I 

109TH CONGRESS 

2D SESSION H. R. 5642 

To reduce greenhouse gas emissions and protect the climate. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 20, 2006 

Mr. WAXMAN (for himself, Mr. GEORGE MILLER of California, Mr. MARKEY, 

Mr. PALLONE, Mr. SANDERS, Ms. ESHOO, Mr. HINCHEY, Mr. FARR, Mr. 

DOGGETT, Mr. BLUMENAUER, Mrs. CAPPS, Mr. INSLEE, Ms. 

SCHAKOWSKY, Ms. SOLIS, and Mr. VAN HOLLEN) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on International Relations, for 

a period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To reduce greenhouse gas emissions and protect the climate. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Safe Climate Act of 

5 2006’’. 

6 SEC. 2. FINDING; SENSE OF CONGRESS. 

7 (a) FINDINGS.—The Congress finds as follows: 


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1 (1) The United States is a party to the 1992 

2 United Nations Framework Convention on Climate 

3 Change, which has the objective of stabilizing green4 house gas concentrations in the atmosphere at a 

5 level that would prevent ‘‘dangerous anthropogenic 

6 interference’’ with the climate system. 

7 (2) To achieve this objective, the increase in 

8 global mean surface temperature should not exceed 

9 2°C (3.6°F) above pre-industrial temperature. 

10 (3) The risks associated with a temperature in11 crease above 2°C (3.6°F) are grave, including the 

12 disintegration of the Greenland ice sheet, which, if 

13 it were to melt completely, would raise global aver14 age sea level by approximately 23 feet, devastating 

15 many of the world’s coastal areas and population 

16 centers. 

17 (4) The Intergovernmental Panel on Climate 

18 Change projects that temperatures will rise between 

19 1.4°C to 5.8°C (2.5°F to 10.4°F) by the end of the 

20 century, under a range of expected emissions trends. 

21 (5) Serious global warming impacts have al22 ready been observed in the United States and world23 wide, including increases in heat waves and other ex24 treme weather events, rise in sea level, retreat of 

25 glaciers and polar ice, decline in mountain snowpack, 


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1 increased drought and wildfires, stronger hurricanes, 

2 ocean acidification, extensive coral bleaching, migra3 tions and shifts in the yearly cycles of plants and 

4 animals, and the spread of infectious diseases. 

5 (6) Scientists project that under a mid-range 

6 estimate of global warming, by 2050, roughly 25 

7 percent of animal and plant species will be com8 mitted to extinction. 

9 (7) Decisive action is needed to minimize the 

10 many dangers posed by global warming. 

11 (8) The timing of such action is critical, given 

12 that greenhouse gases can persist in the atmosphere 

13 for more than a century. 

14 (9) Reductions in emissions from today’s levels 

15 must begin within a decade to preserve the ability to 

16 stabilize atmospheric greenhouse gas concentrations 

17 at levels likely to protect against a temperature rise 

18 above 2°C (3.6°F). 

19 (10) With only 5 percent of the world popu20 lation, the United States emits approximately 20 

21 percent of the world’s total greenhouse gas emissions 

22 and must be a leader in addressing global warming. 

23 (11) Existing energy efficiency and clean, re24 newable energy technologies can reduce global warm25 ing pollution, while saving consumers money, reducVerDate Aug 31 2005 23:24 Jun 21, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5642.IH H5642

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1 ing our dependence on oil, enhancing national secu2 rity, cleaning the air, and protecting pristine places 

3 from drilling and mining. 

4 (b) SENSE OF CONGRESS.—It is the sense of the 

5 Congress that the United States should participate in ne6 gotiations under the 1992 United Nations Framework 

7 Convention on Climate Change with the objective of secur8 ing United States participation in agreements that— 

9 (1) establish mitigation commitments by all 

10 countries that are major emitters of greenhouse 

11 gases, consistent with the principle of common but 

12 differentiated responsibilities; 

13 (2) achieve reductions in global greenhouse gas 

14 emissions at a pace and levels sufficient to avoid 

15 dangerous interference with the earth’s climate; and 

16 (3) advance and protect the economic and na17 tional security interests of the United States. 

18 SEC. 3. AMENDMENTS TO THE CLEAN AIR ACT. 

19 The Clean Air Act (42 U.S.C. 7401 et seq.) is amend20 ed by adding at the end the following: 

21 ‘‘TITLE VII—GREENHOUSE GAS 

22 EMISSIONS 

23 ‘‘SEC. 701. EMISSION REDUCTION TARGETS. 

24 ‘‘Not later than 2 years after the date of enactment 

25 of this section, the Administrator shall promulgate annual 


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1 emission reduction targets for each calendar year begin2 ning in 2010 and ending in 2050, as follows: 

3 ‘‘(1) In 2010, the quantity of United States 

4 greenhouse gas emissions shall not exceed the quan5 tity of United States greenhouse gases projected to 

6 be emitted in 2009. 

7 ‘‘(2) Beginning in 2011, the quantity of United 

8 States greenhouse gas emissions shall be reduced by 

9 approximately 2 percent each year, such that the 

10 quantity of such emissions in 2020 does not exceed 

11 the quantity of United States greenhouse gases 

12 emitted in 1990. 

13 ‘‘(3) Beginning in 2021, the quantity of United 

14 States greenhouse gas emissions shall be reduced by 

15 approximately 5 percent each year, such that the 

16 quantity of such emissions in 2050 does not exceed 

17 20 percent of the quantity of United States green18 house gases emitted in 1990. 

19 ‘‘SEC. 702. NATIONAL ACADEMIES REVIEW. 

20 ‘‘Not later than 5 years after the date of the enact21 ment of this section, and every 5 years thereafter, the Na22 tional Academies, acting through the National Academy 

23 of Sciences and the National Research Council, shall sub24 mit a report to the Administrator and the Congress on 

25 the prospects for avoiding dangerous anthropogenic interVerDate Aug 31 2005 23:24 Jun 21, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5642.IH H5642

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1 ference with the climate system and the progress made 

2 to date. Such report shall— 

3 ‘‘(1) evaluate whether the emission reduction 

4 targets promulgated pursuant to section 701 are 

5 likely to be sufficient to avoid dangerous climate 

6 change, taking into account the actions of other na7 tions; 

8 ‘‘(2) include an assessment of whether each of 

9 the following events, and any other indicator of sig10 nificant global warming determined by the National 

11 Academies, has occurred or is likely to occur— 

12 ‘‘(A) atmospheric greenhouse gas con13 centrations of greater than 450 carbon dioxide14 equivalent ppm; 

15 ‘‘(B) global mean surface temperature in16 crease of greater than 2°C (3.6°F) from pre-in17 dustrial levels; 

18 ‘‘(C) substantial slowing of the Atlantic 

19 thermohaline circulation; 

20 ‘‘(D) sea level rise of more than 8 inches; 

21 ‘‘(E) ice-free Arctic Ocean in the summer; 

22 ‘‘(F) decrease in the area of permafrost to 

23 below 50 percent of such area in 2000; and 


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1 ‘‘(G) loss of over 40 percent of the world’s 

2 coverage of coral reefs, due to increased ocean 

3 temperature or acidity; and 

4 ‘‘(3) if the National Academies concludes that 

5 emission reduction targets promulgated pursuant to 

6 section 701 are not likely to be sufficient to avoid 

7 dangerous climate change, or that any of the events 

8 specified in paragraph (2) has occurred or is likely 

9 to occur— 

10 ‘‘(A) identify the needed amount of further 

11 reductions in atmospheric greenhouse gas con12 centrations; and 

13 ‘‘(B) recommend additional United States 

14 and international actions to further reduce at15 mospheric greenhouse gas concentrations. 

16 ‘‘SEC. 703. REGULATIONS. 

17 ‘‘(a) IN GENERAL.—The Administrator shall promul18 gate not later than 2 years after the date of the enactment 

19 of this section, and may periodically revise, regulations re20 quiring the reduction of United States greenhouse gas 

21 emissions to meet the emission reduction targets promul22 gated pursuant to section 701. 

23 ‘‘(b) RULEMAKING ON RECOMMENDATIONS OF NA24 TIONAL ACADEMIES.—If the National Academies submits 

25 a recommendation under section 702(3)(B) for a reguVerDate Aug 31 2005 23:24 Jun 21, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5642.IH H5642

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1 latory action by a Federal department or agency, and such 

2 regulatory action is within the authority of such depart3 ment or agency (under law other than this subsection), 

4 the head of such department or agency shall, not later 

5 than 2 years after the submission of such recommenda6 tion, finalize a rulemaking— 

7 ‘‘(1) to carry out such regulatory action; or 

8 ‘‘(2) to explain the reasons for declining to act. 

9 ‘‘SEC. 704. MARKET-BASED CAP ON EMISSIONS. 

10 ‘‘(a) IN GENERAL.—The regulations promulgated 

11 under section 703(a) shall— 

12 ‘‘(1) impose a cap on the greenhouse gas emis13 sions of sources and sectors described in subsection 

14 (b)(1); and 

15 ‘‘(2) allow emissions trading among covered en16 tities. 

17 ‘‘(b) SCOPE.—The regulations promulgated under 

18 section 703(a) shall— 

19 ‘‘(1) apply the cap required by subsection (a)(1) 

20 to the sources or sectors of the United States econ21 omy with— 

22 ‘‘(A) the largest emissions; 

23 ‘‘(B) the most cost-effective opportunities 

24 to reduce emissions; or 


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1 ‘‘(C) other characteristics that the Admin2 istrator determines make the source or sector 

3 appropriate to include; and 

4 ‘‘(2) cover a sufficient proportion of total 

5 United States greenhouse gas emissions, such that, 

6 in combination with other measures adopted under 

7 this title and under the Safe Climate Act of 2006 

8 and the amendments made by such Act, such regula9 tions will ensure that total United States greenhouse 

10 gas emissions will not exceed the emission reduction 

11 targets promulgated pursuant to section 701. 

12 ‘‘(c) ALLOWANCES.— 

13 ‘‘(1) IN GENERAL.—The regulations promul14 gated under section 703(a) shall provide for the Ad15 ministrator to issue each year a quantity of green16 house gas emissions allowances equivalent to the 

17 emissions allowed under the cap required by sub18 section (a)(1) for such year. Each such allowance 

19 shall authorize the emission of one carbon dioxide 

20 equivalent. Such an allowance does not constitute a 

21 property right, and nothing in any provision of law 

22 shall be construed to limit the authority of the 

23 United States to terminate or limit such an allow24 ance. 


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1 ‘‘(2) TRADING.—Allowances issued under this 

2 section may be held and traded by any person. 

3 ‘‘(3) FLEXIBILITY.—Allowances issued under 

4 this section may be used in the year of issuance or 

5 may be banked for use in a year subsequent to the 

6 year of issuance. 

7 ‘‘(d) DISTRIBUTION OF ALLOWANCES.— 

8 ‘‘(1) SUBMISSION OF PLAN BY PRESIDENT.— 

9 ‘‘(A) IN GENERAL.—Within one year of the 

10 enactment of this title, the President, in con11 sultation with the Administrator and other ap12 propriate department and agency heads, shall 

13 develop and submit to the Congress a plan— 

14 ‘‘(i) to distribute the allowances issued 

15 under this section through auctions, and, 

16 at the discretion of the President and sub17 ject to subparagraph (B)(iii), through allo18 cations without charge to entities not cov19 ered by the cap or covered entities; 

20 ‘‘(ii) to deposit the proceeds of such 

21 auctions in the Climate Reinvestment 

22 Fund established by subsection (h); and 

23 ‘‘(iii) to ensure that such allowances 

24 are distributed, and such proceeds are 


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1 used, in a manner consistent with the goals 

2 described in subsection (e). 

3 ‘‘(B) CONTENTS.—The plan submitted 

4 under subparagraph (A) shall— 

5 ‘‘(i) identify the department or agency 

6 responsible for implementing each action 

7 required; 

8 ‘‘(ii) ensure that allowances are dis9 tributed not later than January 1, 2010, 

10 for calendar year 2010; and 

11 ‘‘(iii) in no case allow any distribution 

12 of allowances without charge to result in 

13 the creation of windfall profits for covered 

14 entities. 

15 ‘‘(2) PLAN IMPLEMENTATION.—The Adminis16 trator and the head of each department or agency 

17 identified in paragraph (1)(B)(i) shall give the Con18 gress a period of one year to review and act upon 

19 the plan submitted under paragraph (1). If during 

20 such period no statute is enacted for the express 

21 purpose of codifying such plan or an alternative to 

22 such plan, the Administrator and the head of each 

23 such department or agency shall implement the ac24 tions identified in the plan. 


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1 ‘‘(e) GOALS.—The goals described in this subsection 

2 are the following: 

3 ‘‘(1) Maximizing public benefit and promoting 

4 economic growth. 

5 ‘‘(2) Mitigating the effect of any energy cost in6 creases to consumers, particularly low-income con7 sumers. 

8 ‘‘(3) Providing equitable transition assistance to 

9 any workers and regions affected by a transition 

10 away from high carbon-emitting energy sources. 

11 ‘‘(4) Encouraging research, development, and 

12 commercial deployment of innovative technologies for 

13 avoiding, reducing, or sequestering greenhouse gas 

14 emissions. 

15 ‘‘(5) Encouraging reduced carbon emissions 

16 from, and enhanced sequestration of, carbon in the 

17 forest and agricultural sectors. 

18 ‘‘(6) Recognizing and rewarding early reduc19 tions of greenhouse gases. 

20 ‘‘(7) Supporting activities, including providing 

21 support for State activities, to protect against and 

22 mitigate the impacts of climate change, including de23 pletion of snowpack and water supplies, droughts, 

24 wildfires, enhanced coastal erosion, sea level rise, 

25 higher storm surges, more intense precipitation 


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1 events and hurricanes, spread of disease, damage to 

2 fish and wildlife habitat, commercial harms (such as 

3 damage to the maple syrup and fishing industries), 

4 and agricultural and forestry losses due to drought, 

5 disease, and insect infestations. 

6 ‘‘(f) MONITORING.—The Administrator shall ensure 

7 that greenhouse gas emissions and the use of allowances 

8 issued under this section are accurately tracked, reported, 

9 and verified, to ensure that the cap-and-trade system es10 tablished pursuant to this section is robust and enforce11 able. 

12 ‘‘(g) ENFORCEMENT.— 

13 ‘‘(1) IN GENERAL.—In the case of excess green14 house gas emissions under this section by an entity 

15 during any calendar year, the regulations promul16 gated under section 703(a) shall require the entity— 

17 ‘‘(A) to submit allowances for such emis18 sions during the following calendar year; and 

19 ‘‘(B) to pay a civil penalty in an amount 

20 determined under paragraph (2). 

21 ‘‘(2) AMOUNT OF CIVIL PENALTY.—For each 

22 quantity of excess greenhouse gas emissions consti23 tuting one carbon dioxide equivalent, the amount of 

24 a civil penalty under this subsection shall be twice 

25 the market price for an allowance at the end of the 


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1 calendar year in which the excess emissions oc2 curred. The Administrator shall establish the meth3 od of determining such market price. 

4 ‘‘(3) NO DEMAND REQUIRED.—A civil penalty 

5 under this subsection shall be due and payable to 

6 the Administrator without demand. 

7 ‘‘(h) CLIMATE REINVESTMENT FUND.— 

8 ‘‘(1) ESTABLISHMENT.—There is established in 

9 the Treasury of the United States a fund to be 

10 known as the ‘Climate Reinvestment Fund’ (in this 

11 subsection referred to as the ‘Fund’). The Fund 

12 shall consist of such amounts as may be appro13 priated pursuant to paragraph (2) to the Fund. 

14 Such amounts shall remain available until expended. 

15 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

16 For each fiscal year, there is authorized to be appro17 priated to the Fund an amount equal to the sum 

18 of— 

19 ‘‘(A) the amount collected through auc20 tions of allowances issued under this section; 

21 and 

22 ‘‘(B) the amount of civil penalties assessed 

23 under subsection (g). 

24 ‘‘(3) USE OF FUNDS.—Amounts in the Fund 

25 and available pursuant to an appropriations Act 


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1 shall be expended by the President to further the 

2 goals described in subsection (e). 

3 ‘‘(4) INVESTMENT.—The Secretary of the 

4 Treasury shall invest such amounts of the Fund as 

5 such Secretary determines are not required to meet 

6 current withdrawals from the Fund. 

7 ‘‘(i) DEFINITION.—In this section, the term ‘covered 

8 entity’ means an entity covered by the cap under sub9 section (a)(1). 

10 ‘‘SEC. 705. ADDITIONAL AUTHORITY TO REGULATE GREEN11 HOUSE GAS EMISSIONS. 

12 ‘‘(a) ADDITIONAL REGULATIONS.—The regulations 

13 promulgated under section 703(a) may include additional 

14 regulations to reduce emissions of greenhouse gases from 

15 any source or sector, irrespective of whether the source 

16 or sector is described in section 704(b)(1). Regulations 

17 under this section may include emissions performance 

18 standards, efficiency performance standards, best manage19 ment practices, technology-based requirements, and other 

20 forms of requirements. 

21 ‘‘(b) RELATION TO OTHER AUTHORITY.—The au22 thorizations under this title are in addition to the Admin23 istrator’s authority to regulate greenhouse gas emissions 

24 pursuant to other provisions of law in effect on the date 

25 of the enactment of the Safe Climate Act of 2006. 


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1 ‘‘SEC. 706. GREENHOUSE GAS EMISSIONS STANDARDS FOR 

2 MOTOR VEHICLES. 

3 ‘‘(a) IN GENERAL.—The regulations promulgated 

4 under section 703(a) shall include regulations under sec5 tion 202 setting standards for greenhouse gas emissions 

6 from motor vehicles. These standards shall reduce such 

7 emissions at least as quickly and at least as much (on an 

8 average vehicle basis) as the standards adopted by the 

9 California Air Resources Board at its September 23–24, 

10 2004 hearing (California Code of Regulations, title 13, 

11 sec. 1961.1). 

12 ‘‘(b) REVISION OF STANDARDS.—Not later than Jan13 uary 1, 2014, and every 5 years thereafter, the Adminis14 trator shall promulgate regulations revising such stand15 ards to further reduce greenhouse gas emissions from 

16 motor vehicles, taking into account the reductions needed 

17 to achieve the emission reduction targets promulgated 

18 pursuant to section 701, as well as the technological feasi19 bility of achieving tighter standards of various 

20 stringencies. 

21 ‘‘SEC. 707. SAVINGS CLAUSE. 

22 ‘‘Nothing in this title shall be interpreted to preempt 

23 or limit State actions to address climate change. 

24 ‘‘SEC. 708. DEFINITIONS. 

25 ‘‘In this title: 


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1 ‘‘(1) CARBON DIOXIDE EQUIVALENT.—The 

2 term ‘carbon dioxide equivalent’ means the quantity 

3 of greenhouse gas that makes the same contribution 

4 to global warming as 1 metric ton of carbon dioxide, 

5 as determined by the Administrator, taking into ac6 count the global warming potentials published by the 

7 Intergovernmental Panel on Climate Change. 

8 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 

9 gas’ means— 

10 ‘‘(A) carbon dioxide; 

11 ‘‘(B) methane; 

12 ‘‘(C) nitrous oxide; 

13 ‘‘(D) hydrofluorocarbons; 

14 ‘‘(E) perfluorocarbons; 

15 ‘‘(F) sulfur hexafluoride; or 

16 ‘‘(G) any other anthropogenically-emitted 

17 gas that is determined by the Administrator, 

18 after notice and comment, to contribute to glob19 al warming to a non-negligible degree. 

20 ‘‘(3) UNITED STATES GREENHOUSE GAS EMIS21 SIONS.—The term ‘United States greenhouse gas 

22 emissions’ means the total quantity of greenhouse 

23 gas emissions calculated by the Administrator on an 

24 annual basis and reported to the United Nations 


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1 Framework Convention on Climate Change Secre2 tariat.’’. 

3 SEC. 4. NATIONAL RENEWABLE ENERGY STANDARD. 

4 Title VI of the Public Utility Regulatory Policies Act 

5 of 1978 (16 U.S.C. 824a–4 et seq.) is amended by adding 

6 at the end the following: 

7 ‘‘SEC. 610. NATIONAL RENEWABLE ENERGY STANDARD. 

8 ‘‘(a) IN GENERAL.—The Secretary shall promulgate 

9 regulations requiring that— 

10 ‘‘(1) beginning in calendar year 2009, the per11 centage of electric energy generated from renewable 

12 sources that is sold at the retail level in the United 

13 States shall increase each year; and 

14 ‘‘(2) in calendar year 2020 and each subse15 quent calendar year, such percentage shall be not 

16 less than 20 percent of the total electricity sold at 

17 the retail level in the United States. 

18 ‘‘(b) CONSULTATION.—The Secretary shall carry out 

19 this section in consultation with the Administrator of the 

20 Environmental Protection Agency. 

21 ‘‘(c) SUBSEQUENT INCREASES.—Upon petition or 

22 upon the Secretary’s own initiative, the Secretary may in23 crease the percentage required by subsection (a)(2). 

24 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec25 tion shall be construed to preempt or limit State actions 


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1 to enhance renewable energy generation or energy effi2 ciency.’’. 

3 SEC. 5. NATIONAL ENERGY EFFICIENCY STANDARD. 

4 Title VI of the Public Utility Regulatory Policies Act 

5 of 1978 (16 U.S.C. 824a–4 et seq.), as amended by sec6 tion 4 of this Act, is amended by adding at the end the 

7 following: 

8 ‘‘SEC. 611. NATIONAL ENERGY EFFICIENCY STANDARD. 

9 ‘‘(a) IN GENERAL.—The Secretary shall promulgate 

10 regulations in accordance with this section setting end11 user savings targets for retail electric-energy and natural 

12 gas suppliers. 

13 ‘‘(b) CONSULTATION.—The Secretary shall carry out 

14 this section in consultation with the Administrator of the 

15 Environmental Protection Agency. 

16 ‘‘(c) REQUIREMENTS.—With respect to targets under 

17 subsection (a): 

18 ‘‘(1) The targets shall require each supplier to 

19 secure annual savings of a set percentage of the sup20 plier’s most recent year’s sales to retail customers. 

21 ‘‘(2) The savings shall be achieved through end22 use efficiency improvements at customer facilities. 

23 ‘‘(3) The targets shall increase gradually from 

24 0.25 percent of sales in 2009 to 1 percent of sales 

25 in 2012 and each year thereafter through 2020. 


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1 ‘‘(4) The targets are cumulative. Each year’s 

2 savings shall be achieved in addition to the previous 

3 years’ savings. 

4 ‘‘(d) REQUIRED PERCENTAGES AFTER 2020.—The 

5 Secretary may, upon petition or upon the Secretary’s own 

6 initiative, increase the required percentage of end-user 

7 savings for years after 2020. 

8 ‘‘(e) MARKET-BASED TRADING SYSTEM.—The Sec9 retary shall allow suppliers to achieve the targets under 

10 subsection (a) through a market-based trading system. 

11 ‘‘(f) RULE OF CONSTRUCTION.—Nothing in this sec12 tion shall be construed to preempt or limit State actions 

13 to enhance renewable energy generation or energy effi14 ciency.’’. 

Æ 


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