

11 U.S.C. 13381, et seq.) is amended by inserting before sec12 tion 1601 the following:

13 ‘‘SEC. 1600. DEFINITIONS.

14 ‘‘(a) AGRICULTURAL ACTIVITY.—The term ‘agricul15 tural activity’ means livestock production, cropland cul16 tivation, biogas and other waste material recovery and nu17 trient management.

18 ‘‘(b) CLIMATE SYSTEM.—The term ‘climate system’

19 means the totality of the atmosphere, hydrosphere, bio20 sphere and geosphere and their interactions.

21 ‘‘(c) CLIMATE CHANGE.—The term ‘climate change’

22 means a change in the state of the climate system attrib23 uted directly or indirectly to human activity which is in

24 addition to natural climate variability observed over com25 parable time periods.
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1 ‘‘(d) EMISSIONS.—The term ‘emissions’ means the

2 net release of greenhouse gases and/or their precursors

3 into the atmosphere over a specified area and period of

4 time, after taking into account any reductions due to

5 greenhouse gas sequestration.

6 ‘‘(e) GREENHOUSE GASES.—The term ‘greenhouse

7 gases’ means those gaseous and aerosol constituents of the

8 atmosphere, both natural and anthropogenic, that absorb

9 and re-emit infrared radiation.

10 ‘‘(f) SEQUESTRATION.—The term ‘sequestration’

11 means any process, activity or mechanism which removes

12 a greenhouse gas or its precursor from the atmosphere

13 or from emissions streams.

14 ‘‘(g) FOREST PRODUCTS.—The term ‘forest prod15 ucts’ means all products or goods manufactured from

16 trees.

17 ‘‘(h) FORESTRY ACTIVITY.—

18 ‘‘(1) IN GENERAL.—The term ‘forestry activity’

19 means any ownership or management action that

20 has a discernible impact on the use and productivity

21 of forests.

22 ‘‘(2) INCLUSIONS.—Forestry activities include,

23 but are not limited to, the establishment of trees on

24 an area not previously forested, the establishment of

25 trees on an area previously forested if a net carbon
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1 benefit can be demonstrated, enhanced forest man2 agement (including thinning, stand improvement,

3 fire protection, weed control, nutrient application,

4 pest management, and other silvicultural practices),

5 forest protection or conservation if a net carbon ben6 efit can be demonstrated, and production or use of

7 biomass energy (including the use of wood, grass or

8 other biomass in lieu of fossil fuel).

9 ‘‘(3) EXCLUSIONS.—The term ‘forestry activity’

10 does not include a land use change associated with—

11 ‘‘(A) an act of war; or

12 ‘‘(B) an act of nature, including floods,

13 storms, earthquakes, fires, hurricanes, and tor14 nadoes.’’.

15 SEC. 4. NATIONAL CLIMATE CHANGE STRATEGY.

16 (a) IN GENERAL.—Section 1601 of the Energy Policy

17 Act of 1992 (42 U.S.C. 13381) is amended to read as

18 follows:

19 ‘‘SEC. 1601. NATIONAL CLIMATE CHANGE STRATEGY.

20 ‘‘(a) IN GENERAL.—The President, in consultation

21 with appropriate Federal agencies and the Congress, shall

22 develop and implement a national strategy to manage the

23 risks posed by potential climate change.

24 ‘‘(b) GOAL.—The strategy shall be consistent with

25 the United Nations Framework Convention on Climate
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1 Change, done at New York on May 9, 1992, in a manner

2 that—

3 ‘‘(1) does not result in serious harm to the U.S.

4 economy;

5 ‘‘(2) adequately provides for the energy security

6 of the U.S.;

7 ‘‘(3) establishes and maintains U.S. leadership

8 with respect to climate change-related scientific re9 search, development and deployment of advanced en10 ergy technology; and

11 ‘‘(4) will result in a reduction in the ratio that

12 the net U.S. greenhouse gas emissions bears to the

13 U.S. gross domestic production.

14 ‘‘(c) ELEMENTS.—The strategy shall include short15 term and long-term strategies, programs and policies

16 that—

17 ‘‘(1) enhance the scientific knowledge base for

18 understanding and evaluation of natural and human19 induced climate change, including the role of climate

20 feedbacks and all climate forcing agents;

21 ‘‘(2) improve scientific observation, modeling,

22 analysis and prediction of climate change and its im23 pacts, and the economic, social and environmental

24 risks posed by such impacts;
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1 ‘‘(3) assess the economic, social, and environ2 mental costs and benefits of current and potential

3 options to reduce, avoid, or sequester greenhouse gas

4 emissions;

5 ‘‘(4) develop and implement market-directed

6 policies that reduce, avoid or sequester greenhouse

7 gas emissions, including:

8 ‘‘(A) cost-effective Federal, State, tribal,

9 and local policies, programs, standards and in10 centives;

11 ‘‘(B) policies and incentives to speed devel12 opment, deployment and consumer adoption of

13 advanced energy technologies in the U.S. and

14 throughout the world; and

15 ‘‘(C) removal of regulatory barriers that

16 impede the development, deployment and con17 sumer adoption of advanced energy technologies

18 in the U.S. and throughout the world; and

19 ‘‘(D) participation in international institu20 tions, or the support of international activities,

21 that are established or conducted to facilitate

22 effective measures to implement the United Na23 tions Framework Convention on Climate

24 Change;
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1 ‘‘(5) advance areas where bilateral or multilat2 eral cooperation and investment would lead to adop3 tion of advanced technologies for use within devel4 oping countries to reduce, avoid or sequester green5 house gas emissions;

6 ‘‘(6) identify activities and policies that provide

7 for adaptation to natural and human-induced cli8 mate change;

9 ‘‘(7) recommend specific legislative or adminis10 trative activities, giving preference to cost-effective

11 and technologically feasible measures that will—

12 ‘‘(A) result in a reduction in the ratio that

13 the net U.S. greenhouse gas emissions bears to

14 the U.S. gross domestic product;

15 ‘‘(B) avoid adverse short-term and long16 term economic and social impacts on the United

17 States; and

18 ‘‘(C) foster such changes in institutional

19 and technology systems as are necessary to

20 mitigate or adapt to climate change and its im21 pacts in the short-term and the long-term; and

22 ‘‘(8) designate federal, state, tribal or local

23 agencies responsible for carrying out recommended

24 activities and programs, and identify interagency en-
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1 tities or activities that may be needed to coordinate

2 actions carried out consistent with this strategy.

3 ‘‘(d) CONSULTATION.—This strategy shall be devel4 oped in a manner that provides for meaningful participa5 tion by, and consultation among, Federal, State, tribal,

6 and local government agencies, non-governmental organi7 zations, academia, scientific bodies, industry, the public,

8 and other interested parties.

9 ‘‘(e) BIANNUAL REPORT.—No later than one year

10 after the date of enactment of this section, and at the end

11 of each second year thereafter, the President shall submit

12 to Congress a report that includes—

13 ‘‘(1) a description of the national climate

14 change strategy and its goals and Federal programs

15 and activities intended to carry out this strategy

16 through mitigation, adaptation, and scientific re17 search activities;

18 ‘‘(2) an evaluation of Federal programs and ac19 tivities implemented as part of this strategy against

20 the goals and implementation dates outlined in the

21 strategy;

22 ‘‘(3) a description of changes to Federal pro23 grams or activities implemented to carry out this

24 strategy, in light of new knowledge of climate

25 change and its impacts and costs or benefits, or
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1 technological capacity to improve mitigation or adap2 tation activities;

3 ‘‘(4) a description of all Federal spending on

4 climate change for the current fiscal year and each

5 of the five years previous, categorized by Federal

6 agency and program function (including scientific re7 search, energy research and development, regulation,

8 education and other activities);

9 ‘‘(5) an estimate of the budgetary impact for

10 the current fiscal year and each of the five years

11 previous of any Federal tax credits, tax deductions

12 or other incentives claimed by taxpayers that are di13 rectly or indirectly attributable to greenhouse gas

14 emissions reduction activities; and

15 ‘‘(6) an estimate of the amount, in metric tons,

16 of greenhouse gas emissions reduced, avoided or se17 questered directly or indirectly as a result of each

18 spending program or tax credit, deduction or other

19 incentive for the current fiscal year and each of the

20 five years previous.

21 ‘‘(f) REVIEW BY NATIONAL ACADEMIES.—

22 ‘‘(1) IN GENERAL.—Not later than 90 days

23 after the date of publication of each biannual report

24 as directed by this section, the President shall com25 mission the National Academies to conduct a review
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1 of the national climate change strategy and imple2 mentation plan required by this section.

3 ‘‘(2) CRITERIA.—The National Academies’ re4 view shall evaluate the goals and recommendations

5 contained in the national climate change strategy re6 port in light of—

7 ‘‘(A) new or improved scientific knowledge

8 regarding climate change and its impacts;

9 ‘‘(B) new understanding of human social

10 and economic responses to climate change, and

11 responses of natural ecosystems to climate

12 change;

13 ‘‘(C) advancements in energy technologies

14 that reduce, avoid, or sequester greenhouse

15 gases or otherwise mitigate the risks of climate

16 change;

17 ‘‘(D) new or revised understanding of eco18 nomic costs and benefits of mitigation or adap19 tation activities; and

20 ‘‘(E) the existence of alternative policy op21 tions that could achieve the strategy goals at

22 lower economic, environmental, or social cost.

23 ‘‘(3) REPORT.—The National Academies shall

24 prepare and submit to Congress and the President

25 a report concerning the results of such review, along
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1 with any recommendations as appropriate. Such re2 port shall also be made available to the public.

3 ‘‘(4) DEFINITION.—For the purposes of this

4 Section, the term ‘‘National Academies’’ means the

5 National Research Council, the National Academy of

6 Sciences, the National Academy of Engineering, and

7 the Institute of Medicine.’’.

8 (b) CONFORMING AMENDMENT.—Section 1103(b) of

9 the Global Climate Protection Act of 1987 (15 U.S.C.

10 2901) is amended by inserting ‘‘, the Department of En11 ergy, and other Federal agencies as appropriate’’ after

12 ‘‘Environmental Protection Agency’’.

13 SEC. 5. CLIMATE TECHNOLOGY RESEARCH, DEVELOPMENT,

14 DEMONSTRATION AND DEPLOYMENT PRO15 GRAM.

16 (a) IN GENERAL.—Section 1604 of the Energy Policy

17 Act of 1992 (42 U.S.C. 13384) is amended to read as

18 follows:

19 ‘‘SEC. 1604. CLIMATE TECHNOLOGY RESEARCH, DEVELOP20 MENT, DEMONSTRATION AND DEPLOYMENT

21 PROGRAM.

22 ‘‘(a) IN GENERAL.—The Secretary, in consultation

23 with the Advisory Board established under section 2302,

24 shall establish a long-term Climate Technology Research,
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1 Development, Demonstration, and Deployment Program,

2 in accordance with sections 3001 and 3002.

3 ‘‘(b) PROGRAM OBJECTIVES.—The program shall

4 conduct a long-term research, development, demonstration

5 and deployment program to foster technologies and prac6 tices that—

7 ‘‘(1) reduce or avoid anthropogenic emissions of

8 greenhouse gases;

9 ‘‘(2) remove and sequester greenhouse gases

10 from emissions streams; and

11 ‘‘(3) remove and sequester greenhouse gases

12 from the atmosphere.

13 ‘‘(c) PROGRAM PLAN.—Not later than 1 year after

14 the date of enactment of this Act, the Secretary shall pre15 pare and submit to the Congress a 10-year program plan

16 to guide activities under this section. Thereafter, the Sec17 retary shall biennially update and resubmit the program

18 plan to the Congress. In preparing the program plan, the

19 Secretary shall:

20 ‘‘(1) include quantitative technology perform21 ance and carbon emissions reduction goals, schedule

22 milestones, technology approaches, Federal funding

23 requirements, and non-Federal cost sharing require24 ments;
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1 ‘‘(2) consult with appropriate representatives of

2 industry, institutions of higher education, Depart3 ment of Energy national laboratories, and profes4 sional, scientific and technical societies;

5 ‘‘(3) take into consideration how the Federal

6 Government, acting through the Secretary, can be

7 effective in ensuring the availability of such tech8 nologies when they are needed and how the Federal

9 Government can most effectively cooperate with the

10 private sector in the accomplishment of the goals set

11 forth in subsection (b); and

12 ‘‘(4) consider how activities funded under the

13 program can be complementary to, and not duplica14 tive of, existing research and development activities

15 within the Department.

16 ‘‘(d) SOLICITATION.—Not later than 1 year after the

17 date of submission of the 10-year program plan, the Sec18 retary shall solicit proposals for conducting activities con19 sistent with the 10-year program plan and select one or

20 more proposals not later than 180 days after such solicita21 tions.

22 ‘‘(e) PROPOSALS.—Proposals may be submitted by

23 applicants or consortia from industry, institutions of high24 er education, or Department of Energy national labora-
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1 tories. At minimum, each proposal shall also include the

2 following:

3 ‘‘(1) a multi-year management plan that out4 lines how the proposed research, development, dem5 onstration and deployment activities will be carried

6 out;

7 ‘‘(2) quantitative technology goals and green8 house gas emission reduction targets that can be

9 used to measure performance against program objec10 tives;

11 ‘‘(3) the total cost of the proposal for each year

12 in which funding is requested, and a breakdown of

13 those costs by category;

14 ‘‘(4) evidence that the applicant has in exist15 ence or has access to—

16 ‘‘(A) the technical capability to enable it to

17 make use of existing research support and fa18 cilities in carrying out the research objectives of

19 the proposal;

20 ‘‘(B) a multi-disciplinary research staff ex21 perienced in technologies or practices able to se22 quester, avoid, or capture greenhouse gas emis23 sions;

24 ‘‘(C) access to facilities and equipment to

25 enable the conduct of laboratory-scale testing or
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1 demonstration of technologies or related proc2 esses undertaken through the program; and

3 ‘‘(D) commitment for matching funds and

4 other resources from non-Federal sources, in5 cluding cash, equipment, services, materials, ap6 propriate technology transfer activities, and

7 other assets directly related to the cost of the

8 proposal;

9 ‘‘(5) evidence that the proposed activities are

10 supplemental to, and not duplicative of, existing re11 search and development activities carried out, fund12 ed, or otherwise supported by the Department;

13 ‘‘(6) a description of the technology transfer

14 mechanisms and industry partnerships that the ap15 plicant will use to make available research results to

16 industry and to other researchers;

17 ‘‘(7) a statement whether the unique capabili18 ties of Department of Energy national laboratories

19 warrant collaboration with those laboratories, and

20 the extent of any such collaboration proposed; and

21 ‘‘(8) demonstrated evidence of the ability of the

22 applicant to undertake and complete the proposed

23 project, including the successfully introduction of the

24 technology into commerce.
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1 ‘‘(f) SELECTION OF PROPOSALS.—From the pro2 posals submitted, the Secretary shall select for funding

3 one or more proposals that will best accomplish the pro4 gram objectives outlined in this section.

5 ‘‘(g) ANNUAL REPORT.—The Secretary shall prepare

6 and submit an annual report to Congress that—

7 ‘‘(1) demonstrates that the program objectives

8 are adequately focused, peer-reviewed for merit, and

9 not unnecessarily duplicative of the science and tech10 nology research being conducted by other Federal

11 agencies and programs,

12 ‘‘(2) states whether the program as conducted

13 in the prior year addresses an adequate breadth and

14 range of technologies and solutions to address an15 thropogenic climate change; and

16 ‘‘(3) evaluates the quantitative progress of

17 funded proposals towards the program objectives

18 outlined in this section, and the technology and

19 greenhouse gas emission reduction, avoidance or se20 questration goals as described in their respective

21 proposals.

22 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated to carry out this subtitle

24 $200,000,000 for each of fiscal years 2002 through 2011,

25 to remain available until expended.’’.
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1 ‘‘(b) CONFORMING AMENDMENTS.—Section 6 of the

2 Federal Nonnuclear Energy Research and Development

3 Act of 1974 (42 U.S.C. 5905) is amended—

4 (1) in subsection (a)—

5 (A) in paragraph (2), by striking ‘‘and’’ at

6 the end;

7 (B) in paragraph (3) by striking the period

8 at the end and inserting ’’, and ’’; and

9 (C) by adding at the end the following:

10 ‘‘(4) solutions to the effective management of

11 greenhouse gas emissions in the long term by the de12 velopment of technologies and practices designed

13 to—

14 ‘‘(A) reduce or avoid anthropogenic emis15 sions of greenhouse gases;

16 ‘‘(B) remove and sequester greenhouse

17 gases from emissions streams; and

18 ‘‘(C) remove and sequester greenhouse

19 gases from the atmosphere. ’’; and

20 (2) in subsection (b)—

21 (A) in paragraph (2), by striking ‘‘sub22 section (a)(1) through (3)’’ and inserting

23 ‘‘paragraphs (1) through (4) of subsection (a)’’;

24 and

25 (B) in paragraph (3)—
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1 (i) in subparagraph (R), by striking

2 ‘‘and’’ at the end;

3 (ii) in subparagraph (S), by striking

4 the period at the end and inserting ’’;

5 and’’; and

6 (iii) by adding at the end the fol7 lowing:

8 ‘‘(T) to pursue a long-term climate tech9 nology strategy designed to demonstrate a vari10 ety of technologies by which stabilization of

11 greenhouse gases might be best achieved, in12 cluding accelerated research, development, dem13 onstration and deployment of—

14 ‘‘(i) renewable energy systems;

15 ‘‘(ii) advanced fossil energy tech16 nology;

17 ‘‘(iii) advanced nuclear power plant

18 design;

19 ‘‘(iv) fuel cell technology for residen20 tial industrial and transportation applica21 tions;

22 ‘‘(v) carbon sequestration practices

23 and technologies, including agricultural

24 and forestry practices that store and se25 quester carbon;
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1 ‘‘(vi) efficient electrical generation,

2 transmission and distribution technologies;

3 and

4 ‘‘(vii) efficient end use energy tech5 nologies.’’.

6 SEC. 6. INTERNATIONAL ENERGY TECHNOLOGY DEPLOY7 MENT PROGRAM.

8 Section 1608 of Energy Policy Act of 1992 (42

9 U.S.C. 13387) is amended by striking subsection (l) and

10 inserting the following:

11 ‘‘(l) INTERNATIONAL ENERGY TECHNOLOGY DE12 PLOYMENT PROGRAM.—

13 ‘‘(1) DEFINITIONS.—In this subsection:

14 ‘‘(A) INTERNATIONAL ENERGY DEPLOY15 MENT PROJECT.—The term ‘‘international en16 ergy deployment project’’ means a project to

17 construct an energy production facility outside

18 the United States—

19 ‘‘(i) the output of which will be con20 sumed outside the United States; and

21 ‘‘(ii) the deployment of which will re22 sult in a greenhouse gas reduction per unit

23 of energy produced when compared to the

24 technology that would otherwise be imple25 mented of—
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1 ‘‘(I) 10 percentage points or

2 more, in the case of a unit placed in

3 service before January 1, 2010;

4 ‘‘(II) 20 percentage points or

5 more, in the case of a unit placed in

6 service after December 31, 2009, and

7 before January 1, 2020; or

8 ‘‘(III) 30 percentage points or

9 more, in the case of a unit placed in

10 service after December 31, 2019, and

11 before January 2, 2030.

12 ‘‘(B) QUALIFYING INTERNATIONAL EN13 ERGY DEPLOYMENT PROJECT.—The term

14 ‘‘qualifying international energy deployment

15 project’’ means an international energy deploy16 ment project that—

17 ‘‘(i) is submitted by a United States

18 firm to the Secretary in accordance with

19 procedures established by the Secretary by

20 regulation;

21 ‘‘(ii) uses technology that has been

22 successfully developed or deployed in the

23 United States, or in another country as a

24 result of a partnership with a company

25 based in the United States;
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1 ‘‘(iii) meets the criteria of subsection

2 (k);

3 ‘‘(iv) is approved by the Secretary,

4 with notice of the approval being published

5 in the Federal Register; and

6 ‘‘(v) complies with such terms and

7 conditions as the Secretary establishes by

8 regulation.

9 ‘‘(C) UNITED STATES.—The term ‘United

10 States’, when used in a geographical sense,

11 means the 50 States, the District of Columbia,

12 Puerto Rico, Guam, the Virgin Islands, Amer13 ican Samoa, and the Commonwealth of the

14 Northern Mariana Islands.

15 ‘‘(2) PILOT PROGRAM FOR FINANCIAL ASSIST16 ANCE.—

17 ‘‘(A) IN GENERAL.—Not later than 180

18 days after the date of enactment of this Act,

19 the Secretary shall, by regulation, provide for a

20 pilot program for financial assistance for quali21 fying international energy deployment projects.

22 ‘‘(B) SELECTION CRITERIA.—After con23 sultation with the Secretary of State, the Sec24 retary of Commerce, and the United States

25 Trade Representative, the Secretary shall select
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1 projects for participation in the program based

2 solely on the criteria under this title and with3 out regard to the country in which the project

4 is located.

5 ‘‘(C) FINANCIAL ASSISTANCE.—

6 ‘‘(i) IN GENERAL.—A United States

7 firm that undertakes a qualifying inter8 national energy deployment project that is

9 selected to participate in the pilot program

10 shall be eligible to receive a loan or a loan

11 guarantee from the Secretary.

12 ‘‘(ii) RATE OF INTEREST.—The rate

13 of interest of any loan made under clause

14 (i) shall be equal to the rate for Treasury

15 obligations then issued for periods of com16 parable maturities.

17 ‘‘(iii) AMOUNT.—The amount of a

18 loan or loan guarantee under clause (i)

19 shall not exceed 50 percent of the total

20 cost of the qualified international energy

21 deployment project.

22 ‘‘(iv) DEVELOPED COUNTRIES.—

23 Loans or loan guarantees made for

24 projects to be located in a developed coun25 try, as listed in Annex I of the United Na-
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1 tions Framework Convention on Climate

2 Change, shall require at least a 50 percent

3 contribution towards the total cost of the

4 loan or loan guarantee by the host country.

5 ‘‘(v) DEVELOPING COUNTRIES.—

6 Loans or loan guarantees made for

7 projects to be located in a developing coun8 try (those countries not listed in Annex I

9 of the United Nations Framework Conven10 tion on Climate Change) shall require at

11 least a 10 percent contribution towards the

12 total cost of the loan or loan guarantee by

13 the host country.

14 ‘‘(vi) CAPACITY BUILDING RE15 SEARCH.—Proposals made for projects to

16 be located in a developing country may in17 clude a research component intended to

18 build technological capacity within the host

19 country. Such research must be related to

20 the technologies being deployed and must

21 involve both an institution in the host

22 country and an industry, university or na23 tional laboratory participant from the

24 United States. The host institution must
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1 contribute at least 5 percent of funds for

2 the capacity building research.

3 ‘‘(D) COORDINATION WITH OTHER PRO4 GRAMS.—A qualifying international energy de5 ployment project funded under this section shall

6 not be eligible as a qualifying clean coal tech7 nology under section 415 of the Clean Air Act

8 (42 U.S.C. 7651n).

9 ‘‘(E) REPORT.—Not later than 5 years

10 after the date of enactment of this section, the

11 Secretary shall submit to the President and the

12 Congress a report on the results of the pilot

13 projects.

14 ‘‘(F) RECOMMENDATION.—Not later than

15 60 days after receiving the report under sub16 paragraph (E), the Secretary shall submit to

17 Congress a recommendation concerning whether

18 the financial assistance program under this sec19 tion should be continued, expanded, reduced, or

20 eliminated.

21 ‘‘(G) AUTHORIZATION OF APPROPRIA22 TIONS.—There are authorized to be appro23 priated to carry out this section $100,000,000

24 for each of fiscal years 2002 through 2011, to

25 remain available until expended.’’.
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1 SEC. 7. NATIONAL GREENHOUSE GAS EMISSIONS REG2 ISTRY.

3 Section 1605 of the Energy Policy Act of 1992 (42

4 U.S.C. 13385) is amended—

5 (1) by amending the second sentence of sub6 section (a) to read as follows: ‘‘The Secretary shall

7 annually update and analyze such inventory using

8 available data, including, beginning in calendar year

9 2001, information collected as a result of voluntary

10 reporting under subsection (b). The inventory shall

11 identify for calendar year 2001 and thereafter the

12 amount of emissions reductions attributed to those

13 reported under subsection (b).’’;

14 (2) by amending subsection (b)(1) (B) and (C)

15 to read as follows—

16 ‘‘(B) annual reductions or avoidance of

17 greenhouse gas emissions and carbon sequestra18 tion achieved through any measures, including

19 agricultural activities, co-generation, appliance

20 efficiency, energy efficiency, forestry activities

21 that increase carbon sequestration stocks (in22 cluding the use of forest products), fuel switch23 ing, management of crop lands, grazing lands,

24 grasslands and dry lands, manufacture or use

25 of vehicles with reduced greenhouse gas emis26 sions, methane recovery, ocean seeding, use of
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1 renewable energy, chlorofluorocarbon capture

2 and replacement, and power plant heat rate im3 provement; and

4 ‘‘(C) reductions in, or avoidance of, green5 house gas emissions achieved as a result of vol6 untary activities domestically, or internation7 ally, plant or facility closings, and State or Fed8 eral requirements.’’.

9 (3) by striking in the first sentence of sub10 section (b)(2) the word ‘‘entities’’ and inserting

11 ‘‘persons or entities’’ and in the second sentence of

12 such subsection, by inserting after ‘‘Persons’’ the

13 words ‘‘or entities’’;

14 (4) by inserting in the second sentence of sub15 section (b)(4) the words ‘‘persons or’’ before ‘‘enti16 ty’’;

17 (5) by adding after subsection (b)(4) the fol18 lowing new paragraphs—

19 ‘‘(5) RECOGNITION OF VOLUNTARY GREEN20 HOUSE GAS EMISSIONS REDUCTION, AVOIDANCE, OR

21 SEQUESTRATION.—To encourage new and increased

22 voluntary efforts to reduce, avoid, or sequester emis23 sions of greenhouse gases, the Secretary shall de24 velop and establish a program of giving annual pub25 lic recognition to all reporting persons and entities
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1 demonstrating voluntarily achieved greenhouse gases

2 reduction, avoidance, or sequestration, pursuant to

3 the voluntary collections and reporting guidelines

4 issued under this section. Such recognition shall be

5 based on the information certified, subject to section

6 1001 of title 18, United States Code, by such per7 sons or entities for accuracy as provided in para8 graph 2 of this subsection, and shall include such in9 formation reported prior to the enactment of this

10 paragraph. At a minimum such recognition shall an11 nually be published in the Federal Register.

12 ‘‘(6) REVIEW AND REVISION OF GUIDE13 LINES.—

14 ‘‘(A) IN GENERAL.—Not later than 1 year

15 after the date of enactment of this subpara16 graph, the Secretary of Energy, acting through

17 the Administrator of the Energy Information

18 Administration, shall conduct a review of guide19 lines established under this section regarding

20 the accuracy and reliability of reports of green21 house gas reductions and related information.

22 ‘‘(B) CONTENTS.—The review shall include

23 the consideration of the need for any amend24 ments to such guidelines, including—
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1 ‘‘(i) a random or other verification

2 process using the authorities available to

3 the Secretary under other provisions of

4 law;

5 ‘‘(ii) a range of reference cases for re6 porting of project-based activities in sec7 tors, including the measures specified in

8 subparagraph (1)(B) of this subsection,

9 and the inclusion of benchmark and de10 fault methodologies and best practices for

11 use as reference cases for eligible projects;

12 ‘‘(iii) issues, such as comparability,

13 that are associated with the option of re14 porting on an entity-wide basis or on an

15 activity or project basis; and

16 ‘‘(iv) safeguards to address the possi17 bility of reporting, inadvertently or other18 wise, of some or all of the same greenhouse

19 gas emissions reductions by more than one

20 reporting entity or person and to make

21 corrections where necessary;

22 ‘‘(v) provisions that encourage entities

23 or persons to register their certified, by ap24 propriate and credible means, baseline

25 emissions levels on an annual basis, taking
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1 into consideration all of their reports made

2 under this section prior to the enactment

3 of this paragraph;

4 ‘‘(vi) procedures and criteria for the

5 review and registration of ownership of all

6 or part of any reported and verified emis7 sions reductions relative to a reported

8 baseline emissions level under this section;

9 and

10 ‘‘(vii) accounting provisions needed to

11 allow for changes in registration of owner12 ship of emissions reductions resulting from

13 a voluntary private transaction between re14 porting entities or persons.

15 For the purposes of this paragraph, the term

16 ‘reductions’ means any and all activities taken

17 by a reporting entity or person that reduce,

18 avoid or sequester greenhouse gas emissions, or

19 sequester greenhouse gases from the atmos20 phere.

21 ‘‘(C) ECONOMIC ANALYSIS.—The review

22 should consider the costs and benefits of any

23 such amendments, the effect of such amend24 ments on participation in this program, includ25 ing by farmers and small businesses, and the
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1 need to avoid creating undue economic advan2 tages or disadvantages for persons or entities in

3 the private sector. The review should provide,

4 where appropriate, a range of reasonable op5 tions that are consistent with the voluntary na6 ture of this section and that will help further

7 the purposes of this section.

8 ‘‘(D) PUBLIC COMMENT AND SUBMISSION

9 OF REPORT.—The findings of the review shall

10 be made available in draft form for public com11 ment for at least 45 days, and a report con12 taining the findings of the review shall be sub13 mitted to Congress and the President no later

14 than one year after date of enactment of this

15 section.

16 ‘‘(E) REVISION OF GUIDELINES.—If the

17 Secretary, after consultation with the Adminis18 trator, finds, based on the study results, that

19 changes to the program are likely to be bene20 ficial and cost effective in improving the accu21 racy and reliability of reported greenhouse gas

22 reductions and related information, are con23 sistent with the voluntary nature of this section,

24 and further the purposes of this section, the

25 Secretary shall propose and promulgate changes
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1 to program guidelines based with such findings.

2 In carrying out the provisions of this para3 graph, the Secretary shall consult with the Sec4 retary of Agriculture and the Administrator of

5 the Small Business Administration to encourage

6 greater participation by small business and

7 farmers in addressing greenhouse gas emission

8 reductions and reporting such reductions.

9 ‘‘(F) PERIODIC REVIEW AND REVISION OF

10 GUIDELINES.—The Secretary shall thereafter

11 review and revise these guidelines at least once

12 every 5 years, following the provisions for eco13 nomic analysis, public review, and revision set

14 forth in subsections (C) through (E) of this sec15 tion.’’.

16 (6) in subsection (c), by inserting ‘‘the Sec17 retary of the Department of Agriculture, the Sec18 retary of the Department of Commerce, the Admin19 istrator of the Energy Information Administration,

20 and’’ before ‘‘the Administrator’’; and

21 (7) by adding at the end the following:

22 ‘‘(d) PUBLIC AWARENESS PROGRAM.—

23 ‘‘(1) IN GENERAL.—The Secretary shall create

24 and implement a public awareness program to edu25 cate all persons in the United States of—
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1 ‘‘(A) the direct benefits of engaging in vol2 untary greenhouse gas emissions reduction

3 measures and having the emissions reductions

4 certified under this section and available for use

5 therein; and

6 ‘‘(B) the ease of use of the forms and pro7 cedures for having emissions reductions cer8 tified under this section.

9 ‘‘(2) AGRICULTURAL AND SMALL BUSINESS

10 OUTREACH.—The Secretary of Agriculture and the

11 Administrator of the Small Business Administration

12 shall assist the Secretary in creating and imple13 menting a targeted public awareness program to en14 courage voluntary participation by small businesses

15 and farmers.’’.

16 SEC. 8. REVIEW OF FEDERALLY FUNDED ENERGY TECH17 NOLOGY RESEARCH AND DEVELOPMENT.

18 (a) IN GENERAL.—Title XVI of the Energy Policy

19 Act of 1992 (42 U.S.C. 13381 et seq.) is amended by add20 ing the following new section:

21 ‘‘SEC. 1610. REVIEW OF FEDERALLY FUNDED ENERGY

22 TECHNOLOGY RESEARCH AND DEVELOP23 MENT.

24 ‘‘(a) DEPARTMENT OF ENERGY REVIEW.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall review

2 annually all federally funded research and develop3 ment activities carried out with respect to energy

4 technology; and submit to a report to Congress by

5 October 15 of each year.

6 ‘‘(2) ASSESSMENT OF TECHNOLOGY READINESS

7 AND BARRIERS TO DEPLOYMENT.—As part of this

8 review, the Secretary shall—

9 ‘‘(A) assess the status and readiness (in10 cluding the potential commercialization) of each

11 energy technology and any regulatory or market

12 barriers to deployment;

13 ‘‘(B) consider—

14 ‘‘(i) the length of time it will take for

15 deployment and use of the energy tech16 nology and for the technology to have a

17 meaningful impact on emission reductions;

18 ‘‘(ii) the cost of deploying the energy

19 technology; and

20 ‘‘(iii) the safety of the energy tech21 nology;

22 ‘‘(C) assess the available resource base for

23 any energy resources used by the energy tech24 nology, and the potential for expanded sustain25 able use of the resource base; and
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1 ‘‘(D) recommend to Congress any changes

2 in law or regulation deemed appropriate by the

3 Secretary to hasten deployment and use of the

4 energy technology.

5 ‘‘(b) ENERGY TECHNOLOGY RESEARCH AND DEVEL6 OPMENT CLEARINGHOUSE.—The Secretary shall establish

7 an information clearinghouse to facilitate the transfer and

8 dissemination of the results of federally funded research

9 and development activities being carried out on energy

10 technology subject to any restrictions or safeguards estab11 lished for national security or the protection of intellectual

12 property rights (including trade secrets and confidential

13 business information protected under section 552(b)(4) of

14 title 5, United States Code).’’.

15 (b) TECHNICAL AMENDMENT.—The table of contents

16 of the Energy Policy Act of 1992 (106 Stat. 2776) is

17 amended by inserting after the item relating to section

18 1609 the following:

‘‘Sec. 1610. Review of federally funded energy technology research and development.’’.

19 SEC. 9. OFFICE OF APPLIED ENERGY TECHNOLOGY AND

20 GREENHOUSE GAS-MANAGEMENT.

21 Section 1603 of the Energy Policy Act of 1992 (42

22 U.S.C. 13383) is amended to read as follows:
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1 ‘‘SEC. 1603. OFFICE OF APPLIED ENERGY TECHNOLOGY

2 AND GREENHOUSE GAS MANAGEMENT.

3 ‘‘(a) ESTABLISHMENT.—There is established by this

4 section in the Department of Energy an Office of Applied

5 Energy Technology and Greenhouse Gas Management.

6 ‘‘(b) FUNCTION.—The Office shall—

7 ‘‘(1) establish appropriate quantitative perform8 ance and deployment goals for energy technologies

9 that reduce, avoid, or sequester emissions of green10 house gases, provided that such goals are consistent

11 with any national climate change strategy;

12 ‘‘(2) manage domestic and international energy

13 technology demonstration and deployment programs

14 for energy technologies that reduce, avoid or seques15 ter emissions of greenhouse gases, including those

16 authorized under this title; provided that such pro17 grams supplement and do not replace existing en18 ergy research and development activities within the

19 Department;

20 ‘‘(3) facilitate the development of domestic and

21 international cooperative research and development

22 agreements (as that term is defined in section

23 12(d)(1) of the Stevenson-Wydler Technology Inno24 vation Act of 1980 (15 U.S.C. 3710a(d)(1)), or

25 similar cooperative, cost-shared partnerships with

26 non-Federal organizations to accelerate the rate of
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1 domestic and international demonstration and de2 ployment of energy technologies that reduce, avoid

3 or sequester emissions of greenhouse gases;

4 ‘‘(4) conduct necessary programs of monitoring,

5 experimentation, and analysis of the technological,

6 scientific, and economic viability of energy tech7 nologies that reduce, avoid, or sequester greenhouse

8 gas emissions; and

9 ‘‘(5) coordinate issues, policies, and activities

10 for the Department regarding climate change and

11 related energy matters pursuant to this title, and co12 ordinate the issuance of such reports as many be re13 quired under this title.

14 ‘‘(c) DIRECTOR.—The Secretary shall appoint a di15 rector of the Office, who—

16 ‘‘(1) shall report to the Secretary;

17 ‘‘(2) shall be compensated at no less than level

18 IV of the Executive Schedule; and

19 ‘‘(3) at the request of the Committees of the

20 Senate and House of Representatives with appro21 priation and legislative jurisdiction over programs

22 and activities of the Department of Energy, shall re23 port to Congress on the activities of the Office.
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1 ‘‘(d) DUTIES.—The Director shall, in addition to per2 forming all functions necessary to carry out the functions

3 of the Office—

4 ‘‘(1) in the absence of the Secretary, serve as

5 the Secretary’s representative for interagency and

6 multilateral policy discussions of global climate

7 change, including the activities of the Committee on

8 Earth and Environmental Sciences as established by

9 the Global Change Research Act of 1990 (15 U.S.C.

10 292 et seq.);

11 ‘‘(2) participate, in cooperation with other fed12 eral agencies, in the development and monitoring of

13 domestic and international policies for their effects

14 on any kind of climate change globally and domesti15 cally and on the generation, reduction, avoidance,

16 and sequestration of greenhouse gases;

17 ‘‘(3) develop and implement a balanced, sci18 entific, non-advocacy educational and informational

19 public awareness program on—

20 ‘‘(A) potential climate change, including

21 any known adverse and beneficial effects on the

22 United States and the economy of the United

23 States and the world economy, taking into con24 sideration whether those effects are known or
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1 expected to be temporary, long-term, or perma2 nent;

3 ‘‘(B) the role of national energy policy in

4 the determination of current and future emis5 sions of greenhouse gases, particularly meas6 ures that develop advanced energy technologies,

7 improve energy efficiency, or expand the use of

8 renewable energy or alternative fuels; and

9 ‘‘(C) the development of voluntary means

10 and measures to mitigate or minimize signifi11 cant adverse effects of climate change and,

12 where appropriate, to adapt, to the greatest ex13 tent practicable, to climate change.

14 ‘‘(4) provide, consistent with applicable provi15 sions of law, public access to all information on cli16 mate change, effects of climate change, and adapta17 tion to climate change; and

18 ‘‘(5) in accordance with all law administered by

19 the Secretary and other applicable Federal law and

20 contracts, including patent and intellectual property

21 laws, and in furtherance of the United Nations

22 Framework Convention of Climate Change—

23 ‘‘(A) identify for, and transfer, deploy, dif24 fuse, and apply to, Parties to such Convention,

25 including the United States, any technologies,
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1 practices, or processes which reduce, avoid, or

2 sequester emissions of greenhouse gases if such

3 technologies, practices or processes have been

4 developed with funding from the Department of

5 Energy or any of its facilities or laboratories;

6 and

7 ‘‘(B) support reasonable efforts by the

8 Parties to such convention, including the

9 United States, to identify and remove legal,

10 trade, financial, and other barriers to the use

11 and application of any technologies, practices,

12 or processes which reduce, avoid or sequester

13 emissions of greenhouse gases.’’.

14 SEC. 10. COORDINATION OF GLOBAL CHANGE RESEARCH.

15 (a) DEFINITIONS.—As used in this Section, the

16 term—

17 (1) ‘‘Committee’’ means the Committee on

18 Earth and Environmental Sciences established under

19 Section 102 of the Global Change Research Act of

20 1990 (15 U.S.C. 2933).

21 (2) ‘‘Program’’ means the United States Global

22 Change Research Program established under Section

23 103 of the Global Change Research Act of 1990 (15

24 U.S.C. 2933).
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1 (b) COORDINATION OF CLIMATE OBSERVATION AC2 TIVITIES.—At the direction of the Committee, the Direc3 tor of the Program shall develop and implement activities

4 within the Program that—

5 (1) coordinate system design and implementa6 tion and operation of a multi-user, multi-purpose

7 long-term climate observing system for the measure8 ment and monitoring of relevant climatic variables;

9 (2) carry out basic research, development and

10 deployment of innovative scientific techniques and

11 instruments (both in-situ and space-based) for meas12 urement and monitoring of relevant climatic vari13 ables;

14 (3) coordinate Program activities to ensure the

15 integrity and continuity of data records; including—

16 (A) calibration and inter-comparison of

17 multiple instruments that measure the same cli18 matic variable or set of variables;

19 (B) backup instruments to ensure data

20 record continuity; and

21 (C) documentation of changes in instru22 ments, observing practices, observing locations,

23 sampling rates, processing algorithms and other

24 changes;
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1 (4) establish ongoing activities for the develop2 ment, implementation, operation and management of

3 climatic-specific observational programs, with special

4 emphasis on activities that seek the most efficient

5 and reliable means of observing the climate system;

6 (5) coordinate activities of the Program that

7 contribute to the design, implementation, operation,

8 and data management activities of international cli9 mate system observation networks; and

10 (6) establish and maintain a free and openly ac11 cessible national data management system for the

12 storage, maintenance, and archival of climate obser13 vation data, with an emphasis on facilitation access

14 to, use of and interpretation of such data by the sci15 entific research community and the public.

16 (c) COORDINATION OF CLIMATE MODELING ACTIVI17 TIES.—At the direction of the Committee, the Director of

18 the Program shall develop and implement activities within

19 the Program that—

20 (1) establish and periodically revise a national

21 climate system modeling strategy designed to posi22 tion the United States as a world leader in all as23 pects of climate system modeling;
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1 (2) coordinate Program activities designed to

2 carry out such a national climate system modeling

3 strategy;

4 (3) carry out basic research, development and

5 deployment of innovative computational techniques

6 for climate system modeling;

7 (4) develop the intellectual and computational

8 capacity to carry out climate system modeling activi9 ties to assess the potential consequences of climate

10 change on the United States;

11 (5) carry out the continued development and

12 inter-comparison of United States climate models

13 with special emphasis on activities that—

14 (A) establish the ability of United States

15 climate models to successfully reproduce the

16 historical climate observational record;

17 (B) incorporate new climate system proc18 esses or improve spatial or temporal resolution

19 of climate model simulations;

20 (C) develop standardized tools and struc21 tures for climate model output, evaluation and

22 programming design;

23 (D) improve the accuracy and complete24 ness of supporting data sets used to drive cli25 mate models; and
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1 (E) reduce uncertainty in assessments of

2 climate change and its impacts on the United

3 States.

4 (6) coordinate activities of the Program that

5 contribute to the design, implementation, operation,

6 and data analysis activities of international climate

7 system modeling inter-comparisons and assessments;

8 and

9 (7) establish and maintain a free and openly ac10 cessible national data management system for the

11 storage, maintenance, and archival of climate model

12 code, auxiliary data, and results, with an emphasis

13 on facilitating access to, use of and interpretation of

14 such data by the scientific research community and

15 the public.

16 (d) AUTHORIZATION OF APPROPRIATIONS.—There

17 are authorized to be appropriated to carry out this section

18 $50,000,000 for each of fiscal years 2002 through 2004,

19 to remain available until expended, and thereafter such

20 sums are necessary.

21 (e) USE OF EXISTING INFRASTRUCTURE.—In car22 rying out new activities under subsections (b) and (c) of

23 this section, the Program shall, where possible, use and
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1 incorporate existing Program activities and resources,

2 such as Program Working Groups.

Æ