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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 485 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Global Warming 
Reduction Act of 2007''.
    (b) Table of Contents.--The table of contents of 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.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the United States is a party to the United Nations 
        Framework Convention on Climate Change, done at New York on May 
        9, 1992, which has the objective of stabilizing global warming 
        pollution concentrations in the atmosphere at a level that 
        would prevent dangerous anthropogenic interference with the 
        climate system;
            (2) to achieve this objective, the increase in global mean 
        surface temperature should not exceed 2 degrees Celsius (3.6 
        degrees Fahrenheit) above preindustrial temperatures;
            (3) the risks associated with a temperature increase above 
        2 degrees Celsius (3.6 degrees Fahrenheit) are grave, including 
        the disintegration of the Greenland ice sheet, which, if melted 
        completely, would raise the global average sea level by 
        approximately 23 feet, devastating many of the coastal areas 
        and population centers of the world;
            (4) the Intergovernmental Panel on Climate Change projects 
        that, under a range of expected emissions trends, temperatures 
        will rise between 1.4 degrees Celsius to 5.8 degrees Celsius 
        (2.5 degrees Fahrenheit to 10.4 degrees Fahrenheit) by the end 
        of the century;
            (5) serious global warming impacts have already been 
        observed in the United States and worldwide, including--
                    (A) increases in heat waves and other extreme 
                weather events;
                    (B) a rise in sea levels;
                    (C) a retreat of glaciers and polar ice;
                    (D) a decline in mountain snowpacks;
                    (E) increased drought and wildfires;
                    (F) stronger hurricanes;
                    (G) ocean acidification;
                    (H) extensive coral bleaching;
                    (I) migrations and shifts in the yearly cycles of 
                plants and animals; and
                    (J) the spread of infectious diseases;
            (6) by 2050, scientists project that, under a mid-range 
        estimate of global warming, approximately 25 percent of animal 
        and plant species would be doomed to extinction;
            (7) decisive action is--
                    (A) needed to minimize the many dangers posed by 
                global warming; and
                    (B) critical since global warming pollutants can 
                persist in the atmosphere for more than a century;
            (8) reductions in emissions from current levels should 
        begin within a decade of the date of enactment of this Act to 
        preserve the ability to stabilize atmospheric global warming 
        pollution concentrations at levels likely to protect against a 
        temperature rise above 2 degrees Celsius (3.6 degrees 
        Fahrenheit);
            (9) while the United States has only 5 percent of the world 
        population, the United States--
                    (A) emits at least 20 percent of the total global 
                warming pollution emissions of the world; and
                    (B) needs to be a leader in addressing global 
                warming; and
            (10) existing energy efficiency and clean, renewable energy 
        technologies would reduce global warming pollution, while--
                    (A) saving consumers money;
                    (B) reducing the dependence of the United States on 
                oil;
                    (C) enhancing national security;
                    (D) cleaning the air; and
                    (E) protecting pristine places from drilling and 
                mining.

       TITLE I--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS

SEC. 101. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

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

     ``TITLE VII--COMPREHENSIVE GLOBAL WARMING POLLUTION 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.

``SEC. 701. DEFINITIONS.

    ``In this title:
            ``(1) Academy.--The term `Academy' means the National 
        Academy of Sciences.
            ``(2) Allowance.--The term `allowance' means an 
        authorization by the Administrator to emit--
                    ``(A) 1 metric ton of carbon dioxide; or
                    ``(B) in the case of a global warming pollutant 
                other than carbon dioxide, a carbon dioxide equivalent.
            ``(3) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means, for each global warming pollutant, the 
        quantity of the global warming pollutant that makes the same 
        contribution to global warming as 1 metric ton of carbon 
        dioxide, as determined by the Administrator.
            ``(4) Covered entity.--The term `covered entity' means any 
        individual or entity subject to the cap on emissions of global 
        warming pollutants imposed under section 703(a)(1), as 
        determined by the Administrator.
            ``(5) Facility.--The term `facility' means all buildings, 
        structures, or installations that are--
                    ``(A) located on 1 or more contiguous or adjacent 
                properties under common control of the same persons; 
                and
                    ``(B) located in the United States.
            ``(6) Fund.--The term `Fund' means the Climate Reinvestment 
        Fund established by section 703(g)(1).
            ``(7) Global warming pollutant.--The term `global warming 
        pollutant' means each of--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons;
                    ``(F) sulfur hexafluoride; and
                    ``(G) any other anthropogenically-emitted gas that 
                the Administrator, after notice and comment, determines 
                to contribute to global warming.
            ``(8) Global warming pollution.--The term `global warming 
        pollution' means any combination of 1 or more global warming 
        pollutants emitted into the ambient air or atmosphere.
            ``(9) Program.--The term `program' means the cap-and-trade 
        program established by the Administrator under section 703(a).

``SEC. 702. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

    ``(a) Goals.--
            ``(1) Emission reduction goal.--Congress declares that it 
        shall be the goal of the United States, acting in concert with 
        other countries that emit global warming pollutants, to achieve 
        a reduction in global warming pollutant emissions--
                    ``(A) to facilitate the achievement of an average 
                global atmospheric concentration of global warming 
                pollution that does not exceed 450 parts per million; 
                and
                    ``(B) beginning not later than calendar year 2010, 
                to reverse increases in global warming pollution 
                emissions so as to achieve, by not later than calendar 
                year 2050, a 65-percent reduction in global warming 
                pollution emissions in the United States (as compared 
                to those global warming pollution emissions for 
                calendar year 2000).
            ``(2) Additional goal.--In addition to the emission 
        reduction goal described in paragraph (1), Congress declares 
        that, in implementing this title, it shall be the goal of the 
        United States--
                    ``(A) to maximize public benefits and promote 
                economic growth;
                    ``(B) to mitigate the effect of any energy cost 
                increases to consumers, particularly low-income 
                consumers;
                    ``(C) to provide equitable transition assistance to 
                any employees and regions affected by a transition away 
                from the use of high carbon-emitting energy sources;
                    ``(D) to encourage research, development, and 
                commercial deployment of innovative technologies for 
                avoiding, reducing, or sequestering emissions of global 
                warming pollutants;
                    ``(E) to encourage reduced carbon emissions from, 
                and enhanced sequestration of, carbon in the forest and 
                agricultural sectors;
                    ``(F) to recognize and reward early reductions of 
                greenhouse gases; and
                    ``(G) to support activities, including providing 
                support for State activities, to protect against and 
                mitigate the impacts of climate change, including--
                            ``(i) the depletion of snowpack and water 
                        supplies;
                            ``(ii) droughts;
                            ``(iii) wildfires;
                            ``(iv) enhanced coastal erosion;
                            ``(v) increases in sea levels;
                            ``(vi) higher storm surges;
                            ``(vii) more intense precipitation events 
                        and hurricanes;
                            ``(viii) the spread of disease;
                            ``(ix) damage to fish and wildlife habitat;
                            ``(x) negative commercial effects (such as 
                        damage to the maple syrup and fishing 
                        industries); and
                            ``(xi) agricultural and forestry losses 
                        resulting from drought, disease, and insect 
                        infestations.
    ``(b) Regulations.--
            ``(1) Emission reduction targets.--In order to achieve the 
        goals described in subsection (a), not later than 2 years after 
        the date of enactment of this title, the Administrator shall 
        promulgate any regulations that are necessary to reduce the 
        aggregate net level of global warming pollution emissions of 
        the United States--
                    ``(A) by calendar year 2020, through appropriate 
                measures taken during the period of calendar years 2010 
                through 2019, to the aggregate net level of global 
                warming pollution emissions of the United States for 
                calendar year 1990;
                    ``(B) for each of calendar years 2021 through 2030, 
                by at least an additional 2.5 percent below the level 
                achieved for the preceding calendar year in accordance 
                with this paragraph; and
                    ``(C) for each of calendar years 2031 through 2050, 
                by at least an additional 3.5 percent below the level 
                achieved for the preceding calendar year in accordance 
                with this paragraph.
            ``(2) Additional regulations.--The regulations promulgated 
        under this subsection may include--
                    ``(A) requirements to reduce emissions of 
                greenhouse gases from any source or sector, regardless 
                of whether the source or sector is described in section 
                703(b)(1);
                    ``(B) emissions performance standards;
                    ``(C) efficiency performance standards;
                    ``(D) best management practices;
                    ``(E) technology-based requirements; and
                    ``(F) such other requirements as the Administrator 
                determines to be appropriate.

``SEC. 703. MARKET-BASED CAP ON EMISSIONS.

    ``(a) In General.--In carrying out section 702, the Administrator 
shall establish a program that--
            ``(1) imposes a cap on the emissions of global warming 
        pollutants from sources and sectors described in subsection 
        (b)(1); and
            ``(2) allows trading of allowances among covered entities.
    ``(b) Scope.--The program established under subsection (a) shall--
            ``(1) apply the cap required by subsection (a)(1) to the 
        sources or sectors of the United States economy with--
                    ``(A) the greatest global warming pollutant 
                emissions;
                    ``(B) the most cost-effective opportunities to 
                reduce global warming pollutant emissions; or
                    ``(C) other characteristics that the Administrator 
                determines make the source or sector appropriate for 
                inclusion in the program; and
            ``(2) cover a sufficient proportion of total United States 
        emissions of global warming pollutants, such that, in 
        combination with other measures adopted under this title, and 
        under the Global Warming Reduction Act of 2007 and the 
        amendments made by that Act, the program will ensure, to the 
        maximum extent practicable, that the aggregate United States 
        emissions of global warming pollutants will not exceed the 
        emission reduction targets promulgated pursuant to section 
        702(b)(1).
    ``(c) Allowances.--
            ``(1) Issuance.--
                    ``(A) In general.--The regulations promulgated 
                under section 702(b) shall provide for the 
                Administrator to issue, for each calendar year, a 
                quantity of allowances equal to the aggregate emissions 
                allowed under the cap imposed under subsection (a)(1) 
                for the calendar year.
                    ``(B) Treatment as property.--An allowance issued 
                under subparagraph (A) shall not constitute a property 
                right.
                    ``(C) No effect on authority.--Nothing in this 
                title or any other provision of law limits or otherwise 
                affects the authority of the United States to terminate 
                or limit an allowance issued under subparagraph (A).
            ``(2) Trading.--An allowance issued under this subsection 
        may be held and traded by any person.
            ``(3) Flexibility.--An allowance issued under this 
        subsection may be--
                    ``(A) used for the calendar year in which the 
                allowance was issued; or
                    ``(B) banked for use in a calendar year subsequent 
                to the calendar year of issuance.
    ``(d) Distribution of Allowances.--
            ``(1) Submission of plan by president.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this title, the President, in 
                consultation with the Administrator and heads of other 
                appropriate Federal agencies, shall develop and submit 
                to Congress a plan--
                            ``(i) to distribute the allowances issued 
                        under this section through--
                                    ``(I) auctions; and
                                    ``(II) at the discretion of the 
                                President and subject to subparagraph 
                                (B)(iii), allocations without charge to 
                                covered entities or entities that are 
                                not covered by the cap imposed under 
                                subsection (a)(1);
                            ``(ii) to deposit the proceeds of those 
                        auctions in the Fund; and
                            ``(iii) to ensure, to the maximum extent 
                        practicable, that those allowances are 
                        distributed, and those proceeds are used, in a 
                        manner consistent with achieving the goals 
                        described in section 702(a).
                    ``(B) Contents.--The plan submitted under 
                subparagraph (A) shall--
                            ``(i) identify each Federal department or 
                        agency responsible for implementing each action 
                        required;
                            ``(ii) require that allowances be 
                        distributed not later than January 1, 2010, for 
                        calendar year 2010; and
                            ``(iii) in no case allow any distribution 
                        of allowances without charge, resulting in the 
                        creation of windfall profits for covered 
                        entities.
            ``(2) Plan implementation.--If, after the 1-year period 
        beginning on the date of submission of the plan under paragraph 
        (1)(A), Congress has not enacted a law that implements the plan 
        (or an alternative to the plan), the Administrator and the head 
        of each Federal department or agency identified in paragraph 
        (1)(B)(i) shall implement the actions identified in the plan.
    ``(e) Monitoring.--The Administrator shall ensure, to the maximum 
extent practicable, that--
            ``(1) the emissions of global warming pollutants and the 
        use of allowances issued under this section are accurately 
        tracked, reported, and verified; and
            ``(2) the cap-and-trade system established pursuant to this 
        section is robust and enforceable.
    ``(f) Enforcement.--
            ``(1) In general.--In the case of excess emissions of 
        global warming pollutants under this section by an covered 
        entity during any calendar year, the regulations promulgated 
        under section 702(b) shall require the covered entity--
                    ``(A) to submit allowances for the emissions during 
                the following calendar year; and
                    ``(B) to pay a civil penalty in an amount 
                determined under paragraph (2).
            ``(2) Amount of civil penalty.--
                    ``(A) In general.--The amount of a civil penalty 
                for each quantity of excess emissions of global warming 
                pollutants constituting 1 carbon dioxide equivalent 
                shall be an amount equal to twice the market price for 
                an allowance as of December 31 of the calendar year in 
                which the excess emissions occurred.
                    ``(B) Determination of market price.--The 
                Administrator shall, by regulation, establish a method 
                of determining the market price of allowances for the 
                purpose of subparagraph (A).
            ``(3) No demand required.--A civil penalty under this 
        subsection shall be due and payable to the Administrator 
        without demand.
            ``(4) Deposit and use of amounts.--A civil penalty paid to 
        the Administrator under this subsection shall be--
                    ``(A) deposited in the Fund; and
                    ``(B) available for use by the President, in 
                accordance with subsection (g), without further 
                appropriation.
    ``(g) Climate Reinvestment Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund, to be known as the `Climate 
        Reinvestment Fund', consisting of--
                    ``(A) amounts collected pursuant to auctions of 
                allowances issued under this section;
                    ``(B) amounts received as civil penalties and 
                deposited in the Fund under subsection (f)(4)(A); and
                    ``(C) any interest earned on investment of amounts 
                in the Fund under paragraph (3).
            ``(2) Expenditures from fund.--On request by the President, 
        the Secretary of the Treasury shall transfer from the Fund to 
        the President such amounts as the President determines to be 
        necessary to carry out projects and activities to achieve the 
        goals described in section 702(a).
            ``(3) Investment of amounts.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Fund as is not, in the 
                judgment of the Secretary of the Treasury, required to 
                meet current withdrawals.
                    ``(B) Interest-bearing obligations.--Investments 
                may be made only in interest-bearing obligations of the 
                United States.
                    ``(C) Acquisition of obligations.--For the purpose 
                of investments under subparagraph (A), obligations may 
                be acquired--
                            ``(i) on original issue at the issue price; 
                        or
                            ``(ii) by purchase of outstanding 
                        obligations at the market price.
                    ``(D) Sale of obligations.--Any obligation acquired 
                by the Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    ``(E) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to, and 
                form a part of, the Fund.
            ``(4) Funding.--For each fiscal year, there are 
        appropriated to the Fund, to remain available until expended, 
        an amount equal to the sum of, with respect to the preceding 
        fiscal year--
                    ``(A) amounts collected pursuant to auctions of 
                allowances issued under this section; and
                    ``(B) the amount of civil penalties deposited in 
                the Fund under subsection (f)(4)(A).

``SEC. 704. GLOBAL WARMING POLLUTION EMISSION STANDARDS FOR PASSENGER 
              VEHICLES.

    ``(a) Definition of Passenger Vehicle.--In this section, the term 
`passenger vehicle' means--
            ``(1) a passenger automobile (as that term is defined in 
        section 32901 of title 49, United States Code);
            ``(2) a light truck; and
            ``(3) any other vehicle that the Administrator determines 
        is a vehicle the primary use of which is noncommercial personal 
        transportation.
    ``(b) Standards.--
            ``(1) In general.--In carrying out section 702(b), the 
        Administrator shall promulgate regulations that establish 
        standards for global warming pollution emissions from passenger 
        vehicles.
            ``(2) Requirements.--The standards established under 
        paragraph (1) shall provide for the reduction of global warming 
        pollution emissions from passenger vehicles, on an average-
        vehicle basis, at a rate and in quantities that are equal to or 
        greater than the rate and quantity reductions in those 
        emissions achieved under standards adopted by the California 
        Air Resources Board at the September 23-24, 2004 hearing of 
        that Board (California Code of Regulations, title 13, sec. 
        1961.1).
            ``(3) Revisions.--Not later than January 1, 2014, and every 
        5 years thereafter, the Administrator shall promulgate 
        regulations revising the standards described in paragraph (1) 
        to further reduce global warming pollution emissions from 
        passenger vehicles, taking into account--
                    ``(A) the reductions necessary to achieve the 
                emission reduction targets promulgated pursuant to 
                section 702(b)(1); and
                    ``(B) the technological feasibility of further 
                reducing those emissions.

``SEC. 705. RESEARCH AND DEVELOPMENT.

    ``(a) In General.--The Administrator shall carry out a program to 
perform and support research on global climate change standards and 
processes, with the goals of providing scientific and technical 
knowledge applicable to the reduction of global warming pollutants.
    ``(b) Research Program.--
            ``(1) In general.--The Administrator shall carry out, 
        directly or through the use of contracts or grants, a global 
        climate change standards and processes research program.
            ``(2) Research.--
                    ``(A) Contents and priorities.--The specific 
                contents and priorities of the research program shall 
                be determined in consultation with appropriate Federal 
                agencies, including--
                            ``(i) the National Oceanic and Atmospheric 
                        Administration;
                            ``(ii) the National Aeronautics and Space 
                        Administration; and
                            ``(iii) the Department of Energy.
                    ``(B) Types of research.--The research program 
                shall include the conduct of basic and applied 
                research--
                            ``(i) to develop and provide the enhanced 
                        measurements, calibrations, data, models, and 
                        reference material standards necessary to 
                        enable the monitoring of global warming 
                        pollution;
                            ``(ii) to assist in establishing a baseline 
                        reference point for future trading in global 
                        warming pollutants (including the measurement 
                        of progress in emission reductions);
                            ``(iii) for international exchange as 
                        scientific or technical information for the 
                        stated purpose of developing mutually-
                        recognized measurements, standards, and 
                        procedures for reducing global warming 
                        pollution;
                            ``(iv) to assist in developing improved 
                        industrial processes designed to reduce or 
                        eliminate global warming pollution; and
                            ``(v) to assist in understanding the 
                        acidification of the oceans and the ways in 
                        which that process affects ocean ecosystems and 
                        fisheries of the United States.
            ``(3) Abrupt climate change research.--
                    ``(A) Definition of abrupt climate change.--In this 
                paragraph, the term `abrupt climate change' means a 
                change in climate that occurs so rapidly or 
                unexpectedly that humans or natural systems may have 
                difficulty adapting to the change.
                    ``(B) Research.--The Administrator shall carry out 
                a program of scientific research on potential abrupt 
                climate change that is designed--
                            ``(i) to develop a global array of 
                        terrestrial and oceanographic indicators of 
                        paleoclimate in order to identify and describe 
                        past instances of abrupt climate change;
                            ``(ii) to improve understanding of 
                        thresholds and nonlinearities in geophysical 
                        systems relating to the mechanisms of abrupt 
                        climate change;
                            ``(iii) to incorporate those mechanisms 
                        into advanced geophysical models of climate 
                        change; and
                            ``(iv) to test the output of those models 
                        against an improved global array of records of 
                        past abrupt climate changes.
    ``(c) Sense of the Senate.--It is the sense of the Senate that 
Federal funds for clean, low-carbon energy research, development, and 
deployment should be increased by at least 100 percent for each year 
during the 10-year period beginning on the date of enactment of this 
title.

``SEC. 706. ENERGY EFFICIENCY PERFORMANCE STANDARD.

    ``(a) Definitions.--In this section:
            ``(1) Electricity savings.--
                    ``(A) In general.--The term `electricity savings' 
                means reductions in end-use electricity consumption 
                relative to consumption by the same customer or at the 
                same new or existing facility in a given year, as 
                defined in regulations promulgated by the Administrator 
                under subsection (e).
                    ``(B) Inclusions.--The term `savings' includes 
                savings achieved as a result of--
                            ``(i) installation of energy-saving 
                        technologies and devices; and
                            ``(ii) the use of combined heat and power 
                        systems, fuel cells, or any other technology 
                        identified by the Administrator that recaptures 
                        or generates energy solely for onsite customer 
                        use.
                    ``(C) Exclusion.--The term `savings' does not 
                include savings from measures that would likely be 
                adopted in the absence of energy-efficiency programs, 
                as determined by the Administrator.
            ``(2) Retail electricity sales.--The term `retail 
        electricity sales' means the total quantity of electric energy 
        sold by a retail electricity supplier to retail customers 
        during the most recent calendar year for which that information 
        is available.
            ``(3) Retail electricity supplier.--The term `retail 
        electricity supplier' means a distribution or integrated 
        utility, or an independent company or entity, that sells 
        electric energy to consumers.
    ``(b) Energy Efficiency Performance Standard.--Each retail 
electricity supplier shall implement programs and measures to achieve 
improvements in energy efficiency and peak load reduction, as verified 
by the Administrator.
    ``(c) Targets.--For calendar year 2009 and each calendar year 
thereafter, the Administrator shall ensure, to the maximum extent 
practicable, that retail electric suppliers annually achieve 
electricity savings and reduce peak power demand and electricity use by 
retail customers by a percentage that is not less than the applicable 
target percentage specified in the following table:

------------------------------------------------------------------------
                                Reduction in peak       Reduction in
        Calendar Year                demand            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   11.75 percent.......  9.0 percent
 thereafter.
------------------------------------------------------------------------

    ``(d) Beginning Date.--For the purpose of meeting the targets 
established under subsection (c), electricity savings shall be 
calculated based on the sum of--
            ``(1) savings realized as a result of actions taken by the 
        retail electric supplier during the specified calendar year; 
        and
            ``(2) cumulative savings realized as a result of 
        electricity savings achieved in all previous calendar years 
        (beginning with calendar year 2007).
    ``(e) Implementing Regulations.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this title, the Administrator shall promulgate 
        regulations to implement the targets established under 
        subsection (c).
            ``(2) Requirements.--The regulations shall establish--
                    ``(A) a national credit system permitting credits 
                to be awarded, bought, sold, or traded by and among 
                retail electricity suppliers;
                    ``(B) a fee equivalent to not less than 4 cents per 
                kilowatt hour for retail energy suppliers that do not 
                meet the targets established under subsection (c); and
                    ``(C) standards for monitoring and verification of 
                electricity use and demand savings reported by the 
                retail electricity suppliers.
            ``(3) Consideration of transmission and distribution 
        efficiency.--In developing regulations under this subsection, 
        the Administrator shall consider whether savings, in whole or 
        part, achieved by retail electricity suppliers by improving the 
        efficiency of electric distribution and use should be eligible 
        for credits established under this section.
    ``(f) Compliance With State Law.--Nothing in this section shall 
supersede or otherwise affect any State or local law requiring or 
otherwise relating to reductions in total annual electricity 
consumption, or peak power consumption, by electric consumers to the 
extent that the State or local law requires more stringent reductions 
than those required under this section.
    ``(g) Voluntary Participation.--The Administrator may--
            ``(1) pursuant to the regulations promulgated under 
        subsection (e)(1), issue a credit to any entity that is not a 
        retail electric supplier if the entity implements electricity 
        savings; and
            ``(2) in a case in which an entity described in paragraph 
        (1) is a nonprofit or educational organization, provide to the 
        entity 1 or more grants in lieu of a credit.

``SEC. 707. RENEWABLE PORTFOLIO STANDARD.

    ``(a) Renewable Energy.--
            ``(1) In general.--The Administrator, in consultation with 
        the Secretary of Energy, shall promulgate regulations defining 
        the types and sources of renewable energy generation that may 
        be carried out in accordance with this section.
            ``(2) Inclusions.--In promulgating regulations under 
        paragraph (1), the Administrator shall include of all types of 
        renewable energy (as defined in section 203(b) of the Energy 
        Policy Act of 2005 (42 U.S.C. 15852(b))) other than energy 
        generated from--
                    ``(A) municipal solid waste;
                    ``(B) wood contaminated with plastics or metals; or
                    ``(C) tires.
    ``(b) Renewable Energy Requirement.--Of the base quantity of 
electricity sold by each retail electric supplier to electric consumers 
during a calendar year, the quantity generated by renewable energy 
sources shall be not less than the following percentages:

``Calendar year:                             Minimum annual percentage:
        2009 through 2010......................................      5 
        2011 through 2015......................................     10 
        2016 through 2020......................................     15 
        2021 and subsequent years..............................     20.
    ``(c) Renewable Energy Credit Program.--Not later than 1 year after 
the date of enactment of this title, the Administrator shall 
establish--
            ``(1) a program to issue, establish the value of, monitor 
        the sale or exchange of, and track renewable energy credits; 
        and
            ``(2) penalties for any retail electric supplier that does 
        not comply with this section.
    ``(d) Prohibition on Double Counting.--A renewable energy credit 
issued under subsection (c)--
            ``(1) may be counted toward meeting the requirements of 
        subsection (b) only once; and
            ``(2) shall vest with the owner of the system or facility 
        that generates the renewable energy that is covered by the 
        renewable energy credit, unless the owner explicitly transfers 
        the renewable energy credit.
    ``(e) Sale Under Purpa Contract.--If the Administrator, after 
consultation with the Secretary of Energy, determines that a renewable 
energy generator is selling electricity to comply with this section to 
a retail electric supplier under a contract subject to section 210 of 
the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 824a-
3), the retail electric supplier shall be treated as the generator of 
the electric energy for the purposes of this title for the duration of 
the contract.
    ``(f) State Programs.--Nothing in this section precludes any State 
from requiring additional renewable energy generation under any State 
renewable energy program.
    ``(g) Voluntary Participation.--The Administrator may issue a 
renewable energy credit pursuant to subsection (c) to any entity that 
is not subject to this section only if the entity applying for the 
renewable energy credit meets the terms and conditions of this section 
to the same extent as retail electric suppliers subject to this 
section.

``SEC. 708. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION OF 
              CARBON.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of title, the Secretary of Agriculture, with the concurrence 
of the Administrator, shall establish standards for accrediting 
certified reductions in the emission of carbon dioxide through above-
ground and below-ground biological sequestration activities.
    ``(b) Requirements.--The standards shall include--
            ``(1) a national biological carbon storage baseline or 
        inventory; and
            ``(2) measurement, monitoring, and verification guidelines 
        based on--
                    ``(A) measurement of increases in carbon storage in 
                excess of the carbon storage that would have occurred 
                in the absence of a new management practice designed to 
                achieve biological sequestration of carbon;
                    ``(B) comprehensive carbon accounting that--
                            ``(i) reflects sustained net increases in 
                        carbon reservoirs; and
                            ``(ii) takes into account any carbon 
                        emissions resulting from disturbance of carbon 
                        reservoirs in existence as of the date of 
                        commencement of any new management practice 
                        designed to achieve biological sequestration of 
                        carbon;
                    ``(C) adjustments to account for--
                            ``(i) emissions of carbon that may result 
                        at other locations as a result of the impact of 
                        the new biological sequestration management 
                        practice on timber supplies; or
                            ``(ii) potential displacement of carbon 
                        emissions to other land owned by the entity 
                        that carries out the new biological 
                        sequestration management practice; and
                    ``(D) adjustments to reflect the expected carbon 
                storage over various time periods, taking into account 
                the likely duration of the storage of carbon in a 
                biological reservoir.
    ``(c) Updating of Standards.--Not later than 3 years after the date 
of establishment of the standards under subsection (a), and every 3 
years thereafter, the Secretary of Agriculture shall update the 
standards to take into account the most recent scientific information.

``SEC. 709. GLOBAL WARMING POLLUTION REPORTING.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this title, and annually thereafter, any entity considered 
to be a major stationary source (as defined in section 169A(g)) shall 
submit to the Administrator a report describing the emissions of global 
warming pollutants from the entity for the preceding calendar year.
    ``(b) Voluntary Reporting.--An entity that is not described in 
subsection (a) may voluntarily report the emissions of global warming 
pollutants from the entity to the Administrator.
    ``(c) Requirements for Reports.--
            ``(1) Expression of measurements.--Each global warming 
        pollution report submitted under this section shall express 
        global warming pollution emissions in--
                    ``(A) metric tons of each global warming pollutant; 
                and
                    ``(B) metric tons of the carbon dioxide equivalent 
                of each global warming pollutant.
            ``(2) Electronic format.--The information contained in a 
        report submitted under this section shall be reported 
        electronically to the Administrator in such form and to such 
        extent as may be required by the Administrator.
            ``(3) De minimis exemption.--The Administrator may specify 
        the level of global warming pollution emissions from a source 
        within a facility that shall be considered to be a de minimis 
        exemption from the requirement to comply with this section.
    ``(d) Public Availability of Information.--Not later than March 1 
of the year after which the Administrator receives a report under this 
subsection from an entity, and annually thereafter, the Administrator 
shall make the information reported under this section available to the 
public through the Internet.
    ``(e) Protocols and Methods.--The Administrator shall, by 
regulation, establish protocols and methods to ensure completeness, 
consistency, transparency, and accuracy of data on global warming 
pollution emissions submitted under this section.
    ``(f) Enforcement.--Regulations promulgated under this section may 
be enforced pursuant to section 113 with respect to any person that--
            ``(1) fails to submit a report under this section; or
            ``(2) otherwise fails to comply with those regulations.

``SEC. 710. NATIONAL ACADEMY OF SCIENCES REPORT.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this title, and every 2 years thereafter, the Academy, 
acting in coordination with the National Research Council, shall submit 
to the Administrator and Congress a report that assesses--
            ``(1) the probability of avoiding dangerous anthropogenic 
        interference with the climate system; and
            ``(2) the progress made by the United States as of the date 
        of the report to avoid that interference.
    ``(b) Contents.--A report submitted under subsection (a) shall--
            ``(1) evaluate whether the emission reduction targets 
        promulgated pursuant to section 702(b)(1) are, after taking 
        into account the actions of the international community, likely 
        to be sufficient to avoid dangerous climate change;
            ``(2) include an assessment of the occurrence, or 
        probability of occurrence, of--
                    ``(A) a concentration of atmospheric global warming 
                pollution of greater than 450 carbon dioxide equivalent 
                parts per million;
                    ``(B) a global mean surface temperature increase of 
                greater than 2 degrees Celsius (3.6 degrees Fahrenheit) 
                from preindustrial levels;
                    ``(C) a substantial slowing of the Atlantic 
                thermohaline circulation;
                    ``(D) a sea level rise of more than 8 inches;
                    ``(E) an ice-free Arctic Ocean in the summer;
                    ``(F) a decrease in the area of permafrost to a 
                level less than 50 percent of the area of permafrost in 
                existence in 2000;
                    ``(G) a loss of more than 40 percent of the 
                coverage of coral reefs in the world because of 
                increased ocean temperature or acidity; and
                    ``(H) any other indicator of significant global 
                warming, as determined by the Academy;
            ``(3) if the Academy concludes that the emission reduction 
        targets promulgated pursuant to section 702(b)(1) are not 
        likely to be sufficient to avoid dangerous climate change, or 
        that any event specified in paragraph (2) has occurred or is 
        likely to occur--
                    ``(A) identify the necessary level of further 
                reductions in atmospheric global warming pollution 
                concentrations; and
                    ``(B) recommend additional actions by the United 
                States and the international community to further 
                reduce atmospheric concentrations of global warming 
                pollution; and
            ``(4) if the Academy concludes that an emission reduction 
        target described in section 702(b)(1) cannot be achieved due to 
        technological infeasibility, include a notification of that 
        determination.

``SEC. 711. ADDITIONAL AUTHORITY TO REGULATE EMISSIONS OF GLOBAL 
              WARMING POLLUTANTS.

    ``The authority of the Administrator under this title shall be in 
addition to the authority of the Administrator to regulate emissions of 
global warming pollutants pursuant to any other provision of law in 
effect as of the date of enactment of this title.''.

SEC. 102. BIOFUELS INFRASTRUCTURE.

    (a) Renewable Fuel Program.--Section 211(o)(2) of the Clean Air Act 
(42 U.S.C. 7545(o)(2)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) Applicable volume.--
                            ``(i) In general.--For the purpose of 
                        subparagraph (A), the applicable volume for 
                        calendar year 2010 and each calendar year 
                        thereafter shall be determined, by rule, by the 
                        Administrator, in consultation with the 
                        Secretary of Agriculture and the Secretary of 
                        Energy, in a manner that ensures, to the 
                        maximum extent practicable, that--
                                    ``(I) the requirements described in 
                                clause (ii) for specified calendar 
                                years are met; and
                                    ``(II) the applicable volume for 
                                each calendar year not specified in 
                                clause (ii) is determined on an annual 
                                basis.
                            ``(ii) Requirements.--The requirements 
                        referred to in clause (i) are--
                                    ``(I) for calendar year 2010, at 
                                least 10,000,000,000 gallons of 
                                renewable fuel;
                                    ``(II) for calendar year 2020, at 
                                least 30,000,000,000 gallons of 
                                renewable fuel; and
                                    ``(III) for calendar year 2030, at 
                                least 60,000,000,000 gallons of 
                                renewable fuel.''.
    (b) Installation of E-85 Fuel Pumps by Major Oil Companies at Owned 
Stations and Branded Stations.--Section 211(o) of the Clean Air Act (42 
U.S.C. 7545(o)) is amended by adding at the end the following:
            ``(11) Installation of e-85 fuel pumps by major oil 
        companies at owned stations and branded stations.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) E-85 fuel.--The term `E-85 fuel' 
                        means a blend of gasoline approximately 85 
                        percent of the content of which is derived from 
                        ethanol produced in the United States.
                            ``(ii) Major oil company.--The term `major 
                        oil company' means any person that, 
                        individually or together with any other person 
                        with respect to which the person has an 
                        affiliate relationship or significant ownership 
                        interest, has not less than 4,500 retail 
                        station outlets according to the latest 
                        publication of the Petroleum News Annual 
                        Factbook.
                            ``(iii) Secretary.--The term `Secretary' 
                        means the Secretary of Energy, acting in 
                        consultation with the Administrator and the 
                        Secretary of Agriculture.
                    ``(B) Regulations.--The Secretary shall promulgate 
                regulations to ensure, to the maximum extent 
                practicable, that each major oil company that sells or 
                introduces gasoline into commerce in the United States 
                through wholly-owned stations or branded stations 
                installs or otherwise makes available 1 or more pumps 
                that dispense E-85 fuel (including any other equipment 
                necessary, such as including tanks, to ensure that the 
                pumps function properly) at not less than the 
                applicable percentage of the wholly-owned stations and 
                the branded stations of the major oil company specified 
                in subparagraph (C).
                    ``(C) Applicable percentage.--For the purpose of 
                subparagraph (B), the applicable percentage of the 
                wholly-owned stations and the branded stations shall be 
                determined in accordance 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.
                    ``(D) Geographic distribution.--
                            ``(i) In general.--Subject to clause (ii), 
                        in promulgating regulations under subparagraph 
                        (B), the Secretary shall ensure that each major 
                        oil company described in subparagraph (B) 
                        installs or otherwise makes available 1 or more 
                        pumps that dispense E-85 fuel at not less than 
                        a minimum percentage (specified in the 
                        regulations) of the wholly-owned stations and 
                        the branded stations of the major oil company 
                        in each State.
                            ``(ii) Requirement.--In specifying the 
                        minimum percentage under clause (i), the 
                        Secretary shall ensure that each major oil 
                        company installs or otherwise makes available 1 
                        or more pumps described in that clause in each 
                        State in which the major oil company operates.
                    ``(E) Financial responsibility.--In promulgating 
                regulations under subparagraph (B), the Secretary shall 
                ensure that each major oil company described in that 
                subparagraph assumes full financial responsibility for 
                the costs of installing or otherwise making available 
                the pumps described in that subparagraph and any other 
                equipment necessary (including tanks) to ensure that 
                the pumps function properly.
                    ``(F) Production credits for exceeding e-85 fuel 
                pumps installation requirement.--
                            ``(i) Earning and period for applying 
                        credits.--If the percentage of the wholly-owned 
                        stations and the branded stations of a major 
                        oil company at which the major oil company 
                        installs E-85 fuel pumps in a particular 
                        calendar year exceeds the percentage required 
                        under subparagraph (C), the major oil company 
                        earns credits under this paragraph, which may 
                        be applied to any of the 3 consecutive calendar 
                        years immediately after the calendar year for 
                        which the credits are earned.
                            ``(ii) Trading credits.--Subject to clause 
                        (iii), a major oil company that has earned 
                        credits under clause (i) may sell credits to 
                        another major oil company to enable the 
                        purchaser to meet the requirement under 
                        subparagraph (C).
                            ``(iii) Exception.--A major oil company may 
                        not use credits purchased under clause (ii) to 
                        fulfill the geographic distribution requirement 
                        in subparagraph (D).''.

       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.

    (a) Increases in Credit.--
            (1) New qualified fuel cell motor vehicle.--Subsection (b) 
        of section 30B of the Internal Revenue Code of 1986 (relating 
        to new qualified fuel cell motor vehicle credit) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``$8,000 ($4,000'' in 
                        subparagraph (A) and inserting ``$16,000 
                        ($8,000'';
                            (ii) by striking ``$10,000'' in 
                        subparagraph (B) and inserting ``$20,000'';
                            (iii) by striking ``$20,000'' in 
                        subparagraph (C) and inserting ``$40,000''; and
                            (iv) by striking ``$40,000'' in 
                        subparagraph (D) and inserting ``$80,000''; and
                    (B) in paragraph (2)(A)--
                            (i) by striking ``$1,000'' in clause (i) 
                        and inserting ``$2,000'';
                            (ii) by striking ``$1,500'' in clause (ii) 
                        and inserting ``$3,000'';
                            (iii) by striking ``$2,000'' in clause 
                        (iii) and inserting ``$4,000'';
                            (iv) by striking ``$2,500'' in clause (iv) 
                        and inserting ``$5,000'';
                            (v) by striking ``$3,000'' in clause (v) 
                        and inserting ``$6,000'';
                            (vi) by striking ``$3,500'' in clause (vi) 
                        and inserting ``$7,000''; and
                            (vii) by striking ``$4,000'' in clause 
                        (vii) and inserting ``$8,000''.
            (2) New advanced lean burn technology motor vehicle.--
                    (A) Fuel economy.--The table in clause (i) of 
                section 30B(c)(2)(A) of such Code (relating to fuel 
                economy) is amended--
                            (i) by striking ``$400'' and inserting 
                        ``$800'';
                            (ii) by striking ``$800'' and inserting 
                        ``$1,600'';
                            (iii) by striking ``$1,200'' and inserting 
                        ``$2,400'';
                            (iv) by striking ``$1,600'' and inserting 
                        ``$3,200'';
                            (v) by striking ``$2,000'' and inserting 
                        ``$4,000''; and
                            (vi) by striking ``$2,400'' and inserting 
                        ``$4,800''.
                    (B) Conservation.--The table in subparagraph (B) of 
                section 30B(c)(2) of such Code (relating to 
                conservation credit) is amended--
                            (i) by striking ``$250'' and inserting 
                        ``$500'';
                            (ii) by striking ``$500'' and inserting 
                        ``$1,000'';
                            (iii) by striking ``$750'' and inserting 
                        ``$1,500''; and
                            (iv) by striking ``$1,000'' and inserting 
                        ``$2,000''.
    (b) Expansion of Number of New Qualified Hybrid and Advanced Lean 
Burn Technology Vehicles Eligible for Credit.--Paragraph (2) of section 
30B(f) of the Internal Revenue Code of 1986 (relating to phaseout) is 
amended--
            (1) by striking ``the period'' and inserting ``any 
        period'',
            (2) by striking ``United States after December 31, 2005, is 
        at least 60,000'' and inserting ``United States is--
                    ``(A) after December 31, 2005, at least 60,000, and
                    ``(B) after December 31, 2008, and before January 
                1, 2013, 60,000.'', and
            (3) by adding at the end the following new sentence: ``For 
        purposes of the preceding sentence, the Secretary may extend 
        the time period through 2014 if the Secretary determines that 
        market conditions merit such action.''.
    (c) Extension.--Section 30B(j) of the Internal Revenue Code of 1986 
(relating to termination) is amended--
            (1) by striking ``December 31, 2010'' both places it 
        appears and inserting ``December 31, 2014'', and
            (2) by striking ``December 31, 2009'' in paragraph (3) and 
        inserting ``December 31, 2014''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

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

    (a) In General.--Section 30B of the Internal Revenue Code of 1986 
is amended by redesignating subsections (i) and (j) as subsections (j) 
and (k), respectively, and by inserting after subsection (h) the 
following new subsection:
    ``(i) New Plug-In Hybrid Motor Vehicle Credit.--
            ``(1) In general.--For purposes of subsection (a), the new 
        plug-in hybrid motor vehicle credit determined under this 
        subsection with respect to a new qualified plug-in hybrid motor 
        vehicle or new qualified flexible-fuel plug-in hybrid motor 
        vehicle placed in service by the taxpayer during the taxable 
        year is--
                    ``(A) $3,000, if such vehicle is a new qualified 
                plug-in hybrid motor vehicle with a gross vehicle 
                weight rating of not more than 8,500 pounds, and
                    ``(B) $3,150, if such vehicle is a new qualified 
                flexible-fuel plug-in hybrid motor vehicle with a gross 
                vehicle weight rating of not more than 8,500 pounds.
            ``(2) Increase for fuel efficiency.--
                    ``(A) In general.--The amount determined under 
                paragraph (1)(A) with respect to a new qualified plug-
                in hybrid motor vehicle or new qualified flexible-fuel 
                plug-in hybrid motor vehicle which is a passenger 
                automobile or light truck shall be increased by--
                            ``(i) $1,000 if such vehicle achieves at 
                        least 250 percent but less than 250 percent of 
                        the 2002 model year city fuel economy,
                            ``(ii) $1,500 if such vehicle achieves at 
                        least 250 percent but less than 275 percent of 
                        the 2002 model year city fuel economy,
                            ``(iii) $2,000 if such vehicle achieves at 
                        least 275 percent but less than 300 percent of 
                        the 2002 model year city fuel economy,
                            ``(iv) $2,500 if such vehicle achieves at 
                        least 300 percent but less than 325 percent of 
                        the 2002 model year city fuel economy, and
                            ``(v) $3,000 if such vehicle achieves at 
                        least 325 percent of the 2002 model year city 
                        fuel economy,
                    ``(B) 2002 model year city fuel economy.--For 
                purposes of subparagraph (A), the 2002 model year city 
                fuel economy with respect to a vehicle shall be 
                determined using the tables provided in subsection 
                (b)(2)(B).
            ``(3) New qualified plug-in hybrid motor vehicle.--For 
        purposes of this subsection, the term `new qualified plug-in 
        hybrid motor vehicle' means a motor vehicle--
                    ``(A) which is propelled by an internal combustion 
                engine or heat engine using --
                            ``(i) any combustible fuel,
                            ``(ii) an on-board, rechargeable storage 
                        device, and
                            ``(iii) a means of using an off-board 
                        source of electricity,
                    ``(B) which, in the case of a passenger automobile 
                or light truck, has received on or after the date of 
                the enactment of this section a certificate that such 
                vehicle meets or exceeds the Bin 5 Tier II emission 
                level established in regulations prescribed by the 
                Administrator of the Environmental Protection Agency 
                under section 202(i) of the Clean Air Act for that make 
                and model year vehicle,
                    ``(C) the original use of which commences with the 
                taxpayer,
                    ``(D) which is acquired for use or lease by the 
                taxpayer and not for resale, and
                    ``(E) which is made by a manufacturer.
            ``(4) New qualified flexible-fuel plug-in hybrid motor 
        vehicle.--For purposes of this subsection, the term `new 
        qualified flexible-fuel plug-in hybrid motor vehicle' means a 
        motor vehicle--
                    ``(A) which is propelled by an internal combustion 
                engine or heat engine using--
                            ``(i) an on-board, rechargeable storage 
                        device, and
                            ``(ii) a means of using an off-board source 
                        of electricity,
                    ``(B) which is warrantied by its manufacturer to 
                operate on any combination of gasoline and a fuel blend 
                containing up to 85 percent ethanol and 15 percent 
                gasoline by volume (E85),
                    ``(C) which, in the case of a passenger automobile 
                or light truck, has received on or after the date of 
                the enactment of this section a certificate that such 
                vehicle meets or exceeds the Bin 5 Tier II emission 
                level established in regulations prescribed by the 
                Administrator of the Environmental Protection Agency 
                under section 202(i) of the Clean Air Act for that make 
                and model year vehicle,
                    ``(D) the original use of which commences with the 
                taxpayer,
                    ``(E) which is acquired for use or lease by the 
                taxpayer and not for resale, and
                    ``(F) which is made by a manufacturer.''.
    (b) Conforming Amendments.--
            (1) Section 30B(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (3), by 
        striking the period at the end of paragraph (4) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(5) the new plug-in hybrid motor vehicle credit 
        determined under subsection (i).''.
            (2) Section 30B(k)(2) of such Code, as redesignated by 
        subsection (a), is amended by striking ``or'' and inserting a 
        comma and by inserting ``, a new qualified plug-in hybrid motor 
        vehicle (as described in subsection (i)(3)), or a new qualified 
        flexible-fuel plug-in hybrid motor vehicle (as described in 
        subsection (i)(4))'' after ``subsection (d)(2)(A))''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

  Subtitle B--Advanced Technology Motor Vehicles Manufacturing Credit

SEC. 211. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.) is amended by adding at the end the following new section:

``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
35 percent of the qualified investment of an eligible taxpayer for such 
taxable year.
    ``(b) Qualified Investment.--For purposes of this section--
            ``(1) In general.--The term `qualified investment' means, 
        with respect to any taxable year, the sum of--
                    ``(A) the costs paid or incurred by the eligible 
                taxpayer during such taxable year--
                            ``(i) to re-equip, expand, or establish any 
                        manufacturing facility of the eligible taxpayer 
                        to produce advanced technology motor vehicles 
                        or to produce eligible components, and
                            ``(ii) for qualified research (as defined 
                        in section 41(d)) related to advanced 
                        technology motor vehicles and eligible 
                        components, and
                    ``(B) qualified engineering integration costs.
            ``(2) Attribution rules.--For purposes of paragraph 
        (1)(A)(i), in the case of a manufacturing facility of the 
        eligible taxpayer which produces both advanced technology motor 
        vehicles and other motor vehicles, or eligible components and 
        other components, only the amount paid or incurred for the 
        production of advanced technology motor vehicles and eligible 
        components shall be taken into account.
    ``(c) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means any taxpayer if more than 50 percent of its 
gross receipts for the taxable year is derived from the manufacture of 
motor vehicles or any component parts of such vehicles.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Advanced technology motor vehicle.--The term 
        `advanced technology motor vehicle' means--
                    ``(A) any new qualified fuel cell motor vehicle (as 
                defined in section 30B(b)(3)),
                    ``(B) any new advanced lean burn technology motor 
                vehicle (as defined in section 30B(c)(3)),
                    ``(C) any new qualified hybrid motor vehicle (as 
                defined in section 30B(d)(3)(A) and determined without 
                regard to any gross vehicle weight rating),
                    ``(D) any new qualified alternative motor fuel 
                vehicle (as defined in section 30B(e)(4)), and
                    ``(E) any new qualified plug-in hybrid motor 
                vehicle (as defined in section 30B(i)(3)) or any new 
                qualified flexible-fuel plug-in hybrid motor vehicle 
                (as defined in section 30B(i)(4)).
            ``(2) Eligible components.--The term `eligible component' 
        means any component inherent to any advanced technology motor 
        vehicle but not inherent to a motor vehicle which is not an 
        advanced technology motor vehicle, including--
                    ``(A) with respect to any gasoline or diesel-
                electric new qualified hybrid motor vehicle, any--
                            ``(i) electric motor or generator,
                            ``(ii) power split device,
                            ``(iii) power control unit,
                            ``(iv) power controls,
                            ``(v) integrated starter generator, or
                            ``(vi) battery,
                    ``(B) with respect to any hydraulic new qualified 
                hybrid motor vehicle, any--
                            ``(i) hydraulic accumulator vessel,
                            ``(ii) hydraulic pump, or
                            ``(iii) hydraulic pump-motor assembly,
                    ``(C) with respect to any new advanced lean burn 
                technology motor vehicle, any--
                            ``(i) diesel engine,
                            ``(ii) turbocharger,
                            ``(iii) fuel injection system, or
                            ``(iv) after-treatment system, such as a 
                        particle filter or NO<INF>X</INF> absorber, and
                    ``(D) with respect to any advanced technology motor 
                vehicle, any other component submitted for approval by 
                the Secretary.
            ``(3) Qualified engineering integration costs.--For 
        purposes of subsection (b)(1)(B), the term `qualified 
        engineering integration costs' means, with respect to any 
        advanced technology motor vehicle, costs incurred prior to the 
        market introduction of such motor vehicle for engineering tasks 
        related to--
                    ``(A) establishing functional, structural, and 
                performance requirements for components and subsystems 
                to meet overall vehicle objectives for a specific 
                application,
                    ``(B) designing interfaces for components and 
                subsystems with mating systems within a specific 
                vehicle application,
                    ``(C) designing cost effective, efficient, and 
                reliable manufacturing processes to produce components 
                and subsystems for a specific vehicle application, and
                    ``(D) validating functionality and performance of 
                components and subsystems for a specific vehicle 
                application.
            ``(4) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
    ``(e) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the sum of--
                    ``(A) the taxpayer's regular tax liability (as 
                defined in section 26(b)) for the taxable year, plus
                    ``(B) the tax imposed under section 55 for the 
                taxable year.
            ``(2) Carryover of unused credit amounts.--
                    ``(A) In general.--If the credit allowable under 
                subsection (a) for a taxable year exceeds the 
                limitation under paragraph (1) for such taxable year, 
                such excess shall be allowed--
                            ``(i) as a credit carryback to each of the 
                        13 taxable years preceding such year, and
                            ``(ii) as a credit carryforward to each of 
                        the 20 taxable years following such year.
                    ``(B) Amount carried to each year.--For purposes of 
                this paragraph, rules similar to the rules of section 
                39(a)(2) shall apply.
    ``(f) Special Rules.--
            ``(1) Reduction in basis.--For purposes of this subtitle, 
        if a credit is allowed under this section for any expenditure 
        with respect to any property, the increase in the basis of such 
        property which would (but for this paragraph) result from such 
        expenditure shall be reduced by the amount of the credit so 
        allowed.
            ``(2) Investments and property outside the united states.--
        No credit shall be allowed under subsection (a) with respect 
        to--
                    ``(A) any manufacturing facility which is located 
                outside the United States, and
                    ``(B) any engineering integration or research and 
                development conducted outside the United States.
            ``(3) Aggregation of expenditures; allocations.--For 
        purposes of this section, rules similar to the rules of 
        paragraphs (1) and (2) of section 41(f) shall apply.
            ``(4) Recapture.--The Secretary shall, by regulation, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any manufacturing facility 
        which ceases to produce advanced technology motor vehicles or 
        eligible components.
            ``(5) Public statement.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any taxable year unless the eligible 
                taxpayer makes publicly available a statement 
                describing the activities of the eligible taxpayer for 
                which the credit is allowed and the public benefits of 
                such activities, including the estimated amount of any 
                reduction in national oil consumption in future years 
                as a result of such activities.
                    ``(B) Time for publication.--The statement required 
                under subparagraph (A) shall be made available not 
                later than 90 days after the end of the taxable year 
                for which the credit under subsection (a) is allowed 
                and shall be in such form as the Secretary shall 
                prescribe.
            ``(6) No double benefit.--
                    ``(A) Coordination with other deductions and 
                credits.--Except as provided in subparagraph (B), the 
                amount of any deduction or other credit allowable under 
                this chapter for any cost taken into account in 
                determining the amount of the credit under subsection 
                (a) shall be reduced by the amount of such credit 
                attributable to such cost.
                    ``(B) Research and development costs.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), any amount described in subsection 
                        (b)(1)(A)(ii) taken into account in determining 
                        the amount of the credit under subsection (a) 
                        for any taxable year shall not be taken into 
                        account for purposes of determining the credit 
                        under section 41 for such taxable year.
                            ``(ii) Costs taken into account in 
                        determining base period research expenses.--Any 
                        amounts described in subsection (b)(1)(A)(ii) 
                        taken into account in determining the amount of 
                        the credit under subsection (a) for any taxable 
                        year which are qualified research expenses 
                        (within the meaning of section 41(b)) shall be 
                        taken into account in determining base period 
                        research expenses for purposes of applying 
                        section 41 to subsequent taxable years.
    ``(g) Election Not To Take Credit.--No credit shall be allowed 
under subsection (a) for any property if the taxpayer elects not to 
have this section apply to such property.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (36), by 
        striking the period at the end of paragraph (37) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(38) to the extent provided in section 30D(f)(1).''.
            (2) Section 6501(m) of such Code is amended by inserting 
        ``30D(g),'' after ``30C(e)(5),''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30C the following new item:

``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts incurred in taxable years beginning after December 31, 
1993.

           TITLE III--INTERNATIONAL AND CORPORATE OBLIGATIONS

SEC. 301. INTERNATIONAL NEGOTIATIONS AND TRADE RESTRICTIONS.

    It is the sense of the Senate that the United States should act to 
reduce the health, environmental, economic, and national security risks 
posed by global climate change, and foster sustained economic growth 
through a new generation of technologies, by--
            (1) participating in negotiations under the United Nations 
        Framework Convention on Climate Change, done at New York May 9, 
        1992, and leading efforts in other international forums, with 
        the objective of securing participation of the United States in 
        agreements that--
                    (A) advance and protect the economic and national 
                security interests of the United States;
                    (B) establish mitigation commitments by all 
                countries that are major emitters of global warming 
                pollution, in accordance with the principle of ``common 
                but differentiated responsibilities'';
                    (C) establish flexible international mechanisms to 
                minimize the cost of efforts by participating 
                countries; and
                    (D) achieve a significant long-term reduction in 
                global warming pollution emissions; and
            (2) establishing a bipartisan Senate observation group, the 
        members of which should be designated by the Chairman and 
        Ranking Member of the Committee on Foreign Relations of the 
        Senate, and which should include the Chairman and Ranking 
        Member of the Committee on Environment and Public Works of the 
        Senate--
                    (A) to monitor any international negotiations on 
                climate change; and
                    (B) to ensure that the advice and consent function 
                of the Senate is exercised in a manner to facilitate 
                timely consideration of any applicable treaty submitted 
                to the Senate.

SEC. 302. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE CHANGE RISKS.

    (a) Regulations.--Not later than 2 years after the date of 
enactment of this Act, the Securities and Exchange Commission (referred 
to in this section as the ``Commission'') shall promulgate regulations 
in accordance with section 13 of the Securities Exchange Act of 1934 
(15 U.S.C. 78m) directing each issuer of securities under that Act with 
a market capitalization of more than $1,000,000,000, regardless of 
whether the issuer is publicly- or privately-held, to inform securities 
investors of the risks relating to--
            (1) the financial exposure of the issuer because of the net 
        global warming pollution emissions of the issuer; and
            (2) the potential economic impacts of global warming on the 
        interests of the issuer.
    (b) Uniform Format for Disclosure.--In carrying out subsection (a), 
the Commission shall enter into an agreement with the Financial 
Accounting Standards Board, or another appropriate organization that 
establishes voluntary standards, to develop a uniform format for 
disclosing to securities investors information on the risks described 
in subsection (a).
    (c) Interim Interpretive Release.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Commission shall issue an 
        interpretive release clarifying that under items 101 and 303 of 
        Regulation S-K of the Commission under part 229 of title 17, 
        Code of Federal Regulations (as in effect on the date of 
        enactment of this Act)--
                    (A) the commitments of the United States to reduce 
                emissions of global warming pollution under the United 
                Nations Framework Convention on Climate Change, done at 
                New York on May 9, 1992, are considered to be a 
                material effect; and
                    (B) global warming constitutes a known trend.
            (2) Period of effectiveness.--The interpretive release 
        issued under paragraph (1) shall remain in effect until the 
        effective date of the final regulations promulgated under 
        subsection (a).

 TITLE IV--NATIONAL CLIMATE CHANGE VULNERABILITY AND RESILIENCE PROGRAM

SEC. 401. DEFINITIONS.

    In this title:
            (1) Office.--The term ``Office'' means the Office of 
        Climate Change Vulnerability and Resilience Research 
        established under section 402(c).
            (2) Program.--The term ``Program'' means the National 
        Climate Change Vulnerability and Resilience Program established 
        under section 402(a).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.

SEC. 402. NATIONAL CLIMATE CHANGE VULNERABILITY AND RESILIENCE PROGRAM.

    (a) Establishment.--The Secretary shall establish a National 
Climate Change Vulnerability and Resilience Program to evaluate and 
make recommendations about local, regional, and national vulnerability 
and resilience to impacts relating to longer-term climatic changes and 
shorter-term climatic variations, including changes and variations 
resulting from human activities.
    (b) Consultation.--In designing the Program, the Secretary shall 
consult with Federal agencies participating in the United States Global 
Change Research Program established under section 103 of the Global 
Change Research Act of 1990 (15 U.S.C. 2933) and any other appropriate 
Federal, State, or local agency.
    (c) Office of Climate Change Vulnerability and Resilience 
Research.--The Secretary shall establish an Office of Climate Change 
Vulnerability and Resilience Research within the Department of 
Commerce, which shall--
            (1) be responsible for managing the Program; and
            (2) in accordance with the design of the Program, 
        coordinate climatic change and climatic variation vulnerability 
        and resilience research in the United States.
    (d) Vulnerability Assessments.--The Program shall include--
            (1) evaluations, based on historical data, current 
        observational data, and, where appropriate, available 
        predictions, of local, State, regional, and national 
        vulnerability to phenomena associated with climatic change and 
        climatic variation, including--
                    (A) severe weather events, such as severe 
                thunderstorms, tornadoes, and hurricanes;
                    (B) annual and interannual climate events, such as 
                the El Nino Southern Oscillation and the North Atlantic 
                Oscillation;
                    (C) changes in sea level and shifts in the 
                hydrological cycle;
                    (D) natural hazards, including tsunamis, droughts, 
                floods, and wildfires; and
                    (E) alterations of ecological communities as a 
                result of climatic change and climatic variation; and
            (2) the production of a vulnerability scorecard, in 
        cooperation with State and local institutions including 
        university researchers and programs, that assesses the 
        vulnerability and capacity of each State to respond to climatic 
        change and climatic variation hazards.
    (e) Preparedness Recommendations.--Not later than 2 years after the 
date of enactment of this Act, the Office shall submit to Congress a 
report that--
            (1) includes the vulnerability scorecards produced under 
        subsection (d)(2); and
            (2) identifies, and recommends implementation and funding 
        strategies for, short-term and long-term actions that may be 
        taken at the local, State, regional, or national level--
                    (A) to minimize climatic change and climatic 
                variation threats to human life and property;
                    (B) to minimize negative economic impacts of 
                climatic change and climatic variation; and
                    (C) to improve resilience to climatic change and 
                climatic variation hazards.
    (f) Vulnerability Research.--In addition to other responsibilities 
under this section, the Office shall--
            (1) apply the results of available vulnerability research 
        to develop and improve criteria that measure resilience to 
        climatic change and climatic variation hazards at the local, 
        State, regional, and national levels;
            (2) coordinate the implementation of short-term and long-
        term research programs based on the recommendations made under 
        subsection (e)(2);
            (3) measure progress in increasing the capacity of each 
        State to respond to climatic change and climatic variation 
        hazards, using the vulnerability scorecards produced under 
        subsection (d)(2) as a benchmark; and
            (4) not less than annually, review and, if appropriate due 
        to the availability of additional information, update the 
        vulnerability scorecards and the recommendations made under 
        subsection (e)(2).
    (g) Information and Technology Dissemination.--The Secretary 
shall--
            (1) make widely available appropriate information, 
        technologies, and products to assist local, State, regional, 
        and national efforts to reduce loss of life and property due to 
        climatic change and climatic variation; and
            (2) coordinate the dissemination of the information, 
        technologies, and products through all appropriate channels.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $10,000,000.
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