II 

110TH CONGRESS 

1ST SESSION S. 485 

To amend the Clean Air Act to establish an economy-wide global warming 

pollution emission cap-and-trade program to assist the economy in 

transitioning to new clean energy technologies, to protect employees and 

affected communities, to protect companies and consumers from significant increases in energy costs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 1, 2007 

Mr. KERRY (for himself and Ms. SNOWE) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Clean Air Act to establish an economy-wide 

global warming pollution emission cap-and-trade program 

to assist the economy in transitioning to new clean energy technologies, to protect employees and affected communities, to protect companies and consumers from significant increases in energy costs, and for other purposes. 

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 ‘‘Global Warming Reduction Act of 2007’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—COMPREHENSIVE GLOBAL WARMING POLLUTION 

REDUCTIONS 

Sec. 101. Global warming pollution emission reductions. 

Sec. 102. Biofuels infrastructure. 

TITLE II—TAX INCENTIVES FOR ADVANCED TECHNOLOGY 

VEHICLES 

Subtitle A—Providing Consumers With Additional Advanced Technology 

Vehicle Purchase Incentives 

Sec. 201. Expansion and extension of alternative motor vehicle credit. 

Sec. 202. Plug-in hybrid motor vehicle tax credit. 

Subtitle B—Advanced Technology Motor Vehicles Manufacturing Credit 

Sec. 211. Advanced technology motor vehicles manufacturing credit. 

TITLE III—INTERNATIONAL AND CORPORATE OBLIGATIONS 

Sec. 301. International negotiations and trade restrictions. 

Sec. 302. Corporate environmental disclosure of climate change risks. 

TITLE IV—NATIONAL CLIMATE CHANGE VULNERABILITY AND 

RESILIENCE PROGRAM 

Sec. 401. Definitions. 

Sec. 402. National Climate Change Vulnerability and Resilience Program. 

3 SEC. 2. FINDINGS. 

4 Congress finds that— 

5 (1) the United States is a party to the United 

6 Nations Framework Convention on Climate Change, 

7 done at New York on May 9, 1992, which has the 

8 objective of stabilizing global warming pollution con9 centrations in the atmosphere at a level that would 

10 prevent dangerous anthropogenic interference with 

11 the climate system; 


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1 (2) to achieve this objective, the increase in 

2 global mean surface temperature should not exceed 

3 2 degrees Celsius (3.6 degrees Fahrenheit) above 

4 preindustrial temperatures; 

5 (3) the risks associated with a temperature in6 crease above 2 degrees Celsius (3.6 degrees Fahr7 enheit) are grave, including the disintegration of the 

8 Greenland ice sheet, which, if melted completely, 

9 would raise the global average sea level by approxi10 mately 23 feet, devastating many of the coastal 

11 areas and population centers of the world; 

12 (4) the Intergovernmental Panel on Climate 

13 Change projects that, under a range of expected 

14 emissions trends, temperatures will rise between 1.4 

15 degrees Celsius to 5.8 degrees Celsius (2.5 degrees 

16 Fahrenheit to 10.4 degrees Fahrenheit) by the end 

17 of the century; 

18 (5) serious global warming impacts have al19 ready been observed in the United States and world20 wide, including— 

21 (A) increases in heat waves and other ex22 treme weather events; 

23 (B) a rise in sea levels; 

24 (C) a retreat of glaciers and polar ice; 

25 (D) a decline in mountain snowpacks; 


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1 (E) increased drought and wildfires; 

2 (F) stronger hurricanes; 

3 (G) ocean acidification; 

4 (H) extensive coral bleaching; 

5 (I) migrations and shifts in the yearly cy6 cles of plants and animals; and 

7 (J) the spread of infectious diseases; 

8 (6) by 2050, scientists project that, under a 

9 mid-range estimate of global warming, approxi10 mately 25 percent of animal and plant species would 

11 be doomed to extinction; 

12 (7) decisive action is— 

13 (A) needed to minimize the many dangers 

14 posed by global warming; and 

15 (B) critical since global warming pollutants 

16 can persist in the atmosphere for more than a 

17 century; 

18 (8) reductions in emissions from current levels 

19 should begin within a decade of the date of enact20 ment of this Act to preserve the ability to stabilize 

21 atmospheric global warming pollution concentrations 

22 at levels likely to protect against a temperature rise 

23 above 2 degrees Celsius (3.6 degrees Fahrenheit); 

24 (9) while the United States has only 5 percent 

25 of the world population, the United States— 


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1 (A) emits at least 20 percent of the total 

2 global warming pollution emissions of the world; 

3 and 

4 (B) needs to be a leader in addressing 

5 global warming; and 

6 (10) existing energy efficiency and clean, renew7 able energy technologies would reduce global warm8 ing pollution, while— 

9 (A) saving consumers money; 

10 (B) reducing the dependence of the United 

11 States on oil; 

12 (C) enhancing national security; 

13 (D) cleaning the air; and 

14 (E) protecting pristine places from drilling 

15 and mining. 

16 TITLE I—COMPREHENSIVE 

17 GLOBAL WARMING POLLU18 TION REDUCTIONS 

19 SEC. 101. GLOBAL WARMING POLLUTION EMISSION REDUC20 TIONS. 

21 The Clean Air Act (42 U.S.C. 7401 et seq.) is amend22 ed by adding at the end the following: 


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1 ‘‘TITLE VII—COMPREHENSIVE 

2 GLOBAL WARMING POLLU3 TION REDUCTIONS 

‘‘Sec. 701. Definitions. 

‘‘Sec. 702. Global warming pollution emission reductions. 

‘‘Sec. 703. Market-based cap on emissions. 

‘‘Sec. 704. Global warming pollution emission standards for passenger vehicles. 

‘‘Sec. 705. Research and development. 

‘‘Sec. 706. Energy efficiency performance standard. 

‘‘Sec. 707. Renewable portfolio standard. 

‘‘Sec. 708. Standards to account for biological sequestration of carbon. 

‘‘Sec. 709. Global warming pollution reporting. 

‘‘Sec. 710. National Academy of Sciences report. 

‘‘Sec. 711. Additional authority to regulate emissions of global warming pollutants. 

4 ‘‘SEC. 701. DEFINITIONS. 

5 ‘‘In this title: 

6 ‘‘(1) ACADEMY.—The term ‘Academy’ means 

7 the National Academy of Sciences. 

8 ‘‘(2) ALLOWANCE.—The term ‘allowance’ 

9 means an authorization by the Administrator to 

10 emit— 

11 ‘‘(A) 1 metric ton of carbon dioxide; or 

12 ‘‘(B) in the case of a global warming pol13 lutant other than carbon dioxide, a carbon diox14 ide equivalent. 

15 ‘‘(3) CARBON DIOXIDE EQUIVALENT.—The 

16 term ‘carbon dioxide equivalent’ means, for each 

17 global warming pollutant, the quantity of the global 

18 warming pollutant that makes the same contribution 


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

2 as determined by the Administrator. 

3 ‘‘(4) COVERED ENTITY.—The term ‘covered en4 tity’ means any individual or entity subject to the 

5 cap on emissions of global warming pollutants im6 posed under section 703(a)(1), as determined by the 

7 Administrator. 

8 ‘‘(5) FACILITY.—The term ‘facility’ means all 

9 buildings, structures, or installations that are— 

10 ‘‘(A) located on 1 or more contiguous or 

11 adjacent properties under common control of 

12 the same persons; and 

13 ‘‘(B) located in the United States. 

14 ‘‘(6) FUND.—The term ‘Fund’ means the Cli15 mate Reinvestment Fund established by section 

16 703(g)(1). 

17 ‘‘(7) GLOBAL WARMING POLLUTANT.—The 

18 term ‘global warming pollutant’ means each of— 

19 ‘‘(A) carbon dioxide; 

20 ‘‘(B) methane; 

21 ‘‘(C) nitrous oxide; 

22 ‘‘(D) hydrofluorocarbons; 

23 ‘‘(E) perfluorocarbons; 

24 ‘‘(F) sulfur hexafluoride; and 


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1 ‘‘(G) any other anthropogenically-emitted 

2 gas that the Administrator, after notice and 

3 comment, determines to contribute to global 

4 warming. 

5 ‘‘(8) GLOBAL WARMING POLLUTION.—The term 

6 ‘global warming pollution’ means any combination of 

7 1 or more global warming pollutants emitted into 

8 the ambient air or atmosphere. 

9 ‘‘(9) PROGRAM.—The term ‘program’ means 

10 the cap-and-trade program established by the Ad11 ministrator under section 703(a). 

12 ‘‘SEC. 702. GLOBAL WARMING POLLUTION EMISSION RE13 DUCTIONS. 

14 ‘‘(a) GOALS.— 

15 ‘‘(1) EMISSION REDUCTION GOAL.—Congress 

16 declares that it shall be the goal of the United 

17 States, acting in concert with other countries that 

18 emit global warming pollutants, to achieve a reduc19 tion in global warming pollutant emissions— 

20 ‘‘(A) to facilitate the achievement of an av21 erage global atmospheric concentration of global 

22 warming pollution that does not exceed 450 

23 parts per million; and 

24 ‘‘(B) beginning not later than calendar 

25 year 2010, to reverse increases in global warmVerDate Aug 31 2005 00:22 Feb 13, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S485.IS S485

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1 ing pollution emissions so as to achieve, by not 

2 later than calendar year 2050, a 65-percent re3 duction in global warming pollution emissions 

4 in the United States (as compared to those 

5 global warming pollution emissions for calendar 

6 year 2000). 

7 ‘‘(2) ADDITIONAL GOAL.—In addition to the 

8 emission reduction goal described in paragraph (1), 

9 Congress declares that, in implementing this title, it 

10 shall be the goal of the United States— 

11 ‘‘(A) to maximize public benefits and pro12 mote economic growth; 

13 ‘‘(B) to mitigate the effect of any energy 

14 cost increases to consumers, particularly low-in15 come consumers; 

16 ‘‘(C) to provide equitable transition assist17 ance to any employees and regions affected by 

18 a transition away from the use of high carbon19 emitting energy sources; 

20 ‘‘(D) to encourage research, development, 

21 and commercial deployment of innovative tech22 nologies for avoiding, reducing, or sequestering 

23 emissions of global warming pollutants; 


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1 ‘‘(E) to encourage reduced carbon emis2 sions from, and enhanced sequestration of, car3 bon in the forest and agricultural sectors; 

4 ‘‘(F) to recognize and reward early reduc5 tions of greenhouse gases; and 

6 ‘‘(G) to support activities, including pro7 viding support for State activities, to protect 

8 against and mitigate the impacts of climate 

9 change, including— 

10 ‘‘(i) the depletion of snowpack and 

11 water supplies; 

12 ‘‘(ii) droughts; 

13 ‘‘(iii) wildfires; 

14 ‘‘(iv) enhanced coastal erosion; 

15 ‘‘(v) increases in sea levels; 

16 ‘‘(vi) higher storm surges; 

17 ‘‘(vii) more intense precipitation 

18 events and hurricanes; 

19 ‘‘(viii) the spread of disease; 

20 ‘‘(ix) damage to fish and wildlife habi21 tat; 

22 ‘‘(x) negative commercial effects (such 

23 as damage to the maple syrup and fishing 

24 industries); and 


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1 ‘‘(xi) agricultural and forestry losses 

2 resulting from drought, disease, and insect 

3 infestations. 

4 ‘‘(b) REGULATIONS.— 

5 ‘‘(1) EMISSION REDUCTION TARGETS.—In order 

6 to achieve the goals described in subsection (a), not 

7 later than 2 years after the date of enactment of 

8 this title, the Administrator shall promulgate any 

9 regulations that are necessary to reduce the aggre10 gate net level of global warming pollution emissions 

11 of the United States— 

12 ‘‘(A) by calendar year 2020, through ap13 propriate measures taken during the period of 

14 calendar years 2010 through 2019, to the ag15 gregate net level of global warming pollution 

16 emissions of the United States for calendar 

17 year 1990; 

18 ‘‘(B) for each of calendar years 2021 

19 through 2030, by at least an additional 2.5 per20 cent below the level achieved for the preceding 

21 calendar year in accordance with this para22 graph; and 

23 ‘‘(C) for each of calendar years 2031 

24 through 2050, by at least an additional 3.5 per25 cent below the level achieved for the preceding 


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1 calendar year in accordance with this para2 graph. 

3 ‘‘(2) ADDITIONAL REGULATIONS.—The regula4 tions promulgated under this subsection may in5 clude— 

6 ‘‘(A) requirements to reduce emissions of 

7 greenhouse gases from any source or sector, re8 gardless of whether the source or sector is de9 scribed in section 703(b)(1); 

10 ‘‘(B) emissions performance standards; 

11 ‘‘(C) efficiency performance standards; 

12 ‘‘(D) best management practices; 

13 ‘‘(E) technology-based requirements; and 

14 ‘‘(F) such other requirements as the Ad15 ministrator determines to be appropriate. 

16 ‘‘SEC. 703. MARKET-BASED CAP ON EMISSIONS. 

17 ‘‘(a) IN GENERAL.—In carrying out section 702, the 

18 Administrator shall establish a program that— 

19 ‘‘(1) imposes a cap on the emissions of global 

20 warming pollutants from sources and sectors de21 scribed in subsection (b)(1); and 

22 ‘‘(2) allows trading of allowances among cov23 ered entities. 

24 ‘‘(b) SCOPE.—The program established under sub25 section (a) shall— 


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

2 to the sources or sectors of the United States econ3 omy with— 

4 ‘‘(A) the greatest global warming pollutant 

5 emissions; 

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

7 to reduce global warming pollutant emissions; 

8 or 

9 ‘‘(C) other characteristics that the Admin10 istrator determines make the source or sector 

11 appropriate for inclusion in the program; and 

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

13 United States emissions of global warming pollut14 ants, such that, in combination with other measures 

15 adopted under this title, and under the Global 

16 Warming Reduction Act of 2007 and the amend17 ments made by that Act, the program will ensure, to 

18 the maximum extent practicable, that the aggregate 

19 United States emissions of global warming pollut20 ants will not exceed the emission reduction targets 

21 promulgated pursuant to section 702(b)(1). 

22 ‘‘(c) ALLOWANCES.— 

23 ‘‘(1) ISSUANCE.— 

24 ‘‘(A) IN GENERAL.—The regulations pro25 mulgated under section 702(b) shall provide for 


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1 the Administrator to issue, for each calendar 

2 year, a quantity of allowances equal to the ag3 gregate emissions allowed under the cap im4 posed under subsection (a)(1) for the calendar 

5 year. 

6 ‘‘(B) TREATMENT AS PROPERTY.—An al7 lowance issued under subparagraph (A) shall 

8 not constitute a property right. 

9 ‘‘(C) NO EFFECT ON AUTHORITY.—Noth10 ing in this title or any other provision of law 

11 limits or otherwise affects the authority of the 

12 United States to terminate or limit an allow13 ance issued under subparagraph (A). 

14 ‘‘(2) TRADING.—An allowance issued under this 

15 subsection may be held and traded by any person. 

16 ‘‘(3) FLEXIBILITY.—An allowance issued under 

17 this subsection may be— 

18 ‘‘(A) used for the calendar year in which 

19 the allowance was issued; or 

20 ‘‘(B) banked for use in a calendar year 

21 subsequent to the calendar year of issuance. 

22 ‘‘(d) DISTRIBUTION OF ALLOWANCES.— 

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

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

25 after the date of enactment of this title, the 


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1 President, in consultation with the Adminis2 trator and heads of other appropriate Federal 

3 agencies, shall develop and submit to Congress 

4 a plan— 

5 ‘‘(i) to distribute the allowances issued 

6 under this section through— 

7 ‘‘(I) auctions; and 

8 ‘‘(II) at the discretion of the 

9 President and subject to subpara10 graph (B)(iii), allocations without 

11 charge to covered entities or entities 

12 that are not covered by the cap im13 posed under subsection (a)(1); 

14 ‘‘(ii) to deposit the proceeds of those 

15 auctions in the Fund; and 

16 ‘‘(iii) to ensure, to the maximum ex17 tent practicable, that those allowances are 

18 distributed, and those proceeds are used, 

19 in a manner consistent with achieving the 

20 goals described in section 702(a). 

21 ‘‘(B) CONTENTS.—The plan submitted 

22 under subparagraph (A) shall— 

23 ‘‘(i) identify each Federal department 

24 or agency responsible for implementing 

25 each action required; 


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1 ‘‘(ii) require that allowances be dis2 tributed not later than January 1, 2010, 

3 for calendar year 2010; and 

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

5 of allowances without charge, resulting in 

6 the creation of windfall profits for covered 

7 entities. 

8 ‘‘(2) PLAN IMPLEMENTATION.—If, after the 1- 

9 year period beginning on the date of submission of 

10 the plan under paragraph (1)(A), Congress has not 

11 enacted a law that implements the plan (or an alter12 native to the plan), the Administrator and the head 

13 of each Federal department or agency identified in 

14 paragraph (1)(B)(i) shall implement the actions 

15 identified in the plan. 

16 ‘‘(e) MONITORING.—The Administrator shall ensure, 

17 to the maximum extent practicable, that— 

18 ‘‘(1) the emissions of global warming pollutants 

19 and the use of allowances issued under this section 

20 are accurately tracked, reported, and verified; and 

21 ‘‘(2) the cap-and-trade system established pur22 suant to this section is robust and enforceable. 

23 ‘‘(f) ENFORCEMENT.— 

24 ‘‘(1) IN GENERAL.—In the case of excess emis25 sions of global warming pollutants under this section 


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1 by an covered entity during any calendar year, the 

2 regulations promulgated under section 702(b) shall 

3 require the covered entity— 

4 ‘‘(A) to submit allowances for the emis5 sions during the following calendar year; and 

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

7 determined under paragraph (2). 

8 ‘‘(2) AMOUNT OF CIVIL PENALTY.— 

9 ‘‘(A) IN GENERAL.—The amount of a civil 

10 penalty for each quantity of excess emissions of 

11 global warming pollutants constituting 1 carbon 

12 dioxide equivalent shall be an amount equal to 

13 twice the market price for an allowance as of 

14 December 31 of the calendar year in which the 

15 excess emissions occurred. 

16 ‘‘(B) DETERMINATION OF MARKET

17 PRICE.—The Administrator shall, by regulation, 

18 establish a method of determining the market 

19 price of allowances for the purpose of subpara20 graph (A). 

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

22 under this subsection shall be due and payable to 

23 the Administrator without demand. 


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1 ‘‘(4) DEPOSIT AND USE OF AMOUNTS.—A civil 

2 penalty paid to the Administrator under this sub3 section shall be— 

4 ‘‘(A) deposited in the Fund; and 

5 ‘‘(B) available for use by the President, in 

6 accordance with subsection (g), without further 

7 appropriation. 

8 ‘‘(g) CLIMATE REINVESTMENT FUND.— 

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

10 the Treasury of the United States a fund, to be 

11 known as the ‘Climate Reinvestment Fund’, con12 sisting of— 

13 ‘‘(A) amounts collected pursuant to auc14 tions of allowances issued under this section; 

15 ‘‘(B) amounts received as civil penalties 

16 and deposited in the Fund under subsection 

17 (f)(4)(A); and 

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

19 amounts in the Fund under paragraph (3). 

20 ‘‘(2) EXPENDITURES FROM FUND.—On request 

21 by the President, the Secretary of the Treasury shall 

22 transfer from the Fund to the President such 

23 amounts as the President determines to be necessary 

24 to carry out projects and activities to achieve the 

25 goals described in section 702(a). 


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1 ‘‘(3) INVESTMENT OF AMOUNTS.— 

2 ‘‘(A) IN GENERAL.—The Secretary of the 

3 Treasury shall invest such portion of the Fund 

4 as is not, in the judgment of the Secretary of 

5 the Treasury, required to meet current with6 drawals. 

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

8 Investments may be made only in interest-bear9 ing obligations of the United States. 

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

11 the purpose of investments under subparagraph 

12 (A), obligations may be acquired— 

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

14 price; or 

15 ‘‘(ii) by purchase of outstanding obli16 gations at the market price. 

17 ‘‘(D) SALE OF OBLIGATIONS.—Any obliga18 tion acquired by the Fund may be sold by the 

19 Secretary of the Treasury at the market price. 

20 ‘‘(E) CREDITS TO FUND.—The interest on, 

21 and the proceeds from the sale or redemption 

22 of, any obligations held in the Fund shall be 

23 credited to, and form a part of, the Fund. 

24 ‘‘(4) FUNDING.—For each fiscal year, there are 

25 appropriated to the Fund, to remain available until 


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1 expended, an amount equal to the sum of, with re2 spect to the preceding fiscal year— 

3 ‘‘(A) amounts collected pursuant to auc4 tions of allowances issued under this section; 

5 and 

6 ‘‘(B) the amount of civil penalties depos7 ited in the Fund under subsection (f)(4)(A). 

8 ‘‘SEC. 704. GLOBAL WARMING POLLUTION EMISSION 

9 STANDARDS FOR PASSENGER VEHICLES. 

10 ‘‘(a) DEFINITION OF PASSENGER VEHICLE.—In this 

11 section, the term ‘passenger vehicle’ means— 

12 ‘‘(1) a passenger automobile (as that term is 

13 defined in section 32901 of title 49, United States 

14 Code); 

15 ‘‘(2) a light truck; and 

16 ‘‘(3) any other vehicle that the Administrator 

17 determines is a vehicle the primary use of which is 

18 noncommercial personal transportation. 

19 ‘‘(b) STANDARDS.— 

20 ‘‘(1) IN GENERAL.—In carrying out section 

21 702(b), the Administrator shall promulgate regula22 tions that establish standards for global warming 

23 pollution emissions from passenger vehicles. 

24 ‘‘(2) REQUIREMENTS.—The standards estab25 lished under paragraph (1) shall provide for the reVerDate Aug 31 2005 00:22 Feb 13, 2007 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S485.IS S485

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1 duction of global warming pollution emissions from 

2 passenger vehicles, on an average-vehicle basis, at a 

3 rate and in quantities that are equal to or greater 

4 than the rate and quantity reductions in those emis5 sions achieved under standards adopted by the Cali6 fornia Air Resources Board at the September 23–24, 

7 2004 hearing of that Board (California Code of Reg8 ulations, title 13, sec. 1961.1). 

9 ‘‘(3) REVISIONS.—Not later than January 1, 

10 2014, and every 5 years thereafter, the Adminis11 trator shall promulgate regulations revising the 

12 standards described in paragraph (1) to further re13 duce global warming pollution emissions from pas14 senger vehicles, taking into account— 

15 ‘‘(A) the reductions necessary to achieve 

16 the emission reduction targets promulgated 

17 pursuant to section 702(b)(1); and 

18 ‘‘(B) the technological feasibility of further 

19 reducing those emissions. 

20 ‘‘SEC. 705. RESEARCH AND DEVELOPMENT. 

21 ‘‘(a) IN GENERAL.—The Administrator shall carry 

22 out a program to perform and support research on global 

23 climate change standards and processes, with the goals of 

24 providing scientific and technical knowledge applicable to 

25 the reduction of global warming pollutants. 


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1 ‘‘(b) RESEARCH PROGRAM.— 

2 ‘‘(1) IN GENERAL.—The Administrator shall 

3 carry out, directly or through the use of contracts or 

4 grants, a global climate change standards and proc5 esses research program. 

6 ‘‘(2) RESEARCH.— 

7 ‘‘(A) CONTENTS AND PRIORITIES.—The 

8 specific contents and priorities of the research 

9 program shall be determined in consultation 

10 with appropriate Federal agencies, including— 

11 ‘‘(i) the National Oceanic and Atmos12 pheric Administration; 

13 ‘‘(ii) the National Aeronautics and 

14 Space Administration; and 

15 ‘‘(iii) the Department of Energy. 

16 ‘‘(B) TYPES OF RESEARCH.—The research 

17 program shall include the conduct of basic and 

18 applied research— 

19 ‘‘(i) to develop and provide the en20 hanced measurements, calibrations, data, 

21 models, and reference material standards 

22 necessary to enable the monitoring of glob23 al warming pollution; 

24 ‘‘(ii) to assist in establishing a base25 line reference point for future trading in 


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1 global warming pollutants (including the 

2 measurement of progress in emission re3 ductions); 

4 ‘‘(iii) for international exchange as 

5 scientific or technical information for the 

6 stated purpose of developing mutually-rec7 ognized measurements, standards, and pro8 cedures for reducing global warming pollu9 tion; 

10 ‘‘(iv) to assist in developing improved 

11 industrial processes designed to reduce or 

12 eliminate global warming pollution; and 

13 ‘‘(v) to assist in understanding the 

14 acidification of the oceans and the ways in 

15 which that process affects ocean eco16 systems and fisheries of the United States. 

17 ‘‘(3) ABRUPT CLIMATE CHANGE RESEARCH.— 

18 ‘‘(A) DEFINITION OF ABRUPT CLIMATE

19 CHANGE.—In this paragraph, the term ‘abrupt 

20 climate change’ means a change in climate that 

21 occurs so rapidly or unexpectedly that humans 

22 or natural systems may have difficulty adapting 

23 to the change. 

24 ‘‘(B) RESEARCH.—The Administrator shall 

25 carry out a program of scientific research on 


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1 potential abrupt climate change that is de2 signed— 

3 ‘‘(i) to develop a global array of ter4 restrial and oceanographic indicators of 

5 paleoclimate in order to identify and de6 scribe past instances of abrupt climate 

7 change; 

8 ‘‘(ii) to improve understanding of 

9 thresholds and nonlinearities in geophysical 

10 systems relating to the mechanisms of ab11 rupt climate change; 

12 ‘‘(iii) to incorporate those mechanisms 

13 into advanced geophysical models of cli14 mate change; and 

15 ‘‘(iv) to test the output of those mod16 els against an improved global array of 

17 records of past abrupt climate changes. 

18 ‘‘(c) SENSE OF THE SENATE.—It is the sense of the 

19 Senate that Federal funds for clean, low-carbon energy re20 search, development, and deployment should be increased 

21 by at least 100 percent for each year during the 10-year 

22 period beginning on the date of enactment of this title. 

23 ‘‘SEC. 706. ENERGY EFFICIENCY PERFORMANCE STAND24 ARD. 

25 ‘‘(a) DEFINITIONS.—In this section: 


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1 ‘‘(1) ELECTRICITY SAVINGS.— 

2 ‘‘(A) IN GENERAL.—The term ‘electricity 

3 savings’ means reductions in end-use electricity 

4 consumption relative to consumption by the 

5 same customer or at the same new or existing 

6 facility in a given year, as defined in regula7 tions promulgated by the Administrator under 

8 subsection (e). 

9 ‘‘(B) INCLUSIONS.—The term ‘savings’ in10 cludes savings achieved as a result of— 

11 ‘‘(i) installation of energy-saving tech12 nologies and devices; and 

13 ‘‘(ii) the use of combined heat and 

14 power systems, fuel cells, or any other 

15 technology identified by the Administrator 

16 that recaptures or generates energy solely 

17 for onsite customer use. 

18 ‘‘(C) EXCLUSION.—The term ‘savings’ 

19 does not include savings from measures that 

20 would likely be adopted in the absence of en21 ergy-efficiency programs, as determined by the 

22 Administrator. 

23 ‘‘(2) RETAIL ELECTRICITY SALES.—The term 

24 ‘retail electricity sales’ means the total quantity of 

25 electric energy sold by a retail electricity supplier to 


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1 retail customers during the most recent calendar 

2 year for which that information is available. 

3 ‘‘(3) RETAIL ELECTRICITY SUPPLIER.—The 

4 term ‘retail electricity supplier’ means a distribution 

5 or integrated utility, or an independent company or 

6 entity, that sells electric energy to consumers. 

7 ‘‘(b) ENERGY EFFICIENCY PERFORMANCE STAND8 ARD.—Each retail electricity supplier shall implement pro9 grams and measures to achieve improvements in energy 

10 efficiency and peak load reduction, as verified by the Ad11 ministrator. 

12 ‘‘(c) TARGETS.—For calendar year 2009 and each 

13 calendar year thereafter, the Administrator shall ensure, 

14 to the maximum extent practicable, that retail electric 

15 suppliers annually achieve electricity savings and reduce 

16 peak power demand and electricity use by retail customers 

17 by a percentage that is not less than the applicable target 

18 percentage specified in the following table: 

Calendar Year Reduction in peak demand 

Reduction in electricity 

use 

2009 ................................ .25 percent ..................... .25 percent 

2010 ................................ .75 percent ..................... .75 percent 

2011 ................................ 1.75 percent ................... 1.5 percent 

2012 ................................ 2.75 percent ................... 2.25 percent 

2013 ................................ 3.75 percent ................... 3.0 percent 

2014 ................................ 4.75 percent ................... 3.75 percent 

2015 ................................ 5.75 percent ................... 4.5 percent 

2016 ................................ 6.75 percent ................... 5.25 percent 

2017 ................................ 7.75 percent ................... 6.0 percent 

2018 ................................ 8.75 percent ................... 6.75 percent 

2019 ................................ 9.75 percent ................... 7.5 percent 

2020 ................................ 10.75 percent ................. 8.25 percent 

2021 and each calendar 

year thereafter.

11.75 percent ................. 9.0 percent 


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1 ‘‘(d) BEGINNING DATE.—For the purpose of meeting 

2 the targets established under subsection (c), electricity 

3 savings shall be calculated based on the sum of— 

4 ‘‘(1) savings realized as a result of actions 

5 taken by the retail electric supplier during the speci6 fied calendar year; and 

7 ‘‘(2) cumulative savings realized as a result of 

8 electricity savings achieved in all previous calendar 

9 years (beginning with calendar year 2007). 

10 ‘‘(e) IMPLEMENTING REGULATIONS.— 

11 ‘‘(1) IN GENERAL.—Not later than 1 year after 

12 the date of enactment of this title, the Administrator 

13 shall promulgate regulations to implement the tar14 gets established under subsection (c). 

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

16 establish— 

17 ‘‘(A) a national credit system permitting 

18 credits to be awarded, bought, sold, or traded 

19 by and among retail electricity suppliers; 

20 ‘‘(B) a fee equivalent to not less than 4 

21 cents per kilowatt hour for retail energy sup22 pliers that do not meet the targets established 

23 under subsection (c); and 


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1 ‘‘(C) standards for monitoring and 

2 verification of electricity use and demand sav3 ings reported by the retail electricity suppliers. 

4 ‘‘(3) CONSIDERATION OF TRANSMISSION AND

5 DISTRIBUTION EFFICIENCY.—In developing regula6 tions under this subsection, the Administrator shall 

7 consider whether savings, in whole or part, achieved 

8 by retail electricity suppliers by improving the effi9 ciency of electric distribution and use should be eligi10 ble for credits established under this section. 

11 ‘‘(f) COMPLIANCE WITH STATE LAW.—Nothing in 

12 this section shall supersede or otherwise affect any State 

13 or local law requiring or otherwise relating to reductions 

14 in total annual electricity consumption, or peak power con15 sumption, by electric consumers to the extent that the 

16 State or local law requires more stringent reductions than 

17 those required under this section. 

18 ‘‘(g) VOLUNTARY PARTICIPATION.—The Adminis19 trator may— 

20 ‘‘(1) pursuant to the regulations promulgated 

21 under subsection (e)(1), issue a credit to any entity 

22 that is not a retail electric supplier if the entity im23 plements electricity savings; and 

24 ‘‘(2) in a case in which an entity described in 

25 paragraph (1) is a nonprofit or educational organiVerDate Aug 31 2005 00:22 Feb 13, 2007 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S485.IS S485

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1 zation, provide to the entity 1 or more grants in lieu 

2 of a credit. 

3 ‘‘SEC. 707. RENEWABLE PORTFOLIO STANDARD. 

4 ‘‘(a) RENEWABLE ENERGY.— 

5 ‘‘(1) IN GENERAL.—The Administrator, in con6 sultation with the Secretary of Energy, shall promul7 gate regulations defining the types and sources of 

8 renewable energy generation that may be carried out 

9 in accordance with this section. 

10 ‘‘(2) INCLUSIONS.—In promulgating regulations 

11 under paragraph (1), the Administrator shall include 

12 of all types of renewable energy (as defined in sec13 tion 203(b) of the Energy Policy Act of 2005 (42 

14 U.S.C. 15852(b))) other than energy generated 

15 from— 

16 ‘‘(A) municipal solid waste; 

17 ‘‘(B) wood contaminated with plastics or 

18 metals; or 

19 ‘‘(C) tires. 

20 ‘‘(b) RENEWABLE ENERGY REQUIREMENT.—Of the 

21 base quantity of electricity sold by each retail electric sup22 plier to electric consumers during a calendar year, the 

23 quantity generated by renewable energy sources shall be 

24 not less than the following percentages: 

‘‘Calendar year: Minimum annual 

percentage: 

2009 through 2010 ............................................................................ 5


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‘‘Calendar year: Minimum annual 

percentage: 

2011 through 2015 ............................................................................ 10

2016 through 2020 ............................................................................ 15

2021 and subsequent years ................................................................ 20. 

1 ‘‘(c) RENEWABLE ENERGY CREDIT PROGRAM.—Not 

2 later than 1 year after the date of enactment of this title, 

3 the Administrator shall establish— 

4 ‘‘(1) a program to issue, establish the value of, 

5 monitor the sale or exchange of, and track renewable 

6 energy credits; and 

7 ‘‘(2) penalties for any retail electric supplier 

8 that does not comply with this section. 

9 ‘‘(d) PROHIBITION ON DOUBLE COUNTING.—A re10 newable energy credit issued under subsection (c)— 

11 ‘‘(1) may be counted toward meeting the re12 quirements of subsection (b) only once; and 

13 ‘‘(2) shall vest with the owner of the system or 

14 facility that generates the renewable energy that is 

15 covered by the renewable energy credit, unless the 

16 owner explicitly transfers the renewable energy cred17 it. 

18 ‘‘(e) SALE UNDER PURPA CONTRACT.—If the Ad19 ministrator, after consultation with the Secretary of En20 ergy, determines that a renewable energy generator is sell21 ing electricity to comply with this section to a retail elec22 tric supplier under a contract subject to section 210 of 

23 the Public Utilities Regulatory Policies Act of 1978 (16 


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1 U.S.C. 824a–3), the retail electric supplier shall be treated 

2 as the generator of the electric energy for the purposes 

3 of this title for the duration of the contract. 

4 ‘‘(f) STATE PROGRAMS.—Nothing in this section pre5 cludes any State from requiring additional renewable en6 ergy generation under any State renewable energy pro7 gram. 

8 ‘‘(g) VOLUNTARY PARTICIPATION.—The Adminis9 trator may issue a renewable energy credit pursuant to 

10 subsection (c) to any entity that is not subject to this sec11 tion only if the entity applying for the renewable energy 

12 credit meets the terms and conditions of this section to 

13 the same extent as retail electric suppliers subject to this 

14 section. 

15 ‘‘SEC. 708. STANDARDS TO ACCOUNT FOR BIOLOGICAL SE16 QUESTRATION OF CARBON. 

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

18 date of enactment of title, the Secretary of Agriculture, 

19 with the concurrence of the Administrator, shall establish 

20 standards for accrediting certified reductions in the emis21 sion of carbon dioxide through above-ground and below22 ground biological sequestration activities. 

23 ‘‘(b) REQUIREMENTS.—The standards shall in24 clude— 


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1 ‘‘(1) a national biological carbon storage base2 line or inventory; and 

3 ‘‘(2) measurement, monitoring, and verification 

4 guidelines based on— 

5 ‘‘(A) measurement of increases in carbon 

6 storage in excess of the carbon storage that 

7 would have occurred in the absence of a new 

8 management practice designed to achieve bio9 logical sequestration of carbon; 

10 ‘‘(B) comprehensive carbon accounting 

11 that— 

12 ‘‘(i) reflects sustained net increases in 

13 carbon reservoirs; and 

14 ‘‘(ii) takes into account any carbon 

15 emissions resulting from disturbance of 

16 carbon reservoirs in existence as of the 

17 date of commencement of any new man18 agement practice designed to achieve bio19 logical sequestration of carbon; 

20 ‘‘(C) adjustments to account for— 

21 ‘‘(i) emissions of carbon that may re22 sult at other locations as a result of the 

23 impact of the new biological sequestration 

24 management practice on timber supplies; 

25 or 


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1 ‘‘(ii) potential displacement of carbon 

2 emissions to other land owned by the enti3 ty that carries out the new biological se4 questration management practice; and 

5 ‘‘(D) adjustments to reflect the expected 

6 carbon storage over various time periods, taking 

7 into account the likely duration of the storage 

8 of carbon in a biological reservoir. 

9 ‘‘(c) UPDATING OF STANDARDS.—Not later than 3 

10 years after the date of establishment of the standards 

11 under subsection (a), and every 3 years thereafter, the 

12 Secretary of Agriculture shall update the standards to 

13 take into account the most recent scientific information. 

14 ‘‘SEC. 709. GLOBAL WARMING POLLUTION REPORTING. 

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

16 date of enactment of this title, and annually thereafter, 

17 any entity considered to be a major stationary source (as 

18 defined in section 169A(g)) shall submit to the Adminis19 trator a report describing the emissions of global warming 

20 pollutants from the entity for the preceding calendar year. 

21 ‘‘(b) VOLUNTARY REPORTING.—An entity that is not 

22 described in subsection (a) may voluntarily report the 

23 emissions of global warming pollutants from the entity to 

24 the Administrator. 

25 ‘‘(c) REQUIREMENTS FOR REPORTS.— 


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1 ‘‘(1) EXPRESSION OF MEASUREMENTS.—Each 

2 global warming pollution report submitted under this 

3 section shall express global warming pollution emis4 sions in— 

5 ‘‘(A) metric tons of each global warming 

6 pollutant; and 

7 ‘‘(B) metric tons of the carbon dioxide 

8 equivalent of each global warming pollutant. 

9 ‘‘(2) ELECTRONIC FORMAT.—The information 

10 contained in a report submitted under this section 

11 shall be reported electronically to the Administrator 

12 in such form and to such extent as may be required 

13 by the Administrator. 

14 ‘‘(3) DE MINIMIS EXEMPTION.—The Adminis15 trator may specify the level of global warming pollu16 tion emissions from a source within a facility that 

17 shall be considered to be a de minimis exemption 

18 from the requirement to comply with this section. 

19 ‘‘(d) PUBLIC AVAILABILITY OF INFORMATION.—Not 

20 later than March 1 of the year after which the Adminis21 trator receives a report under this subsection from an enti22 ty, and annually thereafter, the Administrator shall make 

23 the information reported under this section available to 

24 the public through the Internet. 


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1 ‘‘(e) PROTOCOLS AND METHODS.—The Adminis2 trator shall, by regulation, establish protocols and methods 

3 to ensure completeness, consistency, transparency, and ac4 curacy of data on global warming pollution emissions sub5 mitted under this section. 

6 ‘‘(f) ENFORCEMENT.—Regulations promulgated 

7 under this section may be enforced pursuant to section 

8 113 with respect to any person that— 

9 ‘‘(1) fails to submit a report under this section; 

10 or 

11 ‘‘(2) otherwise fails to comply with those regu12 lations. 

13 ‘‘SEC. 710. NATIONAL ACADEMY OF SCIENCES REPORT. 

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

15 date of enactment of this title, and every 2 years there16 after, the Academy, acting in coordination with the Na17 tional Research Council, shall submit to the Administrator 

18 and Congress a report that assesses— 

19 ‘‘(1) the probability of avoiding dangerous an20 thropogenic interference with the climate system; 

21 and 

22 ‘‘(2) the progress made by the United States as 

23 of the date of the report to avoid that interference. 

24 ‘‘(b) CONTENTS.—A report submitted under sub25 section (a) shall— 


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1 ‘‘(1) evaluate whether the emission reduction 

2 targets promulgated pursuant to section 702(b)(1) 

3 are, after taking into account the actions of the 

4 international community, likely to be sufficient to 

5 avoid dangerous climate change; 

6 ‘‘(2) include an assessment of the occurrence, 

7 or probability of occurrence, of— 

8 ‘‘(A) a concentration of atmospheric global 

9 warming pollution of greater than 450 carbon 

10 dioxide equivalent parts per million; 

11 ‘‘(B) a global mean surface temperature 

12 increase of greater than 2 degrees Celsius (3.6 

13 degrees Fahrenheit) from preindustrial levels; 

14 ‘‘(C) a substantial slowing of the Atlantic 

15 thermohaline circulation; 

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

17 ‘‘(E) an ice-free Arctic Ocean in the sum18 mer; 

19 ‘‘(F) a decrease in the area of permafrost 

20 to a level less than 50 percent of the area of 

21 permafrost in existence in 2000; 

22 ‘‘(G) a loss of more than 40 percent of the 

23 coverage of coral reefs in the world because of 

24 increased ocean temperature or acidity; and 


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1 ‘‘(H) any other indicator of significant 

2 global warming, as determined by the Academy; 

3 ‘‘(3) if the Academy concludes that the emission 

4 reduction targets promulgated pursuant to section 

5 702(b)(1) are not likely to be sufficient to avoid 

6 dangerous climate change, or that any event speci7 fied in paragraph (2) has occurred or is likely to 

8 occur— 

9 ‘‘(A) identify the necessary level of further 

10 reductions in atmospheric global warming pollu11 tion concentrations; and 

12 ‘‘(B) recommend additional actions by the 

13 United States and the international community 

14 to further reduce atmospheric concentrations of 

15 global warming pollution; and 

16 ‘‘(4) if the Academy concludes that an emission 

17 reduction target described in section 702(b)(1) can18 not be achieved due to technological infeasibility, in19 clude a notification of that determination. 

20 ‘‘SEC. 711. ADDITIONAL AUTHORITY TO REGULATE EMIS21 SIONS OF GLOBAL WARMING POLLUTANTS. 

22 ‘‘The authority of the Administrator under this title 

23 shall be in addition to the authority of the Administrator 

24 to regulate emissions of global warming pollutants pursuVerDate Aug 31 2005 03:49 Feb 14, 2007 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S485.IS S485

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1 ant to any other provision of law in effect as of the date 

2 of enactment of this title.’’. 

3 SEC. 102. BIOFUELS INFRASTRUCTURE. 

4 (a) RENEWABLE FUEL PROGRAM.—Section 

5 211(o)(2) of the Clean Air Act (42 U.S.C. 7545(o)(2)) is 

6 amended by striking subparagraph (B) and inserting the 

7 following: 

8 ‘‘(B) APPLICABLE VOLUME.— 

9 ‘‘(i) IN GENERAL.—For the purpose 

10 of subparagraph (A), the applicable volume 

11 for calendar year 2010 and each calendar 

12 year thereafter shall be determined, by 

13 rule, by the Administrator, in consultation 

14 with the Secretary of Agriculture and the 

15 Secretary of Energy, in a manner that en16 sures, to the maximum extent practicable, 

17 that— 

18 ‘‘(I) the requirements described 

19 in clause (ii) for specified calendar 

20 years are met; and 

21 ‘‘(II) the applicable volume for 

22 each calendar year not specified in 

23 clause (ii) is determined on an annual 

24 basis. 


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1 ‘‘(ii) REQUIREMENTS.—The require2 ments referred to in clause (i) are— 

3 ‘‘(I) for calendar year 2010, at 

4 least 10,000,000,000 gallons of re5 newable fuel; 

6 ‘‘(II) for calendar year 2020, at 

7 least 30,000,000,000 gallons of re8 newable fuel; and 

9 ‘‘(III) for calendar year 2030, at 

10 least 60,000,000,000 gallons of re11 newable fuel.’’. 

12 (b) INSTALLATION OF E–85 FUEL PUMPS BY MAJOR

13 OIL COMPANIES AT OWNED STATIONS AND BRANDED

14 STATIONS.—Section 211(o) of the Clean Air Act (42 

15 U.S.C. 7545(o)) is amended by adding at the end the fol16 lowing: 

17 ‘‘(11) INSTALLATION OF E–85 FUEL PUMPS BY

18 MAJOR OIL COMPANIES AT OWNED STATIONS AND

19 BRANDED STATIONS.— 

20 ‘‘(A) DEFINITIONS.—In this paragraph: 

21 ‘‘(i) E–85 FUEL.—The term ‘E–85 

22 fuel’ means a blend of gasoline approxi23 mately 85 percent of the content of which 

24 is derived from ethanol produced in the 

25 United States. 


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1 ‘‘(ii) MAJOR OIL COMPANY.—The 

2 term ‘major oil company’ means any per3 son that, individually or together with any 

4 other person with respect to which the per5 son has an affiliate relationship or signifi6 cant ownership interest, has not less than 

7 4,500 retail station outlets according to 

8 the latest publication of the Petroleum 

9 News Annual Factbook. 

10 ‘‘(iii) SECRETARY.—The term ‘Sec11 retary’ means the Secretary of Energy, 

12 acting in consultation with the Adminis13 trator and the Secretary of Agriculture. 

14 ‘‘(B) REGULATIONS.—The Secretary shall 

15 promulgate regulations to ensure, to the max16 imum extent practicable, that each major oil 

17 company that sells or introduces gasoline into 

18 commerce in the United States through wholly19 owned stations or branded stations installs or 

20 otherwise makes available 1 or more pumps 

21 that dispense E–85 fuel (including any other 

22 equipment necessary, such as including tanks, 

23 to ensure that the pumps function properly) at 

24 not less than the applicable percentage of the 

25 wholly-owned stations and the branded stations 


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1 of the major oil company specified in subpara2 graph (C). 

3 ‘‘(C) APPLICABLE PERCENTAGE.—For the 

4 purpose of subparagraph (B), the applicable 

5 percentage of the wholly-owned stations and the 

6 branded stations shall be determined in accord7 ance with the following table: 

Applicable percentage of 

wholly-owned stations and 

‘‘Calendar year: branded stations (percent): 

2008 ................................................................................................... 5

2009 ................................................................................................... 10

2010 ................................................................................................... 15

2011 ................................................................................................... 20

2012 ................................................................................................... 25

2013 ................................................................................................... 30

2014 ................................................................................................... 35

2015 ................................................................................................... 40

2016 ................................................................................................... 45

2017 and each calendar year thereafter ............................................ 50. 

8 ‘‘(D) GEOGRAPHIC DISTRIBUTION.— 

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

10 (ii), in promulgating regulations under 

11 subparagraph (B), the Secretary shall en12 sure that each major oil company described 

13 in subparagraph (B) installs or otherwise 

14 makes available 1 or more pumps that dis15 pense E–85 fuel at not less than a min16 imum percentage (specified in the regula17 tions) of the wholly-owned stations and the 

18 branded stations of the major oil company 

19 in each State. 


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1 ‘‘(ii) REQUIREMENT.—In specifying 

2 the minimum percentage under clause (i), 

3 the Secretary shall ensure that each major 

4 oil company installs or otherwise makes 

5 available 1 or more pumps described in 

6 that clause in each State in which the 

7 major oil company operates. 

8 ‘‘(E) FINANCIAL RESPONSIBILITY.—In 

9 promulgating regulations under subparagraph 

10 (B), the Secretary shall ensure that each major 

11 oil company described in that subparagraph as12 sumes full financial responsibility for the costs 

13 of installing or otherwise making available the 

14 pumps described in that subparagraph and any 

15 other equipment necessary (including tanks) to 

16 ensure that the pumps function properly. 

17 ‘‘(F) PRODUCTION CREDITS FOR EXCEED18 ING E–85 FUEL PUMPS INSTALLATION REQUIRE19 MENT.— 

20 ‘‘(i) EARNING AND PERIOD FOR AP21 PLYING CREDITS.—If the percentage of the 

22 wholly-owned stations and the branded sta23 tions of a major oil company at which the 

24 major oil company installs E–85 fuel 

25 pumps in a particular calendar year exVerDate Aug 31 2005 03:49 Feb 14, 2007 Jkt 059200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S485.IS S485

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1 ceeds the percentage required under sub2 paragraph (C), the major oil company 

3 earns credits under this paragraph, which 

4 may be applied to any of the 3 consecutive 

5 calendar years immediately after the cal6 endar year for which the credits are 

7 earned. 

8 ‘‘(ii) TRADING CREDITS.—Subject to 

9 clause (iii), a major oil company that has 

10 earned credits under clause (i) may sell 

11 credits to another major oil company to en12 able the purchaser to meet the requirement 

13 under subparagraph (C). 

14 ‘‘(iii) EXCEPTION.—A major oil com15 pany may not use credits purchased under 

16 clause (ii) to fulfill the geographic distribu17 tion requirement in subparagraph (D).’’. 


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1 TITLE II—TAX INCENTIVES FOR 

2 ADVANCED TECHNOLOGY VE3 HICLES 

4 Subtitle A—Providing Consumers 

5 With Additional Advanced Tech6 nology Vehicle Purchase Incen7 tives 

8 SEC. 201. EXPANSION AND EXTENSION OF ALTERNATIVE 

9 MOTOR VEHICLE CREDIT. 

10 (a) INCREASES IN CREDIT.— 

11 (1) NEW QUALIFIED FUEL CELL MOTOR VEHI12 CLE.—Subsection (b) of section 30B of the Internal 

13 Revenue Code of 1986 (relating to new qualified fuel 

14 cell motor vehicle credit) is amended— 

15 (A) in paragraph (1)— 

16 (i) by striking ‘‘$8,000 ($4,000’’ in 

17 subparagraph (A) and inserting ‘‘$16,000 

18 ($8,000’’; 

19 (ii) by striking ‘‘$10,000’’ in subpara20 graph (B) and inserting ‘‘$20,000’’; 

21 (iii) by striking ‘‘$20,000’’ in sub22 paragraph (C) and inserting ‘‘$40,000’’; 

23 and 

24 (iv) by striking ‘‘$40,000’’ in subpara25 graph (D) and inserting ‘‘$80,000’’; and 


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1 (B) in paragraph (2)(A)— 

2 (i) by striking ‘‘$1,000’’ in clause (i) 

3 and inserting ‘‘$2,000’’; 

4 (ii) by striking ‘‘$1,500’’ in clause (ii) 

5 and inserting ‘‘$3,000’’; 

6 (iii) by striking ‘‘$2,000’’ in clause 

7 (iii) and inserting ‘‘$4,000’’; 

8 (iv) by striking ‘‘$2,500’’ in clause 

9 (iv) and inserting ‘‘$5,000’’; 

10 (v) by striking ‘‘$3,000’’ in clause (v) 

11 and inserting ‘‘$6,000’’; 

12 (vi) by striking ‘‘$3,500’’ in clause 

13 (vi) and inserting ‘‘$7,000’’; and 

14 (vii) by striking ‘‘$4,000’’ in clause 

15 (vii) and inserting ‘‘$8,000’’. 

16 (2) NEW ADVANCED LEAN BURN TECHNOLOGY

17 MOTOR VEHICLE.— 

18 (A) FUEL ECONOMY.—The table in clause 

19 (i) of section 30B(c)(2)(A) of such Code (relat20 ing to fuel economy) is amended— 

21 (i) by striking ‘‘$400’’ and inserting 

22 ‘‘$800’’; 

23 (ii) by striking ‘‘$800’’ and inserting 

24 ‘‘$1,600’’; 


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1 (iii) by striking ‘‘$1,200’’ and insert2 ing ‘‘$2,400’’; 

3 (iv) by striking ‘‘$1,600’’ and insert4 ing ‘‘$3,200’’; 

5 (v) by striking ‘‘$2,000’’ and inserting 

6 ‘‘$4,000’’; and 

7 (vi) by striking ‘‘$2,400’’ and insert8 ing ‘‘$4,800’’. 

9 (B) CONSERVATION.—The table in sub10 paragraph (B) of section 30B(c)(2) of such 

11 Code (relating to conservation credit) is amend12 ed— 

13 (i) by striking ‘‘$250’’ and inserting 

14 ‘‘$500’’; 

15 (ii) by striking ‘‘$500’’ and inserting 

16 ‘‘$1,000’’; 

17 (iii) by striking ‘‘$750’’ and inserting 

18 ‘‘$1,500’’; and 

19 (iv) by striking ‘‘$1,000’’ and insert20 ing ‘‘$2,000’’. 

21 (b) EXPANSION OF NUMBER OF NEW QUALIFIED

22 HYBRID AND ADVANCED LEAN BURN TECHNOLOGY VE23 HICLES ELIGIBLE FOR CREDIT.—Paragraph (2) of section 

24 30B(f) of the Internal Revenue Code of 1986 (relating to 

25 phaseout) is amended— 


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1 (1) by striking ‘‘the period’’ and inserting ‘‘any 

2 period’’, 

3 (2) by striking ‘‘United States after December 

4 31, 2005, is at least 60,000’’ and inserting ‘‘United 

5 States is— 

6 ‘‘(A) after December 31, 2005, at least 

7 60,000, and 

8 ‘‘(B) after December 31, 2008, and before 

9 January 1, 2013, 60,000.’’, and 

10 (3) by adding at the end the following new sen11 tence: ‘‘For purposes of the preceding sentence, the 

12 Secretary may extend the time period through 2014 

13 if the Secretary determines that market conditions 

14 merit such action.’’. 

15 (c) EXTENSION.—Section 30B(j) of the Internal Rev16 enue Code of 1986 (relating to termination) is amended— 

17 (1) by striking ‘‘December 31, 2010’’ both 

18 places it appears and inserting ‘‘December 31, 

19 2014’’, and 

20 (2) by striking ‘‘December 31, 2009’’ in para21 graph (3) and inserting ‘‘December 31, 2014’’. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to property placed in service after 

24 the date of the enactment of this Act, in taxable years 

25 ending after such date. 


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1 SEC. 202. PLUG-IN HYBRID MOTOR VEHICLE TAX CREDIT. 

2 (a) IN GENERAL.—Section 30B of the Internal Rev3 enue Code of 1986 is amended by redesignating sub4 sections (i) and (j) as subsections (j) and (k), respectively, 

5 and by inserting after subsection (h) the following new 

6 subsection: 

7 ‘‘(i) NEW PLUG-IN HYBRID MOTOR VEHICLE CRED8 IT.— 

9 ‘‘(1) IN GENERAL.—For purposes of subsection 

10 (a), the new plug-in hybrid motor vehicle credit de11 termined under this subsection with respect to a new 

12 qualified plug-in hybrid motor vehicle or new quali13 fied flexible-fuel plug-in hybrid motor vehicle placed 

14 in service by the taxpayer during the taxable year 

15 is— 

16 ‘‘(A) $3,000, if such vehicle is a new quali17 fied plug-in hybrid motor vehicle with a gross 

18 vehicle weight rating of not more than 8,500 

19 pounds, and 

20 ‘‘(B) $3,150, if such vehicle is a new quali21 fied flexible-fuel plug-in hybrid motor vehicle 

22 with a gross vehicle weight rating of not more 

23 than 8,500 pounds. 

24 ‘‘(2) INCREASE FOR FUEL EFFICIENCY.— 

25 ‘‘(A) IN GENERAL.—The amount deter26 mined under paragraph (1)(A) with respect to 


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1 a new qualified plug-in hybrid motor vehicle or 

2 new qualified flexible-fuel plug-in hybrid motor 

3 vehicle which is a passenger automobile or light 

4 truck shall be increased by— 

5 ‘‘(i) $1,000 if such vehicle achieves at 

6 least 250 percent but less than 250 per7 cent of the 2002 model year city fuel econ8 omy, 

9 ‘‘(ii) $1,500 if such vehicle achieves at 

10 least 250 percent but less than 275 per11 cent of the 2002 model year city fuel econ12 omy, 

13 ‘‘(iii) $2,000 if such vehicle achieves 

14 at least 275 percent but less than 300 per15 cent of the 2002 model year city fuel econ16 omy, 

17 ‘‘(iv) $2,500 if such vehicle achieves 

18 at least 300 percent but less than 325 per19 cent of the 2002 model year city fuel econ20 omy, and 

21 ‘‘(v) $3,000 if such vehicle achieves at 

22 least 325 percent of the 2002 model year 

23 city fuel economy, 

24 ‘‘(B) 2002 MODEL YEAR CITY FUEL ECON25 OMY.—For purposes of subparagraph (A), the 


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1 2002 model year city fuel economy with respect 

2 to a vehicle shall be determined using the tables 

3 provided in subsection (b)(2)(B). 

4 ‘‘(3) NEW QUALIFIED PLUG-IN HYBRID MOTOR

5 VEHICLE.—For purposes of this subsection, the term 

6 ‘new qualified plug-in hybrid motor vehicle’ means a 

7 motor vehicle— 

8 ‘‘(A) which is propelled by an internal 

9 combustion engine or heat engine using — 

10 ‘‘(i) any combustible fuel, 

11 ‘‘(ii) an on-board, rechargeable stor12 age device, and 

13 ‘‘(iii) a means of using an off-board 

14 source of electricity, 

15 ‘‘(B) which, in the case of a passenger 

16 automobile or light truck, has received on or 

17 after the date of the enactment of this section 

18 a certificate that such vehicle meets or exceeds 

19 the Bin 5 Tier II emission level established in 

20 regulations prescribed by the Administrator of 

21 the Environmental Protection Agency under 

22 section 202(i) of the Clean Air Act for that 

23 make and model year vehicle, 

24 ‘‘(C) the original use of which commences 

25 with the taxpayer, 


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1 ‘‘(D) which is acquired for use or lease by 

2 the taxpayer and not for resale, and 

3 ‘‘(E) which is made by a manufacturer. 

4 ‘‘(4) NEW QUALIFIED FLEXIBLE-FUEL PLUG-IN

5 HYBRID MOTOR VEHICLE.—For purposes of this 

6 subsection, the term ‘new qualified flexible-fuel plug7 in hybrid motor vehicle’ means a motor vehicle— 

8 ‘‘(A) which is propelled by an internal 

9 combustion engine or heat engine using— 

10 ‘‘(i) an on-board, rechargeable storage 

11 device, and 

12 ‘‘(ii) a means of using an off-board 

13 source of electricity, 

14 ‘‘(B) which is warrantied by its manufac15 turer to operate on any combination of gasoline 

16 and a fuel blend containing up to 85 percent 

17 ethanol and 15 percent gasoline by volume 

18 (E85), 

19 ‘‘(C) which, in the case of a passenger 

20 automobile or light truck, has received on or 

21 after the date of the enactment of this section 

22 a certificate that such vehicle meets or exceeds 

23 the Bin 5 Tier II emission level established in 

24 regulations prescribed by the Administrator of 

25 the Environmental Protection Agency under 


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1 section 202(i) of the Clean Air Act for that 

2 make and model year vehicle, 

3 ‘‘(D) the original use of which commences 

4 with the taxpayer, 

5 ‘‘(E) which is acquired for use or lease by 

6 the taxpayer and not for resale, and 

7 ‘‘(F) which is made by a manufacturer.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 30B(a) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘and’’ at the 

11 end of paragraph (3), by striking the period at the 

12 end of paragraph (4) and inserting ‘‘, and’’, and by 

13 adding at the end the following new paragraph: 

14 ‘‘(5) the new plug-in hybrid motor vehicle credit 

15 determined under subsection (i).’’. 

16 (2) Section 30B(k)(2) of such Code, as redesig17 nated by subsection (a), is amended by striking ‘‘or’’ 

18 and inserting a comma and by inserting ‘‘, a new 

19 qualified plug-in hybrid motor vehicle (as described 

20 in subsection (i)(3)), or a new qualified flexible-fuel 

21 plug-in hybrid motor vehicle (as described in sub22 section (i)(4))’’ after ‘‘subsection (d)(2)(A))’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to property placed in service after 


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1 the date of the enactment of this Act, in taxable years 

2 ending after such date. 

3 Subtitle B—Advanced Technology 

4 Motor Vehicles Manufacturing 

5 Credit 

6 SEC. 211. ADVANCED TECHNOLOGY MOTOR VEHICLES MAN7 UFACTURING CREDIT. 

8 (a) IN GENERAL.—Subpart B of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 (relating to foreign tax credit, etc.) is amended by 

11 adding at the end the following new section: 

12 ‘‘SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES 

13 MANUFACTURING CREDIT. 

14 ‘‘(a) CREDIT ALLOWED.—There shall be allowed as 

15 a credit against the tax imposed by this chapter for the 

16 taxable year an amount equal to 35 percent of the quali17 fied investment of an eligible taxpayer for such taxable 

18 year. 

19 ‘‘(b) QUALIFIED INVESTMENT.—For purposes of this 

20 section— 

21 ‘‘(1) IN GENERAL.—The term ‘qualified invest22 ment’ means, with respect to any taxable year, the 

23 sum of— 

24 ‘‘(A) the costs paid or incurred by the eli25 gible taxpayer during such taxable year— 


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1 ‘‘(i) to re-equip, expand, or establish 

2 any manufacturing facility of the eligible 

3 taxpayer to produce advanced technology 

4 motor vehicles or to produce eligible com5 ponents, and 

6 ‘‘(ii) for qualified research (as defined 

7 in section 41(d)) related to advanced tech8 nology motor vehicles and eligible compo9 nents, and 

10 ‘‘(B) qualified engineering integration 

11 costs. 

12 ‘‘(2) ATTRIBUTION RULES.—For purposes of 

13 paragraph (1)(A)(i), in the case of a manufacturing 

14 facility of the eligible taxpayer which produces both 

15 advanced technology motor vehicles and other motor 

16 vehicles, or eligible components and other compo17 nents, only the amount paid or incurred for the pro18 duction of advanced technology motor vehicles and 

19 eligible components shall be taken into account. 

20 ‘‘(c) ELIGIBLE TAXPAYER.—For purposes of this sec21 tion, the term ‘eligible taxpayer’ means any taxpayer if 

22 more than 50 percent of its gross receipts for the taxable 

23 year is derived from the manufacture of motor vehicles 

24 or any component parts of such vehicles. 

25 ‘‘(d) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) ADVANCED TECHNOLOGY MOTOR VEHI2 CLE.—The term ‘advanced technology motor vehicle’ 

3 means— 

4 ‘‘(A) any new qualified fuel cell motor vehi5 cle (as defined in section 30B(b)(3)), 

6 ‘‘(B) any new advanced lean burn tech7 nology motor vehicle (as defined in section 

8 30B(c)(3)), 

9 ‘‘(C) any new qualified hybrid motor vehi10 cle (as defined in section 30B(d)(3)(A) and de11 termined without regard to any gross vehicle 

12 weight rating), 

13 ‘‘(D) any new qualified alternative motor 

14 fuel vehicle (as defined in section 30B(e)(4)), 

15 and 

16 ‘‘(E) any new qualified plug-in hybrid 

17 motor vehicle (as defined in section 30B(i)(3)) 

18 or any new qualified flexible-fuel plug-in hybrid 

19 motor vehicle (as defined in section 30B(i)(4)). 

20 ‘‘(2) ELIGIBLE COMPONENTS.—The term ‘eligi21 ble component’ means any component inherent to 

22 any advanced technology motor vehicle but not in23 herent to a motor vehicle which is not an advanced 

24 technology motor vehicle, including— 


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1 ‘‘(A) with respect to any gasoline or diesel2 electric new qualified hybrid motor vehicle, 

3 any— 

4 ‘‘(i) electric motor or generator, 

5 ‘‘(ii) power split device, 

6 ‘‘(iii) power control unit, 

7 ‘‘(iv) power controls, 

8 ‘‘(v) integrated starter generator, or 

9 ‘‘(vi) battery, 

10 ‘‘(B) with respect to any hydraulic new 

11 qualified hybrid motor vehicle, any— 

12 ‘‘(i) hydraulic accumulator vessel, 

13 ‘‘(ii) hydraulic pump, or 

14 ‘‘(iii) hydraulic pump-motor assembly, 

15 ‘‘(C) with respect to any new advanced 

16 lean burn technology motor vehicle, any— 

17 ‘‘(i) diesel engine, 

18 ‘‘(ii) turbocharger, 

19 ‘‘(iii) fuel injection system, or 

20 ‘‘(iv) after-treatment system, such as 

21 a particle filter or NOX absorber, and 

22 ‘‘(D) with respect to any advanced tech23 nology motor vehicle, any other component sub24 mitted for approval by the Secretary. 


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1 ‘‘(3) QUALIFIED ENGINEERING INTEGRATION

2 COSTS.—For purposes of subsection (b)(1)(B), the 

3 term ‘qualified engineering integration costs’ means, 

4 with respect to any advanced technology motor vehi5 cle, costs incurred prior to the market introduction 

6 of such motor vehicle for engineering tasks related 

7 to— 

8 ‘‘(A) establishing functional, structural, 

9 and performance requirements for components 

10 and subsystems to meet overall vehicle objec11 tives for a specific application, 

12 ‘‘(B) designing interfaces for components 

13 and subsystems with mating systems within a 

14 specific vehicle application, 

15 ‘‘(C) designing cost effective, efficient, and 

16 reliable manufacturing processes to produce 

17 components and subsystems for a specific vehi18 cle application, and 

19 ‘‘(D) validating functionality and perform20 ance of components and subsystems for a spe21 cific vehicle application. 

22 ‘‘(4) MOTOR VEHICLE.—The term ‘motor vehi23 cle’ has the meaning given such term by section 

24 30(c)(2). 

25 ‘‘(e) LIMITATION BASED ON AMOUNT OF TAX.— 


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1 ‘‘(1) IN GENERAL.—The credit allowed under 

2 subsection (a) for any taxable year shall not exceed 

3 the sum of— 

4 ‘‘(A) the taxpayer’s regular tax liability (as 

5 defined in section 26(b)) for the taxable year, 

6 plus 

7 ‘‘(B) the tax imposed under section 55 for 

8 the taxable year. 

9 ‘‘(2) CARRYOVER OF UNUSED CREDIT

10 AMOUNTS.— 

11 ‘‘(A) IN GENERAL.—If the credit allowable 

12 under subsection (a) for a taxable year exceeds 

13 the limitation under paragraph (1) for such tax14 able year, such excess shall be allowed— 

15 ‘‘(i) as a credit carryback to each of 

16 the 13 taxable years preceding such year, 

17 and 

18 ‘‘(ii) as a credit carryforward to each 

19 of the 20 taxable years following such year. 

20 ‘‘(B) AMOUNT CARRIED TO EACH YEAR.— 

21 For purposes of this paragraph, rules similar to 

22 the rules of section 39(a)(2) shall apply. 

23 ‘‘(f) SPECIAL RULES.— 

24 ‘‘(1) REDUCTION IN BASIS.—For purposes of 

25 this subtitle, if a credit is allowed under this section 


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1 for any expenditure with respect to any property, the 

2 increase in the basis of such property which would 

3 (but for this paragraph) result from such expendi4 ture shall be reduced by the amount of the credit so 

5 allowed. 

6 ‘‘(2) INVESTMENTS AND PROPERTY OUTSIDE

7 THE UNITED STATES.—No credit shall be allowed 

8 under subsection (a) with respect to— 

9 ‘‘(A) any manufacturing facility which is 

10 located outside the United States, and 

11 ‘‘(B) any engineering integration or re12 search and development conducted outside the 

13 United States. 

14 ‘‘(3) AGGREGATION OF EXPENDITURES; ALLO15 CATIONS.—For purposes of this section, rules simi16 lar to the rules of paragraphs (1) and (2) of section 

17 41(f) shall apply. 

18 ‘‘(4) RECAPTURE.—The Secretary shall, by reg19 ulation, provide for recapturing the benefit of any 

20 credit allowable under subsection (a) with respect to 

21 any manufacturing facility which ceases to produce 

22 advanced technology motor vehicles or eligible com23 ponents. 

24 ‘‘(5) PUBLIC STATEMENT.— 


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1 ‘‘(A) IN GENERAL.—No credit shall be al2 lowed under subsection (a) for any taxable year 

3 unless the eligible taxpayer makes publicly 

4 available a statement describing the activities of 

5 the eligible taxpayer for which the credit is al6 lowed and the public benefits of such activities, 

7 including the estimated amount of any reduc8 tion in national oil consumption in future years 

9 as a result of such activities. 

10 ‘‘(B) TIME FOR PUBLICATION.—The state11 ment required under subparagraph (A) shall be 

12 made available not later than 90 days after the 

13 end of the taxable year for which the credit 

14 under subsection (a) is allowed and shall be in 

15 such form as the Secretary shall prescribe. 

16 ‘‘(6) NO DOUBLE BENEFIT.— 

17 ‘‘(A) COORDINATION WITH OTHER DEDUC18 TIONS AND CREDITS.—Except as provided in 

19 subparagraph (B), the amount of any deduction 

20 or other credit allowable under this chapter for 

21 any cost taken into account in determining the 

22 amount of the credit under subsection (a) shall 

23 be reduced by the amount of such credit attrib24 utable to such cost. 


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1 ‘‘(B) RESEARCH AND DEVELOPMENT

2 COSTS.— 

3 ‘‘(i) IN GENERAL.—Except as pro4 vided in clause (ii), any amount described 

5 in subsection (b)(1)(A)(ii) taken into ac6 count in determining the amount of the 

7 credit under subsection (a) for any taxable 

8 year shall not be taken into account for 

9 purposes of determining the credit under 

10 section 41 for such taxable year. 

11 ‘‘(ii) COSTS TAKEN INTO ACCOUNT IN

12 DETERMINING BASE PERIOD RESEARCH

13 EXPENSES.—Any amounts described in 

14 subsection (b)(1)(A)(ii) taken into account 

15 in determining the amount of the credit 

16 under subsection (a) for any taxable year 

17 which are qualified research expenses 

18 (within the meaning of section 41(b)) shall 

19 be taken into account in determining base 

20 period research expenses for purposes of 

21 applying section 41 to subsequent taxable 

22 years. 

23 ‘‘(g) ELECTION NOT TO TAKE CREDIT.—No credit 

24 shall be allowed under subsection (a) for any property if 


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1 the taxpayer elects not to have this section apply to such 

2 property. 

3 ‘‘(h) REGULATIONS.—The Secretary shall prescribe 

4 such regulations as necessary to carry out the provisions 

5 of this section.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Section 1016(a) of the Internal Revenue 

8 Code of 1986 is amended by striking ‘‘and’’ at the 

9 end of paragraph (36), by striking the period at the 

10 end of paragraph (37) and inserting ‘‘, and’’, and by 

11 adding at the end the following new paragraph: 

12 ‘‘(38) to the extent provided in section 

13 30D(f)(1).’’. 

14 (2) Section 6501(m) of such Code is amended 

15 by inserting ‘‘30D(g),’’ after ‘‘30C(e)(5),’’. 

16 (3) The table of sections for subpart B of part 

17 IV of subchapter A of chapter 1 of such Code is 

18 amended by inserting after the item relating to sec19 tion 30C the following new item: 

‘‘Sec. 30D. Advanced technology motor vehicles manufacturing credit.’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to amounts incurred in taxable 

22 years beginning after December 31, 1993. 


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1 TITLE III—INTERNATIONAL AND 

2 CORPORATE OBLIGATIONS 

3 SEC. 301. INTERNATIONAL NEGOTIATIONS AND TRADE RE4 STRICTIONS. 

5 It is the sense of the Senate that the United States 

6 should act to reduce the health, environmental, economic, 

7 and national security risks posed by global climate change, 

8 and foster sustained economic growth through a new gen9 eration of technologies, by— 

10 (1) participating in negotiations under the 

11 United Nations Framework Convention on Climate 

12 Change, done at New York May 9, 1992, and lead13 ing efforts in other international forums, with the 

14 objective of securing participation of the United 

15 States in agreements that— 

16 (A) advance and protect the economic and 

17 national security interests of the United States; 

18 (B) establish mitigation commitments by 

19 all countries that are major emitters of global 

20 warming pollution, in accordance with the prin21 ciple of ‘‘common but differentiated responsibil22 ities’’; 

23 (C) establish flexible international mecha24 nisms to minimize the cost of efforts by partici25 pating countries; and 


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1 (D) achieve a significant long-term reduc2 tion in global warming pollution emissions; and 

3 (2) establishing a bipartisan Senate observation 

4 group, the members of which should be designated 

5 by the Chairman and Ranking Member of the Com6 mittee on Foreign Relations of the Senate, and 

7 which should include the Chairman and Ranking 

8 Member of the Committee on Environment and Pub9 lic Works of the Senate— 

10 (A) to monitor any international negotia11 tions on climate change; and 

12 (B) to ensure that the advice and consent 

13 function of the Senate is exercised in a manner 

14 to facilitate timely consideration of any applica15 ble treaty submitted to the Senate. 

16 SEC. 302. CORPORATE ENVIRONMENTAL DISCLOSURE OF 

17 CLIMATE CHANGE RISKS. 

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

19 date of enactment of this Act, the Securities and Ex20 change Commission (referred to in this section as the 

21 ‘‘Commission’’) shall promulgate regulations in accord22 ance with section 13 of the Securities Exchange Act of 

23 1934 (15 U.S.C. 78m) directing each issuer of securities 

24 under that Act with a market capitalization of more than 

25 $1,000,000,000, regardless of whether the issuer is 


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1 publicly- or privately-held, to inform securities investors 

2 of the risks relating to— 

3 (1) the financial exposure of the issuer because 

4 of the net global warming pollution emissions of the 

5 issuer; and 

6 (2) the potential economic impacts of global 

7 warming on the interests of the issuer. 

8 (b) UNIFORM FORMAT FOR DISCLOSURE.—In car9 rying out subsection (a), the Commission shall enter into 

10 an agreement with the Financial Accounting Standards 

11 Board, or another appropriate organization that estab12 lishes voluntary standards, to develop a uniform format 

13 for disclosing to securities investors information on the 

14 risks described in subsection (a). 

15 (c) INTERIM INTERPRETIVE RELEASE.— 

16 (1) IN GENERAL.—As soon as practicable after 

17 the date of enactment of this Act, the Commission 

18 shall issue an interpretive release clarifying that 

19 under items 101 and 303 of Regulation S–K of the 

20 Commission under part 229 of title 17, Code of Fed21 eral Regulations (as in effect on the date of enact22 ment of this Act)— 

23 (A) the commitments of the United States 

24 to reduce emissions of global warming pollution 

25 under the United Nations Framework ConvenVerDate Aug 31 2005 03:49 Feb 14, 2007 Jkt 059200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\S485.IS S485

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1 tion on Climate Change, done at New York on 

2 May 9, 1992, are considered to be a material 

3 effect; and 

4 (B) global warming constitutes a known 

5 trend. 

6 (2) PERIOD OF EFFECTIVENESS.—The inter7 pretive release issued under paragraph (1) shall re8 main in effect until the effective date of the final 

9 regulations promulgated under subsection (a). 

10 TITLE IV—NATIONAL CLIMATE 

11 CHANGE VULNERABILITY 

12 AND RESILIENCE PROGRAM 

13 SEC. 401. DEFINITIONS. 

14 In this title: 

15 (1) OFFICE.—The term ‘‘Office’’ means the Of16 fice of Climate Change Vulnerability and Resilience 

17 Research established under section 402(c). 

18 (2) PROGRAM.—The term ‘‘Program’’ means 

19 the National Climate Change Vulnerability and Re20 silience Program established under section 402(a). 

21 (3) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Commerce. 


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1 SEC. 402. NATIONAL CLIMATE CHANGE VULNERABILITY 

2 AND RESILIENCE PROGRAM. 

3 (a) ESTABLISHMENT.—The Secretary shall establish 

4 a National Climate Change Vulnerability and Resilience 

5 Program to evaluate and make recommendations about 

6 local, regional, and national vulnerability and resilience to 

7 impacts relating to longer-term climatic changes and 

8 shorter-term climatic variations, including changes and 

9 variations resulting from human activities. 

10 (b) CONSULTATION.—In designing the Program, the 

11 Secretary shall consult with Federal agencies participating 

12 in the United States Global Change Research Program es13 tablished under section 103 of the Global Change Re14 search Act of 1990 (15 U.S.C. 2933) and any other appro15 priate Federal, State, or local agency. 

16 (c) OFFICE OF CLIMATE CHANGE VULNERABILITY

17 AND RESILIENCE RESEARCH.—The Secretary shall estab18 lish an Office of Climate Change Vulnerability and Resil19 ience Research within the Department of Commerce, 

20 which shall— 

21 (1) be responsible for managing the Program; 

22 and 

23 (2) in accordance with the design of the Pro24 gram, coordinate climatic change and climatic vari25 ation vulnerability and resilience research in the 

26 United States. 


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1 (d) VULNERABILITY ASSESSMENTS.—The Program 

2 shall include— 

3 (1) evaluations, based on historical data, cur4 rent observational data, and, where appropriate, 

5 available predictions, of local, State, regional, and 

6 national vulnerability to phenomena associated with 

7 climatic change and climatic variation, including— 

8 (A) severe weather events, such as severe 

9 thunderstorms, tornadoes, and hurricanes; 

10 (B) annual and interannual climate events, 

11 such as the El Nin ̃o Southern Oscillation and 

12 the North Atlantic Oscillation; 

13 (C) changes in sea level and shifts in the 

14 hydrological cycle; 

15 (D) natural hazards, including tsunamis, 

16 droughts, floods, and wildfires; and 

17 (E) alterations of ecological communities 

18 as a result of climatic change and climatic vari19 ation; and 

20 (2) the production of a vulnerability scorecard, 

21 in cooperation with State and local institutions in22 cluding university researchers and programs, that 

23 assesses the vulnerability and capacity of each State 

24 to respond to climatic change and climatic variation 

25 hazards. 


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1 (e) PREPAREDNESS RECOMMENDATIONS.—Not later 

2 than 2 years after the date of enactment of this Act, the 

3 Office shall submit to Congress a report that— 

4 (1) includes the vulnerability scorecards pro5 duced under subsection (d)(2); and 

6 (2) identifies, and recommends implementation 

7 and funding strategies for, short-term and long-term 

8 actions that may be taken at the local, State, re9 gional, or national level— 

10 (A) to minimize climatic change and cli11 matic variation threats to human life and prop12 erty; 

13 (B) to minimize negative economic impacts 

14 of climatic change and climatic variation; and 

15 (C) to improve resilience to climatic change 

16 and climatic variation hazards. 

17 (f) VULNERABILITY RESEARCH.—In addition to 

18 other responsibilities under this section, the Office shall— 

19 (1) apply the results of available vulnerability 

20 research to develop and improve criteria that meas21 ure resilience to climatic change and climatic vari22 ation hazards at the local, State, regional, and na23 tional levels; 


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1 (2) coordinate the implementation of short-term 

2 and long-term research programs based on the rec3 ommendations made under subsection (e)(2); 

4 (3) measure progress in increasing the capacity 

5 of each State to respond to climatic change and cli6 matic variation hazards, using the vulnerability 

7 scorecards produced under subsection (d)(2) as a 

8 benchmark; and 

9 (4) not less than annually, review and, if appro10 priate due to the availability of additional informa11 tion, update the vulnerability scorecards and the rec12 ommendations made under subsection (e)(2). 

13 (g) INFORMATION AND TECHNOLOGY DISSEMINA14 TION.—The Secretary shall— 

15 (1) make widely available appropriate informa16 tion, technologies, and products to assist local, 

17 State, regional, and national efforts to reduce loss of 

18 life and property due to climatic change and climatic 

19 variation; and 

20 (2) coordinate the dissemination of the informa21 tion, technologies, and products through all appro22 priate channels. 


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1 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to the Secretary to carry 

3 out this section $10,000,000. 

Æ 


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