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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1733 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 267
111th CONGRESS
  2d Session
                                S. 1733

                          [Report No. 111-121]

To create clean energy jobs, promote energy independence, reduce global 
      warming pollution, and transition to a clean energy economy.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 30, 2009

   Mr. Kerry (for himself, Mrs. Boxer, and Mr. Kirk) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Environment and Public Works

                            February 2, 2010

               Reported by Mrs. Boxer, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To create clean energy jobs, promote energy independence, reduce global 
      warming pollution, and transition to a clean energy economy.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Clean 
Energy Jobs and American Power Act''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents of this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Findings.
<DELETED>Sec. 3. Economy-wide emission reduction goals.
<DELETED>Sec. 4. Definitions.
     <DELETED>DIVISION A--AUTHORIZATIONS FOR POLLUTION REDUCTION, 
                       TRANSITION, AND ADAPTATION

<DELETED>Sec. 101. Structure of Act.
          <DELETED>TITLE I--GREENHOUSE GAS REDUCTION PROGRAMS

               <DELETED>Subtitle A--Clean Transportation

<DELETED>Sec. 111. Emission standards.
                   <DELETED>``PART B--Mobile Sources

        <DELETED>``Sec. 821. Greenhouse gas emission standards for 
                            mobile sources.
<DELETED>Sec. 112. Greenhouse gas emission reductions through 
                            transportation efficiency.
              <DELETED>``PART C--Transportation Emissions

        <DELETED>``Sec. 831. Greenhouse gas emission reductions through 
                            transportation efficiency.
<DELETED>Sec. 113. Transportation greenhouse gas emission reduction 
                            program grants.
        <DELETED>``Sec. 832. Transportation greenhouse gas emission 
                            reduction program grants.
<DELETED>Sec. 114. SmartWay transportation efficiency program.
        <DELETED>``Sec. 822. SmartWay transportation efficiency 
                            program.
         <DELETED>Subtitle B--Carbon Capture and Sequestration

<DELETED>Sec. 121. National strategy.
<DELETED>Sec. 122. Regulations for geological sequestration sites.
        <DELETED>``Sec. 813. Geological storage sites.
<DELETED>Sec. 123. Studies and reports.
<DELETED>Sec. 124. Performance standards for coal-fueled power plants.
        <DELETED>``Sec. 812. Performance standards for new coal-fired 
                            power plants.
<DELETED>Sec. 125. Carbon capture and sequestration demonstration and 
                            early deployment program.
         <DELETED>Subtitle C--Nuclear and Advanced Technologies

<DELETED>Sec. 131. Findings and policy.
<DELETED>Sec. 132. Nuclear worker training.
<DELETED>Sec. 133. Nuclear safety and waste management programs.
                 <DELETED>Subtitle D--Water Efficiency

<DELETED>Sec. 141. WaterSense.
<DELETED>Sec. 142. Federal procurement of water-efficient products.
<DELETED>Sec. 143. State residential water efficiency and conservation 
                            incentives program.
                   <DELETED>Subtitle E--Miscellaneous

<DELETED>Sec. 151. Office of Consumer Advocacy.
<DELETED>Sec. 152. Clean technology business competition grant program.
<DELETED>Sec. 153. Product carbon disclosure program.
<DELETED>Sec. 154. State recycling programs.
<DELETED>Sec. 155. Supplemental agriculture and forestry greenhouse gas 
                            reduction and renewable energy program.
<DELETED>Sec. 156. Economic Development Climate Change Fund.
        <DELETED>``Sec. 219. Economic Development Climate Change Fund.
<DELETED>Sec. 157. Study of risk-based programs addressing vulnerable 
                            areas.
      <DELETED>Subtitle F--Energy Efficiency and Renewable Energy

<DELETED>Sec. 161. Renewable energy.
<DELETED>Sec. 162. Advanced biofuels.
<DELETED>Sec. 163. Energy efficiency in building codes.
<DELETED>Sec. 164. Retrofit for energy and environmental performance.
  <DELETED>Subtitle G--Emission Reductions From Public Transportation 
                                Vehicles

<DELETED>Sec. 171. Short title.
<DELETED>Sec. 172. State fuel economy regulation for taxicabs.
<DELETED>Sec. 173. State regulation of motor vehicle emissions for 
                            taxicabs.
           <DELETED>Subtitle H--Clean Energy and Natural Gas

<DELETED>Sec. 181. Clean Energy and Accelerated Emission Reduction 
                            Program.
<DELETED>Sec. 182. Advanced natural gas technologies.
                      <DELETED>TITLE II--RESEARCH

                  <DELETED>Subtitle A--Energy Research

<DELETED>Sec. 201. Advanced energy research.
<DELETED>Subtitle B--Drinking Water Adaptation, Technology, Education, 
                              and Research

<DELETED>Sec. 211. Effects of climate change on drinking water 
                            utilities.
             <DELETED>TITLE III--TRANSITION AND ADAPTATION

         <DELETED>Subtitle A--Green Jobs and Worker Transition

                      <DELETED>PART 1--Green Jobs

<DELETED>Sec. 301. Clean energy curriculum development grants.
<DELETED>Sec. 302. Development of Information and Resources 
                            clearinghouse for vocational education and 
                            job training in renewable energy sectors.
<DELETED>Sec. 303. Green construction careers demonstration project.
      <DELETED>PART 2--Climate Change Worker Adjustment Assistance

<DELETED>Sec. 311. Petitions, eligibility requirements, and 
                            determinations.
<DELETED>Sec. 312. Program benefits.
<DELETED>Sec. 313. General provisions.
       <DELETED>Subtitle B--International Climate Change Programs

<DELETED>Sec. 321. Strategic Interagency Board on International Climate 
                            Investment.
<DELETED>Sec. 322. Emission reductions from reduced deforestation.
          <DELETED>``PART E--Supplemental Emission Reductions

        <DELETED>``Sec. 751. Definitions.
        <DELETED>``Sec. 752. Purposes.
        <DELETED>``Sec. 753. Emission reductions from reduced 
                            deforestation.
<DELETED>Sec. 323. International Clean Energy Deployment Program.
<DELETED>Sec. 324. International climate change adaptation and global 
                            security program.
<DELETED>Sec. 325. Evaluation and reports.
<DELETED>Sec. 326. Report on climate actions of major economies.
            <DELETED>Subtitle C--Adapting to Climate Change

                  <DELETED>PART 1--Domestic Adaptation

     <DELETED>subpart a--national climate change adaptation program

<DELETED>Sec. 341. National Climate Change Adaptation Program.
<DELETED>Sec. 342. Climate services.
          <DELETED>subpart b--public health and climate change

<DELETED>Sec. 351. Sense of Congress on public health and climate 
                            change.
<DELETED>Sec. 352. Relationship to other laws.
<DELETED>Sec. 353. National strategic action plan.
<DELETED>Sec. 354. Advisory board.
<DELETED>Sec. 355. Reports.
<DELETED>Sec. 356. Definitions.
  <DELETED>subpart c--climate change safeguards for natural resources 
                              conservation

<DELETED>Sec. 361. Purposes.
<DELETED>Sec. 362. Natural resources climate change adaptation policy.
<DELETED>Sec. 363. Definitions.
<DELETED>Sec. 364. Council on Environmental Quality.
<DELETED>Sec. 365. Natural Resources Climate Change Adaptation Panel.
<DELETED>Sec. 366. Natural Resources Climate Change Adaptation 
                            Strategy.
<DELETED>Sec. 367. Natural resources adaptation science and 
                            information.
<DELETED>Sec. 368. Federal natural resource agency adaptation plans.
<DELETED>Sec. 369. State natural resources adaptation plans.
<DELETED>Sec. 370. Natural Resources Climate Change Adaptation Account.
<DELETED>Sec. 371. National Fish and Wildlife Habitat and Corridors 
                            Information Program.
<DELETED>Sec. 372. Additional provisions regarding Indian tribes.
   <DELETED>subpart d--additional climate change adaptation programs

<DELETED>Sec. 381. Water system mitigation and adaption partnerships.
<DELETED>Sec. 382. Flood control, protection, prevention, and response.
<DELETED>Sec. 383. Wildfire.
<DELETED>Sec. 384. Coastal and Great Lakes State adaptation program.
        <DELETED>DIVISION B--POLLUTION REDUCTION AND INVESTMENT

          <DELETED>TITLE I--REDUCING GLOBAL WARMING POLLUTION

         <DELETED>Subtitle A--Reducing Global Warming Pollution

<DELETED>Sec. 101. Reducing global warming pollution.
<DELETED>``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION AND INVESTMENT 
                                PROGRAM

<DELETED>``PART A--Global Warming Pollution Reduction Goals and Targets

        <DELETED>``Sec. 701. Findings.
        <DELETED>``Sec. 702. Economy-wide reduction goals.
        <DELETED>``Sec. 703. Reduction targets for specified sources.
        <DELETED>``Sec. 704. Supplemental pollution reductions.
        <DELETED>``Sec. 705. Review and program recommendations.
        <DELETED>``Sec. 706. National Academy review.
        <DELETED>``Sec. 707. Presidential response and recommendations.
  <DELETED>``PART B--Designation and Registration of Greenhouse Gases

        <DELETED>``Sec. 711. Designation of greenhouse gases.
        <DELETED>``Sec. 712. Carbon dioxide equivalent value of 
                            greenhouse gases.
        <DELETED>``Sec. 713. Greenhouse gas registry.
        <DELETED>``Sec. 714. Perfluorocarbon regulation.
                    <DELETED>``PART C--Program Rules

        <DELETED>``Sec. 721. Emission allowances.
        <DELETED>``Sec. 722. Prohibition of excess emissions.
        <DELETED>``Sec. 723. Penalty for noncompliance.
        <DELETED>``Sec. 724. Trading.
        <DELETED>``Sec. 725. Banking and borrowing.
        <DELETED>``Sec. 726. Market Stability Reserve.
        <DELETED>``Sec. 727. Permits.
        <DELETED>``Sec. 728. International emission allowances.
                       <DELETED>``PART D--Offsets

        <DELETED>``Sec. 731. Offsets Integrity Advisory Board.
        <DELETED>``Sec. 732. Establishment of offsets program.
        <DELETED>``Sec. 733. Eligible project types.
        <DELETED>``Sec. 734. Requirements for offset projects.
        <DELETED>``Sec. 735. Approval of offset projects.
        <DELETED>``Sec. 736. Verification of offset projects.
        <DELETED>``Sec. 737. Issuance of offset credits.
        <DELETED>``Sec. 738. Audits.
        <DELETED>``Sec. 739. Program review and revision.
        <DELETED>``Sec. 740. Early offset supply.
        <DELETED>``Sec. 741. Environmental considerations.
        <DELETED>``Sec. 742. Trading.
        <DELETED>``Sec. 743. Office of Offsets Integrity.
        <DELETED>``Sec. 744. International offset credits.
<DELETED>Sec. 102. Definitions.
        <DELETED>``Sec. 700. Definitions.
<DELETED>Sec. 103. Offset reporting requirements.
             <DELETED>Subtitle B--Disposition of Allowances

<DELETED>Sec. 111. Disposition of allowances for global warming 
                            pollution reduction program.
              <DELETED>``PART H--Disposition of Allowances

        <DELETED>``Sec. 771. Allocation of emission allowances.
        <DELETED>``Sec. 772. Electricity consumers.
        <DELETED>``Sec. 773. Natural gas consumers.
        <DELETED>``Sec. 774. Home heating oil and propane consumers.
        <DELETED>``Sec. 775. Domestic fuel production.
        <DELETED>``Sec. 776. Consumer protection.
        <DELETED>``Sec. 777. Exchange for State-issued allowances.
        <DELETED>``Sec. 778. Auction procedures.
        <DELETED>``Sec. 779. Auctioning allowances for other entities.
        <DELETED>``Sec. 780. Commercial deployment of carbon capture 
                            and sequestration technologies.
        <DELETED>``Sec. 781. Oversight of allocations.
        <DELETED>``Sec. 782. Early action recognition.
        <DELETED>``Sec. 783. Establishment of Deficit Reduction Fund.
        <DELETED>Subtitle C--Additional Greenhouse Gas Standards

<DELETED>Sec. 121. Greenhouse gas standards.
       <DELETED>``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

        <DELETED>``Sec. 801. Definitions.
             <DELETED>``PART A--Stationary Source Standards

        <DELETED>``Sec. 811. Standards of performance.
<DELETED>Sec. 122. HFC regulation.
        <DELETED>``Sec. 619. Hydrofluorocarbons (HFCs).
<DELETED>Sec. 123. Black carbon.
                    <DELETED>``PART E--Black Carbon

        <DELETED>``Sec. 851. Black carbon.
<DELETED>Sec. 124. States.
<DELETED>Sec. 125. State programs.
                    <DELETED>``PART F--Miscellaneous

        <DELETED>``Sec. 861. State programs.
        <DELETED>``Sec. 862. Grants for support of air pollution 
                            control programs.
<DELETED>Sec. 126. Enforcement.
<DELETED>Sec. 127. Conforming amendments.
<DELETED>Sec. 128. Davis-Bacon compliance.
              <DELETED>Subtitle D--Carbon Market Assurance

<DELETED>Sec. 131. Carbon market assurance.
 <DELETED>Subtitle E--Ensuring Real Reductions in Industrial Emissions

<DELETED>Sec. 141. Ensuring real reductions in industrial emissions.
  <DELETED>``PART F--Ensuring Real Reductions in Industrial Emissions

        <DELETED>``Sec. 761. Purposes.
        <DELETED>``Sec. 762. Definitions.
        <DELETED>``Sec. 763. Eligible industrial sectors.
        <DELETED>``Sec. 764. Distribution of emission allowance 
                            rebates.
        <DELETED>``Sec. 765. International trade.
                 <DELETED>TITLE II--PROGRAM ALLOCATIONS

<DELETED>Sec. 201. Investment in clean vehicle technology.
<DELETED>Sec. 202. State and local investment in energy efficiency and 
                            renewable energy.
<DELETED>Sec. 203. Energy efficiency in building codes.
<DELETED>Sec. 204. Building retrofit program.
<DELETED>Sec. 205. Energy Innovation Hubs.
<DELETED>Sec. 206. ARPA-E research.
<DELETED>Sec. 207. International clean energy deployment program.
<DELETED>Sec. 208. International climate change adaptation and global 
                            security.
<DELETED>Sec. 209. Energy efficiency and renewable energy worker 
                            training.
<DELETED>Sec. 210. Worker transition.
<DELETED>Sec. 211. State programs for greenhouse gas reduction and 
                            climate adaptation.
<DELETED>Sec. 212. Climate Change Health Protection and Promotion Fund.
<DELETED>Sec. 213. Climate change safeguards for natural resources 
                            conservation.
<DELETED>Sec. 214. Nuclear worker training.
<DELETED>Sec. 215. Supplemental agriculture, renewable energy, and 
                            forestry.

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) the United States can take back control of the 
        energy future of the United States, strengthen economic 
        competitiveness, safeguard the health of families and the 
        environment, and ensure the national security, of the United 
        States by increasing energy independence;</DELETED>
        <DELETED>    (2) creating a clean energy future requires a 
        comprehensive approach that includes support for the 
        improvement of all energy sources, including coal, natural gas, 
        nuclear power, and renewable generation;</DELETED>
        <DELETED>    (3) efficiency in the energy sector also 
        represents a critical avenue to reduce energy consumption and 
        carbon pollution, and those benefits can be captured while 
        generating additional savings for consumers;</DELETED>
        <DELETED>    (4) substantially increasing the investment in the 
        clean energy future of the United States will provide economic 
        opportunities to millions of people in the United States and 
        drive future economic growth in this country;</DELETED>
        <DELETED>    (5) the United States is responsible for many of 
        the initial scientific advances in clean energy technology, 
        but, as of September 2009, the United States has only 5 of the 
        top 30 leading companies in solar, wind, and advanced battery 
        technology;</DELETED>
        <DELETED>    (6) investment in the clean energy sector will 
        allow companies in the United States to retake a leadership 
        position, and the jobs created by those investments will 
        significantly accelerate growth in domestic 
        manufacturing;</DELETED>
        <DELETED>    (7) those opportunities also will result in 
        substantial employment gains in construction, a sector in which 
        the median hourly wage is 17 percent higher than the national 
        median;</DELETED>
        <DELETED>    (8) those jobs are distributed throughout the 
        United States, and the highest clean energy economy employment 
        growth rates in the last 10 years were in the States of Idaho, 
        Nebraska, South Dakota, Oregon, and New Mexico;</DELETED>
        <DELETED>    (9) focusing on clean energy will dramatically 
        reduce pollution and significantly improve the health of 
        families in and the environment of the United States;</DELETED>
        <DELETED>    (10) moving to a low-carbon economy must protect 
        the most vulnerable populations in the United States, including 
        low-income families that are particularly affected by 
        volatility in energy prices;</DELETED>
        <DELETED>    (11) if unchecked, the impact of climate change 
        will include widespread effects on health and welfare, 
        including--</DELETED>
                <DELETED>    (A) increased outbreaks from waterborne 
                diseases;</DELETED>
                <DELETED>    (B) more droughts;</DELETED>
                <DELETED>    (C) diminished agricultural 
                production;</DELETED>
                <DELETED>    (D) severe storms and floods;</DELETED>
                <DELETED>    (E) heat waves;</DELETED>
                <DELETED>    (F) wildfires; and</DELETED>
                <DELETED>    (G) a substantial rise in sea levels, due 
                in part to--</DELETED>
                        <DELETED>    (i) melting mountain 
                        glaciers;</DELETED>
                        <DELETED>    (ii) shrinking sea ice; 
                        and</DELETED>
                        <DELETED>    (iii) thawing 
                        permafrost;</DELETED>
        <DELETED>    (12) the most recent science indicates that the 
        changes described in paragraph (11)(G) are occurring faster and 
        with greater intensity than expected;</DELETED>
        <DELETED>    (13) military officials, including retired 
        admirals and generals, concur with the intelligence community 
        that climate change acts as a threat multiplier for instability 
        and presents significant national security challenges for the 
        United States;</DELETED>
        <DELETED>    (14) massive portions of the infrastructure of the 
        United States, including critical military infrastructure, are 
        at risk from the effects of climate change;</DELETED>
        <DELETED>    (15) impacts are already being felt in local 
        communities within the United States as well as by at-risk 
        populations abroad;</DELETED>
        <DELETED>    (16) the Declaration of the Leaders from the Major 
        Economies Forum on Energy and Climate, representing 17 of the 
        largest economies in the world, recognizes the need to limit 
        the increase in global average temperatures to within 2 degrees 
        Centigrade, as a necessary step to prevent the catastrophic 
        consequences of climate change; and</DELETED>
        <DELETED>    (17) the United States should lead the global 
        community in combating the threat of global climate change and 
        reaching a robust international agreement to address global 
        warming under the United Nations Framework Convention on 
        Climate Change, done at New York on May 9, 1992 (or a successor 
        agreement).</DELETED>

<DELETED>SEC. 3. ECONOMY-WIDE EMISSION REDUCTION GOALS.</DELETED>

<DELETED>    The goals of this Act and the amendments made by this Act 
are to reduce steadily the quantity of United States greenhouse gas 
emissions such that--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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; 
        and</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 4. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.</DELETED>
        <DELETED>    (2) Indian tribe.--The term ``Indian tribe'' has 
        the meaning given the term in section 302 of the Clean Air Act 
        (42 U.S.C. 7602).</DELETED>
        <DELETED>    (3) State.--The term ``State'' has the meaning 
        given that term in section 302 of the Clean Air Act (42 U.S.C. 
        7602).</DELETED>

     <DELETED>DIVISION A--AUTHORIZATIONS FOR POLLUTION REDUCTION, 
                  TRANSITION, AND ADAPTATION</DELETED>

<DELETED>SEC. 101. STRUCTURE OF ACT.</DELETED>

<DELETED>    (a) Authorized and Allocated Programs.--The following 
programs authorized under this division are eligible to receive an 
allocation under title VII of the Clean Air Act:</DELETED>
        <DELETED>    (1) The program for greenhouse gas emission 
        reductions through transportation efficiency under part C of 
        title VIII the Clean Air Act (as added by sections 112 and 113 
        of this division).</DELETED>
        <DELETED>    (2) The program for nuclear worker training under 
        section 132 of this division and 214 of division B.</DELETED>
        <DELETED>    (3) State recycling programs under section 154 of 
        this division and section 211 of division B.</DELETED>
        <DELETED>    (4) The supplemental agriculture and forestry 
        greenhouse gas reduction and renewable energy program under 
        section 155 of this division and section 215 of division 
        B.</DELETED>
        <DELETED>    (5) The program for energy efficiency in building 
        codes under section 163 of this division and section 203 of 
        division B.</DELETED>
        <DELETED>    (6) The program for retrofit for energy and 
        environmental performance under section 164 of this division 
        and section 204 of division B.</DELETED>
        <DELETED>    (7) The program for worker transition under part 2 
        of subtitle A of title III of this division and section 210 of 
        division B.</DELETED>
        <DELETED>    (8) The program for public health and climate 
        change under subpart B of part 1 of subtitle C of title III of 
        this division and section 212 of division B.</DELETED>
        <DELETED>    (9) The program for climate change safeguards for 
        natural resources conservation under subpart C of part 1 of 
        subtitle C of title III of this division and section 213 of 
        division B.</DELETED>
        <DELETED>    (10) The program for emission reductions from 
        reduced deforestation under section 753 of the Clean Air Act 
        (as added by section 322 of this division) and section 771(d) 
        of the Clean Air Act (as added by section 111 of division 
        B).</DELETED>
        <DELETED>    (11) The International Clean Energy Deployment 
        Program under section 323 of this division and section 207 of 
        division B.</DELETED>
        <DELETED>    (12) The international climate change adaptation 
        and global security program under 324 of this division and 
        section 208 of division B.</DELETED>
        <DELETED>    (13) The program for water system mitigation and 
        adaptation partnerships under section 381 of this division and 
        section 211 of division B.</DELETED>
        <DELETED>    (14) The program for flood control, protection, 
        prevention, and response under section 382 of this division and 
        section 211 of division B.</DELETED>
        <DELETED>    (15) The program for wildfire under section 383 of 
        this division and section 211 of division B.</DELETED>
        <DELETED>    (16) The Coastal and Great Lakes State Adaptation 
        Program under section 384 of this division and section 211 of 
        division B.</DELETED>
<DELETED>    (b) Allocated Programs.--The following allocations are 
provided under title VII of the Clean Air Act:</DELETED>
        <DELETED>    (1) The Market Stability Reserve Fund under 
        section 726 of the Clean Air Act (as added by section 101 of 
        division B).</DELETED>
        <DELETED>    (2) The program to ensure real reductions in 
        industrial emissions under part F of title VII of the Clean Air 
        Act (as added by section 141 of division B).</DELETED>
        <DELETED>    (3) The program for electricity consumers pursuant 
        to section 772 of the Clean Air Act (as added by section 111 of 
        division B).</DELETED>
        <DELETED>    (4) The program for natural gas consumers pursuant 
        to section 773 of the Clean Air Act (as added by section 111 of 
        division B).</DELETED>
        <DELETED>    (5) The program for home heating oil and propane 
        consumers pursuant to section 774 of the Clean Air Act (as 
        added by section 111 of division B).</DELETED>
        <DELETED>    (6) The program for domestic fuel production, 
        including petroleum refiners and small business refiners, under 
        section 775 of the Clean Air Act (as added by section 111 of 
        division B).</DELETED>
        <DELETED>    (7) The program for climate change consumer 
        refunds and low- and moderate-income consumers pursuant to 
        section 776 of the Clean Air Act (as added by section 111 of 
        division B), including--</DELETED>
                <DELETED>    (A) consumer rebates under section 776(a) 
                of the Clean Air Act (as so added); and</DELETED>
                <DELETED>    (B) energy refunds under section 776(b) of 
                the Clean Air Act (as so added).</DELETED>
        <DELETED>    (8) The program for commercial deployment of 
        carbon capture and storage technology under section 780 of the 
        Clean Air Act (as added by section 111 of division 
        B).</DELETED>
        <DELETED>    (9) The program for early action recognition 
        pursuant to section 782 of the Clean Air Act (as added by 
        section 111 of division B).</DELETED>
        <DELETED>    (10) The program for investment in clean vehicle 
        technology under section 201 of division B.</DELETED>
        <DELETED>    (11) The program for State and local investment in 
        energy efficiency and renewable energy under section 202 of 
        division B.</DELETED>
        <DELETED>    (12) The program for Energy Innovation Hubs 
        pursuant to section 205 of division B.</DELETED>
        <DELETED>    (13) The program for ARPA-E research pursuant to 
        section 206 of division B.</DELETED>
        <DELETED>    (14) The program for energy efficiency and 
        renewable energy worker training under section 209 of division 
        B.</DELETED>
        <DELETED>    (15) The State programs for greenhouse gas 
        reduction and climate adaptation pursuant to section 211 of 
        division B.</DELETED>
<DELETED>    (c) Nonallocated Programs.--The following programs are 
authorized under this division:</DELETED>
        <DELETED>    (1) The SmartWay Transportation Efficiency Program 
        under section 822 of the Clean Air Act (as added by section 114 
        of this division).</DELETED>
        <DELETED>    (2) The carbon capture and sequestration 
        demonstration and early deployment program under section 125 of 
        this division.</DELETED>
        <DELETED>    (3) The nuclear safety and waste management 
        programs under section 133 of this division.</DELETED>
        <DELETED>    (4) Water efficiency programs under subtitle D of 
        title I of this division.</DELETED>
        <DELETED>    (5) The Office of Consumer Advocacy under section 
        151 of this division.</DELETED>
        <DELETED>    (6) The clean technology business competition 
        grant program under section 152 of this division.</DELETED>
        <DELETED>    (7) The product carbon disclosure program under 
        section 153 of this division.</DELETED>
        <DELETED>    (8) The Economic Development Climate Change Fund 
        under section 219 of the Public Works and Economic Development 
        Act of 1965 (as added by section 156 of this 
        division).</DELETED>
        <DELETED>    (9) The program for renewable energy under section 
        161 of this division.</DELETED>
        <DELETED>    (10) The program for advanced biofuels under 
        section 162 of this division.</DELETED>
        <DELETED>    (11) The program for emission reductions from 
        public transportation vehicles under subtitle G of title I of 
        this division.</DELETED>
        <DELETED>    (12) The Clean Energy and Accelerated Emission 
        Reduction Program under section 181 of this division.</DELETED>
        <DELETED>    (13) The program for advanced natural gas 
        technologies under section 182 of this division.</DELETED>
        <DELETED>    (14) The program for advanced energy research 
        under subtitle A of title II of this division.</DELETED>
        <DELETED>    (15) The program for drinking water adaptation, 
        technology, education, and research under subtitle B of title 
        II of this division.</DELETED>
        <DELETED>    (16) The program for clean energy curriculum 
        development grants under section 301 of this 
        division.</DELETED>
        <DELETED>    (17) The program for Development of Information 
        and Resources clearinghouse for vocational education and job 
        training in renewable energy sectors under section 302 of this 
        division.</DELETED>
        <DELETED>    (18) The green construction careers demonstration 
        project under section 303 of this division.</DELETED>

     <DELETED>TITLE I--GREENHOUSE GAS REDUCTION PROGRAMS</DELETED>

          <DELETED>Subtitle A--Clean Transportation</DELETED>

<DELETED>SEC. 111. EMISSION STANDARDS.</DELETED>

<DELETED>    Title VIII of the Clean Air Act (as added by section 121 
of division B) is amended by adding at the end the following:</DELETED>

              <DELETED>``PART B--MOBILE SOURCES</DELETED>

<DELETED>``SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR MOBILE 
              SOURCES.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Greenhouse Gases.--Notwithstanding the provisions of 
section 711, hydrofluorocarbons shall be considered a greenhouse gas 
for purposes of this section.''.</DELETED>

<DELETED>SEC. 112. GREENHOUSE GAS EMISSION REDUCTIONS THROUGH 
              TRANSPORTATION EFFICIENCY.</DELETED>

<DELETED>    (a) Environmental Protection Agency.--Title VIII of the 
Clean Air Act (as amended by section 111 of this division) is amended 
by adding at the end the following:</DELETED>

         <DELETED>``PART C--TRANSPORTATION EMISSIONS</DELETED>

<DELETED>``SEC. 831. GREENHOUSE GAS EMISSION REDUCTIONS THROUGH 
              TRANSPORTATION EFFICIENCY.</DELETED>

<DELETED>    ``(a) In General.--The Administrator, in consultation with 
the Secretary of Transportation (referred to in this part as the 
`Secretary'), shall promulgate, and update from time to time, 
regulations to establish--</DELETED>
        <DELETED>    ``(1) national transportation-related greenhouse 
        gas emission reduction goals that are commensurate with the 
        emission reduction goals established under the Clean Energy 
        Jobs and American Power Act and amendments made by that 
        Act;</DELETED>
        <DELETED>    ``(2) standardized emission models and related 
        methods, to be used by States, metropolitan planning 
        organizations, and air quality agencies to address emission 
        reduction goals, including--</DELETED>
                <DELETED>    ``(A) the development of surface 
                transportation-related greenhouse gas emission 
                reduction targets pursuant to sections 134 and 135 of 
                title 23, and sections 5303 and 5304 of title 49, 
                United States Code;</DELETED>
                <DELETED>    ``(B) the assessment of projected surface 
                transportation-related greenhouse gas emissions from 
                transportation strategies;</DELETED>
                <DELETED>    ``(C) the assessment of projected surface 
                transportation-related greenhouse gas emissions from 
                State and regional transportation plans;</DELETED>
                <DELETED>    ``(D) the establishment of surface 
                transportation-related greenhouse gas emission 
                baselines at a national, State, and regional level; 
                and</DELETED>
                <DELETED>    ``(E) the measurement and assessment of 
                actual surface transportation-related emissions to 
                assess progress toward achievement of emission targets 
                at the State and regional level;</DELETED>
        <DELETED>    ``(3) methods for collection of data on 
        transportation-related greenhouse gas emissions; and</DELETED>
        <DELETED>    ``(4) publication and distribution of successful 
        strategies employed by States, metropolitan planning 
        organizations, and other entities to reduce transportation-
        related greenhouse gas emissions.</DELETED>
<DELETED>    ``(b) Role of Department of Transportation.--The 
Secretary, in consultation with the Administrator, shall promulgate, 
and update from time to time, regulations--</DELETED>
        <DELETED>    ``(1) to improve the ability of transportation 
        planning models and tools, including travel demand models, to 
        address greenhouse gas emissions;</DELETED>
        <DELETED>    ``(2) to assess projected surface transportation-
        related travel activity and transportation strategies from 
        State and regional transportation plans; and</DELETED>
        <DELETED>    ``(3) to update transportation planning 
        requirements and approval of transportation plans as necessary 
        to carry out this section.</DELETED>
<DELETED>    ``(c) Consultation and Models.--In promulgating the 
regulations, the Administrator and the Secretary--</DELETED>
        <DELETED>    ``(1) shall consult with States, metropolitan 
        planning organizations, and air quality agencies;</DELETED>
        <DELETED>    ``(2) may use existing models and methodologies if 
        the models and methodologies are widely considered to reflect 
        the best practicable modeling or methodological approach for 
        assessing actual and projected transportation-related 
        greenhouse gas emissions from transportation plans and 
        projects; and</DELETED>
        <DELETED>    ``(3) shall consider previously developed plans 
        that were based on models and methodologies for reducing 
        greenhouse gas emissions in applying those regulations to the 
        first approvals after promulgation.</DELETED>
<DELETED>    ``(d) Timing.--The Administrator and the Secretary shall--
</DELETED>
        <DELETED>    ``(1) publish proposed regulations under 
        subsections (a) and (b) not later than 1 year after the date of 
        enactment of this section; and</DELETED>
        <DELETED>    ``(2) promulgate final regulations under 
        subsections (a) and (b) not later than 18 months after the date 
        of enactment of this section.</DELETED>
<DELETED>    ``(e) Assessment.--</DELETED>
        <DELETED>    ``(1) In general.--At least every 6 years after 
        promulgating final regulations under subsections (a) and (b), 
        the Administrator and the Secretary shall jointly assess 
        current and projected progress in reducing national 
        transportation-related greenhouse gas emissions.</DELETED>
        <DELETED>    ``(2) Requirements.--The assessment shall examine 
        the contributions to emission reductions attributable to--
        </DELETED>
                <DELETED>    ``(A) improvements in vehicle 
                efficiency;</DELETED>
                <DELETED>    ``(B) greenhouse gas performance of 
                transportation fuels;</DELETED>
                <DELETED>    ``(C) reductions in vehicle miles 
                traveled;</DELETED>
                <DELETED>    ``(D) changes in consumer demand and use 
                of transportation management systems; and</DELETED>
                <DELETED>    ``(E) any other greenhouse gas-related 
                transportation policies enacted by Congress.</DELETED>
        <DELETED>    ``(3) Results of assessment.--The Secretary and 
        the Administrator shall consider--</DELETED>
                <DELETED>    ``(A) the results of the assessment 
                conducted under this subsection; and</DELETED>
                <DELETED>    ``(B) based on those results, whether 
                technical or other updates to regulations required 
                under this section and sections 134 and 135 of title 
                23, and sections 5303 and 5304 of title 49, United 
                States Code, are necessary.''.</DELETED>
<DELETED>    (b) Metropolitan Planning Organizations.--</DELETED>
        <DELETED>    (1) Title 23.--Section 134 of title 23, United 
        States Code, is amended--</DELETED>
                <DELETED>    (A) in subsection (a)(1)--</DELETED>
                        <DELETED>    (i) by striking ``minimizing'' and 
                        inserting ``reducing''; and</DELETED>
                        <DELETED>    (ii) by inserting ``, reliance on 
                        oil, impacts on the environment, 
                        transportation-related greenhouse gas 
                        emissions,'' after ``consumption'';</DELETED>
                <DELETED>    (B) in subsection (h)(1)(E)--</DELETED>
                        <DELETED>    (i) 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,'';</DELETED>
                        <DELETED>    (ii) by inserting ``and public 
                        health'' after ``quality of life''; 
                        and</DELETED>
                        <DELETED>    (iii) by inserting ``, including 
                        housing and land use patterns'' after 
                        ``development patterns'';</DELETED>
                <DELETED>    (C) in subsection (i)--</DELETED>
                        <DELETED>    (i) in paragraph (4)(A)--
                        </DELETED>
                                <DELETED>    (I) by striking ``consult, 
                                as appropriate,'' and inserting 
                                ``cooperate'';</DELETED>
                                <DELETED>    (II) by inserting 
                                ``transportation, public 
                                transportation, air quality, and 
                                housing, and shall consult, as 
                                appropriate, with State and local 
                                agencies responsible for'' after 
                                ``responsible for''; and</DELETED>
                                <DELETED>    (III) by inserting 
                                ``public health,'' after 
                                ``conservation,''; and</DELETED>
                        <DELETED>    (ii) in paragraph (5)(C)(iii), by 
                        inserting ``and through the website of the 
                        metropolitan planning organization, including 
                        emission reduction targets and strategies 
                        developed under subsection (k)(6), including an 
                        analysis of the anticipated effects of the 
                        targets and strategies,'' after ``World Wide 
                        Web''; and</DELETED>
                <DELETED>    (D) in subsection (k), by adding at the 
                end the following:</DELETED>
        <DELETED>    ``(6) Transportation greenhouse gas reduction 
        efforts.--</DELETED>
                <DELETED>    ``(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 to meet those targets.</DELETED>
                <DELETED>    ``(B) Eligible organizations.--</DELETED>
                        <DELETED>    ``(i) MPOS within tmas.--All 
                        provisions and requirements of this section, 
                        including the requirements of the 
                        transportation greenhouse gas reduction 
                        efforts, shall apply to metropolitan planning 
                        organizations that also serve as transportation 
                        management areas.</DELETED>
                        <DELETED>    ``(ii) Other mpos.--A metropolitan 
                        planning organization that does not serve as a 
                        transportation management area--</DELETED>
                                <DELETED>    ``(I) may develop 
                                transportation greenhouse gas emission 
                                reduction targets and strategies to 
                                meet those targets; and</DELETED>
                                <DELETED>    ``(II) if those targets 
                                and strategies are developed, shall be 
                                subject to all applicable provisions 
                                and requirements of this section and 
                                the Clean Energy Jobs and American 
                                Power Act, including requirements of 
                                the transportation greenhouse gas 
                                reduction efforts.</DELETED>
                <DELETED>    ``(C) Establishment of targets and 
                criteria.--</DELETED>
                        <DELETED>    ``(i) In general.--Not later than 
                        2 years after the promulgation of the final 
                        regulations required under section 831 of the 
                        Clean Air Act, each metropolitan planning 
                        organization that also serves as a 
                        transportation management area shall develop 
                        surface transportation-related greenhouse gas 
                        emission reduction targets, as well as 
                        strategies to meet those targets, in 
                        consultation with State air agencies as part of 
                        the metropolitan transportation planning 
                        process under this section.</DELETED>
                        <DELETED>    ``(ii) Multiple designations.--If 
                        more than 1 metropolitan planning organization 
                        has been designated within a metropolitan area, 
                        each metropolitan planning organization shall 
                        coordinate with other metropolitan planning 
                        organizations in the same metropolitan area to 
                        develop the targets and strategies described in 
                        clause (i).</DELETED>
                        <DELETED>    ``(iii) Minimum requirements.--
                        Each metropolitan transportation plan developed 
                        by a metropolitan planning organization under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        so as to contribute to the achievement of State 
                        targets pursuant to section 
                        135(f)(9).</DELETED>
                        <DELETED>    ``(iv) Requirements for targets 
                        and strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--</DELETED>
                                <DELETED>    ``(I) be based on the 
                                emission and travel demand models and 
                                related methodologies established in 
                                the final regulations required under 
                                section 831 of the Clean Air 
                                Act;</DELETED>
                                <DELETED>    ``(II) inventory all 
                                sources of surface transportation-
                                related greenhouse gas 
                                emissions;</DELETED>
                                <DELETED>    ``(III) apply to those 
                                modes of surface transportation that 
                                are addressed in the planning process 
                                under this section;</DELETED>
                                <DELETED>    ``(IV) be integrated and 
                                consistent with regional transportation 
                                plans and transportation improvement 
                                programs; and</DELETED>
                                <DELETED>    ``(V) be selected through 
                                scenario analysis, and include, 
                                pursuant to the requirements of the 
                                transportation planning process under 
                                this section, transportation investment 
                                and management strategies that reduce 
                                greenhouse gas emissions from the 
                                transportation sector over the life of 
                                the plan, such as--</DELETED>
                                        <DELETED>    ``(aa) efforts to 
                                        increase public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;</DELETED>
                                        <DELETED>    ``(bb) efforts to 
                                        increase walking, bicycling, 
                                        and other forms of nonmotorized 
                                        transportation;</DELETED>
                                        <DELETED>    ``(cc) 
                                        implementation of zoning and 
                                        other land use regulations and 
                                        plans to support infill, 
                                        transit-oriented development, 
                                        redevelopment, or mixed use 
                                        development;</DELETED>
                                        <DELETED>    ``(dd) travel 
                                        demand management programs 
                                        (including carpool, vanpool, or 
                                        car-share projects), 
                                        transportation pricing 
                                        measures, parking policies, and 
                                        programs to promote 
                                        telecommuting, flexible work 
                                        schedules, and satellite work 
                                        centers;</DELETED>
                                        <DELETED>    ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce long-
                                        term greenhouse gas emissions 
                                        through reduced congestion and 
                                        improved system 
                                        management;</DELETED>
                                        <DELETED>    ``(ff) intercity 
                                        passenger rail 
                                        improvements;</DELETED>
                                        <DELETED>    ``(gg) intercity 
                                        bus improvements;</DELETED>
                                        <DELETED>    ``(hh) freight 
                                        rail improvements;</DELETED>
                                        <DELETED>    ``(ii) use of 
                                        materials or equipment 
                                        associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;</DELETED>
                                        <DELETED>    ``(jj) public 
                                        facilities for supplying 
                                        electricity to electric or 
                                        plug-in hybrid-electric 
                                        vehicles; or</DELETED>
                                        <DELETED>    ``(kk) any other 
                                        effort that demonstrates 
                                        progress in reducing 
                                        transportation-related 
                                        greenhouse gas emissions in 
                                        each metropolitan planning 
                                        organization under this 
                                        subsection.</DELETED>
                <DELETED>    ``(D) Review and approval.--Not later than 
                180 days after the date of submission of a plan under 
                this section--</DELETED>
                        <DELETED>    ``(i) the Secretary and the 
                        Administrator shall review the plan; 
                        and</DELETED>
                        <DELETED>    ``(ii) the Secretary shall approve 
                        a plan developed by a metropolitan planning 
                        organization pursuant to subparagraph (C) if--
                        </DELETED>
                                <DELETED>    ``(I) the Secretary finds 
                                that a metropolitan planning 
                                organization has developed, submitted, 
                                and published the plan of the 
                                metropolitan planning organization 
                                pursuant to this section;</DELETED>
                                <DELETED>    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                metropolitan planning organization 
                                under this subsection; and</DELETED>
                                <DELETED>    ``(III) the development of 
                                the plan complies with the minimum 
                                requirements established under clauses 
                                (iii) and (iv) of subparagraph 
                                (C).</DELETED>
                <DELETED>    ``(E) Certification.--Failure to comply 
                with the requirements under subparagraph (C) shall not 
                impact certification standards under paragraph 
                (5).</DELETED>
        <DELETED>    ``(7) Definition of metropolitan planning 
        organization.--In this subsection, the term `metropolitan 
        planning organization' means a metropolitan planning 
        organization described in clause (i) or (ii) of paragraph 
        (6)(B).</DELETED>
        <DELETED>    ``(8) Scenario analysis.--The term `scenario 
        analysis' means the use of a planning tool that--</DELETED>
                <DELETED>    ``(A) develops a range of scenarios 
                representing various combinations of transportation and 
                land use strategies, and estimates of how each of those 
                scenarios would perform in meeting the greenhouse gas 
                emission reduction targets based on analysis of various 
                forces (such as health, transportation, economic or 
                environmental factors, and land use) that affect 
                growth;</DELETED>
                <DELETED>    ``(B) may include features such as--
                </DELETED>
                        <DELETED>    ``(i) the involvement of the 
                        general public, key stakeholders, and elected 
                        officials on a broad scale;</DELETED>
                        <DELETED>    ``(ii) the creation of an 
                        opportunity for those participants to educate 
                        each other as to growth trends and trade-offs, 
                        as a means to incorporate values and feedback 
                        into future plans; and</DELETED>
                        <DELETED>    ``(iii) the use of continuing 
                        efforts and ongoing processes; and</DELETED>
                <DELETED>    ``(C) may include key elements such as--
                </DELETED>
                        <DELETED>    ``(i) identification of the 
                        driving forces behind planning decisions and 
                        outcomes;</DELETED>
                        <DELETED>    ``(ii) determination of patterns 
                        of interaction;</DELETED>
                        <DELETED>    ``(iii) creation of scenarios for 
                        discussion purposes;</DELETED>
                        <DELETED>    ``(iv) analysis of 
                        implications;</DELETED>
                        <DELETED>    ``(v) evaluation of scenarios; 
                        and</DELETED>
                        <DELETED>    ``(vi) use of monitoring 
                        indicators.''.</DELETED>
        <DELETED>    (2) Title 49.--Section 5303 of title 49, United 
        States Code, is amended--</DELETED>
                <DELETED>    (A) in subsection (a)(1)--</DELETED>
                        <DELETED>    (i) by striking ``minimizing'' and 
                        inserting ``reducing''; and</DELETED>
                        <DELETED>    (ii) by inserting ``, reliance on 
                        oil, impacts on the environment, 
                        transportation-related greenhouse gas 
                        emissions,'' after ``consumption'';</DELETED>
                <DELETED>    (B) in subsection (h)(1)(E)--</DELETED>
                        <DELETED>    (i) 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,'';</DELETED>
                        <DELETED>    (ii) by inserting ``and public 
                        health'' after ``quality of life''; 
                        and</DELETED>
                        <DELETED>    (iii) by inserting ``, including 
                        housing and land use patterns'' after 
                        ``development patterns'';</DELETED>
                <DELETED>    (C) in subsection (i)--</DELETED>
                        <DELETED>    (i) in paragraph (4)(A)--
                        </DELETED>
                                <DELETED>    (I) by striking ``consult, 
                                as appropriate,'' and inserting 
                                ``cooperate'';</DELETED>
                                <DELETED>    (II) by inserting 
                                ``transportation, public 
                                transportation, air quality, and 
                                housing, and shall consult, as 
                                appropriate, with State and local 
                                agencies responsible for'' after 
                                ``responsible for''; and</DELETED>
                                <DELETED>    (III) by inserting 
                                ``public health,'' after 
                                ``conservation,''; and</DELETED>
                        <DELETED>    (ii) in paragraph (5)(C)(iii), by 
                        inserting ``and through the website of the 
                        metropolitan planning organization, including 
                        emission reduction targets and strategies 
                        developed under subsection (k)(6), including an 
                        analysis of the anticipated effects of the 
                        targets and strategies,'' after ``World Wide 
                        Web''; and</DELETED>
                <DELETED>    (D) in subsection (k), by adding at the 
                end the following:</DELETED>
        <DELETED>    ``(6) Transportation greenhouse gas reduction 
        efforts.--</DELETED>
                <DELETED>    ``(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 to meet those targets.</DELETED>
                <DELETED>    ``(B) Eligible organizations.--</DELETED>
                        <DELETED>    ``(i) In general.--The 
                        requirements of the transportation greenhouse 
                        gas reduction efforts shall apply only to 
                        metropolitan planning organizations within a 
                        transportation management area.</DELETED>
                        <DELETED>    ``(ii) Development of plan.--A 
                        metropolitan planning organization that does 
                        not serve as a transportation management area--
                        </DELETED>
                                <DELETED>    ``(I) may develop 
                                transportation greenhouse gas emission 
                                reduction targets and strategies to 
                                meet those targets; and</DELETED>
                                <DELETED>    ``(II) if those targets 
                                and strategies are developed, shall be 
                                subject to all provisions and 
                                requirements of this section, including 
                                requirements of the transportation 
                                greenhouse gas reduction 
                                efforts.</DELETED>
                <DELETED>    ``(C) Establishment of targets and 
                criteria.--</DELETED>
                        <DELETED>    ``(i) In general.--Not later than 
                        2 years after the promulgation of the final 
                        regulations required under section 831 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 those targets, in consultation with State 
                        air agencies as part of the metropolitan 
                        transportation planning process under this 
                        section.</DELETED>
                        <DELETED>    ``(ii) Multiple designations.--If 
                        more than 1 metropolitan planning organization 
                        has been designated within a metropolitan area, 
                        each metropolitan planning organization shall 
                        coordinate with other metropolitan planning 
                        organizations in the same metropolitan area to 
                        develop the targets and strategies described in 
                        clause (i).</DELETED>
                        <DELETED>    ``(iii) Minimum requirements.--
                        Each metropolitan transportation plan developed 
                        by a metropolitan planning organization under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        so as to contribute to the achievement of State 
                        targets pursuant to section 135(f)(9) of title 
                        23.</DELETED>
                        <DELETED>    ``(iv) Requirements for targets 
                        and strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--</DELETED>
                                <DELETED>    ``(I) be based on the 
                                emission models and related 
                                methodologies established in the final 
                                regulations required under section 831 
                                of the Clean Air Act;</DELETED>
                                <DELETED>    ``(II) inventory all 
                                sources of surface transportation-
                                related greenhouse gas 
                                emissions;</DELETED>
                                <DELETED>    ``(III) apply to those 
                                modes of surface transportation that 
                                are addressed in the planning process 
                                under this section;</DELETED>
                                <DELETED>    ``(IV) be integrated and 
                                consistent with regional transportation 
                                plans and transportation improvement 
                                programs; and</DELETED>
                                <DELETED>    ``(V) be selected through 
                                scenario analysis (as defined in 
                                section 134(k) of title 23), and 
                                include, pursuant to the requirements 
                                of the transportation planning process 
                                under this section, transportation 
                                investment and management strategies 
                                that reduce greenhouse gas emissions 
                                from the transportation sector over the 
                                life of the plan, such as--</DELETED>
                                        <DELETED>    ``(aa) efforts to 
                                        increase public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;</DELETED>
                                        <DELETED>    ``(bb) efforts to 
                                        increase walking, bicycling, 
                                        and other forms of nonmotorized 
                                        transportation;</DELETED>
                                        <DELETED>    ``(cc) 
                                        implementation of zoning and 
                                        other land use regulations and 
                                        plans to support infill, 
                                        transit-oriented development, 
                                        redevelopment, or mixed use 
                                        development;</DELETED>
                                        <DELETED>    ``(dd) travel 
                                        demand management programs 
                                        (including carpool, vanpool, or 
                                        car-share projects), 
                                        transportation pricing 
                                        measures, parking policies, and 
                                        programs to promote 
                                        telecommuting, flexible work 
                                        schedules, and satellite work 
                                        centers;</DELETED>
                                        <DELETED>    ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce long-
                                        term greenhouse gas emissions 
                                        through reduced congestion and 
                                        improved system 
                                        management;</DELETED>
                                        <DELETED>    ``(ff) intercity 
                                        passenger rail 
                                        improvements;</DELETED>
                                        <DELETED>    ``(gg) intercity 
                                        bus improvements;</DELETED>
                                        <DELETED>    ``(hh) freight 
                                        rail improvements;</DELETED>
                                        <DELETED>    ``(ii) use of 
                                        materials or equipment 
                                        associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;</DELETED>
                                        <DELETED>    ``(jj) public 
                                        facilities for supplying 
                                        electricity to electric or 
                                        plug-in hybrid-electric 
                                        vehicles; or</DELETED>
                                        <DELETED>    ``(kk) any other 
                                        effort that demonstrates 
                                        progress in reducing 
                                        transportation-related 
                                        greenhouse gas emissions in 
                                        each metropolitan planning 
                                        organization under this 
                                        subsection.</DELETED>
                <DELETED>    ``(D) Review and approval.--Not later than 
                180 days after the date of submission of a plan under 
                this section--</DELETED>
                        <DELETED>    ``(i) the Secretary and the 
                        Administrator shall review the plan; 
                        and</DELETED>
                        <DELETED>    ``(ii) the Secretary shall approve 
                        a plan developed by a metropolitan planning 
                        organization pursuant to subparagraph (C) if--
                        </DELETED>
                                <DELETED>    ``(I) the Secretary finds 
                                that a metropolitan planning 
                                organization has developed, submitted, 
                                and published the plan of the 
                                metropolitan planning organization 
                                pursuant to this section;</DELETED>
                                <DELETED>    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                metropolitan planning organization 
                                under this subsection; and</DELETED>
                                <DELETED>    ``(III) the development of 
                                the plan complies with the minimum 
                                requirements established under clauses 
                                (iii) and (iv) of subparagraph 
                                (C).</DELETED>
                <DELETED>    ``(E) Certification.--Failure to comply 
                with the requirements under subparagraph (C) shall not 
                impact certification standards under paragraph 
                (5).</DELETED>
        <DELETED>    ``(7) Definition of metropolitan planning 
        organization.--In this subsection, the term `metropolitan 
        planning organization' means a metropolitan planning 
        organization described in clause (i) or (ii) of paragraph 
        (6)(B).''.</DELETED>
<DELETED>    (c) States.--</DELETED>
        <DELETED>    (1) Title 23.--Section 135 of title 23, United 
        States Code, is amended--</DELETED>
                <DELETED>    (A) in subsection (d)(1)(E)--</DELETED>
                        <DELETED>    (i) 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,'';</DELETED>
                        <DELETED>    (ii) by inserting ``and public 
                        health'' after ``quality of life''; 
                        and</DELETED>
                        <DELETED>    (iii) by inserting ``, including 
                        housing and land use patterns'' after 
                        ``development patterns''; and</DELETED>
                <DELETED>    (B) in subsection (f)--</DELETED>
                        <DELETED>    (i) in paragraph (2)(D)(i)--
                        </DELETED>
                                <DELETED>    (I) by striking ``, as 
                                appropriate, in consultation'' and 
                                inserting ``in cooperation'';</DELETED>
                                <DELETED>    (II) by inserting ``State 
                                and local agencies responsible for 
                                transportation, public transportation, 
                                air quality, and housing and in 
                                consultation with'' before ``State, 
                                tribal''; and</DELETED>
                                <DELETED>    (III) by inserting 
                                ``public health,'' after 
                                ``conservation,'';</DELETED>
                        <DELETED>    (ii) in paragraph (3)(B)(iii), by 
                        inserting ``and through the website of the 
                        State, including emission reduction targets and 
                        strategies developed under paragraph (9) and an 
                        analysis of the anticipated effects of the 
                        targets and strategies'' after ``World Wide 
                        Web''; and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(9) Transportation greenhouse gas reduction 
        efforts.--</DELETED>
                <DELETED>    ``(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 to meet those targets.</DELETED>
                <DELETED>    ``(B) Establishment of targets and 
                criteria.--</DELETED>
                        <DELETED>    ``(i) In general.--Not later than 
                        2 years after the promulgation of the final 
                        regulations required under section 831 of the 
                        Clean Air Act, each State shall develop surface 
                        transportation-related greenhouse gas emission 
                        reduction targets, as well as strategies to 
                        meet those targets, in consultation with State 
                        air agencies as part of the transportation 
                        planning process under this section.</DELETED>
                        <DELETED>    ``(ii) Minimum requirements.--Each 
                        transportation plan developed by a State under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        in the State so as to contribute to the 
                        achievement of national targets pursuant to 
                        section 831(a)(1) of the Clean Air 
                        Act.</DELETED>
                        <DELETED>    ``(iii) Requirements for targets 
                        and strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--</DELETED>
                                <DELETED>    ``(I) be based on the 
                                emission models and related 
                                methodologies established in the final 
                                regulations required under section 831 
                                of the Clean Air Act;</DELETED>
                                <DELETED>    ``(II) inventory all 
                                sources of surface transportation-
                                related greenhouse gas 
                                emissions;</DELETED>
                                <DELETED>    ``(III) apply to those 
                                modes of surface transportation that 
                                are addressed in the planning process 
                                under this section;</DELETED>
                                <DELETED>    ``(IV) be integrated and 
                                consistent with statewide 
                                transportation plans and statewide 
                                transportation improvement programs; 
                                and</DELETED>
                                <DELETED>    ``(V) be selected through 
                                scenario analysis (as defined in 
                                section 134(k)), and include, pursuant 
                                to the requirements of the 
                                transportation planning process under 
                                this section, transportation investment 
                                and management strategies that reduce 
                                greenhouse gas emissions from the 
                                transportation sector over the life of 
                                the plan, such as--</DELETED>
                                        <DELETED>    ``(aa) efforts to 
                                        increase public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;</DELETED>
                                        <DELETED>    ``(bb) efforts to 
                                        increase walking, bicycling, 
                                        and other forms of nonmotorized 
                                        transportation;</DELETED>
                                        <DELETED>    ``(cc) 
                                        implementation of zoning and 
                                        other land use regulations and 
                                        plans to support infill, 
                                        transit-oriented development, 
                                        redevelopment, or mixed use 
                                        development;</DELETED>
                                        <DELETED>    ``(dd) travel 
                                        demand management programs 
                                        (including carpool, vanpool, or 
                                        car-share projects), 
                                        transportation pricing 
                                        measures, parking policies, and 
                                        programs to promote 
                                        telecommuting, flexible work 
                                        schedules, and satellite work 
                                        centers;</DELETED>
                                        <DELETED>    ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce 
                                        congestion and improve system 
                                        management;</DELETED>
                                        <DELETED>    ``(ff) intercity 
                                        passenger rail 
                                        improvements;</DELETED>
                                        <DELETED>    ``(gg) intercity 
                                        bus improvements;</DELETED>
                                        <DELETED>    ``(hh) freight 
                                        rail improvements;</DELETED>
                                        <DELETED>    ``(ii) use of 
                                        materials or equipment 
                                        associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;</DELETED>
                                        <DELETED>    ``(jj) public 
                                        facilities for supplying 
                                        electricity to electric or 
                                        plug-in hybrid-electric 
                                        vehicles; or</DELETED>
                                        <DELETED>    ``(kk) any other 
                                        effort that demonstrates 
                                        progress in reducing 
                                        transportation-related 
                                        greenhouse gas 
                                        emissions.</DELETED>
                <DELETED>    ``(C) Coordination and consultation with 
                public agencies.--Transportation greenhouse gas targets 
                and plans pursuant to this section shall be developed--
                </DELETED>
                        <DELETED>    ``(i) in coordination with--
                        </DELETED>
                                <DELETED>    ``(I) all metropolitan 
                                planning organizations covered by this 
                                section within the State; and</DELETED>
                                <DELETED>    ``(II) transportation and 
                                air quality agencies within the State; 
                                and</DELETED>
                        <DELETED>    ``(ii) in consultation with 
                        representatives of State and local housing, 
                        economic development, and land use 
                        agencies.</DELETED>
                <DELETED>    ``(D) Enforcement.--Not later than 180 
                days after the date of submission of a plan under this 
                section--</DELETED>
                        <DELETED>    ``(i) the Secretary and the 
                        Administrator shall review the plan; 
                        and</DELETED>
                        <DELETED>    ``(ii) the Secretary shall approve 
                        a plan developed by a State pursuant to 
                        subparagraph (B) if--</DELETED>
                                <DELETED>    ``(I) the Secretary finds 
                                that a State has developed, submitted, 
                                and published the plan pursuant to this 
                                section;</DELETED>
                                <DELETED>    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                State under this subsection; 
                                and</DELETED>
                                <DELETED>    ``(III) the development of 
                                the plan complies with the minimum 
                                requirements established under clauses 
                                (ii) and (iii) of subparagraph 
                                (B).</DELETED>
                <DELETED>    ``(E) Planning finding.--Failure to comply 
                with the requirements under subparagraph (B) shall not 
                impact the planning finding under subsection 
                (g)(7).''.</DELETED>
        <DELETED>    (2) Title 49.--Section 5304 of title 49, United 
        States Code is amended--</DELETED>
                <DELETED>    (A) in subsection (d)(1)(E)--</DELETED>
                        <DELETED>    (i) 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,'';</DELETED>
                        <DELETED>    (ii) by inserting ``and public 
                        health'' after ``quality of life''; 
                        and</DELETED>
                        <DELETED>    (iii) by inserting ``, including 
                        housing and land use patterns'' after 
                        ``development patterns''; and</DELETED>
                <DELETED>    (B) in subsection (f)--</DELETED>
                        <DELETED>    (i) in paragraph (2)(D)(i)--
                        </DELETED>
                                <DELETED>    (I) by striking ``, as 
                                appropriate, in consultation'' and 
                                inserting ``in cooperation'';</DELETED>
                                <DELETED>    (II) by inserting ``State 
                                and local agencies responsible for 
                                transportation, public transportation, 
                                air quality, and housing and in 
                                consultation with'' before ``State, 
                                tribal''; and</DELETED>
                                <DELETED>    (III) by inserting 
                                ``public health,'' after 
                                ``conservation,'';</DELETED>
                        <DELETED>    (ii) in paragraph (3)(B)(iii), by 
                        inserting ``and through the website of the 
                        State, including emission reduction targets and 
                        strategies developed under paragraph (9) and an 
                        analysis of the anticipated effects of the 
                        targets and strategies'' after ``World Wide 
                        Web''; and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(9) Transportation greenhouse gas reduction 
        efforts.--</DELETED>
                <DELETED>    ``(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 to meet those targets.</DELETED>
                <DELETED>    ``(B) Establishment of targets and 
                criteria.--</DELETED>
                        <DELETED>    ``(i) In general.--Not later than 
                        2 years after the promulgation of the final 
                        regulations required under section 831 of the 
                        Clean Air Act, each State shall develop surface 
                        transportation-related greenhouse gas emission 
                        reduction targets, as well as strategies to 
                        meet those targets, in consultation with State 
                        air agencies as part of the transportation 
                        planning process under this section.</DELETED>
                        <DELETED>    ``(ii) Minimum requirements.--Each 
                        transportation plan developed by a State under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        in the State so as to contribute to the 
                        achievement of national targets pursuant to 
                        section 831(a)(1) of the Clean Air 
                        Act.</DELETED>
                        <DELETED>    ``(iii) Requirements for targets 
                        and strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--</DELETED>
                                <DELETED>    ``(I) be based on the 
                                emission models and related 
                                methodologies established in the final 
                                regulations required under section 831 
                                of the Clean Air Act;</DELETED>
                                <DELETED>    ``(II) inventory all 
                                sources of surface transportation-
                                related greenhouse gas 
                                emissions;</DELETED>
                                <DELETED>    ``(III) apply to those 
                                modes of surface transportation that 
                                are addressed in the planning process 
                                under this section;</DELETED>
                                <DELETED>    ``(IV) be integrated and 
                                consistent with statewide 
                                transportation plans and statewide 
                                transportation improvement programs; 
                                and</DELETED>
                                <DELETED>    ``(V) be selected through 
                                scenario analysis (as defined in 
                                section 134(k) of title 23), and 
                                include, pursuant to the requirements 
                                of the transportation planning process 
                                under this section, transportation 
                                investment and management strategies 
                                that reduce greenhouse gas emissions 
                                from the transportation sector over the 
                                life of the plan, such as--</DELETED>
                                        <DELETED>    ``(aa) efforts to 
                                        increase public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;</DELETED>
                                        <DELETED>    ``(bb) efforts to 
                                        increase walking, bicycling, 
                                        and other forms of nonmotorized 
                                        transportation;</DELETED>
                                        <DELETED>    ``(cc) 
                                        implementation of zoning and 
                                        other land use regulations and 
                                        plans to support infill, 
                                        transit-oriented development, 
                                        redevelopment, or mixed use 
                                        development;</DELETED>
                                        <DELETED>    ``(dd) travel 
                                        demand management programs 
                                        (including carpool, vanpool, or 
                                        car-share projects), 
                                        transportation pricing 
                                        measures, parking policies, and 
                                        programs to promote 
                                        telecommuting, flexible work 
                                        schedules, and satellite work 
                                        centers;</DELETED>
                                        <DELETED>    ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce 
                                        congestion and improve system 
                                        management;</DELETED>
                                        <DELETED>    ``(ff) intercity 
                                        passenger rail 
                                        improvements;</DELETED>
                                        <DELETED>    ``(gg) intercity 
                                        bus improvements;</DELETED>
                                        <DELETED>    ``(hh) freight 
                                        rail improvements;</DELETED>
                                        <DELETED>    ``(ii) use of 
                                        materials or equipment 
                                        associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;</DELETED>
                                        <DELETED>    ``(jj) public 
                                        facilities for supplying 
                                        electricity to electric or 
                                        plug-in hybrid-electric 
                                        vehicles; or</DELETED>
                                        <DELETED>    ``(kk) any other 
                                        effort that demonstrates 
                                        progress in reducing 
                                        transportation-related 
                                        greenhouse gas 
                                        emissions.</DELETED>
                <DELETED>    ``(C) Coordination and consultation with 
                public agencies.--Transportation greenhouse gas targets 
                and plans pursuant to this section shall be developed--
                </DELETED>
                        <DELETED>    ``(i) in coordination with--
                        </DELETED>
                                <DELETED>    ``(I) all metropolitan 
                                planning organizations covered by this 
                                section within the State; and</DELETED>
                                <DELETED>    ``(II) transportation and 
                                air quality agencies within the State; 
                                and</DELETED>
                        <DELETED>    ``(ii) in consultation with 
                        representatives of State and local housing, 
                        economic development, and land use 
                        agencies.</DELETED>
                <DELETED>    ``(D) Enforcement.--Not later than 180 
                days after the date of submission of a plan under this 
                section--</DELETED>
                        <DELETED>    ``(i) the Secretary and the 
                        Administrator shall review the plan; 
                        and</DELETED>
                        <DELETED>    ``(ii) the Secretary shall approve 
                        a plan developed by a State pursuant to 
                        subparagraph (B) if--</DELETED>
                                <DELETED>    ``(I) the Secretary finds 
                                that a State has developed, submitted, 
                                and published the plan pursuant to this 
                                section;</DELETED>
                                <DELETED>    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                State under this subsection; 
                                and</DELETED>
                                <DELETED>    ``(III) the development of 
                                the plan complies with the minimum 
                                requirements established under clauses 
                                (ii) and (iii) of subparagraph 
                                (B).</DELETED>
                <DELETED>    ``(E) Planning finding.--Failure to comply 
                with the requirements under subparagraph (B) shall not 
                impact the planning finding under subsection 
                (g)(7).''.</DELETED>
<DELETED>    (d) Applicability.--Section 304 of the Clean Air Act (42 
U.S.C. 7604) shall not apply to the planning provisions of this section 
or any amendment made by this section.</DELETED>
<DELETED>    (e) Land Use Authority.--Nothing in this section or an 
amendment made by this section--</DELETED>
        <DELETED>    (1) infringes on the existing authority of local 
        governments to plan or control land use; or</DELETED>
        <DELETED>    (2) provides or transfers authority over land use 
        to any other entity.</DELETED>

<DELETED>SEC. 113. TRANSPORTATION GREENHOUSE GAS EMISSION REDUCTION 
              PROGRAM GRANTS.</DELETED>

<DELETED>    Part C of title VIII of the Clean Air Act (as amended by 
section 112) is amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 832. TRANSPORTATION GREENHOUSE GAS EMISSION REDUCTION 
              PROGRAM GRANTS.</DELETED>

<DELETED>    ``(a) In General.--The Secretary of Transportation 
(referred to in this section as the `Secretary') shall provide grants 
to States and metropolitan planning organizations to carry out the 
purposes of this section for each fiscal year--</DELETED>
        <DELETED>    ``(1) to support the developing and updating of 
        transportation greenhouse gas reduction targets and strategies; 
        and</DELETED>
        <DELETED>    ``(2) to provide financial assistance to implement 
        plans approved pursuant to--</DELETED>
                <DELETED>    ``(A) sections 134(k)(6) and 135(f)(9) of 
                title 23, United States Code; and</DELETED>
                <DELETED>    ``(B) sections 5303(k)(6) and 5304(f)(9) 
                of title 49, United States Code.</DELETED>
<DELETED>    ``(b) Planning Grants.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), the 
        Secretary shall allocate not more than 5 percent of the funds 
        available to carry out this section for a fiscal year for 
        metropolitan planning organizations to develop and update 
        transportation plans, including targets and strategies for 
        greehouse gas emission reduction under--</DELETED>
                <DELETED>    ``(A) sections 134(k)(6) and 135(f)(9) of 
                title 23, United States Code; and</DELETED>
                <DELETED>    ``(B) sections 5303(k)(6) and 5304(f)(9) 
                of title 49, United States Code.</DELETED>
        <DELETED>    ``(2) Eligible organizations.--The Secretary shall 
        distribute the funds available in (1) to metropolitan planning 
        organizations (as defined in section 134(k)(7) of title 23, 
        United States Code) in the proportion that--</DELETED>
                <DELETED>    ``(A) the population within such a 
                metropolitan planning organization; bears to</DELETED>
                <DELETED>    ``(B) the total population of all such 
                metropolitan planning organizations.</DELETED>
<DELETED>    ``(c) Performance Grants.--</DELETED>
        <DELETED>    ``(1) In general.--After allocating funds pursuant 
        to subsection (b)(1), the Secretary shall use the remainder of 
        amounts made available to carry out this section to provide 
        grants to States and metropolitan planning 
        organizations.</DELETED>
        <DELETED>    ``(2) Criteria.--In providing grants under this 
        subsection, the Secretary, in consultation with the 
        Administrator, shall develop criteria for providing the grants, 
        taking into consideration, with respect to areas to be covered 
        by the grants--</DELETED>
                <DELETED>    ``(A) the quantity of total greenhouse gas 
                emissions to be reduced as a result of implementation 
                of a plan, within a covered area, as determined by 
                methods established under section 831(a);</DELETED>
                <DELETED>    ``(B) the quantity of total greenhouse gas 
                emissions to be reduced per capita as a result of 
                implementation of a plan, within the covered area, as 
                determined by methods established under section 
                831(a);</DELETED>
                <DELETED>    ``(C) the cost-effectiveness of reducing 
                greenhouse gas emissions during the life of the 
                plan;</DELETED>
                <DELETED>    ``(D) progress toward achieving emission 
                reductions target established under--</DELETED>
                        <DELETED>    ``(i) sections 134(k)(6) and 
                        135(f)(9) of title 23, United States Code; 
                        and</DELETED>
                        <DELETED>    ``(ii) sections 5303(k)(6) and 
                        5304(f)(9) of title 49, United States 
                        Code;</DELETED>
                <DELETED>    ``(E) reductions in greenhouse gas 
                emissions previously achieved by States and 
                metropolitan planning organizations during the 5-year 
                period beginning on the date of enactment of this 
                Act;</DELETED>
                <DELETED>    ``(F) plans that increase transportation 
                options and mobility, particularly for low-income 
                individuals, minorities, the elderly, households 
                without motor vehicles, cost-burdened households, and 
                the disabled; and</DELETED>
                <DELETED>    ``(G) other factors, including innovative 
                approaches, minimization of costs, and consideration of 
                economic development, revenue generation, consumer fuel 
                cost-savings, and other economic, environmental and 
                health benefits, as the Secretary determines to be 
                appropriate.</DELETED>
<DELETED>    ``(d) Requirement for Reduced Emissions.--A performance 
grant under subsection (c) may be used only to fund strategies that 
demonstrate a reduction in greenhouse gas emissions that is sustainable 
over the life of the applicable transportation plan.</DELETED>
<DELETED>    ``(e) Cost-Sharing.--The Federal share of the costs of a 
project receiving Federal financial assistance under this section shall 
be 80 percent.</DELETED>
<DELETED>    ``(f) Compliance With Applicable Laws.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), a 
        project receiving funds under this section shall comply with 
        all applicable Federal laws (including regulations), 
        including--</DELETED>
                <DELETED>    ``(A) subchapter IV of chapter 31 of title 
                40, United States Code; and</DELETED>
                <DELETED>    ``(B) applicable requirements of titles 23 
                and 49, United States Code.</DELETED>
        <DELETED>    ``(2) Eligibility.--Project eligibility shall be 
        determined in accordance with this section.</DELETED>
        <DELETED>    ``(3) Determination of applicable modal 
        requirements.--The Secretary shall--</DELETED>
                <DELETED>    ``(A) have the discretion to designate the 
                specific modal requirements that shall apply to a 
                project; and</DELETED>
                <DELETED>    ``(B) be guided by the predominant modal 
                characteristics of the project in the event that a 
                project has cross-modal application.</DELETED>
<DELETED>    ``(g) Additional Requirements.--</DELETED>
        <DELETED>    ``(1) In general.--As a condition on the receipt 
        of financial assistance under this section, the interests of 
        public transportation employees affected by the assistance 
        shall be protected under arrangements that the Secretary of 
        Labor determines--</DELETED>
                <DELETED>    ``(A) to be fair and equitable; 
                and</DELETED>
                <DELETED>    ``(B) to provide benefits equal to the 
                benefits established under section 5333(b) of title 49, 
                United States Code.</DELETED>
        <DELETED>    ``(2) Wages and benefits.--Laborers and mechanics 
        employed on projects funded with amounts made available under 
        this section shall be paid wages and benefits not less than 
        those determined by the Secretary of Labor under subchapter IV 
        of chapter 31 of title 40, United States Code, to be prevailing 
        in the same locality.</DELETED>
<DELETED>    ``(h) Miscellaneous.--</DELETED>
        <DELETED>    ``(1) Road-use and congestion pricing measures.--
        All projects funded by amounts made available under this 
        section shall be eligible to receive amounts collected through 
        road-use and congestion pricing measures.</DELETED>
        <DELETED>    ``(2) Limitations.--The Administrator may not 
        approve any transportation plan for a project that would be 
        inconsistent with existing design, procurement, and 
        construction guidelines established by the Department of 
        Transportation.</DELETED>
        <DELETED>    ``(3) Subgrantees.--With the approval of the 
        Secretary, recipients of funding under this section may enter 
        into agreements providing for the transfer of funds to 
        noneligible public entities (such as local governments, air 
        quality agencies, zoning commissions, special districts and 
        transit agencies) that have statutory responsibility or 
        authority for actions necessary to implement the strategies 
        pursuant to--</DELETED>
                <DELETED>    ``(A) sections 134(k)(6) and 135(f)(9) of 
                title 23, United States Code; and</DELETED>
                <DELETED>    ``(B) sections 5303(k)(6) and 5304(f)(9) 
                of title 49, United States Code.''.</DELETED>

<DELETED>SEC. 114. SMARTWAY TRANSPORTATION EFFICIENCY 
              PROGRAM.</DELETED>

<DELETED>    Part B of title VIII of the Clean Air Act (as amended by 
section 111) is amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY 
              PROGRAM.</DELETED>

<DELETED>    ``(a) In General.--There is established within the 
Environmental Protection Agency a SmartWay Transportation Efficiency 
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.</DELETED>
<DELETED>    ``(b) General Duties.--Under the program established under 
this section, the Administrator shall carry out each of the 
following:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Development of partnership and recognition 
        programs to promote best practices and drive demand for energy-
        efficient, low-greenhouse gas transportation 
        performance.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) SmartWay Transport Freight Partnership.--The 
Administrator shall establish a SmartWay Transport 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:</DELETED>
        <DELETED>    ``(1) Verification of the energy and greenhouse 
        gas performance of participating freight carriers, including 
        those operating rail, trucking, marine, and other goods 
        movement operations.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Development of tools for--</DELETED>
                <DELETED>    ``(A) carriers to calculate their energy 
                and greenhouse gas performance; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Provision of recognition opportunities for 
        participating shipper and carrier companies demonstrating 
        advanced practices and achieving superior levels of greenhouse 
        gas performance.</DELETED>
<DELETED>    ``(d) Improving Freight Greenhouse Gas Performance 
Databases.--The Administrator shall, in coordination with the Secretary 
of Commerce and 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 as part of the 
economic census required under title 13, United States Code.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(f) Purposes.--Under the SmartWay Financing Program, 
eligible entities shall--</DELETED>
        <DELETED>    ``(1) use funds awarded by the Administrator to 
        provide flexible loan and/or lease terms that increase approval 
        rates or lower the costs of loans and/or leases in accordance 
        with guidance developed by the Administrator;</DELETED>
        <DELETED>    ``(2) make such loans and/or 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; and</DELETED>
        <DELETED>    ``(3) use funds provided by the Administrator for 
        electrification of freight transportation systems in major 
        national goods movement corridors, giving priority to 
        electrification of transportation systems in areas that are 
        gateways for high volumes of international and national freight 
        transport and require substantial criteria pollutant emission 
        reductions in order to attain national ambient air quality 
        standards.</DELETED>
<DELETED>    ``(g) Program Requirements.--The Administrator shall 
determine program design elements and requirements, including--
</DELETED>
        <DELETED>    ``(1) the type of financial mechanism with which 
        to award funding, in the form of grants and/or 
        contracts;</DELETED>
        <DELETED>    ``(2) the designation of eligible entities to 
        receive funding, such as State, tribal, and local governments, 
        regional organizations comprised of governmental units, 
        nonprofit organizations, or for-profit companies;</DELETED>
        <DELETED>    ``(3) criteria for evaluating applications from 
        eligible entities, including anticipated--</DELETED>
                <DELETED>    ``(A) cost-effectiveness of loan or lease 
                program on a metric-ton-of-greenhouse gas-saved-per-
                dollar basis; and</DELETED>
                <DELETED>    ``(B) ability to promote the loan or lease 
                program and associated technologies and strategies to 
                the target audience; and</DELETED>
        <DELETED>    ``(4) reporting requirements for entities that 
        receive awards, including--</DELETED>
                <DELETED>    ``(A) actual cost-effectiveness and 
                greenhouse gas savings from the loan or lease program 
                based on a methodology designated by the 
                Administrator;</DELETED>
                <DELETED>    ``(B) the total number of applications and 
                number of approved applications; and</DELETED>
                <DELETED>    ``(C) terms granted to loan and lease 
                recipients compared to prevailing market practices and/
                or rates.</DELETED>
<DELETED>    ``(h) Authorization of Appropriations.--Such sums as 
necessary are authorized to be appropriated to the Administrator to 
carry out this section.''.</DELETED>

    <DELETED>Subtitle B--Carbon Capture and Sequestration</DELETED>

<DELETED>SEC. 121. NATIONAL STRATEGY.</DELETED>

<DELETED>    (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 establishing a unified and 
comprehensive strategy to address the key legal, regulatory, and other 
barriers to the commercial-scale deployment of carbon capture and 
storage.</DELETED>
<DELETED>    (b) Barriers.--The report under this section shall--
</DELETED>
        <DELETED>    (1) identify the regulatory, legal, and other gaps 
        and barriers that--</DELETED>
                <DELETED>    (A) could be addressed by a Federal agency 
                using existing statutory authority;</DELETED>
                <DELETED>    (B) require Federal legislation, if any; 
                or</DELETED>
                <DELETED>    (C) would be best addressed at the State, 
                tribal, or regional level;</DELETED>
        <DELETED>    (2) identify regulatory implementation challenges, 
        including challenges relating to approval of State and tribal 
        programs and delegation of authority for permitting; 
        and</DELETED>
        <DELETED>    (3) recommend rulemakings, Federal legislation, or 
        other actions that should be taken to further evaluate and 
        address those barriers.</DELETED>
<DELETED>    (c) Finding.--Congress finds that it is in the public 
interest to achieve widespread, commercial-scale deployment of carbon 
capture and storage in the United States and throughout Asia before 
January 1, 2030.</DELETED>

<DELETED>SEC. 122. REGULATIONS FOR GEOLOGICAL SEQUESTRATION 
              SITES.</DELETED>

<DELETED>    (a) Coordinated Certification and Permitting Process.--
Part A of title VIII of the Clean Air Act (as amended by section 124 of 
this division) is amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 813. GEOLOGICAL STORAGE SITES.</DELETED>

<DELETED>    ``(a) Coordinated Process.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator shall 
        establish a coordinated approach to certifying and permitting 
        geological storage, taking into consideration all relevant 
        statutory authorities.</DELETED>
        <DELETED>    ``(2) Requirements.--In establishing such 
        approach, the Administrator shall--</DELETED>
                <DELETED>    ``(A) take into account, and reduce 
                redundancy with, the requirements of section 1421 of 
                the Safe Drinking Water Act (42 U.S.C. 300h), including 
                the rulemaking for geological storage wells described 
                in the proposed rule entitled `Federal Requirements 
                Under the Underground Injection Control (UIC) Program 
                for Carbon Dioxide (CO2) Geologic Sequestration (GS) 
                Wells' (73 Fed. Reg. 43492 (July 25, 2008)); 
                and</DELETED>
                <DELETED>    ``(B) to the maximum extent practicable, 
                reduce the burden on certified entities and 
                implementing authorities.</DELETED>
<DELETED>    ``(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 geological storage.</DELETED>
<DELETED>    ``(c) Requirements.--The regulations under subsection (b) 
shall include--</DELETED>
        <DELETED>    ``(1) a process to obtain certification for 
        geological storage under this section; and</DELETED>
        <DELETED>    ``(2) requirements for--</DELETED>
                <DELETED>    ``(A) monitoring, recordkeeping, and 
                reporting for emissions associated with injection into, 
                and escape from, geological storage sites, taking into 
                account any requirements or protocols developed under 
                section 713;</DELETED>
                <DELETED>    ``(B) public participation in the 
                certification process that maximizes 
                transparency;</DELETED>
                <DELETED>    ``(C) the sharing of data among States, 
                Indian tribes, and the Environmental Protection Agency; 
                and</DELETED>
                <DELETED>    ``(D) other elements or safeguards 
                necessary to achieve the purpose described in 
                subsection (b).</DELETED>
<DELETED>    ``(d) Report.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than 2 years after 
        the date of promulgation of regulations pursuant to subsection 
        (b), and not less frequently than once every 3 years 
        thereafter, the Administrator shall submit 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 describing geological storage in the United States, and, 
        to the extent relevant, other countries in North 
        America.</DELETED>
        <DELETED>    ``(2) Inclusions.--Each report under paragraph (1) 
        shall include--</DELETED>
                <DELETED>    ``(A) data regarding injection, emissions 
                to the atmosphere, if any, and performance of active 
                and closed geological storage sites, including those at 
                which enhanced hydrocarbon recovery operations 
                occur;</DELETED>
                <DELETED>    ``(B) an evaluation of the performance of 
                relevant Federal environmental regulations and programs 
                in ensuring environmentally protective geological 
                storage practices;</DELETED>
                <DELETED>    ``(C) recommendations on how those 
                programs and regulations should be improved or made 
                more effective; and</DELETED>
                <DELETED>    ``(D) other relevant 
                information.''.</DELETED>
<DELETED>    (b) Safe Drinking Water Act Standards.--Section 1421 of 
the Safe Drinking Water Act (42 U.S.C. 300h) is amended by adding at 
the end the following:</DELETED>
<DELETED>    ``(e) Carbon Dioxide Geological Storage Wells.--</DELETED>
        <DELETED>    ``(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 
        geological storage wells.</DELETED>
        <DELETED>    ``(2) Financial responsibility.--</DELETED>
                <DELETED>    ``(A) In general.--The regulations under 
                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.</DELETED>
                <DELETED>    ``(B) Regulations.--Financial 
                responsibility may be established for carbon dioxide 
                geological wells in accordance with regulations 
                promulgated by the Administrator by any 1, or any 
                combination, of the following:</DELETED>
                        <DELETED>    ``(i) Insurance.</DELETED>
                        <DELETED>    ``(ii) Guarantee.</DELETED>
                        <DELETED>    ``(iii) Trust.</DELETED>
                        <DELETED>    ``(iv) Standby trust.</DELETED>
                        <DELETED>    ``(v) Surety bond.</DELETED>
                        <DELETED>    ``(vi) Letter of credit.</DELETED>
                        <DELETED>    ``(vii) Qualification as a self-
                        insurer.</DELETED>
                        <DELETED>    ``(viii) Any other method 
                        satisfactory to the Administrator.''.</DELETED>

<DELETED>SEC. 123. STUDIES AND REPORTS.</DELETED>

<DELETED>    (a) Study of Legal Framework for Geological Storage 
Sites.--</DELETED>
        <DELETED>    (1) Establishment of task force.--</DELETED>
                <DELETED>    (A) In general.--As soon as practicable, 
                but not later than 180 days after the date of enactment 
                of this Act, the Administrator shall establish a task 
                force, to be composed of an equal number of--</DELETED>
                        <DELETED>    (i) subject matter 
                        experts;</DELETED>
                        <DELETED>    (ii) nongovernmental organizations 
                        with expertise regarding environmental 
                        policy;</DELETED>
                        <DELETED>    (iii) academic experts with 
                        expertise in environmental law;</DELETED>
                        <DELETED>    (iv) State and tribal officials 
                        with environmental expertise;</DELETED>
                        <DELETED>    (v) representatives of State and 
                        tribal attorneys general;</DELETED>
                        <DELETED>    (vi) representatives of the 
                        Environmental Protection Agency, the Department 
                        of the Interior, the Department of Energy, the 
                        Department of Transportation, and other 
                        relevant Federal agencies; and</DELETED>
                        <DELETED>    (vii) members of the private 
                        sector.</DELETED>
                <DELETED>    (B) Study.--The task force established 
                under subparagraph (A) shall conduct a study of--
                </DELETED>
                        <DELETED>    (i) existing Federal environmental 
                        statutes, State environmental statutes, and 
                        State common law that apply to geological 
                        storage sites for carbon dioxide, including the 
                        ability of those laws to serve as risk 
                        management tools;</DELETED>
                        <DELETED>    (ii) the existing statutory 
                        framework, including Federal and State laws, 
                        that apply to harm and damage to the 
                        environment or public health at closed sites at 
                        which carbon dioxide injection has been used 
                        for enhanced hydrocarbon recovery;</DELETED>
                        <DELETED>    (iii) 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 geological storage 
                        sites;</DELETED>
                        <DELETED>    (iv) private sector mechanisms, 
                        including insurance and bonding, that may be 
                        available to manage environmental, health, and 
                        safety risks from closed geological storage 
                        sites; and</DELETED>
                        <DELETED>    (v) the subsurface mineral rights, 
                        water rights, and property rights issues 
                        associated with geological storage of carbon 
                        dioxide, including issues specific to Federal 
                        land.</DELETED>
        <DELETED>    (2) Report.--Not later than 18 months after the 
        date of enactment of this Act, the task force established under 
        paragraph (1)(A) shall submit to Congress a report describing 
        the results of the study conducted under that paragraph, 
        including any consensus recommendations of the task 
        force.</DELETED>
<DELETED>    (b) Environmental Statutes.--</DELETED>
        <DELETED>    (1) Study.--The Administrator shall conduct a 
        study of the means by which, and under what circumstances, the 
        environmental statutes for which the Environmental Protection 
        Agency has responsibility would apply to carbon dioxide 
        injection and geological storage activities.</DELETED>
        <DELETED>    (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).</DELETED>

<DELETED>SEC. 124. PERFORMANCE STANDARDS FOR COAL-FUELED POWER 
              PLANTS.</DELETED>

<DELETED>    (a) In General.--Part A of title VIII of the Clean Air Act 
(as added by section 121 of division B) is amended by adding at the end 
the following:</DELETED>

<DELETED>``SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER 
              PLANTS.</DELETED>

<DELETED>    ``(a) Definitions.--For purposes of this 
section:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Initially permitted.--The term `initially 
        permitted' means that the owner or operator has received a 
        preconstruction approval or permit under this Act, 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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(i) have a total of at least 4 gigawatts 
                of nameplate generating capacity of which--</DELETED>
                        <DELETED>    ``(I) at least 3 gigawatts must be 
                        electric generating units; and</DELETED>
                        <DELETED>    ``(II) up to 1 gigawatt may be 
                        industrial applications, for which capture and 
                        sequestration of 3,000,000 tons of carbon 
                        dioxide per year on an aggregate annualized 
                        basis shall be considered equivalent to 1 
                        gigawatt;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(iii) are capturing and sequestering in 
                the aggregate at least 12,000,000 tons of carbon 
                dioxide per year, calculated on an aggregate annualized 
                basis.</DELETED>
        <DELETED>    ``(B) January 1, 2025.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d)  Reports.--Not later than 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 775(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).</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 125. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND 
              EARLY DEPLOYMENT PROGRAM.</DELETED>

<DELETED>    (a) Definitions.--For purposes of this section:</DELETED>
        <DELETED>    (1) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Electric utility.--The term ``electric 
        utility'' has the meaning provided by section 3 of the Federal 
        Power Act (16 U.S.C. 796).</DELETED>
        <DELETED>    (4) Fossil fuel-based electricity.--The term 
        ``fossil fuel-based electricity'' means electricity that is 
        produced from the combustion of fossil fuels.</DELETED>
        <DELETED>    (5) Fossil fuel.--The term ``fossil fuel'' means 
        coal, petroleum, natural gas or any derivative of coal, 
        petroleum, or natural gas.</DELETED>
        <DELETED>    (6) Corporation.--The term ``Corporation'' means 
        the Carbon Storage Research Corporation established in 
        accordance with this section.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (8) Retail consumer.--The term ``retail consumer'' 
        means an end-user of electricity.</DELETED>
<DELETED>    (b) Carbon Storage Research Corporation.--</DELETED>
        <DELETED>    (1) Establishment.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
                <DELETED>    (A) Members.--The Board shall include at 
                least 1 representative of each of the 
                following:</DELETED>
                        <DELETED>    (i) Investor-owned 
                        utilities.</DELETED>
                        <DELETED>    (ii) Utilities owned by a State 
                        agency, a municipality, and an Indian 
                        tribe.</DELETED>
                        <DELETED>    (iii) Rural electric 
                        cooperatives.</DELETED>
                        <DELETED>    (iv) Fossil fuel 
                        producers.</DELETED>
                        <DELETED>    (v) Nonprofit environmental 
                        organizations.</DELETED>
                        <DELETED>    (vi) Independent generators or 
                        wholesale power providers.</DELETED>
                        <DELETED>    (vii) Consumer groups.</DELETED>
                        <DELETED>    (viii) The National Energy 
                        Technology laboratory of the Department of 
                        Energy.</DELETED>
                        <DELETED>    (ix) The Environmental Protection 
                        Agency.</DELETED>
                <DELETED>    (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 of the Public Utility Regulatory 
                Policies Act of 1978 (16 U.S.C. 2602), each designated 
                by the National Association of State Regulatory Utility 
                Commissioners from States that are not within the same 
                transmission interconnection.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (c) Functions and Administration of the Corporation.--
</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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. Projects supported by the 
        Corporation shall meet the eligibility criteria of section 
        780(b) of the Clean Air Act.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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)).</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Assessments.--</DELETED>
        <DELETED>    (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:</DELETED>

Fuel type                               Rate of assessment per kilowatt
                                         hour
  Coal................................  $0.00043
  Natural Gas.........................  $0.00022
  Oil.................................  $0.00032.
 

        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (e)  ERCOT.--</DELETED>
        <DELETED>    (1) Assessment, collection, and remittance.--(A) 
        Notwithstanding any other provision of this section, within 
        ERCOT, the assessment provided for in subsection (d) shall be--
        </DELETED>
                <DELETED>    (i) levied directly on qualified 
                scheduling entities, or their successor 
                entities;</DELETED>
                <DELETED>    (ii) charged consistent with other charges 
                imposed on qualified scheduling entities as a fee on 
                energy used by the load-serving entities; and</DELETED>
                <DELETED>    (iii) collected and remitted by ERCOT to 
                the Corporation in the amounts and in the same manner 
                as set forth in subsection (d).</DELETED>
        <DELETED>    (B) The assessment amounts referred to in 
        subparagraph (A) shall be--</DELETED>
                <DELETED>    (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); and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Audit.--ERCOT shall provide a copy of its 
        annual audit pertaining to the administration of the provisions 
        of this subsection to the Corporation.</DELETED>
        <DELETED>    (4) Definitions.--For the purposes of this 
        subsection:</DELETED>
                <DELETED>    (A) The term ``ERCOT'' means the Electric 
                Reliability Council of Texas.</DELETED>
                <DELETED>    (B) The term ``load-serving entities'' has 
                the meaning adopted by ERCOT Protocols and in effect on 
                the date of enactment of this Act.</DELETED>
                <DELETED>    (C) The term ``qualified scheduling 
                entities'' has the meaning adopted by ERCOT Protocols 
                and in effect on the date of enactment of this 
                Act.</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (f) Determination of Fossil Fuel-Based Electricity 
Deliveries.--</DELETED>
        <DELETED>    (1) Findings.--The Congress finds that:</DELETED>
                <DELETED>    (A) The assessments under subsection (d) 
                are to be collected based on the amount of fossil fuel-
                based electricity delivered by each distribution 
                utility.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (i) Recovery of Costs.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
<DELETED>    (j) Technical Advisory Committee.--</DELETED>
        <DELETED>    (1) Establishment.--There is established an 
        advisory committee, to be known as the ``Technical Advisory 
        Committee''.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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 subchapter IV of chapter 31 of title 40, 
United States Code (commonly known as the ``Davis-Bacon 
Act'').</DELETED>

    <DELETED>Subtitle C--Nuclear and Advanced Technologies</DELETED>

<DELETED>SEC. 131. FINDINGS AND POLICY.</DELETED>

<DELETED>    (a) Findings.--Congress finds that--</DELETED>
        <DELETED>    (1) in 2008, 104 nuclear power plants produced 
        19.6 percent of the electricity generated in the United States, 
        slightly less than the electricity generated by natural 
        gas;</DELETED>
        <DELETED>    (2) nuclear energy is the largest provider of 
        clean, low-carbon, electricity, almost 8 times larger than all 
        renewable power production combined, excluding hydroelectric 
        power;</DELETED>
        <DELETED>    (3) nuclear energy supplies consistent, base-load 
        electricity, independent of environmental conditions;</DELETED>
        <DELETED>    (4) by displacing fossil fuels that would 
        otherwise be used for electricity production, nuclear power 
        plants virtually eliminate emissions of greenhouse gases and 
        criteria pollutants associated with acid rain, smog, or 
        ozone;</DELETED>
        <DELETED>    (5) nuclear power generation continues to require 
        robust efforts to address issues of safety, waste, and 
        proliferation;</DELETED>
        <DELETED>    (6) even if every nuclear plant is granted a 20-
        year extension, all currently operating nuclear plants will be 
        retired by 2055;</DELETED>
        <DELETED>    (7) long lead times for nuclear power plant 
        construction indicate that action to stimulate the nuclear 
        power industry should not be delayed;</DELETED>
        <DELETED>    (8) the high upfront capital costs of nuclear 
        plant construction remain a substantial obstacle, despite 
        theoretical potential for significant cost reduction;</DELETED>
        <DELETED>    (9) translating theoretical cost reduction 
        potential into actual reduced construction costs remains a 
        significant industry challenge that can be overcome only 
        through demonstrated performance;</DELETED>
        <DELETED>    (10) as of January 2009, 17 companies and 
        consortia have submitted applications to the Nuclear Regulatory 
        Commission for 26 new reactors in the United States;</DELETED>
        <DELETED>    (11) those proposed reactors will use the latest 
        in nuclear technology for efficiency and safety, more advanced 
        than the technology of the 1960s and 1970s found in the 
        reactors currently operating in the United States;</DELETED>
        <DELETED>    (12) increased resources for the Nuclear 
        Regulatory Commission and reform of the licensing process have 
        improved the safety and timeliness of the regulatory 
        environment;</DELETED>
        <DELETED>    (13) the United States has not built a new reactor 
        since the 1970s and, as a result, will need to revitalize and 
        retool the institutions and infrastructure necessary to 
        construct, maintain, and support new reactors, including 
        improvements in manufacturing of nuclear components and 
        training for the next generation nuclear workforce; 
        and</DELETED>
        <DELETED>    (14) those new reactors will launch a new era for 
        the nuclear industry, and translate into tens of thousands of 
        jobs.</DELETED>
<DELETED>    (b) Statement of Policy.--It is the policy of the United 
States, given the importance of transitioning to a clean energy, low-
carbon economy, to facilitate the continued development and growth of a 
safe and clean nuclear energy industry, through--</DELETED>
        <DELETED>    (1) reductions in financial and technical barriers 
        to construction and operation; and</DELETED>
        <DELETED>    (2) incentives for the development of a well-
        trained workforce and the growth of safe domestic nuclear and 
        nuclear-related industries.</DELETED>

<DELETED>SEC. 132. NUCLEAR WORKER TRAINING.</DELETED>

<DELETED>    (a) Definition of Applicable Period.--In this section, the 
term ``applicable period'' means--</DELETED>
        <DELETED>    (1) the 5-year period beginning on January 1, 
        2012; and</DELETED>
        <DELETED>    (2) each 5-year period beginning on each January 1 
        thereafter.</DELETED>
<DELETED>    (b) Use of Funds.--Of amounts made available to carry out 
this section for the calendar years in each applicable period--
</DELETED>
        <DELETED>    (1) the Secretary of Energy shall use such amounts 
        for each applicable period as the Secretary of Energy 
        determines to be necessary to increase the number and amounts 
        of nuclear science talent expansion grants and nuclear science 
        competitiveness grants provided under section 5004 of the 
        America COMPETES Act (42 U.S.C. 16532); and</DELETED>
        <DELETED>    (2) the Secretary of Labor, in consultation with 
        nuclear energy entities and organized labor, shall use such 
        amounts for each applicable period as the Secretary of Labor 
        determines to be necessary to carry out programs expanding 
        workforce training to meet the high demand for workers skilled 
        in nuclear power plant construction and operation, including 
        programs for--</DELETED>
                <DELETED>    (A) electrical craft 
                certification;</DELETED>
                <DELETED>    (B) preapprenticeship career technical 
                education for industrialized skilled crafts that are 
                useful in the construction of nuclear power 
                plants;</DELETED>
                <DELETED>    (C) community college and skill center 
                training for nuclear power plant technicians;</DELETED>
                <DELETED>    (D) training of construction management 
                personnel for nuclear power plant construction 
                projects; and</DELETED>
                <DELETED>    (E) regional grants for integrated nuclear 
                energy workforce development programs.</DELETED>

<DELETED>SEC. 133. NUCLEAR SAFETY AND WASTE MANAGEMENT 
              PROGRAMS.</DELETED>

<DELETED>    (a) Nuclear Facility Long-Term Operations Research and 
Development Program.--</DELETED>
        <DELETED>    (1) Establishment.--As soon as practicable after 
        the date of enactment of this Act, the Secretary of Energy 
        (referred to in this section as the ``Secretary'') shall 
        establish a research and development program--</DELETED>
                <DELETED>    (A) to address the reliability, 
                availability, productivity, component aging, safety, 
                and security of nuclear power plants;</DELETED>
                <DELETED>    (B) to improve the performance of nuclear 
                power plants;</DELETED>
                <DELETED>    (C) to sustain the health and safety of 
                employees of nuclear power plants;</DELETED>
                <DELETED>    (D) to assess the feasibility of nuclear 
                power plants to continue to provide clean and economic 
                electricity safely, substantially beyond the first 
                license extension period of the nuclear power plants, 
                which will--</DELETED>
                        <DELETED>    (i) significantly contribute to 
                        the energy security of the United States; 
                        and</DELETED>
                        <DELETED>    (ii) help protect the environment 
                        of the United States; and</DELETED>
                <DELETED>    (E) to support significant carbon 
                reductions, lower overall costs that are required to 
                reduce carbon emissions, and increase energy 
                security.</DELETED>
        <DELETED>    (2) Conduct of program.--</DELETED>
                <DELETED>    (A) In general.--In carrying out the 
                program established under paragraph (1), the Secretary 
                shall--</DELETED>
                        <DELETED>    (i) build a fundamental scientific 
                        basis to understand, predict, and measure 
                        changes in materials, systems, structures, 
                        equipment, and components as the materials, 
                        systems, structures, equipment, and components 
                        age through continued operations in long-term 
                        service environments;</DELETED>
                        <DELETED>    (ii) develop new safety analysis 
                        tools and methods to enhance the performance 
                        and safety of nuclear power plants;</DELETED>
                        <DELETED>    (iii) develop advanced online 
                        monitoring, control, and diagnostics 
                        technologies to prevent equipment failures and 
                        improve the safety of nuclear power 
                        plants;</DELETED>
                        <DELETED>    (iv) establish a technical basis 
                        for advanced fuel designs (including silicon 
                        carbide fuel cladding) to increase the safety 
                        margins of nuclear power plants; and</DELETED>
                        <DELETED>    (v) examine issues, including--
                        </DELETED>
                                <DELETED>    (I) issues relating to 
                                material degradation, plant aging, and 
                                technology upgrades; and</DELETED>
                                <DELETED>    (II) any other issue that 
                                would impact decisions to extend the 
                                lifespan of nuclear power 
                                plants.</DELETED>
                <DELETED>    (B) Technical support.--In carrying out 
                the program established under paragraph (1), the 
                Secretary shall provide to the Chairman of the Nuclear 
                Regulatory Commission information collected under the 
                program--</DELETED>
                        <DELETED>    (i) to help ensure informed 
                        decisions regarding the extension of the life 
                        of nuclear power plants beyond a 60-year 
                        lifespan; and</DELETED>
                        <DELETED>    (ii) for the licensing and long-
                        term management, and safe and economical 
                        operation, of nuclear power plants.</DELETED>
<DELETED>    (b) Spent Nuclear Waste Disposal Research and Development 
Program.--</DELETED>
        <DELETED>    (1) Establishment.--As soon as practicable after 
        the date of enactment of this Act, the Secretary shall 
        establish a research and development program to improve the 
        understanding of nuclear spent fuel management and the entire 
        nuclear fuel cycle life.</DELETED>
        <DELETED>    (2) Conduct of program.--In carrying out the 
        program established under paragraph (1), the Secretary shall 
        carry out science-based research and development activities to 
        pursue dramatic improvements in a range of nuclear spent fuel 
        management options, including short-term and long-term storage 
        and disposal, and proliferation-resistant nuclear spent fuel 
        recycling.</DELETED>
<DELETED>    (c) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.</DELETED>

            <DELETED>Subtitle D--Water Efficiency</DELETED>

<DELETED>SEC. 141. WATERSENSE.</DELETED>

<DELETED>    (a) In General.--There is established within the 
Environmental Protection Agency a WaterSense program to identify and 
promote water-efficient products, buildings, landscapes, facilities, 
processes, and services, so as--</DELETED>
        <DELETED>    (1) to reduce water use;</DELETED>
        <DELETED>    (2) to reduce the strain on water, wastewater, and 
        stormwater infrastructure;</DELETED>
        <DELETED>    (3) to conserve energy used to pump, heat, 
        transport, and treat water; and</DELETED>
        <DELETED>    (4) to preserve water resources for future 
        generations, through voluntary labeling of, or other forms of 
        communications about, products, buildings, landscapes, 
        facilities, processes, and services that meet the highest water 
        efficiency and performance criteria.</DELETED>
<DELETED>    (b) Duties.--The Administrator shall--</DELETED>
        <DELETED>    (1) establish--</DELETED>
                <DELETED>    (A) a WaterSense label to be used for 
                certain items; and</DELETED>
                <DELETED>    (B) the procedure by which an item may be 
                certified to display the WaterSense label;</DELETED>
        <DELETED>    (2) promote WaterSense-labeled products, 
        buildings, landscapes, facilities, processes, and services in 
        the market place as the preferred technologies and services 
        for--</DELETED>
                <DELETED>    (A) reducing water use; and</DELETED>
                <DELETED>    (B) ensuring product and service 
                performance;</DELETED>
        <DELETED>    (3) work to enhance public awareness of the 
        WaterSense label through public outreach, education, and other 
        means;</DELETED>
        <DELETED>    (4) preserve the integrity of the WaterSense label 
        by--</DELETED>
                <DELETED>    (A) establishing and maintaining 
                performance criteria so that products, buildings, 
                landscapes, facilities, processes, and services labeled 
                with the WaterSense label perform as well or better 
                than less water-efficient counterparts;</DELETED>
                <DELETED>    (B) overseeing WaterSense certifications 
                made by third parties;</DELETED>
                <DELETED>    (C) conducting reviews of the use of the 
                WaterSense label in the marketplace and taking 
                corrective action in any case in which misuse of the 
                label is identified; and</DELETED>
                <DELETED>    (D) carrying out such other measures as 
                the Administrator determines to be 
                appropriate;</DELETED>
        <DELETED>    (5) regularly review and, if appropriate, update 
        WaterSense criteria for categories of products, buildings, 
        landscapes, facilities, processes, and services, at least once 
        every 4 years;</DELETED>
        <DELETED>    (6) to the maximum extent practicable, regularly 
        estimate and make available to the public the production and 
        relative market shares of, and the savings of water, energy, 
        and capital costs of water, wastewater, and stormwater 
        infrastructure attributable to the use of WaterSense-labeled 
        products, buildings, landscapes, facilities, processes, and 
        services, at least annually;</DELETED>
        <DELETED>    (7) 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);</DELETED>
        <DELETED>    (8) 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--</DELETED>
                <DELETED>    (A) an explanation of the changes; 
                and</DELETED>
                <DELETED>    (B) as appropriate, responses to comments 
                submitted by interested parties and the 
                public;</DELETED>
        <DELETED>    (9) 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;</DELETED>
        <DELETED>    (10) identify and, if appropriate, implement other 
        voluntary approaches in commercial, institutional, residential, 
        industrial, and municipal sectors to encourage recycling and 
        reuse technologies to improve water efficiency or lower water 
        use; and</DELETED>
        <DELETED>    (11) where appropriate, apply the WaterSense label 
        to water-using products that are labeled by the Energy Star 
        program implemented by the Administrator and the Secretary of 
        Energy.</DELETED>
<DELETED>    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--</DELETED>
        <DELETED>    (1) $7,500,000 for fiscal year 2010;</DELETED>
        <DELETED>    (2) $10,000,000 for fiscal year 2011;</DELETED>
        <DELETED>    (3) $20,000,000 for fiscal year 2012;</DELETED>
        <DELETED>    (4) $50,000,000 for fiscal year 2013; 
        and</DELETED>
        <DELETED>    (5) for each subsequent fiscal year, the 
        applicable amount during the preceding fiscal year, as adjusted 
        to reflect changes for the 12-month period ending the preceding 
        November 30 in the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics of the Department 
        of Labor.</DELETED>

SEC. 142. FEDERAL PROCUREMENT OF WATER-EFFICIENT PRODUCTS.

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Agency.--The term ``Agency'' has the meaning 
        given the term in section 7902(a) of title 5, United States 
        Code.</DELETED>
        <DELETED>    (2) 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.</DELETED>
        <DELETED>    (3) Product, building, landscape, facility, 
        process, and service.--The terms ``product'', ``building'', 
        ``landscape'', ``facility'', ``process'', and ``service'' do 
        not include--</DELETED>
                <DELETED>    (A) any water-using product, building, 
                landscape, facility, process, or service designed or 
                procured for combat or combat-related missions; 
                or</DELETED>
                <DELETED>    (B) any product, building, landscape, 
                facility, process, or service already covered by the 
                Federal procurement regulations established under 
                section 553 of the National Energy Conservation Policy 
                Act (42 U.S.C. 8259b).</DELETED>
        <DELETED>    (4) WaterSense product, building, landscape, 
        facility, process, or service.--The term ``WaterSense product, 
        building, landscape, facility, process, or service'' means a 
        product, building, landscape, facility, process, or service 
        that is labeled for water efficiency under the WaterSense 
        program.</DELETED>
        <DELETED>    (5) WaterSense program.--The term ``WaterSense 
        program'' means the program established by section 
        141.</DELETED>
<DELETED>    (b) Procurement of Water-Efficient Products.--</DELETED>
        <DELETED>    (1) Requirement.--</DELETED>
                <DELETED>    (A) In general.--To meet the requirements 
                of an agency for a water-using product, building, 
                landscape, facility, process, or service, the head of 
                an Agency shall, except as provided in paragraph (2), 
                procure--</DELETED>
                        <DELETED>    (i) a WaterSense product, 
                        building, landscape, facility, process, or 
                        service; or</DELETED>
                        <DELETED>    (ii) a FEMP-designated 
                        product.</DELETED>
                <DELETED>    (B) Sense of congress regarding 
                installation preferences.--It is the sense of Congress 
                that a WaterSense irrigation system should, to the 
                maximum extent practicable, be installed and audited by 
                a WaterSense-certified irrigation professional to 
                ensure optimal performance.</DELETED>
        <DELETED>    (2) Exceptions.--The head of an Agency shall not 
        be required to procure a WaterSense product, building, 
        landscape, facility, process, or service or FEMP-designated 
        product under paragraph (1) if the head of the Agency finds in 
        writing that--</DELETED>
                <DELETED>    (A) a WaterSense product, building, 
                landscape, facility, process, or service or FEMP-
                designated product is not cost-effective over the life 
                of the product, building, landscape, facility, process, 
                or service, taking energy, water, and wastewater 
                service cost savings into account; or</DELETED>
                <DELETED>    (B) no WaterSense product, building, 
                landscape, facility, process, or service or FEMP-
                designated product is reasonably available that meets 
                the functional requirements of the Agency.</DELETED>
        <DELETED>    (3) Procurement planning.--</DELETED>
                <DELETED>    (A) In general.--The head of an Agency 
                shall incorporate criteria used for evaluating 
                WaterSense products, buildings, landscapes, facilities, 
                processes, and services and FEMP-designated products 
                into--</DELETED>
                        <DELETED>    (i) the specifications for all 
                        procurements involving water-using products, 
                        buildings, landscapes, facilities, processes, 
                        and systems, including guide specifications, 
                        project specifications, and construction, 
                        renovation, and services contracts that include 
                        provision of water-using products, buildings, 
                        landscapes, facilities, processes, and systems; 
                        and</DELETED>
                        <DELETED>    (ii) the factors for the 
                        evaluation of offers received for the 
                        procurement.</DELETED>
                <DELETED>    (B) Listing of water-efficient products in 
                federal catalogs.--WaterSense products, buildings, 
                landscapes, facilities, processes, and systems and 
                FEMP-designated products shall be clearly identified 
                and prominently displayed in any inventory or listing 
                of products by the General Services Administration or 
                the Defense Logistics Agency.</DELETED>
                <DELETED>    (C) Additional measures.--The head of an 
                Agency shall consider, to the maximum extent 
                practicable, additional measures for reducing Agency 
                water use, including water reuse technologies, leak 
                detection and repair, and use of waterless products 
                that perform similar functions to existing water-using 
                products.</DELETED>
<DELETED>    (c) Retrofit Programs.--The head of each Agency, working 
in coordination with the Administrator and the heads of such other 
Agencies as the President may designate, shall develop standards and 
implementation procedures for a building water efficiency retrofit 
program, which shall include the following elements:</DELETED>
        <DELETED>    (1) Evaluation of products and systems.--Not later 
        than 270 days after the date of enactment of this Act, each 
        Agency shall evaluate water-consuming products and systems in 
        buildings operated by such Agency and identify opportunities 
        for retrofit and replacement of such products and systems with 
        high-efficiency equipment, such as zero-water-consumption 
        equipment, high-efficiency toilets, high-efficiency shower 
        heads, and high-efficiency faucets, and other products that are 
        certified as Watersense products or FEMP-designated 
        products.</DELETED>
        <DELETED>    (2) Retrofit plan.--Not later than 360 days after 
        the date of enactment of this Act, each Agency shall, in 
        coordination with other appropriate Agencies and officials, 
        prepare a water efficiency retrofit plan that shall, to the 
        maximum extent practicable, maximize retrofitting of water-
        consuming products and systems and replacement with high-
        efficiency equipment described in paragraph (1).</DELETED>
<DELETED>    (d) Guidelines.--Not later than 180 days after the date of 
enactment of this Act, the Administrator, working in coordination with 
the Secretary of Energy and the heads of such other Agencies as the 
President may designate, shall issue guidelines to carry out this 
section.</DELETED>

SEC. 143. STATE RESIDENTIAL WATER EFFICIENCY AND CONSERVATION 
              INCENTIVES PROGRAM.

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Eligible entity.--The term ``eligible entity'' 
        means a State government, local or county government, tribal 
        government, wastewater or sewerage utility, municipal water 
        authority, energy utility, water utility, or nonprofit 
        organization that meets the requirements of subsection 
        (b).</DELETED>
        <DELETED>    (2) Incentive program.--The term ``incentive 
        program'' means a program for administering financial 
        incentives for consumer purchase and installation of water-
        efficient products, buildings (including New Water-Efficient 
        Homes), landscapes, processes, or services described in 
        subsection (b)(1).</DELETED>
        <DELETED>    (3) Residential water-efficient product, building, 
        landscape, process, or service.--</DELETED>
                <DELETED>    (A) In general.--The term ``residential 
                water-efficient product, building, landscape, process, 
                or service'' means a product, building, landscape, 
                process, or service for a residence or its landscape 
                that is rated for water efficiency and performance--
                </DELETED>
                        <DELETED>    (i) by the WaterSense program; 
                        or</DELETED>
                        <DELETED>    (ii) if a WaterSense specification 
                        does not exist, by the Energy Star program or 
                        an incentive program approved by the 
                        Administrator.</DELETED>
                <DELETED>    (B) Inclusions.--The term ``residential 
                water-efficient product, building, landscape, process, 
                or service'' includes--</DELETED>
                        <DELETED>    (i) faucets;</DELETED>
                        <DELETED>    (ii) irrigation technologies and 
                        services;</DELETED>
                        <DELETED>    (iii) point-of-use water treatment 
                        devices;</DELETED>
                        <DELETED>    (iv) reuse and recycling 
                        technologies;</DELETED>
                        <DELETED>    (v) toilets;</DELETED>
                        <DELETED>    (vi) clothes washers;</DELETED>
                        <DELETED>    (vii) dishwashers;</DELETED>
                        <DELETED>    (viii) showerheads;</DELETED>
                        <DELETED>    (ix) xeriscaping and other 
                        landscape conversions that replace irrigated 
                        turf; and</DELETED>
                        <DELETED>    (x) New Water Efficient Homes 
                        certified by the WaterSense program.</DELETED>
        <DELETED>    (4) WaterSense program.--The term ``WaterSense 
        program'' means the program established by section 
        141.</DELETED>
<DELETED>    (b) Eligible Entities.--An entity shall be eligible to 
receive an allocation under subsection (c) if the entity--</DELETED>
        <DELETED>    (1) establishes (or has established) an incentive 
        program to provide financial incentives to residential 
        consumers for the purchase of residential water-efficient 
        products, buildings, landscapes, processes, or 
        services;</DELETED>
        <DELETED>    (2) submits an application for the allocation at 
        such time, in such form, and containing such information as the 
        Administrator may require; and</DELETED>
        <DELETED>    (3) provides assurances satisfactory to the 
        Administrator that the entity will use the allocation to 
        supplement, but not supplant, funds made available to carry out 
        the incentive program.</DELETED>
<DELETED>    (c) Amount of Allocations.--For each fiscal year, the 
Administrator shall determine the amount to allocate to each eligible 
entity to carry out subsection (d), taking into consideration--
</DELETED>
        <DELETED>    (1) the population served by the eligible entity 
        during the most recent calendar year for which data are 
        available;</DELETED>
        <DELETED>    (2) the targeted population of the incentive 
        program of the eligible entity, such as general households, 
        low-income households, or first-time homeowners, and the 
        probable effectiveness of the incentive program for that 
        population;</DELETED>
        <DELETED>    (3) for existing programs, the effectiveness of 
        the program in encouraging the adoption of water-efficient 
        products, buildings, landscapes, facilities, processes, and 
        services;</DELETED>
        <DELETED>    (4) any allocation to the eligible entity for a 
        preceding fiscal year that remains unused; and</DELETED>
        <DELETED>    (5) the per capita water demand of the population 
        served by the eligible entity during the most recent calendar 
        year for which data are available and the accessibility of 
        water supplies to such entity.</DELETED>
<DELETED>    (d) Use of Allocated Funds.--Funds allocated to an 
eligible entity under subsection (c) may be used to pay up to 50 
percent of the cost of establishing and carrying out an incentive 
program.</DELETED>
<DELETED>    (e) Fixture Recycling.--Eligible entities are encouraged 
to promote or implement fixture recycling programs to manage the 
disposal of older fixtures replaced due to the incentive program under 
this section.</DELETED>
<DELETED>    (f) Issuance of Incentives.--</DELETED>
        <DELETED>    (1) In general.--Financial incentives may be 
        provided to residential consumers that meet the requirements of 
        the applicable incentive program.</DELETED>
        <DELETED>    (2) Manner of issuance.--An eligible entity may--
        </DELETED>
                <DELETED>    (A) issue all financial incentives 
                directly to residential consumers; or</DELETED>
                <DELETED>    (B) with approval of the Administrator, 
                delegate all or part of financial incentive 
                administration to other organizations, including local 
                governments, municipal water authorities, water 
                utilities, and non-profit organizations.</DELETED>
        <DELETED>    (3) Amount.--The amount of a financial incentive 
        shall be determined by the eligible entity, taking into 
        consideration--</DELETED>
                <DELETED>    (A) the amount of any Federal or State 
                incentive available for the purchase of the residential 
                water-efficient product or service;</DELETED>
                <DELETED>    (B) the amount necessary to change 
                consumer behavior to purchase water-efficient products 
                and services; and</DELETED>
                <DELETED>    (C) the consumer expenditures for onsite 
                preparation, assembly, and original installation of the 
                product.</DELETED>
<DELETED>    (g) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this section--
</DELETED>
        <DELETED>    (1) $100,000,000 for fiscal year 2010;</DELETED>
        <DELETED>    (2) $150,000,000 for fiscal year 2011;</DELETED>
        <DELETED>    (3) $200,000,000 for fiscal year 2012;</DELETED>
        <DELETED>    (4) $150,000,000 for fiscal year 2013;</DELETED>
        <DELETED>    (5) $100,000,000 for fiscal year 2014; 
        and</DELETED>
        <DELETED>    (6) for each subsequent fiscal year, the 
        applicable amount during the preceding fiscal year, as adjusted 
        to reflect changes for the 12-month period ending the preceding 
        November 30 in the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics of the Department 
        of Labor.</DELETED>

              <DELETED>Subtitle E--Miscellaneous</DELETED>

<DELETED>SEC. 151. OFFICE OF CONSUMER ADVOCACY.</DELETED>

<DELETED>    (a) Office.--</DELETED>
        <DELETED>    (1) Establishment.--There is established an Office 
        of Consumer Advocacy to serve as an advocate for the public 
        interest.</DELETED>
        <DELETED>    (2) Director.--The Office shall be headed by a 
        Director to be appointed by the President, who is admitted to 
        the Federal Bar, with experience in public utility proceedings, 
        and by and with the advice and consent of the Senate.</DELETED>
        <DELETED>    (3) Duties.--The Office may--</DELETED>
                <DELETED>    (A) represent, and appeal on behalf of, 
                energy customers on matters concerning rates or service 
                of public utilities and natural gas companies under the 
                jurisdiction of the Commission--</DELETED>
                        <DELETED>    (i) at hearings of the 
                        Commission;</DELETED>
                        <DELETED>    (ii) in judicial proceedings in 
                        the courts of the United States; and</DELETED>
                        <DELETED>    (iii) at hearings or proceedings 
                        of other Federal regulatory agencies and 
                        commissions;</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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);</DELETED>
                <DELETED>    (E) collect data concerning rates or 
                service of public utilities and natural gas companies 
                under the jurisdiction of the Commission; and</DELETED>
                <DELETED>    (F) prepare and issue reports and 
                recommendations.</DELETED>
        <DELETED>    (4) Compensation and powers.--The Director may--
        </DELETED>
                <DELETED>    (A) employ and fix the compensation of 
                such staff personnel as is deemed necessary; 
                and</DELETED>
                <DELETED>    (B) procure temporary and intermittent 
                services as needed.</DELETED>
        <DELETED>    (5) Access to information.--Each department, 
        agency, and instrumentality of the Federal Government is 
        authorized and directed to furnish to the Director such reports 
        and other information as he deems necessary to carry out his 
        functions under this section.</DELETED>
<DELETED>    (b) Consumer Advocacy Advisory Committee.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Composition.--The Director shall appoint 5 
        members to the Advisory Committee including--</DELETED>
                <DELETED>    (A) 2 individuals representing State 
                Utility Consumer Advocates; and</DELETED>
                <DELETED>    (B) 1 individual, from a nongovernmental 
                organization, representing consumers.</DELETED>
        <DELETED>    (3) Meetings.--The Advisory Committee shall meet 
        at such frequency as may be required to carry out its 
        duties.</DELETED>
        <DELETED>    (4) Reports.--The Director shall provide for 
        publication of recommendations of the Advisory Committee on the 
        public website established for the Office.</DELETED>
        <DELETED>    (5) Duration.--Notwithstanding any other provision 
        of law, the Advisory Committee shall continue in operation 
        during the period in which the Office exists.</DELETED>
        <DELETED>    (6) Application of faca.--Except as otherwise 
        specifically provided, the Advisory Committee shall be subject 
        to the Federal Advisory Committee Act.</DELETED>
<DELETED>    (c) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Commission.--The term ``Commission'' means the 
        Federal Energy Regulatory Commission.</DELETED>
        <DELETED>    (2) Energy customer.--The term ``energy customer'' 
        means a residential customer or a small commercial customer 
        that receives products or services from a public utility or 
        natural gas company under the jurisdiction of the 
        Commission.</DELETED>
        <DELETED>    (3) 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).</DELETED>
        <DELETED>    (4) Office.--The term ``Office'' means the Office 
        of Consumer Advocacy established by subsection 
        (a)(1).</DELETED>
        <DELETED>    (5) Public utility.--The term ``public utility'' 
        has the meaning given the term in section 201(e) of the Federal 
        Power Act (16 U.S.C. 824(e)).</DELETED>
        <DELETED>    (6) 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.</DELETED>
<DELETED>    (d) Authorization of Appropriations.--There are authorized 
such sums as necessary to carry out this section.</DELETED>
<DELETED>    (e) Savings Clause.--Nothing in this section affects the 
rights or obligations of State Utility Consumer Advocates.</DELETED>

<DELETED>SEC. 152. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT 
              PROGRAM.</DELETED>

<DELETED>    (a) In General.--The Administrator may 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 goals in areas including air quality, energy 
efficiency and renewable energy, transportation, water quality and 
conservation, green buildings, and waste management.</DELETED>
<DELETED>    (b) Purposes.--</DELETED>
        <DELETED>    (1) In general.--The competitions described in 
        subsection (a) shall have the purposes of--</DELETED>
                <DELETED>    (A) accelerating the development and 
                deployment of clean technology businesses and green 
                jobs;</DELETED>
                <DELETED>    (B) stimulating green economic 
                development;</DELETED>
                <DELETED>    (C) providing business training and 
                mentoring to early stage clean technology companies; 
                and</DELETED>
                <DELETED>    (D) strengthening the competitiveness of 
                United States clean technology industry in world trade 
                markets.</DELETED>
        <DELETED>    (2) Priority.--Priority shall be given to business 
        competitions that--</DELETED>
                <DELETED>    (A) are led by the private 
                sector;</DELETED>
                <DELETED>    (B) encourage regional and interregional 
                cooperation; and</DELETED>
                <DELETED>    (C) can demonstrate market-driven 
                practices and the creation of cost-effective green jobs 
                through an annual publication of competition activities 
                and directory of companies.</DELETED>
<DELETED>    (c) Eligibility.--</DELETED>
        <DELETED>    (1) In general.--To be eligible for a grant under 
        this section, an organization shall be any sponsored entity of 
        an organization described in subparagraph (A) that is operated 
        as a nonprofit entity.</DELETED>
        <DELETED>    (2) Priority.--In making grants under this 
        section, the Administrator shall give priority to organizations 
        that can demonstrate broad funding support from private and 
        other non-Federal funding sources to leverage Federal 
        investment.</DELETED>
<DELETED>    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $20,000,000.</DELETED>

<DELETED>SEC. 153. PRODUCT CARBON DISCLOSURE PROGRAM.</DELETED>

<DELETED>    (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:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Criteria for identifying and prioritizing 
        sectors and products and processes that should be covered in 
        such program or programs.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) A survey of secondary databases including the 
        Manufacturing Energy Consumption Survey, an evaluation of the 
        quality of data for use in a product carbon disclosure program 
        and product carbon labeling program, 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.</DELETED>
        <DELETED>    (7) An assessment of the utility of comparing 
        products and the appropriateness of product carbon 
        standards.</DELETED>
        <DELETED>    (8) An evaluation of the information needed on a 
        label for clear and accurate communication, including what 
        pieces of quantitative and qualitative information need to be 
        disclosed.</DELETED>
        <DELETED>    (9) An evaluation of the appropriate boundaries of 
        the carbon lifecycle analysis for different sectors and 
        products.</DELETED>
        <DELETED>    (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 a determination of the best ways to develop such 
        default values.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (12) An assessment of options for educating 
        consumers about product carbon content and the product carbon 
        disclosure program and product carbon labeling 
        program.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Development of National Carbon Disclosure Program.--
Upon conclusion of the study, and not later than 3 years 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--</DELETED>
        <DELETED>    (1) consider the results of the study conducted 
        under subsection (a);</DELETED>
        <DELETED>    (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 as of the date 
        of enactment of this Act);</DELETED>
        <DELETED>    (3) consider the compatibility of a national 
        product carbon disclosure program with existing 
        programs;</DELETED>
        <DELETED>    (4) utilize incentives and other means to spur the 
        adoption of product carbon disclosure and product carbon 
        labeling;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (6) create a means to--</DELETED>
                <DELETED>    (A) document best practices;</DELETED>
                <DELETED>    (B) ensure clarity and 
                consistency;</DELETED>
                <DELETED>    (C) work with suppliers, manufacturers, 
                and retailers to encourage participation;</DELETED>
                <DELETED>    (D) ensure that protocols are consistent 
                and comparable across like products; and</DELETED>
                <DELETED>    (E) evaluate the effectiveness of the 
                program;</DELETED>
        <DELETED>    (7) make publicly available information on product 
        carbon content to ensure transparency;</DELETED>
        <DELETED>    (8) provide for public outreach, including a 
        consumer education program to increase awareness;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (10) consult with the Secretary of Energy, the 
        Secretary of Commerce, the Federal Trade Commission, and other 
        Federal agencies, as necessary;</DELETED>
        <DELETED>    (11) gather input from stakeholders through 
        consultations, public workshops, or hearings with 
        representatives of consumer product manufacturers, consumer 
        groups, and environmental groups;</DELETED>
        <DELETED>    (12) utilize systems for verification and product 
        certification that will ensure that claims manufacturers make 
        about their products are valid;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (14) develop a standardized, easily understandable 
        carbon label, if appropriate, and create a process for 
        responding to inaccuracies and misuses of such a 
        label.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Definitions.--In this section:</DELETED>
        <DELETED>    (1) The term ``carbon content'' means the quantity 
        of greenhouse gas emissions and the warming impact of those 
        emissions on the atmosphere expressed in carbon dioxide 
        equivalent associated with a product's value chain.</DELETED>
        <DELETED>    (2) The term ``carbon footprint'' means the level 
        of greenhouse gas emissions produced by a particular activity, 
        service, or entity.</DELETED>
        <DELETED>    (3) The term ``carbon lifecycle'' means the 
        greenhouse gas emissions that are released as part of the 
        processes of creating, producing, processing, manufacturing, 
        modifying, transporting, distributing, storing, using, 
        recycling, or disposing of goods and services.</DELETED>
<DELETED>    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to the Administrator--</DELETED>
        <DELETED>    (1) to carry out the study required by subsection 
        (a), $5,000,000; and</DELETED>
        <DELETED>    (2) to carry out the program required under 
        subsection (b), $25,000,000 for each of fiscal years 2010 
        through 2025.</DELETED>

<DELETED>SEC. 154. STATE RECYCLING PROGRAMS.</DELETED>

<DELETED>    (a) Establishment.--The Administrator shall establish a 
State Recycling Program governing the use of funds by States in 
accordance with this Act.</DELETED>
<DELETED>    (b) Use of Funding.--</DELETED>
        <DELETED>    (1) In general.--States receiving funding to carry 
        out this section shall use the proceeds to carry out recycling 
        programs in accordance with this section.</DELETED>
        <DELETED>    (2) County and municipal programs.--Not less than 
        \1/4\ of the funding made available to a State to carry out 
        this section shall be distributed by the State to county and 
        municipal recycling programs as described in subsection (c)(1), 
        to be used exclusively to support recycling purposes and 
        associated source reduction purposes, including to provide 
        incentives--</DELETED>
                <DELETED>    (A) for recycling-related technology 
                that--</DELETED>
                        <DELETED>    (i) reduces or avoids greenhouse 
                        gas emissions;</DELETED>
                        <DELETED>    (ii) increases collection rates; 
                        and</DELETED>
                        <DELETED>    (iii) improves the quality of 
                        recyclable material that is separated from 
                        solid waste;</DELETED>
                <DELETED>    (B) for energy-efficiency projects for 
                transportation fleets and recycling equipment used to 
                collect and sort recyclable material separated from 
                solid waste;</DELETED>
                <DELETED>    (C) for recycling program-related 
                expenses, including--</DELETED>
                        <DELETED>    (i) education and job 
                        training;</DELETED>
                        <DELETED>    (ii) development and 
                        implementation of variable rate (commonly 
                        referred to as ``pay-as-you-throw'') recycling 
                        programs and anaerobic digestion 
                        programs;</DELETED>
                        <DELETED>    (iii) promotion of public space 
                        recycling programs;</DELETED>
                        <DELETED>    (iv) approaches for assuring 
                        compliance with recycling requirements; 
                        and</DELETED>
                        <DELETED>    (v) development or implementation 
                        of best practices for municipal solid waste 
                        reduction programs; and</DELETED>
                <DELETED>    (D) to ensure that recyclable material is 
                not sent for disposal or incineration during 
                fluctuating markets.</DELETED>
        <DELETED>    (3) Recycling facilities.--Not less than \1/4\ of 
        the funding made available to a State to carry out this section 
        shall be distributed by the State to eligible recycling 
        facilities as described in subsection (c)(2) to be used 
        exclusively to support the recycling purposes and associated 
        source reduction purposes of the facilities, including to 
        provide--</DELETED>
                <DELETED>    (A) incentives for the demonstration or 
                deployment of recycling-related technology and 
                equipment that reduce or avoid greenhouse gas 
                emissions;</DELETED>
                <DELETED>    (B) incentives to facilities that increase 
                the quantity and quality of recyclable material that is 
                recycled versus sent for disposal or 
                incineration;</DELETED>
                <DELETED>    (C) funding for research, management, and 
                removal of impediments to recycling, including--
                </DELETED>
                        <DELETED>    (i) radioactive material; 
                        and</DELETED>
                        <DELETED>    (ii) devices or materials that 
                        contain polychlorinated biphenyls, mercury, or 
                        chlorofluorocarbons;</DELETED>
                <DELETED>    (D) funding for research on, and 
                development and deployment of, new technologies to more 
                efficiently and effectively recycle items such as 
                automobile shredder residue, cathode ray tubes, 
                plastics, and tires; and</DELETED>
                <DELETED>    (E) incentives to recycle materials 
                identified by the Administrator that are not being 
                recycled at a recycling facility.</DELETED>
        <DELETED>    (4) Manufacturing facilities.--Not less than \1/4\ 
        of the funding made available to a State to carry out this 
        section shall be distributed by the State to eligible 
        manufacturing facilities as described in subsection (c)(3) to 
        be used exclusively to support recycling purposes, including to 
        provide incentives for the demonstration or deployment of--
        </DELETED>
                <DELETED>    (A) manufacturing-related technology and 
                equipment that would increase the use of recyclable 
                material and avoid or reduce greenhouse gas 
                emissions;</DELETED>
                <DELETED>    (B) radiation detection equipment and the 
                costs associated with recovery of detected radiated 
                recyclable material;</DELETED>
                <DELETED>    (C) technologies that will detect and 
                separate contaminants, including mercury-, lead-, and 
                cadmium-containing devices;</DELETED>
                <DELETED>    (D) strategies and technologies to remove 
                impediments to recovering recyclable material; 
                and</DELETED>
                <DELETED>    (E) strategies and technologies to improve 
                the energy efficiency of technology and equipment used 
                to manufacture recyclable material.</DELETED>
<DELETED>    (c) Eligibility Requirements.--</DELETED>
        <DELETED>    (1) County and municipality programs.--Funds 
        provided under subsection (b)(2) shall be provided on a 
        competitive basis to county and municipal recycling programs 
        that--</DELETED>
                <DELETED>    (A) have within the solid waste management 
                plans of the programs a recycling management plan that 
                includes an education outreach program for the 
                individuals and entities served by the program 
                constituency that highlights the lifecycle benefits of 
                recycling; and</DELETED>
                <DELETED>    (B) collect at least 5 recyclable 
                materials, such as--</DELETED>
                        <DELETED>    (i) ferrous and nonferrous 
                        metal;</DELETED>
                        <DELETED>    (ii) aluminum;</DELETED>
                        <DELETED>    (iii) plastic;</DELETED>
                        <DELETED>    (iv) tires and rubber;</DELETED>
                        <DELETED>    (v) household electronic 
                        equipment;</DELETED>
                        <DELETED>    (vi) glass;</DELETED>
                        <DELETED>    (vii) scrap food;</DELETED>
                        <DELETED>    (viii) recoverable fiber or paper; 
                        and</DELETED>
                        <DELETED>    (ix) textiles;</DELETED>
                <DELETED>    (C) demonstrate, not later than 3 years 
                after the date of receipt of funds under this subtitle, 
                reasonable progress toward achieving--</DELETED>
                        <DELETED>    (i) a collection rate goal of at 
                        least 30 percent of the total recyclable 
                        materials available from the solid waste stream 
                        in the requesting State, county, or municipal 
                        program; or</DELETED>
                        <DELETED>    (ii) a 10-percent increase of 
                        collected recyclable materials compared to the 
                        total solid waste stream in the requesting 
                        State, county, or municipal program; 
                        and</DELETED>
                <DELETED>    (D)(i) own, operate, or contract to 
                operate--</DELETED>
                        <DELETED>    (I) a curbside recyclables 
                        collection program;</DELETED>
                        <DELETED>    (II) a redemption center or drop-
                        off facility for recyclables; and</DELETED>
                        <DELETED>    (III) a materials recovery 
                        facility; and</DELETED>
                <DELETED>    (ii) have in place a quality, 
                environmental, health, and safety management system 
                (such as that of the International Standards 
                Organization or an equivalent) that includes goals to 
                reduce the operational carbon baselines of the 
                programs.</DELETED>
        <DELETED>    (2) Recycling facility.--Funds provided under 
        subsection (b)(3) shall be provided on a competitive basis to a 
        recycling facility that--</DELETED>
                <DELETED>    (A) processes recyclable material into 
                commercial specification-grade commodities for use as 
                raw material feed stock at recovery facilities, 
                including for use as--</DELETED>
                        <DELETED>    (i) a replacement or substitute 
                        for a virgin raw material; or</DELETED>
                        <DELETED>    (ii) a replacement or substitute 
                        for a product made, in whole or in part, from a 
                        virgin raw material;</DELETED>
                <DELETED>    (B) has a verifiable carbon baseline; 
                and</DELETED>
                <DELETED>    (C) has an environmental, health and 
                safety, and quality management system (such as that of 
                the International Standards Organization or an 
                equivalent) that includes goals to reduce the 
                operational carbon baseline of the recycling facility 
                per unit of material processed.</DELETED>
        <DELETED>    (3) Manufacturing facility.--Funds provided under 
        subsection (b)(4) shall be provided on a competitive basis to a 
        manufacturing facility that--</DELETED>
                <DELETED>    (A) can report on a verifiable carbon 
                baseline that is consistent with applicable reporting 
                requirements; and</DELETED>
                <DELETED>    (B) has an environmental, health and 
                safety, and quality management system (such as that of 
                the International Standards Organization or an 
                equivalent) that includes goals to reduce the 
                operational carbon baseline of the manufacturing 
                facility per unit of material processed.</DELETED>
<DELETED>    (d) Reporting.--Each State that distributes funds under 
this section shall submit to the Administrator, in accordance with such 
requirements as the Administrator may prescribe, a report that 
includes--</DELETED>
        <DELETED>    (1) a list of entities receiving funding under 
        this section, including entities receiving such funding from 
        units of local government pursuant to subsection 
        (b)(2);</DELETED>
        <DELETED>    (2) the amount of funding received by each such 
        recipient;</DELETED>
        <DELETED>    (3) the specific purposes for which the funding 
        was conveyed to each such recipient; and</DELETED>
        <DELETED>    (4) documentation of the quantity of net 
        recyclable material that was collected and processed and 
        greenhouse gas emissions that were reduced or avoided 
        accordingly, through use of the funding, based on a lifecycle 
        calculation developed by the Administrator.</DELETED>
<DELETED>    (e) Methodology and Decisionmaking.--The Administrator, as 
appropriate--</DELETED>
        <DELETED>    (1) shall develop and periodically update 
        lifecycle methods to quantify the relationship between waste 
        management decisions, including recycling and waste reduction, 
        greenhouse gas reductions, and energy use reductions, for 
        purposes that include--</DELETED>
                <DELETED>    (A) helping to support decisions under 
                Federal, State, and municipal recycling and waste 
                management programs, including--</DELETED>
                        <DELETED>    (i) estimating greenhouse gas and 
                        energy benefits of increasing collection or 
                        adding new materials to recycling 
                        programs;</DELETED>
                        <DELETED>    (ii) comparing the benefits of 
                        recycling and waste reduction to other 
                        greenhouse gas and energy use reduction 
                        strategies;</DELETED>
                        <DELETED>    (iii) optimizing waste management 
                        strategies to maximize greenhouse gas 
                        reductions and energy use reductions; 
                        and</DELETED>
                        <DELETED>    (iv) public education; 
                        and</DELETED>
                <DELETED>    (B) designing products to optimize waste 
                reduction and recycling opportunities and use of 
                recycled materials in the manufacturing 
                process;</DELETED>
        <DELETED>    (2) may collect data to support the development of 
        the methods described in paragraph (1); and</DELETED>
        <DELETED>    (3) to improve national consistency, shall, in 
        consultation with appropriate State and local representatives 
        and municipal recycling programs, identify best practices to 
        promote improvement in, and support State efforts in improving, 
        municipal recycling and resource recovery programs.</DELETED>

<DELETED>SEC. 155. SUPPLEMENTAL AGRICULTURE AND FORESTRY GREENHOUSE GAS 
              REDUCTION AND RENEWABLE ENERGY PROGRAM.</DELETED>

<DELETED>    (a) Agricultural Greenhouse Gas Reductions.--</DELETED>
        <DELETED>    (1) Establishment.--</DELETED>
                <DELETED>    (A) In general.--The Secretary of 
                Agriculture (referred to in this section as the 
                ``Secretary''), in coordination with the Secretary of 
                the Interior, shall establish a Greenhouse Gas 
                Reduction Incentives Program (referred to in this 
                section as the ``program'') to provide financial 
                assistance to owners and operators of agricultural land 
                (including land on which specialty crops are produced 
                and private or public land used for grazing) and forest 
                land for projects and activities that measurably 
                increase carbon sequestration or reduce greenhouse gas 
                emissions.</DELETED>
                <DELETED>    (B) Shared authority.--The Secretary shall 
                delegate to the Secretary of the Interior the authority 
                to carry out projects on land under the jurisdiction of 
                or operated by the Department of the 
                Interior.</DELETED>
        <DELETED>    (2) Priority.--In carrying out the program, the 
        Secretary shall give priority to projects or activities that--
        </DELETED>
                <DELETED>    (A) reduce greenhouse gas emissions or 
                increase sequestration of greenhouse gases, and achieve 
                significant other environmental benefits, such as the 
                improvements of water or air quality or natural 
                resources; and</DELETED>
                <DELETED>    (B) reduce greenhouse gas emissions or 
                sequester carbon in agricultural and forestry 
                operations where there are limited recognized 
                opportunities to achieve such emission reductions or 
                sequestration.</DELETED>
        <DELETED>    (3) Eligible projects and activities.--Eligible 
        projects and payments shall include those that--</DELETED>
                <DELETED>    (A) reflect the comparable amount that the 
                owners or operators would receive in the offset market 
                if not for compliance with environmental laws that 
                preclude the owners and operators from being eligible 
                for receiving an offset credit under a Federal law 
                enacted for the purpose of regulating greenhouse gas 
                emissions;</DELETED>
                <DELETED>    (B) provide greenhouse gas emission 
                benefits, but do not receive an offset credit or 
                qualify for an early action allowance under a Federal 
                law enacted for the purpose of regulating greenhouse 
                gas emissions, including projects and activities that 
                provide an opportunity to demonstrate and test new or 
                uncertain methods to reduce or sequester 
                emissions;</DELETED>
                <DELETED>    (C) reward early adopters, including 
                producers that practice no-till agriculture, and ensure 
                that individuals and entities that took action prior to 
                the implementation of a Federal law enacted for the 
                purpose of regulating greenhouse gas emissions are not 
                placed at a competitive disadvantage, including giving 
                special consideration to owners or operators located in 
                jurisdictions with more stringent environmental laws 
                (including regulations), compliance with which 
                precludes the owners or operators from participating 
                such an offset market;</DELETED>
                <DELETED>    (D) provide incentives for supplemental 
                greenhouse gas emission reductions on private forest 
                land of the United States;</DELETED>
                <DELETED>    (E) prevent any conversion of land, 
                including native grassland, native prairie, rangeland, 
                cropland, or forested land, that would increase 
                greenhouse gas emissions or a loss of carbon 
                sequestration; or</DELETED>
                <DELETED>    (F) support action on Federal, State, or 
                tribal land.</DELETED>
        <DELETED>    (4) Requirements.--Financial incentives and 
        support provided by the Secretary for a project or activity 
        under this section shall, to the maximum extent practicable--
        </DELETED>
                <DELETED>    (A) be directly proportional to the 
                quantity and duration of greenhouse gas emissions 
                reduced or carbon sequestered (except with respect to 
                projects and activities that provide adaptation 
                benefits); and</DELETED>
                <DELETED>    (B) complement and leverage existing 
                conservation, forestry, and energy program expenditures 
                to provide measurable emission reduction and 
                sequestration benefits that otherwise may not take 
                place or continue to exist.</DELETED>
        <DELETED>    (5) Eligibility.--An owner or operator shall not 
        be prohibited from participating in the program established 
        under this section due to participation of the owner or 
        operator in other Federal or State conservation or agricultural 
        assistance programs.</DELETED>
        <DELETED>    (6) Forms of assistance.--The Secretary may use 
        any of the following to provide assistance under this 
        section:</DELETED>
                <DELETED>    (A) Conservation easements.</DELETED>
                <DELETED>    (B) Carbon sequestration and mitigation 
                contracts between the owner or operator and the 
                Secretary for the performance of projects or activities 
                that reduce greenhouse gas emissions or sequester 
                carbon.</DELETED>
                <DELETED>    (C) Financial incentives through timber 
                harvest contracts.</DELETED>
                <DELETED>    (D) Financial incentives through grazing 
                contracts.</DELETED>
                <DELETED>    (E) Grants.</DELETED>
                <DELETED>    (F) Such other forms of assistance as the 
                Secretary determines to be appropriate.</DELETED>
        <DELETED>    (7) Reversals.--The Secretary shall specify 
        methods to address intentional or unintentional reversal of 
        carbon sequestration or greenhouse gas emission reductions that 
        occur during the term of a contract or easement under this 
        section.</DELETED>
        <DELETED>    (8) Accounting systems.--In carrying out this 
        section, the Secretary shall develop and implement--</DELETED>
                <DELETED>    (A) a national accounting system for 
                carbon stocks, sequestration, and greenhouse gas 
                emissions that may be used to assess progress in 
                implementing this section at a national level; 
                and</DELETED>
                <DELETED>    (B) credible reporting and accounting 
                systems to ensure that incentives provided under this 
                section are achieving stated objectives.</DELETED>
        <DELETED>    (9) Program measurement, monitoring, and 
        verification.--The Secretary, in consultation with the 
        Administrator--</DELETED>
                <DELETED>    (A) shall establish and implement 
                protocols that provide reasonable monitoring and 
                verification of compliance with terms associated with 
                assistance provided under this section, including field 
                sampling of actual performance, to develop annual 
                estimates of emission reductions achieved under the 
                program;</DELETED>
                <DELETED>    (B) shall report annually the total number 
                of tons of carbon dioxide sequestered or the total 
                number of tons of emissions avoided through incentives 
                provided under this section; and</DELETED>
                <DELETED>    (C) not later than 2 years after the date 
                of enactment of this Act, and at least every 18 months 
                thereafter, submit to Congress and make available to 
                the public on the website of the Department of 
                Agriculture a report that includes--</DELETED>
                        <DELETED>    (i) an estimate of annual and 
                        cumulative reductions generated through the 
                        program under this section, determined using 
                        standardized measures (including economic 
                        efficiency); and</DELETED>
                        <DELETED>    (ii) a summary of any changes to 
                        the program, in accordance with this section, 
                        that will be made as a result of program 
                        measurement, monitoring, and verification 
                        conducted under this section.</DELETED>
<DELETED>    (b) Research Program.--The Secretary shall establish by 
rule a program to conduct research to develop additional projects and 
activities for crops to find additional techniques and methods to 
reduce greenhouse gas emissions or sequester greenhouse gases that may 
or may not meet criteria for a Federal law enacted for the purpose of 
regulating greenhouse gas emissions.</DELETED>

<DELETED>SEC. 156. ECONOMIC DEVELOPMENT CLIMATE CHANGE FUND.</DELETED>

<DELETED>    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended by adding 
at the end the following:</DELETED>

<DELETED>``SEC. 219. ECONOMIC DEVELOPMENT CLIMATE CHANGE 
              FUND.</DELETED>

<DELETED>    ``(a) In General.--On the application of an eligible 
recipient, the Secretary may provide technical assistance, make grants, 
enter into contracts, or otherwise provide amounts for projects--
</DELETED>
        <DELETED>    ``(1) to promote energy efficiency to enhance 
        economic competitiveness;</DELETED>
        <DELETED>    ``(2) to increase the use of renewable energy 
        resources to support sustainable economic development and job 
        growth;</DELETED>
        <DELETED>    ``(3) to support the development of conventional 
        energy resources to produce alternative transportation fuels, 
        electricity and heat;</DELETED>
        <DELETED>    ``(4) to develop energy efficient or 
        environmentally sustainable infrastructure;</DELETED>
        <DELETED>    ``(5) to promote environmentally sustainable 
        economic development practices and models;</DELETED>
        <DELETED>    ``(6) to support development of energy efficiency 
        and alternative energy development plans, studies or analysis, 
        including enhancement of new and existing Comprehensive 
        Economic Development Strategies funded under this Act; 
        and</DELETED>
        <DELETED>    ``(7) to supplement other Federal grants, loans, 
        or loan guarantees for purposes described in paragraphs (1) 
        through (6).</DELETED>
<DELETED>    ``(b) Federal Share.--The Federal share of the cost of any 
project carried out under this section shall not exceed 80 percent, 
except that the Federal share of a Federal grant, loan, or loan 
guarantee provided under subsection (a)(7) may be 100 
percent.</DELETED>
<DELETED>    ``(c) Authorization of Appropriations.--There is 
authorized to be appropriated to carry out this section $50,000,000 for 
each of fiscal years 2009 through 2013, to remain available until 
expended.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents contained 
in section 1(b) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3141 et seq.) is amended by inserting after the item 
relating to section 218 the following:</DELETED>

<DELETED>``Sec. 219. Economic Development Climate Change Fund.''.

<DELETED>SEC. 157. STUDY OF RISK-BASED PROGRAMS ADDRESSING VULNERABLE 
              AREAS.</DELETED>

<DELETED>    (a) In General.--The Administrator, or the heads of such 
other Federal agencies as the President may designate, shall conduct a 
study and, not later than 2 years after the date of enactment of this 
Act, submit to Congress a report regarding risk-based policies and 
programs addressing vulnerable areas.</DELETED>
<DELETED>    (b) Requirements.--The report shall</DELETED>
        <DELETED>    (1) review and assess Federal predisaster 
        mitigation, emergency response, and flood insurance policies 
        and programs that affect areas vulnerable to the impacts of 
        climate change;</DELETED>
        <DELETED>    (2) describe strategies for better addressing such 
        vulnerabilities and provide implementation 
        recommendations;</DELETED>
        <DELETED>    (3) assess whether the policies and programs 
        described in paragraph (1) support the State response and 
        adaptation goals and objectives identified under this 
        Act;</DELETED>
        <DELETED>    (4) identify, and make recommendations to resolve, 
        inconsistencies in Federal policies and programs in effect as 
        of the date of enactment of this Act that address areas 
        vulnerable to climate change; and</DELETED>
        <DELETED>    (5) identify annual cost savings to the Federal 
        Government associated with the implementation of the strategies 
        and recommendations contained in the report.</DELETED>

 <DELETED>Subtitle F--Energy Efficiency and Renewable Energy</DELETED>

<DELETED>SEC. 161. RENEWABLE ENERGY.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Renewable energy.--The term ``renewable 
        energy'' means electric energy generated from solar, wind, 
        biomass, landfill gas, ocean (including tidal, wave, current, 
        and thermal), geothermal, municipal solid waste, or new 
        hydroelectric generation capacity achieved from increased 
        efficiency or additions of new capacity at an existing 
        hydroelectric project.</DELETED>
        <DELETED>    (2) Renewable portfolio standard.--The term 
        ```renewable portfolio standard''' means a State statute that 
        requires electricity providers to obtain a minimum percentage 
        of their power from renewable energy resources by a certain 
        date.</DELETED>
<DELETED>    (b) Grants.--The Administrator, in consultation with the 
Secretaries of Energy, Interior, and Agriculture, may provide grants 
for projects to increase the quantity of energy a State uses from 
renewable sources under State renewable portfolio standard 
laws.</DELETED>
<DELETED>    (c) Eligibility.--The Administrator shall review for 
approval projects applications that are--</DELETED>
        <DELETED>    (1) submitted by State and local governments, 
        Indian tribes, public utilities, regional energy cooperatives, 
        or individual energy producers from states with a binding 
        Renewable Portfolio Standard; or</DELETED>
        <DELETED>    (2) submitted by State and local governments, 
        Indian tribes, public utilities, or regional energy 
        cooperatives from States with nonbinding goals for adoption of 
        renewable energy requirements.</DELETED>
<DELETED>    (d) Priority.--The Administrator shall give priority to 
project applications that are--</DELETED>
        <DELETED>    (1) submitted by States with a binding renewable 
        portfolio standard;</DELETED>
        <DELETED>    (2) cost-effective in achieving greater renewable 
        energy production in each State.</DELETED>
<DELETED>    (e) Certification.--</DELETED>
        <DELETED>    (1) In general.--The Administrator shall notify in 
        writing the Governor of each eligible State as described in 
        section (c) at the time at which the Administrator begins 
        review of a project application received from an eligible 
        entity within the State.</DELETED>
        <DELETED>    (2) Certification.--The Governor shall certify in 
        writing within 30 days of receipt of the Administrator's 
        notification described in subsection (1) that the project 
        application--</DELETED>
                <DELETED>    (A) will assist the State in reaching 
                renewable portfolio standard targets under applicable 
                state laws; and</DELETED>
                <DELETED>    (B) has secured non-Federal funding 
                sources that, in conjunction with the requested grant 
                amount, will be sufficient to complete the renewable 
                energy project.</DELETED>
<DELETED>    (f) Rulemaking.--</DELETED>
        <DELETED>    (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator shall initiate 
        rulemaking procedures necessary to implement this 
        section.</DELETED>
        <DELETED>    (2) Final rules; acceptance of applications.--Not 
        later than 90 days after the close of the public comment period 
        relating to the rulemaking described in paragraph (1), the 
        Administrator shall--</DELETED>
                <DELETED>    (A) promulgate final regulations to carry 
                out this section; and</DELETED>
                <DELETED>    (B) begin accepting project applications 
                for review.</DELETED>
<DELETED>    (g) Reporting.--Not later than 180 days after the date of 
enactment of this Act, and every 180 days thereafter, the Administrator 
shall submit 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 specifying, with respect to the program under this 
section--</DELETED>
        <DELETED>    (1) the project applications received;</DELETED>
        <DELETED>    (2) the project applications approved;</DELETED>
        <DELETED>    (3) the amount of funding allocated per project; 
        and</DELETED>
        <DELETED>    (4) the cumulative benefits of the grant 
        program.</DELETED>
<DELETED>    (h) Grant Amount.--A grant provided under this section may 
be in an amount that does not exceed 50 percent of the total cost of 
the renewable energy project to be funded by the grant.</DELETED>
<DELETED>    (i) Authorization.--There are authorized to be 
appropriated such sums as are necessary to carry out this 
section.</DELETED>

<DELETED>SEC. 162. ADVANCED BIOFUELS.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Advanced biofuel.--The term ``advanced 
        biofuel'' shall have such meaning as is given the term by the 
        Administrator in regulations promulgated under subsection 
        (c).</DELETED>
        <DELETED>    (2) Eligible entity.--The term ``eligible entity'' 
        means an individual, corporate entity, unit of State or local 
        government, Indian tribe, farm cooperative, institution of 
        higher learning, rural electric cooperative, or public 
        utility.</DELETED>
<DELETED>    (b) Grants.--The Administrator, in consultation with the 
Secretary of Agriculture and the Secretary of Energy, may provide 
grants to support research and development of advanced 
biofuels.</DELETED>
<DELETED>    (c) Regulations.--</DELETED>
        <DELETED>    (1) In general.--Not later than 18 months after 
        the date of enactment of this Act, the Administrator shall 
        promulgate regulations to carry out this section (including a 
        definition of the term ``advanced biofuel'' for the purpose of 
        providing assistance under this section).</DELETED>
        <DELETED>    (2) Requirements.--The regulations promulgated 
        under paragraph (1) shall--</DELETED>
                <DELETED>    (A) provide that the Administrator shall 
                make grants available to eligible entities to support--
                </DELETED>
                        <DELETED>    (i) research regarding the 
                        production of advanced biofuels;</DELETED>
                        <DELETED>    (ii) the development of new 
                        advanced biofuel production and capacity-
                        building technologies;</DELETED>
                        <DELETED>    (iii) the development and 
                        construction of commercial-scale advanced 
                        biofuel production facilities; and</DELETED>
                        <DELETED>    (iv) the expanded production of 
                        advanced biofuels;</DELETED>
                <DELETED>    (B) provide that, to receive a grant under 
                this section, an eligible entity shall submit to the 
                Administrator--</DELETED>
                        <DELETED>    (i) a project proposal with 
                        detailed project information, as determined by 
                        the Administrator; and</DELETED>
                        <DELETED>    (ii) such records as the 
                        Administrator may require as evidence of the 
                        production of advanced biofuels or the 
                        importance and necessity of advanced biofuels 
                        research and new technologies; and</DELETED>
                <DELETED>    (C) include appropriate cost-sharing 
                requirements developed by the Administrator for grant 
                awards for authorized uses of funds under this 
                section.</DELETED>
        <DELETED>    (3) Priority.--The Administrator shall give 
        priority to eligible entities based on--</DELETED>
                <DELETED>    (A) technical and economic feasibility of 
                a project proposal;</DELETED>
                <DELETED>    (B) cost-effectiveness of a project 
                proposal;</DELETED>
                <DELETED>    (C) the use of innovative technologies in 
                a project proposal;</DELETED>
                <DELETED>    (D) the availability of non-Federal 
                resources, including private resources, to fund the 
                project proposal; and</DELETED>
                <DELETED>    (E) whether the project proposed can be 
                replicated.</DELETED>

<DELETED>SEC. 163. ENERGY EFFICIENCY IN BUILDING CODES.</DELETED>

<DELETED>    (a) Energy Efficiency Targets.--</DELETED>
        <DELETED>    (1) Rulemaking to establish targets.--The 
        Administrator, or such other agency head or heads as may be 
        designated by the President, in consultation with the Director 
        of the National Institute of Standards and Technology, shall 
        promulgate regulations establishing building code energy 
        efficiency targets for the national average percentage 
        improvement of buildings' energy performance. Such regulations 
        shall establish a national building code energy efficiency 
        target for residential buildings and commercial buildings when 
        built to a code meeting the target, beginning not later than 
        January 1, 2014 and applicable each calendar year through 
        December 31, 2030.</DELETED>
<DELETED>    (b) National Energy Efficiency Building Codes.--</DELETED>
        <DELETED>    (1) Rulemaking to establish national codes.--The 
        Administrator, or such other agency head or heads as may be 
        designated by the President, shall promulgate regulations 
        establishing national energy efficiency building codes for 
        residential and commercial buildings. Such regulations shall be 
        sufficient to meet the national building code energy efficiency 
        targets established under subsection (a) in the most cost-
        effective manner, and may include provisions for State adoption 
        of the national building code standards and certification of 
        State programs</DELETED>
<DELETED>    (c) Annual Reports.--The Administrator, or such other 
agency head or heads as may be designated by the President, shall 
annually submit to Congress, and publish in the Federal Register, a 
report on--</DELETED>
        <DELETED>    (1) the status of national energy efficiency 
        building codes;</DELETED>
        <DELETED>    (2) the status of energy efficiency building code 
        adoption and compliance in the States;</DELETED>
        <DELETED>    (3) the implementation of and compliance with 
        regulations promulgated under this section;</DELETED>
        <DELETED>    (4) the status of Federal and State enforcement of 
        building codes; and</DELETED>
        <DELETED>    (5) impacts of action under this section, and 
        potential impacts of further action, on lifetime energy use by 
        buildings, including resulting energy and cost 
        savings.</DELETED>

<DELETED>SEC. 164. RETROFIT FOR ENERGY AND ENVIRONMENTAL 
              PERFORMANCE.</DELETED>

<DELETED>    (a) Definitions.--For purposes of this section:</DELETED>
        <DELETED>    (1) Assisted housing.--The term ``assisted 
        housing'' means those properties receiving project-based 
        assistance pursuant to section 202 of the Housing Act of 1959 
        (12 U.S.C. 1701q), section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 8013), section 8 of 
        the United States Housing Act of 1937 (42 U.S.C. 1437f), or 
        similar programs.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (5) Public housing.--The term ``public housing'' 
        means properties receiving assistance under section 9 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437g).</DELETED>
        <DELETED>    (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 (42 U.S.C. 
        8253(f)(1)).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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 (42 U.S.C. 6321 et 
        seq.).</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Federal Administration.--</DELETED>
        <DELETED>    (1) Existing programs.--In creating and operating 
        the REEP program--</DELETED>
                <DELETED>    (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; 
                and</DELETED>
                <DELETED>    (B) the Administrator shall consult with 
                the Secretary of Energy regarding 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 (42 U.S.C. 
                17081).</DELETED>
        <DELETED>    (2) Consultation and coordination.--The 
        Administrator shall consult with and coordinate with the and 
        the Secretary of Energy and 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. Owners of 
        public housing or assisted housing receiving funding through 
        the REEP program shall agree to continue to provide affordable 
        housing consistent with the provisions of the authorizing 
        legislation governing each program for an additional period 
        commensurate with the funding received, as determined in 
        accordance with guidelines established by the Secretary of 
        Housing and Urban Development.</DELETED>
        <DELETED>    (3) Assistance.--The Administrator 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.</DELETED>
<DELETED>    (e) State and Local Administration.--</DELETED>
        <DELETED>    (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 
        assistance 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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (4) Provision of clear and effective materials to 
        describe the testing and retrofit processes for typical 
        buildings.</DELETED>
        <DELETED>    (5) Guidelines for offering and managing 
        prescriptive building retrofit programs and performance-based 
        building retrofit programs for residential and nonresidential 
        buildings.</DELETED>
        <DELETED>    (6) Guidelines for applying recommissioning and 
        retrocommissioning principles to improve a building's 
        operations and maintenance procedures.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (8) Determination of energy savings in a 
        performance-based building retrofit program through--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (B) for nonresidential buildings, 
                Environmental Protection Agency Portfolio Manager 
                benchmarks; or</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (10) Requirements and guidelines for post-retrofit 
        inspection and confirmation of work and energy 
        savings.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (12) Guidance on opportunities for--</DELETED>
                <DELETED>    (A) rating or certifying retrofitted 
                buildings as Energy Star buildings, or as green 
                buildings under a recognized green building rating 
                system;</DELETED>
                <DELETED>    (B) assigning Home Energy Rating System 
                (HERS) or similar ratings; and</DELETED>
                <DELETED>    (C) completing any applicable building 
                performance labels.</DELETED>
        <DELETED>    (13) Sample materials for publicizing the program 
        to building owners, including public service announcements and 
        advertisements.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (g) Requirements.--As a condition of receiving assistance 
for the REEP program pursuant to this Act, a State or qualifying local 
government shall--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (3) agree to make 10 percent of assistance 
        received to carry out this section available on a preferential 
        basis for retrofit projects proposed for public housing and 
        assisted housing, provided that--</DELETED>
                <DELETED>    (A) none of such funds shall be used for 
                demolition of such housing;</DELETED>
                <DELETED>    (B) such retrofits not shall not be used 
                to justify any increase in rents charged to residents 
                of such housing; and</DELETED>
                <DELETED>    (C) owners of such housing shall agree to 
                continue to provide affordable housing consistent with 
                the provisions of the authorizing legislation governing 
                each program for an additional period commensurate with 
                the funding received; and</DELETED>
        <DELETED>    (4) 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.</DELETED>
<DELETED>    (h) Options To Support Reep Program.--The assistance 
provided under this section 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--
</DELETED>
        <DELETED>    (1) implementing prescriptive building retrofit 
        programs and performance-based building retrofit 
        programs;</DELETED>
        <DELETED>    (2) providing credit enhancement, interest rate 
        subsidies, loan guarantees, or other credit support;</DELETED>
        <DELETED>    (3) providing initial capital for public revolving 
        fund financing of retrofits;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (5) providing funds to local government programs 
        to provide REEP services and financial assistance; 
        and</DELETED>
        <DELETED>    (6) other means proposed by State and local 
        agencies, subject to the approval of the 
        Administrator.</DELETED>
<DELETED>    (i) Support for Program.--</DELETED>
        <DELETED>    (1) Initial award limits.--Except as provided in 
        paragraph (2), 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 made available to carry out this section, 
        in amounts not to exceed the following amounts per 
        unit:</DELETED>
                <DELETED>    (A) Residential building program.--
                </DELETED>
                        <DELETED>    (i) Awards.--For residential 
                        buildings--</DELETED>
                                <DELETED>    (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;</DELETED>
                                <DELETED>    (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;</DELETED>
                                <DELETED>    (III) $3,000 for 
                                demonstrated savings of 20 percent, 
                                pursuant to a performance-based 
                                building retrofit program; 
                                and</DELETED>
                                <DELETED>    (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).</DELETED>
                        <DELETED>Funding shall not be provided under 
                        clauses (II) and (III) for the same energy 
                        savings.</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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 7 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.</DELETED>
                <DELETED>    (B) Nonresidential building program.--
                </DELETED>
                        <DELETED>    (i) Awards.--For nonresidential 
                        buildings--</DELETED>
                                <DELETED>    (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;</DELETED>
                                <DELETED>    (II) $0.15 per square foot 
                                of retrofit area for demonstrated 
                                energy use reductions from 20 percent 
                                to 30 percent;</DELETED>
                                <DELETED>    (III) $0.75 per square 
                                foot for demonstrated energy use 
                                reductions from 30 percent to 40 
                                percent;</DELETED>
                                <DELETED>    (IV) $1.60 per square foot 
                                for demonstrated energy use reductions 
                                from 40 percent to 50 percent; 
                                and</DELETED>
                                <DELETED>    (V) $2.50 per square foot 
                                for demonstrated energy use reductions 
                                exceeding 50 percent.</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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:</DELETED>
                                <DELETED>    (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--</DELETED>
                                        <DELETED>    (aa) $24.00 per 
                                        thousand gallons per year of 
                                        potable water savings of 40 
                                        percent or more;</DELETED>
                                        <DELETED>    (bb) $27.00 per 
                                        thousand gallons per year of 
                                        potable water savings of 50 
                                        percent or more; and</DELETED>
                                        <DELETED>    (cc) $30.00 per 
                                        thousand gallons per year of 
                                        potable water savings of 60 
                                        percent or more.</DELETED>
                                <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
                <DELETED>    (C) Disaster damaged buildings.--Any 
                source of funds, including Federal funds provided 
                through the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act, shall qualify as the building 
                owner's 50 percent contribution, in order to match the 
                contribution of REEP funds, so long as the REEP funds 
                are only used to improve the energy efficiency of the 
                buildings being reconstructed. In addition, the 
                appropriate Federal agencies providing assistance to 
                building owners through the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act shall make 
                information available, following a disaster, to 
                building owners rebuilding disaster damaged buildings 
                with assistance from the Act, that REEP funds may be 
                used for energy efficiency improvements.</DELETED>
                <DELETED>    (D) 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).</DELETED>
                <DELETED>    (E) Supplemental support.--State and local 
                governments may supplement the per-building 
                expenditures under this paragraph with funding from 
                other sources.</DELETED>
        <DELETED>    (2) Adjustment.--The Administrator may adjust the 
        specific dollar amounts provided under paragraph (1) 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.</DELETED>
<DELETED>    (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.</DELETED>

  <DELETED>Subtitle G--Emission Reductions From Public Transportation 
                           Vehicles</DELETED>

<DELETED>SEC. 171. SHORT TITLE.</DELETED>

<DELETED>    This subtitle may be cited as the ``Green Taxis Act of 
2009''.</DELETED>

<DELETED>SEC. 172. STATE FUEL ECONOMY REGULATION FOR 
              TAXICABS.</DELETED>

<DELETED>    Section 32919 of title 49, United States Code, is amended 
by adding at the end the following new subsection:</DELETED>
<DELETED>    ``(d) Taxicabs.--Notwithstanding subsection (a), a State 
or political subdivision of a State may prescribe requirements for fuel 
economy for taxicabs and other automobiles if such requirements are at 
least as stringent as applicable Federal requirements and if such 
taxicabs and other automobiles--</DELETED>
        <DELETED>    ``(1) are automobiles that are capable of 
        transporting not more than 10 individuals, including the 
        driver;</DELETED>
        <DELETED>    ``(2) are commercially available or are designed 
        and manufactured pursuant to a contract with such State or 
        political subdivision of such State;</DELETED>
        <DELETED>    ``(3) are operated for hire pursuant to an 
        operating or regulatory license, permit, or other authorization 
        issued by such State or political subdivision of such 
        State;</DELETED>
        <DELETED>    ``(4) provide local transportation for a fare 
        determined on the basis of the time or distance traveled or a 
        combination of time and distance traveled; and</DELETED>
        <DELETED>    ``(5) do not exclusively provide transportation to 
        and from airports.''.</DELETED>

<DELETED>SEC. 173. STATE REGULATION OF MOTOR VEHICLE EMISSIONS FOR 
              TAXICABS.</DELETED>

<DELETED>    Section 209 of the Clean Air Act (42 U.S.C. 7543) is 
amended by adding at the end the following new subsection:</DELETED>
<DELETED>    ``(f) Taxicabs.--(1) Notwithstanding subsection (a), a 
State or political subdivision thereof may adopt and enforce standards 
for the control of emissions from new motor vehicles that are taxicabs 
and other vehicles if such standards will be, in the aggregate, at 
least as protective of public health and welfare as applicable Federal 
standards and if such taxicabs and other vehicles--</DELETED>
                <DELETED>    ``(A) are passenger motor vehicles that 
                are capable of transporting not more than 10 
                individuals, including the driver;</DELETED>
                <DELETED>    ``(B) are commercially available or are 
                designed and manufactured pursuant to a contract with 
                such State or political subdivision thereof;</DELETED>
                <DELETED>    ``(C) are operated for hire pursuant to an 
                operating or regulatory license, permit, or other 
                authorization issued by such State or political 
                subdivision thereof;</DELETED>
                <DELETED>    ``(D) provide local transportation for a 
                fare determined on the basis of the time or distance 
                traveled or a combination of time and distance 
                traveled; and</DELETED>
                <DELETED>    ``(E) do not exclusively provide 
                transportation to and from airports.</DELETED>
<DELETED>    ``(2) If each standard of a State or political subdivision 
thereof is at least as stringent as the comparable applicable Federal 
standard, such standard of such State or political subdivision thereof 
shall be deemed at least as protective of health and welfare as such 
Federal standards for purposes of this subsection.''.</DELETED>

      <DELETED>Subtitle H--Clean Energy and Natural Gas</DELETED>

<DELETED>SEC. 181. CLEAN ENERGY AND ACCELERATED EMISSION REDUCTION 
              PROGRAM.</DELETED>

<DELETED>    (a) Establishment.--</DELETED>
        <DELETED>    (1) In general.--The Administrator shall establish 
        a program to promote dispatchable power generation projects 
        that can accelerate the reduction of power sector carbon 
        dioxide and other greenhouse gas emissions.</DELETED>
        <DELETED>    (2) Use of funds.--Funds provided under this 
        section shall be used by the Administrator to make incentive 
        payments to owners or operators of eligible projects.</DELETED>
<DELETED>    (b) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall promulgate regulations 
providing for incentives, pursuant to the requirements of this 
section.</DELETED>
<DELETED>    (c) Goal.--Not later than 3 years after the date of 
enactment of this Act, the Administrator shall provide incentives for 
eligible projects that generate 300,000 gigawatt-hours of electricity 
per year.</DELETED>
<DELETED>    (d) Criteria for Eligible Projects.--To be eligible for 
funding under this section a project must--</DELETED>
        <DELETED>    (1) reduce emissions below the 2007 average 
        greenhouse gas emissions per megawatt-hour of the United States 
        electric power sector by the quantity specified in subsection 
        (f); and</DELETED>
        <DELETED>    (2) not receive an investment or production credit 
        in--</DELETED>
                <DELETED>    (A) the year in which the project is 
                placed in service; or</DELETED>
                <DELETED>    (B) calendar year 2009, notwithstanding 
                the year in which the project was placed in 
                service.</DELETED>
<DELETED>    (e) Priority.--The Administrator shall give priority to 
eligible projects from the following categories:</DELETED>
        <DELETED>    (1) Power generation projects designed to 
        integrate intermittent renewable power into the bulk-power 
        system.</DELETED>
        <DELETED>    (2) Energy storage projects used to support 
        renewable energy.</DELETED>
        <DELETED>    (3) Power generation projects with carbon capture 
        and sequestration that are not eligible for other assistance 
        under this Act.</DELETED>
        <DELETED>    (4) Projects that achieve the greatest reduction 
        in greenhouse gas emissions per dollar of incentive 
        payment.</DELETED>
<DELETED>    (f) Emission Reduction Criteria.--For the purposes of 
subsection (d), the applicable emission reduction quantity shall be 
determined in accordance with the following table:</DELETED>

2010 through 2020.....................  25 percent
2021 through 2025.....................  40 percent
2026 through 2030.....................  65 percent
 

<DELETED>    (g) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator such sums as are necessary to 
carry out this section for each of fiscal years 2010 through 
2030.</DELETED>

<DELETED>SEC. 182. ADVANCED NATURAL GAS TECHNOLOGIES.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Corporation.--</DELETED>
                <DELETED>    (A) In general.--The term ``corporation'' 
                means any corporation, joint-stock company, 
                partnership, limited liability company, association, 
                business trust, or other organized group of persons, 
                regardless of incorporation.</DELETED>
                <DELETED>    (B) Exclusion.--The term ``corporation'' 
                does not include a municipality.</DELETED>
        <DELETED>    (2) Eligible entity.--</DELETED>
                <DELETED>    (A) In general.--The term ``eligible 
                entity'' means an entity that is eligible to receive a 
                grant under subsection (b).</DELETED>
                <DELETED>    (B) Inclusions.--The term ``eligible 
                entity'' includes a corporation, an eligible research 
                entity, an industry entity, a municipality, a municipal 
                natural gas distribution system, and a natural gas 
                distribution company.</DELETED>
        <DELETED>    (3) Eligible research entity.--</DELETED>
                <DELETED>    (A) In general.--The term ``eligible 
                research entity'' means an entity that is experienced 
                in planning, conducting, and implementing natural gas 
                research, development, demonstration, and deployment 
                projects.</DELETED>
                <DELETED>    (B) Inclusions.--The term ``eligible 
                research entity'' includes a research institution and 
                an institution of higher education.</DELETED>
        <DELETED>    (4) Industry entity.--</DELETED>
                <DELETED>    (A) In general.--The term ``industry 
                entity'' means the persons and municipalities 
                collectively engaged in the delivery of natural gas for 
                consumption in the United States (such as natural gas 
                distribution companies and municipal natural gas 
                distribution systems).</DELETED>
                <DELETED>    (B) Exclusion.--The term ``industry 
                entity'' does not include any natural gas 
                customer.</DELETED>
        <DELETED>    (5) Municipality.--The term ``municipality'' means 
        a city, county, or other political subdivision or agency of a 
        State.</DELETED>
        <DELETED>    (6) Municipal natural gas distribution system.--
        The term ``municipal natural gas distribution system'' means a 
        municipality engaged in the business of delivering natural gas 
        for consumption to residential, commercial, industrial, and 
        other natural gas customers.</DELETED>
        <DELETED>    (7) Natural gas.--</DELETED>
                <DELETED>    (A) In general.--The term ``natural gas'' 
                means a mixture of hydrocarbon and nonhydrocarbon 
                gases, primarily methane, that have been produced from 
                geological formations or by any other means.</DELETED>
                <DELETED>    (B) Inclusion.--The term ``natural gas'' 
                includes renewable biogas.</DELETED>
        <DELETED>    (8) Natural gas distribution company.--The term 
        ``natural gas distribution company'' means a person engaged in 
        the business of distributing natural gas for consumption to 
        residential, commercial, industrial, or other natural gas 
        customers.</DELETED>
<DELETED>    (b) Grant Programs.--</DELETED>
        <DELETED>    (1) Natural gas electricity generation grants.--
        The Administrator, in consultation with Secretary of Energy, 
        may provide to eligible entities research and development 
        grants to support the deployment of low greenhouse-gas-emitting 
        end-use technologies, including carbon capture and 
        sequestration technologies, for natural gas electricity 
        generation.</DELETED>
        <DELETED>    (2) Natural gas residential and commercial 
        technology grants.--The Administrator shall establish a program 
        to provide to eligible entities grants to advance the 
        commercial demonstration or early development of low 
        greenhouse-gas-emitting end-use technologies fueled by natural 
        gas, including carbon capture and storage, for residential and 
        commercial purposes, through research, development, 
        demonstration, and deployment of those technologies.</DELETED>
<DELETED>    (c) Reporting.--Not later than 180 days after the date of 
enactment of this Act, and every 180 days thereafter, the Secretary of 
Energy shall submit to the Committee on Energy and Commerce of the 
House of Representatives and the Senate Committees on Energy and 
Natural Resources and Environment and Public Works of the Senate a 
report that describes the status and results of activities carried out 
under subsection (b).</DELETED>
<DELETED>    (d) Authorization.--There are authorized to be 
appropriated such sums as are necessary to carry out this 
section.</DELETED>

                 <DELETED>TITLE II--RESEARCH</DELETED>

             <DELETED>Subtitle A--Energy Research</DELETED>

<DELETED>SEC. 201. ADVANCED ENERGY RESEARCH.</DELETED>

<DELETED>    (a) In General.--The Administrator shall establish a 
program to provide grants for advanced energy research.</DELETED>
<DELETED>    (b) Distribution.--The Administrator shall distribute 
grants 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.</DELETED>
<DELETED>    (c) Selection of Proposals.--In selecting proposals for 
funding under this section, the Administrator shall prioritize 
applications that--</DELETED>
        <DELETED>    (1) enhance the economic and energy security of 
        the United States through the development of energy 
        technologies that result in--</DELETED>
                <DELETED>    (A) reductions of imports of energy from 
                foreign sources;</DELETED>
                <DELETED>    (B) reductions of energy-related 
                emissions, including greenhouse gases; and</DELETED>
                <DELETED>    (C) improvements in the energy efficiency 
                of all economic sectors; and</DELETED>
        <DELETED>    (2) ensure that the United States maintains a 
        technological lead in developing and deploying advanced energy 
        technologies.</DELETED>
<DELETED>    (d) Responsibilities.--The Administrator 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.</DELETED>
<DELETED>    (e) Assistance.--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.</DELETED>
<DELETED>    (f) Authorization.--There are authorized to be 
appropriated such sums as are necessary to carry out this 
section.</DELETED>

<DELETED>Subtitle B--Drinking Water Adaptation, Technology, Education, 
                         and Research</DELETED>

<DELETED>SEC. 211. EFFECTS OF CLIMATE CHANGE ON DRINKING WATER 
              UTILITIES.</DELETED>

<DELETED>    (a) Findings.--Congress finds that--</DELETED>
        <DELETED>    (1) the consensus among climate scientists is 
        overwhelming that climate change is occurring more rapidly than 
        can be attributed to natural causes, and that significant 
        impacts to the water supply are already occurring;</DELETED>
        <DELETED>    (2) among the first and most critical of those 
        impacts will be change to patterns of precipitation around the 
        world, which will affect water availability for the most basic 
        drinking water and domestic water needs of populations in many 
        areas of the United States;</DELETED>
        <DELETED>    (3) drinking water utilities throughout the United 
        States, as well as those in Europe, Australia, and Asia, are 
        concerned that extended changes in precipitation will lead to 
        extended droughts;</DELETED>
        <DELETED>    (4) supplying water is highly energy-intensive and 
        will become more so as climate change forces more utilities to 
        turn to alternative supplies;</DELETED>
        <DELETED>    (5) energy production consumes a significant 
        percentage of the fresh water resources of the United 
        States;</DELETED>
        <DELETED>    (6) since 2003, the drinking water industry of the 
        United States has sponsored, through a nonprofit water research 
        foundation, various studies to assess the impacts of climate 
        change on drinking water supplies;</DELETED>
        <DELETED>    (7) those studies demonstrate the need for a 
        comprehensive program of research into the full range of 
        impacts on drinking water utilities, including impacts on water 
        supplies, facilities, and customers;</DELETED>
        <DELETED>    (8) that nonprofit water research foundation is 
        also coordinating internationally with other drinking water 
        utilities on shared research projects and has hosted 
        international workshops with counterpart European and Asian 
        water research organizations to develop a unified research 
        agenda for applied research on adaptive strategies to address 
        climate change impacts;</DELETED>
        <DELETED>    (9) research data in existence as of the date of 
        enactment of this Act--</DELETED>
                <DELETED>    (A) summarize the best available 
                scientific evidence on climate change;</DELETED>
                <DELETED>    (B) identify the implications of climate 
                change for the water cycle and the availability and 
                quality of water resources; and</DELETED>
                <DELETED>    (C) provide general guidance on planning 
                and adaptation strategies for water utilities; 
                and</DELETED>
        <DELETED>    (10) given uncertainties about specific climate 
        changes in particular areas, drinking water utilities need to 
        prepare for a wider range of likely possibilities in managing 
        and delivery of water.</DELETED>
<DELETED>    (b) In General.--The Administrator, in cooperation with 
the Secretary of Commerce, the Secretary of Energy, and the Secretary 
of the Interior, shall establish and provide funding for a program of 
directed and applied research, to be conducted through a nonprofit 
drinking water research foundation and sponsored by water utilities, to 
assist the utilities in adapting to the effects of climate 
change.</DELETED>
<DELETED>    (c) Research Areas.--The research conducted in accordance 
with subsection (b) shall include research into--</DELETED>
        <DELETED>    (1) water quality impacts and solutions, including 
        research--</DELETED>
                <DELETED>    (A) to address probable impacts on raw 
                water quality resulting from--</DELETED>
                        <DELETED>    (i) erosion and turbidity from 
                        extreme precipitation events;</DELETED>
                        <DELETED>    (ii) watershed vegetation changes; 
                        and</DELETED>
                        <DELETED>    (iii) increasing ranges of 
                        pathogens, algae, and nuisance organisms 
                        resulting from warmer temperatures; 
                        and</DELETED>
                <DELETED>    (B) on mitigating increasing damage to 
                watersheds and water quality by evaluating extreme 
                events, such as wildfires and hurricanes, to learn and 
                develop management approaches to mitigate--</DELETED>
                        <DELETED>    (i) permanent watershed 
                        damage;</DELETED>
                        <DELETED>    (ii) quality and yield impacts on 
                        source waters; and</DELETED>
                        <DELETED>    (iii) increased costs of water 
                        treatment;</DELETED>
        <DELETED>    (2) impacts on groundwater supplies from carbon 
        sequestration, including research to evaluate potential water 
        quality consequences of carbon sequestration in various 
        regional aquifers, soil conditions, and mineral 
        deposits;</DELETED>
        <DELETED>    (3) water quantity impacts and solutions, 
        including research--</DELETED>
                <DELETED>    (A) to evaluate climate change impacts on 
                water resources throughout hydrological basins of the 
                United States;</DELETED>
                <DELETED>    (B) to improve the accuracy and resolution 
                of climate change models at a regional level;</DELETED>
                <DELETED>    (C) to identify and explore options for 
                increasing conjunctive use of aboveground and 
                underground storage of water; and</DELETED>
                <DELETED>    (D) to optimize operation of existing and 
                new reservoirs in diminished and erratic periods of 
                precipitation and runoff;</DELETED>
        <DELETED>    (4) infrastructure impacts and solutions for water 
        treatment and wastewater treatment facilities and underground 
        pipelines, including research--</DELETED>
                <DELETED>    (A) to evaluate and mitigate the impacts 
                of sea level rise on--</DELETED>
                        <DELETED>    (i) near-shore 
                        facilities;</DELETED>
                        <DELETED>    (ii) soil drying and 
                        subsidence;</DELETED>
                        <DELETED>    (iii) reduced flows in water and 
                        wastewater pipelines; and</DELETED>
                        <DELETED>    (iv) extreme flows in wastewater 
                        systems; and</DELETED>
                <DELETED>    (B) on ways of increasing the resilience 
                of existing infrastructure, planning cost-effective 
                responses to adapt to climate change, and developing 
                new design standards for future infrastructure that 
                include the use of energy conservation measures and 
                renewable energy in new construction to the maximum 
                extent practicable;</DELETED>
        <DELETED>    (5) desalination, water reuse, and alternative 
        supply technologies, including research--</DELETED>
                <DELETED>    (A) to improve and optimize existing 
                membrane technologies, and to identify and develop 
                breakthrough technologies, to enable the use of 
                seawater, brackish groundwater, treated wastewater, and 
                other impaired sources;</DELETED>
                <DELETED>    (B) into new sources of water through more 
                cost-effective water treatment practices in recycling 
                and desalination; and</DELETED>
                <DELETED>    (C) to improve technologies for use in--
                </DELETED>
                        <DELETED>    (i) managing and minimizing the 
                        volume of desalination and reuse concentrate 
                        streams; and</DELETED>
                        <DELETED>    (ii) minimizing the environmental 
                        impacts of seawater intake at desalination 
                        facilities;</DELETED>
        <DELETED>    (6) energy efficiency and greenhouse gas 
        minimization, including research--</DELETED>
                <DELETED>    (A) on optimizing the energy efficiency of 
                water supply and wastewater operations and improving 
                water efficiency in energy production and management; 
                and</DELETED>
                <DELETED>    (B) to identify and develop renewable, 
                carbon-neutral energy options for the water supply and 
                wastewater industry;</DELETED>
        <DELETED>    (7) regional and hydrological basin cooperative 
        water management solutions, including research into--</DELETED>
                <DELETED>    (A) institutional mechanisms for greater 
                regional cooperation and use of water exchanges, 
                banking, and transfers; and</DELETED>
                <DELETED>    (B) the economic benefits of sharing risks 
                of shortage across wider areas;</DELETED>
        <DELETED>    (8) utility management, decision support systems, 
        and water management models, including research--</DELETED>
                <DELETED>    (A) into improved decision support systems 
                and modeling tools for use by water utility managers to 
                assist with increased water supply uncertainty and 
                adaptation strategies posed by climate 
                change;</DELETED>
                <DELETED>    (B) to provide financial tools, including 
                new rate structures, to manage financial resources and 
                investments, because increased conservation practices 
                may diminish revenue and increase investments in 
                infrastructure; and</DELETED>
                <DELETED>    (C) to develop improved systems and models 
                for use in evaluating--</DELETED>
                        <DELETED>    (i) successful alternative methods 
                        for conservation and demand management; 
                        and</DELETED>
                        <DELETED>    (ii) climate change impacts on 
                        groundwater resources;</DELETED>
        <DELETED>    (9) reducing greenhouse gas emissions and 
        improving energy demand management, including research to 
        improve energy efficiency in water collection, production, 
        transmission, treatment, distribution, and disposal to provide 
        more sustainability and means to assist drinking water 
        utilities in reducing the production of greenhouse gas 
        emissions in the collection, production, transmission, 
        treatment, distribution, and disposal of drinking 
        water;</DELETED>
        <DELETED>    (10) water conservation and demand management, 
        including research--</DELETED>
                <DELETED>    (A) to develop strategic approaches to 
                water demand management that offer the lowest-cost, 
                noninfrastructural options to serve growing populations 
                or manage declining supplies, primarily through--
                </DELETED>
                        <DELETED>    (i) efficiencies in water use and 
                        reallocation of the saved water;</DELETED>
                        <DELETED>    (ii) demand management 
                        tools;</DELETED>
                        <DELETED>    (iii) economic incentives; 
                        and</DELETED>
                        <DELETED>    (iv) water-saving technologies; 
                        and</DELETED>
                <DELETED>    (B) into efficiencies in water management 
                through integrated water resource management that 
                incorporates--</DELETED>
                        <DELETED>    (i) supply-side and demand-side 
                        processes;</DELETED>
                        <DELETED>    (ii) continuous adaptive 
                        management; and</DELETED>
                        <DELETED>    (iii) the inclusion of 
                        stakeholders in decisionmaking processes; 
                        and</DELETED>
        <DELETED>    (11) communications, education, and public 
        acceptance, including research--</DELETED>
                <DELETED>    (A) into improved strategies and 
                approaches for communicating with customers, 
                decisionmakers, and other stakeholders about the 
                implications of climate change on water supply and 
                water management;</DELETED>
                <DELETED>    (B) to develop effective communication 
                approaches--</DELETED>
                        <DELETED>    (i) to gain public acceptance of 
                        alternative water supplies and new policies and 
                        practices, including conservation and demand 
                        management; and</DELETED>
                        <DELETED>    (ii) to gain public recognition 
                        and acceptance of increased costs; 
                        and</DELETED>
                <DELETED>    (C) to create and maintain a clearinghouse 
                of climate change information for water utilities, 
                academic researchers, stakeholders, government 
                agencies, and research organizations.</DELETED>
<DELETED>    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $25,000,000 for each of 
fiscal years 2010 through 2020.</DELETED>

        <DELETED>TITLE III--TRANSITION AND ADAPTATION</DELETED>

    <DELETED>Subtitle A--Green Jobs and Worker Transition</DELETED>

                 <DELETED>PART 1--GREEN JOBS</DELETED>

<DELETED>SEC. 301. CLEAN ENERGY CURRICULUM DEVELOPMENT 
              GRANTS.</DELETED>

<DELETED>    (a) Authorization.--The Secretary of Education is 
authorized to award grants, on a competitive basis, to eligible 
partnerships to develop programs of study (containing the information 
described in section 122(c)(1)(A) of the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 U.S.C. 2342)), that are focused on 
emerging careers and jobs in the fields of clean energy, renewable 
energy, energy efficiency, climate change mitigation, and climate 
change adaptation. The Secretary of Education shall consult with the 
Secretary of Labor and the Secretary of Energy prior to the issuance of 
a solicitation for grant applications.</DELETED>
<DELETED>    (b) Eligible Partnerships.--For purposes of this section, 
an eligible partnership shall include--</DELETED>
        <DELETED>    (1) at least 1 local educational agency eligible 
        for funding under section 131 of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2351) or an area 
        career and technical education school or education service 
        agency described in such section;</DELETED>
        <DELETED>    (2) at least 1 postsecondary institution eligible 
        for funding under section 132 of such Act (20 U.S.C. 2352); 
        and</DELETED>
        <DELETED>    (3) representatives of the community including 
        business, labor organizations, and industry that have 
        experience in fields as described in subsection (a).</DELETED>
<DELETED>    (c) Application.--An eligible partnership seeking a grant 
under this section shall submit an application to the Secretary at such 
time and in such manner as the Secretary may require. Applications 
shall include--</DELETED>
        <DELETED>    (1) a description of the eligible partners and 
        partnership, the roles and responsibilities of each partner, 
        and a demonstration of each partner's capacity to support the 
        program;</DELETED>
        <DELETED>    (2) a description of the career area or areas 
        within the fields as described in subsection (a) to be 
        developed, the reason for the choice, and evidence of the labor 
        market need to prepare students in that area;</DELETED>
        <DELETED>    (3) a description of the new or existing program 
        of study and both secondary and postsecondary 
        components;</DELETED>
        <DELETED>    (4) a description of the students to be served by 
        the new program of study;</DELETED>
        <DELETED>    (5) a description of how the program of study 
        funded by the grant will be replicable and disseminated to 
        schools outside of the partnership, including urban and rural 
        areas;</DELETED>
        <DELETED>    (6) a description of applied learning that will be 
        incorporated into the program of study and how it will 
        incorporate or reinforce academic learning;</DELETED>
        <DELETED>    (7) a description of how the program of study will 
        be delivered;</DELETED>
        <DELETED>    (8) a description of how the program will provide 
        accessibility to students, especially economically 
        disadvantaged, low performing, and urban and rural 
        students;</DELETED>
        <DELETED>    (9) a description of how the program will address 
        placement of students in nontraditional fields as described in 
        section 3(20) of the Carl D. Perkins Career and Technical 
        Education Act of 2006 (20 U.S.C. 2302(20)); and</DELETED>
        <DELETED>    (10) a description of how the applicant proposes 
        to consult or has consulted with a labor organization, labor 
        management partnership, apprenticeship program, or joint 
        apprenticeship and training program that provides education and 
        training in the field of study for which the applicant proposes 
        to develop a curriculum.</DELETED>
<DELETED>    (d) Priority.--The Secretary shall give priority to 
applications that--</DELETED>
        <DELETED>    (1) use online learning or other innovative means 
        to deliver the program of study to students, educators, and 
        instructors outside of the partnership; and</DELETED>
        <DELETED>    (2) focus on low performing students and special 
        populations as defined in section 3(29) of the Carl D. Perkins 
        Career and Technical Education Act of 2006 (20 U.S.C. 
        2302(29)).</DELETED>
<DELETED>    (e) Peer Review.--The Secretary shall convene a peer 
review process to review applications for grants under this section and 
to make recommendations regarding the selection of grantees. Members of 
the peer review committee shall include--</DELETED>
        <DELETED>    (1) educators who have experience implementing 
        curricula with comparable purposes; and</DELETED>
        <DELETED>    (2) business and industry experts in fields as 
        described in subsection (a).</DELETED>
<DELETED>    (f) Uses of Funds.--Grants awarded under this section 
shall be used for the development, implementation, and dissemination of 
programs of study (as described in section 122(c)(1)(A) of the Carl D. 
Perkins Career and Technical Education Act (20 U.S.C. 2342(c)(1)(A))) 
in career areas related to clean energy, renewable energy, energy 
efficiency, climate change mitigation, and climate change 
adaptation.</DELETED>

<DELETED>SEC. 302. DEVELOPMENT OF INFORMATION AND RESOURCES 
              CLEARINGHOUSE FOR VOCATIONAL EDUCATION AND JOB TRAINING 
              IN RENEWABLE ENERGY SECTORS.</DELETED>

<DELETED>    (a) Development of Clearinghouse.--Not later than 18 
months after the date of enactment of this Act, the Secretary of Labor, 
in collaboration with the Secretary of Energy and the Secretary of 
Education, shall develop an internet based information and resources 
clearinghouse to aid career and technical education and job training 
programs for the renewable energy sectors. In establishing the 
clearinghouse, the Secretary shall--</DELETED>
        <DELETED>    (1) collect and provide information that addresses 
        the consequences of rapid changes in technology and regional 
        disparities for renewable energy training programs and provides 
        best practices for training and education in light of such 
        changes and disparities;</DELETED>
        <DELETED>    (2) place an emphasis on facilitating 
        collaboration between the renewable energy industry and job 
        training programs and on identifying industry and technological 
        trends and best practices, to better help job training programs 
        maintain quality and relevance; and</DELETED>
        <DELETED>    (3) place an emphasis on assisting programs that 
        cater to high-demand middle-skill, trades, manufacturing, 
        contracting, and consulting careers.</DELETED>
<DELETED>    (b) Solicitation and Consultation.--In developing the 
clearinghouse pursuant to subsection (a), the Secretary shall solicit 
information and expertise from businesses and organizations in the 
renewable energy sector and from institutions of higher education, 
career and technical schools, and community colleges that provide 
training in the renewable energy sectors. The Secretary shall solicit a 
comprehensive peer review of the clearinghouse by such entities not 
less than once every 2 years. Nothing in this subsection should be 
interpreted to require the divulgence of proprietary or competitive 
information.</DELETED>
<DELETED>    (c) Contents of Clearinghouse.--</DELETED>
        <DELETED>    (1) Separate section for each renewable energy 
        sector.--The clearinghouse shall contain separate sections 
        developed for each of the following renewable energy 
        sectors:</DELETED>
                <DELETED>    (A) Solar energy systems.</DELETED>
                <DELETED>    (B) Wind energy systems.</DELETED>
                <DELETED>    (C) Energy transmission systems.</DELETED>
                <DELETED>    (D) Geothermal systems of energy and 
                heating.</DELETED>
                <DELETED>    (E) Energy efficiency technical 
                training.</DELETED>
        <DELETED>    (2) Additional requirements.--In addition to the 
        information required in subsection (a), each section of the 
        clearinghouse shall include information on basic environmental 
        science and processes needed to understand renewable energy 
        systems, Federal government and industry resources, and points 
        of contact to aid institutions in the development of placement 
        programs for apprenticeships and post graduation opportunities, 
        and information and tips about a green workplace, energy 
        efficiency, and relevant environmental topics and information 
        on available industry recognized certifications in each 
        area.</DELETED>
<DELETED>    (d) Dissemination.--The clearinghouse shall be made 
available via the Internet to the general public. Notice of the 
completed clearinghouse and any major revisions thereto shall also be 
provided--</DELETED>
        <DELETED>    (1) to each Member of Congress; and</DELETED>
        <DELETED>    (2) on the websites of the Departments of 
        Education, Energy, and Labor.</DELETED>
<DELETED>    (e) Revision.--The Secretary of Labor shall revise and 
update the clearinghouse on a regular basis to ensure its 
relevance.</DELETED>

<DELETED>SEC. 303. GREEN CONSTRUCTION CAREERS DEMONSTRATION 
              PROJECT.</DELETED>

<DELETED>    (a) Establishment and Authority.--The Secretary of Labor, 
in consultation with the Secretary of Energy, shall, not later than 180 
days after the enactment of this Act, establish a Green Construction 
Careers demonstration project by rules, regulations, and guidance in 
accordance with the provisions of this section. The purpose of the 
demonstration project shall be to promote middle class careers and 
quality employment practices in the green construction sector among 
targeted workers and to advance efficiency and performance on 
construction projects related to this Act. In order to advance these 
purposes, the Secretary shall identify projects, including residential 
retrofitting projects, funded directly by or assisted in whole or in 
part by or through the Federal Government pursuant to this Act or by 
any other entity established in accordance with this Act, to which all 
of the following shall apply.</DELETED>
<DELETED>    (b) Requirements.--The Secretaries may establish such 
terms and conditions for the demonstration projects as the Secretaries 
determine are necessary to meet the purposes of subsection (a), 
including establishing minimum proportions of hours to be worked by 
targeted workers on such projects. The Secretaries may require the 
contractors and subcontractors performing construction services on the 
project to comply with the terms and conditions as a condition of 
receiving funding or assistance from the Federal Government under this 
Act.</DELETED>
<DELETED>    (c) Evaluation.--The Secretaries shall evaluate the 
demonstration projects against the purposes of this section at the end 
of 3 years from initiation of the demonstration project. If the 
Secretaries determine that the demonstration projects have been 
successful, the Secretaries may identify further projects to which of 
the provisions of this section shall apply.</DELETED>
<DELETED>    (d) GAO Report.--The Comptroller General shall prepare and 
submit a report to the Committee on Health, Education, Labor, and 
Pensions and the Committee on Energy and Natural Resources of the 
Senate and the Committee on Education and Labor and the Committee on 
Energy and Commerce of the House of Representatives not later than 5 
years after the date of enactment of this Act, which shall advise the 
committees of the results of the demonstration projects and make 
appropriate recommendations.</DELETED>
<DELETED>    (e) Definition and Designation of Targeted Workers.--As 
used in this section, the term ``targeted worker'' means an individual 
who resides in the same labor market area (as defined in section 
101(18) of the Workforce Investment Act of 1998 (29 U.S.C. 2801(18))) 
as the project and who--</DELETED>
        <DELETED>    (1) is a member of a targeted group, within the 
        meaning of section 51 of the Internal Revenue Code of 1986, 
        other than an individual described in subsection (d)(1)(C) of 
        such section;</DELETED>
        <DELETED>    (2)(A) resides in a census tract in which not less 
        than 20 percent of the households have incomes below the 
        Federal poverty guidelines; or</DELETED>
        <DELETED>    (B) is a member of a family that received a total 
        family income that, during the 2-year period prior to 
        employment on the project or admission to the pre-
        apprenticeship program, did not exceed 200 percent of the 
        Federal poverty guidelines (exclusive of unemployment 
        compensation, child support payments, payments described in 
        section 101(25)(A) of the Workforce Investment Act (29 U.S.C. 
        2801(25)(A)), and old-age and survivors insurance benefits 
        received under section 202 of the Social Security Act (42 
        U.S.C. 402); or</DELETED>
        <DELETED>    (3) is a displaced homemaker, as such term is 
        defined in section 3(10) of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2302(10)).</DELETED>
<DELETED>    (f) Qualified Pre-Apprenticeship Program.--A qualified 
pre-apprenticeship program is a pre-apprenticeship program that has 
demonstrated an ability to recruit, train, and prepare for admission to 
apprenticeship programs individuals who are targeted workers.</DELETED>
<DELETED>    (g) Qualified Apprenticeship and Other Training 
Programs.--</DELETED>
        <DELETED>    (1) Participation by each contractor required.--
        Each contractor and subcontractor that seeks to provide 
        construction services on projects identified by the Secretaries 
        pursuant to subsection (a) shall submit adequate assurances 
        with its bid or proposal that it participates in a qualified 
        apprenticeship or other training program, with a written 
        arrangement with a qualified pre-apprenticeship program, for 
        each craft or trade classification of worker that it intends to 
        employ to perform work on the project.</DELETED>
        <DELETED>    (2) Definition of qualified apprentice ship or 
        other training program.--</DELETED>
                <DELETED>    (A) In general.--For purposes of this 
                section, the term ``qualified apprenticeship or other 
                training program'' means an apprenticeship or other 
                training program that qualifies as an employee welfare 
                benefit plan, as defined in section 3(1) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1002(1)).</DELETED>
                <DELETED>    (B) Certification of other programs in 
                certain localities.--In the event that the Secretary of 
                Labor certifies that a qualified apprenticeship or 
                other training program (as defined in subparagraph (A)) 
                for a craft or trade classification of workers that a 
                prospective contractor or subcontractor intends to 
                employ, is not operated in the locality where the 
                project will be performed, an apprenticeship or other 
                training program that is not an employee welfare 
                benefit plan (as defined in such section) may be 
                certified by the Secretary as a qualified 
                apprenticeship or other training program provided it is 
                registered with the Office of Apprenticeship of the 
                Department of Labor, or a State apprenticeship agency 
                recognized by the Office of Apprenticeship for Federal 
                purposes.</DELETED>
<DELETED>    (h) Facilitating Compliance.--The Secretary may require 
Federal contracting agencies, recipients of Federal assistance, and any 
other entity established in accordance with this Act to require 
contractors to enter into an agreement in a manner comparable with the 
standards set forth in sections 3 and 4 of Executive Order 13502 in 
order to achieve the purposes of this section, including any 
requirements established by subsection (b).</DELETED>
<DELETED>    (i) Limitation.--The requirements of this section shall 
not apply to any project funded under this Act in American Samoa, Guam, 
the Commonwealth of the Northern Mariana Islands, the Commonwealth of 
Puerto Rico, or the United States Virgin Islands, unless participation 
is requested by the governor of such territories within 1 year of the 
promulgation of rules under this Act.</DELETED>

 <DELETED>PART 2--CLIMATE CHANGE WORKER ADJUSTMENT ASSISTANCE</DELETED>

SEC. 311. PETITIONS, ELIGIBILITY REQUIREMENTS, AND DETERMINATIONS.

<DELETED>    (a) Petitions.--</DELETED>
        <DELETED>    (1) Filing.--A petition for certification of 
        eligibility to apply for adjustment assistance for a group of 
        workers under this part may be filed by any of the 
        following:</DELETED>
                <DELETED>    (A) The group of workers.</DELETED>
                <DELETED>    (B) The certified or recognized union or 
                other duly authorized representative of such 
                workers.</DELETED>
                <DELETED>    (C) Employers of such workers, one-stop 
                operators or one-stop partners (as defined in section 
                101 of the Workforce Investment Act of 1998 (29 U.S.C. 
                2801)), including State employment security agencies, 
                or the State dislocated worker unit established under 
                title I of such Act, on behalf of such 
                workers.</DELETED>
        <DELETED>The petition shall be filed simultaneously with the 
        Secretary of Labor and with the Governor of the State in which 
        such workers' employment site is located.</DELETED>
        <DELETED>    (2) Action by governors.--Upon receipt of a 
        petition filed under paragraph (1), the Governor shall--
        </DELETED>
                <DELETED>    (A) ensure that rapid response activities 
                and appropriate core and intensive services (as 
                described in section 134 of the Workforce Investment 
                Act of 1998 (29 U.S.C. 2864)) authorized under other 
                Federal laws are made available to the workers covered 
                by the petition to the extent authorized under such 
                laws; and</DELETED>
                <DELETED>    (B) assist the Secretary in the review of 
                the petition by verifying such information and 
                providing such other assistance as the Secretary may 
                request.</DELETED>
        <DELETED>    (3) Action by the secretary.--Upon receipt of the 
        petition, the Secretary shall promptly publish notice in the 
        Federal Register and on the website of the Department of Labor 
        that the Secretary has received the petition and initiated an 
        investigation.</DELETED>
        <DELETED>    (4) Hearings.--If the petitioner, or any other 
        person found by the Secretary to have a substantial interest in 
        the proceedings, submits not later than 10 days after the date 
        of the Secretary's publication under paragraph (3) a request 
        for a hearing, the Secretary shall provide for a public hearing 
        and afford such interested persons an opportunity to be 
        present, to produce evidence, and to be heard.</DELETED>
<DELETED>    (b) Eligibility.--</DELETED>
        <DELETED>    (1) In general.--A group of workers shall be 
        certified by the Secretary as eligible to apply for adjustment 
        assistance under this part pursuant to a petition filed under 
        subsection (a) if--</DELETED>
                <DELETED>    (A) the group of workers is employed in--
                </DELETED>
                        <DELETED>    (i) energy producing and 
                        transforming industries;</DELETED>
                        <DELETED>    (ii) industries dependent upon 
                        energy industries;</DELETED>
                        <DELETED>    (iii) energy-intensive 
                        manufacturing industries;</DELETED>
                        <DELETED>    (iv) consumer goods manufacturing; 
                        or</DELETED>
                        <DELETED>    (v) other industries whose 
                        employment the Secretary determines has been 
                        adversely affected by any requirement of title 
                        VII of the Clean Air Act;</DELETED>
                <DELETED>    (B) the Secretary determines that a 
                significant number or proportion of the workers in such 
                workers' employment site have become totally or 
                partially separated, or are threatened to become 
                totally or partially separated from employment; 
                and</DELETED>
                <DELETED>    (C) the sales, production, or delivery of 
                goods or services have decreased as a result of any 
                requirement of title VII of the Clean Air Act, 
                including--</DELETED>
                        <DELETED>    (i) the shift from reliance upon 
                        fossil fuels to other sources of energy, 
                        including renewable energy, that results in the 
                        closing of a facility or layoff of employees at 
                        a facility that mines, produces, processes, or 
                        utilizes fossil fuels to generate 
                        electricity;</DELETED>
                        <DELETED>    (ii) a substantial increase in the 
                        cost of energy required for a manufacturing 
                        facility to produce items whose prices are 
                        competitive in the marketplace, to the extent 
                        the cost is not offset by assistance provided 
                        to the facility pursuant to title VII of the 
                        Clean Air Act; or</DELETED>
                        <DELETED>    (iii) other documented occurrences 
                        that the Secretary determines are indicators of 
                        an adverse impact on an industry described in 
                        subparagraph (A) as a result of any requirement 
                        of title VII of the Clean Air Act.</DELETED>
        <DELETED>    (2) Workers in public agencies.--A group of 
        workers in a public agency shall be certified by the Secretary 
        as eligible to apply for climate change adjustment assistance 
        pursuant to a petition filed if the Secretary determines that a 
        significant number or proportion of the workers in the public 
        agency have become totally or partially separated from 
        employment, or are threatened to become totally or partially 
        separated as a result of any requirement of title VII of the 
        Clean Air Act.</DELETED>
        <DELETED>    (3) Adversely affected service workers.--A group 
        of workers shall be certified as eligible to apply for climate 
        change adjustment assistance pursuant to a petition filed if 
        the Secretary determines that--</DELETED>
                <DELETED>    (A) a significant number or proportion of 
                the service workers at an employment site where a group 
                of workers has been certified by the Secretary as 
                eligible to apply for adjustment assistance under this 
                part pursuant to paragraph (1) have become totally or 
                partially separated from employment, or are threatened 
                to become totally or partially separated; and</DELETED>
                <DELETED>    (B) a loss of business in the firm 
                providing service workers to an employment site is 
                directly attributable to one or more of the documented 
                occurrences listed in paragraph (1)(C).</DELETED>
<DELETED>    (c) Authority To Investigate and Collect Information.--
</DELETED>
        <DELETED>    (1) In general.--The Secretary shall, in 
        determining whether to certify a group of workers under 
        subsection (d), obtain information the Secretary determines to 
        be necessary to make the certification, through questionnaires 
        and in such other manner as the Secretary determines 
        appropriate from--</DELETED>
                <DELETED>    (A) the workers' employer;</DELETED>
                <DELETED>    (B) officials of certified or recognized 
                unions or other duly authorized representatives of the 
                group of workers; or</DELETED>
                <DELETED>    (C) one-stop operators or one-stop 
                partners (as defined in section 101 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801)).</DELETED>
        <DELETED>    (2) Verification of information.--The Secretary 
        shall require an employer, union, or one-stop operator or 
        partner to certify all information obtained under paragraph (1) 
        from the employer, union, or one-stop operator or partner (as 
        the case may be) on which the Secretary relies in making a 
        determination under subsection (d), unless the Secretary has a 
        reasonable basis for determining that such information is 
        accurate and complete without being certified.</DELETED>
        <DELETED>    (3) Protection of confidential information.--The 
        Secretary may not release information obtained under paragraph 
        (1) that the Secretary considers to be confidential business 
        information unless the employer submitting the confidential 
        business information had notice, at the time of submission, 
        that the information would be released by the Secretary, or the 
        employer subsequently consents to the release of the 
        information. Nothing in this paragraph shall be construed to 
        prohibit the Secretary from providing such confidential 
        business information to a court in camera or to another party 
        under a protective order issued by a court.</DELETED>
<DELETED>    (d) Determination by the Secretary of Labor.--</DELETED>
        <DELETED>    (1) In general.--As soon as possible after the 
        date on which a petition is filed under subsection (a), but in 
        any event not later than 40 days after that date, the 
        Secretary, in consultation with the Secretary of Energy and the 
        Administrator, as necessary, shall determine whether the 
        petitioning group meets the requirements of subsection (b) and 
        shall issue a certification of eligibility to apply for 
        assistance under this part covering workers in any group which 
        meets such requirements. Each certification shall specify the 
        date on which the total or partial separation began or 
        threatened to begin. Upon reaching a determination on a 
        petition, the Secretary shall promptly publish a summary of the 
        determination in the Federal Register and on the website of the 
        Department of Labor, together with the Secretary's reasons for 
        making such determination.</DELETED>
        <DELETED>    (2) One-Year limitation.--A certification under 
        this section shall not apply to any worker whose last total or 
        partial separation from the employment site before the worker's 
        application under section 312(a) occurred more than 1 year 
        before the date of the petition on which such certification was 
        granted.</DELETED>
        <DELETED>    (3) Revocation of certification.--Whenever the 
        Secretary determines, with respect to any certification of 
        eligibility of the workers of an employment site, that total or 
        partial separations from such site are no longer a result of 
        the factors specified in subsection (b)(1), the Secretary shall 
        terminate such certification and promptly have notice of such 
        termination published in the Federal Register and on the 
        website of the Department of Labor, together with the 
        Secretary's reasons for making such determination. Such 
        termination shall apply only with respect to total or partial 
        separations occurring after the termination date specified by 
        the Secretary.</DELETED>
<DELETED>    (e) Industry Notification of Assistance.--Upon receiving a 
notification of a determination under subsection (d) with respect to a 
domestic industry the Secretary of Labor shall notify the 
representatives of the domestic industry affected by the determination, 
employers publicly identified by name during the course of the 
proceeding relating to the determination, and any certified or 
recognized union or, to the extent practicable, other duly authorized 
representative of workers employed by such representatives of the 
domestic industry, of--</DELETED>
        <DELETED>    (1) the adjustment assistance, training, and other 
        benefits available under this part;</DELETED>
        <DELETED>    (2) the manner in which to file a petition and 
        apply for such benefits;</DELETED>
        <DELETED>    (3) the availability of assistance in filing such 
        petitions;</DELETED>
        <DELETED>    (4) notify the Governor of each State in which one 
        or more employers in such industry are located of the 
        Secretary's determination and the identity of the employers; 
        and</DELETED>
        <DELETED>    (5) upon request, provide any assistance that is 
        necessary to file a petition under subsection (a).</DELETED>
<DELETED>    (f) Benefit Information to Workers, Providers of 
Training.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall provide full 
        information to workers about the adjustment assistance, 
        training, and other benefits available under this part and 
        about the petition and application procedures, and the 
        appropriate filing dates, for such assistance, training and 
        services. The Secretary shall provide whatever assistance is 
        necessary to enable groups of workers to prepare petitions or 
        applications for program benefits. The Secretary shall make 
        every effort to insure that cooperating State agencies fully 
        comply with the agreements entered into under section 312(a) 
        and shall periodically review such compliance. The Secretary 
        shall inform the State Board for Vocational Education or 
        equivalent agency, the one-stop operators or one-stop partners 
        (as defined in section 101 of the Workforce Investment Act of 
        1998 (29 U.S.C. 2801)), and other public or private agencies, 
        institutions, and employers, as appropriate, of each 
        certification issued under subsection (d) and of projections, 
        if available, of the needs for training under as a result of 
        such certification.</DELETED>
        <DELETED>    (2) Notice by mail.--The Secretary shall provide 
        written notice through the mail of the benefits available under 
        this part to each worker whom the Secretary has reason to 
        believe is covered by a certification made under subsection 
        (d)--</DELETED>
                <DELETED>    (A) at the time such certification is 
                made, if the worker was partially or totally separated 
                from the adversely affected employment before such 
                certification; or</DELETED>
                <DELETED>    (B) at the time of the total or partial 
                separation of the worker from the adversely affected 
                employment, if subparagraph (A) does not 
                apply.</DELETED>
        <DELETED>    (3) Newspapers; website.--The Secretary shall 
        publish notice of the benefits available under this part to 
        workers covered by each certification made under subsection (d) 
        in newspapers of general circulation in the areas in which such 
        workers reside and shall make such information available on the 
        website of the Department of Labor.</DELETED>

<DELETED>SEC. 312. PROGRAM BENEFITS.</DELETED>

<DELETED>    (a) Climate Change Adjustment Assistance.--</DELETED>
        <DELETED>    (1) Eligibility.--Payment of climate change 
        adjustment assistance shall be made to an adversely affected 
        worker covered by a certification under section 311(b) who 
        files an application for such assistance for any week of 
        unemployment which begins on or after the date of such 
        certification, if the following conditions are met:</DELETED>
                <DELETED>    (A) Such worker's total or partial 
                separation before the worker's application under this 
                part occurred--</DELETED>
                        <DELETED>    (i) on or after the date, as 
                        specified in the certification under which the 
                        worker is covered, on which total or partial 
                        separation began or threatened to begin in the 
                        adversely affected employment;</DELETED>
                        <DELETED>    (ii) before the expiration of the 
                        2-year period beginning on the date on which 
                        the determination under section 311(d) was 
                        made; and</DELETED>
                        <DELETED>    (iii) before the termination date, 
                        if any, determined pursuant to section 
                        311(d)(3).</DELETED>
                <DELETED>    (B) Such worker had, in the 52-week period 
                ending with the week in which such total or partial 
                separation occurred, at least 26 weeks of full-time 
                employment or 1,040 hours of part time employment in 
                adversely affected employment, or, if data with respect 
                to weeks of employment are not available, equivalent 
                amounts of employment computed under regulations 
                prescribed by the Secretary. For the purposes of this 
                paragraph, any week in which such worker--</DELETED>
                        <DELETED>    (i) is on employer-authorized 
                        leave for purposes of vacation, sickness, 
                        injury, maternity, or inactive duty or active 
                        duty military service for training;</DELETED>
                        <DELETED>    (ii) does not work because of a 
                        disability that is compensable under a 
                        workmen's compensation law or plan of a State 
                        or the United States;</DELETED>
                        <DELETED>    (iii) had his employment 
                        interrupted in order to serve as a full-time 
                        representative of a labor organization in such 
                        firm; or</DELETED>
                        <DELETED>    (iv) is on call-up for purposes of 
                        active duty in a reserve status in the Armed 
                        Forces of the United States, provided such 
                        active duty is ``Federal service'' as defined 
                        in section 8521(a)(1) of title 5, United States 
                        Code,</DELETED>
                <DELETED>shall be treated as a week of 
                employment.</DELETED>
                <DELETED>    (C) Such worker is enrolled in a training 
                program approved by the Secretary under subsection 
                (b)(2).</DELETED>
        <DELETED>    (2) Ineligibility for certain other benefits.--An 
        adversely affected worker receiving a payment under this 
        section shall be ineligible to receive any other form of 
        unemployment insurance for the period in which such worker is 
        receiving climate change adjustment assistance under this 
        section.</DELETED>
        <DELETED>    (3) Revocation.--If--</DELETED>
                <DELETED>    (A) the Secretary determines that--
                </DELETED>
                        <DELETED>    (i) the adversely affected 
                        worker--</DELETED>
                                <DELETED>    (I) has failed to begin 
                                participation in the training program 
                                the enrollment in which meets the 
                                requirement of paragraph (1)(C); 
                                or</DELETED>
                                <DELETED>    (II) has ceased to 
                                participate in such training program 
                                before completing such training 
                                program; and</DELETED>
                        <DELETED>    (ii) there is no justifiable cause 
                        for such failure or cessation; or</DELETED>
                <DELETED>    (B) the certification made with respect to 
                such worker under section 311(d) is revoked under 
                paragraph (3) of such section,</DELETED>
        <DELETED>no adjustment assistance may be paid to the adversely 
        affected worker under this part for the week in which such 
        failure, cessation, or revocation occurred, or any succeeding 
        week, until the adversely affected worker begins or resumes 
        participation in a training program approved by the Secretary 
        under subsection (b)(2).</DELETED>
        <DELETED>    (4) Waivers of training requirements.--The 
        Secretary may issue a written statement to an adversely 
        affected worker waiving the requirement to be enrolled in 
        training described in subsection (b)(2) if the Secretary 
        determines that it is not feasible or appropriate for the 
        worker, because of 1 or more of the following 
        reasons:</DELETED>
                <DELETED>    (A) Recall.--The worker has been notified 
                that the worker will be recalled by the employer from 
                which the separation occurred.</DELETED>
                <DELETED>    (B) Marketable skills.--</DELETED>
                        <DELETED>    (i) In general.--The worker 
                        possesses marketable skills for suitable 
                        employment (as determined pursuant to an 
                        assessment of the worker, which may include the 
                        profiling system under section 303(j) of the 
                        Social Security Act (42 U.S.C. 503(j)), carried 
                        out in accordance with guidelines issued by the 
                        Secretary) and there is a reasonable 
                        expectation of employment at equivalent wages 
                        in the foreseeable future.</DELETED>
                        <DELETED>    (ii) Marketable skills defined.--
                        For purposes of clause (i), the term 
                        ``marketable skills'' may include the 
                        possession of a postgraduate degree from an 
                        institution of higher education (as defined in 
                        section 102 of the Higher Education Act of 1965 
                        (20 U.S.C. 1002)) or an equivalent institution, 
                        or the possession of an equivalent postgraduate 
                        certification in a specialized field.</DELETED>
                <DELETED>    (C) Retirement.--The worker is within 2 
                years of meeting all requirements for entitlement to 
                either--</DELETED>
                        <DELETED>    (i) old-age insurance benefits 
                        under title II of the Social Security Act (42 
                        U.S.C. 401 et seq.) (except for application 
                        therefor); or</DELETED>
                        <DELETED>    (ii) a private pension sponsored 
                        by an employer or labor organization.</DELETED>
                <DELETED>    (D) Health.--The worker is unable to 
                participate in training due to the health of the 
                worker, except that a waiver under this subparagraph 
                shall not be construed to exempt a worker from 
                requirements relating to the availability for work, 
                active search for work, or refusal to accept work under 
                Federal or State unemployment compensation 
                laws.</DELETED>
                <DELETED>    (E) Enrollment unavailable.--The first 
                available enrollment date for the training of the 
                worker is within 60 days after the date of the 
                determination made under this paragraph, or, if later, 
                there are extenuating circumstances for the delay in 
                enrollment, as determined pursuant to guidelines issued 
                by the Secretary.</DELETED>
                <DELETED>    (F) Training not available.--Training 
                described in subsection (b)(2) is not reasonably 
                available to the worker from either governmental 
                agencies or private sources (which may include area 
                career and technical education schools, as defined in 
                section 3 of the Carl D. Perkins Career and Technical 
                Education Act of 2006 (20 U.S.C. 2302), and employers), 
                no training that is suitable for the worker is 
                available at a reasonable cost, or no training funds 
                are available.</DELETED>
        <DELETED>    (5) Weekly amounts.--The climate change adjustment 
        assistance payable to an adversely affected worker for a week 
        of unemployment shall be an amount equal to 70 percent of the 
        average weekly wage of such worker, but in no case shall such 
        amount exceed the average weekly wage for all workers in the 
        State where the adversely affected worker resides.</DELETED>
        <DELETED>    (6) Maximum duration of benefits.--An eligible 
        worker may receive a climate change adjustment assistance under 
        this subsection for a period of not longer than 156 
        weeks.</DELETED>
<DELETED>    (b) Employment Services and Training.--</DELETED>
        <DELETED>    (1) Information and employment services.--The 
        Secretary shall make available, directly or through agreements 
        with the States under section 313(a) to adversely affected 
        workers covered by a certification under section 311(a) the 
        following information and employment services:</DELETED>
                <DELETED>    (A) Comprehensive and specialized 
                assessment of skill levels and service needs, including 
                through--</DELETED>
                        <DELETED>    (i) diagnostic testing and use of 
                        other assessment tools; and</DELETED>
                        <DELETED>    (ii) in-depth interviewing and 
                        evaluation to identify employment barriers and 
                        appropriate employment goals.</DELETED>
                <DELETED>    (B) Development of an individual 
                employment plan to identify employment goals and 
                objectives, and appropriate training to achieve those 
                goals and objectives.</DELETED>
                <DELETED>    (C) Information on training available in 
                local and regional areas, information on individual 
                counseling to determine which training is suitable 
                training, and information on how to apply for such 
                training.</DELETED>
                <DELETED>    (D) Information on training programs and 
                other services provided by a State pursuant to title I 
                of the Workforce Investment Act of 1998 (29 U.S.C. 2801 
                et seq.) and available in local and regional areas, 
                information on individual counseling to determine which 
                training is suitable training, and information on how 
                to apply for such training.</DELETED>
                <DELETED>    (E) Information on how to apply for 
                financial aid, including referring workers to 
                educational opportunity centers described in section 
                402F of the Higher Education Act of 1965 (20 U.S.C. 
                1070a-16), where applicable, and notifying workers that 
                the workers may request financial aid administrators at 
                institutions of higher education (as defined in section 
                102 of such Act (20 U.S.C. 1002)) to use the 
                administrators' discretion under section 479A of such 
                Act (20 U.S.C. 1087tt) to use current year income data, 
                rather than preceding year income data, for determining 
                the amount of need of the workers for Federal financial 
                assistance under title IV of such Act (20 U.S.C. 1070 
                et seq.).</DELETED>
                <DELETED>    (F) Short-term prevocational services, 
                including development of learning skills, 
                communications skills, interviewing skills, 
                punctuality, personal maintenance skills, and 
                professional conduct to prepare individuals for 
                employment or training.</DELETED>
                <DELETED>    (G) Individual career counseling, 
                including job search and placement counseling, during 
                the period in which the individual is receiving climate 
                change adjustment assistance or training under this 
                part, and after receiving such training for purposes of 
                job placement.</DELETED>
                <DELETED>    (H) Provision of employment statistics 
                information, including the provision of accurate 
                information relating to local, regional, and national 
                labor market areas, including--</DELETED>
                        <DELETED>    (i) job vacancy listings in such 
                        labor market areas;</DELETED>
                        <DELETED>    (ii) information on jobs skills 
                        necessary to obtain jobs identified in job 
                        vacancy listings described in subparagraph 
                        (A);</DELETED>
                        <DELETED>    (iii) information relating to 
                        local occupations that are in demand and 
                        earnings potential of such occupations; 
                        and</DELETED>
                        <DELETED>    (iv) skills requirements for local 
                        occupations described in subparagraph 
                        (C).</DELETED>
                <DELETED>    (I) Information relating to the 
                availability of supportive services, including services 
                relating to child care, transportation, dependent care, 
                housing assistance, and need-related payments that are 
                necessary to enable an individual to participate in 
                training.</DELETED>
        <DELETED>    (2) Training.--</DELETED>
                <DELETED>    (A) Approval of and payment for 
                training.--If the Secretary determines, with respect to 
                an adversely affected worker that--</DELETED>
                        <DELETED>    (i) there is no suitable 
                        employment (which may include technical and 
                        professional employment) available for an 
                        adversely affected worker;</DELETED>
                        <DELETED>    (ii) the worker would benefit from 
                        appropriate training;</DELETED>
                        <DELETED>    (iii) there is a reasonable 
                        expectation of employment following completion 
                        of such training;</DELETED>
                        <DELETED>    (iv) training approved by the 
                        Secretary is reasonably available to the worker 
                        from either governmental agencies or private 
                        sources (including area career and technical 
                        education schools, as defined in section 3 of 
                        the Carl D. Perkins Career and Technical 
                        Education Act of 2006 (20 U.S.C. 2302), and 
                        employers);</DELETED>
                        <DELETED>    (v) the worker is qualified to 
                        undertake and complete such training; 
                        and</DELETED>
                        <DELETED>    (vi) such training is suitable for 
                        the worker and available at a reasonable 
                        cost,</DELETED>
                <DELETED>the Secretary shall approve such training for 
                the worker. Upon such approval, the worker shall be 
                entitled to have payment of the costs of such training 
                (subject to the limitations imposed by this section) 
                paid on the worker's behalf by the Secretary directly 
                or through a voucher system.</DELETED>
                <DELETED>    (B) Distribution.--The Secretary shall 
                establish procedures for the distribution of the funds 
                to States to carry out the training programs approved 
                under this paragraph, and shall make an initial 
                distribution of the funds made available as soon as 
                practicable after the beginning of each fiscal 
                year.</DELETED>
                <DELETED>    (C) Additional rules regarding approval of 
                and payment for training.--</DELETED>
                        <DELETED>    (i) For purposes of applying 
                        subparagraph (A)(iii), a reasonable expectation 
                        of employment does not require that employment 
                        opportunities for a worker be available, or 
                        offered, immediately upon the completion of 
                        training approved under such 
                        subparagraph.</DELETED>
                        <DELETED>    (ii) If the costs of training an 
                        adversely affected worker are paid by the 
                        Secretary under subparagraph (A), no other 
                        payment for such costs may be made under any 
                        other provision of Federal law. No payment may 
                        be made under subparagraph (A) of the costs of 
                        training an adversely affected worker or an 
                        adversely affected incumbent worker if such 
                        costs--</DELETED>
                                <DELETED>    (I) have already been paid 
                                under any other provision of Federal 
                                law; or</DELETED>
                                <DELETED>    (II) are reimbursable 
                                under any other provision of Federal 
                                law and a portion of such costs have 
                                already been paid under such other 
                                provision of Federal law.</DELETED>
                        <DELETED>The provisions of this clause shall 
                        not apply to, or take into account, any funds 
                        provided under any other provision of Federal 
                        law which are used for any purpose other than 
                        the direct payment of the costs incurred in 
                        training a particular adversely affected 
                        worker, even if such use has the effect of 
                        indirectly paying or reducing any portion of 
                        the costs involved in training the adversely 
                        affected worker.</DELETED>
                <DELETED>    (D) Training programs.--The training 
                programs that may be approved under subparagraph (A) 
                include--</DELETED>
                        <DELETED>    (i) employer-based training, 
                        including--</DELETED>
                                <DELETED>    (I) on-the-job training if 
                                approved by the Secretary under 
                                subsection (c); and</DELETED>
                                <DELETED>    (II) joint labor-
                                management apprenticeship 
                                programs;</DELETED>
                        <DELETED>    (ii) any training program provided 
                        by a State pursuant to title I of the Workforce 
                        Investment Act of 1998 (29 U.S.C. 2801 et 
                        seq.);</DELETED>
                        <DELETED>    (iii) any programs in career and 
                        technical education described in section 3(5) 
                        of the Carl D. Perkins Career and Technical 
                        Education Act of 2006 (20 U.S.C. 
                        2302(5));</DELETED>
                        <DELETED>    (iv) any program of remedial 
                        education;</DELETED>
                        <DELETED>    (v) any program of prerequisite 
                        education or coursework required to enroll in 
                        training that may be approved under this 
                        paragraph;</DELETED>
                        <DELETED>    (vi) any training program for 
                        which all, or any portion, of the costs of 
                        training the worker are paid--</DELETED>
                                <DELETED>    (I) under any Federal or 
                                State program other than this part; 
                                or</DELETED>
                                <DELETED>    (II) from any source other 
                                than this part;</DELETED>
                        <DELETED>    (vii) any training program or 
                        coursework at an accredited institution of 
                        higher education (described in section 102 of 
                        the Higher Education Act of 1965 (20 U.S.C. 
                        1002)), including a training program or 
                        coursework for the purpose of--</DELETED>
                                <DELETED>    (I) obtaining a degree or 
                                certification; or</DELETED>
                                <DELETED>    (II) completing a degree 
                                or certification that the worker had 
                                previously begun at an accredited 
                                institution of higher education; 
                                and</DELETED>
                        <DELETED>    (viii) any other training program 
                        approved by the Secretary.</DELETED>
        <DELETED>    (3) Supplemental assistance.--The Secretary may, 
        as appropriate, authorize supplemental assistance that is 
        necessary to defray reasonable transportation and subsistence 
        expenses for separate maintenance in a case in which training 
        for a worker is provided in a facility that is not within 
        commuting distance of the regular place of residence of the 
        worker.</DELETED>
<DELETED>    (c) On-The-Job Training Requirements.--</DELETED>
        <DELETED>    (1) In general.--The Secretary may approve on-the-
        job training for any adversely affected worker if--</DELETED>
                <DELETED>    (A) the Secretary determines that on-the-
                job training--</DELETED>
                        <DELETED>    (i) can reasonably be expected to 
                        lead to suitable employment with the employer 
                        offering the on-the-job training;</DELETED>
                        <DELETED>    (ii) is compatible with the skills 
                        of the worker;</DELETED>
                        <DELETED>    (iii) includes a curriculum 
                        through which the worker will gain the 
                        knowledge or skills to become proficient in the 
                        job for which the worker is being trained; 
                        and</DELETED>
                        <DELETED>    (iv) can be measured by benchmarks 
                        that indicate that the worker is gaining such 
                        knowledge or skills; and</DELETED>
                <DELETED>    (B) the State determines that the on-the-
                job training program meets the requirements of clauses 
                (iii) and (iv) of subparagraph (A).</DELETED>
        <DELETED>    (2) Monthly payments.--The Secretary shall pay the 
        costs of on-the-job training approved under paragraph (1) in 
        monthly installments.</DELETED>
        <DELETED>    (3) Contracts for on-the-job training.--</DELETED>
                <DELETED>    (A) In general.--The Secretary shall 
                ensure, in entering into a contract with an employer to 
                provide on-the-job training to a worker under this 
                subsection, that the skill requirements of the job for 
                which the worker is being trained, the academic and 
                occupational skill level of the worker, and the work 
                experience of the worker are taken into 
                consideration.</DELETED>
                <DELETED>    (B) Term of contract.--Training under any 
                such contract shall be limited to the period of time 
                required for the worker receiving on-the-job training 
                to become proficient in the job for which the worker is 
                being trained, but may not exceed 156 weeks in any 
                case.</DELETED>
        <DELETED>    (4) Exclusion of certain employers.--The Secretary 
        shall not enter into a contract for on-the-job training with an 
        employer that exhibits a pattern of failing to provide workers 
        receiving on-the-job training from the employer with--
        </DELETED>
                <DELETED>    (A) continued, long-term employment as 
                regular employees; and</DELETED>
                <DELETED>    (B) wages, benefits, and working 
                conditions that are equivalent to the wages, benefits, 
                and working conditions provided to regular employees 
                who have worked a similar period of time and are doing 
                the same type of work as workers receiving on-the-job 
                training from the employer.</DELETED>
<DELETED>    (d) Administrative and Employment Services Funding.--
</DELETED>
        <DELETED>    (1) Administrative funding.--In addition to any 
        funds made available to a State to carry out this section for a 
        fiscal year, the State shall receive for the fiscal year a 
        payment in an amount that is equal to 15 percent of the amount 
        of such funds and shall--</DELETED>
                <DELETED>    (A) use not more than \2/3\ of such 
                payment for the administration of the climate change 
                adjustment assistance for workers program under this 
                part, including for--</DELETED>
                        <DELETED>    (i) processing waivers of training 
                        requirements under subsection (a)(4); 
                        and</DELETED>
                        <DELETED>    (ii) collecting, validating, and 
                        reporting data required under this part; 
                        and</DELETED>
                <DELETED>    (B) use not less than \1/3\ of such 
                payment for information and employment services under 
                subsection (b)(1).</DELETED>
        <DELETED>    (2) Employment services funding.--</DELETED>
                <DELETED>    (A) In general.--In addition to any funds 
                made available to a State to carry out subsection 
                (b)(2) and the payment under paragraph (1) for a fiscal 
                year, the Secretary shall provide to the State for the 
                fiscal year a reasonable payment for the purpose of 
                providing employment and services under subsection 
                (b)(1).</DELETED>
                <DELETED>    (B) Voluntary return of funds.--A State 
                that receives a payment under subparagraph (A) may 
                decline or otherwise return such payment to the 
                Secretary.</DELETED>
<DELETED>    (e) Job Search Assistance.--The Secretary of Labor may 
provide adversely affected workers one-time job search assistance in 
accordance with regulations prescribed by the Secretary. Any job search 
assistance provided shall be available only under the following 
circumstances and conditions:</DELETED>
        <DELETED>    (1) The worker is no longer eligible for the 
        climate change adjustment assistance under subsection (a) and 
        has completed the training program required by subsection 
        (b)(1)(E).</DELETED>
        <DELETED>    (2) The Secretary determines that the worker 
        cannot reasonably be expected to secure suitable employment in 
        the commuting area in which the worker resides.</DELETED>
        <DELETED>    (3) Assistance granted shall provide reimbursement 
        to the worker of all necessary job search expenses as 
        prescribed by the Secretary in regulations. Such reimbursement 
        under this subsection may not exceed $1,500 for any 
        worker.</DELETED>
<DELETED>    (f) Relocation Assistance Authorized.--</DELETED>
        <DELETED>    (1) In general.--Any adversely affected worker 
        covered by a certification issued under section 311 may file an 
        application for relocation assistance with the Secretary, and 
        the Secretary may grant the relocation assistance, subject to 
        the terms and conditions of this subsection.</DELETED>
        <DELETED>    (2) Conditions for granting assistance.--
        Relocation assistance may be granted if all of the following 
        terms and conditions are met:</DELETED>
                <DELETED>    (A) Assist an adversely affected worker.--
                The relocation assistance will assist an adversely 
                affected worker in relocating within the United 
                States.</DELETED>
                <DELETED>    (B) Local employment not available.--The 
                Secretary determines that the worker cannot reasonably 
                be expected to secure suitable employment in the 
                commuting area in which the worker resides.</DELETED>
                <DELETED>    (C) Total separation.--The worker is 
                totally separated from employment at the time 
                relocation commences.</DELETED>
                <DELETED>    (D) Suitable employment obtained.--The 
                worker--</DELETED>
                        <DELETED>    (i) has obtained suitable 
                        employment affording a reasonable expectation 
                        of long-term duration in the area in which the 
                        worker wishes to relocate; or</DELETED>
                        <DELETED>    (ii) has obtained a bona fide 
                        offer of such employment.</DELETED>
                <DELETED>    (E) Application.--The worker filed an 
                application with the Secretary at such time and in such 
                manner as the Secretary shall specify by 
                regulation.</DELETED>
        <DELETED>    (3) Amount of assistance.--Relocation assistance 
        granted to a worker under paragraph (1) includes--</DELETED>
                <DELETED>    (A) all reasonable and necessary expenses 
                (including, subsistence and transportation expenses at 
                levels not exceeding amounts prescribed by the 
                Secretary in regulations) incurred in transporting the 
                worker, the worker's family, and household effects; 
                and</DELETED>
                <DELETED>    (B) a lump sum equivalent to 3 times the 
                worker's average weekly wage, up to a maximum payment 
                of $1,500.</DELETED>
        <DELETED>    (4) Limitations.--Relocation assistance may not be 
        granted to a worker unless--</DELETED>
                <DELETED>    (A) the relocation occurs within 182 days 
                after the filing of the application for relocation 
                assistance; or</DELETED>
                <DELETED>    (B) the relocation occurs within 182 days 
                after the conclusion of training, if the worker entered 
                a training program approved by the Secretary under 
                subsection (b)(2).</DELETED>
<DELETED>    (g) Health Insurance Continuation.--Not later than 1 year 
after the date of enactment of this Act, the Secretary of Labor shall 
prescribe regulations to provide, for the period in which an adversely 
affected worker is participating in a training program described in 
subsection (b)(2), 80 percent of the monthly premium of any health 
insurance coverage that an adversely affected worker was receiving from 
such worker's employer prior to the separation from employment 
described in section 311(b), to be paid to any health care insurance 
plan designated by the adversely affected worker receiving assistance 
under this section.</DELETED>

<DELETED>SEC. 313. GENERAL PROVISIONS.</DELETED>

<DELETED>    (a) Agreements With States.--</DELETED>
        <DELETED>    (1) In general.--The Secretary is authorized on 
        behalf of the United States to enter into an agreement with any 
        State, or with any State agency (referred to in this section as 
        ``cooperating States'' and ``cooperating State agencies'' 
        respectively). Under such an agreement, the cooperating State 
        or cooperating State agency--</DELETED>
                <DELETED>    (A) as agent of the United States, shall 
                receive applications for, and shall provide, payments 
                on the basis provided in this part;</DELETED>
                <DELETED>    (B) in accordance with paragraph (6), 
                shall make available to adversely affected workers 
                covered by a certification under section 311(d) the 
                employment services described in section 
                312(b)(1);</DELETED>
                <DELETED>    (C) shall make any certifications required 
                under section 311(d); and</DELETED>
                <DELETED>    (D) shall otherwise cooperate with the 
                Secretary and with other State and Federal agencies in 
                providing payments and services under this 
                part.</DELETED>
        <DELETED>Each agreement under this section shall provide the 
        terms and conditions upon which the agreement may be amended, 
        suspended, or terminated.</DELETED>
        <DELETED>    (2) Form and manner of data.--Each agreement under 
        this section shall--</DELETED>
                <DELETED>    (A) provide the Secretary with the 
                authority to collect any data the Secretary determines 
                necessary to meet the requirements of this part; 
                and</DELETED>
                <DELETED>    (B) specify the form and manner in which 
                any such data requested by the Secretary shall be 
                reported.</DELETED>
        <DELETED>    (3) Relationship to unemployment insurance.--Each 
        agreement under this section shall provide that an adversely 
        affected worker receiving climate change adjustment assistance 
        under this part shall not be eligible for unemployment 
        insurance otherwise payable to such worker under the laws of 
        the State.</DELETED>
        <DELETED>    (4) Review.--A determination by a cooperating 
        State agency with respect to entitlement to program benefits 
        under an agreement is subject to review in the same manner and 
        to the same extent as determinations under the applicable State 
        law and only in that manner and to that extent.</DELETED>
        <DELETED>    (5) Coordination.--Any agreement entered into 
        under this section shall provide for the coordination of the 
        administration of the provisions for employment services, 
        training, and supplemental assistance under section 312 and 
        under title I of the Workforce Investment Act of 1998 (29 
        U.S.C. 2801 et seq.) upon such terms and conditions as are 
        established by the Secretary in consultation with the States 
        and set forth in such agreement. Any agency of the State 
        jointly administering such provisions under such agreement 
        shall be considered to be a cooperating State agency for 
        purposes of this part.</DELETED>
        <DELETED>    (6) Responsibilities of cooperating agencies.--
        Each cooperating State agency shall, in carrying out paragraph 
        (1)(B)--</DELETED>
                <DELETED>    (A) advise each worker who applies for 
                unemployment insurance of the benefits under this part 
                and the procedures and deadlines for applying for such 
                benefits;</DELETED>
                <DELETED>    (B) facilitate the early filing of 
                petitions under section 311(a) for any workers that the 
                agency considers are likely to be eligible for benefits 
                under this part;</DELETED>
                <DELETED>    (C) advise each adversely affected worker 
                to apply for training under section 312(b) before, or 
                at the same time, the worker applies for climate change 
                adjustment assistance under section 312(a);</DELETED>
                <DELETED>    (D) perform outreach to, intake of, and 
                orientation for adversely affected workers and 
                adversely affected incumbent workers covered by a 
                certification under section 312(a) with respect to 
                assistance and benefits available under this 
                part;</DELETED>
                <DELETED>    (E) make employment services described in 
                section 312(b)(1) available to adversely affected 
                workers and adversely affected incumbent workers 
                covered by a certification under section 311(d) and, if 
                funds provided to carry out this part are insufficient 
                to make such services available, make arrangements to 
                make such services available through other Federal 
                programs; and</DELETED>
                <DELETED>    (F) provide the benefits and reemployment 
                services under this part in a manner that is necessary 
                for the proper and efficient administration of this 
                part, including the use of state agency personnel 
                employed in accordance with a merit system of personnel 
                administration standards, including--</DELETED>
                        <DELETED>    (i) making determinations of 
                        eligibility for, and payment of, climate change 
                        readjustment assistance and health care benefit 
                        replacement amounts;</DELETED>
                        <DELETED>    (ii) developing recommendations 
                        regarding payments as a bridge to retirement 
                        and lump sum payments to pension plans in 
                        accordance with this subsection; and</DELETED>
                        <DELETED>    (iii) the provision of 
                        reemployment services to eligible workers, 
                        including referral to training 
                        services.</DELETED>
        <DELETED>    (7) Submission of certain information.--In order 
        to promote the coordination of workforce investment activities 
        in each State with activities carried out under this part, any 
        agreement entered into under this section shall provide that 
        the State shall submit to the Secretary, in such form as the 
        Secretary may require, the description and information 
        described in paragraphs (8) and (14) of section 112(b) of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2822(b)) and a 
        description of the State's rapid response activities under 
        section 134(a)(2)(A) of that Act (29 U.S.C. 
        2864(a)(2)(A)).</DELETED>
        <DELETED>    (8) Control measures.--</DELETED>
                <DELETED>    (A) In general.--The Secretary shall 
                require each cooperating State and cooperating State 
                agency to implement effective control measures and to 
                effectively oversee the operation and administration of 
                the climate change adjustment assistance program under 
                this part, including by means of monitoring the 
                operation of control measures to improve the accuracy 
                and timeliness of the data being collected and 
                reported.</DELETED>
                <DELETED>    (B) Definition.--For purposes of 
                subparagraph (A), the term ``control measures'' means 
                measures that--</DELETED>
                        <DELETED>    (i) are internal to a system used 
                        by a State to collect data; and</DELETED>
                        <DELETED>    (ii) are designed to ensure the 
                        accuracy and verifiability of such 
                        data.</DELETED>
        <DELETED>    (9) Data reporting.--</DELETED>
                <DELETED>    (A) In general.--Any agreement entered 
                into under this section shall require the cooperating 
                State or cooperating State agency to report to the 
                Secretary on a quarterly basis comprehensive 
                performance accountability data, to consist of--
                </DELETED>
                        <DELETED>    (i) the core indicators of 
                        performance described in subparagraph 
                        (B)(i);</DELETED>
                        <DELETED>    (ii) the additional indicators of 
                        performance described in subparagraph (B)(ii), 
                        if any; and</DELETED>
                        <DELETED>    (iii) a description of efforts 
                        made to improve outcomes for workers under the 
                        climate change adjustment assistance 
                        program.</DELETED>
                <DELETED>    (B) Core indicators described.--</DELETED>
                        <DELETED>    (i) In general.--The core 
                        indicators of performance described in this 
                        subparagraph are--</DELETED>
                                <DELETED>    (I) the percentage of 
                                workers receiving benefits under this 
                                part who are employed during the second 
                                calendar quarter following the calendar 
                                quarter in which the workers cease 
                                receiving such benefits;</DELETED>
                                <DELETED>    (II) the percentage of 
                                such workers who are employed in each 
                                of the third and fourth calendar 
                                quarters following the calendar quarter 
                                in which the workers cease receiving 
                                such benefits; and</DELETED>
                                <DELETED>    (III) the earnings of such 
                                workers in each of the third and fourth 
                                calendar quarters following the 
                                calendar quarter in which the workers 
                                cease receiving such 
                                benefits.</DELETED>
                        <DELETED>    (ii) Additional indicators.--The 
                        Secretary and a cooperating State or 
                        cooperating State agency may agree upon 
                        additional indicators of performance for the 
                        climate change adjustment assistance program 
                        under this part, as appropriate.</DELETED>
                <DELETED>    (C) Standards with respect to reliability 
                of data.--In preparing the quarterly report required by 
                subparagraph (A), each cooperating State or cooperating 
                State agency shall establish procedures that are 
                consistent with guidelines to be issued by the 
                Secretary to ensure that the data reported are valid 
                and reliable.</DELETED>
        <DELETED>    (10) Verification of eligibility for program 
        benefits.--</DELETED>
                <DELETED>    (A) In general.--An agreement under this 
                section shall provide that the State shall periodically 
                redetermine that a worker receiving benefits under this 
                part who is not a citizen or national of the United 
                States remains in a satisfactory immigration status. 
                Once satisfactory immigration status has been initially 
                verified through the immigration status verification 
                system described in section 1137(d) of the Social 
                Security Act (42 U.S.C. 1320b-7(d)) for purposes of 
                establishing a worker's eligibility for unemployment 
                compensation, the State shall reverify the worker's 
                immigration status if the documentation provided during 
                initial verification will expire during the period in 
                which that worker is potentially eligible to receive 
                benefits under this part. The State shall conduct such 
                redetermination in a timely manner, utilizing the 
                immigration status verification system described in 
                section 1137(d) of the Social Security Act (42 U.S.C. 
                1320b-7(d)).</DELETED>
                <DELETED>    (B) Procedures.--The Secretary shall 
                establish procedures to ensure the uniform application 
                by the States of the requirements of this 
                paragraph.</DELETED>
<DELETED>    (b) Administration Absent State Agreement.--</DELETED>
        <DELETED>    (1) In any State where there is no agreement in 
        force between a State or its agency under subsection (a), the 
        Secretary shall promulgate regulations for the performance of 
        all necessary functions under section 312, including provision 
        for a fair hearing for any worker whose application for 
        payments is denied.</DELETED>
        <DELETED>    (2) A final determination under paragraph (1) with 
        respect to entitlement to program benefits under section 312 is 
        subject to review by the courts in the same manner and to the 
        same extent as is provided by section 205(g) of the Social 
        Security Act (42 U.S.C. 405(g)).</DELETED>
<DELETED>    (c) Prohibition on Contracting With Private Entities.--
Neither the Secretary nor a State may contract with any private for-
profit or nonprofit entity for the administration of the climate change 
adjustment assistance program under this part.</DELETED>
<DELETED>    (d) Payment to the States.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall from time to 
        time certify to the Secretary of the Treasury for payment to 
        each cooperating State the sums necessary to enable such State 
        as agent of the United States to make payments provided for by 
        this part.</DELETED>
        <DELETED>    (2) Restriction.--All money paid a State under 
        this subsection shall be used solely for the purposes for which 
        it is paid; and money so paid which is not used for such 
        purposes shall be returned, at the time specified in the 
        agreement under this section, to the Secretary of the 
        Treasury.</DELETED>
        <DELETED>    (3) Bonds.--Any agreement under this section may 
        require any officer or employee of the State certifying 
        payments or disbursing funds under the agreement or otherwise 
        participating in the performance of the agreement, to give a 
        surety bond to the United States in such amount as the 
        Secretary may deem necessary, and may provide for the payment 
        of the cost of such bond from funds for carrying out the 
        purposes of this part.</DELETED>
<DELETED>    (e) Labor Standards.--</DELETED>
        <DELETED>    (1) Prohibition on displacement.--An individual in 
        an apprenticeship program or on-the-job training program under 
        this part shall not displace (including a partial displacement, 
        such as a reduction in the hours of non-overtime work, wages, 
        or employment benefits) any employed employee.</DELETED>
        <DELETED>    (2) Prohibition on impairment of contracts.--An 
        apprenticeship program or on-the-job raining program under this 
        Act shall not impair an existing contract for services or 
        collective bargaining agreement, and no such activity that 
        would be inconsistent with the terms of a collective bargaining 
        agreement shall be undertaken without the written concurrence 
        of the labor organization and employer concerned.</DELETED>
        <DELETED>    (3) Additional standards.--The Secretary, or a 
        State acting under an agreement described in subsection (a) may 
        pay the costs of on-the-job training, notwithstanding any other 
        provision of this section, only if--</DELETED>
                <DELETED>    (A) in the case of training which would be 
                inconsistent with the terms of a collective bargaining 
                agreement, the written concurrence of the labor 
                organization concerned has been obtained;</DELETED>
                <DELETED>    (B) the job for which such adversely 
                affected worker is being trained is not being created 
                in a promotional line that will infringe in any way 
                upon the promotional opportunities of currently 
                employed individuals;</DELETED>
                <DELETED>    (C) such training is not for the same 
                occupation from which the worker was separated and with 
                respect to which such worker's group was certified 
                pursuant to section 311(d);</DELETED>
                <DELETED>    (D) the employer is provided reimbursement 
                of not more than 50 percent of the wage rate of the 
                participant, for the cost of providing the training and 
                additional supervision related to the training; 
                and</DELETED>
                <DELETED>    (E) the employer has not received payment 
                under with respect to any other on-the-job training 
                provided by such employer which failed to meet the 
                requirements of subparagraphs (A) through 
                (D).</DELETED>
<DELETED>    (f) Definitions.--As used in this part the following 
definitions apply:</DELETED>
        <DELETED>    (1) The term ``adversely affected employment'' 
        means employment at an employment site, if workers at such site 
        are eligible to apply for adjustment assistance under this 
        part.</DELETED>
        <DELETED>    (2) The term ``adversely affected worker'' means 
        an individual who has been totally or partially separated from 
        employment and is eligible to apply for adjustment assistance 
        under this part.</DELETED>
        <DELETED>    (3) The term ``average weekly wage'' means \1/13\ 
        of the total wages paid to an individual in the quarter in 
        which the individual's total wages were highest among the first 
        4 of the last 5 completed calendar quarters immediately before 
        the quarter in which occurs the week with respect to which the 
        computation is made. Such week shall be the week in which total 
        separation occurred, or, in cases where partial separation is 
        claimed, an appropriate week, as defined in regulations 
        prescribed by the Secretary.</DELETED>
        <DELETED>    (4) The term ``average weekly hours'' means the 
        average hours worked by the individual (excluding overtime) in 
        the employment from which he has been or claims to have been 
        separated in the 52 weeks (excluding weeks during which the 
        individual was sick or on vacation) preceding the week 
        specified in the last sentence of paragraph (4).</DELETED>
        <DELETED>    (5) The term ``benefit period'' means, with 
        respect to an individual--</DELETED>
                <DELETED>    (A) the benefit year and any ensuing 
                period, as determined under applicable State law, 
                during which the individual is eligible for regular 
                compensation, additional compensation, or extended 
                compensation; or</DELETED>
                <DELETED>    (B) the equivalent to such a benefit year 
                or ensuing period provided for under the applicable 
                Federal unemployment insurance law.</DELETED>
        <DELETED>    (6) The term ``consumer goods manufacturing'' 
        means the electrical equipment, appliance, and component 
        manufacturing industry and transportation equipment 
        manufacturing.</DELETED>
        <DELETED>    (7) The term ``employment site'' means a single 
        facility or site of employment.</DELETED>
        <DELETED>    (8) The term ``energy-intensive manufacturing 
        industries'' means all industrial sectors, entities, or groups 
        of entities that meet the energy or greenhouse gas intensity 
        criteria in section 763(b)(2)(A) of the Clean Air Act based on 
        the most recent data available.</DELETED>
        <DELETED>    (9) The term ``energy producing and transforming 
        industries'' means the coal mining industry, oil and gas 
        extraction, electricity power generation, transmission and 
        distribution, and natural gas distribution.</DELETED>
        <DELETED>    (10) The term ``on-the-job training'' means 
        training provided by an employer to an individual who is 
        employed by the employer.</DELETED>
        <DELETED>    (11) The terms ``partial separation'' and 
        ``partially separated'' refer, with respect to an individual 
        who has not been totally separated, that such individual has 
        had--</DELETED>
                <DELETED>    (A) his or her hours of work reduced to 80 
                percent or less of his average weekly hours in 
                adversely affected employment; and</DELETED>
                <DELETED>    (B) his or her wages reduced to 80 percent 
                or less of his average weekly wage in such adversely 
                affected employment.</DELETED>
        <DELETED>    (12) The term ``public agency'' means a department 
        or agency of a State or political subdivision of a State or of 
        the Federal Government.</DELETED>
        <DELETED>    (13) The term ``Secretary'' means the Secretary of 
        Labor.</DELETED>
        <DELETED>    (14) The term ``service workers'' means workers 
        supplying support or auxiliary services to an employment 
        site.</DELETED>
        <DELETED>    (15) The term ``State'' includes the District of 
        Columbia and the Commonwealth of Puerto Rico: and the term 
        ``United States'' when used in the geographical sense includes 
        such Commonwealth.</DELETED>
        <DELETED>    (16) The term ``State agency'' means the agency of 
        the State which administers the State law.</DELETED>
        <DELETED>    (17) The term ``State law'' means the unemployment 
        insurance law of the State approved by the Secretary of Labor 
        under section 3304 of the Internal Revenue Code of 
        1986.</DELETED>
        <DELETED>    (18) The terms ``total separation'' and ``totally 
        separated'' refer to the layoff or severance of an individual 
        from employment with an employer in which adversely affected 
        employment exists.</DELETED>
        <DELETED>    (19) The term ``unemployment insurance'' means the 
        unemployment compensation payable to an individual under any 
        State law or Federal unemployment compensation law, including 
        chapter 85 of title 5, United States Code, and the Railroad 
        Unemployment Insurance Act (45 U.S.C. 351 et seq.). The terms 
        ``regular compensation'', ``additional compensation'', and 
        ``extended compensation'' have the same respective meanings 
        that are given them in section 205(2), (3), and (4) of the 
        Federal-State Extended Unemployment Compensation Act of 1970 
        (26 U.S.C. 3304 note; Public Law 91-373).</DELETED>
        <DELETED>    (20) The term ``week'' means a week as defined in 
        the applicable State law.</DELETED>
        <DELETED>    (21) The term ``week of unemployment'' means a 
        week of total, part-total, or partial unemployment as 
        determined under the applicable State law or Federal 
        unemployment insurance law.</DELETED>
<DELETED>    (g) Special Rule With Respect to Military Service.--
</DELETED>
        <DELETED>    (1) In general.--Notwithstanding any other 
        provision of this part, the Secretary may waive any requirement 
        of this part that the Secretary determines is necessary to 
        ensure that an adversely affected worker who is a member of a 
        reserve component of the Armed Forces and serves a period of 
        duty described in paragraph (2) is eligible to receive climate 
        change adjustment assistance, training, and other benefits 
        under this part in the same manner and to the same extent as if 
        the worker had not served the period of duty.</DELETED>
        <DELETED>    (2) Period of duty described.--An adversely 
        affected worker serves a period of duty described in this 
        paragraph if, before completing training under this part, the 
        worker--</DELETED>
                <DELETED>    (A) serves on active duty for a period of 
                more than 30 days under a call or order to active duty 
                of more than 30 days; or</DELETED>
                <DELETED>    (B) in the case of a member of the Army 
                National Guard of the United States or Air National 
                Guard of the United States, performs full-time National 
                Guard duty under section 502(f) of title 32, United 
                States Code, for 30 consecutive days or more when 
                authorized by the President or the Secretary of Defense 
                for the purpose of responding to a national emergency 
                declared by the President and supported by Federal 
                funds.</DELETED>
<DELETED>    (h) Fraud and Recovery of Overpayments.--</DELETED>
        <DELETED>    (1) Recovery of payments to which an individual 
        was not entitled.--If the Secretary or a court of competent 
        jurisdiction determines that any person has received any 
        payment under this part to which the individual was not 
        entitled, such individual shall be liable to repay such amount 
        to the Secretary, as the case may be, except that the Secretary 
        shall waive such repayment if such agency or the Secretary 
        determines that--</DELETED>
                <DELETED>    (A) the payment was made without fault on 
                the part of such individual; and</DELETED>
                <DELETED>    (B) requiring such repayment would cause a 
                financial hardship for the individual (or the 
                individual's household, if applicable) when taking into 
                consideration the income and resources reasonably 
                available to the individual (or household) and other 
                ordinary living expenses of the individual (or 
                household).</DELETED>
        <DELETED>    (2) Means of recovery.--Unless an overpayment is 
        otherwise recovered, or waived under paragraph (1), the 
        Secretary shall recover the overpayment by deductions from any 
        sums payable to such person under this part, under any Federal 
        unemployment compensation law or other Federal law administered 
        by the Secretary which provides for the payment of assistance 
        with respect to unemployment. Any amount recovered under this 
        section shall be returned to the Treasury of the United 
        States.</DELETED>
        <DELETED>    (3) Penalties for fraud.--Any person who--
        </DELETED>
                <DELETED>    (A) makes a false statement of a material 
                fact knowing it to be false, or knowingly fails to 
                disclose a material fact, for the purpose of obtaining 
                or increasing for that person or for any other person 
                any payment authorized to be furnished under this part; 
                or</DELETED>
                <DELETED>    (B) makes a false statement of a material 
                fact knowing it to be false, or knowingly fails to 
                disclose a material fact, when providing information to 
                the Secretary during an investigation of a petition 
                under section 311(c);</DELETED>
<DELETED>shall be imprisoned for not more than one year, or fined under 
title 18, United States Code, or both, and be ineligible for any 
further payments under this part.</DELETED>
<DELETED>    (i) Regulations.--The Secretary shall prescribe such 
regulations as may be necessary to carry out the provisions of this 
part.</DELETED>
<DELETED>    (j) Study on Older Workers.--The Secretary shall conduct a 
study examine the circumstances of older adversely affected workers and 
the ability of such workers to access their retirement benefits. The 
Secretary shall transmit a report to Congress not later than 2 years 
after the date of enactment of this Act on the findings of the study 
and the Secretary's recommendations on how to ensure that adversely 
affected workers within 2 years of retirement are able to access their 
retirement benefits.</DELETED>

  <DELETED>Subtitle B--International Climate Change Programs</DELETED>

<DELETED>SEC. 321. STRATEGIC INTERAGENCY BOARD ON INTERNATIONAL CLIMATE 
              INVESTMENT.</DELETED>

<DELETED>    (a) Establishment.--</DELETED>
        <DELETED>    (1) In general.--Not later than 90 days after the 
        date of the enactment of this Act, the President shall 
        establish the ``Strategic Interagency Board on International 
        Climate Investment'' (referred to in this subtitle as the 
        ``Board'').</DELETED>
        <DELETED>    (2) Composition.--The Board shall be composed of--
        </DELETED>
                <DELETED>    (A) the Secretary of State;</DELETED>
                <DELETED>    (B) the Administrator of United States 
                Agency for International Development;</DELETED>
                <DELETED>    (C) the Secretary of Energy;</DELETED>
                <DELETED>    (D) the Secretary of the 
                Treasury;</DELETED>
                <DELETED>    (E) the Secretary of Commerce;</DELETED>
                <DELETED>    (F) the Secretary of 
                Agriculture;</DELETED>
                <DELETED>    (G) the Administrator; and</DELETED>
                <DELETED>    (H) such other relevant officials as the 
                President may designate.</DELETED>
<DELETED>    (b) Duties.--The duties of the Board shall include 
assessing, monitoring, and evaluating the progress and contributions of 
relevant departments and agencies of the Federal Government in 
supporting financing for international climate change 
activities.</DELETED>

<DELETED>SEC. 322. EMISSION REDUCTIONS FROM REDUCED 
              DEFORESTATION.</DELETED>

<DELETED>    Title VII of the Clean Air Act (as amended by section 101 
of division B) is amended by adding at the end the following:</DELETED>

     <DELETED>``PART E--SUPPLEMENTAL EMISSION REDUCTIONS</DELETED>

<DELETED>``SEC. 751. DEFINITIONS.</DELETED>

<DELETED>    ``In this part:</DELETED>
        <DELETED>    ``(1) Administrator.--The term `Administrator' 
        means the Administrator of the United States Agency for 
        International Development.</DELETED>
        <DELETED>    ``(2) Deforestation.--The term `deforestation' 
        means a change in land use from a forest to any other land 
        use.</DELETED>
        <DELETED>    ``(3) Degradation.--The term `degradation', with 
        respect to a forest, is any reduction in the carbon stock of a 
        forest due to the impact of human land-use 
        activities.</DELETED>
        <DELETED>    ``(4) Emission reductions.--The term `emission 
        reductions' means greenhouse gas emission reductions achieved 
        from reduced or avoided deforestation under this 
        title.</DELETED>
        <DELETED>    ``(5) 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.</DELETED>

<DELETED>``SEC. 752. PURPOSES.</DELETED>

<DELETED>    ``The purposes of this part are to provide United States 
assistance to developing countries--</DELETED>
        <DELETED>    ``(1) to develop, implement and improve nationally 
        appropriate greenhouse gas mitigation policies and actions that 
        reduce deforestation and forest degradation or conserve or 
        restore forest ecosystems, in a measurable, reportable, and 
        verifiable manner; and</DELETED>
        <DELETED>    ``(2) in a manner that is consistent with and 
        enhances the implementation of complementary United States 
        policies that support the good governance of forests, 
        biodiversity conservation, and environmentally sustainable 
        development, while taking local communities, most vulnerable 
        populations and communities, particularly forest-dependent 
        communities and indigenous peoples into 
        consideration.</DELETED>

<DELETED>``SEC. 753. EMISSION REDUCTIONS FROM REDUCED 
              DEFORESTATION.</DELETED>

<DELETED>    ``(a) In General.--Not later than 2 years after the date 
of the enactment of this part, the Administrator, in consultation with 
the Administrator of the Environmental Protection Agency, the Secretary 
of Agriculture, and the head of any other appropriate agency, shall 
establish a program to provide assistance to reduce greenhouse gas 
emissions from deforestation in developing countries, in accordance 
with this title.</DELETED>
<DELETED>    ``(b) Objectives.--The objectives of the program 
established under this section shall be--</DELETED>
        <DELETED>    ``(1) to reduce greenhouse gas emissions from 
        deforestation in developing countries by at least 720,000,000 
        tons of carbon dioxide equivalent in 2020, and a cumulative 
        quantity of at least 6,000,000,000 tons of carbon dioxide 
        equivalent by December 31, 2025, with additional reductions in 
        subsequent years;</DELETED>
        <DELETED>    ``(2) to assist developing countries in preparing 
        to participate in international markets for international 
        offset credits for reduced emissions from deforestation; 
        and</DELETED>
        <DELETED>    ``(3) to preserve existing forest carbon stocks in 
        countries where such forest carbon may be vulnerable to 
        international leakage.''.</DELETED>

<DELETED>SEC. 323. INTERNATIONAL CLEAN ENERGY DEPLOYMENT 
              PROGRAM.</DELETED>

<DELETED>    (a) Purposes.--The purposes of this section are--
</DELETED>
        <DELETED>    (1) to assist developing countries in activities 
        that reduce, sequester, or avoid greenhouse gas 
        emissions;</DELETED>
        <DELETED>    (2) to encourage those countries to shift toward 
        low-carbon development, and promote a successful global 
        agreement under the United Nations Framework Convention on 
        Climate Change, done at New York on May 9, 1992 (or a successor 
        agreement) (referred to in this subtitle as the 
        ``Convention''); and</DELETED>
        <DELETED>    (3) to promote robust compliance with and 
        enforcement of existing international legal requirements for 
        the protection of intellectual property rights.</DELETED>
<DELETED>    (b) Establishment of International Clean Energy Deployment 
Program.--</DELETED>
        <DELETED>    (1) Establishment.--The Secretary of State, in 
        consultation with an interagency group designated by the 
        President, shall establish an International Clean Energy 
        Deployment Program in accordance with this section.</DELETED>
        <DELETED>    (2) Distribution of assistance.--The Secretary of 
        State, or the head of such other Federal agency as the 
        President may designate, shall direct the distribution of 
        funding to carry out the Clean Energy Technology Program--
        </DELETED>
                <DELETED>    (A) in the form of bilateral 
                assistance;</DELETED>
                <DELETED>    (B) to multilateral funds or international 
                institutions pursuant to the Convention or an agreement 
                negotiated under the Convention; or</DELETED>
                <DELETED>    (C) through a combination of the 
                mechanisms identified under subparagraphs (A) and 
                (B).</DELETED>
<DELETED>    (c) Determination of Qualifying Activities.--Assistance 
under this subtitle may be provided only to qualifying entities for 
clean technology activities (including building relevant technical and 
institutional capacity) that contribute to substantial, measurable, 
reportable, and verifiable reductions, sequestration, or avoidance of 
greenhouse gas emissions.</DELETED>

<DELETED>SEC. 324. INTERNATIONAL CLIMATE CHANGE ADAPTATION AND GLOBAL 
              SECURITY PROGRAM.</DELETED>

<DELETED>    (a) Purposes.--The purposes of this section are--
</DELETED>
        <DELETED>    (1) to provide assistance to the most vulnerable 
        developing countries, particularly to the most vulnerable 
        communities and populations in those countries; and</DELETED>
        <DELETED>    (2) to support the development and implementation 
        of climate change adaptation programs in a way that protects 
        and promotes interests of the United States, to the extent 
        those interests may be advanced by minimizing, averting, or 
        increasing resilience to climate change impacts.</DELETED>
<DELETED>    (b) International Climate Change Adaptation and Global 
Security Program.--</DELETED>
        <DELETED>    (1) Establishment.--The Secretary of State, in 
        consultation with the Administrator of the United States Agency 
        for International Development, the Secretary of the Treasury, 
        and the Administrator, shall establish an International Climate 
        Change Adaptation and Global Security Program in accordance 
        with this section.</DELETED>
        <DELETED>    (2) Distribution of assistance.--The Secretary of 
        State, or the head of such other Federal agency as the 
        President may designate, after consultation with the Secretary 
        of the Treasury, the Administrator of the United States Agency 
        for International Development, and the Administrator, shall 
        direct the distribution of funding to carry out the 
        International Climate Change Adaptation and Global Security 
        Program--</DELETED>
                <DELETED>    (A) in the form of bilateral 
                assistance;</DELETED>
                <DELETED>    (B) to multilateral funds or international 
                institutions pursuant to the Convention or an agreement 
                negotiated under the Convention; or</DELETED>
                <DELETED>    (C) through a combination of the 
                mechanisms identified under subparagraphs (A) and 
                (B).</DELETED>

<DELETED>SEC. 325. EVALUATION AND REPORTS.</DELETED>

<DELETED>    (a) Monitoring, Evaluation, and Enforcement.--The Board 
shall establish and implement a system to monitor and evaluate the 
effectiveness and efficiency of assistance provided under this subtitle 
by including evaluation criteria, such as performance 
indicators.</DELETED>
<DELETED>    (b) Reports and Review.--</DELETED>
        <DELETED>    (1) Annual report.--Not later than 1 year after 
        the date of enactment of this Act, and annually thereafter, the 
        Board shall submit to the appropriate committees of Congress a 
        report that describes--</DELETED>
                <DELETED>    (A) the steps Federal agencies have taken, 
                and the progress made, toward accomplishing the 
                objectives of this section; and</DELETED>
                <DELETED>    (B) the ramifications of any potentially 
                destabilizing impacts climate change may have on the 
                interests of the United States.</DELETED>
        <DELETED>    (2) Reviews.--Not later than 3 years after the 
        date of enactment of this Act, and triennially thereafter, the 
        Board, in cooperation with the National Academy of Sciences and 
        other appropriate research and development institutions, 
        shall--</DELETED>
                <DELETED>    (A) review the global needs and 
                opportunities for climate change investment in 
                developing countries; and</DELETED>
                <DELETED>    (B) submit to Congress a report that 
                describes the findings of the review.</DELETED>

<DELETED>SEC. 326. REPORT ON CLIMATE ACTIONS OF MAJOR 
              ECONOMIES.</DELETED>

<DELETED>    (a) In General.--The Secretary of State, in cooperation 
with the Board, shall prepare an interagency report on climate change 
and energy policy of the 5 countries that, of the countries that are 
not members of the Organisation for Economic Co-Operation and 
Development, emit the greatest annual quantity of greenhouse 
gases.</DELETED>
<DELETED>    (b) Purposes.--The purposes of the report shall be--
</DELETED>
        <DELETED>    (1) to provide to Congress and the public of the 
        United States--</DELETED>
                <DELETED>    (A) a better understanding of the actions 
                the countries described in subsection (a) are taking to 
                reduce greenhouse gas emissions; and</DELETED>
                <DELETED>    (B) an assessment of the climate change 
                and energy policy commitments and actions of those 
                countries; and</DELETED>
        <DELETED>    (2) to identify the means by which the United 
        States can assist those countries in achieving such a 
        reduction.</DELETED>
<DELETED>    (c) Submission to Congress.--Not later than 15 months 
after the date of enactment of this Act, the Secretary of State shall 
submit to the appropriate committees of Congress the report prepared 
under this section.</DELETED>

       <DELETED>Subtitle C--Adapting to Climate Change</DELETED>

             <DELETED>PART 1--DOMESTIC ADAPTATION</DELETED>

        <DELETED>Subpart A--National Climate Change Adaptation 
                           Program</DELETED>

<DELETED>SEC. 341. NATIONAL CLIMATE CHANGE ADAPTATION 
              PROGRAM.</DELETED>

<DELETED>    The President shall establish within the United States 
Global Change Research Program a National Climate Change Adaptation 
Program for the purpose of increasing the overall effectiveness of 
Federal climate change adaptation efforts.</DELETED>

<DELETED>SEC. 342. CLIMATE SERVICES.</DELETED>

<DELETED>    The Secretary of Commerce, acting through the 
Administrator of the National Oceanic and Atmospheric Administration 
(NOAA), shall establish within NOAA a National Climate Service to 
develop climate information, data, forecasts, and warnings at national 
and regional scales, and to distribute information related to climate 
impacts to State, local, and tribal governments and the public to 
facilitate the development and implementation of strategies to reduce 
society's vulnerability to climate variability and change.</DELETED>

     <DELETED>Subpart B--Public Health and Climate Change</DELETED>

<DELETED>SEC. 351. SENSE OF CONGRESS ON PUBLIC HEALTH AND CLIMATE 
              CHANGE.</DELETED>

<DELETED>    It is the sense of the Congress that the Federal 
Government, in cooperation with international, State, tribal, and local 
governments, Indian tribes, concerned public and private organizations, 
and citizens, should use all practicable means and measures--</DELETED>
        <DELETED>    (1) to assist the efforts of public health and 
        health care professionals, first responders, States, Indian 
        tribes, municipalities, and local communities to incorporate 
        measures to prepare health systems to respond to the impacts of 
        climate change;</DELETED>
        <DELETED>    (2) to ensure--</DELETED>
                <DELETED>    (A) that the Nation's health professionals 
                have sufficient information to prepare for and respond 
                to the adverse health impacts of climate 
                change;</DELETED>
                <DELETED>    (B) the utility and value of scientific 
                research in advancing understanding of--</DELETED>
                        <DELETED>    (i) the health impacts of climate 
                        change; and</DELETED>
                        <DELETED>    (ii) strategies to prepare for and 
                        respond to the health impacts of climate 
                        change;</DELETED>
                <DELETED>    (C) the identification of communities 
                vulnerable to the health effects of climate change and 
                the development of strategic response plans to be 
                carried out by health professionals for those 
                communities;</DELETED>
                <DELETED>    (D) the improvement of health status and 
                health equity through efforts to prepare for and 
                respond to climate change; and</DELETED>
                <DELETED>    (E) the inclusion of health policy in the 
                development of climate change responses;</DELETED>
        <DELETED>    (3) to encourage further research, 
        interdisciplinary partnership, and collaboration among 
        stakeholders in order to--</DELETED>
                <DELETED>    (A) understand and monitor the health 
                impacts of climate change; and</DELETED>
                <DELETED>    (B) improve public health knowledge and 
                response strategies to climate change;</DELETED>
        <DELETED>    (4) to enhance preparedness activities, and public 
        health infrastructure, relating to climate change and 
        health;</DELETED>
        <DELETED>    (5) to encourage each and every American to learn 
        about the impacts of climate change on health; and</DELETED>
        <DELETED>    (6) to assist the efforts of developing nations to 
        incorporate measures to prepare health systems to respond to 
        the impacts of climate change.</DELETED>

<DELETED>SEC. 352. RELATIONSHIP TO OTHER LAWS.</DELETED>

<DELETED>    Nothing in this subpart in any manner limits the authority 
provided to or responsibility conferred on any Federal department or 
agency by any provision of any law (including regulations) or 
authorizes any violation of any provision of any law (including 
regulations), including any health, energy, environmental, 
transportation, or any other law or regulation.</DELETED>

<DELETED>SEC. 353. NATIONAL STRATEGIC ACTION PLAN.</DELETED>

<DELETED>    (a) Requirement.--</DELETED>
        <DELETED>    (1) In general.--The Secretary of Health and Human 
        Services, within 2 years after the date of the enactment of 
        this Act, on the basis of the best available science, and in 
        consultation pursuant to paragraph (2), shall publish a 
        strategic action plan to assist health professionals in 
        preparing for and responding to the impacts of climate change 
        on public health in the United States and other nations, 
        particularly developing nations.</DELETED>
        <DELETED>    (2) Consultation.--In developing or making any 
        revision to the national strategic action plan, the Secretary 
        shall--</DELETED>
                <DELETED>    (A) consult with the Director of the 
                Centers for Disease Control and Prevention, the 
                Administrator of the Environmental Protection Agency, 
                the Director of the National Institutes of Health, the 
                Director of the Indian Health Service, the Secretary of 
                Energy, other appropriate Federal agencies, Indian 
                tribes, State and local governments, public health 
                organizations, scientists, and other interested 
                stakeholders; and</DELETED>
                <DELETED>    (B) provide opportunity for public 
                input.</DELETED>
<DELETED>    (b) Contents.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall assist health 
        professionals in preparing for and responding effectively and 
        efficiently to the health effects of climate change through 
        measures including--</DELETED>
                <DELETED>    (A) developing, improving, integrating, 
                and maintaining domestic and international disease 
                surveillance systems and monitoring capacity to respond 
                to health-related effects of climate change, including 
                on topics addressing--</DELETED>
                        <DELETED>    (i) water, food, and vector borne 
                        infectious diseases and climate 
                        change;</DELETED>
                        <DELETED>    (ii) pulmonary effects, including 
                        responses to aeroallergens;</DELETED>
                        <DELETED>    (iii) cardiovascular effects, 
                        including impacts of temperature 
                        extremes;</DELETED>
                        <DELETED>    (iv) air pollution health effects, 
                        including heightened sensitivity to air 
                        pollution;</DELETED>
                        <DELETED>    (v) hazardous algal 
                        blooms;</DELETED>
                        <DELETED>    (vi) mental and behavioral health 
                        impacts of climate change;</DELETED>
                        <DELETED>    (vii) the health of refugees, 
                        displaced persons, and vulnerable 
                        communities;</DELETED>
                        <DELETED>    (viii) the implications for 
                        communities vulnerable to health effects of 
                        climate change, as well as strategies for 
                        responding to climate change within these 
                        communities; and</DELETED>
                        <DELETED>    (ix) local and community-based 
                        health interventions for climate-related health 
                        impacts;</DELETED>
                <DELETED>    (B) creating tools for predicting and 
                monitoring the public health effects of climate change 
                on the international, national, regional, State, 
                tribal, and local levels, and providing technical 
                support to assist in their implementation;</DELETED>
                <DELETED>    (C) developing public health 
                communications strategies and interventions for extreme 
                weather events and disaster response 
                situations;</DELETED>
                <DELETED>    (D) identifying and prioritizing 
                communities and populations vulnerable to the health 
                effects of climate change, and determining actions and 
                communication strategies that should be taken to inform 
                and protect these communities and populations from the 
                health effects of climate change;</DELETED>
                <DELETED>    (E) developing health communication, 
                public education, and outreach programs aimed at public 
                health and health care professionals, as well as the 
                general public, to promote preparedness and response 
                strategies relating to climate change and public 
                health, including the identification of greenhouse gas 
                reduction behaviors that are health-promoting; 
                and</DELETED>
                <DELETED>    (F) developing academic and regional 
                centers of excellence devoted to--</DELETED>
                        <DELETED>    (i) researching relationships 
                        between climate change and health;</DELETED>
                        <DELETED>    (ii) expanding and training the 
                        public health workforce to strengthen the 
                        capacity of such workforce to respond to and 
                        prepare for the health effects of climate 
                        change;</DELETED>
                        <DELETED>    (iii) creating and supporting 
                        academic fellowships focusing on the health 
                        effects of climate change; and</DELETED>
                        <DELETED>    (iv) training senior health 
                        ministry officials from developing nations to 
                        strengthen the capacity of such nations to--
                        </DELETED>
                                <DELETED>    (I) prepare for and 
                                respond to the health effects of 
                                climate change; and</DELETED>
                                <DELETED>    (II) build an 
                                international network of public health 
                                professionals with the necessary 
                                climate change knowledge 
                                base;</DELETED>
                <DELETED>    (G) using techniques, including health 
                impact assessments, to assess various climate change 
                public health preparedness and response strategies on 
                international, national, State, regional, tribal, and 
                local levels, and make recommendations as to those 
                strategies that best protect the public 
                health;</DELETED>
                <DELETED>    (H)(i) assisting in the development, 
                implementation, and support of State, regional, tribal, 
                and local preparedness, communication, and response 
                plans (including with respect to the health departments 
                of such entities) to anticipate and reduce the health 
                threats of climate change; and</DELETED>
                <DELETED>    (ii) pursuing collaborative efforts to 
                develop, integrate, and implement such plans;</DELETED>
                <DELETED>    (I) creating a program to advance research 
                as it relates to the effects of climate change on 
                public health across Federal agencies, including 
                research to--</DELETED>
                        <DELETED>    (i) identify and assess climate 
                        change health effects preparedness and response 
                        strategies;</DELETED>
                        <DELETED>    (ii) prioritize critical public 
                        health infrastructure projects related to 
                        potential climate change impacts that affect 
                        public health; and</DELETED>
                        <DELETED>    (iii) coordinate preparedness for 
                        climate change health impacts, including the 
                        development of modeling and forecasting 
                        tools;</DELETED>
                <DELETED>    (J) providing technical assistance for the 
                development, implementation, and support of 
                preparedness and response plans to anticipate and 
                reduce the health threats of climate change in 
                developing nations; and</DELETED>
                <DELETED>    (K) carrying out other activities 
                determined appropriate by the Secretary to plan for and 
                respond to the impacts of climate change on public 
                health.</DELETED>
<DELETED>    (c) Revision.--The Secretary shall revise the national 
strategic action plan not later than July 1, 2014, and every 4 years 
thereafter, to reflect new information collected pursuant to 
implementation of the national strategic action plan and otherwise, 
including information on--</DELETED>
        <DELETED>    (1) the status of critical environmental health 
        parameters and related human health impacts;</DELETED>
        <DELETED>    (2) the impacts of climate change on public 
        health; and</DELETED>
        <DELETED>    (3) advances in the development of strategies for 
        preparing for and responding to the impacts of climate change 
        on public health.</DELETED>
<DELETED>    (d) Implementation.--</DELETED>
        <DELETED>    (1) Implementation through hhs.--The Secretary 
        shall exercise the Secretary's authority under this subpart and 
        other provisions of Federal law to achieve the goals and 
        measures of the national strategic action plan.</DELETED>
        <DELETED>    (2) Other public health programs and 
        initiatives.--The Secretary and Federal officials of other 
        relevant Federal agencies shall administer public health 
        programs and initiatives authorized by provisions of law other 
        than this subpart, subject to the requirements of such 
        statutes, in a manner designed to achieve the goals of the 
        national strategic action plan.</DELETED>
        <DELETED>    (3) Specific activities.--In furtherance of the 
        national strategic action plan, the Secretary shall--</DELETED>
                <DELETED>    (A) conduct scientific research to assist 
                health professionals in preparing for and responding to 
                the impacts of climate change on public health; 
                and</DELETED>
                <DELETED>    (B) provide funding for--</DELETED>
                        <DELETED>    (i) research on the health effects 
                        of climate change; and</DELETED>
                        <DELETED>    (ii) preparedness planning on the 
                        international, national, State, tribal, 
                        regional, and local levels to respond to or 
                        reduce the burden of health effects of climate 
                        change; and</DELETED>
                <DELETED>    (C) carry out other activities determined 
                appropriate by the Secretary to prepare for and respond 
                to the impacts of climate change on public 
                health.</DELETED>

<DELETED>SEC. 354. ADVISORY BOARD.</DELETED>

<DELETED>    (a) Establishment.--The Secretary shall establish a 
permanent science advisory board comprised of not less than 10 and not 
more than 20 members.</DELETED>
<DELETED>    (b) Appointment of Members.--The Secretary shall appoint 
the members of the science advisory board from among individuals--
</DELETED>
        <DELETED>    (1) who have expertise in public health and human 
        services, climate change, and other relevant disciplines; 
        and</DELETED>
        <DELETED>    (2) at least \1/2\ of whom are recommended by the 
        President of the National Academy of Sciences.</DELETED>
<DELETED>    (c) Functions.--The science advisory board shall--
</DELETED>
        <DELETED>    (1) provide scientific and technical advice and 
        recommendations to the Secretary on the domestic and 
        international impacts of climate change on public health, 
        populations and regions particularly vulnerable to the effects 
        of climate change, and strategies and mechanisms to prepare for 
        and respond to the impacts of climate change on public health; 
        and</DELETED>
        <DELETED>    (2) advise the Secretary regarding the best 
        science available for purposes of issuing the national 
        strategic action plan.</DELETED>

<DELETED>SEC. 355. REPORTS.</DELETED>

<DELETED>    (a) Needs Assessment.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall seek to enter 
        into, by not later than 6 months after the date of the 
        enactment of this Act, an agreement with the National Research 
        Council and the Institute of Medicine to complete a report 
        that--</DELETED>
                <DELETED>    (A) assesses the needs for health 
                professionals to prepare for and respond to climate 
                change impacts on public health; and</DELETED>
                <DELETED>    (B) recommends programs to meet those 
                needs.</DELETED>
        <DELETED>    (2) Submission.--The agreement under paragraph (1) 
        shall require the completed report to be submitted to the 
        Congress and the Secretary and made publicly available not 
        later than 1 year after the date of the agreement.</DELETED>
<DELETED>    (b) Climate Change Health Protection and Promotion 
Reports.--</DELETED>
        <DELETED>    (1) In general.--The Secretary, in consultation 
        with the advisory board established under section 354, shall 
        ensure the issuance of reports to aid health professionals in 
        preparing for and responding to the adverse health effects of 
        climate change that--</DELETED>
                <DELETED>    (A) review scientific developments on 
                health impacts of climate change; and</DELETED>
                <DELETED>    (B) recommend changes to the national 
                strategic action plan.</DELETED>
        <DELETED>    (2) Submission.--The Secretary shall submit the 
        reports required by paragraph (1) to the Congress and make such 
        reports publicly available not later than July 1, 2013, and 
        every 4 years thereafter.</DELETED>

<DELETED>SEC. 356. DEFINITIONS.</DELETED>

<DELETED>    In this subpart:</DELETED>
        <DELETED>    (1) Health impact assessment.--The term ``health 
        impact assessment'' means a combination of procedures, methods, 
        and tools by which a policy, program, or project may be judged 
        as to its potential effects on the health of a population, and 
        the distribution of those effects within the 
        population.</DELETED>
        <DELETED>    (2) National strategic action plan.--The term 
        ``national strategic action plan'' means the plan issued and 
        revised under section 353.</DELETED>
        <DELETED>    (3) Secretary.--Unless otherwise specified, the 
        term ``Secretary'' means the Secretary of Health and Human 
        Services.</DELETED>

  <DELETED>Subpart C--Climate Change Safeguards for Natural Resources 
                         Conservation</DELETED>

<DELETED>SEC. 361. PURPOSES.</DELETED>

<DELETED>    The purposes of this subpart are--</DELETED>
        <DELETED>    (1) to establish an integrated Federal program 
        that responds to ongoing and expected impacts of climate 
        change, including, where applicable, ocean acidification, 
        drought, flooding, and wildfire, by protecting, restoring, and 
        conserving the natural resources of the United States; 
        and</DELETED>
        <DELETED>    (2) to provide financial support and incentives 
        for programs, strategies, and activities that respond to 
        threats of climate change, including, where applicable, ocean 
        acidification, drought, flooding, and wildfire, by protecting, 
        restoring, and conserving the natural resources of the United 
        States.</DELETED>

<DELETED>SEC. 362. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION 
              POLICY.</DELETED>

<DELETED>    It is the policy of the Federal Government, in cooperation 
with State and local governments, Indian tribes, and other interested 
stakeholders, to use all practicable means to protect, restore, and 
conserve natural resources so that natural resources become more 
resilient, adapt to, and withstand the ongoing and expected impacts of 
climate change, including, where applicable, ocean acidification, 
drought, flooding, and wildfire.</DELETED>

<DELETED>SEC. 363. DEFINITIONS.</DELETED>

<DELETED>    In this subpart:</DELETED>
        <DELETED>    (1) Account.--The term ``Account'' means the 
        Natural Resources Climate Change Adaption Account established 
        by section 370(a).</DELETED>
        <DELETED>    (2) Administrators.--The term ``Administrators'' 
        means--</DELETED>
                <DELETED>    (A) the Administrator of the National 
                Oceanic and Atmospheric Administration; and</DELETED>
                <DELETED>    (B) the Director of the United States 
                Geological Survey.</DELETED>
        <DELETED>    (3) Board.--The term ``Board'' means the Science 
        Advisory Board established by section 367(f)(1).</DELETED>
        <DELETED>    (4) Center.--The term ``Center'' means the 
        National Climate Change and Wildlife Science Center described 
        by section 367(e)(1).</DELETED>
        <DELETED>    (5) Coastal state.--The term ``coastal State'' has 
        the meaning given the term ``coastal state'' in section 304 of 
        the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1453).</DELETED>
        <DELETED>    (6) Corridors.--The term ``corridors'' means areas 
        that--</DELETED>
                <DELETED>    (A) provide connectivity, over different 
                time scales, of habitats or potential habitats; 
                and</DELETED>
                <DELETED>    (B) facilitate terrestrial, marine, 
                estuarine, and freshwater fish, wildlife, or plant 
                movement necessary for migration, gene flow, or 
                dispersal, or to respond to the ongoing and expected 
                impacts of climate change, including, where applicable, 
                ocean acidification, drought, flooding, and 
                wildfire.</DELETED>
        <DELETED>    (7) Ecological processes.--The term ``ecological 
        processes'' means biological, chemical, or physical interaction 
        between the biotic and abiotic components of an ecosystem, 
        including--</DELETED>
                <DELETED>    (A) nutrient cycling;</DELETED>
                <DELETED>    (B) pollination;</DELETED>
                <DELETED>    (C) predator-prey relationships;</DELETED>
                <DELETED>    (D) soil formation;</DELETED>
                <DELETED>    (E) gene flow;</DELETED>
                <DELETED>    (F) disease epizootiology;</DELETED>
                <DELETED>    (G) larval dispersal and 
                settlement;</DELETED>
                <DELETED>    (H) hydrological cycling;</DELETED>
                <DELETED>    (I) decomposition; and</DELETED>
                <DELETED>    (J) disturbance regimes, such as fire and 
                flooding.</DELETED>
        <DELETED>    (8) Habitat.--The term ``habitat'' means the 
        physical, chemical, and biological properties that fish, 
        wildlife, or plants use for growth, reproduction, survival, 
        food, water, or cover (whether on land, in water, or in an area 
        or region).</DELETED>
        <DELETED>    (9) 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).</DELETED>
        <DELETED>    (10) Natural resources.--The term ``natural 
        resources'' means land, wildlife, fish, air, water, estuaries, 
        plants, habitats, and ecosystems of the United 
        States.</DELETED>
        <DELETED>    (11) Natural resources adaptation.--The term 
        ``natural resources adaptation'' means the protection, 
        restoration, and conservation of natural resources so that 
        natural resources become more resilient, adapt to, and 
        withstand the ongoing and expected impacts of climate change, 
        including, where applicable, ocean acidification, drought, 
        flooding, and wildfire.</DELETED>
        <DELETED>    (12) Panel.--The term ``Panel'' means the Natural 
        Resources Climate Change Adaptation Panel established under 
        section 365(a).</DELETED>
        <DELETED>    (13) Resilience; resilient.--The terms 
        ``resilience'' and ``resilient'' mean--</DELETED>
                <DELETED>    (A) the ability to resist or recover from 
                disturbance; and</DELETED>
                <DELETED>    (B) the ability to preserve diversity, 
                productivity, and sustainability.</DELETED>
        <DELETED>    (14) State.--The term ``State'' means--</DELETED>
                <DELETED>    (A) a State of the United 
                States;</DELETED>
                <DELETED>    (B) the District of Columbia;</DELETED>
                <DELETED>    (C) American Samoa;</DELETED>
                <DELETED>    (D) Guam;</DELETED>
                <DELETED>    (E) the Commonwealth of the Northern 
                Mariana Islands;</DELETED>
                <DELETED>    (F) the Commonwealth of Puerto Rico; 
                and</DELETED>
                <DELETED>    (G) the United States Virgin 
                Islands.</DELETED>
        <DELETED>    (15) Strategy.--The term ``Strategy'' means the 
        Natural Resources Climate Change Adaptation Strategy developed 
        under section 366(a).</DELETED>

<DELETED>SEC. 364. COUNCIL ON ENVIRONMENTAL QUALITY.</DELETED>

<DELETED>    The Chair of the Council on Environmental Quality shall--
</DELETED>
        <DELETED>    (1) advise the President on implementing and 
        developing--</DELETED>
                <DELETED>    (A) the Strategy; and</DELETED>
                <DELETED>    (B) the Federal natural resource agency 
                adaptation plans required by section 368;</DELETED>
        <DELETED>    (2) serve as the Chair of the Panel established 
        under section 365; and</DELETED>
        <DELETED>    (3) coordinate Federal agency strategies, plans, 
        programs, and activities relating to protecting, restoring, and 
        maintaining natural resources so that natural resources become 
        more resilient, adapt to, and withstand the ongoing and 
        expected impacts of climate change.</DELETED>

<DELETED>SEC. 365. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION 
              PANEL.</DELETED>

<DELETED>    (a) Establishment.--Not later than 90 days after the date 
of enactment of this Act, the President shall establish a Natural 
Resources Climate Change Adaptation Panel.</DELETED>
<DELETED>    (b) Duties.--The Panel shall serve as a forum for 
interagency consultation on, and the coordination of, the development 
and implementation of the Strategy.</DELETED>
<DELETED>    (c) Membership.--The Panel shall be composed of--
</DELETED>
        <DELETED>    (1) the Administrator of the National Oceanic and 
        Atmospheric Administration (or a designee);</DELETED>
        <DELETED>    (2) the Chief of the Forest Service (or a 
        designee);</DELETED>
        <DELETED>    (3) the Director of the National Park Service (or 
        a designee);</DELETED>
        <DELETED>    (4) the Director of the United States Fish and 
        Wildlife Service (or a designee);</DELETED>
        <DELETED>    (5) the Director of the Bureau of Land Management 
        (or a designee);</DELETED>
        <DELETED>    (6) the Director of the United States Geological 
        Survey (or a designee);</DELETED>
        <DELETED>    (7) the Commissioner of Reclamation (or a 
        designee);</DELETED>
        <DELETED>    (8) the Director of the Bureau of Indian Affairs 
        (or a designee);</DELETED>
        <DELETED>    (9) the Administrator of the Environmental 
        Protection Agency (or a designee);</DELETED>
        <DELETED>    (10) the Chief of Engineers (or a 
        designee);</DELETED>
        <DELETED>    (11) the Chair of the Council on Environmental 
        Quality (or a designee);</DELETED>
        <DELETED>    (12) the Administrator of the Federal Emergency 
        Management Agency (or a designee); and</DELETED>
        <DELETED>    (13) the heads of such other Federal agencies or 
        departments with jurisdiction over natural resources of the 
        United States, as determined by the President.</DELETED>
<DELETED>    (d) Chairperson.--The Chair of the Council on 
Environmental Quality shall serve as the Chairperson of the 
Panel.</DELETED>

<DELETED>SEC. 366. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION 
              STRATEGY.</DELETED>

<DELETED>    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Panel shall develop a Natural Resources 
Climate Change Adaptation Strategy--</DELETED>
        <DELETED>    (1) to protect, restore, and conserve natural 
        resources so that natural resources become more resilient, 
        adapt to, and withstand the ongoing and expected impacts of 
        climate change; and</DELETED>
        <DELETED>    (2) to identify opportunities to mitigate the 
        ongoing and expected impacts of climate change.</DELETED>
<DELETED>    (b) Development.--In developing and revising the Strategy, 
the Panel shall--</DELETED>
        <DELETED>    (1) base the strategy on the best available 
        science;</DELETED>
        <DELETED>    (2) develop the strategy in close cooperation with 
        States and Indian tribes;</DELETED>
        <DELETED>    (3) coordinate with other Federal agencies, as 
        appropriate;</DELETED>
        <DELETED>    (4) consult with local governments, conservation 
        organizations, scientists, and other interested stakeholders; 
        and</DELETED>
        <DELETED>    (5) provide public notice and opportunity for 
        comment.</DELETED>
<DELETED>    (c) Revision.--After the Panel adopts the initial 
Strategy, the Panel shall review and revise the Strategy every 5 years 
to incorporate--</DELETED>
        <DELETED>    (1) new information regarding the ongoing and 
        expected impacts of climate change on natural resources; 
        and</DELETED>
        <DELETED>    (2) new advances in the development of strategies 
        that make natural resources more resilient or able to adapt to 
        the ongoing and expected impacts of climate change.</DELETED>
<DELETED>    (d) Contents.--The Strategy shall--</DELETED>
        <DELETED>    (1) assess the vulnerability of natural resources 
        to climate change, including short-term, medium-term, long-
        term, cumulative, and synergistic impacts;</DELETED>
        <DELETED>    (2) describe current research, observation, and 
        monitoring activities at the Federal, State, tribal, and local 
        level related to the ongoing and expected impacts of climate 
        change on natural resources;</DELETED>
        <DELETED>    (3) identify and prioritize research and data 
        needs;</DELETED>
        <DELETED>    (4) identify natural resources likely to have the 
        greatest need for protection, restoration, and conservation due 
        to the ongoing and expanding impacts of climate 
        change;</DELETED>
        <DELETED>    (5) include specific protocols for integrating 
        natural resources adaptation strategies and activities into the 
        conservation and management of natural resources by Federal 
        departments and agencies to ensure consistency across agency 
        jurisdictions;</DELETED>
        <DELETED>    (6) include specific actions that Federal 
        departments and agencies shall take to protect, conserve, and 
        restore natural resources to become more resilient, adapt to, 
        and withstand the ongoing and expected impacts of climate 
        change, including a timeline to implement those 
        actions;</DELETED>
        <DELETED>    (7) include specific mechanisms for ensuring 
        communication and coordination--</DELETED>
                <DELETED>    (A) among Federal departments and 
                agencies; and</DELETED>
                <DELETED>    (B) between Federal departments and 
                agencies and State natural resource agencies, United 
                States territories, Indian tribes, private landowners, 
                conservation organizations, and other countries that 
                share jurisdiction over natural resources with the 
                United States;</DELETED>
        <DELETED>    (8) include specific actions to develop and 
        implement consistent natural resources inventory and monitoring 
        protocols through interagency coordination and collaboration; 
        and</DELETED>
        <DELETED>    (9) include procedures for guiding the development 
        of detailed agency- and department-specific adaptation plans 
        required under section 368.</DELETED>
<DELETED>    (e) Implementation.--Consistent with other laws and 
Federal trust responsibilities concerning Indian land, each Federal 
department or agency represented on the Panel shall integrate the 
elements of the Strategy that relate to conservation, restoration, and 
management of natural resources into agency plans, environmental 
reviews, programs, and activities.</DELETED>

<DELETED>SEC. 367. NATURAL RESOURCES ADAPTATION SCIENCE AND 
              INFORMATION.</DELETED>

<DELETED>    (a) Coordination.--Not later than 90 days after the date 
of enactment of this Act, the Administrators shall establish 
coordinated procedures for developing and providing science and 
information necessary to address the ongoing and expected impacts of 
climate change on natural resources.</DELETED>
<DELETED>    (b) Oversight.--The National Climate Change and Wildlife 
Science Center established under subsection (e) and the National 
Climate Service of the National Oceanic and Atmospheric Administration 
shall oversee development of the procedures.</DELETED>
<DELETED>    (c) Functions.--The Administrators shall--</DELETED>
        <DELETED>    (1) ensure that the procedures required under 
        subsection (a) avoid duplication; and</DELETED>
        <DELETED>    (2) ensure that the National Oceanic and 
        Atmospheric Administration and the United States Geological 
        Survey--</DELETED>
                <DELETED>    (A) provide technical assistance to 
                Federal departments and agencies, State and local 
                governments, Indian tribes, and interested private 
                landowners that are pursuing the goals of addressing 
                the ongoing and expected impacts of climate change on 
                natural resources;</DELETED>
                <DELETED>    (B) conduct and sponsor research to 
                develop strategies that increase the ability of natural 
                resources to become more resilient, adapt to, and 
                withstand the ongoing and expected impacts of climate 
                change;</DELETED>
                <DELETED>    (C) provide Federal departments and 
                agencies, State and local governments, Indian tribes, 
                and interested private landowners with research 
                products, decision and monitoring tools, and 
                information to develop strategies that increase the 
                ability of natural resources to become more resilient, 
                adapt to, and withstand the ongoing and expected 
                impacts of climate change; and</DELETED>
                <DELETED>    (D) assist Federal departments and 
                agencies in the development of adaptation plans 
                required by section 368.</DELETED>
<DELETED>    (d) Survey.--Not later than 1 year after the date of 
enactment of this Act, and every 5 years thereafter, the Secretary of 
Commerce and the Secretary of the Interior shall conduct a climate 
change impact survey that--</DELETED>
        <DELETED>    (1) identifies natural resources considered likely 
        to be adversely affected by climate change;</DELETED>
        <DELETED>    (2) includes baseline monitoring and ongoing trend 
        analysis;</DELETED>
        <DELETED>    (3) with input from stakeholders, identifies and 
        prioritizes necessary monitoring and research that is most 
        relevant to the needs of natural resource managers to address 
        the ongoing and expected impacts of climate change and to 
        promote resilience; and</DELETED>
        <DELETED>    (4) identifies the decision tools necessary to 
        develop strategies that increase the ability of natural 
        resources to become more resilient, adapt to, and withstand the 
        ongoing and expected impacts of climate change.</DELETED>
<DELETED>    (e) National Climate Change and Wildlife Science Center.--
</DELETED>
        <DELETED>    (1) Establishment.--The Secretary of the Interior 
        shall establish the National Climate Change and Wildlife 
        Science Center within the United States Geological 
        Survey.</DELETED>
        <DELETED>    (2) Functions.--In collaboration with Federal and 
        State natural resources agencies and departments, Indian 
        tribes, universities, and other partner organizations, the 
        Center shall--</DELETED>
                <DELETED>    (A) assess and synthesize current physical 
                and biological knowledge;</DELETED>
                <DELETED>    (B) prioritize scientific gaps in such 
                knowledge in order to forecast the ecological impacts 
                of climate change, including, where applicable, ocean 
                acidification, drought, flooding, and wildfire on fish 
                and wildlife at the ecosystem, habitat, community, 
                population, and species levels;</DELETED>
                <DELETED>    (C) develop and improve tools to identify, 
                evaluate, and link scientific approaches and models 
                that forecast the impacts of climate change, including, 
                where applicable, ocean acidification, drought, 
                flooding, and wildfire on fish, wildlife, plants, and 
                associated habitats, including--</DELETED>
                        <DELETED>    (i) monitoring;</DELETED>
                        <DELETED>    (ii) predictive models;</DELETED>
                        <DELETED>    (iii) vulnerability 
                        analyses;</DELETED>
                        <DELETED>    (iv) risk assessments; 
                        and</DELETED>
                        <DELETED>    (v) decision support systems that 
                        help managers make informed 
                        decisions;</DELETED>
                <DELETED>    (D) develop and evaluate tools to 
                adaptively manage and monitor the effects of climate 
                change (including tools for the collection of data) on 
                fish and wildlife on the national, regional, and local 
                level; and</DELETED>
                <DELETED>    (E) develop capacities for sharing 
                standardized data and the synthesis of the data 
                described in subparagraph (D).</DELETED>
<DELETED>    (f) Science Advisory Board.--</DELETED>
        <DELETED>    (1) Establishment.--Not later than 180 days after 
        the date of enactment of this Act, the Secretary of Commerce 
        and the Secretary of the Interior shall establish and appoint 
        the members of the Science Advisory Board.</DELETED>
        <DELETED>    (2) Membership.--The Board shall be comprised of 
        not fewer than 10 and not more than 20 members--</DELETED>
                <DELETED>    (A) who have expertise in fish, wildlife, 
                plant, aquatic, and coastal and marine biology, 
                ecology, climate change, including, where applicable, 
                ocean acidification, drought, flooding, and wildfire, 
                and other relevant scientific disciplines;</DELETED>
                <DELETED>    (B) who represent a balanced membership 
                among Federal, State, tribal, and local 
                representatives, universities, and conservation 
                organizations; and</DELETED>
                <DELETED>    (C) at least \1/2\ of whom are recommended 
                by the President of the National Academy of 
                Sciences.</DELETED>
        <DELETED>    (3) Duties.--The Board shall--</DELETED>
                <DELETED>    (A) advise the Secretary of Commerce and 
                the Secretary of the Interior on the state of the 
                science regarding--</DELETED>
                        <DELETED>    (i) the ongoing and expected 
                        impacts of climate change, including, where 
                        applicable, ocean acidification, drought, 
                        flooding, and wildfire on natural resources; 
                        and</DELETED>
                        <DELETED>    (ii) scientific strategies and 
                        mechanisms for protecting, restoring, and 
                        conserving natural resources so natural 
                        resources become more resilient, adapt to, and 
                        withstand the ongoing and expected impacts of 
                        climate change, including, where applicable, 
                        ocean acidification, drought, flooding, and 
                        wildfire; and</DELETED>
                <DELETED>    (B) identify and recommend priorities for 
                ongoing research needs on the issues described in 
                subparagraph (A).</DELETED>
        <DELETED>    (4) Collaboration.--The Board shall collaborate 
        with climate change and ecosystem research entities in other 
        Federal agencies and departments.</DELETED>
        <DELETED>    (5) Availability to public.--The advice and 
        recommendations of the Board shall be made available to the 
        public.</DELETED>

<DELETED>SEC. 368. FEDERAL NATURAL RESOURCE AGENCY ADAPTATION 
              PLANS.</DELETED>

<DELETED>    (a) Development.--Not later than 1 year after the date of 
development of the Strategy, each department or agency with 
representation on the Panel shall--</DELETED>
        <DELETED>    (1) complete an adaptation plan for that 
        department or agency that--</DELETED>
                <DELETED>    (A) implements the Strategy and is 
                consistent with the natural resources climate change 
                adaptation policy required by section 362;</DELETED>
                <DELETED>    (B) details the ongoing and expanding 
                actions of the department or agency, and any changes in 
                decisionmaking processes necessary to increase the 
                ability of resources under the jurisdiction of the 
                department or agency and, to the maximum extent 
                practicable, resources under the jurisdiction of other 
                departments and agencies that may be significantly 
                affected by decisions of the department or agency, to 
                become more resilient, adapt to, and withstand the 
                ongoing and expected impacts of climate change, 
                including, where applicable, ocean acidification, 
                drought, flooding, and wildfire; and</DELETED>
                <DELETED>    (C) includes a timeline for 
                implementation;</DELETED>
        <DELETED>    (2) provide opportunities for public review and 
        comment on the adaptation plan, and in the case of a plan by 
        the Bureau of Indian Affairs, review by Indian tribes; 
        and</DELETED>
        <DELETED>    (3) submit the plan to the President for 
        approval.</DELETED>
<DELETED>    (b) Review by President and Submission to Congress.--
</DELETED>
        <DELETED>    (1) Review by president.--The President shall--
        </DELETED>
                <DELETED>    (A) approve an adaptation plan submitted 
                under subsection (a)(3) if the plan meets the 
                requirements of subsection (c) and is consistent with 
                the Strategy; and</DELETED>
                <DELETED>    (B) decide whether to approve the plan 
                within 60 days of submission.</DELETED>
        <DELETED>    (2) Disapproval.--If the President disapproves an 
        adaptation plan, the President shall direct the department or 
        agency to submit a revised plan within 60 days of that 
        disapproval.</DELETED>
        <DELETED>    (3) Submission to congress.--Not later than 30 
        days after the date of approval of an adaptation plan by the 
        President, the department or agency shall submit the plan to--
        </DELETED>
                <DELETED>    (A) the Committee on Natural Resources of 
                the House of Representatives;</DELETED>
                <DELETED>    (B) the Committee on Energy and Natural 
                Resources of the Senate;</DELETED>
                <DELETED>    (C) the Committee on Environment and 
                Public Works of the Senate; and</DELETED>
                <DELETED>    (D) any other committees of the House of 
                Representatives or the Senate with principal 
                jurisdiction over the department or agency.</DELETED>
<DELETED>    (c) Requirements.--Each adaptation plan shall--</DELETED>
        <DELETED>    (1) establish programs for assessing the ongoing 
        and expected impacts of climate change, including, where 
        applicable, ocean acidification, drought, flooding, and 
        wildfire on natural resources under the jurisdiction of the 
        department or agency preparing the plan, including--</DELETED>
                <DELETED>    (A) assessment of cumulative and 
                synergistic effects; and</DELETED>
                <DELETED>    (B) programs that identify and monitor 
                natural resources likely to be adversely affected and 
                that have need for conservation;</DELETED>
        <DELETED>    (2) identify and prioritize--</DELETED>
                <DELETED>    (A) the strategies of the department or 
                agency preparing the plan;</DELETED>
                <DELETED>    (B) the specific conservation actions that 
                address the ongoing and expected impacts of climate 
                change, including, where applicable, ocean 
                acidification, drought, flooding, and wildfire on 
                natural resources under jurisdiction of the department 
                or agency preparing the plan;</DELETED>
                <DELETED>    (C) strategies to protect, restore, and 
                conserve such resources to become more resilient, adapt 
                to, and better withstand those impacts, including--
                </DELETED>
                        <DELETED>    (i) protection, restoration, and 
                        conservation of terrestrial, marine, estuarine, 
                        and freshwater habitats and 
                        ecosystems;</DELETED>
                        <DELETED>    (ii) establishment of terrestrial, 
                        marine, estuarine, and freshwater habitat 
                        linkages and corridors;</DELETED>
                        <DELETED>    (iii) restoration and conservation 
                        of ecological processes;</DELETED>
                        <DELETED>    (iv) protection of a broad 
                        diversity of native species of fish, wildlife, 
                        and plant populations across the ranges of 
                        those species; and</DELETED>
                        <DELETED>    (v) protection of fish, wildlife, 
                        and plant health, recognizing that climate can 
                        alter the distribution and ecology of 
                        parasites, pathogens, and vectors;</DELETED>
        <DELETED>    (3) describe how the department or agency will--
        </DELETED>
                <DELETED>    (A) integrate the strategies and 
                conservation activities into plans, programs, 
                activities, and actions of the department or agency 
                relating to the conservation and management of natural 
                resources; and</DELETED>
                <DELETED>    (B) establish new plans, programs, 
                activities, and actions, if necessary;</DELETED>
        <DELETED>    (4) establish methods--</DELETED>
                <DELETED>    (A) to assess the effectiveness of 
                strategies and conservation actions the department or 
                agency takes to protect, restore, and conserve natural 
                resources so natural resources become more resilient, 
                adapt to, and withstand the ongoing and expected 
                impacts of climate change; and</DELETED>
                <DELETED>    (B) to update those strategies and actions 
                to respond to new information and changing 
                conditions;</DELETED>
        <DELETED>    (5) describe current and proposed mechanisms to 
        enhance cooperation and coordination of natural resources 
        adaptation efforts with other Federal agencies, State and local 
        governments, Indian tribes, and nongovernmental 
        stakeholders;</DELETED>
        <DELETED>    (6) include written guidance to resource managers 
        that--</DELETED>
                <DELETED>    (A) explains how managers are expected to 
                address the ongoing and expected effects of climate 
                change, including, where applicable, ocean 
                acidification, drought, flooding, and 
                wildfire;</DELETED>
                <DELETED>    (B) identifies how managers shall obtain 
                any necessary site-specific information; and</DELETED>
                <DELETED>    (C) reflects best practices shared among 
                relevant agencies, but recognizes the unique missions, 
                objectives, and responsibilities of each 
                agency;</DELETED>
        <DELETED>    (7) identify and assess data and information gaps 
        necessary to develop natural resources adaptation plans and 
        strategies; and</DELETED>
        <DELETED>    (8) consider strategies that engage youth and 
        young adults (including youth and young adults working in full-
        time or part-time youth service or conservation corps programs) 
        to provide the youth and young adults with opportunities for 
        meaningful conservation and community service and to encourage 
        opportunities for employment in the private sector through 
        partnerships with employers.</DELETED>
<DELETED>    (d) Implementation.--</DELETED>
        <DELETED>    (1) In general.--Upon approval by the President, 
        each department or agency with representation on the Panel 
        shall, consistent with existing authority, implement the 
        adaptation plan of the department or agency through existing 
        and new plans, policies, programs, activities, and 
        actions.</DELETED>
        <DELETED>    (2) Consideration of impacts.--</DELETED>
                <DELETED>    (A) In general.--To the maximum extent 
                practicable and consistent with existing authority, 
                natural resource management decisions made by the 
                department or agency shall--</DELETED>
                        <DELETED>    (i) consider the ongoing and 
                        expected impacts of climate change, including, 
                        where applicable, ocean acidification, drought, 
                        flooding, nd wildfire on natural resources; 
                        and</DELETED>
                        <DELETED>    (ii) choose alternatives that will 
                        avoid and minimize those impacts and promote 
                        resilience.</DELETED>
                <DELETED>    (B) Guidance.--The Council on 
                Environmental Quality shall provide guidance for 
                Federal departments and agencies considering those 
                impacts and choosing alternatives that will avoid and 
                minimize those impacts and promote 
                resilience.</DELETED>
<DELETED>    (e) Revision and Review.--Not less than every 5 years, 
each department or agency shall review and revise the adaptation plan 
of the department or agency to incorporate the best available science, 
and other information, regarding the ongoing and expected impacts of 
climate change on natural resources.</DELETED>

<DELETED>SEC. 369. STATE NATURAL RESOURCES ADAPTATION PLANS.</DELETED>

<DELETED>    (a) Requirement.--In order to be eligible for funds under 
section 370, not later than 1 year after the development of the 
Strategy, each State shall prepare a State natural resources adaptation 
plan detailing current and future efforts of the State to address the 
ongoing and expected impacts of climate change on natural resources and 
coastal areas within the jurisdiction of the State.</DELETED>
<DELETED>    (b) Review or Approval.--</DELETED>
        <DELETED>    (1) In general.--The Secretary of the Interior 
        and, as applicable, the Secretary of Commerce shall review each 
        State adaptation plan, and approve the plan if the plan--
        </DELETED>
                <DELETED>    (A) meets the requirements of subsection 
                (c); and</DELETED>
                <DELETED>    (B) is consistent with the 
                Strategy.</DELETED>
        <DELETED>    (2) Approval or disapproval.--The Secretary of the 
        Interior and, as applicable, the Secretary of Commerce shall 
        approve or disapprove the plan by written notice not later than 
        180 days after the date of submission of the plan (or a revised 
        plan).</DELETED>
        <DELETED>    (3) Resubmission.--Not later than 90 days after 
        the date of resubmission of an adaptation plan that has been 
        disapproved under paragraph (2), the Secretary of the Interior 
        and, as applicable, the Secretary of Commerce, shall approve or 
        disapprove the plan by written notice.</DELETED>
<DELETED>    (c) Contents.--A State natural resources adaptation plan 
shall--</DELETED>
        <DELETED>    (1) include strategies for addressing the ongoing 
        and expected impacts of climate change, including, where 
        applicable, ocean acidification, drought, flooding, and 
        wildfire on terrestrial, marine, estuarine, and freshwater 
        fish, wildlife, plants, habitats, ecosystems, wildlife health, 
        and ecological processes that--</DELETED>
                <DELETED>    (A) describe the ongoing and expected 
                impacts of climate change, including, where applicable, 
                ocean acidification, drought, flooding, and wildfire on 
                the diversity and health of fish, wildlife and plant 
                populations, habitats, ecosystems, and associated 
                ecological processes;</DELETED>
                <DELETED>    (B) establish programs for monitoring the 
                ongoing and expected impacts of climate change, 
                including, where applicable, ocean acidification, 
                drought, flooding, and wildfire on fish, wildlife, and 
                plant populations, habitats, ecosystems, and associated 
                ecological processes;</DELETED>
                <DELETED>    (C) describe and prioritize proposed 
                conservation actions that increase the ability of fish, 
                wildlife, plant populations, habitats, ecosystems, and 
                associated ecological processes to become more 
                resilient, adapt to, and better withstand those 
                impacts;</DELETED>
                <DELETED>    (D) consider strategies that engage youth 
                and young adults (including youth and young adults 
                working in full-time or part-time youth service or 
                conservation corps programs) to provide the youth and 
                young adults with opportunities for meaningful 
                conservation and community service and to encourage 
                opportunities for employment in the private sector 
                through partnerships with employers;</DELETED>
                <DELETED>    (E) integrate protection and restoration 
                of resource resilience into agency decision making and 
                specific conservation actions;</DELETED>
                <DELETED>    (F) include a time frame for implementing 
                conservation actions for fish, wildlife, and plant 
                populations, habitats, ecosystems, and associated 
                ecological processes;</DELETED>
                <DELETED>    (G) establish methods--</DELETED>
                        <DELETED>    (i) for assessing the 
                        effectiveness of strategies and conservation 
                        actions taken to increase the ability of fish, 
                        wildlife, and plant populations, habitats, 
                        ecosystems, and associated ecological processes 
                        to become more resilient, adapt to, and better 
                        withstand the ongoing and expected impacts of 
                        climate changes, including, where applicable, 
                        ocean acidification, drought, flooding, and 
                        wildfire; and</DELETED>
                        <DELETED>    (ii) for updating strategies and 
                        actions to respond appropriately to new 
                        information or changing conditions;</DELETED>
                <DELETED>    (H) are incorporated into a revision of 
                the State wildlife action plan (also known as the State 
                comprehensive wildlife strategy) that has been--
                </DELETED>
                        <DELETED>    (i) submitted to the United States 
                        Fish and Wildlife Service; and</DELETED>
                        <DELETED>    (ii) approved, or is pending 
                        approval, by the United States Fish and 
                        Wildlife Service; and</DELETED>
                <DELETED>    (I) are developed--</DELETED>
                        <DELETED>    (i) with the participation of the 
                        State fish and wildlife agency, the State 
                        coastal agency, the State agency responsible 
                        for administration of Land and Water 
                        Conservation Fund grants, the State Forest 
                        Legacy program coordinator, and other State 
                        agencies considered appropriate by the Governor 
                        of the State;</DELETED>
                        <DELETED>    (ii) in coordination with the 
                        Secretary of the Interior, and where 
                        applicable, the Secretary of Commerce; 
                        and</DELETED>
                        <DELETED>    (iii) in coordination with other 
                        States that share jurisdiction over natural 
                        resources with the State; and</DELETED>
        <DELETED>    (2) in the case of a coastal State, include 
        strategies for addressing the ongoing and expected impacts of 
        climate change, including, where applicable, ocean 
        acidification, drought, flooding, and wildfire on a coastal 
        zone that--</DELETED>
                <DELETED>    (A) identify natural resources likely to 
                be impacted by climate change, and describe the 
                impacts;</DELETED>
                <DELETED>    (B) identify and prioritize continuing 
                research and data collection needed to address the 
                impacts, including--</DELETED>
                        <DELETED>    (i) acquisition of high-resolution 
                        coastal elevation and nearshore bathymetry 
                        data;</DELETED>
                        <DELETED>    (ii) historic shoreline position 
                        maps, erosion rates, and inventories of 
                        shoreline features and structures;</DELETED>
                        <DELETED>    (iii) measures and models of 
                        relative rates of sea level rise or lake level 
                        changes, including effects on flooding, storm 
                        surge, inundation, and coastal geological 
                        processes;</DELETED>
                        <DELETED>    (iv) measures and models of 
                        habitat loss, including projected losses of 
                        coastal wetlands and potentials for inland 
                        migration of natural shoreline 
                        habitats;</DELETED>
                        <DELETED>    (v) measures and models of ocean 
                        and coastal species and ecosystem migrations, 
                        and changes in species population 
                        dynamics;</DELETED>
                        <DELETED>    (vi) changes in storm frequency, 
                        intensity, or rainfall patterns;</DELETED>
                        <DELETED>    (vii) measures and models of 
                        saltwater intrusion into coastal rivers and 
                        aquifers;</DELETED>
                        <DELETED>    (viii) changes in chemical or 
                        physical characteristics of marine and 
                        estuarine systems, including the presence, 
                        extent, and timing of hypoxic and anoxic 
                        conditions;</DELETED>
                        <DELETED>    (ix) measures and models of 
                        increased harmful algal blooms; and</DELETED>
                        <DELETED>    (x) measures and models of the 
                        spread of invasive species;</DELETED>
                <DELETED>    (C) identify and prioritize adaptation 
                strategies to protect, restore, and conserve natural 
                resources to enable natural resources to become more 
                resilient, adapt to, and withstand the ongoing and 
                expected impacts of climate change, including, where 
                applicable, ocean acidification, drought, flooding, and 
                wildfire, including--</DELETED>
                        <DELETED>    (i) protection, maintenance, and 
                        restoration of ecologically important coastal 
                        lands, coastal and ocean ecosystems, and 
                        species biodiversity and the establishment of 
                        habitat buffer zones, migration corridors, and 
                        climate refugia; and</DELETED>
                        <DELETED>    (ii) improved planning, siting 
                        policies, hazard mitigation strategies, and 
                        State property insurance programs;</DELETED>
                <DELETED>    (D) establish programs--</DELETED>
                        <DELETED>    (i) for the long-term monitoring 
                        of the ongoing and expected impacts of climate 
                        change, including, where applicable, ocean 
                        acidification, drought, flooding, and wildfire 
                        on the ocean and coastal zone; and</DELETED>
                        <DELETED>    (ii) assess and adjust, when 
                        necessary, the adaptive management 
                        strategies;</DELETED>
                <DELETED>    (E) establish performance measures that--
                </DELETED>
                        <DELETED>    (i) assess the effectiveness of 
                        adaptation strategies intended to improve 
                        resilience and the ability of natural resources 
                        to adapt to and withstand the ongoing and 
                        expected impacts of climate change, including, 
                        where applicable, ocean acidification, drought, 
                        flooding, and wildfire;</DELETED>
                        <DELETED>    (ii) assess the effectiveness of 
                        adaptation strategies intended to minimize 
                        those impacts on the coastal zone; 
                        and</DELETED>
                        <DELETED>    (iii) update the strategies to 
                        respond to new information or changing 
                        conditions; and</DELETED>
                <DELETED>    (F) are developed--</DELETED>
                        <DELETED>    (i) with the participation of the 
                        State coastal agency and other appropriate 
                        State agencies; and</DELETED>
                        <DELETED>    (ii) in coordination with the 
                        Secretary of Commerce and other appropriate 
                        Federal agencies.</DELETED>
<DELETED>    (d) Public Input.--In developing the adaptation plan, a 
State shall provide for solicitation and consideration of public input 
and independent scientific input.</DELETED>
<DELETED>    (e) Coordination With Other Plans.--The State adaptation 
plan shall review research and information and, where appropriate, 
integrate the goals and measures set forth in other natural resources 
conservation strategies, including--</DELETED>
        <DELETED>    (1) the National Fish Habitat Action 
        Plan;</DELETED>
        <DELETED>    (2) plans under the North American Wetlands 
        Conservation Act (16 U.S.C. 4401 et seq.);</DELETED>
        <DELETED>    (3) the Federal, State, and local partnership 
        known as ``Partners in Flight'';</DELETED>
        <DELETED>    (4) federally approved coastal zone management 
        plans under the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1451 et seq.);</DELETED>
        <DELETED>    (5) federally approved regional fishery management 
        plants and habitat conservation activities under the Magnuson-
        Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 
        et seq.);</DELETED>
        <DELETED>    (6) the National Coral Reef Action Plan;</DELETED>
        <DELETED>    (7) recovery plans for threatened species and 
        endangered species under section 4(f) of the Endangered Species 
        Act of 1973 (16 U.S.C. 1533(f));</DELETED>
        <DELETED>    (8) habitat conservation plans under section 10 of 
        that Act (16 U.S.C. 1539);</DELETED>
        <DELETED>    (9) other Federal, State, and tribal plans for 
        imperiled species;</DELETED>
        <DELETED>    (10) State or tribal hazard mitigation 
        plans;</DELETED>
        <DELETED>    (11) State or tribal water management 
        plans;</DELETED>
        <DELETED>    (12) State property insurance programs; 
        and</DELETED>
        <DELETED>    (13) other State-based strategies that 
        comprehensively implement adaptation activities to remediate 
        the ongoing and expected effects of climate change, including, 
        where applicable, ocean acidification, drought, flooding, and 
        wildfire, on terrestrial, marine, and freshwater fish, 
        wildlife, plants, and other natural resources.</DELETED>
<DELETED>    (f) Updating.--Each State plan shall be updated at least 
every 5 years.</DELETED>
<DELETED>    (g) Funding.--</DELETED>
        <DELETED>    (1) In general.--Funds allocated to States under 
        section 370 shall be used only for activities consistent with a 
        State natural resources adaptation plan approved by the 
        Secretary of the Interior and, as appropriate, the Secretary of 
        Commerce.</DELETED>
        <DELETED>    (2) Funding prior to the approval of a state 
        plan.--Until the earlier of the date that is 3 years after the 
        date of enactment of this Act or the date on which a State 
        adaptation plan is approved, a State shall be eligible to 
        receive funding under section 370 for adaptation activities 
        that are--</DELETED>
                <DELETED>    (A) consistent with the comprehensive 
                wildlife strategy of the State and, where appropriate, 
                other natural resources conservation strategies; 
                and</DELETED>
                <DELETED>    (B) in accordance with a work plan 
                developed in coordination with--</DELETED>
                        <DELETED>    (i) the Secretary of the Interior; 
                        and</DELETED>
                        <DELETED>    (ii) the Secretary of 
                        Commerce.</DELETED>
        <DELETED>    (3) Coastal state.--In developing a work plan 
        under paragraph (2)(B), a coastal State shall coordinate with 
        the Secretary of Commerce only for those portions of the 
        strategy relating to activities affecting the coastal 
        zone.</DELETED>
        <DELETED>    (4) Pending approval.--During the period for which 
        approval by the applicable Secretary is pending, the State may 
        continue to receive funds under section 370 pursuant to the 
        work plan described in paragraph (2)(B).</DELETED>

<DELETED>SEC. 370. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION 
              ACCOUNT.</DELETED>

<DELETED>    (a) Distribution of Amounts.--</DELETED>
        <DELETED>    (1) States.--Of the amounts made available for 
        each fiscal year to carry out this subpart, 38.5 percent shall 
        be provided to States to carry out natural resources adaptation 
        activities in accordance with adaptation plans approved under 
        section 369, and shall be distributed as follows:</DELETED>
                <DELETED>    (A) 32.5 percent shall be available to 
                State wildlife agencies in accordance with the 
                apportionment formula established under the second 
                subsection (c) (relating to the apportionment of the 
                Wildlife Conservation and Restoration Account) of 
                section 4 of the Pittman-Robertson Wildlife Restoration 
                Act (16 U.S.C. 669c); and</DELETED>
                <DELETED>    (B) 6 percent shall be available to State 
                coastal agencies pursuant to the formula established by 
                the Secretary of Commerce under section 306(c) of the 
                Coastal Management Act of 1972 (16 U.S.C. 
                1455(c)).</DELETED>
        <DELETED>    (2) Natural resource adaptation.--Of the amounts 
        made available for each fiscal year to carry out this subpart--
        </DELETED>
                <DELETED>    (A) 17 percent shall be allocated to the 
                Secretary of the Interior for use in funding--
                </DELETED>
                        <DELETED>    (i) natural resources adaptation 
                        activities carried out--</DELETED>
                                <DELETED>    (I) under endangered 
                                species, migratory species, and other 
                                fish and wildlife programs administered 
                                by the National Park Service, the 
                                United States Fish and Wildlife 
                                Service, the Bureau of Indian Affairs, 
                                and the Bureau of Land 
                                Management;</DELETED>
                                <DELETED>    (II) on wildlife refuges, 
                                National Park Service land, and other 
                                public land under the jurisdiction of 
                                the United States Fish and Wildlife 
                                Service, the Bureau of Land Management, 
                                the Bureau of Indian Affairs, or the 
                                National Park Service; and</DELETED>
                                <DELETED>    (III) within Federal water 
                                managed by the Bureau of Reclamation 
                                and the National Park Service; 
                                and</DELETED>
                        <DELETED>    (ii) the implementation of the 
                        National Fish and Wildlife Habitat and 
                        Corridors Information Program required by 
                        section 371;</DELETED>
                <DELETED>    (B) 5 percent shall be allocated to the 
                Secretary of the Interior for natural resources 
                adaptation activities carried out under cooperative 
                grant programs, including--</DELETED>
                        <DELETED>    (i) the cooperative endangered 
                        species conservation fund authorized under 
                        section 6 of the Endangered Species Act of 1973 
                        (16 U.S.C. 1535);</DELETED>
                        <DELETED>    (ii) programs under the North 
                        American Wetlands Conservation Act (16 U.S.C. 
                        4401 et seq.);</DELETED>
                        <DELETED>    (iii) the Neotropical Migratory 
                        Bird Conservation Fund established by section 
                        9(a) of the Neotropical Migratory Bird 
                        Conservation Act (16 U.S.C. 6108(a));</DELETED>
                        <DELETED>    (iv) the Coastal Program of the 
                        United States Fish and Wildlife 
                        Service;</DELETED>
                        <DELETED>    (v) the National Fish Habitat 
                        Action Plan;</DELETED>
                        <DELETED>    (vi) the Partners for Fish and 
                        Wildlife Program;</DELETED>
                        <DELETED>    (vii) the Landowner Incentive 
                        Program;</DELETED>
                        <DELETED>    (viii) the Wildlife Without 
                        Borders Program of the United States Fish and 
                        Wildlife Service; and</DELETED>
                        <DELETED>    (ix) the Migratory Species Program 
                        and Park Flight Migratory Bird Program of the 
                        National Park Service; and</DELETED>
                <DELETED>    (C) 3 percent shall be allocated to the 
                Secretary of the Interior to provide financial 
                assistance to Indian tribes to carry out natural 
                resources adaptation activities through the Tribal 
                Wildlife Grants Program of the United States Fish and 
                Wildlife Service.</DELETED>
        <DELETED>    (3) Land and water conservation.--</DELETED>
                <DELETED>    (A) Deposits.--</DELETED>
                        <DELETED>    (i) In general.--Of the amounts 
                        made available for each fiscal year to carry 
                        out this subpart, 12 percent shall be deposited 
                        in the Land and Water Conservation Fund 
                        established under section 2 of the Land and 
                        Water Conservation Fund Act of 1965 (16 U.S.C. 
                        460l-5).</DELETED>
                        <DELETED>    (ii) Use of deposits.--Deposits in 
                        the Land and Water Conservation Fund under this 
                        paragraph shall--</DELETED>
                                <DELETED>    (I) be supplemental to 
                                authorizations provided under section 3 
                                of the Land and Water Conservation Fund 
                                Act of 1965 (16 U.S.C. 460l-6), which 
                                shall remain available for 
                                nonadaptation needs; and</DELETED>
                                <DELETED>    (II) be available to carry 
                                out this subpart without further 
                                appropriation or fiscal year 
                                limitation.</DELETED>
                <DELETED>    (B) Distribution of amounts.--Of the 
                amounts deposited under this paragraph in the Land and 
                Water Conservation Fund--</DELETED>
                        <DELETED>    (i) for the purposes of carrying 
                        out the natural resources adaptation activities 
                        through the acquisition of land and interests 
                        in land under section 6 of the Land and Water 
                        Conservation Fund Act of 1965 (16 U.S.C. 460l-
                        8), \1/6\ shall be allocated to the Secretary 
                        of the Interior and made available on a 
                        competitive basis--</DELETED>
                                <DELETED>    (I) to States, in 
                                accordance with the natural resources 
                                adaptation plans of States, and to 
                                Indian tribes;</DELETED>
                                <DELETED>    (II) notwithstanding 
                                section 5 of that Act (16 U.S.C. 460l-
                                7); and</DELETED>
                                <DELETED>    (III) in addition to any 
                                funds provided pursuant to annual 
                                appropriations Acts, the Energy Policy 
                                Act of 2005 (42 U.S.C. 15801 et seq.), 
                                or any other authorization for 
                                nonadaptation needs;</DELETED>
                        <DELETED>    (ii) \1/3\ shall be allocated to 
                        the Secretary of the Interior to carry out 
                        natural resources adaptation activities through 
                        the acquisition of lands and interests in land 
                        under section 7 of the Land and Water 
                        Conservation Fund Act of 1965 (16 U.S.C. 460l-
                        9);</DELETED>
                        <DELETED>    (iii) \1/6\ shall be allocated to 
                        the Secretary of Agriculture and made available 
                        to the States and Indian tribes to carry out 
                        natural resources adaptation activities through 
                        the acquisition of land and interests in land 
                        under section 7 of the Cooperative Forestry 
                        Assistance Act of 1978 (16 U.S.C. 2103c); 
                        and</DELETED>
                        <DELETED>    (iv) \1/3\ shall be allocated to 
                        the Secretary of Agriculture to carry out 
                        natural resources adaptation activities through 
                        the acquisition of land and interests in land 
                        under section 7 of the Land and Water 
                        Conservation Fund Act of 1965 (16 U.S.C. 460l-
                        9).</DELETED>
                <DELETED>    (C) Expenditure of funds.--In allocating 
                funds under subparagraph (B), the Secretary of the 
                Interior and the Secretary of Agriculture shall take 
                into consideration factors including--</DELETED>
                        <DELETED>    (i) the availability of non-
                        Federal contributions from State, local, or 
                        private sources;</DELETED>
                        <DELETED>    (ii) opportunities to protect fish 
                        and wildlife corridors or otherwise to link or 
                        consolidate fragmented habitats;</DELETED>
                        <DELETED>    (iii) opportunities to reduce the 
                        risk of catastrophic wildfires, drought, 
                        extreme flooding, or other climate-related 
                        events that are harmful to fish and wildlife 
                        and people; and</DELETED>
                        <DELETED>    (iv) the potential for 
                        conservation of species or habitat types at 
                        serious risk due to climate change, including, 
                        where applicable, ocean acidification, drought, 
                        flooding, and wildfire, or other 
                        stressors.</DELETED>
        <DELETED>    (4) National forest and grassland adaptation.--Of 
        the amounts made available for each fiscal year to carry out 
        this subpart, 5 percent shall be allocated to the Forest 
        Service, through the Secretary of Agriculture--</DELETED>
                <DELETED>    (A) to fund natural resources adaptation 
                activities carried out in national forests and national 
                grasslands under the jurisdiction of the Forest 
                Service; and</DELETED>
                <DELETED>    (B) to carry out natural resource 
                adaptation activities on State and private forest land 
                carried out under the Cooperative Forestry Assistance 
                Act of 1978 (16 U.S.C. 2101 et seq.).</DELETED>
        <DELETED>    (5) Coastal and marine system adaptation.--Of the 
        amounts made available for each fiscal year to carry out this 
        subpart, 7 percent shall be allocated to the Secretary of 
        Commerce to fund natural resources adaptation activities that 
        protect, maintain, and restore coastal, estuarine, and marine 
        resources, habitats, and ecosystems, including such activities 
        carried out under--</DELETED>
                <DELETED>    (A) the coastal and estuarine land 
                conservation program administered by the National 
                Oceanic and Atmospheric Administration;</DELETED>
                <DELETED>    (B) the community-based restoration 
                program for fishery and coastal habitats established 
                under section 117 of the Magnuson-Stevens Fishery 
                Conservation and Management Reauthorization Act of 2006 
                (16 U.S.C. 1891a);</DELETED>
                <DELETED>    (C) the Coastal Zone Management Act of 
                1972 (16 U.S.C. 1451 et seq.) that are specifically 
                designed to strengthen the ability of coastal, 
                estuarine, and marine resources, habitats, and 
                ecosystems to adapt to and withstand the ongoing and 
                expected impacts of climate change, including, where 
                applicable, ocean acidification, drought, flooding, and 
                wildfire;</DELETED>
                <DELETED>    (D) the Open Rivers Initiative;</DELETED>
                <DELETED>    (E) the Magnuson-Stevens Fishery 
                Conservation and Management Act (16 U.S.C. 1801 et 
                seq.);</DELETED>
                <DELETED>    (F) the Marine Mammal Protection Act of 
                1972 (16 U.S.C. 1361 et seq.);</DELETED>
                <DELETED>    (G) the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.);</DELETED>
                <DELETED>    (H) the Marine Protection, Research, and 
                Sanctuaries Act of 1972 (33 U.S.C. 1401 et 
                seq.);</DELETED>
                <DELETED>    (I) the Coral Reef Conservation Act of 
                2000 (16 U.S.C. 6401 et seq.); and</DELETED>
                <DELETED>    (J) the Estuary Restoration Act of 2000 
                (33 U.S.C. 2901 et seq.).</DELETED>
        <DELETED>    (6) Estuarine and freshwater ecosystem 
        adaptation.--Of the amounts made available for each fiscal year 
        to carry out this subpart, 7.5 percent shall be allocated to 
        the Administrator of the Environmental Protection Agency and 5 
        percent shall be available to the Secretary of the Army for use 
        by the Corps of Engineers for use in natural resources 
        adaptation activities restoring and protecting--</DELETED>
                <DELETED>    (A) large-scale freshwater aquatic 
                ecosystems, such as the Everglades, the Great Lakes, 
                Flathead Lake, the Missouri River, the Mississippi 
                River, the Colorado River, the Sacramento-San Joaquin 
                Rivers, the Ohio River, the Columbia-Snake River 
                System, the Apalachicola, Chattahoochee, and Flint 
                River System, the Connecticut River, and the 
                Yellowstone River;</DELETED>
                <DELETED>    (B) large-scale estuarine ecosystems, such 
                as Chesapeake Bay, Long Island Sound, Puget Sound, the 
                Mississippi River Delta, the San Francisco Bay Delta, 
                Narragansett Bay, and Albemarle-Pamlico 
                Sound;</DELETED>
                <DELETED>    (C) freshwater and estuarine ecosystems, 
                watersheds, and basins identified and prioritized by 
                the Administrator of the Environmental Protection 
                Agency or the Corps of Engineers, working in 
                cooperation with other Federal agencies, States, tribal 
                governments, local governments, scientists, and other 
                conservation partners; and</DELETED>
                <DELETED>    (D)(i) habitats and ecosystems through 
                estuary habitat restoration projects authorized by the 
                Estuary Restoration Act of 2000 (33 U.S.C. 2901 et 
                seq.);</DELETED>
                <DELETED>    (ii) project modifications for improvement 
                of the environment;</DELETED>
                <DELETED>    (iii) aquatic restoration and protection 
                projects authorized by section 206 of the Water 
                Resources Development Act of 1996 (33 U.S.C. 2330); 
                and</DELETED>
                <DELETED>    (iv) other appropriate programs and 
                activities.</DELETED>
<DELETED>    (b) Use of Funds by Federal Departments and Agencies.--
Funds allocated to Federal departments and agencies under this section 
shall only be used for natural resources adaptation activities 
consistent with an adaptation plan approved under section 
368.</DELETED>
<DELETED>    (c) State Cost-Sharing.--Notwithstanding any other 
provision of law, a State that receives a grant under this section 
shall use funds from non-Federal sources to pay 10 percent of the costs 
of each activity carried out under the grant.</DELETED>

<DELETED>SEC. 371. NATIONAL FISH AND WILDLIFE HABITAT AND CORRIDORS 
              INFORMATION PROGRAM.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Geospatial interoperability framework.--The 
        term ``Geospatial Interoperability Framework'' means the 
        strategy used by the National Biological Information 
        Infrastructure (based on accepted standards, specifications, 
        and protocols adopted through the International Standards 
        Organization, the Open Geospatial Consortium, and the Federal 
        Geographic Data Committee) to manage, archive, integrate, 
        analyze, and make geospatial and biological data and metadata 
        accessible.</DELETED>
        <DELETED>    (2) Program.--The term ``Program'' means the 
        National Fish and Wildlife Habitat and Corridors Information 
        Program established under subsection (b).</DELETED>
        <DELETED>    (3) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.</DELETED>
        <DELETED>    (4) System.--The term ``System'' means the Habitat 
        and Corridors Information System established under subsection 
        (d)(1).</DELETED>
<DELETED>    (b) Establishment.--Not later than 180 days after the date 
of enactment of this Act, the Secretary, in cooperation with the States 
and Indian tribes, shall establish a National Fish and Wildlife Habitat 
and Corridors Information Program.</DELETED>
<DELETED>    (c) Purpose.--The purposes of the Program are--</DELETED>
        <DELETED>    (1) to support States and Indian tribes in 
        developing geographical information system databases of fish 
        and wildlife habitats and corridors that--</DELETED>
                <DELETED>    (A) inform planning and development 
                decisions within each State;</DELETED>
                <DELETED>    (B) enable each State to model climate 
                impacts and adaptation; and</DELETED>
                <DELETED>    (C) provide geographically specific 
                enhancements of State wildlife action plans;</DELETED>
        <DELETED>    (2) to ensure the collaborative development of a 
        comprehensive national geographic information system database 
        of maps, models, data, surveys, informational products, and 
        other geospatial information regarding fish and wildlife 
        habitat and corridors that--</DELETED>
                <DELETED>    (A) is based on consistent protocols for 
                sampling and mapping across landscapes;</DELETED>
                <DELETED>    (B) takes into account regional 
                differences; and</DELETED>
                <DELETED>    (C) uses--</DELETED>
                        <DELETED>    (i) existing and planned State- 
                        and tribal-based geographical information 
                        system databases; and</DELETED>
                        <DELETED>    (ii) existing databases, 
                        analytical tools, metadata activities, and 
                        other information products available through 
                        the National Biological Information 
                        Infrastructure maintained by the Secretary and 
                        nongovernmental organizations; and</DELETED>
        <DELETED>    (3) to facilitate the use of those databases by 
        Federal, State, local, and tribal decisionmakers to incorporate 
        qualitative information on fish and wildlife habitats and 
        corridors at the earliest practicable stage for use in--
        </DELETED>
                <DELETED>    (A) prioritizing and targeting natural 
                resources adaptation strategies and 
                activities;</DELETED>
                <DELETED>    (B) avoiding, minimizing, and mitigating 
                the impacts on fish and wildlife habitat and corridors 
                when locating energy development, water, transmission, 
                transportation, and other land use projects;</DELETED>
                <DELETED>    (C) assessing the impacts of existing 
                development on habitats and corridors; and</DELETED>
                <DELETED>    (D) developing management strategies that 
                enhance the ability of fish, wildlife, and plant 
                species to migrate or respond to shifting habitats 
                within existing habitats and corridors.</DELETED>
<DELETED>    (d) Habitat and Corridors Information System.--</DELETED>
        <DELETED>    (1) In general.--The Secretary, in cooperation 
        with States and Indian tribes, shall establish a Habitat and 
        Corridors Information System.</DELETED>
        <DELETED>    (2) Contents.--The System shall--</DELETED>
                <DELETED>    (A) include maps, data, and descriptions 
                of fish and wildlife habitat and corridors that--
                </DELETED>
                        <DELETED>    (i) have been developed by Federal 
                        agencies, State wildlife agencies, and natural 
                        heritage programs, Indian tribes, local 
                        governments, nongovernmental organizations, and 
                        industry; and</DELETED>
                        <DELETED>    (ii) meet accepted geospatial 
                        interoperability framework data and metadata 
                        protocols and standards;</DELETED>
                <DELETED>    (B) include maps and descriptions of 
                projected shifts in habitats and corridors of fish and 
                wildlife species in response to climate 
                change;</DELETED>
                <DELETED>    (C) ensure data quality;</DELETED>
                <DELETED>    (D) at scales useful to decisionmakers, 
                make data, models, and analyses included in the System 
                available--</DELETED>
                        <DELETED>    (i) to prioritize and target 
                        natural resources adaptation strategies and 
                        activities;</DELETED>
                        <DELETED>    (ii) to assess the impacts of 
                        existing development on habitats and 
                        corridors;</DELETED>
                        <DELETED>    (iii) to assess the impacts of 
                        proposed energy development, water, 
                        transmission, transportation, and other land 
                        use projects and to avoid, minimize, or 
                        mitigate those impacts on habitats and 
                        corridors; and</DELETED>
                        <DELETED>    (iv) to develop management 
                        strategies that enhance the ability of fish, 
                        wildlife, and plant species to migrate or 
                        respond to shifting habitats within existing 
                        habitats and corridors;</DELETED>
                <DELETED>    (E) update maps and other information as 
                landscapes, habitats, corridors, and wildlife 
                populations change, or as new information becomes 
                available;</DELETED>
                <DELETED>    (F) encourage development of collaborative 
                plans by Federal and State agencies and Indian tribes 
                that monitor and evaluate the ability of the System to 
                meet the needs of decisionmakers;</DELETED>
                <DELETED>    (G) identify gaps in habitat and corridor 
                information, mapping, and research needed to fully 
                assess current data and metadata;</DELETED>
                <DELETED>    (H) prioritize research and future data 
                collection activities for use in updating the System 
                and provide support for those activities;</DELETED>
                <DELETED>    (I) include mechanisms to support 
                collaborative research, mapping, and planning of 
                habitats and corridors by Federal and State agencies, 
                Indian tribes, and other interested 
                stakeholders;</DELETED>
                <DELETED>    (J) incorporate biological and geospatial 
                data on species and corridors found in energy 
                development and transmission plans, including renewable 
                energy initiatives, transportation, and other land use 
                plans;</DELETED>
                <DELETED>    (K) identify, prioritize, and describe key 
                parcels of non-Federal land that--</DELETED>
                        <DELETED>    (i) are located within units of 
                        the National Park System, National Wildlife 
                        Refuge System, National Forest System, or 
                        National Grassland System; and</DELETED>
                        <DELETED>    (ii) are critical to maintenance 
                        of wildlife habitat and migration corridors; 
                        and</DELETED>
                <DELETED>    (L) be based on the best scientific 
                information available.</DELETED>
<DELETED>    (e) Financial and Other Support.--The Secretary may 
provide support to the States and Indian tribes, including financial 
and technical assistance, for activities that support the development 
and implementation of the System.</DELETED>
<DELETED>    (f) Coordination.--In cooperation with States and Indian 
tribes, the Secretary shall recommend how the information in the System 
may be incorporated into relevant State and Federal plans that affect 
fish and wildlife, including--</DELETED>
        <DELETED>    (1) land management plans;</DELETED>
        <DELETED>    (2) the State Comprehensive Wildlife Conservation 
        Strategies; and</DELETED>
        <DELETED>    (3) appropriate tribal conservation 
        plans.</DELETED>
<DELETED>    (g) Purpose of Incorporation.--The Secretary shall make 
the recommendations required by subsection (f) to ensure that relevant 
State and Federal plans that affect fish and wildlife--</DELETED>
        <DELETED>    (1) prevent unnecessary habitat fragmentation and 
        disruption of corridors;</DELETED>
        <DELETED>    (2) promote the landscape connectivity necessary 
        to allow wildlife to move as necessary to meet biological 
        needs, adjust to shifts in habitat, and adapt to climate 
        change; and</DELETED>
        <DELETED>    (3) minimize the impacts of energy, development, 
        water, transportation, and transmission projects and other 
        activities expected to impact habitat and corridors.</DELETED>

<DELETED>SEC. 372. ADDITIONAL PROVISIONS REGARDING INDIAN 
              TRIBES.</DELETED>

<DELETED>    (a) Federal Trust Responsibility.--Nothing in this subpart 
amends, alters, or gives priority over the Federal trust responsibility 
to any Indian tribe.</DELETED>
<DELETED>    (b) Exemption From FOIA.--If a Federal department or 
agency receives any information relating to sacred sites or cultural 
activities identified by an Indian tribe as confidential, such 
information shall be exempt from disclosure under section 552 of title 
5, United States Code (commonly referred to as the Freedom of 
Information Act).</DELETED>
<DELETED>    (c) Application of Other Law.--The Secretary of the 
Interior may apply the provisions of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450 et seq.) in the implementation 
of this subpart.</DELETED>

       <DELETED>Subpart D--Additional Climate Change Adaptation 
                           Programs</DELETED>

<DELETED>SEC. 381. WATER SYSTEM MITIGATION AND ADAPTION 
              PARTNERSHIPS.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Owner or operator.--</DELETED>
                <DELETED>    (A) In general.--The term ``owner or 
                operator'' means a person (including a regional, local, 
                municipal, or private entity) that owns or operates a 
                water system.</DELETED>
                <DELETED>    (B) Inclusion.--The term ``owner or 
                operator'' includes--</DELETED>
                        <DELETED>    (i) a non-Federal entity that has 
                        operational responsibilities for a federally or 
                        State owned water system; and</DELETED>
                        <DELETED>    (ii) an entity formed pursuant to 
                        any State's joint exercise of powers statutes 
                        that includes one or more of the entities in 
                        paragraph (A).</DELETED>
        <DELETED>    (2) Water system.--The term ``water system'' 
        means--</DELETED>
                <DELETED>    (A) a community water system (as defined 
                in section 1401 of the Safe Drinking Water Act (42 
                U.S.C. 300f));</DELETED>
                <DELETED>    (B) a treatment works (as defined in 
                section 212 of the Federal Water Pollution Control Act 
                (33 U.S.C. 1292)), including a municipal separate storm 
                sewer system;</DELETED>
                <DELETED>    (C) a decentralized wastewater treatment 
                system for domestic sewage;</DELETED>
                <DELETED>    (D) a groundwater storage and 
                replenishment system; or</DELETED>
                <DELETED>    (E) a system for transport and delivery of 
                water for irrigation or conservation.</DELETED>
<DELETED>    (b) Establishment.--The Administrator shall establish a 
water system mitigation and adaptation partnership program to provide 
funds to States for water system adaptation projects.</DELETED>
<DELETED>    (c) Grants.--Beginning in fiscal year 2010, each State 
receiving funds pursuant to this section shall make grants to owners or 
operators of water systems to address any ongoing or forecasted (based 
on the best available research and data) climate-related impact on the 
water quality, water supply or reliability of a region of the United 
States, for the purposes of mitigating or adapting to the impacts of 
climate change.</DELETED>
<DELETED>    (d) Eligible Uses.--The funds made available to each State 
pursuant to this section shall be used exclusively to assist in the 
planning, design, construction, implementation, or operation or 
maintenance of any program or project to respond or increase the 
resilience of a water system to climate change by--</DELETED>
        <DELETED>    (1) conserving water or enhancing water use 
        efficiency, including through the use of water metering and 
        electronic sensing and control systems to measure the 
        effectiveness of a water efficiency program;</DELETED>
        <DELETED>    (2) modifying or relocating existing water system 
        infrastructure made or projected to be significantly impaired 
        by climate change impacts;</DELETED>
        <DELETED>    (3) preserving or improving water quality, 
        including through measures to manage, reduce, treat, or reuse 
        municipal stormwater, wastewater, or drinking water;</DELETED>
        <DELETED>    (4) investigating, designing, or constructing 
        groundwater remediation, recycled water, or desalination 
        facilities or systems to serve existing communities;</DELETED>
        <DELETED>    (5) enhancing water management by increasing 
        watershed preservation and protection, such as through the use 
        of natural or engineered green infrastructure in the 
        management, conveyance, or treatment of water, wastewater, or 
        stormwater;</DELETED>
        <DELETED>    (6) enhancing energy efficiency or the use and 
        generation of renewable energy in the management, conveyance, 
        or treatment of water, wastewater, or stormwater;</DELETED>
        <DELETED>    (7) supporting the adoption and use of advanced 
        water treatment, water supply management (such as reservoir 
        reoperation and water banking), or water demand management 
        technologies, projects, or processes (such as water reuse and 
        recycling, adaptive conservation pricing, and groundwater 
        banking) that maintain or increase water supply or improve 
        water quality;</DELETED>
        <DELETED>    (8) modifying or replacing existing systems or 
        constructing new systems for existing communities or land 
        currently in agricultural production to improve water supply, 
        reliability, storage, or conveyance in a manner that--
        </DELETED>
                <DELETED>    (A) promotes conservation or improves the 
                efficiency of utilization of available water supplies; 
                and</DELETED>
                <DELETED>    (B) does not further exacerbate stresses 
                on ecosystems or cause redirected impacts by degrading 
                water quality or increasing net greenhouse gas 
                emissions;</DELETED>
        <DELETED>    (9) supporting practices and projects, such as 
        improved irrigation systems, water banking and other forms of 
        water transactions, groundwater recharge, stormwater capture, 
        groundwater conjunctive use, and reuse or recycling of drainage 
        water, to improve water quality or promote more efficient water 
        use on land currently in agricultural production; or</DELETED>
        <DELETED>    (10) conducting and completing studies or 
        assessments to project how climate change may impact the future 
        operations and sustainability of water systems.</DELETED>
<DELETED>    (e) Application.--To be eligible to receive a grant from 
the State under this section, the owner or operator of a water system 
shall submit to the State an application that--</DELETED>
        <DELETED>    (1) includes a proposal of the program, strategy, 
        or infrastructure improvement to be planned, designed, 
        constructed, implemented, or maintained by the water 
        system;</DELETED>
        <DELETED>    (2) cites the best available research or data that 
        demonstrate--</DELETED>
                <DELETED>    (A) the risk to the water resources or 
                infrastructure of the water system as a result of 
                ongoing or forecasted changes to the hydrological 
                system brought about by factors arising from climate 
                change, including rising sea levels and changes in 
                precipitation levels; and</DELETED>
                <DELETED>    (B) how the proposed program, strategy, or 
                infrastructure improvement would perform under the 
                anticipated climate conditions; and</DELETED>
        <DELETED>    (3) explains how the proposed program, strategy, 
        or infrastructure improvement is expected to enhance the 
        resiliency of the water system, including source water 
        protection for community water systems, to these risks or 
        reduce the direct or indirect greenhouse gas emissions of the 
        water system.</DELETED>
<DELETED>    (f) Competitive Process.--</DELETED>
        <DELETED>    (1) In general.--Each calendar year, each State 
        shall conduct a competitive process to select and fund 
        applications under this section.</DELETED>
        <DELETED>    (2) Priority requirements and weighting.--In 
        carrying out the process, the States shall--</DELETED>
                <DELETED>    (A) prioritize funding of applications 
                that are submitted by the owners or operators of water 
                systems that are, based on the best available research 
                and data, at the greatest and most immediate risk of 
                facing significant climate-related negative impacts on 
                water quality or quantity; and</DELETED>
                <DELETED>    (B) in selecting among the priority 
                applications determined under subparagraph (A), ensure 
                that, to the maximum extent practicable, the final list 
                of applications funded for each year includes a 
                substantial number meeting one or more of each of the 
                following goals--</DELETED>
                        <DELETED>    (i) promote more efficient water 
                        use, water conservation, water reuse, or 
                        recycling;</DELETED>
                        <DELETED>    (ii) use decentralized, low-impact 
                        development technologies and nonstructural 
                        approaches, including practices that use, 
                        enhance, or mimic the natural hydrological 
                        cycle or protect natural flows;</DELETED>
                        <DELETED>    (iii) reduce stormwater runoff by 
                        protecting or enhancing natural ecosystem 
                        functions;</DELETED>
                        <DELETED>    (iv) modify, upgrade, enhance, or 
                        replace existing water system infrastructure in 
                        response to ongoing or forecasted climate-
                        related impacts;</DELETED>
                        <DELETED>    (v) promote the sustainability and 
                        reliability of water supplies used for 
                        agricultural purposes;</DELETED>
                        <DELETED>    (vi) improve water quality or 
                        quantity for agricultural and municipal uses, 
                        including through salinity reduction; 
                        and</DELETED>
                        <DELETED>    (vii) provide multiple benefits, 
                        including to water supply enhancement or demand 
                        reduction, water quality protection or 
                        improvement, increased flood protection, and 
                        ecosystem protection or improvement; 
                        and</DELETED>
                <DELETED>    (C) provide for solicitation and 
                consideration of public input in the development of 
                criteria used in evaluating applications.</DELETED>
<DELETED>    (g) Cost-Sharing.--</DELETED>
        <DELETED>    (1) Federal share.--The share of the cost of any 
        program, strategy, or infrastructure improvement that is the 
        subject of a grant awarded by a State to the owner or operator 
        of a water system under subsection (c) paid through funds 
        distributed under this section shall not exceed 50 percent of 
        the cost of the program, strategy, and infrastructure 
        improvement.</DELETED>
        <DELETED>    (2) Calculation of non-federal share.--In 
        calculating the non-Federal share of the cost of a program, 
        strategy, or infrastructure improvement proposed by a water 
        system through an application submitted by the water system 
        under subsection (e), the State shall--</DELETED>
                <DELETED>    (A) include the value of any in-kind 
                services that are integral to the completion of the 
                program, strategy, or infrastructure improvement, 
                including reasonable administrative and overhead costs; 
                and</DELETED>
                <DELETED>    (B) not include any other amount that the 
                water system receives from a Federal agency.</DELETED>
<DELETED>    (h) Labor Standards.--</DELETED>
        <DELETED>    (1) In general.--Other than with respect to 
        employees of State and local agencies, or other public 
        entities, all laborers and mechanics employed on infrastructure 
        improvements funded directly by or assisted in whole or in part 
        by this section shall be paid wages at rates not less than 
        those prevailing for the same type of work on similar 
        construction in the immediate locality, 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.</DELETED>
        <DELETED>    (2) Authority and functions.--With respect to the 
        labor standards 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.</DELETED>

<DELETED>SEC. 382. FLOOD CONTROL, PROTECTION, PREVENTION, AND 
              RESPONSE.</DELETED>

<DELETED>    (a) Establishment.--The Administrator shall establish a 
Flood Control, Protection, Prevention and Response Program to provide 
funds to States for flood control, protection, prevention and response 
projects.</DELETED>
<DELETED>    (b) Eligible Uses.--</DELETED>
        <DELETED>    (1) In general.--States receiving funding pursuant 
        to this section may use such funding on flood control, 
        protection, prevention and response programs and projects 
        addressing the projected impacts of climate change in 
        accordance with this section.</DELETED>
        <DELETED>    (2) Objectives.--Such projects and activities 
        shall seek to mitigate or adapt to the destructive impacts of 
        climate related increases in the duration, frequency, or 
        magnitude of rainfall or runoff, including snowmelt runoff, as 
        well as hurricanes, including projects and programs that--
        </DELETED>
                <DELETED>    (A) reduce flood damage, risk, and 
                vulnerability;</DELETED>
                <DELETED>    (B) identify, maintain and restore 
                ecosystems and natural barriers integral to flood 
                control, protection, prevention and response;</DELETED>
                <DELETED>    (C) update the available data, 
                technologies, and scientific knowledge used in 
                estimating, identifying and mitigating flood 
                hazards;</DELETED>
                <DELETED>    (D) highlight, update and remediate 
                vulnerabilities in emergency response;</DELETED>
                <DELETED>    (E) incorporate risk analysis and a risk-
                reduction approach to flood-related 
                investments;</DELETED>
                <DELETED>    (F) incorporate and identify changes in 
                risk due to processes such as land loss, subsidence, 
                sea-level rise, reduced natural buffers, urban 
                development and infrastructure aging; and</DELETED>
                <DELETED>    (G) identify and incorporate innovative 
                approaches to land use management, water resource 
                planning, and ecosystem restoration.</DELETED>
        <DELETED>    (3) Priority.--Priority in projects to reduce 
        flood events shall be given to those projects that directly 
        assist local governments and communities in flood control, 
        protection, prevention and response activities.</DELETED>

<DELETED>SEC. 383. WILDFIRE.</DELETED>

<DELETED>    (a) Findings.--Congress finds that--</DELETED>
        <DELETED>    (1) since 1980, wildfires in the United States 
        have burned almost twice as many acres per year on average than 
        the average burned acreage during the period beginning on 
        January 1, 1920, and ending on December 31, 1979;</DELETED>
        <DELETED>    (2) the wildfire season in the western United 
        States has increased by an average of 78 days during the 30-
        year period preceding the date of enactment of this 
        Act;</DELETED>
        <DELETED>    (3) researchers predict that the area subject to 
        wildfire damage will increase during the 21st century by up to 
        118 percent as a result of climate change;</DELETED>
        <DELETED>    (4) of the annual budget of the Forest Service, 
        the Forest Service used for wildfire suppression activities--
        </DELETED>
                <DELETED>    (A) 13 percent in 1991; and</DELETED>
                <DELETED>    (B) 45 percent in 2007; and</DELETED>
        <DELETED>    (5) 1 percent of the largest escaped fires--
        </DELETED>
                <DELETED>    (A) burn 95 percent of all burned acres; 
                and</DELETED>
                <DELETED>    (B) consume 85 percent of all wildfire 
                fighting costs.</DELETED>
<DELETED>    (b) Purpose.--The purpose of this section is to authorize 
a program to reduce the risk of wildfires in fire-ready 
communities.</DELETED>
<DELETED>    (c) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Fire-ready community.--The term ``fire-ready 
        community'' means a community that--</DELETED>
                <DELETED>    (A) is located within a priority area 
                identified pursuant to subsection (d);</DELETED>
                <DELETED>    (B) has a cooperative fire agreement that 
                articulates the roles and responsibilities for Federal, 
                State and local government entities in local wildfire 
                suppression and protection;</DELETED>
                <DELETED>    (C) has local codes that require fire-
                resistant home design and building materials;</DELETED>
                <DELETED>    (D) has a community wildfire protection 
                plan (as defined in section 101 of the Healthy Forests 
                Restoration Act of 2003 (16 U.S.C. 6502)); 
                and</DELETED>
                <DELETED>    (E) is engaged in a successful 
                collaborative process that includes multiple interested 
                persons representing diverse interests and is 
                transparent and nonexclusive, such as a resource 
                advisory committee established under section 205 of the 
                Secure Rural Schools and Community Self-Determination 
                Act of 2000 (Public Law 106-393; 16 U.S.C. 500 
                note).</DELETED>
        <DELETED>    (2) Secretaries.--The term ``Secretaries'' means 
        the Secretary of Agriculture and the Secretary of the 
        Interior.</DELETED>
<DELETED>    (d) Fire Risk Mapping.--As soon as is practicable after 
the date of the enactment of this Act, the Secretaries shall develop 
regional maps of communities most at risk of wildfire and in need of 
hazardous fuel treatment and maintenance. The maps shall identify 
priority areas for hazardous fuels reduction projects, including--
</DELETED>
        <DELETED>    (1) at-risk communities in fire-prone areas of the 
        wildland-urban interface (as defined in section 101 of the 
        Healthy Forests Restoration Act of 2003 (16 U.S.C. 
        6502));</DELETED>
        <DELETED>    (2) watersheds and municipal drinking water 
        sources;</DELETED>
        <DELETED>    (3) emergency evacuation corridors;</DELETED>
        <DELETED>    (4) electricity transmission corridors;</DELETED>
        <DELETED>    (5) low-capacity or low-income communities; 
        and</DELETED>
        <DELETED>    (6) communities in fire-prone areas due to the 
        impact of pest infestation on forest resources.</DELETED>
<DELETED>    (e) Local Wildland Firefighting Capability Grants.--
</DELETED>
        <DELETED>    (1) Grants available.--The Secretaries may provide 
        cost-share grants to fire-ready communities to assist such 
        communities in carrying out activities authorized by paragraph 
        (2).</DELETED>
        <DELETED>    (2) Eligible activities.--Grant funds may be used 
        for the following:</DELETED>
                <DELETED>    (A) Education programs to raise awareness 
                of homeowners and citizens about wildland fire 
                protection practices, including FireWise or similar 
                programs.</DELETED>
                <DELETED>    (B) Training programs for local 
                firefighters on wildland firefighting techniques and 
                approaches.</DELETED>
                <DELETED>    (C) Equipment acquisition to facilitate 
                wildland fire preparedness.</DELETED>
                <DELETED>    (D) Implementation of a community wildfire 
                protection plan.</DELETED>
                <DELETED>    (E) Forest restoration that accomplishes 
                fuels reduction.</DELETED>
<DELETED>    (f) Wildland Fire Cost-Share Agreements.--In developing 
any wildland fire cost-share agreement with a State Forester or 
equivalent official, the Secretaries shall, to the maximum extent 
practicable, encourage the State and local communities involved to 
become fire-ready communities.</DELETED>

<DELETED>SEC. 384. COASTAL AND GREAT LAKES STATE ADAPTATION 
              PROGRAM.</DELETED>

<DELETED>    (a) Findings.--According to the National Ocean Economics 
Program, coastal and Great Lakes States account for 81.4 percent of the 
population of the United States and generate 83 percent of the economic 
output of the United States.</DELETED>
<DELETED>    (b) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Coastal state.--The term ``coastal State'' has 
        the meaning given the term ``coastal state'' in section 304 of 
        the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1453).</DELETED>
        <DELETED>    (2) Coastal watershed.--The term ``coastal 
        watershed'' means a geographical area drained into or 
        contributing water to an estuarine area, an ocean, or a Great 
        Lake, all or a portion of which is within the coastal zone (as 
        defined in section 304 of the Coastal Zone Management Act of 
        1972 (16 U.S.C. 1453)).</DELETED>
        <DELETED>    (3) Shoreline miles.--The term ``shoreline 
        miles'', with respect to a coastal State, means the mileage of 
        tidal shoreline or Great Lake shoreline of the coastal State, 
        based on the most recently available data from or accepted by 
        the National Ocean Service of the National Oceanic and 
        Atmospheric Administration.</DELETED>
<DELETED>    (c) Distribution.--</DELETED>
        <DELETED>    (1) In general.--The Administrator shall 
        distribute, in accordance with this section, funding for 
        coastal State economic protection under subsection.</DELETED>
        <DELETED>    (2) Allocation.--The funding available for 
        allocation under subsection (b) for a calendar year shall be 
        distributed among coastal States, as follows:</DELETED>
                <DELETED>    (A) 25 percent based on the proportion 
                that--</DELETED>
                        <DELETED>    (i) the number of shoreline miles 
                        of a coastal State; bears to</DELETED>
                        <DELETED>    (ii) the total number of shoreline 
                        miles of all coastal States.</DELETED>
                <DELETED>    (B) 25 percent based on the proportion 
                that--</DELETED>
                        <DELETED>    (i) the population of a coastal 
                        State; bears to</DELETED>
                        <DELETED>    (ii) the total population of all 
                        coastal States.</DELETED>
                <DELETED>    (C) 50 percent divided equally among all 
                coastal States.</DELETED>
<DELETED>    (d) Use of Funding.--</DELETED>
        <DELETED>    (1) In general.--During any calendar year, a 
        coastal State receiving funding under this section may use the 
        funding only for projects and activities to plan for and 
        address the impacts of climate change in the coastal watershed, 
        including--</DELETED>
                <DELETED>    (A) to address the impacts of climate 
                change with respect to--</DELETED>
                        <DELETED>    (i) accelerated sea level rise and 
                        lake level changes;</DELETED>
                        <DELETED>    (ii) shoreline erosion;</DELETED>
                        <DELETED>    (iii) increased storm frequency or 
                        intensity;</DELETED>
                        <DELETED>    (iv) changes in rainfall or other 
                        precipitation; and</DELETED>
                        <DELETED>    (v) related flooding;</DELETED>
                <DELETED>    (B) to identify and develop plans to 
                protect, or, as necessary or applicable, to relocate 
                public facilities and infrastructure, coastal resources 
                of national significance, public energy facilities, or 
                other public water uses located in the coastal 
                watershed that are affected by climate change, 
                including strategies that use natural resources, such 
                as natural buffer zones, natural shorelines, and 
                habitat protection or restoration;</DELETED>
                <DELETED>    (C) to research and collect data using, or 
                on matters such as--</DELETED>
                        <DELETED>    (i) historical shoreline position 
                        maps;</DELETED>
                        <DELETED>    (ii) historical shoreline erosion 
                        rates;</DELETED>
                        <DELETED>    (iii) inventories of shoreline 
                        features and conditions;</DELETED>
                        <DELETED>    (iv) acquisition of high-
                        resolution topography and bathymetry;</DELETED>
                        <DELETED>    (v) sea level rise inundation 
                        models;</DELETED>
                        <DELETED>    (vi) storm surge sea level rise 
                        linked inundation models;</DELETED>
                        <DELETED>    (vii) shoreline change modeling 
                        based on sea level rise projections;</DELETED>
                        <DELETED>    (viii) sea level rise 
                        vulnerability analyses and socioeconomic 
                        studies; and</DELETED>
                        <DELETED>    (ix) environmental and habitat 
                        changes associated with sea level rise; 
                        and</DELETED>
                <DELETED>    (D) to respond to--</DELETED>
                        <DELETED>    (i) changes in chemical 
                        characteristics (including ocean acidification) 
                        and physical characteristics (including thermal 
                        stratification) of marine systems;</DELETED>
                        <DELETED>    (ii) saltwater intrusion into 
                        groundwater aquifers;</DELETED>
                        <DELETED>    (iii) increased harmful algae 
                        blooms;</DELETED>
                        <DELETED>    (iv) spread of invasive 
                        species;</DELETED>
                        <DELETED>    (v) coastal habitat 
                        loss;</DELETED>
                        <DELETED>    (vi) species migrations; 
                        and</DELETED>
                        <DELETED>    (vii) marine, estuarine, and 
                        freshwater ecosystem changes associated with 
                        climate change.</DELETED>
        <DELETED>    (2) Execution.--Priority to plan and carry out 
        projects and activities under this subsection shall be given to 
        State coastal agencies, as determined in accordance with State 
        law.</DELETED>
        <DELETED>    (3) Coordination.--In carrying out this 
        subsection, a coastal State shall coordinate with other 
        statewide climate change efforts in order to avoid duplication 
        of such efforts.</DELETED>
<DELETED>    (e) Report.--Not later than 1 year after the date on which 
a State receives funds under this section, and biennially thereafter 
until such time as the funding is fully expended, the State shall 
submit to the Administrator, or the heads of such other Federal 
agencies as the President may designate, a report that--</DELETED>
        <DELETED>    (1) provides a full accounting for the State's use 
        of funding distributed under this section, including a 
        description of the projects and activities funded; 
        and</DELETED>
        <DELETED>    (2) may be independent or included within any 
        report required for any State programs for greenhouse gas 
        reduction and climate adaptation.</DELETED>

   <DELETED>DIVISION B--POLLUTION REDUCTION AND INVESTMENT</DELETED>

     <DELETED>TITLE I--REDUCING GLOBAL WARMING POLLUTION</DELETED>

    <DELETED>Subtitle A--Reducing Global Warming Pollution</DELETED>

<DELETED>SEC. 101. REDUCING GLOBAL WARMING POLLUTION.</DELETED>

<DELETED>    The Clean Air Act is amended by adding after title VI (42 
U.S.C. 7671 et seq.) the following:</DELETED>

<DELETED>``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION AND INVESTMENT 
                           PROGRAM</DELETED>

    <DELETED>``PART A--GLOBAL WARMING POLLUTION REDUCTION GOALS AND 
                           TARGETS</DELETED>

<DELETED>``SEC. 701. FINDINGS.</DELETED>

<DELETED>    ``Congress finds that--</DELETED>
        <DELETED>    ``(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 
        countries;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(3) 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;</DELETED>
        <DELETED>    ``(4) accordingly, controlling emissions in small 
        as well as large quantities is essential to prevent, slow the 
        pace of, reduce the threats from, and mitigate global warming 
        and its adverse effects;</DELETED>
        <DELETED>    ``(5) because they induce global warming, 
        greenhouse gas emissions cause or contribute to injuries to 
        persons in the United States, including--</DELETED>
                <DELETED>    ``(A) adverse health effects, such as 
                disease and loss of life;</DELETED>
                <DELETED>    ``(B) displacement of human 
                populations;</DELETED>
                <DELETED>    ``(C) damage to property and other 
                interests relating to ocean levels, acidification, and 
                ice changes;</DELETED>
                <DELETED>    ``(D) severe weather and seasonal 
                changes;</DELETED>
                <DELETED>    ``(E) disruption, costs, and losses to 
                business, trade, employment, farms, subsistence, 
                aesthetic enjoyment of the environment, recreation, 
                culture, and tourism;</DELETED>
                <DELETED>    ``(F) damage to plants, forests, lands, 
                and waters;</DELETED>
                <DELETED>    ``(G) harm to wildlife and 
                habitat;</DELETED>
                <DELETED>    ``(H) scarcity of water and the decreased 
                abundance of other natural resources;</DELETED>
                <DELETED>    ``(I) worsening of tropospheric air 
                pollution;</DELETED>
                <DELETED>    ``(J) substantial threats of similar 
                damage; and</DELETED>
                <DELETED>    ``(K) other harm;</DELETED>
        <DELETED>    ``(6) the fact that many of those 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;</DELETED>
        <DELETED>    ``(7) the fact 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;</DELETED>
        <DELETED>    ``(8) countries of the world look to the United 
        States for leadership in addressing the threat of and harm from 
        global warming;</DELETED>
        <DELETED>    ``(9) full implementation of this title is 
        critical to engage other countries in an international effort 
        to mitigate the threat of and harm from global warming; 
        and</DELETED>
        <DELETED>    ``(10) 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 
        this title is fully implemented and enforced in an expeditious 
        manner.</DELETED>

<DELETED>``SEC. 702. ECONOMY-WIDE REDUCTION GOALS.</DELETED>

<DELETED>    ``The goals of this title, and the Clean Energy Jobs and 
American Power Act (and the amendments made by that Act), are to reduce 
steadily the quantity of United States greenhouse gas emissions such 
that--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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; 
        and</DELETED>
        <DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES.</DELETED>

<DELETED>    ``(a) In General.--The regulations issued under section 
721 shall limit and reduce annually the greenhouse gas emissions of 
capped sources each calendar year beginning in 2012 such that--
</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) in 2020, the quantity of greenhouse gas 
        emissions from capped sources does not exceed 80 percent of the 
        quantity of greenhouse gas emissions from such sources in 
        2005;</DELETED>
        <DELETED>    ``(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; 
        and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Definition of Greenhouse Gas Emissions From Such 
Sources in 2005.--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.</DELETED>

<DELETED>``SEC. 704. SUPPLEMENTAL POLLUTION REDUCTIONS.</DELETED>

<DELETED>    ``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 a 
percentage specified in section 771(d) 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 753(a)(2).</DELETED>

<DELETED>``SEC. 705. REVIEW AND PROGRAM RECOMMENDATIONS.</DELETED>

<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) an analysis of key findings based on up-to-
        date scientific information and data relevant to global climate 
        change;</DELETED>
        <DELETED>    ``(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 Clean 
        Energy Jobs and American Power Act (and the amendments made by 
        that Act); and</DELETED>
        <DELETED>    ``(3) an analysis of the status of worldwide 
        greenhouse gas reduction efforts, including implementation of 
        the Clean Energy Jobs and American Power 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.</DELETED>
<DELETED>    ``(b) Exception.--Subsection (a)(3) shall not apply to the 
first report submitted under subsection (a).</DELETED>
<DELETED>    ``(c) Latest Scientific Information.--The analysis 
required under subsection (a)(1) shall--</DELETED>
        <DELETED>    ``(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 365 of the Clean 
        Energy Jobs and American Power Act, and Federal agencies, and 
        the European Union's global temperature data 
        assessment;</DELETED>
        <DELETED>    ``(2) review trends and projections for--
        </DELETED>
                <DELETED>    ``(A) global and country-specific annual 
                emissions of greenhouse gases, and cumulative 
                greenhouse gas emissions produced between 1850 and the 
                present, including--</DELETED>
                        <DELETED>    ``(i) global cumulative emissions 
                        of anthropogenic greenhouse gases;</DELETED>
                        <DELETED>    ``(ii) global annual emissions of 
                        anthropogenic greenhouse gases; and</DELETED>
                        <DELETED>    ``(iii) by country, annual total, 
                        annual per capita, and cumulative anthropogenic 
                        emissions of greenhouse gases for the top 50 
                        emitting nations;</DELETED>
                <DELETED>    ``(B) significant changes, both globally 
                and by region, in annual net non-anthropogenic 
                greenhouse gas emissions from natural sources, 
                including permafrost, forests, or oceans;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(D) major climate forcing factors, such 
                as aerosols;</DELETED>
                <DELETED>    ``(E) global average temperature, 
                expressed as seasonal and annual averages in land, 
                ocean, and land-plus-ocean averages; and</DELETED>
                <DELETED>    ``(F) sea level rise;</DELETED>
        <DELETED>    ``(3) assess the current and potential impacts of 
        global climate change on--</DELETED>
                <DELETED>    ``(A) human populations, including impacts 
                on public health, economic livelihoods, subsistence, 
                tribal culture, human infrastructure, and displacement 
                or permanent relocation due to flooding, severe 
                weather, extended drought, erosion, or other ecosystem 
                changes;</DELETED>
                <DELETED>    ``(B) freshwater systems, including water 
                resources for human consumption and agriculture and 
                natural and managed ecosystems, flood and drought 
                risks, and relative humidity;</DELETED>
                <DELETED>    ``(C) the carbon cycle, including impacts 
                related to the thawing of permafrost, the frequency and 
                intensity of wildfire, and terrestrial and ocean carbon 
                sinks;</DELETED>
                <DELETED>    ``(D) ecosystems and animal and plant 
                populations, including impacts on species abundance, 
                phenology, and distribution;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(F) the cryosphere, including effects on 
                ice sheet mass balance, mountain glacier mass balance, 
                and sea-ice extent and volume;</DELETED>
                <DELETED>    ``(G) changes in the intensity, frequency, 
                or distribution of severe weather events, including 
                precipitation, tropical cyclones, tornadoes, and severe 
                heat waves;</DELETED>
                <DELETED>    ``(H) agriculture and forest systems; 
                and</DELETED>
                <DELETED>    ``(I) any other indicators the 
                Administrator deems appropriate;</DELETED>
        <DELETED>    ``(4) summarize any significant socioeconomic 
        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--
        </DELETED>
                <DELETED>    ``(A) public health;</DELETED>
                <DELETED>    ``(B) economic livelihoods, subsistence, 
                and tribal culture;</DELETED>
                <DELETED>    ``(C) displacement or permanent relocation 
                due to flooding, severe weather, extended drought, or 
                other ecosystem changes;</DELETED>
                <DELETED>    ``(D) human infrastructure, including 
                coastal infrastructure vulnerability to extreme events 
                and sea level rise, river floodplain infrastructure, 
                and sewer and water management systems;</DELETED>
                <DELETED>    ``(E) agriculture and forests, including 
                effects on potential growing season, distribution, and 
                yield;</DELETED>
                <DELETED>    ``(F) water resources for human 
                consumption, agriculture and natural and managed 
                ecosystems, flood and drought risks, and relative 
                humidity;</DELETED>
                <DELETED>    ``(G) energy supply and use; and</DELETED>
                <DELETED>    ``(H) transportation;</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) both monetized and non-monetized 
                losses;</DELETED>
                <DELETED>    ``(B) potential nonlinear, abrupt, or 
                essentially irreversible changes in the climate 
                system;</DELETED>
                <DELETED>    ``(C) potential nonlinear increases in the 
                cost of impacts;</DELETED>
                <DELETED>    ``(D) potential low-probability, high 
                impact events; and</DELETED>
                <DELETED>    ``(E) whether impacts are transitory or 
                essentially permanent; and</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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; 
                and</DELETED>
                <DELETED>    ``(B) identify and assess--</DELETED>
                        <DELETED>    ``(i) significant residual risks 
                        not avoided by the thresholds described in 
                        subparagraph (A);</DELETED>
                        <DELETED>    ``(ii) alternative thresholds or 
                        targets that may more effectively limit the 
                        risks identified pursuant to clause (i); 
                        and</DELETED>
                        <DELETED>    ``(iii) thresholds above those 
                        described in subparagraph (A) which 
                        significantly increase the risk of certain 
                        impacts or render them essentially 
                        permanent.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) quantification of emissions and emission 
        reductions by entities participating in the pollution reduction 
        and investment program under this title;</DELETED>
        <DELETED>    ``(2) quantification of emissions and emission 
        reductions by entities participating in the offset program 
        under this title;</DELETED>
        <DELETED>    ``(3) quantification of emission and emission 
        reductions by entities regulated by performance 
        standards;</DELETED>
        <DELETED>    ``(4) quantification of aggregate net emissions 
        and emission reductions by the United States; and</DELETED>
        <DELETED>    ``(5) quantification of global changes in net 
        emissions and in sources and sinks of greenhouse 
        gases.</DELETED>
<DELETED>    ``(e) Status of Greenhouse Gas Reduction Efforts.--The 
analysis required under subsection (a)(3) shall address--</DELETED>
        <DELETED>    ``(1) whether the programs under the Clean Energy 
        Jobs and American Power Act (and the amendments made by that 
        Act) and other Federal statutes are resulting in sufficient 
        United States greenhouse gas emission reductions to meet the 
        emissions reduction goals described in section 702, taking into 
        account the use of offsets; and</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) atmospheric greenhouse gas 
                concentrations above 450 parts per million carbon 
                dioxide equivalent;</DELETED>
                <DELETED>    ``(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; 
                and</DELETED>
                <DELETED>    ``(C) other temperature or greenhouse gas 
                thresholds identified pursuant to subsection 
                (c)(6)(B).</DELETED>
<DELETED>    ``(f) Recommendations.--</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) improve the characterization of 
                changes in the earth-climate system and impacts of 
                global climate change;</DELETED>
                <DELETED>    ``(B) better inform decision making and 
                actions related to global climate change;</DELETED>
                <DELETED>    ``(C) mitigate risks to natural and social 
                systems; and</DELETED>
                <DELETED>    ``(D) design policies to better account 
                for climate risks.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) the quantity of additional 
                reductions required to meet the emissions reduction 
                goals in section 702;</DELETED>
                <DELETED>    ``(B) the quantity of additional 
                reductions in global greenhouse gas emissions needed to 
                avoid the concentration and temperature thresholds 
                identified in subsection (e); and</DELETED>
                <DELETED>    ``(C) possible strategies and approaches 
                for achieving additional reductions.</DELETED>
<DELETED>    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such sums as 
may be necessary.</DELETED>

<DELETED>``SEC. 706. NATIONAL ACADEMY REVIEW.</DELETED>

<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) a review of the most recent report and 
        recommendations issued under section 705; and</DELETED>
        <DELETED>    ``(2) an analysis of technologies to achieve 
        reductions in greenhouse gas emissions.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Technological Information.--The analysis required 
under subsection (a)(2) shall--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) include the participation of technical 
        experts from relevant private industry sectors;</DELETED>
        <DELETED>    ``(3) review the current and future projected 
        deployment of technologies and practices in the United States 
        that reduce or limit greenhouse gas emissions, including--
        </DELETED>
                <DELETED>    ``(A) technologies for capture and 
                sequestration of greenhouse gases;</DELETED>
                <DELETED>    ``(B) technologies to improve energy 
                efficiency;</DELETED>
                <DELETED>    ``(C) low- or zero-greenhouse gas emitting 
                energy technologies;</DELETED>
                <DELETED>    ``(D) low- or zero-greenhouse gas emitting 
                fuels;</DELETED>
                <DELETED>    ``(E) biological sequestration practices 
                and technologies; and</DELETED>
                <DELETED>    ``(F) any other technologies the Academy 
                deems relevant; and</DELETED>
        <DELETED>    ``(4) review and compare the emissions reduction 
        potential, commercial viability, market penetration, investment 
        trends, and deployment of the technologies described in 
        paragraph (3), including--</DELETED>
                <DELETED>    ``(A) the need for additional research and 
                development, including publicly funded research and 
                development;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(C) an evaluation of any substantial 
                technological, legal, or market-based barriers to 
                commercial deployment.</DELETED>
<DELETED>    ``(d) Recommendations.--</DELETED>
        <DELETED>    ``(1) Latest scientific information.--Based on the 
        review described in subsection (a)(1), the Academy shall 
        identify actions that could be taken to--</DELETED>
                <DELETED>    ``(A) improve the characterization of 
                changes in the earth-climate system and impacts of 
                global climate change;</DELETED>
                <DELETED>    ``(B) better inform decision making and 
                actions related to global climate change;</DELETED>
                <DELETED>    ``(C) mitigate risks to natural and social 
                systems;</DELETED>
                <DELETED>    ``(D) design policies to better account 
                for climate risks; and</DELETED>
                <DELETED>    ``(E) improve the accuracy and reliability 
                of capabilities to monitor, report, and verify 
                greenhouse gas emissions reduction efforts.</DELETED>
        <DELETED>    ``(2) Technological information.--Based on the 
        analysis described in subsection (a)(2), the Academy shall 
        identify--</DELETED>
                <DELETED>    ``(A) additional emission reductions that 
                may be possible as a result of technologies described 
                in the analysis;</DELETED>
                <DELETED>    ``(B) barriers to the deployment of such 
                technologies; and</DELETED>
                <DELETED>    ``(C) actions that could be taken to speed 
                deployment of such technologies.</DELETED>
        <DELETED>    ``(3) Status of greenhouse gas reduction 
        efforts.--Based on the review described in subsection (a)(1), 
        the Academy shall identify--</DELETED>
                <DELETED>    ``(A) the quantity of additional 
                reductions required to meet the emissions reduction 
                goals described in section 702; and</DELETED>
                <DELETED>    ``(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).</DELETED>
<DELETED>    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such sums as 
may be necessary.</DELETED>

<DELETED>``SEC. 707. PRESIDENTIAL RESPONSE AND 
              RECOMMENDATIONS.</DELETED>

<DELETED>    ``Not later than July 1, 2015, and every 4 years 
thereafter--</DELETED>
        <DELETED>    ``(1) 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; and</DELETED>
        <DELETED>    ``(2) in the event that the National Academy of 
        Sciences has concluded, in the most recent report submitted 
        under section 706, that the United States will not achieve the 
        necessary domestic greenhouse gas emission reductions, or that 
        global actions will not maintain safe global average surface 
        temperature and atmospheric greenhouse gas concentration 
        thresholds, the President shall submit to Congress a plan 
        identifying domestic and international actions that will 
        achieve necessary additional greenhouse gas reductions, 
        including any recommendations for legislative action.</DELETED>

     <DELETED>``PART B--DESIGNATION AND REGISTRATION OF GREENHOUSE 
                            GASES</DELETED>

``SEC. 711. DESIGNATION OF GREENHOUSE GASES.

<DELETED>    ``(a) Greenhouse Gases.--For purposes of this title, the 
following are greenhouse gases:</DELETED>
        <DELETED>    ``(1) Carbon dioxide.</DELETED>
        <DELETED>    ``(2) Methane.</DELETED>
        <DELETED>    ``(3) Nitrous oxide.</DELETED>
        <DELETED>    ``(4) Sulfur hexafluoride.</DELETED>
        <DELETED>    ``(5) Hydrofluorocarbons from a chemical 
        manufacturing process at an industrial stationary 
        source.</DELETED>
        <DELETED>    ``(6) Any perfluorocarbon, except as otherwise 
        provided in section 714.</DELETED>
        <DELETED>    ``(7) Nitrogen trifluoride.</DELETED>
        <DELETED>    ``(8) Any other anthropogenic gas designated as a 
        greenhouse gas by the Administrator under this 
        section.</DELETED>
<DELETED>    ``(b) Determination on Administrator's Initiative.--The 
Administrator shall, by rule--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) determine the carbon dioxide equivalent 
        value for each gas with respect to which the Administrator 
        makes an affirmative determination under paragraph 
        (1);</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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; and</DELETED>
        <DELETED>    ``(5) specify the appropriate compliance 
        obligations under this title for each gas designated as a 
        greenhouse gas under paragraph (4).</DELETED>
<DELETED>    ``(c) Petitions To Designate a Greenhouse Gas.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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 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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(6) Determination.--Not later than 2 years after 
        receipt of a complete petition, the Administrator shall, after 
        notice and an opportunity for comment--</DELETED>
                <DELETED>    ``(A) issue and publish in the Federal 
                Register--</DELETED>
                        <DELETED>    ``(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; and</DELETED>
                        <DELETED>    ``(ii) an explanation of the 
                        decision; or</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Science Advisory Board Consultation.--</DELETED>
        <DELETED>    ``(1) Consultation.--The Administrator shall--
        </DELETED>
                <DELETED>    ``(A) give notice to the Science Advisory 
                Board prior to making a determination under subsection 
                (b)(1), (c)(6), or (e)(2)(B);</DELETED>
                <DELETED>    ``(B) consider the written recommendations 
                of the Science Advisory Board under paragraph (2) 
                regarding the determination; and</DELETED>
                <DELETED>    ``(C) consult with the Science Advisory 
                Board regarding such determination, including 
                consultation subsequent to receipt of such written 
                recommendations.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) formulate recommendations regarding 
                such determination, subject to a peer review process; 
                and</DELETED>
                <DELETED>    ``(B) submit such recommendations in 
                writing to the Administrator.</DELETED>
<DELETED>    ``(e) Manufacturing and Emission Notices.--</DELETED>
        <DELETED>    ``(1) Notice requirement.--</DELETED>
                <DELETED>    ``(A) In general.--Except as otherwise 
                provided in section 714, 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--</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(ii) the Administrator has 
                        determined that 1 metric ton of such gas does 
                        not make a contribution to global warming that 
                        is equal to or greater than that made by 1 
                        metric ton of carbon dioxide; or</DELETED>
                        <DELETED>    ``(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 notice or a substantially similar notice 
                        is incomplete.</DELETED>
                <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(2) Review and action by the administrator.--
        </DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) issue and publish in the 
                        Federal Register 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 and an explanation of the 
                        decision; or</DELETED>
                        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--
</DELETED>
        <DELETED>    ``(1) requirements for the contents of a petition 
        submitted under subsection (c);</DELETED>
        <DELETED>    ``(2) requirements for the contents of a notice 
        required under subsection (e); and</DELETED>
        <DELETED>    ``(3) methods and standards for evaluating the 
        carbon dioxide equivalent value of a gas.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(h) Savings Clause.--Nothing in this section shall be 
interpreted to relieve any person from complying with the requirements 
of section 612.</DELETED>

<DELETED>``SEC. 712. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE 
              GASES.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Initial Value.--Except as provided by the 
Administrator under this section or section 711--</DELETED>
        <DELETED>    ``(1) the carbon dioxide equivalent value of 
        greenhouse gases for purposes of this Act shall be as 
        follows:</DELETED>

                        `` CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASES
----------------------------------------------------------------------------------------------------------------
              Greenhouse gas (1 metric ton)                       Carbon dioxide equivalent (metric tons)
----------------------------------------------------------------------------------------------------------------
Carbon dioxide                                            1
----------------------------------------------------------------------------------------------------------------
Methane                                                   25
----------------------------------------------------------------------------------------------------------------
Nitrous oxide                                             298
----------------------------------------------------------------------------------------------------------------
HFC-23                                                    14,800
----------------------------------------------------------------------------------------------------------------
HFC-125                                                   3,500
----------------------------------------------------------------------------------------------------------------
HFC-134a                                                  1,430
----------------------------------------------------------------------------------------------------------------
HFC-143a                                                  4,470
----------------------------------------------------------------------------------------------------------------
HFC-152a                                                  124
----------------------------------------------------------------------------------------------------------------
HFC-227ea                                                 3,220
----------------------------------------------------------------------------------------------------------------
HFC-236fa                                                 9,810
----------------------------------------------------------------------------------------------------------------
HFC-4310mee                                               1,640
----------------------------------------------------------------------------------------------------------------
CF4                                                       7,390
----------------------------------------------------------------------------------------------------------------
C2F6                                                      12,200
----------------------------------------------------------------------------------------------------------------
C4F10                                                     8,860
----------------------------------------------------------------------------------------------------------------
C6F14                                                     9,300
----------------------------------------------------------------------------------------------------------------
SF6                                                       22,800
----------------------------------------------------------------------------------------------------------------
NF3                                                       17,200
----------------------------------------------------------------------------------------------------------------

        <DELETED>; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Periodic Review.--</DELETED>
        <DELETED>    ``(1) Not later than February 1, 2017, and (except 
        as provided in paragraph (3)) not less than every 5 years 
        thereafter, the Administrator shall--</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(B) publish in the Federal Register the 
                results of that review and any revisions.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 713. GREENHOUSE GAS REGISTRY.</DELETED>

<DELETED>    ``(a) Definitions.--For purposes of this 
section:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Reporting entity.--The term `reporting 
        entity' means--</DELETED>
                <DELETED>    ``(A) a covered entity;</DELETED>
                <DELETED>    ``(B) an entity that--</DELETED>
                        <DELETED>    ``(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; 
                        and</DELETED>
                        <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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; or</DELETED>
                <DELETED>    ``(E) any entity that delivers electricity 
                to an energy-intensive facility in an industrial sector 
                that meets the energy or greenhouse gas intensity 
                criteria in section 764(b)(3)(B)(i).</DELETED>
<DELETED>    ``(b) Regulations.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) require reporting entities to submit 
                to the Administrator data on--</DELETED>
                        <DELETED>    ``(i) greenhouse gas emissions in 
                        the United States;</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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; and</DELETED>
                        <DELETED>    ``(iv) the capture and 
                        sequestration of greenhouse gases;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(C) require reporting of electricity 
                delivered to industrial sources in energy-intensive 
                industries;</DELETED>
                <DELETED>    ``(D) ensure the completeness, 
                consistency, transparency, accuracy, precision, and 
                reliability of such data;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(F) take into account the latest 
                scientific research;</DELETED>
                <DELETED>    ``(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--
                </DELETED>
                        <DELETED>    ``(i) continuous monitoring 
                        systems for fuel flow or emissions, such as 
                        continuous emission monitoring 
                        systems;</DELETED>
                        <DELETED>    ``(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; 
                        or</DELETED>
                        <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(I) include methods for minimizing 
                double reporting and avoiding irreconcilable double 
                reporting of greenhouse gas emissions;</DELETED>
                <DELETED>    ``(J) establish measurement protocols for 
                carbon capture and sequestration systems, taking into 
                consideration the regulations promulgated under section 
                813;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(L) include requirements for keeping 
                records supporting or related to, and protocols for 
                auditing, submitted data;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) its nondissemination is 
                        vital to the national security of the United 
                        States, as determined by the President; 
                        or</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(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; and</DELETED>
                                <DELETED>    ``(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 equivalent to protections 
                                applicable to the Federal 
                                Government;</DELETED>
                <DELETED>    ``(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--
                </DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(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; or</DELETED>
                                <DELETED>    ``(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; and</DELETED>
                        <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(P) require the designation of a 
                designated representative for each reporting 
                entity;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Timing.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

``SEC. 714. PERFLUOROCARBON REGULATION.

<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Consumption.--The term `consumption' means, 
        with respect to perfluorocarbon, the quantity of that substance 
        produced in the United States, plus the quantity imported, 
        minus the quantity exported.</DELETED>
        <DELETED>    ``(2) Produce; produced; production.--</DELETED>
                <DELETED>    ``(A) In general.--The terms `produce', 
                `produced', and `production' mean the manufacture of 
                perfluorocarbon, or the emission of perfluorocarbon 
                from other industrial sources.</DELETED>
                <DELETED>    ``(B) Exclusions.--The terms `produce', 
                `produced', and `production' do not include--</DELETED>
                        <DELETED>    ``(i) the manufacture of 
                        perfluorocarbon that is used and entirely 
                        consumed (except for trace quantities) in the 
                        manufacture of other chemicals or 
                        products;</DELETED>
                        <DELETED>    ``(ii) the reuse or recycling of 
                        perfluorocarbon; or</DELETED>
                        <DELETED>    ``(iii) the emission of 
                        perfluorocarbon from use in production 
                        processes, such as electronics 
                        manufacturing.</DELETED>
                <DELETED>    ``(C) Offset credit.--The term `offset 
                credit' means reduction of perfluorocarbon emissions by 
                destruction or conversionary use of perfluorocarbons 
                during production processes, such as electronics 
                manufacturing.</DELETED>
<DELETED>    ``(b) Determination by Administrator.--As soon as 
practicable after the date of enactment of this section, the 
Administrator shall determine, based on such criteria as the 
Administrator determines to be appropriate, whether emissions from the 
production and consumption of perfluorocarbon should be regulated in 
accordance with--</DELETED>
        <DELETED>    ``(1) this section; or</DELETED>
        <DELETED>    ``(2) the other applicable provisions of this 
        title.</DELETED>
<DELETED>    ``(c) Effect of Determination.--On a determination by the 
Administrator under subsection (a)(1) that perfluorocarbon emissions 
described in subsection (b) should be regulated in accordance with this 
section--</DELETED>
        <DELETED>    ``(1) emissions from the production of 
        perfluorocarbon shall be subject to the best available control 
        technology (as defined in section 169) for each greenhouse gas 
        designated in section 711 at facilities emitting 25,000 metric 
        tons of carbon dioxide equivalent perfluorocarbon emissions or 
        more; and</DELETED>
        <DELETED>    ``(2) the consumption of perfluorocarbon shall be 
        phased down in accordance with this section.</DELETED>
<DELETED>    ``(d) Use and Consumption.--</DELETED>
        <DELETED>    ``(1) Phase-Downs.--</DELETED>
                <DELETED>    ``(A) Consumption.--</DELETED>
                        <DELETED>    ``(i) In general.--With respect to 
                        perfluorocarbon, not later than 18 months after 
                        the date of enactment of this section, the 
                        Administrator shall promulgate regulations 
                        phasing down, in accordance with this section--
                        </DELETED>
                                <DELETED>    ``(I) the consumption of 
                                perfluorocarbon in the United States; 
                                and</DELETED>
                                <DELETED>    ``(II) the importation 
                                into the United States of products 
                                containing any 
                                perfluorocarbon.</DELETED>
                        <DELETED>    ``(ii) Prohibition.--Effective 
                        beginning on January 1, 2014, it shall be 
                        unlawful for any person to produce any 
                        perfluorocarbon, import any perfluorocarbon, or 
                        import any product containing perfluorocarbon, 
                        unless the person holds 1 consumption allowance 
                        or 1 offset credit for each carbon dioxide 
                        equivalent ton of the perfluorocarbon 
                        destroyed.</DELETED>
                        <DELETED>    ``(iii) Retired allowances.--Any 
                        person who exports a perfluorocarbon for which 
                        a use allowance was retired may receive a 
                        refund of that allowance from the Administrator 
                        after the date of export.</DELETED>
                <DELETED>    ``(B) Integrity of limits.--To maintain 
                the integrity of the perfluorocarbon limits under this 
                paragraph, the Administrator may limit, by regulation, 
                the percentage of the compliance obligation of any 
                person that may be met through the consumption of 
                offset credits or banked allowances.</DELETED>
                <DELETED>    ``(C) Counting of violations.--Each 
                consumption allowance or offset credit not held as 
                required by this subsection shall be a separate 
                violation of this section.</DELETED>
        <DELETED>    ``(2) Schedule.--Pursuant to the regulations 
        promulgated under paragraph (1)(A), the number of 
        perfluorocarbon consumption allowances available for 
        distribution for each calendar year beginning in calendar year 
        2014 shall be established by the Administrator.</DELETED>
        <DELETED>    ``(3) Baseline.--</DELETED>
                <DELETED>    ``(A) In general.--Not later than 1 year 
                after the date of enactment of this section, the 
                Administrator shall promulgate regulations to establish 
                the baseline for purposes of paragraph (2).</DELETED>
                <DELETED>    ``(B) Calculation.--The baseline shall 
                be--</DELETED>
                        <DELETED>    ``(i) the sum, expressed in metric 
                        tons of carbon dioxide equivalents, of--
                        </DELETED>
                                <DELETED>    ``(I) the average of the 
                                annual consumption of all 
                                perfluorocarbon in each of calendar 
                                years 2004, 2005, and 2006; 
                                and</DELETED>
                                <DELETED>    ``(II) the annual average 
                                quantity of all perfluorocarbon 
                                contained in imported products during 
                                the period of calendar years 2004, 
                                2005, and 2006; or</DELETED>
                        <DELETED>    ``(ii) such alternative quantity 
                        of carbon dioxide equivalents that, as 
                        determined by the Administrator, more 
                        accurately reflects the average annual quantity 
                        of perfluorocarbon consumed in and imported 
                        into the United States (including in products), 
                        as based on information compiled by the 
                        Administrator.</DELETED>
        <DELETED>    ``(4) Distribution of allowances.--The 
        Administrator shall determine an allocation, and procedures for 
        the distribution, transfer, and exchange of allowances for the 
        consumption of perfluorocarbon under this section, including a 
        determination of whether allowances may be auctioned, sold, or 
        allocated and distributed at no cost, transferred, or exchanged 
        for domestic or international consumption, in accordance with 
        such criteria as the Administrator considers to be 
        appropriate.</DELETED>
<DELETED>    ``(e) Implementation.--To the maximum extent practicable, 
the Administrator shall implement this section in accordance with the 
procedures described in section 619.</DELETED>
<DELETED>    ``(f) Deadlines for Compliance.--The Administrator shall 
promulgate regulations for perfluorocarbon in accordance with this 
section by not later than October 31, 2013.</DELETED>

               <DELETED>``PART C--PROGRAM RULES</DELETED>

<DELETED>``SEC. 721. EMISSION ALLOWANCES.</DELETED>

<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Legal Status of Emission Allowances.--</DELETED>
        <DELETED>    ``(1) In general.--An allowance established by the 
        Administrator under this title does not constitute a property 
        right.</DELETED>
        <DELETED>    ``(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, offset credits, or term offset 
        credits.</DELETED>
        <DELETED>    ``(3) Other provisions unaffected.--Except as 
        otherwise specified in this Act, nothing in this Act relating 
        to allowances, offset credits, or term 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.</DELETED>
<DELETED>    ``(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 (16 U.S.C. 
791a et seq.) 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.</DELETED>
<DELETED>    ``(e) Allowances for Each Calendar Year.--</DELETED>
        <DELETED>    ``(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:</DELETED>

``Calendar Year                          Emissions Allowances (MtCO2e)
  2012.................................  4,627
  2013.................................  4,544
  2014.................................  5,099
  2015.................................  5,003
  2016.................................  5,482
  2017.................................  5,261
  2018.................................  5,132
  2019.................................  5,002
  2020.................................  4,873
  2021.................................  4,739
  2022.................................  4,605
  2023.................................  4,471
  2024.................................  4,337
  2025.................................  4,203
  2026.................................  4,069
  2027.................................  3,935
  2028.................................  3,801
  2029.................................  3,667
  2030.................................  3,533
  2031.................................  3,408
  2032.................................  3,283
  2033.................................  3,158
  2034.................................  3,033
  2035.................................  2,908
  2036.................................  2,784
  2037.................................  2,659
  2038.................................  2,534
  2039.................................  2,409
  2040.................................  2,284
  2041.................................  2,159
  2042.................................  2,034
  2043.................................  1,910
  2044.................................  1,785
  2045.................................  1,660
  2046.................................  1,535
  2047.................................  1,410
  2048.................................  1,285
  2049.................................  1,160
  2050.................................  1,035
 

        <DELETED>    ``(2) Revision.--</DELETED>
                <DELETED>    ``(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--
                </DELETED>
                        <DELETED>    ``(i) United States greenhouse gas 
                        emissions in 2005 were other than 7,206 million 
                        metric tons carbon dioxide 
                        equivalent;</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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; or</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Adjustment formula.--</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(I) United States 
                                greenhouse gas emissions in 2005, 
                                expressed in tons of carbon dioxide 
                                equivalent;</DELETED>
                                <DELETED>    ``(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; and</DELETED>
                                <DELETED>    ``(III) the percentage set 
                                forth for that calendar year in section 
                                703(a), or determined under clause (ii) 
                                of this subparagraph.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Compensatory Allowance.--</DELETED>
        <DELETED>    ``(1) In general.--The regulations promulgated 
        under subsection (h) shall provide for the establishment and 
        distribution of compensatory allowances for--</DELETED>
                <DELETED>    ``(A) the destruction, in 2012 or later, 
                of fluorinated gases that are greenhouse gases if--
                </DELETED>
                        <DELETED>    ``(i) allowances or offset credits 
                        were retired for their production or 
                        importation; and</DELETED>
                        <DELETED>    ``(ii) such gases are not required 
                        to be destroyed under any other provision of 
                        law;</DELETED>
                <DELETED>    ``(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; 
                and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Establishment and distribution.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Source of allowances.--Compensatory 
                allowances established under this subsection shall not 
                be emission allowances established under subsection 
                (a).</DELETED>
                <DELETED>    ``(C) Identification numbers.--The 
                Administrator shall assign to each compensatory 
                allowance established under subparagraph (A) a unique 
                identification number.</DELETED>
        <DELETED>    ``(3) Definitions.--For purposes of this 
        subsection--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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; 
                and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Feedstock emissions study.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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 or their precursors 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 
                leakage.</DELETED>
<DELETED>    ``(g) Fluorinated Gases Assessment.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than March 31, 2014, 
        the Administrator shall conduct an assessment of the regulation 
        of non-hydrofluorocarbon fluorinated gases under this title 
        (excluding perfluorocarbon) to determine whether the most 
        appropriate point of regulation of those gases is at--
        </DELETED>
                <DELETED>    ``(A) the gas manufacturer or importer 
                level; or</DELETED>
                <DELETED>    ``(B) the downstream source of the 
                emissions.</DELETED>
        <DELETED>    ``(2) Modification of definition.--If the 
        Administrator determines, based on consideration of 
        environmental effectiveness, cost-effectiveness, administrative 
        feasibility, extent of coverage of emissions, and 
        competitiveness considerations, that emissions of non-
        hydrofluorocarbon fluorinated gases (excluding 
        perfluorocarbons) can best be regulated by designating 
        downstream emission sources as covered entities with compliance 
        obligations under section 722, the Administrator shall--
        </DELETED>
                <DELETED>    ``(A) after providing notice and an 
                opportunity for comment, modify the definition of the 
                term `covered entity' with respect to fluorinated gases 
                (other than hydrofluorocarbons and perfluorocarbons) 
                accordingly; and</DELETED>
                <DELETED>    ``(B) establish such requirements as are 
                necessary to ensure compliance by the covered entities 
                with the requirements of this title.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 722. PROHIBITION OF EXCESS EMISSIONS.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) petroleum-based or coal-based liquid 
                fuel;</DELETED>
                <DELETED>    ``(B) natural gas liquid;</DELETED>
                <DELETED>    ``(C) renewable biomass or gas derived 
                from renewable biomass; or</DELETED>
                <DELETED>    ``(D) petroleum coke.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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 or released as 
        fugitive emissions in the production of fluorinated 
        gas.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) the combustion of petroleum-based or 
                coal-based liquid fuel;</DELETED>
                <DELETED>    ``(B) the combustion of natural gas 
                liquid;</DELETED>
                <DELETED>    ``(C) the combustion of renewable biomass 
                or gas derived from renewable biomass;</DELETED>
                <DELETED>    ``(D) the combustion of petroleum coke; 
                or</DELETED>
                <DELETED>    ``(E) the use of any fluorinated gas that 
                is a greenhouse gas purchased for use at that covered 
                entity, except for nitrogen trifluoride.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) petroleum-based or coal-based liquid 
                fuel;</DELETED>
                <DELETED>    ``(B) natural gas liquid;</DELETED>
                <DELETED>    ``(C) renewable biomass or gas derived 
                from renewable biomass; or</DELETED>
                <DELETED>    ``(D) petroleum coke.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(9) R&D facilities.--</DELETED>
                <DELETED>    ``(A) In general.--For a qualified R&D 
                facility that emitted 25,000 tons per year or more 
                carbon dioxide equivalent in the previous calendar 
                year, 1 emission allowance for each ton of carbon 
                dioxide equivalent of greenhouse gas that such facility 
                emitted in the previous calendar year.</DELETED>
                <DELETED>    ``(B) Treatment.--A qualified R&D facility 
                shall be treated as a separate covered entity solely 
                for purposes of applying the requirements of this 
                subsection.</DELETED>
        <DELETED>    ``(10) Algae-based fuels.--Where carbon dioxide 
        (or another greenhouse gas) is used as an input in the 
        production of algae-based fuels, the Administrator shall ensure 
        that allowances are required to be held either for the carbon 
        dioxide used to grow the algae or for the carbon dioxide 
        emitted from combustion of the fuel produced from such algae, 
        but not for both.</DELETED>
        <DELETED>    ``(11) 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 limits on emissions.</DELETED>
        <DELETED>    ``(12) 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.</DELETED>
        <DELETED>    ``(13) Natural gas liquids.--Notwithstanding 
        subsection (a), if the owner or operator of a covered entity 
        described in section 700(13)(B) that produces natural gas 
        liquids does not take ownership of the liquids, and is not 
        responsible for the distribution or use of the liquids in 
        commerce, the owner of the liquids shall be responsible for 
        compliance with this section, section 723, and other relevant 
        sections of this title with respect to such liquids. In the 
        regulations promulgated under section 721, the Administrator 
        shall include such provisions with respect to such liquids as 
        the Administrator determines are appropriate to determine and 
        ensure compliance, and to penalize noncompliance. In such a 
        case, the owner of the covered entity shall provide to the 
        Administrator, in a manner to be determined by the 
        Administrator, information regarding the quantity and ownership 
        of liquids produced at the covered entity.</DELETED>
        <DELETED>    ``(14) 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.</DELETED>
<DELETED>    ``(c) Phase-In of Prohibition.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Additional Methods.--In addition to using the method 
of compliance described in subsection (b), a covered entity may do the 
following:</DELETED>
        <DELETED>    ``(1) Offset credits.--</DELETED>
                <DELETED>    ``(A) Credits.--</DELETED>
                        <DELETED>    ``(i) In general.--Covered 
                        entities collectively may, in accordance with 
                        this paragraph, use offset credits to 
                        demonstrate compliance for up to a maximum of 
                        2,000,000,000 tons of greenhouse gas emissions 
                        annually.</DELETED>
                        <DELETED>    ``(ii) Demonstration of 
                        compliance.--In any calendar year, a covered 
                        entity may 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), up to a total number of offset credits 
                        described in subparagraph (B).</DELETED>
                <DELETED>    ``(B) Applicable percentage.--</DELETED>
                        <DELETED>    ``(i) In general.--The total 
                        number of offset credits referred to in 
                        subparagraph (A)(ii) for a covered entity for a 
                        given calendar year shall be determined by--
                        </DELETED>
                                <DELETED>    ``(I) dividing--</DELETED>
                                        <DELETED>    ``(aa) the tons of 
                                        carbon dioxide equivalent of 
                                        greenhouse gas emissions of the 
                                        covered entity (except for the 
                                        types of emissions excluded 
                                        under subparagraphs (A) through 
                                        (D) of subsection (b)(1), 
                                        subparagraphs (A) through (E) 
                                        of subsection (b)(6), and 
                                        subparagraphs (A) through (D) 
                                        of subsection (b)(7)) and 
                                        attributable greenhouse gas 
                                        emissions for the year before 
                                        the preceding calendar year; 
                                        by</DELETED>
                                        <DELETED>    ``(bb) the sum of 
                                        the tons of carbon dioxide 
                                        equivalent of greenhouse gas 
                                        emissions of all covered 
                                        entities (except for the types 
                                        of emissions excluded under 
                                        subparagraphs (A) through (D) 
                                        of subsection (b)(1), 
                                        subparagraphs (A) through (E) 
                                        of subsection (b)(6), and 
                                        subparagraphs (A) through (D) 
                                        of subsection (b)(7)) and 
                                        attributable greenhouse gas 
                                        emissions for the year before 
                                        the preceding calendar year; 
                                        and</DELETED>
                                <DELETED>    ``(II) multiplying the 
                                quotient obtained under subclause (I) 
                                by 2,000,000,000.</DELETED>
                        <DELETED>    ``(ii) Applicability.--Clause (i) 
                        shall apply to a covered entity (including a 
                        covered entity that commenced operation during 
                        the preceding calendar year) even if the 
                        covered entity had no greenhouse gas emissions 
                        or attributable greenhouse gas emissions 
                        described in that clause.</DELETED>
                        <DELETED>    ``(iii) Offset credits.--Not more 
                        than \3/4\ of the applicable percentage under 
                        this paragraph may be used by holding domestic 
                        offset credits, and not more than \1/4\ of the 
                        applicable percentage under this paragraph may 
                        be used by holding international offset 
                        credits, except as provided in subparagraph 
                        (C).</DELETED>
                <DELETED>    ``(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 allowance prices, are likely to offset 
                less than 900,000,000 tons of greenhouse gas emissions 
                (measured in tons of carbon dioxide equivalents), the 
                Administrator shall increase the percent of emissions 
                that can be offset through the use of international 
                offset credits (and decrease the percent of emissions 
                that can be allowed through the use of domestic offset 
                credits by the same amount) to reflect the amount that 
                1,500,000,000 exceeds the number of domestic offset 
                credits the Administrator determines is available for 
                that year, up to a maximum of 750,000,000 tons of 
                greenhouse gas emissions.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(E) President's recommendation.--The 
                President may make a recommendation to Congress as to 
                whether the number 2,000,000,000 specified in 
                subparagraphs (A) and (B) should be increased or 
                decreased.</DELETED>
        <DELETED>    ``(2) Term offset credits.--</DELETED>
                <DELETED>    ``(A) In general.--Covered entities may, 
                in accordance with this paragraph, use non-expired term 
                offset credits instead of domestic offset credits for 
                purposes of temporarily demonstrating compliance with 
                this section.</DELETED>
                <DELETED>    ``(B) Amount.--The combined quantity of 
                term offset credits and domestic offset credits used by 
                a covered entity to demonstrate compliance for its 
                emissions or attributable greenhouse gas emissions in 
                any given year shall not exceed the quantity of 
                domestic offset credits that a covered entity is 
                entitled to use for that year to demonstrate compliance 
                in accordance with paragraph (1).</DELETED>
                <DELETED>    ``(C) Expiration.--A term offset credit 
                shall expire in the year after its term ends. The term 
                of a term offset credit shall be calculated by adding 
                to the year of issuance the number of years equal to 
                the length of the crediting period for the practice or 
                project for which the term offset credit was issued, 
                but in no case shall be later than the date 5 years 
                from the date of issuance.</DELETED>
                <DELETED>    ``(D) Demonstrating compliance upon 
                expiration of term offset credit.--With respect to the 
                emissions for which a covered entity is using term 
                offset credits to demonstrate compliance temporarily 
                with 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 the calendar 
                year in which a term offset credit expires, the owner 
                or operator holds--</DELETED>
                        <DELETED>    ``(i) for purposes of finally 
                        demonstrating compliance, an allowance or a 
                        domestic offset credit; or</DELETED>
                        <DELETED>    ``(ii) for purposes of temporarily 
                        demonstrating compliance, a non-expired term 
                        offset credit.</DELETED>
                <DELETED>    ``(E) Inapplicability of percentage 
                limitations.--Domestic offset credits used for purposes 
                of finally demonstrating compliance under this 
                subparagraph shall not be subject to the percentage 
                limitations in subparagraph (B).</DELETED>
                <DELETED>    ``(F) Financial assurance.--A covered 
                entity may not use a term offset credit to demonstrate 
                compliance temporarily unless it simultaneously 
                provides to the Administrator financial assurance that, 
                at the end of the term offset credit`s crediting term, 
                the covered entity will have sufficient resources to 
                obtain the quantity of allowances or credits necessary 
                to demonstrate final compliance. The Administrator 
                shall issue regulations establishing requirements for 
                such financial assurance, which shall take into account 
                the increased risk associated with longer crediting 
                terms. These regulations shall take into account the 
                total number of tons of carbon dioxide equivalent of 
                greenhouse gas emissions for which a covered entity is 
                demonstrating compliance temporarily, and may set a 
                limit on this amount. In the event that a covered 
                entity that used term offset credits to demonstrate 
                compliance temporarily fails to meet the requirements 
                of subparagraph (D) at the end of the term offset 
                credits' crediting term, if the financial assurance 
                mechanism fails to provide to the Administrator the 
                number of allowances or offset credits for which the 
                crediting term has expired, then the Administrator 
                shall retire that number of allowances with the vintage 
                year 2 years after the year in which the term offset 
                credit expires in the same amount. Allowances so 
                retired shall not be counted as emission allowances 
                established for that calendar year under section 
                721(a).</DELETED>
        <DELETED>    ``(3) 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).</DELETED>
        <DELETED>    ``(4) Compensatory allowances.--To demonstrate 
        compliance, a covered entity may hold a compensatory allowance 
        obtained under section 721(f) in lieu of an emission 
        allowance.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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 
thresholds that are used to define covered entities. After 
consideration of--</DELETED>
        <DELETED>    ``(1) emissions from covered entities in each 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); 
        and</DELETED>
        <DELETED>    ``(2) whether greater greenhouse gas emission 
        reductions can be cost-effectively achieved by lowering the 
        applicable threshold,</DELETED>
<DELETED>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.</DELETED>
<DELETED>    ``(h) Designated Representatives.--The regulations 
promulgated under section 721(h) shall require that each covered 
entity, and each entity holding allowances or credits or receiving 
allowances or credits from the Administrator under this title, select a 
designated representative.</DELETED>
<DELETED>    ``(i) Education and Outreach.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 723. PENALTY FOR NONCOMPLIANCE.</DELETED>

<DELETED>    ``(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(b) shall be a separate violation. In the 
event that a covered entity fails to demonstrate compliance at the 
expiration of a term of offset credits crediting term as required by 
section 722(d)(2)(D), the year of the violation shall be the year in 
which the term offset credit expires.</DELETED>
<DELETED>    ``(b) Excess Emissions Penalty.--</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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 comply under 
                section 722(b) on the deadline; by</DELETED>
                <DELETED>    ``(B) twice the fair market value of 
                emission allowances established for emissions occurring 
                in the calendar year for which the emission allowances 
                were due.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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 actual or attributable emissions.</DELETED>

<DELETED>``SEC. 724. TRADING.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(d) Allowance Tracking System.--The regulations 
promulgated under section 721(h) shall include a system for issuing, 
recording, holding, and tracking allowances, offset credits, and term 
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.</DELETED>

<DELETED>``SEC. 725. BANKING AND BORROWING.</DELETED>

<DELETED>    ``(a) Banking.--An emission allowance may be used to 
comply with section 722 or 723 for emissions in--</DELETED>
        <DELETED>    ``(1) the vintage year for the allowance; 
        or</DELETED>
        <DELETED>    ``(2) any calendar year subsequent to the vintage 
        year for the allowance.</DELETED>
<DELETED>    ``(b) Expiration.--</DELETED>
        <DELETED>    ``(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, credit, or term 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, credits, or term 
        offset credits or the allowance tracking system.</DELETED>
        <DELETED>    ``(2) General rule.--An allowance, credit, or term 
        offset credit established or issued by the Administrator under 
        this title shall not expire unless--</DELETED>
                <DELETED>    ``(A) it is retired by the Administrator 
                as required under this title; or</DELETED>
                <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(3) International emission allowances.--The 
        ability to use an international emission allowance to comply 
        with section 722 shall not expire unless--</DELETED>
                <DELETED>    ``(A) the allowance is retired by the 
                Administrator as required by this title; or</DELETED>
                <DELETED>    ``(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).</DELETED>
<DELETED>    ``(c) Borrowing Future Vintage Year Allowances.--
</DELETED>
        <DELETED>    ``(1) Borrowing without interest.--In addition to 
        the uses described in subsection (a), an emission allowance may 
        be used to comply with section 722(a) or 723 for emissions, 
        production, importation, manufacture, or deliveries in the 
        calendar year immediately preceding the vintage year for the 
        allowance.</DELETED>
        <DELETED>    ``(2) Borrowing with interest.--</DELETED>
                <DELETED>    ``(A) In general.--A covered entity may 
                demonstrate compliance under subsection (b) 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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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 a 
                quantity of emission allowances that is equal to the 
                product obtained by multiplying--</DELETED>
                        <DELETED>    ``(i) 0.08; by</DELETED>
                        <DELETED>    ``(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.</DELETED>

``SEC. 726. MARKET STABILITY RESERVE.

<DELETED>    ``(a) Market Stability Reserve Auctions.--</DELETED>
        <DELETED>    ``(1) In general.--Once each quarter of each 
        calendar year for which allowances are established under 
        section 721(a), the Administrator shall auction market 
        stability reserve allowances.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Pool of Emission Allowances for Market Stability 
Reserve Auctions.--</DELETED>
        <DELETED>    ``(1) Filling the market stability reserve 
        initially.--</DELETED>
                <DELETED>    ``(A) In general.--The Administrator 
                shall, not later than 2 years after the date of 
                enactment of this title, establish a market stability 
                reserve account, and shall place in that account an 
                amount of emission allowances established under section 
                721(a).</DELETED>
                <DELETED>    ``(B) 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 market stability reserve account under this 
                paragraph.</DELETED>
        <DELETED>    ``(2) Supplementing the market stability 
        reserve.--The Administrator shall also--</DELETED>
                <DELETED>    ``(A) at the end of each calendar year, 
                transfer to the market stability reserve account each 
                emission allowance that was offered for sale but not 
                sold at any auction conducted under section 778; 
                and</DELETED>
                <DELETED>    ``(B) transfer emission allowances 
                established under subsection (g) from auction proceeds, 
                and deposit them into the market stability reserve, to 
                the extent necessary to maintain the reserve at its 
                original size.</DELETED>
<DELETED>    ``(c) Minimum Market Stability Reserve Auction Price.--
</DELETED>
        <DELETED>    ``(1) In general.--At each market stability 
        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 market 
        stability reserve auction price'.</DELETED>
        <DELETED>    ``(2) Initial minimum market stability reserve 
        auction prices.--The minimum market stability reserve auction 
        price shall be $28 (in constant 2005 dollars) for the market 
        stability reserve auctions held in 2012. For the market 
        stability reserve auctions held in 2013 through 2017, the 
        minimum market stability reserve auction price shall be the 
        market stability 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).</DELETED>
        <DELETED>    ``(3) Minimum market stability reserve auction 
        price in subsequent years.--For each market stability reserve 
        auction held in 2018 and each year thereafter, the minimum 
        market stability reserve auction price shall be the market 
        stability reserve auction price for the previous year increased 
        by 7 percent, plus the rate of inflation (as measured by the 
        Consumer Price Index for All Urban Consumers).</DELETED>
<DELETED>    ``(d) Quantity of Emission Allowances Released From the 
Market Stability Reserve.--</DELETED>
        <DELETED>    ``(1) Initial limits.--Subject to paragraph (4), 
        for each of calendar years 2012 through 2016, the annual limit 
        on the number of emission allowances from the market stability 
        reserve account that may be auctioned is an amount equal to 15 
        percent of the emission allowances established for that 
        calendar year under section 721(a). This limit does not apply 
        to offset credits sold on consignment pursuant to subsection 
        (h).</DELETED>
        <DELETED>    ``(2) Limits in subsequent years.--Subject to 
        paragraph (4), for calendar year 2017 and each year thereafter, 
        the annual limit on the number of emission allowances from the 
        market stability reserve account that may be auctioned is an 
        amount equal to 25 percent of the emission allowances 
        established for that calendar year under section 721(a). This 
        limit does not apply to offset credits sold on consignment 
        pursuant to subsection (h).</DELETED>
        <DELETED>    ``(3) Allocation of limitation.--One-fourth of 
        each year's annual market stability reserve auction limit under 
        this subsection shall be made available for auction in each 
        quarter. Any allowances from the market stability 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 market stability reserve 
        account.</DELETED>
        <DELETED>    ``(4) Authority to adjust limitation.--The 
        Administrator may adjust the limits in paragraphs (1) or (2) if 
        the Administrator determines an adjustment is required to 
        prevent disruptively high prices or to preserve the integrity 
        of the market stability reserve.</DELETED>
<DELETED>    ``(e) Purchase Limit.--</DELETED>
        <DELETED>    ``(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 market stability reserve 
        auctions in each calendar year shall not exceed 20 percent of 
        the covered entity's emissions during the most recent year for 
        which allowances or credits were retired under section 
        722.</DELETED>
        <DELETED>    ``(2) 2012 limit.--For calendar year 2012, the 
        maximum aggregate number of emission allowances that a covered 
        entity may purchase from that year's market stability reserve 
        auctions shall be 20 percent of the covered entity's 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.</DELETED>
        <DELETED>    ``(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 market stability reserve auctions in their first calendar 
        year of operation in an amount of at least 20 percent of their 
        expected combined emissions and attributable greenhouse gas 
        emissions for that year.</DELETED>
<DELETED>    ``(f) Delegation or Contract.--Pursuant to regulations 
under this section, the Administrator may, by delegation or contract, 
provide for the conduct of market stability reserve auctions under the 
Administrator's supervision by other departments or agencies of the 
Federal Government or by nongovernmental agencies, groups, or 
organizations.</DELETED>
<DELETED>    ``(g) Use of Auction Proceeds.--</DELETED>
        <DELETED>    ``(1) Deposit in market stability reserve fund.--
        The proceeds from market stability reserve auctions shall be 
        placed in the Market Stability Reserve Fund established by 
        subsection (j), and shall be available without further 
        appropriation or fiscal year limitation for the purposes 
        described in this subsection.</DELETED>
        <DELETED>    ``(2) Offset credits.--The Administrator shall use 
        the proceeds from each market stability reserve auction to 
        purchase offset credits, including domestic offset credits and 
        international offset credits issued for reduced deforestation 
        activities pursuant to section 753. The Administrator shall 
        retire those offset credits and establish a number of emission 
        allowances equal to 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).</DELETED>
        <DELETED>    ``(3) Emission allowances.--The Administrator 
        shall deposit emission allowances established under paragraph 
        (2) in the market stability reserve, except that, with respect 
        to any such emission allowances in excess of the amount 
        necessary to fill the market stability reserve to its original 
        size, the Administrator shall--</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(B) to the extent any such allowances 
                cannot be assigned a vintage year because of the 
                limitation in paragraph (4), retire the 
                allowances.</DELETED>
        <DELETED>    ``(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 
        market stability reserve account under subsection 
        (b)(1).</DELETED>
<DELETED>    ``(h) Availability of Offset Credits for Auction.--
</DELETED>
        <DELETED>    ``(1) In general.--The regulations promulgated 
        under section 721(h) shall allow any entity holding offset 
        credits to request that the Administrator include such offset 
        credits in an upcoming market stability reserve auction. The 
        regulations shall provide that--</DELETED>
                <DELETED>    ``(A) upon sale of such offset credits, 
                the Administrator shall retire those offset credits, 
                and establish and provide to the purchasers a number of 
                emission allowances equal to the number of offset 
                credits so retired, which allowances shall be in 
                addition to those established under section 721(a); 
                and</DELETED>
                <DELETED>    ``(B) for offset credits sold pursuant to 
                this subsection, the proceeds for the entity that 
                offered the offset credits for sale shall be the lesser 
                of--</DELETED>
                        <DELETED>    ``(i) the average daily closing 
                        price for 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 market stability reserve auction at which 
                        they were auctioned, with the remaining funds 
                        collected upon the sale of the offset credits 
                        deposited in the Treasury; and</DELETED>
                        <DELETED>    ``(ii) the amount received for the 
                        offset credits at the auction.</DELETED>
        <DELETED>    ``(2) Proceeds.--For 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 offset credits for sale. No funds transferred 
        from a purchaser to a seller of 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.</DELETED>
        <DELETED>    ``(3) Pricing.--When the Administrator acts under 
        this subsection as the agent of an entity in possession of 
        offset credits, the Administrator is not obligated to obtain 
        the highest price possible for the offset credits, and instead 
        shall auction such offset credits in the same manner and 
        pursuant to the same rules (except as modified in paragraph 
        (1)) as set forth for auctioning market stability reserve 
        allowances. Entities requesting that such offset credits be 
        offered for sale at a market stability reserve auction may not 
        set a minimum reserve price for their offset credits that is 
        different than the minimum market stability reserve auction 
        price set pursuant to subsection (c).</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Auction format.--Auctions shall follow a 
        single-round, sealed-bid, uniform price format.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(j) Market Stability Reserve Fund.--There are 
established in the Treasury of the United States a fund to be known as 
the `Market Stability Reserve Fund'.</DELETED>
<DELETED>    ``(k) 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.</DELETED>

<DELETED>``SEC. 727. PERMITS.</DELETED>

<DELETED>    ``(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 with an approved permit program, shall require the owner or 
operator of a covered entity to hold emission 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 emission 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 emission allowances shall amend 
automatically all applicable proposed or approved permit applications, 
compliance plans, and permits.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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; or</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>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.</DELETED>
<DELETED>    ``(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 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).</DELETED>
<DELETED>    ``(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 emission allowances, compensatory allowances, 
international emission allowances, or offset allowances, except that 
any such covered entity may be subject to the applicable enforcement 
provision of section 113.</DELETED>
<DELETED>    ``(e) Regulations.--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 
and that are covered entities are located shall submit, in accordance 
with this section and title V, revised permit programs for 
approval.</DELETED>

<DELETED>``SEC. 728. INTERNATIONAL EMISSION ALLOWANCES.</DELETED>

<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Disqualified Allowances.--An international emission 
allowance may not be held under section 722(d)(3) 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).</DELETED>
<DELETED>    ``(c) Retirement.--</DELETED>
        <DELETED>    ``(1) Entity certification.--The owner or operator 
        of an entity that holds an international emission allowance 
        under section 722(d)(3) 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.</DELETED>
        <DELETED>    ``(2) Retirement.--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) are notified of the use, for 
                        purposes of compliance with this title, of any 
                        international emission allowance; and</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Use Limitations.--The Administrator may, by rule, 
modify the percentage applicable to international emission allowances 
under section 722(d)(3), consistent with the purposes of the Clean 
Energy Jobs and American Power Act.</DELETED>

                  <DELETED>``PART D--OFFSETS</DELETED>

<DELETED>``SEC. 731. OFFSETS INTEGRITY ADVISORY BOARD.</DELETED>

<DELETED>    ``(a) Establishment.--Not later than 30 days after the 
date of enactment of this title, the President shall establish an 
independent Offsets Integrity Advisory Board. The Advisory Board shall 
make recommendations to the President for use in promulgating and 
revising regulations under this part, and for ensuring the overall 
environmental integrity of the programs established pursuant to those 
regulations.</DELETED>
<DELETED>    ``(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 
President 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.</DELETED>
<DELETED>    ``(c) Activities.--The Advisory Board established pursuant 
to subsection (a) shall--</DELETED>
        <DELETED>    ``(1) provide recommendations, not later than 90 
        days after the Advisory Board's establishment and periodically 
        thereafter, to the President regarding offset project types 
        that should be considered for eligibility under section 733, 
        taking into consideration relevant scientific and other issues, 
        including--</DELETED>
                <DELETED>    ``(A) the availability of a representative 
                data set for use in developing the activity 
                baseline;</DELETED>
                <DELETED>    ``(B) the potential for accurate 
                quantification of greenhouse gas reduction, avoidance, 
                or sequestration for an offset project type;</DELETED>
                <DELETED>    ``(C) the potential level of scientific 
                and measurement uncertainty associated with an offset 
                project type;</DELETED>
                <DELETED>    ``(D) any beneficial or adverse 
                environmental, public health, welfare, social, 
                economic, or energy effects associated with an offset 
                project type;</DELETED>
                <DELETED>    ``(E) the extent to which, as of the date 
                of submission of the report, the project or activity 
                types within each category--</DELETED>
                        <DELETED>    ``(i) are required by law 
                        (including a regulation); or</DELETED>
                        <DELETED>    ``(ii) represent business-as-usual 
                        (absent funding from offset credits) practices 
                        for a relevant land area, industry sector, or 
                        forest, soil or facility type;</DELETED>
        <DELETED>    ``(2) make available to the President its advice 
        and comments on offset methodologies that should be considered 
        under regulations promulgated pursuant to subsection (a) and 
        (b) of section 734, including methodologies to address the 
        issues of additionality, activity baselines, measurement, 
        leakage, uncertainty, permanence, and environmental 
        integrity;</DELETED>
        <DELETED>    ``(3) make available to the President, 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 
        744;</DELETED>
        <DELETED>    ``(4) make available to the President, and other 
        relevant Federal agencies, its advice and comments regarding 
        scientific, technical, and methodological issues associated 
        with the implementation of this part;</DELETED>
        <DELETED>    ``(5) make available to the President 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 describe the 
        research efforts necessary to provide the required information; 
        and</DELETED>
        <DELETED>    ``(6) make available to the President its advice 
        and comments on other ways to improve or safeguard the 
        environmental integrity of programs established under this 
        part.</DELETED>
<DELETED>    ``(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 President 
and make available to the public an analysis of relevant scientific and 
technical information related to this part. 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 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 President 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.</DELETED>

<DELETED>``SEC. 732. ESTABLISHMENT OF OFFSETS PROGRAM.</DELETED>

<DELETED>    ``(a) Regulations.--Not later than 2 years after the date 
of enactment of this title, the President, 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 President shall periodically 
revise these regulations as necessary to meet the requirements of this 
part.</DELETED>
<DELETED>    ``(b) Requirements.--The regulations described in 
subsection (a) shall--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) ensure that such offset credits represent 
        verifiable and additional greenhouse gas emission reductions or 
        avoidance, or increases in sequestration;</DELETED>
        <DELETED>    ``(3) ensure that offset credits issued for 
        sequestration offset projects are only issued for greenhouse 
        gas reductions that are permanent;</DELETED>
        <DELETED>    ``(4) provide for the implementation of the 
        requirements of this part;</DELETED>
        <DELETED>    ``(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 President 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; and</DELETED>
        <DELETED>    ``(6) establish a process to accept and respond to 
        comments from third parties regarding programs established 
        under this part in a timely manner.</DELETED>
<DELETED>    ``(c) Coordination To Minimize Negative Effects.--In 
promulgating and implementing regulations under this part, the 
President 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.</DELETED>
<DELETED>    ``(d) Offset Registry.--The President 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.</DELETED>
<DELETED>    ``(e) Legal Status of Offset Credit.--An offset credit 
does not constitute a property right.</DELETED>
<DELETED>    ``(f) Fees.--The President shall assess fees payable by 
offset project developers in an amount necessary to cover the 
administrative costs and the enforcement costs to the Environmental 
Protection Agency and the Department of Justice of carrying out the 
activities under this part. Amounts collected for such fees shall be 
available to the President and the Attorney General for carrying out 
the activities under this part to the extent provided in advance in 
appropriations Acts.</DELETED>

<DELETED>``SEC. 733. ELIGIBLE PROJECT TYPES.</DELETED>

<DELETED>    ``(a) List of Eligible Project Types.--</DELETED>
        <DELETED>    ``(1) In general.--As part of the regulations 
        promulgated under section 732(a), the President shall 
        establish, and may periodically revise, a list of types of 
        projects eligible to generate offset credits, including 
        international offset credits, under this part.</DELETED>
        <DELETED>    ``(2) Advisory board recommendations.--In 
        determining the eligibility of project types, the President 
        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.</DELETED>
        <DELETED>    ``(3) Initial determination.--The President shall 
        establish the initial eligibility list under paragraph (1) not 
        later than one year after the date of enactment of this title 
        for which there are well developed methodologies that the 
        President determines would meet the criteria of section 
        734.</DELETED>
        <DELETED>    ``(4) Project types to be considered for initial 
        list.--In determining the initial list, the President 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 President determines would 
        meet the criteria of section 734, and shall consider--
        </DELETED>
                <DELETED>    ``(A) methane collection and combustion 
                projects at active underground coal mines;</DELETED>
                <DELETED>    ``(B) methane collection and combustion 
                projects at landfills;</DELETED>
                <DELETED>    ``(C) capture of venting, flaring, and 
                fugitive emissions from oil and natural gas 
                systems;</DELETED>
                <DELETED>    ``(D) nonlandfill methane collection, 
                combustion and avoidance projects involving organic 
                waste streams that would have otherwise emitted methane 
                in the atmosphere, including manure management and 
                biogas capture and combustion;</DELETED>
                <DELETED>    ``(E) projects involving afforestation or 
                reforestation of acreage not forested as of January 1, 
                2009;</DELETED>
                <DELETED>    ``(F) forest management resulting in an 
                increase in forest carbon stores, including harvested 
                wood products;</DELETED>
                <DELETED>    ``(G) agricultural, grassland, and 
                rangeland sequestration and management practices, 
                including--</DELETED>
                        <DELETED>    ``(i) altered tillage practices, 
                        including avoided abandonment of such 
                        practices;</DELETED>
                        <DELETED>    ``(ii) winter cover cropping, 
                        continuous cropping, and other means to 
                        increase biomass returned to soil in lieu of 
                        planting followed by fallowing;</DELETED>
                        <DELETED>    ``(iii) reduction of nitrogen 
                        fertilizer use or increase in nitrogen use 
                        efficiency;</DELETED>
                        <DELETED>    ``(iv) reduction in the frequency 
                        and duration of flooding of rice 
                        paddies;</DELETED>
                        <DELETED>    ``(v) reduction in carbon 
                        emissions from organic soils;</DELETED>
                        <DELETED>    ``(vi) reduction in greenhouse gas 
                        emissions from manure and effluent;</DELETED>
                        <DELETED>    ``(vii) reduction in greenhouse 
                        gas emissions due to changes in animal 
                        management practices, including dietary 
                        modifications;</DELETED>
                        <DELETED>    ``(viii) planting and cultivation 
                        of permanent tree crops;</DELETED>
                        <DELETED>    ``(ix) greenhouse gas emission 
                        reductions from improvements and upgrades to 
                        mobile or stationary equipment (including 
                        engines);</DELETED>
                        <DELETED>    ``(x) practices to reduce and 
                        eliminate soil tillage;</DELETED>
                        <DELETED>    ``(xi) reductions in greenhouse 
                        gas emissions through restoration of wetlands, 
                        forestland, and grassland; and</DELETED>
                        <DELETED>    ``(xii) sequestration of 
                        greenhouse gases through management of tree 
                        crops; and</DELETED>
                <DELETED>    ``(H) changes in carbon stocks attributed 
                to land use change and forestry activities, including--
                </DELETED>
                        <DELETED>    ``(i) management of peatland or 
                        wetland;</DELETED>
                        <DELETED>    ``(ii) conservation of grassland 
                        and forested land;</DELETED>
                        <DELETED>    ``(iii) improved forest 
                        management, including accounting for carbon 
                        stored in wood products;</DELETED>
                        <DELETED>    ``(iv) reduced deforestation or 
                        avoided forest conversion;</DELETED>
                        <DELETED>    ``(v) urban tree-planting and 
                        maintenance;</DELETED>
                        <DELETED>    ``(vi) agroforestry; and</DELETED>
                        <DELETED>    ``(vii) adaptation of plant traits 
                        or new technologies that increase sequestration 
                        by forests.</DELETED>
        <DELETED>    ``(5) Methodologies.--In issuing methodologies 
        pursuant to section 734, the President shall give priority to 
        methodologies for offset types included on the initial 
        eligibility list.</DELETED>
<DELETED>    ``(b) Modification of List.--The President--</DELETED>
        <DELETED>    ``(1) shall add additional project types to the 
        list not later than 2 years after the date of enactment of this 
        title;</DELETED>
        <DELETED>    ``(2) may at any time, by rule, add a project type 
        to the list established under subsection (a) if the President, 
        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;</DELETED>
        <DELETED>    ``(3) may at any time, by rule, determine that a 
        project type on the list does not meet the requirements of this 
        part, and remove a 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; and</DELETED>
        <DELETED>    ``(4) shall consider adding to or removing from 
        the list established under subsection (a), at a minimum, 
        project types proposed to the President--</DELETED>
                <DELETED>    ``(A) by petition pursuant to subsection 
                (c); or</DELETED>
                <DELETED>    ``(B) by the Advisory Board.</DELETED>
<DELETED>    ``(c) Petition Process.--Any person may petition the 
President 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 President shall either grant or deny the 
petition and publish a written explanation of the reasons for the 
President's decision. The President may not deny a petition under this 
subsection on the basis of inadequate Environmental Protection Agency 
resources or time for review.</DELETED>

<DELETED>``SEC. 734. REQUIREMENTS FOR OFFSET PROJECTS.</DELETED>

<DELETED>    ``(a) Methodologies.--As part of the regulations 
promulgated under section 732(a), the President shall establish, for 
each type of offset project listed as eligible under section 733, the 
following:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) are not required by or undertaken to 
                comply with any law, including any regulation or 
                consent order;</DELETED>
                <DELETED>    ``(B) were not commenced prior to January 
                1, 2009, except in the case of--</DELETED>
                        <DELETED>    ``(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 President has made an affirmative 
                        determination under section 740(a)(2); 
                        or</DELETED>
                        <DELETED>    ``(ii) activities that are readily 
                        reversible, with respect to which the President 
                        may set an alternative earlier date under this 
                        subparagraph that is not earlier than January 
                        1, 2001, where the President 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;</DELETED>
                <DELETED>    ``(C) are not receiving support under 
                section 323 of division A, or section 207 of division 
                B, of the Clean Energy Jobs and American Power Act; 
                and</DELETED>
                <DELETED>    ``(D) exceed the activity baseline 
                established under paragraph (2).</DELETED>
        <DELETED>    ``(2) Activity baselines.--A standardized 
        methodology for establishing activity baselines for offset 
        projects of that type. The President 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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Accounting for Reversals.--</DELETED>
        <DELETED>    ``(1) In general.--As part of the regulations 
        promulgated under section 732(a), for each type of 
        sequestration project listed under section 733, the President 
        shall establish requirements to account for and address 
        reversals, including--</DELETED>
                <DELETED>    ``(A) a requirement to report any reversal 
                with respect to an offset project for which offset 
                credits have been issued under this part;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(C) provisions to discourage repeated 
                intentional reversals by offset project developers, 
                including but not limited to the assessment of 
                administrative fees, temporary suspension, or 
                disqualification of an offset project developer from 
                the program; and</DELETED>
                <DELETED>    ``(D) any other provisions the President 
                determines necessary to account for and address 
                reversals.</DELETED>
        <DELETED>    ``(2) Mechanisms.--The President 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 President 
        shall prescribe at least one of the following mechanisms to 
        meet the requirements of this paragraph:</DELETED>
                <DELETED>    ``(A) An offsets reserve, pursuant to 
                paragraph (3).</DELETED>
                <DELETED>    ``(B) Insurance that provides for purchase 
                and provision to the President 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.</DELETED>
                <DELETED>    ``(C) Another mechanism that the President 
                determines satisfies the requirements of this 
                part.</DELETED>
        <DELETED>    ``(3) Offsets reserve.--</DELETED>
                <DELETED>    ``(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 President shall subtract and reserve from the 
                quantity to be issued a quantity of offset credits 
                based on the risk of reversal. The President shall--
                </DELETED>
                        <DELETED>    ``(i) hold these reserved offset 
                        credits in the offsets reserve; and</DELETED>
                        <DELETED>    ``(ii) register the holding of the 
                        reserved offset credits in the Offset Registry 
                        established under section 732(d).</DELETED>
                <DELETED>    ``(B) Project reversal.--</DELETED>
                        <DELETED>    ``(i) In general.--If a reversal 
                        has occurred with respect an offset project for 
                        which offset credits are reserved under this 
                        paragraph, the President shall remove offset 
                        credits or emission allowances from the offsets 
                        reserve and cancel them to fully account for 
                        the tons of carbon dioxide equivalent that are 
                        no longer sequestered.</DELETED>
                        <DELETED>    ``(ii) Intentional reversals.--If 
                        the President 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).</DELETED>
                        <DELETED>    ``(iii) Unintentional reversals.--
                        If the President 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.</DELETED>
                        <DELETED>    ``(iv) Petition.--Any person may 
                        petition the President for a determination that 
                        an offsets reversal has occurred. Any such 
                        petition shall include a showing by the 
                        petitioner that there is adequate data or other 
                        evidence to support the petition. Not later 
                        than 90 days after the date of receipt of the 
                        petition, the President shall take final action 
                        determining either that the reversal has 
                        occurred or that the reversal has not occurred. 
                        Such determination shall be accompanied by a 
                        statement of the basis for the 
                        determination.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Term offset credits.--</DELETED>
                <DELETED>    ``(A) Applicability.--With respect to a 
                practice listed under section 733 that sequesters 
                greenhouse gases and has a crediting period of not more 
                than 5 years, the President may address reversals 
                pursuant to this paragraph in lieu of permanently 
                accounting for reversals pursuant to paragraphs (1) and 
                (2).</DELETED>
                <DELETED>    ``(B) Accounting for reversals.--For such 
                practices or projects implementing the practices 
                described in subparagraph (A), the President shall 
                require only reversals that occur during the crediting 
                period to be accounted for and addressed pursuant to 
                paragraphs (1) and (2).</DELETED>
                <DELETED>    ``(C) Credits issued.--For practices or 
                projects regulated pursuant to subparagraph (B), the 
                Secretary shall issue under section 737 a term offset 
                credit, in lieu of an offset credit, for each ton of 
                carbon dioxide equivalent that has been 
                sequestered.</DELETED>
<DELETED>    ``(c) Crediting Periods.--</DELETED>
        <DELETED>    ``(1) In general.--As part of the regulations 
        promulgated under section 732(a), for each offset project type, 
        the President shall specify a crediting period, and establish 
        provisions for petitions for new crediting periods, in 
        accordance with this subsection.</DELETED>
        <DELETED>    ``(2) Duration.--</DELETED>
                <DELETED>    ``(A) In general.--The crediting period 
                shall be not less than 5 and not greater than 10 years 
                for any project type other than those involving 
                sequestration or term offsets.</DELETED>
                <DELETED>    ``(B) Forestry projects.--The crediting 
                period for a forestry offset project shall not exceed 
                20 years.</DELETED>
                <DELETED>    ``(C) Term offset credits.--The crediting 
                period for a term offset credit issued shall not exceed 
                5 years.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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 
        President may grant such petition after public notice and 
        opportunity for comment. The President may limit the number of 
        new crediting periods available for projects of particular 
        project types.</DELETED>
<DELETED>    ``(d) Environmental Integrity.--In establishing the 
requirements under this section, the President shall apply conservative 
assumptions or methods to maximize the certainty that the environmental 
integrity of the greenhouse gas limitations established under section 
703 is not compromised.</DELETED>
<DELETED>    ``(e) Pre-Existing Methodologies.--In promulgating 
requirements under this section, the President shall give due 
consideration to methodologies for offset projects existing as of the 
date of enactment of this title.</DELETED>
<DELETED>    ``(f) Added Project Types.--The President 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.</DELETED>

<DELETED>``SEC. 735. APPROVAL OF OFFSET PROJECTS.</DELETED>

<DELETED>    ``(a) Approval Petition.--An offset project developer 
shall submit an offset project approval petition signed by a 
responsible official (who shall certify the accuracy of the information 
submitted) and providing such information as the President requires to 
determine whether the offset project is eligible for issuance of offset 
credits under rules promulgated pursuant to this part.</DELETED>
<DELETED>    ``(b) Timing.--An approval petition shall be submitted to 
the President under subsection (a) not later than the time at which an 
offset project's first verification report is submitted under section 
736.</DELETED>
<DELETED>    ``(c) Approval Petition Requirements.--As part of the 
regulations promulgated under section 732, the President shall include 
provisions for, and shall specify, the required components of an offset 
project approval petition required under subsection (a), which shall 
include--</DELETED>
        <DELETED>    ``(1) designation of an offset project 
        developer;</DELETED>
        <DELETED>    ``(2) designation of a party who is authorized to 
        provide access to the appropriate officials or an authorized 
        representative to the offset project; and</DELETED>
        <DELETED>    ``(3) any other information that the President 
        considers to be necessary to achieve the purposes of this 
        part.</DELETED>
<DELETED>    ``(d) Approval and Notification.--Not later than 90 days 
after receiving a complete approval petition under subsection (a), the 
President shall make the approval petition publicly available on the 
internet, approve or deny the petition in writing, and, if the petition 
is denied, make the President's decision publicly available on the 
internet. 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).</DELETED>
<DELETED>    ``(e) Appeal.--The President shall establish procedures 
for appeal and review of determinations made under subsection 
(d).</DELETED>
<DELETED>    ``(f) Voluntary Preapproval Review.--The President may 
establish a voluntary preapproval review procedure, to allow an offset 
project developer to request the President to conduct a preliminary 
eligibility review for an offset project. Findings of such reviews 
shall not be binding upon the President. The voluntary preapproval 
review procedure--</DELETED>
        <DELETED>    ``(1) shall require the offset project developer 
        to submit such basic project information as the President 
        requires to provide a meaningful review; and</DELETED>
        <DELETED>    ``(2) shall require a response from the President 
        not later than 6 weeks after receiving a request for review 
        under this subsection.</DELETED>

<DELETED>``SEC. 736. VERIFICATION OF OFFSET PROJECTS.</DELETED>

<DELETED>    ``(a) In General.--As part of the regulations promulgated 
under section 732(a), the President 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 President requires to determine the quantity of 
greenhouse gas emission reductions or avoidance, or sequestration of 
greenhouse gas, resulting from the offset project.</DELETED>
<DELETED>    ``(b) Schedule.--The President shall prescribe a schedule 
for the submission of verification reports under subsection 
(a).</DELETED>
<DELETED>    ``(c) Verification Report Requirements.--The President 
shall specify the required components of a verification report required 
under subsection (a), which shall include--</DELETED>
        <DELETED>    ``(1) the name and contact information for a 
        designated representative for the offset project 
        developer;</DELETED>
        <DELETED>    ``(2) the quantity of greenhouse gas reduced, 
        avoided, or sequestered;</DELETED>
        <DELETED>    ``(3) the methodologies applicable to the project 
        pursuant to section 734;</DELETED>
        <DELETED>    ``(4) a certification that the project meets the 
        applicable requirements;</DELETED>
        <DELETED>    ``(5) a certification establishing that the 
        conflict of interest requirements in the regulations 
        promulgated under subsection (d)(1) have been complied with; 
        and</DELETED>
        <DELETED>    ``(6) any other information that the President 
        considers to be necessary to achieve the purposes of this 
        part.</DELETED>
<DELETED>    ``(d) Verifier Accreditation.--</DELETED>
        <DELETED>    ``(1) In general.--As part of the regulations 
        promulgated under section 732(a), the President 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 with 
        offset project developers.</DELETED>
        <DELETED>    ``(2) Standards.--</DELETED>
                <DELETED>    ``(A) American national standards 
                institute accreditation.--The President 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 President 
                shall accredit, or accept for accreditation, verifiers 
                under this subparagraph only if the President finds 
                that the American National Standards Institute 
                accreditation program provides sufficient assurance 
                that the requirements of this part will be 
                met.</DELETED>
                <DELETED>    ``(B) EPA accreditation.--As part of the 
                regulations promulgated under section 732(a), the 
                President may establish accreditation standards for 
                verifiers under this subsection, and may establish 
                related training and testing programs and 
                requirements.</DELETED>
        <DELETED>    ``(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 
        President.</DELETED>
        <DELETED>    ``(4) Revocation.--The regulations concerning 
        accreditation of third-party verifiers required under paragraph 
        (1) shall establish a process for the President to revoke the 
        accreditation of any third-party verifier that the President 
        finds fails to maintain professional qualifications or to avoid 
        a conflict of interest, or for other good cause.</DELETED>

<DELETED>``SEC. 737. ISSUANCE OF OFFSET CREDITS.</DELETED>

<DELETED>    ``(a) Determination and Notification.--Not later than 90 
days after receiving a complete verification report under section 736, 
the President shall--</DELETED>
        <DELETED>    ``(1) make the report publicly available on the 
        Internet;</DELETED>
        <DELETED>    ``(2) make a determination of the quantity of 
        greenhouse gas emissions reduced or avoided, or greenhouse 
        gases sequestered, resulting from an offset project approved 
        under section 735; and</DELETED>
        <DELETED>    ``(3) notify the offset project developer in 
        writing of such determination and make such determination 
        publicly available on the Internet.</DELETED>
<DELETED>    ``(b) Issuance of Offset Credits.--The President shall 
issue one offset credit to an offset project developer for each ton of 
carbon dioxide equivalent that the President has determined has been 
reduced, avoided, or sequestered during the period covered by a 
verification report submitted in accordance with section 736, only if--
</DELETED>
        <DELETED>    ``(1) the President has approved the offset 
        project pursuant to section 735; and</DELETED>
        <DELETED>    ``(2) the relevant emissions reduction, avoidance, 
        or sequestration has--</DELETED>
                <DELETED>    ``(A) already occurred, during the offset 
                project's crediting period; and</DELETED>
                <DELETED>    ``(B) occurred after January 1, 
                2009.</DELETED>
<DELETED>    ``(c) Appeal.--The President shall establish procedures 
for appeal and review of determinations made under subsection 
(a).</DELETED>
<DELETED>    ``(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 President under 
subsection (a).</DELETED>
<DELETED>    ``(e) Registration.--The President shall assign a unique 
serial number to and register each offset credit to be issued in the 
Offset Registry established under section 732(d).</DELETED>

<DELETED>``SEC. 738. AUDITS.</DELETED>

<DELETED>    ``(a) In General.--The President shall, on an ongoing 
basis, conduct random audits of offset projects and offset credits. The 
President shall conduct audits of the practices of third-party 
verifiers. In each year, the President shall conduct audits, at 
minimum, for a representative sample of project types and geographic 
areas.</DELETED>
<DELETED>    ``(b) Delegation.--The President may delegate to a State 
or tribal government the responsibility for conducting audits under 
this section if the President finds that the program proposed by the 
State or tribal government provides assurances equivalent to those 
provided by the auditing program of the President, and that the 
integrity of the offset program under this part will be maintained. 
Nothing in this subsection shall prevent the President from conducting 
any audit the President considers necessary and appropriate.</DELETED>
<DELETED>    ``(c) Audit Requirements.--As part of the regulations 
promulgated under section 732(a), the appropriate officials shall 
establish requirements and protocols for an auditing program, whether 
undertaken by the appropriate officials or an authorized 
representative, concerning project developers, third-party verifiers, 
and various components of the offsets program. Such regulations shall 
include--</DELETED>
        <DELETED>    ``(1) the components of the offset project, which 
        shall be evaluated against the offset approval petition and the 
        verification report;</DELETED>
        <DELETED>    ``(2) the minimum experience or training of the 
        auditors;</DELETED>
        <DELETED>    ``(3) the form in which reports shall be 
        completed;</DELETED>
        <DELETED>    ``(4) requirements for delegating auditing 
        functions to States or tribal governments, including requiring 
        periodic reports from State or tribal governments on their 
        auditing activities and findings; and</DELETED>
        <DELETED>    ``(5) any other information that the appropriate 
        officials considers to be necessary to achieve the purpose of 
        the Act.</DELETED>

<DELETED>``SEC. 739. PROGRAM REVIEW AND REVISION.</DELETED>

<DELETED>    ``At least once every 5 years, the President shall review 
and, based on new or updated information and taking into consideration 
the recommendations of the Advisory Board, update and revise--
</DELETED>
        <DELETED>    ``(1) the list of eligible project types 
        established under section 733;</DELETED>
        <DELETED>    ``(2) the methodologies established, including 
        specific activity baselines, under section 734(a);</DELETED>
        <DELETED>    ``(3) the reversal requirements and mechanisms 
        established or prescribed under section 734(b);</DELETED>
        <DELETED>    ``(4) measures to improve the accountability of 
        the offsets program; and</DELETED>
        <DELETED>    ``(5) any other requirements established under 
        this part to ensure the environmental integrity and effective 
        operation of this part.</DELETED>

<DELETED>``SEC. 740. EARLY OFFSET SUPPLY.</DELETED>

<DELETED>    ``(a) Projects Registered Under Other Government-
Recognized Programs.--Except as provided in subsection (b) or (c), 
after public notice and opportunity for comment, the President shall 
issue one offset credit for each ton of carbon dioxide equivalent 
emissions reduced, avoided, or sequestered--</DELETED>
        <DELETED>    ``(1) under an offset project that was started 
        after January 1, 2001;</DELETED>
        <DELETED>    ``(2) for which a credit was issued under any 
        regulatory or voluntary greenhouse gas emission offset program 
        that the President determines--</DELETED>
                <DELETED>    ``(A) was established under State or 
                tribal law or regulation prior to January 1, 2009, or 
                has been approved by the President pursuant to 
                subsection (e);</DELETED>
                <DELETED>    ``(B) has developed offset project type 
                standards, methodologies, and protocols through a 
                public consultation process or a peer review 
                process;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(D) requires that all emission 
                reductions, avoidance, or sequestration be verified by 
                a State regulatory agency or an accredited third-party 
                independent verification body;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(F) ensures that no credits are issued 
                for activities for which 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 project or 
                activity that caused the emission reduction, avoidance, 
                or sequestration; and</DELETED>
        <DELETED>    ``(3) for which the credit described in paragraph 
        (2) is transferred to the President.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Limitation.--Notwithstanding subsection (a)(1), 
offset credits shall be issued under this section--</DELETED>
        <DELETED>    ``(1) only for reductions or avoidance of 
        greenhouse gas emissions, or sequestration of greenhouse gases, 
        that occur after January 1, 2009; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Retirement of Credits.--The President 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).</DELETED>
<DELETED>    ``(e) Other Programs.--</DELETED>
        <DELETED>    ``(1) In general.--Offset programs that either--
        </DELETED>
                <DELETED>    ``(A) were not established under State or 
                tribal law; or</DELETED>
                <DELETED>    ``(B) were not established prior to 
                January 1, 2009;</DELETED>
        <DELETED>but that otherwise meet all of the criteria of 
        subsection (a)(2) may apply to the President to be approved 
        under this subsection as an eligible program for early offset 
        credits under this section.</DELETED>
        <DELETED>    ``(2) Approval.--The President shall approve any 
        such program that the President determines has criteria and 
        methodologies of at least equal stringency to the criteria and 
        methodologies of the programs established under State or tribal 
        law that the President determines meet the criteria of 
        subsection (a)(2). The President 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 that the 
        President determines meet the criteria of subsection (a)(2). 
        The President shall make a determination on any application 
        received under this subsection by not later than 180 days from 
        the date of receipt of the application.</DELETED>

<DELETED>``SEC. 741. ENVIRONMENTAL CONSIDERATIONS.</DELETED>

<DELETED>    ``If the President lists forestry or other relevant land 
management-related offset projects as eligible offset project types 
under section 733, the President, in consultation with appropriate 
Federal agencies, shall promulgate regulations to establish criteria 
for such offset projects--</DELETED>
        <DELETED>    ``(1) to ensure that native species are given 
        primary consideration in such projects;</DELETED>
        <DELETED>    ``(2) to enhance biological diversity in such 
        projects;</DELETED>
        <DELETED>    ``(3) to prohibit the use of federally designated 
        or State-designated noxious weeds;</DELETED>
        <DELETED>    ``(4) to prohibit the use of a species listed by a 
        regional or State invasive plant authority within the 
        applicable region or State;</DELETED>
        <DELETED>    ``(5) in the case of forestry offset projects, in 
        accordance with widely accepted, environmentally sustainable 
        forestry practices;</DELETED>
        <DELETED>    ``(6) to ensure that the offset project area was 
        not converted from native ecosystems, such as a forest, 
        grassland, scrubland or wetland, to generate offsets, unless 
        such conversation took place at least 10 years prior to the 
        date of enactment of this title or before January 1, 2009, 
        whichever date is earlier; and</DELETED>
        <DELETED>    ``(7) to the maximum extent practicable, ensure 
        that the use of offset credits would be eligible to satisfy 
        emission reduction commitments made by the United States in 
        multilateral agreements, such as the United Nations Framework 
        Convention on Climate Change, done at New York on May 9, 1992 
        (or any successor agreement).</DELETED>

<DELETED>``SEC. 742. TRADING.</DELETED>

<DELETED>    ``Section 724 shall apply to the trading of offset 
credits.</DELETED>

<DELETED>``SEC. 743. OFFICE OF OFFSETS INTEGRITY.</DELETED>

<DELETED>    ``(a) Establishment.--There is established within the 
Office of the Assistant Attorney General of the Environment and Natural 
Resources Division in the Department of Justice a Carbon Offsets 
Integrity Unit, to be headed by a Special Counsel (hereinafter referred 
to as the `Special Counsel'). The Carbon Offsets Integrity Unit and the 
Special Counsel shall be responsible to and shall report directly to 
the Assistant Attorney General of the Environment and Natural Resources 
Division.</DELETED>
<DELETED>    ``(b) Appointment.--The Special Counsel shall be appointed 
by the President, by and with the advice and consent of the 
Senate.</DELETED>
<DELETED>    ``(c) Responsibilities.--The Special Counsel shall--
</DELETED>
        <DELETED>    ``(1) supervise and coordinate investigations and 
        civil enforcement within the Department of Justice of the 
        carbon offsets program under this part;</DELETED>
        <DELETED>    ``(2) ensure that Federal law relating to civil 
        enforcement of the carbon offsets program is used to the 
        fullest extent authorized; and</DELETED>
        <DELETED>    ``(3) ensure that adequate resources are made 
        available for the investigation and enforcement of civil 
        violations of the carbon offsets program.</DELETED>
<DELETED>    ``(d) Compensation.--The Special Counsel shall be paid at 
the basic pay payable for level V of the Executive Schedule under 
section 5316 of title 5, United States Code.</DELETED>
<DELETED>    ``(e) Assignment of Personnel.--There shall be assigned to 
the Carbon Offsets Integrity Unit such personnel as the Attorney 
General determines to be necessary to provide an appropriate level of 
enforcement activity in the area of carbon offsets.</DELETED>

``SEC. 744. INTERNATIONAL OFFSET CREDITS.

<DELETED>    ``(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 pursuant to the requirements of this part or as provided 
in subsection (c), (d), or (e).</DELETED>
<DELETED>    ``(b) Issuance.--</DELETED>
        <DELETED>    ``(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, taking into 
        consideration specific factors relevant to the determination of 
        eligible international offset project types and the 
        implementation of international methodologies for each offset 
        type approved. 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.</DELETED>
        <DELETED>    ``(2) Requirements for international offset 
        credits.--The Administrator may issue international offset 
        credits only if--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) such country is a developing 
                country; and</DELETED>
                <DELETED>    ``(C) such agreement or arrangement--
                </DELETED>
                        <DELETED>    ``(i) ensures that all of the 
                        requirements of this part apply to the issuance 
                        of international offset credits under this 
                        section;</DELETED>
                        <DELETED>    ``(ii) provides for the 
                        appropriate distribution of international 
                        offset credits issued; and</DELETED>
                        <DELETED>    ``(iii) provides that the offset 
                        project developer be eligible to receive 
                        service of process in the United States for the 
                        purpose of all civil and regulatory actions in 
                        Federal courts, if such service is made in 
                        accordance with the Federal rules for service 
                        of process in the States in which the case or 
                        regulatory action is brought.</DELETED>
        <DELETED>    ``(3) Supplemental international offset 
        categories.--</DELETED>
                <DELETED>    ``(A) In general.--In order to ensure a 
                sufficient supply of international offsets and to 
                reduce the cost of compliance with this title, the 
                Administrator may establish categories of international 
                offsets in addition to those described in subsections 
                (c), (d), and (e), if--</DELETED>
                        <DELETED>    ``(i) for 2 consecutive years, the 
                        auction price for allowances reaches the market 
                        stability reserve auction price under section 
                        726(c); and</DELETED>
                        <DELETED>    ``(ii) the Administrator 
                        determines that the total amount of 
                        international offsets held by covered entities 
                        for each of the 2 years referred to in clause 
                        (i) does not exceed the limit on international 
                        offsets established under section 
                        722(d)(3).</DELETED>
                <DELETED>    ``(B) Supplemental categories.--</DELETED>
                        <DELETED>    ``(i) In general.--Any 
                        supplemental categories of international 
                        offsets established pursuant to subparagraph 
                        (A) shall--</DELETED>
                                <DELETED>    ``(I) satisfy all 
                                applicable provisions of this part, 
                                including subsection (b)(2) of this 
                                section and sections 733 and 734; 
                                and</DELETED>
                                <DELETED>    ``(II) meet the criteria 
                                described in clause (ii).</DELETED>
                        <DELETED>    ``(ii) Criteria.--The criteria 
                        referred to in clause (i)(II) are that--
                        </DELETED>
                                <DELETED>    ``(I) the country in which 
                                the activities in the offset category 
                                would take place has developed and is 
                                implementing a low carbon development 
                                plan that includes provisions for the 
                                activities described in the offset 
                                category;</DELETED>
                                <DELETED>    ``(II) the activities in 
                                the offset category are not activities 
                                included under subsection (c), (d) or 
                                (e); and</DELETED>
                                <DELETED>    ``(III) the activities in 
                                the offset category satisfy specific 
                                criteria relevant to methodologies and 
                                institutional and technical capacities 
                                associated with developing country 
                                contexts to ensure adequate treatment 
                                of leakage, additionality, and 
                                permanence.</DELETED>
<DELETED>    ``(c) Sector-Based Credits.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) identify sectors, or combinations of 
                sectors, within specific countries with respect to 
                which the issuance of international offset credits on a 
                sectoral basis is appropriate; and</DELETED>
                <DELETED>    ``(B) issue international offset credits 
                for such sectors only on a sectoral basis.</DELETED>
        <DELETED>    ``(2) Identification of sectors.--</DELETED>
                <DELETED>    ``(A) General rule.--For purposes of 
                paragraph (1)(A), a sectoral basis shall be appropriate 
                for activities--</DELETED>
                        <DELETED>    ``(i) in countries that have 
                        comparatively high greenhouse gas emissions, or 
                        comparatively greater levels of economic 
                        development; and</DELETED>
                        <DELETED>    ``(ii) that, if located in the 
                        United States, would be within a sector subject 
                        to the compliance obligation under section 
                        722.</DELETED>
                <DELETED>    ``(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:</DELETED>
                        <DELETED>    ``(i) The country's gross domestic 
                        product.</DELETED>
                        <DELETED>    ``(ii) The country's total 
                        greenhouse gas emissions.</DELETED>
                        <DELETED>    ``(iii) Whether the comparable 
                        sector of the United States economy is covered 
                        by the compliance obligation under section 
                        722.</DELETED>
                        <DELETED>    ``(iv) The heterogeneity or 
                        homogeneity of sources within the relevant 
                        sector.</DELETED>
                        <DELETED>    ``(v) Whether the relevant sector 
                        provides products or services that are sold in 
                        internationally competitive markets.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(vii) The capability of 
                        accurately measuring, monitoring, reporting, 
                        and verifying the performance of sources across 
                        the relevant sector.</DELETED>
                        <DELETED>    ``(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--
                        </DELETED>
                                <DELETED>    ``(I) ensure the integrity 
                                of the United States greenhouse gas 
                                emissions limitations established under 
                                section 703; and</DELETED>
                                <DELETED>    ``(II) encourage countries 
                                to take nationally appropriate 
                                mitigation actions to reduce or avoid 
                                greenhouse gas emissions, or sequester 
                                greenhouse gases.</DELETED>
                        <DELETED>    ``(ix) The issuance of offsets for 
                        activities that are--</DELETED>
                                <DELETED>    ``(I) in addition to 
                                nationally appropriate mitigation 
                                actions taken by developing countries 
                                pursuant to the low-carbon development 
                                plans of the countries; and</DELETED>
                                <DELETED>    ``(II) on a sectoral 
                                basis.</DELETED>
        <DELETED>    ``(3) Sectoral basis.--</DELETED>
                <DELETED>    ``(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 
                or sectors of the economy relative to a baseline level 
                of emissions established in an agreement or arrangement 
                described in subsection (b)(2)(A) for the 
                sector.</DELETED>
                <DELETED>    ``(B) Baseline.--The baseline for a sector 
                shall--</DELETED>
                        <DELETED>    ``(i) be established at levels of 
                        greenhouse gas emissions 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;</DELETED>
                        <DELETED>    ``(ii) be used to determine 
                        additionality and performance;</DELETED>
                        <DELETED>    ``(iii) account for all 
                        significant sources of emissions from a 
                        sector;</DELETED>
                        <DELETED>    ``(iv) be adjusted over time to 
                        reflect changing circumstances;</DELETED>
                        <DELETED>    ``(v) be developed taking into 
                        consideration such factors as--</DELETED>
                                <DELETED>    ``(I) any established 
                                emissions performance level for the 
                                sector;</DELETED>
                                <DELETED>    ``(II) the current 
                                performance of the sector in the 
                                country;</DELETED>
                                <DELETED>    ``(III) expected future 
                                trends of the sector in the country; 
                                and</DELETED>
                                <DELETED>    ``(IV) historical data and 
                                other factors to ensure additionality; 
                                and</DELETED>
                        <DELETED>    ``(vi) be designed to produce 
                        significant deviations from business-as-usual 
                        emissions, consistent with nationally 
                        appropriate mitigation commitments or actions, 
                        in a way that equitably contributes to meeting 
                        thresholds identified in section 
                        705(e)(2).</DELETED>
<DELETED>    ``(d) Credits Issued by an International Body.--</DELETED>
        <DELETED>    ``(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. 
        Beginning on January 1, 2016, the Administrator shall issue no 
        offset credit pursuant to this subsection if the activity 
        generating the greenhouse gas emission reductions or avoidance, 
        or greenhouse gas sequestration, occurs in a country and sector 
        identified by the Administrator under subsection (c), unless 
        the offset credit issued by the international body is 
        consistent with section 744(c).</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Offsets From Reduced Deforestation.--</DELETED>
        <DELETED>    ``(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)--</DELETED>
                <DELETED>    ``(A) the activity occurs in--</DELETED>
                        <DELETED>    ``(i) a country listed by the 
                        Administrator pursuant to paragraph 
                        (2);</DELETED>
                        <DELETED>    ``(ii) a State or province listed 
                        by the Administrator pursuant to paragraph (5); 
                        or</DELETED>
                        <DELETED>    ``(iii) a country listed by the 
                        Administrator pursuant to paragraph 
                        (6);</DELETED>
                <DELETED>    ``(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);</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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);</DELETED>
                <DELETED>    ``(E) the Administrator has determined 
                that the country within which the activity occurs has 
                in place a publicly available strategic plan that 
                includes the criteria listed in paragraph 
                (2)(C);</DELETED>
                <DELETED>    ``(F) the activity is designed, carried 
                out, and managed--</DELETED>
                        <DELETED>    ``(i) in accordance with forest 
                        management practices that--</DELETED>
                                <DELETED>    ``(I) improve the 
                                livelihoods of forest 
                                communities;</DELETED>
                                <DELETED>    ``(II) maintain the 
                                natural biodiversity, resilience, and 
                                carbon storage capacity of forests; 
                                and</DELETED>
                                <DELETED>    ``(III) do not adversely 
                                impact the permanence of forest carbon 
                                stocks or emission 
                                reductions;</DELETED>
                        <DELETED>    ``(ii) to promote or restore 
                        native forest species and ecosystems where 
                        practicable, and to avoid the introduction of 
                        invasive nonnative species;</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(v) with transparent and 
                        equitable sharing of profits and benefits 
                        derived from offset credits with local 
                        communities, indigenous peoples, and forest-
                        dependent communities;</DELETED>
                        <DELETED>    ``(vi) with full transparency, 
                        third-party independent oversight, and public 
                        dissemination of related financial and 
                        contractual arrangements, and</DELETED>
                        <DELETED>    ``(vii) so that the social and 
                        environmental impacts of these activities are 
                        monitored and reported in sufficient detail to 
                        allow appropriate officials to determine 
                        compliance with the requirements of this 
                        section;</DELETED>
                <DELETED>    ``(G) 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, done at New York on May 9, 1992; and</DELETED>
                <DELETED>    ``(H) in the case that offsets are 
                determined by comparing the national emissions from 
                deforestation relative to a national, state-level, or 
                province-level deforestation baseline as provided in 
                paragraph (4) or (5)--</DELETED>
                        <DELETED>    ``(i) a list of activities to 
                        reduce deforestation is provided to the 
                        Administrator and made publicly 
                        available;</DELETED>
                        <DELETED>    ``(ii) the social and 
                        environmental impacts of these activities are 
                        monitored and reported in sufficient detail to 
                        allow the Administrator to determine compliance 
                        with the requirements of this section; 
                        and</DELETED>
                        <DELETED>    ``(iii) the distribution of 
                        revenues for activities to reduce deforestation 
                        is transparent, subject to independent third-
                        party oversight, and publicly 
                        disseminated.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) the institutional capacity to reduce 
                emissions from deforestation, including strong forest 
                governance and mechanisms to ensure transparency and 
                third-party independent oversight of offset activities 
                and revenues, and the transparent and equitable 
                distribution of offset revenues for local actions; 
                and</DELETED>
                <DELETED>    ``(C) a land use or forest sector 
                strategic plan that--</DELETED>
                        <DELETED>    ``(i) assesses national and local 
                        drivers of deforestation and forest degradation 
                        and identifies reforms to national policies 
                        needed to address them;</DELETED>
                        <DELETED>    ``(ii) estimates the country's 
                        emissions from deforestation and forest 
                        degradation;</DELETED>
                        <DELETED>    ``(iii) identifies improvements in 
                        and a timeline for data collection, monitoring, 
                        and institutional capacity necessary to 
                        implement an effective national deforestation 
                        reduction program that meets the criteria set 
                        forth in this section (including a national 
                        deforestation baseline);</DELETED>
                        <DELETED>    ``(iv) establishes a timeline for 
                        implementing the program and transitioning 
                        forest-based economies to low-emissions 
                        development pathways with respect to emissions 
                        from forest and land use activities;</DELETED>
                        <DELETED>    ``(v) includes a national policy 
                        for consultations with, and full participation 
                        of, all stakeholders, especially indigenous and 
                        forest-dependent communities, in its design, 
                        planning, and implementation of activities, 
                        whether at the national or local level, to 
                        reduce deforestation in the country (including 
                        a national process for addressing grievances if 
                        stakeholders have been caused social, 
                        environmental, or economic harm);</DELETED>
                        <DELETED>    ``(vi) provides for the 
                        distribution of revenues for activities to 
                        reduce deforestation transparently and 
                        publicly, subject to independent third-party 
                        oversight; and</DELETED>
                        <DELETED>    ``(vii) includes a national 
                        platform or a type of registry for information 
                        relating to deforestation and degradation 
                        policy and program implementation processes, 
                        including a mechanism for the monitoring and 
                        reporting of the social and environmental 
                        impacts of those activities.</DELETED>
        <DELETED>    ``(3) Protection of interests.--With respect to an 
        agreement or arrangement described in subsection (b)(2)(A) with 
        a country 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 undertake due 
        diligence to ensure the establishment and enforcement by such 
        country of legal regimes, processes, standards, and safeguards 
        that--</DELETED>
                <DELETED>    ``(A) give due regard to the rights and 
                interests of local communities, indigenous peoples, 
                forest-dependent communities, and vulnerable social 
                groups;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(C) encourage transparent and equitable 
                sharing of profits and benefits derived from 
                international offset credits with local communities, 
                indigenous peoples, and forest-dependent 
                communities.</DELETED>
        <DELETED>    ``(4) National deforestation baseline.--A national 
        deforestation baseline established under this subsection 
        shall--</DELETED>
                <DELETED>    ``(A) be national in scope;</DELETED>
                <DELETED>    ``(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 that only reductions that are in addition to 
                such commitments or actions will generate 
                offsets;</DELETED>
                <DELETED>    ``(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, including a spatially explicit land 
                use plan that identifies intact and primary forest 
                areas and managed forest areas that are to remain while 
                the country is reaching the zero net deforestation 
                trajectory;</DELETED>
                <DELETED>    ``(D) be adjusted over time to take 
                account of changing national circumstances;</DELETED>
                <DELETED>    ``(E) be designed to account for all 
                significant sources of greenhouse gas emissions from 
                deforestation in the country; and</DELETED>
                <DELETED>    ``(F) be consistent with the national 
                deforestation baseline, if any, established for such 
                country under section 753.</DELETED>
        <DELETED>    ``(5) State-level or province-level activities.--
        </DELETED>
                <DELETED>    ``(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, and 
                periodically review and update, a list of States or 
                provinces in developing countries where--</DELETED>
                        <DELETED>    ``(i) the developing country is 
                        not included on the list of countries 
                        established pursuant to paragraph 
                        (6)(A);</DELETED>
                        <DELETED>    ``(ii) the State or province is 
                        undertaking deforestation reduction 
                        activities;</DELETED>
                        <DELETED>    ``(iii) the State or province has 
                        the capacity to engage in deforestation 
                        reduction activities at the State or province 
                        level, including--</DELETED>
                                <DELETED>    ``(I) the technical 
                                capacity to monitor and measure forest 
                                carbon fluxes for all significant 
                                sources of greenhouse gas emissions 
                                from deforestation with an acceptable 
                                amount of uncertainty, including a 
                                spatially explicit land use plan that 
                                identifies intact and primary forest 
                                areas and managed forest areas that are 
                                to remain while the country is reaching 
                                the zero net deforestation trajectory; 
                                and</DELETED>
                                <DELETED>    ``(II) the institutional 
                                capacity to reduce emissions from 
                                deforestation, including strong forest 
                                governance and mechanisms to deliver 
                                forest conservation resources for local 
                                actions;</DELETED>
                        <DELETED>    ``(iv) the State or province meets 
                        the eligibility criteria in paragraphs (2) and 
                        (3) for the geographic area under its 
                        jurisdiction; and</DELETED>
                        <DELETED>    ``(v) the country--</DELETED>
                                <DELETED>    ``(I) demonstrates that 
                                efforts are underway to transition to a 
                                national program within 5 years; 
                                or</DELETED>
                                <DELETED>    ``(II) in the 
                                determination of the Administrator, is 
                                making a good-faith effort to develop a 
                                land use or forest sector strategic 
                                national plan or program that meets the 
                                criteria described in paragraph 
                                (2)(C).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) State-level or province-level 
                deforestation baseline.--A State-level or province-
                level deforestation baseline shall--</DELETED>
                        <DELETED>    ``(i) be consistent with any 
                        existing nationally appropriate mitigation 
                        commitments or actions for the country in which 
                        the activity is occurring, so that only 
                        reductions that are in addition to those 
                        commitments or actions will generate 
                        offsets;</DELETED>
                        <DELETED>    ``(ii) be developed 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;</DELETED>
                        <DELETED>    ``(iii) establish a trajectory 
                        that would result in zero net deforestation by 
                        not later than 20 years after the State-level 
                        or province-level deforestation baseline has 
                        been established; and</DELETED>
                        <DELETED>    ``(iv) 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 
                        through monitoring of major forested areas in 
                        the host country and other areas of the host 
                        country susceptible to leakage.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(6) Projects and programs to reduce 
        deforestation.--</DELETED>
                <DELETED>    ``(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, and 
                periodically review and update, a list of developing 
                countries that--</DELETED>
                        <DELETED>    ``(i) the Administrator 
                        determines, based on recent, credible, and 
                        reliable emissions data, account 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;</DELETED>
                        <DELETED>    ``(ii) have, or in the 
                        determination of the Administrator are making a 
                        good faith effort to develop, a land use or 
                        forest sector strategic plan that meets the 
                        criteria described in paragraph (2)(C); 
                        and</DELETED>
                        <DELETED>    ``(iii) has made, or in the 
                        determination of the Administrator, is making, 
                        a good-faith effort to develop, through the 
                        implementation of activities under this 
                        section, a monitoring program for major 
                        forested areas in a host country and other 
                        areas in a host country susceptible to leakage, 
                        including a spatially explicit land use plan 
                        that identifies intact and primary forest areas 
                        and managed forest areas that are to remain 
                        while country is reaching the zero net 
                        deforestation trajectory.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(C) Project-level or program-level 
                baseline.--A project-level or program-level 
                deforestation baseline shall--</DELETED>
                        <DELETED>    ``(i) be consistent with any 
                        existing nationally appropriate mitigation 
                        commitments or actions for the country in which 
                        the project or program is occurring, so that 
                        only reductions that are in addition to such 
                        commitments or actions will generate 
                        offsets;</DELETED>
                        <DELETED>    ``(ii) be developed taking into 
                        consideration the average annual historical 
                        deforestation rates in the project or program 
                        boundary during a period of at least 5 years, 
                        applicable drivers of deforestation, and other 
                        factors to ensure additionality;</DELETED>
                        <DELETED>    ``(iii) be designed to account for 
                        all significant sources of greenhouse gas 
                        emissions from deforestation in the project or 
                        program boundary; and</DELETED>
                        <DELETED>    ``(iv) be adjusted to fully 
                        account for emissions leakage outside the 
                        project or program boundary, including--
                        </DELETED>
                                <DELETED>    ``(I) estimation through 
                                monitoring of major forested areas in a 
                                host country and other areas in a host 
                                country susceptible to leakage, 
                                pursuant to section 744(e)(5); 
                                and</DELETED>
                                <DELETED>    ``(II) a spatially 
                                explicit land use plan that identifies 
                                intact and primary forest areas and 
                                managed forest areas that are to remain 
                                while country is reaching the zero net 
                                deforestation trajectory.</DELETED>
                <DELETED>    ``(D) Phase-Out.--</DELETED>
                        <DELETED>    ``(i) In general.--Beginning on 
                        the date that is 8 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 as described in 
                        this paragraph, except as provided in clause 
                        (ii).</DELETED>
                        <DELETED>    ``(ii) Extension.--The 
                        Administrator may extend the phase out deadline 
                        for the issuance of international offset 
                        credits under this section by up to 5 years 
                        with respect to eligible activities taking 
                        place in a least developed country, which is 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, provided that the Administrator, in 
                        consultation with the Secretary of State and 
                        the Administrator of the United States Agency 
                        for International Development, determines the 
                        country--</DELETED>
                                <DELETED>    ``(I) lacks sufficient 
                                capacity to adopt and implement 
                                effective programs to achieve 
                                reductions in deforestation measured 
                                against national baselines;</DELETED>
                                <DELETED>    ``(II) is receiving 
                                support under part E to develop such 
                                capacity; and</DELETED>
                                <DELETED>    ``(III) has developed and 
                                is working to implement a credible 
                                national strategy or plan to reduce 
                                deforestation.</DELETED>
        <DELETED>    ``(7) Expansion of scope.--In implementing this 
        subsection, the Administrator, taking into consideration the 
        recommendations of the Advisory Board, may--</DELETED>
                <DELETED>    ``(A) expand credible activities to 
                include forest degradation; and</DELETED>
                <DELETED>    ``(B) include soil carbon losses 
                associated with forested wetlands or 
                peatlands.</DELETED>
<DELETED>    ``(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 
or would result in the creation of offset credits that would not be 
eligible to satisfy emissions reduction commitments made by the United 
States pursuant to the United Nations Framework Convention on Climate 
Change, done at New York on May 9, 1992 (or any successor agreement). 
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 limitations established 
pursuant to section 703.</DELETED>
<DELETED>    ``(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 
771(d) for distribution under part E.</DELETED>
<DELETED>    ``(h) Limitation.--The Administrator shall not issue 
international offset credits generated by projects based on the 
destruction of hydrofluorocarbons.''.</DELETED>

<DELETED>SEC. 102. DEFINITIONS.</DELETED>

<DELETED>    Title VII of the Clean Air Act (as added by section 101 of 
this division) is amended by inserting before part A the 
following:</DELETED>

<DELETED>``SEC. 700. DEFINITIONS.</DELETED>

<DELETED>    ``In this title:</DELETED>
        <DELETED>    ``(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 
        credit.</DELETED>
        <DELETED>    ``(2) Additionality.--The term `additionality' 
        means the extent to which reductions or avoidance of greenhouse 
        gas emissions, or sequestration of greenhouse gases, are 
        additional.</DELETED>
        <DELETED>    ``(3) Advisory board.--The term `Advisory Board' 
        means the Offsets Integrity Advisory Board established under 
        section 731.</DELETED>
        <DELETED>    ``(4) Affiliated.--The term `affiliated'--
        </DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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; 
        it includes an emission allowance, a compensatory allowance, or 
        an international emission allowance.</DELETED>
        <DELETED>    ``(6) Attributable greenhouse gas emissions.--The 
        term `attributable greenhouse gas emissions' means--</DELETED>
                <DELETED>    ``(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 for sale or 
                distribution in interstate commerce, assuming no 
                capture and sequestration of any greenhouse gas 
                emissions;</DELETED>
                <DELETED>    ``(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 fossil fuel-based carbon dioxide, nitrous 
                oxide, any fluorinated gas, other than nitrogen 
                trifluoride, that is a greenhouse gas, or any 
                combination thereof--</DELETED>
                        <DELETED>    ``(i) produced or imported by such 
                        covered entity during the previous calendar 
                        year for sale or distribution in interstate 
                        commerce; or</DELETED>
                        <DELETED>    ``(ii) released as fugitive 
                        emissions in the production of fluorinated gas; 
                        and</DELETED>
                <DELETED>    ``(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 
                the previous calendar year to customers that are not 
                covered entities, assuming no capture and sequestration 
                of that greenhouse gas.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(9) Capped source.--The term `capped source' 
        means a source that directly emits capped emissions.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(12) Compensatory allowance.--The term 
        `compensatory allowance' means an allowance issued under 
        section 721(f).</DELETED>
        <DELETED>    ``(13) Covered entity.--The term `covered entity' 
        means each of the following:</DELETED>
                <DELETED>    ``(A) Any electricity source.</DELETED>
                <DELETED>    ``(B)(i) Any stationary source that 
                produces 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.</DELETED>
                <DELETED>    ``(ii) Any entity that (or any group of 2 
                or more affiliated entities that, in the aggregate) 
                imports 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.</DELETED>
                <DELETED>    ``(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 more than 25,000 tons of 
                carbon dioxide equivalent of--</DELETED>
                        <DELETED>    ``(i) fossil fuel-based carbon 
                        dioxide;</DELETED>
                        <DELETED>    ``(ii) nitrous oxide;</DELETED>
                        <DELETED>    ``(iii) except as otherwise 
                        provided in section 714, 
                        perfluorocarbons;</DELETED>
                        <DELETED>    ``(iv) sulfur 
                        hexafluoride;</DELETED>
                        <DELETED>    ``(v) any other fluorinated gas, 
                        except for nitrogen trifluoride, that is a 
                        greenhouse gas, as designated by the 
                        Administrator under section 711(b) or (c); 
                        or</DELETED>
                        <DELETED>    ``(vi) any combination of 
                        greenhouse gases described in clauses (i) 
                        through (v).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(E) Any geologic sequestration 
                site.</DELETED>
                <DELETED>    ``(F) Any stationary source in the 
                following industrial sectors:</DELETED>
                        <DELETED>    ``(i) Adipic acid 
                        production.</DELETED>
                        <DELETED>    ``(ii) Primary aluminum 
                        production.</DELETED>
                        <DELETED>    ``(iii) Ammonia 
                        manufacturing.</DELETED>
                        <DELETED>    ``(iv) Cement production, 
                        excluding grinding-only operations.</DELETED>
                        <DELETED>    ``(v) Hydrochlorofluorocarbon 
                        production.</DELETED>
                        <DELETED>    ``(vi) Lime 
                        manufacturing.</DELETED>
                        <DELETED>    ``(vii) Nitric acid 
                        production.</DELETED>
                        <DELETED>    ``(viii) Petroleum 
                        refining.</DELETED>
                        <DELETED>    ``(ix) Phosphoric acid 
                        production.</DELETED>
                        <DELETED>    ``(x) Silicon carbide 
                        production.</DELETED>
                        <DELETED>    ``(xi) Soda ash 
                        production.</DELETED>
                        <DELETED>    ``(xii) Titanium dioxide 
                        production.</DELETED>
                        <DELETED>    ``(xiii) Coal-based liquid or 
                        gaseous fuel production.</DELETED>
                <DELETED>    ``(G) Any stationary source in the 
                chemical or petrochemical sector that, in 2008 or any 
                subsequent year--</DELETED>
                        <DELETED>    ``(i) produces acrylonitrile, 
                        carbon black, ethylene, ethylene dichloride, 
                        ethylene oxide, or methanol; or</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(H) Any stationary source that--
                </DELETED>
                        <DELETED>    ``(i) is in one of the following 
                        industrial sectors: ethanol production; 
                        ferroalloy production; fluorinated gas 
                        production; food processing; glass production; 
                        hydrogen production; metal ore production or 
                        other processing; iron and steel production; 
                        lead production; pulp and paper manufacturing; 
                        and zinc production; and</DELETED>
                        <DELETED>    ``(ii) has emitted 25,000 or more 
                        tons of carbon dioxide equivalent in 2008 or 
                        any subsequent year.</DELETED>
                <DELETED>    ``(I) Any fossil fuel-fired combustion 
                device (such as a boiler) or grouping of such devices 
                that--</DELETED>
                        <DELETED>    ``(i) is all or part of an 
                        industrial source not specified in subparagraph 
                        (D), (F), (G), or (H); and</DELETED>
                        <DELETED>    ``(ii) has emitted 25,000 or more 
                        tons of carbon dioxide equivalent in 2008 or 
                        any subsequent year.</DELETED>
                <DELETED>    ``(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 to 
                customers that are not covered entities.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(15) Designated representative.--The term 
        `designated representative' means, with respect to a covered 
        entity, a reporting entity, 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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(17) Domestic offset credit.--</DELETED>
                <DELETED>    ``(A) In general.--The term `domestic 
                offset credit' means an offset credit issued under part 
                D, other than an international offset credit.</DELETED>
                <DELETED>    ``(B) Exclusion.--The term `domestic 
                offset credit' does not include a term offset 
                credit.</DELETED>
        <DELETED>    ``(18) Electricity source.--The term `electricity 
        source' means a stationary source that includes one or more 
        utility units.</DELETED>
        <DELETED>    ``(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 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).</DELETED>
        <DELETED>    ``(20) Emission allowance.--The term `emission 
        allowance' means an allowance established under section 721(a) 
        or 726(g)(2).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(27) Geologic sequestration site.--The term 
        `geologic sequestration site' means a site where carbon dioxide 
        is geologically sequestered.</DELETED>
        <DELETED>    ``(28) Greenhouse gas.--The term `greenhouse gas' 
        means any gas described in section 711(a) or designated under 
        section 711(b), (c), or (e), except to the extent that it is 
        regulated under title VI.</DELETED>
        <DELETED>    ``(29) High conservation priority land.--The term 
        `high conservation priority land' means land that is not 
        Federal land and is--</DELETED>
                <DELETED>    ``(A) globally or State ranked as 
                critically imperiled or imperiled under a State Natural 
                Heritage Program; or</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(30) Hold.--The term `hold' means, with respect 
        to an allowance, offset credit, or term offset credit, to have 
        in the appropriate account in the allowance tracking system, or 
        submit to the Administrator for recording in such 
        account.</DELETED>
        <DELETED>    ``(31) Industrial source.--The term `industrial 
        source' means any stationary source that--</DELETED>
                <DELETED>    ``(A) is not an electricity source; 
                and</DELETED>
                <DELETED>    ``(B) is in--</DELETED>
                        <DELETED>    ``(i) the manufacturing sector (as 
                        defined in North American Industrial 
                        Classification System codes 31, 32, and 33); 
                        or</DELETED>
                        <DELETED>    ``(ii) the natural gas processing 
                        or natural gas pipeline transportation sector 
                        (as defined in North American Industrial 
                        Classification System codes 211112 or 
                        486210).</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(33) International offset credit.--The term 
        `international offset credit' means an offset credit issued by 
        the Administrator under section 744.</DELETED>
        <DELETED>    ``(34) Leakage.--The term `leakage' means a 
        significant increase in greenhouse gas emissions, or 
        significant decrease in sequestration, which is caused by an 
        offset project and occurs outside the boundaries of the offset 
        project.</DELETED>
        <DELETED>    ``(35) Market stability reserve allowance.--The 
        term `market stability reserve allowance' means an emission 
        allowance reserved for, transferred to, or deposited in the 
        market stability reserve, or established, under section 
        726.</DELETED>
        <DELETED>    ``(36) 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.</DELETED>
        <DELETED>    ``(37) Natural gas liquid.--The term `natural gas 
        liquid' means ethane, butane, isobutane, natural gasoline, and 
        propane which is ready for commercial sale or use.</DELETED>
        <DELETED>    ``(38) 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)).</DELETED>
        <DELETED>    ``(39) Offset credit.--</DELETED>
                <DELETED>    ``(A) In general.--The term `offset 
                credit' means an offset credit issued under part 
                D.</DELETED>
                <DELETED>    ``(B) Exclusion.--The term `offset credit' 
                does not include a term offset credit.</DELETED>
        <DELETED>    ``(40) 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.</DELETED>
        <DELETED>    ``(41) 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).</DELETED>
        <DELETED>    ``(42) Qualified r&d facility.--The term 
        `qualified R&D facility' means a facility that conducts 
        research and development, that was in operation as of the date 
        of enactment of this title, and that is part of a covered 
        entity subject to paragraphs (1) through (8) of section 
        722(b).</DELETED>
        <DELETED>    ``(43) Petroleum.--The term `petroleum' includes 
        crude oil, tar sands, oil shale, and heavy oils.</DELETED>
        <DELETED>    ``(44) Repeated intentional reversals.--The term 
        `repeated intentional reversals' means at least 3 intentional 
        reversals, as determined by the Administrator or a court under 
        section 734(b)(3)(B)(ii).</DELETED>
        <DELETED>    ``(45) Research and development.--The term 
        `research and development' means activities--</DELETED>
                <DELETED>    ``(A) that are conducted in process units 
                or at laboratory bench-scale settings;</DELETED>
                <DELETED>    ``(B) whose purpose is to conduct research 
                and development for new processes, technologies, or 
                products that contribute to lower greenhouse gas 
                emissions; and</DELETED>
                <DELETED>    ``(C) that do not manufacture products for 
                sale.</DELETED>
        <DELETED>    ``(46) Renewable biomass.--The term `renewable 
        biomass' means any of the following:</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Plant material, including waste 
                material, harvested or collected from pastureland that 
                was nonforested on January 1, 2009.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(D) Animal waste or animal byproducts, 
                including products of animal waste digesters.</DELETED>
                <DELETED>    ``(E) Algae.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(G) Residues from or byproducts of 
                milled logs.</DELETED>
                <DELETED>    ``(H) Any of the following removed from 
                forested land that is not Federal and is not high 
                conservation priority land:</DELETED>
                        <DELETED>    ``(i) Trees, brush, slash, 
                        residues, interplanted energy crops, or any 
                        other vegetative matter removed from an 
                        actively managed tree plantation established--
                        </DELETED>
                                <DELETED>    ``(I) prior to January 1, 
                                2009; or</DELETED>
                                <DELETED>    ``(II) on land that, as of 
                                January 1, 2009, was cultivated or 
                                fallow and non-forested.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(iv) Dead or severely damaged 
                        trees removed within 5 years of fire, blowdown, 
                        or other natural disaster, and badly infested 
                        trees.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(ii) harvested in 
                        environmentally sustainable quantities, as 
                        determined by the appropriate Federal land 
                        manager; and</DELETED>
                        <DELETED>    ``(iii) are harvested in 
                        accordance with Federal and State law, and 
                        applicable land management plans.</DELETED>
        <DELETED>    ``(47) Retire.--The term `retire', with respect to 
        an allowance, offset credit, or term 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, offset credit, or term offset 
        credit to satisfy a compliance obligation.</DELETED>
        <DELETED>    ``(48) Reversal.--The term `reversal' means an 
        intentional or unintentional loss of sequestered greenhouse 
        gases to the atmosphere.</DELETED>
        <DELETED>    ``(49) 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.</DELETED>
        <DELETED>    ``(50) 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.</DELETED>
        <DELETED>    ``(51) Ton.--The term `ton' means a metric 
        ton.</DELETED>
        <DELETED>    ``(52) Uncapped emissions.--The term `uncapped 
        emissions' means emissions of greenhouse gases emitted after 
        December 31, 2011, that are not capped emissions.</DELETED>
        <DELETED>    ``(53) 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.</DELETED>
        <DELETED>    ``(54) 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--</DELETED>
                <DELETED>    ``(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; or</DELETED>
                <DELETED>    ``(B) combusts materials of which more 
                than 95 percent is municipal solid waste on a heat 
                input basis.</DELETED>
        <DELETED>    ``(55) 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 market stability reserve allowance shall be 
        the year in which such allowance is purchased at 
        auction.''.</DELETED>

<DELETED>SEC. 103. OFFSET REPORTING REQUIREMENTS.</DELETED>

<DELETED>    Section 114 of Clean Air Act (42 U.S.C. 7414) is amended 
by adding at the end the following:</DELETED>
<DELETED>    ``(e) Recordkeeping for Carbon Offsets Program.--For the 
purpose of implementing the carbon offsets program set forth in 
subtitle D of title VII, the Administrator shall require any person who 
is an offset project developer, and may require any person who is a 
third-party verifier, to establish and maintain records, for a period 
of not less than the crediting period under section 734(c) plus 5 
years, relating to--</DELETED>
        <DELETED>    ``(1) any offset project approval petition 
        submitted to the appropriate officials under section 
        735;</DELETED>
        <DELETED>    ``(2) any reversals which occur with respect to an 
        offset project;</DELETED>
        <DELETED>    ``(3) any verification reports; and</DELETED>
        <DELETED>    ``(4) any other aspect of the offset project that 
        the appropriate officials determines is 
        appropriate.''.</DELETED>

        <DELETED>Subtitle B--Disposition of Allowances</DELETED>

<DELETED>SEC. 111. DISPOSITION OF ALLOWANCES FOR GLOBAL WARMING 
              POLLUTION REDUCTION PROGRAM.</DELETED>

<DELETED>    Title VII of the Clean Air Act (as amended by section 141 
of this division) is amended by adding at the end the 
following:</DELETED>

         <DELETED>``PART H--DISPOSITION OF ALLOWANCES</DELETED>

<DELETED>``SEC. 771. ALLOCATION OF EMISSION ALLOWANCES.</DELETED>

<DELETED>    ``(a) Allocation.--The Administrator shall allocate 
emission allowances for the following purposes:</DELETED>
        <DELETED>    ``(1) The program for electricity consumers 
        pursuant to section 772.</DELETED>
        <DELETED>    ``(2) The program for natural gas consumers 
        pursuant to section 773.</DELETED>
        <DELETED>    ``(3) The program for home heating oil and propane 
        consumers pursuant to section 774.</DELETED>
        <DELETED>    ``(4) The program for domestic fuel production, 
        including petroleum refiners and small business refiners, under 
        section 775.</DELETED>
        <DELETED>    ``(5) The program to ensure real reductions in 
        industrial emissions under part F.</DELETED>
        <DELETED>    ``(6) The program for commercial deployment of 
        carbon capture and sequesration technologies under section 
        780.</DELETED>
        <DELETED>    ``(7) The program for early action recognition 
        pursuant to section 782.</DELETED>
        <DELETED>    ``(8) The program for State and local investment 
        in energy efficiency and renewable energy under section 202 of 
        division B of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(9) The program for energy efficiency in 
        building codes under section 163 of division A, and section 203 
        of division B, of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(10) The program for retrofit for energy and 
        environmental performance under section 164 of division A, and 
        204 of division B, of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(11) The program for Energy Innovation Hubs 
        pursuant to section 205 of division B of the Clean Energy Jobs 
        and American Power Act.</DELETED>
        <DELETED>    ``(12) The program for ARPA-E research pursuant to 
        section 206 of division B of the Clean Energy Jobs and American 
        Power Act.</DELETED>
        <DELETED>    ``(13) The International Clean Energy Deployment 
        Program under section 323 of division A, and section 207 of 
        division B, of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(14) The international climate change adaptation 
        and global security program under section 324 of division A, 
        and section 208 of division B, of the Clean Energy Jobs and 
        American Power Act.</DELETED>
<DELETED>    ``(b) Auctions.--The Administrator shall auction, pursuant 
to section 778, emission allowances for the following 
purposes:</DELETED>
        <DELETED>    ``(1) The Market Stability Reserve Fund under 
        section 726.</DELETED>
        <DELETED>    ``(2) The program for climate change consumer 
        refunds and low- and moderate-income consumers pursuant to 
        section 776, including--</DELETED>
                <DELETED>    ``(A) consumer rebates under section 
                776(a); and</DELETED>
                <DELETED>    ``(B) energy refunds under section 
                776(b).</DELETED>
        <DELETED>    ``(3) The program for investment in clean vehicle 
        technology under section 201 of division B of the Clean Energy 
        Jobs and American Power Act.</DELETED>
        <DELETED>    ``(4) The program for State and local investment 
        in energy efficiency and renewable energy under section 202 of 
        division B of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(5) The program for energy efficiency and 
        renewable energy worker training under section 209 of division 
        B of the Clean Energy Jobs and American Power Act.</DELETED>
        <DELETED>    ``(6) The program for worker transition under part 
        2 of subtitle A of title III of division A, and section 210 of 
        division B, of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(7) The State programs for greenhouse gas 
        reduction and climate adaptation pursuant to section 211 of 
        division B of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(8) The program for public health and climate 
        change under subpart B of part 1 of subtitle C of title III of 
        division A, and section 212 of division B, of the Clean Energy 
        Jobs and American Power Act.</DELETED>
        <DELETED>    ``(9) The program for climate change safeguards 
        for natural resources conservation under subpart C of part 1 of 
        subtitle C of title III of division A, and section 213 of 
        division B, of the Clean Energy Jobs and American Power 
        Act.</DELETED>
        <DELETED>    ``(10) Nuclear worker training under section 132 
        of division A, and section 214 of division B, of the Clean 
        Energy Jobs and American Power Act.</DELETED>
        <DELETED>    ``(11) The supplemental agriculture and forestry 
        greenhouse gas reduction and renewable energy program under 
        section 155 of division A, and section 215 of division B, of 
        the Clean Energy Jobs and American Power Act.</DELETED>
<DELETED>    ``(c) Deficit Reduction.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator shall--
        </DELETED>
                <DELETED>    ``(A) auction, pursuant to section 778, 
                emission allowances for deficit reduction in the 
                amounts described in paragraph (2); and</DELETED>
                <DELETED>    ``(B) deposit those proceeds immediately 
                on receipt in the Deficit Reduction Fund established by 
                section 783.</DELETED>
        <DELETED>    ``(2) Amounts.--For vintage years 2012 through 
        2050, 25.0 percent of emission allowances established for each 
        year under section 721(a) shall be auctioned and the proceeds 
        deposited pursuant to paragraph (1) to ensure that this title 
        does not contribute to the deficit for that particular calendar 
        year.</DELETED>
<DELETED>    ``(d) Supplemental Reductions.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator shall 
        allocate allowances for each vintage year to achieve 
        supplemental reductions pursuant to section 753.</DELETED>
        <DELETED>    ``(2) Adjustment.--The Administrator shall modify 
        the allowances allocated under paragraph (1) as necessary to 
        ensure the achievement of the annual supplemental emissions 
        reduction objective for 2020 set forth in section 
        704.</DELETED>

``SEC. 772. ELECTRICITY CONSUMERS.

<DELETED>    ``(a) Definitions.--For purposes of this 
section:</DELETED>
        <DELETED>    ``(1) CHP savings.--The term `CHP savings' means--
        </DELETED>
                <DELETED>    ``(A) CHP system savings from a combined 
                heat and power system that commences operation after 
                the date of enactment of this section; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(3) 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 
        those 2 fuels.</DELETED>
        <DELETED>    ``(4) 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.</DELETED>
        <DELETED>    ``(5) Electricity local distribution company.--The 
        term `electricity local distribution company' means an electric 
        utility--</DELETED>
                <DELETED>    ``(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; 
                and</DELETED>
                <DELETED>    ``(B) the retail rates of which, except in 
                the case of an electric cooperative, are regulated or 
                set by--</DELETED>
                        <DELETED>    ``(i) a State regulatory 
                        authority;</DELETED>
                        <DELETED>    ``(ii) a State or political 
                        subdivision thereof (or an agency or 
                        instrumentality of, or corporation wholly owned 
                        by, either of the foregoing); or</DELETED>
                        <DELETED>    ``(iii) an Indian tribe pursuant 
                        to tribal law.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) customer facility savings of 
                electricity, adjusted to reflect any associated 
                increase in fuel consumption at the facility;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(C) CHP savings; and</DELETED>
                <DELETED>    ``(D) fuel cell savings.</DELETED>
        <DELETED>    ``(7) 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.</DELETED>
        <DELETED>    ``(8) 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--</DELETED>
                <DELETED>    ``(A) the fuel cell meets such 
                requirements relating to efficiency and other operating 
                characteristics as the Federal Energy Regulatory 
                Commission may promulgate by regulation; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(9) Independent power production facility.--The 
        term `independent power production facility' means a facility--
        </DELETED>
                <DELETED>    ``(A) that is used for the generation of 
                electric energy, at least 80 percent of which is sold 
                at wholesale; and</DELETED>
                <DELETED>    ``(B) the sales of the output of which are 
                not subject to retail rate regulation or setting of 
                retail rates by--</DELETED>
                        <DELETED>    ``(i) a State regulatory 
                        authority;</DELETED>
                        <DELETED>    ``(ii) a State or political 
                        subdivision thereof (or an agency or 
                        instrumentality of, or corporation wholly owned 
                        by, either of the foregoing);</DELETED>
                        <DELETED>    ``(iii) an electric cooperative; 
                        or</DELETED>
                        <DELETED>    ``(iv) an Indian tribe pursuant to 
                        tribal law.</DELETED>
        <DELETED>    ``(10) 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--</DELETED>
                <DELETED>    ``(A) a covered entity; and</DELETED>
                <DELETED>    ``(B) as of the date of enactment of this 
                title--</DELETED>
                        <DELETED>    ``(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; or</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(11) Merchant coal unit.--The term `merchant 
        coal unit' means a coal-fueled unit that--</DELETED>
                <DELETED>    ``(A) is or is part of a covered 
                entity;</DELETED>
                <DELETED>    ``(B) is not owned by a Federal, State, or 
                regional agency or power authority; and</DELETED>
                <DELETED>    ``(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--
                </DELETED>
                        <DELETED>    ``(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; 
                        and</DELETED>
                        <DELETED>    ``(ii) is not subject to retail 
                        rate regulation or setting of retail rates by--
                        </DELETED>
                                <DELETED>    ``(I) a State regulatory 
                                authority;</DELETED>
                                <DELETED>    ``(II) a State or 
                                political subdivision thereof (or an 
                                agency or instrumentality of, or 
                                corporation wholly owned by, either of 
                                the foregoing);</DELETED>
                                <DELETED>    ``(III) an electric 
                                cooperative; or</DELETED>
                                <DELETED>    ``(IV) an Indian tribe 
                                pursuant to tribal law.</DELETED>
        <DELETED>    ``(12) 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 (11)(C).</DELETED>
        <DELETED>    ``(13) 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 January 1, 
        2013.</DELETED>
        <DELETED>    ``(14) New merchant coal unit.--The term `new 
        merchant coal unit' means a merchant coal unit--</DELETED>
                <DELETED>    ``(A) that commenced operation on or after 
                January 1, 2009 and before January 1, 2013; 
                and</DELETED>
                <DELETED>    ``(B) the actual, on-site construction of 
                which commenced prior to January 1, 2009.</DELETED>
        <DELETED>    ``(15) Qualified hydropower.--The term `qualified 
        hydropower' means--</DELETED>
                <DELETED>    ``(A) energy produced from increased 
                efficiency achieved, or additions of capacity made, on 
                or after January 1, 1988, 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; 
                or</DELETED>
                <DELETED>    ``(B) energy produced from generating 
                capacity added to a dam on or after January 1, 1988, 
                provided that the Federal Energy Regulatory Commission 
                certifies that--</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(ii) the hydroelectric project 
                        installed on the dam is licensed (or is exempt 
                        from licensing) by the Federal Energy 
                        Regulatory 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; and</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(16) 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)).</DELETED>
        <DELETED>    ``(17) Renewable energy resource.--The term 
        `renewable energy resource' means each of the 
        following:</DELETED>
                <DELETED>    ``(A) Wind energy.</DELETED>
                <DELETED>    ``(B) Solar energy.</DELETED>
                <DELETED>    ``(C) Geothermal energy.</DELETED>
                <DELETED>    ``(D) Renewable biomass.</DELETED>
                <DELETED>    ``(E) Biogas derived exclusively from 
                renewable biomass.</DELETED>
                <DELETED>    ``(F) Biofuels derived exclusively from 
                renewable biomass.</DELETED>
                <DELETED>    ``(G) Qualified hydropower.</DELETED>
                <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(18) 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.</DELETED>
        <DELETED>    ``(19) 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)).</DELETED>
        <DELETED>    ``(20) 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)).</DELETED>
<DELETED>    ``(b) Electricity Local Distribution Companies.--
</DELETED>
        <DELETED>    ``(1) Distribution of allowances.--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 771(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 771(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.</DELETED>
        <DELETED>    ``(2) Distribution based on emissions.--</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(B) Base period.--</DELETED>
                        <DELETED>    ``(i) Vintage years 2012 and 
                        2013.--For vintage years 2012 and 2013, an 
                        electricity local distribution company's base 
                        period shall be--</DELETED>
                                <DELETED>    ``(I) calendar years 2006 
                                through 2008; or</DELETED>
                                <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(ii) Vintage years 2014 and 
                        thereafter.--For vintage years 2014 and 
                        thereafter, the base period shall be--
                        </DELETED>
                                <DELETED>    ``(I) the base period 
                                selected under clause (i); or</DELETED>
                                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Determination of emissions.--
                </DELETED>
                        <DELETED>    ``(i) Determination for 1999-
                        2008.--As part of the regulations promulgated 
                        pursuant to subsection (g), 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.</DELETED>
                        <DELETED>    ``(ii) Adjustments for new coal-
                        fueled units.--</DELETED>
                                <DELETED>    ``(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.</DELETED>
                                <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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:</DELETED>
                                <DELETED>    ``(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.</DELETED>
                                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Distribution based on deliveries.--
        </DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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); and</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Prohibition against excess distributions.--
        The regulations promulgated under subsection (g) 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).</DELETED>
        <DELETED>    ``(5) Use of allowances.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) among ratepayer classes 
                        ratably based on electricity deliveries to each 
                        class; and</DELETED>
                        <DELETED>    ``(ii) equitably among individual 
                        ratepayers within each ratepayer class, 
                        including entities that receive emission 
                        allowances pursuant to part F.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(D) Residential and 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 residential or 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--</DELETED>
                        <DELETED>    ``(i) shall pass through to 
                        residential retail ratepayers as a class their 
                        ratable share (based on deliveries to each 
                        ratepayer class) of the value of the emission 
                        allowances that reduce electricity cost impacts 
                        on such ratepayers; and</DELETED>
                        <DELETED>    ``(ii) shall pass through to 
                        industrial ratepayers as a class their ratable 
                        share (based on deliveries to each ratepayer 
                        class) of the value of the emission allowances 
                        that reduce electricity cost impacts on such 
                        ratepayers. The electricity local distribution 
                        company may do so based on the quantity of 
                        electricity delivered to individual industrial 
                        retail ratepayers.</DELETED>
                <DELETED>    ``(E) Guidelines.--As part of the 
                regulations promulgated under subsection (g), the 
                Administrator shall, after consultation with State 
                regulatory authorities, prescribe guidelines for the 
                implementation of the requirements of this paragraph. 
                Such guidelines shall include--</DELETED>
                        <DELETED>    ``(i) requirements to ensure that 
                        residential and 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; and</DELETED>
                        <DELETED>    ``(ii) requirements for 
                        measurement, verification, reporting, and 
                        approval of methods used to assure the use of 
                        allowance values to benefit retail 
                        ratepayers.</DELETED>
        <DELETED>    ``(6) Regulatory proceedings.--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(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); and</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(7) Plans and reporting.--</DELETED>
                <DELETED>    ``(A) Regulations.--As part of the 
                regulations promulgated under subsection (g), the 
                Administrator shall prescribe requirements governing 
                plans and reports to be submitted in accordance with 
                this paragraph.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Reports.--Not later than June 30, 
                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--</DELETED>
                        <DELETED>    ``(i) a description of sales, 
                        transfer, exchange, or use by the company for 
                        compliance with obligations under this title, 
                        of any such emission allowances;</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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; 
                        and</DELETED>
                        <DELETED>    ``(iv) such other information as 
                        the Administrator may require pursuant to 
                        subparagraph (A).</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(8) Administrator audit reports.--</DELETED>
                <DELETED>    ``(A) In general.--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 residential and 
                industrial retail ratepayers (including entities that 
                receive emission allowances under part F) receive their 
                ratable share of the value of such allowances. The 
                Administrator shall assess the degree to which electric 
                local distribution companies have maintained a marginal 
                electric price signal while protecting consumers on 
                total cost using the value of emissions 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.</DELETED>
                <DELETED>    ``(B) GAO audit report.--Not later than 
                April 30, 2015, and every 3 years thereafter through 
                2026, the Comptroller General of the United States, 
                incorporating results from the Administrators' audit 
                report and other relevant information including 
                distribution company reports, shall conduct an in-depth 
                evaluation and make available to the public a report on 
                the investments made pursuant to paragraph (5). Said 
                report shall be made available to the State regulatory 
                authority, or the entity with authority to regulate or 
                set retail electricity rates in the case of an 
                electricity distribution company that is not regulated 
                by a State regulatory authority, and shall include a 
                description of how the distribution companies in the 
                audit meet or fail to meet the requirement of paragraph 
                (5), including for investments made in cost-effective 
                end-use energy efficiency programs, the lifetime and 
                annual energy saving benefits, and capacity benefits of 
                said programs.</DELETED>
                <DELETED>    ``(C) Administrator cost containment 
                report.--Not later than April 30, 2015 and every 3 
                years thereafter through 2026, the Administrator shall 
                transmit a report to Congress containing an evaluation 
                of the disposition of the value of emission allowances 
                received pursuant to this subsection and subsection (e) 
                and recommendations of ways to more effectively direct 
                the value of allowances to reduce costs for consumers, 
                contain the overall costs of the greenhouse gas 
                emissions reduction program, and meet the pollution 
                reduction targets of the Act. The Administrator shall 
                make available to the public such report, including by 
                publishing such report on the Internet.</DELETED>
        <DELETED>    ``(9) Enforcement.--A violation of any requirement 
        of this subsection or of subsection (e), irrespective of 
        approval by a State regulatory authority, 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.</DELETED>
<DELETED>    ``(c) Merchant Coal Units.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) captured and sequestered in such 
                calendar year; or</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Base period.--For purposes of this 
        subsection, the base period for a merchant coal unit shall be--
        </DELETED>
                <DELETED>    ``(A) calendar years 2006 through 2008; 
                or</DELETED>
                <DELETED>    ``(B) in the case of a new merchant coal 
                unit--</DELETED>
                        <DELETED>    ``(i) the first full calendar year 
                        of operation of such unit, if such unit 
                        commences operation before January 1, 
                        2012;</DELETED>
                        <DELETED>    ``(ii) calendar year 2012, if such 
                        unit commences operation on or after January 1, 
                        2012, and before October 1, 2012; or</DELETED>
                        <DELETED>    ``(iii) calendar year 2013, if 
                        such unit commences operation on or after 
                        October 1, 2012, and before January 1, 
                        2013.</DELETED>
        <DELETED>    ``(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 771(a)(1). Such factor 
        shall--</DELETED>
                <DELETED>    ``(A) for vintage year 2012, be equal to 
                1.0;</DELETED>
                <DELETED>    ``(B) for each of vintage years 2013 
                through 2029, correspond to the quotient of--</DELETED>
                        <DELETED>    ``(i) the quantity of emission 
                        allowances allocated under section 771(a)(1) 
                        for such vintage year; divided by</DELETED>
                        <DELETED>    ``(ii) the quantity of emission 
                        allowances allocated under section 771(a)(1) 
                        for vintage year 2012.</DELETED>
        <DELETED>    ``(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)(11)(C) in an 
        amount equal to the product of--</DELETED>
                <DELETED>    ``(A) 0.5;</DELETED>
                <DELETED>    ``(B) the qualifying emissions for such 
                merchant coal unit for the preceding year, as 
                determined under paragraph (1); and</DELETED>
                <DELETED>    ``(C) the phase-down factor for the 
                preceding calendar year, as identified under paragraph 
                (3).</DELETED>
        <DELETED>    ``(5) Adjustment.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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 771(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 771(a)(1) for such 
        vintage year ratably among merchant coal generators based on 
        the applicable formula under paragraph (4) or (5).</DELETED>
        <DELETED>    ``(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).</DELETED>
<DELETED>    ``(d) Long-Term Contract Generators.--</DELETED>
        <DELETED>    ``(1) Distribution.--Not later than March 1, 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--</DELETED>
                <DELETED>    ``(A) the number of tons of carbon dioxide 
                emitted as a result of a qualifying electricity sales 
                agreement referred to in subsection (a)(10)(B)(i); 
                and</DELETED>
                <DELETED>    ``(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)(10)(B)(ii), provided that in no event 
                shall the Administrator distribute more than 1 emission 
                allowance for the same ton of emissions.</DELETED>
        <DELETED>    ``(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 771(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 771(a)(1) for such 
        vintage year ratably among long-term contract generators based 
        on paragraph (1).</DELETED>
        <DELETED>    ``(3) Eligibility.--</DELETED>
                <DELETED>    ``(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)(10).</DELETED>
                <DELETED>    ``(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)(10)(B) upon the earliest date that 
                such agreement--</DELETED>
                        <DELETED>    ``(i) expires;</DELETED>
                        <DELETED>    ``(ii) is terminated; or</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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:</DELETED>
                <DELETED>    ``(A) A certificate of representation 
                described in section 700(15).</DELETED>
                <DELETED>    ``(B) An identification of each owner and 
                each operator of the facility.</DELETED>
                <DELETED>    ``(C) An identification of the units at 
                the facility and the location of the 
                facility.</DELETED>
                <DELETED>    ``(D) A written certification by the 
                designated representative that the facility meets all 
                the requirements of the definition of a long-term 
                contract generator.</DELETED>
                <DELETED>    ``(E) The expiration date of each 
                qualifying electricity or thermal sales agreement 
                referred to in subsection (a)(10)(B).</DELETED>
                <DELETED>    ``(F) A copy of each qualifying 
                electricity or thermal sales agreement referred to in 
                subsection (a)(10)(B).</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Small LDCs.--</DELETED>
        <DELETED>    ``(1) Distribution.--The Administrator shall, in 
        accordance with this subsection, distribute emission allowances 
        allocated pursuant to section 771(a)(1) 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.</DELETED>
        <DELETED>    ``(2) Uses.--A small LDC receiving allowances 
        under this section shall use such allowances exclusively for 
        the following purposes:</DELETED>
                <DELETED>    ``(A) Cost-effective programs to achieve 
                electricity savings, provided that such savings shall 
                not be transferred or used for compliance with any 
                renewable electricity standard established under the 
                Public Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2601 et seq.).</DELETED>
                <DELETED>    ``(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 the Public Utility Regulatory 
                Policies Act of 1978 (16 U.S.C. 2601 et 
                seq.).</DELETED>
                <DELETED>    ``(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)).</DELETED>
        <DELETED>    ``(3) Requirements.--As part of the regulations 
        promulgated under subsection (g), the Administrator shall 
        prescribe--</DELETED>
                <DELETED>    ``(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 by 
                law;</DELETED>
                <DELETED>    ``(B) eligibility criteria and guidelines 
                for consumer assistance programs for low-income 
                residential ratepayers under paragraph (2)(C); 
                and</DELETED>
                <DELETED>    ``(C) such other requirements as the 
                Administrator determines appropriate to ensure 
                compliance with the requirements of this 
                subsection.</DELETED>
        <DELETED>    ``(4) Reporting.--Reports submitted under 
        subsection (b)(7) shall include, in accordance with such 
        requirements as the Administrator may prescribe--</DELETED>
                <DELETED>    ``(A) a description of any facilities 
                deployed under paragraph (2)(A), the quantity of 
                resulting electricity generation from renewable energy 
                resources;</DELETED>
                <DELETED>    ``(B) an assessment demonstrating the 
                cost-effectiveness of, and electricity savings achieved 
                by, programs supported under paragraph (2)(B); 
                and</DELETED>
                <DELETED>    ``(C) a description of assistance provided 
                to low-income retail ratepayers under paragraph 
                (2)(C).</DELETED>
<DELETED>    ``(f) Certain Cogeneration Facilities.--</DELETED>
        <DELETED>    ``(1) Eligible cogeneration facilities.--For 
        purposes of this subsection, an `eligible cogeneration 
        facility' is a facility that--</DELETED>
                <DELETED>    ``(A) is a qualifying co-generation 
                facility (as that term is defined in section 3(18)(B) 
                of the Federal Power Act (16 U.S.C. 
                796(18)(B));</DELETED>
                <DELETED>    ``(B) derives 80 percent or more of its 
                heat input from coal, petroleum coke, or any 
                combination of these 2 fuels;</DELETED>
                <DELETED>    ``(C) has a nameplate capacity of 100 
                megawatts or greater;</DELETED>
                <DELETED>    ``(D) was in operation as of January 1, 
                2009, and remains in operation as of the date of any 
                distribution of emission allowances under this 
                subsection;</DELETED>
                <DELETED>    ``(E) in calendar years 2006 through 2008 
                sold, and as of the date of any distribution of 
                emission allowances under this section sells, steam or 
                electricity directly and solely to multiple, separately 
                owned industrial or commercial facilities co-located at 
                the same site with the cogeneration facility; 
                and</DELETED>
                <DELETED>    ``(F) is not eligible to receive 
                allowances under any other subsection of this section 
                or under part F of this title.</DELETED>
        <DELETED>    ``(2) Distribution.--The Administrator shall 
        distribute the emission allowances allocated pursuant to 
        section 771(a)(1) to owners or operators of eligible 
        cogeneration facilities ratably based on the carbon dioxide 
        emissions of each such facility in calendar years 2006 through 
        2008. The Administrator--</DELETED>
                <DELETED>    ``(A) shall not, in any year, distribute 
                emission allowances under this subsection to the owner 
                or operator of any eligible cogeneration facility in 
                excess of the amount necessary to offset such 
                facility's cost of compliance with the requirements of 
                this title in that year; and</DELETED>
                <DELETED>    ``(B) may distribute such allowances over 
                a period of years if annual distributions under this 
                subsection would otherwise exceed the limitation in 
                subparagraph (A), provided that in no event shall 
                distributions be made under this subsection after 
                calendar year 2025.</DELETED>
        <DELETED>    ``(3) Requirements.--The Administrator shall, by 
        regulation, establish requirements to ensure that the value of 
        any emission allowances distributed pursuant to this subsection 
        are passed through, on an equitable basis, to the facilities to 
        which the relevant cogeneration facility provides electricity 
        or steam deliveries, including any facility owned or operated 
        by the owner or operator of the cogeneration 
        facility.</DELETED>
<DELETED>    ``(g) 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.</DELETED>

<DELETED>``SEC. 773. NATURAL GAS CONSUMERS.</DELETED>

<DELETED>    ``(a) Definition.--For purposes of this section, 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.</DELETED>
<DELETED>    ``(b) Allocation.--Not later than June 30, 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 771(a)(2). Such 
allowances shall be distributed among local natural gas distribution 
companies based on the following formula:</DELETED>
        <DELETED>    ``(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 on a pro rata basis based on each such 
        company's annual average retail natural gas deliveries for 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.</DELETED>
        <DELETED>    ``(2) Updating.--Prior to distributing 2019 
        vintage 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 on a pro rata basis 
        among natural gas local distribution companies based on the 
        product of--</DELETED>
                <DELETED>    ``(A) each natural gas local distribution 
                company's average annual natural gas deliveries per 
                customer during calendar years 2006 through 2008, or 
                during the 3 alternative consecutive years selected by 
                such company under paragraph (1); and</DELETED>
                <DELETED>    ``(B) the number of customers of such 
                natural gas local distribution company in the most 
                recent year in which the formula is updated under this 
                paragraph.</DELETED>
<DELETED>    ``(c) Use of Allowances.--</DELETED>
        <DELETED>    ``(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 and may not be used to support natural gas sales or 
        deliveries to entities or persons other than such 
        ratepayers.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) among ratepayer classes on a pro 
                rata basis based on natural gas deliveries to each 
                class; and</DELETED>
                <DELETED>    ``(B) equitably among individual 
                ratepayers within each ratepayer class.</DELETED>
        <DELETED>    ``(3) Limitation.--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.</DELETED>
        <DELETED>    ``(4) 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 regulatory 
        authority over retail natural gas rates in the case of a 
        natural gas local distribution company that is not regulated by 
        a State regulatory authority.</DELETED>
        <DELETED>    ``(5) Guidelines.--As part of the regulations 
        promulgated under subsection (h), the Administrator shall 
        prescribe specific guidelines for the implementation of the 
        requirements of this subsection.</DELETED>
<DELETED>    ``(d) Regulatory Proceedings.--</DELETED>
        <DELETED>    ``(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 such company, or the entity with 
        authority to regulate retail rates of a natural gas local 
        distribution company not regulated by a State regulatory 
        authority, has--</DELETED>
                <DELETED>    ``(A) 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 subsection (c); 
                and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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, and a new report be made 
        available to the Administrator and the public, pursuant to 
        paragraph (1), not less frequently than every 5 
        years.</DELETED>
<DELETED>    ``(e) Plans and Reporting.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Plans.--Not later than April 30, 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 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.</DELETED>
        <DELETED>    ``(3) Reports.--Not later than June 30, 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 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 subsection, 
        including--</DELETED>
                <DELETED>    ``(A) a description of sales, transfer, 
                exchange, or use by the company for compliance with 
                obligations under this title, of any such emission 
                allowances;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(C) the manner in which the company's 
                disposition of emission allowances received under this 
                subsection complies with the requirements of this 
                section, including each of the requirements of 
                subsection (c);</DELETED>
                <DELETED>    ``(D) the cost-effectiveness of, and 
                energy savings achieved by, energy efficiency programs 
                supported through such emission allowances; 
                and</DELETED>
                <DELETED>    ``(E) such other information as the 
                Administrator may require pursuant to paragraph 
                (1).</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Auditing.--</DELETED>
        <DELETED>    ``(1) Administrator audit report.--Each year, the 
        Administrator shall audit a significant 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.</DELETED>
        <DELETED>    ``(2) GAO audit report.--Not later April 30, 2015 
        and every 3 years thereafter through April 30, 2026, the 
        Comptroller General of the United States, incorporating results 
        from the Administrators' audit report and other relevant 
        information including distribution company reports, shall 
        conduct an in-depth evaluation and make available to the public 
        a report on the investments made pursuant to subsection (c). 
        Said report shall be made available to the State regulatory 
        authority, or the entity with authority to regulate or set 
        retail natural gas rates in the case of a natural gas 
        distribution company that is not regulated by a State 
        regulatory authority, and shall include a description how the 
        distribution companies in the audit meet or fail to meet the 
        requirement of subsection (c), including for investments made 
        in cost-effective end-use energy efficiency programs, the 
        lifetime and annual energy saving benefits, and capacity 
        benefits of said programs.</DELETED>
        <DELETED>    ``(3) Administrator cost containment report.--Not 
        later April 30, 2015, and every 3 years thereafter through 
        April 30, 2026, the Administrator shall transmit a report to 
        Congress containing an evaluation of the disposition of the 
        value of emission allowances received pursuant to this 
        subsection and recommendations of ways to more effectively 
        direct the value of allowances to reduce costs for consumers, 
        contain the overall costs of the greenhouse gas emissions 
        reduction program, and meet the pollution reduction targets of 
        the Act. The Administrator shall make available to the public 
        such report, including by publishing such report on the 
        Internet.</DELETED>
<DELETED>    ``(g) Enforcement.--A violation of any requirement of this 
section, irrespective of approval by a State regulatory authority, 
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.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 774. HOME HEATING OIL AND PROPANE CONSUMERS.</DELETED>

<DELETED>    ``(a) Definitions.--For purposes of this 
section:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Cost-effective.--The term `cost-effective' 
        has the meaning given that term in section 773(a).</DELETED>
<DELETED>    ``(b) Allocation.--The Administrator shall distribute 
among the States, in accordance with this section, the quantity of 
emission allowances allocated pursuant to section 771(a)(3). The 
Administrator shall distribute a percentage of such allowances 
determined by the Administrator, after consultation with the Secretary 
of the Interior, pursuant to subsection (f).</DELETED>
<DELETED>    ``(c) Distribution Among States.--The Administrator shall 
distribute emission allowances among the States under this section each 
year on a pro rata basis based on the ratio of--</DELETED>
        <DELETED>    ``(1) the carbon content of home heating oil and 
        propane sold to consumers within each State in the preceding 
        year for residential or commercial uses; to</DELETED>
        <DELETED>    ``(2) the carbon content of home heating oil and 
        propane sold to consumers within the United States in the 
        preceding year for residential or commercial uses.</DELETED>
<DELETED>    ``(d) Use of Allowances.--</DELETED>
        <DELETED>    ``(1) In general.--States shall use emission 
        allowances distributed under this section exclusively for the 
        benefit of consumers of home heating oil or propane for 
        residential or commercial purposes. Such proceeds shall be used 
        exclusively for--</DELETED>
                <DELETED>    ``(A) cost-effective energy efficiency 
                programs for consumers that use home heating oil or 
                propane for residential or commercial purposes; 
                or</DELETED>
                <DELETED>    ``(B) rebates or other direct financial 
                assistance programs for consumers of home heating oil 
                or propane used for residential or commercial 
                purposes.</DELETED>
        <DELETED>    ``(2) Administration and delivery mechanisms.--In 
        administering programs supported by this section, States 
        shall--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) 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--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) demonstrates the cost-effectiveness of, and 
        the energy savings achieved by, energy efficiency programs 
        supported under this section; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) 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 on a pro rata basis in 
accordance with the formula in subsection (c).</DELETED>

<DELETED>``SEC. 775. DOMESTIC FUEL PRODUCTION.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Definitions.--In this section:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Petroleum refinery.--The term `petroleum 
        refinery' means a facility classified under code 324110 of the 
        North American Industrial Classification System of 
        2002.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) In General.--The Administrator shall distribute 
allowances pursuant to this section to owners and operators of 
petroleum refineries, including small business refiners, in the United 
States.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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 771(a)(1), 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 771(a)(4), 
including for petroleum refiners and small business refiners.</DELETED>

<DELETED>``SEC. 776. CONSUMER PROTECTION.</DELETED>

<DELETED>    ``(a) Consumer Rebates.--</DELETED>
        <DELETED>    ``(1) Establishment of fund.--There is established 
        in the Treasury a separate account, to be known as the 
        `Consumer Rebate Fund').</DELETED>
        <DELETED>    ``(2) Availability of amounts.--All amounts 
        deposited in the Consumer Rebate Fund shall be available 
        without further appropriation or fiscal year 
        limitation.</DELETED>
        <DELETED>    ``(3) Distribution of amounts.--Beginning in 2026, 
        for each year after deposits are made in the Consumer Rebate 
        Fund pursuant to section 771(b)(2)(A), the President shall use 
        the funds in accordance with Federal statutory authority to 
        provide relief to consumers and others affected by the 
        enactment of the Clean Energy Jobs and American Power Act (and 
        amendments made by that Act).</DELETED>
<DELETED>    ``(b) Energy Refund Program.--</DELETED>
        <DELETED>    ``(1) Establishment of fund.--There is established 
        in the Treasury a separate account, to be known as the `Energy 
        Refund Account').</DELETED>
        <DELETED>    ``(2) Availability of amounts.--All amounts 
        deposited in the Energy Refund Account shall be available 
        without further appropriation or fiscal year 
        limitation.</DELETED>
        <DELETED>    ``(3) Distribution of amounts.--For each year 
        after deposits are made to the Energy Refund Account pursuant 
        to section 771(b)(2)(B), the President shall use the funds in 
        accordance with Federal statutory authority to offset energy 
        cost impacts on low- and moderate-income households.</DELETED>

<DELETED>``SEC. 777. EXCHANGE FOR STATE-ISSUED ALLOWANCES.</DELETED>

<DELETED>    ``(a) In General.--Not later than 1 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 the later of December 31, 2011, or 
the date that is 9 months after the first auction under section 778, 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).</DELETED>
<DELETED>    ``(b) Regulations.--Regulations issued under subsection 
(a) shall--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(2) establish a deadline by which persons must 
        exchange the State allowances;</DELETED>
        <DELETED>    ``(3) provide that the Federal emission allowances 
        disbursed pursuant to this section shall be deducted from the 
        allowances to be auctioned pursuant to section 771(b); 
        and</DELETED>
        <DELETED>    ``(4) require that, once exchanged, the credit or 
        other instrument be retired for purposes of use under the 
        program by or for which it was originally issued.</DELETED>
<DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 778. AUCTION PROCEDURES.</DELETED>

<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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 4 years after the year 
        in which the auction is being conducted.</DELETED>
        <DELETED>    ``(3) Auction format.--Auctions shall follow a 
        single-round, sealed-bid, uniform price format.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Reserve Auction Price.--The minimum reserve auction 
price shall be $10 (in constant 2005 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).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Small Business Refiner Reserve.--The Administrator 
shall, in accordance with this subsection, issue regulations setting 
aside a specified number of allowances, as determined by the 
Administrator, 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:</DELETED>
        <DELETED>    ``(1) 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 775(b)) may purchase allowances from this reserve at 
        the price determined pursuant to paragraph (2).</DELETED>
        <DELETED>    ``(2) 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.</DELETED>
        <DELETED>    ``(3) 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.</DELETED>
        <DELETED>    ``(4) 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.</DELETED>
        <DELETED>    ``(5) 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.</DELETED>

<DELETED>``SEC. 779. AUCTIONING ALLOWANCES FOR OTHER 
              ENTITIES.</DELETED>

<DELETED>    ``(a) Consignment.--Any entity holding emission allowances 
or compensatory allowances may request that the Administrator auction, 
pursuant to section 778, the allowances on consignment.</DELETED>
<DELETED>    ``(b) Pricing.--When the Administrator acts under this 
section as the agent of an entity in possession of emission allowances, 
the Administrator is not obligated to obtain the highest price possible 
for the emission allowances, and instead shall auction consignment 
allowances in the same manner and pursuant to the same rules as 
auctions of other allowances under section 778. 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 778(d).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Regulations.--The Administrator shall issue 
regulations within 24 months after the date of enactment of this title 
to implement this section.</DELETED>

<DELETED>``SEC. 780. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND 
              SEQUESTRATION TECHNOLOGIES.</DELETED>

<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Carbon capture and storage.--The term 
        `carbon capture and sequestration' shall--</DELETED>
                <DELETED>    ``(A) have such term as Administrator 
                shall determine by regulation; and</DELETED>
                <DELETED>    ``(B) include--</DELETED>
                        <DELETED>    ``(i) geological sequestration; 
                        and</DELETED>
                        <DELETED>    ``(ii) conversion of captured 
                        carbon dioxide to a stable form that will 
                        safely and permanently sequester the carbon 
                        dioxide.</DELETED>
        <DELETED>    ``(2) Qualifying electric generating unit.--The 
        term `qualifying electric generating unit' means an electric 
        utility unit that--</DELETED>
                <DELETED>    ``(A) derives at least 50 percent of the 
                annual fuel input of the unit from--</DELETED>
                        <DELETED>    ``(i) coal or waste 
                        coal;</DELETED>
                        <DELETED>    ``(ii) petroleum coke; 
                        or</DELETED>
                        <DELETED>    ``(iii) any combination of those 2 
                        fuels; and</DELETED>
                <DELETED>    ``(B)(i) has a nameplate capacity of 200 
                megawatts or more; or</DELETED>
                <DELETED>    ``(ii) in the case of retrofit 
                applications, the carbon capture and sequestration 
                technology is applied to the flue gas or fuel gas 
                stream from at least 200 megawatts of the total 
                nameplate generating capacity of the unit.</DELETED>
        <DELETED>    ``(3) Qualifying industrial source.--The term 
        `qualifying industrial source' means a source that--</DELETED>
                <DELETED>    ``(A) is not a qualifying electric 
                generating unit;</DELETED>
                <DELETED>    ``(B) absent carbon capture and 
                sequestration, would emit greater than 50,000 tons per 
                year of carbon dioxide; and</DELETED>
                <DELETED>    ``(C) does not produce a liquid 
                transportation fuel from a solid fossil-based 
                feedstock.</DELETED>
        <DELETED>    ``(4) Treated generating capacity.--</DELETED>
                <DELETED>    ``(A) In general.--The term `treated 
                generating capacity' means the portion of the total 
                generating capacity of an electric generating unit (or 
                industrial source, measured by such method as the 
                Administrator may designate to be equivalent to the 
                calculation under subparagraph (B)) for which the flue 
                gas or fuel gas is treated by the carbon capture and 
                sequestration technology.</DELETED>
                <DELETED>    ``(B) Calculation.--In determining the 
                treated portion of flue gas or fuel gas of an electric 
                generating unit under subparagraph (A), the 
                Administrator shall multiply the nameplate capacity of 
                the unit by the ratio that--</DELETED>
                        <DELETED>    ``(i) the mass of flue gas or fuel 
                        gas that is treated by the carbon capture and 
                        sequestration technology; bears to</DELETED>
                        <DELETED>    ``(ii) the total mass of the flue 
                        gas or fuel gas that is produced when the unit 
                        is operating at maximum capacity.</DELETED>
<DELETED>    ``(b) 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 under section 771(a)(6), pursuant to the requirements of this 
section, to support the commercial deployment of carbon capture and 
sequestration technologies in electric power generation and industrial 
operations.</DELETED>
<DELETED>    ``(c) Eligibility Criteria and Method of Distribution.--
</DELETED>
        <DELETED>    ``(1) Eligibility.--For an owner or operator of a 
        project to be eligible to receive emission allowances under 
        this section, the project shall--</DELETED>
                <DELETED>    ``(A) implement carbon capture and 
                sequestration technology--</DELETED>
                        <DELETED>    ``(i) at a qualifying electric 
                        generating unit that, upon implementation of 
                        the carbon capture and sequestration 
                        technology, will achieve an emission limitation 
                        that is at least a 50-percent reduction in 
                        emissions of the carbon dioxide produced by--
                        </DELETED>
                                <DELETED>    ``(I) the unit, measured 
                                on an annual basis, as determined by 
                                the Administrator; or</DELETED>
                                <DELETED>    ``(II) in the case of 
                                retrofit applications described in 
                                subsection (a)(2)(B)(ii), the treated 
                                portion of flue gas from the unit, 
                                measured on an annual basis, as 
                                determined by the Administrator; 
                                or</DELETED>
                        <DELETED>    ``(ii) at a qualifying industrial 
                        source that, upon implementation, will achieve 
                        an emission limitation that is at least a 50-
                        percent reduction in emissions of the carbon 
                        dioxide produced by the emission point, 
                        measured on an annual basis, as determined by 
                        the Administrator;</DELETED>
                <DELETED>    ``(B)(i) geologically sequester carbon 
                dioxide at a site that meets all applicable permitting 
                and certification requirements for geological 
                sequestration; or</DELETED>
                <DELETED>    ``(ii) 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 the carbon 
                dioxide;</DELETED>
                <DELETED>    ``(C) meet all other applicable State, 
                tribal, and Federal permitting requirements; 
                and</DELETED>
                <DELETED>    ``(D) be located in the United 
                States.</DELETED>
        <DELETED>    ``(2) Method of distribution.--</DELETED>
                <DELETED>    ``(A) Period.--The Administrator shall 
                distribute emission allowances allocated under section 
                771(a)(6) to eligible projects for each of the first 10 
                calendar years for which each eligible project is in 
                commercial operation.</DELETED>
                <DELETED>    ``(B) Bonus allowance formula for electric 
                generating units.--</DELETED>
                        <DELETED>    ``(i) Phase i distribution.--For 
                        each project that is certified under subsection 
                        (h), the quantity of emission allowances that 
                        the Administrator shall distribute for a 
                        calendar year to the owner or operator of the 
                        eligible project shall be equal to the quotient 
                        obtained by dividing--</DELETED>
                                <DELETED>    ``(I) the product obtained 
                                by multiplying--</DELETED>
                                        <DELETED>    ``(aa) the number 
                                        of metric tons of carbon 
                                        dioxide emissions avoided 
                                        through capture and 
                                        sequestration of emissions by 
                                        the project for a particular 
                                        year, as determined pursuant to 
                                        such methodology as the 
                                        Administrator shall prescribe 
                                        by regulation; and</DELETED>
                                        <DELETED>    ``(bb) a bonus 
                                        allowance value that is 
                                        assigned to the project under 
                                        subsection (d)(2); by</DELETED>
                                <DELETED>    ``(II) the average fair 
                                market value of an emission allowance 
                                during the calendar year preceding the 
                                year during which the project captured 
                                and sequestered the carbon dioxide 
                                emissions.</DELETED>
                        <DELETED>    ``(ii) Phase ii distribution.--For 
                        each project that qualifies under subsection 
                        (e), the quantity of emission allowances that 
                        the Administrator shall distribute for a 
                        calendar year to the owner or operator of the 
                        eligible project shall be determined through--
                        </DELETED>
                                <DELETED>    ``(I) reverse auction, as 
                                prescribed by regulation under 
                                subsection (e)(3); or</DELETED>
                                <DELETED>    ``(II) if the 
                                Administrator decides not to distribute 
                                allowances through a reverse auction, 
                                an alternate distribution method 
                                established by regulation under 
                                subsection (e)(4).</DELETED>
                <DELETED>    ``(C) Formula for industrial sources.--For 
                each project that qualifies under subsection (g), the 
                quantity of emission allowances that the Administrator 
                shall distribute for a calendar year to the owner or 
                operator of the eligible project shall be determined in 
                accordance with subsection (g)(2).</DELETED>
                <DELETED>    ``(D) Consistency.--The Administrator 
                shall develop a method of distribution for each 
                category of eligible projects under this paragraph in a 
                manner that is consistent with the certification and 
                distribution requirements under subsection 
                (h).</DELETED>
<DELETED>    ``(d) Phase I Distribution to Electric Generating Units.--
</DELETED>
        <DELETED>    ``(1) Applicability.--</DELETED>
                <DELETED>    ``(A) In general.--Subject to subparagraph 
                (B), this subsection shall apply to projects that are 
                undertaken at qualifying electric generating units that 
                the Administrator determines to be eligible to receive 
                emission allowances under this section.</DELETED>
                <DELETED>    ``(B) Capacity.--The total cumulative 
                generating capacity of the projects described in 
                subparagraph (A) shall be equal to approximately 20 
                gigawatts of the treated generating capacity.</DELETED>
        <DELETED>    ``(2) Bonus allowance values.--</DELETED>
                <DELETED>    ``(A) First tranche.--</DELETED>
                        <DELETED>    ``(i) In general.--The first 
                        tranche shall include the first 10 gigawatts of 
                        treated generating capacity undertaken at 
                        qualifying electric generating units that 
                        receive emission allowances under this 
                        section.</DELETED>
                        <DELETED>    ``(ii) Certain units.--For an 
                        eligible project achieving capture and 
                        sequestration of 90 percent or more of the 
                        carbon dioxide that otherwise would be emitted 
                        by the unit, the bonus allowance value shall be 
                        $96 per ton of carbon dioxide emissions avoided 
                        through the use of capture and 
                        sequestration.</DELETED>
                        <DELETED>    ``(iii) Bonus allowance value.--
                        The Administrator shall establish, by 
                        regulation, a bonus allowance value for each 
                        rate of capture and sequestration achieved by 
                        an eligible project--</DELETED>
                                <DELETED>    ``(I) beginning at a 
                                minimum of $50 per ton for a 50-percent 
                                rate; and</DELETED>
                                <DELETED>    ``(II) varying in direct 
                                proportion with increasing rates of 
                                capture and sequestration up to $96 per 
                                ton for an 90-percent rate.</DELETED>
                <DELETED>    ``(B) Second tranche.--</DELETED>
                        <DELETED>    ``(i) In general.--The second 
                        tranche shall include the second 10 gigawatts 
                        of treated generating capacity undertaken at 
                        qualifying electric generating units that 
                        receive emission allowances under this 
                        section.</DELETED>
                        <DELETED>    ``(ii) Certain units.--For an 
                        eligible project achieving the capture and 
                        sequestration of 90 percent or more of the 
                        carbon dioxide that otherwise would be emitted 
                        by the eligible project, the bonus allowance 
                        value shall be $85 per ton of carbon dioxide 
                        emissions avoided through the use of capture 
                        and sequestration.</DELETED>
                        <DELETED>    ``(iii) Bonus allowance value.--
                        The Administrator shall establish, by 
                        regulation, a bonus allowance value for each 
                        rate of capture and sequestration achieved by 
                        an eligible project--</DELETED>
                                <DELETED>    ``(I) beginning at a 
                                minimum of $50 per ton for a 50-percent 
                                rate; and</DELETED>
                                <DELETED>    ``(II) varying in direct 
                                proportion with increasing rates of 
                                capture and sequestration up to $85 per 
                                ton for a 90-percent rate.</DELETED>
                <DELETED>    ``(C) Increase in bonus allowance value.--
                For an eligible project that commences commercial 
                operation by not later than January 1, 2017, and that 
                meets the eligibility criteria under subsection (c), 
                the otherwise-applicable bonus allowance value under 
                this paragraph shall be increased by $10, if the owner 
                or operator of the eligible project submits to the 
                Administrator by not later than January 1, 2012, a 
                notification of the intent to implement carbon capture 
                and sequestration technology at a qualifying electric 
                generating unit in accordance with subsection 
                (c).</DELETED>
                <DELETED>    ``(D) Reduction.--</DELETED>
                        <DELETED>    ``(i) In general.--For a carbon 
                        capture and sequestration project sequestering 
                        in a geological formation for purposes of 
                        enhanced hydrocarbon recovery, the 
                        Administrator, by regulation, shall reduce the 
                        applicable bonus allowance value under this 
                        paragraph to reflect the lower net cost of the 
                        project, as compared to sequestration into 
                        geological formations solely for purposes of 
                        sequestration.</DELETED>
                        <DELETED>    ``(ii) Assessment of net cost.--
                        For the purpose of this subparagraph, an 
                        assessment of net cost of a project shall 
                        account for the cost of the injection of carbon 
                        dioxide, or other method of enhanced 
                        hydrocarbon recovery, that would have otherwise 
                        been undertaken in the absence of the carbon 
                        capture and sequestration project under 
                        consideration.</DELETED>
                <DELETED>    ``(E) Adjustments.--The Administrator 
                shall annually adjust for monetary inflation the bonus 
                allowance values established under this 
                paragraph.</DELETED>
                <DELETED>    ``(F) Measurement.--The Administrator 
                shall measure the tranches and capture levels for 
                assigning the bonus allowance values under this 
                subsection based on the treated generating capacity of 
                the qualifying electric generating units and qualifying 
                industrial sources that receive emission allowances 
                under this subsection.</DELETED>
                <DELETED>    ``(G) Average fair market value.--
                </DELETED>
                        <DELETED>    ``(i) In general.--The 
                        Administrator and the Secretary of Energy may 
                        jointly determine that the average fair market 
                        value for emission allowances or the bonus 
                        allowances have been too low or too high to 
                        achieve efficient and cost-effective commercial 
                        deployment of carbon capture and sequestration 
                        technology in a given calendar year.</DELETED>
                        <DELETED>    ``(ii) Action on determination.--
                        On making a determination under clause (i), the 
                        Administrator may--</DELETED>
                                <DELETED>    ``(I) promulgate 
                                regulations to adjust the bonus 
                                allowance value under this paragraph; 
                                or</DELETED>
                                <DELETED>    ``(II) distribute an 
                                appropriate quantity of emission 
                                allowances allocated under section 
                                771(a)(6) from any future vintage 
                                year.</DELETED>
<DELETED>    ``(e) Phase II Distribution to Electric Generating 
Units.--</DELETED>
        <DELETED>    ``(1) Application.--This subsection shall apply 
        only to the distribution of emission allowances for carbon 
        capture and sequestration projects undertaken at qualifying 
        electric generating units and qualifying industrial sources 
        after the treated generating capacity threshold identified 
        under subsection (d)(1) is reached.</DELETED>
        <DELETED>    ``(2) Regulations.--Not later than 2 years before 
        the date on which the capacity threshold identified in 
        subsection (d)(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.</DELETED>
        <DELETED>    ``(3) Reverse auctions.--</DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                paragraph (4), the regulations promulgated pursuant to 
                paragraph (2) shall provide for the distribution of 
                emission allowances to the owners or operators of 
                eligible projects under this subsection through at 
                least 2 reverse auctions, each of which shall be held 
                not less frequently than once each calendar 
                year.</DELETED>
                <DELETED>    ``(B) Requirements.--</DELETED>
                        <DELETED>    ``(i) Projects at industrial 
                        sources.--The Administrator shall annually 
                        establish a reverse auction for projects at 
                        industrial sources, which may not participate 
                        in other auctions.</DELETED>
                        <DELETED>    ``(ii) Other auctions.--The 
                        Administrator may establish a separate auction 
                        for each of not more than 5 different project 
                        categories, as defined based on--</DELETED>
                                <DELETED>    ``(I) coal type;</DELETED>
                                <DELETED>    ``(II) capture 
                                technology;</DELETED>
                                <DELETED>    ``(III) geological 
                                formation type;</DELETED>
                                <DELETED>    ``(IV) new unit versus 
                                retrofit application;</DELETED>
                                <DELETED>    ``(V) such other factors 
                                as the Administrator may prescribe; 
                                or</DELETED>
                                <DELETED>    ``(VI) any combination of 
                                the factors described in subclauses (I) 
                                through (V).</DELETED>
                        <DELETED>    ``(iii) Efficient distribution.--
                        The Administrator shall establish procedures 
                        for the auction of emission allowances under 
                        this subparagraph to ensure that the 
                        establishment of separate auctions for 
                        different project categories will not unduly 
                        impede the efficient and expeditious 
                        distribution of emission allowances to eligible 
                        projects under this subsection.</DELETED>
                        <DELETED>    ``(iv) Minimum rates.--The 
                        Administrator may establish appropriate minimum 
                        rates of capture and sequestration for the 
                        treated generating capacity of a project in 
                        implementing this subparagraph.</DELETED>
                <DELETED>    ``(C) Auction process.--At each reverse 
                auction under this paragraph--</DELETED>
                        <DELETED>    ``(i) the Administrator shall 
                        solicit bids from eligible projects;</DELETED>
                        <DELETED>    ``(ii) owners or operators of 
                        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 during a 10-year period; 
                        and</DELETED>
                        <DELETED>    ``(iii) the Administrator shall 
                        select bids within each auction for the 
                        sequestration quantity submitted, beginning 
                        with the eligible project for which the bid is 
                        submitted for the lowest level of sequestration 
                        incentive on a per-ton basis and meeting such 
                        other requirements as the Administrator may 
                        specify, until the amounts available for the 
                        reverse auction are committed.</DELETED>
                <DELETED>    ``(D) 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 the formula contained in 
                subsection (c)(2)(B), except that the bonus allowance 
                value that is bid by the applicable entity shall be 
                substituted for the bonus allowance values described in 
                subsection (c)(2).</DELETED>
        <DELETED>    ``(4) Alternative distribution method.--</DELETED>
                <DELETED>    ``(A) In general.--If the Administrator 
                determines that a reverse auction will not result in 
                efficient and cost-effective commercial deployment of 
                carbon capture and sequestration technologies, the 
                Administrator, pursuant to regulations under paragraph 
                (2) or (5), shall prescribe a schedule for the 
                provision of bonus allowances to the owners or 
                operators of eligible projects under this subsection, 
                in accordance with the requirements of this 
                paragraph.</DELETED>
                <DELETED>    ``(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 of 
                which--</DELETED>
                        <DELETED>    ``(i) shall support the deployment 
                        of a specified quantity of cumulative electric 
                        generating capacity using carbon capture and 
                        sequestration technology; and</DELETED>
                        <DELETED>    ``(ii) shall not be greater than 
                        10 gigawatts of treated generating 
                        capacity.</DELETED>
                <DELETED>    ``(C) Method of distribution.--The 
                Administrator shall distribute emission allowances 
                within each tranche, on a first-come, first-served 
                basis--</DELETED>
                        <DELETED>    ``(i) based on the date of full-
                        scale operation of capture and sequestration 
                        technology; and</DELETED>
                        <DELETED>    ``(ii) pursuant to a formula 
                        that--</DELETED>
                                <DELETED>    ``(I) is similar to the 
                                formula contained in subsection 
                                (c)(2)(C), except that the 
                                Administrator may prescribe bonus 
                                allowance values different than those 
                                described in subsection (c)(2) based on 
                                the criteria established under 
                                subparagraph (E); and</DELETED>
                                <DELETED>    ``(II) establishes the 
                                number of emission allowances to be 
                                distributed per ton of carbon dioxide 
                                sequestered by the project.</DELETED>
                <DELETED>    ``(D) Requirements.--For each tranche 
                established pursuant to subparagraph (B), the 
                Administrator shall establish a schedule for 
                distributing emission allowances that--</DELETED>
                        <DELETED>    ``(i) is based on a sliding scale 
                        that provides higher bonus allowance values for 
                        projects achieving higher rates of capture and 
                        sequestration for the treated generation 
                        capacity at the unit;</DELETED>
                        <DELETED>    ``(ii) for each capture and 
                        sequestration rate, establishes a bonus 
                        allowance value that is lower than that 
                        established for the applicable rate for the 
                        previous tranche (or, in the case of the first 
                        tranche, than that established for the 
                        applicable rate under subsection (d)(2)); 
                        and</DELETED>
                        <DELETED>    ``(iii) may establish different 
                        bonus allowance levels for not more than 5 
                        different project categories, as defined based 
                        on--</DELETED>
                                <DELETED>    ``(I) coal type;</DELETED>
                                <DELETED>    ``(II) capture and 
                                transportation technology;</DELETED>
                                <DELETED>    ``(III) geological 
                                formation type;</DELETED>
                                <DELETED>    ``(IV) new unit versus 
                                retrofit application;</DELETED>
                                <DELETED>    ``(V) such other factors 
                                as the Administrator may prescribe; 
                                or</DELETED>
                                <DELETED>    ``(VI) any combination of 
                                the factors described in subclauses (I) 
                                through (V).</DELETED>
                <DELETED>    ``(E) Criteria for establishing bonus 
                allowance values.--In establishing bonus allowance 
                values under this paragraph, the Administrator shall 
                seek to cover not 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--</DELETED>
                        <DELETED>    ``(i) the reduced cost of 
                        compliance with section 722;</DELETED>
                        <DELETED>    ``(ii) the reduced cost associated 
                        with sequestering in a geological formation for 
                        purposes of enhanced hydrocarbon recovery, as 
                        compared to sequestration into geological 
                        formations solely for purposes of 
                        sequestration;</DELETED>
                        <DELETED>    ``(iii) the relevant factors 
                        defining the project category; and</DELETED>
                        <DELETED>    ``(iv) such other factors as the 
                        Administrator determines to be 
                        appropriate.</DELETED>
        <DELETED>    ``(5) Revision of regulations.--The Administrator 
        shall review and, as appropriate, revise the applicable 
        regulations under this subsection not less frequently than once 
        every 8 years.</DELETED>
<DELETED>    ``(f) Limits for Certain Electric Generating Units.--
</DELETED>
        <DELETED>    ``(1) Definitions.--In this subsection, the terms 
        `covered EGU' and `initially permitted' have the meanings given 
        those terms in section 812.</DELETED>
        <DELETED>    ``(2) Covered egus initially permitted from 2009 
        through 2014.--For a covered EGU that is initially permitted 
        during the period beginning on January 1, 2009, and ending on 
        December 31, 2014, the Administrator shall reduce the quantity 
        of emission allowances that the owner or operator of the 
        covered EGU would otherwise be eligible to receive under this 
        section as follows:</DELETED>
                <DELETED>    ``(A) In the case of a covered EGU 
                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 obtained by 
                multiplying--</DELETED>
                        <DELETED>    ``(i) 20 percent; and</DELETED>
                        <DELETED>    ``(ii) the number of years, if 
                        any, that have elapsed between--</DELETED>
                                <DELETED>    ``(I) the earlier of--
                                </DELETED>
                                        <DELETED>    ``(aa) January 1, 
                                        2020; and</DELETED>
                                        <DELETED>    ``(bb) the date 
                                        that is 5 years after the 
                                        commencement of operation of 
                                        the covered EGU; and</DELETED>
                                <DELETED>    ``(II) the first year that 
                                the covered EGU achieves (and 
                                thereafter maintains) an emission 
                                limitation that is at least a 50-
                                percent reduction in emissions of 
                                carbon dioxide produced by the unit, 
                                measured on an annual basis, as 
                                determined in accordance with section 
                                812(b)(2).</DELETED>
                <DELETED>    ``(B) In the case of a covered EGU 
                commencing operation after January 1, 2019, by the 
                product obtained by multiplying--</DELETED>
                        <DELETED>    ``(i) 20 percent; and</DELETED>
                        <DELETED>    ``(ii) the number of years, if 
                        any, that have elapsed between--</DELETED>
                                <DELETED>    ``(I) the commencement of 
                                operation of the covered EGU; 
                                and</DELETED>
                                <DELETED>    ``(II) the first year that 
                                the covered EGU achieves (and 
                                thereafter maintains) an emission 
                                limitation that is at least a 50-
                                percent reduction in emissions of 
                                carbon dioxide produced by the unit, 
                                measured on an annual basis, as 
                                determined in accordance with section 
                                812(b)(2).</DELETED>
        <DELETED>    ``(3) Covered egus initially permitted from 2015 
        through 2019.--The owner or operator of a covered EGU that is 
        initially permitted during the period beginning on January 1, 
        2015, and ending on December 31, 2019, shall be ineligible to 
        receive emission allowances under this section if the covered 
        EGU, on commencement of operations (and thereafter), does not 
        achieve and maintain an emission limitation that is at least a 
        50-percent reduction in emissions of carbon dioxide produced by 
        the covered EGU, measured on an annual basis, as determined in 
        accordance with section 812(b)(2).</DELETED>
<DELETED>    ``(g) Industrial Sources.--</DELETED>
        <DELETED>    ``(1) Emission allowances.--The Administrator--
        </DELETED>
                <DELETED>    ``(A) may distribute not more than 15 
                percent of the emission allowances allocated under 
                section 771(a)(6) 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 those sources; 
                and</DELETED>
                <DELETED>    ``(B) notwithstanding any other provision 
                of law--</DELETED>
                        <DELETED>    ``(i) may distribute to eligible 
                        industrial sources not more than 15 percent of 
                        the emission allowances allocated under section 
                        771(a)(6) for any vintage year in the second 
                        tranche of phase I; but</DELETED>
                        <DELETED>    ``(ii) may not distribute those 
                        allowances for any vintage year in the first 
                        tranche of phase I.</DELETED>
        <DELETED>    ``(2) Distribution.--</DELETED>
                <DELETED>    ``(A) In general.--The Administrator shall 
                prescribe, by regulation, 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 emission 
                allowances to qualifying projects on the basis of tons 
                of carbon dioxide captured and permanently 
                sequestered.</DELETED>
                <DELETED>    ``(B) Method.--The Administrator may 
                provide for the distribution of emission allowances 
                pursuant to--</DELETED>
                        <DELETED>    ``(i) a reverse auction method 
                        similar to the method described in subsection 
                        (e)(3), including the use of separate auctions 
                        for different project categories; or</DELETED>
                        <DELETED>    ``(ii) an incentive schedule 
                        similar to the schedule described in subsection 
                        (e)(4), which shall ensure that incentives are 
                        established so as to satisfy the requirement 
                        described in subsection (e)(4)(E).</DELETED>
        <DELETED>    ``(3) Revision of regulations.--The Administrator 
        shall review and, as appropriate, revise the regulations under 
        this subsection not less frequently than once every 8 
        years.</DELETED>
<DELETED>    ``(h) Certification and Distribution.--</DELETED>
        <DELETED>    ``(1) Certification.--</DELETED>
                <DELETED>    ``(A) Request.--</DELETED>
                        <DELETED>    ``(i) Phase i; alternative 
                        distribution method.--In the case of a 
                        qualifying project that is eligible to receive 
                        allowances under phase I or under subsection 
                        (e)(4), the owner or operator of the planned 
                        project may request from the Administrator a 
                        certification that the project is eligible to 
                        receive emission allowances under this 
                        section.</DELETED>
                        <DELETED>    ``(ii) Reverse auctions.--In the 
                        case of a qualifying project that wins a 
                        reverse auction under subsection (e) or (g), 
                        within a reasonably brief period following 
                        completion of the auction (as specified by the 
                        Administrator), the owner or operator of the 
                        qualifying project shall request from the 
                        Administrator a certification that the project 
                        is eligible to receive emission allowances 
                        under this section.</DELETED>
                        <DELETED>    ``(iii) Eligible projects.--
                        Eligible projects in phase I and phase II may 
                        receive certification under this 
                        paragraph.</DELETED>
                        <DELETED>    ``(iv) Issuance.--The 
                        Administrator shall issue a certification 
                        described in this subparagraph if the owner or 
                        operator demonstrates a commitment to construct 
                        and operate a project that satisfies--
                        </DELETED>
                                <DELETED>    ``(I) the eligibility 
                                criteria of subsection (c); 
                                and</DELETED>
                                <DELETED>    ``(II) the requirements of 
                                this subsection.</DELETED>
                <DELETED>    ``(B) Documentation.--The Administrator 
                shall prescribe, by regulation, the documentation 
                necessary for making a determination of project 
                eligibility for the certification under subparagraph 
                (A), including--</DELETED>
                        <DELETED>    ``(i) technical information 
                        regarding the capture and sequestration 
                        technology, coal type, geological formation 
                        type (if applicable), and other relevant design 
                        features of the project;</DELETED>
                        <DELETED>    ``(ii) the annual reductions in 
                        carbon dioxide emissions that the capture and 
                        sequestration technology is projected to 
                        achieve during each of the first 10 years of 
                        the project's commercial operation; 
                        and</DELETED>
                        <DELETED>    ``(iii) a demonstration that the 
                        owner or operator is committed to both 
                        constructing and operating the planned project 
                        on a timeline marked by reasonable capture and 
                        sequestration milestones, through the 
                        completion of 1 of the actions specified in 
                        subparagraph (C)(iii).</DELETED>
                <DELETED>    ``(C) Commitment.--</DELETED>
                        <DELETED>    ``(i) In general.--Subject to 
                        clause (ii), the completion of any 1 of the 
                        qualifying actions specified under clause (iii) 
                        shall constitute a commitment to construct and 
                        operate a planned carbon capture and 
                        sequestration project.</DELETED>
                        <DELETED>    ``(ii) Condition.--In the case of 
                        a qualifying action specified in subclause (I) 
                        or (II) of clause (iii), the completion of such 
                        an action may be subject to a condition that 
                        the Administrator will issue a certification 
                        under this paragraph for the distribution of 
                        emission allowances to the project.</DELETED>
                        <DELETED>    ``(iii) Qualifying actions.--
                        Qualifying actions under this subparagraph 
                        shall include--</DELETED>
                                <DELETED>    ``(I) the execution of--
                                </DELETED>
                                        <DELETED>    ``(aa) a 
                                        commitment by lenders or other 
                                        appropriate entities to finance 
                                        the project, which may be 
                                        subject to customary closing 
                                        conditions that are associated 
                                        with the execution of the 
                                        commitment; and</DELETED>
                                        <DELETED>    ``(bb) a 
                                        commitment by the owner or 
                                        operator of the project to 
                                        execute a surety bond in 
                                        sufficient amounts by not later 
                                        than 2 years after the date on 
                                        which the Administrator issues 
                                        the certification for the 
                                        project; or</DELETED>
                                <DELETED>    ``(II) an authorization by 
                                a State regulatory authority to allow 
                                recovery, from the retail customers of 
                                such electric utility, of the costs of 
                                the project by a State-regulated 
                                electric utility that plans to 
                                construct the project.</DELETED>
                <DELETED>    ``(D) Failure to request certification.--
                </DELETED>
                        <DELETED>    ``(i) In general.--An owner or 
                        operator may elect not to request a 
                        certification on the eligibility of a planned 
                        project under subparagraph (A) prior to the 
                        commercial operation of the project.</DELETED>
                        <DELETED>    ``(ii) Determination by 
                        administrator.--If an owner or operator elects 
                        not to request a certification under clause 
                        (i), the Administrator shall make a 
                        determination regarding whether the project 
                        satisfies the eligibility requirements of 
                        subsection (c) at the time that the 
                        Administrator makes a determination regarding 
                        the annual distribution of emission allowances 
                        under paragraph (3)(A).</DELETED>
        <DELETED>    ``(2) Reservation of emission allowances.--
        </DELETED>
                <DELETED>    ``(A) Amount.--</DELETED>
                        <DELETED>    ``(i) In general.--For each 
                        project that receives a certification of 
                        eligibility under paragraph (1), the 
                        Administrator shall reserve on a first-come, 
                        first-served basis a portion of the emission 
                        allowances that are allocated for the 
                        deployment of carbon capture and sequestration 
                        technology under section 771(a)(6).</DELETED>
                        <DELETED>    ``(ii) Determination.--The 
                        reservation of emission allowances for a 
                        particular eligible project under this 
                        paragraph shall be equal to the number of 
                        emission allowances that the project is 
                        entitled to receive under the applicable 
                        distribution method under this section upon 
                        commercial operation of the carbon capture and 
                        sequestration technology, as determined by the 
                        Administrator based on--</DELETED>
                                <DELETED>    ``(I) the applicable bonus 
                                allowance value;</DELETED>
                                <DELETED>    ``(II) the number of tons 
                                of carbon dioxide emissions projected 
                                to be captured and sequestered each 
                                calendar year under paragraph 
                                (1)(B)(i)(II); and</DELETED>
                                <DELETED>    ``(III) a discount rate to 
                                account for the monetary inflation that 
                                may be expected to occur during each of 
                                the relevant 10 calendar years, as 
                                determined by the 
                                Administrator.</DELETED>
                <DELETED>    ``(B) Termination of reservation.--
                </DELETED>
                        <DELETED>    ``(i) In general.--A reservation 
                        of emission allowances for a particular project 
                        under subparagraph (A) shall terminate if the 
                        owner or operator fails to achieve reasonable 
                        milestones for commencing construction or 
                        commercial operation of the project, as 
                        specified under paragraph 
                        (1)(B)(i)(III).</DELETED>
                        <DELETED>    ``(ii) Reduced quantity of carbon 
                        dioxide captured and sequestered.--If the 
                        quantity of carbon dioxide captured and 
                        sequestered by a project on average over 3 
                        consecutive vintage years is less than the 
                        quantity estimated for those vintage years 
                        under subparagraph (A), the reservation of 
                        emission allowances for the project under 
                        subparagraph (A) shall be reduced in future 
                        years by the difference between--</DELETED>
                                <DELETED>    ``(I) the quantity of 
                                carbon dioxide captured and sequestered 
                                on average over the applicable 3 
                                consecutive years; and</DELETED>
                                <DELETED>    ``(II) the quantity 
                                estimated under subparagraph (A) for 
                                the applicable years.</DELETED>
                        <DELETED>    ``(iii) Availability.--The 
                        Administrator shall immediately make available 
                        to other eligible projects emission allowances 
                        for which the Administrator has terminated an 
                        emission allowance reservation for a particular 
                        project under this subparagraph.</DELETED>
        <DELETED>    ``(3) Distribution process.--</DELETED>
                <DELETED>    ``(A) Annual distribution.--The 
                Administrator shall distribute the emission allowances 
                to eligible projects on an annual basis.</DELETED>
                <DELETED>    ``(B) Basis.--The annual distribution of 
                emission allowances shall be based on the total tons of 
                carbon dioxide that the project annually captures and 
                sequesters during each of the first 10 years of 
                commercial operation, in accordance with subsection 
                (c)(2).</DELETED>
                <DELETED>    ``(C) Total distribution amount.--The 
                total amount of emission allowances distributed to an 
                eligible project for each of the first 10 years of 
                commercial operation may be greater than, or less than, 
                the quantity of emissions allowances that the 
                Administrator has reserved for the eligible project 
                under paragraph (2).</DELETED>
                <DELETED>    ``(D) Reports.--</DELETED>
                        <DELETED>    ``(i) In general.--Except as 
                        provided in subparagraph (B), the Administrator 
                        shall make each annual distribution of emission 
                        allowances by not later than 90 days after the 
                        date on which the owner or operator of a 
                        project submits to the Administrator a report 
                        regarding the carbon dioxide emissions captured 
                        and sequestered for a particular year by the 
                        project.</DELETED>
                        <DELETED>    ``(ii) Requirement.--A report 
                        under subclause (I) shall be verified in 
                        accordance with regulations to be promulgated 
                        by the Administrator.</DELETED>
<DELETED>    ``(i) Limitations.--</DELETED>
        <DELETED>    ``(1) In general.--Emission allowances shall be 
        distributed under this section only for tons of carbon dioxide 
        emissions that have already been captured and 
        sequestered.</DELETED>
        <DELETED>    ``(2) Period.--A qualifying project may receive 
        annual emission allowances under this section only for the 
        first 10 years of operation.</DELETED>
        <DELETED>    ``(3) Capacity.--</DELETED>
                <DELETED>    ``(A) In general.--Approximately 72 
                gigawatts of total cumulative treated generating 
                capacity may receive emission allowances under this 
                section.</DELETED>
                <DELETED>    ``(B) Allowance surplus.--On reaching the 
                cumulative capacity described in subparagraph (A), any 
                emission allowances that are allocated for carbon 
                capture and sequestration deployment under section 
                771(a)(6) and are not yet obligated under this section 
                shall be treated as emission allowances not designated 
                for distribution for purposes of section 
                771(b)(2).</DELETED>
<DELETED>    ``(j) Exhaustion of Account and Annual Roll-over of 
Surplus Emission Allowances.--</DELETED>
        <DELETED>    ``(1) In general.--In distributing emission 
        allowances under this section, the Administrator shall ensure 
        that eligible projects receive distributions of emission 
        allowances for the first 10 years of commercial 
        operation.</DELETED>
        <DELETED>    ``(2) Different vintage years.--</DELETED>
                <DELETED>    ``(A) Determination.--If the Administrator 
                determines that the emission allowances allocated under 
                section 771(a)(6) 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 emission 
                allowances from vintage years after the year of the 
                distribution.</DELETED>
                <DELETED>    ``(B) Diversity factors.--If the 
                Administrator provides allowances to new eligible 
                projects under subparagraph (A), the Administrator 
                shall promulgate regulations to prioritize new eligible 
                projects that are distinguished from prior recipients 
                of allowances by 1 or more of the following diversity 
                factors (without regard to order):</DELETED>
                        <DELETED>    ``(i) Location in a coal-producing 
                        region that provides a majority of coal to the 
                        project.</DELETED>
                        <DELETED>    ``(ii) Coal type, including waste 
                        coal.</DELETED>
                        <DELETED>    ``(iii) Capture and transportation 
                        technologies.</DELETED>
                        <DELETED>    ``(iv) Geological 
                        formations.</DELETED>
                        <DELETED>    ``(v) New units and retrofit 
                        applications.</DELETED>
<DELETED>    ``(k) Allocation of Allowances for Deployment of Carbon 
Capture and Sequestration Technology.--</DELETED>
        <DELETED>    ``(1) Annual allocation.--The Administrator shall 
        allocate emission allowances for the deployment of carbon 
        capture and sequestration technology in accordance with this 
        section in the following quantities:</DELETED>
                <DELETED>    ``(A) For each of vintage years 2014 
                through 2017, 1.75 percent of the emission allowances 
                established for each year under section 
                721(a).</DELETED>
                <DELETED>    ``(B) For each of vintage years 2018 and 
                2019, 4.75 percent of the emission allowances 
                established for each year under section 
                721(a).</DELETED>
                <DELETED>    ``(C) For each of vintage years 2020 
                through 2050, 5 percent of the emission allowances 
                established for each year under section 
                721(a).</DELETED>
        <DELETED>    ``(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, 
        the Administrator shall--</DELETED>
                <DELETED>    ``(A) auction those emission allowances in 
                accordance with section 778 by not later than March 31 
                of the year following that vintage year; and</DELETED>
                <DELETED>    ``(B) increase the allocation under this 
                subsection for the vintage year after the vintage year 
                for which emission allowances were undisbursed by the 
                quantity of undisbursed emission allowances, but only 
                to the extent that allowances for that later year are 
                to be auctioned.</DELETED>
<DELETED>    ``(l) Davis-Bacon Compliance.--</DELETED>
        <DELETED>    ``(1) In general.--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 of 
        chapter 31 of title 40, United States Code.</DELETED>
        <DELETED>    ``(2) Authority.--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.</DELETED>

<DELETED>``SEC. 781. OVERSIGHT OF ALLOCATIONS.</DELETED>

<DELETED>    ``(a) In General.--Not later than January 1, 2014, and 
every 2 years thereafter, the Comptroller General of the United States 
shall carry out a review of programs administered by the Federal 
Government that distribute emission allowances or funds from any 
Federal auction of allowances.</DELETED>
<DELETED>    ``(b) Contents.--Each such report shall include a 
comprehensive evaluation of the administration and effectiveness of 
each program, including--</DELETED>
        <DELETED>    ``(1) the efficiency, transparency, and soundness 
        of the administration of each program;</DELETED>
        <DELETED>    ``(2) the performance of activities receiving 
        assistance under each program;</DELETED>
        <DELETED>    ``(3) the cost-effectiveness of each program in 
        achieving the stated purposes of the program; and</DELETED>
        <DELETED>    ``(4) recommendations, if any, for regulatory or 
        administrative changes to each program to improve its 
        effectiveness.</DELETED>
<DELETED>    ``(c) Focus.--In evaluating program performance, each 
review under this section review shall address the effectiveness of 
such programs in--</DELETED>
        <DELETED>    ``(1) creating and preserving jobs;</DELETED>
        <DELETED>    ``(2) ensuring a manageable transition for working 
        families and workers;</DELETED>
        <DELETED>    ``(3) reducing the emissions, or enhancing 
        sequestration, of greenhouse gases;</DELETED>
        <DELETED>    ``(4) developing clean technologies; and</DELETED>
        <DELETED>    ``(5) building resilience to the impacts of 
        climate change.</DELETED>

<DELETED>``SEC. 782. EARLY ACTION RECOGNITION.</DELETED>

<DELETED>    ``(a) In General.--Emission allowances allocated pursuant 
to section 771(a)(7) shall be distributed by the Administrator in 
accordance with this section. Not later than 1 year after the date of 
enactment of this title, the Administrator shall issue regulations 
allowing--</DELETED>
        <DELETED>    ``(1) any person in the United States to exchange 
        instruments in the nature of offset credits issued before 
        January 1, 2009, by a State, local, or voluntary offset program 
        with respect to which the Administrator has made an affirmative 
        determination under section 740(a)(2), for emission allowances 
        established by the Administrator under section 721(a); 
        and</DELETED>
        <DELETED>    ``(2) the Administrator to provide compensation in 
        the form of emission allowances to entities, including units of 
        local government, that do not meet the criteria of paragraph 
        (1) and meet the criteria of this paragraph for documented 
        early reductions or avoidance of greenhouse gas emissions or 
        greenhouse gases sequestered before January 1, 2009, from 
        projects or process improvements begun before January 1, 2009, 
        where--</DELETED>
                <DELETED>    ``(A) the entity publicly stated 
                greenhouse gas reduction goals and publicly reported 
                against those goals;</DELETED>
                <DELETED>    ``(B) the entity demonstrated entity-wide 
                net greenhouse gas reductions; and</DELETED>
                <DELETED>    ``(C) the entity demonstrates the actual 
                projects or process improvements undertaken to make 
                reductions and documents the reductions (such as 
                through documentation of engineering 
                projects).</DELETED>
<DELETED>    ``(b) Regulations.--Regulations issued under subsection 
(a) shall--</DELETED>
        <DELETED>    ``(1) provide that a person exchanging credits 
        under subsection (a)(1) receive emission allowances established 
        under section 721(a) in an amount for which the monetary value 
        is equivalent to the average monetary value of the credits 
        during the period from January 1, 2006, to January 1, 2009, as 
        adjusted for inflation to reflect current dollar values at the 
        time of the exchange;</DELETED>
        <DELETED>    ``(2) provide that a person receiving compensation 
        for documented early action under subsection (a)(2) shall 
        receive emission allowances established under section 721(a) in 
        an amount that is approximately equivalent in value to the 
        carbon dioxide equivalent per ton value received by entities in 
        exchange for credits under paragraph (1) (as adjusted for 
        inflation to reflect current dollar values at the time of the 
        exchange), as determined by the Administrator;</DELETED>
        <DELETED>    ``(3) provide that only reductions or avoidance of 
        greenhouse gas emissions, or sequestration of greenhouse gases, 
        achieved by activities in the United States between January 1, 
        2001, and January 1, 2009, may be compensated under this 
        section, and only credits issued for such activities may be 
        exchanged under this section;</DELETED>
        <DELETED>    ``(4) provide that only credits that have not been 
        retired or otherwise used to meet a voluntary or mandatory 
        commitment, and have not expired, may be exchanged under 
        subsection (a)(1);</DELETED>
        <DELETED>    ``(5) require that, once exchanged, the credit be 
        retired for purposes of use under the program by or for which 
        it was originally issued; and</DELETED>
        <DELETED>    ``(6) establish a deadline by which persons must 
        exchange the credits or request compensation for early action 
        under this section.</DELETED>
<DELETED>    ``(c) Participation.--Participation in an exchange of 
credits for allowances or compensation for early action authorized by 
this section shall not preclude any person from participation in an 
offset credit program established under part D.</DELETED>
<DELETED>    ``(d) Distribution.--Of the emission allowances 
distributed under this section, a quantity equal to 0.75 percent of 
vintage year 2012 emission allowances established under section 721(a) 
shall be distributed pursuant to subsection (a)(1), and a quantity 
equal to 0.25 percent of vintage year 2012 emission allowances 
established under section 721(a) shall be distributed pursuant to 
subsection (a)(2).</DELETED>

<DELETED>``SEC. 783. ESTABLISHMENT OF DEFICIT REDUCTION FUND.</DELETED>

<DELETED>    ``(a) Deficit Reduction Fund.--There is established in the 
Treasury of the United States a fund, to be known as the `Deficit 
Reduction Fund'.</DELETED>
<DELETED>    ``(b) Disbursements.--No disbursement shall be made from 
the Deficit Reduction Fund except pursuant to an appropriation 
Act.''.</DELETED>

   <DELETED>Subtitle C--Additional Greenhouse Gas Standards</DELETED>

<DELETED>SEC. 121. GREENHOUSE GAS STANDARDS.</DELETED>

<DELETED>    The Clean Air Act (42 U.S.C. 7401 et seq.), as amended by 
subtitles A and B of this title, is further amended by adding the 
following new title after title VII:</DELETED>

  <DELETED>``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS</DELETED>

<DELETED>``SEC. 801. DEFINITIONS.</DELETED>

<DELETED>    ``For purposes of this title, terms that are defined in 
title VII, except for the term `stationary source', shall have the 
meanings given those terms in title VII.</DELETED>

        <DELETED>``PART A--STATIONARY SOURCE STANDARDS</DELETED>

<DELETED>``SEC. 811. STANDARDS OF PERFORMANCE.</DELETED>

<DELETED>    ``(a) Definition of Uncapped Greenhouse Gas Emissions.--In 
this section, the term `uncapped greenhouse gas emissions' means those 
greenhouse gas emissions to which section 722 does not apply.</DELETED>
<DELETED>    ``(b) Standards.--Before January 1, 2020, the 
Administrator shall not promulgate new source performance standards for 
greenhouse gases under section 111 that are applicable to any 
stationary source that--</DELETED>
        <DELETED>    ``(1) emits uncapped greenhouse gas emissions; 
        and</DELETED>
        <DELETED>    ``(2) qualifies as an eligible offset project 
        pursuant to section 733 that is eligible to receive an offset 
        credit pursuant to section 737.''.</DELETED>

<DELETED>SEC. 122. HFC REGULATION.</DELETED>

<DELETED>    (a) In General.--Title VI of the Clean Air Act (42 U.S.C. 
7671 et seq.) (relating to stratospheric ozone protection) is amended 
by adding at the end the following:</DELETED>

<DELETED>``SEC. 619. HYDROFLUOROCARBONS (HFCS).</DELETED>

<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(1) Hydrofluorocarbon-23 (HFC-23).</DELETED>
        <DELETED>    ``(2) Hydrofluorocarbon-32 (HFC-32).</DELETED>
        <DELETED>    ``(3) Hydrofluorocarbon-41 (HFC-41).</DELETED>
        <DELETED>    ``(4) Hydrofluorocarbon-125 (HFC-125).</DELETED>
        <DELETED>    ``(5) Hydrofluorocarbon-134 (HFC-134).</DELETED>
        <DELETED>    ``(6) Hydrofluorocarbon-134a (HFC-134a).</DELETED>
        <DELETED>    ``(7) Hydrofluorocarbon-143 (HFC-143).</DELETED>
        <DELETED>    ``(8) Hydrofluorocarbon-143a (HFC-143a).</DELETED>
        <DELETED>    ``(9) Hydrofluorocarbon-152 (HFC-152).</DELETED>
        <DELETED>    ``(10) Hydrofluorocarbon-152a (HFC-
        152a).</DELETED>
        <DELETED>    ``(11) Hydrofluorocarbon-227ea (HFC-
        227ea).</DELETED>
        <DELETED>    ``(12) Hydrofluorocarbon-236cb (HFC-
        236cb).</DELETED>
        <DELETED>    ``(13) Hydrofluorocarbon-236ea (HFC-
        236ea).</DELETED>
        <DELETED>    ``(14) Hydrofluorocarbon-236fa (HFC-
        236fa).</DELETED>
        <DELETED>    ``(15) Hydrofluorocarbon-245ca (HFC-
        245ca).</DELETED>
        <DELETED>    ``(16) Hydrofluorocarbon-245fa (HFC-
        245fa).</DELETED>
        <DELETED>    ``(17) Hydrofluorocarbon-365mfc (HFC-
        365mfc).</DELETED>
        <DELETED>    ``(18) Hydrofluorocarbon-43-10mee (HFC-43-
        10mee).</DELETED>
        <DELETED>    ``(19) Hydrofluoroolefin-1234yf (HFO-
        1234yf).</DELETED>
        <DELETED>    ``(20) Hydrofluoroolefin-1234ze (HFO-
        1234ze).</DELETED>
<DELETED>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.</DELETED>
<DELETED>    ``(b) Consumption and Production of Class II, Group II 
Substances.--</DELETED>
        <DELETED>    ``(1) In general.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Integrity of limits.--To maintain 
                the integrity of the class II, group II limits, 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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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):</DELETED>

----------------------------------------------------------------------------------------------------------------
                    ``Calendar Year                                        Percent of Baseline
----------------------------------------------------------------------------------------------------------------
2012                                                     90
----------------------------------------------------------------------------------------------------------------
2013                                                     87.5
----------------------------------------------------------------------------------------------------------------
2014                                                     85
----------------------------------------------------------------------------------------------------------------
2015                                                     82.5
----------------------------------------------------------------------------------------------------------------
2016                                                     80
----------------------------------------------------------------------------------------------------------------
2017                                                     77.5
----------------------------------------------------------------------------------------------------------------
2018                                                     75
----------------------------------------------------------------------------------------------------------------
2019                                                     71
----------------------------------------------------------------------------------------------------------------
2020                                                     67
----------------------------------------------------------------------------------------------------------------
2021                                                     63
----------------------------------------------------------------------------------------------------------------
2022                                                     59
----------------------------------------------------------------------------------------------------------------
2023                                                     54
----------------------------------------------------------------------------------------------------------------
2024                                                     50
----------------------------------------------------------------------------------------------------------------
2025                                                     46
----------------------------------------------------------------------------------------------------------------
2026                                                     42
----------------------------------------------------------------------------------------------------------------
2027                                                     38
----------------------------------------------------------------------------------------------------------------
2028                                                     34
----------------------------------------------------------------------------------------------------------------
2029                                                     30
----------------------------------------------------------------------------------------------------------------
2030                                                     25
----------------------------------------------------------------------------------------------------------------
2031                                                     21
----------------------------------------------------------------------------------------------------------------
2032                                                     17
----------------------------------------------------------------------------------------------------------------
after 2032                                               15
----------------------------------------------------------------------------------------------------------------

        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(i) the annual average consumption of 
                all class II substances in calendar years 2004, 2005, 
                and 2006; plus</DELETED>
                <DELETED>    ``(ii) the annual average quantity of all 
                class II substances contained in imported products in 
                calendar years 2004, 2005, and 2006.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Distribution of allowances.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Producer-importer pool.--</DELETED>
                        <DELETED>    ``(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:</DELETED>

----------------------------------------------------------------------------------------------------------------
                    ``Calendar Year                                   Percent Available for Auction
----------------------------------------------------------------------------------------------------------------
2012                                                     10
----------------------------------------------------------------------------------------------------------------
2013                                                     20
----------------------------------------------------------------------------------------------------------------
2014                                                     30
----------------------------------------------------------------------------------------------------------------
2015                                                     40
----------------------------------------------------------------------------------------------------------------
2016                                                     50
----------------------------------------------------------------------------------------------------------------
2017                                                     60
----------------------------------------------------------------------------------------------------------------
2018                                                     70
----------------------------------------------------------------------------------------------------------------
2019                                                     80
----------------------------------------------------------------------------------------------------------------
2020 and thereafter                                      90
----------------------------------------------------------------------------------------------------------------

                        <DELETED>    ``(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).</DELETED>
                        <DELETED>    ``(III) Not later than 3 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.</DELETED>
                        <DELETED>    ``(IV) The Administrator shall set 
                        a minimum bid per consumption allowance of the 
                        following:</DELETED>
                                <DELETED>    ``(aa) For vintage year 
                                2012, $1.00.</DELETED>
                                <DELETED>    ``(bb) For vintage year 
                                2013, $1.20.</DELETED>
                                <DELETED>    ``(cc) For vintage year 
                                2014, $1.40.</DELETED>
                                <DELETED>    ``(dd) For vintage year 
                                2015, $1.60.</DELETED>
                                <DELETED>    ``(ee) For vintage year 
                                2016, $1.80.</DELETED>
                                <DELETED>    ``(ff) For vintage year 
                                2017, $2.00.</DELETED>
                                <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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:</DELETED>
                                <DELETED>    ``(aa) A fee of $1.00 per 
                                vintage year 2012 allowance.</DELETED>
                                <DELETED>    ``(bb) A fee of $1.20 per 
                                vintage year 2013 allowance.</DELETED>
                                <DELETED>    ``(cc) A fee of $1.40 per 
                                vintage year 2014 allowance.</DELETED>
                                <DELETED>    ``(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.</DELETED>
                                <DELETED>    ``(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.</DELETED>
                                <DELETED>    ``(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.</DELETED>
                                <DELETED>    ``(gg) For each allowance 
                                of vintage year 2018 and subsequent 
                                vintage years, a fee equal to the 
                                auction clearing price for that vintage 
                                year.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(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 year 2004, 2005, 
                                or 2006, less exportation, less 
                                transfers and sales to persons who 
                                produced class II substances in the 
                                United States during calendar year 
                                2004, 2005, or 2006; and</DELETED>
                                <DELETED>    ``(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.</DELETED>
                        <DELETED>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.</DELETED>
                        <DELETED>    ``(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 year 
                        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).</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(ii) The Administrator shall accept 
                applications for purchase of secondary pool consumption 
                allowances from--</DELETED>
                        <DELETED>    ``(I) importers of products 
                        containing class II, group II 
                        substances;</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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; and</DELETED>
                        <DELETED>    ``(IV) persons who produced or 
                        imported any class II substance during calendar 
                        year 2004, 2005, or 2006.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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:</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(5) Banking.--A consumption allowance or 
        destruction offset credit may be used to meet the compliance 
        obligation requirements of paragraph (1) in--</DELETED>
                <DELETED>    ``(A) the vintage year for the allowance 
                or destruction offset credit; or</DELETED>
                <DELETED>    ``(B) any calendar year subsequent to the 
                vintage year for the allowance or destruction offset 
                credit.</DELETED>
        <DELETED>    ``(6) Auctions.--</DELETED>
                <DELETED>    ``(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:</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(ii) Auction format.--Auctions 
                        shall follow a single-round, sealed-bid, 
                        uniform price format.</DELETED>
                        <DELETED>    ``(iii) Financial assurance.--The 
                        Administrator may establish financial assurance 
                        requirements to ensure that auction 
                        participants can and will perform on their 
                        bids.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(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; or</DELETED>
                                <DELETED>    ``(II) the number of 
                                allowances equal to the product of--
                                </DELETED>
                                        <DELETED>    ``(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); 
                                        and</DELETED>
                                        <DELETED>    ``(bb) the number 
                                        of vintage year 2012 allowances 
                                        offered at auction.</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(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; and</DELETED>
                                <DELETED>    ``(II) the number of 
                                vintage year 2013 allowances offered at 
                                auction.</DELETED>
                        <DELETED>    ``(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--</DELETED>
                                <DELETED>    ``(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; and</DELETED>
                                <DELETED>    ``(II) the number of 
                                allowances offered at auction for that 
                                vintage year.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(7) Payments for allowances.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(9) Offsets.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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 limits and the integrity of the 
                class II, group II limits. 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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(10) Legal status of allowances and credits.--
        None of the following constitutes a property right:</DELETED>
                <DELETED>    ``(A) A production or consumption 
                allowance.</DELETED>
                <DELETED>    ``(B) A destruction offset 
                credit.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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 shall consider providing exceptions for essential uses 
under paragraph (1) and may provide exceptions for essential uses under 
paragraph (2), as follows:</DELETED>
        <DELETED>    ``(1) Medical devices.--If the Administrator makes 
        the determination under this subsection that a medical device 
        is eligible for an exception, after notice and opportunity for 
        public comment, and in consultation with the Commissioner of 
        Food and Drugs, the Administrator shall provide an exception 
        for the production and consumption of class II, group II 
        substances solely for use in medical devices, such as metered 
        dose inhalers.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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'.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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:</DELETED>
        <DELETED>    ``(1) The United States may transfer production 
        allowances to another party to such agreement or amendment if, 
        at the time of the transfer, the Administrator establishes 
        revised production limits for the United States accounting for 
        the transfer in accordance with regulations promulgated 
        pursuant to this subsection.</DELETED>
        <DELETED>    ``(2) The United States may acquire production 
        allowances from another party to such agreement or amendment 
        if, at the time of the transfer, the Administrator finds that 
        the other party has revised its domestic production limits in 
        the same manner as provided with respect to transfers by the 
        United States in the regulations promulgated pursuant to this 
        subsection.</DELETED>
<DELETED>    ``(l) Relationship to Other Laws.--</DELETED>
        <DELETED>    ``(1) State laws.--For purposes of section 116, 
        the requirements of this section for class II, group II 
        substances shall be treated as requirements for the control and 
        abatement of air pollution.</DELETED>
        <DELETED>    ``(2) Multilateral agreements.--Section 614 shall 
        apply to the provisions of this section concerning class II, 
        group II substances, except that for the words `Montreal 
        Protocol' there shall be substituted the words `Montreal 
        Protocol, or any applicable multilateral agreement to which the 
        United States is a party or otherwise adheres that restricts 
        the production or consumption of class II, group II 
        substances,' and for the words `Article 4 of the Montreal 
        Protocol' there shall be substituted `any provision of such 
        multilateral agreement regarding trade with non-
        parties'.</DELETED>
        <DELETED>    ``(3) Federal facilities.--For purposes of section 
        118, the requirements of this section for class II, group II 
        substances and corresponding State, interstate, and local 
        requirements, administrative authority, and process and 
        sanctions shall be treated as requirements for the control and 
        abatement of air pollution within the meaning of section 
        118.</DELETED>
<DELETED>    ``(m) Carbon Dioxide Equivalent Value.--(1) In lieu of 
section 602(e), the provisions of this subsection shall apply in the 
case of class II, group II substances. Simultaneously with establishing 
the list of class II, group II substances, and simultaneously with any 
addition to that list, the Administrator shall publish the carbon 
dioxide equivalent value of each listed class II, group II substance, 
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 class II, group II substance.</DELETED>
<DELETED>    ``(2) Not later than February 1, 2017, and not less than 
every 5 years thereafter, the Administrator shall--</DELETED>
        <DELETED>    ``(A) review, and if appropriate, revise the 
        carbon dioxide equivalent values established for class II, 
        group II substances based on a determination of the number of 
        metric tons of carbon dioxide that makes the same contributions 
        to global warming over 100 years as 1 metric ton of each class 
        II, group II substance; and</DELETED>
        <DELETED>    ``(B) publish in the Federal Register the results 
        of that review and any revisions.</DELETED>
<DELETED>    ``(3) A revised determination published in the Federal 
Register under paragraph (2)(B) shall take effect for production of 
class II, group II substances, consumption of class II, group II 
substances, and importation of products containing class II, group II 
substances starting on January 1 of the first calendar year starting at 
least 9 months after the date on which the revised determination was 
published.</DELETED>
<DELETED>    ``(4) The Administrator may decrease the frequency of 
review and revision under paragraph (2) if the Administrator determines 
that such decrease is appropriate in order to synchronize such review 
and revisions with any similar review process carried out pursuant to 
the United Nations Framework Convention on Climate Change, an agreement 
negotiated under that convention, The Vienna Convention for the 
Protection of the Ozone Layer, or 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.</DELETED>
<DELETED>    ``(n) Reporting Requirements.--In lieu of subsections (b) 
and (c) of section 603, paragraphs (1) and (2) of this subsection shall 
apply in the case of class II, group II substances:</DELETED>
        <DELETED>    ``(1) In general.--On a quarterly basis, or such 
        other basis (not less than annually) as determined by the 
        Administrator, each person who produced, imported, or exported 
        a class II, group II substance, or who imported a product 
        containing a class II, group II substance, shall file a report 
        with the Administrator setting forth the carbon dioxide 
        equivalent amount of the substance that such person produced, 
        imported, or exported, as well as the amount that was contained 
        in products imported by that person, during the preceding 
        reporting period. Each such report shall be signed and attested 
        by a responsible officer. If all other reporting is complete, 
        no such report shall be required from a person after April 1 of 
        the calendar year after such person permanently ceases 
        production, importation, and exportation of the substance, as 
        well as importation of products containing the substance, and 
        so notifies the Administrator in writing. 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 or consumption of class II, group II substances, 
        then, if all other reporting is complete, no such report shall 
        be required from a person with respect to importation from 
        parties to such agreement or amendment of products containing 
        any class II, group II substance restricted by such agreement 
        or amendment, after April 1 of the calendar year following the 
        year during which such agreement or amendment enters into 
        force.</DELETED>
        <DELETED>    ``(2) Baseline reports for class ii, group ii 
        substances.--</DELETED>
                <DELETED>    ``(A) In general.--Unless such information 
                has been previously reported to the Administrator, on 
                the date on which the first report under paragraph (1) 
                of this subsection is required to be filed, each person 
                who produced, imported, or exported a class II, group 
                II substance, or who imported a product containing a 
                class II substance, (other than a substance added to 
                the list of class II, group II substances after the 
                publication of the initial list of such substances 
                under this section), shall file a report with the 
                Administrator setting forth the amount of such 
                substance that such person produced, imported, 
                exported, or that was contained in products imported by 
                that person, during each of calendar years 2004, 2005, 
                and 2006.</DELETED>
                <DELETED>    ``(B) Producers.--In reporting under 
                subparagraph (A), each person who produced in the 
                United States a class II substance during calendar year 
                2004, 2005, or 2006 shall--</DELETED>
                        <DELETED>    ``(i) report all acquisitions or 
                        purchases of class II substances during each of 
                        calendar years 2004, 2005, and 2006 from all 
                        other persons who produced in the United States 
                        a class II substance during calendar year 2004, 
                        2005, or 2006, and supply evidence of such 
                        acquisitions and purchases as deemed necessary 
                        by the Administrator; and</DELETED>
                        <DELETED>    ``(ii) report all transfers or 
                        sales of class II substances during each of 
                        calendar years 2004, 2005, and 2006 to all 
                        other persons who produced in the United States 
                        a class II substance during calendar year 2004, 
                        2005, or 2006, and supply evidence of such 
                        transfers and sales as deemed necessary by the 
                        Administrator.</DELETED>
                <DELETED>    ``(C) Added substances.--In the case of a 
                substance added to the list of class II, group II 
                substances after publication of the initial list of 
                such substances under this section, each person who 
                produced, imported, exported, or imported products 
                containing such substance in calendar year 2004, 2005, 
                or 2006 shall file a report with the Administrator 
                within 180 days after the date on which such substance 
                is added to the list, setting forth the amount of the 
                substance that such person produced, imported, and 
                exported, as well as the amount that was contained in 
                products imported by that person, in calendar years 
                2004, 2005, and 2006.</DELETED>
<DELETED>    ``(o) Stratospheric Ozone and Climate Protection Fund.--
</DELETED>
        <DELETED>    ``(1) In general.--There is established in the 
        Treasury of the United States a Stratospheric Ozone and Climate 
        Protection Fund.</DELETED>
        <DELETED>    ``(2) Deposits.--The Administrator shall deposit 
        all proceeds from the auction and non-auction sale of 
        allowances under this section into the Stratospheric Ozone and 
        Climate Protection Fund.</DELETED>
        <DELETED>    ``(3) Use.--Amounts deposited into the 
        Stratospheric Ozone and Climate Protection Fund shall be 
        available, subject to appropriations, exclusively for the 
        following purposes:</DELETED>
                <DELETED>    ``(A) Recovery, recycling, and 
                reclamation.--The Administrator may utilize funds to 
                establish a program to incentivize the recovery, 
                recycling, and reclamation of any Class II substances 
                in order to reduce emissions of such 
                substances.</DELETED>
                <DELETED>    ``(B) Multilateral fund.--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, the Administrator may 
                utilize funds to meet any related contribution 
                obligation of the United States to the Multilateral 
                Fund for the Implementation of the Montreal Protocol or 
                similar multilateral fund established under such 
                multilateral agreement.</DELETED>
                <DELETED>    ``(C) Low global warming product 
                transition assistance program.--</DELETED>
                        <DELETED>    ``(i) In general.--The 
                        Administrator, in consultation with the 
                        Secretary of Energy, may utilize funds in 
                        fiscal years 2012 through 2022 to establish a 
                        program to provide financial assistance to 
                        manufacturers of products containing class II, 
                        group II substances to facilitate the 
                        transition to products that contain or utilize 
                        alternative substances with no or low carbon 
                        dioxide equivalent value and no ozone depletion 
                        potential.</DELETED>
                        <DELETED>    ``(ii) Definition.--In this 
                        subparagraph, the term `products' means 
                        refrigerators, freezers, dehumidifiers, air 
                        conditioners, foam insulation, technical 
                        aerosols, fire protection systems, and 
                        semiconductors.</DELETED>
                        <DELETED>    ``(iii) Financial assistance.--The 
                        Administrator may provide financial assistance 
                        to manufacturers pursuant to clause (i) for--
                        </DELETED>
                                <DELETED>    ``(I) the design and 
                                configuration of new products that use 
                                alternative substances with no or low 
                                carbon dioxide equivalent value and no 
                                ozone depletion potential; 
                                and</DELETED>
                                <DELETED>    ``(II) the redesign and 
                                retooling of facilities for the 
                                manufacture of products in the United 
                                States that use alternative substances 
                                with no or low carbon dioxide 
                                equivalent value and no ozone depletion 
                                potential.</DELETED>
                        <DELETED>    ``(iv) Reports.--For any fiscal 
                        year during which the Administrator provides 
                        financial assistance pursuant to this 
                        subparagraph, the Administrator shall submit a 
                        report to the Congress within 3 months of the 
                        end of such fiscal year detailing the amounts, 
                        recipients, specific purposes, and results of 
                        the financial assistance provided.''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents of title VI 
of the Clean Air Act (42 U.S.C. 7671 et seq.) is amended by adding the 
following new item at the end thereof:</DELETED>

<DELETED>``Sec. 619. Hydrofluorocarbons (HFCs).''.
<DELETED>    (c) Fire Suppression Agents.--Section 605(a) of the Clean 
Air Act (42 U.S.C. 7671(a)) is amended--</DELETED>
        <DELETED>    (1) by striking ``or'' at the end of paragraph 
        (2);</DELETED>
        <DELETED>    (2) by striking the period at the end of paragraph 
        (3) and inserting ``; or''; and</DELETED>
        <DELETED>    (3) by adding the following new paragraph after 
        paragraph (3):</DELETED>
        <DELETED>    ``(4) is listed as acceptable for use as a fire 
        suppression agent for nonresidential applications in accordance 
        with section 612(c).''.</DELETED>
<DELETED>    (d) Motor Vehicle Air Conditioners.--</DELETED>
        <DELETED>    (1) Section 609(e) of the Clean Air Act (42 U.S.C. 
        7671h(e)) is amended by inserting ``, group I'' after each 
        reference to ``class II'' in the text and heading.</DELETED>
        <DELETED>    (2) Section 609 of the Clean Air Act (42 U.S.C. 
        7671h) is amended by adding the following new subsection after 
        subsection (e):</DELETED>
<DELETED>    ``(f) Class II, Group II Substances.--</DELETED>
        <DELETED>    ``(1) Repair.--The Administrator may promulgate 
        regulations establishing requirements for repair of motor 
        vehicle air conditioners prior to adding a class II, group II 
        substance.</DELETED>
        <DELETED>    ``(2) Small containers.--(A) The Administrator may 
        promulgate regulations establishing servicing practices and 
        procedures for recovery of class II, group II substances from 
        containers which contain less than 20 pounds of such class II, 
        group II substances.</DELETED>
        <DELETED>    ``(B) Not later than 18 months after enactment of 
        this subsection, the Administrator shall either promulgate 
        regulations requiring that containers which contain less than 
        20 pounds of a class II, group II substance be equipped with a 
        device or technology that limits refrigerant emissions and 
        leaks from the container and limits refrigerant emissions and 
        leaks during the transfer of refrigerant from the container to 
        the motor vehicle air conditioner or issue a determination that 
        such requirements are not necessary or appropriate.</DELETED>
        <DELETED>    ``(C) Not later than 18 months after enactment of 
        this subsection, the Administrator shall promulgate regulations 
        establishing requirements for consumer education materials on 
        best practices associated with the use of containers which 
        contain less than 20 pounds of a class II, group II substance 
        and prohibiting the sale or distribution, or offer for sale or 
        distribution, of any class II, group II substance in any 
        container which contains less than 20 pounds of such class II, 
        group II substance, unless consumer education materials 
        consistent with such requirements are displayed and available 
        at point-of-sale locations, provided to the consumer, or 
        included in or on the packaging of the container which contain 
        less than 20 pounds of a class II, group II 
        substance.</DELETED>
        <DELETED>    ``(D) The Administrator may, through rulemaking, 
        extend the requirements established under this paragraph to 
        containers which contain 30 pounds or less of a class II, group 
        II substance if the Administrator determines that such action 
        would produce significant environmental benefits.</DELETED>
        <DELETED>    ``(3) Restriction of sales.--Effective January 1, 
        2014, no person may sell or distribute or offer to sell or 
        distribute or otherwise introduce into interstate commerce any 
        motor vehicle air conditioner refrigerant in any size container 
        unless the substance has been found acceptable for use in a 
        motor vehicle air conditioner under section 612.''.</DELETED>
<DELETED>    (e) Safe Alternatives Policy.--Section 612(e) of the Clean 
Air Act (42 U.S.C. 7671k(e)) is amended by inserting ``or class II'' 
after each reference to ``class I''.</DELETED>

<DELETED>SEC. 123. BLACK CARBON.</DELETED>

<DELETED>    (a) Study of Black Carbon Emissions.--</DELETED>
        <DELETED>    (1) Definition of black carbon.--In this 
        subsection, the term ``black carbon'' means any light-absorbing 
        graphitic (or elemental) particle produced by incomplete 
        combustion.</DELETED>
        <DELETED>    (2) Study.--The Administrator, in consultation 
        with the Secretary of Energy, the Secretary of State, and the 
        heads of the National Oceanic and Atmospheric Administration, 
        the National Aeronautics and Space Administration, the United 
        States Agency for International Development, the National 
        Institutes of Health, the Centers for Disease Control and 
        Prevention, National Institute of Standards and Technology, and 
        other relevant Federal departments and agencies and 
        representatives of appropriate industry and environmental 
        groups, shall conduct a 4-phase study of black carbon 
        emissions, the phases of which shall be the 
        following:</DELETED>
                <DELETED>    (A) Phase i--universal definition.--The 
                Administrator shall conduct phase I of the study under 
                this subsection to carry out measures to establish for 
                the scientific community standard definitions of the 
                terms--</DELETED>
                        <DELETED>    (i) black carbon; and</DELETED>
                        <DELETED>    (ii) organic carbon.</DELETED>
                <DELETED>    (B) Phase ii--sources and technologies.--
                The Administrator shall conduct phase II of the study 
                under this subsection to summarize the available 
                scientific and technical information concerning--
                </DELETED>
                        <DELETED>    (i) the identification of the 
                        major sources of black carbon emissions in the 
                        United States and throughout the 
                        world;</DELETED>
                        <DELETED>    (ii) an estimate of--</DELETED>
                                <DELETED>    (I) the quantity of 
                                current and projected future black 
                                carbon emissions from those sources; 
                                and</DELETED>
                                <DELETED>    (II) the net climate 
                                effects of the emissions;</DELETED>
                        <DELETED>    (iii) the most recent scientific 
                        data relevant to the public health- and 
                        climate-related impacts of black carbon 
                        emissions and associated emissions of organic 
                        carbon, nitrogen oxides, and sulfur oxides from 
                        the sources identified under clause 
                        (i);</DELETED>
                        <DELETED>    (iv) the most effective control 
                        strategies for additional domestic and 
                        international reductions in black carbon 
                        emissions, taking into consideration lifecycle 
                        analysis, cost-effectiveness, and the net 
                        climate impact of technologies, operations, and 
                        strategies, such as--</DELETED>
                                <DELETED>    (I) diesel particulate 
                                filters on existing diesel on- and off-
                                road engines; and</DELETED>
                                <DELETED>    (II) particulate emission 
                                reduction measures for marine 
                                vessels;</DELETED>
                        <DELETED>    (v) carbon dioxide equivalency 
                        factors, global/regional modeling, or other 
                        metrics to compare the global warming and other 
                        climate effects of black carbon emissions with 
                        carbon dioxide and other greenhouse gas 
                        emissions; and</DELETED>
                        <DELETED>    (vi) the health benefits 
                        associated with additional black carbon 
                        emission reductions.</DELETED>
                <DELETED>    (C) Phase iii--international funding.--The 
                Administrator shall conduct phase III of the study 
                under this subsection--</DELETED>
                        <DELETED>    (i) to summarize the amount, type, 
                        and direction of all actual and potential 
                        financial, technical, and related assistance 
                        provided by the United States to foreign 
                        countries to reduce, mitigate, or otherwise 
                        abate--</DELETED>
                                <DELETED>    (I) black carbon 
                                emissions; and</DELETED>
                                <DELETED>    (II) any health, 
                                environmental, and economic impacts 
                                associated with those emissions; 
                                and</DELETED>
                        <DELETED>    (ii) to identify opportunities, 
                        including action under existing authority, to 
                        achieve significant black carbon emission 
                        reductions in foreign countries through the 
                        provision of technical assistance or other 
                        approaches.</DELETED>
                <DELETED>    (D) Phase iv--research and development 
                opportunities.--The Administrator shall conduct phase 
                IV of the study under this subsection for the purpose 
                of providing to Congress recommendations regarding--
                </DELETED>
                        <DELETED>    (i) areas of focus for additional 
                        research for cost-effective technologies, 
                        operations, and strategies with the highest 
                        potential to reduce black carbon emissions and 
                        protect public health in the United States and 
                        internationally; and</DELETED>
                        <DELETED>    (ii) actions that the Federal 
                        Government could take to encourage or require 
                        additional black carbon emission 
                        reductions.</DELETED>
        <DELETED>    (3) Reports.--The Administrator shall submit to 
        Congress--</DELETED>
                <DELETED>    (A) by not later than 180 days after the 
                date of enactment of this Act, a report describing the 
                results of phases I and II of the study under 
                subparagraphs (A) and (B) of paragraph (2);</DELETED>
                <DELETED>    (B) by not later than 270 days after the 
                date of enactment of this Act, a report describing the 
                results of phase III of the study under paragraph 
                (2)(C); and</DELETED>
                <DELETED>    (C) by not later than 1 year after the 
                date of enactment of this Act, a report describing the 
                recommendations developed for phase IV of the study 
                under paragraph (2)(D).</DELETED>
        <DELETED>    (4) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection.</DELETED>
<DELETED>    (b) Black Carbon Mitigation.--Title VIII of the Clean Air 
Act (as amended by section 113 of division A) is amended by adding at 
the end the following:</DELETED>

               <DELETED>``PART E--BLACK CARBON</DELETED>

<DELETED>``SEC. 851. BLACK CARBON.</DELETED>

<DELETED>    ``(a) Domestic Black Carbon Mitigation.--</DELETED>
        <DELETED>    ``(1) In general.--Taking into consideration the 
        public health and environmental impacts of black carbon 
        emissions, including the effects on global and regional 
        warming, the Arctic, and other snow and ice-covered surfaces, 
        the Administrator shall--</DELETED>
                <DELETED>    ``(A) not later than 2 years after the 
                date of enactment of this part, propose--</DELETED>
                        <DELETED>    ``(i) regulations applicable to 
                        emissions of black carbon under the existing 
                        authorities of this Act; or</DELETED>
                        <DELETED>    ``(ii) a finding that existing 
                        regulations promulgated pursuant to this Act 
                        adequately regulate black carbon emissions, 
                        which finding may be based on a finding that 
                        existing regulations, in the judgment of the 
                        Administrator--</DELETED>
                                <DELETED>    ``(I) address those 
                                sources that both contribute 
                                significantly to the total emissions of 
                                black carbon and provide the greatest 
                                potential for significant and cost-
                                effective reductions in emissions of 
                                black carbon, under the existing 
                                authorities; and</DELETED>
                                <DELETED>    ``(II) reflect the 
                                greatest degree of emission reduction 
                                achievable through application of 
                                technology that will be available for 
                                such sources, giving appropriate 
                                consideration to cost, energy, and 
                                safety factors associated with the 
                                application of such technology; 
                                and</DELETED>
                <DELETED>    ``(B) not later than 3 years after the 
                date of enactment of this part, promulgate final 
                regulations under the existing authorities of this Act 
                or finalize the proposed finding.</DELETED>
        <DELETED>    ``(2) Applicability of regulations.--Regulations 
        promulgated under paragraph (1) shall not apply to specific 
        types, classes, categories, or other suitable groupings of 
        emission sources that the Administrator finds are subject to 
        adequate regulation.</DELETED>
<DELETED>    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to carry out 
this section.''.</DELETED>

<DELETED>SEC. 124. STATES.</DELETED>

<DELETED>    Section 116 of the Clean Air Act (42 U.S.C. 7416) is 
amended by adding the following at the end thereof: ``For the purposes 
of this section, the phrases `standard or limitation respecting 
emissions of air pollutants' and `requirements respecting control or 
abatement of air pollution' shall include any provision to: limit 
greenhouse gas emissions, require surrender to the State or a political 
subdivision thereof of emission allowances or offset credits 
established or issued under this Act, and require the use of such 
allowances or credits as a means of demonstrating compliance with 
requirements established by a State or political subdivision 
thereof.''.</DELETED>

<DELETED>SEC. 125. STATE PROGRAMS.</DELETED>

<DELETED>    Title VIII of the Clean Air Act (as amended by section 
123(b)) is amended by adding at the end the following:</DELETED>

               <DELETED>``PART F--MISCELLANEOUS</DELETED>

<DELETED>``SEC. 861. STATE PROGRAMS.</DELETED>

<DELETED>    ``(a) In General.--Notwithstanding section 116, if a 
Federal auction is conducted, by the deadline of March 31, 2011, as 
established in section 778, no State or political subdivision thereof 
shall implement or enforce a comprehensive greenhouse gas emission 
limitation program that covers any capped emissions emitted during the 
years 2012 through 2017.</DELETED>
<DELETED>    ``(b) Deadline.--Notwithstanding section 116, in the event 
the March 31, 2011 auction is delayed, no State or political 
subdivision thereof shall enforce a comprehensive greenhouse gas 
emission limitation program that covers any capped emissions emitted 
during the period that is at least 9 months from the first auction as 
set out in section 778, through 2017.</DELETED>
<DELETED>    ``(c) Definition of Comprehensive Greenhouse Gas Emission 
Limitation Program.--For purposes of this section, the term 
`comprehensive greenhouse gas emission limitation program' means a 
system of greenhouse gas regulation under which a State or political 
subdivision issues a limited number of tradable instruments in the 
nature of emission allowances and requires that sources within its 
jurisdiction surrender such tradeable instruments for each unit of 
greenhouse gases emitted during a compliance period. For purposes of 
this section, a `comprehensive greenhouse gas emission limitation 
program' does not include a target or limit on greenhouse gas emissions 
adopted by a State or political subdivision that is implemented other 
than through the issuance and surrender of a limited number of tradable 
instruments in the nature of emission allowances, nor does it include 
any other standard, limit, regulation, or program to reduce greenhouse 
gas emissions that is not implemented through the issuance and 
surrender of a limited number of tradeable instruments in the nature of 
emission allowances. For purposes of this section, the term 
`comprehensive greenhouse gas emission limitation program' does not 
include, among other things, fleet-wide motor vehicle emission 
requirements that allow greater emissions with increased vehicle 
production, or requirements that fuels, or other products, meet an 
average pollution emission rate or lifecycle greenhouse gas 
standard.</DELETED>

<DELETED>``SEC. 862. GRANTS FOR SUPPORT OF AIR POLLUTION CONTROL 
              PROGRAMS.</DELETED>

<DELETED>    ``The Administrator is authorized to make grants to air 
pollution control agencies pursuant to section 105 for purposes of 
assisting in the implementation of programs to address global warming 
established under the Clean Energy Jobs and American Power 
Act.''.</DELETED>

<DELETED>SEC. 126. ENFORCEMENT.</DELETED>

<DELETED>    (a) Remand.--Section 307(b) of the Clean Air Act (42 
U.S.C. 7607(b)) is amended by adding the following new paragraph at the 
end thereof:</DELETED>
        <DELETED>    ``(3) If the court determines that any action of 
        the Administrator is arbitrary, capricious, or otherwise 
        unlawful, the court may remand such action, without vacatur, if 
        vacatur would impair or delay protection of the environment or 
        public health or otherwise undermine the timely achievement of 
        the purposes of this Act.</DELETED>
        <DELETED>    ``(4) If the court determines that any action of 
        the Administrator is arbitrary, capricious, or otherwise 
        unlawful, and remands the matter to the Administrator, the 
        Administrator shall complete final action on remand within an 
        expeditious time period not longer than the time originally 
        allowed for the action or 1 year, whichever is less, unless the 
        court on motion determines that a shorter or longer period is 
        necessary, appropriate, and consistent with the purposes of 
        this Act. The court of appeals shall have jurisdiction to 
        enforce a deadline for action on remand under this 
        paragraph.''.</DELETED>
<DELETED>    (b) Petition for Reconsideration.--Section 307(d)(7)(B) of 
the Clean Air Act (42 U.S.C. 7607(d)(7)(B)) is amended as 
follows:</DELETED>
        <DELETED>    (1) By inserting after the second sentence ``If a 
        petition for reconsideration is filed, the Administrator shall 
        take final action on such petition, including promulgation of 
        final action either revising or determining not to revise the 
        action for which reconsideration is sought, within 150 days 
        after the petition is received by the Administrator or the 
        petition shall be deemed denied for the purpose of judicial 
        review.''.</DELETED>
        <DELETED>    (2) By amending the third sentence to read as 
        follows: ``Such person may seek judicial review of such denial, 
        or of any other final action, by the Administrator, in response 
        to a petition for reconsideration, in the United States court 
        of appeals for the appropriate circuit (as provided in 
        subsection (b)).''.</DELETED>
<DELETED>    (c) Petition for Review.--Section 307(b)(1) of the Clean 
Air Act (42 U.S.C. 7607(b)(1)) is amended by inserting after the second 
sentence the following: ``Any person may file a petition for review of 
action by the Administrator as provided in this 
subsection.''.</DELETED>

<DELETED>SEC. 127. CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Federal Enforcement.--Section 113 of the Clean Air Act 
(42 U.S.C. 7413) is amended as follows:</DELETED>
        <DELETED>    (1) In subsection (a)(3), by striking ``or title 
        VI,'' and inserting ``title VI, title VII, or title 
        VIII''.</DELETED>
        <DELETED>    (2) In subsection (b), by striking ``or a major 
        stationary source'' and inserting ``a major stationary source, 
        or a covered EGU under title VIII'' in the material preceding 
        paragraph (1).</DELETED>
        <DELETED>    (3) In paragraph (2) of subsection (b), by 
        striking ``or title VI'' and inserting ``title VI, title VII, 
        or title VIII''.</DELETED>
        <DELETED>    (4) In subsection (c)--</DELETED>
                <DELETED>    (A) in the first sentence of paragraph 
                (1), by striking ``or title VI (relating to 
                stratospheric ozone control),'' and inserting ``title 
                VI, title VII, or title VIII,''; and</DELETED>
                <DELETED>    (B) in the first sentence of paragraph 
                (3), by striking ``or VI'' and inserting ``VI, VII, or 
                VIII''.</DELETED>
        <DELETED>    (5) In subsection (d)(1)(B), by striking ``or VI'' 
        and inserting ``VI, VII, or VIII''.</DELETED>
        <DELETED>    (6) In subsection (f), in the first sentence, by 
        striking ``or VI'' and inserting ``VI, VII, or 
        VIII''.</DELETED>
<DELETED>    (b) Retention of State Authority.--Section 116 of the 
Clean Air Act (42 U.S.C. 7416) is amended as follows:</DELETED>
        <DELETED>    (1) By striking ``and 233'' and inserting 
        ``233''.</DELETED>
        <DELETED>    (2) By striking ``of moving sources)'' and 
        inserting ``of moving sources), and 861 (preempting certain 
        State greenhouse gas programs for a limited time)''.</DELETED>
<DELETED>    (c) Inspections, Monitoring, and Entry.--Section 114(a) of 
the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking ``section 
112,'' and all that follows through ``(ii)'' and inserting the 
following: ``section 112, or any regulation of greenhouse gas emissions 
under title VII or VIII, (ii)''.</DELETED>
<DELETED>    (d) Enforcement.--Subsection (f) of section 304 of the 
Clean Air Act (42 U.S.C. 7604(f)) is amended as follows:</DELETED>
        <DELETED>    (1) By striking ``; or'' at the end of paragraph 
        (3) thereof and inserting a comma.</DELETED>
        <DELETED>    (2) By striking the period at the end of paragraph 
        (4) thereof and inserting ``, or''.</DELETED>
        <DELETED>    (3) By adding the following after paragraph (4) 
        thereof:</DELETED>
        <DELETED>    ``(5) any requirement of title VII or 
        VIII.''.</DELETED>
<DELETED>    (e) Administrative Proceedings and Judicial Review.--
Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended as 
follows:</DELETED>
        <DELETED>    (1) In subsection (a), by striking ``, or section 
        306'' and inserting ``section 306, or title VII or 
        VIII''.</DELETED>
        <DELETED>    (2) In subsection (b)(1)--</DELETED>
                <DELETED>    (A) by striking ``,,'' and inserting ``,'' 
                in each place such punctuation appears; and</DELETED>
                <DELETED>    (B) by striking ``section 120,'' in the 
                first sentence and inserting ``section 120, any final 
                action under title VII or VIII,''.</DELETED>
        <DELETED>    (3) In subsection (d)(1) by amending subparagraph 
        (S) to read as follows:</DELETED>
                <DELETED>    ``(S) the promulgation or revision of any 
                regulation under title VII or VIII,''.</DELETED>
<DELETED>    (f) Technical Amendment.--Title IV of the Clean Air Act 
(relating to noise pollution) (42 U.S.C. 7641 et seq.)--</DELETED>
        <DELETED>    (1) is amended by redesignating sections 401 
        through 403 as sections 901 through 903, respectively; 
        and</DELETED>
        <DELETED>    (2) is redesignated as title IX and moved to 
        appear at the end of that Act.</DELETED>

<DELETED>SEC. 128. DAVIS-BACON COMPLIANCE.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law and in a manner consistent with other provisions in this Act, to 
receive emission allowances or funding under this Act, or the 
amendments made by this Act, the recipient shall provide reasonable 
assurances that all laborers and mechanics employed by contractors and 
subcontractors on projects funded directly by or assisted in whole or 
in part by and through the Federal Government pursuant to this Act, or 
the amendments made by this Act, or by any entity established in 
accordance with this Act, or the amendments made by this Act, including 
the Carbon Storage Research Corporation, will 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 of chapter 31 of title 40, United States Code (commonly 
known as the ``Davis-Bacon Act''). With respect to the labor standards 
specified in this section, 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.</DELETED>
<DELETED>    (b) Exemption.--Neither subsection (a) nor the 
requirements of subchapter IV of chapter 31 of title 40, United States 
Code, shall apply to retrofitting of the following:</DELETED>
        <DELETED>    (1) Single family homes (both attached and 
        detached) under section 164 of division A.</DELETED>
        <DELETED>    (2) Owner-occupied residential units in larger 
        buildings that have their own dedicated space-conditioning 
        systems under section 164 of division A.</DELETED>
        <DELETED>    (3) Residential buildings (as defined in section 
        164(a) of division A) if designed for residential use by less 
        than 4 families.</DELETED>
        <DELETED>    (4) Nonresidential buildings (as defined in 
        section 164(a) of division A) if the net interior space of such 
        nonresidential building is less than 6,500 square 
        feet.</DELETED>

         <DELETED>Subtitle D--Carbon Market Assurance</DELETED>

<DELETED>SEC. 131. CARBON MARKET ASSURANCE.</DELETED>

<DELETED>    It is the sense of the Senate that there shall be a 
single, integrated carbon market oversight program--</DELETED>
        <DELETED>    (1) to provide for effective and comprehensive 
        market oversight and enforcement;</DELETED>
        <DELETED>    (2) to lower systemic risk and protect 
        consumers;</DELETED>
        <DELETED>    (3) to ensure market liquidity and allowance 
        availability;</DELETED>
        <DELETED>    (4) to enhance the price discovery function of 
        such markets, ensuring that the price for emission allowances 
        and offset credits reflects the marginal cost of 
        abatement;</DELETED>
        <DELETED>    (5) to prevent excessive speculation that 
        contributes to price volatility, including the establishment of 
        robust aggregate position limits and margin 
        requirements;</DELETED>
        <DELETED>    (6) to ensure that market mechanisms and 
        associated oversight support the environmental integrity of the 
        program established under title VII of the Clean Air Act (as 
        added by section 101 of this division);</DELETED>
        <DELETED>    (7) to establish provisions for market 
        transparency that provide authority, resources, and information 
        needed to prevent fraud and manipulation in such 
        markets;</DELETED>
        <DELETED>    (8) to establish standards for trading as, and 
        operation of, trading facilities;</DELETED>
        <DELETED>    (9) to ensure a well-functioning, well-regulated 
        market, including a futures market, designed to manage risk and 
        facilitate investment in emission reductions;</DELETED>
        <DELETED>    (10) to establish clear, professional standards 
        for dealers, traders, and other market participants;</DELETED>
        <DELETED>    (11) to provide for appropriate criminal and civil 
        penalties; and</DELETED>
        <DELETED>    (12) to prevent any excessive leverage by market 
        participants that creates risk to the economy.</DELETED>

      <DELETED>Subtitle E--Ensuring Real Reductions in Industrial 
                          Emissions</DELETED>

<DELETED>SEC. 141. ENSURING REAL REDUCTIONS IN INDUSTRIAL 
              EMISSIONS.</DELETED>

<DELETED>    Title VII of the Clean Air Act (as amended by section 322 
of division A) is amended by adding at the end the following:</DELETED>

       <DELETED>``PART F--ENSURING REAL REDUCTIONS IN INDUSTRIAL 
                          EMISSIONS</DELETED>

<DELETED>``SEC. 761. PURPOSES.</DELETED>

<DELETED>    ``The purposes of this part are--</DELETED>
        <DELETED>    ``(1) to promote a strong global effort to 
        significantly reduce greenhouse gas emissions, and, through 
        this global effort, stabilize greenhouse gas concentrations in 
        the atmosphere at a level that will prevent dangerous 
        anthropogenic interference with the climate system;</DELETED>
        <DELETED>    ``(2) to prevent an increase in greenhouse gas 
        emissions in countries other than the United States as a result 
        of direct and indirect compliance costs incurred under this 
        title;</DELETED>
        <DELETED>    ``(3) to provide a rebate to the owners and 
        operators of entities in domestic eligible industrial sectors 
        for their greenhouse gas emission costs incurred under this 
        title, but not for costs associated with other related or 
        unrelated market dynamics;</DELETED>
        <DELETED>    ``(4) to design such rebates in a way that will 
        prevent carbon leakage while also rewarding innovation and 
        facility-level investments in energy efficiency performance 
        improvements; and</DELETED>
        <DELETED>    ``(5) to eliminate or reduce distribution of 
        emission allowances under this part when such distribution is 
        no longer necessary to prevent carbon leakage from eligible 
        industrial sectors.</DELETED>

<DELETED>``SEC. 762. DEFINITIONS.</DELETED>

<DELETED>    ``In this part:</DELETED>
        <DELETED>    ``(1) Carbon leakage.--The term `carbon leakage' 
        means any substantial increase (as determined by the 
        Administrator) in greenhouse gas emissions by industrial 
        entities located in other countries if such increase is caused 
        by an incremental cost of production increase in the United 
        States resulting from the implementation of this 
        title.</DELETED>
        <DELETED>    ``(2) Eligible industrial sector.--The term 
        `eligible industrial sector' means an industrial sector 
        determined by the Administrator under section 763(b) to be 
        eligible to receive emission allowance rebates under this 
        part.</DELETED>
        <DELETED>    ``(3) Industrial sector.--The term `industrial 
        sector' means any sector that is in the manufacturing sector 
        (as defined in NAICS codes 31, 32, and 33) or that beneficiates 
        or otherwise processes (including agglomeration) metal ores, 
        including iron and copper ores, soda ash, or phosphate. The 
        extraction of metal ores, soda ash, or phosphate shall not be 
        considered to be an industrial sector.</DELETED>
        <DELETED>    ``(4) NAICS.--The term `NAICS' means the North 
        American Industrial Classification System of 2002.</DELETED>
        <DELETED>    ``(5) Output.--The term `output' means the total 
        tonnage or other standard unit of production (as determined by 
        the Administrator) produced by an entity in an industrial 
        sector. The output of the cement sector is hydraulic cement, 
        and not clinker.</DELETED>

<DELETED>``SEC. 763. ELIGIBLE INDUSTRIAL SECTORS.</DELETED>

<DELETED>    ``(a) List.--</DELETED>
        <DELETED>    ``(1) Initial list.--Not later than June 30, 2011, 
        the Administrator shall publish in the Federal Register a list 
        of eligible industrial sectors pursuant to subsection (b). Such 
        list shall include the amount of the emission allowance rebate 
        per unit of production that shall be provided to entities in 
        each eligible industrial sector in the following two calendar 
        years pursuant to section 764.</DELETED>
        <DELETED>    ``(2) Subsequent lists.--Not later than February 
        1, 2013, and every 4 years thereafter, the Administrator shall 
        publish in the Federal Register an updated version of the list 
        published under paragraph (1).</DELETED>
<DELETED>    ``(b) Eligible Industrial Sectors.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than June 30, 2011, 
        the Administrator shall promulgate a rule designating, based on 
        the criteria under paragraph (2), the industrial sectors 
        eligible for emission allowance rebates under this 
        part.</DELETED>
        <DELETED>    ``(2) Presumptively eligible industrial sectors.--
        </DELETED>
                <DELETED>    ``(A) Eligibility criteria.--</DELETED>
                        <DELETED>    ``(i) In general.--An owner or 
                        operator of an entity shall be eligible to 
                        receive emission allowance rebates under this 
                        part if such entity is in an industrial sector 
                        that is included in a six-digit classification 
                        of the NAICS that meets the criteria in both 
                        clauses (ii) and (iii), or the criteria in 
                        clause (iv).</DELETED>
                        <DELETED>    ``(ii) Energy or greenhouse gas 
                        intensity.--As determined by the Administrator, 
                        the industrial sector had--</DELETED>
                                <DELETED>    ``(I) an energy intensity 
                                of at least 5 percent, calculated by 
                                dividing the cost of purchased 
                                electricity and fuel costs of the 
                                sector by the value of the shipments of 
                                the sector, based on data described in 
                                subparagraph (D); or</DELETED>
                                <DELETED>    ``(II) a greenhouse gas 
                                intensity of at least 5 percent, 
                                calculated by dividing--</DELETED>
                                        <DELETED>    ``(aa) the number 
                                        20 multiplied by the number of 
                                        tons of carbon dioxide 
                                        equivalent greenhouse gas 
                                        emissions (including direct 
                                        emissions from fuel combustion, 
                                        process emissions, and indirect 
                                        emissions from the generation 
                                        of electricity used to produce 
                                        the output of the sector) of 
                                        the sector based on data 
                                        described in subparagraph (D); 
                                        by</DELETED>
                                        <DELETED>    ``(bb) the value 
                                        of the shipments of the sector, 
                                        based on data described in 
                                        subparagraph (D).</DELETED>
                        <DELETED>    ``(iii) Trade intensity.--As 
                        determined by the Administrator, the industrial 
                        sector had a trade intensity of at least 15 
                        percent, calculated by dividing the value of 
                        the total imports and exports of such sector by 
                        the value of the shipments plus the value of 
                        imports of such sector, based on data described 
                        in subparagraph (D).</DELETED>
                        <DELETED>    ``(iv) Very high energy or 
                        greenhouse gas intensity.--As determined by the 
                        Administrator, the industrial sector had an 
                        energy or greenhouse gas intensity, as 
                        calculated under clause (ii)(I) or (II), of at 
                        least 20 percent.</DELETED>
                <DELETED>    ``(B) Metal and phosphate production 
                classified under more than one naics code.--For 
                purposes of this section, the Administrator shall--
                </DELETED>
                        <DELETED>    ``(i) aggregate data for the 
                        beneficiation or other processing (including 
                        agglomeration) of metal ores, including iron 
                        and copper ores, soda ash, or phosphate with 
                        subsequent steps in the process of metal and 
                        phosphate manufacturing, regardless of the 
                        NAICS code under which such activity is 
                        classified; and</DELETED>
                        <DELETED>    ``(ii) aggregate data for the 
                        manufacturing of steel with the manufacturing 
                        of steel pipe and tube made from purchased 
                        steel in a nonintegrated process.</DELETED>
                <DELETED>    ``(C) Exclusion.--The petroleum refining 
                sector shall not be an eligible industrial 
                sector.</DELETED>
                <DELETED>    ``(D) Data sources.--</DELETED>
                        <DELETED>    ``(i) Electricity and fuel costs, 
                        value of shipments.--The Administrator shall 
                        determine electricity and fuel costs and the 
                        value of shipments under this subsection from 
                        data from the United States Census Annual 
                        Survey of Manufacturers. The Administrator 
                        shall take the average of data from as many of 
                        the years of 2004, 2005, and 2006 for which 
                        such data are available. If such data are 
                        unavailable, the Administrator shall make a 
                        determination based upon 2002 or 2006 data from 
                        the most detailed industrial classification 
                        level of Energy Information Agency's 
                        Manufacturing Energy Consumption Survey (using 
                        2006 data if it is available) and the 2002 or 
                        2007 Economic Census of the United States 
                        (using 2007 data if it is available). If data 
                        from the Manufacturing Energy Consumption 
                        Survey or Economic Census are unavailable for 
                        any sector at the six-digit classification 
                        level in the NAICS, then the Administrator may 
                        extrapolate the information necessary to 
                        determine the eligibility of a sector under 
                        this paragraph from available Manufacturing 
                        Energy Consumption Survey or Economic Census 
                        data pertaining to a broader industrial 
                        category classified in the NAICS. If data 
                        relating to the beneficiation or other 
                        processing (including agglomeration) of metal 
                        ores, including iron and copper ores, soda ash, 
                        or phosphate are not available from the 
                        specified data sources, the Administrator shall 
                        use the best available Federal or State 
                        government data and may use, to the extent 
                        necessary, representative data submitted by 
                        entities that perform such beneficiation or 
                        other processing (including agglomeration), in 
                        making a determination. Fuel cost data shall 
                        not include the cost of fuel used as feedstock 
                        by an industrial sector.</DELETED>
                        <DELETED>    ``(ii) Imports and exports.--The 
                        Administrator shall base the value of imports 
                        and exports under this subsection on United 
                        States International Trade Commission data. The 
                        Administrator shall take the average of data 
                        from as many of the years of 2004, 2005, and 
                        2006 for which such data are available. If data 
                        from the United States International Trade 
                        Commission are unavailable for any sector at 
                        the six-digit classification level in the 
                        NAICS, then the Administrator may extrapolate 
                        the information necessary to determine the 
                        eligibility of a sector under this paragraph 
                        from available United States International 
                        Trade Commission data pertaining to a broader 
                        industrial category classified in the 
                        NAICS.</DELETED>
                        <DELETED>    ``(iii) Percentages.--The 
                        Administrator shall round the energy intensity, 
                        greenhouse gas intensity, and trade intensity 
                        percentages under subparagraph (A) to the 
                        nearest whole number.</DELETED>
                        <DELETED>    ``(iv) Greenhouse gas emission 
                        calculations.--When calculating the tons of 
                        carbon dioxide equivalent greenhouse gas 
                        emissions for each sector under subparagraph 
                        (A)(ii)(II)(aa), the Administrator--</DELETED>
                                <DELETED>    ``(I) shall use the best 
                                available data from as many of the 
                                years 2004, 2005, and 2006 for which 
                                such data is available; and</DELETED>
                                <DELETED>    ``(II) may, to the extent 
                                necessary with respect to a sector, use 
                                economic and engineering models and the 
                                best available information on 
                                technology performance levels for such 
                                sector.</DELETED>
        <DELETED>    ``(3) Administrative determination of additional 
        eligible industrial sectors.--</DELETED>
                <DELETED>    ``(A) Updated trade intensity data.--The 
                Administrator shall designate as eligible to receive 
                emission allowance rebates under this part an 
                industrial sector that--</DELETED>
                        <DELETED>    ``(i) met the energy or greenhouse 
                        gas intensity criteria in paragraph (2)(A)(ii) 
                        as of the date of promulgation of the rule 
                        under paragraph (1); and</DELETED>
                        <DELETED>    ``(ii) meets the trade intensity 
                        criteria in paragraph (2)(A)(iii), using data 
                        from any year after 2006.</DELETED>
                <DELETED>    ``(B) Individual showing petition.--
                </DELETED>
                        <DELETED>    ``(i) Petition.--In addition to 
                        designation under paragraph (2) or subparagraph 
                        (A) of this paragraph, the owner or operator of 
                        an entity in an industrial sector may petition 
                        the Administrator to designate as eligible 
                        industrial sectors under this part an entity or 
                        a group of entities that--</DELETED>
                                <DELETED>    ``(I) represent a 
                                subsector of a six-digit section of the 
                                NAICS code; and</DELETED>
                                <DELETED>    ``(II) meet the 
                                eligibility criteria in both clauses 
                                (ii) and (iii) of paragraph (2)(A), or 
                                the eligibility criteria in clause (iv) 
                                of paragraph (2)(A).</DELETED>
                        <DELETED>    ``(ii) Data.--In making a 
                        determination under this subparagraph, the 
                        Administrator shall consider data submitted by 
                        the petitioner that is specific to the entity, 
                        data solicited by the Administrator from other 
                        entities in the subsector, if such other 
                        entities exist, and data specified in paragraph 
                        (2)(D).</DELETED>
                        <DELETED>    ``(iii) Basis of subsector 
                        determination.--The Administrator shall 
                        determine an entity or group of entities to be 
                        a subsector of a six-digit section of the NAICS 
                        code based only upon the products manufactured 
                        and not the industrial process by which the 
                        products are manufactured, except that the 
                        Administrator may determine an entity or group 
                        of entities that manufacture a product from 
                        primarily virgin material to be a separate 
                        subsector from another entity or group of 
                        entities that manufacture the same product 
                        primarily from recycled material.</DELETED>
                        <DELETED>    ``(iv) Use of most recent data.--
                        In determining whether to designate a sector or 
                        subsector as an eligible industrial sector 
                        under this subparagraph, the Administrator 
                        shall use the most recent data available from 
                        the sources described in paragraph (2)(D), 
                        rather than the data from the years specified 
                        in paragraph (2)(D), to determine the trade 
                        intensity of such sector or subsector, but only 
                        for determining such trade intensity.</DELETED>
                        <DELETED>    ``(v) Final action.--The 
                        Administrator shall take final action on such 
                        petition no later than 6 months after the 
                        petition is received by the 
                        Administrator.</DELETED>

<DELETED>``SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE 
              REBATES.</DELETED>

<DELETED>    ``(a) Distribution Schedule.--</DELETED>
        <DELETED>    ``(1) In general.--For each vintage year, the 
        Administrator shall distribute pursuant to this section 
        emission allowances made available under section 771(a)(5), no 
        later than October 31 of the preceding calendar year. The 
        Administrator shall make such annual distributions to the 
        owners and operators of each entity in an eligible industrial 
        sector in the amount of emission allowances calculated under 
        subsection (b), except that--</DELETED>
                <DELETED>    ``(A) for vintage years 2012 and 2013, the 
                distribution for a covered entity shall be pursuant to 
                the entity's indirect carbon factor as calculated under 
                subsection (b)(3);</DELETED>
                <DELETED>    ``(B) for vintage year 2026 and 
                thereafter, the distribution shall be pursuant to the 
                amount calculated under subsection (b) multiplied by, 
                for a sector--</DELETED>
                        <DELETED>    ``(i) 90 percent for vintage year 
                        2026;</DELETED>
                        <DELETED>    ``(ii) 80 percent for vintage year 
                        2027;</DELETED>
                        <DELETED>    ``(iii) 70 percent for vintage 
                        year 2028;</DELETED>
                        <DELETED>    ``(iv) 60 percent for vintage year 
                        2029;</DELETED>
                        <DELETED>    ``(v) 50 percent for vintage year 
                        2030;</DELETED>
                        <DELETED>    ``(vi) 40 percent for vintage year 
                        2031;</DELETED>
                        <DELETED>    ``(vii) 30 percent for vintage 
                        year 2032;</DELETED>
                        <DELETED>    ``(viii) 20 percent for vintage 
                        year 2033;</DELETED>
                        <DELETED>    ``(ix) 10 percent for vintage year 
                        2034; and</DELETED>
                        <DELETED>    ``(x) 0 percent for vintage year 
                        2035 and thereafter.</DELETED>
        <DELETED>    ``(2) Newly eligible sectors.--In addition to 
        receiving a distribution of emission allowances under this 
        section in the first distribution occurring after an industrial 
        sector is designated as eligible under section 763(b)(3), the 
        owner or operator of an entity in that eligible industrial 
        sector may receive a prorated share of any emission allowances 
        made available for distribution under this section that were 
        not distributed for the year in which the petition for 
        eligibility was granted under section 763(b)(3)(A).</DELETED>
        <DELETED>    ``(3) Cessation of qualifying activities.--If, as 
        determined by the Administrator, a facility is no longer in an 
        eligible industrial sector designated under section 763--
        </DELETED>
                <DELETED>    ``(A) the Administrator shall not 
                distribute emission allowances to the owner or operator 
                of such facility under this section; and</DELETED>
                <DELETED>    ``(B) the owner or operator of such 
                facility shall return to the Administrator all 
                allowances that have been distributed to it for future 
                vintage years and a pro-rated amount of allowances 
                distributed to the facility under this section for the 
                vintage year in which the facility ceases to be in an 
                eligible industrial sector designated under section 
                763.</DELETED>
<DELETED>    ``(b) Calculation of Direct and Indirect Carbon Factors.--
</DELETED>
        <DELETED>    ``(1) In general.--</DELETED>
                <DELETED>    ``(A) Covered entities.--Except as 
                provided in subsection (a), for covered entities that 
                are in eligible industrial sectors, the amount of 
                emission allowance rebates shall be based on the sum of 
                the covered entity's direct and indirect carbon 
                factors.</DELETED>
                <DELETED>    ``(B) Other eligible entities.--For 
                entities that are in eligible industrial sectors but 
                are not covered entities, the amount of emission 
                allowance rebates shall be based on the entity's 
                indirect carbon factor.</DELETED>
                <DELETED>    ``(C) New entities.--Not later than 2 
                years after the date of enactment of this title, the 
                Administrator shall issue regulations governing the 
                distribution of emission allowance rebates for the 
                first and second years of operation of a new entity in 
                an eligible industrial sector. These regulations shall 
                provide for--</DELETED>
                        <DELETED>    ``(i) the distribution of emission 
                        allowance rebates to such entities based on 
                        comparable entities in the same sector; 
                        and</DELETED>
                        <DELETED>    ``(ii) an adjustment in the third 
                        and fourth years of operation to reconcile the 
                        total amount of emission allowance rebates 
                        received during the first and second years of 
                        operation to the amount the entity would have 
                        received during the first and second years of 
                        operation had the appropriate data been 
                        available.</DELETED>
        <DELETED>    ``(2) Direct carbon factor.--The direct carbon 
        factor for a covered entity for a vintage year is the product 
        of--</DELETED>
                <DELETED>    ``(A) the average annual output of the 
                covered entity for the 2 years preceding the year of 
                the distribution; and</DELETED>
                <DELETED>    ``(B) the most recent calculation of the 
                average direct greenhouse gas emissions (expressed in 
                tons of carbon dioxide equivalent) per unit of output 
                for all covered entities in the sector, as determined 
                by the Administrator under paragraph (4).</DELETED>
        <DELETED>    ``(3) Indirect carbon factor.--</DELETED>
                <DELETED>    ``(A) In general.--The indirect carbon 
                factor for an entity for a vintage year is the product 
                obtained by multiplying the average annual output of 
                the entity for the 2 years preceding the year of the 
                distribution by both the electricity emissions 
                intensity factor determined pursuant to subparagraph 
                (B) and the electricity efficiency factor determined 
                pursuant to subparagraph (C) for the year 
                concerned.</DELETED>
                <DELETED>    ``(B) Electricity emissions intensity 
                factor.--</DELETED>
                        <DELETED>    ``(i) In general.--Each person 
                        selling electricity to the owner or operator of 
                        an entity in any sector designated as an 
                        eligible industrial sector under section 763(b) 
                        shall provide the owner or operator of the 
                        entity and the Administrator, on an annual 
                        basis, the electricity emissions intensity 
                        factor for the entity. The electricity 
                        emissions intensity factor for the entity, 
                        expressed in tons of carbon dioxide equivalents 
                        per kilowatt hour, is determined by dividing--
                        </DELETED>
                                <DELETED>    ``(I) the annual sum of 
                                the hourly product of--</DELETED>
                                        <DELETED>    ``(aa) the 
                                        electricity purchased by the 
                                        entity from that person in each 
                                        hour (expressed in kilowatt 
                                        hours); multiplied by</DELETED>
                                        <DELETED>    ``(bb) the 
                                        marginal or weighted average 
                                        tons of carbon dioxide 
                                        equivalent per kilowatt hour 
                                        that are reflected in the 
                                        electricity charges to the 
                                        entity, as determined by the 
                                        entity's retail rate 
                                        arrangements; by</DELETED>
                                <DELETED>    ``(II) the total kilowatt 
                                hours of electricity purchased by the 
                                entity from that person during that 
                                year.</DELETED>
                        <DELETED>    ``(ii) Use of other data to 
                        determine factor.--Where it is not possible to 
                        determine the precise electricity emissions 
                        intensity factor for an entity using the 
                        methodology in clause (i), the person selling 
                        electricity shall use the monthly average data 
                        reported by the Energy Information 
                        Administration or collected and reported by the 
                        Administrator for the utility serving the 
                        entity to determine the electricity emissions 
                        intensity factor.</DELETED>
                <DELETED>    ``(C) Electricity efficiency factor.--The 
                electricity efficiency factor is the average amount of 
                electricity (in kilowatt hours) used per unit of output 
                for all entities in the relevant sector, as determined 
                by the Administrator based on the best available data, 
                including data provided under paragraph (6).</DELETED>
                <DELETED>    ``(D) Indirect carbon factor reduction.--
                If an electricity provider received a free allocation 
                of emission allowances pursuant to section 771(a)(1), 
                the Administrator shall adjust the indirect carbon 
                factor to avoid rebates to the eligible entity for 
                costs that the Administrator determines were not 
                incurred by the eligible entity because the allowances 
                were freely allocated to the eligible entity's 
                electricity provider and used for the benefit of 
                industrial consumers.</DELETED>
        <DELETED>    ``(4) Greenhouse gas intensity calculations.--The 
        Administrator shall calculate the average direct greenhouse gas 
        emissions (expressed in tons of carbon dioxide equivalent) per 
        unit of output and the electricity efficiency factor for all 
        covered entities in each eligible industrial sector every 4 
        years, using an average of the four most recent years of the 
        best available data. For purposes of the lists required to be 
        published no later than February 1, 2013, the Administrator 
        shall use the best available data for the maximum number of 
        years, up to 4 years, for which data are available.</DELETED>
        <DELETED>    ``(5) Ensuring efficiency improvements.--When 
        making greenhouse gas calculations, the Administrator shall--
        </DELETED>
                <DELETED>    ``(A) limit the average direct greenhouse 
                gas emissions per unit of output, calculated under 
                paragraph (4), for any eligible industrial sector to an 
                amount that is not greater than it was in any previous 
                calculation under this subsection;</DELETED>
                <DELETED>    ``(B) limit the electricity emissions 
                intensity factor, calculated under paragraph (3)(B) and 
                resulting from a change in electricity supply, for any 
                entity to an amount that is not greater than it was 
                during any previous year; and</DELETED>
                <DELETED>    ``(C) limit the electricity efficiency 
                factor, calculated under paragraph (3)(C), for any 
                eligible industrial sector to an amount that is not 
                greater than it was in any previous calculation under 
                this subsection.</DELETED>
        <DELETED>    ``(6) Data sources.--For the purposes of this 
        subsection--</DELETED>
                <DELETED>    ``(A) the Administrator shall use data 
                from the greenhouse gas registry established under 
                section 713, where it is available; and</DELETED>
                <DELETED>    ``(B) each owner or operator of an entity 
                in an eligible industrial sector and each department, 
                agency, and instrumentality of the United States shall 
                provide the Administrator with such information as the 
                Administrator finds necessary to determine the direct 
                carbon factor and the indirect carbon factor for each 
                entity subject to this section.</DELETED>
<DELETED>    ``(c) Total Maximum Distribution.--Notwithstanding 
subsections (a) and (b), the Administrator shall not distribute more 
allowances for any vintage year pursuant to this section than are 
allocated for use under this part pursuant to section 765 for that 
vintage year. For any vintage year for which the total emission 
allowance rebates calculated pursuant to this section exceed the number 
of allowances allocated pursuant to section 765, the Administrator 
shall reduce each entity's distribution on a pro rata basis so that the 
total distribution under this section equals the number of allowances 
allocated under section 765.</DELETED>
<DELETED>    ``(d) Iron and Steel Sector.--For purposes of this 
section, the Administrator shall consider as in different industrial 
sectors--</DELETED>
        <DELETED>    ``(1) entities using integrated iron and 
        steelmaking technologies (including coke ovens, blast furnaces, 
        and other iron-making technologies); and</DELETED>
        <DELETED>    ``(2) entities using electric arc furnace 
        technologies.</DELETED>
<DELETED>    ``(e) Metal, Soda Ash, or Phosphate Production Classified 
Under More Than One Naics Code.--For purposes of this section, the 
Administrator shall not aggregate data for the beneficiation or other 
processing (including agglomeration) of metal ores, soda ash, or 
phosphate with subsequent steps in the process of metal, soda ash, or 
phosphate manufacturing. The Administrator shall consider the 
beneficiation or other processing (including agglomeration) of metal 
ores, soda ash, or phosphate to be in separate industrial sectors from 
the metal, soda ash, or phosphate manufacturing sectors. Industrial 
sectors that beneficiate or otherwise process (including agglomeration) 
metal ores, soda ash, or phosphate shall not receive emission allowance 
rebates under this section related to the activity of extracting metal 
ores, soda ash, or phosphate.</DELETED>
<DELETED>    ``(f) Combined Heat and Power.--For purposes of this 
section, and to achieve the purpose set forth in section 761(4),(the 
Administrator may consider entities to be in different industrial 
sectors or otherwise take into account the differences among entities 
in the same industrial sector, based upon the extent to which such 
entities use combined heat and power technologies.</DELETED>

<DELETED>``SEC. 765. INTERNATIONAL TRADE.</DELETED>

<DELETED>    ``It is the sense of the Senate that this Act will contain 
a trade title that will include a border measure that is consistent 
with our international obligations and designed to work in conjunction 
with provisions that allocate allowances to energy-intensive and trade-
exposed industries.''.</DELETED>

            <DELETED>TITLE II--PROGRAM ALLOCATIONS</DELETED>

<DELETED>SEC. 201. INVESTMENT IN CLEAN VEHICLE TECHNOLOGY.</DELETED>

<DELETED>    (a) Establishment of Fund.--There is established in the 
Treasury a separate account, which shall be known as the ``Clean 
Vehicle Technology Fund''.</DELETED>
<DELETED>    (b) Auction Proceeds.--The Administrator shall deposit the 
proceeds of the auction conducted pursuant to section 771(b)(3) of the 
Clean Air Act in the Clean Vehicle Technology Fund.</DELETED>
<DELETED>    (c) Availability of Amounts.--Of the amounts deposited in 
the Clean Vehicle Technology Fund--</DELETED>
        <DELETED>    (1) 80 percent shall be available to the Secretary 
        of Energy to support--</DELETED>
                <DELETED>    (A) the development and demonstration of a 
                national transportation low-emissions energy plan; 
                and</DELETED>
                <DELETED>    (B) the use of plug-in electric drive 
                vehicles, including medium- and heavy-duty motor 
                vehicles (including transit vehicles) and other 
                advanced technology vehicles (as defined in sections 
                131 and 136 of the Energy Independence and Security Act 
                of 2007 (42 U.S.C. 17011, 17013)) that are developed 
                and produced in the United States; and</DELETED>
        <DELETED>    (2) 20 percent of the amounts shall be available 
        to the Administrator for use in providing grants authorized 
        under subtitle G of title VII of the Energy Policy Act of 2005 
        (42 U.S.C. 16131 et seq.).</DELETED>
<DELETED>    (d) Pilot Program.--</DELETED>
        <DELETED>    (1) In general.--Of the amounts deposited in 
        accordance with (c)(1), the Secretary of Energy shall use not 
        more than 5 percent to develop a national transportation low-
        emissions energy plan that shall--</DELETED>
                <DELETED>    (A) project the near- and long-term need 
                for and location of electric drive vehicle refueling 
                infrastructure at strategic locations across all major 
                national highways, roads, and corridors;</DELETED>
                <DELETED>    (B) identify infrastructure and 
                standardization needs for electricity providers, 
                infrastructure providers, vehicle manufacturers, and 
                electricity purchasers;</DELETED>
                <DELETED>    (C) establish an aspirational goal of 
                achieving strategic deployment of electric vehicle 
                infrastructure by 2020;</DELETED>
                <DELETED>    (D) be developed by the Secretary with the 
                involvement of all relevant stakeholders; and</DELETED>
                <DELETED>    (E) prioritize the development of--
                </DELETED>
                        <DELETED>    (i) standardized public charge 
                        access ports with wireless or smart card 
                        billing capability; and</DELETED>
                        <DELETED>    (ii) level I and level II charge 
                        port systems (that charge an electric vehicle 
                        over a period of 8 to 14 hours and 4 to 8 
                        hours, respectively) that will meet the energy 
                        requirements of the majority of plug-in hybrid 
                        and battery electric vehicles;</DELETED>
                <DELETED>    (F) examine the feasibility of level III 
                charge port systems that can charge an electric vehicle 
                over a period of 10 to 20 minutes; and</DELETED>
                <DELETED>    (G) focus on infrastructure that provides 
                consumers with the lowest cost while providing 
                convenient charge system access.</DELETED>
        <DELETED>    (2) Electric drive demonstration projects.--
        </DELETED>
                <DELETED>    (A) In general.--The Secretary shall 
                establish pilot projects to demonstrate electric drive 
                vehicles and infrastructure.</DELETED>
                <DELETED>    (B) Requirements.--The Secretary shall--
                </DELETED>
                        <DELETED>    (i) establish the pilot projects 
                        described in subparagraph (A) after publication 
                        of the plan developed under paragraph 
                        (1);</DELETED>
                        <DELETED>    (ii) use the plan to determine 
                        which regions of the United States are most 
                        ready to demonstrate electric vehicle 
                        infrastructure;</DELETED>
                        <DELETED>    (iii) carry out the pilot projects 
                        under this paragraph in different regions of 
                        the United States; and</DELETED>
                        <DELETED>    (iv) ensure that--</DELETED>
                                <DELETED>    (I) at least 1 pilot 
                                project is carried out in a rural 
                                region of the United States; 
                                and</DELETED>
                                <DELETED>    (II) at least 1 pilot 
                                project is focused on freight 
                                issues.</DELETED>
        <DELETED>    (3) Financial resources.--In carrying out the 
        pilot projects under paragraph (2), the Secretary shall 
        coordinate the use of appropriate financial incentives, grant 
        programs, and other Federal financial resources to ensure that 
        electric infrastructure delivery entities are able to 
        participate in the pilot projects.</DELETED>
        <DELETED>    (4) LEEP coordinator.--The Secretary may designate 
        1 full-time position within the Department of Transportation, 
        to be known as the ``LEEP coordinator'', with responsibility to 
        oversee--</DELETED>
                <DELETED>    (A) the development of the plan under 
                paragraph (1); and</DELETED>
                <DELETED>    (B) the implementation of the pilot 
                projects under paragraph (2).</DELETED>

<DELETED>SEC. 202. STATE AND LOCAL INVESTMENT IN ENERGY EFFICIENCY AND 
              RENEWABLE ENERGY.</DELETED>

<DELETED>    (a) Definitions.--For purposes of this section:</DELETED>
        <DELETED>    (1) Allowance.--The term ``allowance'' means an 
        emission allowance established under section 721 of the Clean 
        Air Act.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (3) Vintage year.--The term ``vintage year'' has 
        the meaning given the term in section 700 of the Clean Air 
        Act.</DELETED>
<DELETED>    (b) Distribution Among Indian Tribes, States, Local 
Governments, Metropolitan Planning Organizations and Renewable 
Electricity Generations.--The Administrator shall, in accordance with 
this section, distribute allowances allocated pursuant to section 
771(a)(8) of the Clean Air Act for the following vintage year. The 
Administrator, after consultation with the Secretary of the Interior, 
shall distribute not less than 1 percent of such allowances to Indian 
tribes. The Administrator, after consultation with the Secretary of 
Energy and the with the assistance of the Secretary of Transportation, 
shall distribute the remaining allowances among the States, local 
governments, metropolitan planning organizations, and renewable 
electricity generations under this section each year in accordance with 
the following formula:</DELETED>
        <DELETED>    (1) 62.5 percent of the allowances shall be 
        provided to the States, of which--</DELETED>
                <DELETED>    (A) 30 percent shall be divided equally 
                among the States;</DELETED>
                <DELETED>    (B) 30 percent shall be distributed on a 
                pro rata basis 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 for 
                all States at the time at which the Administrator 
                calculates the formula for distribution;</DELETED>
                <DELETED>    (C) 30 percent shall be distributed on a 
                pro rata basis 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); 
                and</DELETED>
                <DELETED>    (D) 10 percentage shall be provided to the 
                States based on an energy-efficiency formula developed 
                by the Administrator, which formula shall be--
                </DELETED>
                        <DELETED>    (i) based on--</DELETED>
                                <DELETED>    (I) weather-adjusted 
                                criteria; and</DELETED>
                                <DELETED>    (II) performance-based 
                                metrics that measure each State's 
                                success at decreasing energy 
                                consumption or increasing energy 
                                efficiency--</DELETED>
                                        <DELETED>    (aa) on a per 
                                        capita basis in the residential 
                                        sector; and</DELETED>
                                        <DELETED>    (bb) on an energy 
                                        consumption per square-foot 
                                        basis in the commercial sector; 
                                        and</DELETED>
                        <DELETED>    (ii) updated every 3 
                        years.</DELETED>
        <DELETED>    (2) 25 percent of the allowances shall be provided 
        to local governments for energy conservation and efficiency 
        grants.</DELETED>
        <DELETED>    (3) 10 percent of the allowances shall be reserved 
        by the Secretary of Transportation for grants to States and 
        metropolitan planning organizations for greenhouse gas 
        reduction programs in the transportation sector.</DELETED>
        <DELETED>    (4) 2.5 percent of the allowances shall be 
        provided to renewable energy generating companies with a 
        capacity of 20 megawatts or greater exclusively for the 
        generation of renewable energy. The Administrator, in 
        consultation with the Secretary of Energy, shall award 
        allocations to renewable energy generation companies based on 
        the number of megawatt-hours the company generates and the 
        technology used. The Administrator shall promulgate such 
        regulations as are appropriate to carry out this 
        paragraph.</DELETED>
<DELETED>    (c) Uses.--The allowances distributed to each State, local 
government, and metropolitan planning organization pursuant to this 
section shall be used exclusively in accordance with the following 
requirements:</DELETED>
        <DELETED>    (1) Allocation to states.--Allowances allocated to 
        the States under subsection (b)(1) shall be for the following 
        purposes and be used in accordance with the following 
        conditions:</DELETED>
                <DELETED>    (A) Purposes.--</DELETED>
                        <DELETED>    (i) Energy efficiency programs.--
                        Not less than 35 percent shall be used 
                        exclusively for--</DELETED>
                                <DELETED>    (I) implementation and 
                                enforcement of building 
                                codes;</DELETED>
                                <DELETED>    (II) implementation of the 
                                energy-efficient manufactured homes 
                                program;</DELETED>
                                <DELETED>    (III) implementation of 
                                building energy performance labeling; 
                                and</DELETED>
                                <DELETED>    (IV) low-income community 
                                energy efficiency programs.</DELETED>
                        <DELETED>    (ii) Renewable energy programs.--
                        Renewable energy programs for capital grants, 
                        production incentives, loans, loan guarantees, 
                        forgivable loans, direct provision of 
                        allowances, and interest rate buy-downs for--
                        </DELETED>
                                <DELETED>    (I) re-equipping, 
                                expanding, or establishing a 
                                manufacturing facility that receives 
                                certification from the Secretary of 
                                Energy pursuant to section 48C of the 
                                Internal Revenue Code of 1986 for the 
                                production of--</DELETED>
                                        <DELETED>    (aa) property 
                                        designed to be used to produce 
                                        energy from renewable energy 
                                        sources; and</DELETED>
                                        <DELETED>    (bb) electricity 
                                        storage systems;</DELETED>
                                <DELETED>    (II) deployment of 
                                technologies to generate electricity 
                                from renewable energy sources; 
                                and</DELETED>
                                <DELETED>    (III) 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.</DELETED>
                        <DELETED>    (iii) Improvement in electricity 
                        transmission.--Improvement in electricity 
                        transmission for 1 or more of the following 
                        purposes:</DELETED>
                                <DELETED>    (I) State implementation 
                                of electricity transmission planning 
                                and siting activities that facilitate 
                                renewable energy development, including 
                                facilitation of landowner negotiations 
                                for transmission of right-of-way 
                                leasing or other contractual 
                                arrangements.</DELETED>
                                <DELETED>    (II) Grants to nonprofit 
                                organizations that facilitate 
                                negotiations for transmission right-of-
                                way leasing or other contractual 
                                agreements between landowners and 
                                developers.</DELETED>
                                <DELETED>    (III) State or regional 
                                studies of renewable energy zones and 
                                resources with insufficient 
                                transmission capacity, including 
                                geographical identification of 
                                potential renewable energy sites, 
                                environmental reviews, and land use or 
                                coastal zone constraints.</DELETED>
                                <DELETED>    (IV) Grants to support 
                                landowner associations' and other 
                                nonprofit organizations' participation 
                                in State and Federal siting processes, 
                                including such associations' studies of 
                                renewable energy feasibility and 
                                benefits and associated data 
                                collection.</DELETED>
                                <DELETED>    (V) Grants to landowners 
                                or landowner associations or nonprofit 
                                organizations for mitigation of impacts 
                                on property or ecosystems due to 
                                transmission projects that are part of 
                                an interconnection-wide plan focused on 
                                facilitating renewable energy 
                                development.</DELETED>
                                <DELETED>    (VI) Training for State 
                                regulatory authority staff and local 
                                workforces relating to renewable energy 
                                generation resources and storage, smart 
                                grid, or new transmission 
                                technologies.</DELETED>
                                <DELETED>    (VII) Grants to 
                                transmission providers for transmission 
                                improvements (including smart grid 
                                investments) that benefit 
                                consumers.</DELETED>
                                <DELETED>    (VIII) Grants to 
                                transmission providers for security 
                                upgrades to the transmission system and 
                                authorized uses under title XIII of the 
                                Energy Independence and Security Act of 
                                2007 (42 U.S.C. 17381 et 
                                seq.).</DELETED>
                                <DELETED>    (IX) Grants to develop 
                                energy storage, reliability, or 
                                distributed renewable generation 
                                projects.</DELETED>
                        <DELETED>    (iv) End-use consumers.--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.</DELETED>
                        <DELETED>    (v) Retrofits and housing 
                        investments.--Energy retrofits and green 
                        investments in subsidized housing based on 
                        standards to ensure that investments are cost-
                        effective, taking into account reductions in 
                        future use of energy and other utilities, and 
                        the extent to which such retrofits and 
                        investments address repair and replacement 
                        needs that may otherwise need to be addressed 
                        with other forms of assistance. As a condition 
                        of such funding, the recipient shall commit to 
                        an additional period of affordability of not 
                        fewer than 15 years, covering all units for 
                        which such grants and loans are used.</DELETED>
                        <DELETED>    (vi) Thermal energy efficiency.--
                        Not less than 2 percent shall be used for 
                        thermal energy efficiency projects that provide 
                        district thermal energy through a network of 
                        pipes from 1 or more central plants to at least 
                        2 or more buildings, combined heat and power 
                        that produces electricity and thermal energy 
                        with a minimum 60 percent overall efficiency on 
                        a lower-heating value basis, or recoverable 
                        waste energy (including mechanical, thermal, or 
                        electrical energy) that, if not for recovery, 
                        would be wasted and may be recovered or 
                        generated through modification of an existing 
                        facility or addition of a new facility. 
                        Allocations may be used for planning, 
                        engineering, and feasibility studies as well as 
                        project construction and development. Such 
                        projects shall--</DELETED>
                                <DELETED>    (I) reduce or avoid 
                                greenhouse gas emissions; and</DELETED>
                                <DELETED>    (II)(aa) produce thermal 
                                energy from renewable energy resources 
                                or natural cooling sources;</DELETED>
                                <DELETED>    (bb) capture and 
                                productively use thermal energy from an 
                                electric generation facility;</DELETED>
                                <DELETED>    (cc) integrate new 
                                electricity generation into an existing 
                                district energy system;</DELETED>
                                <DELETED>    (dd) capture and 
                                productively uses surplus thermal 
                                energy from an industrial or municipal 
                                process (such as wastewater treatment); 
                                or</DELETED>
                                <DELETED>    (ee) distribute and 
                                transfer to buildings the thermal 
                                energy from the energy sources 
                                described in items (aa) through 
                                (dd).</DELETED>
                        <DELETED>    (vii) Smart grid development.--
                        Enabling the development of a Smart Grid (as 
                        described in section 1301 of the Energy 
                        Independence and Security Act of 2007 (42 
                        U.S.C. 17381)) for State, local government, and 
                        other public buildings and facilities, 
                        including integration of renewable energy 
                        resources and distributed generation, demand 
                        response, demand-side management, and systems 
                        analysis.</DELETED>
                <DELETED>    (B) Conditions.--</DELETED>
                        <DELETED>    (i) In general.--The States shall 
                        prioritize expansion of existing energy 
                        efficiency programs approved and overseen by 
                        the State or the appropriate State regulatory 
                        authority.</DELETED>
                        <DELETED>    (ii) Supplementation.--The States 
                        shall 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.</DELETED>
        <DELETED>    (2) Energy conservation and efficiency.--
        Allowances allocated to local governments under subsection 
        (b)(2) shall be used exclusively for energy conservation and 
        efficiency purposes specified under section 543 of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 
        17153).</DELETED>
        <DELETED>    (3) State and mpo grants.--Allocation to the 
        Secretary of Transportation for grants to States and 
        metropolitan planning organizations under subsection (b)(3) 
        shall be used exclusively for the Transportation Greenhouse Gas 
        Reduction program in accordance with sections 831 and 832 of 
        the Clean Air Act.</DELETED>
<DELETED>    (d) Reporting.--Each Indian tribe, State, local 
government, metropolitan planning organization, and renewable 
electricity generating company directly receiving allowances or 
allowance value under this section shall submit to the Administrator a 
report that contains a list of entities receiving allowances or 
allowance value under this section.</DELETED>
<DELETED>    (e) Enforcement.--If the Administrator determines that an 
Indian tribe, State, local government, metropolitan planning 
organization, or renewable electricity generation company is not in 
compliance with this section, the Administrator may withhold up to 
twice the number of allowances or allowance value that the Indian 
tribe, State, local government, metropolitan planning organization, or 
renewable electricity generation company failed to use in accordance 
with the requirements of this section, that such Indian tribe, State, 
local government, metropolitan planning organization, or renewable 
electricity generation companies would otherwise be eligible to receive 
under this section in later years. Allowances withheld pursuant to this 
subsection shall be distributed among the remaining Indian tribes, 
States, local governments, metropolitan planning organizations, and 
renewable electricity generation companies in accordance with 
subsection (b).</DELETED>

<DELETED>SEC. 203. ENERGY EFFICIENCY IN BUILDING CODES.</DELETED>

<DELETED>    The Administrator shall distribute emission allowances 
allocated for the following vintage year pursuant to section 771(a)(9) 
of the Clean Air Act among the States in accordance with the formula 
described in section 202 of this division exclusively for the purpose 
of section 163 of division A.</DELETED>

<DELETED>SEC. 204. BUILDING RETROFIT PROGRAM.</DELETED>

<DELETED>    The Administrator shall distribute emission allowances 
allocated for the following vintage year pursuant to section 771(a)(10) 
of the Clean Air Act among the States in accordance with the formula 
described in section 202 of this division exclusively for the purpose 
of section 164 of division A.</DELETED>

<DELETED>SEC. 205. ENERGY INNOVATION HUBS.</DELETED>

<DELETED>    (a) Purpose.--The Secretary shall carry out a program in 
accordance with this section to establish Energy Innovation Hubs to 
enhance the economic, environmental, and energy security of the United 
States 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.</DELETED>
<DELETED>    (b) Distribution of Allowances to Energy Innovation 
Hubs.--The Secretary shall, in accordance with the requirements of this 
section, distribute to eligible consortia allowances allocated for the 
following vintage year under section 772(a)(11) of the Clean Air 
Act.</DELETED>

<DELETED>SEC. 206. ARPA-E RESEARCH.</DELETED>

<DELETED>    (a) Definitions.--For purposes of this section:</DELETED>
        <DELETED>    (1) Allowance.--The term ``allowance'' means an 
        emission allowance established under section 721 of the Clean 
        Air Act.</DELETED>
        <DELETED>    (2) Director.--The term ``Director'' means 
        Director of the Advanced Research Projects Agency-
        Energy.</DELETED>
<DELETED>    (b) Distribution of Allowances.--The Director, in 
accordance with this section, shall distribute allowances allocated for 
the following vintage year under section 771(a)(12) of the Clean Air 
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 (42 U.S.C. 
16538(c))) through targeted acceleration of--</DELETED>
        <DELETED>    (1) novel early-stage energy research with 
        possible technology applications;</DELETED>
        <DELETED>    (2) development of techniques, processes, and 
        technologies, and related testing and evaluation;</DELETED>
        <DELETED>    (3) development of manufacturing processes for 
        technologies; and</DELETED>
        <DELETED>    (4) demonstration and coordination with 
        nongovernmental entities for commercial applications of 
        technologies and research applications.</DELETED>
<DELETED>    (c) 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.</DELETED>

<DELETED>SEC. 207. INTERNATIONAL CLEAN ENERGY DEPLOYMENT 
              PROGRAM.</DELETED>

<DELETED>    The Secretary of State shall distribute emission 
allowances allocated for the following vintage year pursuant to section 
771(a)(13) of the Clean Air Act exclusively for the purpose of section 
323 of division A.</DELETED>

<DELETED>SEC. 208. INTERNATIONAL CLIMATE CHANGE ADAPTATION AND GLOBAL 
              SECURITY.</DELETED>

<DELETED>    The Secretary of State shall distribute emission 
allowances allocated for the following vintage year pursuant to section 
771(a)(14) of the Clean Air Act exclusively for the purpose of section 
324 of division A.</DELETED>

<DELETED>SEC. 209. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER 
              TRAINING.</DELETED>

<DELETED>    (a) Establishment of Fund.--There is established in the 
Treasury a separate account, to be known as the ``Energy Efficiency and 
Renewable Energy Worker Training Fund''.</DELETED>
<DELETED>    (b) Auction Proceeds.--The Administrator shall deposit the 
proceeds of the auction conducted pursuant to section 771(b)(5) of the 
Clean Air Act in the Energy Efficiency and Renewable Energy Worker 
Training Fund.</DELETED>
<DELETED>    (c) Availability of Amounts.--The Secretary of Energy 
shall use the amounts deposited in the Energy Efficiency and Renewable 
Energy Worker Training Fund under subsection (b) to carry out section 
171(e)(8) of the Workforce Investment Act of 1998 (29 U.S.C. 
2916(e)(8)) without further appropriation or fiscal year 
limitation.</DELETED>

<DELETED>SEC. 210. WORKER TRANSITION.</DELETED>

<DELETED>    (a) Establishment of Fund.--There is established in the 
Treasury a separate account, to be known as the ``Worker Transition 
Fund''.</DELETED>
<DELETED>    (b) Auction Proceeds.--The Administrator shall deposit the 
proceeds of the auction conducted pursuant to section 771(b)(6) of the 
Clean Air Act in the Worker Transition Fund.</DELETED>
<DELETED>    (c) Availability of Amounts.--The amounts deposited in the 
Worker Transition Fund shall be used to carry out part 2 of subtitle A 
of title III of division A.</DELETED>

<DELETED>SEC. 211. STATE PROGRAMS FOR GREENHOUSE GAS REDUCTION AND 
              CLIMATE ADAPTATION.</DELETED>

<DELETED>    (a) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Alaska native village.--The term ``Alaska 
        Native village'' means a federally recognized Indian tribe 
        located in the State of Alaska and listed in the Bureau of 
        Indian Affairs publication entitled ``Indian Entities 
        Recognized and Eligible to Receive Services from the United 
        States Bureau of Indian Affairs'' (74 Fed. Reg. 40218 (Aug. 11, 
        2009)).</DELETED>
        <DELETED>    (2) Allowance.--The term ``allowance'' means an 
        emission allowance established under section 721 of the Clean 
        Air Act.</DELETED>
        <DELETED>    (3) 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).</DELETED>
        <DELETED>    (4) SCCR account.--The term ``SCCR Account'' means 
        a State Climate Change Response Account established under 
        subsection (d)(5).</DELETED>
        <DELETED>    (5) Vintage year.--The term ``vintage year'' has 
        the meaning given that term in section 700 of the Clean Air 
        Act.</DELETED>
<DELETED>    (b) Regulations; Coordination.--</DELETED>
        <DELETED>    (1) Regulations.--Not later than 2 years after the 
        date of enactment of this Act, the Administrator, or the heads 
        of such Federal agencies as the President may designate, shall 
        promulgate regulations to implement this section.</DELETED>
        <DELETED>    (2) Coordination.--If the President designates 
        more than 1 Federal agency to implement this section, the 
        President shall require such agencies to establish a memorandum 
        of understanding providing for coordination of rulemaking and 
        other implementing activities, in accordance with this 
        section.</DELETED>
<DELETED>    (c) State Climate Change Response and Transportation 
Fund.--</DELETED>
        <DELETED>    (1) Establishment of fund.--There is established 
        in the Treasury a separate account, to be known as the ``State 
        Climate Change Response and Transportation Fund''.</DELETED>
        <DELETED>    (2) Auction proceeds deposited to fund.--The 
        Administrator shall deposit the proceeds of the auction 
        conducted pursuant to section 771(b)(7) of the Clean Air Act in 
        the State Climate Change Response and Transportation 
        Fund.</DELETED>
        <DELETED>    (3) Availability of amounts.--All amounts 
        deposited in the State Climate Change Response and 
        Transportation Fund shall be available, without further 
        appropriation or fiscal year limitation, to carry out this 
        section.</DELETED>
<DELETED>    (d) Distribution of Allowance Proceeds.--</DELETED>
        <DELETED>    (1) In general.--The Administrator shall 
        distribute, in accordance with this section, proceeds of the 
        auction of allowances allocated for the following vintage year 
        that have been deposited in the State Climate Change Response 
        and Transportation Fund pursuant to subsection 
        (c)(2).</DELETED>
        <DELETED>    (2) Reservation and allocation.--The Administrator 
        shall--</DELETED>
                <DELETED>    (A) reserve 10 percent of the proceeds of 
                such allowances described in paragraph (1) for 
                distribution among coastal and Great Lakes States in 
                accordance with subsection (f);</DELETED>
                <DELETED>    (B) after consultation with the Secretary 
                of the Interior, reserve at least 1 percent of the 
                proceeds of those allowances for distribution to Indian 
                tribes in accordance with subsection (e); and</DELETED>
                <DELETED>    (C) distribute the remaining proceeds of 
                those allowances to fund State and local government 
                programs for greenhouse gas reduction and climate 
                adaptation, with such remaining proceeds divided 
                equally between--</DELETED>
                        <DELETED>    (i) funding of transportation 
                        grant programs under subsection (g); 
                        and</DELETED>
                        <DELETED>    (ii) funding of other programs 
                        administered by the States, with the proceeds 
                        to be deposited in and administered through the 
                        State Climate Change Response Accounts 
                        established pursuant to paragraph 
                        (5).</DELETED>
        <DELETED>    (3) Formula for distribution.--The Administrator 
        shall distribute the proceeds to be allocated pursuant to 
        paragraph (2)(C)(ii) ratably among the States based on the 
        product obtained by multiplying--</DELETED>
                <DELETED>    (A) the population of a State; 
                and</DELETED>
                <DELETED>    (B) the allocation factor for the State 
                determined under paragraph (4).</DELETED>
        <DELETED>    (4) State allocation factors.--</DELETED>
                <DELETED>    (A) In general.--Except as provided in 
                subparagraph (B), the allocation factor for a State 
                shall be the quotient obtained by dividing--</DELETED>
                        <DELETED>    (i) the per capita income of all 
                        individuals in the United States; by</DELETED>
                        <DELETED>    (ii) the per capita income of all 
                        individuals in the State.</DELETED>
                <DELETED>    (B) Limitation.--</DELETED>
                        <DELETED>    (i) Maximum.--If the allocation 
                        factor for a State as calculated under 
                        subparagraph (A) would exceed 1.2, the 
                        allocation factor for such State shall be 
                        1.2.</DELETED>
                        <DELETED>    (ii) Minimum.--If the allocation 
                        factor for a State as calculated under 
                        subparagraph (A) would be less than 0.8, the 
                        allocation factor for such State shall be 
                        0.8.</DELETED>
                <DELETED>    (C) Per capita income.--For purposes of 
                this paragraph, per capita income shall be--</DELETED>
                        <DELETED>    (i) determined at 2-year 
                        intervals; and</DELETED>
                        <DELETED>    (ii) subject to subparagraph (D), 
                        equal to the average of the annual per capita 
                        incomes for the most recent period of 3 
                        consecutive years for which satisfactory data 
                        are available from the Department of Commerce 
                        at the time such determination is 
                        made.</DELETED>
                <DELETED>    (D) Revenue directly resulting from a 
                presidentially declared major disaster.--</DELETED>
                        <DELETED>    (i) In general.--For purposes of 
                        this paragraph, per capita income from 1 or 
                        more of the sources described in clause (ii) 
                        shall be reduced or excluded if the Secretary 
                        of Commerce--</DELETED>
                                <DELETED>    (I) (in consultation with 
                                the Administrator and the heads of the 
                                departments or agencies involved) 
                                determines that the income accrues to 
                                persons as the result of a major 
                                disaster designated by the President 
                                under the Robert T. Stafford Disaster 
                                Relief and Emergency Assistance Act (42 
                                U.S.C. 5121 et seq.); and</DELETED>
                                <DELETED>    (II) finds that the 
                                inclusion of 1 or more of the income 
                                sources, in whole or in part, results 
                                in a transitory, rather than a 
                                sustainable, increase in a State's per 
                                capita income level relative to the 
                                national average.</DELETED>
                        <DELETED>    (ii) Sources of income.--The 
                        sources of income referred to in clause (i) are 
                        the following:</DELETED>
                                <DELETED>    (I) Property and casualty 
                                insurance (including homeowners and 
                                renters insurance).</DELETED>
                                <DELETED>    (II) The National Flood 
                                Insurance Program of the Federal 
                                Emergency Management Agency.</DELETED>
                                <DELETED>    (III) The Individual and 
                                Family Grants Program of the Federal 
                                Emergency Management Agency.</DELETED>
                                <DELETED>    (IV) The Disaster Housing 
                                Program of the Federal Emergency 
                                Management Agency.</DELETED>
                                <DELETED>    (V) The Community 
                                Development Block Grant Program of the 
                                Department of Housing and Urban 
                                Development.</DELETED>
                                <DELETED>    (VI) The Disaster 
                                Unemployment Assistance Program of the 
                                Department of Labor.</DELETED>
                                <DELETED>    (VII) Any other source 
                                determined appropriate by the 
                                Administrator.</DELETED>
        <DELETED>    (5) State climate change response accounts.--Each 
        State shall establish a State Climate Change Response Account, 
        to be administered pursuant to State law, to receive and 
        distribute the amounts provided under paragraph (2)(C)(ii). 
        State regulations and implementing procedures relating to such 
        accounts shall require compliance with the provisions of this 
        section and all other applicable provisions of Federal 
        law.</DELETED>
<DELETED>    (e) Distribution to Indian Tribes.--</DELETED>
        <DELETED>    (1) In general.--The Administrator, or the heads 
        of such Federal agencies as the President may designate, shall 
        promulgate regulations establishing a program to distribute 
        allowance proceeds to Indian tribes, in accordance with the 
        requirements of this section, of which not less than 18 percent 
        shall be allocated to Alaska Native Villages for each 
        year.</DELETED>
        <DELETED>    (2) Use of proceeds.--Allowance proceeds 
        distributed to Indian tribes shall be used exclusively--
        </DELETED>
                <DELETED>    (A) in accordance with subsection (h); 
                and</DELETED>
                <DELETED>    (B) in compliance with any approved tribal 
                climate change response plan.</DELETED>
<DELETED>    (f) Distribution to Coastal and Great Lakes States.--The 
Administrator, or the heads of such other Federal agencies as the 
President may designate, shall distribute proceeds of emission 
allowances for coastal State economic protection each fiscal year, in 
accordance with section 384 of division A.</DELETED>
<DELETED>    (g) Distribution of Transportation Grants.--</DELETED>
        <DELETED>    (1) Distribution of transportation grants.--
        </DELETED>
                <DELETED>    (A) In general.--The Secretary of 
                Transportation, in consultation with the Administrator, 
                shall distribute the amounts allocated for 
                transportation grants each fiscal year in accordance 
                with subsection (d)(2)(C)(i) as grants to public 
                transportation agencies (including designated 
                recipients (as defined in section 5307(a) and section 
                5340 of title 49, United States Code)) and recipients 
                and sub-recipients (as defined in section 5311(a) of 
                title 49, United States Code).</DELETED>
                <DELETED>    (B) Formula.--In providing grants under 
                this subsection, the Secretary shall distribute--
                </DELETED>
                        <DELETED>    (i) 80 percent of the funds in 
                        accordance with the formula and conditions 
                        governing grants under section 5307 of title 
                        49, United States Code;</DELETED>
                        <DELETED>    (ii) 10 percent of the funds in 
                        accordance with the formula and conditions 
                        governing grants under section 5311 of title 
                        49, United States Code; and</DELETED>
                        <DELETED>    (iii) 10 percent of the funds in 
                        accordance with the formula and conditions 
                        governing grants under section 5340 of title 
                        49, United States Code.</DELETED>
<DELETED>    (h) Uses of Allowance Proceeds Deposited to Sccr 
Accounts.--</DELETED>
        <DELETED>    (1) In general.--States shall use allowance 
        proceeds deposited to SCCR Accounts under subsection 
        (d)(2)(C)(ii) exclusively for the development and 
        implementation of projects, programs, or measures as described 
        in this section to address climate change by reducing emissions 
        of greenhouse gases or by building resilience to the impacts of 
        climate change, including impacts such as--</DELETED>
                <DELETED>    (A) extreme weather events, such as 
                flooding and tropical cyclones;</DELETED>
                <DELETED>    (B) more frequent heavy precipitation 
                events;</DELETED>
                <DELETED>    (C) water scarcity and adverse impacts on 
                water quality;</DELETED>
                <DELETED>    (D) stronger and longer heat 
                waves;</DELETED>
                <DELETED>    (E) more frequent and severe 
                droughts;</DELETED>
                <DELETED>    (F) rises in sea level;</DELETED>
                <DELETED>    (G) ecosystem disruption;</DELETED>
                <DELETED>    (H) increased wildfire risk;</DELETED>
                <DELETED>    (I) increased air pollution;</DELETED>
                <DELETED>    (J) effects on public health;</DELETED>
                <DELETED>    (K) impaired transportation systems and 
                infrastructure; and</DELETED>
                <DELETED>    (L) reduced productivity of agricultural 
                or ranching operations.</DELETED>
        <DELETED>    (2) Requirements.--The allowance proceeds received 
        by each SCCR Account for each fiscal year shall be used by the 
        State exclusively to fund the following categories of 
        activities, in compliance with the provisions of approved State 
        climate change response plans:</DELETED>
                <DELETED>    (A) Grants to fund water system mitigation 
                and adaptation partnerships in accordance with section 
                381 of division A.</DELETED>
                <DELETED>    (B) Flood control, protection, prevention 
                and response programs and projects in accordance with 
                section 382 of division A.</DELETED>
                <DELETED>    (C) Programs or projects implemented by 
                State agencies as owners or operators of water systems 
                to address any ongoing or forecasted climate-related 
                impact on water quality, water supply or reliability, 
                for 1 or more of the purposes listed in section 381(d) 
                of division A.</DELETED>
                <DELETED>    (D) Programs or projects to reduce 
                greenhouse gas emissions through recycling or for 
                increasing recycling rates in accordance with section 
                154 of division A.</DELETED>
                <DELETED>    (E) Programs and projects addressing 
                adverse impacts of climate change affecting agriculture 
                or ranching activities.</DELETED>
                <DELETED>    (F) Programs or projects addressing air 
                pollution or air quality impacts caused or exacerbated 
                by climate change.</DELETED>
                <DELETED>    (G) Programs or projects to reduce 
                greenhouse gas emissions that result in a decrease in 
                emissions of other air pollutants.</DELETED>
        <DELETED>    (3) Distribution for local governments.--Not less 
        than 12.5 percent of the proceeds deposited to SCCR Accounts 
        shall be distributed by each State to units of local government 
        within such State, to be used exclusively to support the 
        categories of climate change response efforts listed in 
        paragraph (2).</DELETED>
        <DELETED>    (4) Vulnerable populations.--In deploying 
        allowance proceeds under this section, States and units of 
        local government shall ensure that programs and projects are 
        funded responding to impacts affecting socially and 
        economically vulnerable populations, including--</DELETED>
                <DELETED>    (A) persons of low-income (as defined in 
                title I of the Housing and Community Development Act of 
                1974, (42 U.S.C. 5301 et seq.));</DELETED>
                <DELETED>    (B) members of socially disadvantaged 
                groups (as defined in section 2501(e)(2) of the Food, 
                Agriculture, Conservation, and Trade Act of 1990 (7 
                U.S.C. 2279(e)(2)));</DELETED>
                <DELETED>    (C) individuals over 65 years of age and 
                under 5 years of age; and</DELETED>
                <DELETED>    (D) individuals with 
                disabilities.</DELETED>
        <DELETED>    (5) Intent of congress.--It is the intent of the 
        Congress that allowances distributed to carry out this section 
        should be used to supplement, and not replace, existing sources 
        of funding used to address and build resilience to the impacts 
        of climate change.</DELETED>
<DELETED>    (i) State and Tribal Climate Change Response Plans.--
</DELETED>
        <DELETED>    (1) In general.--The regulations promulgated 
        pursuant to subsection (b) shall include requirements for 
        submission and approval of State and tribal climate change 
        response plans under this section. Beginning with vintage year 
        2012, distribution of allowance proceeds to a State pursuant to 
        this section shall be contingent on approval of a State climate 
        change response plan for such State that meets the requirements 
        of such regulations.</DELETED>
        <DELETED>    (2) Requirements.--Regulations promulgated under 
        this section shall require, at minimum, that State climate 
        change response plans--</DELETED>
                <DELETED>    (A) assess and prioritize the 
                vulnerability of a State to a broad range of impacts of 
                climate change, based on the best available 
                science;</DELETED>
                <DELETED>    (B) identify and prioritize specific cost-
                effective projects, programs, and measures to mitigate 
                and build resilience to current and predicted impacts 
                of climate change, including projects, programs, and 
                measures within each of the categories of activities 
                listed in subsection (h)(2);</DELETED>
                <DELETED>    (C) include an assessment of potential for 
                carbon reduction through changes to land management 
                policies (including enhancement or protection of forest 
                carbon sinks);</DELETED>
                <DELETED>    (D) ensure that the State fully considers 
                and undertakes, to the maximum extent practicable, 
                initiatives that--</DELETED>
                        <DELETED>    (i) protect or enhance natural 
                        ecosystem functions, including protection, 
                        maintenance, or restoration of natural 
                        infrastructure such as wetlands, reefs, and 
                        barrier islands to buffer communities from 
                        floodwaters or storms, watershed protection to 
                        maintain water quality and groundwater 
                        recharge, or floodplain restoration to improve 
                        natural flood control capacity;</DELETED>
                        <DELETED>    (ii) where appropriate, use 
                        nonstructural approaches, including practices 
                        that use, enhance, or mimic the natural 
                        hydrologic cycle processes of infiltration, 
                        evapotranspiration, and use; or</DELETED>
                        <DELETED>    (iii) where appropriate, protect 
                        forested land via scientifically based 
                        ecological restoration practices, including by 
                        reducing fuel loads, restoring forest 
                        diversity, and conducting research on pest 
                        mitigation;</DELETED>
                <DELETED>    (E) give consideration to impacts 
                affecting socially and economically vulnerable 
                populations, including--</DELETED>
                        <DELETED>    (i) persons of low-income (as 
                        defined in title I of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. sec. 5301 et 
                        seq.));</DELETED>
                        <DELETED>    (ii) members of socially 
                        disadvantaged groups (as defined in section 
                        2501(e)(2) of the Food, Agriculture, 
                        Conservation, and Trade Act of 1990 (7 U.S.C. 
                        2279(e)(2)));</DELETED>
                        <DELETED>    (iii) persons over 65 years of age 
                        and under 5 years of age; and</DELETED>
                        <DELETED>    (iv) persons with 
                        disabilities;</DELETED>
                <DELETED>    (F) use pre-disaster mitigation, emergency 
                response, and public insurance programs to mitigate the 
                impacts of climate change;</DELETED>
                <DELETED>    (G) be consistent with Federal 
                conservation and environmental laws and, to the maximum 
                extent practicable, avoid environmental degradation; 
                and</DELETED>
                <DELETED>    (H) be revised and resubmitted for 
                approval not less frequently than every 5 
                years.</DELETED>
        <DELETED>    (3) Tribal climate change response plans.--
        Requirements for tribal climate change response plans should 
        include the requirements listed in subparagraphs (A) through 
        (H) of paragraph (2), as appropriate, but may vary from those 
        of State climate change response plans to the extent necessary 
        to account for the special circumstances of Indian 
        tribes.</DELETED>
        <DELETED>    (4) Coordination with prior planning efforts.--In 
        implementing this subsection, the Administrator, or the heads 
        of such Federal agencies as the President may designate, 
        shall--</DELETED>
                <DELETED>    (A) draw upon lessons learned and best 
                practices from pre-existing State and tribal climate 
                change response planning efforts;</DELETED>
                <DELETED>    (B) seek to avoid duplication of such 
                efforts; and</DELETED>
                <DELETED>    (C) ensure that the plans developed under 
                this section are developed in coordination with State 
                natural resources adaptation plans developed under 
                section 369 of division A.</DELETED>
<DELETED>    (j) Reporting.--Not later than 1 year after each date of 
receipt of allowance proceeds under this section, and biennially 
thereafter until the value of any allowance proceeds received under 
this section has been fully expended, each State or Indian tribe 
receiving allowance proceeds under this section shall submit to the 
Administrator, or the heads of such Federal agencies as the President 
may designate, a report that--</DELETED>
        <DELETED>    (1) provides a full accounting for the use by the 
        State or Indian tribe of allowance proceeds distributed under 
        this section, including a description of the projects, 
        programs, or measures supported using such proceeds;</DELETED>
        <DELETED>    (2) includes a report prepared by an independent 
        third party, in accordance with such regulations as are 
        promulgated by the Administrator or the heads of such other 
        Federal agencies as the President may designate, evaluating the 
        performance of the projects, programs, or measures supported 
        under this section; and</DELETED>
        <DELETED>    (3) identifies any use by the State or Indian 
        tribe of allowance proceeds distributed under this section for 
        the reduction of flood and storm damage and the effects of 
        climate change on water and flood protection 
        infrastructure.</DELETED>
<DELETED>    (k) Auditing.--The Administrator, or the heads of such 
Federal agencies as the President may designate, shall have authority 
to conduct such audits or other review of States implementation of and 
compliance with this section as such Federal officials may in their 
discretion determine to be necessary or appropriate.</DELETED>
<DELETED>    (l) Enforcement.--If the Administrator, or the heads of 
such Federal agencies as the President may designate, determine that a 
State or Indian tribe is not in compliance with this section, the 
Administrator or such other agency head may withhold a quantity of the 
allowance proceeds equal to up to twice the quantity of allowance 
proceeds that the State or Indian tribe failed to use in accordance 
with the requirements of this section, that such State or Indian tribe 
would otherwise be eligible to receive under this section in 1 or more 
later years. Allowance proceeds withheld pursuant to this subsection 
shall be distributed among the remaining States or Indian tribes 
ratably in accordance with--</DELETED>
        <DELETED>    (1) the formula under subsection (d), in the case 
        of allowances withheld from a State; or</DELETED>
        <DELETED>    (2) in accordance with subsection (e), in the case 
        of allowance proceeds withheld from an Indian tribe.</DELETED>

<DELETED>SEC. 212. CLIMATE CHANGE HEALTH PROTECTION AND PROMOTION 
              FUND.</DELETED>

<DELETED>    (a) Establishment of Fund.--There is established in the 
Treasury a separate account, to be known as the ``Climate Change Health 
Protection and Promotion Fund''.</DELETED>
<DELETED>    (b) Auction Proceeds.--The Administrator shall deposit the 
proceeds of the auction pursuant to section 771(b)(8) of the Clean Air 
Act in the Climate Change Health Protection and Promotion 
Fund.</DELETED>
<DELETED>    (c) Availability of Amounts.--All amounts deposited in the 
Climate Change Health Protection and Promotion Fund shall be available 
to the Secretary of Health and Human Services to carry out subpart B of 
subtitle C of title III of division A, without further appropriation or 
fiscal year limitation.</DELETED>
<DELETED>    (d) Distribution of Funds by HHS.--In carrying out subpart 
B of subtitle C of title III of division A, the Secretary of Health and 
Human Services may make funds deposited in the Climate Change Health 
Protection and Promotion Fund available to--</DELETED>
        <DELETED>    (1) other departments, agencies, and offices of 
        the Federal Government;</DELETED>
        <DELETED>    (2) foreign, State, tribal, and local governments; 
        and</DELETED>
        <DELETED>    (3) such other entities as the Secretary 
        determines to be appropriate.</DELETED>
<DELETED>    (e) Supplement, Not Replace.--It is the intent of Congress 
that funds made available to carry out subpart B of subtitle C of title 
III of division A should be used to supplement, and not replace, 
existing sources of funding for public health.</DELETED>

<DELETED>SEC. 213. CLIMATE CHANGE SAFEGUARDS FOR NATURAL RESOURCES 
              CONSERVATION.</DELETED>

<DELETED>    (a) Establishment of Fund.--There is established in the 
Treasury a separate account, to be known as the ``Natural Resources 
Climate Change Adaptation Account''.</DELETED>
<DELETED>    (b) Auction Proceeds.--The Administrator shall deposit the 
proceeds of the auction conducted pursuant to section 771(b)(9) of the 
Clean Air Act in the Natural Resources Climate Change Adaptation 
Account.</DELETED>
<DELETED>    (c) Availability of Amounts.--All amounts deposited in the 
Natural Resources Climate Change Adaptation Account shall be available 
without further appropriation or fiscal year limitation solely for the 
purposes of section 370 of division A.</DELETED>

<DELETED>SEC. 214. NUCLEAR WORKER TRAINING.</DELETED>

<DELETED>    (a) Establishment of Fund.--There is established in the 
Treasury a separate account, to be known as the ``Nuclear Worker 
Training Fund''.</DELETED>
<DELETED>    (b) Auction Proceeds.--The Administrator shall deposit the 
proceeds of the auction conducted pursuant to section 771(b)(10) of the 
Clean Air Act in the Nuclear Worker Training Fund.</DELETED>
<DELETED>    (c) Availability of Amounts.--All amounts deposited in the 
Nuclear Worker Training Fund shall be available without further 
appropriation or fiscal year limitation solely for the purpose of 
carrying out section 132 of division A.</DELETED>

<DELETED>SEC. 215. SUPPLEMENTAL AGRICULTURE, RENEWABLE ENERGY, AND 
              FORESTRY.</DELETED>

<DELETED>    (a) Establishment of Fund.--There is established in the 
Treasury a separate account, to be known as the ``Supplemental 
Agriculture, Renewable Energy, and Forestry Fund''.</DELETED>
<DELETED>    (b) Auction Proceeds.--The Administrator shall deposit the 
proceeds of the auction conducted pursuant to section 771(b)(11) of the 
Clean Air Act in the Supplemental Agriculture, Renewable Energy, and 
Forestry Fund.</DELETED>
<DELETED>    (c) Availability of Amounts.--All amounts deposited in the 
Supplemental Agriculture, Renewable Energy, and Forestry Fund shall be 
available without further appropriation or fiscal year limitation 
solely for the purpose of carrying out section 155 of division 
A.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clean Energy Jobs 
and American Power Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Economywide emission reduction goals.
Sec. 4. Definitions.

  DIVISION A--AUTHORIZATIONS FOR POLLUTION REDUCTION, TRANSITION, AND 
                               ADAPTATION

Sec. 101. Structure of Act.
Sec. 102. Requirements relating to Federal advisory committees.
Sec. 103. Voluntary renewable energy markets.

               TITLE I--GREENHOUSE GAS REDUCTION PROGRAMS

                    Subtitle A--Clean Transportation

Sec. 111. Emission standards.

                        ``PART B--Mobile Sources

        ``Sec. 821. Greenhouse gas emission standards for mobile 
                            sources.
Sec. 112. Greenhouse gas emission reductions through transportation 
                            efficiency.

                   ``PART C--Transportation Emissions

        ``Sec. 831. Greenhouse gas emission reductions through 
                            transportation efficiency.
Sec. 113. Transportation greenhouse gas emission reduction program 
                            grants.
        ``Sec. 832. Transportation greenhouse gas emission reduction 
                            program grants.
Sec. 114. Smartway transportation efficiency program.
        ``Sec. 822. SmartWay transportation efficiency program.

              Subtitle B--Carbon Capture and Sequestration

Sec. 121. National strategy.
Sec. 122. Regulations for geological sequestration sites.
        ``Sec. 813. Geological storage sites.
Sec. 123. Studies and reports.
Sec. 124. Performance standards for new coal-fueled power plants.
        ``Sec. 812. Performance standards for new coal-fired power 
                            plants.
Sec. 125. Carbon capture and sequestration demonstration and early 
                            deployment program.

             Subtitle C--Nuclear and Advanced Technologies

Sec. 131. Findings and policy.
Sec. 132. Nuclear worker training.
Sec. 133. Nuclear safety and waste management programs.

                      Subtitle D--Water Efficiency

Sec. 141. WaterSense.
Sec. 142. Federal procurement of water-efficient products.
Sec. 143. State residential water efficiency and conservation 
                            incentives program.

                       Subtitle E--Miscellaneous

Sec. 151. Office of Consumer Advocacy.
Sec. 152. Clean technology business competition grant program.
Sec. 153. Product carbon disclosure program.
Sec. 154. State recycling programs.
Sec. 155. Supplemental agriculture, abandoned mine land, and forestry 
                            greenhouse gas reduction and renewable 
                            energy program.
Sec. 156. Economic Development Climate Change Fund.
        ``Sec. 219. Economic Development Climate Change Fund.
Sec. 157. Study of risk-based programs addressing vulnerable areas.
Sec. 158. Efficient Buildings Program.

           Subtitle F--Energy Efficiency and Renewable Energy

Sec. 161. Renewable energy.
Sec. 162. Advanced biofuels.
Sec. 163. Energy efficiency in building codes.
Sec. 164. Retrofit for energy and environmental performance.
Sec. 165. Certified stoves program.
Sec. 166. Renewable fuel standard.
Sec. 167. Tree planting programs.

  Subtitle G--Emission Reductions From Public Transportation Vehicles

Sec. 171. Short title.
Sec. 172. State fuel economy regulation for taxicabs.
Sec. 173. State regulation of motor vehicle emissions for taxicabs.

                Subtitle H--Clean Energy and Natural Gas

Sec. 181. Clean Energy and Accelerated Emission Reduction Program.
Sec. 182. Advanced natural gas technologies.

                           TITLE II--RESEARCH

                      Subtitle A--Energy Research

Sec. 201. Advanced energy research.

   Subtitle B--Drinking Water Adaptation, Technology, Education, and 
                                Research

Sec. 211. Effects of climate change on drinking water utilities.

                  TITLE III--TRANSITION AND ADAPTATION

              Subtitle A--Green Jobs and Worker Transition

                           PART 1--Green Jobs

Sec. 301. Clean energy curriculum development grants.
Sec. 302. Development of Information and Resources clearinghouse for 
                            vocational education and job training in 
                            renewable energy sectors.
Sec. 303. Green construction careers demonstration project.

          PART 2--Climate Change Worker Adjustment Assistance

Sec. 311. Petitions, eligibility requirements, and determinations.
Sec. 312. Program benefits.
Sec. 313. General provisions.

           Subtitle B--International Climate Change Programs

Sec. 321. Strategic Interagency Board on International Climate 
                            Investment.
Sec. 322. Emission reductions from reduced deforestation.

               ``PART E--Supplemental Emission Reductions

        ``Sec. 751. Definitions.
        ``Sec. 752. Purposes.
        ``Sec. 753. Emission reductions from reduced deforestation.
Sec. 323. International Clean Energy Deployment Program.
Sec. 324. International climate change adaptation and global security 
                            program.
Sec. 325. Evaluation and reports.
Sec. 326. Report on climate actions of major economies.

                 Subtitle C--Adapting to Climate Change

                      PART 1--Domestic Adaptation

         subpart a--national climate change adaptation program

Sec. 341. National Climate Change Adaptation Program.
Sec. 342. Climate services.

              subpart b--public health and climate change

Sec. 351. Sense of Congress on public health and climate change.
Sec. 352. Relationship to other laws.
Sec. 353. National strategic action plan.
Sec. 354. Advisory board.
Sec. 355. Reports.
Sec. 356. Definitions.

subpart c--climate change safeguards for natural resources conservation

Sec. 361. Purposes.
Sec. 362. Natural resources climate change adaptation policy.
Sec. 363. Definitions.
Sec. 364. Council on Environmental Quality.
Sec. 365. Natural Resources Climate Change Adaptation Panel.
Sec. 366. Natural Resources Climate Change Adaptation Strategy.
Sec. 367. Natural resources adaptation science and information.
Sec. 368. Federal natural resource agency adaptation plans.
Sec. 369. State natural resources adaptation plans.
Sec. 370. Natural Resources Climate Change Adaptation Account.
Sec. 371. National Fish and Wildlife Habitat and Corridors Information 
                            Program.
Sec. 372. Additional provisions regarding Indian tribes.

        subpart d--additional climate change adaptation programs

Sec. 381. Water system mitigation and adaptation partnerships.
Sec. 382. Flood control, protection, prevention, and response.
Sec. 383. Wildfire.
Sec. 384. Coastal and Great Lakes State adaptation program.

             DIVISION B--POLLUTION REDUCTION AND INVESTMENT

               TITLE I--REDUCING GLOBAL WARMING POLLUTION

             Subtitle A--Reducing Global Warming Pollution

Sec. 101. Reducing global warming pollution.

 ``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION AND INVESTMENT PROGRAM

     ``PART A--Global Warming Pollution Reduction Goals and Targets

        ``Sec. 701. Findings.
        ``Sec. 702. Economywide reduction goals.
        ``Sec. 703. Reduction targets for specified sources.
        ``Sec. 704. Supplemental pollution reductions.
        ``Sec. 705. Review and program recommendations.
        ``Sec. 706. National Academy review.
        ``Sec. 707. Presidential response and recommendations.
        ``Sec. 708. Consultation with States.

       ``PART B--Designation and Registration of Greenhouse Gases

        ``Sec. 711. Designation of greenhouse gases.
        ``Sec. 712. Carbon dioxide equivalent value of greenhouse 
                            gases.
        ``Sec. 713. Greenhouse gas registry.
        ``Sec. 714. Perfluorocarbon and other nonhydrofluorocarbon 
                            fluorinated substance production 
                            regulation.

                        ``PART C--Program Rules

        ``Sec. 721. Emission allowances.
        ``Sec. 722. Prohibition of excess emissions.
        ``Sec. 723. Penalty for noncompliance.
        ``Sec. 724. Trading.
        ``Sec. 725. Banking and borrowing.
        ``Sec. 726. Market Stability Reserve.
        ``Sec. 727. Permits.
        ``Sec. 728. International emission allowances.

                           ``PART D--Offsets

        ``Sec. 731. Offsets Integrity Advisory Board.
        ``Sec. 732. Establishment of offsets program.
        ``Sec. 733. Eligible project types.
        ``Sec. 734. Requirements for offset projects.
        ``Sec. 735. Approval of offset projects.
        ``Sec. 736. Verification of offset projects.
        ``Sec. 737. Issuance of offset credits.
        ``Sec. 738. Audits.
        ``Sec. 739. Program review and revision.
        ``Sec. 740. Early offset supply.
        ``Sec. 741. Environmental considerations.
        ``Sec. 742. Trading.
        ``Sec. 743. Office of Offsets Integrity.
        ``Sec. 744. International offset credits.
Sec. 102. Definitions.
        ``Sec. 700. Definitions.
Sec. 103. Offset reporting requirements.

                 Subtitle B--Disposition of Allowances

Sec. 111. Disposition of allowances for global warming pollution 
                            reduction program.

                  ``PART G--Disposition of Allowances

        ``Sec. 771. Allocation of emission allowances.
        ``Sec. 772. Electricity consumers.
        ``Sec. 773. Natural gas consumers.
        ``Sec. 774. Home heating oil and propane consumers.
        ``Sec. 775. Domestic fuel production.
        ``Sec. 776. Consumer protection.
        ``Sec. 777. Exchange for State-issued allowances.
        ``Sec. 778. Auction procedures.
        ``Sec. 779. Auctioning allowances for other entities.
        ``Sec. 780. Commercial deployment of carbon capture and 
                            permanent sequestration technologies.
        ``Sec. 781. Oversight of allocations.
        ``Sec. 782. Early action recognition.
        ``Sec. 783. Establishment of Deficit Reduction Fund.

            Subtitle C--Additional Greenhouse Gas Standards

Sec. 121. Greenhouse gas standards.

           ``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

        ``Sec. 801. Definitions.

                 ``PART A--Stationary Source Standards

        ``Sec. 811. Standards of performance.
Sec. 122. HFC regulation.
        ``Sec. 619. Hydrofluorocarbons (HFCs).
Sec. 123. Black carbon.

                         ``PART E--Black Carbon

        ``Sec. 851. Black carbon.
Sec. 124. States.
Sec. 125. State programs.

                        ``PART F--Miscellaneous

        ``Sec. 861. State programs.
        ``Sec. 862. Grants for support of air pollution control 
                            programs.
        ``Sec. 863. Reducing acid rain and mercury pollution.
Sec. 126. Enforcement.
Sec. 127. Forestry sector greenhouse gas accounting.
Sec. 128. Conforming amendments.
        ``Sec. 508. Emissions of greenhouse gases.
Sec. 129. Davis-Bacon compliance.

                  Subtitle D--Carbon Market Assurance

Sec. 131. Carbon market assurance.

      Subtitle E--Ensuring Real Reductions in Industrial Emissions

Sec. 141. Ensuring real reductions in industrial emissions.

       ``PART F--Ensuring Real Reductions in Industrial Emissions

        ``Sec. 761. Purposes.
        ``Sec. 762. Definitions.
        ``Sec. 763. Eligible industrial sectors.
        ``Sec. 764. Distribution of emission allowance rebates.
        ``Sec. 765. International trade.

                     TITLE II--PROGRAM ALLOCATIONS

Sec. 201. Distribution of allowances for investment in clean vehicles.
        ``Sec. 795A. Black carbon reduction grant program.
Sec. 202. State and local investment in energy efficiency and renewable 
                            energy.
Sec. 203. Energy efficiency in building codes.
Sec. 204. Energy Innovation Hubs.
Sec. 205. ARPA-E research.
Sec. 206. International clean energy deployment program.
Sec. 207. International climate change adaptation and global security.
Sec. 208. Energy efficiency and renewable energy worker training.
Sec. 209. Worker transition.
Sec. 210. State programs for greenhouse gas reduction and climate 
                            adaptation.
Sec. 211. Climate Change Health Protection and Promotion Fund.
Sec. 212. Climate change safeguards for natural resources conservation.
Sec. 213. Nuclear worker training.
Sec. 214. Supplemental agriculture, abandoned mine land, renewable 
                            energy, and forestry.
Sec. 215. Investment in greenhouse gas reductions from the 
                            transportation sector.
Sec. 216. State programs for natural resource adaptation activities.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the United States can take back control of the energy 
        future of the United States, strengthen economic 
        competitiveness, safeguard the health of families and the 
        environment, and ensure the national security, of the United 
        States by increasing energy independence;
            (2) creating a clean energy future requires a comprehensive 
        approach that includes support for the improvement of all 
        energy sources, including coal, natural gas, nuclear power, and 
        renewable generation;
            (3) efficiency in the energy sector also represents a 
        critical avenue to reduce energy consumption and carbon 
        pollution, and those benefits can be captured while generating 
        additional savings for consumers;
            (4) substantially increasing the investment in the clean 
        energy future of the United States will provide economic 
        opportunities to millions of people in the United States and 
        drive future economic growth in this country;
            (5) the United States is responsible for many of the 
        initial scientific advances in clean energy technology, but, as 
        of September 2009, the United States has only 5 of the top 30 
        leading companies in solar, wind, and advanced battery 
        technology;
            (6) investment in the clean energy sector will allow 
        companies in the United States to retake a leadership position, 
        and the jobs created by those investments will significantly 
        accelerate growth in domestic manufacturing;
            (7) those opportunities also will result in substantial 
        employment gains in construction, a sector in which the median 
        hourly wage is 17 percent higher than the national median;
            (8) those jobs are distributed throughout the United 
        States, and the highest clean energy economy employment growth 
        rates in the last 10 years were in the States of Idaho, 
        Nebraska, South Dakota, Oregon, and New Mexico;
            (9) focusing on clean energy will dramatically reduce 
        pollution and significantly improve the health of families in 
        and the environment of the United States;
            (10) moving to a low-carbon economy must protect the most 
        vulnerable populations in the United States, including low-
        income families that are particularly affected by volatility in 
        energy prices;
            (11) if unchecked, the impact of climate change will 
        include widespread effects on health and welfare, including--
                    (A) increased outbreaks from waterborne diseases;
                    (B) more droughts;
                    (C) diminished agricultural production;
                    (D) severe storms and floods;
                    (E) heat waves;
                    (F) wildfires; and
                    (G) a substantial rise in sea levels, due in part 
                to--
                            (i) melting mountain glaciers;
                            (ii) shrinking sea ice; and
                            (iii) thawing permafrost;
            (12) the most recent science indicates that the changes 
        described in paragraph (11)(G) are occurring faster and with 
        greater intensity than expected;
            (13) military officials, including retired admirals and 
        generals, concur with the intelligence community that climate 
        change acts as a threat multiplier for instability and presents 
        significant national security challenges for the United States;
            (14) massive portions of the infrastructure of the United 
        States, including critical military infrastructure, are at risk 
        from the effects of climate change;
            (15) impacts are already being felt in local communities 
        within the United States as well as by at-risk populations 
        abroad;
            (16) the Declaration of the Leaders from the Major 
        Economies Forum on Energy and Climate, representing 17 of the 
        largest economies in the world, recognizes the need to limit 
        the increase in global average temperatures to within 2 degrees 
        Centigrade, as a necessary step to prevent the catastrophic 
        consequences of climate change; and
            (17) the United States should lead the global community in 
        combating the threat of global climate change and reaching a 
        robust international agreement to address global warming under 
        the United Nations Framework Convention on Climate Change, done 
        at New York on May 9, 1992 (or a successor agreement).

SEC. 3. ECONOMYWIDE EMISSION REDUCTION GOALS.

    The goals of this Act and the amendments made by this Act are to 
reduce steadily the quantity of United States greenhouse gas emissions 
such that--
            (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;
            (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;
            (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; and
            (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.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 302 of the Clean Air Act (42 
        U.S.C. 7602).
            (3) State.--The term ``State'' has the meaning given that 
        term in section 302 of the Clean Air Act (42 U.S.C. 7602).

  DIVISION A--AUTHORIZATIONS FOR POLLUTION REDUCTION, TRANSITION, AND 
                               ADAPTATION

SEC. 101. STRUCTURE OF ACT.

    (a) Authorized and Allocated Programs.--The following programs 
authorized under this division are eligible to receive an allocation 
under title VII of the Clean Air Act:
            (1) The program for greenhouse gas emission reductions 
        through transportation efficiency under part C of title VIII 
        the Clean Air Act (as added by sections 112 and 113 of this 
        division) and section 215 of division B.
            (2) The program for nuclear worker training under section 
        132 of this division and 213 of division B.
            (3) State recycling programs under section 154 of this 
        division and section 210 of division B.
            (4) The supplemental agriculture and forestry greenhouse 
        gas reduction and renewable energy program under section 155 of 
        this division and section 214 of division B.
            (5) The program for energy efficiency in building codes 
        under section 163 of this division and section 203 of division 
        B.
            (6) The program for retrofit for energy and environmental 
        performance under section 164 of this division.
            (7) The program for worker transition under part 2 of 
        subtitle A of title III of this division and section 209 of 
        division B.
            (8) The program for public health and climate change under 
        subpart B of part 1 of subtitle C of title III of this division 
        and section 211 of division B.
            (9) The program for climate change safeguards for natural 
        resources conservation under subpart C of part 1 of subtitle C 
        of title III of this division, sections 212 and 216 of division 
        B, including--
                    (A) State programs for natural resource adaptation 
                under section 370(a)(1) of division A, and section 216 
                of division B; and
                    (B) the Natural Resources Climate Change Adaptation 
                Account under paragraphs (2) through (6) of section 
                370(a) of division A, and section 212 of division B.
            (10) The program for emission reductions from reduced 
        deforestation under section 753 of the Clean Air Act (as added 
        by section 322 of this division).
            (11) The International Clean Energy Deployment Program 
        under section 323 of this division and section 206 of division 
        B.
            (12) The international climate change adaptation and global 
        security program under 324 of this division and section 207 of 
        division B.
            (13) The program for water system mitigation and adaptation 
        partnerships under section 381 of this division and section 210 
        of division B.
            (14) The program for flood control, protection, prevention, 
        and response under section 382 of this division and section 210 
        of division B.
            (15) The program for wildfire under section 383 of this 
        division and section 210 of division B.
            (16) The Coastal and Great Lakes State Adaptation Program 
        under section 384 of this division and section 210 of division 
        B.
    (b) Allocated Programs.--The following allocations are provided 
under title VII of the Clean Air Act:
            (1) The Market Stability Reserve Fund under section 726 of 
        the Clean Air Act (as added by section 101 of division B).
            (2) The program to ensure real reductions in industrial 
        emissions under part F of title VII of the Clean Air Act (as 
        added by section 141 of division B).
            (3) The program for electricity consumers pursuant to 
        section 772 of the Clean Air Act (as added by section 111 of 
        division B).
            (4) The program for natural gas consumers pursuant to 
        section 773 of the Clean Air Act (as added by section 111 of 
        division B).
            (5) The program for home heating oil and propane consumers 
        pursuant to section 774 of the Clean Air Act (as added by 
        section 111 of division B).
            (6) The program for domestic fuel production, including 
        petroleum refiners and small business refiners, under section 
        775 of the Clean Air Act (as added by section 111 of division 
        B).
            (7) The program for climate change consumer refunds and 
        low- and moderate-income consumers pursuant to section 776 of 
        the Clean Air Act (as added by section 111 of division B), 
        including--
                    (A) consumer rebates under section 776(a) of the 
                Clean Air Act (as so added); and
                    (B) energy refunds under section 776(b) of the 
                Clean Air Act (as so added).
            (8) The program for commercial deployment of carbon capture 
        and storage technology under section 780 of the Clean Air Act 
        (as added by section 111 of division B).
            (9) The program for early action recognition pursuant to 
        section 782 of the Clean Air Act (as added by section 111 of 
        division B).
            (10) The program for investment in clean vehicle technology 
        under section 201 of division B.
            (11) The program for State and local investment in energy 
        efficiency and renewable energy under section 202 of division 
        B.
            (12) The program for Energy Innovation Hubs pursuant to 
        section 204 of division B.
            (13) The program for ARPA-E research pursuant to section 
        205 of division B.
            (14) The program for energy efficiency and renewable energy 
        worker training under section 208 of division B.
            (15) The State programs for greenhouse gas reduction and 
        climate adaptation pursuant to section 210 of division B.
            (16) The program for greenhouse gas emission reductions 
        from the transportation sector under section 215 of division B.
    (c) Nonallocated Programs.--The following programs are authorized 
under this division:
            (1) The SmartWay Transportation Efficiency Program under 
        section 822 of the Clean Air Act (as added by section 114 of 
        this division).
            (2) The carbon capture and sequestration demonstration and 
        early deployment program under section 125 of this division.
            (3) The nuclear safety and waste management programs under 
        section 133 of this division.
            (4) Water efficiency programs under subtitle D of title I 
        of this division.
            (5) The Office of Consumer Advocacy under section 151 of 
        this division.
            (6) The clean technology business competition grant program 
        under section 152 of this division.
            (7) The product carbon disclosure program under section 153 
        of this division.
            (8) The Economic Development Climate Change Fund under 
        section 219 of the Public Works and Economic Development Act of 
        1965 (as added by section 156 of this division).
            (9) The program for renewable energy under section 161 of 
        this division.
            (10) The program for advanced biofuels under section 162 of 
        this division.
            (11) The program for emission reductions from public 
        transportation vehicles under subtitle G of title I of this 
        division.
            (12) The Clean Energy and Accelerated Emission Reduction 
        Program under section 181 of this division.
            (13) The program for advanced natural gas technologies 
        under section 182 of this division.
            (14) The program for advanced energy research under 
        subtitle A of title II of this division.
            (15) The program for drinking water adaptation, technology, 
        education, and research under subtitle B of title II of this 
        division.
            (16) The program for clean energy curriculum development 
        grants under section 301 of this division.
            (17) The program for Development of Information and 
        Resources clearinghouse for vocational education and job 
        training in renewable energy sectors under section 302 of this 
        division.
            (18) The green construction careers demonstration project 
        under section 303 of this division.

SEC. 102. REQUIREMENTS RELATING TO FEDERAL ADVISORY COMMITTEES.

    (a) Appointment Qualifications.--Each appointment of a member to an 
advisory committee established under this Act or an amendment made by 
this Act shall be--
            (1) based on the qualifications, competence, and experience 
        of the member; and
            (2) except as otherwise required by Federal law (including 
        regulations), made without regard to the political affiliation 
        of the member.
    (b) Designation of Members.--
            (1) In general.--An individual appointed to serve on an 
        advisory committee established under this Act or an amendment 
        made by this Act who is not a full-time or permanent part-time 
        officer or employee of the Federal Government shall be 
        designated by the Federal department or agency to which the 
        relevant advisory committee reports as--
                    (A) a special employee of the Federal Government, 
                if the individual is providing advice based 
                substantially on the expertise or experience of the 
                individual; or
                    (B) a representative, if the individual is 
                substantially representing the views of individuals or 
                entities outside the Federal Government.
            (2) Reviews.--
                    (A) In general.--The head of each Federal 
                department or agency shall review the membership of 
                each advisory committee that reports to the department 
                or agency--
                            (i) to determine whether the designation of 
                        the members is appropriate; and
                            (ii) if the designation of any member is 
                        not appropriate, to redesignate the member.
                    (B) Timing.--A review under subparagraph (A) shall 
                be conducted--
                            (i) on the date on which the charter of the 
                        relevant advisory committee expires; or
                            (ii) for any advisory committee with an 
                        indefinite charter, not less frequently than 
                        once every 2 years.
    (c) Ensuring Independent Advice and Expertise.--
            (1) Appointment.--To the maximum extent practicable, except 
        as provided in subsection (b)(1)(B), the head of each Federal 
        department and agency shall appoint members of advisory 
        committees established under this Act or an amendment made by 
        this Act as special employees of the Federal Government.
            (2) Action by agency heads.--The head of each Federal 
        department or agency shall ensure, to the maximum extent 
        practicable, that--
                    (A) no individual appointed to serve on an 
                applicable advisory committee has a conflict of 
                interest that is relevant to the functions to be 
                performed by the individual, unless--
                            (i) the conflict is promptly and publicly 
                        disclosed; and
                            (ii) the head of the department or agency 
                        determines that the conflict is unavoidable; 
                        and
                    (B) each report of an applicable advisory 
                committee--
                            (i) is the result of the independent 
                        judgment of the advisory committee; and
                            (ii) includes a statement indicating the 
                        process used by the advisory committee in 
                        formulating the recommendations or conclusions 
                        contained in the report.
            (3) Requirement.--The head of each Federal department or 
        agency shall require that individuals appointed or considered 
        for appointment to serve on an applicable advisory committee 
        shall inform the head of any conflict of interest of the 
        individual that is relevant to the advisory committee functions 
        to be performed by the individual.
            (4) Representative members.--If the head of a Federal 
        department or agency determines that a member described in 
        subsection (b)(1)(B) is required to serve on an applicable 
        advisory committee, the advisory committee management officer 
        of the department or agency shall consult with the designated 
        ethics official of the department or agency to ensure that the 
        designation of the member is appropriate and necessary to 
        fulfilling the purpose of the advisory committee.
            (5) Action by ethics officials.--The designated ethics 
        official of each applicable Federal department or agency shall 
        issue guidance to ensure that the applicable advisory 
        committees are providing sufficiently independent advice and 
        expertise.
            (6) Reports.--The Administrator of General Services shall--
                    (A) conduct an annual review of compliance by 
                Federal departments and agencies with the requirements 
                of this subsection; and
                    (B) submit to the Committee on Environment and 
                Public Works of the Senate and the Committee on Energy 
                and Commerce of the House of Representatives annual 
                reports describing the results of the reviews.
    (d) Disclosure of Information.--
            (1) Items required to be disclosed.--The head of each 
        Federal department or agency to which an advisory committee 
        established under this Act or an amendment made by this Act 
        reports shall make available as described in paragraph (2) the 
        following information, at a minimum:
                    (A) The charter of the advisory committee.
                    (B) A description of the formation process of the 
                advisory committee, including--
                            (i) the process for identifying prospective 
                        members;
                            (ii) the process of selecting members for 
                        balance of viewpoints or expertise; and
                            (iii) a justification of the need for 
                        representative members, if any.
                    (C) A list of all current members of the advisory 
                committee, updated regularly, including, for each 
                member--
                            (i) the name of any individual or entity 
                        that nominated the member;
                            (ii) whether the member is designated as a 
                        special employee of the Federal Government or a 
                        representative member; and
                            (iii) in the case of a representative 
                        member, the individuals or entity the viewpoint 
                        of which the member represents.
                    (D) A list of all special employees of the Federal 
                Government who have received conflict of interest 
                waivers under section 208(b) of title 18, United States 
                Code, pursuant to regulations promulgated by the Office 
                of Government Ethics, a description of the conflict 
                necessitating the waiver, and the reason for granting 
                the waiver.
                    (E) A summary of the decisionmaking process of the 
                advisory committee.
                    (F) A complete report of all meetings of the 
                advisory committee.
                    (G) Notices of future meetings of the advisory 
                committee.
            (2) Methods of disclosure.--
                    (A) Availability.--
                            (i) In general.--Subject to clause (ii), 
                        the information required to be disclosed by a 
                        Federal department or agency under this 
                        subsection shall be made available 
                        electronically, including on the official 
                        public Internet website of the department or 
                        agency, not later than 7 calendar days before 
                        the applicable meeting of the advisory 
                        committee.
                            (ii) Complete reports.--Each complete 
                        report of a meeting of an advisory committee 
                        established under this Act or an amendment made 
                        by this Act--
                                    (I) shall be disclosed by the 
                                relevant Federal department or agency 
                                under this subsection by not later than 
                                7 calendar days after the date of the 
                                meeting; and
                                    (II) may take the form of an 
                                electronic recording of the meeting, a 
                                transcript, or any other substantively 
                                complete accounting of the meeting.
                    (B) Action by gsa.--The Administrator of General 
                Services shall provide, on the official public Internet 
                website of the General Services Administration, 
                electronic access to the information made available by 
                each Federal department or agency under subparagraph 
                (A).

SEC. 103. VOLUNTARY RENEWABLE ENERGY MARKETS.

    (a) Findings.--Congress finds that--
            (1) voluntary renewable energy markets can be efficient and 
        effective programs for allowing consumers and businesses to 
        voluntarily use or support renewable energy;
            (2) more than 1,000,000 businesses, households, government 
        agencies, farms, and others voluntarily purchase renewable 
        electricity or renewable energy certificates; and
            (3) according to the Department of Energy--
                    (A) voluntary renewable energy purchases totaled 
                24,000,000,000 kilowatt-hours during calendar year 
                2008, representing 0.6 percent of total United States 
                electricity sales; and
                    (B) voluntary renewable energy purchases have 
                increased at an average annual rate of 32 percent since 
                calendar year 2004.
    (b) Statement of Policy.--It is the policy of the United States--
            (1) to support the continued growth of voluntary renewable 
        energy markets; and
            (2) that nothing in this Act or the amendments made by this 
        Act is intended to interfere with or prevent the continued 
        operation and growth of the voluntary renewable energy market.
    (c) Report to Congress.--Not later than 2 years after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a report describing the efficacy of the 
voluntary renewable energy market in the context of the pollution 
reduction and investment programs under this Act and the amendments 
made by this Act, including--
            (1) whether meaningful reductions in carbon dioxide 
        emissions have occurred in response to investments in the 
        voluntary renewable energy market;
            (2) whether the voluntary market continues to grow; and
            (3) a list of recommended strategies for ensuring that--
                    (A) meaningful emissions reductions may occur; and
                    (B) the voluntary renewable energy market may 
                continue to grow.

               TITLE I--GREENHOUSE GAS REDUCTION PROGRAMS

                    Subtitle A--Clean Transportation

SEC. 111. EMISSION STANDARDS.

    Title VIII of the Clean Air Act (as added by section 121 of 
division B) is amended by adding at the end the following:

                        ``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.
    ``(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.
    ``(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.
    ``(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.
    ``(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.
    ``(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.
    ``(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.
    ``(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.
    ``(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.
    ``(e) Greenhouse Gases.--Notwithstanding the provisions of section 
711, hydrofluorocarbons shall be considered a greenhouse gas for 
purposes of this section.''.

SEC. 112. GREENHOUSE GAS EMISSION REDUCTIONS THROUGH TRANSPORTATION 
              EFFICIENCY.

    (a) Environmental Protection Agency.--Title VIII of the Clean Air 
Act (as amended by section 111 of this division) is amended by adding 
at the end the following:

                   ``PART C--TRANSPORTATION EMISSIONS

``SEC. 831. GREENHOUSE GAS EMISSION REDUCTIONS THROUGH TRANSPORTATION 
              EFFICIENCY.

    ``(a) In General.--The Administrator, in consultation with the 
Secretary of Transportation (referred to in this part as the 
`Secretary'), shall promulgate, and update from time to time, 
regulations to establish--
            ``(1) national transportation-related greenhouse gas 
        emission reduction goals that are commensurate with the 
        emission reduction goals established under the Clean Energy 
        Jobs and American Power Act and amendments made by that Act;
            ``(2) standardized emission models and related methods, to 
        be used by States, metropolitan planning organizations, and air 
        quality agencies to address emission reduction goals, 
        including--
                    ``(A) the development of surface transportation-
                related greenhouse gas emission reduction targets 
                pursuant to sections 134 and 135 of title 23, and 
                sections 5303 and 5304 of title 49, United States Code;
                    ``(B) the assessment of projected surface 
                transportation-related greenhouse gas emissions from 
                transportation strategies;
                    ``(C) the assessment of projected surface 
                transportation-related greenhouse gas emissions from 
                State and regional transportation plans;
                    ``(D) the establishment of surface transportation-
                related greenhouse gas emission baselines at a 
                national, State, and regional levels; and
                    ``(E) the measurement and assessment of actual 
                surface transportation-related emissions to assess 
                progress toward achievement of emission targets at the 
                State and regional levels;
            ``(3) methods for collection of data on transportation-
        related greenhouse gas emissions; and
            ``(4) publication and distribution of successful strategies 
        employed by States, Indian tribes, metropolitan planning 
        organizations, and other entities to reduce transportation-
        related greenhouse gas emissions.
    ``(b) Role of Department of Transportation.--The Secretary, in 
consultation with the Administrator, shall promulgate, and update from 
time to time, regulations--
            ``(1) to improve the ability of transportation planning 
        models and tools, including travel demand models, to address 
        greenhouse gas emissions;
            ``(2) to assess projected surface transportation-related 
        travel activity and transportation strategies from State and 
        regional transportation plans; and
            ``(3) to update transportation planning requirements and 
        approval of transportation plans as necessary to carry out this 
        section.
    ``(c) Consultation and Models.--In promulgating the regulations, 
the Administrator and the Secretary--
            ``(1) shall consult with States, Indian tribes, 
        metropolitan planning organizations, and air quality agencies;
            ``(2) may use existing models and methodologies if the 
        models and methodologies are widely considered to reflect the 
        best practicable modeling or methodological approach for 
        assessing actual and projected transportation-related 
        greenhouse gas emissions from transportation plans and 
        projects; and
            ``(3) shall consider previously developed plans that were 
        based on models and methodologies for reducing greenhouse gas 
        emissions in applying those regulations to the first approvals 
        after promulgation.
    ``(d) Timing.--The Administrator and the Secretary shall--
            ``(1) publish proposed regulations under subsections (a) 
        and (b) not later than 1 year after the date of enactment of 
        this section; and
            ``(2) promulgate final regulations under subsections (a) 
        and (b) not later than 18 months after the date of enactment of 
        this section.
    ``(e) Assessment.--
            ``(1) In general.--At least every 6 years after 
        promulgating final regulations under subsections (a) and (b), 
        the Administrator and the Secretary shall jointly assess 
        current and projected progress in reducing national 
        transportation-related greenhouse gas emissions.
            ``(2) Requirements.--The assessment shall examine the 
        contributions to emission reductions attributable to--
                    ``(A) improvements in vehicle efficiency;
                    ``(B) greenhouse gas performance of transportation 
                fuels;
                    ``(C) reductions in vehicle miles traveled;
                    ``(D) changes in consumer demand and use of 
                transportation management systems; and
                    ``(E) any other greenhouse gas-related 
                transportation policies enacted by Congress.
            ``(3) Results of assessment.--The Secretary and the 
        Administrator shall consider--
                    ``(A) the results of the assessment conducted under 
                this subsection; and
                    ``(B) based on those results, whether technical or 
                other updates to regulations required under this 
                section and sections 134 and 135 of title 23, and 
                sections 5303 and 5304 of title 49, United States Code, 
                are necessary.''.
    (b) Metropolitan Planning Organizations.--
            (1) Title 23.--Section 134 of title 23, United States Code, 
        is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``minimizing'' and 
                        inserting ``reducing''; and
                            (ii) by inserting ``, reliance on oil, 
                        impacts on the environment, transportation-
                        related greenhouse gas emissions,'' after 
                        ``consumption'';
                    (B) in subsection (h)(1)(E)--
                            (i) 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,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns'';
                    (C) in subsection (i)--
                            (i) in paragraph (4)(A)--
                                    (I) by striking ``consult, as 
                                appropriate,'' and inserting 
                                ``cooperate'';
                                    (II) by inserting ``transportation, 
                                public transportation, air quality, and 
                                housing, and shall consult, as 
                                appropriate, with State and local 
                                agencies and Indian tribes responsible 
                                for'' after ``responsible for'' and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,''; and
                            (ii) in paragraph (5)(C)(iii), by inserting 
                        ``and through the website of the metropolitan 
                        planning organization, including emission 
                        reduction targets and strategies developed 
                        under subsection (k)(6), including an analysis 
                        of the anticipated effects of the targets and 
                        strategies,'' after ``World Wide Web''; and
                    (D) in subsection (k), by adding at the end the 
                following:
            ``(6) Transportation greenhouse gas reduction efforts.--
                    ``(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 to meet those targets.
                    ``(B) Eligible organizations.--
                            ``(i) MPOS within tmas.--All provisions and 
                        requirements of this section, including the 
                        requirements of the transportation greenhouse 
                        gas reduction efforts, shall apply to 
                        metropolitan planning organizations that also 
                        serve as transportation management areas.
                            ``(ii) Other mpos.--A metropolitan planning 
                        organization that does not serve as a 
                        transportation management area--
                                    ``(I) may develop transportation 
                                greenhouse gas emission reduction 
                                targets and strategies to meet those 
                                targets; and
                                    ``(II) if those targets and 
                                strategies are developed, shall be 
                                subject to all applicable provisions 
                                and requirements of this section and 
                                the Clean Energy Jobs and American 
                                Power Act, including requirements of 
                                the transportation greenhouse gas 
                                reduction efforts.
                    ``(C) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 831 of the Clean Air 
                        Act, each metropolitan planning organization 
                        that also serves as a transportation management 
                        area shall develop surface transportation-
                        related greenhouse gas emission reduction 
                        targets, as well as strategies to meet those 
                        targets, in consultation with State air 
                        agencies and Indian tribes as part of the 
                        metropolitan transportation planning process 
                        under this section.
                            ``(ii) Multiple designations.--If more than 
                        1 metropolitan planning organization has been 
                        designated within a metropolitan area, each 
                        metropolitan planning organization shall 
                        coordinate with other metropolitan planning 
                        organizations in the same metropolitan area to 
                        develop the targets and strategies described in 
                        clause (i).
                            ``(iii) Minimum requirements.--Each 
                        metropolitan transportation plan developed by a 
                        metropolitan planning organization under clause 
                        (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        so as to contribute to the achievement of State 
                        targets pursuant to section 135(f)(9).
                            ``(iv) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--
                                    ``(I) be based on the emission and 
                                travel demand models and related 
                                methodologies established in the final 
                                regulations required under section 831 
                                of the Clean Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related 
                                greenhouse gas emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with regional transportation plans and 
                                transportation improvement programs; 
                                and
                                    ``(V) be selected through scenario 
                                analysis, and include, pursuant to the 
                                requirements of the transportation 
                                planning process under this section, 
                                transportation investment and 
                                management strategies that reduce 
                                greenhouse gas emissions from the 
                                transportation sector over the life of 
                                the plan, such as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce long-
                                        term greenhouse gas emissions 
                                        through reduced congestion and 
                                        improved system management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) intercity bus 
                                        improvements;
                                            ``(hh) freight rail 
                                        improvements;
                                            ``(ii) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;
                                            ``(jj) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles; or
                                            ``(kk) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        greenhouse gas emissions in 
                                        each metropolitan planning 
                                        organization under this 
                                        subsection.
                    ``(D) Review and approval.--Not later than 180 days 
                after the date of submission of a plan under this 
                section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        metropolitan planning organization meets the 
                        requirements of subparagraph (C) if--
                                    ``(I) the Secretary finds that a 
                                metropolitan planning organization has 
                                developed, submitted, and published the 
                                plan of the metropolitan planning 
                                organization pursuant to this section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                metropolitan planning organization 
                                under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (iii) and 
                                (iv) of subparagraph (C).
                    ``(E) Certification.--
                            ``(i) In general.--Only metropolitan 
                        planning organizations that meet the 
                        requirements of subparagraph (C) shall be 
                        eligible to receive performance grants under 
                        section 113(c).
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (C) shall not impact certification standards 
                        under paragraph (5).
            ``(7) Definition of metropolitan planning organization.--In 
        this subsection, the term `metropolitan planning organization' 
        means a metropolitan planning organization described in clause 
        (i) or (ii) of paragraph (6)(B).
            ``(8) Scenario analysis.--The term `scenario analysis' 
        means the use of a planning tool that--
                    ``(A) develops a range of scenarios representing 
                various combinations of transportation and land use 
                strategies, and estimates of how each of those 
                scenarios would perform in meeting the greenhouse gas 
                emission reduction targets based on analysis of various 
                forces (such as health, transportation, economic or 
                environmental factors, and land use) that affect 
                growth;
                    ``(B) may include features such as--
                            ``(i) the involvement of the general 
                        public, key stakeholders, and elected officials 
                        on a broad scale;
                            ``(ii) the creation of an opportunity for 
                        those participants to educate each other as to 
                        growth trends and trade-offs, as a means to 
                        incorporate values and feedback into future 
                        plans; and
                            ``(iii) the use of continuing efforts and 
                        ongoing processes; and
                    ``(C) may include key elements such as--
                            ``(i) identification of the driving forces 
                        behind planning decisions and outcomes;
                            ``(ii) determination of patterns of 
                        interaction;
                            ``(iii) creation of scenarios for 
                        discussion purposes;
                            ``(iv) analysis of implications;
                            ``(v) evaluation of scenarios; and
                            ``(vi) use of monitoring indicators.''.
            (2) Title 49.--Section 5303 of title 49, United States 
        Code, is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``minimizing'' and 
                        inserting ``reducing''; and
                            (ii) by inserting ``, reliance on oil, 
                        impacts on the environment, transportation-
                        related greenhouse gas emissions,'' after 
                        ``consumption'';
                    (B) in subsection (h)(1)(E)--
                            (i) 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,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns'';
                    (C) in subsection (i)--
                            (i) in paragraph (4)(A)--
                                    (I) by striking ``consult, as 
                                appropriate,'' and inserting 
                                ``cooperate'';
                                    (II) by inserting ``transportation, 
                                public transportation, air quality, and 
                                housing, and shall consult, as 
                                appropriate, with State and local 
                                agencies and Indian tribes responsible 
                                for'' after ``responsible for'' and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,''; and
                            (ii) in paragraph (5)(C)(iii), by inserting 
                        ``and through the website of the metropolitan 
                        planning organization, including emission 
                        reduction targets and strategies developed 
                        under subsection (k)(6), including an analysis 
                        of the anticipated effects of the targets and 
                        strategies,'' after ``World Wide Web''; and
                    (D) in subsection (k), by adding at the end the 
                following:
            ``(6) Transportation greenhouse gas reduction efforts.--
                    ``(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 to meet those targets.
                    ``(B) Eligible organizations.--
                            ``(i) In general.--The requirements of the 
                        transportation greenhouse gas reduction efforts 
                        shall apply only to metropolitan planning 
                        organizations within a transportation 
                        management area.
                            ``(ii) Development of plan.--A metropolitan 
                        planning organization that does not serve as a 
                        transportation management area--
                                    ``(I) may develop transportation 
                                greenhouse gas emission reduction 
                                targets and strategies to meet those 
                                targets; and
                                    ``(II) if those targets and 
                                strategies are developed, shall be 
                                subject to all provisions and 
                                requirements of this section, including 
                                requirements of the transportation 
                                greenhouse gas reduction efforts.
                    ``(C) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 831 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 those targets, in 
                        consultation with State air agencies and Indian 
                        tribes as part of the metropolitan 
                        transportation planning process under this 
                        section.
                            ``(ii) Multiple designations.--If more than 
                        1 metropolitan planning organization has been 
                        designated within a metropolitan area, each 
                        metropolitan planning organization shall 
                        coordinate with other metropolitan planning 
                        organizations in the same metropolitan area to 
                        develop the targets and strategies described in 
                        clause (i).
                            ``(iii) Minimum requirements.--Each 
                        metropolitan transportation plan developed by a 
                        metropolitan planning organization under clause 
                        (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        so as to contribute to the achievement of State 
                        targets pursuant to section 135(f)(9) of title 
                        23.
                            ``(iv) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--
                                    ``(I) be based on the emission 
                                models and related methodologies 
                                established in the final regulations 
                                required under section 831 of the Clean 
                                Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related 
                                greenhouse gas emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with regional transportation plans and 
                                transportation improvement programs; 
                                and
                                    ``(V) be selected through scenario 
                                analysis (as defined in section 134(k) 
                                of title 23), and include, pursuant to 
                                the requirements of the transportation 
                                planning process under this section, 
                                transportation investment and 
                                management strategies that reduce 
                                greenhouse gas emissions from the 
                                transportation sector over the life of 
                                the plan, such as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce long-
                                        term greenhouse gas emissions 
                                        through reduced congestion and 
                                        improved system management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) intercity bus 
                                        improvements;
                                            ``(hh) freight rail 
                                        improvements;
                                            ``(ii) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;
                                            ``(jj) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles; or
                                            ``(kk) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        greenhouse gas emissions in 
                                        each metropolitan planning 
                                        organization under this 
                                        subsection.
                    ``(D) Review and approval.--Not later than 180 days 
                after the date of submission of a plan under this 
                section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        metropolitan planning organization meets the 
                        requirements of subparagraph (C) if--
                                    ``(I) the Secretary finds that a 
                                metropolitan planning organization has 
                                developed, submitted, and published the 
                                plan of the metropolitan planning 
                                organization pursuant to this section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                metropolitan planning organization 
                                under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (iii) and 
                                (iv) of subparagraph (C).
                    ``(E) Certification.--
                            ``(i) In general.--Only metropolitan 
                        planning organizations that meet the 
                        requirements of subparagraph (C) shall be 
                        eligible to receive performance grants under 
                        section 113(c).
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (C) shall not impact certification standards 
                        under paragraph (5).
            ``(7) Definition of metropolitan planning organization.--In 
        this subsection, the term `metropolitan planning organization' 
        means a metropolitan planning organization described in clause 
        (i) or (ii) of paragraph (6)(B).''.
    (c) States.--
            (1) Title 23.--Section 135 of title 23, United States Code, 
        is amended--
                    (A) in subsection (d)(1)(E)--
                            (i) 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,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns''; and
                    (B) in subsection (f)--
                            (i) in paragraph (2)(D)(i)--
                                    (I) by striking ``, as appropriate, 
                                in consultation'' and inserting ``in 
                                cooperation'';
                                    (II) by inserting ``State and local 
                                agencies and Indian tribes responsible 
                                for transportation, public 
                                transportation, air quality, and 
                                housing and in consultation with'' 
                                before ``State, tribal''; and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,'';
                            (ii) in paragraph (3)(B)(iii), by inserting 
                        ``and through the website of the State, 
                        including emission reduction targets and 
                        strategies developed under paragraph (9) and an 
                        analysis of the anticipated effects of the 
                        targets and strategies'' after ``World Wide 
                        Web''; and
                            (iii) by adding at the end the following:
            ``(9) Transportation greenhouse gas reduction efforts.--
                    ``(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 to meet those targets.
                    ``(B) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 831 of the Clean Air 
                        Act, each State shall develop surface 
                        transportation-related greenhouse gas emission 
                        reduction targets, as well as strategies to 
                        meet those targets, in consultation with State 
                        air agencies and Indian tribes as part of the 
                        transportation planning process under this 
                        section.
                            ``(ii) Minimum requirements.--Each 
                        transportation plan developed by a State under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        in the State so as to contribute to the 
                        achievement of national goals pursuant to 
                        section 831(a)(1) of the Clean Air Act.
                            ``(iii) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--
                                    ``(I) be based on the emission 
                                models and related methodologies 
                                established in the final regulations 
                                required under section 831 of the Clean 
                                Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related 
                                greenhouse gas emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with statewide transportation plans and 
                                statewide transportation improvement 
                                programs; and
                                    ``(V) be selected through scenario 
                                analysis (as defined in section 
                                134(k)), and include, pursuant to the 
                                requirements of the transportation 
                                planning process under this section, 
                                transportation investment and 
                                management strategies that reduce 
                                greenhouse gas emissions from the 
                                transportation sector over the life of 
                                the plan, such as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce 
                                        congestion and improve system 
                                        management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) intercity bus 
                                        improvements;
                                            ``(hh) freight rail 
                                        improvements;
                                            ``(ii) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;
                                            ``(jj) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles; or
                                            ``(kk) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        greenhouse gas emissions.
                    ``(C) Coordination and consultation with public 
                agencies.--Transportation greenhouse gas targets and 
                plans pursuant to this section shall be developed--
                            ``(i) in coordination with--
                                    ``(I) all metropolitan planning 
                                organizations covered by this section 
                                within the State; and
                                    ``(II) transportation and air 
                                quality agencies within the State;
                            ``(ii) in consultation with representatives 
                        of State and local housing, economic 
                        development, and land use agencies; and
                            ``(iii) in consultation with Indian tribes 
                        contiguous to the State.
                    ``(D) Enforcement.--Not later than 180 days after 
                the date of submission of a plan under this section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        State meets the requirements of subparagraph 
                        (B) if--
                                    ``(I) the Secretary finds that a 
                                State has developed, submitted, and 
                                published the plan pursuant to this 
                                section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                State under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (ii) and 
                                (iii) of subparagraph (B).
                    ``(E) Planning finding.--
                            ``(i) In general.--Only States that meet 
                        the requirements of subparagraph (B) shall be 
                        eligible to receive performance grants under 
                        section 113(c).
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (B) shall not impact the planning finding under 
                        subsection (g)(7).''.
            (2) Title 49.--Section 5304 of title 49, United States Code 
        is amended--
                    (A) in subsection (d)(1)(E)--
                            (i) 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,'';
                            (ii) by inserting ``and public health'' 
                        after ``quality of life''; and
                            (iii) by inserting ``, including housing 
                        and land use patterns'' after ``development 
                        patterns''; and
                    (B) in subsection (f)--
                            (i) in paragraph (2)(D)(i)--
                                    (I) by striking ``, as appropriate, 
                                in consultation'' and inserting ``in 
                                cooperation'';
                                    (II) by inserting ``State and local 
                                agencies and Indian tribes responsible 
                                for transportation, public 
                                transportation, air quality, and 
                                housing and in consultation with'' 
                                before ``State, tribal''; and
                                    (III) by inserting ``public 
                                health,'' after ``conservation,'';
                            (ii) in paragraph (3)(B)(iii), by inserting 
                        ``and through the website of the State, 
                        including emission reduction targets and 
                        strategies developed under paragraph (9) and an 
                        analysis of the anticipated effects of the 
                        targets and strategies'' after ``World Wide 
                        Web''; and
                            (iii) by adding at the end the following:
            ``(9) Transportation greenhouse gas reduction efforts.--
                    ``(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 to meet those targets.
                    ``(B) Establishment of targets and criteria.--
                            ``(i) In general.--Not later than 2 years 
                        after the promulgation of the final regulations 
                        required under section 831 of the Clean Air 
                        Act, each State shall develop surface 
                        transportation-related greenhouse gas emission 
                        reduction targets, as well as strategies to 
                        meet those targets, in consultation with State 
                        air agencies and Indian tribes as part of the 
                        transportation planning process under this 
                        section.
                            ``(ii) Minimum requirements.--Each 
                        transportation plan developed by a State under 
                        clause (i) shall, within the plan, demonstrate 
                        progress in stabilizing and reducing 
                        transportation-related greenhouse gas emissions 
                        in the State so as to contribute to the 
                        achievement of national targets pursuant to 
                        section 831(a)(1) of the Clean Air Act.
                            ``(iii) Requirements for targets and 
                        strategies.--The targets and strategies 
                        developed under this subparagraph shall, at a 
                        minimum--
                                    ``(I) be based on the emission 
                                models and related methodologies 
                                established in the final regulations 
                                required under section 831 of the Clean 
                                Air Act;
                                    ``(II) inventory all sources of 
                                surface transportation-related 
                                greenhouse gas emissions;
                                    ``(III) apply to those modes of 
                                surface transportation that are 
                                addressed in the planning process under 
                                this section;
                                    ``(IV) be integrated and consistent 
                                with statewide transportation plans and 
                                statewide transportation improvement 
                                programs; and
                                    ``(V) be selected through scenario 
                                analysis (as defined in section 134(k) 
                                of title 23), and include, pursuant to 
                                the requirements of the transportation 
                                planning process under this section, 
                                transportation investment and 
                                management strategies that reduce 
                                greenhouse gas emissions from the 
                                transportation sector over the life of 
                                the plan, such as--
                                            ``(aa) efforts to increase 
                                        public transportation 
                                        ridership, including through 
                                        service improvements, capacity 
                                        expansions, and access 
                                        enhancement;
                                            ``(bb) efforts to increase 
                                        walking, bicycling, and other 
                                        forms of nonmotorized 
                                        transportation;
                                            ``(cc) implementation of 
                                        zoning and other land use 
                                        regulations and plans to 
                                        support infill, transit-
                                        oriented development, 
                                        redevelopment, or mixed use 
                                        development;
                                            ``(dd) travel demand 
                                        management programs (including 
                                        carpool, vanpool, or car-share 
                                        projects), transportation 
                                        pricing measures, parking 
                                        policies, and programs to 
                                        promote telecommuting, flexible 
                                        work schedules, and satellite 
                                        work centers;
                                            ``(ee) surface 
                                        transportation system operation 
                                        improvements, including 
                                        intelligent transportation 
                                        systems or other operational 
                                        improvements to reduce 
                                        congestion and improve system 
                                        management;
                                            ``(ff) intercity passenger 
                                        rail improvements;
                                            ``(gg) intercity bus 
                                        improvements;
                                            ``(hh) freight rail 
                                        improvements;
                                            ``(ii) use of materials or 
                                        equipment associated with the 
                                        construction or maintenance of 
                                        transportation projects that 
                                        reduce greenhouse gas 
                                        emissions;
                                            ``(jj) public facilities 
                                        for supplying electricity to 
                                        electric or plug-in hybrid-
                                        electric vehicles; or
                                            ``(kk) any other effort 
                                        that demonstrates progress in 
                                        reducing transportation-related 
                                        greenhouse gas emissions.
                    ``(C) Coordination and consultation with public 
                agencies.--Transportation greenhouse gas targets and 
                plans pursuant to this section shall be developed--
                            ``(i) in coordination with--
                                    ``(I) all metropolitan planning 
                                organizations covered by this section 
                                within the State; and
                                    ``(II) transportation and air 
                                quality agencies within the State;
                            ``(ii) in consultation with representatives 
                        of State and local housing, economic 
                        development, and land use agencies; and
                            ``(iii) in consultation with Indian tribes 
                        contiguous to the State.
                    ``(D) Enforcement.--Not later than 180 days after 
                the date of submission of a plan under this section--
                            ``(i) the Secretary and the Administrator 
                        shall review the plan; and
                            ``(ii) the Secretary shall make a 
                        determination that the plan submitted by a 
                        State meets the requirements of subparagraph 
                        (B) if--
                                    ``(I) the Secretary finds that a 
                                State has developed, submitted, and 
                                published the plan pursuant to this 
                                section;
                                    ``(II) the Secretary, in 
                                consultation with the Administrator, 
                                determines that the plan is likely to 
                                achieve the targets established by the 
                                State under this subsection; and
                                    ``(III) the development of the plan 
                                complies with the minimum requirements 
                                established under clauses (ii) and 
                                (iii) of subparagraph (B).
                    ``(E) Planning finding.--
                            ``(i) In general.--Only States that meet 
                        the requirements of subparagraph (B) shall be 
                        eligible to receive performance grants under 
                        section 113(c).
                            ``(ii) Failure to comply.--Failure to 
                        comply with the requirements under subparagraph 
                        (B) shall not impact the planning finding under 
                        subsection (g)(7).''.
    (d) Applicability.--Section 304 of the Clean Air Act (42 U.S.C. 
7604) shall not apply to the planning provisions of this section or any 
amendment made by this section.
    (e) Land Use Authority.--Nothing in this section or an amendment 
made by this section--
            (1) infringes on the existing authority of local 
        governments to plan or control land use; or
            (2) provides or transfers authority over land use to any 
        other entity.

SEC. 113. TRANSPORTATION GREENHOUSE GAS EMISSION REDUCTION PROGRAM 
              GRANTS.

    Part C of title VIII of the Clean Air Act (as amended by section 
112) is amended by adding at the end the following:

``SEC. 832. TRANSPORTATION GREENHOUSE GAS EMISSION REDUCTION PROGRAM 
              GRANTS.

    ``(a) In General.--The Secretary of Transportation (referred to in 
this section as the `Secretary') shall provide grants to States and 
metropolitan planning organizations to carry out the purposes of this 
section for each fiscal year--
            ``(1) to support the developing and updating of 
        transportation greenhouse gas reduction targets and strategies; 
        and
            ``(2) to provide financial assistance to implement plans 
        approved pursuant to--
                    ``(A) sections 134(k)(6) and 135(f)(9) of title 23, 
                United States Code; and
                    ``(B) sections 5303(k)(6) and 5304(f)(9) of title 
                49, United States Code.
    ``(b) Planning Grants.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall allocate not more than 10 percent of the funds available 
        to carry out this section for a fiscal year for metropolitan 
        planning organizations to develop and update transportation 
        plans, including targets and strategies for greenhouse gas 
        emission reduction under--
                    ``(A) sections 134(k)(6) and 135(f)(9) of title 23, 
                United States Code; and
                    ``(B) sections 5303(k)(6) and 5304(f)(9) of title 
                49, United States Code.
            ``(2) Eligible organizations.--The Secretary shall 
        distribute the funds available in (1) to metropolitan planning 
        organizations (as defined in section 134(k)(7) of title 23, 
        United States Code) in the proportion that--
                    ``(A) the population within such a metropolitan 
                planning organization; bears to
                    ``(B) the total population of all such metropolitan 
                planning organizations.
    ``(c) Performance Grants.--
            ``(1) In general.--After allocating funds pursuant to 
        subsection (b)(1), and subject to subsection (h), the Secretary 
        shall use the remainder of amounts made available to carry out 
        this section to provide grants to States and metropolitan 
        planning organizations.
            ``(2) Criteria.--In providing grants under this subsection, 
        the Secretary, in consultation with the Administrator, shall 
        develop criteria for providing the grants, taking into 
        consideration, with respect to areas to be covered by the 
        grants--
                    ``(A) the quantity of total greenhouse gas 
                emissions to be reduced as a result of implementation 
                of a plan, within a covered area, as determined by 
                methods established under section 831(a);
                    ``(B) the quantity of total greenhouse gas 
                emissions to be reduced per capita as a result of 
                implementation of a plan, within the covered area, as 
                determined by methods established under section 831(a);
                    ``(C) the cost-effectiveness of reducing greenhouse 
                gas emissions during the life of the plan;
                    ``(D) progress toward achieving emission reductions 
                target established under--
                            ``(i) sections 134(k)(6) and 135(f)(9) of 
                        title 23, United States Code; and
                            ``(ii) sections 5303(k)(6) and 5304(f)(9) 
                        of title 49, United States Code;
                    ``(E) reductions in greenhouse gas emissions 
                previously achieved by States and metropolitan planning 
                organizations during the 5-year period beginning on the 
                date of enactment of this Act;
                    ``(F) plans that increase transportation options 
                and mobility, particularly for low-income individuals, 
                minorities, the elderly, households without motor 
                vehicles, cost-burdened households, and the disabled; 
                and
                    ``(G) other factors, including innovative 
                approaches, minimization of costs, and consideration of 
                economic development, revenue generation, consumer fuel 
                cost-savings, and other economic, environmental and 
                health benefits, as the Secretary determines to be 
                appropriate.
    ``(d) Requirement for Reduced Emissions.--A performance grant under 
subsection (c) may be used only to fund strategies that demonstrate a 
reduction in greenhouse gas emissions that is sustainable over the life 
of the applicable transportation plan.
    ``(e) Cost-sharing.--The Federal share of the costs of a project 
receiving Federal financial assistance under this section shall be 80 
percent.
    ``(f) Compliance With Applicable Laws.--
            ``(1) In general.--Subject to paragraph (2), a project 
        receiving funds under this section shall comply with all 
        applicable Federal laws (including regulations), including--
                    ``(A) subchapter IV of chapter 31 of title 40, 
                United States Code; and
                    ``(B) applicable requirements of titles 23 and 49, 
                United States Code.
            ``(2) Eligibility.--Project eligibility shall be determined 
        in accordance with this section.
            ``(3) Determination of applicable modal requirements.--The 
        Secretary shall--
                    ``(A) have the discretion to designate the specific 
                modal requirements that shall apply to a project; and
                    ``(B) be guided by the predominant modal 
                characteristics of the project in the event that a 
                project has cross-modal application.
    ``(g) Additional Requirements.--
            ``(1) In general.--As a condition on the receipt of 
        financial assistance under this section, the interests of 
        public transportation employees affected by the assistance 
        shall be protected under arrangements that the Secretary of 
        Labor determines--
                    ``(A) to be fair and equitable; and
                    ``(B) to provide benefits equal to the benefits 
                established under section 5333(b) of title 49, United 
                States Code.
            ``(2) Wages and benefits.--Laborers and mechanics employed 
        on projects funded with amounts made available under this 
        section shall be paid wages and benefits not less than those 
        determined by the Secretary of Labor under subchapter IV of 
        chapter 31 of title 40, United States Code, to be prevailing in 
        the same locality.
    ``(h) Administrative Expenses.--Not more than 5 percent of the 
funds made available to carry out this section may be used by the 
Secretary to pay the administrative expenses necessary to carry out 
this section for a fiscal year.
    ``(i) Miscellaneous.--
            ``(1) Road-use and congestion pricing measures.--All 
        projects funded by amounts made available under this section 
        shall be eligible to receive amounts collected through road-use 
        and congestion pricing measures.
            ``(2) Limitations.--The Administrator may not approve any 
        transportation plan for a project that would be inconsistent 
        with existing design, procurement, and construction guidelines 
        established by the Department of Transportation.
            ``(3) Subgrantees.--With the approval of the Secretary, 
        recipients of funding under this section may enter into 
        agreements providing for the transfer of funds to private 
        transportation providers or noneligible public entities (such 
        as local governments, air quality agencies, zoning commissions, 
        special districts and transit agencies) that have statutory 
        responsibility or authority for actions necessary to implement 
        the strategies pursuant to--
                    ``(A) sections 134(k)(6) and 135(f)(9) of title 23, 
                United States Code; and
                    ``(B) sections 5303(k)(6) and 5304(f)(9) of title 
                49, United States Code.''.

SEC. 114. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

    Part B of title VIII of the Clean Air Act (as amended by section 
111) is amended by adding at the end the following:

``SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

    ``(a) In General.--There is established within the Environmental 
Protection Agency a SmartWay Transportation Efficiency 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.
    ``(b) General Duties.--Under the program established under this 
section, the Administrator shall carry out each of the following:
            ``(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.
            ``(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.
            ``(3) Development of partnership and recognition programs 
        to promote best practices and drive demand for energy-
        efficient, low-greenhouse gas transportation performance.
            ``(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.
    ``(c) Smartway Transport Freight Partnership.--The Administrator 
shall establish a SmartWay Transport 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:
            ``(1) Verification of the energy and greenhouse gas 
        performance of participating freight carriers, including those 
        operating rail, trucking, marine, and other goods movement 
        operations.
            ``(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.
            ``(3) Development of tools for--
                    ``(A) carriers to calculate their energy and 
                greenhouse gas performance; and
                    ``(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.
            ``(4) Provision of recognition opportunities for 
        participating shipper and carrier companies demonstrating 
        advanced practices and achieving superior levels of greenhouse 
        gas performance.
    ``(d) Improving Freight Greenhouse Gas Performance Databases.--The 
Secretary of Transportation 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.
    ``(e) SmartWay Passenger Transport Study.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator shall submit to 
        the Committee on Environment and Public Works of the Senate and 
        the Committee on Energy and Commerce of the House of 
        Representatives a report that describes the results of a study 
        of the commercial passenger carrier industry, including tour, 
        charter, intercity, commuter, and other passenger operations.
            ``(2) Inclusions.--The study under paragraph (1) shall 
        include--
                    ``(A) an identification of options for commercial 
                passenger carriers to promote energy-efficient, low-
                greenhouse gas emission transportation; and
                    ``(B) at the discretion of the Administrator, 
                support for a partnership and recognition program for 
                those commercial passenger carrier companies that 
                demonstrate and achieve superior levels of greenhouse 
                gas emissions performance.
    ``(f) 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 (h).
    ``(g) Purposes.--Under the SmartWay Financing Program, eligible 
entities shall--
            ``(1) use funds awarded by the Administrator to provide 
        flexible loan and/or lease terms that increase approval rates 
        or lower the costs of loans and/or leases in accordance with 
        guidance developed by the Administrator;
            ``(2) make such loans and/or 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; and
            ``(3) use funds provided by the Administrator for 
        electrification of freight transportation systems in major 
        national goods movement corridors, giving priority to 
        electrification of transportation systems in areas that are 
        gateways for high volumes of international and national freight 
        transport and require substantial criteria pollutant emission 
        reductions in order to attain national ambient air quality 
        standards.
    ``(h) Program Requirements.--The Administrator shall determine 
program design elements and requirements, including--
            ``(1) the type of financial mechanism with which to award 
        funding, in the form of grants and/or contracts;
            ``(2) the designation of eligible entities to receive 
        funding, such as State, tribal, and local governments, regional 
        organizations comprised of governmental units, nonprofit 
        organizations, or for-profit companies;
            ``(3) criteria for evaluating applications from eligible 
        entities, including anticipated--
                    ``(A) cost-effectiveness of loan or lease program 
                on a metric-ton-of-greenhouse gas-saved-per-dollar 
                basis; and
                    ``(B) ability to promote the loan or lease program 
                and associated technologies and strategies to the 
                target audience; and
            ``(4) reporting requirements for entities that receive 
        awards, including--
                    ``(A) actual cost-effectiveness and greenhouse gas 
                savings from the loan or lease program based on a 
                methodology designated by the Administrator;
                    ``(B) the total number of applications and number 
                of approved applications; and
                    ``(C) terms granted to loan and lease recipients 
                compared to prevailing market practices and/or rates.
    ``(i) Authorization of Appropriations.--Such sums as necessary are 
authorized to be appropriated to the Administrator to carry out this 
section.''.

              Subtitle B--Carbon Capture and Sequestration

SEC. 121. 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 establishing a unified and comprehensive strategy 
to address the key legal, regulatory, and other barriers to the 
commercial-scale deployment of carbon capture and storage.
    (b) Barriers.--The report under this section shall--
            (1) identify the regulatory, legal, and other gaps and 
        barriers that--
                    (A) could be addressed by a Federal agency using 
                existing statutory authority;
                    (B) require Federal legislation, if any; or
                    (C) would be best addressed at the State, tribal, 
                or regional level;
            (2) identify regulatory implementation challenges, 
        including challenges relating to approval of State and tribal 
        programs and delegation of authority for permitting; and
            (3) recommend rulemakings, Federal legislation, or other 
        actions that should be taken to further evaluate and address 
        those barriers.
    (c) Finding.--Congress finds that it is in the public interest to 
achieve widespread, commercial-scale deployment of carbon capture and 
storage in the United States and throughout Asia before January 1, 
2030.

SEC. 122. REGULATIONS FOR GEOLOGICAL SEQUESTRATION SITES.

    (a) Coordinated Certification and Permitting Process.--Part A of 
title VIII of the Clean Air Act (as amended by section 124 of this 
division) is amended by adding at the end the following:

``SEC. 813. GEOLOGICAL STORAGE SITES.

    ``(a) Coordinated Process.--
            ``(1) In general.--The Administrator shall establish a 
        coordinated approach to certifying and permitting geological 
        storage, taking into consideration all relevant statutory 
        authorities.
            ``(2) Requirements.--In establishing such approach, the 
        Administrator shall--
                    ``(A) take into account, and reduce redundancy 
                with, the requirements of section 1421 of the Safe 
                Drinking Water Act (42 U.S.C. 300h), including the 
                rulemaking for geological storage wells described in 
                the proposed rule entitled `Federal Requirements Under 
                the Underground Injection Control (UIC) Program for 
                Carbon Dioxide (CO2) Geologic Sequestration (GS) Wells' 
                (73 Fed. Reg. 43492 (July 25, 2008)); and
                    ``(B) to the maximum extent practicable, reduce the 
                burden on certified entities and implementing 
                authorities.
    ``(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 
geological storage.
    ``(c) Requirements.--The regulations under subsection (b) shall 
include--
            ``(1) a process to obtain certification for geological 
        storage under this section; and
            ``(2) requirements for--
                    ``(A) monitoring, recordkeeping, and reporting for 
                emissions associated with injection into, and escape 
                from, geological storage sites, taking into account any 
                requirements or protocols developed under section 713;
                    ``(B) public participation in the certification 
                process that maximizes transparency;
                    ``(C) the sharing of data among States, Indian 
                tribes, and the Environmental Protection Agency; and
                    ``(D) other elements or safeguards necessary to 
                achieve the purpose described in subsection (b).
    ``(d) Report.--
            ``(1) In general.--Not later than 2 years after the date of 
        promulgation of regulations pursuant to subsection (b), and not 
        less frequently than once every 3 years thereafter, the 
        Administrator shall submit 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 describing 
        geological storage in the United States, and, to the extent 
        relevant, other countries in North America.
            ``(2) Inclusions.--Each report under paragraph (1) shall 
        include--
                    ``(A) data regarding injection, emissions to the 
                atmosphere, if any, and performance of active and 
                closed geological storage sites, including those at 
                which enhanced hydrocarbon recovery operations occur;
                    ``(B) an evaluation of the performance of relevant 
                Federal environmental regulations and programs in 
                ensuring environmentally protective geological storage 
                practices;
                    ``(C) recommendations on how those programs and 
                regulations should be improved or made more effective; 
                and
                    ``(D) other relevant information.''.
    (b) Safe Drinking Water Act Standards.--Section 1421 of the Safe 
Drinking Water Act (42 U.S.C. 300h) is amended by adding at the end the 
following:
    ``(e) Carbon Dioxide Geological Storage Wells.--
            ``(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 
        geological storage wells.
            ``(2) Financial responsibility.--
                    ``(A) In general.--The regulations under 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.
                    ``(B) Regulations.--Financial responsibility may be 
                established for carbon dioxide geological wells in 
                accordance with regulations promulgated by the 
                Administrator by any 1, or any combination, of the 
                following:
                            ``(i) Insurance.
                            ``(ii) Guarantee.
                            ``(iii) Trust.
                            ``(iv) Standby trust.
                            ``(v) Surety bond.
                            ``(vi) Letter of credit.
                            ``(vii) Qualification as a self-insurer.
                            ``(viii) Any other method satisfactory to 
                        the Administrator.''.

SEC. 123. STUDIES AND REPORTS.

    (a) Study of Legal Framework for Geological Storage Sites.--
            (1) Establishment of task force.--
                    (A) In general.--As soon as practicable, but not 
                later than 180 days after the date of enactment of this 
                Act, the Administrator shall establish a task force, to 
                be composed of an equal number of--
                            (i) subject matter experts;
                            (ii) nongovernmental organizations with 
                        expertise regarding environmental policy;
                            (iii) academic experts with expertise in 
                        environmental law;
                            (iv) State and tribal officials with 
                        environmental expertise;
                            (v) representatives of State and tribal 
                        attorneys general;
                            (vi) representatives of the Environmental 
                        Protection Agency, the Department of the 
                        Interior, the Department of Energy, the 
                        Department of Transportation, and other 
                        relevant Federal agencies; and
                            (vii) members of the private sector.
                    (B) Study.--The task force established under 
                subparagraph (A) shall conduct a study of--
                            (i) existing Federal environmental 
                        statutes, State environmental statutes, and 
                        State common law that apply to geological 
                        storage sites for carbon dioxide, including the 
                        ability of those laws to serve as risk 
                        management tools;
                            (ii) the existing statutory framework, 
                        including Federal and State laws, that apply to 
                        harm and damage to the environment or public 
                        health at closed sites at which carbon dioxide 
                        injection has been used for enhanced 
                        hydrocarbon recovery;
                            (iii) 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 geological storage sites;
                            (iv) private sector mechanisms, including 
                        insurance and bonding, that may be available to 
                        manage environmental, health, and safety risks 
                        from closed geological storage sites; and
                            (v) the subsurface mineral rights, water 
                        rights, and property rights issues associated 
                        with geological storage of carbon dioxide, 
                        including issues specific to Federal land.
            (2) Report.--Not later than 18 months after the date of 
        enactment of this Act, the task force established under 
        paragraph (1)(A) shall submit to Congress a report describing 
        the results of the study conducted under that paragraph, 
        including any consensus recommendations of the task force.
    (b) Environmental Statutes.--
            (1) Study.--The Administrator shall conduct a study of the 
        means by which, and under what circumstances, the environmental 
        statutes for which the Environmental Protection Agency has 
        responsibility would apply to carbon dioxide injection and 
        geological storage activities.
            (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).

SEC. 124. PERFORMANCE STANDARDS FOR NEW COAL-FUELED POWER PLANTS.

    (a) In General.--Part A of title VIII of the Clean Air Act (as 
added by section 121 of division B) is amended by adding at the end the 
following:

``SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.

    ``(a) Definitions.--In this section:
            ``(1) Covered egu.--The term `covered EGU' means a utility 
        unit that is--
                    ``(A) required to have a permit under section 
                503(a); and
                    ``(B) authorized under State or Federal law to 
                derive at least 30 percent of the annual heat input of 
                the unit from--
                            ``(i) coal;
                            ``(ii) petroleum coke; or
                            ``(iii) any combination of those fuels.
            ``(2) Initially permitted.--
                    ``(A) In general.--The term `initially permitted', 
                with respect to a covered EGU, means that--
                            ``(i) the owner or operator of the covered 
                        EGU has received a preconstruction approval or 
                        permit under this Act as a new (not modified) 
                        source; but
                            ``(ii) administrative review or appeal of 
                        the approval or permit has not been exhausted.
                    ``(B) Calculation.--A subsequent modification of 
                any approval or permit described in subparagraph (A), 
                ongoing administrative or court review, appeals, 
                challenges, or the existence or tolling of any time to 
                pursue additional review, appeals, or challenges shall 
                not affect the date on which a covered EGU is 
                considered to be initially permitted for purposes of 
                this paragraph.
    ``(b) Standards.--
            ``(1) In general.--A covered EGU that is initially 
        permitted on or after January 1, 2020, shall--
                    ``(A) achieve an emission limitation that 
                represents a 65-percent reduction in emissions of the 
                carbon dioxide produced by the covered EGU, as measured 
                on an annual basis; or
                    ``(B) meet such more-stringent standard as the 
                Administrator may establish pursuant to subsection (c).
            ``(2) Certain covered egus.--
                    ``(A) In general.--A covered EGU that is initially 
                permitted during the period beginning on January 1, 
                2009, and ending on December 31, 2019, shall achieve, 
                by the applicable compliance date established under 
                this paragraph, an emission limitation that represents 
                a 50-percent reduction in emissions of the carbon 
                dioxide produced by the covered EGU, as measured on an 
                annual basis.
                    ``(B) Date of requirement.--Compliance with the 
                requirement described in subparagraph (A) shall be 
                required by the earlier of--
                            ``(i) the date that is 4 years after the 
                        date on which 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 permanent sequestration technology that, in 
                        the aggregate--
                                    ``(I) have a total of at least 10 
                                gigawatts of capacity (including at 
                                least 3 gigawatts which shall be 
                                through electric generating units, and 
                                up to 1 gigawatt which may be through 
                                industrial applications (for which 
                                capture and permanent sequestration of 
                                3,000,000 tons of carbon dioxide per 
                                year on an aggregate annualized basis 
                                shall be considered equivalent to 1 
                                gigawatt)), measured as the sum of--
                                            ``(aa) the treated 
                                        generating capacity (as defined 
                                        in section 780(a)) for electric 
                                        generating unit retrofits and 
                                        industrial sources; and
                                            ``(bb) the nameplate 
                                        capacity for new electric 
                                        generating units;
                                    ``(II) include at least 3 electric 
                                generating units, each with a nameplate 
                                generating capacity of 250 megawatts or 
                                greater, that capture, inject, and 
                                sequester carbon dioxide into 
                                geological formations other than oil 
                                and gas fields; and
                                    ``(III) are capturing and 
                                sequestering at least 12,000,000 tons 
                                of carbon dioxide per year, calculated 
                                on an aggregate annualized basis; or
                            ``(ii) January 1, 2020.
            ``(3) Progress review.--
                    ``(A) In general.--Not later than June 30, 2017, 
                the Administrator and the Secretary of Energy shall 
                jointly prepare and submit to Congress a review of the 
                status of commercial deployment of carbon capture and 
                permanent sequestration technology that specifies--
                            ``(i) the number of and size of units in 
                        the United States that are capturing and 
                        permanently sequestering carbon dioxide;
                            ``(ii) the tons of carbon dioxide being 
                        captured and permanently sequestered by those 
                        units; and
                            ``(iii) the geographical and technological 
                        diversity represented by those units and that 
                        technology.
                    ``(B) Finding.--To accompany the report under 
                subparagraph (A), the Administrator and the Secretary 
                of Energy shall make a finding that, in light of the 
                status of commercial deployment of carbon capture and 
                permanent sequestration technology, the date set forth 
                in paragraph (2)(B)(ii) should--
                            ``(i) remain in effect; or
                            ``(ii) in accordance with subparagraph (C), 
                        be extended to January 1, 2022.
                    ``(C) Conditions for extension.--The date set forth 
                in paragraph (2)(B)(ii) shall be extended to January 1, 
                2022, only if--
                            ``(i) the Administrator and the Secretary 
                        jointly find, pursuant to subparagraph (B), 
                        that the extension should occur; and
                            ``(ii) Congress acts to approve the finding 
                        by not later than January 1, 2018.
            ``(4) Unit-specific extension.--
                    ``(A) In general.--If the deadline for compliance 
                with paragraph (2) is the date specified in paragraph 
                (2)(B), the Administrator may extend the deadline for 
                compliance by a covered EGU by not more than 18 months 
                if the Administrator makes a determination, based on a 
                showing by the owner or operator of the covered EGU, 
                that it will be technically infeasible for the covered 
                EGU to meet the standard by that date.
                    ``(B) Request.--An owner or operator of a covered 
                EGU shall submit to the Administrator a request for an 
                extension under subparagraph (A) by not later than June 
                1, 2018.
                    ``(C) Public comment.--The Administrator shall 
                provide for public notice and comment on each extension 
                request submitted under subparagraph (B).
    ``(c) Review and Revision of Standards.--Not later than the date 
specified in subsection (b)(2)(B), and not less frequently than once 
every 5 years thereafter, the Administrator shall--
            ``(1) review the standards for new covered EGUs under this 
        section; and
            ``(2) by rule, reduce the maximum carbon dioxide emission 
        rate for new covered EGUs to a rate that reflects the degree of 
        emission limitation achievable through the application of the 
        best system of emission reduction that (taking into account the 
        cost of achieving the reduction and any nonair quality health 
        and environmental impact and energy requirements) the 
        Administrator determines has been adequately demonstrated.
    ``(d) Reports.--Not later than the date that is 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 storage 
technology, including the information described in subsection (b)(2)(A) 
(including the cumulative generating capacity to which carbon capture 
and storage retrofit projects meeting the criteria described in section 
780(c)(1)(A) has been applied and the quantities of carbon dioxide 
captured and sequestered by those projects).
    ``(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.''.

SEC. 125. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY 
              DEPLOYMENT PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (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.
            (3) Electric utility.--The term ``electric utility'' has 
        the meaning provided by section 3 of the Federal Power Act (16 
        U.S.C. 796).
            (4) Fossil fuel-based electricity.--The term ``fossil fuel-
        based electricity'' means electricity that is produced from the 
        combustion of fossil fuels.
            (5) Fossil fuel.--The term ``fossil fuel'' means coal, 
        petroleum, natural gas or any derivative of coal, petroleum, or 
        natural gas.
            (6) Corporation.--The term ``Corporation'' means the Carbon 
        Storage Research Corporation established in accordance with 
        this section.
            (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.
            (8) Retail consumer.--The term ``retail consumer'' means an 
        end-user of electricity.
    (b) Carbon Storage Research Corporation.--
            (1) Establishment.--
                    (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.
                    (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).
            (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.
            (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).
                    (A) Members.--The Board shall include at least 1 
                representative of each of the following:
                            (i) Investor-owned utilities.
                            (ii) Utilities owned by a State agency, a 
                        municipality, and an Indian tribe.
                            (iii) Rural electric cooperatives.
                            (iv) Fossil fuel producers.
                            (v) Nonprofit environmental organizations.
                            (vi) Independent generators or wholesale 
                        power providers.
                            (vii) Consumer groups.
                            (viii) The National Energy Technology 
                        laboratory of the Department of Energy.
                            (ix) The Environmental Protection Agency.
                    (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 of 
                the Public Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2602), each designated by the National 
                Association of State Regulatory Utility Commissioners 
                from States that are not within the same transmission 
                interconnection.
            (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.
            (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.
            (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.
    (c) Functions and Administration of the Corporation.--
            (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.
            (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.
            (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. Projects supported by the 
        Corporation shall meet the eligibility criteria of section 
        780(b) of the Clean Air Act.
            (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.
            (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.
            (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.
            (7) 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)).
            (8) 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).
            (9) 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.
            (10) 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.
            (11) 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.
    (d) Assessments.--
            (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:

Fuel type                               Rate of assessment per kilowatt
                                         hour
  Coal................................  $0.00043
  Natural Gas.........................  $0.00022
  Oil.................................  $0.00032.
 

            (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.
            (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.
            (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.
    (e)  ERCOT.--
            (1) Assessment, collection, and remittance.--(A) 
        Notwithstanding any other provision of this section, within 
        ERCOT, the assessment provided for in subsection (d) shall be--
                    (i) levied directly on qualified scheduling 
                entities, or their successor entities;
                    (ii) charged consistent with other charges imposed 
                on qualified scheduling entities as a fee on energy 
                used by the load-serving entities; and
                    (iii) collected and remitted by ERCOT to the 
                Corporation in the amounts and in the same manner as 
                set forth in subsection (d).
            (B) The assessment amounts referred to in subparagraph (A) 
        shall be--
                    (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); and
                    (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.
            (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.
            (3) Audit.--ERCOT shall provide a copy of its annual audit 
        pertaining to the administration of the provisions of this 
        subsection to the Corporation.
            (4) Definitions.--For the purposes of this subsection:
                    (A) The term ``ERCOT'' means the Electric 
                Reliability Council of Texas.
                    (B) The term ``load-serving entities'' has the 
                meaning adopted by ERCOT Protocols and in effect on the 
                date of enactment of this Act.
                    (C) The term ``qualified scheduling entities'' has 
                the meaning adopted by ERCOT Protocols and in effect on 
                the date of enactment of this Act.
                    (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.
    (f) Determination of Fossil Fuel-based Electricity Deliveries.--
            (1) Findings.--The Congress finds that:
                    (A) The assessments under subsection (d) are to be 
                collected based on the amount of fossil fuel-based 
                electricity delivered by each distribution utility.
                    (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.
                    (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.
            (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.
            (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.
            (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.
            (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.
    (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.
    (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.
    (i) Recovery of Costs.--
            (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.
            (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).
    (j) Technical Advisory Committee.--
            (1) Establishment.--There is established an advisory 
        committee, to be known as the ``Technical Advisory Committee''.
            (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.
            (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.
            (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.
            (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:
                    (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.
                    (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.
            (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.
    (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.
    (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 subchapter IV of chapter 31 of title 40, United 
States Code (commonly known as the ``Davis-Bacon Act'').

             Subtitle C--Nuclear and Advanced Technologies

SEC. 131. FINDINGS AND POLICY.

    (a) Findings.--Congress finds that--
            (1) in 2008, 104 nuclear power plants produced 19.6 percent 
        of the electricity generated in the United States, slightly 
        less than the electricity generated by natural gas;
            (2) nuclear energy is the largest provider of clean, low-
        carbon, electricity, almost 8 times larger than all renewable 
        power production combined, excluding hydroelectric power;
            (3) nuclear energy supplies consistent, base-load 
        electricity, independent of environmental conditions;
            (4) by displacing fossil fuels that would otherwise be used 
        for electricity production, nuclear power plants virtually 
        eliminate emissions of greenhouse gases and criteria pollutants 
        associated with acid rain, smog, or ozone;
            (5) nuclear power generation continues to require robust 
        efforts to address issues of safety, waste, and proliferation;
            (6) even if every nuclear plant is granted a 20-year 
        extension, all currently operating nuclear plants will be 
        retired by 2055;
            (7) long lead times for nuclear power plant construction 
        indicate that action to stimulate the nuclear power industry 
        should not be delayed;
            (8) the high upfront capital costs of nuclear plant 
        construction remain a substantial obstacle, despite theoretical 
        potential for significant cost reduction;
            (9) translating theoretical cost reduction potential into 
        actual reduced construction costs remains a significant 
        industry challenge that can be overcome only through 
        demonstrated performance;
            (10) as of January 2009, 17 companies and consortia have 
        submitted applications to the Nuclear Regulatory Commission for 
        26 new reactors in the United States;
            (11) those proposed reactors will use the latest in nuclear 
        technology for efficiency and safety, more advanced than the 
        technology of the 1960s and 1970s found in the reactors 
        currently operating in the United States;
            (12) increased resources for the Nuclear Regulatory 
        Commission and reform of the licensing process have improved 
        the safety and timeliness of the regulatory environment;
            (13) the United States has not built a new reactor since 
        the 1970s and, as a result, will need to revitalize and retool 
        the institutions and infrastructure necessary to construct, 
        maintain, and support new reactors, including improvements in 
        manufacturing of nuclear components and training for the next 
        generation nuclear workforce; and
            (14) those new reactors will launch a new era for the 
        nuclear industry, and translate into tens of thousands of jobs
    (b) Statement of Policy.--It is the policy of the United States, 
given the importance of transitioning to a clean energy, low-carbon 
economy, to facilitate the continued development and growth of a safe 
and clean nuclear energy industry, through--
            (1) reductions in financial and technical barriers to 
        construction and operation; and
            (2) incentives for the development of a well-trained 
        workforce and the growth of safe domestic nuclear and nuclear-
        related industries.

SEC. 132. NUCLEAR WORKER TRAINING.

    (a) Definition of Applicable Period.--In this section, the term 
``applicable period'' means--
            (1) the 5-year period beginning on January 1, 2012; and
            (2) each 5-year period beginning on each January 1 
        thereafter.
    (b) Use of Funds.--Of amounts made available to carry out this 
section for the calendar years in each applicable period--
            (1) the Secretary of Energy shall use such amounts for each 
        applicable period as the Secretary of Energy determines to be 
        necessary to increase the number and amounts of nuclear science 
        talent expansion grants and nuclear science competitiveness 
        grants provided under section 5004 of the America COMPETES Act 
        (42 U.S.C. 16532); and
            (2) the Secretary of Labor, in consultation with nuclear 
        energy entities and organized labor, shall use such amounts for 
        each applicable period as the Secretary of Labor determines to 
        be necessary to carry out programs expanding workforce training 
        to meet the high demand for workers skilled in nuclear power 
        plant construction and operation, including programs for--
                    (A) electrical craft certification;
                    (B) preapprenticeship career technical education 
                for industrialized skilled crafts that are useful in 
                the construction of nuclear power plants;
                    (C) community college and skill center training for 
                nuclear power plant technicians;
                    (D) training of construction management personnel 
                for nuclear power plant construction projects; and
                    (E) regional grants for integrated nuclear energy 
                workforce development programs.

SEC. 133. NUCLEAR SAFETY AND WASTE MANAGEMENT PROGRAMS.

    (a) Nuclear Facility Long-term Operations Research and Development 
Program.--
            (1) Establishment.--As soon as practicable after the date 
        of enactment of this Act, the Secretary of Energy (referred to 
        in this section as the ``Secretary'') shall establish a 
        research and development program--
                    (A) to address the reliability, availability, 
                productivity, component aging, safety, and security of 
                nuclear power plants;
                    (B) to improve the performance of nuclear power 
                plants;
                    (C) to sustain the health and safety of employees 
                of nuclear power plants;
                    (D) to assess the feasibility of nuclear power 
                plants to continue to provide clean and economic 
                electricity safely, substantially beyond the first 
                license extension period of the nuclear power plants, 
                which will--
                            (i) significantly contribute to the energy 
                        security of the United States; and
                            (ii) help protect the environment of the 
                        United States; and
                    (E) to support significant carbon reductions, lower 
                overall costs that are required to reduce carbon 
                emissions, and increase energy security.
            (2) Conduct of program.--
                    (A) In general.--In carrying out the program 
                established under paragraph (1), the Secretary shall--
                            (i) build a fundamental scientific basis to 
                        understand, predict, and measure changes in 
                        materials, systems, structures, equipment, and 
                        components as the materials, systems, 
                        structures, equipment, and components age 
                        through continued operations in long-term 
                        service environments;
                            (ii) develop new safety analysis tools and 
                        methods to enhance the performance and safety 
                        of nuclear power plants;
                            (iii) develop advanced online monitoring, 
                        control, and diagnostics technologies to 
                        prevent equipment failures and improve the 
                        safety of nuclear power plants;
                            (iv) establish a technical basis for 
                        advanced fuel designs (including silicon 
                        carbide fuel cladding) to increase the safety 
                        margins of nuclear power plants; and
                            (v) examine issues, including--
                                    (I) issues relating to material 
                                degradation, plant aging, and 
                                technology upgrades; and
                                    (II) any other issue that would 
                                impact decisions to extend the lifespan 
                                of nuclear power plants.
                    (B) Technical support.--In carrying out the program 
                established under paragraph (1), the Secretary shall 
                provide to the Chairman of the Nuclear Regulatory 
                Commission information collected under the program--
                            (i) to help ensure informed decisions 
                        regarding the extension of the life of nuclear 
                        power plants beyond a 60-year lifespan; and
                            (ii) for the licensing and long-term 
                        management, and safe and economical operation, 
                        of nuclear power plants.
    (b) Spent Nuclear Waste Disposal Research and Development 
Program.--
            (1) Establishment.--As soon as practicable after the date 
        of enactment of this Act, the Secretary shall establish a 
        research and development program to improve the understanding 
        of nuclear spent fuel management and the entire nuclear fuel 
        cycle life.
            (2) Conduct of program.--In carrying out the program 
        established under paragraph (1), the Secretary shall carry out 
        science-based research and development activities to pursue 
        dramatic improvements in a range of nuclear spent fuel 
        management options, including short-term and long-term storage 
        and disposal, and proliferation-resistant nuclear spent fuel 
        recycling.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

                      Subtitle D--Water Efficiency

SEC. 141. WATERSENSE.

    (a) In General.--There is established within the Environmental 
Protection Agency a WaterSense program to identify and promote water-
efficient products, buildings, landscapes, facilities, processes, and 
services, so as--
            (1) to reduce water use;
            (2) to reduce the strain on water, wastewater, and 
        stormwater infrastructure;
            (3) to conserve energy used to pump, heat, transport, and 
        treat water; and
            (4) to preserve water resources for future generations, 
        through voluntary labeling of, or other forms of communications 
        about, products, buildings, landscapes, facilities, processes, 
        and services that meet the highest water efficiency and 
        performance criteria.
    (b) Duties.--The Administrator shall--
            (1) establish--
                    (A) a WaterSense label to be used for certain 
                items; and
                    (B) the procedure by which an item may be certified 
                to display the WaterSense label;
            (2) promote WaterSense-labeled products, buildings, 
        landscapes, facilities, processes, and services in the market 
        place as the preferred technologies and services for--
                    (A) reducing water use; and
                    (B) ensuring product and service performance;
            (3) work to enhance public awareness of the WaterSense 
        label through public outreach, education, and other means;
            (4) preserve the integrity of the WaterSense label by--
                    (A) establishing and maintaining performance 
                criteria so that products, buildings, landscapes, 
                facilities, processes, and services labeled with the 
                WaterSense label perform as well or better than less 
                water-efficient counterparts;
                    (B) overseeing WaterSense certifications made by 
                third parties;
                    (C) conducting reviews of the use of the WaterSense 
                label in the marketplace and taking corrective action 
                in any case in which misuse of the label is identified; 
                and
                    (D) carrying out such other measures as the 
                Administrator determines to be appropriate;
            (5) regularly review and, if appropriate, update WaterSense 
        criteria for categories of products, buildings, landscapes, 
        facilities, processes, and services, at least once every 4 
        years;
            (6) to the maximum extent practicable, regularly estimate 
        and make available to the public the production and relative 
        market shares of, and the savings of water, energy, and capital 
        costs of water, wastewater, and stormwater infrastructure 
        attributable to the use of WaterSense-labeled products, 
        buildings, landscapes, facilities, processes, and services, at 
        least annually;
            (7) 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);
            (8) 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--
                    (A) an explanation of the changes; and
                    (B) as appropriate, responses to comments submitted 
                by interested parties and the public;
            (9) 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;
            (10) identify and, if appropriate, implement other 
        voluntary approaches in commercial, institutional, residential, 
        industrial, and municipal sectors to encourage recycling and 
        reuse technologies to improve water efficiency or lower water 
        use; and
            (11) where appropriate, apply the WaterSense label to 
        water-using products that are labeled by the Energy Star 
        program implemented by the Administrator and the Secretary of 
        Energy.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $7,500,000 for fiscal year 2010;
            (2) $10,000,000 for fiscal year 2011;
            (3) $20,000,000 for fiscal year 2012;
            (4) $50,000,000 for fiscal year 2013; and
            (5) for each subsequent fiscal year, the applicable amount 
        during the preceding fiscal year, as adjusted to reflect 
        changes for the 12-month period ending the preceding November 
        30 in the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics of the Department 
        of Labor.

SEC. 142. FEDERAL PROCUREMENT OF WATER-EFFICIENT PRODUCTS.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``Agency'' has the meaning given the 
        term in section 7902(a) of title 5, United States Code.
            (2) 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.
            (3) Product, building, landscape, facility, process, and 
        service.--The terms ``product'', ``building'', ``landscape'', 
        ``facility'', ``process'', and ``service'' do not include--
                    (A) any water-using product, building, landscape, 
                facility, process, or service designed or procured for 
                combat or combat-related missions; or
                    (B) any product, building, landscape, facility, 
                process, or service already covered by the Federal 
                procurement regulations established under section 553 
                of the National Energy Conservation Policy Act (42 
                U.S.C. 8259b).
            (4) Watersense product, building, landscape, facility, 
        process, or service.--The term ``WaterSense product, building, 
        landscape, facility, process, or service'' means a product, 
        building, landscape, facility, process, or service that is 
        labeled for water efficiency under the WaterSense program.
            (5) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 141.
    (b) Procurement of Water Efficient Products.--
            (1) Requirement.--
                    (A) In general.--To meet the requirements of an 
                agency for a water-using product, building, landscape, 
                facility, process, or service, the head of an Agency 
                shall, except as provided in paragraph (2), procure--
                            (i) a WaterSense product, building, 
                        landscape, facility, process, or service; or
                            (ii) a FEMP-designated product.
                    (B) Sense of congress regarding installation 
                preferences.--It is the sense of Congress that a 
                WaterSense irrigation system should, to the maximum 
                extent practicable, be installed and audited by a 
                WaterSense-certified irrigation professional to ensure 
                optimal performance.
            (2) Exceptions.--The head of an Agency shall not be 
        required to procure a WaterSense product, building, landscape, 
        facility, process, or service or FEMP-designated product under 
        paragraph (1) if the head of the Agency finds in writing that--
                    (A) a WaterSense product, building, landscape, 
                facility, process, or service or FEMP-designated 
                product is not cost-effective over the life of the 
                product, building, landscape, facility, process, or 
                service, taking energy, water, and wastewater service 
                cost savings into account; or
                    (B) no WaterSense product, building, landscape, 
                facility, process, or service or FEMP-designated 
                product is reasonably available that meets the 
                functional requirements of the Agency.
            (3) Procurement planning.--
                    (A) In general.--The head of an Agency shall 
                incorporate criteria used for evaluating WaterSense 
                products, buildings, landscapes, facilities, processes, 
                and services and FEMP-designated products into--
                            (i) the specifications for all procurements 
                        involving water-using products, buildings, 
                        landscapes, facilities, processes, and systems, 
                        including guide specifications, project 
                        specifications, and construction, renovation, 
                        and services contracts that include provision 
                        of water-using products, buildings, landscapes, 
                        facilities, processes, and systems; and
                            (ii) the factors for the evaluation of 
                        offers received for the procurement.
                    (B) Listing of water-efficient products in federal 
                catalogs.--WaterSense products, buildings, landscapes, 
                facilities, processes, and systems and FEMP-designated 
                products shall be clearly identified and prominently 
                displayed in any inventory or listing of products by 
                the General Services Administration or the Defense 
                Logistics Agency.
                    (C) Additional measures.--The head of an Agency 
                shall consider, to the maximum extent practicable, 
                additional measures for reducing Agency water use, 
                including water reuse technologies, leak detection and 
                repair, and use of waterless products that perform 
                similar functions to existing water-using products.
    (c) Retrofit Programs.--The head of each Agency, working in 
coordination with the Administrator and the heads of such other 
Agencies as the President may designate, shall develop standards and 
implementation procedures for a building water efficiency retrofit 
program, which shall include the following elements:
            (1) Evaluation of products and systems.--Not later than 270 
        days after the date of enactment of this Act, each Agency shall 
        evaluate water-consuming products and systems in buildings 
        operated by such Agency and identify opportunities for retrofit 
        and replacement of such products and systems with high-
        efficiency equipment, such as zero-water-consumption equipment, 
        high-efficiency toilets, high-efficiency shower heads, and 
        high-efficiency faucets, and other products that are certified 
        as Watersense products or FEMP-designated products.
            (2) Retrofit plan.--Not later than 360 days after the date 
        of enactment of this Act, each Agency shall, in coordination 
        with other appropriate Agencies and officials, prepare a water 
        efficiency retrofit plan that shall, to the maximum extent 
        practicable, maximize retrofitting of water-consuming products 
        and systems and replacement with high-efficiency equipment 
        described in paragraph (1).
    (d) Guidelines.--Not later than 180 days after the date of 
enactment of this Act, the Administrator, working in coordination with 
the Secretary of Energy and the heads of such other Agencies as the 
President may designate, shall issue guidelines to carry out this 
section.

SEC. 143. STATE RESIDENTIAL WATER EFFICIENCY AND CONSERVATION 
              INCENTIVES PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        State government, local or county government, tribal 
        government, wastewater or sewerage utility, municipal water 
        authority, energy utility, water utility, or nonprofit 
        organization that meets the requirements of subsection (b).
            (2) Incentive program.--The term ``incentive program'' 
        means a program for administering financial incentives for 
        consumer purchase and installation of water-efficient products, 
        buildings (including New Water-Efficient Homes), landscapes, 
        processes, or services described in subsection (b)(1).
            (3) Residential water-efficient product, building, 
        landscape, process, or service.--
                    (A) In general.--The term ``residential water-
                efficient product, building, landscape, process, or 
                service'' means a product, building, landscape, 
                process, or service for a residence or its landscape 
                that is rated for water efficiency and performance--
                            (i) by the WaterSense program; or
                            (ii) if a WaterSense specification does not 
                        exist, by the Energy Star program or an 
                        incentive program approved by the 
                        Administrator.
                    (B) Inclusions.--The term ``residential water-
                efficient product, building, landscape, process, or 
                service'' includes--
                            (i) faucets;
                            (ii) irrigation technologies and services;
                            (iii) point-of-use water treatment devices;
                            (iv) reuse and recycling technologies;
                            (v) toilets;
                            (vi) clothes washers;
                            (vii) dishwashers;
                            (viii) showerheads;
                            (ix) xeriscaping and other landscape 
                        conversions that replace irrigated turf; and
                            (x) New Water Efficient Homes certified by 
                        the WaterSense program.
            (4) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 141.
    (b) Eligible Entities.--An entity shall be eligible to receive an 
allocation under subsection (c) if the entity--
            (1) establishes (or has established) an incentive program 
        to provide financial incentives to residential consumers for 
        the purchase of residential water-efficient products, 
        buildings, landscapes, processes, or services;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the 
        Administrator may require; and
            (3) provides assurances satisfactory to the Administrator 
        that the entity will use the allocation to supplement, but not 
        supplant, funds made available to carry out the incentive 
        program.
    (c) Amount of Allocations.--For each fiscal year, the Administrator 
shall determine the amount to allocate to each eligible entity to carry 
out subsection (d), taking into consideration--
            (1) the population served by the eligible entity during the 
        most recent calendar year for which data are available;
            (2) the targeted population of the incentive program of the 
        eligible entity, such as general households, low-income 
        households, or first-time homeowners, and the probable 
        effectiveness of the incentive program for that population;
            (3) for existing programs, the effectiveness of the program 
        in encouraging the adoption of water-efficient products, 
        buildings, landscapes, facilities, processes, and services;
            (4) any allocation to the eligible entity for a preceding 
        fiscal year that remains unused; and
            (5) the per capita water demand of the population served by 
        the eligible entity during the most recent calendar year for 
        which data are available and the accessibility of water 
        supplies to such entity.
    (d) Use of Allocated Funds.--Funds allocated to an eligible entity 
under subsection (c) may be used to pay up to 50 percent of the cost of 
establishing and carrying out an incentive program.
    (e) Fixture Recycling.--Eligible entities are encouraged to promote 
or implement fixture recycling programs to manage the disposal of older 
fixtures replaced due to the incentive program under this section.
    (f) Issuance of Incentives.--
            (1) In general.--Financial incentives may be provided to 
        residential consumers that meet the requirements of the 
        applicable incentive program.
            (2) Manner of issuance.--An eligible entity may--
                    (A) issue all financial incentives directly to 
                residential consumers; or
                    (B) with approval of the Administrator, delegate 
                all or part of financial incentive administration to 
                other organizations, including local governments, 
                municipal water authorities, water utilities, and non-
                profit organizations.
            (3) Amount.--The amount of a financial incentive shall be 
        determined by the eligible entity, taking into consideration--
                    (A) the amount of any Federal or State incentive 
                available for the purchase of the residential water-
                efficient product or service;
                    (B) the amount necessary to change consumer 
                behavior to purchase water-efficient products and 
                services; and
                    (C) the consumer expenditures for onsite 
                preparation, assembly, and original installation of the 
                product.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section--
            (1) $100,000,000 for fiscal year 2010;
            (2) $150,000,000 for fiscal year 2011;
            (3) $200,000,000 for fiscal year 2012;
            (4) $150,000,000 for fiscal year 2013;
            (5) $100,000,000 for fiscal year 2014; and
            (6) for each subsequent fiscal year, the applicable amount 
        during the preceding fiscal year, as adjusted to reflect 
        changes for the 12-month period ending the preceding November 
        30 in the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics of the Department 
        of Labor.

                       Subtitle E--Miscellaneous

SEC. 151. OFFICE OF CONSUMER ADVOCACY.

    (a) Definitions.--In this section:
            (1) Advisory committee.--The term ``Advisory Committee'' 
        means the Consumer Advocacy Advisory Committee established 
        under subsection (c)(1).
            (2) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (3) Energy customer.--The term ``energy customer'' means a 
        residential customer or a small commercial customer that 
        receives products or services from a public utility or natural 
        gas company under the jurisdiction of the Commission.
            (4) 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).
            (5) Office.--The term ``Office'' means the Office of 
        Consumer Advocacy established by subsection (b)(1).
            (6) Public utility.--The term ``public utility'' has the 
        meaning given the term in section 201(e) of the Federal Power 
        Act (16 U.S.C. 824(e)).
            (7) 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.
    (b) Office.--
            (1) Establishment.--There is established an Office of 
        Consumer Advocacy to serve as an advocate for the public 
        interest.
            (2) Director.--The Office shall be headed by a Director to 
        be appointed by the President, who is admitted to the Federal 
        Bar, with experience in public utility proceedings, and by and 
        with the advice and consent of the Senate.
            (3) Duties.--The Office may--
                    (A) represent, and appeal on behalf of, energy 
                customers on matters concerning rates or service of 
                public utilities and natural gas companies under the 
                jurisdiction of the Commission--
                            (i) at hearings of the Commission;
                            (ii) in judicial proceedings in the courts 
                        of the United States; and
                            (iii) at hearings or proceedings of other 
                        Federal regulatory agencies and commissions;
                    (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;
                    (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;
                    (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);
                    (E) collect data concerning rates or service of 
                public utilities and natural gas companies under the 
                jurisdiction of the Commission; and
                    (F) prepare and issue reports and recommendations.
            (4) Compensation and powers.--The Director may--
                    (A) employ and fix the compensation of such staff 
                personnel as is deemed necessary; and
                    (B) procure temporary and intermittent services as 
                needed.
            (5) Access to information.--Each department, agency, and 
        instrumentality of the Federal Government is authorized and 
        directed to furnish to the Director such reports and other 
        information as he deems necessary to carry out his functions 
        under this section.
    (c) Consumer Advocacy Advisory Committee.--
            (1) Establishment.--The Director shall establish an 
        advisory committee, to be known as Consumer Advocacy Advisory 
        Committee, to review rates, services, and disputes and to make 
        recommendations to the Director.
            (2) Composition.--The Director shall appoint 5 members to 
        the Advisory Committee including--
                    (A) 2 individuals representing State Utility 
                Consumer Advocates; and
                    (B) 1 individual, from a nongovernmental 
                organization, representing consumers.
            (3) Meetings.--The Advisory Committee shall meet at such 
        frequency as may be required to carry out its duties.
            (4) Reports.--The Director shall provide for publication of 
        recommendations of the Advisory Committee on the public website 
        established for the Office.
            (5) Duration.--Notwithstanding any other provision of law, 
        the Advisory Committee shall continue in operation during the 
        period in which the Office exists.
            (6) Application of faca.--Except as otherwise specifically 
        provided, the Advisory Committee shall be subject to the 
        Federal Advisory Committee Act.
    (d) Authorization of Appropriations.--There are authorized such 
sums as necessary to carry out this section.
    (e) Savings Clause.--Nothing in this section affects the rights or 
obligations of State Utility Consumer Advocates.

SEC. 152. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT PROGRAM.

    (a) In General.--The Administrator may 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 goals in areas including air quality, energy 
efficiency and renewable energy, transportation, water quality and 
conservation, green buildings, and waste management.
    (b) Purposes.--
            (1) In general.--The competitions described in subsection 
        (a) shall have the purposes of--
                    (A) accelerating the development and deployment of 
                clean technology businesses and green jobs;
                    (B) stimulating green economic development;
                    (C) providing business training and mentoring to 
                early stage clean technology companies; and
                    (D) strengthening the competitiveness of United 
                States clean technology industry in world trade 
                markets.
            (2) Priority.--Priority shall be given to business 
        competitions that--
                    (A) are led by the private sector;
                    (B) encourage regional and interregional 
                cooperation; and
                    (C) can demonstrate market-driven practices and the 
                creation of cost-effective green jobs through an annual 
                publication of competition activities and directory of 
                companies.
    (c) Eligibility.--
            (1) In general.--To be eligible for a grant under this 
        section, an organization shall be any sponsored entity of an 
        organization described in subparagraph (A) that is operated as 
        a nonprofit entity.
            (2) Priority.--In making grants under this section, the 
        Administrator shall give priority to organizations that can 
        demonstrate broad funding support from private and other non-
        Federal funding sources to leverage Federal investment.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000.

SEC. 153. 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:
            (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, an evaluation of the 
        quality of data for use in a product carbon disclosure program 
        and product carbon labeling program, 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 need 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 a determination of the 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 later than 3 years 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 as of the date 
        of enactment of this Act);
            (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.--In this section:
            (1) The term ``carbon content'' means the quantity of 
        greenhouse gas emissions and the warming impact of those 
        emissions 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.
            (3) The term ``carbon lifecycle'' means the greenhouse gas 
        emissions that are released as part of the processes of 
        creating, producing, processing, 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--
            (1) to carry out the study required by subsection (a), 
        $5,000,000; and
            (2) to carry out the program required under subsection (b), 
        $25,000,000 for each of fiscal years 2010 through 2025.

SEC. 154. STATE RECYCLING PROGRAMS.

    (a) Establishment.--The Administrator shall establish a State 
Recycling Program governing the use of funds by States in accordance 
with this Act.
    (b) Use of Funding.--
            (1) In general.--States receiving funding to carry out this 
        section shall use the proceeds to carry out recycling programs, 
        including reuse programs, in accordance with this section.
            (2) County and municipal programs.--Subject to subsection 
        (d), not less than \1/4\ of the funding made available to a 
        State to carry out this section shall be distributed by the 
        State to county and municipal recycling and reuse programs (or 
        to State recycling and reuse programs, if that State does not 
        have a county or municipal program) as described in subsection 
        (c)(1), to be used exclusively to support recycling and reuse 
        purposes and associated source reduction purposes, including to 
        provide incentives--
                    (A) for recycling- and reuse-related technology 
                that--
                            (i) reduces or avoids greenhouse gas 
                        emissions;
                            (ii) increases collection rates;
                            (iii) improves the quality of recyclable 
                        material that is separated from solid waste; or
                            (iv) increases the reuse of products that 
                        would otherwise be disposed;
                    (B) for energy-efficiency projects for 
                transportation fleets and recycling equipment used to 
                collect and sort recyclable material and reusable 
                products separated from solid waste;
                    (C) for recycling and reuse program-related 
                expenses, including--
                            (i) education and job training;
                            (ii) development and implementation of 
                        variable rate (commonly referred to as ``pay-
                        as-you-throw'') funding programs and 
                        composting, including anaerobic digestion 
                        programs;
                            (iii) promotion of public space recycling 
                        programs;
                            (iv) approaches for assuring compliance 
                        with recycling and reuse requirements; and
                            (v) development or implementation of best 
                        practices for municipal solid waste reduction 
                        and reuse programs; and
                            (vi) incentives for the deployment of reuse 
                        technology and equipment that reduces or avoids 
                        greenhouse gas emissions; and
                    (D) to ensure that recyclable materials and 
                reusable products are not sent for disposal or 
                incineration during fluctuating markets.
            (3) Recycling and reuse facilities.--Subject to subsection 
        (d), not less than \1/4\ of the funding made available to a 
        State to carry out this section shall be distributed by the 
        State to eligible recycling and reuse facilities as described 
        in subsection (c)(2) to be used exclusively to support the 
        recycling purposes and associated source reduction purposes of 
        the facilities, including to provide--
                    (A) incentives for the demonstration or deployment 
                of recycling- and reuse-related technology and 
                equipment that reduce or avoid greenhouse gas 
                emissions;
                    (B) incentives to facilities that increase the 
                quantity and quality of recyclable material or reusable 
                products that are recycled or reused versus sent for 
                disposal or incineration;
                    (C) funding for research, management, and removal 
                of impediments to recycling and reuse, including--
                            (i) radioactive material;
                            (ii) devices or materials that contain 
                        polychlorinated biphenyls, mercury, or 
                        chlorofluorocarbons;
                            (iii) improved collection systems; and
                            (iv) production of products that are 
                        reusable;
                    (D) funding for research on, and development and 
                deployment of, new technologies to more efficiently and 
                effectively recycle items and reuse products such as 
                automobile shredder residue, cathode ray tubes, 
                plastics, and tires; and
                    (E) incentives to recycle materials and reuse 
                products identified by the Administrator that are not 
                being recycled at a recycling facility.
            (4) Manufacturing facilities.--Subject to subsection (d), 
        not less than \1/4\ of the funding made available to a State to 
        carry out this section shall be distributed by the State to 
        eligible manufacturing facilities as described in subsection 
        (c)(3) to be used exclusively to support recycling and reuse 
        purposes, including to provide incentives for the demonstration 
        or deployment of--
                    (A) manufacturing-related technology and equipment 
                that would increase the use of recyclable material and 
                the reuse of products and avoid or reduce greenhouse 
                gas emissions;
                    (B) radiation detection equipment and the costs 
                associated with recovery of detected radiated 
                recyclable material;
                    (C) technologies that will detect and separate 
                contaminants, including mercury-, lead-, and cadmium-
                containing devices;
                    (D) strategies and technologies to remove 
                impediments to recovering recyclable material and 
                product reuse; and
                    (E) strategies and technologies to improve the 
                energy efficiency of technology and equipment used to 
                manufacture recyclable and reusable products.
            (5) Reuse facilities.--Not more than \1/4\ of the funding 
        made available to a State to carry out this section may be 
        distributed by the State to eligible reuse facilities described 
        in subsection (c)(4), to be used exclusively to support the 
        reuse purposes and associated source reduction purposes of the 
        facilities, including to provide--
                    (A) incentives for the demonstration or deployment 
                of reuse-related technology and equipment that reduces 
                or avoids greenhouse gas emissions;
                    (B) incentives to facilities that increase the 
                quantity and quality of products and materials that are 
                reused versus sent for disposal or incineration;
                    (C) funding for research, management, and removal 
                of impediments to reuse, including--
                            (i) improved collection systems; and
                            (ii) production of products that are 
                        reusable;
                    (D) funding for research on, and development and 
                deployment of, new technologies to more efficiently and 
                effectively reuse products; and
                    (E) other incentives to reuse products, as 
                identified by the Administrator.
    (c) Eligibility Requirements.--
            (1) County and municipality programs.--Funds provided under 
        subsection (b)(2) shall be provided on a competitive basis to 
        county and municipal recycling and reuse programs that--
                    (A) have within the solid waste management plans of 
                the programs a recycling and reuse management plan that 
                includes an education outreach program for the 
                individuals and entities served by the program 
                constituency that highlights the lifecycle benefits of 
                recycling; and
                    (B) collect at least 5 types of recyclable or 
                reusable materials, such as--
                            (i) ferrous and nonferrous metal;
                            (ii) aluminum;
                            (iii) plastic;
                            (iv) tires and rubber;
                            (v) household electronic equipment;
                            (vi) glass;
                            (vii) scrap food;
                            (viii) recoverable fiber or paper;
                            (ix) textiles; and
                            (x) consumer packing;
                    (C) demonstrate, not later than 3 years after the 
                date of receipt of funds under this subtitle, 
                reasonable progress toward achieving--
                            (i) a collection rate goal of at least 30 
                        percent of the total recyclable or reusable 
                        materials available from the solid waste stream 
                        in the requesting State, county, or municipal 
                        program; or
                            (ii) a 10-percent increase of collected 
                        recyclable materials compared to the total 
                        solid waste stream in the requesting State, 
                        county, or municipal program; and
                    (D)(i) own, operate, or contract to handle, 
                operate, or sell 1 or more of--
                            (I) a curbside recyclables collection 
                        program;
                            (II) a redemption center or drop-off 
                        facility for recyclables or reusable products; 
                        or
                            (III) a materials recovery facility; and
                    (ii) have in place a quality, environmental, 
                health, and safety management system (such as that of 
                the International Standards Organization or an 
                equivalent) that includes goals to reduce the 
                operational carbon baselines of the programs.
            (2) Recycling and reuse facilities.--Funds provided under 
        subsection (b)(3) shall be provided on a competitive basis to 
        an existing recycling facility that--
                    (A) processes recyclable material into commercial 
                specification-grade commodities for use as raw material 
                feed stock at recovery facilities, including for use 
                as--
                            (i) a replacement or substitute for a 
                        virgin raw material; or
                            (ii) a replacement or substitute for a 
                        product made, in whole or in part, from a 
                        virgin raw material;
                    (B) has a verifiable carbon baseline; and
                    (C) has an environmental, health and safety, and 
                quality management system (such as that of the 
                International Standards Organization or an equivalent) 
                that includes goals to reduce the operational carbon 
                baseline of the recycling facility per unit of material 
                processed.
            (3) Manufacturing facility.--Funds provided under 
        subsection (b)(4) shall be provided on a competitive basis to a 
        manufacturing facility that--
                    (A) recovers significant recyclable or reusable 
                material;
                    (B) can report on a verifiable carbon baseline that 
                is consistent with applicable reporting requirements; 
                and
                    (C) has an environmental, health and safety, and 
                quality management system (such as that of the 
                International Standards Organization or an equivalent) 
                that includes--
                            (i) goals to reduce the operational carbon 
                        baseline of the manufacturing facility per unit 
                        of material processed; or
                            (ii) evidence that the reuse of products 
                        processed serves to reduce carbon emissions.
            (4) Reuse facilities.--Funds under subsection (b)(5) may be 
        provided on a competitive basis to an existing reuse facility 
        that--
                    (A) processes reusable material to be used as a 
                replacement or substitute for a new product;
                    (B) can report on a verifiable carbon baseline; and
                    (C) has an environmental, health and safety, and 
                quality management system (such as that of the 
                International Standards Organization or an equivalent) 
                that includes goals to reduce the operational carbon 
                baseline of the reuse facility per unit of material 
                processed, or evidence that the reuse of products 
                processed serves to reduce carbon emissions.
    (d) Reporting.--Each State that distributes funds under this 
section shall submit to the Administrator, in accordance with such 
requirements as the Administrator may prescribe, a report that 
includes--
            (1) a list of entities receiving funding under this 
        section, including entities receiving such funding from units 
        of local government pursuant to subsection (b)(2);
            (2) the amount of funding received by each such recipient;
            (3) the specific purposes for which the funding was 
        conveyed to each such recipient; and
            (4) documentation of the quantity of net recyclable 
        materials and reusable products that were collected and 
        processed and greenhouse gas emissions that were reduced or 
        avoided accordingly, through use of the funding, based on a 
        lifecycle calculation developed by the Administrator.
    (e) Methodology and Decisionmaking.--The Administrator, as 
appropriate--
            (1) shall develop and periodically update lifecycle methods 
        to quantify the relationship between waste management 
        decisions, including recycling, reuse, and waste reduction, 
        greenhouse gas reductions, and energy use reductions, for 
        purposes that include--
                    (A) helping to support decisions under Federal, 
                State, and municipal recycling, reuse, and waste 
                management programs, including--
                            (i) estimating greenhouse gas and energy 
                        benefits of expanding recycling and reuse 
                        programs;
                            (ii) comparing the benefits of recycling, 
                        reuse, and waste reduction to other greenhouse 
                        gas and energy use reduction strategies;
                            (iii) optimizing waste management 
                        strategies to maximize greenhouse gas 
                        reductions and energy use reductions; and
                            (iv) public education; and
                    (B) designing products to optimize waste reduction, 
                reuse, and recycling opportunities and use of recycled 
                materials in the manufacturing process;
            (2) may collect data to support the development of the 
        methods described in paragraph (1); and
            (3) to improve national consistency, shall, in consultation 
        with appropriate State and local representatives and municipal 
        recycling programs, identify best practices to promote 
        improvement in, and support State efforts in improving, 
        municipal recycling, reuse, and resource recovery programs.

SEC. 155. SUPPLEMENTAL AGRICULTURE, ABANDONED MINE LAND, AND FORESTRY 
              GREENHOUSE GAS REDUCTION AND RENEWABLE ENERGY PROGRAM.

    (a) Agricultural Greenhouse Gas Reductions.--
            (1) Establishment.--
                    (A) In general.--The Secretary of Agriculture 
                (referred to in this section as the ``Secretary''), in 
                coordination with the Secretary of the Interior, shall 
                establish a Greenhouse Gas Reduction Incentives Program 
                (referred to in this section as the ``program'') to 
                provide financial assistance to owners and operators of 
                agricultural land (including land on which specialty 
                crops are produced and private or public land used for 
                grazing), private or public abandoned mine land, and 
                forest land for projects and activities that measurably 
                increase carbon sequestration or reduce greenhouse gas 
                emissions.
                    (B) Shared authority.--The Secretary shall delegate 
                to the Secretary of the Interior the authority to carry 
                out projects on land under the jurisdiction of or 
                operated by the Department of the Interior.
            (2) Priority.--In carrying out the program, the Secretary 
        shall give priority to projects or activities that--
                    (A) reduce greenhouse gas emissions or increase 
                sequestration of greenhouse gases, and achieve 
                significant other environmental benefits, such as the 
                improvements of water or air quality or natural 
                resources in agricultural, abandoned mine land, and 
                forestry operations; and
                    (B) reduce greenhouse gas emissions or sequester 
                carbon in agricultural and forestry operations where 
                there are limited recognized opportunities to achieve 
                such emission reductions or sequestration.
            (3) Eligible projects and activities.--Eligible projects 
        and payments shall include those that--
                    (A) reflect the comparable amount that the owners 
                or operators would receive in the offset market if not 
                for compliance with environmental laws that preclude 
                the owners and operators from being eligible for 
                receiving an offset credit under a Federal law enacted 
                for the purpose of regulating greenhouse gas emissions;
                    (B) provide greenhouse gas emission benefits, but 
                do not receive an offset credit or qualify for an early 
                action allowance under a Federal law enacted for the 
                purpose of regulating greenhouse gas emissions, 
                including projects and activities that provide an 
                opportunity to demonstrate and test new or uncertain 
                methods to reduce or sequester emissions;
                    (C) reward early adopters, including producers that 
                practice no-till agriculture, and ensure that 
                individuals and entities that took action prior to the 
                implementation of a Federal law enacted for the purpose 
                of regulating greenhouse gas emissions are not placed 
                at a competitive disadvantage, including giving 
                consideration to owners or operators located in 
                jurisdictions with more stringent environmental laws 
                (including regulations), compliance with which 
                precludes the owners or operators from participating 
                such an offset market;
                    (D) provide incentives for supplemental greenhouse 
                gas emission reductions on private and public forest 
                land of the United States;
                    (E) prevent conversion of land, including native 
                grassland, native prairie, rangeland, cropland, or 
                forested land, that would increase greenhouse gas 
                emissions or a loss of carbon sequestration;
                    (F) promote the recovery and reuse of abandoned 
                mine land that otherwise would increase greenhouse gas 
                emissions or cause a loss of carbon sequestration, 
                provided that not more than 5 percent of the total 
                value of the forms of assistance provided under the 
                program for each year shall be used for the projects 
                and activities described in this subparagraph; or
                    (G) support action on Federal, State, or tribal 
                land that encourages improvements and management 
                practices that include carbon sequestration benefits.
            (4) Requirement.--Financial incentives and support provided 
        by the Secretary for a project or activity under this section 
        shall, to the maximum extent practicable, be directly 
        proportional to the quantity and duration of greenhouse gas 
        emissions reduced or carbon sequestered.
            (5) Other projects.--The Secretary shall consider projects 
        and activities that complement and leverage existing 
        conservation, forestry, and energy program expenditures to 
        provide measurable emission reduction and sequestration 
        benefits that otherwise may not take place or continue to 
        exist.
            (6) Eligibility.--An owner or operator shall not be 
        prohibited from participating in the program established under 
        this section due to participation of the owner or operator in 
        other Federal or State conservation or agricultural assistance 
        programs.
            (7) Forms of assistance.--The Secretary may use any of the 
        following to provide assistance under this section:
                    (A) Permanent conservation easements, for which the 
                Secretary shall give priority in providing assistance 
                under this section.
                    (B) Carbon sequestration or carbon mitigation 
                contracts between the owner or operator and the 
                Secretary for the performance of projects or activities 
                that provide a measurable reduction in greenhouse gas 
                emissions or sequester carbon.
                    (C) Financial incentives through land management 
                contracts or agreements, including timber sale, 
                service, or stewardship contracts.
                    (D) Financial incentives through grazing contracts.
                    (E) Grants.
                    (F) Such other forms of assistance as the Secretary 
                determines to be appropriate.
            (8) Reversals.--The Secretary shall specify methods to 
        address intentional or unintentional reversal of carbon 
        sequestration or greenhouse gas emission reductions that occur 
        during the term of a contract or easement under this section.
            (9) Accounting systems.--In carrying out this section, the 
        Secretary shall develop and implement--
                    (A) a national accounting system for carbon stocks, 
                sequestration, and greenhouse gas emissions that may be 
                used to assess progress in implementing this section at 
                a national level; and
                    (B) credible reporting and accounting systems to 
                ensure that incentives provided under this section are 
                achieving stated objectives.
            (10) Program measurement, monitoring, and verification.--
        The Secretary, in consultation with the Administrator--
                    (A) shall establish and implement protocols that 
                provide reasonable monitoring and verification of 
                compliance with terms associated with assistance 
                provided under this section, including field sampling 
                of actual performance, to develop annual estimates of 
                emission reductions achieved under the program;
                    (B) shall report annually the total number of tons 
                of carbon dioxide sequestered or the total number of 
                tons of emissions avoided through incentives provided 
                under this section; and
                    (C) not later than 2 years after the date of 
                enactment of this Act, and at least every 18 months 
                thereafter, submit to Congress and make available to 
                the public on the website of the Department of 
                Agriculture a report that includes--
                            (i) an estimate of annual and cumulative 
                        reductions generated through the program under 
                        this section, determined using standardized 
                        measures (including economic efficiency); and
                            (ii) a summary of any changes to the 
                        program, in accordance with this section, that 
                        will be made as a result of program 
                        measurement, monitoring, and verification 
                        conducted under this section.
    (b) Research Program.--The Secretary shall establish by rule a 
program to conduct research to develop additional projects and 
activities for crops to find additional techniques and methods to 
reduce greenhouse gas emissions or sequester greenhouse gases that may 
or may not meet criteria for a Federal law enacted for the purpose of 
regulating greenhouse gas emissions.

SEC. 156. ECONOMIC DEVELOPMENT CLIMATE CHANGE FUND.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended by adding 
at the end the following:

``SEC. 219. ECONOMIC DEVELOPMENT CLIMATE CHANGE FUND.

    ``(a) In General.--On the application of an eligible recipient, the 
Secretary may provide technical assistance, make grants, enter into 
contracts, or otherwise provide amounts for projects--
            ``(1) to promote energy efficiency to enhance economic 
        competitiveness;
            ``(2) to increase the use of renewable energy resources to 
        support sustainable economic development and job growth;
            ``(3) to support the development of conventional energy 
        resources to produce alternative transportation fuels, 
        electricity and heat;
            ``(4) to develop energy efficient or environmentally 
        sustainable infrastructure;
            ``(5) to promote environmentally sustainable economic 
        development practices and models;
            ``(6) to support development of energy efficiency and 
        alternative energy development plans, studies or analysis, 
        including enhancement of new and existing Comprehensive 
        Economic Development Strategies funded under this Act; and
            ``(7) to supplement other Federal grants, loans, or loan 
        guarantees for purposes described in paragraphs (1) through 
        (6).
    ``(b) Federal Share.--The Federal share of the cost of any project 
carried out under this section shall not exceed 80 percent, except that 
the Federal share of a Federal grant, loan, or loan guarantee provided 
under subsection (a)(7) may be 100 percent.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2009 through 2013, to remain available until expended.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3141 et seq.)is amended by inserting after the item relating 
to section 218 the following:

``Sec. 219. Economic Development Climate Change Fund.''.

SEC. 157. STUDY OF RISK-BASED PROGRAMS ADDRESSING VULNERABLE AREAS.

    (a) In General.--The Administrator, or the heads of such other 
Federal agencies as the President may designate, shall conduct a study 
and, not later than 2 years after the date of enactment of this Act, 
submit to Congress a report regarding risk-based policies and programs 
addressing vulnerable areas.
    (b) Requirements.--The report shall
            (1) review and assess Federal predisaster mitigation, 
        emergency response, and flood insurance policies and programs 
        that affect areas vulnerable to the impacts of climate change;
            (2) describe strategies for better addressing such 
        vulnerabilities and provide implementation recommendations;
            (3) assess whether the policies and programs described in 
        paragraph (1) support the State and tribal response and 
        adaptation goals and objectives identified under this Act;
            (4) identify, and make recommendations to resolve, 
        inconsistencies in Federal policies and programs in effect as 
        of the date of enactment of this Act that address areas 
        vulnerable to climate change; and
            (5) identify annual cost savings to the Federal Government 
        associated with the implementation of the strategies and 
        recommendations contained in the report.

SEC. 158. EFFICIENT BUILDINGS PROGRAM.

    (a) In General.--The Administrator shall establish and carry out a 
program, to be known as the ``Efficient Buildings Program'', to achieve 
greenhouse gas reductions by providing assistance to owners of 
buildings in the United States as a reward for--
            (1) constructing highly efficient buildings in the United 
        States; or
            (2) increasing the efficiency of existing buildings in the 
        United States.
    (b) Requirements.--The Administrator shall provide assistance under 
this section to owners of buildings in the United States based on the 
extent to which projects relating to the buildings of the owners result 
in verifiable, additional, and enforceable improvements in energy 
performance--
            (1) in new or renovated buildings that demonstrate 
        exemplary performance by achieving--
                    (A) a minimum score of 75 on the benchmarking tool 
                of the Energy Star program established by section 324A 
                of the Energy Policy and Conservation Act (42 U.S.C. 
                6294a); or
                    (B) an equivalent score on an established energy 
                performance benchmarking metric selected by the 
                Administrator; and
            (2) in retrofitted existing buildings that demonstrate--
                    (A) substantial improvement in the score or rating 
                on the benchmarking tool described in paragraph (1)(A) 
                by a minimum of 30 points; or
                    (B) an equivalent improvement using an established 
                performance benchmarking metric selected by the 
                Administrator.
    (c) Priority.--In providing assistance under this section, the 
Administrator shall give priority to projects--
            (1) completed by building owners with a proven track record 
        of building energy performance; or
            (2) that result in measurable greenhouse gas reduction 
        benefits not encompassed within the metrics of the Energy Star 
        program described in subsection (b)(1)(A).

           Subtitle F--Energy Efficiency and Renewable Energy

SEC. 161. RENEWABLE ENERGY.

    (a) Definitions.--In this section:
            (1) Renewable energy.--The term ``renewable energy'' means 
        electric energy generated from solar, wind, biomass, landfill 
        gas, ocean (including tidal, wave, current, and thermal), 
        geothermal, municipal solid waste, or new hydroelectric 
        generation capacity achieved from increased efficiency or 
        additions of new capacity at an existing hydroelectric project.
            (2) Renewable portfolio standard.--The term ```renewable 
        portfolio standard''' means a state statute that requires 
        electricity providers to obtain a minimum percentage of their 
        power from renewable energy resources by a certain date.
    (b) Grants.--The Administrator, in consultation with the 
Secretaries of Energy, Interior, and Agriculture, may provide grants 
for projects to increase the quantity of energy a State uses from 
renewable sources under State renewable portfolio standard laws.
    (c) Eligibility.--The Administrator shall review for approval 
projects applications that are--
            (1) submitted by State and local governments, Indian 
        tribes, public utilities, regional energy cooperatives, or 
        individual energy producers from states with a binding 
        Renewable Portfolio Standard; or
            (2) submitted by State and local governments, Indian 
        tribes, public utilities, or regional energy cooperatives from 
        states with nonbinding goals for adoption of renewable energy 
        requirements.
    (d) Priority.--The Administrator shall give priority to project 
applications that are--
            (1) submitted by States with a binding renewable portfolio 
        standard;
            (2) cost-effective in achieving greater renewable energy 
        production in each State.
    (e) Certification.--
            (1) In general.--The Administrator shall notify in writing 
        the Governor of each eligible State as described in section (c) 
        at the time at which the Administrator begins review of a 
        project application received from an eligible entity within the 
        State.
            (2) Certification.--The Governor shall certify in writing 
        within 30 days of receipt of the Administrator's notification 
        described in subsection (1) that the project application--
                    (A) will assist the State in reaching renewable 
                portfolio standard targets under applicable state laws; 
                and
                    (B) has secured non-Federal funding sources that, 
                in conjunction with the requested grant amount, will be 
                sufficient to complete the renewable energy project.
    (f) Rulemaking.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall initiate 
        rulemaking procedures necessary to implement this section.
            (2) Final rules; acceptance of applications.--Not later 
        than 90 days after the close of the public comment period 
        relating to the rulemaking described in paragraph (1), the 
        Administrator shall--
                    (A) promulgate final regulations to carry out this 
                section; and
                    (B) begin accepting project applications for 
                review.
    (g) Reporting.--Not later than 180 days after the date of enactment 
of this Act, and every 180 days thereafter, the Administrator shall 
submit 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 specifying, with respect to the program under this 
section--
            (1) the project applications received;
            (2) the project applications approved;
            (3) the amount of funding allocated per project; and
            (4) the cumulative benefits of the grant program.
    (h) Grant Amount.--A grant provided under this section may be in an 
amount that does not exceed 50 percent of the total cost of the 
renewable energy project to be funded by the grant.
    (i) Authorization.--There are authorized to be appropriated such 
sums as are necessary to carry out this section.

SEC. 162. ADVANCED BIOFUELS.

    (a) Findings.--Congress finds that--
            (1) advanced, environmentally sustainable biofuels can help 
        promote a safe, secure, and domestic source of low-carbon fuel;
            (2) such biofuels can--
                    (A) benefit consumers and farmers;
                    (B) assist in maintaining fuel supplies; and
                    (C) help to keep commodity prices affordable;
            (3) a coordinated research and development effort is needed 
        to help accelerate commercial-scale development of advanced, 
        environmentally sustainable biofuels; and
            (4) facilitating the commercial production of advanced, 
        environmentally sustainable biofuels can help to make the 
        United States a leader in developing new fuel technologies.
    (b) Definitions.--In this section:
            (1) Advanced green biofuel.--The term ``advanced green 
        biofuel'' means an advanced biofuel (as defined in section 
        211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1))) that the 
        Administrator determines--
                    (A) has lifecycle greenhouse gas emissions that are 
                at least 60 percent less than the baseline lifecycle 
                greenhouse gas emissions;
                    (B) is made from advanced renewable biomass; and
                    (C) minimizes biorefinery water requirements to the 
                maximum extent achievable, taking into consideration 
                costs and other appropriate factors.
            (2) Advanced renewable biomass.--The term ``advanced 
        renewable biomass'' means renewable biomass that is produced 
        using sustainable practices, as determined by the 
        Administrator, in consultation with the Secretary of 
        Agriculture, taking into consideration factors such as--
                    (A) the maintenance and enhancement of the quality 
                and productivity of the soil;
                    (B) the conservation of soil, water, energy, 
                natural resources, and fish and wildlife habitat;
                    (C) the maintenance and enhancement of the quality 
                of surface water and groundwater;
                    (D) the protection of the health and safety of 
                individuals involved in the production system;
                    (E) the promotion of the well-being of animals;
                    (F) the increase in employment opportunities in the 
                agricultural sector; and
                    (G) prevention of the introduction of invasive 
                species, including consideration of a review by the 
                Invasive Species Council established by Executive Order 
                13112 (64 Fed. Reg. 6183 (February 3, 1999)).
            (3) Program.--The term ``Program'' means the 1,000,000,000-
        Gallon Challenge Grant Program established under subsection 
        (c)(1).
            (4) Renewable biomass.--The term ``renewable biomass'' has 
        the meaning given the term in section 211(o)(1) of the Clean 
        Air Act (42 U.S.C. 7545(o)(1)).
    (c) 1,000,000,000-Gallon Challenge Grant Program.--
            (1) Establishment.--The Administrator shall establish 
        within the Environmental Protection Agency a program, to be 
        known as the ``1,000,000,000-Gallon Challenge Grant Program'', 
        under which the Administrator shall provide grants in 
        accordance with this subsection.
            (2) Applications.--
                    (A) In general.--During each calendar year for the 
                period described in subparagraph (B), the Administrator 
                shall solicit applications for grants under the Program 
                from owners and operators of projects that, as 
                determined by the Administrator, have the potential, in 
                the aggregate, to produce up to 500,000,000 gallons in 
                annual domestic production capacity of advanced green 
                biofuels.
                    (B) Description of period.--The period referred to 
                in subparagraph (A) is the period that--
                            (i) begins on the date of establishment of 
                        the Program; and
                            (ii) ends on the date on which, as 
                        determined by the Administrator, the Program 
                        supports projects that have the potential to 
                        produce, or are producing, not less than 
                        1,000,000,000 gallons in annual domestic 
                        production capacity of advanced green biofuels.
                    (C) Adjustments.--
                            (i) Definition of adjustment period.--In 
                        this subparagraph, the term ``adjustment 
                        period'' means the period that--
                                    (I) begins on the date of 
                                establishment of the Program; and
                                    (II) ends on the earlier of, as 
                                determined by the Administrator--
                                            (aa) the date on which the 
                                        Program supports projects that 
                                        have the potential to produce, 
                                        or are producing, not less than 
                                        1,000,000,000 gallons in annual 
                                        domestic production capacity of 
                                        advanced green biofuels; and
                                            (bb) the date on which the 
                                        Program achieves the annual 
                                        domestic production capacity 
                                        targets of the Program.
                            (ii) Solicitation of applications.--For any 
                        calendar year during the adjustment period for 
                        which an application for a grant under the 
                        Program is withdrawn, or for which a recipient 
                        of a grant under the Program fails to meet the 
                        domestic production capacity targets of the 
                        recipient (as determined by the Administrator), 
                        the Administrator shall solicit additional 
                        applications for grants under the Program.
                    (D) Application policy.--The grant solicitation 
                process of the Program shall provide for, as determined 
                by the Administrator--
                            (i) simplified, standardized, and timely 
                        solicitation of applications; and
                            (ii) a simplified, standardized funding 
                        process that requires--
                                    (I) timely receipt and review of 
                                applications; and
                                    (II) protection of proprietary 
                                information provided in applications.
            (3) Types of grants.--In carrying out the Program, the 
        Administrator shall provide 4 types of grants, as follows:
                    (A) Research and development grants.--
                            (i) In general.--A research and development 
                        grant may be provided under the Program to a 
                        project that, as determined by the 
                        Administrator, will assist biofuel developers 
                        in producing advanced green biofuels by 
                        facilitating--
                                    (I) the development of technologies 
                                to produce advanced green biofuels;
                                    (II) the creation of technologies 
                                used in facilities that produce 
                                advanced green biofuels; or
                                    (III) the production of advanced 
                                green biofuels, including renewable 
                                biomass.
                            (ii) Limitation.--The amount of a research 
                        and development grant provided under the 
                        Program shall not exceed the lesser of--
                                    (I) an amount equal to 80 percent 
                                of the cost of the project; or
                                    (II) $2,000,000.
                    (B) Planning grants.--
                            (i) In general.--A planning grant may be 
                        provided under the Program to a project that, 
                        as determined by the Administrator, will assist 
                        biofuel developers in producing advanced green 
                        biofuels by facilitating the development and 
                        finalization of project plans and contracts 
                        that demonstrate that--
                                    (I) the project has the potential 
                                for commercial viability; and
                                    (II) the project is likely to be 
                                operational by not later than 3 years 
                                after the date on which the planning 
                                grant is provided.
                            (ii) Limitation.--The amount of a planning 
                        grant provided under the Program shall not 
                        exceed the lesser of--
                                    (I) an amount equal to 80 percent 
                                of the cost of the project; or
                                    (II) $2,000,000.
                    (C) Translational grants.--
                            (i) In general.--A translational grant, 
                        which helps to create successful technological 
                        innovations and the commercial use of those 
                        innovations, may be provided under the Program 
                        to a project that, as determined by the 
                        Administrator will assist biofuel developers in 
                        producing advanced green biofuels, including 
                        from the development of a basic proof-of-
                        concept for the project to the establishment of 
                        a pilot-scale advanced green biofuel production 
                        facility through a phased process, as described 
                        in clause (ii).
                            (ii) Phases.--The phases referred to in 
                        clause (i) are the following:
                                    (I) Phase i.--A project shall be 
                                considered to be in phase I for 
                                purposes of this subparagraph if the 
                                purpose of the project is to determine 
                                the scientific and technical merit and 
                                feasibility of ideas that appear to 
                                have commercial potential, as described 
                                in subclause (II).
                                    (II) Phase ii.--A project shall be 
                                considered to be in phase II for 
                                purposes of this subparagraph if the 
                                purpose of the project is to advance 
                                the development of a project that meets 
                                particular Program needs, based on the 
                                scientific and technical merit and 
                                feasibility demonstrated in the 
                                application for the project (as 
                                evidenced by phase I of the project), 
                                taking into consideration, among other 
                                things, the commercial potential of the 
                                project, as evidenced by--
                                            (aa) the record of success 
                                        of the applicable biofuel 
                                        developer in commercializing 
                                        the results of research;
                                            (bb) the existence of phase 
                                        II-appropriate funding 
                                        commitments from the private 
                                        sector or a funding source 
                                        other than the Program;
                                            (cc) the existence of 
                                        commitments for phase III of 
                                        the project; and
                                            (dd) the presence of other 
                                        indicators of the commercial 
                                        potential of the project.
                                    (III) Phase iii.--A project shall 
                                be considered to be in phase III for 
                                purposes of this clause if--
                                            (aa) the project has 
                                        completed phases I and II; and
                                            (bb) commercial application 
                                        of, or the continuation of work 
                                        on, the project will be funded 
                                        by the private sector or a 
                                        funding source other than the 
                                        Program.
                            (iii) Limitation.--The amount of a 
                        translational grant provided under the Program 
                        shall not exceed the lesser of--
                                    (I) an amount equal to 80 percent 
                                of the cost of the project; or
                                    (II) $8,000,000.
                    (D) Construction grants.--
                            (i) In general.--A construction grant may 
                        be provided under the Program to a project 
                        that, as determined by the Administrator--
                                    (I) will assist biofuel developers 
                                in producing advanced green biofuels by 
                                paying construction costs and other 
                                costs;
                                    (II) demonstrates the potential for 
                                commercial success; and
                                    (III) will commence construction by 
                                not later than 1 year after the date on 
                                which the construction grant is 
                                provided.
                            (ii) Limitation.--The amount of a 
                        construction grant provided under the Program 
                        shall not exceed an amount equal to 60 percent 
                        of the cost of the project.
            (4) Selection.--
                    (A) Research and development grants.--In evaluating 
                applications for research and development grants under 
                the Program, the Administrator shall take into 
                consideration--
                            (i) the potential of a project for 
                        commercial viability;
                            (ii) the potential of the project to 
                        provide environmental and public health 
                        benefits;
                            (iii) the potential of the project to use 
                        existing fuel delivery and distribution 
                        systems; and
                            (iv) such other factors as the 
                        Administrator determines to be appropriate.
                    (B) Planning grants.--In evaluating applications 
                for planning grants under the Program, the 
                Administrator shall take into consideration--
                            (i) the potential of a project for 
                        commercial viability;
                            (ii) the potential of the project to 
                        provide environmental and public health 
                        benefits;
                            (iii) the potential of the project to use 
                        existing fuel delivery and distribution 
                        systems;
                            (iv) the scalability of the project; and
                            (v) such other factors as the Administrator 
                        determines to be appropriate.
                    (C) Translational grants.--In evaluating 
                applications for translational grants under the 
                Program, the Administrator shall take into 
                consideration--
                            (i) the potential of a project for 
                        commercial viability;
                            (ii) the potential of the project to 
                        provide environmental and public health 
                        benefits;
                            (iii) the potential of the project to use 
                        existing fuel delivery and distribution 
                        systems;
                            (iv) the scalability of the project; and
                            (v) such other factors as the Administrator 
                        determines to be appropriate.
                    (D) Construction grants.--In evaluating 
                applications for construction grants under the Program, 
                the Administrator shall take into consideration--
                            (i) the potential of a project for 
                        commercial success;
                            (ii) the potential of the project to 
                        provide environmental and public health 
                        benefits;
                            (iii) the potential of the project to use 
                        existing fuel delivery and distribution 
                        systems;
                            (iv) the scalability of the project;
                            (v) the readiness of the project to 
                        commence construction by not later than 1 year 
                        after the date on which the construction grant 
                        is provided; and
                            (vi) such other factors as the 
                        Administrator determines to be appropriate.
                    (E) Exercise of discretion in funding projects.--
                The Administrator shall not exclude an application from 
                consideration under this paragraph solely on the basis 
                that the project that is the subject of the application 
                uses, or proposes to use, any item described in section 
                211(o)(1)(I) of the Clean Air Act (42 U.S.C. 
                7545(o)(1)(I)).
            (5) Coordination with complementary programs.--
                    (A) Definition of complementary program.--In this 
                paragraph, the term ``complementary program'' means a 
                grant program under any other provision of law 
                (including a regulation) under which a recipient of a 
                grant under the Program receives, or has the potential 
                to receive, funds to assist the project of the 
                recipient to achieve environmental performance 
                standards equivalent to, or greater than, the standards 
                required under the Program.
                    (B) Effect of program.--
                            (i) In general.--A grant provided to a 
                        recipient under the Program--
                                    (I) shall be provided in addition 
                                to any grant provided to the recipient 
                                under a complementary program; and
                                    (II) shall not be diminished as a 
                                result of receipt by the recipient of 
                                funds under any complementary program.
                            (ii) Amount of other grants.--Receipt of a 
                        grant under the Program shall not affect the 
                        amount the recipient is otherwise eligible to 
                        receive under any complementary program.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for the period of 
fiscal years 2010 through 2014.

SEC. 163. ENERGY EFFICIENCY IN BUILDING CODES.

    (a) Energy Efficiency Targets.--
            (1) Rulemaking to establish targets.--The Administrator, or 
        such other agency head or heads as may be designated by the 
        President, in consultation with the Director of the National 
        Institute of Standards and Technology, shall promulgate 
        regulations establishing building code energy efficiency 
        targets for the national average percentage improvement of 
        buildings' energy performance. Such regulations shall establish 
        a national building code energy efficiency target for 
        residential buildings and commercial buildings when built to a 
        code meeting the target, beginning not later than January 1, 
        2014 and applicable each calendar year through December 31, 
        2030.
    (b) National Energy Efficiency Building Codes.--
            (1) Rulemaking to establish national codes.--The 
        Administrator, or such other agency head or heads as may be 
        designated by the President, shall promulgate regulations 
        establishing national energy efficiency building codes for 
        residential and commercial buildings. Such regulations shall be 
        sufficient to meet the national building code energy efficiency 
        targets established under subsection (a) in the most cost-
        effective manner, and may include provisions for State adoption 
        of the national building code standards and certification of 
        State programs
    (c) Annual Reports.--The Administrator, or such other agency head 
or heads as may be designated by the President, shall annually submit 
to Congress, and publish in the Federal Register, a report on--
            (1) the status of national energy efficiency building 
        codes;
            (2) the status of energy efficiency building code adoption 
        and compliance in the States;
            (3) the implementation of and compliance with regulations 
        promulgated under this section;
            (4) the status of Federal and State enforcement of building 
        codes; and
            (5) impacts of action under this section, and potential 
        impacts of further action, on lifetime energy use by buildings, 
        including resulting energy and cost savings.

SEC. 164. RETROFIT FOR ENERGY AND ENVIRONMENTAL PERFORMANCE.

    (a) Definitions.--In this section:
            (1) Assisted housing.--The term ``assisted housing'' means 
        those properties receiving project-based assistance pursuant to 
        section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), 
        section 811 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 8013), section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f), or similar programs.
            (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.
            (3) Operations and maintenance.--The term ``operations and 
        maintenance'' means any service performed by staff within a 
        building to upgrade and maintain the building in order to 
        reduce the energy demand of the building while maintaining or 
        improving building comfort, health, safety, and performance.
            (4) 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.
            (5) 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.
            (6) Public housing.--The term ``public housing'' means 
        properties receiving assistance under section 9 of the United 
        States Housing Act of 1937 (42 U.S.C. 1437g).
            (7) 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 (42 U.S.C. 8253(f)(1)).
            (8) REEP program.--The term ``REEP program'' means, 
        collectively, the programs to implement the residential and 
        nonresidential policies based on the standards developed under 
        this section, as described in subsection (b).
            (9) 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.
            (10) State energy program.--The term ``State Energy 
        Program'' means the program under part D of title III of the 
        Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
    (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.
    (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.
    (d) Federal Administration.--
            (1) Existing programs.--In creating and operating the REEP 
        program--
                    (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; and
                    (B) the Administrator shall consult with the 
                Secretary of Energy regarding 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 (42 U.S.C. 
                17081).
            (2) Consultation and coordination.--The Administrator shall 
        consult with and coordinate with the and the Secretary of 
        Energy and 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. Owners of public housing or assisted 
        housing receiving funding through the REEP program shall agree 
        to continue to provide affordable housing consistent with the 
        provisions of the authorizing legislation governing each 
        program for an additional period commensurate with the funding 
        received, as determined in accordance with guidelines 
        established by the Secretary of Housing and Urban Development.
            (3) Assistance.--The Administrator 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.
    (e) State and Local Administration.--
            (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 assistance 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.
            (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.
            (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.
    (f) Administration of Indian Housing.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Energy, in consultation 
        with Indian tribes, the Department of Housing and Urban 
        Development, the Department of the Interior, and the Department 
        of Health and Human Services, shall establish a program and 
        promulgate such regulations as are necessary to assist Indian 
        tribes in carrying out energy efficiency retrofit programs in 
        accordance with this section.
            (2) Review of existing programs.--In carrying out paragraph 
        (1), to determine the extent to which programs in effect as of 
        the date of enactment of this Act may be used to further the 
        REEP program for the benefit of Indian tribes, the Secretary of 
        Energy shall review those programs, including--
                    (A) the Weatherization Assistance Program for Low-
                Income Persons established under part A of title IV of 
                the Energy Conservation and Production Act (42 U.S.C. 
                6861 et seq.);
                    (B) programs under the Native American Housing 
                Assistance and Self-Determination Act of 1996 (25 
                U.S.C. 4101 et seq.);
                    (C) the Housing Improvement Program of the 
                Department of the Interior; and
                    (D) the low-income home energy assistance program 
                established under the Low-Income Home Energy Assistance 
                Act of 1981 (42 U.S.C. 8621 et seq.).
    (g) 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:
            (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.
            (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.
            (3) BPI or Building Operator Certification or licensing of 
        residential and nonresidential building operators, 
        superintendents, and handypersons, or an equivalent 
        certification or licensing system, as determined by the 
        Administrator.
            (4) 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).
            (5) Provision of clear and effective materials to describe 
        the testing and retrofit processes for typical buildings.
            (6) Guidelines for offering and managing prescriptive 
        building retrofit programs and performance-based building 
        retrofit programs for residential and nonresidential buildings.
            (7) Guidelines for applying recommissioning, 
        retrocommissioning, and operations and maintenance principles 
        to continuously improve the energy performance of a building.
            (8) 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.
            (9) Determination of energy savings in a performance-based 
        building retrofit program through--
                    (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;
                    (B) for nonresidential buildings, Environmental 
                Protection Agency Portfolio Manager benchmarks; or
                    (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.
            (10) 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.
            (11) Requirements and guidelines for post-retrofit 
        inspection and confirmation of work and energy savings.
            (12) 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.
            (13) Guidance on opportunities for--
                    (A) rating or certifying retrofitted buildings as 
                Energy Star buildings, or as green buildings under a 
                recognized green building rating system;
                    (B) assigning Home Energy Rating System (HERS) or 
                similar ratings; and
                    (C) completing any applicable building performance 
                labels.
            (14) Sample materials for publicizing the program to 
        building owners, including public service announcements and 
        advertisements.
            (15) 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.
    (h) Requirements.--As a condition of receiving assistance for the 
REEP program pursuant to this Act, a State or qualifying local 
government shall--
            (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;
            (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; and
            (3) agree to make 10 percent of assistance received to 
        carry out this section available on a preferential basis for 
        retrofit projects proposed for public housing and assisted 
        housing, provided that--
                    (A) none of such funds shall be used for demolition 
                of such housing;
                    (B) such retrofits not shall not be used to justify 
                any increase in rents charged to residents of such 
                housing; and
                    (C) owners of such housing shall agree to continue 
                to provide affordable housing consistent with the 
                provisions of the authorizing legislation governing 
                each program for an additional period commensurate with 
                the funding received; and
            (4) 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.
    (i) Options to Support Reep Program.--The assistance provided under 
this section 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--
            (1) implementing prescriptive building retrofit programs 
        and performance-based building retrofit programs;
            (2) providing credit enhancement, interest rate subsidies, 
        loan guarantees, or other credit support;
            (3) providing initial capital for public revolving fund 
        financing of retrofits;
            (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;
            (5) providing funds to local government programs to provide 
        REEP services and financial assistance; and
            (6) other means proposed by State and local agencies, 
        subject to the approval of the Administrator.
    (j) Support for Program.--
            (1) Initial award limits.--Except as provided in paragraph 
        (2), 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 made 
        available to carry out this section, in amounts not to exceed 
        the following amounts per unit:
                    (A) Residential building program.--
                            (i) Awards.--For residential buildings--
                                    (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;
                                    (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;
                                    (III) $3,000 for demonstrated 
                                savings of 20 percent, pursuant to a 
                                performance-based building retrofit 
                                program; and
                                    (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).
                        Funding shall not be provided under clauses 
                        (II) and (III) for the same energy savings.
                            (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.
                            (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 7 
                        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.
                    (B) Nonresidential building program.--
                            (i) Awards.--For nonresidential buildings--
                                    (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;
                                    (II) $0.15 per square foot of 
                                retrofit area for demonstrated energy 
                                use reductions from 20 percent to 30 
                                percent;
                                    (III) $0.75 per square foot for 
                                demonstrated energy use reductions from 
                                30 percent to 40 percent;
                                    (IV) $1.60 per square foot for 
                                demonstrated energy use reductions from 
                                40 percent to 50 percent; and
                                    (V) $2.50 per square foot for 
                                demonstrated energy use reductions 
                                exceeding 50 percent.
                            (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.
                            (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:
                                    (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--
                                            (aa) $24.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 40 percent or 
                                        more;
                                            (bb) $27.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 50 percent or 
                                        more; and
                                            (cc) $30.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 60 percent or 
                                        more.
                                    (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.
                            (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.
                    (C) Disaster damaged buildings.--Any source of 
                funds, including Federal funds provided through the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act, shall qualify as the building owner's 
                50 percent contribution, in order to match the 
                contribution of REEP funds, so long as the REEP funds 
                are only used to improve the energy efficiency of the 
                buildings being reconstructed. In addition, the 
                appropriate Federal agencies providing assistance to 
                building owners through the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act shall make 
                information available, following a disaster, to 
                building owners rebuilding disaster damaged buildings 
                with assistance from the Act, that REEP funds may be 
                used for energy efficiency improvements.
                    (D) 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).
                    (E) Supplemental support.--State and local 
                governments may supplement the per-building 
                expenditures under this paragraph with funding from 
                other sources.
            (2) Adjustment.--The Administrator may adjust the specific 
        dollar amounts provided under paragraph (1) 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.
    (k) 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.
    (l) Operations and Maintenance.--Notwithstanding any other 
provision of this section, REEP funds may be used to provide training 
to building staff relating to energy-efficient operations and 
maintenance of residential and nonresidential buildings.

SEC. 165. CERTIFIED STOVES PROGRAM.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``Agency'' means the Environmental 
        Protection Agency.
            (2) Certified stove.--
                    (A) In general.--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.
                    (B) Inclusion.--The term ``certified stove'' 
                includes a pellet stove or fireplace insert that uses 
                pellets for fuel that are exempt from testing by the 
                Administrator but meet the same standards of 
                performance as wood stoves.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State, a local government, or a federally 
                recognized Indian tribe;
                    (B) an Alaskan Native village or regional or 
                village corporation (as defined in, or established 
                under, the Alaskan Native Claims Settlement Act (43 
                U.S.C. 1601 et seq.)); and
                    (C) a nonprofit organization or institution that--
                            (i) represents or provides pollution 
                        reduction or educational services relating to 
                        wood smoke minimization to persons, 
                        organizations, or communities; or
                            (ii) has, as the principal purpose of the 
                        organization or institution, the promotion of 
                        air quality or energy efficiency.
            (4) 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.
    (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 described in subsection 
(a)(2) by--
            (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 described in subsection 
        (a)(2);
            (2) requiring that no wood stove or pellet stove replaced 
        under the program is sold or returned to active service, but 
        that it is instead destroyed and recycled, to the maximum 
        extent practicable;
            (3) providing funds to an eligible entity to replace a wood 
        stove or pellet stove that does not meet the standards of 
        performance described in subsection (a)(2) with a certified 
        stove, including funds to pay for--
                    (A) installation of a replacement certified stove; 
                and
                    (B) necessary replacement of or repairs to 
                ventilation, flues, chimneys, or other applicable items 
                necessary for safe installation of a replacement 
                certified stove;
            (4) in addition to any funds that may be appropriated for 
        the program under this section, using existing Federal, State, 
        and local programs and incentives, to the maximum extent 
        practicable;
            (5) prioritizing the replacement of wood stoves or pellet 
        stoves manufactured before July 1, 1990; and
            (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 described in subsection (a)(2).
    (c) EPA Authority to Accept Wood Stove or Pellet Stove Replacement 
Supplemental Environmental Projects.--
            (1) In general.--Notwithstanding sections 1301 and 3302 of 
        title 31, United States Code, the Administrator may accept a 
        wood stove or pellet stove replacement supplemental 
        environmental project as part of a settlement of any alleged 
        violation of environmental law if the project--
                    (A) protects human health or the environment;
                    (B) is related to the underlying alleged violation;
                    (C) does not constitute activities that the 
                defendant would otherwise be legally required to 
                perform; and
                    (D) does not provide funds for the staff of the 
                Agency or for contractors to carry out the internal 
                operations of the Agency.
            (2) Certification.--
                    (A) In general.--In any settlement agreement 
                regarding an alleged violation of environmental law 
                under 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.
                    (B) Effect of omission.--A failure by the 
                Administrator to include the certification described in 
                subparagraph (A) in a settlement agreement shall not--
                            (i) create a cause of action against the 
                        United States under the Clean Air Act (42 
                        U.S.C. 7401 et seq.) or any other law; or
                            (ii) create a basis for overturning a 
                        settlement agreement entered into by the United 
                        States.
    (d) Regulations.--The Administrator may promulgate such regulations 
as are necessary to carry out the program established under subsection 
(b).
    (e) Funding.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out the program established under 
        subsection (b) $20,000,000 for the period of fiscal years 2010 
        through 2014.
            (2) Designated use.--Of amounts appropriated pursuant to 
        this subsection--
                    (A) 25 percent shall be designated for use to carry 
                out the program established under subsection (b) on 
                land held in trust for the benefit of a federally 
                recognized Indian tribe;
                    (B) 3 percent shall be designated for use to carry 
                out the program in Alaskan Native villages or regional 
                or village corporations (as defined in, or established 
                under, the Alaskan Native Claims Settlement Act (43 
                U.S.C. 1601 et seq.)); and
                    (C) 72 percent shall be designated for use to carry 
                out the program nationwide.
            (3) Regulatory programs.--
                    (A) In general.--No grant or loan provided under 
                subsection (b) shall be used to fund the costs of 
                emission reductions that are mandated under Federal, 
                State, or local law.
                    (B) Mandated measures.--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.

SEC. 166. RENEWABLE FUEL STANDARD.

    (a) Definitions.--Section 211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)(1)) is amended--
            (1) in subparagraph (B)(ii)(VII), by striking 
        ``cellulosic'' and inserting ``advanced green'';
            (2) by striking subparagraph (E);
            (3) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively; and
            (4) by inserting after subparagraph (B) the following:
                    ``(C) Advanced green biofuel.--The term `advanced 
                green biofuel' means renewable fuel that--
                            ``(i) is derived from renewable biomass; 
                        and
                            ``(ii) has lifecycle greenhouse gas 
                        emissions that are at least 60 percent less 
                        than the baseline lifecycle greenhouse gas 
                        emissions.''.
    (b) Standard.--Section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(i), by striking 
                ``cellulosic'' and inserting ``advanced green''; and
                    (B) in subparagraph (B)--
                            (i) in clause (i)(III)--
                                    (I) in the subclause heading, by 
                                striking ``Cellulosic'' and inserting 
                                ``Advanced green'';
                                    (II) by striking ``cellulosic'' and 
                                inserting ``advanced green''; and
                                    (III) in the heading of the right 
                                column, by striking ``cellulosic'' and 
                                inserting ``advanced green'';
                            (ii) in clause (ii)(III), by striking 
                        ``cellulosic'' and inserting ``advanced 
                        green''; and
                            (iii) in clause (iv)--
                                    (I) in the clause heading, by 
                                striking ``cellulosic'' and inserting 
                                ``advanced green''; and
                                    (II) by striking ``cellulosic'' and 
                                inserting ``advanced green'';
            (2) in paragraphs (3)(A), (4)(A), and (4)(B), by striking 
        ``cellulosic'' each place it appears and inserting ``advanced 
        green''; and
            (3) in paragraph (7)(D)--
                    (A) in the subparagraph heading, by striking 
                ``Cellulosic'' and inserting ``Advanced green''; and
                    (B) by striking ``cellulosic'' each place it 
                appears and inserting ``advanced green''.

SEC. 167. TREE PLANTING PROGRAMS.

    (a) Findings.--Congress finds that--
            (1) the utility sector is the largest single source of 
        greenhouse gas emissions in the United States, producing 
        approximately \1/3\ of the emissions of the United States;
            (2) heating and cooling of homes accounts for nearly 60 
        percent of residential electricity usage in the United States;
            (3) shade trees planted in strategic locations can reduce 
        residential cooling costs by as much as 30 percent;
            (4) shade trees are associated with significant clean air 
        benefits;
            (5) every group of 100 healthy large trees removes 
        approximately 300 pounds of air pollution (including 
        particulate matter and ozone) and approximately 15 tons of 
        carbon dioxide from the air each year;
            (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; and
            (7) in more than 12 test cities across the United States, 
        increasing urban tree cover has generated between $2 and $5 in 
        savings for every dollar invested in such tree planting.
    (b) Definitions.--In this section:
            (1) Retail power provider.--The term ``retail power 
        provider'' means any entity authorized under applicable Federal 
        or State law to generate, distribute, or provide retail 
        electricity, natural gas, or fuel oil service.
            (2) Small.--The term ``small'', with respect to an office, 
        means a nonresidential building or structure that is--
                    (A) zoned for business purposes; and
                    (B) not more than 20,000 square feet in total area.
            (3) Tree planting organization.--The term ``tree planting 
        organization'' means any nonprofit group that exists, in whole 
        or in part--
                    (A) to expand urban and residential tree cover;
                    (B) to distribute trees for planting;
                    (C) to increase awareness of the environmental and 
                energy-related benefits of trees;
                    (D) to educate the public regarding proper tree 
                planting, care, and maintenance strategies; or
                    (E) to carry out any combination of the activities 
                described in subparagraphs (A) through (D).
            (4) Tree siting guidelines.--The term ``tree siting 
        guidelines'' means a comprehensive list of science-based 
        measurements outlining--
                    (A) applicable species;
                    (B) the minimum distance required between trees 
                planted pursuant to this section; and
                    (C) the minimum required distance to be maintained 
                between those trees and--
                            (i) building foundations;
                            (ii) air conditioning units;
                            (iii) driveways and walkways;
                            (iv) property fences;
                            (v) preexisting utility infrastructure;
                            (vi) septic systems;
                            (vii) swimming pools; and
                            (viii) other infrastructure, as 
                        appropriate.
    (c) Purpose.--The purpose of this section is to establish a grant 
program to assist retail power providers in establishing and operating 
tree planting programs in residential and small office settings--
            (1) to reduce 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;
            (2) to reduce wintertime demand for energy from residences 
        and small office buildings by--
                    (A) blocking cold winds from reaching those 
                structures;
                    (B) lowering interior temperatures; and
                    (C) driving heating demand;
            (3) to protect public health by removing harmful pollution 
        from the air;
            (4) to use the natural photosynthetic and transpiration 
        process of trees to lower ambient temperatures and absorb 
        carbon dioxide, mitigating the effects of climate change;
            (5) to decrease the amounts of electric bills for 
        residential and small office ratepayers by limiting electricity 
        consumption without reducing benefits;
            (6) to relieve financial and demand pressure on retail 
        power providers that stems from large peak load energy demand;
            (7) to protect water quality and public health by reducing 
        stormwater runoff and keeping harmful pollutants from entering 
        waterways; and
            (8) to ensure that trees are planted in locations that 
        limit the amount of public funds required to maintain public 
        and electric infrastructure.
    (d) Assistance Program.--
            (1) In general.--The Administrator may provide financial, 
        technical, and related assistance to eligible retail power 
        providers to assist in establishing new, or operating existing, 
        tree planting programs for residences and small office 
        buildings.
            (2) Public recognition initiative.--In carrying out this 
        section, the Administrator shall establish a national public 
        recognition initiative to encourage participation in tree 
        planting programs by retail power providers.
            (3) Eligibility.--Only tree planting programs that use 
        targeted, strategic tree siting guidelines to plant trees in 
        relation to building location, sunlight, and prevailing wind 
        direction shall be eligible to receive assistance under this 
        section.
            (4) Requirements.--To be eligible to receive assistance 
        under this section, a tree planting program shall--
                    (A) provide free or discounted shade-providing or 
                wind-reducing trees to residential and small office 
                consumers interested in lowering energy costs;
                    (B) optimize the electricity consumption reduction 
                benefit of each tree by planting in strategic locations 
                around a given residence or small office;
                    (C)(i) provide a maximum quantity of shade during 
                summer intervals, when residences and small offices are 
                exposed to the most sun intensity; or
                    (ii) provide a maximum quantity of wind protection 
                during fall and winter intervals, when residences and 
                small offices are exposed to the most wind intensity;
                    (D) use the best available science to create tree 
                siting guidelines that establish where optimum tree 
                species are best planted in locations that achieve 
                maximum reductions in consumer energy demand while 
                causing the least disruption to public infrastructure, 
                taking into consideration overhead and underground 
                facilities; and
                    (E) be certified by the Administrator, in 
                collaboration with the head of the Urban and Community 
                Forestry Program of the Forest Service, as designed to 
                achieve the goals described in subparagraphs (A) 
                through (D).
            (5) New program funding share.--Not less than 30 percent of 
        the amounts made available to carry out this section shall be 
        distributed to retail power providers that--
                    (A) have not previously established or operated 
                qualified tree planting programs; or
                    (B) are operating qualified tree planting programs 
                established not more than 3 years before the date of 
                enactment of this Act.
    (e) Agreements Between Electricity Providers and Tree Planting 
Organizations.--
            (1) In general.--In providing assistance under this 
        section, the Administrator may award grants only to retail 
        power providers that have entered into binding legal agreements 
        with tree planting organizations.
            (2) Conditions of agreement.--An agreement under paragraph 
        (1) shall establish the conditions under which the tree 
        planting organization shall provide a tree planting program, 
        including a requirement that the tree planting organization 
        shall--
                    (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;
                    (B) coordinate volunteer recruitment to assist with 
                the physical act of planting trees in residential 
                locations;
                    (C) carry out public awareness campaigns to educate 
                local residents regarding the benefits, cost savings, 
                and availability of free shade trees;
                    (D) establish education and information campaigns 
                to encourage recipients to maintain shade trees over 
                the long term;
                    (E) serve as the point of contact for existing and 
                potential residential participants who have questions 
                or concerns regarding the tree planting program;
                    (F) require tree recipients to sign agreements 
                committing to voluntary stewardship and care of 
                provided trees;
                    (G) monitor and report on the survival, growth, 
                overall health, and estimated energy savings of 
                provided trees throughout the initial establishment 
                period of the tree planting program, which shall be not 
                less than 5 years; and
                    (H) ensure that--
                            (i) trees planted near existing power lines 
                        will not interfere with energized electricity 
                        distribution lines when mature; and
                            (ii) 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.
            (3) Lack of nonprofit organization.--If no tree planting 
        organization exists or operates within an area served by a 
        retail power provider applying for assistance under this 
        section, the requirements of this subsection shall apply to a 
        binding legal agreement entered into by the retail power 
        providers and 1 or more of--
                    (A) a local municipal government with jurisdiction 
                over the applicable urban or suburban forest;
                    (B) the State forester for the State in which the 
                tree planting program will operate;
                    (C) the Urban and Community Forestry representative 
                for the State in which the tree planting program will 
                operate; or
                    (D) a landscaping services company that is--
                            (i) identified in consultation with a 
                        national or State nonprofit tree planting 
                        organization;
                            (ii) licensed to operate in the State in 
                        which the tree planting program will operate; 
                        and
                            (iii) a business (as defined in 2007 North 
                        American Industry Classification System Code 
                        561730 of the United States Census Bureau).
    (f) Technical Advisory Committees.--
            (1) In general.--To be eligible to receive assistance under 
        this section, a retail power provider shall establish and 
        consult with a local technical advisory committee, which--
                    (A) shall provide advice and consultation to the 
                program; and
                    (B) may--
                            (i) 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;
                            (ii) design and adopt planting, 
                        installation, and maintenance specifications 
                        and establish a process for inspection and 
                        quality control;
                            (iii) ensure that tree recipients are 
                        educated to care for and maintain trees over 
                        the long term;
                            (iv) help the public become more engaged 
                        and educated in the planting and care of shade 
                        trees;
                            (v) prioritize the sites that will receive 
                        trees, giving preference to locations with the 
                        highest potential for energy conservation and 
                        secondary preference to areas in which the 
                        average annual income is below the regional 
                        median; and
                            (vi) assist with monitoring and collection 
                        of data on tree health, tree survival, and 
                        energy conservation benefits generated under 
                        this section.
            (2) Compensation.--An individual serving on a local 
        technical advisory committee under this subsection shall not 
        receive compensation for that service.
            (3) Composition.--Each local technical advisory committee 
        under this subsection shall be composed of representatives of 
        public, private, and nongovernmental agencies with expertise 
        regarding demand-side energy efficiency management, urban 
        forestry, or arboriculture, including--
                    (A) not more than 4, and not less than 1, 
                individuals representing the retail power provider 
                receiving assistance under this section;
                    (B) not more than 4, and not less than 1, 
                individuals representing the local tree planting 
                organization that will partner with the retail power 
                provider to carry out this section;
                    (C)(i) not more than 3 individuals representing 
                local nonprofit conservation or environmental 
                organizations, with preference given to entities that--
                            (I) are described in section 501(c)(3) of 
                        the Internal Revenue Code of 1986; and
                            (II) have demonstrated expertise engaging 
                        the public in energy conservation, energy 
                        efficiency, or green building practices (or a 
                        combination thereof); but
                    (ii) not more than 1 individual representing each 
                organization described in clause (i);
                    (D) not more than 2 individuals representing a 
                local affordable housing agency, affordable housing 
                builder, or community development corporation;
                    (E) not more than 3, and not less than 1, 
                individuals representing the local city or county 
                government for each municipality in which a shade tree 
                planting program will take place, at least 1 of whom 
                shall be the city or county forester, city or county 
                arborist, or functional equivalent;
                    (F) not more than 1 individual representing the 
                local government agency responsible for management of 
                roads, sewers, and infrastructure, including public 
                works departments, transportation agencies, or 
                equivalent entities;
                    (G) not more than 3 individuals representing the 
                nursery and landscaping industry; and
                    (H) not more than 3 individuals representing the 
                research community or academia, with expertise 
                regarding natural resources or energy management 
                issues.
            (4) Chairperson.--Each local technical advisory committee 
        shall elect, from the members described in subparagraph (A) or 
        (B) of paragraph (3), a chairperson, who shall--
                    (A) preside over committee meetings;
                    (B) act as a liaison to governmental and other 
                entities; and
                    (C) direct the general operation of the committee.
            (5) Credentials.--At least 1 member of each local technical 
        advisory committee shall be certified with 1 or more of the 
        following credentials:
                    (A) International Society of Arboriculture.
                    (B) Certified Arborist, ISA.
                    (C) Certified Arborist Municipal Specialist, ISA.
                    (D) Certified Arborist Utility Specialist, ISA.
                    (E) Board Certified Master Arborist.
                    (F) Registered Landscape Architect recommended by 
                the American Society of Landscape Architects.
    (g) Cost Sharing.--
            (1) Federal share.--The Federal share of the cost of a 
        project under this section shall be not more than 50 percent.
            (2) Non-federal share.--The non-Federal share of the cost 
        of a project under this section may be paid by any entity from 
        any funds not derived directly or indirectly from an agency or 
        instrumentality of the United States.
    (h) Rulemaking.--
            (1) Rulemaking period.--The Administrator may solicit 
        comments and initiate a rulemaking period of not more than 2 
        years after the date of enactment of this section.
            (2) Competitive grant rule.--At the conclusion of the 
        rulemaking period under paragraph (1), the Administrator shall 
        promulgate a rule governing a public, competitive grant process 
        through which retail power providers may apply for assistance 
        under this section.
    (i) Nonduplicity.--Nothing in this section supersedes, duplicates, 
cancels, or negates any program or authority under section 9 of the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2105).
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

  Subtitle G--Emission Reductions From Public Transportation Vehicles

SEC. 171. SHORT TITLE.

    This subtitle may be cited as the ``Green Taxis Act of 2009''.

SEC. 172. STATE FUEL ECONOMY REGULATION FOR TAXICABS.

    Section 32919 of title 49, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) Taxicabs.--Notwithstanding subsection (a), a State or 
political subdivision of a State may prescribe requirements for fuel 
economy for taxicabs and other automobiles if such requirements are at 
least as stringent as applicable Federal requirements and if such 
taxicabs and other automobiles--
            ``(1) are automobiles that are capable of transporting not 
        more than 10 individuals, including the driver;
            ``(2) are commercially available or are designed and 
        manufactured pursuant to a contract with such State or 
        political subdivision of such State;
            ``(3) are operated for hire pursuant to an operating or 
        regulatory license, permit, or other authorization issued by 
        such State or political subdivision of such State;
            ``(4) provide local transportation for a fare determined on 
        the basis of the time or distance traveled or a combination of 
        time and distance traveled; and
            ``(5) do not exclusively provide transportation to and from 
        airports.''.

SEC. 173. STATE REGULATION OF MOTOR VEHICLE EMISSIONS FOR TAXICABS.

    Section 209 of the Clean Air Act (42 U.S.C. 7543) is amended by 
adding at the end the following new subsection:
    ``(f) Taxicabs.--(1) Notwithstanding subsection (a), a State or 
political subdivision thereof may adopt and enforce standards for the 
control of emissions from new motor vehicles that are taxicabs and 
other vehicles if such standards will be, in the aggregate, at least as 
protective of public health and welfare as applicable Federal standards 
and if such taxicabs and other vehicles--
                    ``(A) are passenger motor vehicles that are capable 
                of transporting not more than 10 individuals, including 
                the driver;
                    ``(B) are commercially available or are designed 
                and manufactured pursuant to a contract with such State 
                or political subdivision thereof;
                    ``(C) are operated for hire pursuant to an 
                operating or regulatory license, permit, or other 
                authorization issued by such State or political 
                subdivision thereof;
                    ``(D) provide local transportation for a fare 
                determined on the basis of the time or distance 
                traveled or a combination of time and distance 
                traveled; and
                    ``(E) do not exclusively provide transportation to 
                and from airports.
    ``(2) If each standard of a State or political subdivision thereof 
is at least as stringent as the comparable applicable Federal standard, 
such standard of such State or political subdivision thereof shall be 
deemed at least as protective of health and welfare as such Federal 
standards for purposes of this subsection.''.

                Subtitle H--Clean Energy and Natural Gas

SEC. 181. CLEAN ENERGY AND ACCELERATED EMISSION REDUCTION PROGRAM.

    (a) Establishment.--
            (1) In general.--The Administrator shall establish a 
        program to promote dispatchable power generation projects that 
        can accelerate the reduction of power sector carbon dioxide and 
        other greenhouse gas emissions.
            (2) Use of funds.--Funds provided under this section shall 
        be used by the Administrator to make incentive payments to 
        owners or operators of eligible projects.
    (b) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall promulgate regulations 
providing for incentives, pursuant to the requirements of this section.
    (c) Goal.--Not later than 3 years after the date of enactment of 
this Act, the Administrator shall provide incentives for eligible 
projects that generate 300,000 gigawatt-hours of electricity per year.
    (d) Criteria for Eligible Projects.--To be eligible for funding 
under this section a project must--
            (1) reduce emissions below the 2007 average greenhouse gas 
        emissions per megawatt-hour of the United States electric power 
        sector by the quantity specified in subsection (f); and
            (2) not receive an investment or production credit in--
                    (A) the year in which the project is placed in 
                service; or
                    (B) calendar year 2009, notwithstanding the year in 
                which the project was placed in service.
    (e) Priority.--The Administrator shall give priority to eligible 
projects from the following categories:
            (1) Power generation projects designed to integrate 
        intermittent renewable power into the bulk-power system.
            (2) Energy storage projects used to support renewable 
        energy.
            (3) Power generation projects with carbon capture and 
        sequestration that are not eligible for other assistance under 
        this Act.
            (4) Projects that achieve the greatest reduction in 
        greenhouse gas emissions per dollar of incentive payment.
    (f) Emission Reduction Criteria.--For the purposes of subsection 
(d), the applicable emission reduction quantity shall be determined in 
accordance with the following table:

2010 through 2020.....................  25 percent
2021 through 2025.....................  40 percent
2026 through 2030.....................  65 percent
 

    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as are necessary to carry 
out this section for each of fiscal years 2010 through 2030.

SEC. 182. ADVANCED NATURAL GAS TECHNOLOGIES.

    (a) Definitions.--In this section:
            (1) Corporation.--
                    (A) In general.--The term ``corporation'' means any 
                corporation, joint-stock company, partnership, limited 
                liability company, association, business trust, or 
                other organized group of persons, regardless of 
                incorporation.
                    (B) Exclusion.--The term ``corporation'' does not 
                include a municipality.
            (2) Eligible entity.--
                    (A) In general.--The term ``eligible entity'' means 
                an entity that is eligible to receive a grant under 
                subsection (b).
                    (B) Inclusions.--The term ``eligible entity'' 
                includes a corporation, an eligible research entity, an 
                industry entity, a municipality, a municipal natural 
                gas distribution system, and a natural gas distribution 
                company.
            (3) Eligible research entity.--
                    (A) In general.--The term ``eligible research 
                entity'' means an entity that is experienced in 
                planning, conducting, and implementing natural gas 
                research, development, demonstration, and deployment 
                projects.
                    (B) Inclusions.--The term ``eligible research 
                entity'' includes a research institution and an 
                institution of higher education.
            (4) Industry entity.--
                    (A) In general.--The term ``industry entity'' means 
                the persons and municipalities collectively engaged in 
                the delivery of natural gas for consumption in the 
                United States (such as natural gas distribution 
                companies and municipal natural gas distribution 
                systems).
                    (B) Exclusion.--The term ``industry entity'' does 
                not include any natural gas customer.
            (5) Municipality.--The term ``municipality'' means a city, 
        county, or other political subdivision or agency of a State.
            (6) Municipal natural gas distribution system.--The term 
        ``municipal natural gas distribution system'' means a 
        municipality engaged in the business of delivering natural gas 
        for consumption to residential, commercial, industrial, and 
        other natural gas customers.
            (7) Natural gas.--
                    (A) In general.--The term ``natural gas'' means a 
                mixture of hydrocarbon and nonhydrocarbon gases, 
                primarily methane, that have been produced from 
                geological formations or by any other means.
                    (B) Inclusion.--The term ``natural gas'' includes 
                renewable biogas.
            (8) Natural gas distribution company.--The term ``natural 
        gas distribution company'' means a person engaged in the 
        business of distributing natural gas for consumption to 
        residential, commercial, industrial, or other natural gas 
        customers.
    (b) Grant Programs.--
            (1) Natural gas electricity generation grants.--The 
        Administrator, in consultation with Secretary of Energy, may 
        provide to eligible entities research and development grants to 
        support the deployment of low greenhouse-gas-emitting end-use 
        technologies, including carbon capture and sequestration 
        technologies, for natural gas electricity generation.
            (2) Natural gas residential and commercial technology 
        grants.--The Administrator shall establish a program to provide 
        to eligible entities grants to advance the commercial 
        demonstration or early development of low greenhouse-gas-
        emitting end-use technologies fueled by natural gas, including 
        carbon capture and storage, for residential and commercial 
        purposes, through research, development, demonstration, and 
        deployment of those technologies.
    (c) Reporting.--Not later than 180 days after the date of enactment 
of this Act, and every 180 days thereafter, the Secretary of Energy 
shall submit to the Committee on Energy and Commerce of the House of 
Representatives and the Senate Committees on Energy and Natural 
Resources and Environment and Public Works of the Senate a report that 
describes the status and results of activities carried out under 
subsection (b).
    (d) Authorization.--There are authorized to be appropriated such 
sums as are necessary to carry out this section.

                           TITLE II--RESEARCH

                      Subtitle A--Energy Research

SEC. 201. ADVANCED ENERGY RESEARCH.

    (a) In General.--The Administrator shall establish a program to 
provide grants for advanced energy research.
    (b) Distribution.--The Administrator shall distribute grants 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.
    (c) Selection of Proposals.--In selecting proposals for funding 
under this section, the Administrator shall prioritize applications 
that--
            (1) enhance the economic and energy security of the United 
        States through the development of energy technologies that 
        result in--
                    (A) reductions of imports of energy from foreign 
                sources;
                    (B) reductions of energy-related emissions, 
                including greenhouse gases; and
                    (C) improvements in the energy efficiency of all 
                economic sectors; and
            (2) ensure that the United States maintains a technological 
        lead in developing and deploying advanced energy technologies.
    (d) Responsibilities.--The Administrator 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.
    (e) Assistance.--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.
    (f) Authorization.--There are authorized to be appropriated such 
sums as are necessary to carry out this section.

   Subtitle B--Drinking Water Adaptation, Technology, Education, and 
                                Research

SEC. 211. EFFECTS OF CLIMATE CHANGE ON DRINKING WATER UTILITIES.

    (a) Findings.--Congress finds that--
            (1) the consensus among climate scientists is overwhelming 
        that climate change is occurring more rapidly than can be 
        attributed to natural causes, and that significant impacts to 
        the water supply are already occurring;
            (2) among the first and most critical of those impacts will 
        be change to patterns of precipitation around the world, which 
        will affect water availability for the most basic drinking 
        water and domestic water needs of populations in many areas of 
        the United States;
            (3) drinking water utilities throughout the United States, 
        as well as those in Europe, Australia, and Asia, are concerned 
        that extended changes in precipitation will lead to extended 
        droughts;
            (4) supplying water is highly energy-intensive and will 
        become more so as climate change forces more utilities to turn 
        to alternative supplies;
            (5) energy production consumes a significant percentage of 
        the fresh water resources of the United States;
            (6) since 2003, the drinking water industry of the United 
        States has sponsored, through a nonprofit water research 
        foundation, various studies to assess the impacts of climate 
        change on drinking water supplies;
            (7) those studies demonstrate the need for a comprehensive 
        program of research into the full range of impacts on drinking 
        water utilities, including impacts on water supplies, 
        facilities, and customers;
            (8) that nonprofit water research foundation is also 
        coordinating internationally with other drinking water 
        utilities on shared research projects and has hosted 
        international workshops with counterpart European and Asian 
        water research organizations to develop a unified research 
        agenda for applied research on adaptive strategies to address 
        climate change impacts;
            (9) research data in existence as of the date of enactment 
        of this Act--
                    (A) summarize the best available scientific 
                evidence on climate change;
                    (B) identify the implications of climate change for 
                the water cycle and the availability and quality of 
                water resources; and
                    (C) provide general guidance on planning and 
                adaptation strategies for water utilities; and
            (10) given uncertainties about specific climate changes in 
        particular areas, drinking water utilities need to prepare for 
        a wider range of likely possibilities in managing and delivery 
        of water.
    (b) In General.--The Administrator, in cooperation with the 
Secretary of Commerce, the Secretary of Energy, and the Secretary of 
the Interior, shall establish and provide funding for a program of 
directed and applied research, to be conducted through a nonprofit 
drinking water research foundation and sponsored by water utilities, to 
assist the utilities in adapting to the effects of climate change.
    (c) Research Areas.--The research conducted in accordance with 
subsection (b) shall include research into--
            (1) water quality impacts and solutions, including 
        research--
                    (A) to address probable impacts on raw water 
                quality resulting from--
                            (i) erosion and turbidity from extreme 
                        precipitation events;
                            (ii) watershed vegetation changes; and
                            (iii) increasing ranges of pathogens, 
                        algae, and nuisance organisms resulting from 
                        warmer temperatures; and
                    (B) on mitigating increasing damage to watersheds 
                and water quality by evaluating extreme events, such as 
                wildfires and hurricanes, to learn and develop 
                management approaches to mitigate--
                            (i) permanent watershed damage;
                            (ii) quality and yield impacts on source 
                        waters; and
                            (iii) increased costs of water treatment;
            (2) impacts on groundwater supplies from carbon 
        sequestration, including research to evaluate potential water 
        quality consequences of carbon sequestration in various 
        regional aquifers, soil conditions, and mineral deposits;
            (3) water quantity impacts and solutions, including 
        research--
                    (A) to evaluate climate change impacts on water 
                resources throughout hydrological basins of the United 
                States;
                    (B) to improve the accuracy and resolution of 
                climate change models at a regional level;
                    (C) to identify and explore options for increasing 
                conjunctive use of aboveground and underground storage 
                of water; and
                    (D) to optimize operation of existing and new 
                reservoirs in diminished and erratic periods of 
                precipitation and runoff;
            (4) infrastructure impacts and solutions for water 
        treatment and wastewater treatment facilities and underground 
        pipelines, including research--
                    (A) to evaluate and mitigate the impacts of sea 
                level rise on--
                            (i) near-shore facilities;
                            (ii) soil drying and subsidence;
                            (iii) reduced flows in water and wastewater 
                        pipelines; and
                            (iv) extreme flows in wastewater systems; 
                        and
                    (B) on ways of increasing the resilience of 
                existing infrastructure, planning cost-effective 
                responses to adapt to climate change, and developing 
                new design standards for future infrastructure that 
                include the use of energy conservation measures and 
                renewable energy in new construction to the maximum 
                extent practicable;
            (5) desalination, water reuse, and alternative supply 
        technologies, including research--
                    (A) to improve and optimize existing membrane 
                technologies, and to identify and develop breakthrough 
                technologies, to enable the use of seawater, brackish 
                groundwater, treated wastewater, and other impaired 
                sources;
                    (B) into new sources of water through more cost-
                effective water treatment practices in recycling and 
                desalination; and
                    (C) to improve technologies for use in--
                            (i) managing and minimizing the volume of 
                        desalination and reuse concentrate streams; and
                            (ii) minimizing the environmental impacts 
                        of seawater intake at desalination facilities;
            (6) energy efficiency and greenhouse gas minimization, 
        including research--
                    (A) on optimizing the energy efficiency of water 
                supply and wastewater operations and improving water 
                efficiency in energy production and management; and
                    (B) to identify and develop renewable, carbon-
                neutral energy options for the water supply and 
                wastewater industry;
            (7) regional and hydrological basin cooperative water 
        management solutions, including research into--
                    (A) institutional mechanisms for greater regional 
                cooperation and use of water exchanges, banking, and 
                transfers; and
                    (B) the economic benefits of sharing risks of 
                shortage across wider areas;
            (8) utility management, decision support systems, and water 
        management models, including research--
                    (A) into improved decision support systems and 
                modeling tools for use by water utility managers to 
                assist with increased water supply uncertainty and 
                adaptation strategies posed by climate change;
                    (B) to provide financial tools, including new rate 
                structures, to manage financial resources and 
                investments, because increased conservation practices 
                may diminish revenue and increase investments in 
                infrastructure; and
                    (C) to develop improved systems and models for use 
                in evaluating--
                            (i) successful alternative methods for 
                        conservation and demand management; and
                            (ii) climate change impacts on groundwater 
                        resources;
            (9) reducing greenhouse gas emissions and improving energy 
        demand management, including research to improve energy 
        efficiency in water collection, production, transmission, 
        treatment, distribution, and disposal to provide more 
        sustainability and means to assist drinking water utilities in 
        reducing the production of greenhouse gas emissions in the 
        collection, production, transmission, treatment, distribution, 
        and disposal of drinking water;
            (10) water conservation and demand management, including 
        research--
                    (A) to develop strategic approaches to water demand 
                management that offer the lowest-cost, 
                noninfrastructural options to serve growing populations 
                or manage declining supplies, primarily through--
                            (i) efficiencies in water use and 
                        reallocation of the saved water;
                            (ii) demand management tools;
                            (iii) economic incentives; and
                            (iv) water-saving technologies; and
                    (B) into efficiencies in water management through 
                integrated water resource management that 
                incorporates--
                            (i) supply-side and demand-side processes;
                            (ii) continuous adaptive management; and
                            (iii) the inclusion of stakeholders in 
                        decisionmaking processes; and
            (11) communications, education, and public acceptance, 
        including research--
                    (A) into improved strategies and approaches for 
                communicating with customers, decisionmakers, and other 
                stakeholders about the implications of climate change 
                on water supply and water management;
                    (B) to develop effective communication approaches--
                            (i) to gain public acceptance of 
                        alternative water supplies and new policies and 
                        practices, including conservation and demand 
                        management; and
                            (ii) to gain public recognition and 
                        acceptance of increased costs; and
                    (C) to create and maintain a clearinghouse of 
                climate change information for water utilities, 
                academic researchers, stakeholders, government 
                agencies, and research organizations.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2010 through 2020.

                  TITLE III--TRANSITION AND ADAPTATION

              Subtitle A--Green Jobs and Worker Transition

                           PART 1--GREEN JOBS

SEC. 301. CLEAN ENERGY CURRICULUM DEVELOPMENT GRANTS.

    (a) Authorization.--The Secretary of Education is authorized to 
award grants, on a competitive basis, to eligible partnerships to 
develop programs of study (containing the information described in 
section 122(c)(1)(A) of the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2342)), that are focused on emerging 
careers and jobs in the fields of clean energy, renewable energy, 
energy efficiency, climate change mitigation, and climate change 
adaptation. The Secretary of Education shall consult with the Secretary 
of Labor and the Secretary of Energy prior to the issuance of a 
solicitation for grant applications.
    (b) Eligible Partnerships.--For purposes of this section, an 
eligible partnership shall include--
            (1) at least 1 local educational agency eligible for 
        funding under section 131 of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2351) or an area 
        career and technical education school or education service 
        agency described in such section;
            (2) at least 1 postsecondary institution eligible for 
        funding under section 132 of such Act (20 U.S.C. 2352); and
            (3) representatives of the community including business, 
        labor organizations, and industry that have experience in 
        fields as described in subsection (a).
    (c) Application.--An eligible partnership seeking a grant under 
this section shall submit an application to the Secretary at such time 
and in such manner as the Secretary may require. Applications shall 
include--
            (1) a description of the eligible partners and partnership, 
        the roles and responsibilities of each partner, and a 
        demonstration of each partner's capacity to support the 
        program;
            (2) a description of the career area or areas within the 
        fields as described in subsection (a) to be developed, the 
        reason for the choice, and evidence of the labor market need to 
        prepare students in that area;
            (3) a description of the new or existing program of study 
        and both secondary and postsecondary components;
            (4) a description of the students to be served by the new 
        program of study;
            (5) a description of how the program of study funded by the 
        grant will be replicable and disseminated to schools outside of 
        the partnership, including urban and rural areas;
            (6) a description of applied learning that will be 
        incorporated into the program of study and how it will 
        incorporate or reinforce academic learning;
            (7) a description of how the program of study will be 
        delivered;
            (8) a description of how the program will provide 
        accessibility to students, especially economically 
        disadvantaged, low performing, and urban and rural students;
            (9) a description of how the program will address placement 
        of students in nontraditional fields as described in section 
        3(20) of the Carl D. Perkins Career and Technical Education Act 
        of 2006 (20 U.S.C. 2302(20)); and
            (10) a description of how the applicant proposes to consult 
        or has consulted with a labor organization, labor management 
        partnership, apprenticeship program, or joint apprenticeship 
        and training program that provides education and training in 
        the field of study for which the applicant proposes to develop 
        a curriculum.
    (d) Priority.--The Secretary shall give priority to applications 
that--
            (1) use online learning or other innovative means to 
        deliver the program of study to students, educators, and 
        instructors outside of the partnership; and
            (2) focus on low performing students and special 
        populations as defined in section 3(29) of the Carl D. Perkins 
        Career and Technical Education Act of 2006 (20 U.S.C. 
        2302(29)).
    (e) Peer Review.--The Secretary shall convene a peer review process 
to review applications for grants under this section and to make 
recommendations regarding the selection of grantees. Members of the 
peer review committee shall include--
            (1) educators who have experience implementing curricula 
        with comparable purposes; and
            (2) business and industry experts in fields as described in 
        subsection (a).
    (f) Uses of Funds.--Grants awarded under this section shall be used 
for the development, implementation, and dissemination of programs of 
study (as described in section 122(c)(1)(A) of the Carl D. Perkins 
Career and Technical Education Act (20 U.S.C. 2342(c)(1)(A))) in career 
areas related to clean energy, renewable energy, energy efficiency, 
climate change mitigation, and climate change adaptation.

SEC. 302. DEVELOPMENT OF INFORMATION AND RESOURCES CLEARINGHOUSE FOR 
              VOCATIONAL EDUCATION AND JOB TRAINING IN RENEWABLE ENERGY 
              SECTORS.

    (a) Development of Clearinghouse.--Not later than 18 months after 
the date of enactment of this Act, the Secretary of Labor, in 
collaboration with the Secretary of Energy and the Secretary of 
Education, shall develop an internet based information and resources 
clearinghouse to aid career and technical education and job training 
programs for the renewable energy sectors. In establishing the 
clearinghouse, the Secretary shall--
            (1) collect and provide information that addresses the 
        consequences of rapid changes in technology and regional 
        disparities for renewable energy training programs and provides 
        best practices for training and education in light of such 
        changes and disparities;
            (2) place an emphasis on facilitating collaboration between 
        the renewable energy industry and job training programs and on 
        identifying industry and technological trends and best 
        practices, to better help job training programs maintain 
        quality and relevance; and
            (3) place an emphasis on assisting programs that cater to 
        high-demand middle-skill, trades, manufacturing, contracting, 
        and consulting careers.
    (b) Solicitation and Consultation.--In developing the clearinghouse 
pursuant to subsection (a), the Secretary shall solicit information and 
expertise from businesses and organizations in the renewable energy 
sector and from institutions of higher education, career and technical 
schools, and community colleges that provide training in the renewable 
energy sectors. The Secretary shall solicit a comprehensive peer review 
of the clearinghouse by such entities not less than once every 2 years. 
Nothing in this subsection should be interpreted to require the 
divulgence of proprietary or competitive information.
    (c) Contents of Clearinghouse.--
            (1) Separate section for each renewable energy sector.--The 
        clearinghouse shall contain separate sections developed for 
        each of the following renewable energy sectors:
                    (A) Solar energy systems.
                    (B) Wind energy systems.
                    (C) Energy transmission systems.
                    (D) Geothermal systems of energy and heating.
                    (E) Energy efficiency technical training.
            (2) Additional requirements.--In addition to the 
        information required in subsection (a), each section of the 
        clearinghouse shall include information on basic environmental 
        science and processes needed to understand renewable energy 
        systems, Federal government and industry resources, and points 
        of contact to aid institutions in the development of placement 
        programs for apprenticeships and post graduation opportunities, 
        and information and tips about a green workplace, energy 
        efficiency, and relevant environmental topics and information 
        on available industry recognized certifications in each area.
    (d) Dissemination.--The clearinghouse shall be made available via 
the Internet to the general public. Notice of the completed 
clearinghouse and any major revisions thereto shall also be provided--
            (1) to each Member of Congress; and
            (2) on the websites of the Departments of Education, 
        Energy, and Labor.
    (e) Revision.--The Secretary of Labor shall revise and update the 
clearinghouse on a regular basis to ensure its relevance.

SEC. 303. GREEN CONSTRUCTION CAREERS DEMONSTRATION PROJECT.

    (a) Establishment and Authority.--The Secretary of Labor, in 
consultation with the Secretary of Energy, shall, not later than 180 
days after the enactment of this Act, establish a Green Construction 
Careers demonstration project by rules, regulations, and guidance in 
accordance with the provisions of this section. The purpose of the 
demonstration project shall be to promote middle class careers and 
quality employment practices in the green construction sector among 
targeted workers and to advance efficiency and performance on 
construction projects related to this Act. In order to advance these 
purposes, the Secretary shall identify projects, including residential 
retrofitting projects, funded directly by or assisted in whole or in 
part by or through the Federal Government pursuant to this Act or by 
any other entity established in accordance with this Act, to which all 
of the following shall apply.
    (b) Requirements.--The Secretaries may establish such terms and 
conditions for the demonstration projects as the Secretaries determine 
are necessary to meet the purposes of subsection (a), including 
establishing minimum proportions of hours to be worked by targeted 
workers on such projects. The Secretaries may require the contractors 
and subcontractors performing construction services on the project to 
comply with the terms and conditions as a condition of receiving 
funding or assistance from the Federal Government under this Act.
    (c) Evaluation.--The Secretaries shall evaluate the demonstration 
projects against the purposes of this section at the end of 3 years 
from initiation of the demonstration project. If the Secretaries 
determine that the demonstration projects have been successful, the 
Secretaries may identify further projects to which of the provisions of 
this section shall apply.
    (d) GAO Report.--The Comptroller General shall prepare and submit a 
report to the Committee on Health, Education, Labor, and Pensions and 
the Committee on Energy and Natural Resources of the Senate and the 
Committee on Education and Labor and the Committee on Energy and 
Commerce of the House of Representatives not later than 5 years after 
the date of enactment of this Act, which shall advise the committees of 
the results of the demonstration projects and make appropriate 
recommendations.
    (e) Definition and Designation of Targeted Workers.--As used in 
this section, the term ``targeted worker'' means an individual who 
resides in the same labor market area (as defined in section 101(18) of 
the Workforce Investment Act of 1998 (29 U.S.C. 2801(18))) as the 
project and who--
            (1) is a member of a targeted group, within the meaning of 
        section 51 of the Internal Revenue Code of 1986, other than an 
        individual described in subsection (d)(1)(C) of such section;
            (2)(A) resides in a census tract in which not less than 20 
        percent of the households have incomes below the Federal 
        poverty guidelines; or
            (B) is a member of a family that received a total family 
        income that, during the 2-year period prior to employment on 
        the project or admission to the pre-apprenticeship program, did 
        not exceed 200 percent of the Federal poverty guidelines 
        (exclusive of unemployment compensation, child support 
        payments, payments described in section 101(25)(A) of the 
        Workforce Investment Act (29 U.S.C. 2801(25)(A)), and old-age 
        and survivors insurance benefits received under section 202 of 
        the Social Security Act (42 U.S.C. 402); or
            (3) is a displaced homemaker, as such term is defined in 
        section 3(10) of the Carl D. Perkins Career and Technical 
        Education Act of 2006 (20 U.S.C. 2302(10)).
    (f) Qualified Pre-apprenticeship Program.--A qualified pre-
apprenticeship program is a pre-apprenticeship program that has 
demonstrated an ability to recruit, train, and prepare for admission to 
apprenticeship programs individuals who are targeted workers.
    (g) Qualified Apprenticeship and Other Training Programs.--
            (1) Participation by each contractor required.--Each 
        contractor and subcontractor that seeks to provide construction 
        services on projects identified by the Secretaries pursuant to 
        subsection (a) shall submit adequate assurances with its bid or 
        proposal that it participates in a qualified apprenticeship or 
        other training program, with a written arrangement with a 
        qualified pre-apprenticeship program, for each craft or trade 
        classification of worker that it intends to employ to perform 
        work on the project.
            (2) Definition of qualified apprentice ship or other 
        training program.--
                    (A) In general.--For purposes of this section, the 
                term ``qualified apprenticeship or other training 
                program'' means an apprenticeship or other training 
                program that qualifies as an employee welfare benefit 
                plan, as defined in section 3(1) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1002(1)).
                    (B) Certification of other programs in certain 
                localities.--In the event that the Secretary of Labor 
                certifies that a qualified apprenticeship or other 
                training program (as defined in subparagraph (A)) for a 
                craft or trade classification of workers that a 
                prospective contractor or subcontractor intends to 
                employ, is not operated in the locality where the 
                project will be performed, an apprenticeship or other 
                training program that is not an employee welfare 
                benefit plan (as defined in such section) may be 
                certified by the Secretary as a qualified 
                apprenticeship or other training program provided it is 
                registered with the Office of Apprenticeship of the 
                Department of Labor, or a State apprenticeship agency 
                recognized by the Office of Apprenticeship for Federal 
                purposes.
    (h) Facilitating Compliance.--The Secretary may require Federal 
contracting agencies, recipients of Federal assistance, and any other 
entity established in accordance with this Act to require contractors 
to enter into an agreement in a manner comparable with the standards 
set forth in sections 3 and 4 of Executive Order 13502 in order to 
achieve the purposes of this section, including any requirements 
established by subsection (b).
    (i) Limitation.--The requirements of this section shall not apply 
to any project funded under this Act in American Samoa, Guam, the 
Commonwealth of the Northern Mariana Islands, the Commonwealth of 
Puerto Rico, or the United States Virgin Islands, unless participation 
is requested by the governor of such territories within 1 year of the 
promulgation of rules under this Act.

          PART 2--CLIMATE CHANGE WORKER ADJUSTMENT ASSISTANCE

SEC. 311. PETITIONS, ELIGIBILITY REQUIREMENTS, AND DETERMINATIONS.

    (a) Petitions.--
            (1) Filing.--A petition for certification of eligibility to 
        apply for adjustment assistance for a group of workers under 
        this part may be filed by any of the following:
                    (A) The group of workers.
                    (B) The certified or recognized union or other duly 
                authorized representative of such workers.
                    (C) Employers of such workers, one-stop operators 
                or one-stop partners (as defined in section 101 of the 
                Workforce Investment Act of 1998 (29 U.S.C. 2801)), 
                including State employment security agencies, or the 
                State dislocated worker unit established under title I 
                of such Act, on behalf of such workers.
        The petition shall be filed simultaneously with the Secretary 
        of Labor and with the Governor of the State in which such 
        workers' employment site is located.
            (2) Action by governors.--Upon receipt of a petition filed 
        under paragraph (1), the Governor shall--
                    (A) ensure that rapid response activities and 
                appropriate core and intensive services (as described 
                in section 134 of the Workforce Investment Act of 1998 
                (29 U.S.C. 2864)) authorized under other Federal laws 
                are made available to the workers covered by the 
                petition to the extent authorized under such laws; and
                    (B) assist the Secretary in the review of the 
                petition by verifying such information and providing 
                such other assistance as the Secretary may request.
            (3) Action by the secretary.--Upon receipt of the petition, 
        the Secretary shall promptly publish notice in the Federal 
        Register and on the website of the Department of Labor that the 
        Secretary has received the petition and initiated an 
        investigation.
            (4) Hearings.--If the petitioner, or any other person found 
        by the Secretary to have a substantial interest in the 
        proceedings, submits not later than 10 days after the date of 
        the Secretary's publication under paragraph (3) a request for a 
        hearing, the Secretary shall provide for a public hearing and 
        afford such interested persons an opportunity to be present, to 
        produce evidence, and to be heard.
    (b) Eligibility.--
            (1) In general.--A group of workers shall be certified by 
        the Secretary as eligible to apply for adjustment assistance 
        under this part pursuant to a petition filed under subsection 
        (a) if--
                    (A) the group of workers is employed in--
                            (i) energy producing and transforming 
                        industries;
                            (ii) industries dependent upon energy 
                        industries;
                            (iii) energy-intensive manufacturing 
                        industries;
                            (iv) consumer goods manufacturing; or
                            (v) other industries whose employment the 
                        Secretary determines has been adversely 
                        affected by any requirement of title VII of the 
                        Clean Air Act;
                    (B) the Secretary determines that a significant 
                number or proportion of the workers in such workers' 
                employment site have become totally or partially 
                separated, or are threatened to become totally or 
                partially separated from employment; and
                    (C) the sales, production, or delivery of goods or 
                services have decreased as a result of any requirement 
                of title VII of the Clean Air Act, including--
                            (i) the shift from reliance upon fossil 
                        fuels to other sources of energy, including 
                        renewable energy, that results in the closing 
                        of a facility or layoff of employees at a 
                        facility that mines, produces, processes, or 
                        utilizes fossil fuels to generate electricity;
                            (ii) a substantial increase in the cost of 
                        energy required for a manufacturing facility to 
                        produce items whose prices are competitive in 
                        the marketplace, to the extent the cost is not 
                        offset by assistance provided to the facility 
                        pursuant to title VII of the Clean Air Act; or
                            (iii) other documented occurrences that the 
                        Secretary determines are indicators of an 
                        adverse impact on an industry described in 
                        subparagraph (A) as a result of any requirement 
                        of title VII of the Clean Air Act.
            (2) Workers in public agencies.--A group of workers in a 
        public agency shall be certified by the Secretary as eligible 
        to apply for climate change adjustment assistance pursuant to a 
        petition filed if the Secretary determines that a significant 
        number or proportion of the workers in the public agency have 
        become totally or partially separated from employment, or are 
        threatened to become totally or partially separated as a result 
        of any requirement of title VII of the Clean Air Act.
            (3) Adversely affected service workers.--A group of workers 
        shall be certified as eligible to apply for climate change 
        adjustment assistance pursuant to a petition filed if the 
        Secretary determines that--
                    (A) a significant number or proportion of the 
                service workers at an employment site where a group of 
                workers has been certified by the Secretary as eligible 
                to apply for adjustment assistance under this part 
                pursuant to paragraph (1) have become totally or 
                partially separated from employment, or are threatened 
                to become totally or partially separated; and
                    (B) a loss of business in the firm providing 
                service workers to an employment site is directly 
                attributable to one or more of the documented 
                occurrences listed in paragraph (1)(C).
    (c) Authority to Investigate and Collect Information.--
            (1) In general.--The Secretary shall, in determining 
        whether to certify a group of workers under subsection (d), 
        obtain information the Secretary determines to be necessary to 
        make the certification, through questionnaires and in such 
        other manner as the Secretary determines appropriate from--
                    (A) the workers' employer;
                    (B) officials of certified or recognized unions or 
                other duly authorized representatives of the group of 
                workers; or
                    (C) one-stop operators or one-stop partners (as 
                defined in section 101 of the Workforce Investment Act 
                of 1998 (29 U.S.C. 2801)).
            (2) Verification of information.--The Secretary shall 
        require an employer, union, or one-stop operator or partner to 
        certify all information obtained under paragraph (1) from the 
        employer, union, or one-stop operator or partner (as the case 
        may be) on which the Secretary relies in making a determination 
        under subsection (d), unless the Secretary has a reasonable 
        basis for determining that such information is accurate and 
        complete without being certified.
            (3) Protection of confidential information.--The Secretary 
        may not release information obtained under paragraph (1) that 
        the Secretary considers to be confidential business information 
        unless the employer submitting the confidential business 
        information had notice, at the time of submission, that the 
        information would be released by the Secretary, or the employer 
        subsequently consents to the release of the information. 
        Nothing in this paragraph shall be construed to prohibit the 
        Secretary from providing such confidential business information 
        to a court in camera or to another party under a protective 
        order issued by a court.
    (d) Determination by the Secretary of Labor.--
            (1) In general.--As soon as possible after the date on 
        which a petition is filed under subsection (a), but in any 
        event not later than 40 days after that date, the Secretary, in 
        consultation with the Secretary of Energy and the 
        Administrator, as necessary, shall determine whether the 
        petitioning group meets the requirements of subsection (b) and 
        shall issue a certification of eligibility to apply for 
        assistance under this part covering workers in any group which 
        meets such requirements. Each certification shall specify the 
        date on which the total or partial separation began or 
        threatened to begin. Upon reaching a determination on a 
        petition, the Secretary shall promptly publish a summary of the 
        determination in the Federal Register and on the website of the 
        Department of Labor, together with the Secretary's reasons for 
        making such determination.
            (2) One year limitation.--A certification under this 
        section shall not apply to any worker whose last total or 
        partial separation from the employment site before the worker's 
        application under section 312(a) occurred more than 1 year 
        before the date of the petition on which such certification was 
        granted.
            (3) Revocation of certification.--Whenever the Secretary 
        determines, with respect to any certification of eligibility of 
        the workers of an employment site, that total or partial 
        separations from such site are no longer a result of the 
        factors specified in subsection (b)(1), the Secretary shall 
        terminate such certification and promptly have notice of such 
        termination published in the Federal Register and on the 
        website of the Department of Labor, together with the 
        Secretary's reasons for making such determination. Such 
        termination shall apply only with respect to total or partial 
        separations occurring after the termination date specified by 
        the Secretary.
    (e) Industry Notification of Assistance.--Upon receiving a 
notification of a determination under subsection (d) with respect to a 
domestic industry the Secretary of Labor shall notify the 
representatives of the domestic industry affected by the determination, 
employers publicly identified by name during the course of the 
proceeding relating to the determination, and any certified or 
recognized union or, to the extent practicable, other duly authorized 
representative of workers employed by such representatives of the 
domestic industry, of--
            (1) the adjustment assistance, training, and other benefits 
        available under this part;
            (2) the manner in which to file a petition and apply for 
        such benefits;
            (3) the availability of assistance in filing such 
        petitions;
            (4) notify the Governor of each State in which one or more 
        employers in such industry are located of the Secretary's 
        determination and the identity of the employers; and
            (5) upon request, provide any assistance that is necessary 
        to file a petition under subsection (a).
    (f) Benefit Information to Workers, Providers of Training.--
            (1) In general.--The Secretary shall provide full 
        information to workers about the adjustment assistance, 
        training, and other benefits available under this part and 
        about the petition and application procedures, and the 
        appropriate filing dates, for such assistance, training and 
        services. The Secretary shall provide whatever assistance is 
        necessary to enable groups of workers to prepare petitions or 
        applications for program benefits. The Secretary shall make 
        every effort to insure that cooperating State agencies fully 
        comply with the agreements entered into under section 312(a) 
        and shall periodically review such compliance. The Secretary 
        shall inform the State Board for Vocational Education or 
        equivalent agency, the one-stop operators or one-stop partners 
        (as defined in section 101 of the Workforce Investment Act of 
        1998 (29 U.S.C. 2801)), and other public or private agencies, 
        institutions, and employers, as appropriate, of each 
        certification issued under subsection (d) and of projections, 
        if available, of the needs for training under as a result of 
        such certification.
            (2) Notice by mail.--The Secretary shall provide written 
        notice through the mail of the benefits available under this 
        part to each worker whom the Secretary has reason to believe is 
        covered by a certification made under subsection (d)--
                    (A) at the time such certification is made, if the 
                worker was partially or totally separated from the 
                adversely affected employment before such 
                certification; or
                    (B) at the time of the total or partial separation 
                of the worker from the adversely affected employment, 
                if subparagraph (A) does not apply.
            (3) Newspapers; website.--The Secretary shall publish 
        notice of the benefits available under this part to workers 
        covered by each certification made under subsection (d) in 
        newspapers of general circulation in the areas in which such 
        workers reside and shall make such information available on the 
        website of the Department of Labor.

SEC. 312. PROGRAM BENEFITS.

    (a) Climate Change Adjustment Assistance.--
            (1) Eligibility.--Payment of climate change adjustment 
        assistance shall be made to an adversely affected worker 
        covered by a certification under section 311(b) who files an 
        application for such assistance for any week of unemployment 
        which begins on or after the date of such certification, if the 
        following conditions are met:
                    (A) Such worker's total or partial separation 
                before the worker's application under this part 
                occurred--
                            (i) on or after the date, as specified in 
                        the certification under which the worker is 
                        covered, on which total or partial separation 
                        began or threatened to begin in the adversely 
                        affected employment;
                            (ii) before the expiration of the 2-year 
                        period beginning on the date on which the 
                        determination under section 311(d) was made; 
                        and
                            (iii) before the termination date, if any, 
                        determined pursuant to section 311(d)(3).
                    (B) Such worker had, in the 52-week period ending 
                with the week in which such total or partial separation 
                occurred, at least 26 weeks of full-time employment or 
                1,040 hours of part time employment in adversely 
                affected employment, or, if data with respect to weeks 
                of employment are not available, equivalent amounts of 
                employment computed under regulations prescribed by the 
                Secretary. For the purposes of this paragraph, any week 
                in which such worker--
                            (i) is on employer-authorized leave for 
                        purposes of vacation, sickness, injury, 
                        maternity, or inactive duty or active duty 
                        military service for training;
                            (ii) does not work because of a disability 
                        that is compensable under a workmen's 
                        compensation law or plan of a State or the 
                        United States;
                            (iii) had his employment interrupted in 
                        order to serve as a full-time representative of 
                        a labor organization in such firm; or
                            (iv) is on call-up for purposes of active 
                        duty in a reserve status in the Armed Forces of 
                        the United States, provided such active duty is 
                        ``Federal service'' as defined in section 
                        8521(a)(1) of title 5, United States Code,
                shall be treated as a week of employment.
                    (C) Such worker is enrolled in a training program 
                approved by the Secretary under subsection (b)(2).
            (2) Ineligibility for certain other benefits.--An adversely 
        affected worker receiving a payment under this section shall be 
        ineligible to receive any other form of unemployment insurance 
        for the period in which such worker is receiving climate change 
        adjustment assistance under this section.
            (3) Revocation.--If--
                    (A) the Secretary determines that--
                            (i) the adversely affected worker--
                                    (I) has failed to begin 
                                participation in the training program 
                                the enrollment in which meets the 
                                requirement of paragraph (1)(C); or
                                    (II) has ceased to participate in 
                                such training program before completing 
                                such training program; and
                            (ii) there is no justifiable cause for such 
                        failure or cessation; or
                    (B) the certification made with respect to such 
                worker under section 311(d) is revoked under paragraph 
                (3) of such section,
        no adjustment assistance may be paid to the adversely affected 
        worker under this part for the week in which such failure, 
        cessation, or revocation occurred, or any succeeding week, 
        until the adversely affected worker begins or resumes 
        participation in a training program approved by the Secretary 
        under subsection (b)(2).
            (4) Waivers of training requirements.--The Secretary may 
        issue a written statement to an adversely affected worker 
        waiving the requirement to be enrolled in training described in 
        subsection (b)(2) if the Secretary determines that it is not 
        feasible or appropriate for the worker, because of 1 or more of 
        the following reasons:
                    (A) Recall.--The worker has been notified that the 
                worker will be recalled by the employer from which the 
                separation occurred.
                    (B) Marketable skills.--
                            (i) In general.--The worker possesses 
                        marketable skills for suitable employment (as 
                        determined pursuant to an assessment of the 
                        worker, which may include the profiling system 
                        under section 303(j) of the Social Security Act 
                        (42 U.S.C. 503(j)), carried out in accordance 
                        with guidelines issued by the Secretary) and 
                        there is a reasonable expectation of employment 
                        at equivalent wages in the foreseeable future.
                            (ii) Marketable skills defined.--For 
                        purposes of clause (i), the term ``marketable 
                        skills'' may include the possession of a 
                        postgraduate degree from an institution of 
                        higher education (as defined in section 102 of 
                        the Higher Education Act of 1965 (20 U.S.C. 
                        1002)) or an equivalent institution, or the 
                        possession of an equivalent postgraduate 
                        certification in a specialized field.
                    (C) Retirement.--The worker is within 2 years of 
                meeting all requirements for entitlement to either--
                            (i) old-age insurance benefits under title 
                        II of the Social Security Act (42 U.S.C. 401 et 
                        seq.) (except for application therefor); or
                            (ii) a private pension sponsored by an 
                        employer or labor organization.
                    (D) Health.--The worker is unable to participate in 
                training due to the health of the worker, except that a 
                waiver under this subparagraph shall not be construed 
                to exempt a worker from requirements relating to the 
                availability for work, active search for work, or 
                refusal to accept work under Federal or State 
                unemployment compensation laws.
                    (E) Enrollment unavailable.--The first available 
                enrollment date for the training of the worker is 
                within 60 days after the date of the determination made 
                under this paragraph, or, if later, there are 
                extenuating circumstances for the delay in enrollment, 
                as determined pursuant to guidelines issued by the 
                Secretary.
                    (F) Training not available.--Training described in 
                subsection (b)(2) is not reasonably available to the 
                worker from either governmental agencies or private 
                sources (which may include area career and technical 
                education schools, as defined in section 3 of the Carl 
                D. Perkins Career and Technical Education Act of 2006 
                (20 U.S.C. 2302), and employers), no training that is 
                suitable for the worker is available at a reasonable 
                cost, or no training funds are available.
            (5) Weekly amounts.--The climate change adjustment 
        assistance payable to an adversely affected worker for a week 
        of unemployment shall be an amount equal to 70 percent of the 
        average weekly wage of such worker, but in no case shall such 
        amount exceed the average weekly wage for all workers in the 
        State where the adversely affected worker resides.
            (6) Maximum duration of benefits.--An eligible worker may 
        receive a climate change adjustment assistance under this 
        subsection for a period of not longer than 156 weeks.
    (b) Employment Services and Training.--
            (1) Information and employment services.--The Secretary 
        shall make available, directly or through agreements with the 
        States under section 313(a) to adversely affected workers 
        covered by a certification under section 311(a) the following 
        information and employment services:
                    (A) Comprehensive and specialized assessment of 
                skill levels and service needs, including through--
                            (i) diagnostic testing and use of other 
                        assessment tools; and
                            (ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals.
                    (B) Development of an individual employment plan to 
                identify employment goals and objectives, and 
                appropriate training to achieve those goals and 
                objectives.
                    (C) Information on training available in local and 
                regional areas, information on individual counseling to 
                determine which training is suitable training, and 
                information on how to apply for such training.
                    (D) Information on training programs and other 
                services provided by a State pursuant to title I of the 
                Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
                seq.) and available in local and regional areas, 
                information on individual counseling to determine which 
                training is suitable training, and information on how 
                to apply for such training.
                    (E) Information on how to apply for financial aid, 
                including referring workers to educational opportunity 
                centers described in section 402F of the Higher 
                Education Act of 1965 (20 U.S.C. 1070a-16), where 
                applicable, and notifying workers that the workers may 
                request financial aid administrators at institutions of 
                higher education (as defined in section 102 of such Act 
                (20 U.S.C. 1002)) to use the administrators' discretion 
                under section 479A of such Act (20 U.S.C. 1087tt) to 
                use current year income data, rather than preceding 
                year income data, for determining the amount of need of 
                the workers for Federal financial assistance under 
                title IV of such Act (20 U.S.C. 1070 et seq.).
                    (F) Short-term prevocational services, including 
                development of learning skills, communications skills, 
                interviewing skills, punctuality, personal maintenance 
                skills, and professional conduct to prepare individuals 
                for employment or training.
                    (G) Individual career counseling, including job 
                search and placement counseling, during the period in 
                which the individual is receiving climate change 
                adjustment assistance or training under this part, and 
                after receiving such training for purposes of job 
                placement.
                    (H) Provision of employment statistics information, 
                including the provision of accurate information 
                relating to local, regional, and national labor market 
                areas, including--
                            (i) job vacancy listings in such labor 
                        market areas;
                            (ii) information on jobs skills necessary 
                        to obtain jobs identified in job vacancy 
                        listings described in subparagraph (A);
                            (iii) information relating to local 
                        occupations that are in demand and earnings 
                        potential of such occupations; and
                            (iv) skills requirements for local 
                        occupations described in subparagraph (C).
                    (I) Information relating to the availability of 
                supportive services, including services relating to 
                child care, transportation, dependent care, housing 
                assistance, and need-related payments that are 
                necessary to enable an individual to participate in 
                training.
            (2) Training.--
                    (A) Approval of and payment for training.--If the 
                Secretary determines, with respect to an adversely 
                affected worker that--
                            (i) there is no suitable employment (which 
                        may include technical and professional 
                        employment) available for an adversely affected 
                        worker;
                            (ii) the worker would benefit from 
                        appropriate training;
                            (iii) there is a reasonable expectation of 
                        employment following completion of such 
                        training;
                            (iv) training approved by the Secretary is 
                        reasonably available to the worker from either 
                        governmental agencies or private sources 
                        (including area career and technical education 
                        schools, as defined in section 3 of the Carl D. 
                        Perkins Career and Technical Education Act of 
                        2006 (20 U.S.C. 2302), and employers);
                            (v) the worker is qualified to undertake 
                        and complete such training; and
                            (vi) such training is suitable for the 
                        worker and available at a reasonable cost,
                the Secretary shall approve such training for the 
                worker. Upon such approval, the worker shall be 
                entitled to have payment of the costs of such training 
                (subject to the limitations imposed by this section) 
                paid on the worker's behalf by the Secretary directly 
                or through a voucher system.
                    (B) Distribution.--The Secretary shall establish 
                procedures for the distribution of the funds to States 
                to carry out the training programs approved under this 
                paragraph, and shall make an initial distribution of 
                the funds made available as soon as practicable after 
                the beginning of each fiscal year.
                    (C) Additional rules regarding approval of and 
                payment for training.--
                            (i) For purposes of applying subparagraph 
                        (A)(iii), a reasonable expectation of 
                        employment does not require that employment 
                        opportunities for a worker be available, or 
                        offered, immediately upon the completion of 
                        training approved under such subparagraph.
                            (ii) If the costs of training an adversely 
                        affected worker are paid by the Secretary under 
                        subparagraph (A), no other payment for such 
                        costs may be made under any other provision of 
                        Federal law. No payment may be made under 
                        subparagraph (A) of the costs of training an 
                        adversely affected worker or an adversely 
                        affected incumbent worker if such costs--
                                    (I) have already been paid under 
                                any other provision of Federal law; or
                                    (II) are reimbursable under any 
                                other provision of Federal law and a 
                                portion of such costs have already been 
                                paid under such other provision of 
                                Federal law.
                        The provisions of this clause shall not apply 
                        to, or take into account, any funds provided 
                        under any other provision of Federal law which 
                        are used for any purpose other than the direct 
                        payment of the costs incurred in training a 
                        particular adversely affected worker, even if 
                        such use has the effect of indirectly paying or 
                        reducing any portion of the costs involved in 
                        training the adversely affected worker.
                    (D) Training programs.--The training programs that 
                may be approved under subparagraph (A) include--
                            (i) employer-based training, including--
                                    (I) on-the-job training if approved 
                                by the Secretary under subsection (c); 
                                and
                                    (II) joint labor-management 
                                apprenticeship programs;
                            (ii) any training program provided by a 
                        State pursuant to title I of the Workforce 
                        Investment Act of 1998 (29 U.S.C. 2801 et 
                        seq.);
                            (iii) any programs in career and technical 
                        education described in section 3(5) of the Carl 
                        D. Perkins Career and Technical Education Act 
                        of 2006 (20 U.S.C. 2302(5));
                            (iv) any program of remedial education;
                            (v) any program of prerequisite education 
                        or coursework required to enroll in training 
                        that may be approved under this paragraph;
                            (vi) any training program for which all, or 
                        any portion, of the costs of training the 
                        worker are paid--
                                    (I) under any Federal or State 
                                program other than this part; or
                                    (II) from any source other than 
                                this part;
                            (vii) any training program or coursework at 
                        an accredited institution of higher education 
                        (described in section 102 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1002)), 
                        including a training program or coursework for 
                        the purpose of--
                                    (I) obtaining a degree or 
                                certification; or
                                    (II) completing a degree or 
                                certification that the worker had 
                                previously begun at an accredited 
                                institution of higher education; and
                            (viii) any other training program approved 
                        by the Secretary.
            (3) Supplemental assistance.--The Secretary may, as 
        appropriate, authorize supplemental assistance that is 
        necessary to defray reasonable transportation and subsistence 
        expenses for separate maintenance in a case in which training 
        for a worker is provided in a facility that is not within 
        commuting distance of the regular place of residence of the 
        worker.
    (c) On-the-job Training Requirements.--
            (1) In general.--The Secretary may approve on-the-job 
        training for any adversely affected worker if--
                    (A) the Secretary determines that on-the-job 
                training--
                            (i) can reasonably be expected to lead to 
                        suitable employment with the employer offering 
                        the on-the-job training;
                            (ii) is compatible with the skills of the 
                        worker;
                            (iii) includes a curriculum through which 
                        the worker will gain the knowledge or skills to 
                        become proficient in the job for which the 
                        worker is being trained; and
                            (iv) can be measured by benchmarks that 
                        indicate that the worker is gaining such 
                        knowledge or skills; and
                    (B) the State determines that the on-the-job 
                training program meets the requirements of clauses 
                (iii) and (iv) of subparagraph (A).
            (2) Monthly payments.--The Secretary shall pay the costs of 
        on-the-job training approved under paragraph (1) in monthly 
        installments.
            (3) Contracts for on-the-job training.--
                    (A) In general.--The Secretary shall ensure, in 
                entering into a contract with an employer to provide 
                on-the-job training to a worker under this subsection, 
                that the skill requirements of the job for which the 
                worker is being trained, the academic and occupational 
                skill level of the worker, and the work experience of 
                the worker are taken into consideration.
                    (B) Term of contract.--Training under any such 
                contract shall be limited to the period of time 
                required for the worker receiving on-the-job training 
                to become proficient in the job for which the worker is 
                being trained, but may not exceed 156 weeks in any 
                case.
            (4) Exclusion of certain employers.--The Secretary shall 
        not enter into a contract for on-the-job training with an 
        employer that exhibits a pattern of failing to provide workers 
        receiving on-the-job training from the employer with--
                    (A) continued, long-term employment as regular 
                employees; and
                    (B) wages, benefits, and working conditions that 
                are equivalent to the wages, benefits, and working 
                conditions provided to regular employees who have 
                worked a similar period of time and are doing the same 
                type of work as workers receiving on-the-job training 
                from the employer.
    (d) Administrative and Employment Services Funding.--
            (1) Administrative funding.--In addition to any funds made 
        available to a State to carry out this section for a fiscal 
        year, the State shall receive for the fiscal year a payment in 
        an amount that is equal to 15 percent of the amount of such 
        funds and shall--
                    (A) use not more than \2/3\ of such payment for the 
                administration of the climate change adjustment 
                assistance for workers program under this part, 
                including for--
                            (i) processing waivers of training 
                        requirements under subsection (a)(4); and
                            (ii) collecting, validating, and reporting 
                        data required under this part; and
                    (B) use not less than \1/3\ of such payment for 
                information and employment services under subsection 
                (b)(1).
            (2) Employment services funding.--
                    (A) In general.--In addition to any funds made 
                available to a State to carry out subsection (b)(2) and 
                the payment under paragraph (1) for a fiscal year, the 
                Secretary shall provide to the State for the fiscal 
                year a reasonable payment for the purpose of providing 
                employment and services under subsection (b)(1).
                    (B) Voluntary return of funds.--A State that 
                receives a payment under subparagraph (A) may decline 
                or otherwise return such payment to the Secretary.
    (e) Job Search Assistance.--The Secretary of Labor may provide 
adversely affected workers one-time job search assistance in accordance 
with regulations prescribed by the Secretary. Any job search assistance 
provided shall be available only under the following circumstances and 
conditions:
            (1) The worker is no longer eligible for the climate change 
        adjustment assistance under subsection (a) and has completed 
        the training program required by subsection (b)(1)(E).
            (2) The Secretary determines that the worker cannot 
        reasonably be expected to secure suitable employment in the 
        commuting area in which the worker resides.
            (3) Assistance granted shall provide reimbursement to the 
        worker of all necessary job search expenses as prescribed by 
        the Secretary in regulations. Such reimbursement under this 
        subsection may not exceed $1,500 for any worker.
    (f) Relocation Assistance Authorized.--
            (1) In general.--Any adversely affected worker covered by a 
        certification issued under section 311 may file an application 
        for relocation assistance with the Secretary, and the Secretary 
        may grant the relocation assistance, subject to the terms and 
        conditions of this subsection.
            (2) Conditions for granting assistance.--Relocation 
        assistance may be granted if all of the following terms and 
        conditions are met:
                    (A) Assist an adversely affected worker.--The 
                relocation assistance will assist an adversely affected 
                worker in relocating within the United States.
                    (B) Local employment not available.--The Secretary 
                determines that the worker cannot reasonably be 
                expected to secure suitable employment in the commuting 
                area in which the worker resides.
                    (C) Total separation.--The worker is totally 
                separated from employment at the time relocation 
                commences.
                    (D) Suitable employment obtained.--The worker--
                            (i) has obtained suitable employment 
                        affording a reasonable expectation of long-term 
                        duration in the area in which the worker wishes 
                        to relocate; or
                            (ii) has obtained a bona fide offer of such 
                        employment.
                    (E) Application.--The worker filed an application 
                with the Secretary at such time and in such manner as 
                the Secretary shall specify by regulation.
            (3) Amount of assistance.--Relocation assistance granted to 
        a worker under paragraph (1) includes--
                    (A) all reasonable and necessary expenses 
                (including, subsistence and transportation expenses at 
                levels not exceeding amounts prescribed by the 
                Secretary in regulations) incurred in transporting the 
                worker, the worker's family, and household effects; and
                    (B) a lump sum equivalent to 3 times the worker's 
                average weekly wage, up to a maximum payment of $1,500.
            (4) Limitations.--Relocation assistance may not be granted 
        to a worker unless--
                    (A) the relocation occurs within 182 days after the 
                filing of the application for relocation assistance; or
                    (B) the relocation occurs within 182 days after the 
                conclusion of training, if the worker entered a 
                training program approved by the Secretary under 
                subsection (b)(2).
    (g) Health Insurance Continuation.--Not later than 1 year after the 
date of enactment of this Act, the Secretary of Labor shall prescribe 
regulations to provide, for the period in which an adversely affected 
worker is participating in a training program described in subsection 
(b)(2), 80 percent of the monthly premium of any health insurance 
coverage that an adversely affected worker was receiving from such 
worker's employer prior to the separation from employment described in 
section 311(b), to be paid to any health care insurance plan designated 
by the adversely affected worker receiving assistance under this 
section.

SEC. 313. GENERAL PROVISIONS.

    (a) Agreements With States.--
            (1) In general.--The Secretary is authorized on behalf of 
        the United States to enter into an agreement with any State, or 
        with any State agency (referred to in this section as 
        ``cooperating States'' and ``cooperating State agencies'' 
        respectively). Under such an agreement, the cooperating State 
        or cooperating State agency--
                    (A) as agent of the United States, shall receive 
                applications for, and shall provide, payments on the 
                basis provided in this part;
                    (B) in accordance with paragraph (6), shall make 
                available to adversely affected workers covered by a 
                certification under section 311(d) the employment 
                services described in section 312(b)(1);
                    (C) shall make any certifications required under 
                section 311(d); and
                    (D) shall otherwise cooperate with the Secretary 
                and with other State and Federal agencies in providing 
                payments and services under this part.
        Each agreement under this section shall provide the terms and 
        conditions upon which the agreement may be amended, suspended, 
        or terminated.
            (2) Form and manner of data.--Each agreement under this 
        section shall--
                    (A) provide the Secretary with the authority to 
                collect any data the Secretary determines necessary to 
                meet the requirements of this part; and
                    (B) specify the form and manner in which any such 
                data requested by the Secretary shall be reported.
            (3) Relationship to unemployment insurance.--Each agreement 
        under this section shall provide that an adversely affected 
        worker receiving climate change adjustment assistance under 
        this part shall not be eligible for unemployment insurance 
        otherwise payable to such worker under the laws of the State.
            (4) Review.--A determination by a cooperating State agency 
        with respect to entitlement to program benefits under an 
        agreement is subject to review in the same manner and to the 
        same extent as determinations under the applicable State law 
        and only in that manner and to that extent.
            (5) Coordination.--Any agreement entered into under this 
        section shall provide for the coordination of the 
        administration of the provisions for employment services, 
        training, and supplemental assistance under section 312 and 
        under title I of the Workforce Investment Act of 1998 (29 
        U.S.C. 2801 et seq.) upon such terms and conditions as are 
        established by the Secretary in consultation with the States 
        and set forth in such agreement. Any agency of the State 
        jointly administering such provisions under such agreement 
        shall be considered to be a cooperating State agency for 
        purposes of this part.
            (6) Responsibilities of cooperating agencies.--Each 
        cooperating State agency shall, in carrying out paragraph 
        (1)(B)--
                    (A) advise each worker who applies for unemployment 
                insurance of the benefits under this part and the 
                procedures and deadlines for applying for such 
                benefits;
                    (B) facilitate the early filing of petitions under 
                section 311(a) for any workers that the agency 
                considers are likely to be eligible for benefits under 
                this part;
                    (C) advise each adversely affected worker to apply 
                for training under section 312(b) before, or at the 
                same time, the worker applies for climate change 
                adjustment assistance under section 312(a);
                    (D) perform outreach to, intake of, and orientation 
                for adversely affected workers and adversely affected 
                incumbent workers covered by a certification under 
                section 312(a) with respect to assistance and benefits 
                available under this part;
                    (E) make employment services described in section 
                312(b)(1) available to adversely affected workers and 
                adversely affected incumbent workers covered by a 
                certification under section 311(d) and, if funds 
                provided to carry out this part are insufficient to 
                make such services available, make arrangements to make 
                such services available through other Federal programs; 
                and
                    (F) provide the benefits and reemployment services 
                under this part in a manner that is necessary for the 
                proper and efficient administration of this part, 
                including the use of state agency personnel employed in 
                accordance with a merit system of personnel 
                administration standards, including--
                            (i) making determinations of eligibility 
                        for, and payment of, climate change 
                        readjustment assistance and health care benefit 
                        replacement amounts;
                            (ii) developing recommendations regarding 
                        payments as a bridge to retirement and lump sum 
                        payments to pension plans in accordance with 
                        this subsection; and
                            (iii) the provision of reemployment 
                        services to eligible workers, including 
                        referral to training services.
            (7) Submission of certain information.--In order to promote 
        the coordination of workforce investment activities in each 
        State with activities carried out under this part, any 
        agreement entered into under this section shall provide that 
        the State shall submit to the Secretary, in such form as the 
        Secretary may require, the description and information 
        described in paragraphs (8) and (14) of section 112(b) of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2822(b)) and a 
        description of the State's rapid response activities under 
        section 134(a)(2)(A) of that Act (29 U.S.C. 2864(a)(2)(A)).
            (8) Control measures.--
                    (A) In general.--The Secretary shall require each 
                cooperating State and cooperating State agency to 
                implement effective control measures and to effectively 
                oversee the operation and administration of the climate 
                change adjustment assistance program under this part, 
                including by means of monitoring the operation of 
                control measures to improve the accuracy and timeliness 
                of the data being collected and reported.
                    (B) Definition.--For purposes of subparagraph (A), 
                the term ``control measures'' means measures that--
                            (i) are internal to a system used by a 
                        State to collect data; and
                            (ii) are designed to ensure the accuracy 
                        and verifiability of such data.
            (9) Data reporting.--
                    (A) In general.--Any agreement entered into under 
                this section shall require the cooperating State or 
                cooperating State agency to report to the Secretary on 
                a quarterly basis comprehensive performance 
                accountability data, to consist of--
                            (i) the core indicators of performance 
                        described in subparagraph (B)(i);
                            (ii) the additional indicators of 
                        performance described in subparagraph (B)(ii), 
                        if any; and
                            (iii) a description of efforts made to 
                        improve outcomes for workers under the climate 
                        change adjustment assistance program.
                    (B) Core indicators described.--
                            (i) In general.--The core indicators of 
                        performance described in this subparagraph 
                        are--
                                    (I) the percentage of workers 
                                receiving benefits under this part who 
                                are employed during the second calendar 
                                quarter following the calendar quarter 
                                in which the workers cease receiving 
                                such benefits;
                                    (II) the percentage of such workers 
                                who are employed in each of the third 
                                and fourth calendar quarters following 
                                the calendar quarter in which the 
                                workers cease receiving such benefits; 
                                and
                                    (III) the earnings of such workers 
                                in each of the third and fourth 
                                calendar quarters following the 
                                calendar quarter in which the workers 
                                cease receiving such benefits.
                            (ii) Additional indicators.--The Secretary 
                        and a cooperating State or cooperating State 
                        agency may agree upon additional indicators of 
                        performance for the climate change adjustment 
                        assistance program under this part, as 
                        appropriate.
                    (C) Standards with respect to reliability of 
                data.--In preparing the quarterly report required by 
                subparagraph (A), each cooperating State or cooperating 
                State agency shall establish procedures that are 
                consistent with guidelines to be issued by the 
                Secretary to ensure that the data reported are valid 
                and reliable.
            (10) Verification of eligibility for program benefits.--
                    (A) In general.--An agreement under this section 
                shall provide that the State shall periodically 
                redetermine that a worker receiving benefits under this 
                part who is not a citizen or national of the United 
                States remains in a satisfactory immigration status. 
                Once satisfactory immigration status has been initially 
                verified through the immigration status verification 
                system described in section 1137(d) of the Social 
                Security Act (42 U.S.C. 1320b-7(d)) for purposes of 
                establishing a worker's eligibility for unemployment 
                compensation, the State shall reverify the worker's 
                immigration status if the documentation provided during 
                initial verification will expire during the period in 
                which that worker is potentially eligible to receive 
                benefits under this part. The State shall conduct such 
                redetermination in a timely manner, utilizing the 
                immigration status verification system described in 
                section 1137(d) of the Social Security Act (42 U.S.C. 
                1320b-7(d)).
                    (B) Procedures.--The Secretary shall establish 
                procedures to ensure the uniform application by the 
                States of the requirements of this paragraph.
    (b) Administration Absent State Agreement.--
            (1) In any State where there is no agreement in force 
        between a State or its agency under subsection (a), the 
        Secretary shall promulgate regulations for the performance of 
        all necessary functions under section 312, including provision 
        for a fair hearing for any worker whose application for 
        payments is denied.
            (2) A final determination under paragraph (1) with respect 
        to entitlement to program benefits under section 312 is subject 
        to review by the courts in the same manner and to the same 
        extent as is provided by section 205(g) of the Social Security 
        Act (42 U.S.C. 405(g)).
    (c) Prohibition on Contracting With Private Entities.--Neither the 
Secretary nor a State may contract with any private for-profit or 
nonprofit entity for the administration of the climate change 
adjustment assistance program under this part.
    (d) Payment to the States.--
            (1) In general.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        cooperating State the sums necessary to enable such State as 
        agent of the United States to make payments provided for by 
        this part.
            (2) Restriction.--All money paid a State under this 
        subsection shall be used solely for the purposes for which it 
        is paid; and money so paid which is not used for such purposes 
        shall be returned, at the time specified in the agreement under 
        this section, to the Secretary of the Treasury.
            (3) Bonds.--Any agreement under this section may require 
        any officer or employee of the State certifying payments or 
        disbursing funds under the agreement or otherwise participating 
        in the performance of the agreement, to give a surety bond to 
        the United States in such amount as the Secretary may deem 
        necessary, and may provide for the payment of the cost of such 
        bond from funds for carrying out the purposes of this part.
    (e) Labor Standards.--
            (1) Prohibition on displacement.--An individual in an 
        apprenticeship program or on-the-job training program under 
        this part shall not displace (including a partial displacement, 
        such as a reduction in the hours of non-overtime work, wages, 
        or employment benefits) any employed employee.
            (2) Prohibition on impairment of contracts.--An 
        apprenticeship program or on-the-job raining program under this 
        Act shall not impair an existing contract for services or 
        collective bargaining agreement, and no such activity that 
        would be inconsistent with the terms of a collective bargaining 
        agreement shall be undertaken without the written concurrence 
        of the labor organization and employer concerned.
            (3) Additional standards.--The Secretary, or a State acting 
        under an agreement described in subsection (a) may pay the 
        costs of on-the-job training, notwithstanding any other 
        provision of this section, only if--
                    (A) in the case of training which would be 
                inconsistent with the terms of a collective bargaining 
                agreement, the written concurrence of the labor 
                organization concerned has been obtained;
                    (B) the job for which such adversely affected 
                worker is being trained is not being created in a 
                promotional line that will infringe in any way upon the 
                promotional opportunities of currently employed 
                individuals;
                    (C) such training is not for the same occupation 
                from which the worker was separated and with respect to 
                which such worker's group was certified pursuant to 
                section 311(d);
                    (D) the employer is provided reimbursement of not 
                more than 50 percent of the wage rate of the 
                participant, for the cost of providing the training and 
                additional supervision related to the training; and
                    (E) the employer has not received payment under 
                with respect to any other on-the-job training provided 
                by such employer which failed to meet the requirements 
                of subparagraphs (A) through (D).
    (f) Definitions.--As used in this part the following definitions 
apply:
            (1) The term ``adversely affected employment'' means 
        employment at an employment site, if workers at such site are 
        eligible to apply for adjustment assistance under this part.
            (2) The term ``adversely affected worker'' means an 
        individual who has been totally or partially separated from 
        employment and is eligible to apply for adjustment assistance 
        under this part.
            (3) The term ``average weekly wage'' means \1/13\ of the 
        total wages paid to an individual in the quarter in which the 
        individual's total wages were highest among the first 4 of the 
        last 5 completed calendar quarters immediately before the 
        quarter in which occurs the week with respect to which the 
        computation is made. Such week shall be the week in which total 
        separation occurred, or, in cases where partial separation is 
        claimed, an appropriate week, as defined in regulations 
        prescribed by the Secretary.
            (4) The term ``average weekly hours'' means the average 
        hours worked by the individual (excluding overtime) in the 
        employment from which he has been or claims to have been 
        separated in the 52 weeks (excluding weeks during which the 
        individual was sick or on vacation) preceding the week 
        specified in the last sentence of paragraph (4).
            (5) The term ``benefit period'' means, with respect to an 
        individual--
                    (A) the benefit year and any ensuing period, as 
                determined under applicable State law, during which the 
                individual is eligible for regular compensation, 
                additional compensation, or extended compensation; or
                    (B) the equivalent to such a benefit year or 
                ensuing period provided for under the applicable 
                Federal unemployment insurance law.
            (6) The term ``consumer goods manufacturing'' means the 
        electrical equipment, appliance, and component manufacturing 
        industry and transportation equipment manufacturing.
            (7) The term ``employment site'' means a single facility or 
        site of employment.
            (8) The term ``energy-intensive manufacturing industries'' 
        means all industrial sectors, entities, or groups of entities 
        that meet the energy or greenhouse gas intensity criteria in 
        section 763(b)(2)(A) of the Clean Air Act based on the most 
        recent data available.
            (9) The term ``energy producing and transforming 
        industries'' means the coal mining industry, oil and gas 
        extraction, electricity power generation, transmission and 
        distribution, and natural gas distribution.
            (10) The term ``industries dependent upon energy 
        industries'' means rail transportation and pipeline 
        transportation industries.
            (11) The term ``on-the-job training'' means training 
        provided by an employer to an individual who is employed by the 
        employer.
            (12) The terms ``partial separation'' and ``partially 
        separated'' refer, with respect to an individual who has not 
        been totally separated, that such individual has had--
                    (A) his or her hours of work reduced to 80 percent 
                or less of his average weekly hours in adversely 
                affected employment; and
                    (B) his or her wages reduced to 80 percent or less 
                of his average weekly wage in such adversely affected 
                employment.
            (13) The term ``public agency'' means a department or 
        agency of a State or political subdivision of a State or of the 
        Federal Government.
            (14) The term ``Secretary'' means the Secretary of Labor.
            (15) The term ``service workers'' means workers supplying 
        support or auxiliary services to an employment site.
            (16) The term ``State'' includes the District of Columbia 
        and the Commonwealth of Puerto Rico: and the term ``United 
        States'' when used in the geographical sense includes such 
        Commonwealth.
            (17) The term ``State agency'' means the agency of the 
        State which administers the State law.
            (18) The term ``State law'' means the unemployment 
        insurance law of the State approved by the Secretary of Labor 
        under section 3304 of the Internal Revenue Code of 1986.
            (19) The terms ``total separation'' and ``totally 
        separated'' refer to the layoff or severance of an individual 
        from employment with an employer in which adversely affected 
        employment exists.
            (20) The term ``unemployment insurance'' means the 
        unemployment compensation payable to an individual under any 
        State law or Federal unemployment compensation law, including 
        chapter 85 of title 5, United States Code, and the Railroad 
        Unemployment Insurance Act (45 U.S.C. 351 et seq.). The terms 
        ``regular compensation'', ``additional compensation'', and 
        ``extended compensation'' have the same respective meanings 
        that are given them in section 205(2), (3), and (4) of the 
        Federal-State Extended Unemployment Compensation Act of 1970 
        (26 U.S.C. 3304 note; Public Law 91-373).
            (21) The term ``week'' means a week as defined in the 
        applicable State law.
            (22) The term ``week of unemployment'' means a week of 
        total, part-total, or partial unemployment as determined under 
        the applicable State law or Federal unemployment insurance law.
    (g) Special Rule With Respect to Military Service.--
            (1) In general.--Notwithstanding any other provision of 
        this part, the Secretary may waive any requirement of this part 
        that the Secretary determines is necessary to ensure that an 
        adversely affected worker who is a member of a reserve 
        component of the Armed Forces and serves a period of duty 
        described in paragraph (2) is eligible to receive climate 
        change adjustment assistance, training, and other benefits 
        under this part in the same manner and to the same extent as if 
        the worker had not served the period of duty.
            (2) Period of duty described.--An adversely affected worker 
        serves a period of duty described in this paragraph if, before 
        completing training under this part, the worker--
                    (A) serves on active duty for a period of more than 
                30 days under a call or order to active duty of more 
                than 30 days; or
                    (B) in the case of a member of the Army National 
                Guard of the United States or Air National Guard of the 
                United States, performs full-time National Guard duty 
                under section 502(f) of title 32, United States Code, 
                for 30 consecutive days or more when authorized by the 
                President or the Secretary of Defense for the purpose 
                of responding to a national emergency declared by the 
                President and supported by Federal funds.
    (h) Fraud and Recovery of Overpayments.--
            (1) Recovery of payments to which an individual was not 
        entitled.--If the Secretary or a court of competent 
        jurisdiction determines that any person has received any 
        payment under this part to which the individual was not 
        entitled, such individual shall be liable to repay such amount 
        to the Secretary, as the case may be, except that the Secretary 
        shall waive such repayment if such agency or the Secretary 
        determines that--
                    (A) the payment was made without fault on the part 
                of such individual; and
                    (B) requiring such repayment would cause a 
                financial hardship for the individual (or the 
                individual's household, if applicable) when taking into 
                consideration the income and resources reasonably 
                available to the individual (or household) and other 
                ordinary living expenses of the individual (or 
                household).
            (2) Means of recovery.--Unless an overpayment is otherwise 
        recovered, or waived under paragraph (1), the Secretary shall 
        recover the overpayment by deductions from any sums payable to 
        such person under this part, under any Federal unemployment 
        compensation law or other Federal law administered by the 
        Secretary which provides for the payment of assistance with 
        respect to unemployment. Any amount recovered under this 
        section shall be returned to the Treasury of the United States.
            (3) Penalties for fraud.--Any person who--
                    (A) makes a false statement of a material fact 
                knowing it to be false, or knowingly fails to disclose 
                a material fact, for the purpose of obtaining or 
                increasing for that person or for any other person any 
                payment authorized to be furnished under this part; or
                    (B) makes a false statement of a material fact 
                knowing it to be false, or knowingly fails to disclose 
                a material fact, when providing information to the 
                Secretary during an investigation of a petition under 
                section 311(c);
shall be imprisoned for not more than one year, or fined under title 
18, United States Code, or both, and be ineligible for any further 
payments under this part.
    (i) Regulations.--The Secretary shall prescribe such regulations as 
may be necessary to carry out the provisions of this part.
    (j) Study on Older Workers.--The Secretary shall conduct a study 
examine the circumstances of older adversely affected workers and the 
ability of such workers to access their retirement benefits. The 
Secretary shall transmit a report to Congress not later than 2 years 
after the date of enactment of this Act on the findings of the study 
and the Secretary's recommendations on how to ensure that adversely 
affected workers within 2 years of retirement are able to access their 
retirement benefits.
    (k) Spending Limit.--
            (1) In general.--For each fiscal year, the total amount of 
        funds disbursed for the purposes described in section 312 shall 
        not exceed the amount deposited in that fiscal year into the 
        Worker Transition Fund established under section 209 of 
        division B.
            (2) Subsequent fiscal years.--The annual spending limit for 
        any succeeding fiscal year shall be increased by the 
        difference, if any, between the amount of the disbursements for 
        the prior fiscal year and the spending limitation for that 
        fiscal year.
            (3) Administration.--
                    (A) In general.--The Secretary shall promulgate 
                rules to ensure that the spending limit established 
                under this subsection is not exceeded.
                    (B) Rules.--The rules shall--
                            (i) provide that workers who receive any of 
                        the benefits described in section 312 receive 
                        full benefits; and
                            (ii) include the establishment of a waiting 
                        list for workers in the event that the requests 
                        for assistance exceed the spending limit.

           Subtitle B--International Climate Change Programs

SEC. 321. STRATEGIC INTERAGENCY BOARD ON INTERNATIONAL CLIMATE 
              INVESTMENT.

    (a) Establishment.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall establish the 
        ``Strategic Interagency Board on International Climate 
        Investment'' (referred to in this subtitle as the ``Board'').
            (2) Composition.--The Board shall be composed of--
                    (A) the Secretary of State;
                    (B) the Administrator of United States Agency for 
                International Development;
                    (C) the Secretary of Energy;
                    (D) the Secretary of the Treasury;
                    (E) the Secretary of Commerce;
                    (F) the Secretary of Agriculture;
                    (G) the Administrator; and
                    (H) such other relevant officials as the President 
                may designate.
    (b) Duties.--The duties of the Board shall include assessing, 
monitoring, and evaluating the progress and contributions of relevant 
departments and agencies of the Federal Government in supporting 
financing for international climate change activities.

SEC. 322. EMISSION REDUCTIONS FROM REDUCED DEFORESTATION.

    Title VII of the Clean Air Act (as amended by section 101 of 
division B) is amended by adding at the end the following:

               ``PART E--SUPPLEMENTAL EMISSION REDUCTIONS

``SEC. 751. DEFINITIONS.

    ``In this part:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the United States Agency for International 
        Development.
            ``(2) Deforestation.--The term `deforestation' means a 
        change in land use from a forest to any other land use.
            ``(3) Degradation.--The term `degradation', with respect to 
        a forest, is any reduction in the carbon stock of a forest due 
        to the impact of human land-use activities.
            ``(4) Emission reductions.--The term `emission reductions' 
        means greenhouse gas emission reductions achieved from reduced 
        or avoided deforestation under this title.
            ``(5) 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.

``SEC. 752. PURPOSES.

    ``The purposes of this part are to provide United States assistance 
to developing countries--
            ``(1) to develop, implement and improve nationally 
        appropriate greenhouse gas mitigation policies and actions that 
        reduce deforestation and forest degradation or conserve or 
        restore forest ecosystems, in a measurable, reportable, and 
        verifiable manner; and
            ``(2) in a manner that is consistent with and enhances the 
        implementation of complementary United States policies that 
        support the good governance of forests, biodiversity 
        conservation, and environmentally sustainable development, 
        while taking local communities, most vulnerable populations and 
        communities, particularly forest-dependent communities and 
        indigenous peoples into consideration.

``SEC. 753. EMISSION REDUCTIONS FROM REDUCED DEFORESTATION.

    ``(a) In General.--Not later than 2 years after the date of the 
enactment of this part, the Administrator, in consultation with the 
Administrator of the Environmental Protection Agency, the Secretary of 
Agriculture, and the head of any other appropriate agency, shall 
establish a program to provide assistance to reduce greenhouse gas 
emissions from deforestation in developing countries, in accordance 
with this title.
    ``(b) Objectives.--The objectives of the program established under 
this section shall be--
            ``(1) to reduce greenhouse gas emissions from deforestation 
        in developing countries by at least 720,000,000 tons of carbon 
        dioxide equivalent in 2020, and a cumulative quantity of at 
        least 6,000,000,000 tons of carbon dioxide equivalent by 
        December 31, 2025, with additional reductions in subsequent 
        years;
            ``(2) to assist developing countries in preparing to 
        participate in international markets for international offset 
        credits for reduced emissions from deforestation; and
            ``(3) to preserve existing forest carbon stocks in 
        countries where such forest carbon may be vulnerable to 
        international leakage.
    ``(c) 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.''.

SEC. 323. INTERNATIONAL CLEAN ENERGY DEPLOYMENT PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to assist developing countries in activities that 
        reduce, sequester, or avoid greenhouse gas emissions;
            (2) to encourage those countries to shift toward low-carbon 
        development, and promote a successful global agreement under 
        the United Nations Framework Convention on Climate Change, done 
        at New York on May 9, 1992 (or a successor agreement) (referred 
        to in this subtitle as the ``Convention''); and
            (3) to promote robust compliance with and enforcement of 
        existing international legal requirements for the protection of 
        intellectual property rights.
    (b) Establishment of International Clean Energy Deployment 
Program.--
            (1) Establishment.--The Secretary of State, in consultation 
        with an interagency group designated by the President, shall 
        establish an International Clean Energy Deployment Program in 
        accordance with this section.
            (2) Distribution of assistance.--The Secretary of State, or 
        the head of such other Federal agency as the President may 
        designate, shall direct the distribution of funding to carry 
        out the Clean Energy Technology Program--
                    (A) in the form of bilateral assistance;
                    (B) to multilateral funds or international 
                institutions pursuant to the Convention or an agreement 
                negotiated under the Convention; or
                    (C) through a combination of the mechanisms 
                identified under subparagraphs (A) and (B).
    (c) Determination of Qualifying Activities.--Assistance under this 
subtitle may be provided only to qualifying entities for clean 
technology activities (including building relevant technical and 
institutional capacity) that contribute to substantial, measurable, 
reportable, and verifiable reductions, sequestration, or avoidance of 
greenhouse gas emissions.

SEC. 324. INTERNATIONAL CLIMATE CHANGE ADAPTATION AND GLOBAL SECURITY 
              PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to provide assistance to the most vulnerable developing 
        countries, particularly to the most vulnerable communities and 
        populations in those countries; and
            (2) to support the development and implementation of 
        climate change adaptation programs in a way that protects and 
        promotes interests of the United States, to the extent those 
        interests may be advanced by minimizing, averting, or 
        increasing resilience to climate change impacts.
    (b) International Climate Change Adaptation and Global Security 
Program.--
            (1) Establishment.--The Secretary of State, in consultation 
        with the Administrator of the United States Agency for 
        International Development, the Secretary of the Treasury, and 
        the Administrator, shall establish an International Climate 
        Change Adaptation and Global Security Program in accordance 
        with this section.
            (2) Distribution of assistance.--The Secretary of State, or 
        the head of such other Federal agency as the President may 
        designate, after consultation with the Secretary of the 
        Treasury, the Administrator of the United States Agency for 
        International Development, and the Administrator, shall direct 
        the distribution of funding to carry out the International 
        Climate Change Adaptation and Global Security Program--
                    (A) in the form of bilateral assistance;
                    (B) to multilateral funds or international 
                institutions pursuant to the Convention or an agreement 
                negotiated under the Convention; or
                    (C) through a combination of the mechanisms 
                identified under subparagraphs (A) and (B).

SEC. 325. EVALUATION AND REPORTS.

    (a) Monitoring, Evaluation, and Enforcement.--The Board shall 
establish and implement a system to monitor and evaluate the 
effectiveness and efficiency of assistance provided under this subtitle 
by including evaluation criteria, such as performance indicators.
    (b) Reports and Review.--
            (1) Annual report.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the Board shall 
        submit to the appropriate committees of Congress a report that 
        describes--
                    (A) the steps Federal agencies have taken, and the 
                progress made, toward accomplishing the objectives of 
                this section; and
                    (B) the ramifications of any potentially 
                destabilizing impacts climate change may have on the 
                interests of the United States.
            (2) Reviews.--Not later than 3 years after the date of 
        enactment of this Act, and triennially thereafter, the Board, 
        in cooperation with the National Academy of Sciences and other 
        appropriate research and development institutions, shall--
                    (A) review the global needs and opportunities for 
                climate change investment in developing countries; and
                    (B) submit to Congress a report that describes the 
                findings of the review.

SEC. 326. REPORT ON CLIMATE ACTIONS OF MAJOR ECONOMIES.

    (a) In General.--The Secretary of State, in cooperation with the 
Board, shall prepare an interagency report on climate change and energy 
policy of the 5 countries that, of the countries that are not members 
of the Organisation for Economic Co-Operation and Development, emit the 
greatest annual quantity of greenhouse gases.
    (b) Purposes.--The purposes of the report shall be--
            (1) to provide to Congress and the public of the United 
        States--
                    (A) a better understanding of the actions the 
                countries described in subsection (a) are taking to 
                reduce greenhouse gas emissions; and
                    (B) an assessment of the climate change and energy 
                policy commitments and actions of those countries; and
            (2) to identify the means by which the United States can 
        assist those countries in achieving such a reduction.
    (c) Submission to Congress.--Not later than 15 months after the 
date of enactment of this Act, the Secretary of State shall submit to 
the appropriate committees of Congress the report prepared under this 
section.

                 Subtitle C--Adapting to Climate Change

                      PART 1--DOMESTIC ADAPTATION

         Subpart A--National Climate Change Adaptation Program

SEC. 341. NATIONAL CLIMATE CHANGE ADAPTATION PROGRAM.

    The President shall establish within the United States Global 
Change Research Program a National Climate Change Adaptation Program 
for the purpose of increasing the overall effectiveness of Federal 
climate change adaptation efforts.

SEC. 342. CLIMATE SERVICES.

    The Secretary of Commerce, acting through the Administrator of the 
National Oceanic and Atmospheric Administration (NOAA), shall establish 
within NOAA a National Climate Service to develop climate information, 
data, forecasts, and warnings at national and regional scales, and to 
distribute information related to climate impacts to State, local, and 
tribal governments and the public to facilitate the development and 
implementation of strategies to reduce society's vulnerability to 
climate variability and change.

              Subpart B--Public Health and Climate Change

SEC. 351. SENSE OF CONGRESS ON PUBLIC HEALTH AND CLIMATE CHANGE.

    It is the sense of the Congress that the Federal Government, in 
cooperation with international, State, and local governments, Indian 
tribes, concerned public and private organizations, and citizens, 
should use all practicable means and measures--
            (1) to assist the efforts of public health and health care 
        professionals, first responders, States, Indian tribes, 
        municipalities, and local communities to incorporate measures 
        to prepare health systems to respond to the impacts of climate 
        change;
            (2) to ensure--
                    (A) that the Nation's health professionals have 
                sufficient information to prepare for and respond to 
                the adverse health impacts of climate change;
                    (B) the utility and value of scientific research in 
                advancing understanding of--
                            (i) the health impacts of climate change; 
                        and
                            (ii) strategies to prepare for and respond 
                        to the health impacts of climate change;
                    (C) the identification of communities vulnerable to 
                the health effects of climate change and the 
                development of strategic response plans to be carried 
                out by health professionals for those communities;
                    (D) the improvement of health status and health 
                equity through efforts to prepare for and respond to 
                climate change; and
                    (E) the inclusion of health policy in the 
                development of climate change responses;
            (3) to encourage further research, interdisciplinary 
        partnership, and collaboration among stakeholders in order to--
                    (A) understand and monitor the health impacts of 
                climate change; and
                    (B) improve public health knowledge and response 
                strategies to climate change;
            (4) to enhance preparedness activities, and public health 
        infrastructure, relating to climate change and health;
            (5) to encourage each and every American to learn about the 
        impacts of climate change on health; and
            (6) to assist the efforts of developing nations to 
        incorporate measures to prepare health systems to respond to 
        the impacts of climate change.

SEC. 352. RELATIONSHIP TO OTHER LAWS.

    Nothing in this subpart in any manner limits the authority provided 
to or responsibility conferred on any Federal department or agency by 
any provision of any law (including regulations) or authorizes any 
violation of any provision of any law (including regulations), 
including any health, energy, environmental, transportation, or any 
other law or regulation.

SEC. 353. NATIONAL STRATEGIC ACTION PLAN.

    (a) Requirement.--
            (1) In general.--The Secretary of Health and Human 
        Services, within 2 years after the date of the enactment of 
        this Act, on the basis of the best available science, and in 
        consultation pursuant to paragraph (2), shall publish a 
        strategic action plan to assist health professionals in 
        preparing for and responding to the impacts of climate change 
        on public health in the United States and other nations, 
        particularly developing nations.
            (2) Consultation.--In developing or making any revision to 
        the national strategic action plan, the Secretary shall--
                    (A) consult with the Director of the Centers for 
                Disease Control and Prevention, the Administrator of 
                the Environmental Protection Agency, the Director of 
                the National Institutes of Health, the Director of the 
                Indian Health Service, the Secretary of Energy, other 
                appropriate Federal agencies, Indian tribes, State and 
                local governments, public health organizations, 
                scientists, and other interested stakeholders; and
                    (B) provide opportunity for public input.
    (b) Contents.--
            (1) In general.--The Secretary shall assist health 
        professionals in preparing for and responding effectively and 
        efficiently to the health effects of climate change through 
        measures including--
                    (A) developing, improving, integrating, and 
                maintaining domestic and international disease 
                surveillance systems and monitoring capacity to respond 
                to health-related effects of climate change, including 
                on topics addressing--
                            (i) water, food, and vector borne 
                        infectious diseases and climate change;
                            (ii) pulmonary effects, including responses 
                        to aeroallergens;
                            (iii) cardiovascular effects, including 
                        impacts of temperature extremes;
                            (iv) air pollution health effects, 
                        including heightened sensitivity to air 
                        pollution;
                            (v) hazardous algal blooms;
                            (vi) mental and behavioral health impacts 
                        of climate change;
                            (vii) the health of refugees, displaced 
                        persons, and vulnerable communities;
                            (viii) the implications for communities 
                        vulnerable to health effects of climate change, 
                        as well as strategies for responding to climate 
                        change within these communities; and
                            (ix) local and community-based health 
                        interventions for climate-related health 
                        impacts;
                    (B) creating tools for predicting and monitoring 
                the public health effects of climate change on the 
                international, national, regional, State, tribal, and 
                local levels, and providing technical support to assist 
                in their implementation;
                    (C) developing public health communications 
                strategies and interventions for extreme weather events 
                and disaster response situations;
                    (D) identifying and prioritizing communities and 
                populations vulnerable to the health effects of climate 
                change, and determining actions and communication 
                strategies that should be taken to inform and protect 
                these communities and populations from the health 
                effects of climate change;
                    (E) developing health communication, public 
                education, and outreach programs aimed at public health 
                and health care professionals, as well as the general 
                public, to promote preparedness and response strategies 
                relating to climate change and public health, including 
                the identification of greenhouse gas reduction 
                behaviors that are health-promoting; and
                    (F) developing academic and regional centers of 
                excellence devoted to--
                            (i) researching relationships between 
                        climate change and health;
                            (ii) expanding and training the public 
                        health workforce to strengthen the capacity of 
                        such workforce to respond to and prepare for 
                        the health effects of climate change;
                            (iii) creating and supporting academic 
                        fellowships focusing on the health effects of 
                        climate change; and
                            (iv) training senior health ministry 
                        officials from developing nations to strengthen 
                        the capacity of such nations to--
                                    (I) prepare for and respond to the 
                                health effects of climate change; and
                                    (II) build an international network 
                                of public health professionals with the 
                                necessary climate change knowledge 
                                base;
                    (G) using techniques, including health impact 
                assessments, to assess various climate change public 
                health preparedness and response strategies on 
                international, national, State, regional, tribal, and 
                local levels, and make recommendations as to those 
                strategies that best protect the public health;
                    (H)(i) assisting in the development, 
                implementation, and support of State, regional, tribal, 
                and local preparedness, communication, and response 
                plans (including with respect to the health departments 
                of such entities) to anticipate and reduce the health 
                threats of climate change; and
                    (ii) pursuing collaborative efforts to develop, 
                integrate, and implement such plans;
                    (I) creating a program to advance research as it 
                relates to the effects of climate change on public 
                health across Federal agencies, including research to--
                            (i) identify and assess climate change 
                        health effects preparedness and response 
                        strategies;
                            (ii) prioritize critical public health 
                        infrastructure projects related to potential 
                        climate change impacts that affect public 
                        health; and
                            (iii) coordinate preparedness for climate 
                        change health impacts, including the 
                        development of modeling and forecasting tools;
                    (J) providing technical assistance for the 
                development, implementation, and support of 
                preparedness and response plans to anticipate and 
                reduce the health threats of climate change in 
                developing nations; and
                    (K) carrying out other activities determined 
                appropriate by the Secretary to plan for and respond to 
                the impacts of climate change on public health.
    (c) Revision.--The Secretary shall revise the national strategic 
action plan not later than July 1, 2014, and every 4 years thereafter, 
to reflect new information collected pursuant to implementation of the 
national strategic action plan and otherwise, including information 
on--
            (1) the status of critical environmental health parameters 
        and related human health impacts;
            (2) the impacts of climate change on public health; and
            (3) advances in the development of strategies for preparing 
        for and responding to the impacts of climate change on public 
        health.
    (d) Implementation.--
            (1) Implementation through hhs.--The Secretary shall 
        exercise the Secretary's authority under this subpart and other 
        provisions of Federal law to achieve the goals and measures of 
        the national strategic action plan.
            (2) Other public health programs and initiatives.--The 
        Secretary and Federal officials of other relevant Federal 
        agencies shall administer public health programs and 
        initiatives authorized by provisions of law other than this 
        subpart, subject to the requirements of such statutes, in a 
        manner designed to achieve the goals of the national strategic 
        action plan.
            (3) Specific activities.--In furtherance of the national 
        strategic action plan, the Secretary shall--
                    (A) conduct scientific research to assist health 
                professionals in preparing for and responding to the 
                impacts of climate change on public health; and
                    (B) provide funding for--
                            (i) research on the health effects of 
                        climate change; and
                            (ii) preparedness planning on the 
                        international, national, State, tribal, 
                        regional, and local levels to respond to or 
                        reduce the burden of health effects of climate 
                        change; and
                    (C) carry out other activities determined 
                appropriate by the Secretary to prepare for and respond 
                to the impacts of climate change on public health.

SEC. 354. ADVISORY BOARD.

    (a) Establishment.--The Secretary shall establish a permanent 
science advisory board comprised of not less than 10 and not more than 
20 members.
    (b) Appointment of Members.--The Secretary shall appoint the 
members of the science advisory board from among individuals--
            (1) who have expertise in public health and human services, 
        climate change, and other relevant disciplines; and
            (2) at least \1/2\ of whom are recommended by the President 
        of the National Academy of Sciences.
    (c) Functions.--The science advisory board shall--
            (1) provide scientific and technical advice and 
        recommendations to the Secretary on the domestic and 
        international impacts of climate change on public health, 
        populations and regions particularly vulnerable to the effects 
        of climate change, and strategies and mechanisms to prepare for 
        and respond to the impacts of climate change on public health; 
        and
            (2) advise the Secretary regarding the best science 
        available for purposes of issuing the national strategic action 
        plan.

SEC. 355. REPORTS.

    (a) Needs Assessment.--
            (1) In general.--The Secretary shall seek to enter into, by 
        not later than 6 months after the date of the enactment of this 
        Act, an agreement with the National Research Council and the 
        Institute of Medicine to complete a report that--
                    (A) assesses the needs for health professionals to 
                prepare for and respond to climate change impacts on 
                public health; and
                    (B) recommends programs to meet those needs.
            (2) Submission.--The agreement under paragraph (1) shall 
        require the completed report to be submitted to the Congress 
        and the Secretary and made publicly available not later than 1 
        year after the date of the agreement.
    (b) Climate Change Health Protection and Promotion Reports.--
            (1) In general.--The Secretary, in consultation with the 
        advisory board established under section 354, shall ensure the 
        issuance of reports to aid health professionals in preparing 
        for and responding to the adverse health effects of climate 
        change that--
                    (A) review scientific developments on health 
                impacts of climate change; and
                    (B) recommend changes to the national strategic 
                action plan.
            (2) Submission.--The Secretary shall submit the reports 
        required by paragraph (1) to the Congress and make such reports 
        publicly available not later than July 1, 2013, and every 4 
        years thereafter.

SEC. 356. DEFINITIONS.

    In this subpart:
            (1) Health impact assessment.--The term ``health impact 
        assessment'' means a combination of procedures, methods, and 
        tools by which a policy, program, or project may be judged as 
        to its potential effects on the health of a population, and the 
        distribution of those effects within the population.
            (2) National strategic action plan.--The term ``national 
        strategic action plan'' means the plan issued and revised under 
        section 353.
            (3) Secretary.--Unless otherwise specified, the term 
        ``Secretary'' means the Secretary of Health and Human Services.

Subpart C--Climate Change Safeguards for Natural Resources Conservation

SEC. 361. PURPOSES.

    The purposes of this subpart are--
            (1) to establish an integrated Federal program that 
        responds to ongoing and expected impacts of climate change, 
        including, where applicable, ocean acidification, drought, 
        flooding, and wildfire, by protecting, restoring, and 
        conserving the natural resources of the United States; and
            (2) to provide financial support and incentives for 
        programs, strategies, and activities that respond to threats of 
        climate change, including, where applicable, ocean 
        acidification, drought, flooding, and wildfire, by protecting, 
        restoring, and conserving the natural resources of the United 
        States.

SEC. 362. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION POLICY.

    It is the policy of the Federal Government, in cooperation with 
State and local governments, Indian tribes, and other interested 
stakeholders, to use all practicable means to protect, restore, and 
conserve natural resources so that natural resources become more 
resilient, adapt to, and withstand the ongoing and expected impacts of 
climate change, including, where applicable, ocean acidification, 
drought, flooding, and wildfire.

SEC. 363. DEFINITIONS.

    In this subpart:
            (1) Account.--The term ``Account'' means the Natural 
        Resources Climate Change Adaption Account established by 
        section 370(a).
            (2) Administrators.--The term ``Administrators'' means--
                    (A) the Administrator of the National Oceanic and 
                Atmospheric Administration; and
                    (B) the Director of the United States Geological 
                Survey.
            (3) Board.--The term ``Board'' means the Science Advisory 
        Board established by section 367(f)(1).
            (4) Center.--The term ``Center'' means the National Climate 
        Change and Wildlife Science Center described by section 
        367(e)(1).
            (5) Coastal state.--The term ``coastal State'' has the 
        meaning given the term ``coastal state'' in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
            (6) Corridors.--The term ``corridors'' means areas that--
                    (A) provide connectivity, over different time 
                scales, of habitats or potential habitats; and
                    (B) facilitate terrestrial, marine, estuarine, and 
                freshwater fish, wildlife, or plant movement necessary 
                for migration, gene flow, or dispersal, or to respond 
                to the ongoing and expected impacts of climate change, 
                including, where applicable, ocean acidification, 
                drought, flooding, and wildfire.
            (7) Ecological processes.--The term ``ecological 
        processes'' means biological, chemical, or physical interaction 
        between the biotic and abiotic components of an ecosystem, 
        including--
                    (A) nutrient cycling;
                    (B) pollination;
                    (C) predator-prey relationships;
                    (D) soil formation;
                    (E) gene flow;
                    (F) disease epizootiology;
                    (G) larval dispersal and settlement;
                    (H) hydrological cycling;
                    (I) decomposition; and
                    (J) disturbance regimes, such as fire and flooding.
            (8) Habitat.--The term ``habitat'' means the physical, 
        chemical, and biological properties that fish, wildlife, or 
        plants use for growth, reproduction, survival, food, water, or 
        cover (whether on land, in water, or in an area or region).
            (9) 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).
            (10) Natural resources.--The term ``natural resources'' 
        means fish, wildlife, plants, habitats, and terrestrial, 
        freshwater, estuarine, and marine ecosystems of the United 
        States.
            (11) Natural resources adaptation.--The term ``natural 
        resources adaptation'' means the protection, restoration, and 
        conservation of natural resources so that natural resources 
        become more resilient, adapt to, and withstand the ongoing and 
        expected impacts of climate change, including, where 
        applicable, ocean acidification, drought, flooding, and 
        wildfire.
            (12) Panel.--The term ``Panel'' means the Natural Resources 
        Climate Change Adaptation Panel established under section 
        365(a).
            (13) Resilience; resilient.--The terms ``resilience'' and 
        ``resilient'' mean--
                    (A) the ability to resist or recover from 
                disturbance; and
                    (B) the ability to preserve diversity, 
                productivity, and sustainability.
            (14) State.--The term ``State'' means--
                    (A) a State of the United States;
                    (B) the District of Columbia;
                    (C) American Samoa;
                    (D) Guam;
                    (E) the Commonwealth of the Northern Mariana 
                Islands;
                    (F) the Commonwealth of Puerto Rico; and
                    (G) the United States Virgin Islands.
            (15) Strategy.--The term ``Strategy'' means the Natural 
        Resources Climate Change Adaptation Strategy developed under 
        section 366(a).

SEC. 364. COUNCIL ON ENVIRONMENTAL QUALITY.

    The Chair of the Council on Environmental Quality shall--
            (1) advise the President on implementing and developing--
                    (A) the Strategy; and
                    (B) the Federal natural resource agency adaptation 
                plans required by section 368;
            (2) serve as the Chair of the Panel established under 
        section 365; and
            (3) coordinate Federal agency strategies, plans, programs, 
        and activities relating to protecting, restoring, and 
        maintaining natural resources so that natural resources become 
        more resilient, adapt to, and withstand the ongoing and 
        expected impacts of climate change.

SEC. 365. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION PANEL.

    (a) Establishment.--Not later than 90 days after the date of 
enactment of this Act, the President shall establish a Natural 
Resources Climate Change Adaptation Panel.
    (b) Duties.--The Panel shall serve as a forum for interagency 
consultation on, and the coordination of, the development and 
implementation of the Strategy.
    (c) Membership.--The Panel shall be composed of--
            (1) the Administrator of the National Oceanic and 
        Atmospheric Administration (or a designee);
            (2) the Chief of the Forest Service (or a designee);
            (3) the Director of the National Park Service (or a 
        designee);
            (4) the Director of the United States Fish and Wildlife 
        Service (or a designee);
            (5) the Director of the Bureau of Land Management (or a 
        designee);
            (6) the Director of the United States Geological Survey (or 
        a designee);
            (7) the Commissioner of Reclamation (or a designee); and
            (8) the Director of the Bureau of Indian Affairs (or a 
        designee);
            (9) the Administrator of the Environmental Protection 
        Agency (or a designee);
            (10) the Chief of Engineers (or a designee);
            (11) the Chair of the Council on Environmental Quality (or 
        a designee);
            (12) the Administrator of the Federal Emergency Management 
        Agency (or a designee); and
            (13) the heads of such other Federal agencies or 
        departments with jurisdiction over natural resources of the 
        United States, as determined by the President.
    (d) Chairperson.--The Chair of the Council on Environmental Quality 
shall serve as the Chairperson of the Panel.

SEC. 366. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION STRATEGY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Panel shall develop a Natural Resources Climate Change 
Adaptation Strategy--
            (1) to protect, restore, and conserve natural resources so 
        that natural resources become more resilient, adapt to, and 
        withstand the ongoing and expected impacts of climate change; 
        and
            (2) to identify opportunities to mitigate the ongoing and 
        expected impacts of climate change.
    (b) Development.--In developing and revising the Strategy, the 
Panel shall--
            (1) base the strategy on the best available science;
            (2) develop the strategy in close cooperation with States 
        and Indian tribes;
            (3) coordinate with other Federal agencies, as appropriate;
            (4) consult with local governments, conservation 
        organizations, scientists, and other interested stakeholders; 
        and
            (5) provide public notice and opportunity for comment.
    (c) Revision.--After the Panel adopts the initial Strategy, the 
Panel shall review and revise the Strategy every 5 years to 
incorporate--
            (1) new information regarding the ongoing and expected 
        impacts of climate change on natural resources; and
            (2) new advances in the development of strategies that make 
        natural resources more resilient or able to adapt to the 
        ongoing and expected impacts of climate change.
    (d) Contents.--The Strategy shall--
            (1) assess the vulnerability of natural resources to 
        climate change, including short-term, medium-term, long-term, 
        cumulative, and synergistic impacts;
            (2) describe current research, observation, and monitoring 
        activities at the Federal, State, tribal, and local level 
        related to the ongoing and expected impacts of climate change 
        on natural resources;
            (3) identify and prioritize research and data needs;
            (4) identify natural resources likely to have the greatest 
        need for protection, restoration, and conservation due to the 
        ongoing and expanding impacts of climate change;
            (5) include specific protocols for integrating natural 
        resources adaptation strategies and activities into the 
        conservation and management of natural resources by Federal 
        departments and agencies to ensure consistency across agency 
        jurisdictions;
            (6) include specific actions that Federal departments and 
        agencies shall take to protect, conserve, and restore natural 
        resources to become more resilient, adapt to, and withstand the 
        ongoing and expected impacts of climate change, including a 
        timeline to implement those actions;
            (7) include specific mechanisms for ensuring communication 
        and coordination--
                    (A) among Federal departments and agencies; and
                    (B) between Federal departments and agencies and 
                State natural resource agencies, United States 
                territories, Indian tribes, private landowners, 
                conservation organizations, and other countries that 
                share jurisdiction over natural resources with the 
                United States;
            (8) include specific actions to develop and implement 
        consistent natural resources inventory and monitoring protocols 
        through interagency coordination and collaboration; and
            (9) include procedures for guiding the development of 
        detailed agency- and department-specific adaptation plans 
        required under section 368.
    (e) Implementation.--Consistent with other laws and Federal trust 
responsibilities concerning land of Indian tribes, each Federal 
department or agency represented on the Panel shall integrate the 
elements of the Strategy that relate to conservation, restoration, and 
management of natural resources into agency plans, environmental 
reviews, programs, and activities.

SEC. 367. NATURAL RESOURCES ADAPTATION SCIENCE AND INFORMATION.

    (a) Coordination.--Not later than 90 days after the date of 
enactment of this Act, the Administrators shall establish coordinated 
procedures for developing and providing science and information 
necessary to address the ongoing and expected impacts of climate change 
on natural resources.
    (b) Oversight.--The National Climate Change and Wildlife Science 
Center established under subsection (e) and the National Climate 
Service of the National Oceanic and Atmospheric Administration shall 
oversee development of the procedures.
    (c) Functions.--The Administrators shall--
            (1) ensure that the procedures required under subsection 
        (a) avoid duplication; and
            (2) ensure that the National Oceanic and Atmospheric 
        Administration and the United States Geological Survey--
                    (A) provide technical assistance to Federal 
                departments and agencies, State and local governments, 
                Indian tribes, and interested private landowners that 
                are pursuing the goals of addressing the ongoing and 
                expected impacts of climate change on natural 
                resources;
                    (B) conduct and sponsor research to develop 
                strategies that increase the ability of natural 
                resources to become more resilient, adapt to, and 
                withstand the ongoing and expected impacts of climate 
                change;
                    (C) provide Federal departments and agencies, State 
                and local governments, Indian tribes, and interested 
                private landowners with research products, decision and 
                monitoring tools, and information to develop strategies 
                that increase the ability of natural resources to 
                become more resilient, adapt to, and withstand the 
                ongoing and expected impacts of climate change; and
                    (D) assist Federal departments and agencies in the 
                development of adaptation plans required by section 
                368.
    (d) Survey.--Not later than 1 year after the date of enactment of 
this Act, and every 5 years thereafter, the Secretary of Commerce and 
the Secretary of the Interior shall conduct a climate change impact 
survey that--
            (1) identifies natural resources considered likely to be 
        adversely affected by climate change;
            (2) includes baseline monitoring and ongoing trend 
        analysis;
            (3) with input from stakeholders, identifies and 
        prioritizes necessary monitoring and research that is most 
        relevant to the needs of natural resource managers to address 
        the ongoing and expected impacts of climate change and to 
        promote resilience; and
            (4) identifies the decision tools necessary to develop 
        strategies that increase the ability of natural resources to 
        become more resilient, adapt to, and withstand the ongoing and 
        expected impacts of climate change.
    (e) National Climate Change and Wildlife Science Center.--
            (1) Establishment.--The Secretary of the Interior shall 
        establish the National Climate Change and Wildlife Science 
        Center within the United States Geological Survey.
            (2) Functions.--In collaboration with Federal and State 
        natural resources agencies and departments, Indian tribes, 
        universities, and other partner organizations, the Center 
        shall--
                    (A) assess and synthesize current physical and 
                biological knowledge;
                    (B) prioritize scientific gaps in such knowledge in 
                order to forecast the ecological impacts of climate 
                change, including, where applicable, ocean 
                acidification, drought, flooding, and wildfire on fish 
                and wildlife at the ecosystem, habitat, community, 
                population, and species levels;
                    (C) develop and improve tools to identify, 
                evaluate, and link scientific approaches and models 
                that forecast the impacts of climate change, including, 
                where applicable, ocean acidification, drought, 
                flooding, and wildfire on fish, wildlife, plants, and 
                associated habitats, including--
                            (i) monitoring;
                            (ii) predictive models;
                            (iii) vulnerability analyses;
                            (iv) risk assessments; and
                            (v) decision support systems that help 
                        managers make informed decisions;
                    (D) develop and evaluate tools to adaptively manage 
                and monitor the effects of climate change (including 
                tools for the collection of data) on fish and wildlife 
                on the national, regional, and local level; and
                    (E) develop capacities for sharing standardized 
                data and the synthesis of the data described in 
                subparagraph (D).
    (f) Science Advisory Board.--
            (1) Establishment.--Not later than 180 days after the date 
        of enactment of this Act, the Secretary of Commerce and the 
        Secretary of the Interior shall establish and appoint the 
        members of the Science Advisory Board.
            (2) Membership.--The Board shall be comprised of not fewer 
        than 10 and not more than 20 members--
                    (A) who have expertise in fish, wildlife, plant, 
                aquatic, and coastal and marine biology, ecology, 
                climate change, including, where applicable, ocean 
                acidification, drought, flooding, and wildfire, and 
                other relevant scientific disciplines;
                    (B) who represent a balanced membership among 
                Federal, State, tribal, and local representatives, 
                universities, and conservation organizations; and
                    (C) at least \1/2\ of whom are recommended by the 
                President of the National Academy of Sciences.
            (3) Duties.--The Board shall--
                    (A) advise the Secretary of Commerce and the 
                Secretary of the Interior on the state of the science 
                regarding--
                            (i) the ongoing and expected impacts of 
                        climate change, including, where applicable, 
                        ocean acidification, drought, flooding, and 
                        wildfire on natural resources; and
                            (ii) scientific strategies and mechanisms 
                        for protecting, restoring, and conserving 
                        natural resources so natural resources become 
                        more resilient, adapt to, and withstand the 
                        ongoing and expected impacts of climate change, 
                        including, where applicable, ocean 
                        acidification, drought, flooding, and wildfire; 
                        and
                    (B) identify and recommend priorities for ongoing 
                research needs on the issues described in subparagraph 
                (A).
            (4) Collaboration.--The Board shall collaborate with 
        climate change and ecosystem research entities in other Federal 
        agencies and departments.
            (5) Availability to public.--The advice and recommendations 
        of the Board shall be made available to the public.

SEC. 368. FEDERAL NATURAL RESOURCE AGENCY ADAPTATION PLANS.

    (a) Development.--Not later than 1 year after the date of 
development of the Strategy, each department or agency with 
representation on the Panel shall--
            (1) complete an adaptation plan for that department or 
        agency that--
                    (A) implements the Strategy and is consistent with 
                the natural resources climate change adaptation policy 
                required by section 362;
                    (B) details the ongoing and expanding actions of 
                the department or agency, and any changes in 
                decisionmaking processes necessary to increase the 
                ability of resources under the jurisdiction of the 
                department or agency and, to the maximum extent 
                practicable, resources under the jurisdiction of other 
                departments and agencies that may be significantly 
                affected by decisions of the department or agency, to 
                become more resilient, adapt to, and withstand the 
                ongoing and expected impacts of climate change, 
                including, where applicable, ocean acidification, 
                drought, flooding, and wildfire; and
                    (C) includes a timeline for implementation;
            (2) provide opportunities for public review and comment on 
        the adaptation plan, and in the case of a plan by the Bureau of 
        Indian Affairs, review by Indian tribes; and
            (3) submit the plan to the President for approval.
    (b) Review by President and Submission to Congress.--
            (1) Review by president.--The President shall--
                    (A) approve an adaptation plan submitted under 
                subsection (a)(3) if the plan meets the requirements of 
                subsection (c) and is consistent with the Strategy; and
                    (B) decide whether to approve the plan within 60 
                days of submission.
            (2) Disapproval.--If the President disapproves an 
        adaptation plan, the President shall direct the department or 
        agency to submit a revised plan within 60 days of that 
        disapproval.
            (3) Submission to congress.--Not later than 30 days after 
        the date of approval of an adaptation plan by the President, 
        the department or agency shall submit the plan to--
                    (A) the Committee on Natural Resources of the House 
                of Representatives;
                    (B) the Committee on Energy and Natural Resources 
                of the Senate;
                    (C) the Committee on Environment and Public Works 
                of the Senate; and
                    (D) any other committees of the House of 
                Representatives or the Senate with principal 
                jurisdiction over the department or agency.
    (c) Requirements.--Each adaptation plan shall--
            (1) establish programs for assessing the ongoing and 
        expected impacts of climate change, including, where 
        applicable, ocean acidification, drought, flooding, and 
        wildfire on natural resources under the jurisdiction of the 
        department or agency preparing the plan, including--
                    (A) assessment of cumulative and synergistic 
                effects; and
                    (B) programs that identify and monitor natural 
                resources likely to be adversely affected and that have 
                need for conservation;
            (2) identify and prioritize--
                    (A) the strategies of the department or agency 
                preparing the plan;
                    (B) the specific conservation actions that address 
                the ongoing and expected impacts of climate change, 
                including, where applicable, ocean acidification, 
                drought, flooding, and wildfire on natural resources 
                under jurisdiction of the department or agency 
                preparing the plan;
                    (C) strategies to protect, restore, and conserve 
                such resources to become more resilient, adapt to, and 
                better withstand those impacts, including--
                            (i) protection, restoration, and 
                        conservation of terrestrial, marine, estuarine, 
                        and freshwater habitats and ecosystems;
                            (ii) establishment of terrestrial, marine, 
                        estuarine, and freshwater habitat linkages and 
                        corridors;
                            (iii) restoration and conservation of 
                        ecological processes;
                            (iv) protection of a broad diversity of 
                        native species of fish, wildlife, and plant 
                        populations across the ranges of those species; 
                        and
                            (v) protection of fish, wildlife, and plant 
                        health, recognizing that climate can alter the 
                        distribution and ecology of parasites, 
                        pathogens, and vectors;
            (3) describe how the department or agency will--
                    (A) integrate the strategies and conservation 
                activities into plans, programs, activities, and 
                actions of the department or agency relating to the 
                conservation and management of natural resources; and
                    (B) establish new plans, programs, activities, and 
                actions, if necessary;
            (4) establish methods--
                    (A) to assess the effectiveness of strategies and 
                conservation actions the department or agency takes to 
                protect, restore, and conserve natural resources so 
                natural resources become more resilient, adapt to, and 
                withstand the ongoing and expected impacts of climate 
                change; and
                    (B) to update those strategies and actions to 
                respond to new information and changing conditions;
            (5) describe current and proposed mechanisms to enhance 
        cooperation and coordination of natural resources adaptation 
        efforts with other Federal agencies, State and local 
        governments, Indian tribes, and nongovernmental stakeholders;
            (6) include written guidance to resource managers that--
                    (A) explains how managers are expected to address 
                the ongoing and expected effects of climate change, 
                including, where applicable, ocean acidification, 
                drought, flooding, and wildfire;
                    (B) identifies how managers shall obtain any 
                necessary site-specific information; and
                    (C) reflects best practices shared among relevant 
                agencies, but recognizes the unique missions, 
                objectives, and responsibilities of each agency;
            (7) identify and assess data and information gaps necessary 
        to develop natural resources adaptation plans and strategies; 
        and
            (8) consider strategies that engage youth and young adults 
        (including youth and young adults working in full-time or part-
        time youth service or conservation corps programs) to provide 
        the youth and young adults with opportunities for meaningful 
        conservation and community service and to encourage 
        opportunities for employment in the private sector through 
        partnerships with employers.
    (d) Implementation.--
            (1) In general.--Upon approval by the President, each 
        department or agency with representation on the Panel shall, 
        consistent with existing authority, implement the adaptation 
        plan of the department or agency through existing and new 
        plans, policies, programs, activities, and actions.
            (2) Consideration of impacts.--To the maximum extent 
        practicable and consistent with existing authority, natural 
        resource management decisions made by the department or agency 
        shall consider the ongoing and expected impacts of climate 
        change, including, where applicable, ocean acidification, 
        drought, flooding, and wildfire on natural resources.
    (e) Revision and Review.--Not less than every 5 years, each 
department or agency shall review and revise the adaptation plan of the 
department or agency to incorporate the best available science, and 
other information, regarding the ongoing and expected impacts of 
climate change on natural resources.

SEC. 369. STATE NATURAL RESOURCES ADAPTATION PLANS.

    (a) Requirement.--In order to be eligible for funds under section 
370, not later than 1 year after the development of the Strategy, each 
State shall prepare a State natural resources adaptation plan detailing 
current and future efforts of the State to address the ongoing and 
expected impacts of climate change on natural resources and coastal 
areas within the jurisdiction of the State.
    (b) Review or Approval.--
            (1) In general.--The Secretary of the Interior and, as 
        applicable, the Secretary of Commerce shall review each State 
        adaptation plan, and approve the plan if the plan--
                    (A) meets the requirements of subsection (c); and
                    (B) is consistent with the Strategy.
            (2) Approval or disapproval.--The Secretary of the Interior 
        and, as applicable, the Secretary of Commerce shall approve or 
        disapprove the plan by written notice not later than 180 days 
        after the date of submission of the plan (or a revised plan).
            (3) Resubmission.--Not later than 90 days after the date of 
        resubmission of an adaptation plan that has been disapproved 
        under paragraph (2), the Secretary of the Interior and, as 
        applicable, the Secretary of Commerce, shall approve or 
        disapprove the plan by written notice.
    (c) Contents.--A State natural resources adaptation plan shall--
            (1) include strategies for addressing the ongoing and 
        expected impacts of climate change, including, where 
        applicable, ocean acidification, drought, flooding, and 
        wildfire on terrestrial, marine, estuarine, and freshwater 
        fish, wildlife, plants, habitats, ecosystems, wildlife health, 
        and ecological processes that--
                    (A) describe the ongoing and expected impacts of 
                climate change, including, where applicable, ocean 
                acidification, drought, flooding, and wildfire on the 
                diversity and health of fish, wildlife and plant 
                populations, habitats, ecosystems, and associated 
                ecological processes;
                    (B) establish programs for monitoring the ongoing 
                and expected impacts of climate change, including, 
                where applicable, ocean acidification, drought, 
                flooding, and wildfire on fish, wildlife, and plant 
                populations, habitats, ecosystems, and associated 
                ecological processes;
                    (C) describe and prioritize proposed conservation 
                actions that increase the ability of fish, wildlife, 
                plant populations, habitats, ecosystems, and associated 
                ecological processes to become more resilient, adapt 
                to, and better withstand those impacts;
                    (D) consider strategies that engage youth and young 
                adults (including youth and young adults working in 
                full-time or part-time youth service or conservation 
                corps programs) to provide the youth and young adults 
                with opportunities for meaningful conservation and 
                community service and to encourage opportunities for 
                employment in the private sector through partnerships 
                with employers;
                    (E) integrate protection and restoration of 
                resource resilience into agency decision making and 
                specific conservation actions;
                    (F) include a time frame for implementing 
                conservation actions for fish, wildlife, and plant 
                populations, habitats, ecosystems, and associated 
                ecological processes;
                    (G) establish methods--
                            (i) for assessing the effectiveness of 
                        strategies and conservation actions taken to 
                        increase the ability of fish, wildlife, and 
                        plant populations, habitats, ecosystems, and 
                        associated ecological processes to become more 
                        resilient, adapt to, and better withstand the 
                        ongoing and expected impacts of climate 
                        changes, including, where applicable, ocean 
                        acidification, drought, flooding, and wildfire; 
                        and
                            (ii) for updating strategies and actions to 
                        respond appropriately to new information or 
                        changing conditions;
                    (H) are incorporated into a revision of the State 
                wildlife action plan (also known as the State 
                comprehensive wildlife strategy) that has been--
                            (i) submitted to the United States Fish and 
                        Wildlife Service; and
                            (ii) approved, or is pending approval, by 
                        the United States Fish and Wildlife Service; 
                        and
                    (I) are developed--
                            (i) with the participation of the State 
                        fish and wildlife agency, the State coastal 
                        agency, the State agency responsible for 
                        administration of Land and Water Conservation 
                        Fund grants, the State Forest Legacy program 
                        coordinator, and other State agencies 
                        considered appropriate by the Governor of the 
                        State;
                            (ii) in coordination with the Secretary of 
                        the Interior, and where applicable, the 
                        Secretary of Commerce;
                            (iii) in coordination with other States 
                        that share jurisdiction over natural resources 
                        with the State; and
                            (iv) in coordination with--
                                    (I) Indian tribes that located 
                                within the State; and
                                    (II) Indian tribes having treaty 
                                rights to natural resources within the 
                                State; and
            (2) in the case of a coastal State, include strategies for 
        addressing the ongoing and expected impacts of climate change, 
        including, where applicable, ocean acidification, drought, 
        flooding, and wildfire on a coastal zone that--
                    (A) identify natural resources likely to be 
                impacted by climate change, and describe the impacts;
                    (B) identify and prioritize continuing research and 
                data collection needed to address the impacts, 
                including--
                            (i) acquisition of high-resolution coastal 
                        elevation and nearshore bathymetry data;
                            (ii) historic shoreline position maps, 
                        erosion rates, and inventories of shoreline 
                        features and structures;
                            (iii) measures and models of relative rates 
                        of sea level rise or lake level changes, 
                        including effects on flooding, storm surge, 
                        inundation, and coastal geological processes;
                            (iv) measures and models of habitat loss, 
                        including projected losses of coastal wetlands 
                        and potentials for inland migration of natural 
                        shoreline habitats;
                            (v) measures and models of ocean and 
                        coastal species and ecosystem migrations, and 
                        changes in species population dynamics;
                            (vi) changes in storm frequency, intensity, 
                        or rainfall patterns;
                            (vii) measures and models of saltwater 
                        intrusion into coastal rivers and aquifers;
                            (viii) changes in chemical or physical 
                        characteristics of marine and estuarine 
                        systems, including the presence, extent, and 
                        timing of hypoxic and anoxic conditions;
                            (ix) measures and models of increased 
                        harmful algal blooms; and
                            (x) measures and models of the spread of 
                        invasive species;
                    (C) identify and prioritize adaptation strategies 
                to protect, restore, and conserve natural resources to 
                enable natural resources to become more resilient, 
                adapt to, and withstand the ongoing and expected 
                impacts of climate change, including, where applicable, 
                ocean acidification, drought, flooding, and wildfire, 
                including--
                            (i) protection, maintenance, and 
                        restoration of ecologically important coastal 
                        lands, coastal and ocean ecosystems, and 
                        species biodiversity and the establishment of 
                        habitat buffer zones, migration corridors, and 
                        climate refugia; and
                            (ii) improved planning, siting policies, 
                        hazard mitigation strategies, and State 
                        property insurance programs;
                    (D) establish programs--
                            (i) for the long-term monitoring of the 
                        ongoing and expected impacts of climate change, 
                        including, where applicable, ocean 
                        acidification, drought, flooding, and wildfire 
                        on the ocean and coastal zone; and
                            (ii) assess and adjust, when necessary, the 
                        adaptive management strategies;
                    (E) establish performance measures that--
                            (i) assess the effectiveness of adaptation 
                        strategies intended to improve resilience and 
                        the ability of natural resources to adapt to 
                        and withstand the ongoing and expected impacts 
                        of climate change, including, where applicable, 
                        ocean acidification, drought, flooding, and 
                        wildfire;
                            (ii) assess the effectiveness of adaptation 
                        strategies intended to minimize those impacts 
                        on the coastal zone; and
                            (iii) update the strategies to respond to 
                        new information or changing conditions; and
                    (F) are developed--
                            (i) with the participation of the State 
                        coastal agency and other appropriate State 
                        agencies; and
                            (ii) in coordination with the Secretary of 
                        Commerce and other appropriate Federal 
                        agencies.
    (d) Public Input.--In developing the adaptation plan, a State shall 
provide for solicitation and consideration of public input and 
independent scientific input.
    (e) Coordination With Other Plans.--The State adaptation plan shall 
review research and information and, where appropriate, integrate the 
goals and measures set forth in other natural resources conservation 
strategies, including--
            (1) the National Fish Habitat Action Plan;
            (2) plans under the North American Wetlands Conservation 
        Act (16 U.S.C. 4401 et seq.);
            (3) the Federal, State, and local partnership known as 
        ``Partners in Flight'';
            (4) federally approved coastal zone management plans under 
        the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
        seq.);
            (5) federally approved regional fishery management plants 
        and habitat conservation activities under the Magnuson-Stevens 
        Fishery Conservation and Management Act (16 U.S.C. 1801 et 
        seq.);
            (6) the National Coral Reef Action Plan;
            (7) recovery plans for threatened species and endangered 
        species under section 4(f) of the Endangered Species Act of 
        1973 (16 U.S.C. 1533(f));
            (8) habitat conservation plans under section 10 of that Act 
        (16 U.S.C. 1539);
            (9) other Federal, State, and tribal plans for imperiled 
        species;
            (10) State or tribal hazard mitigation plans;
            (11) State or tribal water management plans;
            (12) State property insurance programs; and
            (13) other State-based strategies that comprehensively 
        implement adaptation activities to remediate the ongoing and 
        expected effects of climate change, including, where 
        applicable, ocean acidification, drought, flooding, and 
        wildfire, on terrestrial, marine, and freshwater fish, 
        wildlife, plants, and other natural resources.
    (f) Updating.--Each State plan shall be updated at least every 5 
years.
    (g) Funding.--
            (1) In general.--Funds allocated to States under section 
        370 shall be used only for activities consistent with a State 
        natural resources adaptation plan approved by the Secretary of 
        the Interior and, as appropriate, the Secretary of Commerce.
            (2) Funding prior to the approval of a state plan.--Until 
        the earlier of the date that is 3 years after the date of 
        enactment of this Act or the date on which a State adaptation 
        plan is approved, a State shall be eligible to receive funding 
        under section 370 for adaptation activities that are--
                    (A) consistent with the comprehensive wildlife 
                strategy of the State and, where appropriate, other 
                natural resources conservation strategies; and
                    (B) in accordance with a work plan developed in 
                coordination with--
                            (i) the Secretary of the Interior; and
                            (ii) the Secretary of Commerce.
            (3) Coastal state.--In developing a work plan under 
        paragraph (2)(B), a coastal State shall coordinate with the 
        Secretary of Commerce only for those portions of the strategy 
        relating to activities affecting the coastal zone.
            (4) Pending approval.--During the period for which approval 
        by the applicable Secretary is pending, the State may continue 
        to receive funds under section 370 pursuant to the work plan 
        described in paragraph (2)(B).

SEC. 370. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION ACCOUNT.

    (a) Distribution.--
            (1) States.--The assistance made available pursuant to 
        section 771(a)(16) of the Clean Air Act and section 216 of 
        division B for each fiscal year shall be provided to States to 
        carry out natural resources adaptation activities in accordance 
        with adaptation plans approved under section 369, and shall be 
        distributed as follows:
                    (A) 84 percent shall be available to State wildlife 
                agencies in accordance with the apportionment formula 
                established under the second subsection (c) (relating 
                to the apportionment of the Wildlife Conservation and 
                Restoration Account) of section 4 of the Pittman-
                Robertson Wildlife Restoration Act (16 U.S.C. 669c).
                    (B) 16 percent shall be available to State coastal 
                agencies pursuant to the formula established by the 
                Secretary of Commerce under section 306(c) of the 
                Coastal Management Act of 1972 (16 U.S.C. 1455(c)).
            (2) Natural resource adaptation.--Of the amounts made 
        available pursuant to section 771(b)(7) of the Clean Air Act 
        and section 212 of division B for each fiscal year to carry out 
        this subpart--
                    (A) 28 percent shall be allocated to the Secretary 
                of the Interior for use in funding--
                            (i) natural resources adaptation activities 
                        carried out--
                                    (I) under endangered species, 
                                migratory species, and other fish and 
                                wildlife programs administered by the 
                                National Park Service, the United 
                                States Fish and Wildlife Service, the 
                                Bureau of Indian Affairs, and the 
                                Bureau of Land Management;
                                    (II) on wildlife refuges, National 
                                Park Service land, and other public 
                                land under the jurisdiction of the 
                                United States Fish and Wildlife 
                                Service, the Bureau of Land Management, 
                                the Bureau of Indian Affairs, or the 
                                National Park Service; and
                                    (III) within Federal water managed 
                                by the Bureau of Reclamation and the 
                                National Park Service; and
                            (ii) the implementation of the National 
                        Fish and Wildlife Habitat and Corridors 
                        Information Program required by section 371;
                    (B) 8 percent shall be allocated to the Secretary 
                of the Interior for natural resources adaptation 
                activities carried out under cooperative grant 
                programs, including--
                            (i) the cooperative endangered species 
                        conservation fund authorized under section 6 of 
                        the Endangered Species Act of 1973 (16 U.S.C. 
                        1535);
                            (ii) programs under the North American 
                        Wetlands Conservation Act (16 U.S.C. 4401 et 
                        seq.);
                            (iii) the Neotropical Migratory Bird 
                        Conservation Fund established by section 9(a) 
                        of the Neotropical Migratory Bird Conservation 
                        Act (16 U.S.C. 6108(a));
                            (iv) the Coastal Program of the United 
                        States Fish and Wildlife Service;
                            (v) the National Fish Habitat Action Plan;
                            (vi) the Partners for Fish and Wildlife 
                        Program;
                            (vii) the Landowner Incentive Program;
                            (viii) the Wildlife Without Borders Program 
                        of the United States Fish and Wildlife Service; 
                        and
                            (ix) the Migratory Species Program and Park 
                        Flight Migratory Bird Program of the National 
                        Park Service; and
                    (C) 5 percent shall be allocated to the Secretary 
                of the Interior to provide financial assistance to 
                Indian tribes to carry out natural resources adaptation 
                activities through--
                            (i) the Trust Natural Resources Program of 
                        the Bureau of Indian Affairs; and
                            (ii) the Tribal Wildlife Grants Program of 
                        the United States Fish and Wildlife Service.
            (3) Land and water conservation.--
                    (A) Deposits.--
                            (i) In general.--Of the amounts made 
                        available pursuant to section 771(b)(7) of the 
                        Clean Air Act and section 212 of division B for 
                        each fiscal year to carry out this subpart, 20 
                        percent shall be deposited in the Land and 
                        Water Conservation Fund established under 
                        section 2 of the Land and Water Conservation 
                        Fund Act of 1965 (16 U.S.C. 460l-5).
                            (ii) Use of deposits.--Deposits in the Land 
                        and Water Conservation Fund under this 
                        paragraph shall--
                                    (I) be supplemental to 
                                authorizations provided under section 3 
                                of the Land and Water Conservation Fund 
                                Act of 1965 (16 U.S.C. 460l-6), which 
                                shall remain available for 
                                nonadaptation needs; and
                                    (II) be available to carry out this 
                                subpart without further appropriation 
                                or fiscal year limitation.
                    (B) Distribution of amounts.--Of the amounts 
                deposited under this paragraph in the Land and Water 
                Conservation Fund--
                            (i) for the purposes of carrying out the 
                        natural resources adaptation activities through 
                        the acquisition of land and interests in land 
                        under section 6 of the Land and Water 
                        Conservation Fund Act of 1965 (16 U.S.C. 460l-
                        8), \1/6\ shall be allocated to the Secretary 
                        of the Interior and made available on a 
                        competitive basis--
                                    (I) to States, in accordance with 
                                the natural resources adaptation plans 
                                of States, and to Indian tribes;
                                    (II) notwithstanding section 5 of 
                                that Act (16 U.S.C. 460l-7); and
                                    (III) in addition to any funds 
                                provided pursuant to annual 
                                appropriations Acts, the Energy Policy 
                                Act of 2005 (42 U.S.C. 15801 et seq.), 
                                or any other authorization for 
                                nonadaptation needs;
                            (ii) \1/3\ shall be allocated to the 
                        Secretary of the Interior to carry out natural 
                        resources adaptation activities through the 
                        acquisition of lands and interests in land 
                        under section 7 of the Land and Water 
                        Conservation Fund Act of 1965 (16 U.S.C. 460l-
                        9);
                            (iii) \1/6\ shall be allocated to the 
                        Secretary of Agriculture and made available to 
                        the States and Indian tribes to carry out 
                        natural resources adaptation activities through 
                        the acquisition of land and interests in land 
                        under section 7 of the Cooperative Forestry 
                        Assistance Act of 1978 (16 U.S.C. 2103c); and
                            (iv) \1/3\ shall be allocated to the 
                        Secretary of Agriculture to carry out natural 
                        resources adaptation activities through the 
                        acquisition of land and interests in land under 
                        section 7 of the Land and Water Conservation 
                        Fund Act of 1965 (16 U.S.C. 460l-9).
                    (C) Expenditure of funds.--In allocating funds 
                under subparagraph (B), the Secretary of the Interior 
                and the Secretary of Agriculture shall take into 
                consideration factors including--
                            (i) the availability of non-Federal 
                        contributions from State, local, or private 
                        sources;
                            (ii) opportunities to protect fish and 
                        wildlife corridors or otherwise to link or 
                        consolidate fragmented habitats;
                            (iii) opportunities to reduce the risk of 
                        catastrophic wildfires, drought, extreme 
                        flooding, or other climate-related events that 
                        are harmful to fish and wildlife and people; 
                        and
                            (iv) the potential for conservation of 
                        species or habitat types at serious risk due to 
                        climate change, including, where applicable, 
                        ocean acidification, drought, flooding, and 
                        wildfire, or other stressors.
            (4) National forest and grassland adaptation.--Of the 
        amounts made available pursuant to section 771(b)(7) of the 
        Clean Air Act and section 212 of division B for each fiscal 
        year to carry out this subpart, 8 percent shall be allocated to 
        the Forest Service, through the Secretary of Agriculture--
                    (A) to fund natural resources adaptation activities 
                carried out in national forests and national grasslands 
                under the jurisdiction of the Forest Service; and
                    (B) to carry out natural resource adaptation 
                activities on State and private forest land carried out 
                under the Cooperative Forestry Assistance Act of 1978 
                (16 U.S.C. 2101 et seq.).
            (5) Coastal and marine system adaptation.--Of the amounts 
        made available pursuant to section 771(b)(7) of the Clean Air 
        Act and section 212 of division B for each fiscal year to carry 
        out this subpart, 11 percent shall be allocated to the 
        Secretary of Commerce to fund natural resources adaptation 
        activities that protect, maintain, and restore coastal, 
        estuarine, and marine resources, habitats, and ecosystems, 
        including such activities carried out under--
                    (A) the coastal and estuarine land conservation 
                program administered by the National Oceanic and 
                Atmospheric Administration;
                    (B) the community-based restoration program for 
                fishery and coastal habitats established under section 
                117 of the Magnuson-Stevens Fishery Conservation and 
                Management Reauthorization Act of 2006 (16 U.S.C. 
                1891a);
                    (C) the Coastal Zone Management Act of 1972 (16 
                U.S.C. 1451 et seq.) that are specifically designed to 
                strengthen the ability of coastal, estuarine, and 
                marine resources, habitats, and ecosystems to adapt to 
                and withstand the ongoing and expected impacts of 
                climate change, including, where applicable, ocean 
                acidification, drought, flooding, and wildfire;
                    (D) the Open Rivers Initiative;
                    (E) the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1801 et seq.);
                    (F) the Marine Mammal Protection Act of 1972 (16 
                U.S.C. 1361 et seq.);
                    (G) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.);
                    (H) the Marine Protection, Research, and 
                Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.);
                    (I) the Coral Reef Conservation Act of 2000 (16 
                U.S.C. 6401 et seq.); and
                    (J) the Estuary Restoration Act of 2000 (33 U.S.C. 
                2901 et seq.).
            (6) Estuarine and freshwater ecosystem adaptation.--Of the 
        amounts made available pursuant to section 771(b)(7) of the 
        Clean Air Act and section 212 of division B for each fiscal 
        year to carry out this subpart, 12 percent shall be allocated 
        to the Administrator of the Environmental Protection Agency and 
        8 percent shall be available to the Secretary of the Army for 
        use by the Corps of Engineers for use in natural resources 
        adaptation activities restoring and protecting--
                    (A) large-scale freshwater aquatic ecosystems, such 
                as the Everglades, the Great Lakes, Flathead Lake, the 
                Missouri River, the Mississippi River, the Colorado 
                River, the Sacramento-San Joaquin Rivers, the Ohio 
                River, the Columbia-Snake River System, the 
                Apalachicola, Chattahoochee, and Flint River System, 
                the Connecticut River, the Rio Grande River, and the 
                Yellowstone River;
                    (B) large-scale estuarine ecosystems, such as 
                Chesapeake Bay, Long Island Sound, Puget Sound, the 
                Mississippi River Delta, the San Francisco Bay Delta, 
                Narragansett Bay, and Albemarle-Pamlico Sound;
                    (C) freshwater and estuarine ecosystems, 
                watersheds, and basins identified and prioritized by 
                the Administrator of the Environmental Protection 
                Agency or the Corps of Engineers, working in 
                cooperation with other Federal agencies, States, Indian 
                tribes, local governments, scientists, and other 
                conservation partners; and
                    (D)(i) habitats and ecosystems through estuary 
                habitat restoration projects authorized by the Estuary 
                Restoration Act of 2000 (33 U.S.C. 2901 et seq.);
                    (ii) project modifications for improvement of the 
                environment;
                    (iii) aquatic restoration and protection projects 
                authorized by section 206 of the Water Resources 
                Development Act of 1996 (33 U.S.C. 2330); and
                    (iv) other appropriate programs and activities.
    (b) Use of Funds by Federal Departments and Agencies.--Funds 
allocated to Federal departments and agencies under this section shall 
only be used for natural resources adaptation activities consistent 
with an adaptation plan approved under section 368.
    (c) State Cost-sharing.--Notwithstanding any other provision of 
law, a State that receives a grant under this section shall use funds 
from non-Federal sources to pay 10 percent of the costs of each 
activity carried out under the grant.

SEC. 371. NATIONAL FISH AND WILDLIFE HABITAT AND CORRIDORS INFORMATION 
              PROGRAM.

    (a) Definitions.--In this section:
            (1) Geospatial interoperability framework.--The term 
        ``Geospatial Interoperability Framework'' means the strategy 
        used by the National Biological Information Infrastructure 
        (based on accepted standards, specifications, and protocols 
        adopted through the International Standards Organization, the 
        Open Geospatial Consortium, and the Federal Geographic Data 
        Committee) to manage, archive, integrate, analyze, and make 
        geospatial and biological data and metadata accessible.
            (2) Program.--The term ``Program'' means the National Fish 
        and Wildlife Habitat and Corridors Information Program 
        established under subsection (b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (4) System.--The term ``System'' means the Habitat and 
        Corridors Information System established under subsection 
        (d)(1).
    (b) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary, in cooperation with the States 
and Indian tribes, shall establish a National Fish and Wildlife Habitat 
and Corridors Information Program.
    (c) Purpose.--The purposes of the Program are--
            (1) to support States and Indian tribes in developing 
        geographical information system databases of fish and wildlife 
        habitats and corridors that--
                    (A) inform planning and development decisions 
                within each State and Indian tribe;
                    (B) enable each State and Indian tribe to model 
                climate impacts and adaptation; and
                    (C) provide geographically specific enhancements of 
                State wildlife action plans and conservation or natural 
                resource management plans of Indian tribes;
            (2) to ensure the collaborative development of a 
        comprehensive national geographic information system database 
        of maps, models, data, surveys, informational products, and 
        other geospatial information regarding fish and wildlife 
        habitat and corridors that--
                    (A) is based on consistent protocols for sampling 
                and mapping across landscapes;
                    (B) takes into account regional differences; and
                    (C) uses--
                            (i) existing and planned State- and tribal-
                        based geographical information system 
                        databases; and
                            (ii) existing databases, analytical tools, 
                        metadata activities, and other information 
                        products available through the National 
                        Biological Information Infrastructure 
                        maintained by the Secretary and nongovernmental 
                        organizations; and
            (3) to facilitate the use of those databases by Federal, 
        State, local, and tribal decisionmakers to incorporate 
        qualitative information on fish and wildlife habitats and 
        corridors at the earliest practicable stage for use in--
                    (A) prioritizing and targeting natural resources 
                adaptation strategies and activities;
                    (B) avoiding, minimizing, and mitigating the 
                impacts on fish and wildlife habitat and corridors when 
                locating energy development, water, transmission, 
                transportation, and other land use projects;
                    (C) assessing the impacts of existing development 
                on habitats and corridors; and
                    (D) developing management strategies that enhance 
                the ability of fish, wildlife, and plant species to 
                migrate or respond to shifting habitats within existing 
                habitats and corridors.
    (d) Habitat and Corridors Information System.--
            (1) In general.--The Secretary, in cooperation with States 
        and Indian tribes, shall establish a Habitat and Corridors 
        Information System.
            (2) Contents.--The System shall--
                    (A) include maps, data, and descriptions of fish 
                and wildlife habitat and corridors that--
                            (i) have been developed by Federal 
                        agencies, State wildlife agencies, and natural 
                        heritage programs, Indian tribes, local 
                        governments, nongovernmental organizations, and 
                        industry; and
                            (ii) meet accepted geospatial 
                        interoperability framework data and metadata 
                        protocols and standards;
                    (B) include maps and descriptions of projected 
                shifts in habitats and corridors of fish and wildlife 
                species in response to climate change;
                    (C) ensure data quality;
                    (D) at scales useful to decisionmakers, make data, 
                models, and analyses included in the System available--
                            (i) to prioritize and target natural 
                        resources adaptation strategies and activities;
                            (ii) to assess the impacts of existing 
                        development on habitats and corridors;
                            (iii) to assess the impacts of proposed 
                        energy development, water, transmission, 
                        transportation, and other land use projects and 
                        to avoid, minimize, or mitigate those impacts 
                        on habitats and corridors; and
                            (iv) to develop management strategies that 
                        enhance the ability of fish, wildlife, and 
                        plant species to migrate or respond to shifting 
                        habitats within existing habitats and 
                        corridors;
                    (E) update maps and other information as 
                landscapes, habitats, corridors, and wildlife 
                populations change, or as new information becomes 
                available;
                    (F) encourage development of collaborative plans by 
                Federal and State agencies and Indian tribes that 
                monitor and evaluate the ability of the System to meet 
                the needs of decisionmakers;
                    (G) identify gaps in habitat and corridor 
                information, mapping, and research needed to fully 
                assess current data and metadata;
                    (H) prioritize research and future data collection 
                activities for use in updating the System and provide 
                support for those activities;
                    (I) include mechanisms to support collaborative 
                research, mapping, and planning of habitats and 
                corridors by Federal and State agencies, Indian tribes, 
                and other interested stakeholders;
                    (J) incorporate biological and geospatial data on 
                species and corridors found in energy development and 
                transmission plans, including renewable energy 
                initiatives, transportation, and other land use plans;
                    (K) identify, prioritize, and describe key parcels 
                of non-Federal land that--
                            (i) are located within units of the 
                        National Park System, National Wildlife Refuge 
                        System, National Forest System, or National 
                        Grassland System; and
                            (ii) are critical to maintenance of 
                        wildlife habitat and migration corridors; and
                    (L) be based on the best scientific information 
                available.
    (e) Financial and Other Support.--The Secretary may provide support 
to the States and Indian tribes, including financial and technical 
assistance, for activities that support the development and 
implementation of the System.
    (f) Coordination.--In cooperation with States and Indian tribes, 
the Secretary shall recommend how the information in the System may be 
incorporated into relevant State and Federal plans that affect fish and 
wildlife, including--
            (1) land management plans;
            (2) the State Comprehensive Wildlife Conservation 
        Strategies; and
            (3) appropriate tribal conservation plans.
    (g) Purpose of Incorporation.--The Secretary shall make the 
recommendations required by subsection (f) to ensure that relevant 
State and Federal plans that affect fish and wildlife--
            (1) prevent unnecessary habitat fragmentation and 
        disruption of corridors;
            (2) promote the landscape connectivity necessary to allow 
        wildlife to move as necessary to meet biological needs, adjust 
        to shifts in habitat, and adapt to climate change; and
            (3) minimize the impacts of energy, development, water, 
        transportation, and transmission projects and other activities 
        expected to impact habitat and corridors.

SEC. 372. ADDITIONAL PROVISIONS REGARDING INDIAN TRIBES.

    (a) Federal Trust Responsibility.--Nothing in this subpart amends, 
alters, or gives priority over the Federal trust responsibility to any 
Indian tribe.
    (b) Exemption From FOIA.--If a Federal department or agency 
receives any information relating to sacred sites or cultural 
activities identified by an Indian tribe as confidential, such 
information shall be exempt from disclosure under section 552 of title 
5, United States Code (commonly referred to as the Freedom of 
Information Act).
    (c) Application of Other Law.--The Secretary of the Interior may 
apply the provisions of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.) in the implementation of this 
subpart.
    (d) Protection of Right and Access of Indian Tribes to First 
Foods.--
            (1) Definition of first foods.--In this subsection, the 
        term ``first foods'' means roots, berries, and plants.
            (2) Protection.--Consistent with the Natural Resources 
        Climate Change Adaptation Policy under section 362 and the 
        Strategy, Federal departments and agencies, States, and Indian 
        tribes shall ensure communication and coordination to protect 
        treaty-reserved rights of Indian tribes to gather first foods.

        Subpart D--Additional Climate Change Adaptation Programs

SEC. 381. WATER SYSTEM MITIGATION AND ADAPTATION PARTNERSHIPS.

    (a) Definitions.--In this section:
            (1) Owner or operator.--
                    (A) In general.--The term ``owner or operator'' 
                means a person (including a regional, tribal, local, 
                municipal, or private entity) that owns or operates a 
                water system.
                    (B) Inclusion.--The term ``owner or operator'' 
                includes--
                            (i) a non-Federal entity that has 
                        operational responsibilities for a federally or 
                        State owned water system; and
                            (ii) an entity formed pursuant to any 
                        State's joint exercise of powers statutes that 
                        includes one or more of the entities in 
                        paragraph (A).
            (2) Water system.--The term ``water system'' means--
                    (A) a community water system (as defined in section 
                1401 of the Safe Drinking Water Act (42 U.S.C. 300f));
                    (B) a treatment works (as defined in section 212 of 
                the Federal Water Pollution Control Act (33 U.S.C. 
                1292)), including a municipal separate storm sewer 
                system;
                    (C) a decentralized wastewater treatment system for 
                domestic sewage;
                    (D) a groundwater storage and replenishment system; 
                or
                    (E) a system for transport and delivery of water 
                for irrigation or conservation.
    (b) Establishment.--The Administrator shall establish a water 
system mitigation and adaptation partnership program to provide funds 
to States and Indian tribes for water system adaptation projects.
    (c) Grants.--Beginning in fiscal year 2010, each State or Indian 
tribe receiving funds pursuant to this section shall make grants to 
owners or operators of water systems to address any ongoing or 
forecasted (based on the best available research and data) climate-
related impact on the water quality, water supply or reliability of a 
region of the United States, for the purposes of mitigating or adapting 
to the impacts of climate change.
    (d) Eligible Uses.--The funds made available to each State or 
Indian tribe pursuant to this section shall be used exclusively to 
assist in the planning, design, construction, implementation, or 
operation or maintenance of any program or project to respond or 
increase the resilience of a water system to climate change by--
            (1) conserving water or enhancing water use efficiency, 
        including through the use of water metering and electronic 
        sensing and control systems to measure the effectiveness of a 
        water efficiency program;
            (2) modifying or relocating existing water system 
        infrastructure made or projected to be significantly impaired 
        by climate change impacts;
            (3) preserving or improving water quality, including 
        through measures to manage, reduce, treat, or reuse municipal 
        stormwater, wastewater, or drinking water;
            (4) investigating, designing, or constructing groundwater 
        remediation, recycled water, or desalination facilities or 
        systems to serve existing communities;
            (5) enhancing water management by increasing watershed 
        preservation and protection, such as through the use of natural 
        or engineered green infrastructure in the management, 
        conveyance, or treatment of water, wastewater, or stormwater;
            (6) enhancing energy efficiency or the use and generation 
        of renewable energy in the management, conveyance, or treatment 
        of water, wastewater, or stormwater;
            (7) supporting the adoption and use of advanced water 
        treatment, water supply management (such as reservoir 
        reoperation and water banking), or water demand management 
        technologies, projects, or processes (such as water reuse and 
        recycling, adaptive conservation pricing, and groundwater 
        banking) that maintain or increase water supply or improve 
        water quality;
            (8) modifying or replacing existing systems or constructing 
        new systems for existing communities or land currently in 
        agricultural production to improve water supply, reliability, 
        storage, or conveyance in a manner that--
                    (A) promotes conservation or improves the 
                efficiency of utilization of available water supplies; 
                and
                    (B) does not further exacerbate stresses on 
                ecosystems or cause redirected impacts by degrading 
                water quality or increasing net greenhouse gas 
                emissions;
            (9) supporting practices and projects, such as improved 
        irrigation systems, water banking and other forms of water 
        transactions, groundwater recharge, stormwater capture, 
        groundwater conjunctive use, and reuse or recycling of drainage 
        water, to improve water quality or promote more efficient water 
        use on land currently in agricultural production;
            (10) conducting and completing studies or assessments to 
        project how climate change may impact the future operations and 
        sustainability of water systems; or
            (11) developing and implementing mitigation and adaptation 
        measures to rapidly address impacts from climate change on 
        water systems and regional and hydrological basins through 
        cooperative activities with other States that share the same 
        regional or hydrological basin (such as the Colorado River 
        Basin), water system, or shoreline.
    (e) Application.--To be eligible to receive a grant from the State 
of Indian tribe under this section, the owner or operator of a water 
system shall submit to the State or Indian tribe an application that--
            (1) includes a proposal of the program, strategy, or 
        infrastructure improvement to be planned, designed, 
        constructed, implemented, or maintained by the water system;
            (2) cites the best available research or data that 
        demonstrate--
                    (A) the risk to the water resources or 
                infrastructure of the water system as a result of 
                ongoing or forecasted changes to the hydrological 
                system brought about by factors arising from climate 
                change, including rising sea levels and changes in 
                precipitation levels; and
                    (B) how the proposed program, strategy, or 
                infrastructure improvement would perform under the 
                anticipated climate conditions; and
            (3) explains how the proposed program, strategy, or 
        infrastructure improvement is expected to enhance the 
        resiliency of the water system, including source water 
        protection for community water systems, to these risks or 
        reduce the direct or indirect greenhouse gas emissions of the 
        water system.
    (f) Competitive Process.--
            (1) In general.--Each calendar year, each State shall 
        conduct a competitive process to select and fund applications 
        under this section.
            (2) Priority requirements and weighting.--In carrying out 
        the process, the States shall--
                    (A) prioritize funding of applications that are 
                submitted by the owners or operators of water systems 
                that are, based on the best available research and 
                data, at the greatest and most immediate risk of facing 
                significant climate-related negative impacts on water 
                quality or quantity; and
                    (B) in selecting among the priority applications 
                determined under subparagraph (A), ensure that, to the 
                maximum extent practicable, the final list of 
                applications funded for each year includes a 
                substantial number meeting one or more of each of the 
                following goals--
                            (i) promote more efficient water use, water 
                        conservation, water reuse, or recycling;
                            (ii) use decentralized, low-impact 
                        development technologies and nonstructural 
                        approaches, including practices that use, 
                        enhance, or mimic the natural hydrological 
                        cycle or protect natural flows;
                            (iii) reduce stormwater runoff by 
                        protecting or enhancing natural ecosystem 
                        functions;
                            (iv) modify, upgrade, enhance, or replace 
                        existing water system infrastructure in 
                        response to ongoing or forecasted climate-
                        related impacts;
                            (v) promote the sustainability and 
                        reliability of water supplies used for 
                        agricultural purposes;
                            (vi) improve water quality or quantity for 
                        agricultural and municipal uses, including 
                        through salinity reduction; and
                            (vii) provide multiple benefits, including 
                        to water supply enhancement or demand 
                        reduction, water quality protection or 
                        improvement, increased flood protection, and 
                        ecosystem protection or improvement; and
                    (C) provide for solicitation and consideration of 
                public input in the development of criteria used in 
                evaluating applications.
    (g) Cost-sharing.--
            (1) Federal share.--The share of the cost of any program, 
        strategy, or infrastructure improvement that is the subject of 
        a grant awarded by a State to the owner or operator of a water 
        system under subsection (c) paid through funds distributed 
        under this section shall not exceed 50 percent of the cost of 
        the program, strategy, and infrastructure improvement.
            (2) Calculation of non-federal share.--In calculating the 
        non-Federal share of the cost of a program, strategy, or 
        infrastructure improvement proposed by a water system through 
        an application submitted by the water system under subsection 
        (e), the State shall--
                    (A) include the value of any in-kind services that 
                are integral to the completion of the program, 
                strategy, or infrastructure improvement, including 
                reasonable administrative and overhead costs; and
                    (B) not include any other amount that the water 
                system receives from a Federal agency.
    (h) Labor Standards.--
            (1) In general.--Other than with respect to employees of 
        State and local agencies, or other public entities, all 
        laborers and mechanics employed on infrastructure improvements 
        funded directly by or assisted in whole or in part by this 
        section shall be paid wages at rates not less than those 
        prevailing for the same type of work on similar construction in 
        the immediate locality, 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.
            (2) Authority and functions.--With respect to the labor 
        standards 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.

SEC. 382. FLOOD CONTROL, PROTECTION, PREVENTION, AND RESPONSE.

    (a) Establishment.--The Administrator, in consultation with the 
Assistant Secretary of the Army for Civil Works and the Administrator 
of the Federal Emergency Management Agency, shall establish a Flood 
Control, Protection, Prevention and Response Program to provide funds 
to States and Indian tribes for flood control, protection, prevention 
and response projects.
    (b) Eligible Uses.--
            (1) In general.--States and Indian tribes receiving funding 
        pursuant to this section may use such funding on flood control, 
        protection, prevention and response programs and projects 
        addressing the projected impacts of climate change in 
        accordance with this section.
            (2) Objectives.--Such projects and activities shall seek to 
        mitigate or adapt to the destructive impacts of climate related 
        increases in the duration, frequency, or magnitude of rainfall 
        or runoff, including snowmelt runoff, as well as hurricanes, 
        including projects and programs that--
                    (A) reduce flood damage, risk, and vulnerability;
                    (B) identify, maintain and restore ecosystems and 
                natural barriers integral to flood control, protection, 
                prevention and response;
                    (C) update the available data, technologies, and 
                scientific knowledge used in estimating, identifying 
                and mitigating flood hazards;
                    (D) highlight, update and remediate vulnerabilities 
                in emergency response;
                    (E) incorporate risk analysis and a risk-reduction 
                approach to flood-related investments;
                    (F) incorporate and identify changes in risk due to 
                processes such as land loss, subsidence, sea-level 
                rise, reduced natural buffers, urban development and 
                infrastructure aging;
                    (G) identify and incorporate innovative approaches 
                to land use management, water resource planning, and 
                ecosystem restoration;
                    (H) provide for acquisition and easement of 
                floodways and flood-prone properties in order to 
                prevent urban areas from flooding, or move people out 
                of harm's way; and
                    (I) promote land use planning that prevents future 
                floodplain development.
            (3) Priority.--Priority in projects to reduce flood events 
        shall be given to those projects that--
                    (A) directly assist local governments and 
                communities in flood control, protection, prevention 
                and response activities;
                    (B) are part of a larger State or watershed plan to 
                reduce flood risk;
                    (C) are specifically designed to accommodate 
                forecasted climate change scenarios;
                    (D) advance multiple objectives, including public 
                safety, water quality, fish and wildlife conservation, 
                water supply, and recreation;
                    (E) protect or enhance natural ecosystem functions, 
                including protection, maintenance, or restoration of 
                natural infrastructure, natural buffer zones, or 
                natural shorelines, to buffer communities from 
                floodwaters or storms, watershed protection to maintain 
                water quality and groundwater recharge, or floodplain 
                restoration to improve natural flood control capacity;
                    (F) use nonstructural approaches, including 
                practices that use, enhance, or mimic the natural 
                hydrologic cycle; and
                    (G) reduce the frequency and consequences of 
                flooding in densely populated urban areas.

SEC. 383. WILDFIRE.

    (a) Findings.--Congress finds that--
            (1) since 1980, wildfires in the United States have burned 
        almost twice as many acres per year on average than the average 
        burned acreage during the period beginning on January 1, 1920, 
        and ending on December 31, 1979;
            (2) the wildfire season in the western United States has 
        increased by an average of 78 days during the 30-year period 
        preceding the date of enactment of this Act;
            (3) researchers predict that the area subject to wildfire 
        damage will increase during the 21st century by up to 118 
        percent as a result of climate change;
            (4) of the annual budget of the Forest Service, the Forest 
        Service used for wildfire suppression activities--
                    (A) 13 percent in 1991; and
                    (B) 45 percent in 2007; and
            (5) 1 percent of the largest escaped fires--
                    (A) burn 95 percent of all burned acres; and
                    (B) consume 85 percent of all wildfire fighting 
                costs.
    (b) Purpose.--The purpose of this section is to authorize a program 
to reduce the risk of wildfires in fire-ready communities.
    (c) Definitions.--In this section:
            (1) Fire-ready community.--The term ``fire-ready 
        community'' means a community that--
                    (A) is located within a priority area identified 
                pursuant to subsection (d);
                    (B) has a cooperative fire agreement that 
                articulates the roles and responsibilities for Federal, 
                State, and local government entities, and, where 
                applicable, Indian tribes, in local wildfire 
                suppression and protection;
                    (C) has local codes that require fire-resistant 
                home design and building materials;
                    (D) has a community wildfire protection plan (as 
                defined in section 101 of the Healthy Forests 
                Restoration Act of 2003 (16 U.S.C. 6502)); and
                    (E) is engaged in a successful collaborative 
                process that includes multiple interested persons 
                representing diverse interests and is transparent and 
                nonexclusive, such as a resource advisory committee 
                established under section 205 of the Secure Rural 
                Schools and Community Self-Determination Act of 2000 
                (Public Law 106-393; 16 U.S.C. 500 note).
            (2) Secretaries.--The term ``Secretaries'' means the 
        Secretary of Agriculture and the Secretary of the Interior.
    (d) Fire Risk Mapping.--As soon as is practicable after the date of 
the enactment of this Act, the Secretaries shall develop regional maps 
of communities most at risk of wildfire and in need of hazardous fuel 
treatment and maintenance. The maps shall identify priority areas for 
hazardous fuels reduction projects, including--
            (1) at-risk communities in fire-prone areas of the 
        wildland-urban interface (as defined in section 101 of the 
        Healthy Forests Restoration Act of 2003 (16 U.S.C. 6502));
            (2) watersheds and municipal drinking water sources;
            (3) emergency evacuation corridors;
            (4) electricity transmission corridors;
            (5) low-capacity or low-income communities; and
            (6) communities in fire-prone areas due to the impact of 
        pest infestation on forest resources.
    (e) Local Wildland Firefighting Capability Grants.--
            (1) Grants available.--The Secretaries may provide cost-
        share grants to--
                    (A) fire-ready communities, to assist those 
                communities in carrying out activities authorized by 
                paragraph (2); and
                    (B) communities that are not fire-ready, to assist 
                those communities in carrying out planning activities 
                to become fire-ready communities consistent with the 
                requirements of this section.
            (2) Eligible activities.--Grant funds may be used for the 
        following:
                    (A) Education programs to raise awareness of 
                homeowners and citizens about wildland fire protection 
                practices, including FireWise or similar programs.
                    (B) Training programs for local firefighters on 
                wildland firefighting techniques and approaches.
                    (C) Equipment acquisition to facilitate wildland 
                fire preparedness.
                    (D) Implementation of a community wildfire 
                protection plan.
                    (E) Forest restoration that accomplishes fuels 
                reduction
    (f) Wildland Fire Cost-share Agreements.--In developing any 
wildland fire cost-share agreement with a State Forester or equivalent 
official, the Secretaries shall, to the maximum extent practicable, 
encourage the State and local communities involved to become fire-ready 
communities.

SEC. 384. COASTAL AND GREAT LAKES STATE ADAPTATION PROGRAM.

    (a) Findings.--Congress finds that, according to the National Ocean 
Economics Program, coastal and Great Lakes States account for 81.4 
percent of the population of the United States and generate 83 percent 
of the economic output of the United States.
    (b) Definitions.--In this section:
            (1) Coastal state.--The term ``coastal State'' has the 
        meaning given the term ``coastal state'' in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
            (2) Coastal watershed.--The term ``coastal watershed'' 
        means a geographical area drained into or contributing water to 
        an estuarine area, an ocean, or a Great Lake, all or a portion 
        of which is within the coastal zone (as defined in section 304 
        of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)).
            (3) Shoreline miles.--The term ``shoreline miles'', with 
        respect to a coastal State, means the mileage of tidal 
        shoreline or Great Lake shoreline of the coastal State, based 
        on the most recently available data from or accepted by the 
        National Ocean Service of the National Oceanic and Atmospheric 
        Administration.
    (c) Distribution.--
            (1) In general.--The Administrator shall distribute, in 
        accordance with this section, funding for coastal State 
        adaptation under subsection (d).
            (2) Allocation.--The funding available for allocation under 
        subsection (b) for a calendar year shall be distributed among 
        coastal States, as follows:
                    (A) 25 percent based on the proportion that--
                            (i) the number of shoreline miles of a 
                        coastal State; bears to
                            (ii) the total number of shoreline miles of 
                        all coastal States.
                    (B) 25 percent based on the proportion that--
                            (i) the population of a coastal State; 
                        bears to
                            (ii) the total population of all coastal 
                        States.
                    (C) 50 percent divided equally among all coastal 
                States.
    (d) Use of Funding.--
            (1) In general.--During any calendar year, a coastal State 
        receiving funding under this section may use the funding only 
        for projects and activities to plan for and address the impacts 
        of climate change in the coastal watershed, including--
                    (A) to address the impacts of climate change with 
                respect to--
                            (i) accelerated sea level rise and lake 
                        level changes;
                            (ii) shoreline erosion;
                            (iii) increased storm frequency or 
                        intensity;
                            (iv) changes in rainfall or other 
                        precipitation; and
                            (v) related flooding;
                    (B) to identify and develop plans to protect, or, 
                as necessary or applicable, to relocate public 
                facilities and infrastructure, coastal resources of 
                national significance, public energy facilities, or 
                other public water uses located in the coastal 
                watershed that are affected by climate change, 
                including strategies that protect or restore natural 
                infrastructure, if the plans--
                            (i) ensure full consideration and 
                        undertake, to the maximum extent practicable, 
                        initiatives that--
                                    (I) protect or enhance natural 
                                ecosystem functions, including 
                                protection, maintenance, or restoration 
                                of natural infrastructure, natural 
                                buffer zones, or natural shorelines 
                                (such as wetlands, reefs, and barrier 
                                islands) to buffer communities from 
                                floodwaters or storms, watershed 
                                protection to maintain water quality 
                                and groundwater recharge, or floodplain 
                                restoration to improve natural flood 
                                control capacity; or
                                    (II) use nonstructural approaches, 
                                including practices that utilize, 
                                enhance, or mimic the natural 
                                hydrologic cycle processes of 
                                infiltration, evapotranspiration, and 
                                reuse; and
                            (ii) are consistent with Federal 
                        conservation and environmental laws and, to the 
                        maximum extent practicable, avoid environmental 
                        degradation;
                    (C) to research and collect data using, or on 
                matters such as--
                            (i) historical shoreline position maps;
                            (ii) historical shoreline erosion rates;
                            (iii) inventories of shoreline features and 
                        conditions;
                            (iv) acquisition of high-resolution 
                        topography and bathymetry;
                            (v) sea level rise inundation models;
                            (vi) storm surge sea level rise linked 
                        inundation models;
                            (vii) shoreline change modeling based on 
                        sea level rise projections;
                            (viii) sea level rise vulnerability 
                        analyses and socioeconomic studies; and
                            (ix) environmental and habitat changes 
                        associated with sea level rise; and
                    (D) to respond to--
                            (i) changes in chemical characteristics 
                        (including ocean acidification) and physical 
                        characteristics (including thermal 
                        stratification) of marine systems;
                            (ii) sea level rise threats to groundwater 
                        aquifers, including--
                                    (I) saltwater intrusion; and
                                    (II) unsaturated zone thinning;
                            (iii) increased harmful algae blooms;
                            (iv) spread of invasive species;
                            (v) coastal habitat loss;
                            (vi) species migrations; and
                            (vii) marine, estuarine, and freshwater 
                        ecosystem changes associated with climate 
                        change.
            (2) Execution.--Priority to plan and carry out projects and 
        activities under this subsection shall be given to State 
        coastal agencies, as determined in accordance with State law.
            (3) Coordination.--In carrying out this subsection, a 
        coastal State shall coordinate with other statewide or tribal 
        climate change efforts and climate change efforts to promote 
        cooperation and in order to avoid duplication of such efforts.
    (e) Report.--Not later than 1 year after the date on which a State 
receives funds under this section, and biennially thereafter until such 
time as the funding is fully expended, the State shall submit to the 
Administrator, or the heads of such other Federal agencies as the 
President may designate, a report that--
            (1) provides a full accounting for the State's use of 
        funding distributed under this section, including a description 
        of the projects and activities funded;
            (2) may be independent or included within any report 
        required for any State programs for greenhouse gas reduction 
        and climate adaptation; and
            (3) is available to the public on request.

             DIVISION B--POLLUTION REDUCTION AND INVESTMENT

               TITLE I--REDUCING GLOBAL WARMING POLLUTION

             Subtitle A--Reducing Global Warming Pollution

SEC. 101. REDUCING GLOBAL WARMING POLLUTION.

    The Clean Air Act is amended by adding after title VI (42 U.S.C. 
7671 et seq.) the following:

 ``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION AND INVESTMENT PROGRAM

     ``PART A--GLOBAL WARMING POLLUTION REDUCTION GOALS AND TARGETS

``SEC. 701. FINDINGS.

    ``Congress finds that--
            ``(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 
        countries;
            ``(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;
            ``(3) 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;
            ``(4) accordingly, controlling emissions in small as well 
        as large quantities is essential to prevent, slow the pace of, 
        reduce the threats from, and mitigate global warming and its 
        adverse effects;
            ``(5) because they induce global warming, greenhouse gas 
        emissions cause or contribute to injuries to persons in the 
        United States, including--
                    ``(A) adverse health effects, such as disease and 
                loss of life;
                    ``(B) displacement of human populations;
                    ``(C) damage to property and other interests 
                relating to ocean levels, acidification, and ice 
                changes;
                    ``(D) severe weather and seasonal changes;
                    ``(E) disruption, costs, and losses to business, 
                trade, employment, farms, subsistence, aesthetic 
                enjoyment of the environment, recreation, culture, and 
                tourism;
                    ``(F) damage to plants, forests, lands, and waters;
                    ``(G) harm to wildlife and habitat;
                    ``(H) scarcity of water and the decreased abundance 
                of other natural resources;
                    ``(I) worsening of tropospheric air pollution;
                    ``(J) substantial threats of similar damage; and
                    ``(K) other harm;
            ``(6) the fact that many of those 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;
            ``(7) the fact 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;
            ``(8) countries of the world look to the United States for 
        leadership in addressing the threat of and harm from global 
        warming;
            ``(9) full implementation of this title is critical to 
        engage other countries in an international effort to mitigate 
        the threat of and harm from global warming; and
            ``(10) 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 this title is 
        fully implemented and enforced in an expeditious manner.

``SEC. 702. ECONOMYWIDE REDUCTION GOALS.

    ``The goals of this title, and the Clean Energy Jobs and American 
Power Act (and the amendments made by that Act), are to reduce steadily 
the quantity of United States greenhouse gas emissions such that--
            ``(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;
            ``(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;
            ``(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; and
            ``(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.

``SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES.

    ``(a) In General.--The regulations issued under section 721 shall 
limit and reduce annually the greenhouse gas emissions of capped 
sources each calendar year beginning in 2012 such that--
            ``(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;
            ``(2) in 2020, the quantity of greenhouse gas emissions 
        from capped sources does not exceed 80 percent of the quantity 
        of greenhouse gas emissions from such sources in 2005;
            ``(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; and
            ``(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.
    ``(b) Definition of Greenhouse Gas Emissions From Such Sources in 
2005.--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.

``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 a percentage 
specified in section 771(c) 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 753(a)(2).

``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--
            ``(1) an analysis of key findings based on up-to-date 
        scientific information and data relevant to global climate 
        change;
            ``(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 Clean Energy Jobs and 
        American Power Act (and the amendments made by that Act);
            ``(3) an analysis of the status of worldwide greenhouse gas 
        reduction efforts, including implementation of the Clean Energy 
        Jobs and American Power 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; and
            ``(4) an analysis, to be conducted by the Secretary of 
        Energy in accordance with subsection (f) and submitted to the 
        Administrator for inclusion in each report under this 
        subsection, of the technological feasibility of achieving 
        additional reductions in greenhouse gas emissions.
    ``(b) Exception.--Subsection (a)(3) shall not apply to the first 
report submitted under subsection (a).
    ``(c) Latest Scientific Information.--The analysis required under 
subsection (a)(1) shall--
            ``(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 365 of the Clean Energy Jobs and 
        American Power Act, and Federal agencies, and the European 
        Union's global temperature data assessment;
            ``(2) review trends and projections for--
                    ``(A) global and country-specific annual emissions 
                of greenhouse gases, and cumulative greenhouse gas 
                emissions produced between 1850 and the present, 
                including--
                            ``(i) global cumulative emissions of 
                        anthropogenic greenhouse gases;
                            ``(ii) global annual emissions of 
                        anthropogenic greenhouse gases; and
                            ``(iii) by country, annual total, annual 
                        per capita, and cumulative anthropogenic 
                        emissions of greenhouse gases for the top 50 
                        emitting nations;
                    ``(B) significant changes, both globally and by 
                region, in annual net non-anthropogenic greenhouse gas 
                emissions from natural sources, including permafrost, 
                forests, or oceans;
                    ``(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;
                    ``(D) major climate forcing factors, such as 
                aerosols;
                    ``(E) global average temperature, expressed as 
                seasonal and annual averages in land, ocean, and land-
                plus-ocean averages; and
                    ``(F) sea level rise;
            ``(3) assess the current and potential impacts of global 
        climate change on--
                    ``(A) human populations, including impacts on 
                public health, economic livelihoods, subsistence, 
                tribal culture, human infrastructure, and displacement 
                or permanent relocation due to flooding, severe 
                weather, extended drought, erosion, or other ecosystem 
                changes;
                    ``(B) freshwater systems, including water resources 
                for human consumption and agriculture and natural and 
                managed ecosystems, flood and drought risks, and 
                relative humidity;
                    ``(C) the carbon cycle, including impacts related 
                to the thawing of permafrost, the frequency and 
                intensity of wildfire, and terrestrial and ocean carbon 
                sinks;
                    ``(D) ecosystems and animal and plant populations, 
                including impacts on species abundance, phenology, and 
                distribution;
                    ``(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;
                    ``(F) the cryosphere, including effects on ice 
                sheet mass balance, mountain glacier mass balance, and 
                sea-ice extent and volume;
                    ``(G) changes in the intensity, frequency, or 
                distribution of severe weather events, including 
                precipitation, tropical cyclones, tornadoes, and severe 
                heat waves;
                    ``(H) agriculture and forest systems; and
                    ``(I) any other indicators the Administrator deems 
                appropriate;
            ``(4) summarize any significant socioeconomic 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--
                    ``(A) public health;
                    ``(B) economic livelihoods, subsistence, and tribal 
                culture;
                    ``(C) displacement or permanent relocation due to 
                flooding, severe weather, extended drought, or other 
                ecosystem changes;
                    ``(D) human infrastructure, including coastal 
                infrastructure vulnerability to extreme events and sea 
                level rise, river floodplain infrastructure, and sewer 
                and water management systems;
                    ``(E) agriculture and forests, including effects on 
                potential growing season, distribution, and yield;
                    ``(F) water resources for human consumption, 
                agriculture and natural and managed ecosystems, flood 
                and drought risks, and relative humidity;
                    ``(G) energy supply and use; and
                    ``(H) transportation;
            ``(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--
                    ``(A) both monetized and non-monetized losses;
                    ``(B) potential nonlinear, abrupt, or essentially 
                irreversible changes in the climate system;
                    ``(C) potential nonlinear increases in the cost of 
                impacts;
                    ``(D) potential low-probability, high impact 
                events; and
                    ``(E) whether impacts are transitory or essentially 
                permanent; and
            ``(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--
                    ``(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; 
                and
                    ``(B) identify and assess--
                            ``(i) significant residual risks not 
                        avoided by the thresholds described in 
                        subparagraph (A);
                            ``(ii) alternative thresholds or targets 
                        that may more effectively limit the risks 
                        identified pursuant to clause (i); and
                            ``(iii) thresholds above those described in 
                        subparagraph (A) which significantly increase 
                        the risk of certain impacts or render them 
                        essentially permanent.
    ``(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--
            ``(1) quantification of emissions and emission reductions 
        by entities participating in the pollution reduction and 
        investment program under this title;
            ``(2) quantification of emissions and emission reductions 
        by entities participating in the offset program under this 
        title;
            ``(3) quantification of emission and emission reductions by 
        entities regulated by performance standards;
            ``(4) quantification of aggregate net emissions and 
        emission reductions by the United States; and
            ``(5) quantification of global changes in net emissions and 
        in sources and sinks of greenhouse gases.
    ``(e) Status of Greenhouse Gas Reduction Efforts.--The analysis 
required under subsection (a)(3) shall address--
            ``(1) whether the programs under the Clean Energy Jobs and 
        American Power Act (and the amendments made by that Act) and 
        other Federal statutes are resulting in sufficient United 
        States greenhouse gas emission reductions to meet the emissions 
        reduction goals described in section 702, taking into account 
        the use of offsets; and
            ``(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--
                    ``(A) atmospheric greenhouse gas concentrations 
                above 450 parts per million carbon dioxide equivalent;
                    ``(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; and
                    ``(C) other temperature or greenhouse gas 
                thresholds identified pursuant to subsection (c)(6)(B).
    ``(f) Technological Information.--The analysis required under 
subsection (a)(4) shall--
            ``(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;
            ``(2) include the participation of technical experts from 
        relevant private industry sectors;
            ``(3) review the current and future projected deployment of 
        technologies and practices in the United States that reduce or 
        limit greenhouse gas emissions, including--
                    ``(A) technologies for capture and sequestration of 
                greenhouse gases;
                    ``(B) technologies to improve energy efficiency;
                    ``(C) low- or zero-greenhouse gas emitting energy 
                technologies;
                    ``(D) low- or zero-greenhouse gas emitting fuels;
                    ``(E) biological sequestration practices and 
                technologies; and
                    ``(F) any other technologies the Secretary 
                determines to be relevant; and
            ``(4) review and compare the emission reduction potential, 
        commercial viability, market penetration, investment trends, 
        and deployment of the technologies described in paragraph (3), 
        including--
                    ``(A) the need for additional research and 
                development, including publicly funded research and 
                development;
                    ``(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; and
                    ``(C) an evaluation of any substantial 
                technological, legal, or market-based barriers to 
                commercial deployment.
    ``(g) Recommendations.--
            ``(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--
                    ``(A) improve the characterization of changes in 
                the earth-climate system and impacts of global climate 
                change;
                    ``(B) better inform decision making and actions 
                related to global climate change;
                    ``(C) mitigate risks to natural and social systems; 
                and
                    ``(D) design policies to better account for climate 
                risks.
            ``(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.
            ``(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--
                    ``(A) the quantity of additional reductions 
                required to meet the emissions reduction goals in 
                section 702;
                    ``(B) the quantity of additional reductions in 
                global greenhouse gas emissions needed to avoid the 
                concentration and temperature thresholds identified in 
                subsection (e); and
                    ``(C) possible strategies and approaches for 
                achieving additional reductions.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

``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--
            ``(1) a review of the most recent report and 
        recommendations issued under section 705; and
            ``(2) an analysis of technologies to achieve reductions in 
        greenhouse gas emissions.
    ``(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.
    ``(c) Recommendations.--
            ``(1) Latest scientific information.--Based on the review 
        described in subsection (a)(1), the Academy shall identify 
        actions that could be taken to--
                    ``(A) improve the characterization of changes in 
                the earth-climate system and impacts of global climate 
                change;
                    ``(B) better inform decision making and actions 
                related to global climate change;
                    ``(C) mitigate risks to natural and social systems;
                    ``(D) design policies to better account for climate 
                risks; and
                    ``(E) improve the accuracy and reliability of 
                capabilities to monitor, report, and verify greenhouse 
                gas emissions reduction efforts.
            ``(2) Technological information.--Based on the analysis 
        described in subsection (a)(2), the Academy shall identify--
                    ``(A) additional emission reductions that may be 
                possible as a result of technologies described in the 
                analysis;
                    ``(B) barriers to the deployment of such 
                technologies; and
                    ``(C) actions that could be taken to speed 
                deployment of such technologies.
            ``(3) Status of greenhouse gas reduction efforts.--Based on 
        the review described in subsection (a)(1), the Academy shall 
        identify--
                    ``(A) the quantity of additional reductions 
                required to meet the emissions reduction goals 
                described in section 702; and
                    ``(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).
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

``SEC. 707. PRESIDENTIAL RESPONSE AND RECOMMENDATIONS.

    ``Not later than July 1, 2015, and every 4 years thereafter--
            ``(1) 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; and
            ``(2) in the event that the National Academy of Sciences 
        has concluded, in the most recent report submitted under 
        section 706, that the United States will not achieve the 
        necessary domestic greenhouse gas emission reductions, or that 
        global actions will not maintain safe global average surface 
        temperature and atmospheric greenhouse gas concentration 
        thresholds, the President shall submit to Congress a plan 
        identifying domestic and international actions that will 
        achieve necessary additional greenhouse gas reductions, 
        including any recommendations for legislative action.

``SEC. 708. CONSULTATION WITH STATES.

    ``In the development of any regulations required to implement the 
global warming pollution and reduction investment program pursuant to 
this title, and in the implementation of that program, the 
Administrator shall consult with the States in the Regional Greenhouse 
Gas Initiative, the Western Climate Initiative, and the Mid-West 
Governors Accord.

       ``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:
            ``(1) Carbon dioxide.
            ``(2) Methane.
            ``(3) Nitrous oxide.
            ``(4) Sulfur hexafluoride.
            ``(5) Hydrofluorocarbons from a chemical manufacturing 
        process at an industrial stationary source.
            ``(6) Any perfluorocarbon that is an 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.
            ``(7) Nitrogen trifluoride.
            ``(8) Any other anthropogenic gas designated as a 
        greenhouse gas by the Administrator under this section.
    ``(b) Determination on Administrator's Initiative.--The 
Administrator shall, by rule--
            ``(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;
            ``(2) determine the carbon dioxide equivalent value for 
        each gas with respect to which the Administrator makes an 
        affirmative determination under paragraph (1);
            ``(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;
            ``(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; and
            ``(5) specify the appropriate compliance obligations under 
        this title for each gas designated as a greenhouse gas under 
        paragraph (4).
    ``(c) Petitions to Designate a Greenhouse Gas.--
            ``(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.
            ``(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 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.
            ``(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.
            ``(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.
            ``(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.
            ``(6) Determination.--Not later than 2 years after receipt 
        of a complete petition, the Administrator shall, after notice 
        and an opportunity for comment--
                    ``(A) issue and publish in the Federal Register--
                            ``(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; and
                            ``(ii) an explanation of the decision; or
                    ``(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.
            ``(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.
    ``(d) Science Advisory Board Consultation.--
            ``(1) Consultation.--The Administrator shall--
                    ``(A) give notice to the Science Advisory Board 
                prior to making a determination under subsection 
                (b)(1), (c)(6), or (e)(2)(B);
                    ``(B) consider the written recommendations of the 
                Science Advisory Board under paragraph (2) regarding 
                the determination; and
                    ``(C) consult with the Science Advisory Board 
                regarding such determination, including consultation 
                subsequent to receipt of such written recommendations.
            ``(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--
                    ``(A) formulate recommendations regarding such 
                determination, subject to a peer review process; and
                    ``(B) submit such recommendations in writing to the 
                Administrator.
    ``(e) Manufacturing and Emission Notices.--
            ``(1) Notice requirement.--
                    ``(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 in a calendar year a 
                significant quantity, as determined by the 
                Administrator (which in no case shall be less than \1/
                2\ ton of such fluorinated gas), of any fluorinated gas 
                that is generated as a byproduct during the production 
                or use of another fluorinated gas, unless--
                            ``(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;
                            ``(ii) the Administrator has determined 
                        that 1 metric ton of such gas does not make a 
                        contribution to global warming that is equal to 
                        or greater than that made by 1 metric ton of 
                        carbon dioxide; or
                            ``(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 notice or a substantially similar notice 
                        is incomplete.
                    ``(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).
            ``(2) Review and action by the administrator.--
                    ``(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.
                    ``(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--
                            ``(i) issue and publish in the Federal 
                        Register 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 and an explanation of the 
                        decision; or
                            ``(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.
    ``(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--
            ``(1) requirements for the contents of a petition submitted 
        under subsection (c);
            ``(2) requirements for the contents of a notice required 
        under subsection (e); and
            ``(3) methods and standards for evaluating the carbon 
        dioxide equivalent value of a gas.
    ``(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.
    ``(h) Savings Clause.--Nothing in this section shall be interpreted 
to relieve any person from complying with the requirements of section 
612.

``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.
    ``(b) Initial Value.--Except as provided by the Administrator under 
this section or section 711--
            ``(1) the carbon dioxide equivalent value of greenhouse 
        gases for purposes of this Act shall be as follows:

                        `` CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASES
----------------------------------------------------------------------------------------------------------------
              Greenhouse gas (1 metric ton)                       Carbon dioxide equivalent (metric tons)
----------------------------------------------------------------------------------------------------------------
Carbon dioxide                                            1
----------------------------------------------------------------------------------------------------------------
Methane                                                   25
----------------------------------------------------------------------------------------------------------------
Nitrous oxide                                             298
----------------------------------------------------------------------------------------------------------------
HFC-23                                                    14,800
----------------------------------------------------------------------------------------------------------------
HFC-125                                                   3,500
----------------------------------------------------------------------------------------------------------------
HFC-134a                                                  1,430
----------------------------------------------------------------------------------------------------------------
HFC-143a                                                  4,470
----------------------------------------------------------------------------------------------------------------
HFC-152a                                                  124
----------------------------------------------------------------------------------------------------------------
HFC-227ea                                                 3,220
----------------------------------------------------------------------------------------------------------------
HFC-236fa                                                 9,810
----------------------------------------------------------------------------------------------------------------
HFC-4310mee                                               1,640
----------------------------------------------------------------------------------------------------------------
CF4                                                       7,390
----------------------------------------------------------------------------------------------------------------
C2F6                                                      12,200
----------------------------------------------------------------------------------------------------------------
C4F10                                                     8,860
----------------------------------------------------------------------------------------------------------------
C6F14                                                     9,300
----------------------------------------------------------------------------------------------------------------
SF6                                                       22,800
----------------------------------------------------------------------------------------------------------------
NF3                                                       17,200
----------------------------------------------------------------------------------------------------------------

        ; and
            ``(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.
    ``(c) Periodic Review.--
            ``(1) Not later than February 1, 2017, and (except as 
        provided in paragraph (3)) not less than every 5 years 
        thereafter, the Administrator shall--
                    ``(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; and
                    ``(B) publish in the Federal Register the results 
                of that review and any revisions.
            ``(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.
            ``(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.
    ``(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.

``SEC. 713. GREENHOUSE GAS REGISTRY.

    ``(a) Definitions.--For purposes of this section:
            ``(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.
            ``(2) Reporting entity.--The term `reporting entity' 
        means--
                    ``(A) a covered entity;
                    ``(B) an entity that--
                            ``(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; and
                            ``(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;
                    ``(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;
                    ``(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; or
                    ``(E) any entity that delivers electricity to an 
                energy-intensive facility in an industrial sector that 
                meets the energy or greenhouse gas intensity criteria 
                in section 764(b)(3)(B)(i).
    ``(b) Regulations.--
            ``(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--
                    ``(A) require reporting entities to submit to the 
                Administrator data on--
                            ``(i) greenhouse gas emissions in the 
                        United States;
                            ``(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;
                            ``(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; and
                            ``(iv) the capture and sequestration of 
                        greenhouse gases;
                    ``(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;
                    ``(C) require reporting of electricity delivered to 
                industrial sources in energy-intensive industries;
                    ``(D) ensure the completeness, consistency, 
                transparency, accuracy, precision, and reliability of 
                such data;
                    ``(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;
                    ``(F) take into account the latest scientific 
                research;
                    ``(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--
                            ``(i) continuous monitoring systems for 
                        fuel flow or emissions, such as continuous 
                        emission monitoring systems;
                            ``(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; 
                        or
                            ``(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;
                    ``(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;
                    ``(I) include methods for minimizing double 
                reporting and avoiding irreconcilable double reporting 
                of greenhouse gas emissions;
                    ``(J) establish measurement protocols for carbon 
                capture and sequestration systems, taking into 
                consideration the regulations promulgated under section 
                813;
                    ``(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;
                    ``(L) include requirements for keeping records 
                supporting or related to, and protocols for auditing, 
                submitted data;
                    ``(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;
                    ``(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--
                            ``(i) its nondissemination is vital to the 
                        national security of the United States, as 
                        determined by the President; or
                            ``(ii) it is confidential business 
                        information that cannot be derived from 
                        information that is otherwise publicly 
                        available and disclosure of which would likely 
                        cause substantial harm to the competitive 
                        position of the person from which the 
                        information was obtained, except that--
                                    ``(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; and
                                    ``(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--
                                            ``(aa) the State or Indian 
                                        tribe has first provided to the 
                                        Administrator a written opinion 
                                        from the chief legal officer or 
                                        counsel of the requesting State 
                                        agency, or comparable tribal 
                                        legal counsel, stating that 
                                        under applicable State or 
                                        tribal law, the State or Indian 
                                        tribe has the authority to 
                                        compel a business that 
                                        possesses such information to 
                                        disclose the information to the 
                                        State or Indian tribe; or
                                            ``(bb) each affected 
                                        business is informed of 
                                        disclosures under this part 
                                        that pertain to the business, 
                                        and the State or Indian tribe 
                                        has demonstrated to the chief 
                                        legal officer of the 
                                        Environmental Protection Agency 
                                        that the use and disclosure by 
                                        the State or Indian tribe, as 
                                        applicable, of such information 
                                        will be governed by State or 
                                        tribal law and procedures that 
                                        will provide adequate 
                                        protection to the interests of 
                                        affected businesses;
                    ``(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--
                            ``(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--
                                    ``(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; 
                                or
                                    ``(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; and
                            ``(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;
                    ``(P) require the designation of a designated 
                representative for each reporting entity;
                    ``(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; and
                    ``(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.
            ``(2) Timing.--
                    ``(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.
                    ``(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.
            ``(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.
            ``(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.
    ``(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.

``SEC. 714. PERFLUOROCARBON AND OTHER NONHYDROFLUOROCARBON FLUORINATED 
              SUBSTANCE PRODUCTION REGULATION.

    ``(a) Definitions.--In this section:
            ``(1) Best achievable performance standard.--The term `best 
        achievable performance standard' means a limitation on total 
        emissions based on the maximum degree of reduction of 
        fluorinated gases that are greenhouse gases subject to 
        regulation under this Act emitted during the production of 
        nonhydrofluorocarbon fluorinated substances at covered entities 
        that the Administrator, taking into consideration energy, 
        environmental, economic impacts, and other costs, determines to 
        be achievable for covered entities through application of 
        production process optimization and available methods, control 
        technologies or systems, and management techniques or 
        practices.
            ``(2) Nonhydrofluorocarbon fluorinated substance.--The term 
        `nonhydrofluorocarbon fluorinated substance' means a substance 
        included on the list under subsection (d) that--
                    ``(A) is not listed as a class I or class II 
                substance under title VI; and
                    ``(B) is not--
                            ``(i) sulfur hexafluoride; or
                            ``(ii) nitrogen trifluoride.
    ``(b) Determination by Administrator.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator shall determine, 
        based on the criteria described in paragraph (2), whether 
        fluorinated gases that are greenhouse gases emitted during the 
        production of nonhydrofluorocarbon fluorinated substances 
        should be regulated in accordance with--
                    ``(A) subsection (c); or
                    ``(B) the applicable requirements of section 722 
                relating to emissions of greenhouse gases during 
                fluorinated substance production at covered entities.
            ``(2) Criteria for determination.--In making the 
        determination under paragraph (1), the Administrator shall take 
        into consideration--
                    ``(A) whether an equivalent or greater level of 
                total emissions reductions could be achieved under 
                subsection (c), as compared to the emissions reductions 
                that would be achieved under the applicable 
                requirements of section 722 relating to emissions of 
                greenhouse gases during fluorinated substance 
                production at covered entities; and
                    ``(B) such other criteria as the Administrator 
                determines to be appropriate.
    ``(c) Greenhouse Gas Emissions From Nonhydrofluorocarbon 
Fluorinated Substance Production.--
            ``(1) In general.--If the Administrator makes the 
        determination described in subsection (b)(1)(A), not later than 
        18 months after the date of enactment of this section, the 
        Administrator shall promulgate regulations applicable to 
        covered entities that require fluorinated gases that are 
        greenhouse gases emitted during the production of 
        nonhydrofluorocarbon fluorinated substances at those covered 
        entities to meet the best achievable performance standard.
            ``(2) Best achievable performance standard review.--The 
        Administrator shall, at the discretion of the Administrator--
                    ``(A) not later than 2 years after the date of 
                establishment of a best achievable performance 
                standard, and every 2 years thereafter--
                            ``(i) review the best achievable 
                        performance standard; and
                            ``(ii) as necessary, establish a more 
                        stringent best available performance standard 
                        that reduces emissions, to the maximum extent 
                        practicable, in accordance with the economy-
                        wide reduction goals referred to in section 
                        702; or
                    ``(B) not later than 2 years after the date of 
                establishment of a best achievable performance 
                standard, and every 10 years thereafter, establish a 
                10-year schedule under which each applicable covered 
                entity shall incrementally implement a more stringent 
                best achievable performance standard that reduces, to 
                the maximum extent practicable, emissions in accordance 
                with the economy-wide reduction goals referred to in 
                section 702.
            ``(3) Exclusivity.--If the Administrator makes the 
        determination described in subsection (b)(1)(A), the 
        requirements of this subsection relating to control of 
        emissions of fluorinated gases that are greenhouse gases during 
        the production of nonhydrofluorocarbon fluorinated substances 
        shall apply in lieu of the requirements of section 722 relating 
        to emissions of fluorinated gases that are greenhouse gases 
        during fluorinated substance production at covered entities.
    ``(d) List of Nonhydrofluorocarbon Fluorinated Substances.--
            ``(1) Initial list.--If the Administrator makes the 
        determination described in subsection (b)(1)(A), not later than 
        2 years after the date of enactment of this section, the 
        Administrator shall publish a list of nonhydrofluorocarbon 
        fluorinated substances subject to regulation under this 
        section.
            ``(2) Additions to list.--The Administrator may include on 
        the list published under paragraph (1) any substance that meets 
        the requirements described in subsection (a)(2).

                        ``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 quantities prescribed under subsection (e).
    ``(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.
    ``(c) Legal Status of Emission Allowances.--
            ``(1) In general.--An allowance established by the 
        Administrator under this title does not constitute a property 
        right.
            ``(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, offset credits, or term offset credits.
            ``(3) Other provisions unaffected.--Except as otherwise 
        specified in this Act, nothing in this Act relating to 
        allowances, offset credits, or term 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.
    ``(d) Savings Provision.--Nothing in this part shall be construed 
as requiring a change of any kind in any State or tribal law regulating 
electric utility rates and charges, or as affecting any State or tribal 
law regarding such State regulation, or as limiting State or tribal 
regulation (including any prudency review) under such a State or tribal 
law. Nothing in this part shall be construed as modifying the Federal 
Power Act (16 U.S.C. 791a et seq.) 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.
    ``(e) Allowances for Each Calendar Year.--
            ``(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:

``Calendar Year                          Emission Allowances (MtCO2e)
  2012.................................  4,627
  2013.................................  4,544
  2014.................................  5,053
  2015.................................  5,003
  2016.................................  5,482
  2017.................................  5,261
  2018.................................  5,132
  2019.................................  5,002
  2020.................................  4,873
  2021.................................  4,739
  2022.................................  4,605
  2023.................................  4,471
  2024.................................  4,337
  2025.................................  4,203
  2026.................................  4,069
  2027.................................  3,935
  2028.................................  3,801
  2029.................................  3,667
  2030.................................  3,533
  2031.................................  3,408
  2032.................................  3,283
  2033.................................  3,158
  2034.................................  3,033
  2035.................................  2,908
  2036.................................  2,784
  2037.................................  2,659
  2038.................................  2,534
  2039.................................  2,409
  2040.................................  2,284
  2041.................................  2,159
  2042.................................  2,034
  2043.................................  1,910
  2044.................................  1,785
  2045.................................  1,660
  2046.................................  1,535
  2047.................................  1,410
  2048.................................  1,285
  2049.................................  1,160
  2050 and each calendar year            1,035
   thereafter.
 

            ``(2) Revision.--
                    ``(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--
                            ``(i) United States greenhouse gas 
                        emissions in 2005 were other than 7,206 million 
                        metric tons carbon dioxide equivalent;
                            ``(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;
                            ``(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 75.6 percent of United 
                        States greenhouse gas emissions in 2005; or
                            ``(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.
                    ``(B) Adjustment formula.--
                            ``(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--
                                    ``(I) United States greenhouse gas 
                                emissions in 2005, expressed in tons of 
                                carbon dioxide equivalent;
                                    ``(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; and
                                    ``(III) the percentage set forth 
                                for that calendar year in section 
                                703(a), or determined under clause (ii) 
                                of this subparagraph.
                            ``(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.
                            ``(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.
                            ``(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.
                    ``(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.
    ``(f) Compensatory Allowance.--
            ``(1) In general.--The regulations promulgated under 
        subsection (h) shall provide for the establishment and 
        distribution of compensatory allowances for--
                    ``(A) the destruction, in 2012 or later, of 
                fluorinated gases that are greenhouse gases if--
                            ``(i) allowances or offset credits were 
                        retired for their production or importation; 
                        and
                            ``(ii) such gases are not required to be 
                        destroyed under any other provision of law;
                    ``(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; and
                    ``(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.
            ``(2) Establishment and distribution.--
                    ``(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.
                    ``(B) Source of allowances.--Compensatory 
                allowances established under this subsection shall not 
                be emission allowances established under subsection 
                (a).
                    ``(C) Identification numbers.--The Administrator 
                shall assign to each compensatory allowance established 
                under subparagraph (A) a unique identification number.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(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;
                    ``(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; and
                    ``(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.
            ``(4) Feedstock emissions study.--
                    ``(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.
                    ``(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 or their precursors 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 leakage.
    ``(g) Fluorinated Gases Assessment.--
            ``(1) In general.--Not later than March 31, 2014, the 
        Administrator shall conduct an assessment of the regulation of 
        non-hydrofluorocarbon fluorinated gases under this title to 
        determine whether the most appropriate point of regulation of 
        those gases is at--
                    ``(A) the gas manufacturer or importer level; or
                    ``(B) the downstream source of the emissions.
            ``(2) Modification of definition.--If the Administrator 
        determines, based on consideration of environmental 
        effectiveness, cost-effectiveness, administrative feasibility, 
        extent of coverage of emissions, and competitiveness 
        considerations, that emissions of non-hydrofluorocarbon 
        fluorinated gases can best be regulated by designating 
        downstream emission sources as covered entities with compliance 
        obligations under section 722, the Administrator shall--
                    ``(A) after providing notice and an opportunity for 
                comment, modify the definition of the term `covered 
                entity' with respect to fluorinated gases (other than 
                hydrofluorocarbons) accordingly; and
                    ``(B) establish such requirements as are necessary 
                to ensure compliance by the covered entities with the 
                requirements of this title.
    ``(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.

``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.
    ``(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:
            ``(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--
                    ``(A) petroleum-based or coal-based liquid fuel;
                    ``(B) natural gas liquid;
                    ``(C) renewable biomass or gas derived from 
                renewable biomass; or
                    ``(D) petroleum coke.
            ``(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.
            ``(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.
            ``(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.
            ``(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.
            ``(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--
                    ``(A) the combustion of petroleum-based or coal-
                based liquid fuel;
                    ``(B) the combustion of natural gas liquid;
                    ``(C) the combustion of renewable biomass or gas 
                derived from renewable biomass;
                    ``(D) the combustion of petroleum coke; or
                    ``(E) the use of any fluorinated gas that is a 
                greenhouse gas purchased for use at that covered 
                entity, except for nitrogen trifluoride.
            ``(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--
                    ``(A) petroleum-based or coal-based liquid fuel;
                    ``(B) natural gas liquid;
                    ``(C) renewable biomass or gas derived from 
                renewable biomass; or
                    ``(D) petroleum coke.
            ``(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.
            ``(9) R&D facilities.--
                    ``(A) In general.--For a qualified R&D facility 
                that emitted 25,000 tons per year or more carbon 
                dioxide equivalent in the previous calendar year, 1 
                emission allowance for each ton of carbon dioxide 
                equivalent of greenhouse gas that such facility emitted 
                in the previous calendar year.
                    ``(B) Treatment.--A qualified R&D facility shall be 
                treated as a separate covered entity solely for 
                purposes of applying the requirements of this 
                subsection.
            ``(10) 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 
        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.
            ``(11) 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 
        limits on emissions.
            ``(12) 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.
            ``(13) Natural gas liquids.--Notwithstanding subsection 
        (a), if the owner or operator of a covered entity described in 
        section 700(13)(B) that produces natural gas liquids does not 
        take ownership of the liquids, and is not responsible for the 
        distribution or use of the liquids in commerce, the owner of 
        the liquids shall be responsible for compliance with this 
        section, section 723, and other relevant sections of this title 
        with respect to such liquids. In the regulations promulgated 
        under section 721, the Administrator shall include such 
        provisions with respect to such liquids as the Administrator 
        determines are appropriate to determine and ensure compliance, 
        and to penalize noncompliance. In such a case, the owner of the 
        covered entity shall provide to the Administrator, in a manner 
        to be determined by the Administrator, information regarding 
        the quantity and ownership of liquids produced at the covered 
        entity.
            ``(14) 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.
    ``(c) Phase-in of Prohibition.--
            ``(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.
            ``(2) Small business refiners.--The prohibition under 
        subsection (a) shall first apply to a covered entity described 
        in section 700(13)(F)(viii) that is a small business refiner 
        with respect to emissions during calendar year 2015.
            ``(3) 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.
    ``(d) Additional Methods.--In addition to using the method of 
compliance described in subsection (b), a covered entity may do the 
following:
            ``(1) Offset credits.--
                    ``(A) Credits.--
                            ``(i) In general.--Covered entities 
                        collectively may, in accordance with this 
                        paragraph, use offset credits to demonstrate 
                        compliance for up to a maximum of 2,000,000,000 
                        tons of greenhouse gas emissions annually.
                            ``(ii) Demonstration of compliance.--In any 
                        calendar year, a covered entity may 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), up to a total number of 
                        offset credits described in subparagraph (B).
                    ``(B) Applicable percentage.--
                            ``(i) In general.--The total number of 
                        offset credits referred to in subparagraph 
                        (A)(ii) for a covered entity for a given 
                        calendar year shall be determined by--
                                    ``(I) dividing--
                                            ``(aa) the tons of carbon 
                                        dioxide equivalent of 
                                        greenhouse gas emissions of the 
                                        covered entity (except for the 
                                        types of emissions excluded 
                                        under subparagraphs (A) through 
                                        (D) of subsection (b)(1), 
                                        subparagraphs (A) through (E) 
                                        of subsection (b)(6), and 
                                        subparagraphs (A) through (D) 
                                        of subsection (b)(7)) and 
                                        attributable greenhouse gas 
                                        emissions for the year before 
                                        the preceding calendar year; by
                                            ``(bb) the sum of the tons 
                                        of carbon dioxide equivalent of 
                                        greenhouse gas emissions of all 
                                        covered entities (except for 
                                        the types of emissions excluded 
                                        under subparagraphs (A) through 
                                        (D) of subsection (b)(1), 
                                        subparagraphs (A) through (E) 
                                        of subsection (b)(6), and 
                                        subparagraphs (A) through (D) 
                                        of subsection (b)(7)) and 
                                        attributable greenhouse gas 
                                        emissions for the year before 
                                        the preceding calendar year; 
                                        and
                                    ``(II) multiplying the quotient 
                                obtained under subclause (I) by 
                                2,000,000,000.
                            ``(ii) Applicability.--Clause (i) shall 
                        apply to a covered entity (including a covered 
                        entity that commenced operation during the 
                        preceding calendar year) even if the covered 
                        entity had no greenhouse gas emissions or 
                        attributable greenhouse gas emissions described 
                        in that clause.
                            ``(iii) Offset credits.--Not more than \3/
                        4\ of the applicable percentage under this 
                        paragraph may be used by holding domestic 
                        offset credits, and not more than \1/4\ of the 
                        applicable percentage under this paragraph may 
                        be used by holding international offset 
                        credits, except as provided in subparagraph 
                        (C).
                    ``(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 
                allowance prices, are likely to offset less than 
                900,000,000 tons of greenhouse gas emissions (measured 
                in tons of carbon dioxide equivalents), the 
                Administrator shall increase the percent of emissions 
                that can be offset through the use of international 
                offset credits (and decrease the percent of emissions 
                that can be allowed through the use of domestic offset 
                credits by the same amount) to reflect the amount that 
                1,500,000,000 exceeds the number of domestic offset 
                credits the Administrator determines is available for 
                that year, up to a maximum of 750,000,000 tons of 
                greenhouse gas emissions.
                    ``(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.
                    ``(E) President's recommendation.--The President 
                may make a recommendation to Congress as to whether the 
                number 2,000,000,000 specified in subparagraphs (A) and 
                (B) should be increased or decreased.
            ``(2) Term offset credits.--
                    ``(A) In general.--Covered entities may, in 
                accordance with this paragraph, use non-expired term 
                offset credits instead of domestic offset credits for 
                purposes of temporarily demonstrating compliance with 
                this section.
                    ``(B) Amount.--The combined quantity of term offset 
                credits and domestic offset credits used by a covered 
                entity to demonstrate compliance for its emissions or 
                attributable greenhouse gas emissions in any given year 
                shall not exceed the quantity of domestic offset 
                credits that a covered entity is entitled to use for 
                that year to demonstrate compliance in accordance with 
                paragraph (1).
                    ``(C) Expiration.--A term offset credit shall 
                expire in the year after its term ends. The term of a 
                term offset credit shall be calculated by adding to the 
                year of issuance the number of years equal to the 
                length of the crediting period for the practice or 
                project for which the term offset credit was issued, 
                but in no case shall be later than the date 5 years 
                from the date of issuance.
                    ``(D) Demonstrating compliance upon expiration of 
                term offset credit.--With respect to the emissions for 
                which a covered entity is using term offset credits to 
                demonstrate compliance temporarily with 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 the calendar year in which a term 
                offset credit expires, the owner or operator holds--
                            ``(i) for purposes of finally demonstrating 
                        compliance, an allowance or a domestic offset 
                        credit; or
                            ``(ii) for purposes of temporarily 
                        demonstrating compliance, a non-expired term 
                        offset credit.
                    ``(E) Inapplicability of percentage limitations.--
                Domestic offset credits used for purposes of finally 
                demonstrating compliance under this subparagraph shall 
                not be subject to the percentage limitations in 
                subparagraph (B).
                    ``(F) Financial assurance.--A covered entity may 
                not use a term offset credit to demonstrate compliance 
                temporarily unless it simultaneously provides to the 
                Administrator financial assurance that, at the end of 
                the term offset credit`s crediting term, the covered 
                entity will have sufficient resources to obtain the 
                quantity of allowances or credits necessary to 
                demonstrate final compliance. The Administrator shall 
                issue regulations establishing requirements for such 
                financial assurance, which shall take into account the 
                increased risk associated with longer crediting terms. 
                These regulations shall take into account the total 
                number of tons of carbon dioxide equivalent of 
                greenhouse gas emissions for which a covered entity is 
                demonstrating compliance temporarily, and may set a 
                limit on this amount. In the event that a covered 
                entity that used term offset credits to demonstrate 
                compliance temporarily fails to meet the requirements 
                of subparagraph (D) at the end of the term offset 
                credits' crediting term, if the financial assurance 
                mechanism fails to provide to the Administrator the 
                number of allowances or offset credits for which the 
                crediting term has expired, then the Administrator 
                shall retire that number of allowances with the vintage 
                year 2 years after the year in which the term offset 
                credit expires in the same amount. Allowances so 
                retired shall not be counted as emission allowances 
                established for that calendar year under section 
                721(a).
            ``(3) 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).
            ``(4) Compensatory allowances.--To demonstrate compliance, 
        a covered entity may hold a compensatory allowance obtained 
        under section 721(f) in lieu of an emission allowance.
    ``(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.
    ``(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.
    ``(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 thresholds 
that are used to define covered entities. After consideration of--
            ``(1) emissions from covered entities in each 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); and
            ``(2) whether greater greenhouse gas emission reductions 
        can be cost-effectively achieved by lowering the applicable 
        threshold,
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.
    ``(h) Designated Representatives.--The regulations promulgated 
under section 721(h) shall require that each covered entity, and each 
entity holding allowances or credits or receiving allowances or credits 
from the Administrator under this title, select a designated 
representative.
    ``(i) Education and Outreach.--
            ``(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.
            ``(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.
    ``(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.
    ``(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.
    ``(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.

``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(b) shall be a separate violation. In the 
event that a covered entity fails to demonstrate compliance at the 
expiration of a term of offset credits crediting term as required by 
section 722(d)(2)(D), the year of the violation shall be the year in 
which the term offset credit expires.
    ``(b) Excess Emissions Penalty.--
            ``(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).
            ``(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--
                    ``(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 comply under section 722(b) on the 
                deadline; by
                    ``(B) twice the fair market value of emission 
                allowances established for emissions occurring in the 
                calendar year for which the emission allowances were 
                due.
            ``(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.
            ``(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.
    ``(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 actual or attributable emissions.

``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.
    ``(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.
    ``(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).
    ``(d) Allowance Tracking System.--The regulations promulgated under 
section 721(h) shall include a system for issuing, recording, holding, 
and tracking allowances, offset credits, and term 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.

``SEC. 725. BANKING AND BORROWING.

    ``(a) Banking.--An emission allowance may be used to comply with 
section 722 or 723 for emissions in--
            ``(1) the vintage year for the allowance; or
            ``(2) any calendar year subsequent to the vintage year for 
        the allowance.
    ``(b) Expiration.--
            ``(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, credit, or term 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, credits, or term offset credits or the 
        allowance tracking system.
            ``(2) General rule.--An allowance, credit, or term offset 
        credit established or issued by the Administrator under this 
        title shall not expire unless--
                    ``(A) it is retired by the Administrator as 
                required under this title; or
                    ``(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).
            ``(3) International emission allowances.--The ability to 
        use an international emission allowance to comply with section 
        722 shall not expire unless--
                    ``(A) the allowance is retired by the Administrator 
                as required by this title; or
                    ``(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).
    ``(c) Borrowing Future Vintage Year Allowances.--
            ``(1) Borrowing without interest.--In addition to the uses 
        described in subsection (a), an emission allowance may be used 
        to comply with section 722(a) or 723 for emissions, production, 
        importation, manufacture, or deliveries in the calendar year 
        immediately preceding the vintage year for the allowance.
            ``(2) Borrowing with interest.--
                    ``(A) In general.--A covered entity may demonstrate 
                compliance under subsection (b) 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.
                    ``(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.
                    ``(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 a quantity of 
                emission allowances that is equal to the product 
                obtained by multiplying--
                            ``(i) 0.08; by
                            ``(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.

``SEC. 726. MARKET STABILITY RESERVE.

    ``(a) Market Stability Reserve Auctions.--
            ``(1) In general.--Once each quarter of each calendar year 
        for which allowances are established under section 721(a), the 
        Administrator shall auction market stability reserve 
        allowances.
            ``(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.
    ``(b) Pool of Emission Allowances for Market Stability Reserve 
Auctions.--
            ``(1) Filling the market stability reserve initially.--The 
        Administrator shall, not later than 2 years after the date of 
        enactment of this title, establish a market stability reserve 
        account, and shall place in that account a quantity of emission 
        allowances established under section 771(d)(9).
            ``(2) Supplementing the market stability reserve.--The 
        Administrator shall also--
                    ``(A) at the end of each calendar year, transfer to 
                the market stability reserve account each emission 
                allowance that was offered for sale but not sold at any 
                auction conducted under section 778; and
                    ``(B) transfer emission allowances established 
                under subsection (g) from auction proceeds, and deposit 
                them into the market stability reserve, to the extent 
                necessary to maintain the reserve at its original size.
    ``(c) Minimum Market Stability Reserve Auction Price.--
            ``(1) In general.--At each market stability 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 market stability reserve auction 
        price'.
            ``(2) Initial minimum market stability reserve auction 
        prices.--The minimum market stability reserve auction price 
        shall be $28 (in constant 2005 dollars) for the market 
        stability reserve auctions held in 2012. For the market 
        stability reserve auctions held in 2013 through 2017, the 
        minimum market stability reserve auction price shall be the 
        market stability 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).
            ``(3) Minimum market stability reserve auction price in 
        subsequent years.--For each market stability reserve auction 
        held in 2018 and each year thereafter, the minimum market 
        stability reserve auction price shall be the market stability 
        reserve auction price for the previous year increased by 7 
        percent, plus the rate of inflation (as measured by the 
        Consumer Price Index for All Urban Consumers).
    ``(d) Quantity of Emission Allowances Released From the Market 
Stability Reserve.--
            ``(1) Initial limits.--Subject to paragraph (4), for each 
        of calendar years 2012 through 2016, the annual limit on the 
        number of emission allowances from the market stability reserve 
        account that may be auctioned is an amount equal to 15 percent 
        of the emission allowances established for that calendar year 
        under section 721(a). This limit does not apply to offset 
        credits sold on consignment pursuant to subsection (h).
            ``(2) Limits in subsequent years.--Subject to paragraph 
        (4), for calendar year 2017 and each year thereafter, the 
        annual limit on the number of emission allowances from the 
        market stability reserve account that may be auctioned is an 
        amount equal to 25 percent of the emission allowances 
        established for that calendar year under section 721(a). This 
        limit does not apply to offset credits sold on consignment 
        pursuant to subsection (h).
            ``(3) Allocation of limitation.--One-fourth of each year's 
        annual market stability reserve auction limit under this 
        subsection shall be made available for auction in each quarter. 
        Any allowances from the market stability 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 market stability reserve account.
            ``(4) Authority to adjust limitation.--The Administrator 
        may adjust the limits in paragraphs (1) or (2) if the 
        Administrator determines an adjustment is required to prevent 
        disruptively high prices or to preserve the integrity of the 
        market stability reserve.
    ``(e) Purchase Limit.--
            ``(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 market stability reserve auctions in 
        each calendar year shall not exceed 20 percent of the covered 
        entity's emissions during the most recent year for which 
        allowances or credits were retired under section 722.
            ``(2) 2012 limit.--For calendar year 2012, the maximum 
        aggregate number of emission allowances that a covered entity 
        may purchase from that year's market stability reserve auctions 
        shall be 20 percent of the covered entity's 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.
            ``(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 market stability reserve auctions in their first calendar 
        year of operation in an amount of at least 20 percent of their 
        expected combined emissions and attributable greenhouse gas 
        emissions for that year.
    ``(f) Delegation or Contract.--Pursuant to regulations under this 
section, the Administrator may, by delegation or contract, provide for 
the conduct of market stability reserve auctions under the 
Administrator's supervision by other departments or agencies of the 
Federal Government or by nongovernmental agencies, groups, or 
organizations.
    ``(g) Use of Auction Proceeds.--
            ``(1) Deposit in market stability reserve fund.--The 
        proceeds from market stability reserve auctions shall be placed 
        in the Market Stability Reserve Fund established by subsection 
        (j), and shall be available without further appropriation or 
        fiscal year limitation for the purposes described in this 
        subsection.
            ``(2) Offset credits.--The Administrator shall use the 
        proceeds from each market stability reserve auction to purchase 
        offset credits, including domestic offset credits and 
        international offset credits issued pursuant to section 744. 
        The Administrator shall retire those offset credits and 
        establish a number of emission allowances equal to 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).
            ``(3) Emission allowances.--The Administrator shall deposit 
        emission allowances established under paragraph (2) in the 
        market stability reserve, except that, with respect to any such 
        emission allowances in excess of the amount necessary to fill 
        the market stability reserve to its original size, the 
        Administrator shall--
                    ``(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; and
                    ``(B) to the extent any such allowances cannot be 
                assigned a vintage year because of the limitation in 
                paragraph (4), retire the allowances.
            ``(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 market stability reserve account 
        under subsection (b)(1).
    ``(h) Availability of Offset Credits for Auction.--
            ``(1) In general.--The regulations promulgated under 
        section 721(h) shall allow any entity holding offset credits to 
        request that the Administrator include such offset credits in 
        an upcoming market stability reserve auction. The regulations 
        shall provide that--
                    ``(A) upon sale of such offset credits, the 
                Administrator shall retire those offset credits, and 
                establish and provide to the purchasers a number of 
                emission allowances equal to the number of offset 
                credits so retired, which allowances shall be in 
                addition to those established under section 721(a); and
                    ``(B) for offset credits sold pursuant to this 
                subsection, the proceeds for the entity that offered 
                the offset credits for sale shall be the lesser of--
                            ``(i) the average daily closing price for 
                        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 market stability 
                        reserve auction at which they were auctioned, 
                        with the remaining funds collected upon the 
                        sale of the offset credits deposited in the 
                        Treasury; and
                            ``(ii) the amount received for the offset 
                        credits at the auction.
            ``(2) Proceeds.--For 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 offset credits for sale. No funds transferred from 
        a purchaser to a seller of 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.
            ``(3) Pricing.--When the Administrator acts under this 
        subsection as the agent of an entity in possession of offset 
        credits, the Administrator is not obligated to obtain the 
        highest price possible for the offset credits, and instead 
        shall auction such offset credits in the same manner and 
        pursuant to the same rules (except as modified in paragraph 
        (1)) as set forth for auctioning market stability reserve 
        allowances. Entities requesting that such offset credits be 
        offered for sale at a market stability reserve auction may not 
        set a minimum reserve price for their offset credits that is 
        different than the minimum market stability reserve auction 
        price set pursuant to subsection (c).
    ``(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:
            ``(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.
            ``(2) Auction format.--Auctions shall follow a single-
        round, sealed-bid, uniform price format.
            ``(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.
            ``(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.
            ``(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.
            ``(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.
            ``(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.
    ``(j) Market Stability Reserve Fund.--There are established in the 
Treasury of the United States a fund to be known as the `Market 
Stability Reserve Fund'.
    ``(k) 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.

``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 
with an approved permit program, shall require the owner or operator of 
a covered entity to hold emission 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 emission 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 emission allowances shall amend 
automatically all applicable proposed or approved permit applications, 
compliance plans, and permits.
    ``(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--
            ``(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; or
            ``(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.
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.
    ``(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 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).
    ``(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 
emission allowances, compensatory allowances, international emission 
allowances, or offset allowances, except that any such covered entity 
may be subject to the applicable enforcement provision of section 113.
    ``(e) Regulations.--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 and that 
are covered entities are located shall submit, in accordance with this 
section and title V, revised permit programs for approval.

``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--
            ``(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; and
            ``(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.
    ``(b) Disqualified Allowances.--An international emission allowance 
may not be held under section 722(d)(3) 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).
    ``(c) Retirement.--
            ``(1) Entity certification.--The owner or operator of an 
        entity that holds an international emission allowance under 
        section 722(d)(3) 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.
            ``(2) Retirement.--
                    ``(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--
                            ``(i) are notified of the use, for purposes 
                        of compliance with this title, of any 
                        international emission allowance; and
                            ``(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.
                    ``(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.
    ``(d) Use Limitations.--The Administrator may, by rule, modify the 
percentage applicable to international emission allowances under 
section 722(d)(3), consistent with the purposes of the Clean Energy 
Jobs and American Power Act.

                           ``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 President shall establish an independent 
Offsets Integrity Advisory Board. The Advisory Board shall make 
recommendations to the President for use in promulgating and revising 
regulations under this part, and for ensuring the overall environmental 
integrity of the programs established pursuant to those regulations.
    ``(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 
President 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.
    ``(c) Activities.--The Advisory Board established pursuant to 
subsection (a) shall--
            ``(1) provide recommendations, not later than 90 days after 
        the Advisory Board's establishment and periodically thereafter, 
        to the President regarding offset project types that should be 
        considered for eligibility under section 733, taking into 
        consideration relevant scientific and other issues, including--
                    ``(A) the availability of a representative data set 
                for use in developing the activity baseline;
                    ``(B) the potential for accurate quantification of 
                greenhouse gas reduction, avoidance, or sequestration 
                for an offset project type;
                    ``(C) the potential level of scientific and 
                measurement uncertainty associated with an offset 
                project type;
                    ``(D) any beneficial or adverse environmental, 
                public health, welfare, social, economic, or energy 
                effects associated with an offset project type;
                    ``(E) the extent to which, as of the date of 
                submission of the report, the project or activity types 
                within each category--
                            ``(i) are required by law (including a 
                        regulation); or
                            ``(ii) represent business-as-usual (absent 
                        funding from offset credits) practices for a 
                        relevant land area, industry sector, or forest, 
                        soil or facility type;
            ``(2) make available to the President its advice and 
        comments on offset methodologies that should be considered 
        under regulations promulgated pursuant to subsection (a) and 
        (b) of section 734, including methodologies to address the 
        issues of additionality, activity baselines, measurement, 
        leakage, uncertainty, permanence, and environmental integrity;
            ``(3) make available to the President, 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 744;
            ``(4) make available to the President, and other relevant 
        Federal agencies, its advice and comments regarding scientific, 
        technical, and methodological issues associated with the 
        implementation of this part;
            ``(5) make available to the President 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 describe the 
        research efforts necessary to provide the required information; 
        and
            ``(6) make available to the President its advice and 
        comments on other ways to improve or safeguard the 
        environmental integrity of programs established under this 
        part.
    ``(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 President and make 
available to the public an analysis of relevant scientific and 
technical information related to this part. 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 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 President 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.

``SEC. 732. ESTABLISHMENT OF OFFSETS PROGRAM.

    ``(a) Regulations.--Not later than 2 years after the date of 
enactment of this title, the President, 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 President shall periodically 
revise these regulations as necessary to meet the requirements of this 
part.
    ``(b) Requirements.--The regulations described in subsection (a) 
shall--
            ``(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;
            ``(2) ensure that such offset credits represent verifiable 
        and additional greenhouse gas emission reductions or avoidance, 
        or increases in sequestration;
            ``(3) ensure that offset credits issued for sequestration 
        offset projects are only issued for greenhouse gas reductions 
        that are permanent;
            ``(4) provide for the implementation of the requirements of 
        this part;
            ``(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 President 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; and
            ``(6) establish a process to accept and respond to comments 
        from third parties regarding programs established under this 
        part in a timely manner.
    ``(c) Coordination to Minimize Negative Effects.--In promulgating 
and implementing regulations under this part, the President 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.
    ``(d) Offset Registry.--The President 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.
    ``(e) Legal Status of Offset Credit.--An offset credit does not 
constitute a property right.
    ``(f) Fees.--The President shall assess fees payable by offset 
project developers in an amount necessary to cover the administrative 
costs and the enforcement costs to the Environmental Protection Agency 
and the Department of Justice of carrying out the activities under this 
part. Amounts collected for such fees shall be available to the 
President and the Attorney General for carrying out the activities 
under this part to the extent provided in advance in appropriations 
Acts.
    ``(g) Secretary of Agriculture.--The President shall designate the 
Secretary of Agriculture to serve as the lead agency in--
            ``(1) the implementation of elements of the offset program, 
        in coordination with the Administrator, for agriculture and 
        forestry projects in the United States authorized under this 
        part, including project types and methodologies; and
            ``(2) working directly with farmers, ranchers, and 
        foresters to implement agriculture and forestry projects.

``SEC. 733. ELIGIBLE PROJECT TYPES.

    ``(a) List of Eligible Project Types.--
            ``(1) In general.--As part of the regulations promulgated 
        under section 732(a), the President shall establish, and may 
        periodically revise, a list of types of projects eligible to 
        generate offset credits, including international offset 
        credits, under this part.
            ``(2) Advisory board recommendations.--In determining the 
        eligibility of project types, the President 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.
            ``(3) Initial determination.--The President shall establish 
        the initial eligibility list under paragraph (1) not later than 
        one year after the date of enactment of this title for which 
        there are well developed methodologies that the President 
        determines would meet the criteria of section 734.
            ``(4) Project types to be considered for initial list.--In 
        determining the initial list, the President shall give priority 
        to consideration of offset project types that are recommended 
        by the Advisory Board, and shall consider--
                    ``(A) methane collection and combustion projects at 
                active coal mines;
                    ``(B) methane collection and combustion projects at 
                landfills;
                    ``(C) capture of venting, flaring, and fugitive 
                emissions from oil and natural gas systems;
                    ``(D) nonlandfill methane collection, combustion 
                and avoidance projects involving organic waste streams 
                that would have otherwise emitted methane in the 
                atmosphere, including manure management and biogas 
                capture and combustion;
                    ``(E) projects involving afforestation or 
                reforestation of acreage not forested as of January 1, 
                2009;
                    ``(F) forest management resulting in an increase in 
                forest carbon stores, including harvested wood 
                products;
                    ``(G) agricultural, grassland, and rangeland 
                sequestration and management practices, including--
                            ``(i) altered tillage practices, including 
                        avoided abandonment of such practices;
                            ``(ii) winter cover cropping, continuous 
                        cropping, and other means to increase biomass 
                        returned to soil in lieu of planting followed 
                        by fallowing;
                            ``(iii) reduction of nitrogen fertilizer 
                        use or increase in nitrogen use efficiency;
                            ``(iv) reduction in the frequency and 
                        duration of flooding of rice paddies;
                            ``(v) reduction in carbon emissions from 
                        organic soils;
                            ``(vi) reduction in greenhouse gas 
                        emissions from manure and effluent;
                            ``(vii) reduction in greenhouse gas 
                        emissions due to changes in animal management 
                        practices, including dietary modifications;
                            ``(viii) planting and cultivation of 
                        permanent tree crops;
                            ``(ix) greenhouse gas emission reductions 
                        from improvements and upgrades to mobile or 
                        stationary equipment (including engines);
                            ``(x) practices to reduce and eliminate 
                        soil tillage;
                            ``(xi) reductions in greenhouse gas 
                        emissions through restoration of wetlands, 
                        forestland, and grassland; and
                            ``(xii) sequestration of greenhouse gases 
                        through management of tree crops; and
                    ``(H) changes in carbon stocks attributed to land 
                use change and forestry activities, including--
                            ``(i) management of peatland or wetland;
                            ``(ii) conservation of grassland and 
                        forested land;
                            ``(iii) improved forest management, 
                        including accounting for carbon stored in wood 
                        products;
                            ``(iv) reduced deforestation or avoided 
                        forest conversion;
                            ``(v) urban tree-planting and maintenance;
                            ``(vi) agroforestry; and
                            ``(vii) adaptation of plant traits or new 
                        technologies that increase sequestration by 
                        forests.
            ``(5) Methodologies.--In issuing methodologies pursuant to 
        section 734, the President shall give priority to methodologies 
        for offset types included on the initial eligibility list.
    ``(b) Modification of List.--The President--
            ``(1) shall add additional project types to the list not 
        later than 2 years after the date of enactment of this title;
            ``(2) may at any time, by rule, add a project type to the 
        list established under subsection (a) if the President, 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;
            ``(3) may at any time, by rule, determine that a project 
        type on the list does not meet the requirements of this part, 
        and remove a 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; and
            ``(4) shall consider adding to or removing from the list 
        established under subsection (a), at a minimum, project types 
        proposed to the President--
                    ``(A) by petition pursuant to subsection (c); or
                    ``(B) by the Advisory Board.
    ``(c) Petition Process.--Any person may petition the President 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 President shall either grant or deny the petition and 
publish a written explanation of the reasons for the President's 
decision. The President may not deny a petition under this subsection 
on the basis of inadequate agency resources or time for review.

``SEC. 734. REQUIREMENTS FOR OFFSET PROJECTS.

    ``(a) Methodologies.--As part of the regulations promulgated under 
section 732(a), the President shall establish, for each type of offset 
project listed as eligible under section 733, the following:
            ``(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--
                    ``(A) are not required by or undertaken to comply 
                with any law, including any regulation or consent 
                order;
                    ``(B) were not commenced prior to January 1, 2009, 
                except in the case of--
                            ``(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 President has made an affirmative 
                        determination under section 740(a)(2); or
                            ``(ii) activities that are readily 
                        reversible, with respect to which the President 
                        may set an alternative earlier date under this 
                        subparagraph that is not earlier than January 
                        1, 2001, where the President 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;
                    ``(C) are not receiving support under section 323 
                of division A, or section 206 of division B, of the 
                Clean Energy Jobs and American Power Act; and
                    ``(D) exceed the activity baseline established 
                under paragraph (2).
            ``(2) Activity baselines.--A standardized methodology for 
        establishing activity baselines for offset projects of that 
        type. The President 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.
            ``(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.
            ``(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.
    ``(b) Accounting for Reversals.--
            ``(1) Accounting.--
                    ``(A) In general.--After issuance of offset credits 
                for a project, pursuant to section 733, the offset 
                project developer shall, in a timely manner, report any 
                reversal that occurs.
                    ``(B) Intentional reversals.--An offset project 
                developer shall not engage in repeated intentional 
                reversals.
            ``(2) Regulations.--As part of the regulations promulgated 
        under section 732(a), for each type of sequestration project 
        listed under section 733, the President shall establish 
        requirements to account for and address reversals, including--
                    ``(A) a requirement to report any reversal with 
                respect to an offset project for which offset credits 
                have been issued under this part;
                    ``(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;
                    ``(C) provisions to discourage repeated intentional 
                reversals by offset project developers, including but 
                not limited to the assessment of administrative fees, 
                temporary suspension, or disqualification of an offset 
                project developer from the program; and
                    ``(D) any other provisions the President determines 
                necessary to account for and address reversals.
            ``(3) Mechanisms.--The President 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 President shall prescribe at 
        least one of the following mechanisms to meet the requirements 
        of this paragraph:
                    ``(A) An offsets reserve, pursuant to paragraph 
                (4).
                    ``(B) Insurance that provides for purchase and 
                provision to the President 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.
                    ``(C) Another mechanism that the President 
                determines satisfies the requirements of this part.
            ``(4) Offsets reserve.--
                    ``(A) In general.--An offsets reserve referred to 
                in paragraph (3)(A) is a program under which, before 
                issuance of offset credits under this part, the 
                President shall subtract and reserve from the quantity 
                to be issued a quantity of offset credits based on the 
                risk of reversal. The President shall--
                            ``(i) hold these reserved offset credits in 
                        the offsets reserve; and
                            ``(ii) register the holding of the reserved 
                        offset credits in the Offset Registry 
                        established under section 732(d).
                    ``(B) Project reversal.--
                            ``(i) In general.--If a reversal has 
                        occurred with respect an offset project for 
                        which offset credits are reserved under this 
                        paragraph, the President shall remove offset 
                        credits or emission allowances from the offsets 
                        reserve and cancel them to fully account for 
                        the tons of carbon dioxide equivalent that are 
                        no longer sequestered.
                            ``(ii) Intentional reversals.--If the 
                        President 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).
                            ``(iii) Unintentional reversals.--If the 
                        President 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.
                            ``(iv) Petition.--Any person may petition 
                        the President for a determination that an 
                        offsets reversal has occurred. Any such 
                        petition shall include a showing by the 
                        petitioner that there is adequate data or other 
                        evidence to support the petition. Not later 
                        than 90 days after the date of receipt of the 
                        petition, the President shall take final action 
                        determining either that the reversal has 
                        occurred or that the reversal has not occurred. 
                        Such determination shall be accompanied by a 
                        statement of the basis for the determination.
                    ``(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.
            ``(5) Term offset credits.--
                    ``(A) Applicability.--With respect to a practice 
                listed under section 733 that sequesters greenhouse 
                gases and has a crediting period of not more than 5 
                years, the President may address reversals pursuant to 
                this paragraph in lieu of permanently accounting for 
                reversals pursuant to paragraphs (2) and (3).
                    ``(B) Accounting for reversals.--For such practices 
                or projects implementing the practices described in 
                subparagraph (A), the President shall require only 
                reversals that occur during the crediting period to be 
                accounted for and addressed pursuant to paragraphs (2) 
                and (3).
                    ``(C) Credits issued.--For practices or projects 
                regulated pursuant to subparagraph (B), the President 
                shall issue under section 737 a term offset credit, in 
                lieu of an offset credit, for each ton of carbon 
                dioxide equivalent that has been sequestered.
    ``(c) Crediting Periods.--
            ``(1) In general.--As part of the regulations promulgated 
        under section 732(a), for each offset project type, the 
        President shall specify a crediting period, and establish 
        provisions for petitions for new crediting periods, in 
        accordance with this subsection.
            ``(2) Duration.--
                    ``(A) In general.--The crediting period shall be 
                not less than 5 and not greater than 10 years for any 
                project type other than those involving sequestration 
                or term offsets.
                    ``(B) Forestry projects.--The crediting period for 
                a forestry offset project shall not exceed 20 years.
                    ``(C) Term offset credits.--The crediting period 
                for a term offset credit issued shall not exceed 5 
                years.
            ``(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).
            ``(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 President may grant 
        such petition after public notice and opportunity for comment. 
        The President may limit the number of new crediting periods 
        available for projects of particular project types.
    ``(d) Environmental Integrity.--In establishing the requirements 
under this section, the President shall apply conservative assumptions 
or methods to maximize the certainty that the environmental integrity 
of the greenhouse gas limitations established under section 703 is not 
compromised.
    ``(e) Pre-existing Methodologies.--In promulgating requirements 
under this section, the President shall give due consideration to 
methodologies for offset projects existing as of the date of enactment 
of this title.
    ``(f) Added Project Types.--The President 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.

``SEC. 735. APPROVAL OF OFFSET PROJECTS.

    ``(a) Approval Petition.--An offset project developer shall submit 
an offset project approval petition signed by a responsible official 
(who shall certify the accuracy of the information submitted) and 
providing such information as the President requires to determine 
whether the offset project is eligible for issuance of offset credits 
under rules promulgated pursuant to this part.
    ``(b) Timing.--An approval petition shall be submitted to the 
President under subsection (a) not later than the time at which an 
offset project's first verification report is submitted under section 
736.
    ``(c) Approval Petition Requirements.--As part of the regulations 
promulgated under section 732, the President shall include provisions 
for, and shall specify, the required components of an offset project 
approval petition required under subsection (a), which shall include--
            ``(1) designation of an offset project developer;
            ``(2) designation of a party who is authorized to provide 
        access to the appropriate officials or an authorized 
        representative to the offset project; and
            ``(3) any other information that the President considers to 
        be necessary to achieve the purposes of this part.
    ``(d) Approval and Notification.--Not later than 90 days after 
receiving a complete approval petition under subsection (a), the 
President shall make the approval petition publicly available on the 
internet, approve or deny the petition in writing, and, if the petition 
is denied, provide the reasons for the denial and make the President's 
decision publicly available on the internet. 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).
    ``(e) Appeal.--The President shall establish procedures for appeal 
and review of determinations made under subsection (d).
    ``(f) Voluntary Preapproval Review.--The President may establish a 
voluntary preapproval review procedure, to allow an offset project 
developer to request the President to conduct a preliminary eligibility 
review for an offset project. Findings of such reviews shall not be 
binding upon the President. The voluntary preapproval review 
procedure--
            ``(1) shall require the offset project developer to submit 
        such basic project information as the President requires to 
        provide a meaningful review; and
            ``(2) shall require a response from the President not later 
        than 6 weeks after receiving a request for review under this 
        subsection.

``SEC. 736. VERIFICATION OF OFFSET PROJECTS.

    ``(a) In General.--As part of the regulations promulgated under 
section 732(a), the President 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 President requires to determine the quantity of 
greenhouse gas emission reductions or avoidance, or sequestration of 
greenhouse gas, resulting from the offset project.
    ``(b) Schedule.--The President shall prescribe a schedule for the 
submission of verification reports under subsection (a).
    ``(c) Verification Report Requirements.--The President shall 
specify the required components of a verification report required under 
subsection (a), which shall include--
            ``(1) the name and contact information for a designated 
        representative for the offset project developer;
            ``(2) the quantity of greenhouse gas reduced, avoided, or 
        sequestered;
            ``(3) the methodologies applicable to the project pursuant 
        to section 734;
            ``(4) a certification that the project meets the applicable 
        requirements;
            ``(5) a certification establishing that the conflict of 
        interest requirements in the regulations promulgated under 
        subsection (d)(1) have been complied with; and
            ``(6) any other information that the President considers to 
        be necessary to achieve the purposes of this part.
    ``(d) Verifier Accreditation.--
            ``(1) In general.--As part of the regulations promulgated 
        under section 732(a), the President 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 with offset project 
        developers.
            ``(2) Standards.--
                    ``(A) American national standards institute 
                accreditation.--The President 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 President shall 
                accredit, or accept for accreditation, verifiers under 
                this subparagraph only if the President finds that the 
                American National Standards Institute accreditation 
                program provides sufficient assurance that the 
                requirements of this part will be met.
                    ``(B) EPA accreditation.--As part of the 
                regulations promulgated under section 732(a), the 
                President may establish accreditation standards for 
                verifiers under this subsection, and may establish 
                related training and testing programs and requirements.
            ``(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 President.
            ``(4) Revocation.--The regulations concerning accreditation 
        of third-party verifiers required under paragraph (1) shall 
        establish a process for the President to revoke the 
        accreditation of any third-party verifier that the President 
        finds fails to maintain professional qualifications or to avoid 
        a conflict of interest, or for other good cause.

``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 
President shall--
            ``(1) make the report publicly available on the Internet;
            ``(2) make a determination of the quantity of greenhouse 
        gas emissions reduced or avoided, or greenhouse gases 
        sequestered, resulting from an offset project approved under 
        section 735; and
            ``(3) notify the offset project developer in writing of 
        such determination and make such determination publicly 
        available on the Internet.
    ``(b) Issuance of Offset Credits.--The President shall issue one 
offset credit to an offset project developer for each ton of carbon 
dioxide equivalent that the President has determined has been reduced, 
avoided, or sequestered during the period covered by a verification 
report submitted in accordance with section 736, only if--
            ``(1) the President has approved the offset project 
        pursuant to section 735; and
            ``(2) the relevant emissions reduction, avoidance, or 
        sequestration has--
                    ``(A) already occurred, during the offset project's 
                crediting period; and
                    ``(B) occurred after January 1, 2009.
    ``(c) Appeal.--The President shall establish procedures for appeal 
and review of determinations made under subsection (a).
    ``(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 President under subsection (a).
    ``(e) Registration.--The President shall assign a unique serial 
number to and register each offset credit to be issued in the Offset 
Registry established under section 732(d).

``SEC. 738. AUDITS.

    ``(a) In General.--The President shall, on an ongoing basis, 
conduct random audits of offset projects and offset credits. The 
President shall conduct audits of the practices of third-party 
verifiers. In each year, the President shall conduct audits, at 
minimum, for a representative sample of project types and geographic 
areas.
    ``(b) Delegation.--The President may delegate to a State or Indian 
tribe the responsibility for conducting audits under this section if 
the President finds that the program proposed by the State or Indian 
tribe provides assurances equivalent to those provided by the auditing 
program of the President, and that the integrity of the offset program 
under this part will be maintained. Nothing in this subsection shall 
prevent the President from conducting any audit the President considers 
necessary and appropriate.
    ``(c) Audit Requirements.--As part of the regulations promulgated 
under section 732(a), the President shall establish requirements and 
protocols for an auditing program, whether undertaken by the President 
or an authorized representative, concerning project developers, third 
party verifiers, and reports submitted by those persons, including the 
offset project approval petition and verification report. Such 
regulations shall include--
            ``(1) the components of the offset project, which shall be 
        evaluated against the offset approval petition and the 
        verification report;
            ``(2) the minimum experience or training of the auditors;
            ``(3) the form in which reports shall be completed;
            ``(4) requirements for delegating auditing functions to 
        States or Indian tribes, including requiring periodic reports 
        from States or Indian tribes on their auditing activities and 
        findings; and
            ``(5) any other information that the appropriate officials 
        considers to be necessary to achieve the purpose of the Act.

``SEC. 739. PROGRAM REVIEW AND REVISION.

    ``At least once every 5 years, the President shall review and, 
based on new or updated information and taking into consideration the 
recommendations of the Advisory Board, update and revise--
            ``(1) the list of eligible project types established under 
        section 733;
            ``(2) the methodologies established, including specific 
        activity baselines, under section 734(a);
            ``(3) the reversal requirements and mechanisms established 
        or prescribed under section 734(b);
            ``(4) measures to improve the accountability of the offsets 
        program; and
            ``(5) any other requirements established under this part to 
        ensure the environmental integrity and effective operation of 
        this part.

``SEC. 740. EARLY OFFSET SUPPLY.

    ``(a) Projects Registered Under Other Government-recognized 
Programs.--Except as provided in subsection (b) or (c), after public 
notice and opportunity for comment, the President shall issue one 
offset credit for each ton of carbon dioxide equivalent emissions 
reduced, avoided, or sequestered--
            ``(1) under an offset project that was started after 
        January 1, 2001;
            ``(2) for which a credit was issued under any regulatory or 
        voluntary greenhouse gas emission offset program that the 
        President determines--
                    ``(A) was established under State or tribal law or 
                regulation prior to January 1, 2009, or has been 
                approved by the President pursuant to subsection (e);
                    ``(B) has developed offset project type standards, 
                methodologies, and protocols through a public 
                consultation process or a peer review process;
                    ``(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;
                    ``(D) requires that all emission reductions, 
                avoidance, or sequestration be verified by a State 
                regulatory agency or an accredited third-party 
                independent verification body;
                    ``(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; and
                    ``(F) ensures that no credits are issued for 
                activities for which 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 project or 
                activity that caused the emission reduction, avoidance, 
                or sequestration; and
            ``(3) for which the credit described in paragraph (2) is 
        transferred to the President.
    ``(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.
    ``(c) Limitation.--Notwithstanding subsection (a)(1), offset 
credits shall be issued under this section--
            ``(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; and
            ``(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.
    ``(d) Retirement of Credits.--The President 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).
    ``(e) Other Programs.--
            ``(1) In general.--Offset programs that either--
                    ``(A) were not established under State or tribal 
                law; or
                    ``(B) were not established prior to January 1, 
                2009;
        but that otherwise meet all of the criteria of subsection 
        (a)(2) may apply to the President to be approved under this 
        subsection as an eligible program for early offset credits 
        under this section.
            ``(2) Approval.--The President shall approve any such 
        program that the President determines has criteria and 
        methodologies of at least equal stringency to the criteria and 
        methodologies of the programs established under State or tribal 
        law that the President determines meet the criteria of 
        subsection (a)(2). The President shall 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 that the 
        President determines meet the criteria of subsection (a)(2). 
        The President shall make a determination on any application 
        received under this subsection by not later than 180 days from 
        the date of receipt of the application.

``SEC. 741. ENVIRONMENTAL CONSIDERATIONS.

    ``If the President lists forestry or other relevant land 
management-related offset projects as eligible offset project types 
under section 733, the President, in consultation with appropriate 
Federal agencies, shall promulgate regulations to establish criteria 
for such offset projects--
            ``(1) to ensure that native species are given primary 
        consideration in such projects;
            ``(2) to enhance biological diversity in such projects;
            ``(3) to prohibit the use of federally designated or State-
        designated noxious weeds;
            ``(4) to prohibit the use of a species listed by a 
        regional, State, or tribal invasive plant authority within the 
        applicable region, State, or land of Indian tribes;
            ``(5) in the case of forestry offset projects, in 
        accordance with widely accepted, environmentally sustainable 
        forestry practices;
            ``(6) to ensure that the offset project area was not 
        converted from native ecosystems, such as a forest, grassland, 
        scrubland or wetland, to generate offsets, unless such 
        conversation took place at least 10 years prior to the date of 
        enactment of this title or before January 1, 2009, whichever 
        date is earlier; and
            ``(7) to the maximum extent practicable, ensure that the 
        use of offset credits would be eligible to satisfy emission 
        reduction commitments made by the United States in multilateral 
        agreements, such as the United Nations Framework Convention on 
        Climate Change, done at New York on May 9, 1992 (or any 
        successor agreement).

``SEC. 742. TRADING.

    ``Section 724 shall apply to the trading of offset credits.

``SEC. 743. OFFICE OF OFFSETS INTEGRITY.

    ``(a) Establishment.--There is established within the Office of the 
Assistant Attorney General of the Environment and Natural Resources 
Division in the Department of Justice a Carbon Offsets Integrity Unit, 
to be headed by a Special Counsel (hereinafter referred to as the 
`Special Counsel'). The Carbon Offsets Integrity Unit and the Special 
Counsel shall be responsible to and shall report directly to the 
Assistant Attorney General of the Environment and Natural Resources 
Division.
    ``(b) Appointment.--The Special Counsel shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(c) Responsibilities.--The Special Counsel shall--
            ``(1) supervise and coordinate investigations and civil 
        enforcement within the Department of Justice of the carbon 
        offsets program under this part;
            ``(2) ensure that Federal law relating to civil enforcement 
        of the carbon offsets program is used to the fullest extent 
        authorized; and
            ``(3) ensure that adequate resources are made available for 
        the investigation and enforcement of civil violations of the 
        carbon offsets program.
    ``(d) Compensation.--The Special Counsel shall be paid at the basic 
pay payable for level V of the Executive Schedule under section 5316 of 
title 5, United States Code.
    ``(e) Assignment of Personnel.--There shall be assigned to the 
Carbon Offsets Integrity Unit such personnel as the Attorney General 
determines to be necessary to provide an appropriate level of 
enforcement activity in the area of carbon offsets.

``SEC. 744. 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 pursuant to the requirements of this part or as provided 
in subsection (c), (d), or (e).
    ``(b) Issuance.--
            ``(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, taking into 
        consideration specific factors relevant to the determination of 
        eligible international offset project types and the 
        implementation of international methodologies for each offset 
        type approved. 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.
            ``(2) Requirements for international offset credits.--The 
        Administrator may issue international offset credits only if--
                    ``(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;
                    ``(B) such country is a developing country; and
                    ``(C) such agreement or arrangement--
                            ``(i) ensures that all of the requirements 
                        of this part apply to the issuance of 
                        international offset credits under this 
                        section;
                            ``(ii) provides for the appropriate 
                        distribution of international offset credits 
                        issued; and
                            ``(iii) provides that the offset project 
                        developer be eligible to receive service of 
                        process in the United States for the purpose of 
                        all civil and regulatory actions in Federal 
                        courts, if such service is made in accordance 
                        with the Federal rules for service of process 
                        in the States in which the case or regulatory 
                        action is brought.
            ``(3) Supplemental international offset categories.--
                    ``(A) In general.--In order to ensure a sufficient 
                supply of international offsets and to reduce the cost 
                of compliance with this title, the Administrator may 
                establish categories of international offsets in 
                addition to those described in subsections (c), (d), 
                and (e), if--
                            ``(i) for 2 consecutive years, the auction 
                        price for allowances reaches the market 
                        stability reserve auction price under section 
                        726(c); and
                            ``(ii) the Administrator determines that 
                        the total amount of international offsets held 
                        by covered entities for each of the 2 years 
                        referred to in clause (i) does not exceed the 
                        limit on international offsets established 
                        under section 722(d)(1)(B)(iii).
                    ``(B) Supplemental categories.--
                            ``(i) In general.--Any supplemental 
                        categories of international offsets established 
                        pursuant to subparagraph (A) shall--
                                    ``(I) satisfy all applicable 
                                provisions of this part, including 
                                subsection (b)(2) of this section and 
                                sections 733 and 734; and
                                    ``(II) meet the criteria described 
                                in clause (ii).
                            ``(ii) Criteria.--The criteria referred to 
                        in clause (i)(II) are that--
                                    ``(I) the country in which the 
                                activities in the offset category would 
                                take place has developed and is 
                                implementing a low carbon development 
                                plan that includes provisions for the 
                                activities described in the offset 
                                category;
                                    ``(II) the activities in the offset 
                                category are not activities included 
                                under subsection (c), (d) or (e); and
                                    ``(III) the activities in the 
                                offset category satisfy specific 
                                criteria relevant to methodologies and 
                                institutional and technical capacities 
                                associated with developing country 
                                contexts to ensure adequate treatment 
                                of leakage, additionality, and 
                                permanence.
    ``(c) Sector-based Credits.--
            ``(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--
                    ``(A) identify sectors, or combinations of sectors, 
                within specific countries with respect to which the 
                issuance of international offset credits on a sectoral 
                basis is appropriate; and
                    ``(B) issue international offset credits for such 
                sectors only on a sectoral basis.
            ``(2) Identification of sectors.--
                    ``(A) General rule.--For purposes of paragraph 
                (1)(A), a sectoral basis shall be appropriate for 
                activities--
                            ``(i) in countries that have comparatively 
                        high greenhouse gas emissions, or comparatively 
                        greater levels of economic development; and
                            ``(ii) that, if located in the United 
                        States, would be within a sector subject to the 
                        compliance obligation under section 722.
                    ``(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:
                            ``(i) The country's gross domestic product.
                            ``(ii) The country's total greenhouse gas 
                        emissions.
                            ``(iii) Whether the comparable sector of 
                        the United States economy is covered by the 
                        compliance obligation under section 722.
                            ``(iv) The heterogeneity or homogeneity of 
                        sources within the relevant sector.
                            ``(v) Whether the relevant sector provides 
                        products or services that are sold in 
                        internationally competitive markets.
                            ``(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.
                            ``(vii) The capability of accurately 
                        measuring, monitoring, reporting, and verifying 
                        the performance of sources across the relevant 
                        sector.
                            ``(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--
                                    ``(I) ensure the integrity of the 
                                United States greenhouse gas emissions 
                                limitations established under section 
                                703; and
                                    ``(II) encourage countries to take 
                                nationally appropriate mitigation 
                                actions to reduce or avoid greenhouse 
                                gas emissions, or sequester greenhouse 
                                gases.
                            ``(ix) The issuance of offsets for 
                        activities that are--
                                    ``(I) in addition to nationally 
                                appropriate mitigation actions taken by 
                                developing countries pursuant to the 
                                low-carbon development plans of the 
                                countries; and
                                    ``(II) on a sectoral basis.
            ``(3) Sectoral basis.--
                    ``(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 or sectors 
                of the economy relative to a baseline level of 
                emissions established in an agreement or arrangement 
                described in subsection (b)(2)(A) for the sector.
                    ``(B) Baseline.--The baseline for a sector shall--
                            ``(i) be established at levels of 
                        greenhouse gas emissions 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;
                            ``(ii) be used to determine additionality 
                        and performance;
                            ``(iii) account for all significant sources 
                        of emissions from a sector;
                            ``(iv) be adjusted over time to reflect 
                        changing circumstances;
                            ``(v) be developed taking into 
                        consideration such factors as--
                                    ``(I) any established emissions 
                                performance level for the sector;
                                    ``(II) the current performance of 
                                the sector in the country;
                                    ``(III) expected future trends of 
                                the sector in the country; and
                                    ``(IV) historical data and other 
                                factors to ensure additionality; and
                            ``(vi) be designed to produce significant 
                        deviations from business-as-usual emissions, 
                        consistent with nationally appropriate 
                        mitigation commitments or actions, in a way 
                        that equitably contributes to meeting 
                        thresholds identified in section 705(e)(2).
    ``(d) Credits Issued by an International Body.--
            ``(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. Beginning on January 
        1, 2016, the Administrator shall issue no offset credit 
        pursuant to this subsection if the activity generating the 
        greenhouse gas emission reductions or avoidance, or greenhouse 
        gas sequestration, occurs in a country and sector identified by 
        the Administrator under subsection (c), unless the offset 
        credit issued by the international body is consistent with 
        section 744(c).
            ``(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--
                    ``(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; and
                    ``(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.
    ``(e) Offsets From Reduced Deforestation.--
            ``(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)--
                    ``(A) the activity occurs in--
                            ``(i) a country listed by the Administrator 
                        pursuant to paragraph (2);
                            ``(ii) a state or province listed by the 
                        Administrator pursuant to paragraph (5); or
                            ``(iii) a country listed by the 
                        Administrator pursuant to paragraph (6);
                    ``(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);
                    ``(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;
                    ``(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);
                    ``(E) the Administrator has determined that the 
                country within which the activity occurs has in place a 
                publicly available strategic plan that includes the 
                criteria listed in paragraph (2)(C);
                    ``(F) the activity is designed, carried out, and 
                managed--
                            ``(i) in accordance with forest management 
                        practices that--
                                    ``(I) improve the livelihoods of 
                                forest communities;
                                    ``(II) maintain the natural 
                                biodiversity, resilience, and carbon 
                                storage capacity of forests; and
                                    ``(III) do not adversely impact the 
                                permanence of forest carbon stocks or 
                                emission reductions;
                            ``(ii) to promote or restore native forest 
                        species and ecosystems where practicable, and 
                        to avoid the introduction of invasive nonnative 
                        species;
                            ``(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;
                            ``(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;
                            ``(v) with transparent and equitable 
                        sharing of profits and benefits derived from 
                        offset credits with local communities, 
                        indigenous peoples, and forest-dependent 
                        communities;
                            ``(vi) with full transparency, third-party 
                        independent oversight, and public dissemination 
                        of related financial and contractual 
                        arrangements, and
                            ``(vii) so that the social and 
                        environmental impacts of these activities are 
                        monitored and reported in sufficient detail to 
                        allow appropriate officials to determine 
                        compliance with the requirements of this 
                        section;
                    ``(G) 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, 
                done at New York on May 9, 1992; and
                    ``(H) in the case that offsets are determined by 
                comparing the national emissions from deforestation 
                relative to a national, state-level, or province-level 
                deforestation baseline as provided in paragraph (4) or 
                (5)--
                            ``(i) a list of activities to reduce 
                        deforestation is provided to the Administrator 
                        and made publicly available;
                            ``(ii) the social and environmental impacts 
                        of these activities are monitored and reported 
                        in sufficient detail to allow the Administrator 
                        to determine compliance with the requirements 
                        of this section; and
                            ``(iii) the distribution of revenues for 
                        activities to reduce deforestation is 
                        transparent, subject to independent third-party 
                        oversight, and publicly disseminated.
            ``(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--
                    ``(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;
                    ``(B) the institutional capacity to reduce 
                emissions from deforestation, including strong forest 
                governance and mechanisms to ensure transparency and 
                third-party independent oversight of offset activities 
                and revenues, and the transparent and equitable 
                distribution of offset revenues for local actions; and
                    ``(C) a land use or forest sector strategic plan 
                that--
                            ``(i) assesses national and local drivers 
                        of deforestation and forest degradation and 
                        identifies reforms to national policies needed 
                        to address them;
                            ``(ii) estimates the country's emissions 
                        from deforestation and forest degradation;
                            ``(iii) identifies improvements in and a 
                        timeline for data collection, monitoring, and 
                        institutional capacity necessary to implement 
                        an effective national deforestation reduction 
                        program that meets the criteria set forth in 
                        this section (including a national 
                        deforestation baseline);
                            ``(iv) establishes a timeline for 
                        implementing the program and transitioning 
                        forest-based economies to low-emissions 
                        development pathways with respect to emissions 
                        from forest and land use activities;
                            ``(v) includes a national policy for 
                        consultations with, and full participation of, 
                        all stakeholders, especially indigenous and 
                        forest-dependent communities, in its design, 
                        planning, and implementation of activities, 
                        whether at the national or local level, to 
                        reduce deforestation in the country (including 
                        a national process for addressing grievances if 
                        stakeholders have been caused social, 
                        environmental, or economic harm);
                            ``(vi) provides for the distribution of 
                        revenues for activities to reduce deforestation 
                        transparently and publicly, subject to 
                        independent third-party oversight; and
                            ``(vii) includes a national platform or a 
                        type of registry for information relating to 
                        deforestation and degradation policy and 
                        program implementation processes, including a 
                        mechanism for the monitoring and reporting of 
                        the social and environmental impacts of those 
                        activities.
            ``(3) Protection of interests.--With respect to an 
        agreement or arrangement described in subsection (b)(2)(A) with 
        a country 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 undertake due 
        diligence to ensure the establishment and enforcement by such 
        country of legal regimes, processes, standards, and safeguards 
        that--
                    ``(A) give due regard to the rights and interests 
                of local communities, indigenous peoples, forest-
                dependent communities, and vulnerable social groups;
                    ``(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; and
                    ``(C) encourage transparent and equitable sharing 
                of profits and benefits derived from international 
                offset credits with local communities, indigenous 
                peoples, and forest-dependent communities.
            ``(4) National deforestation baseline.--A national 
        deforestation baseline established under this subsection 
        shall--
                    ``(A) be national in scope;
                    ``(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 
                that only reductions that are in addition to such 
                commitments or actions will generate offsets;
                    ``(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, including a spatially explicit land use 
                plan that identifies intact and primary forest areas 
                and managed forest areas that are to remain while the 
                country is reaching the zero net deforestation 
                trajectory;
                    ``(D) be adjusted over time to take account of 
                changing national circumstances;
                    ``(E) be designed to account for all significant 
                sources of greenhouse gas emissions from deforestation 
                in the country; and
                    ``(F) be consistent with the national deforestation 
                baseline, if any, established for such country under 
                section 753.
            ``(5) State-level or province-level activities.--
                    ``(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, and 
                periodically review and update, a list of states or 
                provinces in developing countries where--
                            ``(i) the developing country is not 
                        included on the list of countries established 
                        pursuant to paragraph (6)(A);
                            ``(ii) the State or province is undertaking 
                        deforestation reduction activities;
                            ``(iii) the state or province has the 
                        capacity to engage in deforestation reduction 
                        activities at the state or province level, 
                        including--
                                    ``(I) the technical capacity to 
                                monitor and measure forest carbon 
                                fluxes for all significant sources of 
                                greenhouse gas emissions from 
                                deforestation with an acceptable amount 
                                of uncertainty, including a spatially 
                                explicit land use plan that identifies 
                                intact and primary forest areas and 
                                managed forest areas that are to remain 
                                while the country is reaching the zero 
                                net deforestation trajectory; and
                                    ``(II) the institutional capacity 
                                to reduce emissions from deforestation, 
                                including strong forest governance and 
                                mechanisms to deliver forest 
                                conservation resources for local 
                                actions;
                            ``(iv) the state or province meets the 
                        eligibility criteria in paragraphs (2) and (3) 
                        for the geographic area under its jurisdiction; 
                        and
                            ``(v) the country--
                                    ``(I) demonstrates that efforts are 
                                underway to transition to a national 
                                program within 5 years; or
                                    ``(II) in the determination of the 
                                Administrator, is making a good-faith 
                                effort to develop a land use or forest 
                                sector strategic national plan or 
                                program that meets the criteria 
                                described in paragraph (2)(C).
                    ``(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.
                    ``(C) State-level or province-level deforestation 
                baseline.--A state-level or province-level 
                deforestation baseline shall--
                            ``(i) be consistent with any existing 
                        nationally appropriate mitigation commitments 
                        or actions for the country in which the 
                        activity is occurring, so that only reductions 
                        that are in addition to those commitments or 
                        actions will generate offsets;
                            ``(ii) be developed 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;
                            ``(iii) establish a trajectory that would 
                        result in zero net deforestation by not later 
                        than 20 years after the state-level or 
                        province-level deforestation baseline has been 
                        established; and
                            ``(iv) 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 through 
                        monitoring of major forested areas in the host 
                        country and other areas of the host country 
                        susceptible to leakage.
                    ``(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.
            ``(6) Projects and programs to reduce deforestation.--
                    ``(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, and 
                periodically review and update, a list of developing 
                countries that--
                            ``(i) the Administrator determines, based 
                        on recent, credible, and reliable emissions 
                        data, account 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;
                            ``(ii) have, or in the determination of the 
                        Administrator are making a good faith effort to 
                        develop, a land use or forest sector strategic 
                        plan that meets the criteria described in 
                        paragraph (2)(C); and
                            ``(iii) has made, or in the determination 
                        of the Administrator, is making, a good-faith 
                        effort to develop, through the implementation 
                        of activities under this section, a monitoring 
                        program for major forested areas in a host 
                        country and other areas in a host country 
                        susceptible to leakage, including a spatially 
                        explicit land use plan that identifies intact 
                        and primary forest areas and managed forest 
                        areas that are to remain while country is 
                        reaching the zero net deforestation trajectory.
                    ``(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).
                    ``(C) Project-level or program-level baseline.--A 
                project-level or program-level deforestation baseline 
                shall--
                            ``(i) be consistent with any existing 
                        nationally appropriate mitigation commitments 
                        or actions for the country in which the project 
                        or program is occurring, so that only 
                        reductions that are in addition to such 
                        commitments or actions will generate offsets;
                            ``(ii) be developed taking into 
                        consideration the average annual historical 
                        deforestation rates in the project or program 
                        boundary during a period of at least 5 years, 
                        applicable drivers of deforestation, and other 
                        factors to ensure additionality;
                            ``(iii) be designed to account for all 
                        significant sources of greenhouse gas emissions 
                        from deforestation in the project or program 
                        boundary; and
                            ``(iv) be adjusted to fully account for 
                        emissions leakage outside the project or 
                        program boundary, including--
                                    ``(I) estimation through monitoring 
                                of major forested areas in a host 
                                country and other areas in a host 
                                country susceptible to leakage, 
                                pursuant to section 744(e)(5); and
                                    ``(II) a spatially explicit land 
                                use plan that identifies intact and 
                                primary forest areas and managed forest 
                                areas that are to remain while country 
                                is reaching the zero net deforestation 
                                trajectory
                    ``(D) Phase-out.--
                            ``(i) In general.--Beginning on the date 
                        that is 8 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 as described in 
                        this paragraph, except as provided in clause 
                        (ii).
                            ``(ii) Extension.--The Administrator may 
                        extend the phase out deadline for the issuance 
                        of international offset credits under this 
                        section by up to 5 years with respect to 
                        eligible activities taking place in a least 
                        developed country, which is 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, provided that the 
                        Administrator, in consultation with the 
                        Secretary of State and the Administrator of the 
                        United States Agency for International 
                        Development, determines the country--
                                    ``(I) lacks sufficient capacity to 
                                adopt and implement effective programs 
                                to achieve reductions in deforestation 
                                measured against national baselines;
                                    ``(II) is receiving support under 
                                part E to develop such capacity; and
                                    ``(III) has developed and is 
                                working to implement a credible 
                                national strategy or plan to reduce 
                                deforestation.
            ``(7) Offset credit issuance.--Requirements under this 
        subsection to issue international offset credits only if the 
        quantity of the international offset credits is determined by 
        reference to a national, State-level, or province-level 
        deforestation baseline do not preclude the Administrator from 
        issuing a portion of the total quantity of those credits 
        directly to an offset project developer for use in carrying out 
        activities in accordance with this section that contributed to 
        a reduction in emissions, if that issuance is authorized by--
                    ``(A) the agreement or arrangement described in 
                subsection (b)(2)(A); and
                    ``(B) if the credits are issued pursuant to 
                paragraph (5), by the State or provincial government.
            ``(8) Expansion of scope.--In implementing this subsection, 
        the Administrator, taking into consideration the 
        recommendations of the Advisory Board, may expand the scope of 
        creditable activities to include activities that reduce 
        emissions from land use, such as those that address forest 
        degradation or soil carbon losses associated with forested 
        wetlands or peatlands.
    ``(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 or would result in the 
creation of offset credits that would not be eligible to satisfy 
emissions reduction commitments made by the United States pursuant to 
the United Nations Framework Convention on Climate Change, done at New 
York on May 9, 1992 (or any successor agreement). 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 limitations established pursuant to 
section 703.
    ``(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 771(c) for 
distribution under part E.
    ``(h) Limitation.--The Administrator shall not issue international 
offset credits generated by projects based on the destruction of 
hydrofluorocarbons.''.

SEC. 102. DEFINITIONS.

    Title VII of the Clean Air Act (as added by section 101 of this 
division) is amended by inserting before part A the following:

``SEC. 700. DEFINITIONS.

    ``In this title:
            ``(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 credit.
            ``(2) Additionality.--The term `additionality' means the 
        extent to which reductions or avoidance of greenhouse gas 
        emissions, or sequestration of greenhouse gases, are 
        additional.
            ``(3) Advisory board.--The term `Advisory Board' means the 
        Offsets Integrity Advisory Board established under section 731.
            ``(4) Affiliated.--The term `affiliated'--
                    ``(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; and
                    ``(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.
            ``(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; it includes 
        an emission allowance, a compensatory allowance, or an 
        international emission allowance.
            ``(6) Attributable greenhouse gas emissions.--The term 
        `attributable greenhouse gas emissions' means--
                    ``(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 for sale or distribution in 
                interstate commerce, assuming no capture and 
                sequestration of any greenhouse gas emissions;
                    ``(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 
                fossil fuel-based carbon dioxide, nitrous oxide, any 
                fluorinated gas, other than nitrogen trifluoride, that 
                is a greenhouse gas, or any combination thereof--
                            ``(i) produced or imported by such covered 
                        entity during the previous calendar year for 
                        sale or distribution in interstate commerce; or
                            ``(ii) released as fugitive emissions in 
                        the production of fluorinated gas; and
                    ``(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 the previous calendar 
                year to customers that are not covered entities, 
                assuming no capture and sequestration of that 
                greenhouse gas.
            ``(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.
            ``(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.
            ``(9) Capped source.--The term `capped source' means a 
        source that directly emits capped emissions.
            ``(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.
            ``(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.
            ``(12) Compensatory allowance.--The term `compensatory 
        allowance' means an allowance issued under section 721(f).
            ``(13) Covered entity.--The term `covered entity' means 
        each of the following:
                    ``(A) Any electricity source.
                    ``(B)(i) Any stationary source that produces 
                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.
                    ``(ii) Any entity that (or any group of 2 or more 
                affiliated entities that, in the aggregate) imports 
                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.
                    ``(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 more than 25,000 tons of carbon 
                dioxide equivalent of--
                            ``(i) fossil fuel-based carbon dioxide;
                            ``(ii) nitrous oxide;
                            ``(iii) perfluorocarbons;
                            ``(iv) sulfur hexafluoride;
                            ``(v) any other fluorinated gas, except for 
                        nitrogen trifluoride, that is a greenhouse gas, 
                        as designated by the Administrator under 
                        section 711(b) or (c); or
                            ``(vi) any combination of greenhouse gases 
                        described in clauses (i) through (v).
                    ``(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.
                    ``(E) Any geologic sequestration site.
                    ``(F) Any stationary source in the following 
                industrial sectors:
                            ``(i) Adipic acid production.
                            ``(ii) Primary aluminum production.
                            ``(iii) Ammonia manufacturing.
                            ``(iv) Cement production, excluding 
                        grinding-only operations.
                            ``(v) Hydrochlorofluorocarbon production.
                            ``(vi) Lime manufacturing.
                            ``(vii) Nitric acid production.
                            ``(viii) Petroleum refining.
                            ``(ix) Phosphoric acid production.
                            ``(x) Silicon carbide production.
                            ``(xi) Soda ash production.
                            ``(xii) Titanium dioxide production.
                            ``(xiii) Coal-based liquid or gaseous fuel 
                        production.
                    ``(G) Any stationary source in the chemical or 
                petrochemical sector that, in 2008 or any subsequent 
                year--
                            ``(i) produces acrylonitrile, carbon black, 
                        ethylene, ethylene dichloride, ethylene oxide, 
                        or methanol; or
                            ``(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.
                    ``(H) Any stationary source that--
                            ``(i) is in one of the following industrial 
                        sectors: ethanol production; ferroalloy 
                        production; fluorinated gas production; food 
                        processing; glass production; hydrogen 
                        production; beneficiation or other processing 
                        (including agglomeration) of metal ores; iron 
                        and steel production; lead production; pulp and 
                        paper manufacturing; and zinc production; and
                            ``(ii) has emitted 25,000 or more tons of 
                        carbon dioxide equivalent in 2008 or any 
                        subsequent year.
                    ``(I) Any fossil fuel-fired combustion device (such 
                as a boiler) or grouping of such devices that--
                            ``(i) is all or part of an industrial 
                        source not specified in subparagraph (D), (F), 
                        (G), or (H); and
                            ``(ii) has emitted 25,000 or more tons of 
                        carbon dioxide equivalent in 2008 or any 
                        subsequent year.
                    ``(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 to customers that are not 
                covered entities.
            ``(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).
            ``(15) Designated representative.--The term `designated 
        representative' means, with respect to a covered entity, a 
        reporting entity, 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.
            ``(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.
            ``(17) Domestic offset credit.--
                    ``(A) In general.--The term `domestic offset 
                credit' means an offset credit issued under part D, 
                other than an international offset credit.
                    ``(B) Exclusion.--The term `domestic offset credit' 
                does not include a term offset credit.
            ``(18) Electricity source.--The term `electricity source' 
        means a stationary source that includes one or more utility 
        units.
            ``(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 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).
            ``(20) Emission allowance.--The term `emission allowance' 
        means an allowance established under section 721(a) or 
        726(g)(2).
            ``(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.
            ``(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.
            ``(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.
            ``(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.
            ``(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.
            ``(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.
            ``(27) Geologic sequestration site.--The term `geologic 
        sequestration site' means a site where carbon dioxide is 
        geologically sequestered.
            ``(28) Greenhouse gas.--The term `greenhouse gas' means any 
        gas described in section 711(a) or designated under section 
        711(b), (c), or (e), except to the extent that it is regulated 
        under title VI.
            ``(29) High conservation priority land.--The term `high 
        conservation priority land' means land that is not Federal land 
        and is--
                    ``(A) globally or State ranked as critically 
                imperiled or imperiled under a State Natural Heritage 
                Program; or
                    ``(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.
            ``(30) Hold.--The term `hold' means, with respect to an 
        allowance, offset credit, or term offset credit, to have in the 
        appropriate account in the allowance tracking system, or submit 
        to the Administrator for recording in such account.
            ``(31) Industrial source.--The term `industrial source' 
        means any stationary source that--
                    ``(A) is not an electricity source; and
                    ``(B) is in--
                            ``(i) the manufacturing sector (as defined 
                        in North American Industrial Classification 
                        System codes 31, 32, and 33); or
                            ``(ii) the natural gas processing or 
                        natural gas pipeline transportation sector (as 
                        defined in North American Industrial 
                        Classification System codes 211112 or 486210).
            ``(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).
            ``(33) International offset credit.--The term 
        `international offset credit' means an offset credit issued by 
        the Administrator under section 744.
            ``(34) Leakage.--The term `leakage' means a significant 
        increase in greenhouse gas emissions, or significant decrease 
        in sequestration, which is caused by an offset project and 
        occurs outside the boundaries of the offset project.
            ``(35) Market stability reserve allowance.--The term 
        `market stability reserve allowance' means an emission 
        allowance reserved for, transferred to, or deposited in the 
        market stability reserve, or established, under section 726.
            ``(36) 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.
            ``(37) Natural gas liquid.--The term `natural gas liquid' 
        means ethane, butane, isobutane, natural gasoline, and propane 
        which is ready for commercial sale or use.
            ``(38) 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)).
            ``(39) Offset credit.--
                    ``(A) In general.--The term `offset credit' means 
                an offset credit issued under part D.
                    ``(B) Exclusion.--The term `offset credit' does not 
                include a term offset credit.
            ``(40) 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.
            ``(41) 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).
            ``(42) Qualified r&d facility.--The term `qualified R&D 
        facility' means a facility that conducts research and 
        development, that was in operation as of the date of enactment 
        of this title, and that is part of a covered entity subject to 
        paragraphs (1) through (8) of section 722(b).
            ``(43) Petroleum.--The term `petroleum' includes crude oil, 
        tar sands, oil shale, and heavy oils.
            ``(44) Repeated intentional reversals.--The term `repeated 
        intentional reversals' means at least 3 intentional reversals, 
        as determined by the Administrator or a court under section 
        734(b)(3)(B)(ii).
            ``(45) Research and development.--The term `research and 
        development' means activities--
                    ``(A) that are conducted in process units or at 
                laboratory bench-scale settings;
                    ``(B) whose purpose is to conduct research and 
                development for new processes, technologies, or 
                products that contribute to lower greenhouse gas 
                emissions; and
                    ``(C) that do not manufacture products for sale.
            ``(46) Renewable biomass.--The term `renewable biomass' 
        means any of the following:
                    ``(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.
                    ``(B) Plant material, including waste material, 
                harvested or collected from pastureland that was 
                nonforested on January 1, 2009.
                    ``(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).
                    ``(D) Animal waste or animal byproducts, including 
                products of animal waste digesters.
                    ``(E) Algae.
                    ``(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.
                    ``(G) Residues from or byproducts of milled logs.
                    ``(H) Any of the following removed from forested 
                land that is not Federal and is not high conservation 
                priority land:
                            ``(i) Trees, brush, slash, residues, 
                        interplanted energy crops, or any other 
                        vegetative matter removed from an actively 
                        managed tree plantation established--
                                    ``(I) prior to January 1, 2009; or
                                    ``(II) on land that, as of January 
                                1, 2009, was cultivated or fallow and 
                                non-forested.
                            ``(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.
                            ``(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.
                            ``(iv) Dead or severely damaged trees 
                        removed within 5 years of fire, blowdown, or 
                        other natural disaster, and badly infested 
                        trees.
                    ``(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--
                            ``(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;
                            ``(ii) harvested in environmentally 
                        sustainable quantities, as determined by the 
                        appropriate Federal land manager; and
                            ``(iii) are harvested in accordance with 
                        Federal and State law, and applicable land 
                        management plans.
            ``(47) Retire.--The term `retire', with respect to an 
        allowance, offset credit, or term 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, offset credit, or term offset 
        credit to satisfy a compliance obligation.
            ``(48) Reversal.--The term `reversal' means an intentional 
        or unintentional loss of sequestered greenhouse gases to the 
        atmosphere.
            ``(49) 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.
            ``(50) Small business refiner.--
                    ``(A) In general.--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)).
                    ``(B) Eligibility.--Eligibility of a small business 
                refiner under this paragraph shall not be recalculated 
                or disallowed on account of--
                            ``(i) a merger of the small business 
                        refiner with 1 or more other small business 
                        refiners after December 31, 2002; or
                            ``(ii) the acquisition by a small business 
                        refiner of another small business refiner (or 
                        refinery of such refiner) after December 31, 
                        2002.
            ``(51) 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.
            ``(52) Ton.--The term `ton' means a metric ton.
            ``(53) Uncapped emissions.--The term `uncapped emissions' 
        means emissions of greenhouse gases emitted after December 31, 
        2011, that are not capped emissions.
            ``(54) 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.
            ``(55) 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--
                    ``(A) is part of an integrated cycle system that 
                cogenerates thermal energy and electricity during 
                normal operation and that supplies \1/3\ or less of its 
                potential electric output capacity and 25 megawatts or 
                less of electrical output for sale; or
                    ``(B) combusts materials of which more than 95 
                percent is municipal solid waste on a heat input basis.
            ``(56) 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 market stability reserve allowance shall be the year 
        in which such allowance is purchased at auction.''.

SEC. 103. OFFSET REPORTING REQUIREMENTS.

    Section 114 of Clean Air Act (42 U.S.C. 7414) is amended by adding 
at the end the following:
    ``(e) Recordkeeping for Carbon Offsets Program.--For the purpose of 
implementing the carbon offsets program set forth in subtitle D of 
title VII, the Administrator shall require any person who is an offset 
project developer, and may require any person who is a third party 
verifier, to establish and maintain records, for a period of not less 
than the crediting period under section 734(c) plus 5 years, relating 
to--
            ``(1) any offset project approval petition submitted to the 
        appropriate officials under section 735;
            ``(2) any reversals which occur with respect to an offset 
        project;
            ``(3) any verification reports; and
            ``(4) any other aspect of the offset project that the 
        appropriate officials determines is appropriate.''.

                 Subtitle B--Disposition of Allowances

SEC. 111. DISPOSITION OF ALLOWANCES FOR GLOBAL WARMING POLLUTION 
              REDUCTION PROGRAM.

    Title VII of the Clean Air Act (as amended by section 141 of this 
division) is amended by adding at the end the following:

                  ``PART G--DISPOSITION OF ALLOWANCES

``SEC. 771. ALLOCATION OF EMISSION ALLOWANCES.

    ``(a) Allocation.--Subject to subsection (d), of the total quantity 
of emission allowances established for each vintage year under section 
721(a), the Administrator shall allocate emission allowances for the 
purposes and for the vintage years and corresponding percentages 
specified as follows:
            ``(1) For the program for electricity consumers pursuant to 
        section 772, as described in the following tables:
                    ``(A) For distribution to electricity consumers in 
                accordance with subsections (b), (c), and (d) of 
                section 772, the percentages specified in the following 
                table:

                        ``Electricity consumers
Vintage Year                             Percentage of allowances
  2012.................................  43.75
  2013.................................  43.75
  2014.................................  38.89
  2015.................................  38.89
  2016.................................  35.00
  2017.................................  35.00
  2018.................................  35.00
  2019.................................  35.00
  2020.................................  35.00
  2021.................................  35.00
  2022.................................  35.00
  2023.................................  35.00
  2024.................................  35.00
  2025.................................  35.00
  2026.................................  28.00
  2027.................................  21.00
  2028.................................  14.00
  2029.................................  7.00
 

                    ``(B) For distribution to small LDCs under section 
                772(e), the percentages specified in the following 
                table:

                              ``Small LDCs
Vintage Year                             Percentage of allowances
  2012.................................  0.50
  2013.................................  0.50
  2014.................................  0.50
  2015.................................  0.50
  2016.................................  0.50
  2017.................................  0.50
  2018.................................  0.50
  2019.................................  0.50
  2020.................................  0.50
  2021.................................  0.50
  2022.................................  0.50
  2023.................................  0.50
  2024.................................  0.50
  2025.................................  0.50
  2026.................................  0.40
  2027.................................  0.30
  2028.................................  0.20
  2029.................................  0.10
 

            ``(2) For the program for natural gas consumers pursuant to 
        section 773, as described in the following table:

                         ``Natural gas consumers
Vintage Year                             Percentage of allowances
  2012.................................  0.00
  2013.................................  0.00
  2014.................................  0.00
  2015.................................  0.00
  2016.................................  9.00
  2017.................................  9.00
  2018.................................  9.00
  2019.................................  9.00
  2020.................................  9.00
  2021.................................  9.00
  2022.................................  9.00
  2023.................................  9.00
  2024.................................  9.00
  2025.................................  9.00
  2026.................................  7.20
  2027.................................  5.40
  2028.................................  3.60
  2029.................................  1.80
 

            ``(3) For the program for home heating oil and propane 
        consumers pursuant to section 774, as described in the 
        following table:

                ``Home heating oil and propane consumers
Vintage Year                             Percentage of allowances
  2012.................................  1.88
  2013.................................  1.88
  2014.................................  1.67
  2015.................................  1.67
  2016.................................  1.50
  2017.................................  1.50
  2018.................................  1.50
  2019.................................  1.50
  2020.................................  1.50
  2021.................................  1.50
  2022.................................  1.50
  2023.................................  1.50
  2024.................................  1.50
  2025.................................  1.50
  2026.................................  1.20
  2027.................................  0.90
  2028.................................  0.60
  2029.................................  0.30
 

            ``(4) For the program for domestic fuel production, 
        including petroleum refiners and small business refiners, under 
        section 775, for each of vintage years 2014 through 2026, for 
        allocation and distribution in accordance with section 775--
                    ``(A) 1.25 percent of the emission allowances 
                established for each vintage year under section 721(a) 
                to domestic petroleum refineries that are covered 
                entities described in section 700(13)(F)(viii); and
                    ``(B) an additional 1.0 percent of the emission 
                allowances established for each vintage year under 
                section 721(a) to small business refiners that are 
                covered entities described in section 700(13)(F)(viii).
            ``(5) In addition to emission allowances reserved under 
        subsection (d)(5), subject to subparagraph (G), for the program 
        to ensure real reductions in industrial emissions under part F, 
        as follows:
                    ``(A) For each of vintage years 2012 and 2013, up 
                to 4.0 percent of the emission allowances established 
                for each year under section 721(a).
                    ``(B) For vintage year 2014, up to 15 percent of 
                the emission allowances established for that year under 
                section 721(a).
                    ``(C) For vintage year 2015, up to the product of--
                            ``(i) the quantity specified in 
                        subparagraph (B); multiplied by
                            ``(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).
                    ``(D) For vintage year 2016, up to the lesser or 
                13.45 percent or the product obtained by multiplying--
                            ``(i) the quantity specified in 
                        subparagraph (C); and
                            ``(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).
                    ``(E) For vintage years 2017 through 2025, up to 
                the lesser or 13.45 percent or the product obtained by 
                multiplying--
                            ``(i) the quantity specified in 
                        subparagraph (D); and
                            ``(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).
                    ``(F) For vintage years 2026 through 2050, up to 
                the product of the quantity specified in subparagraph 
                (D)--
                            ``(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); and
                            ``(ii) multiplied by a factor that shall 
                        equal 90 percent for 2026 and decline 10 
                        percent for each year thereafter until reaching 
                        0.
                    ``(G) If the Administrator has not distributed all 
                of the allowances allocated pursuant to this paragraph 
                for a given vintage year by the end of that year, any 
                emission allowances allocated to entities in eligible 
                industrial sectors pursuant to this paragraph that have 
                not been so distributed shall, in accordance with 
                subsection (e), be exchanged for allowances from the 
                following vintage year and treated as part of the 
                allocation to such entities for that later vintage 
                year.
            ``(6)(A) Subject to subparagraph (B), for the program for 
        commercial deployment of carbon capture and sequestration 
        technologies under section 780, as described in the following 
        table:

       ``Deployment of carbon capture and sequestration technology
Vintage Year                             Percentage of allowances
  2012.................................  0.00
  2013.................................  0.00
  2014.................................  1.75
  2015.................................  1.75
  2016.................................  1.75
  2017.................................  1.75
  2018.................................  4.75
  2019.................................  4.75
  Each of vintage years 2020 through     5.00
   2050.
 

            ``(B) If the Administrator has not distributed all of the 
        allowances allocated pursuant to this paragraph for a given 
        vintage year by the end of that year, all such undistributed 
        emission allowances shall, in accordance with subsection (e), 
        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.
            ``(7) For the program for early action recognition pursuant 
        to section 782, 2.0 percent of the emission allowances for each 
        of vintage years 2012 and 2013.
            ``(8) For the program for investment in clean vehicle 
        technology under section 201 of division B of the Clean Energy 
        Jobs and American Power Act--
                    ``(A) for each of vintage years 2012 through 2017, 
                2.4 percent of the emission allowances; and
                    ``(B) for each of vintage years 2018 through 2025, 
                0.8 percent of the emission allowances.
            ``(9)(A) In addition to the emission allowances reserved 
        under subsection (d)(6), subject to subparagraph (B), for the 
        program for State and local investment in energy efficiency and 
        renewable energy under section 202 of division B of the Clean 
        Energy Jobs and American Power Act, as described in the 
        following table:

         ``Investment in energy efficiency and renewable energy
Vintage Year                             Percentage of allowances
  2012.................................  10.35
  2013.................................  10.35
  2014.................................  8.55
  2015.................................  8.55
  2016.................................  5.85
  2017.................................  6.12
  2018.................................  5.22
  2019.................................  5.22
  2020.................................  4.95
  2021.................................  4.95
  2022.................................  0.90
  2023.................................  0.90
  2024.................................  0.90
  2025.................................  0.90
  Each of vintage years 2026 through     4.05
   2050.
 

            ``(B) At the time at which allowances are distributed under 
        subparagraph (A) for each of vintage years 2022 through 2025, 
        3.2 percent of emission allowances established under section 
        721(a) for the vintage year that is 4 years after that vintage 
        year shall also be distributed (which shall be in addition to 
        the emission allowances distributed under subparagraph (A) for 
        vintage years 2026 through 2050.
            ``(10) For the program for energy efficiency in building 
        codes under section 163 of division A, and section 203 of 
        division B, of the Clean Energy Jobs and American Power Act, 
        0.50 percent of the emission allowances for each of vintage 
        years 2012 through 2050.
            ``(11) For the program for Energy Innovation Hubs pursuant 
        to section 204 of division B of the Clean Energy Jobs and 
        American Power Act--
                    ``(A) for each of vintage years 2012 through 2015, 
                0.75 percent of the emission allowances; and
                    ``(B) for each of vintage years 2016 through 2050, 
                0.45 percent of the emission allowances.
            ``(12) For the program for ARPA-E research pursuant to 
        section 205 of division B of the Clean Energy Jobs and American 
        Power Act--
                    ``(A) for each of vintage years 2012 and 2013, 3.25 
                percent of the emission allowances; and
                    ``(B) for each of vintage years 2014 through 2050, 
                1.25 percent of the emission allowances.
            ``(13) For the International Clean Energy Deployment 
        Program under section 323 of division A, and section 206 of 
        division B, of the Clean Energy Jobs and American Power Act--
                    ``(A) for each of vintage years 2012 through 2021, 
                1.0 percent of the emission allowances;
                    ``(B) for each of vintage years 2022 through 2026, 
                2.0 percent of the emission allowances; and
                    ``(C) for each of vintage years 2027 through 2050, 
                3.0 percent of the emission allowances.
            ``(14) In addition to the emission allowances reserved 
        under subsection (d)(8), for the international climate change 
        adaptation and global security program under section 324 of 
        division A, and section 207 of division B, of the Clean Energy 
        Jobs and American Power Act--
                    ``(A) for each of vintage years 2012 through 2021, 
                1.0 percent of the emission allowances;
                    ``(B) for each of vintage years 2022 through 2026, 
                2.0 percent of the emission allowances; and
                    ``(C) for each of vintage years 2027 through 2050, 
                5.0 percent of the emission allowances.
            ``(15) For State programs for greenhouse gas reduction and 
        climate adaptation pursuant to section 210(c) of division B of 
        the Clean Energy Jobs and American Power Act, as described in 
        the following table:

      ``State programs for greenhouse gas reduction and adaptation
Vintage Year                             Percentage of allowances
  2012.................................  1.34
  2013.................................  1.34
  2014.................................  0.50
  2015.................................  0.50
  2016.................................  0.50
  2017.................................  0.50
  2018.................................  0.50
  2019.................................  0.50
  2020.................................  0.50
  2021.................................  0.50
  2022.................................  1.06
  2023.................................  1.06
  2024.................................  1.06
  2025.................................  1.06
  2026.................................  1.06
  Each of vintage years 2027 through     2.18
   2050.
 

            ``(16) For State programs for natural resource adaptation 
        activities under the program for climate change safeguards for 
        natural resources conservation under section 370(a)(1) of 
        division A, and section 216 of division B, of the Clean Energy 
        Jobs and American Power Act, as described in the following 
        table:

            ``State programs for natural resource adaptation
Vintage Year                             Percentage of allowances
  2012.................................  0.39
  2013.................................  0.39
  2014.................................  0.39
  2015.................................  0.39
  2016.................................  0.39
  2017.................................  0.39
  2018.................................  0.39
  2019.................................  0.39
  2020.................................  0.39
  2021.................................  0.39
  2022.................................  0.77
  2023.................................  0.77
  2024.................................  0.77
  2025.................................  0.77
  2026.................................  0.77
  Each of vintage years 2027 through     1.54
   2050.
 

    ``(b) Auctions.--Subject to subsection (d), of the total quantity 
of emission allowances established for each calendar year under section 
721(a), the Administrator shall auction, pursuant to section 778, 
emission allowances for the purposes and for the vintage or calendar 
years and corresponding percentages specified as follows:
            ``(1) Emission allowances reserved under subsection (d)(9) 
        for the Market Stability Reserve Fund under section 726.
            ``(2) For the program for climate change consumer refunds 
        and low- and moderate-income consumers pursuant to section 
        776--
                    ``(A) emission allowances for consumer rebates 
                under section 776(a), pursuant to subsection (f)(2); 
                and
                    ``(B) emission allowances for energy refunds under 
                section 776(b), as follows:
                            ``(i) For each of calendar years 2012 
                        through 2029, 15.00 percent of the emission 
                        allowances.
                            ``(ii) For each of calendar years 2030 
                        through 2050, 18.50 percent of the emission 
                        allowances.
                            ``(iii) For calendar year 2051 and each 
                        calendar year thereafter, 15.00 percent of the 
                        emission allowances.
            ``(3) For the program for investment in clean vehicle 
        technology under section 201 of division B of the Clean Energy 
        Jobs and American Power Act--
                    ``(A) for each of calendar years 2012 through 2017, 
                0.6 percent of the emission allowances; and
                    ``(B) for each of calendar years 2018 through 2025, 
                0.2 percent of the emission allowances.
            ``(4) For the program for energy efficiency and renewable 
        energy worker training under section 208 of division B of the 
        Clean Energy Jobs and American Power Act--
                    ``(A) for each of calendar years 2012 and 2013, 1.0 
                percent of the emission allowances; and
                    ``(B) for each of calendar years 2014 and 2015, 
                0.05 percent of the emission allowances.
            ``(5) For the program for worker transition under part 2 of 
        subtitle A of title III of division A, and section 209 of 
        division B, of the Clean Energy Jobs and American Power Act--
                    ``(A) for each of calendar years 2012 through 2021, 
                0.5 percent of the emission allowances; and
                    ``(B) for each of calendar years 2022 through 2050, 
                1.0 percent of the emission allowances.
            ``(6) For the program for public health and climate change 
        under subpart B of part 1 of subtitle C of title III of 
        division A, and section 211 of division B, of the Clean Energy 
        Jobs and American Power Act, 0.10 percent of the emission 
        allowances for each of calendar years 2012 through 2050.
            ``(7) For the Natural Resources Climate Change Adaptation 
        Account under the program for climate change safeguards for 
        natural resources conservation under paragraphs (2) through (6) 
        of section 370(a) of division A, and section 212 of division B, 
        of the Clean Energy Jobs and American Power Act, as described 
        in the following table:

          ``Natural Resources Climate Change Adaptation Account
Calendar Year                            Percentage of allowances
  2012.................................  0.62
  2013.................................  0.62
  2014.................................  0.62
  2015.................................  0.62
  2016.................................  0.62
  2017.................................  0.62
  2018.................................  0.62
  2019.................................  0.62
  2020.................................  0.62
  2021.................................  0.62
  2022.................................  1.23
  2023.................................  1.23
  2024.................................  1.23
  2025.................................  1.23
  2026.................................  1.23
  Each of calendar years 2027 through    2.46
   2050.
 

            ``(8) For nuclear worker training under section 132 of 
        division A, and section 213 of division B, of the Clean Energy 
        Jobs and American Power Act--
                    ``(A) for each of calendar years 2012 and 2013, 0.5 
                percent of the emission allowances; and
                    ``(B) for each of calendar years 2014 and 2015, 
                0.05 percent of the emission allowances.
            ``(9) In addition to the emission allowances reserved under 
        subsection (d)(3), for the supplemental agriculture, abandoned 
        mine land, renewable energy, and forestry greenhouse gas 
        reduction and renewable energy program under section 155 of 
        division A, and section 214 of division B, of the Clean Energy 
        Jobs and American Power Act--
                    ``(A) for each of calendar years 2012 and 2013, 1.0 
                percent of the emission allowances; and
                    ``(B) for each of calendar years 2014 through 2016, 
                0.28 percent of the emission allowances.
            ``(10) Transportation greenhouse gas reduction.--In 
        addition to the emission allowances reserved under subsection 
        (d)(4), for the transportation greenhouse gas reduction program 
        under sections 831 and 832 of this Act, and 215 of division B, 
        of the Clean Energy Jobs and American Power Act, as described 
        in the following table:

                ``Transportation greenhouse gas reduction
Calendar Year                            Percentage of allowances
  2012.................................  2.21
  2013.................................  2.21
  2014.................................  1.35
  2015.................................  1.35
  2016.................................  1.05
  2017.................................  1.08
  2018.................................  0.98
  2019.................................  0.98
  2020.................................  0.95
  2021.................................  0.95
  2022.................................  0.94
  2023.................................  0.94
  2024.................................  0.94
  2025.................................  0.94
  2026.................................  1.64
  2027.................................  2.52
  2028.................................  2.52
  2029.................................  2.52
  Each of calendar years 2030 through    2.17
   2050.
 

    ``(c) Supplemental Reductions.--
            ``(1) In general.--Subject to subsection (d) and paragraphs 
        (2) and (3), the Administrator shall allocate allowances for 
        each vintage year to achieve supplemental reductions pursuant 
        to section 753, as follows:
                    ``(A) For each of calendar years 2012 through 2025, 
                5.0 percent of the emission allowances.
                    ``(B) For each of calendar years 2026 through 2030, 
                3.0 percent of the emission allowances.
                    ``(C) For each of calendar years 2031 through 2050, 
                2.0 percent of the emission allowances.
            ``(2) Adjustment.--The Administrator shall modify the 
        allowances allocated under paragraph (1) as necessary to ensure 
        the achievement of the annual supplemental emissions reduction 
        objective for 2020 and the cumulative reduction objective 
        through 2025 set forth in section 753(b)(1).
            ``(3) 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 (e), be exchanged for allowances from the following 
        vintage year and treated as part of the allocation for 
        supplemental reductions under this section for that later 
        vintage year.
    ``(d) Initial Reservation of Allowances.--
            ``(1) In general.--Before allocating emission allowances 
        under subsections (a) through (c) for each calendar year, the 
        Administrator shall reserve from the total quantity of emission 
        allowances established for the calendar year under section 
        721(a) the percentages of allowances specified in paragraphs 
        (2) through (9), for use for the purposes described in those 
        paragraphs.
            ``(2) Deficit reduction.--For auction pursuant to section 
        778 to ensure that this title does not contribute to the 
        deficit for a calendar year, with proceeds of the auction to be 
        deposited immediately upon receipt in the Deficit Reduction 
        Fund established by section 783, the Administrator shall 
        reserve--
                    ``(A) for each of calendar years 2012 through 2029, 
                10 percent of the emission allowances;
                    ``(B) for each of calendar years 2030 through 2039, 
                22 percent of the emission allowances; and
                    ``(C) for each of calendar years 2040 through 2050, 
                25 percent of the emission allowances.
            ``(3) Supplemental agriculture, abandoned mine land, 
        renewable energy, and forestry.--For the supplemental 
        agriculture, abandoned mine land, renewable energy, and 
        forestry greenhouse gas reduction and renewable energy program 
        under section 155 of division A, and section 214 of division B, 
        of the Clean Energy Jobs and American Power Act, the 
        Administrator shall reserve 1.0 percent of the emission 
        allowances for each of calendar years 2012 through 2050.
            ``(4) Transportation greenhouse gas reduction.--For the 
        transportation greenhouse gas reduction program under sections 
        831 and 832 of this Act, and section 215 of division B of the 
        Clean Energy Jobs and American Power Act, the Administrator 
        shall reserve for each of calendar years 2012 through 2050, 1.0 
        percent of the emission allowances.
            ``(5) Industrial emissions.--For the program to ensure real 
        reductions in industrial emissions under part F, the 
        Administrator shall reserve 0.50 percent of the emission 
        allowances for each of calendar years 2012 through 2050.
            ``(6) State and local investment in energy efficiency and 
        renewable energy.--For the program for State and local 
        investment in energy efficiency and renewable energy under 
        section 202 of division B of the Clean Energy Jobs and American 
        Power Act, the Administrator shall reserve 0.50 percent of the 
        emission allowances for each of calendar years 2012 through 
        2050.
            ``(7) Electricity consumers; small ldcs.--For distribution 
        to small LDCs under the program for electricity consumers under 
        section 772(f), the Administrator shall reserve--
                    ``(A) for each of calendar years 2012 through 2025, 
                0.50 percent of the emission allowances;
                    ``(B) for calendar year 2026, 0.40 percent of the 
                emission allowances;
                    ``(C) for calendar year 2027, 0.30 percent of the 
                emission allowances;
                    ``(D) for calendar year 2028, 0.20 percent of the 
                emission allowances; and
                    ``(E) for calendar year 2029, 0.10 percent of the 
                emission allowances.
            ``(8) International climate change adaptation and global 
        security program.--For the international climate change 
        adaptation and global security program under section 324 of 
        division A, and section 207 of division B, of the Clean Energy 
        Jobs and American Power Act, the Administrator shall reserve 
        0.25 percent of the emission allowances for each of calendar 
        years 2012 through 2026.
            ``(9) Market stability reserve fund.--For the Market 
        Stability Reserve Fund under section 726, the Administrator 
        shall reserve--
                    ``(A) for each of calendar years 2012 through 2019, 
                2.0 percent of the emission allowances; and
                    ``(B) for each of calendar years 2020 through 2050, 
                3.0 percent of the emission allowances.
    ``(e) Treatment of Carryover Allowances.--
            ``(1) In general.--If there are undistributed allowances 
        from a vintage year for eligible industrial sectors pursuant to 
        subsection (a)(5), deployment of carbon capture and 
        sequestration technology pursuant to subsection (a)(6), or 
        supplemental reductions pursuant to subsection (c), the 
        Administrator shall--
                    ``(A) use the undistributed allowances to increase 
                for the same vintage year--
                            ``(i) the allocation of allowances to be 
                        auctioned, with the proceeds to be deposited 
                        immediately upon receipt in the Deficit 
                        Reduction Fund established by section 783;
                            ``(ii) the allocation of allowances for the 
                        program for climate change consumer refunds and 
                        low- and moderate-income consumers pursuant to 
                        subsection (b)(2); or
                            ``(iii) a combination the purposes 
                        described in clauses (i) and (ii); and
                    ``(B) except as provided in paragraph (2)--
                            ``(i) decrease by the same quantity for the 
                        following vintage year the allocation for the 
                        purpose for which the allocation was increased 
                        pursuant to subparagraph (A); and
                            ``(ii) increase by the same quantity for 
                        the following vintage year the allocation for 
                        the purpose for which the undistributed 
                        allowances were originally allocated.
            ``(2) Excess undistributed allowances.--
                    ``(A) In general.--For each vintage year for which 
                this subsection applies, the Administrator shall 
                determine whether--
                            ``(i) the total quantity of undistributed 
                        allowances for that vintage year that were 
                        allocated pursuant to paragraphs (5)(G) and 
                        (6)(B) of subsection (a), and subsection (c); 
                        exceeds
                            ``(ii) the total quantity of allowances 
                        allocated pursuant to subsections (b)(2) and 
                        (d)(2) for the following vintage year, 
                        decreased by the quantity of allowances for 
                        that following vintage year set aside for the 
                        reserve established by section 778(f).
                    ``(B) Determination of exceedance.--If the 
                Administrator determines under subparagraph (A) that 
                the quantity described in subparagraph (A)(i) exceeds 
                the quantity described in subparagraph (A)(ii)--
                            ``(i) paragraph (1)(B)(ii) shall not apply; 
                        and
                            ``(ii) for each purpose described in 
                        paragraphs (5)(G) and (6)(B) of subsection (a), 
                        and subsection (c), for which undistributed 
                        allowances for a given vintage year were 
                        allocated, the Administrator shall increase the 
                        allocation for the following vintage year by 
                        the quantity that equals the product obtained 
                        by multiplying--
                            ``(iii) the number of undistributed 
                        allowances for that purpose; and
                            ``(iv) the quantity described in 
                        subparagraph (A)(ii) divided by the quantity 
                        described in subparagraph (A)(i).
    ``(f) Remaining Allowances.--After making the allocations of 
emission allowances under subsections (a) through (e) for a calendar 
year, the Administrator shall allocate any emission allowances 
remaining from the total quantity of emission allowances established 
for the calendar year under section 721(a)--
            ``(1) for each of calendar years 2012 through 2025, for 
        auction in accordance with section 778 and deposit in the 
        Deficit Reduction Fund established by section 783; and
            ``(2) for each of calendar years 2026 through 2050, for the 
        program for climate change consumer refunds and low- and 
        moderate-income consumers pursuant to section 776.

``SEC. 772. ELECTRICITY CONSUMERS.

    ``(a) Definitions.--In this section:
            ``(1) CHP savings.--The term `CHP savings' means--
                    ``(A) CHP system savings from a combined heat and 
                power system that commences operation after the date of 
                enactment of this section; and
                    ``(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.
            ``(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).
            ``(3) 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 those 2 
        fuels.
            ``(4) 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.
            ``(5) Electricity local distribution company.--The term 
        `electricity local distribution company' means an electric 
        utility--
                    ``(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; and
                    ``(B) the retail rates of which, except in the case 
                of an electric cooperative, are regulated or set by--
                            ``(i) a State regulatory authority;
                            ``(ii) a State or political subdivision 
                        thereof (or an agency or instrumentality of, or 
                        corporation wholly owned by, either of the 
                        foregoing); or
                            ``(iii) an Indian tribe pursuant to tribal 
                        law.
            ``(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--
                    ``(A) customer facility savings of electricity, 
                adjusted to reflect any associated increase in fuel 
                consumption at the facility;
                    ``(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;
                    ``(C) CHP savings; and
                    ``(D) fuel cell savings.
            ``(7) 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.
            ``(8) 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--
                    ``(A) the fuel cell meets such requirements 
                relating to efficiency and other operating 
                characteristics as the Federal Energy Regulatory 
                Commission may promulgate by regulation; and
                    ``(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.
            ``(9) Independent power production facility.--The term 
        `independent power production facility' means a facility--
                    ``(A) that is used for the generation of electric 
                energy, at least 80 percent of which is sold at 
                wholesale; and
                    ``(B) the sales of the output of which are not 
                subject to retail rate regulation or setting of retail 
                rates by--
                            ``(i) a State regulatory authority;
                            ``(ii) a State or political subdivision 
                        thereof (or an agency or instrumentality of, or 
                        corporation wholly owned by, either of the 
                        foregoing);
                            ``(iii) an electric cooperative; or
                            ``(iv) an Indian tribe pursuant to tribal 
                        law.
            ``(10) Long-term contract generator.--
                    ``(A) In general.--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--
                            ``(i) a covered entity; and
                            ``(ii) as of the date of enactment of this 
                        title--
                                    ``(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 were affiliates of one 
                                another at the time at which the 
                                agreements were entered into; or
                                    ``(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 were 
                                affiliates of one another at the time 
                                at which the agreements were entered 
                                into.
                    ``(B) Affiliate.--In this paragraph, the term 
                `affiliate', when used in relation to a covered entity, 
                means another entity that directly or indirectly owned 
                or controlled, was owned or controlled by, or that had 
                50 percent or more of its equity interests under common 
                ownership or control with, the covered entity.
            ``(11) Merchant coal unit.--The term `merchant coal unit' 
        means a coal-fueled unit that--
                    ``(A) is or is part of a covered entity;
                    ``(B) is not owned by a Federal, State, or regional 
                agency or power authority; and
                    ``(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--
                            ``(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; and
                            ``(ii) is not subject to retail rate 
                        regulation or setting of retail rates by--
                                    ``(I) a State regulatory authority;
                                    ``(II) a State or political 
                                subdivision thereof (or an agency or 
                                instrumentality of, or corporation 
                                wholly owned by, either of the 
                                foregoing);
                                    ``(III) an electric cooperative; or
                                    ``(IV) an Indian tribe pursuant to 
                                tribal law.
            ``(12) 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 (11)(C).
            ``(13) 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 January 1, 2013.
            ``(14) New merchant coal unit.--The term `new merchant coal 
        unit' means a merchant coal unit--
                    ``(A) that commenced operation on or after January 
                1, 2009 and before January 1, 2013; and
                    ``(B) the actual, on-site construction of which 
                commenced prior to January 1, 2009.
            ``(15) Qualified hydropower.--The term `qualified 
        hydropower' means--
                    ``(A) energy produced from increased efficiency 
                achieved, or additions of capacity made, on or after 
                January 1, 1988, 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; or
                    ``(B) energy produced from generating capacity 
                added to a dam on or after January 1, 1988, provided 
                that the Federal Energy Regulatory Commission certifies 
                that--
                            ``(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;
                            ``(ii) the hydroelectric project installed 
                        on the dam is licensed (or is exempt from 
                        licensing) by the Federal Energy Regulatory 
                        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; 
                        and
                            ``(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.
            ``(16) 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)).
            ``(17) Renewable energy resource.--The term `renewable 
        energy resource' means each of the following:
                    ``(A) Wind energy.
                    ``(B) Solar energy.
                    ``(C) Geothermal energy.
                    ``(D) Renewable biomass.
                    ``(E) Biogas derived exclusively from renewable 
                biomass.
                    ``(F) Biofuels derived exclusively from renewable 
                biomass.
                    ``(G) Qualified hydropower.
                    ``(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).
            ``(18) 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.
            ``(19) 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)).
            ``(20) 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)).
    ``(b) Electricity Local Distribution Companies.--
            ``(1) Distribution of allowances.--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 771(a)(1)(A). 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 771(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), on the 
        condition that the Administrator shall be authorized to 
        distribute future vintage year allowances available to long-
        term contract generators under subsection (d) in the case of a 
        shortfall of allowances in any vintage year, subject to section 
        772(d)(2). 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.
            ``(2) Distribution based on emissions.--
                    ``(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).
                    ``(B) Base period.--
                            ``(i) Vintage years 2012 and 2013.--For 
                        vintage years 2012 and 2013, an electricity 
                        local distribution company's base period shall 
                        be--
                                    ``(I) calendar years 2006 through 
                                2008;
                                    ``(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; or
                                    ``(III) calendar year 2012, in the 
                                case of a local distribution company 
                                that--
                                            ``(aa) is located outside 
                                        of the Pacific Northwest (as 
                                        defined in section 3 of the 
                                        Pacific Northwest Electric 
                                        Power Planning and Conservation 
                                        Act (16 U.S.C. 839a)), and 
                                        purchased long-term excess 
                                        Federal power and Hungry Horse 
                                        Reservation power from the 
                                        Bonneville Power 
                                        Administration; and
                                            ``(bb) will no longer have 
                                        long-term excess Federal power 
                                        or Hungry Horse Reservation 
                                        power from the Bonneville Power 
                                        Administration after October 1, 
                                        2011.
                            ``(ii) Vintage years 2014 and thereafter.--
                        For vintage years 2014 and thereafter, the base 
                        period shall be--
                                    ``(I) the base period selected 
                                under clause (i); or
                                    ``(II) calendar year 2012, in the 
                                case of--
                                            ``(aa) 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, on the 
                                        condition that such company 
                                        timely informs the 
                                        Administrator of its election 
                                        to use 2012 as its base period; 
                                        or
                                            ``(bb) any small local 
                                        distribution company that is 
                                        located outside of the Pacific 
                                        Northwest (as defined in 
                                        section 3 of the Pacific 
                                        Northwest Electric Power 
                                        Planning and Conservation Act 
                                        (16 U.S.C. 839a)), that 
                                        purchased long-term excess 
                                        Federal power and Hungry Horse 
                                        Reservation power from the 
                                        Bonneville Power 
                                        Administration, and that will 
                                        no longer have long-term excess 
                                        Federal power or Hungry Horse 
                                        Reservation power from the 
                                        Bonneville Power Administration 
                                        after October 1, 2011, on the 
                                        condition that such company 
                                        timely informs the 
                                        Administrator of its election 
                                        to use 2012 as its base period.
                    ``(C) Determination of emissions.--
                            ``(i) Determination for 1999-2008.--As part 
                        of the regulations promulgated pursuant to 
                        subsection (g), 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.
                            ``(ii) Adjustments for new coal-fueled 
                        units.--
                                    ``(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.
                                    ``(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.
                            ``(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:
                                    ``(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.
                                    ``(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.
            ``(3) Distribution based on deliveries.--
                    ``(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.
                    ``(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--
                            ``(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); and
                            ``(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.
            ``(4) Prohibition against excess distributions.--The 
        regulations promulgated under subsection (g) 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).
            ``(5) Use of allowances.--
                    ``(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.
                    ``(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--
                            ``(i) among ratepayer classes ratably based 
                        on electricity deliveries to each class; and
                            ``(ii) equitably among individual 
                        ratepayers within each ratepayer class, 
                        including entities that receive emission 
                        allowances pursuant to part F.
                    ``(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.
                    ``(D) Residential and 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 residential or 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--
                            ``(i) shall pass through to residential 
                        retail ratepayers as a class their ratable 
                        share (based on deliveries to each ratepayer 
                        class) of the value of the emission allowances 
                        that reduce electricity cost impacts on such 
                        ratepayers; and
                            ``(ii) shall pass through to industrial 
                        ratepayers as a class their ratable share 
                        (based on deliveries to each ratepayer class) 
                        of the value of the emission allowances that 
                        reduce electricity cost impacts on such 
                        ratepayers. The electricity local distribution 
                        company may do so based on the quantity of 
                        electricity delivered to individual industrial 
                        retail ratepayers.
                    ``(E) Guidelines.--As part of the regulations 
                promulgated under subsection (g), the Administrator 
                shall, after consultation with State and tribal 
                regulatory authorities, prescribe guidelines for the 
                implementation of the requirements of this paragraph. 
                Such guidelines shall include--
                            ``(i) requirements to ensure that 
                        residential and 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; and
                            ``(ii) requirements for measurement, 
                        verification, reporting, and approval of 
                        methods used to assure the use of allowance 
                        values to benefit retail ratepayers.
            ``(6) Regulatory proceedings.--
                    ``(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--
                            ``(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); and
                            ``(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.
                    ``(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.
            ``(7) Plans and reporting.--
                    ``(A) Regulations.--As part of the regulations 
                promulgated under subsection (g), the Administrator 
                shall prescribe requirements governing plans and 
                reports to be submitted in accordance with this 
                paragraph.
                    ``(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.
                    ``(C) Reports.--Not later than June 30, 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--
                            ``(i) a description of sales, transfer, 
                        exchange, or use by the company for compliance 
                        with obligations under this title, of any such 
                        emission allowances;
                            ``(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;
                            ``(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; and
                            ``(iv) such other information as the 
                        Administrator may require pursuant to 
                        subparagraph (A).
                    ``(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.
            ``(8) Administrator audit reports.--
                    ``(A) In general.--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 residential and 
                industrial retail ratepayers (including entities that 
                receive emission allowances under part F) receive their 
                ratable share of the value of such allowances. The 
                Administrator shall assess the degree to which electric 
                local distribution companies have maintained a marginal 
                electric price signal while protecting consumers on 
                total cost using the value of emissions 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.
                    ``(B) GAO audit report.--Not later than April 30, 
                2015, and every 3 years thereafter through 2026, the 
                Comptroller General of the United States, incorporating 
                results from the Administrators' audit report and other 
                relevant information including distribution company 
                reports, shall conduct an in-depth evaluation and make 
                available to the public a report on the investments 
                made pursuant to paragraph (5). Said report shall be 
                made available to the State regulatory authority, or 
                the entity with authority to regulate or set retail 
                electricity rates in the case of an electricity 
                distribution company that is not regulated by a State 
                regulatory authority, and shall include a description 
                of how the distribution companies in the audit meet or 
                fail to meet the requirement of paragraph (5), 
                including for investments made in cost-effective end-
                use energy efficiency programs, the lifetime and annual 
                energy saving benefits, and capacity benefits of said 
                programs.
                    ``(C) Administrator cost containment report.--Not 
                later than April 30, 2015 and every 3 years thereafter 
                through 2026, the Administrator shall transmit a report 
                to Congress containing an evaluation of the disposition 
                of the value of emission allowances received pursuant 
                to this subsection and subsection (e) and 
                recommendations of ways to more effectively direct the 
                value of allowances to reduce costs for consumers, 
                contain the overall costs of the greenhouse gas 
                emissions reduction program, and meet the pollution 
                reduction targets of the Act. The Administrator shall 
                make available to the public such report, including by 
                publishing such report on the Internet.
            ``(9) Enforcement.--A violation of any requirement of this 
        subsection or of subsection (e), irrespective of approval by a 
        State regulatory authority, 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.
    ``(c) Merchant Coal Units.--
            ``(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--
                    ``(A) captured and sequestered in such calendar 
                year; or
                    ``(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.
            ``(2) Base period.--For purposes of this subsection, the 
        base period for a merchant coal unit shall be--
                    ``(A) calendar years 2006 through 2008; or
                    ``(B) in the case of a new merchant coal unit--
                            ``(i) the first full calendar year of 
                        operation of such unit, if such unit commences 
                        operation before January 1, 2012;
                            ``(ii) calendar year 2012, if such unit 
                        commences operation on or after January 1, 
                        2012, and before October 1, 2012; or
                            ``(iii) calendar year 2013, if such unit 
                        commences operation on or after October 1, 
                        2012, and before January 1, 2013.
            ``(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 771(a)(1). Such factor 
        shall--
                    ``(A) for vintage year 2012, be equal to 1.0;
                    ``(B) for each of vintage years 2013 through 2029, 
                correspond to the quotient of--
                            ``(i) the quantity of emission allowances 
                        allocated under section 771(a)(1) for such 
                        vintage year; divided by
                            ``(ii) the quantity of emission allowances 
                        allocated under section 771(a)(1) for vintage 
                        year 2012.
            ``(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)(11)(C) in an 
        amount equal to the product of--
                    ``(A) 0.5;
                    ``(B) the qualifying emissions for such merchant 
                coal unit for the preceding year, as determined under 
                paragraph (1); and
                    ``(C) the phase-down factor for the preceding 
                calendar year, as identified under paragraph (3).
            ``(5) Adjustment.--
                    ``(A) Study.--Not later than 5 years after the date 
                of enactment of the Clean Energy Jobs and American 
                Power Act, the Administrator, in consultation with the 
                Federal Energy Regulatory Commission, shall issue a 
                study to determine whether the allocation formula under 
                paragraph (3) is resulting in windfall profits to 
                merchant coal generators or substantially disparate 
                treatment of merchant coal generators operating in 
                different markets or regions.
                    ``(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.
            ``(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 771(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 771(a)(1) for such 
        vintage year ratably among merchant coal generators based on 
        the applicable formula under paragraph (4) or (5).
            ``(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).
    ``(d) Long-term Contract Generators.--
            ``(1) Distribution.--Not later than March 1, 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--
                    ``(A) the number of tons of carbon dioxide emitted 
                as a result of a qualifying electricity sales agreement 
                referred to in subsection (a)(10)(B)(i); and
                    ``(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)(10)(B)(ii), provided that in no event shall the 
                Administrator distribute more than 1 emission allowance 
                for the same ton of emissions.
            ``(2) Limitation on allowances.--
                    ``(A) In general.--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 771(a)(1).
                    ``(B) Future vintage year allowances.--
                            ``(i) In general.--To the extent that any 
                        quantity of allowances that would otherwise be 
                        distributed pursuant to paragraph (1) would 
                        exceed 4.3 percent in any vintage year, the 
                        Administrator shall distribute future vintage 
                        year allowances reserved for long-term contract 
                        generators under this section to satisfy any 
                        such shortfall in available allowances, subject 
                        to projections by the Administrator of required 
                        allowance needs for long-term contract 
                        generators in future vintage years.
                            ``(ii) Maintenance of year.--Future vintage 
                        year allowances distributed pursuant to this 
                        subsection shall maintain the future vintage 
                        year assigned to those allowances.
                    ``(C) Shortfall.--If the quantity of emission 
                allowances that would otherwise be distributed pursuant 
                to paragraph (1) for any vintage year would result in a 
                shortfall based on a consideration of available 
                allowances under this subsection over the entire 
                allocation period, as determined by the Administrator, 
                the Administrator shall distribute the emission 
                allowances available for distribution under section 
                771(a)(1) for such vintage year ratably among long-term 
                contract generators in accordance with paragraph (1).
            ``(3) Eligibility.--
                    ``(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)(10).
                    ``(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)(10)(B) upon the earliest date that such 
                agreement--
                            ``(i) expires;
                            ``(ii) is terminated; or
                            ``(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.
            ``(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:
                    ``(A) A certificate of representation described in 
                section 700(15).
                    ``(B) An identification of each owner and each 
                operator of the facility.
                    ``(C) An identification of the units at the 
                facility and the location of the facility.
                    ``(D) A written certification by the designated 
                representative that the facility meets all the 
                requirements of the definition of a long-term contract 
                generator.
                    ``(E) The expiration date of each qualifying 
                electricity or thermal sales agreement referred to in 
                subsection (a)(10)(B).
                    ``(F) A copy of each qualifying electricity or 
                thermal sales agreement referred to in subsection 
                (a)(10)(B).
            ``(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.
    ``(e) Small LDCs.--
            ``(1) Distribution.--The Administrator shall, in accordance 
        with this subsection, distribute emission allowances allocated 
        pursuant to section 771(a)(1)(B) 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.
            ``(2) Uses.--A small LDC receiving allowances under this 
        section shall use such allowances exclusively for the following 
        purposes:
                    ``(A) Cost-effective programs to achieve 
                electricity savings, provided that such savings shall 
                not be transferred or used for compliance with any 
                renewable electricity standard established under the 
                Public Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2601 et seq.).
                    ``(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 the Public Utility Regulatory 
                Policies Act of 1978 (16 U.S.C. 2601 et seq.).
                    ``(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)).
                    ``(D) Costs of compliance associated with the 
                enactment of this title.
            ``(3) Requirements.--As part of the regulations promulgated 
        under subsection (g), the Administrator shall prescribe--
                    ``(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 by law;
                    ``(B) eligibility criteria and guidelines for 
                consumer assistance programs for low-income residential 
                ratepayers under paragraph (2)(C); and
                    ``(C) such other requirements as the Administrator 
                determines appropriate to ensure compliance with the 
                requirements of this subsection.
            ``(4) Reporting.--Reports submitted under subsection (b)(7) 
        shall include, in accordance with such requirements as the 
        Administrator may prescribe--
                    ``(A) a description of any facilities deployed 
                under paragraph (2)(A), the quantity of resulting 
                electricity generation from renewable energy resources;
                    ``(B) an assessment demonstrating the cost-
                effectiveness of, and electricity savings achieved by, 
                programs supported under paragraph (2)(B); and
                    ``(C) a description of assistance provided to low-
                income retail ratepayers under paragraph (2)(C).
    ``(f) Rural Electric Cooperatives, Consumer, or Publicly Owned 
Small LDCs.--
            ``(1) Distribution.--
                    ``(A) In general.--The Administrator shall, in 
                accordance with this subsection, distribute emission 
                allowances allocated pursuant to section 771(d)(7) for 
                the following vintage year.
                    ``(B) Method.--Allowances described in subparagraph 
                (A) shall be distributed ratably, among rural electric 
                cooperatives and consumer-owned or publicly owned 
                electricity local distribution companies that meet the 
                definition of the term `small LDC' based on historic 
                emissions, in accordance with the same measure of those 
                emissions applied to each such rural electric 
                cooperative for the relevant vintage year under 
                subsection (b)(2).
            ``(2) Uses.--A small LDC receiving allowances under this 
        section shall use the allowances only for--
                    ``(A) cost-effective programs to achieve 
                electricity savings, on the condition that such savings 
                shall not be transferred or used for compliance with 
                any renewable electricity standard established under 
                the Public Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2601 et seq.);
                    ``(B) deployment of technologies to generate 
                electricity from renewable energy resources, on the 
                condition that any Federal renewable electricity 
                credits issued based on generation supported under this 
                section shall--
                            ``(i) be submitted to the Federal Energy 
                        Regulatory Commission for voluntary retirement; 
                        and
                            ``(ii) not be used for compliance with the 
                        Public Utility Regulatory Policies Act of 1978 
                        (16 U.S.C. 2601 et seq.); and
                    ``(C) assistance programs to reduce electricity 
                costs for low-income residential ratepayers of the 
                small LDC, on the condition that the 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 defined in section 
                673 of the Community Services Block Grant Act (42 
                U.S.C. 9902).
    ``(g) 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.

``SEC. 773. NATURAL GAS CONSUMERS.

    ``(a) Definition.--For purposes of this section, 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.
    ``(b) Allocation.--Not later than June 30, 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 771(a)(2). Such allowances 
shall be distributed among local natural gas distribution companies 
based on the following formula:
            ``(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 on a pro rata basis based on each such company's 
        annual average retail natural gas deliveries for 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.
            ``(2) Updating.--Prior to distributing 2019 vintage 
        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 on a pro rata basis 
        among natural gas local distribution companies based on the 
        product of--
                    ``(A) each natural gas local distribution company's 
                average annual natural gas deliveries per customer 
                during calendar years 2006 through 2008, or during the 
                3 alternative consecutive years selected by such 
                company under paragraph (1); and
                    ``(B) the number of customers of such natural gas 
                local distribution company in the most recent year in 
                which the formula is updated under this paragraph.
    ``(c) Use of Allowances.--
            ``(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 and may not be 
        used to support natural gas sales or deliveries to entities or 
        persons other than such ratepayers.
            ``(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--
                    ``(A) among ratepayer classes on a pro rata basis 
                based on natural gas deliveries to each class; and
                    ``(B) equitably among individual ratepayers within 
                each ratepayer class.
            ``(3) Limitation.--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.
            ``(4) 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 regulatory 
        authority over retail natural gas rates in the case of a 
        natural gas local distribution company that is not regulated by 
        a State regulatory authority.
            ``(5) 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 to be 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).
            ``(6) Guidelines.--As part of the regulations promulgated 
        under subsection (h), the Administrator shall prescribe 
        specific guidelines for the implementation of the requirements 
        of this subsection.
    ``(d) Regulatory Proceedings.--
            ``(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 such company, or the entity with authority to 
        regulate retail rates of a natural gas local distribution 
        company not regulated by a State regulatory authority, has--
                    ``(A) 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 subsection (c); and
                    ``(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.
            ``(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, and a new report be made available to 
        the Administrator and the public, pursuant to paragraph (1), 
        not less frequently than every 5 years.
    ``(e) Plans and Reporting.--
            ``(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.
            ``(2) Plans.--Not later than April 30, 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 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.
            ``(3) Reports.--Not later than June 30, 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 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 subsection, 
        including--
                    ``(A) a description of sales, transfer, exchange, 
                or use by the company for compliance with obligations 
                under this title, of any such emission allowances;
                    ``(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;
                    ``(C) the manner in which the company's disposition 
                of emission allowances received under this subsection 
                complies with the requirements of this section, 
                including each of the requirements of subsection (c);
                    ``(D) the cost-effectiveness of, and energy savings 
                achieved by, energy efficiency programs supported 
                through such emission allowances; and
                    ``(E) such other information as the Administrator 
                may require pursuant to paragraph (1).
            ``(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.
    ``(f) Auditing.--
            ``(1) Administrator audit report.--Each year, the 
        Administrator shall audit a significant 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.
            ``(2) GAO audit report.--Not later April 30, 2015 and every 
        3 years thereafter through April 30, 2026, the Comptroller 
        General of the United States, incorporating results from the 
        Administrators' audit report and other relevant information 
        including distribution company reports, shall conduct an in-
        depth evaluation and make available to the public a report on 
        the investments made pursuant to subsection (c). Said report 
        shall be made available to the State regulatory authority, or 
        the entity with authority to regulate or set retail natural gas 
        rates in the case of a natural gas distribution company that is 
        not regulated by a State regulatory authority, and shall 
        include a description how the distribution companies in the 
        audit meet or fail to meet the requirement of subsection (c), 
        including for investments made in cost-effective end-use energy 
        efficiency programs, the lifetime and annual energy saving 
        benefits, and capacity benefits of said programs.
            ``(3) Administrator cost containment report.--Not later 
        April 30, 2015, and every 3 years thereafter through April 30, 
        2026, the Administrator shall transmit a report to Congress 
        containing an evaluation of the disposition of the value of 
        emission allowances received pursuant to this subsection and 
        recommendations of ways to more effectively direct the value of 
        allowances to reduce costs for consumers, contain the overall 
        costs of the greenhouse gas emissions reduction program, and 
        meet the pollution reduction targets of the Act. The 
        Administrator shall make available to the public such report, 
        including by publishing such report on the Internet.
    ``(g) Enforcement.--A violation of any requirement of this section, 
irrespective of approval by a State regulatory authority, 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.
    ``(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.

``SEC. 774. HOME HEATING OIL AND PROPANE CONSUMERS.

    ``(a) Definitions.--For purposes of this section:
            ``(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.
            ``(2) Cost-effective.--The term `cost-effective' has the 
        meaning given that term in section 773(a).
    ``(b) Allocation.--The Administrator shall distribute among the 
States, in accordance with this section, the quantity of emission 
allowances allocated pursuant to section 771(a)(3). The Administrator 
shall distribute a percentage of such allowances determined by the 
Administrator, after consultation with the Secretary of the Interior, 
pursuant to subsection (f).
    ``(c) Distribution Among States.--The Administrator shall 
distribute emission allowances among the States under this section each 
year on a pro rata basis based on the ratio of--
            ``(1) the carbon content of home heating oil and propane 
        sold to consumers within each State in the preceding year for 
        residential or commercial uses; to
            ``(2) the carbon content of home heating oil and propane 
        sold to consumers within the United States in the preceding 
        year for residential or commercial uses.
    ``(d) Use of Allowances.--
            ``(1) In general.--States shall use emission allowances 
        distributed under this section exclusively for the benefit of 
        consumers of home heating oil or propane for residential or 
        commercial purposes. Such proceeds shall be used exclusively 
        for--
                    ``(A) cost-effective energy efficiency programs for 
                consumers that use home heating oil or propane for 
                residential or commercial purposes; or
                    ``(B) rebates or other direct financial assistance 
                programs for consumers of home heating oil or propane 
                used for residential or commercial purposes.
            ``(2) Administration and delivery mechanisms.--In 
        administering programs supported by this section, States 
        shall--
                    ``(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;
                    ``(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; and
                    ``(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.
    ``(e) 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--
            ``(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;
            ``(2) demonstrates the cost-effectiveness of, and the 
        energy savings achieved by, energy efficiency programs 
        supported under this section; and
            ``(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.
    ``(f) Distribution to Indian Tribes.--Not later than 18 months 
after the date of enactment of this title, the Administrator shall, in 
consultation with the Secretary of the Interior and Indian tribes, 
promulgate regulations establishing a program to distribute the 
emission allowances made available to Indian tribes under this section.
    ``(g) Enforcement.--
            ``(1) In general.--If the Administrator determines that a 
        State or Indian tribe 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 or Indian tribe 
        failed to use in accordance with the requirements of this 
        section, that such State or Indian tribe would otherwise be 
        eligible to receive under this section in later years.
            ``(2) Withheld allowances.--
                    ``(A) States.--Allowances withheld from States 
                pursuant to this subsection shall be distributed among 
                the remaining States on a pro rata basis in accordance 
                with the formula in subsection (c).
                    ``(B) Indian tribes.--Allowances withheld from 
                Indian tribes pursuant to this subsection shall be 
                distributed among the remaining Indian tribes on a pro 
                rata basis in accordance with the program established 
                under subsection (f).

``SEC. 775. DOMESTIC FUEL PRODUCTION.

    ``(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.
    ``(b) Definitions.--In this section:
            ``(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.
            ``(2) Petroleum refinery.--The term `petroleum refinery' 
        means a facility classified under code 324110 of the North 
        American Industrial Classification System of 2002.
            ``(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.
    ``(c) Distribution of Allowances.--The Administrator shall 
distribute allowances pursuant to this section to owners and operators 
of petroleum refineries, including small business refiners, in the 
United States.
    ``(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.
    ``(e) Regulations.--
            ``(1) In general.--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 in accordance with 
        the purpose of this section that establish separate formulas 
        for distribution of emission allowances provided to--
                    ``(A) petroleum refineries pursuant to section 
                771(a)(4)(A); and
                    ``(B) small business refiners pursuant to section 
                771(a)(4)(B).
            ``(2) Considerations.--In establishing the formulas under 
        paragraph (1), the Administrator shall consider--
                    ``(A) the relative complexity of refinery processes 
                and appropriate mechanisms to take energy efficiency 
                and greenhouse gas reductions into account;
                    ``(B) direct emissions from fuel combustion;
                    ``(C) process emissions;
                    ``(D) indirect emissions for the generation of 
                electricity, steam, and hydrogen used to produce the 
                output of a petroleum refinery; and
                    ``(E) emissions from the combustion of products 
                produced at a petroleum refinery or by the petroleum 
                refinery sector.
            ``(3) Excess distribution.--If the electricity provider for 
        a petroleum refinery received a free allocation of emission 
        allowances pursuant to section 771(a)(1), the Administrator 
        shall take the free allocation into account when establishing 
        the applicable formula under this subsection to avoid rebates 
        to a petroleum refinery for costs that the Administrator 
        determines were not incurred by the petroleum refinery because 
        the allowances were--
                    ``(A) freely allocated to the electricity provider 
                of the petroleum refinery; and
                    ``(B) used for the benefit of the petroleum 
                refinery.

``SEC. 776. CONSUMER PROTECTION.

    ``(a) Consumer Rebates.--
            ``(1) Establishment of fund.--There is established in the 
        Treasury a separate account, to be known as the `Consumer 
        Rebate Fund').
            ``(2) Availability of amounts.--All amounts deposited in 
        the Consumer Rebate Fund shall be available without further 
        appropriation or fiscal year limitation.
            ``(3) Distribution of amounts.--Beginning in 2026, for each 
        year after deposits are made in the Consumer Rebate Fund 
        pursuant to section 771(b)(2)(A), the President shall use the 
        funds in accordance with Federal statutory authority to provide 
        relief to consumers and others affected by the enactment of the 
        Clean Energy Jobs and American Power Act (and amendments made 
        by that Act).
    ``(b) Energy Refund Program.--
            ``(1) Establishment of fund.--There is established in the 
        Treasury a separate account, to be known as the `Energy Refund 
        Account').
            ``(2) Availability of amounts.--All amounts deposited in 
        the Energy Refund Account shall be available without further 
        appropriation or fiscal year limitation.
            ``(3) Distribution of amounts.--For each year after 
        deposits are made to the Energy Refund Account pursuant to 
        section 771(b)(2)(B), the President shall use the funds in 
        accordance with Federal statutory authority to offset energy 
        cost impacts on low- and moderate-income households.

``SEC. 777. EXCHANGE FOR STATE-ISSUED ALLOWANCES.

    ``(a) In General.--Not later than 1 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 the later of December 31, 2011, or 
the date that is 9 months after the first auction under section 778, 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).
    ``(b) Regulations.--Regulations issued under subsection (a) shall--
            ``(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;
            ``(2) establish a deadline by which persons must exchange 
        the State allowances;
            ``(3) provide that the Federal emission allowances 
        disbursed pursuant to this section shall be deducted from the 
        allowances to be auctioned pursuant to section 771(b); and
            ``(4) require that, once exchanged, the credit or other 
        instrument be retired for purposes of use under the program by 
        or for which it was originally issued.
    ``(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.

``SEC. 778. 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.
    ``(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:
            ``(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.
            ``(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 4 years after the year 
        in which the auction is being conducted.
            ``(3) Auction format.--Auctions shall follow a single-
        round, sealed-bid, uniform price format.
            ``(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.
            ``(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.
            ``(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.
            ``(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.
            ``(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.
    ``(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.
    ``(d) Reserve Auction Price.--The minimum reserve auction price 
shall be $10 (in constant 2005 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).
    ``(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.
    ``(f) Small Business Refiner Reserve.--The Administrator shall, in 
accordance with this subsection, issue regulations setting aside a 
specified number of allowances, as determined by the Administrator, 
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:
            ``(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 under section 771 in an 
        amount equal to--
                    ``(A) for each of vintage years 2012 and 2013, 6.2 
                percent of the emission allowances established under 
                section 721(a);
                    ``(B) for each of vintage years 2014 and 2015, 5.4 
                percent of the emission allowances established under 
                section 721(a); and
                    ``(C) for each of vintage years 2016 through 2024, 
                4.9 percent of the emission allowances established 
                under section 721(a).
            ``(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 775(b)) 
        may purchase allowances from this reserve at the price 
        determined pursuant to paragraph (3).
            ``(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.
            ``(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.
            ``(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.
            ``(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.

``SEC. 779. AUCTIONING ALLOWANCES FOR OTHER ENTITIES.

    ``(a) Consignment.--Any entity holding emission allowances or 
compensatory allowances may request that the Administrator auction, 
pursuant to section 778, the allowances on consignment.
    ``(b) Pricing.--When the Administrator acts under this section as 
the agent of an entity in possession of emission allowances, the 
Administrator is not obligated to obtain the highest price possible for 
the emission allowances, and instead shall auction consignment 
allowances in the same manner and pursuant to the same rules as 
auctions of other allowances under section 778. 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 778(d).
    ``(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.
    ``(d) Regulations.--The Administrator shall issue regulations 
within 24 months after the date of enactment of this title to implement 
this section.

``SEC. 780. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND PERMANENT 
              SEQUESTRATION TECHNOLOGIES.

    ``(a) Definitions.--In this section:
            ``(1) Carbon capture and permanent sequestration.--The term 
        `carbon capture and permanent sequestration' shall--
                    ``(A) have such meaning as the Administrator shall 
                determine by regulation; and
                    ``(B) include--
                            ``(i) permanent geological sequestration; 
                        and
                            ``(ii) conversion of captured carbon 
                        dioxide to a stable form that will safely and 
                        permanently sequester the carbon dioxide.
            ``(2) Enhanced hydrocarbon recovery.--
                    ``(A) In general.--The term `enhanced hydrocarbon 
                recovery' means a process by which oil, methane, or 
                other natural gases are recovered by the injection of 
                carbon dioxide into a geologic formation.
                    ``(B) Exclusion.--The term `enhanced hydrocarbon 
                recovery' does not include the in situ generation of a 
                new hydrocarbon.
            ``(3) Qualifying electric generating unit.--The term 
        `qualifying electric generating unit' means an electric utility 
        unit--
                    ``(A) that derives at least 50 percent of the 
                annual fuel input of the unit from--
                            ``(i) coal or waste coal;
                            ``(ii) petroleum coke; or
                            ``(iii) any combination of those 2 fuels; 
                        and
                    ``(B)(i) that has a nameplate capacity of 200 
                megawatts or more; or
                    ``(ii) in the case of retrofit applications, the 
                carbon capture and permanent sequestration technology 
                of which is applied to the flue gas or fuel gas stream 
                from at least 200 megawatts of the total nameplate 
                generating capacity of the unit.
            ``(4) Qualifying industrial source.--The term `qualifying 
        industrial source' means a source that--
                    ``(A) is not a qualifying electric generating unit;
                    ``(B) absent carbon capture and permanent 
                sequestration, would emit greater than 50,000 tons per 
                year of carbon dioxide; and
                    ``(C) does not produce a liquid transportation fuel 
                from a solid fossil-based feedstock.
            ``(5) Treated generating capacity.--
                    ``(A) In general.--The term `treated generating 
                capacity' means the portion of the total generating 
                capacity of an electric generating unit (or industrial 
                source, measured by such method as the Administrator 
                may designate to be equivalent to the calculation under 
                subparagraph (B)) for which the flue gas or fuel gas is 
                treated by the carbon capture and permanent 
                sequestration technology.
                    ``(B) Calculation.--In determining the treated 
                portion of flue gas or fuel gas of an electric 
                generating unit under subparagraph (A), the 
                Administrator shall multiply the nameplate capacity of 
                the unit by the ratio that--
                            ``(i) the mass of flue gas or fuel gas that 
                        is treated by the carbon capture and permanent 
                        sequestration technology; bears to
                            ``(ii) the total mass of the flue gas or 
                        fuel gas that is produced when the unit is 
                        operating at maximum capacity.
    ``(b) 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 under 
section 771(a)(6), pursuant to the requirements of this section, to 
support the commercial deployment of carbon capture and permanent 
sequestration technologies in electric power generation and industrial 
operations.
    ``(c) Eligibility Criteria and Method of Distribution.--
            ``(1) Eligibility.--For an owner or operator of a project 
        to be eligible to receive emission allowances under this 
        section, the project shall--
                    ``(A) implement carbon capture and permanent 
                sequestration technology--
                            ``(i) at a qualifying electric generating 
                        unit that, upon implementation of the carbon 
                        capture and permanent sequestration technology, 
                        will achieve an emission limitation that is at 
                        least a 50-percent reduction in emissions of 
                        the carbon dioxide produced by--
                                    ``(I) the unit, measured on an 
                                annual basis, as determined by the 
                                Administrator; or
                                    ``(II) in the case of retrofit 
                                applications described in subsection 
                                (a)(2)(B)(ii), the treated portion of 
                                flue gas from the unit, measured on an 
                                annual basis, as determined by the 
                                Administrator; or
                            ``(ii) at a qualifying industrial source 
                        that, upon implementation, will achieve an 
                        emission limitation that is at least a 50-
                        percent reduction in emissions of the carbon 
                        dioxide produced by the emission point, 
                        measured on an annual basis, as determined by 
                        the Administrator;
                    ``(B)(i) geologically sequester carbon dioxide at a 
                site that meets all applicable permitting and 
                certification requirements for permanent geological 
                sequestration; or
                    ``(ii) 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 the carbon dioxide;
                    ``(C) meet all other applicable State, tribal, and 
                Federal permitting requirements; and
                    ``(D) be located in the United States.
            ``(2) Method of distribution.--
                    ``(A) Period.--The Administrator shall distribute 
                emission allowances allocated under section 771(a)(6) 
                to eligible projects for each of the first 10 calendar 
                years for which each eligible project is in commercial 
                operation.
                    ``(B) Bonus allowance formula for electric 
                generating units.--
                            ``(i) Phase i distribution.--For each 
                        project that is certified under subsection (h), 
                        the quantity of emission allowances that the 
                        Administrator shall distribute for a calendar 
                        year to the owner or operator of the eligible 
                        project shall be equal to the quotient obtained 
                        by dividing--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) the number of metric 
                                        tons of carbon dioxide 
                                        emissions avoided through 
                                        carbon capture and permanent 
                                        sequestration of emissions by 
                                        the project for a particular 
                                        year, as determined pursuant to 
                                        such methodology as the 
                                        Administrator shall prescribe 
                                        by regulation; and
                                            ``(bb) a bonus allowance 
                                        value that is assigned to the 
                                        project under subsection 
                                        (d)(2); by
                                    ``(II) the average fair market 
                                value of an emission allowance during 
                                the calendar year preceding the earlier 
                                of--
                                            ``(aa) the year during 
                                        which the project captured and 
                                        sequestered the carbon dioxide 
                                        emissions; or
                                            ``(bb) the year in which 
                                        the project receives an 
                                        advanced distribution of 
                                        emission allowances under 
                                        subsection (h)(3)(B).
                            ``(ii) Phase ii distribution.--For each 
                        project that qualifies under subsection (e), 
                        the quantity of emission allowances that the 
                        Administrator shall distribute for a calendar 
                        year to the owner or operator of the eligible 
                        project shall be determined through--
                                    ``(I) reverse auction, as 
                                prescribed by regulation under 
                                subsection (e)(3); or
                                    ``(II) if the Administrator decides 
                                not to distribute allowances through a 
                                reverse auction, an alternate 
                                distribution method established by 
                                regulation under subsection (e)(4).
                    ``(C) Formula for industrial sources.--For each 
                project that qualifies under subsection (g), the 
                quantity of emission allowances that the Administrator 
                shall distribute for a calendar year to the owner or 
                operator of the eligible project shall be determined in 
                accordance with subsection (g)(2).
                    ``(D) Consistency.--The Administrator shall develop 
                a method of distribution for each category of eligible 
                projects under this paragraph in a manner that is 
                consistent with the certification and distribution 
                requirements under subsection (h).
    ``(d) Phase I Distribution to Electric Generating Units.--
            ``(1) Applicability.--
                    ``(A) In general.--Subject to subparagraph (B), 
                this subsection shall apply to projects that are 
                undertaken at qualifying electric generating units that 
                the Administrator determines to be eligible to receive 
                emission allowances under this section.
                    ``(B) Capacity.--The total cumulative generating 
                capacity of the projects described in subparagraph (A) 
                shall be equal to approximately 20 gigawatts of the 
                treated generating capacity.
            ``(2) Bonus allowance values.--
                    ``(A) First tranche.--
                            ``(i) In general.--The first tranche shall 
                        include the first 10 gigawatts of treated 
                        generating capacity undertaken at qualifying 
                        electric generating units that receive emission 
                        allowances under this section.
                            ``(ii) Certain units.--For an eligible 
                        project achieving carbon capture and permanent 
                        sequestration of 90 percent or more of the 
                        carbon dioxide that otherwise would be emitted 
                        by the unit, the bonus allowance value shall be 
                        $96 per ton of carbon dioxide emissions avoided 
                        through the use of carbon capture and permanent 
                        sequestration.
                            ``(iii) Bonus allowance value.--The 
                        Administrator shall establish, by regulation, a 
                        bonus allowance value for each rate of carbon 
                        capture and permanent sequestration achieved by 
                        an eligible project--
                                    ``(I) beginning at a minimum of $50 
                                per ton for a 50-percent rate; and
                                    ``(II) varying in direct proportion 
                                with increasing rates of carbon capture 
                                and permanent sequestration up to $96 
                                per ton for an 90-percent rate.
                    ``(B) Second tranche.--
                            ``(i) In general.--The second tranche shall 
                        include the second 10 gigawatts of treated 
                        generating capacity undertaken at qualifying 
                        electric generating units that receive emission 
                        allowances under this section.
                            ``(ii) Certain units.--For an eligible 
                        project achieving the carbon capture and 
                        permanent sequestration of 90 percent or more 
                        of the carbon dioxide that otherwise would be 
                        emitted by the eligible project, the bonus 
                        allowance value shall be $85 per ton of carbon 
                        dioxide emissions avoided through the use of 
                        capture and permanent sequestration.
                            ``(iii) Bonus allowance value.--The 
                        Administrator shall establish, by regulation, a 
                        bonus allowance value for each rate of carbon 
                        capture and permanent sequestration achieved by 
                        an eligible project--
                                    ``(I) beginning at a minimum of $50 
                                per ton for a 50-percent rate; and
                                    ``(II) varying in direct proportion 
                                with increasing rates of carbon capture 
                                and permanent sequestration up to $85 
                                per ton for a 90-percent rate.
                    ``(C) Increase in bonus allowance value.--For an 
                eligible project that commences commercial operation by 
                not later than January 1, 2017, and that meets the 
                eligibility criteria under subsection (c), the 
                otherwise-applicable bonus allowance value under this 
                paragraph shall be increased by $10, if the owner or 
                operator of the eligible project submits to the 
                Administrator by not later than January 1, 2012, a 
                notification of the intent to implement carbon capture 
                and permanent sequestration technology at a qualifying 
                electric generating unit in accordance with subsection 
                (c).
                    ``(D) Reduction.--
                            ``(i) In general.--For a carbon capture and 
                        permanent sequestration project sequestering in 
                        a geological formation for purposes of enhanced 
                        hydrocarbon recovery, the Administrator, by 
                        regulation, shall reduce the applicable bonus 
                        allowance value under this paragraph to reflect 
                        the lower net cost of the project, as compared 
                        to permanent sequestration into geological 
                        formations solely for purposes of 
                        sequestration.
                            ``(ii) Assessment of net cost.--For the 
                        purpose of this subparagraph, an assessment of 
                        net cost of a project shall account for the 
                        cost of the injection of carbon dioxide, or 
                        other method of enhanced hydrocarbon recovery, 
                        that would have otherwise been undertaken in 
                        the absence of the carbon capture and permanent 
                        sequestration project under consideration.
                    ``(E) Adjustments.--The Administrator shall 
                annually adjust for monetary inflation the bonus 
                allowance values established under this paragraph.
                    ``(F) Measurement.--The Administrator shall measure 
                the tranches and capture levels for assigning the bonus 
                allowance values under this subsection based on the 
                treated generating capacity of the qualifying electric 
                generating units and qualifying industrial sources that 
                receive emission allowances under this subsection.
                    ``(G) Average fair market value.--
                            ``(i) In general.--The Administrator and 
                        the Secretary of Energy may jointly determine 
                        that the average fair market value for emission 
                        allowances or the bonus allowances have been 
                        too low or too high to achieve efficient and 
                        cost-effective commercial deployment of carbon 
                        capture and permanent sequestration technology 
                        in a given calendar year.
                            ``(ii) Action on determination.--On making 
                        a determination under clause (i), the 
                        Administrator may--
                                    ``(I) promulgate regulations to 
                                adjust the bonus allowance value under 
                                this paragraph; or
                                    ``(II) distribute an appropriate 
                                quantity of emission allowances 
                                allocated under section 771(a)(6) from 
                                any future vintage year.
    ``(e) Phase II Distribution to Electric Generating Units.--
            ``(1) Application.--This subsection shall apply only to the 
        distribution of emission allowances for carbon capture and 
        permanent sequestration projects undertaken at qualifying 
        electric generating units and qualifying industrial sources 
        after the treated generating capacity threshold identified 
        under subsection (d)(1) is reached.
            ``(2) Regulations.--Not later than 2 years before the date 
        on which the capacity threshold identified in subsection (d)(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.
            ``(3) Reverse auctions.--
                    ``(A) In general.--Except as provided in paragraph 
                (4), the regulations promulgated pursuant to paragraph 
                (2) shall provide for the distribution of emission 
                allowances to the owners or operators of eligible 
                projects under this subsection through at least 2 
                reverse auctions, each of which shall be held not less 
                frequently than once each calendar year.
                    ``(B) Requirements.--
                            ``(i) Projects at industrial sources.--The 
                        Administrator shall annually establish a 
                        reverse auction for projects at industrial 
                        sources, which may not participate in other 
                        auctions.
                            ``(ii) Other auctions.--The Administrator 
                        may establish a separate auction for each of 
                        not more than 5 different project categories, 
                        as defined based on--
                                    ``(I) coal type;
                                    ``(II) capture technology;
                                    ``(III) geological formation type;
                                    ``(IV) new unit versus retrofit 
                                application;
                                    ``(V) such other factors as the 
                                Administrator may prescribe; or
                                    ``(VI) any combination of the 
                                factors described in subclauses (I) 
                                through (V).
                            ``(iii) Efficient distribution.--The 
                        Administrator shall establish procedures for 
                        the auction of emission allowances under this 
                        subparagraph to ensure that the establishment 
                        of separate auctions for different project 
                        categories will not unduly impede the efficient 
                        and expeditious distribution of emission 
                        allowances to eligible projects under this 
                        subsection.
                            ``(iv) Minimum rates.--The Administrator 
                        may establish appropriate minimum rates of 
                        carbon capture and permanent sequestration for 
                        the treated generating capacity of a project in 
                        implementing this subparagraph.
                    ``(C) Auction process.--At each reverse auction 
                under this paragraph--
                            ``(i) the Administrator shall solicit bids 
                        from eligible projects;
                            ``(ii) owners or operators of eligible 
                        projects participating in the auction shall 
                        submit a bid, including the desired level of 
                        carbon dioxide permanent sequestration 
                        incentive per ton and the estimated quantity of 
                        carbon dioxide that the project will 
                        permanently sequester during a 10-year period; 
                        and
                            ``(iii) the Administrator shall select bids 
                        within each auction for the permanent 
                        sequestration quantity submitted, beginning 
                        with the eligible project for which the bid is 
                        submitted for the lowest level of permanent 
                        sequestration incentive on a per-ton basis and 
                        meeting such other requirements as the 
                        Administrator may specify, until the amounts 
                        available for the reverse auction are 
                        committed.
                    ``(D) 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 the formula contained in 
                subsection (c)(2)(B), except that the bonus allowance 
                value that is bid by the applicable entity shall be 
                substituted for the bonus allowance values described in 
                subsection (c)(2).
            ``(4) Alternative distribution method.--
                    ``(A) In general.--If the Administrator determines 
                that a reverse auction will not result in efficient and 
                cost-effective commercial deployment of carbon capture 
                and permanent sequestration technologies, the 
                Administrator, pursuant to regulations under paragraph 
                (2) or (5), shall prescribe a schedule for the 
                provision of bonus allowances to the owners or 
                operators of eligible projects under this subsection, 
                in accordance with the requirements of this paragraph.
                    ``(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 of which--
                            ``(i) shall support the deployment of a 
                        specified quantity of cumulative electric 
                        generating capacity using carbon capture and 
                        permanent sequestration technology; and
                            ``(ii) shall not be greater than 10 
                        gigawatts of treated generating capacity.
                    ``(C) Method of distribution.--The Administrator 
                shall distribute emission allowances within each 
                tranche, on a first-come, first-served basis--
                            ``(i) based on the date of full-scale 
                        operation of carbon capture and permanent 
                        sequestration technology; and
                            ``(ii) pursuant to a formula that--
                                    ``(I) is similar to the formula 
                                contained in subsection (c)(2)(C), 
                                except that the Administrator may 
                                prescribe bonus allowance values 
                                different than those described in 
                                subsection (c)(2) based on the criteria 
                                established under subparagraph (E); and
                                    ``(II) establishes the number of 
                                emission allowances to be distributed 
                                per ton of carbon dioxide sequestered 
                                by the project.
                    ``(D) Requirements.--For each tranche established 
                pursuant to subparagraph (B), the Administrator shall 
                establish a schedule for distributing emission 
                allowances that--
                            ``(i) is based on a sliding scale that 
                        provides higher bonus allowance values for 
                        projects achieving higher rates of carbon 
                        capture and permanent sequestration for the 
                        treated generation capacity at the unit;
                            ``(ii) for each carbon capture and 
                        permanent sequestration rate, establishes a 
                        bonus allowance value that is lower than that 
                        established for the applicable rate for the 
                        previous tranche (or, in the case of the first 
                        tranche, than that established for the 
                        applicable rate under subsection (d)(2)); and
                            ``(iii) may establish different bonus 
                        allowance levels for not more than 5 different 
                        project categories, as defined based on--
                                    ``(I) coal type;
                                    ``(II) capture and transportation 
                                technology;
                                    ``(III) geological formation type;
                                    ``(IV) new unit versus retrofit 
                                application;
                                    ``(V) such other factors as the 
                                Administrator may prescribe; or
                                    ``(VI) any combination of the 
                                factors described in subclauses (I) 
                                through (V).
                    ``(E) Criteria for establishing bonus allowance 
                values.--In establishing bonus allowance values under 
                this paragraph, the Administrator shall seek to cover 
                not more than the reasonable incremental capital and 
                operating costs of a project that are attributable to 
                implementation of carbon capture and permanent 
                sequestration technologies and carbon transportation 
                technologies, taking into account--
                            ``(i) the reduced cost of compliance with 
                        section 722;
                            ``(ii) the reduced cost associated with 
                        sequestering in a geological formation for 
                        purposes of enhanced hydrocarbon recovery, as 
                        compared to permanent sequestration into 
                        geological formations solely for purposes of 
                        sequestration;
                            ``(iii) the relevant factors defining the 
                        project category; and
                            ``(iv) such other factors as the 
                        Administrator determines to be appropriate.
            ``(5) Revision of regulations.--The Administrator shall 
        review and, as appropriate, revise the applicable regulations 
        under this subsection not less frequently than once every 8 
        years.
    ``(f) Limits for Certain Electric Generating Units.--
            ``(1) Definitions.--In this subsection, the terms `covered 
        EGU' and `initially permitted' have the meanings given those 
        terms in section 812.
            ``(2) Covered egus initially permitted from 2009 through 
        2014.--For a covered EGU that is initially permitted during the 
        period beginning on January 1, 2009, and ending on December 31, 
        2014, the Administrator shall reduce the quantity of emission 
        allowances that the owner or operator of the covered EGU would 
        otherwise be eligible to receive under this section as follows:
                    ``(A) In the case of a covered EGU 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 obtained by multiplying--
                            ``(i) 20 percent; and
                            ``(ii) the number of years, if any, that 
                        have elapsed between--
                                    ``(I) the earlier of--
                                            ``(aa) January 1, 2020; and
                                            ``(bb) the date that is 5 
                                        years after the commencement of 
                                        operation of the covered EGU; 
                                        and
                                    ``(II) the first year that the 
                                covered EGU achieves (and thereafter 
                                maintains) an emission limitation that 
                                is at least a 50-percent reduction in 
                                emissions of carbon dioxide produced by 
                                the unit, measured on an annual basis, 
                                as determined in accordance with 
                                section 812(b)(2).
                    ``(B) In the case of a covered EGU commencing 
                operation after January 1, 2019, by the product 
                obtained by multiplying--
                            ``(i) 20 percent; and
                            ``(ii) the number of years, if any, that 
                        have elapsed between--
                                    ``(I) the commencement of operation 
                                of the covered EGU; and
                                    ``(II) the first year that the 
                                covered EGU achieves (and thereafter 
                                maintains) an emission limitation that 
                                is at least a 50-percent reduction in 
                                emissions of carbon dioxide produced by 
                                the unit, measured on an annual basis, 
                                as determined in accordance with 
                                section 812(b)(2).
            ``(3) Covered egus initially permitted from 2015 through 
        2019.--The owner or operator of a covered EGU that is initially 
        permitted during the period beginning on January 1, 2015, and 
        ending on December 31, 2019, shall be ineligible to receive 
        emission allowances under this section if the covered EGU, on 
        commencement of operations (and thereafter), does not achieve 
        and maintain an emission limitation that is at least a 50-
        percent reduction in emissions of carbon dioxide produced by 
        the covered EGU, measured on an annual basis, as determined in 
        accordance with section 812(b)(2).
            ``(4) Egus receiving advanced distribution.--
                    ``(A) In general.--For an EGU that receives an 
                advanced distribution of emission allowances, the 
                Administrator shall reduce and recover, as applicable, 
                the quantity of emission allowances that the owner or 
                operator of the EGU has received and remains eligible 
                to receive under this section, which shall be equal to 
                the product obtained by multiplying--
                            ``(i) 20 percent; and
                            ``(ii) the number of years, if any, that 
                        have elapsed between--
                                    ``(I) the date that is 18 months 
                                after--
                                            ``(aa) in the case of an 
                                        EGU that was initially 
                                        permitted during the period 
                                        beginning on January 1, 2009, 
                                        and ending on December 31, 
                                        2014, the date of commencement 
                                        of operation of the EGU; or
                                            ``(bb) in the case of an 
                                        EGU that was initially 
                                        permitted prior to January 1, 
                                        2009, the date that is 3 years 
                                        after the date on which the 
                                        project owner receives an 
                                        advanced distribution for that 
                                        EGU under subsection (h)(3)(B); 
                                        and
                                    ``(II) the first year that the EGU 
                                achieves (and thereafter maintains) an 
                                emission limitation that is at least a 
                                50-percent reduction in emissions of 
                                carbon dioxide produced by the EGU, 
                                measured on an annual basis.
                    ``(B) Extension.--
                            ``(i) In general.--If an owner or operator 
                        of an EGU that receives an advanced 
                        distribution of emission allowances determines 
                        that the owner or operator will not be able to 
                        achieve at least a 50-percent reduction in 
                        emissions of carbon dioxide produced by the 
                        EGU, as measured on an annual basis, by the 
                        date specified in subparagraph (A)(ii)(I), the 
                        owner or operator may petition the 
                        Administrator to extend that date by not more 
                        than 18 months.
                            ``(ii) Time of submission of petition.--The 
                        owner or operator shall submit a petition 
                        described in clause (i) to the Administrator as 
                        soon as practicable after the date on which the 
                        basis for the petition arises.
                            ``(iii) Conditions for extension.--The 
                        Administrator shall prescribe, by regulation, 
                        the conditions under which an extension under 
                        clause (i) may be granted, including--
                                    ``(I) an inability of an EGU to 
                                sequester at the site, despite due 
                                diligence having been undertaken; and
                                    ``(II) legal challenges to the 
                                implementation of the carbon capture 
                                and permanent sequestration technology.
    ``(g) Industrial Sources.--
            ``(1) Emission allowances.--The Administrator--
                    ``(A) may distribute not more than 15 percent of 
                the emission allowances allocated under section 
                771(a)(6) for any vintage year to the owners or 
                operators of eligible industrial sources to support the 
                commercial-scale deployment of carbon capture and 
                permanent sequestration technologies at those sources; 
                and
                    ``(B) notwithstanding any other provision of law--
                            ``(i) may distribute to eligible industrial 
                        sources not more than 15 percent of the 
                        emission allowances allocated under section 
                        771(a)(6) for any vintage year in the second 
                        tranche of phase I; but
                            ``(ii) may not distribute those allowances 
                        for any vintage year in the first tranche of 
                        phase I.
            ``(2) Distribution.--
                    ``(A) In general.--The Administrator shall 
                prescribe, by regulation, 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 emission 
                allowances to qualifying projects on the basis of tons 
                of carbon dioxide captured and permanently sequestered.
                    ``(B) Method.--The Administrator may provide for 
                the distribution of emission allowances pursuant to--
                            ``(i) a reverse auction method similar to 
                        the method described in subsection (e)(3), 
                        including the use of separate auctions for 
                        different project categories; or
                            ``(ii) an incentive schedule similar to the 
                        schedule described in subsection (e)(4), which 
                        shall ensure that incentives are established so 
                        as to satisfy the requirement described in 
                        subsection (e)(4)(E).
            ``(3) Revision of regulations.--The Administrator shall 
        review and, as appropriate, revise the regulations under this 
        subsection not less frequently than once every 8 years.
    ``(h) Certification and Distribution.--
            ``(1) Certification.--
                    ``(A) Request.--
                            ``(i) Phase i; alternative distribution 
                        method.--In the case of a qualifying project 
                        that is eligible to receive allowances under 
                        phase I or under subsection (e)(4), at any time 
                        prior to placing a carbon capture and permanent 
                        sequestration project into commercial 
                        operation, the owner or operator of the planned 
                        project may request from the Administrator a 
                        certification that the project is eligible to 
                        receive emission allowances under this section.
                            ``(ii) Reverse auctions.--In the case of a 
                        qualifying project that wins a reverse auction 
                        under subsection (e) or (g), within a 
                        reasonably brief period following completion of 
                        the auction (as specified by the 
                        Administrator), the owner or operator of the 
                        qualifying project shall request from the 
                        Administrator a certification that the project 
                        is eligible to receive emission allowances 
                        under this section.
                            ``(iii) Eligible projects.--Eligible 
                        projects in phase I and phase II may receive 
                        certification under this paragraph.
                            ``(iv) Issuance.--Not later than 90 days 
                        after the date on which the Administrator 
                        determines that the owner or operator of the 
                        planned project has submitted complete 
                        documentation pursuant to subparagraph (B), the 
                        Administrator shall issue a certification 
                        described in this subparagraph--
                                    ``(I) if the owner or operator 
                                demonstrates a commitment to construct 
                                and operate a project that satisfies--
                                            ``(aa) the eligibility 
                                        criteria of subsection (c); and
                                            ``(bb) the requirements of 
                                        this paragraph; and
                                    ``(II) that is based on the 
                                consideration by the Administrator of 
                                the documentation submitted pursuant to 
                                subparagraph (B), as well as other 
                                relevant information, as determined by 
                                the Administrator, in consultation with 
                                the owner or operator.
                    ``(B) Documentation.--
                            ``(i) In general.--The Administrator shall 
                        prescribe, by regulation, the documentation 
                        necessary for making a determination of project 
                        eligibility for the certification under 
                        subparagraph (A), including--
                                    ``(I) in the case of a planned 
                                project receiving an advanced 
                                distribution of emission allowances, a 
                                commitment to implement carbon and 
                                permanent sequestration technology upon 
                                commencement of operation, to meet the 
                                eligibility requirements of (c)(1) by 
                                not later than 18 months after the date 
                                of commencement of operation;
                                    ``(II) technical information 
                                regarding the carbon capture and 
                                permanent sequestration technology, 
                                coal type, geological formation type 
                                (if applicable), and other relevant 
                                design features that are planned for 
                                the project;
                                    ``(III) the annual reductions in 
                                carbon dioxide emissions that the 
                                carbon capture and permanent 
                                sequestration technology is projected 
                                to achieve during each of the first 10 
                                years that the project achieves 
                                commercial operation;
                                    ``(IV) a demonstration that the 
                                owner or operator is committed to both 
                                constructing and operating the planned 
                                project on a timeline marked by 
                                reasonable milestones, through the 
                                completion of 1 of the actions 
                                specified in subparagraph (C)(iii);
                                    ``(V) the amount of Federal funding 
                                the project owner has received, if any, 
                                to cover the costs of constructing a 
                                project that is eligible under this 
                                paragraph; and
                                    ``(VI) an assessment of the costs 
                                of constructing the project, which 
                                shall serve as a basis for the 
                                determination of the Administrator 
                                regarding advanced distributions under 
                                paragraph (3)(C).
                            ``(ii) Nonretrofit application.--In the 
                        case of a project that is not a retrofit 
                        application, the assessment of costs described 
                        in clause (i)(VI) shall include an assessment 
                        of the costs of constructing the electric 
                        generating unit or industrial source that will 
                        produce the flue gas or fuel gas to be treated 
                        by the carbon capture and permanent 
                        sequestration technology.
                    ``(C) Commitment.--
                            ``(i) In general.--Subject to clause (ii), 
                        the completion of any 1 of the qualifying 
                        actions specified under clause (iii) shall 
                        constitute a commitment to construct and 
                        operate a planned carbon capture and permanent 
                        sequestration project.
                            ``(ii) Condition.--In the case of a 
                        qualifying action specified in subclause (I) or 
                        (II) of clause (iii), the completion of such an 
                        action may be subject to a condition that the 
                        Administrator will issue a certification under 
                        this paragraph for the distribution of emission 
                        allowances to the project.
                            ``(iii) Qualifying actions.--Qualifying 
                        actions under this subparagraph shall include--
                                    ``(I) the execution of--
                                            ``(aa) a commitment by 
                                        lenders or other appropriate 
                                        entities to finance the 
                                        project, which may be subject 
                                        to customary closing conditions 
                                        that are associated with the 
                                        execution of the commitment;
                                            ``(bb) an authorization by 
                                        a State regulatory authority to 
                                        allow recovery, from the retail 
                                        customers of such electric 
                                        utility, of the costs of the 
                                        project by a State-regulated 
                                        electric utility that plans to 
                                        construct the project; or
                                            ``(cc) an authorization by 
                                        a State legislature to allow 
                                        recovery, from the retail 
                                        customers of electric utilities 
                                        that are required to purchase 
                                        some or all of the electricity 
                                        from the project pursuant to 
                                        State law, of the costs of the 
                                        project, on the conditions that 
                                        the project has been approved 
                                        by the legislature and, under 
                                        State law, retail electric 
                                        providers are required 
                                        collectively to purchase all of 
                                        the net electric output from 
                                        the project; and
                                    ``(II) a commitment by the owner or 
                                operator of the project to execute a 
                                surety bond in sufficient amounts by 
                                not later than 2 years after the date 
                                on which the Administrator issues the 
                                certification for the project.
                    ``(D) Content of certification.--The Administrator 
                shall prescribe, by regulation, the required content of 
                each certification issued under this paragraph, 
                including--
                            ``(i) the annual reductions in carbon 
                        dioxide emissions that the carbon capture and 
                        sequestration technology the owner or operator 
                        of the planned project commits to achieve 
                        during each of the first 10 years that the 
                        project is in commercial operation, as 
                        specified in section 812;
                            ``(ii) the construction and operating 
                        milestones to which the owner or operator of 
                        the planned project commits;
                            ``(iii) a certification that the 
                        documentation submitted under subparagraph (B) 
                        is true and accurate;
                            ``(iv) for those sources that have received 
                        advanced distribution of emission allowances 
                        under paragraph (3)(B), the repayment periods 
                        that the Administrator has specified pursuant 
                        to paragraph (3)(D)(v) as of the effective date 
                        of the certification; and
                            ``(v) such other requirements as may be 
                        necessary to govern the advanced distribution 
                        of emission allowances between the 
                        Administrator and the owner or operator of the 
                        planned project, subject to the requirements of 
                        this subsection.
                    ``(E) Failure to request certification.--
                            ``(i) In general.--An owner or operator may 
                        elect not to request a certification on the 
                        eligibility of a planned project under 
                        subparagraph (A) prior to the commercial 
                        operation of the project.
                            ``(ii) Determination by administrator.--If 
                        an owner or operator elects not to request a 
                        certification under clause (i), the 
                        Administrator shall make a determination 
                        regarding whether the project satisfies the 
                        eligibility requirements of subsection (c) at 
                        the time that the Administrator makes a 
                        determination regarding the annual distribution 
                        of emission allowances under paragraph (3)(A).
            ``(2) Reservation of emission allowances.--
                    ``(A) Amount.--
                            ``(i) In general.--For each project that 
                        receives a certification of eligibility under 
                        paragraph (1), the Administrator shall reserve 
                        on a first-come, first-served basis a portion 
                        of the emission allowances that are allocated 
                        for the deployment of carbon capture and 
                        permanent sequestration technology under 
                        section 771(a)(6).
                            ``(ii) Determination.--The reservation of 
                        emission allowances for a particular eligible 
                        project under this paragraph shall be equal to 
                        the number of emission allowances that the 
                        project would be entitled to receive under the 
                        applicable distribution method under this 
                        section upon commercial operation of the carbon 
                        capture and permanent sequestration technology, 
                        as determined by the Administrator based on--
                                    ``(I) the applicable bonus 
                                allowance value;
                                    ``(II) the number of tons of carbon 
                                dioxide emissions projected to be 
                                avoided through the use of carbon 
                                capture and permanent sequestration 
                                technologies during each calendar year 
                                under paragraph (1)(B)(i)(II); and
                                    ``(III) a discount rate to account 
                                for the increase in the monetary 
                                inflation that may be expected to occur 
                                during each of the relevant 10 calendar 
                                years, as determined by the 
                                Administrator.
                    ``(B) Termination of reservation.--
                            ``(i) In general.--A reservation of 
                        emission allowances for a particular project 
                        under subparagraph (A) shall terminate if the 
                        Administrator determines that the owner or 
                        operator has failed to achieve a reasonable 
                        number of milestones for commencing 
                        construction or commercial operation of the 
                        project, as specified under paragraph 
                        (1)(B)(i)(III).
                            ``(ii) Reduced quantity of carbon dioxide 
                        captured and sequestered.--If the quantity of 
                        carbon dioxide emissions avoided through the 
                        operation of the carbon capture and permanent 
                        sequestration project on average over 3 
                        consecutive calendar years is less than the 
                        quantity specified for those calendar years 
                        under subparagraph (A), the reservation of 
                        emission allowances for the project under 
                        subparagraph (A) shall be reduced in future 
                        years by the difference between--
                                    ``(I) the quantity of carbon 
                                dioxide emissions avoided through 
                                operation of the carbon capture and 
                                permanent sequestration project on 
                                average over the applicable 3 
                                consecutive years; and
                                    ``(II) the quantity specified under 
                                subparagraph (A) for the applicable 
                                years.
                            ``(iii) Availability.--The Administrator 
                        shall immediately make available to other 
                        eligible projects emission allowances for which 
                        the Administrator has terminated an emission 
                        allowance reservation for a particular project 
                        under this subparagraph.
            ``(3) Distribution process.--
                    ``(A) Annual distribution.--
                            ``(i) In general.--The Administrator shall 
                        distribute the emission allowances to eligible 
                        projects on an annual basis.
                            ``(ii) Basis.--The annual distribution of 
                        emission allowances shall be based on the total 
                        tons of carbon dioxide emissions avoided 
                        through operation of the carbon capture and 
                        permanent sequestration project during each of 
                        the first 10 years of commercial operation, in 
                        accordance with subsection (c)(2).
                            ``(iii) Total distribution amount.--The 
                        total amount of emission allowances distributed 
                        to an eligible project for each of the first 10 
                        years of commercial operation may be greater 
                        than, or less than, the quantity of emissions 
                        allowances that the Administrator has reserved 
                        for the eligible project under paragraph (2).
                            ``(iv) Reports.--
                                    ``(I) In general.--Except as 
                                provided in subparagraph (B), the 
                                Administrator shall make each annual 
                                distribution of emission allowances by 
                                not later than 90 days after the date 
                                on which the owner or operator of a 
                                project submits to the Administrator a 
                                report regarding the tons of carbon 
                                dioxide emissions avoided for that year 
                                through operation of the carbon capture 
                                and permanent sequestration project.
                                    ``(II) Requirement.--A report under 
                                subclause (I) shall be verified in 
                                accordance with regulations to be 
                                promulgated by the Administrator.
                    ``(B) Advanced distribution.--
                            ``(i) In general.--The Administrator may 
                        provide an advanced distribution of emission 
                        allowances to the projects--
                                    ``(I) that receive emission 
                                allowances under the phase I 
                                distributions authorized by subsection 
                                (d); and
                                    ``(II) for which the Administrator 
                                has issued a certification of 
                                eligibility under paragraph (1).
                            ``(ii) Requirements.--An advanced 
                        distribution of emission allowances for a 
                        particular project shall be provided--
                                    ``(I) prior to the operational 
                                phase of the project, at an appropriate 
                                milestone that best ensures the 
                                expeditious deployment of the carbon 
                                capture and permanent sequestration 
                                technology, as determined by the 
                                Administrator;
                                    ``(II) in a quantity that equals a 
                                percentage, as specified in 
                                subparagraph (C), of the total number 
                                of emission allowances that the 
                                Administrator has reserved for that 
                                project during the 10-year period of 
                                commercial operation; and
                                    ``(III) using allowances that are 
                                drawn--
                                            ``(aa) from the current 
                                        vintage year; or
                                            ``(bb) if the allowances 
                                        are exhausted from the current 
                                        vintage year, in order from 
                                        successive vintage years, 
                                        beginning with the most 
                                        proximate future vintage year.
                            ``(iii) Reports.--
                                    ``(I) In general.--The owner or 
                                operator of a planned project that 
                                receives an advanced distribution of 
                                emission allowances shall submit to the 
                                Administrator, not later than 90 days 
                                after the end of each calendar year, a 
                                report describing the tons of carbon 
                                dioxide emissions avoided for that year 
                                through operation of the carbon capture 
                                and permanent sequestration project , 
                                compared to the total tons of carbon 
                                dioxide emissions generated by the unit 
                                on which the planned project is 
                                implemented.
                                    ``(II) Requirement.--A report under 
                                subclause (I) shall be verified in 
                                accordance with regulations promulgated 
                                by the Administrator.
                                    ``(III) Avoidance of duplicative 
                                reporting.--If the unit on which a 
                                planned project is implemented already 
                                submits the information required by 
                                subclause (I) to the Administrator 
                                pursuant to another reporting 
                                requirement, the owner or operator of 
                                the planned project may refer the 
                                Administrator to the other submission 
                                in which the required information is 
                                provided.
                    ``(C) Percentages.--
                            ``(i) In general.--Subject to clauses (ii) 
                        and (iii), the Administrator shall apply the 
                        following percentages for determining the 
                        advanced distribution of emission allowances:
                                    ``(I) 70 percent of the emission 
                                allowance reservation for the first 
                                tranche under subsection (d)(2)(A).
                                    ``(II) 50 percent of the emission 
                                allowance reservation for the second 
                                tranche under subsection (d)(2)(B).
                            ``(ii) Costs less than value of 
                        allowances.--If the costs described in clause 
                        (iii) are less than the monetary value of 
                        allowances represented by the percentages 
                        described in clause (i) at the time of advanced 
                        distribution, the advanced distribution shall 
                        be limited to an amount that is equivalent to 
                        the costs described in clause (iii).
                            ``(iii) Costs.--
                                    ``(I) In general.--For retrofit 
                                projects, the advanced distribution 
                                shall equate to 100 percent of the 
                                costs of permitting, design or 
                                engineering, labor, materials, land, 
                                and equipment associated with the 
                                construction and installation of the 
                                system to capture, compress, transport, 
                                and store carbon dioxide (including 
                                design changes to the associated 
                                generating unit needed to accommodate 
                                the carbon dioxide capture and 
                                compression system).
                                    ``(II) New electric generating 
                                units.--For new projects--
                                            ``(aa) the advanced 
                                        distribution shall equate to 
                                        100 percent of the incremental 
                                        permitting, design or 
                                        engineering, labor, materials, 
                                        land, and equipment cost 
                                        differences between--

                                                    ``(AA) a new coal 
                                                power plant with carbon 
                                                capture and storage; 
                                                and

                                                    ``(BB) a new coal 
                                                power plant without 
                                                carbon capture and 
                                                storage in the location 
                                                where the new coal 
                                                power plant is being 
                                                constructed, and for 
                                                the same intended 
                                                service territory 
                                                absent carbon capture 
                                                and storage; and

                                            ``(bb) it shall be the 
                                        responsibility of the 
                                        organization that is requesting 
                                        advanced distributions to 
                                        provide to the Administrator a 
                                        cost estimate for both the new 
                                        coal power plant with carbon 
                                        capture and storage and a new 
                                        coal power plant without carbon 
                                        capture and storage.
                                    ``(III) Reduction.--For the 
                                purposes of this subparagraph, the 
                                costs under this clause shall be 
                                reduced by the amounts documented under 
                                paragraph (1)(B)(i)(V).
                    ``(D) Reconciliation for advanced payments.--
                            ``(i) In general.--In the case of a project 
                        that receives an advanced distribution of 
                        emission allowances under this paragraph, the 
                        Administrator shall distribute annually the 
                        remainder of emission allowances reserved under 
                        paragraph (2) once the carbon capture and 
                        permanent sequestration technology begins 
                        commercial operation.
                            ``(ii) Timing of distribution.--The annual 
                        distribution of emission allowances under 
                        clause (i) shall take place not later than 60 
                        days after the end of each calendar year.
                            ``(iii) Calculation of remaining 
                        distribution.--Subject to clauses (iv) and (v), 
                        the remaining distribution referred to in 
                        clause (i) shall annually be calculated upward 
                        or downward as the difference between--
                                    ``(I) the number of allowances that 
                                were reserved for the project in the 
                                relevant calendar year under paragraph 
                                (2)(A)(ii)(II); and
                                    ``(II) the number of allowances 
                                that the project would be eligible to 
                                receive under the bonus allowance 
                                formula described in subsection 
                                (c)(2)(B)(i) based on the tons of 
                                carbon dioxide emissions that were 
                                avoided through operation of the carbon 
                                capture and permanent sequestration 
                                project during the relevant calendar 
                                year.
                            ``(iv) Number of allowances.--For purposes 
                        of clauses (iii)(II) and (viii)(I), for the 
                        purposes of calculating the number of 
                        allowances under subsection (c)(2)(B)(i), the 
                        Administrator shall enter the average fair 
                        market value of emission allowances in the year 
                        specified under subsection 
                        (c)(2)(B)(i)(II)(bb)).
                            ``(v) Methods of reconciliation.--
                                    ``(I) In general.--If, in any 
                                calendar year, the number of tons of 
                                carbon dioxide emissions projected to 
                                be avoided for that year under 
                                paragraph (1)(B)(i)(III) is greater 
                                than the number of tons of carbon 
                                dioxide emissions that were actually 
                                avoided by a project during that year, 
                                based on the report submitted to the 
                                Administrator under paragraph 
                                (3)(B)(iii), the difference may be 
                                accounted for by--
                                            ``(aa) the owner or 
                                        operator of the project 
                                        capturing and storing an 
                                        additional quantity of 
                                        emissions that cumulatively 
                                        exceeds the difference 
                                        between--

                                                    ``(AA) the number 
                                                of tons of carbon 
                                                dioxide emissions that 
                                                were projected to be 
                                                avoided for the 
                                                relevant calendar year 
                                                under paragraph 
                                                (1)(B)(i)(II); and

                                                    ``(BB) the number 
                                                of tons of carbon 
                                                dioxide emissions that 
                                                were actually avoided 
                                                through operation of 
                                                the project during that 
                                                year;

                                            ``(bb) the Administrator 
                                        adjusting the annual 
                                        distributions under clause 
                                        (iii), on the condition that 
                                        the reduction shall be 
                                        sufficient to account for the 
                                        difference described in this 
                                        subclause within the period 
                                        specified by the Administrator 
                                        in subclause (II); or
                                            ``(cc) the owner or 
                                        operator of the project making 
                                        a repayment in accordance with 
                                        clause (vi).
                                    ``(II) Period.--Compliance with 
                                subclause (I)(aa) shall occur over a 
                                period to be specified by the 
                                Administrator, but not to exceed 18 
                                months.
                                    ``(III) Interest.--The 
                                Administrator may apply an appropriate 
                                rate of interest to the repayment 
                                requirement under this clause.
                            ``(vi) Alternate repayment by allowances or 
                        cash.--If the owner or operator of the project 
                        elects to comply by repaying in accordance with 
                        clause (v)(I)(aa), during the period specified 
                        by the Administrator under clause (v)(II), the 
                        owner or operator shall repay the Administrator 
                        an amount of allowances or cash (as calculated 
                        under clause (viii)) if--
                                    ``(I) the number of tons of carbon 
                                dioxide emissions that were actually 
                                avoided through operation of the 
                                project during that period is less than 
                                the number necessary to rectify the 
                                difference described in clause (v)(I); 
                                and
                                    ``(II) the number of allowances 
                                remaining reserved for a project is 
                                insufficient to adjust for the 
                                difference under clause (iii).
                            ``(vii) Milestones.--If the Administrator 
                        determines that the owner or operator failed to 
                        achieve a milestone for commencing construction 
                        or commercial operation of the project (as 
                        specified in paragraph (1)(B)), the owner or 
                        operator shall repay the Administrator an 
                        amount of allowances or cash calculated under 
                        clause (viii).
                            ``(viii) Calculation.--The repayments 
                        required under clauses (vi)(I) and (vii) shall 
                        be equal to, at the option of the owner or 
                        operator of the project--
                                    ``(I) the difference between the 
                                numbers of allowances described in 
                                subclauses (I) and (II) of clause 
                                (iii); or
                                    ``(II) a cash payment in an amount 
                                equal to the product obtained by 
                                multiplying--
                                            ``(aa) the difference 
                                        between the numbers of 
                                        allowances described in 
                                        subclauses (I) and (II) of 
                                        clause (iii); and
                                            ``(bb) the average fair 
                                        market value of an emission 
                                        allowance during the year in 
                                        which the repayment would be 
                                        made under clause (vi).
                            ``(ix) Use of repaid amounts.--The 
                        Administrator shall use amounts received as 
                        repayments under this subparagraph to support 
                        the deployment of carbon capture and permanent 
                        sequestration.
    ``(i) Limitations.--
            ``(1) In general.--Emission allowances shall be distributed 
        under this section only for tons of carbon dioxide emissions 
        that are captured and sequestered in accordance with this 
        section.
            ``(2) Period.--A qualifying project may receive annual 
        emission allowances under this section only for the first 10 
        years of operation.
            ``(3) Capacity.--
                    ``(A) In general.--Approximately 72 gigawatts of 
                total cumulative treated generating capacity may 
                receive emission allowances under this section.
                    ``(B) Allowance surplus.--On reaching the 
                cumulative capacity described in subparagraph (A), any 
                emission allowances that are allocated for carbon 
                capture and permanent sequestration deployment under 
                section 771(a)(6) and are not yet obligated under this 
                section shall be treated as emission allowances not 
                designated for distribution for purposes of section 
                771(b)(2).
    ``(j) Exhaustion of Account and Annual Roll-over of Surplus 
Emission Allowances.--
            ``(1) In general.--In distributing emission allowances 
        under this section, the Administrator shall ensure that 
        eligible projects receive distributions of emission allowances 
        for the first 10 years of commercial operation.
            ``(2) Different vintage years.--
                    ``(A) Determination.--If the Administrator 
                determines that the emission allowances allocated under 
                section 771(a)(6) 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 emission 
                allowances from vintage years after the year of the 
                distribution.
                    ``(B) Diversity factors.--If the Administrator 
                provides allowances to new eligible projects under 
                subparagraph (A), the Administrator shall promulgate 
                regulations to prioritize new eligible projects that 
                are distinguished from prior recipients of allowances 
                by 1 or more of the following diversity factors 
                (without regard to order):
                            ``(i) Location in a coal-producing region 
                        that provides a majority of coal to the 
                        project.
                            ``(ii) Coal type, including waste coal.
                            ``(iii) Capture and transportation 
                        technologies.
                            ``(iv) Geological formations.
                            ``(v) New units and retrofit applications.
    ``(k) Davis-Bacon Compliance.--
            ``(1) In general.--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 of chapter 
        31 of title 40, United States Code.
            ``(2) Authority.--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.

``SEC. 781. 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 a review of programs administered by the Federal Government 
that distribute emission allowances or funds from any Federal auction 
of allowances.
    ``(b) Contents.--Each such report shall include a comprehensive 
evaluation of the administration and effectiveness of each program, 
including--
            ``(1) the efficiency, transparency, and soundness of the 
        administration of each program;
            ``(2) the performance of activities receiving assistance 
        under each program;
            ``(3) the cost-effectiveness of each program in achieving 
        the stated purposes of the program; and
            ``(4) recommendations, if any, for regulatory or 
        administrative changes to each program to improve its 
        effectiveness.
    ``(c) Focus.--In evaluating program performance, each review under 
this section review shall address the effectiveness of such programs 
in--
            ``(1) creating and preserving jobs;
            ``(2) ensuring a manageable transition for working families 
        and workers;
            ``(3) reducing the emissions, or enhancing sequestration, 
        of greenhouse gases;
            ``(4) developing clean technologies; and
            ``(5) building resilience to the impacts of climate change.

``SEC. 782. EARLY ACTION RECOGNITION.

    ``(a) In General.--Emission allowances allocated pursuant to 
section 771(a)(7) shall be distributed by the Administrator in 
accordance with this section. Not later than 1 year after the date of 
enactment of this title, the Administrator shall issue regulations 
allowing--
            ``(1) any person in the United States to exchange 
        instruments in the nature of offset credits issued before 
        January 1, 2009, by a State, local, or voluntary offset program 
        with respect to which the Administrator has made an affirmative 
        determination under section 740(a)(2), for emission allowances 
        established by the Administrator under section 721(a); and
            ``(2) the Administrator to provide compensation in the form 
        of emission allowances to entities, including units of local 
        government, that do not meet the criteria of paragraph (1) and 
        meet the criteria of this paragraph for documented early 
        reductions or avoidance of greenhouse gas emissions or 
        greenhouse gases sequestered before January 1, 2009, from 
        projects or process improvements begun before January 1, 2009, 
        where--
                    ``(A) the entity publicly stated greenhouse gas 
                reduction goals and publicly reported against those 
                goals;
                    ``(B) the entity demonstrated entity-wide net 
                greenhouse gas reductions; and
                    ``(C) the entity demonstrates the actual projects 
                or process improvements undertaken to make reductions 
                and documents the reductions (such as through 
                documentation of engineering projects).
    ``(b) Regulations.--Regulations issued under subsection (a) shall--
            ``(1) provide that a person exchanging credits under 
        subsection (a)(1) receive emission allowances established under 
        section 721(a) in an amount for which the monetary value is 
        equivalent to the average monetary value of the credits during 
        the period from January 1, 2006, to January 1, 2009, as 
        adjusted for inflation to reflect current dollar values at the 
        time of the exchange;
            ``(2) provide that a person receiving compensation for 
        documented early action under subsection (a)(2) shall receive 
        emission allowances established under section 721(a) in an 
        amount that is approximately equivalent in value to the carbon 
        dioxide equivalent per ton value received by entities in 
        exchange for credits under paragraph (1) (as adjusted for 
        inflation to reflect current dollar values at the time of the 
        exchange), as determined by the Administrator;
            ``(3) provide that only reductions or avoidance of 
        greenhouse gas emissions, or sequestration of greenhouse gases, 
        achieved by activities in the United States between January 1, 
        2001, and January 1, 2009, may be compensated under this 
        section, and only credits issued for such activities may be 
        exchanged under this section;
            ``(4) provide that only credits that have not been retired 
        or otherwise used to meet a voluntary or mandatory commitment, 
        and have not expired, may be exchanged under subsection (a)(1);
            ``(5) require that, once exchanged, the credit be retired 
        for purposes of use under the program by or for which it was 
        originally issued; and
            ``(6) establish a deadline by which persons must exchange 
        the credits or request compensation for early action under this 
        section.
    ``(c) Participation.--Participation in an exchange of credits for 
allowances or compensation for early action authorized by this section 
shall not preclude any person from participation in an offset credit 
program established under part D.

``SEC. 783. ESTABLISHMENT OF DEFICIT REDUCTION FUND.

    ``(a) Deficit Reduction Fund.--There is established in the Treasury 
of the United States a fund, to be known as the `Deficit Reduction 
Fund'.
    ``(b) Disbursements.--No disbursement shall be made from the 
Deficit Reduction Fund except pursuant to an appropriation Act.''.

            Subtitle C--Additional Greenhouse Gas Standards

SEC. 121. GREENHOUSE GAS STANDARDS.

    The Clean Air Act (42 U.S.C. 7401 et seq.), as amended by subtitles 
A and B of this title, is further amended by adding the following new 
title after title VII:

           ``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

``SEC. 801. DEFINITIONS.

    ``For purposes of this title, terms that are defined in title VII, 
except for the term `stationary source', shall have the meanings given 
those terms in title VII.

                 ``PART A--STATIONARY SOURCE STANDARDS

``SEC. 811. STANDARDS OF PERFORMANCE.

    ``(a) Definition of Uncapped Greenhouse Gas Emissions.--In this 
section, the term `uncapped greenhouse gas emissions' means those 
greenhouse gas emissions to which section 722 does not apply.
    ``(b) Standards.--Before January 1, 2020, the Administrator shall 
not promulgate new source performance standards for greenhouse gases 
under section 111 that are applicable to any stationary source that--
            ``(1) emits uncapped greenhouse gas emissions; and
            ``(2) qualifies as an eligible offset project pursuant to 
        section 733 that is eligible to receive an offset credit 
        pursuant to section 737.''.

SEC. 122. HFC REGULATION.

    (a) In General.--Title VI of the Clean Air Act (42 U.S.C. 7671 et 
seq.) (relating to stratospheric ozone protection) is amended by adding 
at the end the following:

``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:
            ``(1) Hydrofluorocarbon-23 (HFC-23).
            ``(2) Hydrofluorocarbon-32 (HFC-32).
            ``(3) Hydrofluorocarbon-41 (HFC-41).
            ``(4) Hydrofluorocarbon-125 (HFC-125).
            ``(5) Hydrofluorocarbon-134 (HFC-134).
            ``(6) Hydrofluorocarbon-134a (HFC-134a).
            ``(7) Hydrofluorocarbon-143 (HFC-143).
            ``(8) Hydrofluorocarbon-143a (HFC-143a).
            ``(9) Hydrofluorocarbon-152 (HFC-152).
            ``(10) Hydrofluorocarbon-152a (HFC-152a).
            ``(11) Hydrofluorocarbon-227ea (HFC-227ea).
            ``(12) Hydrofluorocarbon-236cb (HFC-236cb).
            ``(13) Hydrofluorocarbon-236ea (HFC-236ea).
            ``(14) Hydrofluorocarbon-236fa (HFC-236fa).
            ``(15) Hydrofluorocarbon-245ca (HFC-245ca).
            ``(16) Hydrofluorocarbon-245fa (HFC-245fa).
            ``(17) Hydrofluorocarbon-365mfc (HFC-365mfc).
            ``(18) Hydrofluorocarbon-43-10mee (HFC-43-10mee).
            ``(19) Hydrofluoroolefin-1234yf (HFO-1234yf).
            ``(20) Hydrofluoroolefin-1234ze (HFO-1234ze).
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.
    ``(b) Consumption and Production of Class II, Group II 
Substances.--
            ``(1) In general.--
                    ``(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.
                    ``(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.
                    ``(C) Integrity of limits.--To maintain the 
                integrity of the class II, group II limits, 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.
                    ``(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.
            ``(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):

----------------------------------------------------------------------------------------------------------------
                    ``Calendar Year                                        Percent of Baseline
----------------------------------------------------------------------------------------------------------------
2012                                                     90
----------------------------------------------------------------------------------------------------------------
2013                                                     87.5
----------------------------------------------------------------------------------------------------------------
2014                                                     85
----------------------------------------------------------------------------------------------------------------
2015                                                     82.5
----------------------------------------------------------------------------------------------------------------
2016                                                     80
----------------------------------------------------------------------------------------------------------------
2017                                                     77.5
----------------------------------------------------------------------------------------------------------------
2018                                                     75
----------------------------------------------------------------------------------------------------------------
2019                                                     71
----------------------------------------------------------------------------------------------------------------
2020                                                     67
----------------------------------------------------------------------------------------------------------------
2021                                                     63
----------------------------------------------------------------------------------------------------------------
2022                                                     59
----------------------------------------------------------------------------------------------------------------
2023                                                     54
----------------------------------------------------------------------------------------------------------------
2024                                                     50
----------------------------------------------------------------------------------------------------------------
2025                                                     46
----------------------------------------------------------------------------------------------------------------
2026                                                     42
----------------------------------------------------------------------------------------------------------------
2027                                                     38
----------------------------------------------------------------------------------------------------------------
2028                                                     34
----------------------------------------------------------------------------------------------------------------
2029                                                     30
----------------------------------------------------------------------------------------------------------------
2030                                                     25
----------------------------------------------------------------------------------------------------------------
2031                                                     21
----------------------------------------------------------------------------------------------------------------
2032                                                     17
----------------------------------------------------------------------------------------------------------------
after 2032                                               15
----------------------------------------------------------------------------------------------------------------

            ``(3) Baseline.--(A) Not later than 1 year 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--
                    ``(i) the annual average consumption of all class 
                II substances in calendar years 2004, 2005, and 2006; 
                plus
                    ``(ii) the annual average quantity of all class II 
                substances contained in imported products in calendar 
                years 2004, 2005, and 2006.
            ``(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.
            ``(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.
            ``(4) Distribution of allowances.--
                    ``(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.
                    ``(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.
                    ``(C) Producer-importer pool.--
                            ``(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:

----------------------------------------------------------------------------------------------------------------
                    ``Calendar Year                                   Percent Available for Auction
----------------------------------------------------------------------------------------------------------------
2012                                                     10
----------------------------------------------------------------------------------------------------------------
2013                                                     20
----------------------------------------------------------------------------------------------------------------
2014                                                     30
----------------------------------------------------------------------------------------------------------------
2015                                                     40
----------------------------------------------------------------------------------------------------------------
2016                                                     50
----------------------------------------------------------------------------------------------------------------
2017                                                     60
----------------------------------------------------------------------------------------------------------------
2018                                                     70
----------------------------------------------------------------------------------------------------------------
2019                                                     80
----------------------------------------------------------------------------------------------------------------
2020 and thereafter                                      90
----------------------------------------------------------------------------------------------------------------

                            ``(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).
                            ``(III) Not later than 3 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.
                            ``(IV) The Administrator shall set a 
                        minimum bid per consumption allowance of the 
                        following:
                                    ``(aa) For vintage year 2012, 
                                $1.00.
                                    ``(bb) For vintage year 2013, 
                                $1.20.
                                    ``(cc) For vintage year 2014, 
                                $1.40.
                                    ``(dd) For vintage year 2015, 
                                $1.60.
                                    ``(ee) For vintage year 2016, 
                                $1.80.
                                    ``(ff) For vintage year 2017, 
                                $2.00.
                                    ``(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.
                            ``(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:
                                    ``(aa) A fee of $1.00 per vintage 
                                year 2012 allowance.
                                    ``(bb) A fee of $1.20 per vintage 
                                year 2013 allowance.
                                    ``(cc) A fee of $1.40 per vintage 
                                year 2014 allowance.
                                    ``(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.
                                    ``(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.
                                    ``(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.
                                    ``(gg) For each allowance of 
                                vintage year 2018 and subsequent 
                                vintage years, a fee equal to the 
                                auction clearing price for that vintage 
                                year.
                            ``(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.
                            ``(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--
                                    ``(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 year 2004, 2005, 
                                or 2006, less exportation, less 
                                transfers and sales to persons who 
                                produced class II substances in the 
                                United States during calendar year 
                                2004, 2005, or 2006; and
                                    ``(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.
                        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.
                            ``(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 year 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).
                    ``(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).
                    ``(ii) The Administrator shall accept applications 
                for purchase of secondary pool consumption allowances 
                from--
                            ``(I) importers of products containing 
                        class II, group II substances;
                            ``(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;
                            ``(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; and
                            ``(IV) persons who produced or imported any 
                        class II substance during calendar year 2004, 
                        2005, or 2006.
                    ``(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.
                    ``(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:
                            ``(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.
                            ``(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.
                            ``(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.
                            ``(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.
                    ``(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, or to 
                allocate such allowances for essential uses pursuant to 
                subsection (d). 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 and 
                governing the allocation of withheld allowances for 
                essential uses subject to the criteria under subsection 
                (d).
            ``(5) Banking.--A consumption allowance or destruction 
        offset credit may be used to meet the compliance obligation 
        requirements of paragraph (1) in--
                    ``(A) the vintage year for the allowance or 
                destruction offset credit; or
                    ``(B) any calendar year subsequent to the vintage 
                year for the allowance or destruction offset credit.
            ``(6) Auctions.--
                    ``(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:
                            ``(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.
                            ``(ii) Auction format.--Auctions shall 
                        follow a single-round, sealed-bid, uniform 
                        price format.
                            ``(iii) Financial assurance.--The 
                        Administrator may establish financial assurance 
                        requirements to ensure that auction 
                        participants can and will perform on their 
                        bids.
                            ``(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.
                            ``(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.
                            ``(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--
                                    ``(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; or
                                    ``(II) the number of allowances 
                                equal to the product of--
                                            ``(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); and
                                            ``(bb) the number of 
                                        vintage year 2012 allowances 
                                        offered at auction.
                            ``(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--
                                    ``(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; and
                                    ``(II) the number of vintage year 
                                2013 allowances offered at auction.
                            ``(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--
                                    ``(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; and
                                    ``(II) the number of allowances 
                                offered at auction for that vintage 
                                year.
                            ``(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.
                    ``(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.
                    ``(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.
            ``(7) Payments for allowances.--
                    ``(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.
                    ``(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.
                    ``(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.
            ``(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--
                    ``(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;
                    ``(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;
                    ``(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; and
                    ``(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.
            ``(9) Offsets.--
                    ``(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.
                    ``(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.
                    ``(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).
                    ``(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 limits and the integrity of the class II, 
                group II limits. 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.
                    ``(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.
                    ``(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.
                    ``(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.
            ``(10) Legal status of allowances and credits.--None of the 
        following constitutes a property right:
                    ``(A) A production or consumption allowance.
                    ``(B) A destruction offset credit.
    ``(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.
    ``(d) Exceptions for Essential Uses.--Notwithstanding the 
provisions of this section regarding auction and nonauction sale of 
allowances, to the extent consistent with any applicable multilateral 
agreement to which the United States is a party or otherwise adheres, 
the Administrator may allocate (and in the case of medical devices, 
shall determine whether to allocate) allowances withheld from auction 
or nonauction sale under subsection (b)(4)(E) for essential uses 
pursuant to the following requirements:
            ``(1) Medical devices.--The Administrator, after notice and 
        opportunity for public comment, and in consultation with the 
        Commissioner of Food and Drugs, shall determine whether to 
        allocate withheld allowances for the production and consumption 
        of class II, group II substances solely for use in medical 
        devices approved and determined to be essential by the 
        Commissioner. Not later than 20 months after the date of 
        enactment of this title, the Commissioner shall approve and 
        determine essential medical devices. For purposes of this 
        section, section 601(8)(A) shall not apply to metered dose 
        inhalers.
            ``(2) Aviation and space vehicle safety.--The 
        Administrator, after notice and opportunity for public comment, 
        and in consultation with the Administrator of the Federal 
        Aviation Administration or the Administrator of the National 
        Aeronautics and Space Administration, may allocate withheld 
        allowances for the production and consumption of class II, 
        group II substances solely for aviation and space flight safety 
        purposes.
            ``(3) Fire suppression.--The Administrator, after notice 
        and opportunity for public comment, may allocate withheld 
        allowances for the production and consumption of class II, 
        group II substances solely for fire suppression purposes. 
        Paragraphs (1) and (2) of subsection (g) of section 604 shall 
        apply to class II, group II substances in the same manner and 
        to the same extent as such provisions apply to the substances 
        specified in such subsection.
            ``(4) National security.--The Administrator, after notice 
        and opportunity for public comment, and in consultation with 
        the Secretary of Defense, may allocate withheld allowances for 
        the production and consumption of class II, group II substances 
        for use as may be necessary to protect the national security 
        interests of the United States if the Administrator, in 
        consultation with the Secretary of Defense, finds that adequate 
        substitutes are not available and that the production or 
        consumption of such substance is necessary to protect such 
        national security interest.
    ``(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.
    ``(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.
    ``(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.
            ``(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.
            ``(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).
            ``(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.
    ``(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.
    ``(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'.
    ``(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.
    ``(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).
    ``(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:
            ``(1) The United States may transfer production allowances 
        to another party to such agreement or amendment if, at the time 
        of the transfer, the Administrator establishes revised 
        production limits for the United States accounting for the 
        transfer in accordance with regulations promulgated pursuant to 
        this subsection.
            ``(2) The United States may acquire production allowances 
        from another party to such agreement or amendment if, at the 
        time of the transfer, the Administrator finds that the other 
        party has revised its domestic production limits in the same 
        manner as provided with respect to transfers by the United 
        States in the regulations promulgated pursuant to this 
        subsection.
    ``(l) Relationship to Other Laws.--
            ``(1) State laws.--For purposes of section 116, the 
        requirements of this section for class II, group II substances 
        shall be treated as requirements for the control and abatement 
        of air pollution.
            ``(2) Multilateral agreements.--Section 614 shall apply to 
        the provisions of this section concerning class II, group II 
        substances, except that for the words `Montreal Protocol' there 
        shall be substituted the words `Montreal Protocol, or any 
        applicable multilateral agreement to which the United States is 
        a party or otherwise adheres that restricts the production or 
        consumption of class II, group II substances,' and for the 
        words `Article 4 of the Montreal Protocol' there shall be 
        substituted `any provision of such multilateral agreement 
        regarding trade with non-parties'.
            ``(3) Federal facilities.--For purposes of section 118, the 
        requirements of this section for class II, group II substances 
        and corresponding State, interstate, and local requirements, 
        administrative authority, and process and sanctions shall be 
        treated as requirements for the control and abatement of air 
        pollution within the meaning of section 118.
    ``(m) Carbon Dioxide Equivalent Value.--(1) In lieu of section 
602(e), the provisions of this subsection shall apply in the case of 
class II, group II substances. Simultaneously with establishing the 
list of class II, group II substances, and simultaneously with any 
addition to that list, the Administrator shall publish the carbon 
dioxide equivalent value of each listed class II, group II substance, 
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 class II, group II substance.
    ``(2) Not later than February 1, 2017, and not less than every 5 
years thereafter, the Administrator shall--
            ``(A) review, and if appropriate, revise the carbon dioxide 
        equivalent values established for class II, group II substances 
        based on a determination of the number of metric tons of carbon 
        dioxide that makes the same contributions to global warming 
        over 100 years as 1 metric ton of each class II, group II 
        substance; and
            ``(B) publish in the Federal Register the results of that 
        review and any revisions.
    ``(3) A revised determination published in the Federal Register 
under paragraph (2)(B) shall take effect for production of class II, 
group II substances, consumption of class II, group II substances, and 
importation of products containing class II, group II substances 
starting on January 1 of the first calendar year starting at least 9 
months after the date on which the revised determination was published.
    ``(4) The Administrator may decrease the frequency of review and 
revision under paragraph (2) if the Administrator determines that such 
decrease is appropriate in order to synchronize such review and 
revisions with any similar review process carried out pursuant to the 
United Nations Framework Convention on Climate Change, an agreement 
negotiated under that convention, The Vienna Convention for the 
Protection of the Ozone Layer, or 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.
    ``(n) Reporting Requirements.--In lieu of subsections (b) and (c) 
of section 603, paragraphs (1) and (2) of this subsection shall apply 
in the case of class II, group II substances:
            ``(1) In general.--On a quarterly basis, or such other 
        basis (not less than annually) as determined by the 
        Administrator, each person who produced, imported, or exported 
        a class II, group II substance, or who imported a product 
        containing a class II, group II substance, shall file a report 
        with the Administrator setting forth the carbon dioxide 
        equivalent amount of the substance that such person produced, 
        imported, or exported, as well as the amount that was contained 
        in products imported by that person, during the preceding 
        reporting period. Each such report shall be signed and attested 
        by a responsible officer. If all other reporting is complete, 
        no such report shall be required from a person after April 1 of 
        the calendar year after such person permanently ceases 
        production, importation, and exportation of the substance, as 
        well as importation of products containing the substance, and 
        so notifies the Administrator in writing. 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 or consumption of class II, group II substances, 
        then, if all other reporting is complete, no such report shall 
        be required from a person with respect to importation from 
        parties to such agreement or amendment of products containing 
        any class II, group II substance restricted by such agreement 
        or amendment, after April 1 of the calendar year following the 
        year during which such agreement or amendment enters into 
        force.
            ``(2) Baseline reports for class ii, group ii substances.--
                    ``(A) In general.--Unless such information has been 
                previously reported to the Administrator, on the date 
                on which the first report under paragraph (1) of this 
                subsection is required to be filed, each person who 
                produced, imported, or exported a class II, group II 
                substance, or who imported a product containing a class 
                II substance, (other than a substance added to the list 
                of class II, group II substances after the publication 
                of the initial list of such substances under this 
                section), shall file a report with the Administrator 
                setting forth the amount of such substance that such 
                person produced, imported, exported, or that was 
                contained in products imported by that person, during 
                each of calendar years 2004, 2005, and 2006.
                    ``(B) Producers.--In reporting under subparagraph 
                (A), each person who produced in the United States a 
                class II substance during calendar year 2004, 2005, or 
                2006 shall--
                            ``(i) report all acquisitions or purchases 
                        of class II substances during each of calendar 
                        years 2004, 2005, and 2006 from all other 
                        persons who produced in the United States a 
                        class II substance during calendar year 2004, 
                        2005, or 2006, and supply evidence of such 
                        acquisitions and purchases as deemed necessary 
                        by the Administrator; and
                            ``(ii) report all transfers or sales of 
                        class II substances during each of calendar 
                        years 2004, 2005, and 2006 to all other persons 
                        who produced in the United States a class II 
                        substance during calendar year 2004, 2005, or 
                        2006, and supply evidence of such transfers and 
                        sales as deemed necessary by the Administrator.
                    ``(C) Added substances.--In the case of a substance 
                added to the list of class II, group II substances 
                after publication of the initial list of such 
                substances under this section, each person who 
                produced, imported, exported, or imported products 
                containing such substance in calendar year 2004, 2005, 
                or 2006 shall file a report with the Administrator 
                within 180 days after the date on which such substance 
                is added to the list, setting forth the amount of the 
                substance that such person produced, imported, and 
                exported, as well as the amount that was contained in 
                products imported by that person, in calendar years 
                2004, 2005, and 2006.
    ``(o) Stratospheric Ozone and Climate Protection Fund.--
            ``(1) In general.--There is established in the Treasury of 
        the United States a Stratospheric Ozone and Climate Protection 
        Fund.
            ``(2) Deposits.--The Administrator shall deposit all 
        proceeds from the auction and non-auction sale of allowances 
        under this section into the Stratospheric Ozone and Climate 
        Protection Fund.
            ``(3) Use.--Amounts deposited into the Stratospheric Ozone 
        and Climate Protection Fund shall be available, subject to 
        appropriations, exclusively for the following purposes:
                    ``(A) Recovery, recycling, and reclamation.--The 
                Administrator may use funds to establish a program to 
                incentivize the recovery, recycling, and reclamation of 
                any Class II substances in order to reduce emissions of 
                such substances.
                    ``(B) Multilateral fund.--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, the Administrator may use 
                funds to meet any related contribution obligation of 
                the United States to the Multilateral Fund for the 
                Implementation of the Montreal Protocol or similar 
                multilateral fund established under such multilateral 
                agreement.
                    ``(C) Best-in-class appliances deployment 
                program.--The Secretary of Energy may use funds to 
                establish and carry out a program, to be known as the 
                `Best-in-Class Appliances Deployment Program'--
                            ``(i) to provide bonus payments to 
                        retailers or distributors for sales of best-in-
                        class high-efficiency household appliance 
                        models, high-efficiency installed building 
                        equipment, and high-efficiency consumer 
                        electronics, with the goals of--
                                    ``(I) accelerating the reduction in 
                                consumption of hydrochlorofluorocarbons 
                                (measured on a global warming 
                                potential-weighted basis);
                                    ``(II) reducing life-cycle costs 
                                for consumers;
                                    ``(III) encouraging innovation; and
                                    ``(IV) maximizing energy savings 
                                and public benefit;
                            ``(ii) to provide bounties to retailers and 
                        manufacturers for the replacement, retirement, 
                        and recycling of old, inefficient, and 
                        environmentally harmful products; and
                            ``(iii) to provide premium awards to 
                        manufacturers for developing and producing new 
                        super-efficient best-in-class products.
                    ``(D) Low global warming product transition 
                assistance program.--
                            ``(i) In general.--The Administrator, in 
                        consultation with the Secretary of Energy, may 
                        utilize funds in fiscal years 2012 through 2022 
                        to establish a program to provide financial 
                        assistance to manufacturers of products 
                        containing class II, group II substances to 
                        facilitate the transition to products that 
                        contain or utilize alternative substances with 
                        no or low carbon dioxide equivalent value and 
                        no ozone depletion potential.
                            ``(ii) Definition of products.--In this 
                        subparagraph, the term `products' means 
                        refrigerators, freezers, dehumidifiers, air 
                        conditioners, foam insulation, technical 
                        aerosols, fire protection systems, and 
                        semiconductors.
                            ``(iii) Financial assistance.--The 
                        Administrator may provide financial assistance 
                        to manufacturers pursuant to clause (i) for--
                                    ``(I) the design and configuration 
                                of new products that use alternative 
                                substances with no or low carbon 
                                dioxide equivalent value and no ozone 
                                depletion potential; and
                                    ``(II) the redesign and retooling 
                                of facilities for the manufacture of 
                                products in the United States that use 
                                alternative substances with no or low 
                                carbon dioxide equivalent value and no 
                                ozone depletion potential.
                            ``(iv) Reports.--For any fiscal year during 
                        which the Administrator provides financial 
                        assistance pursuant to this subparagraph, the 
                        Administrator shall submit a report to the 
                        Congress within 3 months of the end of such 
                        fiscal year detailing the amounts, recipients, 
                        specific purposes, and results of the financial 
                        assistance provided.''.
    (b) Table of Contents.--The table of contents of title VI of the 
Clean Air Act (42 U.S.C. 7671 et seq.) is amended by adding the 
following new item at the end thereof:

``Sec. 619. Hydrofluorocarbons (HFCs).''.
    (c) Fire Suppression Agents.--Section 605(a) of the Clean Air Act 
(42 U.S.C. 7671(a)) is amended--
            (1) by striking ``or'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; or''; and
            (3) by adding the following new paragraph after paragraph 
        (3):
            ``(4) is listed as acceptable for use as a fire suppression 
        agent for nonresidential applications in accordance with 
        section 612(c).''.
    (d) Motor Vehicle Air Conditioners.--
            (1) Section 609(e) of the Clean Air Act (42 U.S.C. 
        7671h(e)) is amended by inserting ``, group I'' after each 
        reference to ``class II'' in the text and heading.
            (2) Section 609 of the Clean Air Act (42 U.S.C. 7671h) is 
        amended by adding the following new subsection after subsection 
        (e):
    ``(f) Class II, Group II Substances.--
            ``(1) Repair.--The Administrator may promulgate regulations 
        establishing requirements for repair of motor vehicle air 
        conditioners prior to adding a class II, group II substance.
            ``(2) Small containers.--(A) The Administrator may 
        promulgate regulations establishing servicing practices and 
        procedures for recovery of class II, group II substances from 
        containers which contain less than 20 pounds of such class II, 
        group II substances.
            ``(B) Not later than 18 months after enactment of this 
        subsection, the Administrator shall either promulgate 
        regulations requiring that containers which contain less than 
        20 pounds of a class II, group II substance be equipped with a 
        device or technology that limits refrigerant emissions and 
        leaks from the container and limits refrigerant emissions and 
        leaks during the transfer of refrigerant from the container to 
        the motor vehicle air conditioner or issue a determination that 
        such requirements are not necessary or appropriate.
            ``(C) Not later than 18 months after enactment of this 
        subsection, the Administrator shall promulgate regulations 
        establishing requirements for consumer education materials on 
        best practices associated with the use of containers which 
        contain less than 20 pounds of a class II, group II substance 
        and prohibiting the sale or distribution, or offer for sale or 
        distribution, of any class II, group II substance in any 
        container which contains less than 20 pounds of such class II, 
        group II substance, unless consumer education materials 
        consistent with such requirements are displayed and available 
        at point-of-sale locations, provided to the consumer, or 
        included in or on the packaging of the container which contain 
        less than 20 pounds of a class II, group II substance.
            ``(D) The Administrator may, through rulemaking, extend the 
        requirements established under this paragraph to containers 
        which contain 30 pounds or less of a class II, group II 
        substance if the Administrator determines that such action 
        would produce significant environmental benefits.
            ``(3) Restriction of sales.--Effective January 1, 2014, no 
        person may sell or distribute or offer to sell or distribute or 
        otherwise introduce into interstate commerce any motor vehicle 
        air conditioner refrigerant in any size container unless the 
        substance has been found acceptable for use in a motor vehicle 
        air conditioner under section 612.''.
    (e) Safe Alternatives Policy.--Section 612(e) of the Clean Air Act 
(42 U.S.C. 7671k(e)) is amended by inserting ``or class II'' after each 
reference to ``class I''.

SEC. 123. BLACK CARBON.

    (a) Study of Black Carbon Emissions.--
            (1) Definition of black carbon.--In this subsection, the 
        term ``black carbon'' means any light-absorbing graphitic (or 
        elemental) particle produced by incomplete combustion.
            (2) Study.--The Administrator, in consultation with the 
        Secretary of Energy, the Secretary of State, and the heads of 
        the National Oceanic and Atmospheric Administration, the 
        National Aeronautics and Space Administration, the United 
        States Agency for International Development, the National 
        Institutes of Health, the Centers for Disease Control and 
        Prevention, National Institute of Standards and Technology, and 
        other relevant Federal departments and agencies and 
        representatives of appropriate industry and environmental 
        groups, shall conduct a 4-phase study of black carbon 
        emissions, the phases of which shall be the following:
                    (A) Phase i-universal definition.--The 
                Administrator shall conduct phase I of the study under 
                this subsection to carry out measures to establish for 
                the scientific community standard definitions of the 
                terms--
                            (i) black carbon; and
                            (ii) organic carbon.
                    (B) Phase ii-sources and technologies.--The 
                Administrator shall conduct phase II of the study under 
                this subsection to summarize the available scientific 
                and technical information concerning--
                            (i) the identification of the major sources 
                        of black carbon emissions in the United States 
                        and throughout the world;
                            (ii) an estimate of--
                                    (I) the quantity of current and 
                                projected future black carbon emissions 
                                from those sources; and
                                    (II) the net climate effects of the 
                                emissions;
                            (iii) the most recent scientific data 
                        relevant to the public health- and climate-
                        related impacts of black carbon emissions and 
                        associated emissions of organic carbon, 
                        nitrogen oxides, and sulfur oxides from the 
                        sources identified under clause (i);
                            (iv) the most effective control strategies 
                        for additional domestic and international 
                        reductions in black carbon emissions, taking 
                        into consideration lifecycle analysis, cost-
                        effectiveness, and the net climate impact of 
                        technologies, operations, and strategies, such 
                        as--
                                    (I) diesel particulate filters on 
                                existing diesel on- and off-road 
                                engines; and
                                    (II) particulate emission reduction 
                                measures for marine vessels;
                            (v) carbon dioxide equivalency factors, 
                        global/regional modeling, or other metrics to 
                        compare the global warming and other climate 
                        effects of black carbon emissions with carbon 
                        dioxide and other greenhouse gas emissions; and
                            (vi) the health benefits associated with 
                        additional black carbon emission reductions.
                    (C) Phase iii-international funding.--The 
                Administrator shall conduct phase III of the study 
                under this subsection--
                            (i) to summarize the amount, type, and 
                        direction of all actual and potential 
                        financial, technical, and related assistance 
                        provided by the United States to foreign 
                        countries to reduce, mitigate, or otherwise 
                        abate--
                                    (I) black carbon emissions; and
                                    (II) any health, environmental, and 
                                economic impacts associated with those 
                                emissions; and
                            (ii) to identify opportunities, including 
                        action under existing authority, to achieve 
                        significant black carbon emission reductions in 
                        foreign countries through the provision of 
                        technical assistance or other approaches.
                    (D) Phase iv-research and development 
                opportunities.--The Administrator shall conduct phase 
                IV of the study under this subsection for the purpose 
                of providing to Congress recommendations regarding--
                            (i) areas of focus for additional research 
                        for cost-effective technologies, operations, 
                        and strategies with the highest potential to 
                        reduce black carbon emissions and protect 
                        public health in the United States and 
                        internationally; and
                            (ii) actions that the Federal Government 
                        could take to encourage or require additional 
                        black carbon emission reductions.
            (3) Reports.--The Administrator shall submit to Congress--
                    (A) by not later than 180 days after the date of 
                enactment of this Act, a report describing the results 
                of phases I and II of the study under subparagraphs (A) 
                and (B) of paragraph (2);
                    (B) by not later than 270 days after the date of 
                enactment of this Act, a report describing the results 
                of phase III of the study under paragraph (2)(C); and
                    (C) by not later than 1 year after the date of 
                enactment of this Act, a report describing the 
                recommendations developed for phase IV of the study 
                under paragraph (2)(D).
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection.
    (b) Black Carbon Mitigation.--Title VIII of the Clean Air Act (as 
amended by section 113 of division A) is amended by adding at the end 
the following:

                         ``PART E--BLACK CARBON

``SEC. 851. BLACK CARBON.

    ``(a) Domestic Black Carbon Mitigation.--
            ``(1) In general.--Taking into consideration the public 
        health and environmental impacts of black carbon emissions, 
        including the effects on global and regional warming, the 
        Arctic, and other snow and ice-covered surfaces, the 
        Administrator shall--
                    ``(A) not later than 2 years after the date of 
                enactment of this part, propose--
                            ``(i) regulations applicable to emissions 
                        of black carbon under the existing authorities 
                        of this Act; or
                            ``(ii) a finding that existing regulations 
                        promulgated pursuant to this Act adequately 
                        regulate black carbon emissions, which finding 
                        may be based on a finding that existing 
                        regulations, in the judgment of the 
                        Administrator--
                                    ``(I) address those sources that 
                                both contribute significantly to the 
                                total emissions of black carbon and 
                                provide the greatest potential for 
                                significant and cost-effective 
                                reductions in emissions of black 
                                carbon, under the existing authorities; 
                                and
                                    ``(II) reflect the greatest degree 
                                of emission reduction achievable 
                                through application of technology that 
                                will be available for such sources, 
                                giving appropriate consideration to 
                                cost, energy, and safety factors 
                                associated with the application of such 
                                technology; and
                    ``(B) not later than 3 years after the date of 
                enactment of this part, promulgate final regulations 
                under the existing authorities of this Act or finalize 
                the proposed finding.
            ``(2) Applicability of regulations.--Regulations 
        promulgated under paragraph (1) shall not apply to specific 
        types, classes, categories, or other suitable groupings of 
        emission sources that the Administrator finds are subject to 
        adequate regulation.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 124. STATES.

    Section 116 of the Clean Air Act (42 U.S.C. 7416) is amended by 
adding the following at the end thereof: ``For the purposes of this 
section, the phrases `standard or limitation respecting emissions of 
air pollutants' and `requirements respecting control or abatement of 
air pollution' shall include any provision to: limit greenhouse gas 
emissions, require surrender to the State or a political subdivision 
thereof of emission allowances or offset credits established or issued 
under this Act, and require the use of such allowances or credits as a 
means of demonstrating compliance with requirements established by a 
State or political subdivision thereof.''.

SEC. 125. STATE PROGRAMS.

    Title VIII of the Clean Air Act (as amended by section 123(b)) is 
amended by adding at the end the following:

                        ``PART F--MISCELLANEOUS

``SEC. 861. STATE PROGRAMS.

    ``(a) In General.--Notwithstanding section 116, if a Federal 
auction is conducted, by the deadline of March 31, 2011, as established 
in section 778, no State or political subdivision thereof shall 
implement or enforce a comprehensive greenhouse gas emission limitation 
program that covers any capped emissions emitted during the years 2012 
through 2017.
    ``(b) Deadline.--Notwithstanding section 116, in the event the 
March 31, 2011 auction is delayed, no State or political subdivision 
thereof shall enforce a comprehensive greenhouse gas emission 
limitation program that covers any capped emissions emitted during the 
period that commences at least 9 months after the date of the first 
auction as set out in section 778, through 2017.
    ``(c) Definition of Comprehensive Greenhouse Gas Emission 
Limitation Program.--For purposes of this section, the term 
`comprehensive greenhouse gas emission limitation program' means a 
system of greenhouse gas regulation under which a State or political 
subdivision issues a limited number of tradable instruments in the 
nature of emission allowances and requires that sources within its 
jurisdiction surrender such tradable instruments for each unit of 
greenhouse gases emitted during a compliance period. For purposes of 
this section, a `comprehensive greenhouse gas emission limitation 
program' does not include a target or limit on greenhouse gas emissions 
adopted by a State or political subdivision that is implemented other 
than through the issuance and surrender of a limited number of tradable 
instruments in the nature of emission allowances, nor does it include 
any other standard, limit, regulation, or program to reduce greenhouse 
gas emissions that is not implemented through the issuance and 
surrender of a limited number of tradable instruments in the nature of 
emission allowances. For purposes of this section, the term 
`comprehensive greenhouse gas emission limitation program' does not 
include, among other things, fleet-wide motor vehicle emission 
requirements that allow greater emissions with increased vehicle 
production, or requirements that fuels, or other products, meet an 
average pollution emission rate or lifecycle greenhouse gas standard.

``SEC. 862. GRANTS FOR SUPPORT OF AIR POLLUTION CONTROL PROGRAMS.

    ``The Administrator is authorized to make grants to air pollution 
control agencies pursuant to section 105 for purposes of assisting in 
the implementation of programs to address global warming established 
under the Clean Energy Jobs and American Power Act.

``SEC. 863. REDUCING ACID RAIN AND MERCURY POLLUTION.

    ``(a) In General.--Not later than 18 months after the date of 
enactment of this part, the Administrator shall submit to Congress a 
report that analyzes the effects of different carbon dioxide reduction 
strategies and technologies on the emissions of mercury, sulfur 
dioxide, and nitrogen oxide, which cause acid rain, particulate matter, 
ground-level ozone, mercury contamination, and other environmental 
problems.
    ``(b) Inclusions.--The report under subsection (a) shall include--
            ``(1) an assessment of a variety of carbon reduction 
        technologies, including the application of various carbon 
        capture and sequestration technologies for new and existing 
        power plants;
            ``(2) an assessment of the current scientific and technical 
        understanding of the interplay between the various technologies 
        and emissions of air pollutants;
            ``(3) identification of hurdles to strategies that could 
        cost-effectively reduce emissions of multiple pollutants; and
            ``(4) appropriate recommendations of the Administrator, if 
        any.''.

SEC. 126. ENFORCEMENT.

    (a) Remand.--Section 307(b) of the Clean Air Act (42 U.S.C. 
7607(b)) is amended by adding the following new paragraph at the end 
thereof:
            ``(3) If the court determines that any action of the 
        Administrator is arbitrary, capricious, or otherwise unlawful, 
        the court may remand such action, without vacatur, if vacatur 
        would impair or delay protection of the environment or public 
        health or otherwise undermine the timely achievement of the 
        purposes of this Act.
            ``(4) If the court determines that any action of the 
        Administrator is arbitrary, capricious, or otherwise unlawful, 
        and remands the matter to the Administrator, the Administrator 
        shall complete final action on remand within an expeditious 
        time period not longer than the time originally allowed for the 
        action or 1 year, whichever is less, unless the court on motion 
        determines that a shorter or longer period is necessary, 
        appropriate, and consistent with the purposes of this Act. The 
        court of appeals shall have jurisdiction to enforce a deadline 
        for action on remand under this paragraph.''.
    (b) Petition for Reconsideration.--Section 307(d)(7)(B) of the 
Clean Air Act (42 U.S.C. 7607(d)(7)(B)) is amended as follows:
            (1) By inserting after the second sentence ``If a petition 
        for reconsideration is filed, the Administrator shall take 
        final action on such petition, including promulgation of final 
        action either revising or determining not to revise the action 
        for which reconsideration is sought, within 150 days after the 
        petition is received by the Administrator or the petition shall 
        be deemed denied for the purpose of judicial review.''.
            (2) By amending the third sentence to read as follows: 
        ``Such person may seek judicial review of such denial, or of 
        any other final action, by the Administrator, in response to a 
        petition for reconsideration, in the United States court of 
        appeals for the appropriate circuit (as provided in subsection 
        (b)).''.
    (c) Petition for Review.--Section 307(b)(1) of the Clean Air Act 
(42 U.S.C. 7607(b)(1)) is amended by inserting after the second 
sentence the following: ``Any person may file a petition for review of 
action by the Administrator as provided in this subsection.''.

SEC. 127. FORESTRY SECTOR GREENHOUSE GAS ACCOUNTING.

    (a) In General.--The Administrator, in consultation with the 
Secretary of Agriculture and the Secretary of the Interior, shall 
provide an annual accounting of sequestration and emissions of 
greenhouse gases from forests and forest products, including--
            (1) sequestration, including sequestration resulting from 
        natural forest growth or other natural ecosystem processes, 
        forest management practices, afforestation, or reforestation;
            (2) emissions resulting from forest management practices, 
        timber harvest, deforestation, or conversion between forest 
        types or to cropland or other nonforested uses; and
            (3) transfers of carbon through forest products from the 
        forest sector to other sectors, including the waste, 
        manufacturing and milling, and energy sectors.
    (b) Scale of Accounting.--Accounting under subsection (a) shall be 
provided, at a minimum, for--
            (1) Federal, other public, tribal, and private land of 
        ownerships larger than 5,000 acres on which forestry is 
        regularly practiced; and
            (2) any forest land on which conversion described in 
        subsection (a)(2) occurs.
    (c) Basis of Accounting.--Accounting under subsection (a) shall be 
based on information available from existing sources, including 
information--
            (1) collected for tax purposes;
            (2) from the Forest Inventory Analysis of the Forest 
        Service;
            (3) collected for regulatory purposes; and
            (4) collected as part of standard industry practices, such 
        as industry updates on inventories of timber.
    (d) Authority of Administrator.--
            (1) In general.--Nothing in this section authorizes the 
        Administrator to require new generation of data by forest land 
        owners.
            (2) Need for additional information.--If the Administrator 
        determines that additional information not available from 
        current sources is necessary to carry out the purposes of this 
        section, the Administrator shall submit to Congress a report 
        that describes the necessary information and new authority that 
        would be required to collect that information.

SEC. 128. CONFORMING AMENDMENTS.

    (a) Federal Enforcement.--Section 113 of the Clean Air Act (42 
U.S.C. 7413) is amended as follows:
            (1) In subsection (a)(3), by striking ``or title VI,'' and 
        inserting ``title VI, title VII, or title VIII''.
            (2) In subsection (b), by striking ``or a major stationary 
        source'' and inserting ``a major stationary source, or a 
        covered EGU under title VIII'' in the material preceding 
        paragraph (1).
            (3) In paragraph (2) of subsection (b), by striking ``or 
        title VI'' and inserting ``title VI, title VII, or title 
        VIII''.
            (4) In subsection (c)--
                    (A) in the first sentence of paragraph (1), by 
                striking ``or title VI (relating to stratospheric ozone 
                control),'' and inserting ``title VI, title VII, or 
                title VIII,''; and
                    (B) in the first sentence of paragraph (3), by 
                striking ``or VI'' and inserting ``VI, VII, or VIII''.
            (5) In subsection (d)(1)(B), by striking ``or VI'' and 
        inserting ``VI, VII, or VIII''.
            (6) In subsection (f), in the first sentence, by striking 
        ``or VI'' and inserting ``VI, VII, or VIII''.
    (b) Retention of State Authority.--Section 116 of the Clean Air Act 
(42 U.S.C. 7416) is amended as follows:
            (1) By striking ``and 233'' and inserting ``233''.
            (2) By striking ``of moving sources)'' and inserting ``of 
        moving sources), and 861 (preempting certain State greenhouse 
        gas programs for a limited time)''.
    (c) Inspections, Monitoring, and Entry.--Section 114(a) of the 
Clean Air Act (42 U.S.C. 7414(a)) is amended by striking ``section 
112,'' and all that follows through ``(ii)'' and inserting the 
following: ``section 112, or any regulation of greenhouse gas emissions 
under title VII or VIII, (ii)''.
    (d) Enforcement.--Subsection (f) of section 304 of the Clean Air 
Act (42 U.S.C. 7604(f)) is amended as follows:
            (1) By striking ``; or'' at the end of paragraph (3) 
        thereof and inserting a comma.
            (2) By striking the period at the end of paragraph (4) 
        thereof and inserting ``, or''.
            (3) By adding the following after paragraph (4) thereof:
            ``(5) any requirement of title VII or VIII.''.
    (e) Administrative Proceedings and Judicial Review.--Section 307 of 
the Clean Air Act (42 U.S.C. 7607) is amended as follows:
            (1) In subsection (a), by striking ``, or section 306'' and 
        inserting ``section 306, or title VII or VIII''.
            (2) In subsection (b)(1)--
                    (A) by striking ``,,'' and inserting ``,'' in each 
                place such punctuation appears; and
                    (B) by striking ``section 120,'' in the first 
                sentence and inserting ``section 120, any final action 
                under title VII or VIII,''.
            (3) In subsection (d)(1) by amending subparagraph (S) to 
        read as follows:
                    ``(S) the promulgation or revision of any 
                regulation under title VII or VIII,''.
    (f) Technical Amendment.--Title IV of the Clean Air Act (relating 
to noise pollution) (42 U.S.C. 7641 et seq.)--
            (1) is amended by redesignating sections 401 through 403 as 
        sections 901 through 903, respectively; and
            (2) is redesignated as title IX and moved to appear at the 
        end of that Act.
    (g) Amendments Clarifying Regulation of Greenhouse Gases Under 
Clean Air Act.--
            (1) Air quality criteria and control techniques.--Section 
        108(a) of the Clean Air Act (42 U.S.C. 7408(a)) is amended by 
        adding at the end the following:
            ``(3) Prohibition on listing of greenhouse gases.--On and 
        after the date of enactment of this paragraph, the 
        Administrator shall not include on the list of pollutants under 
        this subsection any greenhouse gas on the basis of any effect 
        the greenhouse gas may have on climate change.''.
            (2) Hazardous air pollutants.--Section 112 of the Clean Air 
        Act (42 U.S.C. 7412) is amended by adding at the end the 
        following:
            ``(20) Greenhouse gas limitation.--No greenhouse gas may be 
        added to the list of hazardous air pollutants under this 
        section unless the greenhouse gas meets the criteria described 
        in subsection (b) independent of the effects of the greenhouse 
        gas on climate change.''.
            (3) International air pollution.--Section 115(c) of the 
        Clean Air Act (42 U.S.C. 7415(c)) is amended--
                    (A) by striking ``(c) This section'' and inserting 
                the following:
            ``(3) Applicability.--
                    ``(A) Foreign countries.--This section''; and
                    (B) by adding at the end the following:
                    ``(B) Greenhouse gases.--This section does not 
                apply to any greenhouse gas with respect to the effects 
                of the greenhouse gas on climate change.''.
            (4) Definition of major emitting facility.--Section 169(1) 
        of the Clean Air Act (42 U.S.C. 7479(1)) is amended--
                    (A) in the first sentence, by inserting ``(other 
                than any greenhouse gas), or 25,000 tons per year of 
                carbon dioxide equivalent for any greenhouse gas or 
                combination of greenhouse gases'' after ``one hundred 
                tons per year or more of any air pollutant,''; and
                    (B) in the second sentence, by inserting ``(other 
                than any greenhouse gas), or 25,000 tons per year of 
                carbon dioxide equivalent for any greenhouse gas or 
                combination of greenhouse gases'' after ``two hundred 
                fifty tons per year or more of any air pollutant''.
            (5) Permits.--Title V of the Clean Air Act (42 U.S.C. 7661 
        et seq.) is amended by adding at the end the following:

``SEC. 508. EMISSIONS OF GREENHOUSE GASES.

    ``Notwithstanding any provision of this title or title III, no 
stationary source shall be required to apply for, or operate pursuant 
to, a permit under this title solely because the stationary source, 
including an agricultural source, emits less than 25,000 tons per year 
of any greenhouse gas or combination of greenhouse gases that are 
regulated solely because of the effect of those gases on climate 
change.''.
    (h) Containers of Class I and Class II Substances.--Section 608(c) 
of the Clean Air Act (42 U.S.C. 7671g(c)) is amended by adding at the 
end the following:
            ``(3) Containers of class i and class ii substances.--
                    ``(A) Definition of refillable container.--In this 
                paragraph, the term `refillable container' means a 
                container that is designed to be refilled.
                    ``(B) Regulations.--Not later than 2 years after 
                the date of enactment of this paragraph, the 
                Administrator shall revise regulations promulgated 
                under this section to require that only a refillable 
                container may be used to hold 20 pounds or more of a 
                class I substance or class II substance.''.

SEC. 129. DAVIS-BACON COMPLIANCE.

    (a) In General.--Notwithstanding any other provision of law and in 
a manner consistent with other provisions in this Act, to receive 
emission allowances or funding under this Act, or the amendments made 
by this Act, the recipient shall provide reasonable assurances that all 
laborers and mechanics employed by contractors and subcontractors on 
projects funded directly by or assisted in whole or in part by and 
through the Federal Government pursuant to this Act, or the amendments 
made by this Act, or by any entity established in accordance with this 
Act, or the amendments made by this Act, including the Carbon Storage 
Research Corporation, will 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 
of chapter 31 of title 40, United States Code (commonly known as the 
``Davis-Bacon Act''). With respect to the labor standards specified in 
this section, 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.
    (b) Exemption.--Neither subsection (a) nor the requirements of 
subchapter IV of chapter 31 of title 40, United States Code, shall 
apply to retrofitting of the following:
            (1) Single family homes (both attached and detached) under 
        section 164 of division A.
            (2) Owner-occupied residential units in larger buildings 
        that have their own dedicated space-conditioning systems under 
        section 164 of division A.
            (3) Residential buildings (as defined in section 164(a) of 
        division A) if designed for residential use by less than 4 
        families.
            (4) Nonresidential buildings (as defined in section 164(a) 
        of division A) if the net interior space of such nonresidential 
        building is less than 6,500 square feet.

                  Subtitle D--Carbon Market Assurance

SEC. 131. CARBON MARKET ASSURANCE.

    It is the sense of the Senate that there shall be a single, 
integrated carbon market oversight program--
            (1) to provide for effective and comprehensive market 
        oversight and enforcement;
            (2) to lower systemic risk and protect consumers;
            (3) to ensure market liquidity and allowance availability;
            (4) to enhance the price discovery function of such 
        markets, ensuring that the price for emission allowances and 
        offset credits reflects the marginal cost of abatement;
            (5) to prevent excessive speculation that contributes to 
        price volatility, including the establishment of robust 
        aggregate position limits and margin requirements;
            (6) to ensure that market mechanisms and associated 
        oversight support the environmental integrity of the program 
        established under title VII of the Clean Air Act (as added by 
        section 101 of this division);
            (7) to establish provisions for market transparency that 
        provide authority, resources, and information needed to prevent 
        fraud and manipulation in such markets;
            (8) to establish standards for trading as, and operation 
        of, trading facilities;
            (9) to ensure a well-functioning, well-regulated market, 
        including a futures market, designed to manage risk and 
        facilitate investment in emission reductions;
            (10) to establish clear, professional standards for 
        dealers, traders, and other market participants;
            (11) to provide for appropriate criminal and civil 
        penalties; and
            (12) to prevent any excessive leverage by market 
        participants that creates risk to the economy.

      Subtitle E--Ensuring Real Reductions in Industrial Emissions

SEC. 141. ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS.

    Title VII of the Clean Air Act (as amended by section 322 of 
division A) is amended by adding at the end the following:

       ``PART F--ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS

``SEC. 761. PURPOSES.

    ``The purposes of this part are--
            ``(1) to promote a strong global effort to significantly 
        reduce greenhouse gas emissions, and, through this global 
        effort, stabilize greenhouse gas concentrations in the 
        atmosphere at a level that will prevent dangerous anthropogenic 
        interference with the climate system;
            ``(2) to prevent an increase in greenhouse gas emissions in 
        countries other than the United States as a result of direct 
        and indirect compliance costs incurred under this title;
            ``(3) to provide a rebate to the owners and operators of 
        entities in domestic eligible industrial sectors for their 
        greenhouse gas emission costs incurred under this title, but 
        not for costs associated with other related or unrelated market 
        dynamics;
            ``(4) to design such rebates in a way that will prevent 
        carbon leakage while also rewarding innovation and facility-
        level investments in energy efficiency performance 
        improvements; and
            ``(5) to eliminate or reduce distribution of emission 
        allowances under this part when such distribution is no longer 
        necessary to prevent carbon leakage from eligible industrial 
        sectors.

``SEC. 762. DEFINITIONS.

    ``In this part:
            ``(1) Carbon leakage.--The term `carbon leakage' means any 
        substantial increase (as determined by the Administrator) in 
        greenhouse gas emissions by industrial entities located in 
        other countries if such increase is caused by an incremental 
        cost of production increase in the United States resulting from 
        the implementation of this title.
            ``(2) Eligible industrial sector.--The term `eligible 
        industrial sector' means an industrial sector determined by the 
        Administrator under section 763(b) to be eligible to receive 
        emission allowance rebates under this part.
            ``(3) Industrial sector.--
                    ``(A) In general.--The term `industrial sector' 
                means any sector that--
                            ``(i) is in the manufacturing sector (as 
                        defined in NAICS codes 31, 32, and 33); or
                            ``(ii) is part of, or an entire, sector 
                        that beneficiates or otherwise processes 
                        (including agglomeration) metal ores, including 
                        iron and copper ores, soda ash, or phosphate.
                    ``(B) Exclusion.--The term `industrial sector' does 
                not include any part of a sector that extracts metal 
                ores, soda ash, or phosphate.
            ``(4) NAICS.--The term `NAICS' means the North American 
        Industrial Classification System of 2002.
            ``(5) Output.--The term `output' means the total tonnage or 
        other standard unit of production (as determined by the 
        Administrator) produced by an entity in an industrial sector. 
        The output of the cement sector is hydraulic cement, and not 
        clinker.

``SEC. 763. ELIGIBLE INDUSTRIAL SECTORS.

    ``(a) List.--
            ``(1) Initial list.--Not later than June 30, 2011, the 
        Administrator shall publish in the Federal Register a list of 
        eligible industrial sectors pursuant to subsection (b). Such 
        list shall include the amount of the emission allowance rebate 
        per unit of production that shall be provided to entities in 
        each eligible industrial sector in the following two calendar 
        years pursuant to section 764.
            ``(2) Subsequent lists.--Not later than February 1, 2013, 
        and every 4 years thereafter, the Administrator shall publish 
        in the Federal Register an updated version of the list 
        published under paragraph (1).
    ``(b) Eligible Industrial Sectors.--
            ``(1) In general.--Not later than June 30, 2011, the 
        Administrator shall promulgate a rule designating, based on the 
        criteria under paragraph (2), the industrial sectors eligible 
        for emission allowance rebates under this part.
            ``(2) Presumptively eligible industrial sectors.--
                    ``(A) Eligibility criteria.--
                            ``(i) In general.--An owner or operator of 
                        an entity shall be eligible to receive emission 
                        allowance rebates under this part if such 
                        entity is in an industrial sector that is 
                        included in a six-digit classification of the 
                        NAICS that meets the criteria in both clauses 
                        (ii) and (iii), or the criteria in clause (iv).
                            ``(ii) Energy or greenhouse gas 
                        intensity.--As determined by the Administrator, 
                        the industrial sector had--
                                    ``(I) an energy intensity of at 
                                least 5 percent, calculated by dividing 
                                the cost of purchased electricity and 
                                fuel costs of the sector by the value 
                                of the shipments of the sector, based 
                                on data described in subparagraph (D); 
                                or
                                    ``(II) a greenhouse gas intensity 
                                of at least 5 percent, calculated by 
                                dividing--
                                            ``(aa) the number 20 
                                        multiplied by the number of 
                                        tons of carbon dioxide 
                                        equivalent greenhouse gas 
                                        emissions (including direct 
                                        emissions from fuel combustion, 
                                        process emissions, and indirect 
                                        emissions from the generation 
                                        of electricity used to produce 
                                        the output of the sector) of 
                                        the sector based on data 
                                        described in subparagraph (D); 
                                        by
                                            ``(bb) the value of the 
                                        shipments of the sector, based 
                                        on data described in 
                                        subparagraph (D).
                            ``(iii) Trade intensity.--As determined by 
                        the Administrator, the industrial sector had a 
                        trade intensity of at least 15 percent, 
                        calculated by dividing the value of the total 
                        imports and exports of such sector by the value 
                        of the shipments plus the value of imports of 
                        such sector, based on data described in 
                        subparagraph (D).
                            ``(iv) Very high energy or greenhouse gas 
                        intensity.--As determined by the Administrator, 
                        the industrial sector had an energy or 
                        greenhouse gas intensity, as calculated under 
                        clause (ii)(I) or (II), of at least 20 percent.
                    ``(B) Metal and phosphate production classified 
                under more than one naics code.--For purposes of this 
                section, the Administrator shall--
                            ``(i) aggregate data for the beneficiation 
                        or other processing (including agglomeration) 
                        of metal ores, including iron and copper ores, 
                        soda ash, or phosphate with subsequent steps in 
                        the process of metal and phosphate 
                        manufacturing, regardless of the NAICS code 
                        under which such activity is classified; and
                            ``(ii) aggregate data for the manufacturing 
                        of steel with the manufacturing of steel pipe 
                        and tube made from purchased steel in a 
                        nonintegrated process.
                    ``(C) Exclusion.--The petroleum refining sector 
                shall not be an eligible industrial sector.
                    ``(D) Data sources.--
                            ``(i) Electricity and fuel costs, value of 
                        shipments.--The Administrator shall determine 
                        electricity and fuel costs and the value of 
                        shipments under this subsection from data from 
                        the United States Census Annual Survey of 
                        Manufacturers. The Administrator shall take the 
                        average of data from as many of the years of 
                        2004, 2005, and 2006 for which such data are 
                        available. If such data are unavailable, the 
                        Administrator shall make a determination based 
                        upon 2002 or 2006 data from the most detailed 
                        industrial classification level of Energy 
                        Information Agency's Manufacturing Energy 
                        Consumption Survey (using 2006 data if it is 
                        available) and the 2002 or 2007 Economic Census 
                        of the United States (using 2007 data if it is 
                        available). If data from the Manufacturing 
                        Energy Consumption Survey or Economic Census 
                        are unavailable for any sector at the six-digit 
                        classification level in the NAICS, then the 
                        Administrator may extrapolate the information 
                        necessary to determine the eligibility of a 
                        sector under this paragraph from available 
                        Manufacturing Energy Consumption Survey or 
                        Economic Census data pertaining to a broader 
                        industrial category classified in the NAICS. If 
                        data relating to the beneficiation or other 
                        processing (including agglomeration) of metal 
                        ores, including iron and copper ores, soda ash, 
                        or phosphate are not available from the 
                        specified data sources, the Administrator shall 
                        use the best available Federal or State 
                        government data and may use, to the extent 
                        necessary, representative data submitted by 
                        entities that perform such beneficiation or 
                        other processing (including agglomeration), in 
                        making a determination. Fuel cost data shall 
                        not include the cost of fuel used as feedstock 
                        by an industrial sector.
                            ``(ii) Imports and exports.--The 
                        Administrator shall base the value of imports 
                        and exports under this subsection on United 
                        States International Trade Commission data. The 
                        Administrator shall take the average of data 
                        from as many of the years of 2004, 2005, and 
                        2006 for which such data are available. If data 
                        from the United States International Trade 
                        Commission are unavailable for any sector at 
                        the six-digit classification level in the 
                        NAICS, then the Administrator may extrapolate 
                        the information necessary to determine the 
                        eligibility of a sector under this paragraph 
                        from available United States International 
                        Trade Commission data pertaining to a broader 
                        industrial category classified in the NAICS.
                            ``(iii) Percentages.--The Administrator 
                        shall round the energy intensity, greenhouse 
                        gas intensity, and trade intensity percentages 
                        under subparagraph (A) to the nearest whole 
                        number.
                            ``(iv) Greenhouse gas emission 
                        calculations.--When calculating the tons of 
                        carbon dioxide equivalent greenhouse gas 
                        emissions for each sector under subparagraph 
                        (A)(ii)(II)(aa), the Administrator--
                                    ``(I) shall use the best available 
                                data from as many of the years 2004, 
                                2005, and 2006 for which such data is 
                                available; and
                                    ``(II) may, to the extent necessary 
                                with respect to a sector, use economic 
                                and engineering models and the best 
                                available information on technology 
                                performance levels for such sector.
            ``(3) Administrative determination of additional eligible 
        industrial sectors.--
                    ``(A) Updated trade intensity data.--The 
                Administrator shall designate as eligible to receive 
                emission allowance rebates under this part an 
                industrial sector that--
                            ``(i) met the energy or greenhouse gas 
                        intensity criteria in paragraph (2)(A)(ii) as 
                        of the date of promulgation of the rule under 
                        paragraph (1); and
                            ``(ii) meets the trade intensity criteria 
                        in paragraph (2)(A)(iii), using data from any 
                        year after 2006.
                    ``(B) Individual showing petition.--
                            ``(i) Petition.--In addition to designation 
                        under paragraph (2) or subparagraph (A) of this 
                        paragraph, the owner or operator of an entity 
                        in an industrial sector may petition the 
                        Administrator to designate as eligible 
                        industrial sectors under this part an entity or 
                        a group of entities that--
                                    ``(I) represent a subsector of a 
                                six-digit section of the NAICS code; 
                                and
                                    ``(II) meet the eligibility 
                                criteria in both clauses (ii) and (iii) 
                                of paragraph (2)(A), or the eligibility 
                                criteria in clause (iv) of paragraph 
                                (2)(A).
                            ``(ii) Data.--In making a determination 
                        under this subparagraph, the Administrator 
                        shall consider data submitted by the petitioner 
                        that is specific to the entity, data solicited 
                        by the Administrator from other entities in the 
                        subsector, if such other entities exist, and 
                        data specified in paragraph (2)(D).
                            ``(iii) Basis of subsector determination.--
                        The Administrator shall determine an entity or 
                        group of entities to be a subsector of a six-
                        digit section of the NAICS code based only upon 
                        the products manufactured and not the 
                        industrial process by which the products are 
                        manufactured, except that the Administrator may 
                        determine an entity or group of entities that 
                        manufacture a product from primarily virgin 
                        material to be a separate subsector from 
                        another entity or group of entities that 
                        manufacture the same product primarily from 
                        recycled material.
                            ``(iv) Use of most recent data.--In 
                        determining whether to designate a sector or 
                        subsector as an eligible industrial sector 
                        under this subparagraph, the Administrator 
                        shall use the most recent data available from 
                        the sources described in paragraph (2)(D), 
                        rather than the data from the years specified 
                        in paragraph (2)(D), to determine the trade 
                        intensity of such sector or subsector, but only 
                        for determining such trade intensity.
                            ``(v) Final action.--The Administrator 
                        shall take final action on such petition no 
                        later than 6 months after the petition is 
                        received by the Administrator.

``SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE REBATES.

    ``(a) Distribution Schedule.--
            ``(1) In general.--For each vintage year, the Administrator 
        shall distribute pursuant to this section emission allowances 
        made available under section 771(a)(5), not later than October 
        31 of the preceding calendar year. The Administrator shall make 
        such annual distributions to the owners and operators of each 
        entity in an eligible industrial sector in the amount of 
        emission allowances calculated under subsection (b), except 
        that--
                    ``(A) for vintage years 2012 and 2013, the 
                distribution for a covered entity shall be pursuant to 
                the entity's indirect carbon factor as calculated under 
                subsection (b)(3);
                    ``(B) for vintage year 2026 and thereafter, the 
                distribution shall be pursuant to the amount calculated 
                under subsection (b) multiplied by, for a sector--
                            ``(i) 90 percent for vintage year 2026;
                            ``(ii) 80 percent for vintage year 2027;
                            ``(iii) 70 percent for vintage year 2028;
                            ``(iv) 60 percent for vintage year 2029;
                            ``(v) 50 percent for vintage year 2030;
                            ``(vi) 40 percent for vintage year 2031;
                            ``(vii) 30 percent for vintage year 2032;
                            ``(viii) 20 percent for vintage year 2033;
                            ``(ix) 10 percent for vintage year 2034; 
                        and
                            ``(x) 0 percent for vintage year 2035 and 
                        thereafter.
            ``(2) Newly eligible sectors.--In addition to receiving a 
        distribution of emission allowances under this section in the 
        first distribution occurring after an industrial sector is 
        designated as eligible under section 763(b)(3), the owner or 
        operator of an entity in that eligible industrial sector may 
        receive a prorated share of any emission allowances made 
        available for distribution under this section that were not 
        distributed for the year in which the petition for eligibility 
        was granted under section 763(b)(3)(A).
            ``(3) Cessation of qualifying activities.--If, as 
        determined by the Administrator, a facility is no longer in an 
        eligible industrial sector designated under section 763--
                    ``(A) the Administrator shall not distribute 
                emission allowances to the owner or operator of such 
                facility under this section; and
                    ``(B) the owner or operator of such facility shall 
                return to the Administrator all allowances that have 
                been distributed to it for future vintage years and a 
                pro-rated amount of allowances distributed to the 
                facility under this section for the vintage year in 
                which the facility ceases to be in an eligible 
                industrial sector designated under section 763.
    ``(b) Calculation of Direct and Indirect Carbon Factors.--
            ``(1) In general.--
                    ``(A) Covered entities.--Except as provided in 
                subsection (a), for covered entities that are in 
                eligible industrial sectors, the amount of emission 
                allowance rebates shall be based on the sum of the 
                covered entity's direct and indirect carbon factors.
                    ``(B) Other eligible entities.--For entities that 
                are in eligible industrial sectors but are not covered 
                entities, the amount of emission allowance rebates 
                shall be based on the entity's indirect carbon factor.
                    ``(C) New entities.--Not later than 2 years after 
                the date of enactment of this title, the Administrator 
                shall issue regulations governing the distribution of 
                emission allowance rebates for the first and second 
                years of operation of a new entity in an eligible 
                industrial sector. These regulations shall provide 
                for--
                            ``(i) the distribution of emission 
                        allowance rebates to such entities based on 
                        comparable entities in the same sector; and
                            ``(ii) an adjustment in the third and 
                        fourth years of operation to reconcile the 
                        total amount of emission allowance rebates 
                        received during the first and second years of 
                        operation to the amount the entity would have 
                        received during the first and second years of 
                        operation had the appropriate data been 
                        available.
            ``(2) Direct carbon factor.--The direct carbon factor for a 
        covered entity for a vintage year is the product of--
                    ``(A) the average annual output of the covered 
                entity for the 2 years preceding the year of the 
                distribution; and
                    ``(B) the most recent calculation of the average 
                direct greenhouse gas emissions (expressed in tons of 
                carbon dioxide equivalent) per unit of output for all 
                covered entities in the sector, as determined by the 
                Administrator under paragraph (4).
            ``(3) Indirect carbon factor.--
                    ``(A) In general.--The indirect carbon factor for 
                an entity for a vintage year is the product obtained by 
                multiplying the average annual output of the entity for 
                the 2 years preceding the year of the distribution by 
                both the electricity emissions intensity factor 
                determined pursuant to subparagraph (B) and the 
                electricity efficiency factor determined pursuant to 
                subparagraph (C) for the year concerned.
                    ``(B) Electricity emissions intensity factor.--
                            ``(i) In general.--Each person selling 
                        electricity to the owner or operator of an 
                        entity in any sector designated as an eligible 
                        industrial sector under section 763(b) shall 
                        provide the owner or operator of the entity and 
                        the Administrator, on an annual basis, the 
                        electricity emissions intensity factor for the 
                        entity. The electricity emissions intensity 
                        factor for the entity, expressed in tons of 
                        carbon dioxide equivalents per kilowatt hour, 
                        is determined by dividing--
                                    ``(I) the annual sum of the hourly 
                                product of--
                                            ``(aa) the electricity 
                                        purchased by the entity from 
                                        that person in each hour 
                                        (expressed in kilowatt hours); 
                                        multiplied by
                                            ``(bb) the marginal or 
                                        weighted average tons of carbon 
                                        dioxide equivalent per kilowatt 
                                        hour that are reflected in the 
                                        electricity charges to the 
                                        entity, as determined by the 
                                        entity's retail rate 
                                        arrangements; by
                                    ``(II) the total kilowatt hours of 
                                electricity purchased by the entity 
                                from that person during that year.
                            ``(ii) Use of other data to determine 
                        factor.--Where it is not possible to determine 
                        the precise electricity emissions intensity 
                        factor for an entity using the methodology in 
                        clause (i), the person selling electricity 
                        shall use the monthly average data reported by 
                        the Energy Information Administration or 
                        collected and reported by the Administrator for 
                        the utility serving the entity to determine the 
                        electricity emissions intensity factor.
                    ``(C) Electricity efficiency factor.--The 
                electricity efficiency factor is the average amount of 
                electricity (in kilowatt hours) used per unit of output 
                for all entities in the relevant sector, as determined 
                by the Administrator based on the best available data, 
                including data provided under paragraph (6).
                    ``(D) Indirect carbon factor reduction.--If an 
                electricity provider received a free allocation of 
                emission allowances pursuant to section 771(a)(1), the 
                Administrator shall adjust the indirect carbon factor 
                to avoid rebates to the eligible entity for costs that 
                the Administrator determines were not incurred by the 
                eligible entity because the allowances were freely 
                allocated to the eligible entity's electricity provider 
                and used for the benefit of industrial consumers.
            ``(4) Greenhouse gas intensity calculations.--The 
        Administrator shall calculate the average direct greenhouse gas 
        emissions (expressed in tons of carbon dioxide equivalent) per 
        unit of output and the electricity efficiency factor for all 
        covered entities in each eligible industrial sector every 4 
        years, using an average of the 5 most recent years of the best 
        available data, from up to 7 years prior to the year in which 
        such calculations are made. For the purpose of determining 
        sector averages that are representative of typical market 
        conditions during the previous 7 years of operations, such 
        averages shall exclude data from individual years with the 
        highest and the lowest direct greenhouse gas emissions per unit 
        of output and electricity efficiency factors. For purposes of 
        the lists required to be published not later than February 1, 
        2013, the Administrator shall use the best available data for 
        the maximum number of years, up to 5 years, for which data are 
        available.
            ``(5) Determination of sectors for purposes of sectoral 
        averages.--
                    ``(A) In general.--Notwithstanding the criteria 
                used to determine eligible sectors under paragraphs (2) 
                and (3)(C), not later than June 30, 2011, the 
                Administrator shall, by rule, identify sectors or 
                subsectors for purposes of calculating sector averages 
                under paragraphs (2)(B), (3)(C), and (4), based upon, 
                to the extent practicable in achieving the purposes of 
                this part--
                            ``(i) product produced;
                            ``(ii) process employed, including 
                        distinctions based upon the extent of 
                        integration or exclusion of process steps; and
                            ``(iii) the extent of use of combined heat 
                        and power technologies.
                    ``(B) Consideration of criteria.--In determining 
                what entities are comparable to a new entity under 
                paragraph (1)(C)(i), the Administrator shall consider, 
                to the extent practicable, the criteria set forth in 
                subparagraph (A).
            ``(6) Ensuring efficiency improvements.--When making 
        greenhouse gas calculations, the Administrator shall--
                    ``(A) limit the average direct greenhouse gas 
                emissions per unit of output, calculated under 
                paragraph (4), for any eligible industrial sector to an 
                amount that is not greater than it was in any previous 
                calculation under this subsection;
                    ``(B) limit the electricity emissions intensity 
                factor, calculated under paragraph (3)(B) and resulting 
                from a change in electricity supply, for any entity to 
                an amount that is not greater than it was during any 
                previous year; and
                    ``(C) limit the electricity efficiency factor, 
                calculated under paragraph (3)(C), for any eligible 
                industrial sector to an amount that is not greater than 
                it was in any previous calculation under this 
                subsection.
            ``(7) Data sources.--For the purposes of this subsection--
                    ``(A) the Administrator shall use data from the 
                greenhouse gas registry established under section 713, 
                where that data is available; and
                    ``(B) each owner or operator of an entity in an 
                eligible industrial sector and each department, agency, 
                and instrumentality of the United States shall provide 
                the Administrator with such information as the 
                Administrator finds necessary to determine the direct 
                carbon factor and the indirect carbon factor for each 
                entity subject to this section.
    ``(c) Total Maximum Distribution.--Notwithstanding subsections (a) 
and (b), the Administrator shall not distribute more allowances for any 
vintage year pursuant to this section than are allocated for use under 
this part pursuant to section 765 for that vintage year. For any 
vintage year for which the total emission allowance rebates calculated 
pursuant to this section exceed the number of allowances allocated 
pursuant to section 765, the Administrator shall reduce each entity's 
distribution on a pro rata basis so that the total distribution under 
this section equals the number of allowances allocated under section 
765.
    ``(d) Iron and Steel Sector.--For purposes of this section, the 
Administrator shall consider as in different industrial sectors--
            ``(1) entities using integrated iron and steelmaking 
        technologies (including coke ovens, blast furnaces, and other 
        iron-making technologies); and
            ``(2) entities using electric arc furnace technologies.
    ``(e) Metal, Soda Ash, or Phosphate Production Classified Under 
More Than One Naics Code.--For purposes of this section, the 
Administrator shall not aggregate data for the beneficiation or other 
processing (including agglomeration) of metal ores, soda ash, or 
phosphate with subsequent steps in the process of metal, soda ash, or 
phosphate manufacturing. The Administrator shall consider the 
beneficiation or other processing (including agglomeration) of metal 
ores, soda ash, or phosphate to be in separate industrial sectors from 
the metal, soda ash, or phosphate manufacturing sectors. Industrial 
sectors that beneficiate or otherwise process (including agglomeration) 
metal ores, soda ash, or phosphate shall not receive emission allowance 
rebates under this section related to the activity of extracting metal 
ores, soda ash, or phosphate.
    ``(f) Combined Heat and Power.--For purposes of this section, and 
to achieve the purpose set forth in section 761(4),(the Administrator 
may consider entities to be in different industrial sectors or 
otherwise take into account the differences among entities in the same 
industrial sector, based upon the extent to which such entities use 
combined heat and power technologies.

``SEC. 765. INTERNATIONAL TRADE.

    ``It is the sense of the Senate that this Act will contain a trade 
title that will include a border measure that is consistent with our 
international obligations and designed to work in conjunction with 
provisions that allocate allowances to energy-intensive and trade-
exposed industries.''.

                     TITLE II--PROGRAM ALLOCATIONS

SEC. 201. DISTRIBUTION OF ALLOWANCES FOR INVESTMENT IN CLEAN VEHICLES.

    (a) Definitions.--In this section:
            (1) Advanced technology vehicle.--The term ``advanced 
        technology vehicle'' means any light-duty vehicle assembled in 
        the United States that meets--
                    (A) the Tier II Bin 5 emission standard established 
                by regulations promulgated by the Administrator 
                pursuant to section 202(i) of the Clean Air Act (42 
                U.S. C. 7521(i)), or a lower-numbered Bin emission 
                standard;
                    (B) any new emission standard for fine particulate 
                matter established by the Administrator under that Act 
                (42 U.S.C. 7401 et seq.); and
                    (C) a target fuel economy equal to or greater than 
                115 percent of the base model year target fuel economy 
                for a vehicle of the same type and footprint, 
                calculated on an energy-equivalent basis for vehicles 
                other than advanced diesel light-duty motor vehicles.
            (2) Base model year.--The term ``base model year'' means 
        the model year 4 model years prior to the model year during 
        which an advanced technology vehicle is initially certified for 
        sale in the United States under part 86 of title 40, Code of 
        Federal Regulations (as in effect on the date of enactment of 
        this Act).
            (3) Engineering integration cost.--The term ``engineering 
        integration cost'' includes the cost of engineering tasks 
        performed in the United States relating to--
                    (A) incorporating qualifying components into the 
                design of advanced technology vehicles; and
                    (B) designing new tooling and equipment for 
                production facilities that produce, in the United 
                States, qualifying components or advanced technology 
                vehicles.
            (4) Qualifying component.--The term ``qualifying 
        component'' means a component that the Secretary of Energy 
        determines to be--
                    (A) specially designed for advanced technology 
                vehicles;
                    (B) installed for the purpose of meeting the 
                performance requirements of advanced technology 
                vehicles as specified in subparagraphs (A), (B), and 
                (C) of paragraph (1); and
                    (C) manufactured in the United States.
            (5) Target fuel economy.--The term ``target fuel economy'' 
        means--
                    (A) for a vehicle classified as a passenger 
                automobile pursuant to section 523.4 of title 49, Code 
                of Federal Regulations (as in effect on the date of 
                enactment of this Act), the value of T<INF>i</INF>, 
                representing the fuel economy target in the formula 
                displayed as Figure 1, calculated for that vehicle in a 
                given model year pursuant to section 531.5(c) of title 
                49, Code of Federal Regulations (as in effect on the 
                date of enactment of this Act); and
                    (B) for a vehicle classified as a light truck 
                pursuant to section 523.5 of title 49, Code of Federal 
                Regulations (as in effect on the date of enactment of 
                this Act), the value of T<INF>i</INF>, representing the 
                fuel economy target in the formula displayed as Figure 
                1, calculated for that vehicle in a given model year 
                pursuant to section 533.5(a) of title 49, Code of 
                Federal Regulations (as in effect on the date of 
                enactment of this Act).
    (b) Establishment of Fund.--There is established in the Treasury a 
separate account, to be known as the ``Clean Vehicle Technology Fund''.
    (c) Auction.--The Administrator shall--
            (1) auction the quantity of emission allowances allocated 
        pursuant to section 771(b)(3) of the Clean Air Act pursuant to 
        section 778 of that Act; and
            (2) deposit funds received from the auction in the Clean 
        Vehicle Technology Fund.
    (d) Grants.--The Administrator shall distribute amounts allocated 
pursuant to section 771(a)(8) of the Clean Air Act, at the direction of 
the Secretary of Energy, to provide facility conversion funding grants 
to vehicle manufacturers and component suppliers to pay the costs of--
            (1) reequipping or expanding an existing manufacturing 
        facility in the United States to produce--
                    (A) qualifying advanced technology vehicles;
                    (B) plug-in electric drive or hybrid-electric, 
                hybrid hydraulic, plug-in hybrid, electric, and fuel 
                cell drive medium- and heavy-duty motor vehicles 
                (including transit vehicles); or
                    (C) qualifying components; and
            (2) engineering integration, performed in the United 
        States, of qualifying vehicles and qualifying components that 
        are produced in the United States.
    (e) Period of Availability.--A grant provided under subsection (d) 
may be used for--
            (1) facilities and equipment placed in service after the 
        date of enactment of this Act; and
            (2) engineering integration costs incurred after the date 
        of enactment of this Act.
    (f) Limitations.--
            (1) Plug-in electric drive vehicles.--Not less than 25 
        percent of the funds provided under subsection (d) shall be 
        used for--
                    (A) reequipping or expanding facilities in the 
                United States to produce plug-in electric drive 
                vehicles or qualifying components for those vehicles; 
                or
                    (B) engineering integration, performed in the 
                United States, relating to those vehicles and 
                components that are produced in the United States.
            (2) CAFE requirements.--No grant shall be provided under 
        subsection (d) to an automobile manufacturer that, directly or 
        through a parent, subsidiary, or affiliated entity, is not in 
        compliance with each applicable corporate average fuel standard 
        under section 32902 of title 49, United States Code, as in 
        effect on the date on which the grant is provided.
    (g) Availability of Auction Proceeds.--
            (1) Black carbon reduction grant program.--Not less than 75 
        percent of the proceeds of the auction conducted pursuant to 
        subsection (c) shall be used for providing grants under section 
        795A of the Energy Policy Act of 2005.
            (2) Other assistance.--Not less than 20 percent of the 
        proceeds of the auction conducted pursuant to subsection (c) 
        shall be available to the Administrator to provide assistance 
        for the deployment, integration, and use of advanced technology 
        vehicles and plug-in electric drive or hybrid-electric, hybrid 
        hydraulic, plug-in hybrid, electric, and fuel cell drive 
        medium- and heavy-duty motor vehicles (including transit 
        vehicles and over-road buses).
            (3) National transportation low-emission energy plan; pilot 
        program.--Not less than 5 percent of the proceeds of the 
        auction conducted pursuant to subsection (c) shall be available 
        to the Secretary of Energy to carry out subsection (h).
    (h) National Transportation Low-emission Energy Plan; Pilot 
Program.--
            (1) National transportation low-emission energy plan.--
        Using the amounts described in subsection (g)(3), the Secretary 
        of Energy shall develop a national transportation low-emission 
        energy plan that--
                    (A) projects the near- and long-term need for and 
                location of electric drive vehicle refueling 
                infrastructure at strategic locations across all major 
                national highways, roads, and corridors;
                    (B) identifies infrastructure and standardization 
                needs for electricity providers, infrastructure 
                providers, vehicle manufacturers, and electricity 
                purchasers;
                    (C) establishes an aspirational goal of achieving 
                strategic deployment of electric vehicle infrastructure 
                by January 1, 2020;
                    (D) prioritizes the development of--
                            (i) standardized public charge access ports 
                        with wireless or smart card billing capability; 
                        and
                            (ii) level I and level II charge port 
                        systems (that charge an electric vehicle over a 
                        period of 8 to 14 hours and 4 to 8 hours, 
                        respectively) that will meet the energy 
                        requirements of the majority of plug-in hybrid 
                        and battery electric vehicles;
                    (E) examines the feasibility of level III charge 
                port systems that can charge an electric vehicle over a 
                period of 10 to 20 minutes;
                    (F) focuses on infrastructure that provides 
                consumers with the lowest cost while providing 
                convenient charge system access; and
                    (G) is developed by the Secretary, with the 
                involvement of all relevant stakeholders.
            (2) Electric drive demonstration projects.--
                    (A) In general.--The Secretary shall establish 
                pilot projects to demonstrate electric drive vehicles 
                and infrastructure.
                    (B) Requirements.--The Secretary shall--
                            (i) establish the pilot projects described 
                        in subparagraph (A) after publication of the 
                        plan developed under paragraph (1);
                            (ii) use that plan to determine which 
                        regions of the United States are most ready to 
                        demonstrate electric vehicle infrastructure;
                            (iii) carry out the pilot projects in 
                        different regions of the United States; and
                            (iv) ensure that--
                                    (I) at least 1 pilot project is 
                                carried out in a rural region of the 
                                United States; and
                                    (II) at least 1 pilot project is 
                                focused on freight issues.
            (3) Financial resources.--In carrying out the pilot 
        projects under paragraph (2), the Secretary shall coordinate 
        the use of appropriate financial incentives, grant programs, 
        and other Federal financial resources to ensure that electric 
        infrastructure delivery entities are able to participate in the 
        pilot projects.
            (4) LEEP coordinator.--The Secretary may designate 1 full-
        time position within the Department of Transportation, to be 
        known as the ``LEEP coordinator'', with responsibility to 
        oversee--
                    (A) the development of the plan under paragraph 
                (1); and
                    (B) the implementation of the pilot projects under 
                paragraph (2).
    (i) Diesel Emissions Reduction.--
            (1) Definition of eligible entity.--Section 791(3) of the 
        Energy Policy Act of 2005 (42 U.S.C. 16131(3)) is amended--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon at the end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) any person that is the owner of record of a 
                diesel fleet.''.
            (2) Use of funds.--Section 792(d) of the Energy Policy Act 
        of 2005 (42 U.S.C. 16132(d)) is amended--
                    (A) by striking paragraph (2);
                    (B) by striking ``Funds.--'' and all that follows 
                through ``An eligible entity'' and inserting ``Funds.--
                An eligible entity'';
                    (C) by redesignating subparagraphs (A) and (B), 
                clauses (i) through (v), and subclauses (I) through (V) 
                as paragraphs (1) and (2), subparagraphs (A) through 
                (E), and clauses (i) through (v), respectively, and 
                indenting appropriately; and
                    (D) in paragraph (2) (as so redesignated), by 
                striking ``subparagraph (A)'' and inserting ``paragraph 
                (1)''.
            (3) Black carbon reduction grant program.--Subtitle G of 
        title VII of the Energy Policy Act of 2005 is amended by 
        inserting after section 795 (42 U.S.C. 16135) the following:

``SEC. 795A. BLACK CARBON REDUCTION GRANT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Black carbon.--The term `black carbon' means a 
        primary light-absorbing aerosol, as determined by the 
        Administrator based on the best available science.
            ``(3) Diesel particulate filter.--The term `diesel 
        particulate filter' means a pollution control technology that 
        reduces at least 85 percent of black carbon, as verified by the 
        Administrator or the California Air Resources Board.
            ``(4) Eligible entity.--The term `eligible entity' means a 
        person that is the owner of record of a heavy duty vehicle.
            ``(5) Heavy duty vehicle.--The term `heavy duty vehicle' 
        has the meaning given the term in section 202(b)(3) of the 
        Clean Air Act (42 U.S.C. 7521(b)(3)).
            ``(6) Program.--The term `program' means the Black Carbon 
        Reduction Program established under this section.
    ``(b) Establishment.--The Administrator shall establish a voluntary 
grant program, to be known as the `Black Carbon Reduction Program'--
            ``(1) to cost effectively mitigate the adverse consequences 
        of global warming by means of early action to reduce black 
        carbon emissions from diesel-powered heavy-duty vehicles placed 
        in service prior to 2007; and
            ``(2) under which the Administrator, in accordance with 
        this section (including regulations promulgated under 
        subsection (g)), shall authorize the provision of grants in 
        accordance with subsection (c) to cover 100 percent of the cost 
        of purchasing and installing diesel particulate filters on 
        heavy duty vehicles.
    ``(c) Program Specifications.--
            ``(1) In general.--A grant may be issued under the program 
        only to cover the costs of the purchase and installation of a 
        diesel particulate filter.
            ``(2) Maximum amount.--The total amount of grants issued 
        for a fiscal year under the program may not exceed the amounts 
        made available for the program for the fiscal year under 
        subsection (h).
    ``(d) Evaluation and Report.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this section and biennially thereafter, the 
        Administrator shall submit to Congress a report evaluating the 
        implementation of the program.
            ``(2) Inclusions.--The report shall include a description 
        of--
                    ``(A) the total number of grant applications 
                received;
                    ``(B) the total dollar value of all grants issued;
                    ``(C) the estimated benefits of grants provided 
                under the program, including estimates of the total 
                number of tons of black carbon reduced, cost-
                effectiveness, and cost-benefits; and
                    ``(D) any other information the Administrator 
                considers to be appropriate.
    ``(e) Exclusion of Grants From Income.--A grant issued under the 
program shall not be considered gross income of the purchaser of 
technology for purposes of the Internal Revenue Code of 1986.
    ``(f) Effect of Section.--Nothing in this section affects any 
authority under the Clean Air Act (42 U.S.C. 7401 et seq.) as in 
existence on the day before the date of enactment of this section.
    ``(g) Regulations.--
            ``(1) In general.--As soon as practicable after the date of 
        enactment of this section, the Administrator shall promulgate 
        regulations to implement the program.
            ``(2) Requirements.--The regulations promulgated under 
        paragraph (1) shall--
                    ``(A) establish streamlined procedures for the 
                provision of grants to eligible entities participating 
                in the program for the amount of the purchase and 
                installation of diesel particulate filters as soon as 
                practicable, but not later than 30 days after the date 
                of submission of an application for a grant;
                    ``(B) include a list of diesel particulate filters 
                the purchase and installation of which are eligible to 
                be funded through the program; and
                    ``(C) include a list of vehicles by model year that 
                are eligible to be retrofitted under the program.
    ``(h) Funding.--The Administrator shall use to carry out the 
program all of the funding provided for each fiscal year under section 
201(g)(1) of division B of the Clean Energy Jobs and American Power 
Act.''.
            (4) Authorization of appropriations.--Section 797 of the 
        Energy Policy Act of 2005 (42 U.S.C. 16137) is amended by 
        striking ``2011'' and inserting ``2021''.

SEC. 202. STATE AND LOCAL INVESTMENT IN ENERGY EFFICIENCY AND RENEWABLE 
              ENERGY.

    (a) Definitions.--For purposes of this section:
            (1) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act.
            (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).
            (3) Vintage year.--The term ``vintage year'' has the 
        meaning given the term in section 700 of the Clean Air Act.
    (b) Distribution Among Indian Tribes, States, Local Governments, 
and Renewable Electricity Programs.--The Administrator shall, in 
accordance with this section, distribute allowances allocated pursuant 
to section 771(a)(9) of the Clean Air Act for the following vintage 
year. The Administrator, after consultation with the Secretary of the 
Interior, shall distribute not less than 1 percent and not more than 3 
percent of such allowances to Indian tribes. The Administrator, after 
consultation with the Secretary of Energy, shall distribute the 
remaining allowances among the States, local governments, and renewable 
electricity programs under this section each year in accordance with 
the following formula:
            (1) 60 percent of the allowances shall be provided to the 
        States, of which--
                    (A) 30 percent shall be divided equally among the 
                States;
                    (B) 30 percent shall be distributed on a pro rata 
                basis 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 for all 
                States at the time at which the Administrator 
                calculates the formula for distribution;
                    (C) 30 percent shall be distributed on a pro rata 
                basis 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); 
                and
                    (D) 10 percentage shall be provided to the States 
                based on an energy-efficiency formula developed by the 
                Administrator, which formula shall be--
                            (i) based on--
                                    (I) weather-adjusted criteria; and
                                    (II) performance-based metrics that 
                                measure each State's success at 
                                decreasing energy consumption or 
                                increasing energy efficiency--
                                            (aa) on a per capita basis 
                                        in the residential sector;
                                            (bb) on an energy 
                                        consumption per square-foot 
                                        basis in the commercial sector; 
                                        and
                                            (cc) on the basis of 
                                        installed energy efficiency 
                                        measures that save energy, 
                                        measured on a per capita basis 
                                        for the residential sector and 
                                        a per square foot basis for the 
                                        commercial sector; and
                            (ii) updated every 3 years.
            (2) 25 percent of the allowances shall be provided to local 
        governments for energy conservation and efficiency grants.
            (3) 15 percent of the allowances shall be provided in 
        accordance with subsection (c)(3) to renewable energy producers 
        exclusively for the generation of renewable electricity, from 
        facilities that--
                    (A) have a capacity of 10 megawatts or greater; and
                    (B) are placed in service after the date of 
                enactment of this Act.
    (c) Uses.--The allowances distributed to each State and local 
government pursuant to this section shall be used exclusively in 
accordance with the following requirements:
            (1) Allocation to states.--Allowances allocated to the 
        States under subsection (b)(1) shall be for the following 
        purposes and be used in accordance with the following 
        conditions:
                    (A) Purposes.--
                            (i) Energy efficiency programs.--
                                    (I) In general.--Subject to 
                                subclauses (II), (III), and (IV), not 
                                less than 40 percent of the amount made 
                                available under subsection (b)(1) shall 
                                be used exclusively for--
                                            (aa) implementation and 
                                        enforcement of building codes;
                                            (bb) implementation of the 
                                        energy-efficient manufactured 
                                        homes program;
                                            (cc) implementation of 
                                        building energy performance 
                                        labeling;
                                            (dd) low-income community 
                                        energy efficiency programs, 
                                        including those administered by 
                                        private, nonprofit community 
                                        development organizations 
                                        providing technical and 
                                        financial assistance to 
                                        projects and businesses 
                                        (including those owned by women 
                                        and minorities) that improve 
                                        energy efficiency and create 
                                        jobs and business 
                                        opportunities;
                                            (ee) thermal energy 
                                        efficiency;
                                            (ff) retrofit for energy 
                                        and environmental performance; 
                                        and
                                            (gg) 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.
                                    (II) Thermal energy efficiency.--
                                            (aa) In general.--Not less 
                                        than 10 percent of the amount 
                                        made available under subclause 
                                        (I) shall be used for thermal 
                                        energy efficiency projects that 
                                        provide district thermal energy 
                                        through a network of pipes from 
                                        1 or more central plants to at 
                                        least 2 or more buildings, 
                                        combined heat and power that 
                                        produces electricity and 
                                        thermal energy with a minimum 
                                        60 percent overall efficiency 
                                        on a lower-heating value basis, 
                                        or recoverable waste energy 
                                        (including mechanical, thermal, 
                                        or electrical energy) that, if 
                                        not for recovery, would be 
                                        wasted and may be recovered or 
                                        generated through modification 
                                        of an existing facility or 
                                        addition of a new facility.
                                            (bb) Studies, construction, 
                                        and development.--Allocations 
                                        under this subclause may be 
                                        used for planning, engineering, 
                                        and feasibility studies as well 
                                        as project construction and 
                                        development.
                                    (III) Requirements for thermal 
                                energy efficiency projects.--Projects 
                                carried out under subclause (II) 
                                shall--
                                            (aa) reduce or avoid 
                                        greenhouse gas emissions; and
                                            (bb)(AA) produce thermal 
                                        energy from renewable energy 
                                        resources or natural cooling 
                                        sources;
                                            (BB) capture and 
                                        productively use thermal energy 
                                        from an electric generation 
                                        facility;
                                            (CC) integrate new 
                                        electricity generation into an 
                                        existing district energy 
                                        system;
                                            (DD) capture and 
                                        productively uses surplus 
                                        thermal energy from an 
                                        industrial or municipal process 
                                        (such as wastewater treatment); 
                                        or
                                            (EE) distribute and 
                                        transfer to buildings the 
                                        thermal energy from the energy 
                                        sources described in subitems 
                                        (AA) through (DD).
                                    (IV) Retrofit for energy and 
                                environmental performance.--Not less 
                                than 5 percent of the amount made 
                                available under subclause (I) shall be 
                                used for the program for retrofit for 
                                energy and environmental performance 
                                under section 164.
                                    (V) Priority.--In carrying out this 
                                section, each State shall give priority 
                                to persons of low and moderate income 
                                (as defined in section 102(a) of the 
                                Housing and Community Development Act 
                                of 1974 (42 U.S.C. 5302(a))).
                                    (VI) Persons of low income.--Each 
                                State shall use at least 35 percent of 
                                the allocations provided pursuant to 
                                this clause to benefit persons of low 
                                income (as defined in section 102(a) of 
                                the Housing and Community Development 
                                Act of 1974 (42 U.S.C. 5302(a))), using 
                                not less than 20 percent of such amount 
                                made available under this clause for 
                                energy retrofits and green investments 
                                in subsidized housing based on 
                                standards to ensure that investments 
                                are cost-effective--
                                            (aa) taking into account 
                                        reductions in future use of 
                                        energy and other utilities, and 
                                        the extent to which such 
                                        retrofits and investments 
                                        address repair and replacement 
                                        needs that may otherwise need 
                                        to be addressed with other 
                                        forms of assistance; and
                                            (bb) on the condition that, 
                                        to receive such funding, the 
                                        recipient shall commit to an 
                                        additional period of 
                                        affordability of not fewer than 
                                        15 years, covering all units 
                                        for which the grants and loans 
                                        are used.
                            (ii) Renewable energy programs.--Renewable 
                        energy programs for capital grants, production 
                        incentives, loans, loan guarantees, forgivable 
                        loans, direct provision of allowances, and 
                        interest rate buy-downs for--
                                    (I) re-equipping, expanding, or 
                                establishing a manufacturing facility 
                                that receives certification from the 
                                Secretary of Energy pursuant to section 
                                48C of the Internal Revenue Code of 
                                1986 for the production of--
                                            (aa) property designed to 
                                        be used to produce energy from 
                                        renewable energy sources; and
                                            (bb) electricity storage 
                                        systems;
                                    (II) deployment of a diverse range 
                                of technologies to generate electricity 
                                from renewable energy sources; and
                                    (III) deployment of a diverse range 
                                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.
                            (iii) Other state uses.--
                                    (I) Electricity transmission.--
                                Improvement in electricity transmission 
                                for--
                                            (aa) State or regional 
                                        implementation of electricity 
                                        transmission planning and 
                                        siting activities that 
                                        facilitate renewable energy 
                                        development, including 
                                        facilitation of landowner 
                                        negotiations for transmission 
                                        of right-of-way leasing or 
                                        other contractual arrangements;
                                            (bb) grants to nonprofit 
                                        organizations that facilitate 
                                        negotiations for transmission 
                                        right-of-way leasing or other 
                                        contractual agreements between 
                                        affected landowners and 
                                        developers;
                                            (cc) State or regional 
                                        studies of renewable energy 
                                        zones and resources with 
                                        insufficient transmission 
                                        capacity, including 
                                        geographical identification of 
                                        potential renewable energy 
                                        sites, environmental reviews, 
                                        and land use or coastal zone 
                                        constraints;
                                            (dd) grants to support 
                                        landowner associations' and 
                                        other nonprofit organizations' 
                                        participation in State and 
                                        Federal siting processes, 
                                        including such associations' 
                                        studies of renewable energy 
                                        feasibility and benefits and 
                                        associated data collection;
                                            (ee) grants to affected 
                                        landowners or landowner 
                                        associations or nonprofit 
                                        organizations for mitigation of 
                                        impacts on property or 
                                        ecosystems due to transmission 
                                        projects that are part of an 
                                        interconnection-wide plan 
                                        focused on facilitating 
                                        renewable energy development;
                                            (ff) training for State 
                                        regulatory authority staff and 
                                        local workforces relating to 
                                        renewable energy generation 
                                        resources and storage, smart 
                                        grid, or new transmission 
                                        technologies;
                                            (gg) grants to transmission 
                                        providers for transmission 
                                        improvements (including smart 
                                        grid investments) that 
                                        facilitate renewable energy 
                                        development and benefit 
                                        consumers;
                                            (hh) grants to transmission 
                                        providers for security upgrades 
                                        to the transmission system and 
                                        authorized uses under title 
                                        XIII of the Energy Independence 
                                        and Security Act of 2007 (42 
                                        U.S.C. 17381 et seq.); or
                                            (ii) grants to develop 
                                        energy storage, reliability, or 
                                        distributed renewable 
                                        generation projects.
                                    (II) End-use consumer programs.--
                                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.
                                    (III) Smart grid.--Enabling the 
                                development of a Smart Grid (as 
                                described in section 1301 of the Energy 
                                Independence and Security Act of 2007 
                                (42 U.S.C. 17381)) for State, local 
                                government, and other public buildings 
                                and facilities, including integration 
                                of renewable energy resources and 
                                distributed generation, demand 
                                response, demand-side management, and 
                                systems analysis.
                            (iv) State energy program.--The energy 
                        program of the State authorized under part D of 
                        title III of the Energy Policy and Conservation 
                        Act (42 U.S.C. 6321 et seq.).
                            (v) Weatherization assistance program.--For 
                        use in conjunction with the weatherization 
                        assistance program of the State authorized 
                        under part A of title IV of the Energy 
                        Conservation and Production Act (42 U.S.C. 6861 
                        et seq.).
                    (B) Conditions.--
                            (i) In general.--The States shall 
                        prioritize expansion of existing energy 
                        efficiency programs approved and overseen by 
                        the State or the appropriate State regulatory 
                        authority.
                            (ii) Supplementation.--The States shall 
                        demonstrate that allowances allocated pursuant 
                        to subparagraph (A) have been used to 
                        supplement, and not to supplant, existing and 
                        otherwise available State, local, and ratepayer 
                        funding for such purpose.
            (2) Energy conservation and efficiency.--Allowances 
        allocated to local governments under subsection (b)(2) shall be 
        used exclusively for energy conservation and efficiency 
        purposes specified in subtitle E of the Energy Independence and 
        Security Act of 2007 (42 U.S.C. 17151 et seq.), on the 
        condition that the allocation for the Secretary of Energy under 
        section 543 of that Act (42 U.S.C. 17153) is distributed on a 
        pro-rata basis among the other eligible recipients under that 
        section.
            (3) National renewable energy deployment program.--
                    (A) In general.--The Administrator, in consultation 
                with the Secretary of Energy, shall distribute annually 
                the allowances for renewable energy producers under 
                subsection (b)(3)--
                            (i) subject to subparagraph (D), in a 
                        quantity that, for each renewable energy 
                        facility, is equal to the product obtained by 
                        multiplying--
                                    (I) the quantity of energy 
                                generated by the renewable energy 
                                facility during the preceding vintage 
                                year; and
                                    (II) an incentive rate determined 
                                by the Administrator, in consultation 
                                with the Secretary of Energy, before 
                                the renewable energy facility is placed 
                                in service; and
                            (ii) for a period of 10 years after the 
                        date on which the renewable energy facility is 
                        placed in service.
                    (B) Implementation.--The Administrator shall 
                promulgate such regulations as are appropriate to carry 
                out this paragraph.
                    (C) Technology diversity.--Not later than 3 years 
                after the date of enactment of this Act, the 
                Administrator, in consultation with the Secretary of 
                Energy--
                            (i) shall review the programs enacted 
                        pursuant to this section to assess whether the 
                        programs are supporting the development of a 
                        variety of renewable energy technologies; and
                            (ii) may make adjustments to the programs 
                        to better support development of such a variety 
                        while continuing to maximize the quantity of 
                        renewable energy capacity deployed.
                    (D) Distribution.--In a case in which there are an 
                insufficient number of allowances to serve all 
                otherwise qualified projects placed in service based on 
                the formula under subsection (A)(i), the Administrator 
                shall distribute allowances under this paragraph on a 
                pro rata basis among all otherwise qualified projects.
    (d) Reporting.--Each Indian tribe, State, local government, and 
renewable electricity generating company directly receiving allowances 
or allowance value under this section shall submit to the Administrator 
a report that contains a list of entities receiving allowances or 
allowance value under this section.
    (e) Enforcement.--If the Administrator determines that an Indian 
tribe, State, local government, or renewable electricity generating 
company is not in compliance with this section, the Administrator may 
withhold up to twice the number of allowances or allowance value that 
the Indian tribe, State, local government, or renewable electricity 
generating company failed to use in accordance with the requirements of 
this section, that such Indian tribe, State, local government, or 
renewable electricity generating companies would otherwise be eligible 
to receive under this section in later years. Allowances withheld 
pursuant to this subsection shall be distributed among the remaining 
Indian tribes, States, local governments, and renewable electricity 
generating companies in accordance with subsection (b).

SEC. 203. ENERGY EFFICIENCY IN BUILDING CODES.

    The Administrator shall distribute emission allowances allocated 
for the following vintage year pursuant to section 771(a)(10) of the 
Clean Air Act among the States in accordance with the formula described 
in section 202 of this division exclusively for the purpose of section 
163 of division A.

SEC. 204. ENERGY INNOVATION HUBS.

    (a) Purpose.--The Secretary shall carry out a program in accordance 
with this section to establish Energy Innovation Hubs to enhance the 
economic, environmental, and energy security of the United States 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.
    (b) Distribution of Allowances to Energy Innovation Hubs.--The 
Secretary shall, in accordance with the requirements of this section, 
distribute to eligible consortia allowances allocated for the following 
vintage year under section 772(a)(11) of the Clean Air Act.

SEC. 205. ARPA-E RESEARCH.

    (a) Definitions.--For purposes of this section:
            (1) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act.
            (2) Director.--The term ``Director'' means Director of the 
        Advanced Research Projects Agency-Energy.
    (b) Distribution of Allowances.--The Director, in accordance with 
this section, shall distribute allowances allocated for the following 
vintage year under section 771(a)(12) of the Clean Air 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 (42 U.S.C. 16538(c))) 
through targeted acceleration of--
            (1) novel early-stage energy research with possible 
        technology applications;
            (2) development of techniques, processes, and technologies, 
        and related testing and evaluation;
            (3) development of manufacturing processes for 
        technologies; and
            (4) demonstration and coordination with nongovernmental 
        entities for commercial applications of technologies and 
        research applications.
    (c) 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.

SEC. 206. INTERNATIONAL CLEAN ENERGY DEPLOYMENT PROGRAM.

    The Secretary of State shall distribute emission allowances 
allocated for the following vintage year pursuant to section 771(a)(13) 
of the Clean Air Act exclusively for the purpose of section 323 of 
division A.

SEC. 207. INTERNATIONAL CLIMATE CHANGE ADAPTATION AND GLOBAL SECURITY.

    The Secretary of State shall distribute emission allowances 
allocated for the following vintage year pursuant to section 771(a)(14) 
of the Clean Air Act exclusively for the purpose of section 324 of 
division A.

SEC. 208. ENERGY EFFICIENCY AND RENEWABLE ENERGY WORKER TRAINING.

    (a) Establishment of Fund.--There is established in the Treasury a 
separate account, to be known as the ``Energy Efficiency and Renewable 
Energy Worker Training Fund''.
    (b) Auction Proceeds.--The Administrator shall deposit the proceeds 
of the auction conducted pursuant to section 771(b)(4) of the Clean Air 
Act in the Energy Efficiency and Renewable Energy Worker Training Fund.
    (c) Availability of Amounts.--The Secretary of Labor shall use the 
amounts deposited in the Energy Efficiency and Renewable Energy Worker 
Training Fund under subsection (b) to carry out section 171(e)(8) of 
the Workforce Investment Act of 1998 (29 U.S.C. 2916(e)(8)) without 
further appropriation or fiscal year limitation.

SEC. 209. WORKER TRANSITION.

    (a) Establishment of Fund.--There is established in the Treasury a 
separate account, to be known as the ``Worker Transition Fund''.
    (b) Auction Proceeds.--The Administrator shall deposit the proceeds 
of the auction conducted pursuant to section 771(b)(5) of the Clean Air 
Act in the Worker Transition Fund.
    (c) Availability of Amounts.--The amounts deposited in the Worker 
Transition Fund shall be used to carry out part 2 of subtitle A of 
title III of division A.

SEC. 210. STATE PROGRAMS FOR GREENHOUSE GAS REDUCTION AND CLIMATE 
              ADAPTATION.

    (a) Definitions.--In this section:
            (1) Alaska native village.--The term ``Alaska Native 
        village'' means a federally recognized Indian tribe located in 
        the State of Alaska and listed in the Bureau of Indian Affairs 
        publication entitled ``Indian Entities Recognized and Eligible 
        to Receive Services from the United States Bureau of Indian 
        Affairs'' (74 Fed. Reg. 40218 (Aug. 11, 2009)).
            (2) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act.
            (3) 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).
            (4) SCCR account.--The term ``SCCR Account'' means a State 
        Climate Change Response Account established under subsection 
        (c)(5).
            (5) Vintage year.--The term ``vintage year'' has the 
        meaning given that term in section 700 of the Clean Air Act.
    (b) Regulations; Coordination.--
            (1) Regulations.--Not later than 2 years after the date of 
        enactment of this Act, the Administrator, or the heads of such 
        Federal agencies as the President may designate, shall 
        promulgate regulations to implement this section.
            (2) Coordination.--If the President designates more than 1 
        Federal agency to implement this section, the President shall 
        require such agencies to establish a memorandum of 
        understanding providing for coordination of rulemaking and 
        other implementing activities, in accordance with this section.
    (c) Distribution of Allowances.--
            (1) In general.--Not later than September 30 of each 
        calendar year, the Administrator shall distribute, in 
        accordance with this section, allowances allocated for the 
        following vintage year pursuant to section 771(a)(15) of the 
        Clean Air Act.
            (2) Reservation and allocation.--The Administrator shall--
                    (A) reserve 10 percent of the allowances described 
                in paragraph (1) for distribution among coastal and 
                Great Lakes States in accordance with subsection (e);
                    (B) reserve 10 percent of the allowances described 
                in paragraph (1) for distribution among the States for 
                wildfire programs for the purposes described in 
                subsection (f), with the allowances to be deposited in 
                and administered through the SCCR Accounts;
                    (C) after consultation with the Secretary of the 
                Interior, reserve at least 1 percent of the allowances 
                for distribution to Indian tribes in accordance with 
                subsection (d); and
                    (D) distribute the remaining allowances to fund 
                State government programs for greenhouse gas reduction 
                and climate adaptation pursuant to paragraphs (3) and 
                (5), with the allowances to be deposited in and 
                administered through the SCCR Accounts.
            (3) Formula for distribution.--The Administrator shall 
        distribute the allowances pursuant to paragraph (2)(D) ratably 
        among the States based on the product obtained by multiplying--
                    (A) the population of a State; and
                    (B) the allocation factor for the State determined 
                under paragraph (4).
            (4) State allocation factors.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the allocation factor for a State shall be the 
                quotient obtained by dividing--
                            (i) the per capita income of all 
                        individuals in the United States; by
                            (ii) the per capita income of all 
                        individuals in the State.
                    (B) Limitation.--
                            (i) Maximum.--If the allocation factor for 
                        a State as calculated under subparagraph (A) 
                        would exceed 1.2, the allocation factor for 
                        such State shall be 1.2.
                            (ii) Minimum.--If the allocation factor for 
                        a State as calculated under subparagraph (A) 
                        would be less than 0.8, the allocation factor 
                        for such State shall be 0.8.
                    (C) Per capita income.--For purposes of this 
                paragraph, per capita income shall be--
                            (i) determined at 2-year intervals; and
                            (ii) subject to subparagraph (D), equal to 
                        the average of the annual per capita incomes 
                        for the most recent period of 3 consecutive 
                        years for which satisfactory data are available 
                        from the Department of Commerce at the time 
                        such determination is made.
                    (D) Revenue directly resulting from a 
                presidentially declared major disaster.--
                            (i) In general.--For purposes of this 
                        paragraph, per capita income from 1 or more of 
                        the sources described in clause (ii) shall be 
                        reduced or excluded if the Secretary of 
                        Commerce--
                                    (I) (in consultation with the 
                                Administrator and the heads of the 
                                departments or agencies involved) 
                                determines that the income accrues to 
                                persons as the result of a major 
                                disaster designated by the President 
                                under the Robert T. Stafford Disaster 
                                Relief and Emergency Assistance Act (42 
                                U.S.C. 5121 et seq.); and
                                    (II) finds that the inclusion of 1 
                                or more of the income sources, in whole 
                                or in part, results in a transitory, 
                                rather than a sustainable, increase in 
                                a State's per capita income level 
                                relative to the national average.
                            (ii) Sources of income.--The sources of 
                        income referred to in clause (i) are the 
                        following:
                                    (I) Property and casualty insurance 
                                (including homeowners and renters 
                                insurance).
                                    (II) The National Flood Insurance 
                                Program of the Federal Emergency 
                                Management Agency.
                                    (III) The Individual and Family 
                                Grants Program of the Federal Emergency 
                                Management Agency.
                                    (IV) The Disaster Housing Program 
                                of the Federal Emergency Management 
                                Agency.
                                    (V) The Community Development Block 
                                Grant Program of the Department of 
                                Housing and Urban Development.
                                    (VI) The Disaster Unemployment 
                                Assistance Program of the Department of 
                                Labor.
                                    (VII) Any other source determined 
                                appropriate by the Administrator.
            (5) State climate change response accounts.--
                    (A) Establishment.--Each State shall establish a 
                State Climate Change Response Account, to be 
                administered pursuant to State law, to receive and 
                distribute--
                            (i) the allocation of allowances provided 
                        under paragraph (2); or
                            (ii) at the election of the State, the 
                        proceeds of the auction of those allowances.
                    (B) Compliance.--State regulations and implementing 
                procedures relating to SCCR accounts shall require 
                compliance with the provisions of this section and all 
                other applicable provisions of Federal law.
    (d) Distribution to Indian Tribes.--
            (1) In general.--The Administrator, or the heads of such 
        Federal agencies as the President may designate, shall 
        promulgate regulations establishing a program to distribute 
        allowances to Indian tribes, in accordance with the 
        requirements of this section, of which not less than 18 percent 
        shall be allocated to Alaska Native Villages for each year.
            (2) Use of allowances.--Allowances distributed to Indian 
        tribes shall be used exclusively--
                    (A) in accordance with subsection (g); and
                    (B) in compliance with any approved tribal climate 
                change response plan.
    (e) Distribution to Coastal and Great Lakes States.--The 
Administrator, or the heads of such other Federal agencies as the 
President may designate, shall distribute allowances for coastal State 
economic protection reserved under subsection (c)(2)(A) each fiscal 
year, in accordance with section 384 of division A.
    (f) Distribution to States for Fire Programs.--The Administrator, 
or the heads of such other Federal agencies as the President may 
designate, shall distribute allowances reserved under subsection 
(c)(2)(B), to the States' SCCR Accounts for each fiscal year, to be 
used for wildfire programs in accordance with section 383 of division 
A.
    (g) Uses of Allowances Deposited to SCCR Accounts.--
            (1) In general.--States shall use allowances deposited to 
        SCCR Accounts under subsection (c)(2)(D) exclusively for the 
        development and implementation of projects, programs, or 
        measures as described in this section to address climate change 
        by reducing emissions of greenhouse gases or by building 
        resilience to the impacts of climate change, including impacts 
        such as--
                    (A) extreme weather events, such as flooding and 
                tropical cyclones;
                    (B) more frequent heavy precipitation events;
                    (C) water scarcity and adverse impacts on water 
                quality;
                    (D) stronger and longer heat waves;
                    (E) more frequent and severe droughts;
                    (F) rises in sea level;
                    (G) ecosystem disruption;
                    (H) increased wildfire risk;
                    (I) increased air pollution;
                    (J) effects on public health;
                    (K) impaired transportation systems and 
                infrastructure; and
                    (L) reduced productivity of agricultural or 
                ranching operations.
            (2) Requirements.--The allowances received by each SCCR 
        Account for each fiscal year shall be used by the State 
        exclusively to fund the following categories of activities, in 
        compliance with the provisions of approved State climate change 
        response plans:
                    (A) Grants to fund water system mitigation and 
                adaptation partnerships in accordance with section 381 
                of division A.
                    (B) Flood control, protection, prevention and 
                response programs and projects in accordance with 
                section 382 of division A.
                    (C) Programs or projects implemented by State 
                agencies as owners or operators of water systems to 
                address any ongoing or forecasted climate-related 
                impact on water quality, water supply or reliability, 
                for 1 or more of the purposes listed in section 381(d) 
                of division A.
                    (D) Programs or projects to reduce greenhouse gas 
                emissions through recycling or for increasing recycling 
                rates in accordance with section 154 of division A.
                    (E) Programs and projects addressing adverse 
                impacts of climate change affecting agriculture or 
                ranching activities.
                    (F) Programs or projects addressing air pollution 
                or air quality impacts caused or exacerbated by climate 
                change.
                    (G) Programs or projects to reduce greenhouse gas 
                emissions that result in a decrease in emissions of 
                other air pollutants.
                    (H) Programs or projects to restore abandoned mine 
                lands that increase carbon sequestration or reduce 
                greenhouse gas emissions while providing other 
                benefits, including improvements in water and air 
                quality.
                    (I) Programs addressing the risk of wildfires for 1 
                or more of the purposes listed in section 383(e)(2) of 
                division A.
            (3) Distribution for local governments.--Not less than 12.5 
        percent of the allowances deposited to SCCR Accounts shall be 
        distributed by each State to units of local government within 
        such State, to be used exclusively to support the categories of 
        climate change response efforts listed in paragraph (2).
            (4) Vulnerable populations.--In deploying allowances under 
        this section, States and units of local government shall ensure 
        that programs and projects are funded responding to impacts 
        affecting socially and economically vulnerable populations, 
        including--
                    (A) persons of low-income (as defined in title I of 
                the Housing and Community Development Act of 1974, (42 
                U.S.C. 5301 et seq.));
                    (B) members of socially disadvantaged groups (as 
                defined in section 2501(e)(2) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (7 U.S.C. 
                2279(e)(2)));
                    (C) individuals over 65 years of age and under 5 
                years of age; and
                    (D) individuals with disabilities.
            (5) Intent of congress.--It is the intent of the Congress 
        that allowances distributed to carry out this section should be 
        used to supplement, and not replace, existing sources of 
        funding used to address and build resilience to the impacts of 
        climate change.
    (h) State and Tribal Climate Change Response Plans.--
            (1) In general.--The regulations promulgated pursuant to 
        subsection (b) shall include requirements for submission and 
        approval of State and tribal climate change response plans 
        under this section. Beginning with vintage year 2012, 
        distribution of allowances to a State pursuant to this section 
        shall be contingent on approval of a State climate change 
        response plan for such State that meets the requirements of 
        such regulations.
            (2) Requirements.--Regulations promulgated under this 
        section shall require, at minimum, that State climate change 
        response plans--
                    (A) assess and prioritize the vulnerability of a 
                State to a broad range of impacts of climate change, 
                based on the best available science;
                    (B) identify and prioritize specific cost-effective 
                projects, programs, and measures to mitigate and build 
                resilience to current and predicted impacts of climate 
                change, including projects, programs, and measures 
                within each of the categories of activities listed in 
                subsection (h)(2);
                    (C) include an assessment of potential for carbon 
                reduction through changes to land management policies 
                (including enhancement or protection of forest carbon 
                sinks);
                    (D) ensure that the State fully considers and 
                undertakes, to the maximum extent practicable, 
                initiatives that--
                            (i) protect or enhance natural ecosystem 
                        functions, including protection, maintenance, 
                        or restoration of natural infrastructure such 
                        as wetlands, reefs, and barrier islands to 
                        buffer communities from floodwaters or storms, 
                        watershed protection to maintain water quality 
                        and groundwater recharge, or floodplain 
                        restoration to improve natural flood control 
                        capacity;
                            (ii) where appropriate, use nonstructural 
                        approaches, including practices that use, 
                        enhance, or mimic the natural hydrologic cycle 
                        processes of infiltration, evapotranspiration, 
                        and use; or
                            (iii) where appropriate, protect forested 
                        land via scientifically based ecological 
                        restoration practices, including by reducing 
                        fuel loads, restoring forest diversity, and 
                        conducting research on pest mitigation;
                    (E) give consideration to impacts affecting 
                socially and economically vulnerable populations, 
                including--
                            (i) persons of low-income (as defined in 
                        title I of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. sec. 5301 et 
                        seq.));
                            (ii) members of socially disadvantaged 
                        groups (as defined in section 2501(e)(2) of the 
                        Food, Agriculture, Conservation, and Trade Act 
                        of 1990 (7 U.S.C. 2279(e)(2)));
                            (iii) persons over 65 years of age and 
                        under 5 years of age; and
                            (iv) persons with disabilities;
                    (F) use pre-disaster mitigation, emergency 
                response, and public insurance programs to mitigate the 
                impacts of climate change;
                    (G) be consistent with Federal conservation and 
                environmental laws and, to the maximum extent 
                practicable, avoid environmental degradation; and
                    (H) be revised and resubmitted for approval not 
                less frequently than every 5 years.
            (3) Tribal climate change response plans.--Requirements for 
        tribal climate change response plans should include the 
        requirements listed in subparagraphs (A) through (H) of 
        paragraph (2), as appropriate, but may vary from those of State 
        climate change response plans to the extent necessary to 
        account for the special circumstances of Indian tribes.
            (4) Coordination with prior planning efforts.--In 
        implementing this subsection, the Administrator, or the heads 
        of such Federal agencies as the President may designate, 
        shall--
                    (A) draw upon lessons learned and best practices 
                from preexisting State and tribal climate change 
                response planning efforts;
                    (B) seek to avoid duplication of such efforts; and
                    (C) ensure that the plans developed under this 
                section are developed in coordination with State 
                natural resources adaptation plans developed under 
                section 369 of division A.
    (i) Reporting.--Not later than 1 year after each date of receipt of 
allowances under this section, and biennially thereafter until the 
allowances received under this section have been fully expended, each 
State or Indian tribe receiving allowances under this section shall 
submit to the Administrator, or the heads of such Federal agencies as 
the President may designate, a report that--
            (1) provides a full accounting for the use by the State or 
        Indian tribe of allowances distributed under this section, 
        including a description of the projects, programs, or measures 
        supported using such allowances;
            (2) includes a report prepared by an independent third 
        party, in accordance with such regulations as are promulgated 
        by the Administrator or the heads of such other Federal 
        agencies as the President may designate, evaluating the 
        performance of the projects, programs, or measures supported 
        under this section; and
            (3) identifies any use by the State or Indian tribe of 
        allowances distributed under this section for the reduction of 
        flood and storm damage and the effects of climate change on 
        water and flood protection infrastructure.
    (j) Auditing.--The Administrator, or the heads of such Federal 
agencies as the President may designate, shall have authority to 
conduct such audits or other review of States implementation of and 
compliance with this section as such Federal officials may in their 
discretion determine to be necessary or appropriate.
    (k) Enforcement.--If the Administrator, or the heads of such 
Federal agencies as the President may designate, determine that a State 
or Indian tribe is not in compliance with this section, the 
Administrator or such other agency head may withhold a quantity of the 
allowances equal to up to twice the quantity of allowances that the 
State or Indian tribe failed to use in accordance with the requirements 
of this section, that such State or Indian tribe would otherwise be 
eligible to receive under this section in 1 or more later years. 
Allowances withheld pursuant to this subsection shall be distributed 
among the remaining States or Indian tribes ratably in accordance 
with--
            (1) the formula under subsection (c), in the case of 
        allowances withheld from a State; or
            (2) in accordance with subsection (d), in the case of 
        allowances withheld from an Indian tribe.

SEC. 211. CLIMATE CHANGE HEALTH PROTECTION AND PROMOTION FUND.

    (a) Establishment of Fund.--There is established in the Treasury a 
separate account, to be known as the ``Climate Change Health Protection 
and Promotion Fund''.
    (b) Auction Proceeds.--The Administrator shall deposit the proceeds 
of the auction pursuant to section 771(b)(6) of the Clean Air Act in 
the Climate Change Health Protection and Promotion Fund.
    (c) Availability of Amounts.--All amounts deposited in the Climate 
Change Health Protection and Promotion Fund shall be available to the 
Secretary of Health and Human Services to carry out subpart B of 
subtitle C of title III of division A, without further appropriation or 
fiscal year limitation.
    (d) Distribution of Funds by HHS.--In carrying out subpart B of 
subtitle C of title III of division A, the Secretary of Health and 
Human Services may make funds deposited in the Climate Change Health 
Protection and Promotion Fund available to--
            (1) other departments, agencies, and offices of the Federal 
        Government;
            (2) foreign, State, tribal, and local governments; and
            (3) such other entities as the Secretary determines to be 
        appropriate.
    (e) Supplement, Not Replace.--It is the intent of Congress that 
funds made available to carry out subpart B of subtitle C of title III 
of division A should be used to supplement, and not replace, existing 
sources of funding for public health.

SEC. 212. CLIMATE CHANGE SAFEGUARDS FOR NATURAL RESOURCES CONSERVATION.

    (a) Establishment of Fund.--There is established in the Treasury a 
separate account, to be known as the ``Natural Resources Climate Change 
Adaptation Account''.
    (b) Auction Proceeds.--The Administrator shall deposit the proceeds 
of the auction conducted pursuant to section 771(b)(7) of the Clean Air 
Act in the Natural Resources Climate Change Adaptation Account.
    (c) Availability of Amounts.--All amounts deposited in the Natural 
Resources Climate Change Adaptation Account shall be available without 
further appropriation or fiscal year limitation solely for the purposes 
of paragraphs (2) through (6) of section 370(a) of division A.

SEC. 213. NUCLEAR WORKER TRAINING.

    (a) Establishment of Fund.--There is established in the Treasury a 
separate account, to be known as the ``Nuclear Worker Training Fund''.
    (b) Auction Proceeds.--The Administrator shall deposit the proceeds 
of the auction conducted pursuant to section 771(b)(8) of the Clean Air 
Act in the Nuclear Worker Training Fund.
    (c) Availability of Amounts.--All amounts deposited in the Nuclear 
Worker Training Fund shall be available without further appropriation 
or fiscal year limitation solely for the purpose of carrying out 
section 132 of division A.

SEC. 214. SUPPLEMENTAL AGRICULTURE, ABANDONED MINE LAND, RENEWABLE 
              ENERGY, AND FORESTRY.

    (a) Establishment of Fund.--There is established in the Treasury a 
separate account, to be known as the ``Supplemental Agriculture, 
Abandoned Mine Land, Renewable Energy, and Forestry Fund''.
    (b) Auction Proceeds.--The Administrator shall deposit the proceeds 
of the auction conducted pursuant to section 771(b)(9) of the Clean Air 
Act in the Supplemental Agriculture, Abandoned Mine Land, Renewable 
Energy, and Forestry Fund.
    (c) Availability of Amounts.--All amounts deposited in the 
Supplemental Agriculture, Renewable Energy, Abandoned Mine Land, and 
Forestry Fund shall be available without further appropriation or 
fiscal year limitation solely for the purpose of carrying out section 
155 of division A.

SEC. 215. INVESTMENT IN GREENHOUSE GAS REDUCTIONS FROM THE 
              TRANSPORTATION SECTOR.

    (a) Definitions.--In this section:
            (1) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (3) Vintage year.--The term ``vintage year'' has the 
        meaning given the term in section 700 of the Clean Air Act.
    (b) Climate Change Transportation Fund.--
            (1) Establishment of fund.--There is established in the 
        Treasury a separate account, to be known as the ``Climate 
        Change Transportation Fund''.
            (2) Auction proceeds deposited to fund.--The Administrator 
        shall deposit the proceeds of auctions conducted pursuant to 
        section 771(b)(10) of the Clean Air Act for the vintage years 
        specified in the Climate Change Transportation Fund.
            (3) Availability of amounts.--All amounts deposited in the 
        Climate Change Transportation Fund shall be available, without 
        further appropriation or fiscal year limitation, to carry out 
        this section.
    (c) Distribution of Allowances.--For each year, the Secretary shall 
use the proceeds of allowance auctions deposited in the Climate Change 
Transportation Fund to reduce emissions from the transportation sector 
in accordance with the following formula:
            (1) 50 percent of the allowances shall be used exclusively 
        for the Transportation Greenhouse Gas Reduction program in 
        accordance with section 832 of the Clean Air Act.
            (2) 50 percent of the allowances shall be used exclusively 
        for public transportation grants in accordance with subsection 
        (d).
    (d) Distribution of Public Transportation Grants.--
            (1) In general.--The Secretary shall distribute the amounts 
        available for public transportation grants for each fiscal year 
        in accordance with subsection (c)(2) as grants to public 
        transportation agencies (including designated recipients (as 
        defined in section 5307(a) and section 5340 of title 49, United 
        States Code)) and recipients and sub-recipients (as defined in 
        section 5311(a) of title 49, United States Code).
            (2) Formula.--In providing grants under this subsection, 
        the Secretary shall distribute--
                    (A) 80 percent of the funds in accordance with the 
                formula and conditions governing grants under section 
                5307 of title 49, United States Code;
                    (B) 10 percent of the funds in accordance with the 
                formula and conditions governing grants under section 
                5311 of title 49, United States Code (including 
                subsection (f) of that section); and
                    (C) 10 percent of the funds in accordance with the 
                formula and conditions governing grants under section 
                5340 of title 49, United States Code.
    (e) Agreements.--No grant may be provided to a public 
transportation agency under this section for any fiscal year unless--
            (1) the grant is limited to a project approved in 
        accordance with the greenhouse gas emission reduction 
        provisions under section 112 of division A; and
            (2) the public transportation agency enters into such 
        agreements with the Secretary as the Secretary may require to 
        ensure that the public transportation agency will maintain the 
        aggregate expenditures of the public transportation agency from 
        all other sources for programs described in paragraph (1) at or 
        above the average level of those expenditures during the 2 
        fiscal years preceding the date of enactment of this Act.
    (f) Limitation on Use of Funds.--Public transportation grants 
funded under this section may be used only to fund strategies that 
demonstrate a reduction in greenhouse gas emissions.

SEC. 216. STATE PROGRAMS FOR NATURAL RESOURCE ADAPTATION ACTIVITIES.

    The Administrator shall distribute emission allowances allocated 
for the following vintage year pursuant to section 771(a)(16) of the 
Clean Air Act among the States in accordance with the formula described 
in section 370(a)(1) of division A, exclusively to carry out natural 
resources adaptation activities in accordance with adaptation plans 
approved under section 369 of division A.
                                                       Calendar No. 267

111th CONGRESS

  2d Session

                                S. 1733

                          [Report No. 111-121]

_______________________________________________________________________

                                 A BILL

To create clean energy jobs, promote energy independence, reduce global 
      warming pollution, and transition to a clean energy economy.

_______________________________________________________________________

                            February 2, 2010

                       Reported with an amendment
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