II 

110TH CONGRESS 

1ST SESSION S. 317 

To amend the Clean Air Act to establish a program to regulate the emission 

of greenhouse gases from electric utilities. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 17, 2007 

Mrs. FEINSTEIN (for herself and Mr. CARPER) introduced the following bill; 

which was read twice and referred to the Committee on Environment and 

Public Works 

A BILL 

To amend the Clean Air Act to establish a program to 

regulate the emission of greenhouse gases from electric 

utilities. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Electric Utility Cap and Trade Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—GLOBAL CLIMATE CHANGE 

Sec. 101. Global climate change. 


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‘‘TITLE VII—GLOBAL CLIMATE CHANGE 

‘‘Sec. 701. Definitions. 

‘‘Subtitle A—Stopping and Reversing Greenhouse Gas Emissions 

‘‘Sec. 711. Regulations; greenhouse gas tonnage limitation. 

‘‘Sec. 712. Scientific review of the safe climate level. 

‘‘Sec. 713. Required review of emission reductions needed to maintain the 

safe climate level. 

‘‘Sec. 714. Distribution of allowances between auctions and allocations; nature of allowances. 

‘‘Sec. 715. Auction of allowances. 

‘‘Sec. 716. Allocation of allowances. 

‘‘Sec. 717. Climate Action Trust Fund. 

‘‘Sec. 718. Early reduction credits. 

‘‘Sec. 719. Recognition and use of international credits. 

‘‘Sec. 720. Avoiding significant economic harm. 

‘‘Sec. 721. Use and transfer of credits. 

‘‘Sec. 722. Compliance and enforcement. 

‘‘Subtitle B—Offset Credits 

‘‘Sec. 731. Outreach initiative on revenue enhancement for agricultural 

producers. 

‘‘Sec. 732. Offset measurement for agricultural, forestry, wetlands, and 

other land use-related sequestration projects. 

‘‘Sec. 733. Categories of agricultural offset practices. 

‘‘Sec. 734. Offset credits from forest management, grazing management, 

and wetlands management. 

‘‘Sec. 735. Offset credits from the avoided conversion of forested land or 

wetland. 

‘‘Sec. 736. Offset credits from greenhouse gas emissions reduction 

projects. 

‘‘Sec. 737. Borrowing at program start-up based on contracts to purchase 

offset credits. 

‘‘Sec. 738. Review and correction of accounting for offset credits. 

‘‘Subtitle C—National Registry for Credits 

‘‘Sec. 741. Establishment and operation of national registry. 

‘‘Sec. 742. Monitoring and reporting. 

TITLE II—CLIMATE CHANGE RESEARCH INITIATIVES 

Sec. 201. Research grants through National Science Foundation. 

Sec. 202. Abrupt climate change research. 

Sec. 203. Development of new measurement technologies. 

Sec. 204. Technology development and diffusion. 

Sec. 205. Public land. 

Sec. 206. Sea level rise from polar ice sheet melting. 


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1 TITLE I—GLOBAL CLIMATE 

2 CHANGE 

3 SEC. 101. GLOBAL CLIMATE CHANGE. 

4 (a) IN GENERAL.—The Clean Air Act (42 U.S.C. 

5 7401 et seq.) is amended by adding at the end the fol6 lowing: 

7 ‘‘TITLE VII—GLOBAL CLIMATE 

8 CHANGE 

9 ‘‘SEC. 701. DEFINITIONS. 

10 ‘‘In this title: 

11 ‘‘(1) AFFECTED UNIT.— 

12 ‘‘(A) IN GENERAL.—The term ‘affected 

13 unit’ means an electric generating facility 

14 that— 

15 ‘‘(i) has a nameplate capacity greater 

16 than 25 megawatts; 

17 ‘‘(ii) combusts greenhouse gas-emit18 ting fuels; and 

19 ‘‘(iii) generates electricity for sale. 

20 ‘‘(B) INCLUSIONS.—The term ‘affected 

21 unit’ includes— 

22 ‘‘(i) a cogeneration facility; and 

23 ‘‘(ii) a facility owned or operated by 

24 any instrumentality of— 

25 ‘‘(I) the Federal Government; or 


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1 ‘‘(II) any State, local, or tribal 

2 government. 

3 ‘‘(2) AFFORESTATION.—The term ‘afforesta4 tion’ means the conversion to a forested condition of 

5 land that has been in a nonforested condition for at 

6 least 15 years. 

7 ‘‘(3) ALLOCATION.—The term ‘allocation’, with 

8 respect to an allowance, means the issuance of an al9 lowance directly to covered units, at no cost, under 

10 this title. 

11 ‘‘(4) ALLOWANCE.—The term ‘allowance’ 

12 means an authorization under this title to emit 1 

13 metric ton of carbon dioxide (or a carbon dioxide 

14 equivalent), as allocated to a covered unit pursuant 

15 to section 716. 

16 ‘‘(5) CARBON DIOXIDE EQUIVALENT.—The 

17 term ‘carbon dioxide equivalent’ means, with respect 

18 to a greenhouse gas, the quantity of the greenhouse 

19 gas that makes the same contribution to global 

20 warming as 1 metric ton of carbon dioxide, as deter21 mined by the Administrator. 

22 ‘‘(6) COGENERATION FACILITY.—The term ‘co23 generation facility’ means a facility that— 

24 ‘‘(A) cogenerates steam and electricity; and 


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1 ‘‘(B) supplies, on a net annual basis, to 

2 the electric power grid— 

‘‘(i) more than 1 3 ⁄3 of the potential 

4 electric output capacity of the facility; and 

5 ‘‘(ii) more than 25 megawatts of elec6 trical output from the facility. 

7 ‘‘(7) COVERED UNIT.—The term ‘covered unit’ 

8 means— 

9 ‘‘(A) an affected unit; 

10 ‘‘(B) a nuclear generating unit (including 

11 a facility owned or operated by any instrumen12 tality of the Federal Government or of any 

13 State, local, or tribal government), but only to 

14 the extent of incremental nuclear generation of 

15 the unit; and 

16 ‘‘(C) a renewable energy unit (including a 

17 facility owned or operated by any instrumen18 tality of the Federal Government or of any 

19 State, local, or tribal government). 

20 ‘‘(8) CREDIT.— 

21 ‘‘(A) IN GENERAL.—The term ‘credit’ 

22 means an authorization under this title to emit 

23 greenhouse gases equivalent to 1 metric ton of 

24 carbon dioxide. 


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1 ‘‘(B) INCLUSIONS.—The term ‘credit’ in2 cludes— 

3 ‘‘(i) an allowance; 

4 ‘‘(ii) an offset credit; 

5 ‘‘(iii) an early reduction credit; or 

6 ‘‘(iv) an international credit. 

7 ‘‘(9) EARLY REDUCTION CREDIT.—The term 

8 ‘early reduction credit’ means a credit issued under 

9 section 718 for a reduction in the quantity of emis10 sions or an increase in sequestration equivalent to 1 

11 metric ton of carbon dioxide. 

12 ‘‘(10) FUND.—The term ‘Fund’ means the Cli13 mate Action Trust Fund established by section 

14 717(a)(1). 

15 ‘‘(11) GREENHOUSE GAS.—The term ‘green16 house gas’ means— 

17 ‘‘(A) carbon dioxide; 

18 ‘‘(B) methane; 

19 ‘‘(C) nitrous oxide; 

20 ‘‘(D) hydrofluorocarbons; 

21 ‘‘(E) perfluorocarbons; and 

22 ‘‘(F) sulfur hexafluoride. 

23 ‘‘(12) GREENHOUSE GAS AUTHORIZED AC24 COUNT REPRESENTATIVE.—The term ‘greenhouse 

25 gas authorized account representative’ means, for a 


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1 covered unit, an individual who is authorized by the 

2 owner and operator of the covered unit to represent 

3 and legally bind the owner and operator in matters 

4 pertaining to this title. 

5 ‘‘(13) GREENHOUSE GAS-EMITTING FUEL.— 

6 ‘‘(A) IN GENERAL.—The term ‘greenhouse 

7 gas-emitting fuel’ means any fuel that produces 

8 a greenhouse gas as a combustion product. 

9 ‘‘(B) INCLUSIONS.—The term ‘greenhouse 

10 gas-emitting fuel’ includes— 

11 ‘‘(i) fossil fuels; 

12 ‘‘(ii) municipal waste; 

13 ‘‘(iii) industrial waste; 

14 ‘‘(iv) agricultural waste; and 

15 ‘‘(v) biomass that is not grown using 

16 sustainable techniques. 

17 ‘‘(C) EXCLUSION.—The term ‘greenhouse 

18 gas-emitting fuel’ does not include biomass that 

19 is grown using sustainable techniques. 

20 ‘‘(14) INCREMENTAL NUCLEAR GENERATION.— 

21 The term ‘incremental nuclear generation’ means, as 

22 determined by the Administrator and measured in 

23 megawatt hours, the difference between— 


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1 ‘‘(A) the quantity of electricity generated 

2 by a nuclear generating unit in a calendar year; 

3 and 

4 ‘‘(B) the quantity of electricity generated 

5 by the nuclear generating unit in calendar year 

6 1990. 

7 ‘‘(15) INDUSTRY SECTOR.—The term ‘industry 

8 sector’ means any sector of the economy of a coun9 try (including, where applicable, the forestry sector) 

10 that is responsible for significant quantities of 

11 greenhouse gas emissions. 

12 ‘‘(16) INTERNATIONAL CREDIT.—The term 

13 ‘international credit’ means a credit recognized for a 

14 reduction in the quantity of emissions or an increase 

15 in sequestration equivalent to 1 metric ton of carbon 

16 dioxide that— 

17 ‘‘(A) arises from activities outside the 

18 United States; and 

19 ‘‘(B) is authorized for use under section 

20 719. 

21 ‘‘(17) INVASIVE SPECIES.—The term ‘invasive 

22 species’ means a species (including pathogens, seeds, 

23 spores, or any other biological material relating to a 

24 species) the introduction of which causes or is likely 


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1 to cause economic or environmental harm or harm 

2 to human health. 

3 ‘‘(18) LAND-GRANT COLLEGES AND UNIVER4 SITIES.—The term ‘land-grant colleges and univer5 sities’ has the meaning given the term in section 

6 1404 of the National Agricultural Research, Exten7 sion, and Teaching Policy Act of 1977 (7 U.S.C. 

8 3103). 

9 ‘‘(19) LEAKAGE.—The term ‘leakage’ means an 

10 increase in greenhouse gas emissions or a decrease 

11 in sequestration of greenhouse gases that is— 

12 ‘‘(A) outside the area of a project; and 

13 ‘‘(B) attributable to the project. 

14 ‘‘(20) NATIVE PLANT.—The term ‘native plant’ 

15 means an indigenous, terrestrial, or aquatic plant 

16 species that evolved naturally in an ecosystem. 

17 ‘‘(21) NEW AFFECTED UNIT.—The term ‘new 

18 affected unit’ means an affected unit that has oper19 ated for not more than 3 years. 

20 ‘‘(22) NEW COVERED UNIT.—The term ‘new 

21 covered unit’ means a covered unit that has operated 

22 for not more than 3 years. 

23 ‘‘(23) NOXIOUS WEED.—The term ‘noxious 

24 weed’ means a plant species that is— 

25 ‘‘(A) characterized by being— 


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1 ‘‘(i) aggressive and difficult to man2 age; 

3 ‘‘(ii) poisonous, toxic, parasitic, or a 

4 carrier or host of insects or disease rep5 resenting a serious threat to native species 

6 or crops; or 

7 ‘‘(iii) nonnative to, new to, or not 

8 common to, the United States (or a region 

9 of the United States); or 

10 ‘‘(B) otherwise designated as a noxious 

11 weed by the Secretary of Agriculture or an ap12 propriate State official. 

13 ‘‘(24) NUCLEAR GENERATING UNIT.—The term 

14 ‘nuclear generating unit’ means an electric gener15 ating facility that uses nuclear energy to generate 

16 electricity for sale. 

17 ‘‘(25) OFFSET CREDIT.—The term ‘offset cred18 it’ means a credit issued for an offset project pursu19 ant to subtitle B certifying a reduction in the quan20 tity of emissions or an increase in sequestration 

21 equivalent to 1 metric ton of carbon dioxide. 

22 ‘‘(26) OFFSET PRACTICE.—The term ‘offset 

23 practice’ means a practice that— 

24 ‘‘(A) reduces greenhouse gas emissions or 

25 increases sequestration other than by reducing 


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1 the combustion of greenhouse gas-emitting fuel 

2 at an affected unit; and 

3 ‘‘(B) may be eligible to create an offset 

4 credit under this title. 

5 ‘‘(27) OFFSET PROJECT.—The term ‘offset 

6 project’ means a project that reduces greenhouse gas 

7 emissions or increases sequestration of carbon diox8 ide or a carbon dioxide equivalent by a method other 

9 than reduction of combustion of greenhouse gas10 emitting fuel at an affected unit. 

11 ‘‘(28) PANEL.—The term ‘Panel’ means the 

12 Climate Science Advisory Panel established by sec13 tion 712(b)(1). 

14 ‘‘(29) PLANT MATERIAL.—The term ‘plant ma15 terial’ means— 

16 ‘‘(A) a seed; 

17 ‘‘(B) a part of a plant; or 

18 ‘‘(C) a whole plant. 

19 ‘‘(30) RENEWABLE ENERGY.—The term ‘renew20 able energy’ means electricity generated from— 

21 ‘‘(A) wind; 

22 ‘‘(B) organic waste (excluding incinerated 

23 municipal solid waste); 


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1 ‘‘(C) biomass (including anaerobic diges2 tion from farm systems and landfill gas recov3 ery); or 

4 ‘‘(D) a hydroelectric, geothermal, solar 

5 thermal, photovoltaic, tidal, wave, or other non6 fossil fuel, nonnuclear source. 

7 ‘‘(31) RENEWABLE ENERGY UNIT.—The term 

8 ‘renewable energy unit’ means an electric generating 

9 unit that exclusively uses renewable energy to gen10 erate electricity for sale. 

11 ‘‘(32) RESTORATION.— 

12 ‘‘(A) IN GENERAL.—The term ‘restoration’ 

13 means assisting the recovery of an ecosystem 

14 that has been degraded, damaged, or destroyed. 

15 ‘‘(B) INCLUSION.—The term ‘restoration’ 

16 includes the reestablishment in an ecosystem of 

17 preexisting biotic integrity with respect to spe18 cies composition and community structure. 

19 ‘‘(33) SEQUESTRATION.—The term ‘sequestra20 tion’ means the separation, isolation, or removal of 

21 greenhouse gases from the atmosphere. 

22 ‘‘(34) SEQUESTRATION FLOW.—The term ‘se23 questration flow’ means the uptake of greenhouse 

24 gases each year from sequestration practices, as cal25 culated under section 732. 


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1 ‘‘(35) SUSTAINABLE TECHNIQUE.—The term 

2 ‘sustainable technique’ means an agricultural, for3 estry, or animal husbandry technique that does not 

4 result in— 

5 ‘‘(A) a long-term net depletion of natural 

6 resources; or 

7 ‘‘(B) a net emission of greenhouse gas dur8 ing the lifecycle of biomass production, harvest, 

9 processing, and consumption. 

10 ‘‘(36) UNFCCC.—The term ‘UNFCCC’ means 

11 the United Nations Framework Convention on Cli12 mate Change, done at New York on May 9, 1992. 

13 ‘‘Subtitle A—Stopping and Revers14 ing Greenhouse Gas Emissions 

15 ‘‘SEC. 711. REGULATIONS; GREENHOUSE GAS TONNAGE 

16 LIMITATION. 

17 ‘‘(a) REGULATIONS.—Not later than 18 months after 

18 the date of enactment of this title, the Administrator shall 

19 promulgate regulations to establish an allowance trading 

20 program to address emissions of greenhouse gases from 

21 affected units in the United States. 

22 ‘‘(b) GREENHOUSE GAS TONNAGE LIMITATION.— 

23 Beginning in calendar year 2011, the annual tonnage limi24 tation for the aggregate quantity of emissions of greenVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 house gases from affected units in the United States shall 

2 be equal to— 

3 ‘‘(1) for each of calendar years 2011 through 

4 2014, the aggregate quantity of emissions emitted 

5 from affected units in calendar year 2006, as deter6 mined by the Administrator based on certified and 

7 quality-assured continuous emissions monitoring 

8 data for greenhouse gases, or data that the Adminis9 trator determines to be of similar reliability for af10 fected units without continuous monitoring systems, 

11 reported to the Administrator by affected units in 

12 accordance with this subtitle; 

13 ‘‘(2) for calendar year 2015, the aggregate 

14 quantity of emissions emitted from affected units in 

15 calendar year 2001, as determined by the Adminis16 trator based on certified and quality-assured contin17 uous emissions monitoring data for greenhouse 

18 gases, or data that the Administrator determines to 

19 be of similar reliability for affected units without 

20 continuous monitoring systems, reported to the Ad21 ministrator by affected units in accordance with this 

22 subtitle; 

23 ‘‘(3) for each of calendar years 2016 through 

24 2019, the aggregate quantity of emissions emitted 

25 from affected units during the calendar year that is 


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1 1 percent less than the aggregate quantity of emis2 sions from affected units allowed pursuant to this 

3 section during the preceding calendar year; and 

4 ‘‘(4) for calendar year 2020 and each calendar 

5 year thereafter, the aggregate quantity of emissions 

6 emitted during the calendar year that is 1.5 percent 

7 less than the aggregate quantity of emissions from 

8 affected units allowed pursuant to this section dur9 ing the preceding calendar year, except as modified 

10 by the Administrator pursuant to section 713. 

11 ‘‘SEC. 712. SCIENTIFIC REVIEW OF THE SAFE CLIMATE 

12 LEVEL. 

13 ‘‘(a) DEFINITION AND OBJECTIVE OF MAINTAINING

14 THE SAFE CLIMATE LEVEL.— 

15 ‘‘(1) FINDING.—Congress finds that ratification 

16 by the Senate in 1992 of the UNFCCC, commit17 ments which were affirmed by the President in 

18 2002, established for the United States an objective 

19 of ‘stabilization of greenhouse gas concentrations in 

20 the atmosphere at a level that would prevent dan21 gerous anthropogenic interference with the climate 

22 system’. 

23 ‘‘(2) DEFINITION OF SAFE CLIMATE LEVEL.— 

24 In this section, the term ‘safe climate level’ means 

25 the climate level referred to in paragraph (1). 


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1 ‘‘(b) CLIMATE SCIENCE ADVISORY PANEL.— 

2 ‘‘(1) ESTABLISHMENT.—Not later than 270 

3 days after the date of enactment of this title, the 

4 Administrator shall establish an advisory panel, to 

5 be known as the ‘Climate Science Advisory Panel’. 

6 ‘‘(2) DUTIES.—The Panel shall— 

7 ‘‘(A) inform Congress and the Adminis8 trator of the state of climate science; 

9 ‘‘(B) not later than December 31, 2011, 

10 and not less frequently than every 4 years 

11 thereafter, issue a report that is endorsed by at 

12 least 7 members of the Panel that describes 

13 recommendations for the Administrator, based 

14 on the best available information in the fields of 

15 climate science, including reports from the 

16 Intergovernmental Panel on Climate Change, 

17 relating to— 

18 ‘‘(i) the specific concentration, in 

19 parts per million, of all greenhouse gases 

20 in carbon dioxide equivalents at or below 

21 which constitutes the safe climate level; 

22 and 

23 ‘‘(ii) the projected timeframe for 

24 achieving the safe climate level. 

25 ‘‘(3) COMPOSITION.— 


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1 ‘‘(A) IN GENERAL.—The Panel shall be 

2 composed of 8 climate scientists and 3 former 

3 Federal officials, as described in subparagraphs 

4 (B) through (D). 

5 ‘‘(B) CLIMATE SCIENTISTS.—Not later 

6 than 270 days after the date of enactment of 

7 this title, the President of the National Acad8 emy of Sciences shall appoint to serve on the 

9 Panel 8 climate scientists from among individ10 uals who— 

11 ‘‘(i) have earned doctorate degrees; 

12 ‘‘(ii) have performed research in phys13 ical, biological, or social sciences, mathe14 matics, economics, or related fields, with a 

15 particular focus on or link to 1 or more as16 pects of climate science; 

17 ‘‘(iii) have records of peer-reviewed 

18 publications that include— 

19 ‘‘(I) publications in main-stream, 

20 high-quality scientific journals (such 

21 as journals associated with respected 

22 scientific societies or those with a high 

23 impact factor, as determined by the 

24 Institute for Scientific Information); 


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1 ‘‘(II) recent publications relating 

2 to earth systems, and particularly re3 lating to the climate system; and 

4 ‘‘(III) a high publication rate, 

5 typically at least 2 or 3 papers per 

6 year; and 

7 ‘‘(iv) have participated in high-level 

8 committees, such as those formed by the 

9 National Academy of Sciences or by lead10 ing scientific societies. 

11 ‘‘(C) RESTRICTION.—A majority of climate 

12 scientists appointed to the Panel under sub13 paragraph (B) shall be participating, as of the 

14 date of appointment to the Panel, in active re15 search in the physical or biological sciences, 

16 with a particular focus on or link to 1 or more 

17 aspects of climate science. 

18 ‘‘(D) FEDERAL OFFICIALS.— 

19 ‘‘(i) IN GENERAL.—Subject to clause 

20 (ii), the Administrator shall appoint as 

21 members of the Panel, the longest-serving 

22 former Administrators of the Environ23 mental Protection Agency for each of the 

24 3 most recent former Presidents. 


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1 ‘‘(ii) TIMING.—The 3 most recent 

2 former Presidents described in clause (i) 

3 shall be identified as of the deadline for 

4 appointments to the Panel under subpara5 graph (B) or (E)(ii), whichever is applica6 ble. 

7 ‘‘(iii) SUBSTITUTES.—If a former Ad8 ministrator described in clause (i) declines 

9 appointment, or is unable to serve, as a 

10 member of the Panel, the Administrator 

11 shall appoint in place of the former Admin12 istrator— 

13 ‘‘(I) the longest-serving former 

14 Administrator for the applicable 

15 President who agrees to serve; or 

16 ‘‘(II) if no individual described in 

17 subclause (I) accepts appointment as 

18 a member of the Panel, the longest19 serving Assistant Administrator for 

20 Air and Radiation for the applicable 

21 President who agrees to serve. 

22 ‘‘(E) TERMS OF SERVICE AND VACAN23 CIES.— 

24 ‘‘(i) TERMS.—The initial term of a 

25 member of the Panel shall be— 


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1 ‘‘(I) to the maximum extent prac2 ticable, the period covered by, and ex3 tending through the date of issuance 

4 of, each report under paragraph 

5 (2)(B); but 

6 ‘‘(II) not longer than 4 years. 

7 ‘‘(ii) SUBSEQUENT PANELS AND RE8 PORTS.—On the issuance of each report 

9 under paragraph (2)(B)— 

10 ‘‘(I) the Panel that submitted the 

11 report shall terminate; and 

12 ‘‘(II)(aa) pursuant to subpara13 graphs (B) and (C), the President of 

14 the National Academy of Sciences 

15 shall appoint climate scientists (in16 cluding at least 3 climate scientists 

17 who served as members of the pre18 ceding Panel) to serve as members of 

19 a new Panel by not later than 15 

20 months after the deadline for issuance 

21 of the report under paragraph (2)(B); 

22 and 

23 ‘‘(bb) pursuant to subparagraph 

24 (D), the Administrator shall appoint 3 

25 Federal officials as members of the 


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1 new Panel by the deadline described 

2 in item (aa). 

3 ‘‘(iii) VACANCIES.—Vacancies in the 

4 membership of the Panel— 

5 ‘‘(I) shall not affect the power of 

6 the remaining members to execute the 

7 functions of the Panel; and 

8 ‘‘(II) shall be filled in the same 

9 manner in which the original appoint10 ment was made. 

11 ‘‘(F) CHAIRPERSON AND VICE CHAIR12 PERSON.—The Panel shall elect a Chairperson 

13 and Vice Chairperson as soon as practicable. 

14 ‘‘(G) COMPENSATION OF MEMBERS.—A 

15 member of the Panel shall be compensated at a 

16 rate equal to the daily equivalent of the annual 

17 rate of basic pay prescribed for level IV of the 

18 Executive Schedule under section 5315 of title 

19 5, United States Code, for each day (including 

20 travel time) during which the member is en21 gaged in the performance of the duties of the 

22 Panel. 

23 ‘‘(H) TRAVEL EXPENSES.—A member of 

24 the Panel shall be allowed travel expenses, in25 cluding per diem in lieu of subsistence, at rates 


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1 authorized for an employee of an agency under 

2 subchapter I of chapter 57 of title 5, United 

3 States Code, while away from the home or reg4 ular place of business of the member in the per5 formance of the duties of the Panel. 

6 ‘‘(4) STAFF.— 

7 ‘‘(A) IN GENERAL.—The Chairperson of 

8 the Panel may, without regard to the civil serv9 ice laws (including regulations), appoint and 

10 terminate an executive director and such other 

11 additional personnel as are necessary to enable 

12 the Panel to perform the duties of the Panel. 

13 ‘‘(B) CONFIRMATION OF EXECUTIVE DI14 RECTOR.—The employment of an executive di15 rector shall be subject to confirmation by the 

16 Panel. 

17 ‘‘(C) COMPENSATION.— 

18 ‘‘(i) IN GENERAL.—Except as pro19 vided in clause (ii), the Chairperson of the 

20 Panel may fix the compensation of the ex21 ecutive director and other personnel with22 out regard to the provisions of chapter 51 

23 and subchapter III of chapter 53 of title 5, 

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1 tion of positions and General Schedule pay 

2 rates. 

3 ‘‘(ii) EXCEPTION.—The rate of pay 

4 for the executive director and other per5 sonnel shall not exceed the rate payable for 

6 level V of the Executive Schedule under 

7 section 5316 of title 5, United States 

8 Code. 

9 ‘‘(D) DETAIL OF FEDERAL GOVERNMENT

10 EMPLOYEES.— 

11 ‘‘(i) IN GENERAL.—An employee of 

12 the Federal Government may be detailed to 

13 the staff of the Panel without reimburse14 ment. 

15 ‘‘(ii) TREATMENT OF DETAILEES.— 

16 The detail of the employee shall be without 

17 interruption or loss of civil service status 

18 or privilege. 

19 ‘‘(E) PROCUREMENT OF TEMPORARY AND

20 INTERMITTENT SERVICES.—The Chairperson or 

21 executive director of the Panel may procure 

22 temporary and intermittent services in accord23 ance with section 3109(b) of title 5, United 

24 States Code, at rates for individuals that do not 

25 exceed the daily equivalent of the annual rate of 


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1 basic pay prescribed for level V of the Executive 

2 Schedule under section 5316 of that title. 

3 ‘‘(5) HEARINGS.—The Panel may hold such 

4 hearings, meet and act at such times and places, 

5 take such testimony, and receive such evidence as 

6 the Panel considers advisable to carry out this sec7 tion. 

8 ‘‘(6) INFORMATION FROM FEDERAL AGEN9 CIES.— 

10 ‘‘(A) IN GENERAL.—The Panel may secure 

11 directly from a Federal agency such informa12 tion as the Panel considers necessary to carry 

13 out this section. 

14 ‘‘(B) PROVISION OF INFORMATION.—On 

15 request of the Chairperson of the Panel, the 

16 head of the agency shall provide the informa17 tion to the Panel. 

18 ‘‘(7) POSTAL SERVICES.—The Panel may use 

19 the United States mail in the same manner and 

20 under the same conditions as other agencies of the 

21 Federal Government. 


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1 ‘‘SEC. 713. REQUIRED REVIEW OF EMISSION REDUCTIONS 

2 NEEDED TO MAINTAIN THE SAFE CLIMATE 

3 LEVEL. 

4 ‘‘(a) REVIEW AND DETERMINATION REGARDING RE5 DUCTION RATE.—Not later than December 31, 2015, the 

6 Administrator, after providing public notice and oppor7 tunity to comment, shall promulgate a final rule pursuant 

8 to which the Administrator shall review the reduction rate 

9 for greenhouse gas emissions required under section 

10 711(b)(4) and determine— 

11 ‘‘(1) whether to— 

12 ‘‘(A) accept the recommendations of the 

13 Panel under section 712(b)(2)(B) regarding the 

14 safe climate level and the timeframe for achiev15 ing the safe climate level; or 

16 ‘‘(B) establish a different safe climate level 

17 or timeframe, together with a detailed expla18 nation of the justification of the Administrator 

19 for rejection of the recommendations of the 

20 Panel; and 

21 ‘‘(2) whether, in order to achieve the safe cli22 mate level within the timeframe described in para23 graph (1), the reduction rate under section 

24 711(b)(4) is most accurately characterized as requir25 ing— 


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1 ‘‘(A) the appropriate level of emission re2 ductions; 

3 ‘‘(B) lesser emission reductions than are 

4 necessary; or 

5 ‘‘(C) greater emission reductions than are 

6 necessary. 

7 ‘‘(b) MODIFICATION OF REDUCTION RATE.— 

8 ‘‘(1) IN GENERAL.—If the Administrator makes 

9 a determination described in subparagraph (B) or 

10 (C) of subsection (a)(2), the final rule promulgated 

11 pursuant to subsection (a) shall establish a required 

12 level of emissions reductions for each calendar year, 

13 beginning with calendar year 2020, based on the 

14 considerations described in paragraph (2). 

15 ‘‘(2) CONSIDERATIONS.— 

16 ‘‘(A) PRIMARY CONSIDERATION.—In estab17 lishing the required level of emission reductions 

18 pursuant to paragraph (1), the Administrator 

19 shall take into consideration primarily the emis20 sion reductions necessary to stabilize atmos21 pheric greenhouse gas concentrations at the 

22 safe climate level within the timeframe specified 

23 under section 712(b)(2)(B). 

24 ‘‘(B) SECONDARY CONSIDERATIONS.—In 

25 establishing the required level of emission reVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 ductions pursuant to paragraph (1), in addition 

2 to the primary consideration described in para3 graph (1), the Administrator shall take into 

4 consideration— 

5 ‘‘(i) technological capability to reduce 

6 greenhouse gas emissions; 

7 ‘‘(ii) the progress that foreign coun8 tries have made toward reducing their 

9 greenhouse gas emissions; 

10 ‘‘(iii) the economic impacts within the 

11 United States of implementing this sub12 title, including impacts on the major emit13 ting sectors; and 

14 ‘‘(iv) the economic impacts within the 

15 United States of inadequate action. 

16 ‘‘(c) ENFORCEMENT PROVISION.— 

17 ‘‘(1) IN GENERAL.—If the Administrator fails 

18 to meet a deadline for promulgation of any regula19 tion under subsection (a), the Administrator shall 

20 withhold from allocation to covered units that would 

21 otherwise be entitled to an allocation of allowances 

22 under this subtitle a total of 10 percent of the allow23 ances for each covered unit for each year after the 

24 deadline until the Administrator promulgates the ap25 plicable regulation. 


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1 ‘‘(2) RETURN OF ALLOWANCES.—On promulga2 tion of a delayed regulation described in paragraph 

3 (1), the Administrator shall distribute any allow4 ances withheld under that paragraph— 

5 ‘‘(A) among the covered units from which 

6 the allowances were withheld; and 

7 ‘‘(B) in accordance with the applicable for8 mula under section 716. 

9 ‘‘(d) SUBSEQUENT RULEMAKINGS.— 

10 ‘‘(1) IN GENERAL.—Not later than December 

11 31, 2019, and every 4 years thereafter, the Adminis12 trator shall promulgate a new final rule described in 

13 subsection (a) in accordance with this section. 

14 ‘‘(2) EFFECTIVE DATE.—If a new final rule 

15 promulgated pursuant to paragraph (1) changes a 

16 level of emission reductions required under the pre17 ceding final rule, the effective date of the new final 

18 rule shall be January 1 of the calendar year that is 

19 5 years after the deadline for promulgation of the 

20 new final rule under paragraph (1). 

21 ‘‘SEC. 714. DISTRIBUTION OF ALLOWANCES BETWEEN AUC22 TIONS AND ALLOCATIONS; NATURE OF AL23 LOWANCES. 

24 ‘‘(a) DISTRIBUTION OF ALLOWANCES BETWEEN

25 AUCTIONS AND ALLOCATIONS.— 


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1 ‘‘(1) IN GENERAL.—For each calendar year, the 

2 total quantity of allowances to be auctioned and allo3 cated under this subtitle shall be equal to the annual 

4 tonnage limitation for emissions of greenhouse gases 

5 from affected units specified in section 711 for the 

6 calendar year. 

7 ‘‘(2) DISTRIBUTION.—The proportion of allow8 ances to be auctioned pursuant to section 715 and 

9 allocated pursuant to section 716 for each calendar 

10 year beginning in calendar year 2011 shall be as fol11 lows: 

‘‘Percentages of Allowances To Be Auctioned and Allocated 

Calendar year Percentage to be auctioned 

Percentage to be allocated 

2011 ............................ 15 85 

2012 ............................ 18 82 

2013 ............................ 21 79 

2014 ............................ 24 76 

2015 ............................ 27 73 

2016 ............................ 30 70 

2017 ............................ 33 67 

2018 ............................ 36 64 

2019 ............................ 39 61 

2020 ............................ 42 58 

2021 ............................ 45 55 

2022 ............................ 48 52 

2023 ............................ 51 49 

2024 ............................ 54 46 

2025 ............................ 57 43 

2026 ............................ 60 40 

2027 ............................ 63 37 

2028 ............................ 66 34 

2029 ............................ 69 41 

2030 ............................ 72 28 

2031 ............................ 75 25 

2032 ............................ 80 20 

2033 ............................ 85 15 

2034 ............................ 90 10 

2035 ............................ 95 5 

2036 and thereafter .... 100 0 

12 ‘‘(b) NATURE OF ALLOWANCES.—An allowance— 


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1 ‘‘(1) shall not be considered to be a property 

2 right; and 

3 ‘‘(2) may be terminated or limited by the Ad4 ministrator. 

5 ‘‘(c) NO JUDICIAL REVIEW.—An auction or alloca6 tion of an allowance by the Administrator shall not be sub7 ject to judicial review. 

8 ‘‘SEC. 715. AUCTION OF ALLOWANCES. 

9 ‘‘(a) IN GENERAL.—Not later than 2 years after the 

10 date of enactment of this title, the Administrator shall 

11 promulgate regulations establishing a procedure for the 

12 auction of the quantity of allowances specified in section 

13 714(a) for each calendar year. 

14 ‘‘(b) DEPOSIT OF PROCEEDS.—The Administrator 

15 shall deposit all proceeds from auctions conducted under 

16 this section in the Fund for use in accordance with section 

17 717. 

18 ‘‘SEC. 716. ALLOCATION OF ALLOWANCES. 

19 ‘‘(a) ALLOCATION TO NEW COVERED UNITS.— 

20 ‘‘(1) ESTABLISHMENT.—For each calendar 

21 year, the Administrator, in consultation with the 

22 Secretary of Energy, shall, based on projections of 

23 electricity output for new covered units, promulgate 

24 regulations establishing— 


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1 ‘‘(A) a reserve of allowances to be allocated 

2 among new covered units for the calendar year; 

3 and 

4 ‘‘(B) the methodology for allocating those 

5 allowances among new covered units. 

6 ‘‘(2) LIMITATION.—The number of allowances 

7 allocated under paragraph (1) during a calendar 

8 year shall be not more than 3 percent of the total 

9 number of allowances allocated among covered units 

10 for the calendar year. 

11 ‘‘(3) UNUSED ALLOWANCES.—For each cal12 endar year, the Administrator shall reallocate to 

13 each covered unit any unused allowances from the 

14 new unit reserve established under paragraph (1) in 

15 the proportion that— 

16 ‘‘(A) the number of allowances allocated to 

17 each covered unit for the calendar year; bears 

18 to 

19 ‘‘(B) the number of allowances allocated to 

20 all covered units for the calendar year. 

21 ‘‘(b) ALLOCATION TO COVERED UNITS THAT ARE

22 NOT NEW COVERED UNITS.— 

23 ‘‘(1) TIMING OF ALLOCATIONS.—Subject to 

24 subsection (c), the Administrator shall allocate alVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 lowances among covered units that are not new cov2 ered units— 

3 ‘‘(A) not later than December 31, 2007, 

4 for calendar year 2011; and 

5 ‘‘(B) not later than December 31 of cal6 endar year 2008 and of each calendar year 

7 thereafter, for each fourth calendar year that 

8 begins after that December 31. 

9 ‘‘(2) ALLOCATIONS.— 

10 ‘‘(A) IN GENERAL.—Subject to subsection 

11 (c), the Administrator shall allocate to each cov12 ered unit that is not a new covered unit a quan13 tity of allowances that is equal to the product 

14 obtained by multiplying— 

15 ‘‘(i) the quantity of allowances avail16 able for allocation under this subsection; 

17 and 

18 ‘‘(ii) the quotient obtained by divid19 ing— 

20 ‘‘(I) the annual average quantity 

21 of electricity generated by the unit 

22 (including only incremental nuclear 

23 generation for nuclear generating 

24 units) during the most recent 3-cal25 endar year period for which data is 


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1 available, updated each calendar year 

2 and measured in megawatt hours; by 

3 ‘‘(II) the difference between— 

4 ‘‘(aa) the total of the aver5 age quantities calculated under 

6 subclause (I) for all covered 

7 units; and 

8 ‘‘(bb) the quantity of elec9 tricity generated by all affected 

10 units and new affected units 

11 that, pursuant to subsection (c), 

12 do not receive any allowances. 

13 ‘‘(B) QUANTITY TO BE ALLOCATED.—For 

14 each calendar year, the quantity of allowances 

15 allocated under subparagraph (A) to covered 

16 units that are not new covered units shall be 

17 equal to the difference between— 

18 ‘‘(i) the annual tonnage limitation for 

19 emissions of greenhouse gases from af20 fected units specified in section 711 for the 

21 calendar year, as modified, if applicable, 

22 under section 713; and 

23 ‘‘(ii) the quantity of allowances re24 served under subsection (a) for the cal25 endar year. 


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1 ‘‘(c) COAL-FIRED AFFECTED UNITS AND NEW AF2 FECTED UNITS.— 

3 ‘‘(1) IN GENERAL.—Notwithstanding any other 

4 provision of this subtitle, no allowance shall be allo5 cated under this subtitle to a coal-fired affected unit 

6 or a coal-fired new affected unit unless the affected 

7 unit or new affected unit— 

8 ‘‘(A) is powered by qualifying advanced 

9 clean coal technology, as defined pursuant to 

10 paragraph (2); or 

11 ‘‘(B) entered operation before January 1, 

12 2007. 

13 ‘‘(2) DEFINITION OF QUALIFYING ADVANCED

14 CLEAN COAL TECHNOLOGY.— 

15 ‘‘(A) IN GENERAL.—Not later than 18 

16 months after the date of enactment of this title, 

17 the Administrator, by regulation, shall define 

18 the term ‘qualifying advanced clean coal tech19 nology’ with respect to electric power genera20 tion. 

21 ‘‘(B) REQUIREMENT.—In promulgating a 

22 definition pursuant to subparagraph (A), the 

23 Administrator shall ensure that the term ‘quali24 fying advanced clean coal technology’ reflects 


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1 advances in available technology, taking into 

2 consideration— 

3 ‘‘(i) net thermal efficiency; 

4 ‘‘(ii) measures to capture and seques5 ter carbon dioxide; and 

6 ‘‘(iii) output-based emission rates 

7 for— 

8 ‘‘(I) carbon dioxide; 

9 ‘‘(II) sulfur dioxide; 

10 ‘‘(III) oxides of nitrogen; 

11 ‘‘(IV) filterable and condensable 

12 particulate matter; and 

13 ‘‘(V) mercury. 

14 ‘‘(C) REVIEW AND REVISION.— 

15 ‘‘(i) IN GENERAL.—Not later than 

16 July 1, 2009, and each July 1 of every sec17 ond year thereafter, the Administrator 

18 shall review and, if appropriate, revise the 

19 definition under subparagraph (A) based 

20 on technological advances during the pre21 ceding 2 calendar years. 

22 ‘‘(ii) NOTICE AND COMMENT RE23 QUIRED.—Subject to clause (iii), after the 

24 initial definition is established under sub25 paragraph (A), no subsequent review or reVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 vision under this subparagraph shall be 

2 subject to the notice and comment provi3 sions of section 307 of this Act or of sec4 tion 553 of title 5, United States Code. 

5 ‘‘(iii) EFFECT.—Nothing in clause (ii) 

6 precludes the application of the notice and 

7 comment provisions of section 307 of this 

8 Act or of section 553 of title 5, United 

9 States Code, as the Administrator deter10 mines to be practicable. 

11 ‘‘SEC. 717. CLIMATE ACTION TRUST FUND. 

12 ‘‘(a) ESTABLISHMENT AND ADMINISTRATION.— 

13 ‘‘(1) IN GENERAL.—There is established in the 

14 general fund of the Treasury a fund, to be known 

15 as the ‘Climate Action Trust Fund’, consisting of— 

16 ‘‘(A) such amounts as are deposited in the 

17 Fund under paragraph (2); and 

18 ‘‘(B) any interest earned on investment of 

19 amounts in the Fund under paragraph (4). 

20 ‘‘(2) TRANSFERS TO FUND.—The Secretary of 

21 the Treasury shall deposit in the Fund amounts 

22 equivalent to the proceeds received by the Adminis23 trator as a result of the conduct of auctions of allow24 ances under section 715. 

25 ‘‘(3) EXPENDITURES FROM FUND.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graphs (B) and (C), the Administrator shall use 

3 amounts in the Fund to carry out the programs 

4 described in this section. 

5 ‘‘(B) ADMINISTRATIVE EXPENSES.—Of 

6 amounts in the Fund, there shall be made avail7 able to pay the administrative expenses nec8 essary to carry out this title, as adjusted for 

9 changes beginning on January 1, 2007, in ac10 cordance with the Consumer Price Index for 

11 All-Urban Consumers published by the Depart12 ment of Labor— 

13 ‘‘(i) $90,000,000 for each fiscal year, 

14 to the Administrator; and 

15 ‘‘(ii) $30,000,000 for each fiscal year, 

16 to the Secretary of Agriculture. 

17 ‘‘(C) PANEL.—Of amounts in the Fund, 

18 there shall be made available to pay the ex19 penses of the Panel under section 712 

20 $7,000,000 for each fiscal year, as adjusted for 

21 changes beginning on January 1, 2007, in ac22 cordance with the Consumer Price Index for 

23 All-Urban Consumers published by the Depart24 ment of Labor. 

25 ‘‘(4) INVESTMENT OF AMOUNTS.— 


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1 ‘‘(A) IN GENERAL.—The Secretary of 

2 Treasury shall invest such portion of the Fund 

3 as is not, in the judgment of the Administrator, 

4 required to meet current withdrawals. 

5 ‘‘(B) INTEREST-BEARING OBLIGATIONS.— 

6 Investments may be made only in interest-bear7 ing obligations of the United States. 

8 ‘‘(C) ACQUISITION OF OBLIGATIONS.—For 

9 the purpose of investments under paragraph 

10 (1), obligations may be acquired— 

11 ‘‘(i) on original issue at the issue 

12 price; or 

13 ‘‘(ii) by purchase of outstanding obli14 gations at the market price. 

15 ‘‘(D) SALE OF OBLIGATIONS.—Any obliga16 tion acquired by the Fund may be sold by the 

17 Administrator at the market price. 

18 ‘‘(E) RETURN OF PROCEEDS TO FUND.— 

19 The interest on, and the proceeds from the sale 

20 or redemption of, any obligations held in the 

21 Fund shall be credited to, and form a part of, 

22 the Fund. 

23 ‘‘(5) REGULATIONS.—Not later than 2 years 

24 after the date of enactment of this title, the Admin25 istrator, in consultation with the Secretary of EnVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 ergy, shall promulgate such regulations as are nec2 essary to administer the Fund in accordance with 

3 this section. 

4 ‘‘(b) USES OF FUND.— 

5 ‘‘(1) NO FURTHER APPROPRIATION.—The Ad6 ministrator shall distribute amounts in the Fund for 

7 use in accordance with this section, without further 

8 appropriation. 

9 ‘‘(2) REGULATIONS.— 

10 ‘‘(A) IN GENERAL.—Not later than 3 years 

11 after the date of enactment of this title, the Ad12 ministrator, in consultation with the Secretary 

13 of Energy, shall promulgate regulations estab14 lishing an innovative low- and zero-emitting car15 bon technologies program, a clean coal tech16 nologies program, and an energy efficiency 

17 technology program that include— 

18 ‘‘(i) the funding mechanisms that will 

19 be available to support the development 

20 and deployment of the technologies ad21 dressed by each program, including low-in22 terest loans, loan guarantees, grants, and 

23 financial awards; and 


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1 ‘‘(ii) the criteria for the methods by 

2 which proposals will be funded to develop 

3 and deploy the technologies. 

4 ‘‘(B) REVISION OF CRITERIA.—Not later 

5 than January 1, 2014, and every 3 years there6 after, the Administrator shall review and, if ap7 propriate, revise, based on technological ad8 vances, the criteria referred to in subparagraph 

9 (A)(ii). 

10 ‘‘(C) ADAPTATION ASSISTANCE FOR WORK11 ERS AND COMMUNITIES.—Not later than 3 

12 years after the date of enactment of this title, 

13 the Administrator, in consultation with the Sec14 retary of Energy, shall promulgate regulations 

15 governing the distribution of funds pursuant to 

16 subsection (g). 

17 ‘‘(c) INNOVATIVE LOW- AND ZERO-EMITTING CAR18 BON ELECTRICITY GENERATION TECHNOLOGIES PRO19 GRAM.— 

20 ‘‘(1) IN GENERAL.—For each calendar year, of 

21 amounts remaining in the Fund after making the 

22 expenditures described in subparagraphs (B) and 

23 (C) of subsection (a)(3), the Administrator shall use 

24 not more than 35 percent to support the developVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 ment and deployment of low- and zero-emitting car2 bon electricity generation technologies. 

3 ‘‘(2) REGULATIONS.—The regulations estab4 lishing the innovative low- and zero-emitting carbon 

5 electricity generation technologies program referred 

6 to in subsection (b)(2)(A) shall establish the areas of 

7 technology development that will qualify for funding 

8 under that program, including technologies for the 

9 generation of electricity from renewable energy 

10 sources. 

11 ‘‘(d) CLEAN COAL TECHNOLOGIES PROGRAM.— 

12 ‘‘(1) IN GENERAL.—For each calendar year, of 

13 amounts remaining in the Fund after making the 

14 expenditures described in subparagraphs (B) and 

15 (C) of subsection (a)(3), the Administrator shall use 

16 not more than 20 percent to support the develop17 ment and deployment of clean coal technologies. 

18 ‘‘(2) REGULATIONS.—The regulations estab19 lishing the clean coal technologies program referred 

20 to in subsection (b)(2)(A) shall establish the criteria 

21 for use in defining qualifying clean coal technologies 

22 for electric power generation, while ensuring that 

23 those technologies represent an advance in available 

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1 ficiency and measures to capture and sequester car2 bon dioxide. 

3 ‘‘(e) ENERGY EFFICIENCY TECHNOLOGY PRO4 GRAM.— 

5 ‘‘(1) IN GENERAL.—For each calendar year, of 

6 amounts remaining in the Fund after making the 

7 expenditures described in subparagraphs (B) and 

8 (C) of subsection (a)(3), the Administrator shall use 

9 not more than 15 percent to support the develop10 ment and deployment of technologies for increasing 

11 the efficiency of energy end use in buildings and in12 dustry. 

13 ‘‘(2) REGULATIONS.—The regulations estab14 lishing the energy efficiency program referred to in 

15 subsection (b)(2)(A) shall establish the areas of 

16 technology development that will qualify for funding 

17 under the energy efficiency program. 

18 ‘‘(f) FEDERAL FUNDING OF RESEARCH INTO AND

19 DEVELOPMENT OF ENERGY AND EFFICIENCY TECH20 NOLOGIES.—For each calendar year, the Administrator 

21 shall use not more than 10 percent of the amounts in the 

22 Fund to support research into and development of energy 

23 and efficiency technologies. 

24 ‘‘(g) ADAPTATION ASSISTANCE FOR WORKERS AND

25 COMMUNITIES NEGATIVELY AFFECTED BY CLIMATE


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1 CHANGE AND GREENHOUSE GAS REGULATION.—For 

2 each calendar year, of amounts remaining in the Fund 

3 after making the expenditures described in subparagraphs 

4 (B) and (C) of subsection (a)(3), the Administrator shall 

5 use at least 10 percent to provide adaptation assistance 

6 for workers and communities— 

7 ‘‘(1) to address local or regional impacts of cli8 mate change and the impacts, if any, from green9 house gas regulation, including by providing assist10 ance to displaced workers and disproportionately af11 fected communities; and 

12 ‘‘(2) to mitigate impacts of climate change and 

13 the impacts, in any, from greenhouse gas regulation 

14 on low-income energy consumers. 

15 ‘‘(h) FISH AND WILDLIFE HABITAT.— 

16 ‘‘(1) IN GENERAL.—For each calendar year, of 

17 amounts remaining in the Fund after making the 

18 expenditures described in subparagraphs (B) and 

19 (C) of subsection (a)(3), the Administrator shall use 

20 at least 10 percent to mitigate the impacts of cli21 mate change on fish and wildlife habitat in accord22 ance with this subsection. 

23 ‘‘(2) WILDLIFE RESTORATION FUND.— 

24 ‘‘(A) IN GENERAL.—For each calendar 

25 year, the Administrator shall transfer not less 


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1 than 70 percent of the amounts made available 

2 under paragraph (1) to the Federal aid to wild3 life restoration fund established under section 

4 3(a)(1) of the Pittman-Robertson Wildlife Res5 toration Act (16 U.S.C. 669b(a)(1))— 

6 ‘‘(i) to carry out climate change im7 pact mitigation actions pursuant to com8 prehensive wildlife conservation strategies; 

9 and 

10 ‘‘(ii) to provide relevant information, 

11 training, monitoring, and other assistance 

12 to develop climate change impact mitiga13 tion and adaptation plans and integrate 

14 the plans into State comprehensive wildlife 

15 conservation strategies. 

16 ‘‘(B) AVAILABILITY.—Amounts transferred 

17 to the Federal aid to wildlife restoration fund 

18 under this paragraph shall— 

19 ‘‘(i) be available, without further ap20 propriation, for obligation and expenditure; 

21 and 

22 ‘‘(ii) remain available until expended. 

23 ‘‘(3) PROTECTION OF NATURAL RESOURCES.— 

24 ‘‘(A) IN GENERAL.—For each calendar 

25 year, the Administrator, in consultation with 


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1 the Secretary of Agriculture, the Secretary of 

2 Commerce, the Chief of Engineers, and State 

3 and national wildlife conservation organizations, 

4 shall transfer not more than 30 percent of the 

5 funds made available under paragraph (1) to 

6 the Secretary of the Interior for use in carrying 

7 out Federal and State programs and projects— 

8 ‘‘(i) to protect natural communities 

9 that are most vulnerable to climate change; 

10 ‘‘(ii) to restore and protect natural re11 sources that directly guard against dam12 ages from climate change events; and 

13 ‘‘(iii) to restore and protect ecosystem 

14 services that are most vulnerable to climate 

15 change. 

16 ‘‘(B) ADMINISTRATION.—Amounts trans17 ferred to the Secretary of the Interior under 

18 this paragraph shall— 

19 ‘‘(i) be available, without further ap20 propriation, for obligation and expenditure; 

21 ‘‘(ii) remain available until expended; 

22 ‘‘(iii)(I) be obligated not later than 2 

23 years after the date of transfer; or 

24 ‘‘(II) if the amounts are not obligated 

25 in accordance with subclause (I), be transVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 ferred to the Federal aid to wildlife res2 toration fund for use in accordance with 

3 paragraph (2); and 

4 ‘‘(iv) supplement, and not supplant, 

5 the amount of Federal, State, and local 

6 funds otherwise expended to carry out pro7 grams and projects described in subpara8 graph (A). 

9 ‘‘(C) PROGRAMS AND PROJECTS.—Pro10 grams and projects for which funds may be 

11 used under this paragraph include— 

12 ‘‘(i) Federal programs and projects— 

13 ‘‘(I) to identify Federal land and 

14 water at greatest risk of being dam15 aged or depleted by climate change; 

16 ‘‘(II) to monitor Federal land 

17 and water to allow for early detection 

18 of impacts; 

19 ‘‘(III) to develop adaptation 

20 strategies to minimize the damage; 

21 and 

22 ‘‘(IV) to restore and protect Fed23 eral land and water at the greatest 

24 risk of being damaged or depleted by 

25 climate change; 


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1 ‘‘(ii) Federal programs and projects to 

2 identify climate change risks and develop 

3 adaptation strategies for natural grassland, 

4 wetlands, migratory corridors, and other 

5 habitats vulnerable to climate change on 

6 private land enrolled in— 

7 ‘‘(I) the wetlands reserve pro8 gram established under subchapter C 

9 of chapter 1 of subtitle D of title XII 

10 of the Food Security Act of 1985 (16 

11 U.S.C. 3837 et seq.); 

12 ‘‘(II) the grassland reserve pro13 gram established under subchapter C 

14 of chapter 2 of subtitle D of title XII 

15 of that Act (16 U.S.C. 3838n et seq.); 

16 and 

17 ‘‘(III) the wildlife habitat incen18 tive program established under section 

19 1240N of that Act (16 U.S.C. 

20 3839bb–1); 

21 ‘‘(iii) programs and projects under the 

22 North American Wetlands Conservation 

23 Act (16 U.S.C. 4401 et seq.), the North 

24 American Bird Conservation Initiative, and 

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1 tion Act (16 U.S.C. 6101 et seq.) to pro2 tect habitat for migratory birds that are 

3 vulnerable to climate change impacts; 

4 ‘‘(iv) programs and projects— 

5 ‘‘(I) to identify coastal and ma6 rine resources (such as coastal wet7 lands, coral reefs, submerged aquatic 

8 vegetation, shellfish beds, and other 

9 coastal or marine ecosystems) at the 

10 greatest risk of being damaged by cli11 mate change; 

12 ‘‘(II) to monitor those resources 

13 to allow for early detection of impacts; 

14 ‘‘(III) to develop adaptation 

15 strategies; 

16 ‘‘(IV) to protect and restore 

17 those resources; and 

18 ‘‘(V) to integrate climate change 

19 adaptation requirements into State 

20 plans developed under the coastal 

21 zone management program estab22 lished under the Coastal Zone Man23 agement Act of 1972 (16 U.S.C. 1451 

24 et seq.), the national estuary program 

25 established under section 320 of the 


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1 Federal Water Pollution Control Act 

2 (33 U.S.C. 1330), the Coastal and 

3 Estuarine Land Conservation Pro4 gram established under the fourth 

5 proviso of the matter under the head6 ing ‘PROCUREMENT, ACQUISITION, 

7 AND CONSTRUCTION (INCLUDING

8 TRANSFERS OF FUNDS)’ of title II of 

9 the Departments of Commerce, Jus10 tice, and State, the Judiciary, and Re11 lated Agencies Appropriations Act, 

12 2002 (16 U.S.C. 1456d), or other 

13 comparable State programs; 

14 ‘‘(v) programs and projects to con15 serve habitat for endangered species and 

16 species of conservation concern that are 

17 vulnerable to the impact of climate change; 

18 ‘‘(vi) programs and projects under the 

19 Forest Legacy Program established under 

20 section 7 of the Cooperative Forestry As21 sistance Act (16 U.S.C. 2103c), to support 

22 State efforts to protect environmentally 

23 sensitive forest land through conservation 

24 easements to provide refuges for wildlife; 


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1 ‘‘(vii) other Federal or State pro2 grams and projects identified by the heads 

3 of agencies described in subparagraph (A) 

4 as high priorities— 

5 ‘‘(I) to protect natural commu6 nities that are most vulnerable to cli7 mate change; 

8 ‘‘(II) to restore and protect nat9 ural resources that directly guard 

10 against damages from climate change 

11 events; and 

12 ‘‘(III) to restore and protect eco13 system services that are most vulner14 able to climate change; 

15 ‘‘(viii) to address climate change in 

16 Federal land use planning and plan imple17 mentation and to integrate climate change 

18 adaptation strategies into— 

19 ‘‘(I) comprehensive conservation 

20 plans prepared under section 4(e) of 

21 the National Wildlife Refuge System 

22 Administration Act of 1966 (16 

23 U.S.C. 668dd(e)); 


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1 ‘‘(II) general management plans 

2 for units of the National Park Sys3 tem; 

4 ‘‘(III) resource management 

5 plans of the Bureau of Land Manage6 ment; and 

7 ‘‘(IV) land and resource manage8 ment plans under the Forest and 

9 Rangeland Renewable Resources 

10 Planning Act of 1974 (16 U.S.C. 

11 1600 et seq.) and the National Forest 

12 Management Act of 1976 (16 U.S.C. 

13 1600 et seq.); and 

14 ‘‘(ix) projects to promote sharing of 

15 information on climate change wildlife im16 pacts and mitigation strategies across 

17 agencies, including funding efforts to 

18 strengthen and restore habitat that im19 proves the ability of fish and wildlife to 

20 adapt successfully to climate change 

21 through the Wildlife Conservation and Res22 toration Account established by section 

23 3(a)(2) of the Pittman-Robertson Wildlife 

24 Restoration Act (16 U.S.C. 669b(a)(2)). 


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1 ‘‘SEC. 718. EARLY REDUCTION CREDITS. 

2 ‘‘(a) REGULATIONS.—Not later than 2 years after 

3 the date of enactment of this title, the Administrator shall 

4 promulgate regulations that provide for the issuance on 

5 a 1-time basis, certification, and use of early reduction 

6 credits for greenhouse gas reduction or sequestration 

7 projects carried out during any of calendar years 2000 

8 through 2010. 

9 ‘‘(b) ELIGIBLE PROJECTS.—A greenhouse gas reduc10 tion or sequestration project shall be eligible for early re11 duction credits if the project— 

12 ‘‘(1) is carried out in the United States; 

13 ‘‘(2) meets the standards contained in regula14 tions promulgated by the Administrator under sub15 section (a) that the Administrator determines to be 

16 applicable to the project, including consistency with 

17 the requirements of— 

18 ‘‘(A) paragraphs (2) through (5) of section 

19 736(a), with respect to greenhouse gas reduc20 tion projects; and 

21 ‘‘(B) section 732(a), with respect to se22 questration projects; and 

23 ‘‘(3) was reported— 

24 ‘‘(A) under section 1605(b) of the Energy 

25 Policy Act of 1992 (42 U.S.C. 13385(b)); or 


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1 ‘‘(B) to a State or regional greenhouse gas 

2 registry. 

3 ‘‘(c) LIMITATION.— 

4 ‘‘(1) IN GENERAL.—The aggregate quantity of 

5 early reduction credits available for greenhouse gas 

6 reduction or sequestration projects for the period of 

7 calendar years 2000 through 2010 shall not exceed 

8 10 percent of the tonnage limitation for calendar 

9 year 2011 for emissions of greenhouse gases from 

10 affected units under section 711. 

11 ‘‘(2) NO OTHER EXCEEDANCE OF TONNAGE

12 LIMITATION.—No provision of this subtitle (other 

13 than paragraph (1)) or any regulation promulgated 

14 under this subtitle authorizes the issuance or use of 

15 a quantity of credits greater than the annual ton16 nage limitation for emissions of greenhouse gases 

17 from affected units for a calendar year. 

18 ‘‘SEC. 719. RECOGNITION AND USE OF INTERNATIONAL 

19 CREDITS. 

20 ‘‘(a) USE OF INTERNATIONAL CREDITS.— 

21 ‘‘(1) IN GENERAL.—Except as provided in this 

22 section and section 720, the owner of each affected 

23 unit may satisfy the obligation of the affected unit 

24 under section 722 to surrender a quantity of credits 

25 associated with the greenhouse gas emissions of the 


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1 affected unit by submitting international credits rep2 resenting up to 25 percent of the total annual sub3 mission requirements of the affected unit. 

4 ‘‘(2) NEW AFFECTED UNITS.—The owner of a 

5 new affected unit may satisfy up to 50 percent of 

6 the obligation of the new affected unit under section 

7 722 to surrender a quantity of credits associated 

8 with the greenhouse gas emissions of the new af9 fected unit by submitting international credits. 

10 ‘‘(b) FACILITY CERTIFICATION.—The owner of an af11 fected unit who submits an international credit under this 

12 section shall certify that the international credit— 

13 ‘‘(1) has not been retired from use in the reg14 istry of the applicable foreign country; and 

15 ‘‘(2) satisfies the requirements of subsection (c) 

16 or (d). 

17 ‘‘(c) INTERNATIONAL CREDITS FROM COUNTRIES

18 WITH MANDATORY GREENHOUSE GAS LIMITS.—The 

19 owner of an affected unit may submit an international 

20 credit under this subsection if— 

21 ‘‘(1) the international credit is issued by a for22 eign country pursuant to a governmental program 

23 that imposes mandatory absolute tonnage limits on 

24 greenhouse gas emissions from the country or 1 or 


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1 more industry sectors pursuant to protocols adopted 

2 through the UNFCCC process; and 

3 ‘‘(2) the Administrator has promulgated regula4 tions, taking into consideration applicable UNFCCC 

5 protocols, approving for use under this subsection 

6 international credits from such categories of coun7 tries as the regulations establish, and the regulations 

8 permit the use of international credits from the for9 eign country that issued the credit. 

10 ‘‘(d) INTERNATIONAL CREDITS FROM COUNTRIES

11 WITHOUT MANDATORY GREENHOUSE GAS LIMITS.— 

12 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

13 the owner of an affected unit may submit an inter14 national credit under this subsection if— 

15 ‘‘(A) the international credit is issued by a 

16 foreign country that has not imposed manda17 tory absolute tonnage limits on greenhouse gas 

18 emissions from the country or 1 or more indus19 try sectors pursuant to protocols adopted 

20 through the UNFCCC process; 

21 ‘‘(B) the international credit is issued pur22 suant to protocols adopted through the 

23 UNFCCC process; and 

24 ‘‘(C) the Administrator has promulgated 

25 regulations, taking into consideration applicable 


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1 UNFCCC protocols, approving for use under 

2 this subsection international credits from such 

3 categories of countries as the regulations estab4 lish, and the regulations permit the use of 

5 international credits from the foreign country 

6 that issued the credit. 

7 ‘‘(2) DECISION ON CONTINUED APPROVAL.— 

8 Not later than December 31, 2015, the Adminis9 trator shall determine, pursuant to the regulations 

10 promulgated under paragraph (1)(C), whether to 

11 continue to approve for use under this subsection 

12 international credits from any country that— 

13 ‘‘(A) has not imposed mandatory absolute 

14 tonnage limits on greenhouse gas emissions 

15 from the country or 1 or more industry sectors 

16 pursuant to protocols adopted through the 

17 UNFCCC process; and 

18 ‘‘(B) generates more than 0.5 percent of 

19 global greenhouse gas emissions as of 2010 or 

20 as of the most recent year for which data are 

21 available. 

22 ‘‘SEC. 720. AVOIDING SIGNIFICANT ECONOMIC HARM. 

23 ‘‘(a) IN GENERAL.—Pursuant to the regulations pro24 mulgated under this section, the Administrator may per25 mit affected units— 


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1 ‘‘(1) to use allowances in a calendar year before 

2 the calendar year for which the allowances were allo3 cated; and 

4 ‘‘(2) to increase the use by the affected units of 

5 international credits up to 50 percent of the total 

6 annual submission requirements of the affected units 

7 under section 722. 

8 ‘‘(b) REGULATIONS.— 

9 ‘‘(1) IN GENERAL.—Not later than 3 years 

10 after the date of enactment of this title, the Admin11 istrator, in coordination with the Secretary of the 

12 Treasury, shall promulgate regulations requiring the 

13 continuous monitoring of the operation of the carbon 

14 market and the effect of that market on the econ15 omy of the United States. 

16 ‘‘(2) REQUIREMENTS.—The regulations shall— 

17 ‘‘(A) establish the criteria for determining 

18 whether allowance prices have reached and sus19 tained a level that is causing or will cause sig20 nificant harm to the economy of the United 

21 States; and 

22 ‘‘(B) take into consideration— 

23 ‘‘(i) the obligation of the United 

24 States under this subtitle to stabilize 


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1 greenhouse gas concentrations in the at2 mosphere at the safe climate level; and 

3 ‘‘(ii) the costs of the anticipated im4 pacts of climate change in the United 

5 States. 

6 ‘‘(3) PREVENTION OF ECONOMIC HARM.—If the 

7 Administrator determines that allowance prices have 

8 reached and sustained a level that is causing or will 

9 cause significant harm to the economy of the United 

10 States, the regulations shall establish— 

11 ‘‘(A) a program under which an affected 

12 unit may use allowances in a calendar year be13 fore the calendar year for which the allowances 

14 were allocated, including— 

15 ‘‘(i) a requirement that allowances 

16 borrowed from the allocation of a future 

17 year reduce the allocation of allowances to 

18 the affected unit for the future year on a 

19 1-to-1 basis; 

20 ‘‘(ii) a requirement for payment of in21 terest on borrowed allowances requiring 

22 the submission of additional credits upon 

23 repayment of the allowances equal to the 

24 product obtained by multiplying— 


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1 ‘‘(I) the number of years between 

2 the advance use of allowances by an 

3 affected unit under clause (i) and the 

4 submission of additional credits under 

5 this clause; and 

6 ‘‘(II) the sum obtained by add7 ing— 

8 ‘‘(aa) the Federal short-term 

9 rate, as defined pursuant to sec10 tion 1274(d)(1)(C)(i) of the In11 ternal Revenue Code of 1986; 

12 and 

13 ‘‘(bb) 2 percent; and 

14 ‘‘(iii) a limitation that in no event 

15 may an affected unit— 

16 ‘‘(I) satisfy more than 10 percent 

17 of the obligation of the affected unit 

18 under section 722 to surrender allow19 ances by submitting allowances in a 

20 calendar year before the calendar year 

21 for which the allowances were allo22 cated; and 

23 ‘‘(II) use allowances in a cal24 endar year that is more than 5 years 


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1 before the calendar year for which the 

2 allowances were allocated; and 

3 ‘‘(B) a program under which the owner of 

4 an affected unit may satisfy the obligation of 

5 the affected unit under section 722 to surrender 

6 allowances for the calendar year in which the 

7 determination is made by submitting inter8 national credits representing up to 50 percent 

9 of the total annual submission requirements of 

10 the affected unit. 

11 ‘‘SEC. 721. USE AND TRANSFER OF CREDITS. 

12 ‘‘(a) USE IN OTHER GREENHOUSE GAS ALLOWANCE

13 TRADING PROGRAMS.— 

14 ‘‘(1) IN GENERAL.—A credit obtained under 

15 this subtitle may be used in any other greenhouse 

16 gas allowance trading program, including a program 

17 of 1 or more States or subdivisions of States, that 

18 is approved by the Administrator and an authorized 

19 official for the other program for use of the allow20 ance. 

21 ‘‘(2) RECIPROCITY.—A credit obtained from an22 other greenhouse gas trading program, including a 

23 program of 1 or more States or subdivisions of 

24 States, that is approved by the Administrator and 


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1 an authorized official for the other program may be 

2 used in the trading program under this title. 

3 ‘‘(b) ALLOWANCE USE BEFORE APPLICABLE CAL4 ENDAR YEAR.—Except as provided in section 720, an al5 lowance auctioned or allocated under this subtitle may not 

6 be used before the calendar year for which the allowance 

7 was auctioned or allocated. 

8 ‘‘(c) TRANSFER.— 

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (2), the transfer of a credit shall not take ef11 fect until receipt and recording by the Administrator 

12 of a written certification of the transfer that is exe13 cuted by an authorized official of the person making 

14 the transfer. 

15 ‘‘(2) SPECIAL RULE FOR ALLOWANCES.—Not16 withstanding paragraph (1), the transfer of an al17 lowance auctioned or allocated under this subtitle 

18 may take effect before the calendar year for which 

19 the allowance was auctioned or allocated. 

20 ‘‘(d) BANKING OF CREDITS.—Any affected unit may 

21 use a credit obtained under this subtitle in the calendar 

22 year for which the credit was auctioned or allocated, or 

23 in a subsequent calendar year, to demonstrate compliance 

24 with section 722. 


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1 ‘‘SEC. 722. COMPLIANCE AND ENFORCEMENT. 

2 ‘‘(a) IN GENERAL.—For calendar year 2011 and 

3 each calendar year thereafter, the owner of each affected 

4 unit shall surrender to the Administrator a quantity of 

5 credits that is equal to the total tons of carbon dioxide 

6 or, with respect to other greenhouse gases, tons in carbon 

7 dioxide equivalent, associated with the combustion by the 

8 affected unit of greenhouse gas-emitting fuels during the 

9 calendar year. 

10 ‘‘(b) REGULATIONS.—Not later than 2 years after 

11 the date of enactment of this title, the Administrator shall 

12 promulgate regulations establishing the procedures for the 

13 surrender of credits. 

14 ‘‘(c) PENALTY.—The owner of an affected unit that 

15 emits greenhouse gases associated with the combustion by 

16 the affected unit of a greenhouse gas-emitting fuel in ex17 cess of the number of credits that the owner of the af18 fected unit holds for use of the affected unit for the cal19 endar year shall— 

20 ‘‘(1) submit to the Administrator 1.3 credits for 

21 each metric ton of excess greenhouse gas emissions 

22 of the affected unit; and 

23 ‘‘(2) pay an excess emissions penalty equal to 

24 the product obtained by multiplying— 

25 ‘‘(A) the number of tons of carbon dioxide, 

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1 house gases, emitted in excess of the total 

2 quantity of credits held by the affected unit; 

3 and 

4 ‘‘(B)(i) except as provided in clause (ii), 

5 $100, as adjusted for changes beginning on 

6 January 1, 2007, in accordance with the Con7 sumer Price Index for All-Urban Consumers 

8 published by the Department of Labor; or 

9 ‘‘(ii) if the average market price for a met10 ric ton of carbon dioxide equivalent during a 

11 calendar year exceeds $60, $200, as adjusted 

12 for changes beginning on January 1, 2007, in 

13 accordance with the Consumer Price Index for 

14 All-Urban Consumers published by the Depart15 ment of Labor. 

16 ‘‘Subtitle B—Offset Credits 

17 ‘‘SEC. 731. OUTREACH INITIATIVE ON REVENUE ENHANCE18 MENT FOR AGRICULTURAL PRODUCERS. 

19 ‘‘(a) PURPOSES.—The purposes of this subtitle are 

20 to achieve climate benefits, reduce overall costs to the 

21 United States economy, and enhance revenue for domestic 

22 agricultural producers, foresters, and other landowners 

23 by— 

24 ‘‘(1) establishing procedures by which domestic 

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1 owners can measure and report reductions in green2 house gas emissions and increases in sequestration; 

3 and 

4 ‘‘(2) publishing a handbook of guidance for do5 mestic agricultural producers, foresters, and other 

6 landowners to market emission reductions to compa7 nies. 

8 ‘‘(b) ESTABLISHMENT.—The Secretary of Agri9 culture, acting through the Chief of the Natural Resources 

10 Conservation Service, the Chief of the Forest Service, the 

11 Administrator of the Cooperative State Research, Edu12 cation, and Extension Service, and land-grant colleges and 

13 universities, in consultation with the Administrator and 

14 the heads of other appropriate departments and agencies, 

15 shall establish an outreach initiative to provide informa16 tion to agricultural producers, agricultural organizations, 

17 foresters, and other landowners about opportunities under 

18 this subtitle to earn new revenue. 

19 ‘‘(c) COMPONENTS.—The initiative under this sec20 tion— 

21 ‘‘(1) shall be designed to ensure that, to the 

22 maximum extent practicable, agricultural organiza23 tions and individual agricultural producers, for24 esters, and other landowners receive detailed prac25 tical information about— 


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1 ‘‘(A) opportunities to earn new revenue 

2 under this subtitle; 

3 ‘‘(B) measurement protocols, monitoring, 

4 verifying, inventorying, registering, insuring, 

5 and marketing offsets under this title; 

6 ‘‘(C) emerging domestic and international 

7 markets for energy crops, allowances, and off8 sets; and 

9 ‘‘(D) local, regional, and national data10 bases and aggregation networks to facilitate 

11 achievement, measurement, registration, and 

12 sales of offsets; 

13 ‘‘(2) shall provide— 

14 ‘‘(A) outreach materials, including the 

15 handbook published under subsection (d)(1), to 

16 interested parties; 

17 ‘‘(B) workshops; and 

18 ‘‘(C) technical assistance; and 

19 ‘‘(3) may include the creation and development 

20 of regional marketing centers or coordination with 

21 existing centers (including centers within the Nat22 ural Resources Conservation Service or the Coopera23 tive State Research, Education, and Extension Serv24 ice or at land-grant colleges and universities). 

25 ‘‘(d) HANDBOOK.— 


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1 ‘‘(1) IN GENERAL.—Not later than 2 years 

2 after the date of enactment of this title, the Sec3 retary of Agriculture, in consultation with the Ad4 ministrator and after public input, shall publish a 

5 handbook for use by agricultural producers, agricul6 tural cooperatives, foresters, other landowners, offset 

7 buyers, and other stakeholders that provides easy-to8 use guidance on achieving, reporting, registering, 

9 and marketing offsets. 

10 ‘‘(2) DISTRIBUTION.—The Secretary of Agri11 culture shall ensure, to the maximum extent prac12 ticable, that the handbook is distributed widely 

13 through land-grant colleges and universities and 

14 other appropriate institutions. 

15 ‘‘SEC. 732. OFFSET MEASUREMENT FOR AGRICULTURAL, 

16 FORESTRY, WETLANDS, AND OTHER LAND 

17 USE-RELATED SEQUESTRATION PROJECTS. 

18 ‘‘(a) IN GENERAL.—Not later than 2 years after the 

19 date of enactment of this title, the Secretary of Agri20 culture, in consultation with the Administrator, shall pro21 mulgate regulations establishing the requirements regard22 ing the issuance, certification, and use of offset credits for 

23 greenhouse gas reductions from agricultural, forestry, wet24 lands, and other land use-related sequestration projects, 

25 including requirements— 


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1 ‘‘(1) for a region-specific discount factor for 

2 business-as-usual practices for specific types of se3 questration projects, in accordance with subsection 

4 (c); 

5 ‘‘(2) that ensure that the reductions are real, 

6 additional, verifiable, and enforceable; 

7 ‘‘(3) that address leakage; 

8 ‘‘(4) that the reductions are not otherwise re9 quired by any law (including a regulation) or other 

10 legally binding requirement; 

11 ‘‘(5) for the quantification, monitoring, report12 ing, and verification of the reductions; 

13 ‘‘(6) that ensure that offset credits are limited 

14 in duration to the period of sequestration of green15 house gases, and rectify any loss of sequestration 

16 other than a loss caused by an error in calculation 

17 identified under this subtitle, by requiring the sub18 mission of additional credits of an equivalent quan19 tity to the lost sequestration; and 

20 ‘‘(7) that quantify sequestration flow. 

21 ‘‘(b) ELIGIBILITY TO CREATE OFFSET CREDITS.— 

22 ‘‘(1) IN GENERAL.—A sequestration project 

23 that commences operation on or after January 1, 

24 2011, is eligible to create offset credits under this 


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1 subtitle if the sequestration project satisfies the 

2 other applicable requirements of this subtitle. 

3 ‘‘(2) EXCEPTION FOR AGRICULTURAL

4 PROJECTS.—Notwithstanding paragraph (1), seques5 tration flow from an agricultural project that occurs 

6 on or after January 1, 2011, may provide the basis 

7 for offset credits under this subtitle regardless of the 

8 date on which the agricultural sequestration project 

9 to which the sequestration flow is attributable com10 menced, if the project satisfies the other applicable 

11 requirements of this subtitle. 

12 ‘‘(c) DISCOUNTING FOR BUSINESS-AS-USUAL PRAC13 TICES.— 

14 ‘‘(1) IN GENERAL.—In order to streamline the 

15 availability of offset credits for agricultural and 

16 other land use-related sequestration projects, the 

17 regulations promulgated under subsection (a) shall 

18 provide for the calculation and reporting of region19 specific discount factors by the Secretary of Agri20 culture— 

21 ‘‘(A) to be used by developers of agricul22 tural projects and other land use-related se23 questration projects; and 

24 ‘‘(B) to account for business-as-usual prac25 tices for specific types of sequestration projects. 


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1 ‘‘(2) CALCULATION.—Unless otherwise provided 

2 in this subtitle, the region-specific discount factor 

3 for business-as-usual practices for sequestration 

4 projects shall be calculated by dividing— 

5 ‘‘(A) the difference between— 

6 ‘‘(i) the quantity of greenhouse gases 

7 sequestered in the region as a result of the 

8 offset practice under this subtitle; and 

9 ‘‘(ii) the quantity of greenhouse gases 

10 sequestered in the region as a result of the 

11 projected business-as-usual implementation 

12 of the applicable offset practice; by 

13 ‘‘(B) the quantity of greenhouse gases se14 questered in the region as a result of the offset 

15 practice under this subtitle. 

16 ‘‘(3) REQUIREMENTS.— 

17 ‘‘(A) IN GENERAL.—The regulations pro18 mulgated under this section shall, to the max19 imum extent practicable— 

20 ‘‘(i) define geographic regions with 

21 reference to land that has similar agricul22 tural characteristics; and 

23 ‘‘(ii) subject to subparagraph (B), de24 fine baseline historical reference periods 

25 for each category of sequestration practice, 


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1 using the most recent period of sufficient 

2 length for which there are reasonably com3 prehensive data available. 

4 ‘‘(B) EXCEPTION.—If the Secretary of Ag5 riculture determines that entities have increased 

6 implementation of the relevant offset practice 

7 during the most recent period in anticipation of 

8 legislation granting credit for the offsets, the 

9 regulations described in subparagraph (A)(ii) 

10 may define baseline historical reference periods 

11 for each category of sequestration practice 

12 using an earlier period. 

13 ‘‘(d) QUANTIFYING SEQUESTRATION FLOW.—The 

14 regulations that quantify sequestration flow shall in15 clude— 

16 ‘‘(1) a default rate of sequestration flow, re17 gionally specific to the maximum extent practicable, 

18 for each offset practice or combination of offset 

19 practices, that is estimated conservatively to allow 

20 for site-specific variations and data uncertainties; 

21 ‘‘(2) a downward adjustment factor for any off22 set practice or combination of practices for which, in 

23 the judgment of the Secretary of Agriculture, there 

24 are substantial uncertainties in the sequestration 

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1 ably sufficient data to calculate a default rate of 

2 flow; and 

3 ‘‘(3) offset practice- or project-specific measure4 ment, monitoring, and verification requirements 

5 for— 

6 ‘‘(A) offset practices or projects for which 

7 there are insufficiently reliable data to calculate 

8 a default rate of sequestration flow; or 

9 ‘‘(B) projects for which the project pro10 ponent chooses to use project-specific require11 ments. 

12 ‘‘(e) USE OF NATIVE PLANT SPECIES IN OFFSET

13 PROJECTS.— 

14 ‘‘(1) REGULATIONS.—Not later than 18 months 

15 after the date of enactment of this title, the Admin16 istrator, in consultation with the Secretary of Agri17 culture, shall promulgate regulations for selection, 

18 use, and storage of native and nonnative plant mate19 rials in the offset projects described in paragraph 

20 (2)— 

21 ‘‘(A) to ensure native plant materials are 

22 given primary consideration, in accordance with 

23 applicable Department of Agriculture guidance 

24 for use of native plant materials; 


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1 ‘‘(B) to prohibit the use of Federal- or 

2 State-designated noxious weeds; and 

3 ‘‘(C) to prohibit the use of a species listed 

4 by a regional or State invasive plant council 

5 within the applicable region or State. 

6 ‘‘(2) APPLICABILITY.—The regulations under 

7 paragraph (1) shall apply to qualifying offset 

8 projects described in sections 733(b)(2), 734(a)(2), 

9 and 734(b)(1). 

10 ‘‘SEC. 733. CATEGORIES OF AGRICULTURAL OFFSET PRAC11 TICES. 

12 ‘‘(a) REGULATIONS.—Not later than 2 years after 

13 the date of enactment of this title, the Secretary of Agri14 culture, in consultation with the Administrator, shall pro15 mulgate regulations establishing the categories of offset 

16 practices that— 

17 ‘‘(1) reduce greenhouse gases as a result of ag18 ricultural sequestration projects; and 

19 ‘‘(2) are eligible to receive offset credits under 

20 this subtitle. 

21 ‘‘(b) OFFSET PRACTICES.—Offset practices described 

22 in subsection (a) shall include— 

23 ‘‘(1) agricultural sequestration practices, includ24 ing— 

25 ‘‘(A) no-till agriculture; 


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1 ‘‘(B) conservation tillage (ridge till or min2 imum till); 

3 ‘‘(C) winter cover cropping; 

4 ‘‘(D) switching from a cycle of— 

5 ‘‘(i) planting wheat or other crops and 

6 then fallowing land; to 

7 ‘‘(ii) continuous cropping; 

8 ‘‘(E) any other offset practices identified 

9 by the Administrator, in consultation with the 

10 Secretary of Agriculture; and 

11 ‘‘(F) combinations of any of the offset 

12 practices described in subparagraphs (A) 

13 through (E); and 

14 ‘‘(2) conversion of cropland to rangeland or 

15 grassland. 

16 ‘‘SEC. 734. OFFSET CREDITS FROM FOREST MANAGEMENT, 

17 GRAZING MANAGEMENT, AND WETLANDS 

18 MANAGEMENT. 

19 ‘‘(a) FOREST MANAGEMENT OFFSETS.— 

20 ‘‘(1) IN GENERAL.—Not later than 3 years 

21 after the date of enactment of this title, the Sec22 retary of Agriculture, in consultation with the Ad23 ministrator, shall promulgate regulations providing 

24 for the issuance of offset credits for forest manage25 ment projects that provide durable, long-term reducVerDate Aug 31 2005 18:32 Jan 18, 2007 Jkt 059200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 tions in greenhouse gases as a result of sequestra2 tion. 

3 ‘‘(2) FOREST MANAGEMENT OFFSETS.—Forest 

4 management offset projects under this section may 

5 include activities that reduce greenhouse gases as a 

6 result of forest management sequestration projects 

7 (including afforestation), other than avoided forest 

8 land conversion as described in section 735. 

9 ‘‘(3) PROHIBITIONS.— 

10 ‘‘(A) IN GENERAL.—In accordance with 

11 section 732(e), no afforestation project may in12 volve the planting of invasive species or noxious 

13 weeds. 

14 ‘‘(B) EXISTING NATIVE GRASSLAND AND

15 ECOSYSTEMS.—No afforestation project may in16 volve planting trees on existing native grassland 

17 or other existing native non-forested ecosystems 

18 that the Secretary of Agriculture determines 

19 should be protected in their existing native con20 dition. 

21 ‘‘(b) WETLANDS MANAGEMENT OFFSETS.— 

22 ‘‘(1) IN GENERAL.—Not later than 3 years 

23 after the date of enactment of this title, the Admin24 istrator, in consultation with the Chief of Engineers, 

25 shall promulgate regulations providing for the 


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1 issuance of offset credits for wetlands management 

2 projects that provide durable, long-term reductions 

3 in greenhouse gases as a result of sequestration. 

4 ‘‘(2) PROHIBITIONS.— 

5 ‘‘(A) IN GENERAL.—In accordance with 

6 section 732(e), no wetlands restoration project 

7 may involve the planting of invasive species or 

8 noxious weeds. 

9 ‘‘(B) NO NEW WETLANDS.—No wetlands 

10 offset project may be carried out in an area in 

11 which underlying local hydrologic processes will 

12 not support a wetland. 

13 ‘‘(c) GRAZING MANAGEMENT OFFSETS.— 

14 ‘‘(1) IN GENERAL.—Not later than 3 years 

15 after the date of enactment of this title, the Sec16 retary of Agriculture, in consultation with the Ad17 ministrator, shall promulgate regulations providing 

18 for the issuance of offset credits for grazing manage19 ment projects that provide durable, long-term reduc20 tions in greenhouse gases as a result of sequestra21 tion. 

22 ‘‘(2) GRAZING MANAGEMENT OFFSETS.—Graz23 ing management offset projects under this section 

24 may include activities that reduce greenhouse gases 

25 as a result of grazing management sequestration 


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1 projects other than conversion of cropland to grass2 land or rangeland under section 733. 

3 ‘‘(d) USE OF OFFSETS.— 

4 ‘‘(1) IN GENERAL.—For each calendar year, an 

5 affected unit may satisfy not more than 5 percent of 

6 the total allowance submission requirements of the 

7 affected unit under section 722 by using forest man8 agement offset credits under this section. 

9 ‘‘(2) EXCEPTIONS.—The limitation in para10 graph (1) does not apply to grazing management, 

11 afforestation, or wetland offset projects. 

12 ‘‘SEC. 735. OFFSET CREDITS FROM THE AVOIDED CONVER13 SION OF FORESTED LAND OR WETLAND. 

14 ‘‘(a) IN GENERAL.—Offset credits for avoided con15 version of forested land or wetland shall be awarded to 

16 any State that reduces the conversion below expected lev17 els for all or a significant portion of the State. 

18 ‘‘(b) REGULATIONS.—Not later than 3 years after 

19 the date of enactment of this title, the Administrator, in 

20 conjunction with the Secretary of Agriculture, shall pro21 mulgate regulations that address the eligibility of offset 

22 practices that avoid the conversion of forested land or wet23 land to nonforested land uses or drained or converted wet24 land to receive offset credits under this subtitle, including 

25 requirements that address— 


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1 ‘‘(1) the methodology for measuring the avoided 

2 conversion of forest land or wetland, including— 

3 ‘‘(A) measurement of presently on-going 

4 rates of forest land conversion or wetland con5 version; 

6 ‘‘(B) calculation of business-as-usual rates 

7 of forest land conversion or wetland conversion 

8 by reference to the historical rate of conversion 

9 of forested land or wetland; and 

10 ‘‘(C) comparison of the rates in subpara11 graph (A) and subparagraph (B); and 

12 ‘‘(2) leakage, including— 

13 ‘‘(A) adjustments for leakage using stand14 ardized regional leakage factors for 

15 afforestation and wetland restoration; and 

16 ‘‘(B) the magnitude of the forested region 

17 or wetlands region in a State in which the rate 

18 of conversion of forest land or wetland must be 

19 reduced to ensure that leakage of forest land or 

20 wetlands conversion is minimized. 

21 ‘‘(c) PRECONDITION.—For an offset to be creditable 

22 under this section, the State must certify that the State 

23 has reduced its rate of conversion of forest land or wetland 

24 over a period of 5 or more consecutive years for the entire 


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1 State or a significant forested or wetland region in the 

2 State. 

3 ‘‘(d) AWARD BY STATES OF OFFSET CREDITS.— 

4 States that participate in the program under this section 

5 shall establish transparent and equitable rules by which 

6 offset credits will be awarded to owners of forested land 

7 or wetland. 

8 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

9 is authorized to be appropriated to the Administrator, in 

10 consultation with the Secretary of Agriculture, for use in 

11 awarding grants to States to carry out this section 

12 $5,000,000 for each fiscal year. 

13 ‘‘SEC. 736. OFFSET CREDITS FROM GREENHOUSE GAS EMIS14 SIONS REDUCTION PROJECTS. 

15 ‘‘(a) IN GENERAL.—Not later than 2 years after the 

16 date of enactment of this title, the Administrator shall 

17 promulgate regulations establishing the requirements re18 garding the issuance, certification, and use of offset cred19 its for greenhouse gas emissions reduction offset projects, 

20 including requirements— 

21 ‘‘(1) for performance standards for specific 

22 types of offset projects, which represent significant 

23 improvements compared to recent practices in the 

24 geographic area, to be reviewed, and updated if the 


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1 Administrator determines updating is appropriate, 

2 every 5 years; 

3 ‘‘(2) that ensure that the reductions are real, 

4 additional, verifiable, enforceable, and permanent; 

5 ‘‘(3) that address leakage; 

6 ‘‘(4) that the reductions are not otherwise re7 quired by any law (including a regulation) or other 

8 legally binding requirement; 

9 ‘‘(5) for the quantification, monitoring, report10 ing, and verification of the reductions; and 

11 ‘‘(6) that specify the duration of offset credits 

12 for greenhouse gas emissions reduction projects 

13 under this section. 

14 ‘‘(b) ELIGIBILITY TO CREATE OFFSET CREDITS.— 

15 Greenhouse gas emissions reduction offset projects that 

16 commence operation on or after January 1, 2007, are eli17 gible to create offset credits under this subtitle if the 

18 projects satisfy the other applicable requirements of this 

19 subtitle. 

20 ‘‘(c) APPROVED CATEGORIES OF GREENHOUSE GAS

21 EMISSIONS REDUCTION OFFSET PROJECTS.—Greenhouse 

22 gas emission reductions from the following types of oper23 ations shall be eligible to create offsets for use under this 

24 section: 

25 ‘‘(1) Landfill operations. 


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1 ‘‘(2) Agricultural manure management projects. 

2 ‘‘(3) Wastewater treatment facilities. 

3 ‘‘(4) Coal mining operations. 

4 ‘‘(5) Natural gas transmission and distribution 

5 systems. 

6 ‘‘(6) Electrical transmission and distribution 

7 systems. 

8 ‘‘(7) Elimination or reduction in use of chemi9 cals that substitute for ozone-depleting substances. 

10 ‘‘(8) Cement manufacturing. 

11 ‘‘(9) Lime manufacturing. 

12 ‘‘(10) Iron and steel production. 

13 ‘‘(11) Aluminum production. 

14 ‘‘(12) Adipic acid production. 

15 ‘‘(13) Nitric acid production. 

16 ‘‘(14) Semiconductor manufacturing. 

17 ‘‘(15) Magnesium production and processing. 

18 ‘‘(16) Fossil fuel combustion at commercial and 

19 residential buildings. 

20 ‘‘(d) CREATION OF ADDITIONAL CATEGORIES OF

21 GREENHOUSE GAS EMISSIONS REDUCTION OFFSET

22 PROJECTS.—The Administrator may, by regulation, cre23 ate additional categories of greenhouse gas emissions re24 duction offset projects for types of projects for which the 


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1 Administrator determines that compliance with the regula2 tions promulgated under subsection (a) is feasible. 

3 ‘‘(e) PROHIBITION ON USE.—Notwithstanding the 

4 eligibility of greenhouse gas emission reduction projects to 

5 create offset credits in accordance with subsection (c) or 

6 (d), greenhouse gas emissions reduction offset projects 

7 shall not be eligible to create offset credits for use under 

8 this section beginning on the date on which the reductions 

9 are required by law (including regulations) or other legally 

10 binding requirement. 

11 ‘‘SEC. 737. BORROWING AT PROGRAM START-UP BASED ON 

12 CONTRACTS TO PURCHASE OFFSET CREDITS. 

13 ‘‘(a) IN GENERAL.—During calendar years 2011, 

14 2012, and 2013, an affected unit may satisfy not more 

15 than 5 percent of the allowance submission requirements 

16 of section 722 by submitting to the Administrator contrac17 tual commitments to purchase offset credits that will im18 plement an equivalent quantity of emission reductions or 

19 sequestration not later than December 31, 2015. 

20 ‘‘(b) APPROVAL OF QUALIFYING OFFSET

21 PROJECTS.—Offset projects that may be appropriately 

22 carried out under this section shall be approved by the 

23 Administrator in accordance with this subtitle. 

24 ‘‘(c) REPAYMENT BY 2015.— 


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1 ‘‘(1) IN GENERAL.—If an affected unit uses 

2 subsection (a) to comply with section 722, not later 

3 than the deadline in that section for allowance sub4 missions for calendar year 2015, the affected unit 

5 shall submit additional credits of a quantity equiva6 lent to the sum obtained by adding— 

7 ‘‘(A) the value of credits submitted to com8 ply with credit submission requirements de9 scribed in subsection (a); and 

10 ‘‘(B) interest calculated in accordance with 

11 paragraph (2). 

12 ‘‘(2) INTEREST.—Interest referred to in para13 graph (1)(B) shall be equal to the product obtained 

14 by multiplying— 

15 ‘‘(A) the number of years between— 

16 ‘‘(i) the use by an affected unit of the 

17 method of compliance described in sub18 section (a); and 

19 ‘‘(ii) the submission by the affected 

20 unit of additional credits under this sub21 section; and 

22 ‘‘(B) the sum obtained by adding— 

23 ‘‘(i) the Federal short-term rate, as 

24 defined pursuant to section 


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1 1274(d)(1)(C)(i) of the Internal Revenue 

2 Code of 1986; and 

3 ‘‘(ii) 2 percent. 

4 ‘‘SEC. 738. REVIEW AND CORRECTION OF ACCOUNTING FOR 

5 OFFSET CREDITS. 

6 ‘‘(a) DUTY TO MONITOR.—The Secretary of Agri7 culture and the Administrator shall monitor regularly 

8 whether offset credits under the respective jurisdiction of 

9 each agency head under this subtitle are being awarded 

10 only for real and additional sequestration of greenhouse 

11 gases and reductions in greenhouse gas emissions, includ12 ing— 

13 ‘‘(1) the accuracy of default calculations of se14 questration flow and greenhouse gas emission reduc15 tions achieved by the use of offset practices; 

16 ‘‘(2) the calculation of region-specific discount 

17 factors; and 

18 ‘‘(3) the accuracy of leakage calculations. 

19 ‘‘(b) PERIODIC REVIEW.—Not later than December 

20 31, 2013, and every 5 years thereafter, the Secretary of 

21 Agriculture and the Administrator shall review the 

22 issuance of offset credits under the respective jurisdiction 

23 of each agency head under this subtitle to determine— 

24 ‘‘(1) whether offset credits are being awarded 

25 only for real and additional sequestration of greenVerDate Aug 31 2005 21:42 Jan 21, 2007 Jkt 059200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\S317.IS S317

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1 house gases or reductions in greenhouse gas emis2 sions, as described in subsection (a); 

3 ‘‘(2) the amount of excessive award of any off4 set credits; 

5 ‘‘(3) the volume of offset credits that have been 

6 or are expected to be approved; 

7 ‘‘(4) the impact of the offset credits on market 

8 prices; and 

9 ‘‘(5) the impact of the offset credits on the tra10 jectory of emissions from affected units. 

11 ‘‘(c) DUTY TO CORRECT.—If the Secretary of Agri12 culture or the Administrator determines that offset credits 

13 under the respective jurisdictions of the agency head have 

14 been awarded under this subtitle in excess of real and ad15 ditional sequestration of greenhouse gases or reductions 

16 in emissions of greenhouse gases, the Secretary of Agri17 culture or the Administrator shall— 

18 ‘‘(1) promptly correct on a prospective basis the 

19 sources of the errors, including correcting leakage 

20 factors, region-specific discount factors, default rates 

21 of sequestration flow, and other relevant information 

22 for the offset practices involved; and 

23 ‘‘(2) quantify and publicly disclose the quantity 

24 of offset credits that have been awarded in excess of 


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1 real and additional sequestration or emissions reduc2 tions. 

3 ‘‘Subtitle C—National Registry for 

4 Credits 

5 ‘‘SEC. 741. ESTABLISHMENT AND OPERATION OF NATIONAL 

6 REGISTRY. 

7 ‘‘(a) IN GENERAL.—Except as provided in subsection 

8 (b), not later than July 1 of the year immediately prior 

9 to the first calendar year in which an annual tonnage limi10 tation on the emission of greenhouse gases applies under 

11 section 711(b), the Administrator shall promulgate regula12 tions to establish, operate, and maintain a national reg13 istry through which the Administrator shall— 

14 ‘‘(1) record allocations of allowances, the 

15 issuance of offset credits or early reduction credits, 

16 and the recognition of international credits; 

17 ‘‘(2) track transfers of credits; 

18 ‘‘(3) retire all credits used for compliance; 

19 ‘‘(4) subject to subsection (b), maintain trans20 parent availability of registry information to the 

21 public, including the quarterly reports submitted 

22 under section 742(a); 

23 ‘‘(5) prepare an annual assessment of the emis24 sion data in the quarterly reports submitted under 

25 section 742(a); and 


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1 ‘‘(6) take such action as is necessary to main2 tain the integrity of the registry, including adjust3 ments to correct for— 

4 ‘‘(A) errors or omissions in the reporting 

5 of data; and 

6 ‘‘(B) the prevention of counterfeiting, dou7 ble-counting, multiple registrations, multiple 

8 sales, and multiple retirements of credits. 

9 ‘‘(b) EXCEPTION TO PUBLIC AVAILABILITY OF

10 DATA.— 

11 ‘‘(1) IN GENERAL.—Subsection (a)(4) shall not 

12 apply in any case in which the Administrator, in 

13 consultation with the Secretary of Defense, deter14 mines that publishing or otherwise making available 

15 information in accordance with that paragraph poses 

16 a risk to national security. 

17 ‘‘(2) STATEMENT OF REASONS.—In a case de18 scribed in paragraph (1), the Administrator shall 

19 publish a description of the determination and the 

20 reasons for the determination. 

21 ‘‘SEC. 742. MONITORING AND REPORTING. 

22 ‘‘(a) REQUIREMENTS.—Each owner or operator of an 

23 affected unit, or to the extent applicable, the greenhouse 

24 gas authorized account representative for the affected 

25 unit, shall— 


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1 ‘‘(1) comply with the monitoring, record2 keeping, and reporting requirements of part 75 of 

3 title 40, Code of Federal Regulations (or successor 

4 regulations); and 

5 ‘‘(2) submit to the Administrator electronic 

6 quarterly reports that describe the greenhouse gas 

7 mass emission data, fuel input data, and electricity 

8 output data for the affected unit. 

9 ‘‘(b) BIOMASS COFIRING.—Not later than 18 months 

10 after the date of enactment of this title, the Administrator 

11 shall promulgate regulations that provide monitoring, rec12 ordkeeping, and reporting requirements for biomass co13 firing at affected units.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) FEDERAL ENFORCEMENT.—Section 113 of 

16 the Clean Air Act (42 U.S.C. 7413) is amended— 

17 (A) in subsection (a)(3), by striking ‘‘or 

18 title VI,’’ and inserting ‘‘title VI, or title VII,’’; 

19 (B) in subsection (b)— 

20 (i) by redesignating paragraphs (1) 

21 through (3) as subparagraphs (A) through 

22 (C), respectively, and indenting the sub23 paragraphs appropriately; 

24 (ii) by striking ‘‘The Administrator 

25 shall’’ and inserting the following: 


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1 ‘‘(1) IN GENERAL.—The Administrator shall’’; 

2 (iii) in paragraph (1) (as designated 

3 by clause (ii)), in the matter preceding 

4 subparagraph (A) (as redesignated by 

5 clause (i)), by striking ‘‘or a major sta6 tionary source’’ and inserting ‘‘a major 

7 stationary source, or an affected unit 

8 under title VII’’; and 

9 (iv) in subparagraph (B) (as redesig10 nated by clause (i)), by striking ‘‘or title 

11 VI’’ and inserting ‘‘title VI, or title VII’’; 

12 (v) in the matter following subpara13 graph (C) of paragraph (1) (as designated 

14 by clauses (i) and (ii))— 

15 (I) by striking ‘‘Any action’’ and 

16 inserting the following: 

17 ‘‘(2) JUDICIAL ENFORCEMENT.— 

18 ‘‘(A) IN GENERAL.—Any action’’; 

19 (II) by striking ‘‘Notice’’ and in20 serting the following: 

21 ‘‘(B) NOTICE.—Notice’’; and 

22 (III) by striking ‘‘In the case’’ 

23 and inserting the following: 

24 ‘‘(C) ACTIONS BROUGHT BY ADMINIS25 TRATOR.—In the case’’; 


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1 (C) in subsection (c)— 

2 (i) in the first sentence of paragraph 

3 (1), by striking ‘‘or title VI (relating to 

4 stratospheric ozone control),’’ and insert5 ing ‘‘title VI (relating to stratospheric 

6 ozone control), or title VII (relating to 

7 global warming pollution emission reduc8 tions),’’; and 

9 (ii) in the first sentence of paragraph 

10 (3), by striking ‘‘or VI’’ and inserting ‘‘VI, 

11 or VII’’; 

12 (D) in subsection (d)(1)(B), by striking 

13 ‘‘or VI’’ and inserting ‘‘VI, or VII’’; and 

14 (E) in subsection (f), in the first sentence, 

15 by striking ‘‘or VI’’ and inserting ‘‘VI, or VII’’. 

16 (2) INSPECTIONS, MONITORING, AND ENTRY.— 

17 Section 114(a) of the Clean Air Act (42 U.S.C. 

18 7414(a)) is amended by striking ‘‘section 112,’’ and 

19 all that follows through ‘‘(ii)’’ and inserting the fol20 lowing: ‘‘section 112, any regulation of solid waste 

21 combustion under section 129, or any regulation of 

22 greenhouse gas emissions under title VII, (ii)’’. 

23 (3) ADMINISTRATIVE PROCEEDINGS AND JUDI24 CIAL REVIEW.—Section 307 of the Clean Air Act 

25 (42 U.S.C. 7607) is amended— 


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1 (A) in subsection (a), by striking ‘‘, or sec2 tion 306’’ and inserting ‘‘section 306, or title 

3 VII’’; 

4 (B) in subsection (b)(1)— 

5 (i) by striking ‘‘section 111,,’’ and in6 serting ‘‘section 111,’’; 

7 (ii) by striking ‘‘section 120,’’ each 

8 place it appears and inserting ‘‘section 

9 120, any action under title VII,’’; and 

10 (iii) by striking ‘‘112,,’’ and inserting 

11 ‘‘112,’’; and 

12 (C) in subsection (d)(1)— 

13 (i) by striking subparagraph (S); 

14 (ii) by redesignating the second sub15 paragraph (N) and subparagraphs (O) 

16 through (R) as subparagraphs (O), (P), 

17 (Q), (R), and (S), respectively; 

18 (iii) by redesignating subparagraphs 

19 (T) and (U) as subparagraphs (U) and 

20 (V), respectively; and 

21 (iv) by inserting after subparagraph 

22 (S) (as redesignated by clause (ii)) the fol23 lowing: 

24 ‘‘(T) the promulgation or revision of any 

25 regulation under title VII,’’. 


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1 (4) UNAVAILABILITY OF EMISSIONS DATA.— 

2 Section 412(d) of the Clean Air Act (42 U.S.C. 

3 7651k(d)) is amended in the first sentence— 

4 (A) by inserting ‘‘or title VII’’ after 

5 ‘‘under subsection (a)’’; and 

6 (B) by inserting ‘‘or title VII’’ after ‘‘this 

7 title’’. 

8 TITLE II—CLIMATE CHANGE 

9 RESEARCH INITIATIVES 

10 SEC. 201. RESEARCH GRANTS THROUGH NATIONAL 

11 SCIENCE FOUNDATION. 

12 Section 105 of the Global Change Research Act of 

13 1990 (15 U.S.C. 2935) is amended— 

14 (1) by redesignating subsection (c) as sub15 section (d); and 

16 (2) by inserting after subsection (b) the fol17 lowing: 

18 ‘‘(c) RESEARCH GRANTS.— 

19 ‘‘(1) LIST OF PRIORITY RESEARCH AREAS.— 

20 The Committee shall develop a list of priority areas 

21 for research and development on climate change that 

22 are not being adequately addressed by Federal agen23 cies. 

24 ‘‘(2) TRANSMISSION OF LIST.—The Director of 

25 the Office of Science and Technology Policy shall 


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1 submit the list developed under paragraph (1) to the 

2 National Science Foundation. 

3 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

4 There are authorized to be appropriated to the Na5 tional Science Foundation such sums as are nec6 essary to carry out this subsection, to be made avail7 able through the Science and Technology Policy In8 stitute, for research in the priority areas.’’. 

9 SEC. 202. ABRUPT CLIMATE CHANGE RESEARCH. 

10 (a) IN GENERAL.—The Secretary of Commerce, act11 ing through the National Oceanic and Atmospheric Ad12 ministration, shall carry out a program of scientific re13 search on abrupt climate change designed to provide time14 ly warnings of the potential likelihood, magnitude, and 

15 consequences of, and measures to avoid, abrupt human16 induced climate change. 

17 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated to the Secretary of Com19 merce such sums as are necessary to carry out this sec20 tion. 

21 SEC. 203. DEVELOPMENT OF NEW MEASUREMENT TECH22 NOLOGIES. 

23 (a) IN GENERAL.—The Administrator of the Envi24 ronmental Protection Agency shall carry out a program 

25 to develop, with technical assistance from appropriate 


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1 Federal agencies, innovative standards and measurement 

2 technologies to calculate greenhouse gas emissions or re3 ductions for which no accurate, reliable, low-cost measure4 ment technology exists. 

5 (b) ADMINISTRATION.—The program shall include 

6 technologies (including remote sensing technologies) to 

7 measure carbon changes and other greenhouse gas emis8 sions and reductions from agriculture, forestry, wetlands, 

9 and other land use practices. 

10 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to the Administrator 

12 such sums as are necessary to carry out this section. 

13 SEC. 204. TECHNOLOGY DEVELOPMENT AND DIFFUSION. 

14 (a) IN GENERAL.—The Director of the National In15 stitute of Standards and Technology, acting through the 

16 Manufacturing Extension Partnership program, may de17 velop a program to promote the use, by small manufactur18 ers, of technologies and techniques that result in reduced 

19 emissions of greenhouse gases or increased sequestration 

20 of greenhouse gases. 

21 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to the Director of the 

23 National Institute of Standards and Technology such 

24 sums as are necessary to carry out this section. 


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1 SEC. 205. PUBLIC LAND. 

2 (a) IN GENERAL.—Not later than 3 years after the 

3 date of enactment of this Act, the Secretary of Agriculture 

4 and the Secretary of the Interior shall prepare a joint as5 sessment or separate assessments setting forth rec6 ommendations for increased sequestration of greenhouse 

7 gases and reduction of greenhouse gas emissions on public 

8 land that is— 

9 (1) managed forestland; 

10 (2) managed rangeland or grassland; or 

11 (3) protected land, including national parks and 

12 designated wilderness areas. 

13 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to the Secretary of Agri15 culture and the Secretary of the Interior such sums as 

16 are necessary to carry out this section. 

17 SEC. 206. SEA LEVEL RISE FROM POLAR ICE SHEET MELT18 ING. 

19 (a) IN GENERAL.—The Secretary of Commerce, act20 ing through the National Oceanic and Atmospheric Ad21 ministration and in cooperation with the Administrator of 

22 the National Aeronautics and Space Administration, shall 

23 carry out a program of scientific research to support mod24 eling and observations into the potential role of the Green25 land, west Antarctic, and east Antarctic ice sheets in any 

26 future increase in sea levels. 


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1 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary of Com3 merce and the Administrator of the National Aeronautics 

4 and Space Administration such sums as are necessary to 

5 carry out this section. 

Æ 


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