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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1745 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  1st Session
                                S. 1745

 To establish a cost of greenhouse gases for carbon dioxide, methane, 
    and nitrous oxide to be used by Federal agencies, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 5, 2019

 Mr. Bennet (for himself, Mr. Whitehouse, Mr. Van Hollen, Ms. Harris, 
  Mr. Cardin, Mrs. Feinstein, Mr. Merkley, Mr. Wyden, Ms. Smith, Mr. 
  Carper, Mrs. Gillibrand, Ms. Hirono, Ms. Klobuchar, Mr. Schatz, Mr. 
 Markey, Mr. Heinrich, and Ms. Cortez Masto) introduced the following 
bill; which was read twice and referred to the Committee on Environment 
                            and Public Works

_______________________________________________________________________

                                 A BILL

 
 To establish a cost of greenhouse gases for carbon dioxide, methane, 
    and nitrous oxide to be used by Federal agencies, 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.

    This Act may be cited as the ``Carbon Pollution Transparency Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) sound economic and policy analyses require that the 
        economic benefits of reducing climate change be considered 
        together with the costs of policies and measures to reduce 
        greenhouse gas emissions;
            (2) climate change, if not addressed, is projected to 
        inflict substantial damage on the economy and people of the 
        United States;
            (3) according to the Congressional Budget Office, the 
        Government Accountability Office, and the Office of Management 
        and Budget, the impacts of climate change are--
                    (A) costing United States taxpayers billions of 
                dollars annually; and
                    (B) putting pressure on the Federal budget;
            (4) the expenditures by the Federal Government resulting 
        from the effects of climate change are projected to increase, 
        and reducing greenhouse gas emissions presents an opportunity 
        to minimize those expenditures;
            (5) between calendar years 2008 and 2015, the United States 
        reduced carbon pollution from the energy sector by nearly 10 
        percent, while the economy grew more than 10 percent;
            (6) more than 1,200 companies are taking the cost of 
        climate change into consideration in business decisions;
            (7) estimates of the costs of greenhouse gases provide a 
        method and measure, grounded in scientific and economic 
        research, for monetizing--
                    (A) the costs of greenhouse gas emissions; and
                    (B) the benefits of reducing greenhouse gas 
                emissions;
            (8) the National Academies of Sciences, Engineering, and 
        Medicine has provided detailed recommendations for improving 
        the estimate of the costs of greenhouse gases for the purpose 
        of regulatory analysis;
            (9) the reduction of greenhouse gas emissions by other 
        countries benefits the United States by reducing climate risks 
        to the United States, and the reduction of greenhouse gas 
        emissions by the United States benefits other countries;
            (10) in light of the global nature of the problem of 
        greenhouse gas emissions, the interests of the United States 
        would be maximized if the United States were to use a 
        calculation method of the cost of climate pollution that 
        reflects global damages;
            (11) due to the nature of climate change risks, the returns 
        on mitigation may pay off in periods that would otherwise 
        involve substantial losses;
            (12) economic theory and evidence suggests that, for 
        actions with intergenerational consequences such as the 
        consequences of climate change, a discount rate approximately 
        equal to or less than the long-term yield on the debt of the 
        Treasury of the United States may be appropriate; and
            (13) it is imperative that the academic community continue 
        research on the cost of greenhouse gases.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Calculation method.--The term ``calculation method'' 
        means the method by which the costs of greenhouse gases are 
        calculated in accordance with subsections (a), (b), and (c) of 
        section 4, respectively.
            (2) Committee.--The term ``Committee'' means the Costs of 
        Greenhouse Gases Scientific Review Committee established under 
        section 7(a).
            (3) Costs of greenhouse gases.--
                    (A) In general.--The term ``costs of greenhouse 
                gases'' means the monetized present discounted values, 
                in dollars, of the current and future net costs to 
                society that result from--
                            (i) 1 ton of emissions of a specific 
                        greenhouse gas in a specific year, including, 
                        but not limited to, damage relating to--
                                    (I) a change in net agricultural 
                                productivity;
                                    (II) energy use;
                                    (III) human health;
                                    (IV) property damage from increased 
                                flood risk and sea level rise; and
                                    (V) to the maximum extent 
                                practicable, the value of the effect on 
                                ecosystem services due to climate 
                                change; and
                            (ii) the monetized present discounted 
                        values of the current and future net benefits 
                        to society from a 1-ton reduction of emissions 
                        of a specific greenhouse gas in a specific 
                        year, including a reduction in any damage 
                        described in clause (i).
                    (B) Inclusions.--The term ``costs of greenhouse 
                gases'' includes--
                            (i) the cost of carbon dioxide;
                            (ii) the cost of methane;
                            (iii) the cost of nitrous oxide; and
                            (iv) the cost of any other greenhouse gas 
                        estimated by the Working Group.
            (4) Working group.--The term ``Working Group'' means the 
        Interagency Working Group on the Costs of Greenhouse Gases 
        established under section 5(a).

SEC. 4. COST OF CARBON DIOXIDE, COST OF METHANE, AND COST OF NITROUS 
              OXIDE.

    (a) Cost of Carbon Dioxide.--In developing any rulemaking that 
requires a regulatory impact analysis, making any substantial 
procurement decision for which the cost of carbon dioxide is not 
applied before the date on which a revised version of the costs of 
greenhouse gases is finalized, the head of any Federal agency shall 
consider and document the cost of carbon dioxide in accordance with the 
amounts specified in the following table:

  Cost of Carbon Dioxide, 2010 Through 2050 (in 2007 Dollars per Metric
           Ton of Carbon Dioxide), Discount Rate and Statistic
------------------------------------------------------------------------
                                                      High Impact (95th
               5 Percent    3 Percent   2.5 Percent    Percentile at 3
    Year        Average      Average      Average      Percent Discount
                                                            Rate)
------------------------------------------------------------------------
2010         $10           $31          $50          $86
------------------------------------------------------------------------
2011         $11           $32          $51          $90
------------------------------------------------------------------------
2012         $11           $33          $53          $93
------------------------------------------------------------------------
2013         $11           $34          $54          $97
------------------------------------------------------------------------
2014         $11           $35          $55          $101
------------------------------------------------------------------------
2015         $11           $36          $56          $105
------------------------------------------------------------------------
2016         $11           $38          $57          $108
------------------------------------------------------------------------
2017         $11           $39          $59          $112
------------------------------------------------------------------------
2018         $12           $40          $60          $116
------------------------------------------------------------------------
2019         $12           $41          $61          $120
------------------------------------------------------------------------
2020         $12           $42          $62          $123
------------------------------------------------------------------------
2021         $12           $42          $63          $126
------------------------------------------------------------------------
2022         $13           $43          $64          $129
------------------------------------------------------------------------
2023         $13           $44          $65          $132
------------------------------------------------------------------------
2024         $13           $45          $66          $135
------------------------------------------------------------------------
2025         $14           $46          $68          $138
------------------------------------------------------------------------
2026         $14           $47          $69          $141
------------------------------------------------------------------------
2027         $15           $48          $70          $143
------------------------------------------------------------------------
2028         $15           $49          $71          $146
------------------------------------------------------------------------
2029         $15           $49          $72          $149
------------------------------------------------------------------------
2030         $16           $50          $73          $152
------------------------------------------------------------------------
2031         $16           $51          $74          $155
------------------------------------------------------------------------
2032         $17           $52          $75          $158
------------------------------------------------------------------------
2033         $17           $53          $76          $161
------------------------------------------------------------------------
2034         $18           $54          $77          $164
------------------------------------------------------------------------
2035         $18           $55          $78          $168
------------------------------------------------------------------------
2036         $19           $56          $79          $171
------------------------------------------------------------------------
2037         $19           $57          $81          $174
------------------------------------------------------------------------
2038         $20           $58          $82          $177
------------------------------------------------------------------------
2039         $20           $59          $83          $180
------------------------------------------------------------------------
2040         $21           $60          $84          $183
------------------------------------------------------------------------
2041         $21           $61          $85          $186
------------------------------------------------------------------------
2042         $22           $61          $86          $189
------------------------------------------------------------------------
2043         $22           $62          $87          $192
------------------------------------------------------------------------
2044         $23           $63          $88          $194
------------------------------------------------------------------------
2045         $23           $64          $89          $197
------------------------------------------------------------------------
2046         $24           $65          $90          $200
------------------------------------------------------------------------
2047         $24           $66          $92          $203
------------------------------------------------------------------------
2048         $25           $67          $93          $206
------------------------------------------------------------------------
2049         $25           $68          $94          $209
------------------------------------------------------------------------
2050         $26           $69          $95          $212
------------------------------------------------------------------------

    (b) Cost of Methane.--In developing any rulemaking that requires a 
regulatory impact analysis, making any substantial procurement decision 
for which the cost of methane is not applied before the date on which a 
revised version of the costs of greenhouse gases is finalized, the head 
of any Federal agency shall consider and document the cost of methane 
in accordance with the amounts specified in the following table:

  Cost of Methane, 2010 Through 2050 (in 2007 Dollars per Metric Ton of
                  Methane), Discount Rate and Statistic
------------------------------------------------------------------------
                                                      High Impact (95th
               5 Percent    3 Percent   2.5 Percent    Percentile at 3
    Year        Average      Average      Average      Percent Discount
                                                            Rate)
------------------------------------------------------------------------
2010         $370          $870         $1,200       $2,400
------------------------------------------------------------------------
2011         $380          $910         $1,200       $2,500
------------------------------------------------------------------------
2012         $400          $940         $1,300       $2,600
------------------------------------------------------------------------
2013         $420          $970         $1,300       $2,700
------------------------------------------------------------------------
2014         $440          $1,000       $1,300       $2,700
------------------------------------------------------------------------
2015         $450          $1,000       $1,400       $2,800
------------------------------------------------------------------------
2016         $470          $1,100       $1,400       $2,900
------------------------------------------------------------------------
2017         $490          $1,100       $1,500       $3,000
------------------------------------------------------------------------
2018         $510          $1,100       $1,500       $3,000
------------------------------------------------------------------------
2019         $520          $1,200       $1,500       $3,100
------------------------------------------------------------------------
2020         $540          $1,200       $1,600       $3,200
------------------------------------------------------------------------
2021         $560          $1,200       $1,600       $3,300
------------------------------------------------------------------------
2022         $590          $1,300       $1,700       $3,400
------------------------------------------------------------------------
2023         $610          $1,300       $1,700       $3,500
------------------------------------------------------------------------
2024         $630          $1,400       $1,800       $3,600
------------------------------------------------------------------------
2025         $650          $1,400       $1,800       $3,700
------------------------------------------------------------------------
2026         $670          $1,400       $1,900       $3,800
------------------------------------------------------------------------
2027         $700          $1,500       $1,900       $3,900
------------------------------------------------------------------------
2028         $720          $1,500       $2,000       $4,000
------------------------------------------------------------------------
2029         $740          $1,600       $2,000       $4,100
------------------------------------------------------------------------
2030         $760          $1,600       $2,000       $4,200
------------------------------------------------------------------------
2031         $790          $1,600       $2,100       $4,300
------------------------------------------------------------------------
2032         $820          $1,700       $2,100       $4,500
------------------------------------------------------------------------
2033         $850          $1,700       $2,200       $4,600
------------------------------------------------------------------------
2034         $880          $1,800       $2,200       $4,700
------------------------------------------------------------------------
2035         $900          $1,800       $2,300       $4,900
------------------------------------------------------------------------
2036         $930          $1,900       $2,400       $5,000
------------------------------------------------------------------------
2037         $960          $1,900       $2,400       $5,100
------------------------------------------------------------------------
2038         $990          $2,000       $2,500       $5,200
------------------------------------------------------------------------
2039         $1,000        $2,000       $2,500       $5,400
------------------------------------------------------------------------
2040         $1,000        $2,000       $2,600       $5,500
------------------------------------------------------------------------
2041         $1,100        $2,100       $2,600       $5,600
------------------------------------------------------------------------
2042         $1,100        $2,100       $2,700       $5,700
------------------------------------------------------------------------
2043         $1,100        $2,200       $2,700       $5,800
------------------------------------------------------------------------
2044         $1,200        $2,200       $2,800       $5,900
------------------------------------------------------------------------
2045         $1,200        $2,300       $2,800       $6,100
------------------------------------------------------------------------
2046         $1,200        $2,300       $2,900       $6,200
------------------------------------------------------------------------
2047         $1,300        $2,400       $2,900       $6,300
------------------------------------------------------------------------
2048         $1,300        $2,400       $3,000       $6,400
------------------------------------------------------------------------
2049         $1,300        $2,500       $3,000       $6,500
------------------------------------------------------------------------
2050         $1,300        $2,500       $3,100       $6,700
------------------------------------------------------------------------

    (c) Cost of Nitrous Oxide.--In developing any rulemaking that 
requires a regulatory impact analysis, making any substantial 
procurement decision for which the cost of nitrous oxide is not applied 
before the date on which a revised version of the costs of greenhouse 
gases is finalized, the head of any Federal agency shall consider and 
document the cost of nitrous oxide in accordance with the amounts 
specified in the following table:

Cost of Nitrous Oxide, 2010 Through 2050 (in 2007 Dollars per Metric Ton
             of Nitrous Oxide), Discount Rate and Statistic
------------------------------------------------------------------------
                                                      High Impact (95th
               5 Percent    3 Percent   2.5 Percent    Percentile at 3
    Year        Average      Average      Average      Percent Discount
                                                            Rate)
------------------------------------------------------------------------
2010         $3,400        $12,000      $18,000      $31,000
------------------------------------------------------------------------
2011         $3,500        $12,000      $18,000      $32,000
------------------------------------------------------------------------
2012         $3,700        $12,000      $19,000      $33,000
------------------------------------------------------------------------
2013         $3,800        $13,000      $19,000      $34,000
------------------------------------------------------------------------
2014         $3,900        $13,000      $20,000      $34,000
------------------------------------------------------------------------
2015         $4,000        $13,000      $20,000      $35,000
------------------------------------------------------------------------
2016         $4,200        $14,000      $20,000      $36,000
------------------------------------------------------------------------
2017         $4,300        $14,000      $21,000      $37,000
------------------------------------------------------------------------
2018         $4,400        $14,000      $21,000      $38,000
------------------------------------------------------------------------
2019         $4,600        $15,000      $22,000      $38,000
------------------------------------------------------------------------
2020         $4,700        $15,000      $22,000      $39,000
------------------------------------------------------------------------
2021         $4,900        $15,000      $23,000      $40,000
------------------------------------------------------------------------
2022         $5,000        $16,000      $23,000      $41,000
------------------------------------------------------------------------
2023         $5,200        $16,000      $23,000      $42,000
------------------------------------------------------------------------
2024         $5,400        $16,000      $24,000      $43,000
------------------------------------------------------------------------
2025         $5,500        $17,000      $24,000      $44,000
------------------------------------------------------------------------
2026         $5,700        $17,000      $25,000      $45,000
------------------------------------------------------------------------
2027         $5,900        $17,000      $25,000      $46,000
------------------------------------------------------------------------
2028         $6,000        $18,000      $26,000      $47,000
------------------------------------------------------------------------
2029         $6,200        $18,000      $26,000      $48,000
------------------------------------------------------------------------
2030         $6,300        $19,000      $27,000      $49,000
------------------------------------------------------------------------
2031         $6,500        $19,000      $27,000      $50,000
------------------------------------------------------------------------
2032         $6,800        $19,000      $28,000      $51,000
------------------------------------------------------------------------
2033         $7,000        $20,000      $28,000      $52,000
------------------------------------------------------------------------
2034         $7,200        $20,000      $29,000      $54,000
------------------------------------------------------------------------
2035         $7,400        $21,000      $29,000      $55,000
------------------------------------------------------------------------
2036         $7,600        $21,000      $30,000      $56,000
------------------------------------------------------------------------
2037         $7,800        $21,000      $30,000      $57,000
------------------------------------------------------------------------
2038         $8,000        $22,000      $31,000      $58,000
------------------------------------------------------------------------
2039         $8,200        $22,000      $31,000      $59,000
------------------------------------------------------------------------
2040         $8,400        $23,000      $32,000      $60,000
------------------------------------------------------------------------
2041         $8,600        $23,000      $32,000      $61,000
------------------------------------------------------------------------
2042         $8,800        $23,000      $33,000      $62,000
------------------------------------------------------------------------
2043         $9,100        $24,000      $33,000      $64,000
------------------------------------------------------------------------
2044         $9,300        $24,000      $34,000      $65,000
------------------------------------------------------------------------
2045         $9,500        $25,000      $34,000      $66,000
------------------------------------------------------------------------
2046         $9,800        $25,000      $35,000      $67,000
------------------------------------------------------------------------
2047         $10,000       $26,000      $35,000      $68,000
------------------------------------------------------------------------
2048         $10,000       $26,000      $36,000      $69,000
------------------------------------------------------------------------
2049         $10,000       $26,000      $36,000      $71,000
------------------------------------------------------------------------
2050         $11,000       $27,000      $37,000      $72,000
------------------------------------------------------------------------

    (d) Adjustment for Inflation.--The head of a Federal agency may 
adjust the costs described in the tables contained in subsections (a) 
through (c) for inflation.

SEC. 5. INTERAGENCY WORKING GROUP ON THE COSTS OF GREENHOUSE GASES.

    (a) Establishment.--The Director of the Office of Management and 
Budget, the Director of the Office of Science and Technology Policy, 
and the Chair of the Council of Economic Advisers shall establish an 
interagency working group, to be known as the ``Interagency Working 
Group on the Costs of Greenhouse Gases'' to carry out the calculation 
method revision evaluation described in section 6.
    (b) Membership.--The Working Group shall consist of members from--
            (1) the Council of Economic Advisers;
            (2) the Office of Science and Technology Policy;
            (3) the National Security Council;
            (4) the National Economic Council;
            (5) the Council on Environmental Quality;
            (6) the Department of Agriculture;
            (7) the Department of Commerce;
            (8) the Department of Energy;
            (9) the Department of the Interior;
            (10) the Department of Transportation;
            (11) the Department of the Treasury;
            (12) the Department of Health and Human Services;
            (13) the Environmental Protection Agency;
            (14) the National Oceanic and Atmospheric Administration;
            (15) the Federal Energy Regulatory Commission;
            (16) the United States Global Change Research Program; and
            (17) the Corps of Engineers.

SEC. 6. CALCULATION METHOD REVISION.

    (a) Revision Evaluation.--
            (1) In general.--Not later than 5 years after the date of 
        enactment of this Act, and not less frequently than once every 
        5 years thereafter, the Working Group shall carry out a 
        revision evaluation for the cost of carbon dioxide, cost of 
        methane, and cost of nitrous oxide to determine whether a 
        revision of the calculation method of the cost of carbon 
        dioxide, cost of methane, or cost of nitrous oxide is 
        necessary.
            (2) Considerations.--In carrying out a revision evaluation 
        under paragraph (1) or a revision under subsection (b), the 
        Working Group shall--
                    (A) consider--
                            (i) the findings of the National Academies 
                        of Sciences, Engineering, and Medicine relating 
                        to approaches to estimating the costs of 
                        greenhouse gases;
                            (ii) the findings of the Committee under 
                        section 7(a)(3);
                            (iii) advancements in scientific and 
                        economic research relating to the impacts of 
                        climate change and the estimation of the costs 
                        of greenhouse gases;
                            (iv) new domestic and international 
                        findings;
                            (v) the qualitative costs to society as a 
                        result of the categories of damage described in 
                        section 3(3)(A) that cannot be monetized and 
                        the impact on environmental justice 
                        communities; and
                            (vi) all harm caused by greenhouse gas 
                        emissions;
                    (B) assess any proposed revision of the calculation 
                method with respect to--
                            (i) consistency with the state of 
                        scientific knowledge, as reflected by current, 
                        peer-reviewed literature; and
                            (ii) the adequacy with which the proposed 
                        calculation method identifies and represents 
                        key uncertainties and sensitivities;
                    (C) evaluate the harm caused by greenhouse gas 
                emissions for the period beginning on the date on which 
                the applicable revision evaluation commences and ending 
                on a date in the future that would allow estimation of 
                the vast majority of discounted climate damages;
                    (D) apply 1 or more discount rates, which shall--
                            (i) account for the intergenerational 
                        nature of the harm caused by climate change; 
                        and
                            (ii) be consistent with the interest rate 
                        of consumption used by Federal agencies to 
                        reflect climate risk;
                    (E) include values that account for global damages 
                from greenhouse gas emissions;
                    (F) document the calculation method and present 
                results in a manner adequate for the scientific 
                community to understand and assess the calculation 
                method; and
                    (G) make available to researchers the model code 
                for review, use, and modification.
    (b) Revision.--
            (1) Calculation method.--If the Working Group makes a 
        determination under subsection (a)(1) that revision of the 
        calculation method is necessary, the Working Group shall draft 
        a proposed revision of the calculation method.
            (2) Public notification and comment period.--Any proposed 
        revision of the calculation method shall be published in the 
        Federal Register for a period of public comment of not fewer 
        than 90 days and include consultation with industry groups.
            (3) Effect of revisions by working group.--Any revised 
        calculation method of the cost of carbon dioxide, the cost of 
        methane, or the cost of nitrous oxide developed by the Working 
        Group under paragraph (1) and published under paragraph (2) 
        shall supersede the applicable discount rate value of the cost 
        of carbon dioxide, the cost of methane, or the cost of nitrous 
        oxide under section 4.

SEC. 7. COSTS OF GREENHOUSE GASES SCIENTIFIC REVIEW COMMITTEE.

    (a) Establishment.--
            (1) In general.--Not later than January 1, 2021, and not 
        less frequently than once every 5 years thereafter, the 
        Director of the Office of Management and Budget, in 
        consultation with the Director of the Office of Science and 
        Technology Policy and the Chair of the Council of Economic 
        Advisers, shall establish a committee, to be known as the 
        ``Costs of Greenhouse Gases Scientific Review Committee''.
            (2) Membership.--The membership of the Committee shall 
        consist of not fewer than 10 members, selected by the 
        presidents of the National Academies of Sciences, Engineering, 
        and Medicine, who shall represent scientific fields relevant to 
        the estimation of the costs of greenhouse gases, including--
                    (A) climate science;
                    (B) climate economics; and
                    (C) decision analysis.
            (3) Duties.--The Committee shall publish a report in which 
        the Committee shall--
                    (A) make a recommendation to the Working Group 
                regarding whether a revision of the calculation method 
                is necessary;
                    (B) if the Committee determines that a revision is 
                necessary, recommend scientific data and models to be 
                used by the Working Group in the revision of the 
                calculation method;
                    (C) provide scientific advice to the Working Group 
                on the revision; and
                    (D) provide guidance to the U.S. Global Change 
                Research Program with respect to the research necessary 
                to advance the estimation of the costs of greenhouse 
                gases.
    (b) Termination.--On the completion of the revision evaluation for 
which the Committee is established, the Committee shall terminate.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to administer the Committee.
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