II 

110TH CONGRESS 

1ST SESSION S. 1766 

To reduce greenhouse gas emissions from the production and use of energy, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 11, 2007 

Mr. BINGAMAN (for himself, Mr. SPECTER, Mr. HARKIN, Mr. STEVENS, Ms. 

MURKOWSKI, and Mr. AKAKA) introduced the following bill; which was 

read twice and referred to the Committee on Environment and Public 

Works 

A BILL 

To reduce greenhouse gas emissions from the production 

and use of energy, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Low Carbon Economy Act of 2007’’. 

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

7 as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 


hmoore on PRODPC68 with HMBILLS
2 

•S 1766 IS

TITLE I—STRATEGIC REDUCTION TARGETS, COMPLIANCE, AND 

TRADING 

Sec. 101. Quantity of annual allowances. 

Sec. 102. Submission of allowances, credits, and payments. 

Sec. 103. Trading system for allowances and credits. 

TITLE II—ALLOCATION AND AUCTION OF ALLOWANCES 

Sec. 201. General allocation and auction rules. 

Sec. 202. Allocation to industry sectors other than carbon-intensive manufacturing. 

Sec. 203. Allocation to carbon-intensive manufacturing. 

Sec. 204. Allocation to States. 

Sec. 205. Allocation for agricultural projects. 

Sec. 206. Allocation for early reductions. 

Sec. 207. Allocation of carbon capture and sequestration bonus allowances. 

Sec. 208. Auction of allowances for technology, adaptation, and assistance programs. 

TITLE III—PROVISION OF CREDITS 

Sec. 301. Credits for activities that take greenhouse gas precursors out of commerce in the United States. 

Sec. 302. Credits for carbon dioxide sequestration. 

Sec. 303. Credits for projects that offset other greenhouse gas emissions. 

TITLE IV—TECHNOLOGY, ADAPTATION, AND ASSISTANCE 

PROGRAMS 

Sec. 401. Early technology deployment programs. 

Sec. 402. Adaptation programs. 

Sec. 403. Assistance programs. 

TITLE V—PERIODIC REVIEW AND INTERNATIONAL LEADERSHIP 

Sec. 501. Executive branch and congressional review of program. 

Sec. 502. International reserve allowance requirement. 

TITLE VI—GENERAL PROVISIONS 

Sec. 601. Monitoring and reporting. 

Sec. 602. Enforcement. 

Sec. 603. Administrative provisions. 

Sec. 604. Judicial review. 

Sec. 605. Savings provision. 

1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) under the United Nations Framework Con4 vention on Climate Change, done at New York on 

5 May 9, 1992, the United States is committed to staVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
3 

•S 1766 IS

1 bilizing greenhouse gas concentrations in the atmos2 phere at a level that would prevent dangerous an3 thropogenic interference with the climate system; 

4 (2) according to the Fourth Assessment of the 

5 Intergovernmental Panel on Climate Change, pro6 tecting the climate system could require reductions 

7 of global greenhouse gas emissions equivalent to 50 

8 to 85 percent below 2000 levels by 2050; 

9 (3) meeting the commitment to stabilize green10 house gas emissions at appropriate levels will require 

11 a long-term global effort; and 

12 (4) it is possible and desirable to implement, in 

13 the United States, an economy-wide annual limit on 

14 greenhouse gas emissions for calendar year 2012 

15 and each subsequent calendar year, with the limit 

16 declining to 2006 levels by 2020, 1990 levels by 

17 2030, and at least 60 percent below 2006 levels by 

18 2050 (contingent on sufficient international effort), 

19 if the system includes— 

20 (A) cost mitigation measures, including a 

21 technology accelerator payment mechanism, 

22 banking, and offsets; 

23 (B) requirements for periodic Presidential 

24 reports and recommendations and expedited 

25 congressional procedures to adjust the strinVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
4 

•S 1766 IS

1 gency of the regulatory program on consider2 ation of new scientific information and the ef3 forts of other countries to reduce their emis4 sions; 

5 (C) an aggressive advanced energy tech6 nology deployment program to lower costs of 

7 compliance and to improve use of fuels; 

8 (D) a program to fund activities to address 

9 adaptation to a warming climate; and 

10 (E) a program to provide assistance to 

11 low-income persons who may be hardest hit by 

12 the costs of climate change and mitigation 

13 measures. 

14 SEC. 3. DEFINITIONS. 

15 In this Act: 

16 (1) ALLOCATION PERIOD.— 

17 (A) ALLOCATION PERIOD.—The term ‘‘al18 location period’’ means the initial allocation pe19 riod or a subsequent allocation period, as ap20 propriate. 

21 (B) INITIAL ALLOCATION PERIOD.—The 

22 term ‘‘initial allocation period’’ means the pe23 riod beginning January 1, 2012, and ending 

24 December 31, 2021. 


hmoore on PRODPC68 with HMBILLS
5 

•S 1766 IS

1 (C) SUBSEQUENT ALLOCATION PERIOD.— 

2 The term ‘‘subsequent allocation period’’ 

3 means— 

4 (i) the 5-year period beginning Janu5 ary 1, 2022, and ending December 31, 

6 2026; and 

7 (ii) each subsequent 5-year period. 

8 (2) CARBON DIOXIDE EQUIVALENT.—The term 

9 ‘‘carbon dioxide equivalent’’ means— 

10 (A) for each covered fuel, the quantity of 

11 carbon dioxide that would be emitted into the 

12 atmosphere as a result of complete combustion 

13 of a unit of the covered fuel, to be determined 

14 for the type of covered fuel by the President; 

15 and 

16 (B) for each greenhouse gas (other than 

17 carbon dioxide), the quantity of carbon dioxide 

18 that would have an effect on global warming 

19 equal to the effect of a unit of the greenhouse 

20 gas, as determined by the President, taking into 

21 consideration global warming potentials. 

22 (3) CLIMATE ADAPTATION FUND.—The term 

23 ‘‘Climate Adaptation Fund’’ means the Climate Ad24 aptation Fund established under section 

25 208(f)(1)(B). 


hmoore on PRODPC68 with HMBILLS
6 

•S 1766 IS

1 (4) COAL.—The term ‘‘coal’’ means any of the 

2 recognized classifications and ranks of coal, includ3 ing anthracite, bituminous, semibituminous, subbitu4 minous, lignite, peat, and fuel derivatives of coal. 

5 (5) COVERED FUEL.—The term ‘‘covered fuel’’ 

6 means— 

7 (A) coal; 

8 (B) petroleum products; 

9 (C) natural gas, including liquefied natural 

10 gas; 

11 (D) natural gas liquids; and 

12 (E) any other fuel derived from fossil hy13 drocarbons (including bitumen, kerogen, and 

14 coalbed methane). 

15 (6) COVERED GREENHOUSE GAS EMISSIONS.— 

16 (A) IN GENERAL.—The term ‘‘covered 

17 greenhouse gas emissions’’ means— 

18 (i) for a regulated coal facility in the 

19 United States, the emissions associated 

20 with coal consumed or converted to syn21 thetic fuels by the facility; 

22 (ii) for a petroleum refinery located in 

23 the United States, the emissions associated 

24 with petroleum products, that are refined, 

25 produced, or consumed at the refinery; 


hmoore on PRODPC68 with HMBILLS
7 

•S 1766 IS

1 (iii) for a natural gas processing plant 

2 in the United States, a quantity of emis3 sions equal to the sum of— 

4 (I) the emissions associated with 

5 natural gas liquids produced or con6 sumed at the plant; and 

7 (II) the emissions associated with 

8 natural gas delivered into commerce 

9 from, or consumed at, the plant; 

10 (iv) for an importer of petroleum 

11 products, coke, or natural gas (including 

12 liquefied natural gas) into the United 

13 States, the emissions associated with the 

14 petroleum products, coke, or natural gas 

15 imported; 

16 (v) for a manufacturer or importer of 

17 hydrofluorocarbons, perfluorocarbons, sul18 fur hexafluoride, or nitrous oxide or an im19 porter of a product containing hydrofluoro20 carbons, perfluorocarbons, sulfur hexa21 fluoride, or nitrous oxide, the quantity of 

22 hydrofluorocarbons, perfluorocarbons, sul23 fur hexafluoride, or nitrous oxide produced 

24 in the United States or imported by, or 


hmoore on PRODPC68 with HMBILLS
8 

•S 1766 IS

1 contained in products imported by, the 

2 manufacturer or importer; 

3 (vi) for a facility in the United States 

4 that manufactures adipic acid or nitric 

5 acid, the quantity of nitrous oxide emitted 

6 by the facility; 

7 (vii) for an aluminum smelter in the 

8 United States, the quantity of perfluoro9 carbons emitted by the smelter; 

10 (viii) for a facility in the United 

11 States that produces hydrochlorofluorocar12 bon–22, the quantity of hydrofluorocar13 bon–23 emitted by the facility; and 

14 (ix) such other emissions of green15 house gases from facilities in the United 

16 States that the President, by rule under 

17 section 102(g), determines is necessary to 

18 ensure that allowances are submitted for 

19 each covered fuel. 

20 (B) UNITS.—Quantities of covered green21 house gas emissions shall be measured and ex22 pressed in units of metric tons of carbon diox23 ide equivalent. 


hmoore on PRODPC68 with HMBILLS
9 

•S 1766 IS

1 (7) ELIGIBLE COAL MINE.—The term ‘‘eligible 

2 coal mine’’ means a coal mine located in the United 

3 States. 

4 (8) ELIGIBLE ELECTRIC GENERATION FACIL5 ITY.— 

6 (A) IN GENERAL.—The term ‘‘eligible elec7 tric generation facility’’ means a fossil-fuel-fired 

8 facility for the generation of electric energy lo9 cated in the United States. 

10 (B) EXCLUSION.—The term ‘‘eligible elec11 tric generation facility’’ does not include any fa12 cility described in subparagraph (A) that— 

13 (i) began operations after December 

14 31, 2006; and 

15 (ii) does not satisfy the criteria estab16 lished in section 202(c). 

17 (9) ELIGIBLE FACILITY.—The term ‘‘eligible fa18 cility’’ means— 

19 (A) an eligible coal mine; 

20 (B) an eligible electric generation facility; 

21 (C) an eligible natural gas processing 

22 plant; 

23 (D) an eligible nonfuel regulated facility; 

24 or 

25 (E) an eligible refinery. 


hmoore on PRODPC68 with HMBILLS
10 

•S 1766 IS

1 (10) ELIGIBLE NATURAL GAS PROCESSING

2 PLANT.—The term ‘‘eligible natural gas processing 

3 plant’’ means a natural gas processing plant located 

4 in the United States. 

5 (11) ELIGIBLE NONFUEL REGULATED FACIL6 ITY.—The term ‘‘eligible nonfuel regulated facility’’ 

7 means a nonfuel regulated facility located in the 

8 United States. 

9 (12) ELIGIBLE REFINERY.—The term ‘‘eligible 

10 refinery’’ means a petroleum refinery located in the 

11 United States. 

12 (13) ENERGY ASSISTANCE FUND.—The term 

13 ‘‘Energy Assistance Fund’’ means the Energy As14 sistance Fund established under section 

15 208(f)(1)(C). 

16 (14) ENERGY TECHNOLOGY DEPLOYMENT

17 FUND.—The term ‘‘Energy Technology Deployment 

18 Fund’’ means the Energy Technology Deployment 

19 Fund established under section 208(f)(1)(A). 

20 (15) GREENHOUSE GAS.—The term ‘‘green21 house gas’’ means— 

22 (A) carbon dioxide; 

23 (B) methane; 

24 (C) nitrous oxide; 

25 (D) hydrofluorocarbons; 


hmoore on PRODPC68 with HMBILLS
11 

•S 1766 IS

1 (E) perfluorocarbons; and 

2 (F) sulfur hexafluoride. 

3 (16) NATURAL GAS PROCESSING PLANT.—The 

4 term ‘‘natural gas processing plant’’ means a facility 

5 in the United States designed to separate natural 

6 gas liquids from natural gas. 

7 (17) NATURAL GAS PROCESSOR.—The term 

8 ‘‘natural gas processor’’ means the owner or oper9 ator of a natural gas processing plant. 

10 (18) NONFUEL REGULATED ENTITY.—The 

11 term ‘‘nonfuel regulated entity’’ means— 

12 (A) the owner or operator of a nonfuel reg13 ulated facility; and 

14 (B) an importer of— 

15 (i) hydrofluorocarbons, perfluorocar16 bons, sulfur hexafluoride, or nitrous oxide; 

17 or 

18 (ii) a product containing hydrofluoro19 carbons, perfluorocarbons, sulfur hexa20 fluoride, or nitrous oxide. 

21 (19) NONFUEL REGULATED FACILITY.—The 

22 term ‘‘nonfuel regulated facility’’ means a facility 

23 that— 


hmoore on PRODPC68 with HMBILLS
12 

•S 1766 IS

1 (A) manufactures hydrofluorocarbons, 

2 perfluorocarbons, sulfur hexafluoride, or nitrous 

3 oxide; 

4 (B) emits nitrous oxide associated with the 

5 manufacture of adipic acid or nitric acid; 

6 (C) is an aluminum smelter; or 

7 (D) emits hydrofluorocarbon–23 as a by8 product of hydrochlorofluorocarbon–22 produc9 tion. 

10 (20) OFFSET PROJECT.—The term ‘‘offset 

11 project’’ means any project to— 

12 (A) reduce greenhouse gas emissions; or 

13 (B) sequester or destroy a greenhouse gas. 

14 (21) PETROLEUM PRODUCT.—The term ‘‘petro15 leum product’’ means— 

16 (A) a refined petroleum product; 

17 (B) residual fuel oil; 

18 (C) petroleum coke; or 

19 (D) a liquefied petroleum gas. 

20 (22) REGULATED COAL FACILITY.—The term 

21 ‘‘regulated coal facility’’ means a facility that uses 

22 more than 5,000 tons of coal in a calendar year. 

23 (23) REGULATED ENTITY.—The term ‘‘regu24 lated entity’’ means— 

25 (A) a regulated fuel distributor; 


hmoore on PRODPC68 with HMBILLS
13 

•S 1766 IS

1 (B) the owner or operator of a regulated 

2 coal facility; 

3 (C) a nonfuel regulated entity; or 

4 (D) an entity designated by the President 

5 under section 102(g)(2). 

6 (24) REGULATED FUEL DISTRIBUTOR.—The 

7 term ‘‘regulated fuel distributor’’ means— 

8 (A) the owner or operator of— 

9 (i) a petroleum refinery; or 

10 (ii) a natural gas processing plant; or 

11 (B) an importer of— 

12 (i) petroleum products; 

13 (ii) coke; or 

14 (iii) natural gas (including liquefied 

15 natural gas). 

16 (25) SECRETARY.—The term ‘‘Secretary’’ 

17 means the Secretary of Energy. 

18 (26) STATE.—The term ‘‘State’’ means— 

19 (A) each of the several States of the 

20 United States; 

21 (B) the District of Columbia; 

22 (C) the Commonwealth of Puerto Rico; 

23 (D) Guam; 

24 (E) American Samoa; 


hmoore on PRODPC68 with HMBILLS
14 

•S 1766 IS

1 (F) the Commonwealth of the Northern 

2 Mariana Islands; 

3 (G) the Federated States of Micronesia; 

4 (H) the Republic of the Marshall Islands; 

5 (I) the Republic of Palau; and 

6 (J) the United States Virgin Islands. 

7 (27) TAP.—The term ‘‘TAP’’ means the tech8 nology accelerator payment determined under section 

9 102. 

10 (28) UNITED STATES.—The term ‘‘United 

11 States’’, when used in the geographic sense, means 

12 all of the States. 

13 TITLE I—STRATEGIC REDUC14 TION TARGETS, COMPLIANCE, 

15 AND TRADING 

16 SEC. 101. QUANTITY OF ANNUAL ALLOWANCES. 

17 The President shall issue a total quantity of allow18 ances for covered greenhouse gas emissions for each cal19 endar year in accordance with the following table: 

Calendar Year 

Millions of 

Metric Tons 

of Covered 

Greenhouse 

Gas Emissions 

2012 ....................................................................................... 6,652

2013 ....................................................................................... 6,592

2014 ....................................................................................... 6,533

2015 ....................................................................................... 6,474

2016 ....................................................................................... 6,416

2017 ....................................................................................... 6,358

2018 ....................................................................................... 6,301


hmoore on PRODPC68 with HMBILLS
15 

•S 1766 IS

Calendar Year 

Millions of 

Metric Tons 

of Covered 

Greenhouse 

Gas Emissions 

2019 ....................................................................................... 6,245

2020 ....................................................................................... 6,188

2021 ....................................................................................... 6,097

2022 ....................................................................................... 6,006

2023 ....................................................................................... 5,915

2024 ....................................................................................... 5,823

2025 ....................................................................................... 5,732

2026 ....................................................................................... 5,550

2027 ....................................................................................... 5,367

2028 ....................................................................................... 5,184

2029 ....................................................................................... 5,002

2030 and each calendar year thereafter ............................... 4,819. 

1 SEC. 102. SUBMISSION OF ALLOWANCES, CREDITS, AND 

2 PAYMENTS. 

3 (a) REQUIREMENT.—For calendar year 2012 and 

4 each calendar year thereafter, each regulated entity shall 

5 submit to the President— 

6 (1) the number of allowances or credits equal to 

7 the covered greenhouse gas emissions of the regu8 lated entity; or 

9 (2) a payment equal to the amount of the appli10 cable TAP price in lieu of submission of 1 or more 

11 required allowances. 

12 (b) DEADLINE FOR SUBMISSION.—Each regulated 

13 entity required to submit an allowance under this section 

14 shall submit the allowance, credit, or payment under sub15 section (a) not later than March 31 of the calendar year 


hmoore on PRODPC68 with HMBILLS
16 

•S 1766 IS

1 following the calendar year for which the allowance is re2 quired to be submitted. 

3 (c) RULES.—The President shall promulgate such 

4 rules as the President determines to be necessary or ap5 propriate to— 

6 (1) identify and register each regulated entity 

7 that is required to submit an allowance under this 

8 section; and 

9 (2) require the submission of reports and other10 wise obtain any information the President deter11 mines to be necessary to calculate or verify the com12 pliance of a regulated entity with any requirement 

13 under this section. 

14 (d) DETERMINATION OF APPLICABLE TAP PRICE.— 

15 The applicable TAP price per allowance shall be— 

16 (1) for calendar year 2012, $12 per metric ton 

17 of carbon dioxide equivalent; and 

18 (2) for each subsequent calendar year, an 

19 amount equal to the product obtained by multi20 plying— 

21 (A) the TAP price established for the pre22 ceding calendar year increased by 5 percent; 

23 and 

24 (B) the ratio that— 


hmoore on PRODPC68 with HMBILLS
17 

•S 1766 IS

1 (i) the implicit price deflator for the 

2 gross domestic product, as computed and 

3 published by the Department of Commerce 

4 for the most recent 4-calendar quarter pe5 riod for which data is available; bears to 

6 (ii) the implicit price deflator for the 

7 gross domestic product, as computed and 

8 published by the Department of Commerce 

9 for the 4-calendar quarter period imme10 diately preceding the period referred to in 

11 clause (i). 

12 (e) DISPOSITION OF RECEIPTS.—The funds received 

13 under subsection (a)(2) shall be deposited into the Energy 

14 Technology Deployment Fund. 

15 (f) EXEMPTION.—The President may exempt from 

16 the requirements of this Act a regulated entity for any 

17 period during which the President determines, after pro18 viding an opportunity for public comment, that measuring 

19 or estimating the quantity of covered greenhouse gas emis20 sions by the entity is not feasible. 

21 (g) ADJUSTMENTS.— 

22 (1) MODIFICATION.—The President may mod23 ify, by rule, the quantity of covered greenhouse gas 

24 emissions attributable to a regulated entity if the 


hmoore on PRODPC68 with HMBILLS
18 

•S 1766 IS

1 President determines that the modification is nec2 essary to ensure that— 

3 (A) allowances are submitted for all quan4 tities of covered greenhouse gas emissions; and 

5 (B) allowances are not submitted for the 

6 same quantity of covered greenhouse gas emis7 sions by more than 1 regulated entity. 

8 (2) EXTENSION.—The President may extend, 

9 by rule, the requirement to submit allowances under 

10 this section to an entity that is not otherwise a regu11 lated entity if the President determines that the ex12 tension is necessary to ensure that allowances are 

13 submitted for all covered greenhouse gas emissions. 

14 (3) APPLICATION TO NATURAL GAS.— 

15 (A) IN GENERAL.—Rules under para16 graphs (1) and (2) shall ensure that— 

17 (i) the requirements of subsection (a) 

18 are met for any natural gas that is not im19 ported or processed by a natural gas proc20 essor; and 

21 (ii) more than 1 allowance is not re22 quired to be submitted for a unit of nat23 ural gas that is imported and subsequently 

24 processed in the United States. 


hmoore on PRODPC68 with HMBILLS
19 

•S 1766 IS

1 (B) ALASKA NATURAL GAS.—In the case 

2 of natural gas produced in Alaska and not re3 injected in the field, the producer of the natural 

4 gas and any associated natural gas liquids shall 

5 be considered to be the natural gas processor 

6 and the regulated fuel distributor of the natural 

7 gas and natural gas liquids. 

8 (h) STUDY ON PROCESS EMISSIONS.—Not later than 

9 2 years after the date of enactment of this Act, the Presi10 dent shall— 

11 (1) carry out studies of the technical and eco12 nomic feasibility of requiring the submission of al13 lowances for process emissions not otherwise covered 

14 by this title; and 

15 (2) submit to Congress a report that describes 

16 the results of the study (including recommendations 

17 of the President based on those results). 

18 (i) NEXT GENERATION METHANE REDUCTION AND

19 USE TECHNOLOGIES.— 

20 (1) REPORT.—Not later than 1 year after the 

21 date of enactment of this Act, the President shall 

22 submit to Congress a report that— 

23 (A) assesses the potential for next genera24 tion technologies that can reduce and use methVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
20 

•S 1766 IS

1 ane emissions from natural sources and the en2 ergy, agricultural, and waste sectors; and 

3 (B) includes recommendations for funding 

4 research and development and technology de5 ployment programs for the most promising 

6 technologies. 

7 (2) DEMONSTRATION PROJECTS.—The Sec8 retary shall use a portion of the funds provided 

9 under paragraph (3) to support demonstration 

10 projects that use methane capture and use tech11 nologies. 

12 (3) FUNDING.—Of the funds in the Energy 

13 Technology Deployment Fund, the Secretary, in con14 sultation with the Administrator of the Environ15 mental Protection Agency and the Secretary of the 

16 Interior, shall use to carry out a methane research 

17 and development program (including demonstration 

18 projects), without further appropriation, 

19 $10,000,000 for each of fiscal years 2010 through 

20 2019. 

21 (j) RETIREMENT OF ALLOWANCES.— 

22 (1) IN GENERAL.—Any person or entity that is 

23 not subject to this Act may submit to the President 

24 an allowance for retirement at any time. 


hmoore on PRODPC68 with HMBILLS
21 

•S 1766 IS

1 (2) ACTION BY PRESIDENT.—On receipt of an 

2 allowance under paragraph (1), the President— 

3 (A) shall accept the allowance; and 

4 (B) shall not allocate, auction, or otherwise 

5 reissue the allowance. 

6 SEC. 103. TRADING SYSTEM FOR ALLOWANCES AND CRED7 ITS. 

8 (a) ADMINISTRATIVE REQUIREMENTS.— 

9 (1) DENOMINATION.—Allowances and credits 

10 issued by the President under this Act shall be de11 nominated in units of metric tons of carbon dioxide 

12 equivalent. 

13 (2) PERIOD OF USE AND BANKING.—An allow14 ance or credit issued by the President under this Act 

15 may be used during— 

16 (A) the calendar year for which the allow17 ance or credit is issued; or 

18 (B) any subsequent calendar year. 

19 (3) SERIAL NUMBERS.—The President shall— 

20 (A) assign a unique serial number to each 

21 allowance or credit issued under this Act; and 

22 (B) retire the serial number of an allow23 ance or credit on the date on which the allow24 ance or credit is submitted. 

25 (b) TRADING SYSTEM.— 


hmoore on PRODPC68 with HMBILLS
22 

•S 1766 IS

1 (1) IN GENERAL.—The President shall— 

2 (A) establish, by rule, a trading system 

3 under which allowances and credits may be 

4 sold, exchanged, purchased, or transferred by 

5 any person or entity, including a registry for 

6 issuing, recording, and tracking allowances and 

7 credits; and 

8 (B) specify all procedures and require9 ments required for orderly functioning of the 

10 trading system. 

11 (2) TRANSPARENCY.— 

12 (A) IN GENERAL.—The trading system 

13 under paragraph (1) shall include such provi14 sions as the President considers to be appro15 priate to— 

16 (i) facilitate price transparency and 

17 participation in the market for allowances 

18 and credits; and 

19 (ii) protect buyers and sellers of allow20 ances and credits, and the public, from the 

21 adverse effects of collusion and other anti22 competitive behaviors. 

23 (B) AUTHORITY TO OBTAIN INFORMA24 TION.—The President may obtain any informa25 tion the President considers to be necessary to 


hmoore on PRODPC68 with HMBILLS
23 

•S 1766 IS

1 carry out this subsection from any person or 

2 entity that buys, sells, exchanges, or otherwise 

3 transfers an allowance or credit. 

4 (c) NATURE OF ALLOWANCES AND CREDITS.—An al5 lowance or credit that is allocated or distributed under this 

6 Act shall not constitute a security or property right. 

7 TITLE II—ALLOCATION AND 

8 AUCTION OF ALLOWANCES 

9 SEC. 201. GENERAL ALLOCATION AND AUCTION RULES. 

10 (a) PERCENTAGE OF ALLOWANCES AVAILABLE FOR

11 ALLOCATION AND AUCTION.— 

12 (1) CALENDAR YEARS 2012 THROUGH 2030.— 

13 For each of calendar years 2012 through 2030, the 

14 percentage of the total quantity of allowances issued 

15 and available for allocation, sequestration and early 

16 reduction projects, and auction shall be determined 

17 in accordance with the following table: 

Year

Auction Allocation 

to Industry Sectors (Regulated 

and Nonregulated 

Entities) 

Set-Aside Programs 

Allocation to 

States Technology Adaption 

Low-Income Assistance 

Agriculture 

Sequestration 

Early 

Reduction 

CCS 

Bonus 

Allowance 

2012 12 8 4 53 5 1 8 9 

2013 12 8 4 53 5 1 8 9 

2014 12 8 4 53 5 1 8 9 

2015 12 8 4 53 5 1 8 9 

2016 12 8 4 53 5 1 8 9 

2017 13 9 4 51 5 1 8 9 


hmoore on PRODPC68 with HMBILLS
24 

•S 1766 IS

Year

Auction Allocation 

to Industry Sectors (Regulated 

and Nonregulated 

Entities) 

Set-Aside Programs 

Allocation to 

States Technology Adaption 

Low-Income Assistance 

Agriculture 

Sequestration 

Early 

Reduction 

CCS 

Bonus 

Allowance 

2018 14 10 4 49 5 1 8 9 

2019 15 11 4 47 5 1 8 9 

2020 16 12 4 45 5 1 8 9 

2021 17 13 5 43 5 0 8 9 

2022 18 14 5 41 5 0 8 9 

2023 19 15 5 39 5 0 8 9 

2024 20 16 5 37 5 0 8 9 

2025 21 17 5 35 5 0 8 9 

2026 22 18 5 33 5 0 8 9 

2027 23 19 5 31 5 0 8 9 

2028 24 20 5 29 5 0 8 9 

2029 25 21 5 27 5 0 8 9 

2030 26 22 5 25 5 0 8 9 

1 (2) CALENDAR YEAR 2031 AND SUBSEQUENT

2 CALENDAR YEARS.—For calendar year 2031 and 

3 each subsequent calendar year, the percentage of the 

4 total quantity of allowances issued shall be equal to 

5 the percentages allocated under paragraph (1) for 

6 calendar year 2030, as adjusted as follows: 

7 (A) The percentages allocated to tech8 nology and adaptation shall each increase by 1 

9 percentage point for each of calendar years 

10 2031 through 2043. 

11 (B) The percentage allocated to industry 

12 sectors shall decrease by 2 percentage points 

13 for each of calendar years 2031 through 2043. 


hmoore on PRODPC68 with HMBILLS
25 

•S 1766 IS

1 (C) For calendar year 2043 and each sub2 sequent calendar year, the percentages for tech3 nology, adaptation, and industry sectors shall 

4 be established at 39, 36, and 0, respectively. 

5 (b) ALLOCATION OF ALLOWANCES.— 

6 (1) ALLOCATIONS.—Except as otherwise spe7 cifically provided in this Act, not later than the date 

8 that is 2 years before the beginning of the initial al9 location period, and each subsequent allocation pe10 riod, the President shall, by rule, allocate for each 

11 calendar year during the allocation period a quantity 

12 of allowances in accordance with this subsection. 

13 (2) QUANTITY.—The total quantity of allow14 ances available to be allocated for each calendar year 

15 of an allocation period shall be the product obtained 

16 by multiplying— 

17 (A) the total quantity of allowances issued 

18 for the calendar year under section 101; and 

19 (B) the allocation percentage for the cal20 endar year under subsection (a). 

21 (3) ALLOWANCE ALLOCATION RULEMAKING.— 

22 Not later than 18 months after the date of enact23 ment of this Act, the President shall establish, by 

24 rule, procedures for allocating allowances in accord25 ance with the criteria established under this subVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
26 

•S 1766 IS

1 section, including forms, schedules for submission, 

2 and other requirements for the reporting of informa3 tion necessary for the allocation of allowances under 

4 this section. 

5 (4) COST OF ALLOWANCES.—The President 

6 shall distribute allowances under this title at no cost 

7 to the recipient of the allowance. 

8 (c) ALLOCATION WITHIN INDUSTRY SECTORS.—The 

9 allowances available for allocation to industry under sub10 section (b)(2) shall be distributed to industry sectors as 

11 follows: 

Industry Sector Facilities within Industry Sector 

Percentage 

of Allowances Allocated to Industry 

Coal Eligible Coal Mine 12 

Refining Eligible Petroleum Refineries 7 

Natural Gas Eligible Natural Gas 

Processing Plants 

4 

Electric Power Eligible Electric Generation Facilities 54 

Nonfuel Entities Eligible Nonfuel Regulated Facilities 4 

Carbon-intensive Manufacturing Eligible Manufacturing 

Facilities 

19 

12 SEC. 202. ALLOCATION TO INDUSTRY SECTORS OTHER 

13 THAN CARBON-INTENSIVE MANUFACTURING. 

14 (a) DEFINITIONS.—In this section: 

15 (1) CALCULATED BASELINE EMISSIONS.—The 

16 term ‘‘calculated baseline emissions’’ means, for an 


hmoore on PRODPC68 with HMBILLS
27 

•S 1766 IS

1 eligible electric generation facility that is a new eligi2 ble facility or a new entrant facility, the product ob3 tained by multiplying— 

4 (A) the nameplate capacity of the facility; 

5 (B) the national average capacity factor 

6 for the type of generation facility during the 

7 most recent 3-year period for which data are 

8 available; and 

9 (C) the applicable emission rate established 

10 by the President pursuant to subsection (c), as 

11 determined as of the date on which the facility 

12 is first eligible to receive allowances. 

13 (2) CARBON CONTENT ALLOCATION FACTOR.— 

14 The term ‘‘carbon content allocation factor’’ 

15 means— 

16 (A) in the case of an eligible coal mine, the 

17 carbon dioxide equivalent of the coal produced 

18 at the coal mine; 

19 (B) in the case of an eligible electric gen20 eration facility— 

21 (i) if the eligible electric generation 

22 facility is an existing eligible facility, the 

23 carbon dioxide emissions of the facility; or 

24 (ii) if the eligible electric generation 

25 facility is a new eligible facility or a new 


hmoore on PRODPC68 with HMBILLS
28 

•S 1766 IS

1 entrant facility, the calculated baseline 

2 emissions of the facility; and 

3 (C) in the case of an eligible petroleum re4 finery, an eligible gas processing facility, or an 

5 eligible nonfuel regulated facility, the covered 

6 greenhouse gas emissions of the facility. 

7 (3) EXISTING ELIGIBLE FACILITY.—The term 

8 ‘‘existing eligible facility’’ means an eligible facility 

9 that began operation prior to January 1, 2007. 

10 (4) NEW ELIGIBLE FACILITY.—The term ‘‘new 

11 eligible facility’’ means an eligible facility that began 

12 operation after December 31, 2006, and before the 

13 allocation is made for an allocation period. 

14 (5) NEW ENTRANT FACILITY.—The term ‘‘new 

15 entrant facility’’, with respect to an allocation pe16 riod, means an eligible facility that began operation 

17 during or after the calendar year in which the allo18 cation rule was promulgated under section 201(b)(1) 

19 for that allocation period. 

20 (b) ALLOCATION.— 

21 (1) TOTAL ALLOCATION.—For each calendar 

22 year, eligible facilities (other than new entrant facili23 ties) within an industry sector shall be allocated 92 

24 percent of the total quantity of allowances available 


hmoore on PRODPC68 with HMBILLS
29 

•S 1766 IS

1 for allocation to that industry sector under section 

2 201(c). 

3 (2) GENERAL RULE FOR ALLOCATION TO INDI4 VIDUAL FACILITIES.—For each calendar year, the 

5 quantity of allowances allocated to each eligible facil6 ity (other than a new entrant facility) within an in7 dustry sector shall be the quantity equal to the prod8 uct obtained by multiplying— 

9 (A) the total allocation to eligible facilities 

10 (other than new entrant facilities) in that sector 

11 under paragraph (1); and 

12 (B) the ratio that— 

13 (i) the carbon content allocation fac14 tor for that facility during the 3-year pe15 riod beginning on January 1, 2004 (or, in 

16 the case of a new eligible facility, during 

17 the first 3 years of operation); bears to 

18 (ii) the sum of the carbon content al19 location factors for all eligible facilities 

20 (other than new entrant facilities) in that 

21 sector, as determined pursuant to clause 

22 (i). 

23 (3) ALLOCATION FOR NEW ENTRANTS.— 

24 (A) IN GENERAL.—For each calendar year, 

25 8 percent of the total quantity of allowances 


hmoore on PRODPC68 with HMBILLS
30 

•S 1766 IS

1 available for allocation to an industry sector 

2 under section 201(c) shall be available for allo3 cation to new entrant facilities in that sector, as 

4 determined under subparagraphs (B) and (C). 

5 (B) INDIVIDUAL ALLOCATIONS.—Each cal6 endar year, the President shall allocate allow7 ances to any new entrant facility for that cal8 endar year equal to the product obtained by 

9 multiplying— 

10 (i) the carbon content allocation fac11 tor for that facility for the prior calendar 

12 year; and 

13 (ii) the ratio that (for that calendar 

14 year)— 

15 (I) the allowances allocated under 

16 paragraph (1) to the applicable indus17 try sector; bears to 

18 (II) the sum of the carbon con19 tent allocation factors for all eligible 

20 facilities (other than new entrant fa21 cilities) in that sector. 

22 (C) RELATIONSHIP TO AUCTION.— 

23 (i) INSUFFICIENT ALLOCATIONS.—If 

24 the allowances available for allocation to 

25 new entrant facilities under subparagraph 


hmoore on PRODPC68 with HMBILLS
31 

•S 1766 IS

1 (A) are insufficient to enable the alloca2 tions required under subparagraph (B) to 

3 be made, the additional required allow4 ances shall be deducted from the allow5 ances available for auction under section 

6 208. 

7 (ii) SURPLUS ALLOCATIONS.—If the 

8 President does not allocate under subpara9 graph (B) all the allowances available for 

10 new entrants under subparagraph (A), any 

11 unallocated allowances shall be added to 

12 the allowances available for auction. 

13 (c) ELIGIBILITY CRITERIA FOR POST-2006 ELEC14 TRIC GENERATION FACILITIES.— 

15 (1) CRITERIA.—The President shall establish, 

16 by rule, emissions rate criteria for— 

17 (A) natural gas-fired generation facilities 

18 for electric energy, based on the carbon dioxide 

19 per kilowatt hour emission rate of new natural 

20 gas combined cycle facilities; and 

21 (B) coal-fired generation facilities for elec22 tric energy that commence operation after De23 cember 31, 2006, based on the lowest economi24 cally achievable carbon dioxide per kilowatt 

25 hour emission rate for a facility of that type. 


hmoore on PRODPC68 with HMBILLS
32 

•S 1766 IS

1 (2) REVIEW AND REVISION.—The President— 

2 (A) shall review the criteria in advance of 

3 the allocation for each subsequent allocation pe4 riod; and 

5 (B) may revise the criteria by rule. 

6 (3) EFFECTIVE DATE OF REVISIONS.—Any revi7 sion of the criteria shall apply only with respect to 

8 eligible electricity generation facilities beginning op9 eration after the effective date of the revised cri10 terion. 

11 SEC. 203. ALLOCATION TO CARBON-INTENSIVE MANUFAC12 TURING. 

13 (a) DEFINITIONS.—In this section: 

14 (1) CURRENTLY OPERATING FACILITY.—The 

15 term ‘‘currently operating facility’’ means an eligible 

16 manufacturing facility that had significant oper17 ations during the calendar year preceding the cal18 endar year for which the allocation rule is promul19 gated under section 201(b) for an allocation period. 

20 (2) ELIGIBLE MANUFACTURING FACILITY.— 

21 (A) IN GENERAL.—The term ‘‘eligible 

22 manufacturing facility’’ means a manufacturing 

23 facility located in the United States that prin24 cipally manufactures iron, steel, aluminum, 

25 pulp, paper, cement, chemicals, or such other 


hmoore on PRODPC68 with HMBILLS
33 

•S 1766 IS

1 products as the President may determine, by 

2 rule, are likely to be significantly disadvantaged 

3 in competitive international markets as a result 

4 of indirect costs of the program established 

5 under this Act. 

6 (B) EXCLUSION.—The term ‘‘eligible man7 ufacturing facility’’ does not include a facility 

8 eligible to receive allowances under section 202 

9 or any electric generator. 

10 (3) INDIRECT CARBON DIOXIDE EMISSIONS.— 

11 The term ‘‘indirect carbon dioxide emissions’’ means 

12 the product obtained by multiplying (as determined 

13 by the President)— 

14 (A) the quantity of electricity consumption 

15 at an eligible manufacturing facility; and 

16 (B) the rate of carbon dioxide emission per 

17 kilowatt-hour output for the region in which the 

18 manufacturer is located. 

19 (4) NEW ENTRANT MANUFACTURING FACIL20 ITY.—The term ‘‘new entrant manufacturing facil21 ity’’, with respect to an allocation period, means an 

22 eligible manufacturing facility that began operation 

23 during or after the calendar year for which the allo24 cation rule was promulgated under subsection 

25 201(b) for that allocation period. 


hmoore on PRODPC68 with HMBILLS
34 

•S 1766 IS

1 (b) TOTAL ALLOCATION FOR CURRENTLY-OPER2 ATING FACILITIES.—For each calendar year, currently-op3 erating facilities shall be allocated 96 percent of the total 

4 quantity of allowances available for allocation to carbon5 intensive manufacturing under section 201(c). 

6 (c) TOTAL ALLOCATION FOR CURRENTLY-OPER7 ATING FACILITIES IN EACH CATEGORY OF MANUFAC8 TURING FACILITIES.—The quantity of allowances avail9 able for allocation to facilities in each category of cur10 rently-operating facilities shall be equal to the product ob11 tained by multiplying— 

12 (1) the total quantity of allowances available for 

13 allocation under subsection (b); and 

14 (2) the ratio that (during the year preceding 

15 the calendar year for which the allocation rule is 

16 promulgated for the allocation period)— 

17 (A) the sum of the direct and indirect car18 bon dioxide emissions by currently-operating fa19 cilities in the category; bears to 

20 (B) the sum of the direct and indirect car21 bon dioxide emissions by all currently-operating 

22 facilities. 

23 (d) INDIVIDUAL ALLOCATIONS TO CURRENTLY-OP24 ERATING FACILITIES.—For each calendar year of the allo25 cation period, the quantity of allowances allocated to a 


hmoore on PRODPC68 with HMBILLS
35 

•S 1766 IS

1 currently-operating facility shall be the quantity equal to 

2 the product obtained by multiplying— 

3 (1) the total quantity of allowances available for 

4 allocation to currently-operating facilities in the ap5 propriate category, as determined under subsection 

6 (c); and 

7 (2) the ratio that (during the 3 calendar years 

8 preceding the year for which the allocation rule is 

9 promulgated for the allocation period)— 

10 (A) the average number of production em11 ployees employed at the facility; bears to 

12 (B) the average number of production em13 ployees employed at all existing eligible manu14 facturing facilities in the appropriate category. 

15 (e) REVOCATION OF ALLOWANCES ON FACILITY

16 SHUT DOWN.—If an eligible manufacturing facility re17 ceived an allocation of allowances under this section for 

18 an allocation period and is subsequently permanently shut 

19 down during the allocation period, the facility shall 

20 promptly return to the President allowances equal to the 

21 allowances received for calendar years after the calendar 

22 year of the shut down. 

23 (f) NEW ENTRANT MANUFACTURING FACILITIES.— 

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

25 percent of the total quantity of allowances available 


hmoore on PRODPC68 with HMBILLS
36 

•S 1766 IS

1 for allocation to carbon intensive manufacturing 

2 under section 201(c) shall be allocated to new en3 trant manufacturing facilities. 

4 (2) INDIVIDUAL ALLOCATIONS.—Each calendar 

5 year, the President shall allocate allowances to any 

6 new entrant manufacturing facility for that calendar 

7 year in a quantity equal to the product obtained by 

8 multiplying— 

9 (A) the average number of production em10 ployees employed at the new entrant manufac11 turing facility during the prior calendar year; 

12 and 

13 (B) the rate (in allowances per production 

14 employee) at which allowances were allocated to 

15 currently-operating facilities in the appropriate 

16 category for the calendar year, as determined 

17 under subsection (d). 

18 (3) RELATIONSHIP TO AUCTION.—Section 

19 202(b)(3)(C) shall be applicable to allowances for 

20 new entrant manufacturing facilities to the same ex21 tent that section 202(b)(3)(C) applies to allowances 

22 for other new entrant facilities. 

23 SEC. 204. ALLOCATION TO STATES. 

24 (a) DISTRIBUTION.—Not later than the date that is 

25 2 years before the 5-year period beginning January 1, 


hmoore on PRODPC68 with HMBILLS
37 

•S 1766 IS

1 2012 and ending December 31, 2017, and each subse2 quent 5-year period, the President shall, by rule, allocate 

3 for each calendar year during the relevant 5-year period 

4 a quantity of allowances in accordance with this section. 

5 (b) DISTRIBUTION.—The allowances available for al6 location to States under section 201(b) for an allocation 

7 period shall be distributed as follows: 

(1) For each calendar year of the period, 1 8 ⁄2 of 

9 the quantity of allowances available for allocation to 

10 States under section 201(b) shall be allocated to in11 dividual States based on the ratio that— 

12 (A) the greenhouse gas emissions of the 

13 State during the 3 calendar years preceding the 

14 calendar year for which the allocation rule is 

15 promulgated for the period; bears to 

16 (B) the greenhouse gas emissions of all 

17 States for that period. 

(2) For each calendar year of the period, 1 18 ⁄2 of 

19 the quantity of allowances available for allocation to 

20 States under section 201(b) shall be allocated among 

21 the States based on the ratio that— 

22 (A) the population of the State, as deter23 mined by the most recent decennial census pre24 ceding the calendar year for which the allocaVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
38 

•S 1766 IS

1 tion rule is promulgated for the allocation pe2 riod; bears to 

3 (B) the population of all States as deter4 mined by that census. 

5 (c) USE.— 

6 (1) IN GENERAL.—During any calendar year, a 

7 State shall use not less than 90 percent of the allow8 ances allocated to the State (or proceeds of sale of 

9 those allowances) for that calendar year— 

10 (A) to mitigate impacts on low-income en11 ergy consumers; 

12 (B) to promote energy efficiency (including 

13 support of electricity demand reduction, waste 

14 minimization, and recycling programs); 

15 (C) to promote investment in nonemitting 

16 electricity generation technology; 

17 (D) to encourage advances in energy tech18 nology that reduce or sequester greenhouse gas 

19 emissions; 

20 (E) to avoid distortions in competitive elec21 tricity markets; 

22 (F) to mitigate obstacles to investment by 

23 new entrants in electricity generation markets 

24 and energy-intensive manufacturing sectors; 


hmoore on PRODPC68 with HMBILLS
39 

•S 1766 IS

1 (G) to address local or regional impacts of 

2 climate change policy, including providing as3 sistance to displaced workers; 

4 (H) to mitigate impacts on energy-inten5 sive industries in internationally competitive 

6 markets; or 

7 (I) to enhance energy security. 

8 (2) DEADLINE.—A State shall distribute or sell 

9 allowances for use in accordance with paragraph (1) 

10 by not later than 1 year before the beginning of each 

11 allowance allocation period. 

12 (3) RETURN OF ALLOWANCES.—Not later than 

13 330 days before the beginning of each period, a 

14 State shall return to the President any allowances 

15 not distributed by the deadline in paragraph (2). 

16 SEC. 205. ALLOCATION FOR AGRICULTURAL PROJECTS. 

17 (a) AGRICULTURAL GREENHOUSE GAS MANAGE18 MENT RESEARCH.— 

19 (1) REPORT.—Not later than 1 year after the 

20 date of enactment of this Act, the Secretary of Agri21 culture, in consultation with scientific and agricul22 tural experts, shall prepare and submit to Congress 

23 a report that describes the status of research on ag24 ricultural greenhouse gas management, including a 

25 description of— 


hmoore on PRODPC68 with HMBILLS
40 

•S 1766 IS

1 (A) research on soil carbon sequestration 

2 and other agricultural greenhouse gas manage3 ment that has been carried out; 

4 (B) any additional research that is nec5 essary; 

6 (C) the proposed priority for additional re7 search; 

8 (D) the most appropriate approaches for 

9 conducting the additional research; and 

10 (E) the manner is which carbon credits 

11 that are specific to agricultural operations 

12 should be valued and allotted. 

13 (2) STANDARDIZED SYSTEM OF SOIL CARBON

14 MEASUREMENT AND CERTIFICATION FOR THE AGRI15 CULTURAL SECTOR.— 

16 (A) IN GENERAL.—As soon as practicable 

17 after the date of enactment of this Act, the Sec18 retary of Agriculture shall establish a standard19 ized system of soil carbon measurement and 

20 certification for the agricultural sector. 

21 (B) ADMINISTRATION.—In establishing the 

22 system, the Secretary shall— 

23 (i) create a standardized system of 

24 measurements for agricultural greenhouse 

25 gases that takes into account crop type, 


hmoore on PRODPC68 with HMBILLS
41 

•S 1766 IS

1 fertilizer and water inputs, soil type, region 

2 or weather, tilling practices, and other rel3 evant factors; and 

4 (ii) delineate the most appropriate 

5 system of certification of credit by public 

6 or private entities. 

7 (3) RESEARCH.—After the date of submission 

8 of the report described in paragraph (1), the Presi9 dent and the Secretary of Agriculture (in collabora10 tion with the member institutions of higher edu11 cation of the Consortium for Agricultural Soil Miti12 gation of Greenhouse Gases, institutions of higher 

13 education, and research entities) shall initiate a pro14 gram to conduct any additional research that is nec15 essary relating to soil carbon sequestration and 

16 other agricultural sector greenhouse gas emissions 

17 for all agricultural sectors, including trees and 

18 grassland. 

19 (b) AGRICULTURAL SEQUESTRATION ALLOW20 ANCES.—Taking into account the report prepared under 

21 subsection (a)(1), the Secretary of Agriculture shall estab22 lish, by rule, a program under which agricultural seques23 tration allowances may be distributed to entities that carry 

24 out sequestration projects on agricultural land that 


hmoore on PRODPC68 with HMBILLS
42 

•S 1766 IS

1 achieve long-term greenhouse gas emission mitigation ben2 efits. 

3 (c) QUANTITY.—During a calendar year, the Sec4 retary of Agriculture shall distribute agricultural seques5 tration allowances in a quantity not greater than the prod6 uct obtained by multiplying— 

7 (1) the total number of allowances issued for 

8 the calendar year under section 101(a); and 

9 (2) the percentage of allowances available for 

10 agricultural sequestration under section 201(a). 

11 (d) RELATIONSHIP TO AUCTION.— 

12 (1) INSUFFICIENT ALLOWANCES.—If the allow13 ances available for agricultural sequestration under 

14 subsection (c) are insufficient to enable the alloca15 tions required under the program established under 

16 subsection (b) to be made, the additional required 

17 allowances shall be deducted from allowances avail18 able for auction under section 208. 

19 (2) SURPLUS ALLOWANCES.—If the Secretary 

20 of Agriculture does not allocate under this sub21 section all of the allowances available for agricultural 

22 sequestration, any unallocated allowances shall be 

23 added to the allowances available for auction under 

24 section 208. 


hmoore on PRODPC68 with HMBILLS
43 

•S 1766 IS

1 (e) EDUCATION AND OUTREACH SERVICES.—The 

2 Secretary of Agriculture, acting through the Cooperative 

3 State Research, Education, and Extension Service, shall 

4 carry out a program to provide— 

5 (1) education and outreach services to agricul6 tural producers relating to— 

7 (A) the carbon sequestering ability of soil 

8 by region, plant type, soil type, cropping prac9 tice, and water availability; 

10 (B) the soil and environmental benefits of 

11 carbon sequestration; 

12 (C) the transition to carbon sequestering 

13 soil techniques; 

14 (D) other agricultural sector greenhouse 

15 gas emission reduction activities; and 

16 (E) the rules and earning potential of par17 ticipating in private and public carbon trading 

18 systems; and 

19 (2) education and outreach services to 

20 aggregators relating to— 

21 (A) the management of carbon credits for 

22 agricultural producers; and 

23 (B) the assistance provided to agricultural 

24 producers for the management required for car25 bon trading systems. 


hmoore on PRODPC68 with HMBILLS
44 

•S 1766 IS

1 (f) COMPETITIVE GRANTS.— 

2 (1) IN GENERAL.—The Secretary of Agriculture 

3 shall carry out a program to provide competitive 

4 grants to conduct research, education, and outreach 

5 service projects under this section within and outside 

6 of the Department of Agriculture. 

7 (2) PRIORITY.—In making grants under para8 graph (1), the Secretary of Agriculture shall give 

9 priority to community organizations and producer 

10 groups. 

11 (3) LIMITATIONS.— 

12 (A) RESEARCH PROJECTS.—The maximum 

13 amount of a grant awarded for a research 

14 project under this subsection shall be $500,000. 

15 (B) EDUCATIONAL AND OUTREACH

16 PROJECTS.—The maximum amount of a grant 

17 awarded for an education or outreach project 

18 under this subsection shall be $50,000. 

19 (4) FUNDING.—Of the funds of the Energy 

20 Technology Deployment Fund, the Secretary of Ag21 riculture shall use to carry out this subsection, with22 out further appropriation, $10,000,000 for each of 

23 fiscal years 2008 through 2013, to remain available 

24 until expended. 


hmoore on PRODPC68 with HMBILLS
45 

•S 1766 IS

1 SEC. 206. ALLOCATION FOR EARLY REDUCTIONS. 

2 (a) ESTABLISHMENT.— 

3 (1) IN GENERAL.—The President shall estab4 lish, by rule, a program under which the President 

5 may distribute to any entity that carries out a 

6 project to reduce or sequester greenhouse gas emis7 sions before the initial allocation period a quantity 

8 of allowances that reflects the actual emissions re9 ductions or net sequestration of the project, as de10 termined by the President. 

11 (2) INSUFFICIENT ALLOWANCES.—The Presi12 dent shall establish procedures for distribution of al13 lowances if the total quantity of eligible early reduc14 tions exceeds the quantity of allowances available 

15 under subsection (b). 

16 (b) AVAILABLE ALLOWANCES.—The total quantity of 

17 allowances distributed under subsection (a) may not ex18 ceed the product obtained by multiplying— 

19 (1) the total number of allowances issued for 

20 the calendar year under section 101(a); and 

21 (2) the percentage available for early reduction 

22 allowances for the calendar year under section 

23 201(a). 

24 (c) ELIGIBILITY.—The President may distribute al25 lowances only for early reduction projects that— 


hmoore on PRODPC68 with HMBILLS
46 

•S 1766 IS

1 (1) are consistent with maintaining the environ2 mental integrity of the program under this Act; and 

3 (2) were reported under— 

4 (A) the Voluntary Reporting of Green5 house Gases Program of the Energy Informa6 tion Administration under section 1605(b) of 

7 the Energy Policy Act of 1992 (42 U.S.C. 

8 13385(b)); 

9 (B) the Climate Leaders Program of the 

10 Environmental Protection Agency; or 

11 (C) a State-administered or privately ad12 ministered registry that includes early reduction 

13 actions not covered under the programs de14 scribed in subparagraph (A) or (B). 

15 SEC. 207. ALLOCATION OF CARBON CAPTURE AND SEQUES16 TRATION BONUS ALLOWANCES. 

17 (a) BONUS ALLOWANCES FOR NEAR-TERM GEOLOGI18 CAL SEQUESTRATION PROJECTS.— 

19 (1) ESTABLISHMENT.— 

20 (A) IN GENERAL.—The President shall es21 tablish, by rule, a demonstration program under 

22 which the President shall encourage near-term 

23 development of certain geological sequestration 

24 projects by distributing bonus allowances to en25 tities that implement the projects. 


hmoore on PRODPC68 with HMBILLS
47 

•S 1766 IS

1 (B) ADDITIONAL ALLOWANCES.—The dis2 tribution of bonus allowances shall be in addi3 tion to any credits distributed for the projects 

4 under section 302. 

5 (2) QUALIFYING PROJECTS.—To be eligible for 

6 bonus allowances under this subsection, a project 

7 shall— 

8 (A) comply with such procedures as the 

9 President may establish for crediting geological 

10 sequestration projects under sections 302 and 

11 303; 

12 (B) sequester carbon dioxide emissions re13 sulting from electric power generation; and 

14 (C) have begun operation during the period 

15 beginning January 1, 2008, and ending Decem16 ber 31, 2030. 

17 (3) ALLOCATION OF BONUS ALLOWANCES.— 

18 Each calendar year, the President shall distribute 

19 bonus allowances to each qualifying project under 

20 this subsection in a quantity equal to the product 

21 obtained by multiplying the number of tons seques22 tered by the project and the bonus allowance rate 

23 for that calendar year as provided in the following 

24 table: 


hmoore on PRODPC68 with HMBILLS
48 

•S 1766 IS

Calendar Year 

Bonus Allowance 

Rate 

2012 3.5 

2013 3.5 

2014 3.5 

2015 3.5 

2016 3.5 

2017 3.5 

2018 3.3 

2019 3.1 

2020 2.9 

2021 2.7 

2022 2.5 

2023 2.3 

2024 2.1 

2025 1.9 

2026 1.7 

2027 1.5 

2028 1.3 

2029 1.1 

2030 0.9 

2031 0.7 

2032 0.5 

2033 0.5 

2034 0.5 

2035 0.5 

2036 0.5 

2037 0.5 


hmoore on PRODPC68 with HMBILLS
49 

•S 1766 IS

Calendar Year 

Bonus Allowance 

Rate 

2038 0.5 

2039 0.5 

2040 0.0 

1 (4) 10-YEAR LIMIT.—A qualifying project may 

2 receive annual bonus allowances under this sub3 section only for the first 10 years of operation. 

4 (5) RELATIONSHIP TO AUCTION.— 

5 (A) INSUFFICIENT BONUS ALLOWANCES.— 

6 If the bonus allowances available for geological 

7 sequestration (as determined by multiplying the 

8 total number of allowances issued for a cal9 endar year under section 101(a) and the per10 centage for geological sequestration under sec11 tion 201(a)) are insufficient to enable the allo12 cations required under paragraph (3) to be 

13 made, the additional required allowances shall 

14 be deducted from allowances available for auc15 tion under section 208. 

16 (B) SURPLUS BONUS ALLOWANCES.—If 

17 the President does not allocate under this sub18 section all of the allowances available for geo19 logical sequestration, any unallocated allow20 ances shall be added to the allowances available 

21 for auction under section 208. 


hmoore on PRODPC68 with HMBILLS
50 

•S 1766 IS

1 (b) REPORT ON GEOLOGICAL SEQUESTRATION

2 PROJECTS.—Not later than 1 year after the date of enact3 ment of this Act, the President shall submit to Congress 

4 a report on the environmental, health, and safety issues 

5 surrounding the long-term storage of large quantities of 

6 carbon dioxide emissions in geological formations, includ7 ing any legislative recommendations to address liability for 

8 releases of carbon dioxide emissions from the formations. 

9 SEC. 208. AUCTION OF ALLOWANCES FOR TECHNOLOGY, 

10 ADAPTATION, AND ASSISTANCE PROGRAMS. 

11 (a) PROCEDURE.—The President shall establish, by 

12 rule, a procedure for the auction of allowances for each 

13 calendar year in accordance with this section. 

14 (b) BASE QUANTITY.—Subject to subsection (c), the 

15 base quantity of allowances to be auctioned for a calendar 

16 year shall be the product obtained by multiplying— 

17 (1) the total number of allowances issued for 

18 the calendar year under section 101(a); and 

19 (2) the percentage for technology, adaptation, 

20 and low-income household assistance for the cal21 endar year under section 201(a). 

22 (c) ADJUSTMENTS TO NUMBER OF ALLOWANCES

23 AUCTIONED.—For any calendar year, the quantity of al24 lowances shall be equal to the base quantity of allowances 

25 determined pursuant to subsection (b)— 


hmoore on PRODPC68 with HMBILLS
51 

•S 1766 IS

1 (1) minus any excess allowances needed to— 

2 (A) allocate allowances to a new entrant 

3 facility under section 202(b)(3); 

4 (B) allocate allowances to a new entrant 

5 manufacturing facility under section 203(f); 

6 (C) allocate allowances for an agricultural 

7 sequestration project under section 205; or 

8 (D) allocate carbon capture and sequestra9 tion bonus allowances under section 207(a); and 

10 (2) plus any allowances that were— 

11 (A) available for allocation by the Presi12 dent under section 201(b) for the calendar year 

13 but not distributed; 

14 (B) available for allocation for the pro15 ceeding calendar year for new entrant facilities 

16 under section 202(b)(3) but not distributed 

17 during that calendar year; 

18 (C) returned to the President by the owner 

19 or operator of a shut down eligible manufac20 turing facility under section 203(e); 

21 (D) available for allocation for the pre22 ceding calendar year for new entrant manufac23 turing facilities under section 203(f) but not 

24 distributed during that calendar year; 


hmoore on PRODPC68 with HMBILLS
52 

•S 1766 IS

1 (E) returned to the President by a State 

2 under section 204(b)(3); 

3 (F) available during the preceding calendar 

4 year for allocation to an agricultural project 

5 under section 205 but not distributed during 

6 that calendar year; or 

7 (G) available during the preceding calendar 

8 year for allocation as a carbon capture and se9 questration bonus allowance under section 

10 207(a) but not distributed during that calendar 

11 year. 

12 (d) ALLOCATION OF REDUCTION OR INCREASE.— 

13 Any reduction or increase in auction allowances under 

14 subsection (c) shall be allocated among technology, adap15 tation, and low-income household assistance in the same 

16 ratio as the base quantity of allowances is allocated be17 tween technology, adaptation, and low-income household 

18 assistance under section 201(a). 

19 (e) SCHEDULE.—The auction of allowances shall be 

20 held on the following schedule: 

21 (1) In 2009, the President shall auction— 

(A) 1 22 ⁄2 of the allowances available for auc23 tion for 2012; and 

(B) 1 24 ⁄2 of the allowances available for auc25 tion for 2013. 


hmoore on PRODPC68 with HMBILLS
53 

•S 1766 IS

(2) In 2010, the President shall auction 1 1 ⁄2 of 

2 the allowances available for auction for 2014. 

(3) In 2011, the President shall auction 1 3 ⁄2 of 

4 the allowances available for auction for 2015. 

5 (4) In 2012 and each subsequent calendar year, 

6 the President shall auction— 

(A) 1 7 ⁄2 of the allowances available for auc8 tion for that calendar year; and 

(B) 1 9 ⁄2 of the allowances available for auc10 tion for the calendar year that is 4 calendar 

11 years after that calendar year. 

12 (f) AUCTION PROCEEDS.— 

13 (1) ESTABLISHMENT OF FUNDS.—There are es14 tablished in the Treasury the following funds: 

15 (A) The Energy Technology Deployment 

16 Fund. 

17 (B) The Climate Adaptation Fund. 

18 (C) The Energy Assistance Fund. 

19 (2) DEPOSIT OF FUNDS.—Subject to paragraph 

20 (3), the President shall deposit into the funds under 

21 paragraph (1) the proceeds of auctions of allowances 

22 under this section, in the same ratio as the base 

23 quantity of allowances for the applicable year for 

24 technology, adaptation, and low-income household 

25 assistance, respectively, under section 201(a). 


hmoore on PRODPC68 with HMBILLS
54 

•S 1766 IS

1 (3) LIMITATION.—Any auction proceeds that 

2 would otherwise be deposited into the funds estab3 lished under subparagraphs (A) and (B) of para4 graph (1) shall be treated as miscellaneous receipts 

5 of the United States and deposited into the general 

6 fund of the Treasury to the extent that the funds ex7 ceed— 

8 (A) for calendar year 2009, 

9 $25,000,000,000; and 

10 (B) for each subsequent year, the product 

11 obtained by multiplying— 

12 (i) the amount of the limitation estab13 lished for the preceding year; by 

14 (ii) the ratio described in section 

15 102(d)(2)(B). 

16 TITLE III—PROVISION OF 

17 CREDITS 

18 SEC. 301. CREDITS FOR ACTIVITIES THAT TAKE GREEN19 HOUSE GAS PRECURSORS OUT OF COM20 MERCE IN THE UNITED STATES. 

21 (a) IN GENERAL.—The President shall establish, by 

22 rule, a program under which the President distributes 

23 credits to United States entities for certain downstream 

24 activities in accordance with this section. 


hmoore on PRODPC68 with HMBILLS
55 

•S 1766 IS

1 (b) USE OF FUELS AS FEEDSTOCKS.—If the Presi2 dent determines that an entity has used a covered fuel 

3 (other than coal) as a feedstock in calendar year 2012 or 

4 any calendar year thereafter, so that the carbon dioxide 

5 associated with the covered fuel will not be emitted, the 

6 President shall distribute to that entity a quantity of cred7 its equal to the quantity of covered fuel used as feedstock 

8 by the entity during that calendar year, measured in car9 bon dioxide equivalents. 

10 (c) EXPORTERS OF COVERED FUEL.—If the Presi11 dent determines that an entity has exported covered fuel 

12 (other than coal) (including exports of natural gas from 

13 Alaska to Canada for reimportation into the United 

14 States) in calendar year 2012 or any calendar year there15 after, the President shall distribute to that entity a quan16 tity of credits equal to the quantity of covered fuel ex17 ported by the entity during that calendar year, measured 

18 in carbon dioxide equivalents. 

19 (d) OTHER EXPORTERS.—If the President deter20 mines that an entity has exported hydrofluorocarbons, 

21 perfluorocarbons, sulfur hexafluoride, or nitrous oxide in 

22 calendar year 2012 or any calendar year thereafter, the 

23 President shall distribute to that entity a quantity of cred24 its equal to the volume of hydrofluorocarbons, perfluoro25 carbons, sulfur hexafluoride, or nitrous oxide exported by 


hmoore on PRODPC68 with HMBILLS
56 

•S 1766 IS

1 the entity during that calendar year, measured in carbon 

2 dioxide equivalents. 

3 (e) HYDROFLUOROCARBON DESTRUCTION.—If the 

4 President determines that an entity has destroyed hydro5 fluorocarbons in calendar year 2012 or any calendar year 

6 thereafter, the President shall distribute to that entity a 

7 quantity of credits equal to the volume of hydrofluorocar8 bons destroyed by the entity during that calendar year, 

9 measured in carbon dioxide equivalents. 

10 SEC. 302. CREDITS FOR CARBON DIOXIDE SEQUESTRATION. 

11 If the President determines that an entity has seques12 tered in calendar year 2012 or any calendar year there13 after carbon dioxide emissions in a geological formation 

14 in a manner the President determines will achieve long15 term greenhouse gas mitigation benefits, the President 

16 shall distribute to that entity a quantity of credits equal 

17 to the quantity of carbon dioxide sequestered by the entity 

18 during that calendar year. 

19 SEC. 303. CREDITS FOR PROJECTS THAT OFFSET OTHER 

20 GREENHOUSE GAS EMISSIONS. 

21 (a) ESTABLISHMENT.—The President shall establish, 

22 by rule, a program under which the President shall dis23 tribute credits to entities that carry out offset projects in 

24 the United States that— 


hmoore on PRODPC68 with HMBILLS
57 

•S 1766 IS

1 (1)(A) reduce any greenhouse gas emissions 

2 that are not covered greenhouse gas emissions in 

3 calendar year 2012 or any calendar year thereafter; 

4 or 

5 (B) sequester a greenhouse gas in calendar year 

6 2012 or any calendar year thereafter; 

7 (2) meet the requirements of section 601(c); 

8 and 

9 (3) are consistent with maintaining the environ10 mental integrity of the program under this Act. 

11 (b) CATEGORIES OF OFFSET PROJECTS ELIGIBLE

12 FOR STREAMLINED PROCEDURES.— 

13 (1) IN GENERAL.—The program established 

14 under this section shall include the use of stream15 lined procedures for distributing credits to categories 

16 of projects for which the President determines there 

17 are broadly accepted standards or methodologies for 

18 quantifying and verifying the long-term greenhouse 

19 gas emission mitigation benefits of the projects. 

20 (2) CATEGORIES OF PROJECTS.—The stream21 lined procedures described in paragraph (1) shall 

22 apply to— 

23 (A) landfill methane use projects; 

24 (B) animal waste or municipal wastewater 

25 methane use projects; 


hmoore on PRODPC68 with HMBILLS
58 

•S 1766 IS

1 (C) projects to reduce sulfur hexafluoride 

2 emissions from transformers; 

3 (D) coal mine methane use projects; and 

4 (E) such other categories of projects as the 

5 President may specify by rule. 

6 (c) DISTRIBUTION OF CREDITS.— 

7 (1) IN GENERAL.—If the President determines 

8 that an entity has carried out an offset project in 

9 calendar year 2012 or any calendar year thereafter 

10 that is eligible under this section, the President shall 

11 distribute to that entity a quantity of credits equal 

12 to the volume of greenhouse gas emissions reduced 

13 or sequestered during that calendar year, measured 

14 in carbon dioxide equivalents. 

15 (2) UNCLASSIFIED PROJECTS.—With respect to 

16 an offset project that is not classified within any 

17 project category described in subsection (b), the 

18 President may distribute less than 1 credit for each 

19 ton of greenhouse gas emissions reduced or seques20 tered, measured in carbon dioxide equivalents. 

21 (d) INELIGIBLE OFFSET PROJECTS.—An offset 

22 project shall not be eligible to receive a credit under this 

23 section if the offset project is eligible to receive credits 

24 or allowances under section 205, 206, 207, 301, or 302. 


hmoore on PRODPC68 with HMBILLS
59 

•S 1766 IS

1 TITLE IV—TECHNOLOGY, ADAP2 TATION, AND ASSISTANCE 

3 PROGRAMS 

4 SEC. 401. EARLY TECHNOLOGY DEPLOYMENT PROGRAMS. 

5 (a) IN GENERAL.— 

6 (1) ALLOCATION.—Beginning in fiscal year 

7 2010, the Secretary shall use 80 percent of the 

8 funds deposited in the Energy Technology Deploy9 ment Fund (other than funds used under sections 

10 102(i)(3) and 205(f)(4)), without further appropria11 tion or fiscal year limitation, as follows: 

12 (A) 45 percent of the funds shall be used 

13 to carry out the zero- or low-carbon energy 

14 technologies program under subsection (b). 

15 (B) 35 percent of the funds shall be used 

16 as follows: 

17 (i) 28 percent shall be used to carry 

18 out the advanced coal and sequestration 

19 technologies program under subsection (c). 

20 (ii) 7 percent shall be used to carry 

21 out the cellulosic biomass ethanol and mu22 nicipal solid waste technology deployment 

23 programs. 


hmoore on PRODPC68 with HMBILLS
60 

•S 1766 IS

1 (C) 20 percent shall be used to carry out 

2 the advanced technology vehicles manufacturing 

3 incentive program under subsection (e). 

4 (2) ADJUSTMENT OF PROGRAM FUNDING PRO5 PORTIONS.— 

6 (A) REVIEW.—Not later than September 

7 30, 2013, the Secretary shall enter into appro8 priate arrangements with the National Academy 

9 of Sciences to review, every 10 years, the fund10 ing categories and percentages under this sub11 section to determine if the categories and per12 centages are responsive to the greatest needs 

13 and opportunities for deployment of advanced 

14 energy technology to mitigate climate change. 

15 (B) ADJUSTMENT.—On receipt of the re16 port by the National Academy of Sciences, the 

17 Secretary may, by rule, adjust the funding cat18 egories and percentages under this subsection 

19 to implement the recommendations by the Na20 tional Academy of Sciences. 

21 (b) ZERO- OR LOW-CARBON ENERGY TECHNOLOGIES

22 DEPLOYMENT.— 

23 (1) DEFINITIONS.—In this subsection: 

24 (A) ENERGY SAVINGS.—The term ‘‘energy 

25 savings’’ means megawatt-hours of electricity or 


hmoore on PRODPC68 with HMBILLS
61 

•S 1766 IS

1 million British thermal units of natural gas 

2 saved by a product, in comparison to projected 

3 energy consumption under the energy efficiency 

4 standard applicable to the product. 

5 (B) HIGH-EFFICIENCY CONSUMER PROD6 UCT.—The term ‘‘high-efficiency consumer 

7 product’’ means a covered product to which an 

8 energy conservation standard applies under sec9 tion 325 of the Energy Policy and Conservation 

10 Act (42 U.S.C. 6295), if the energy efficiency 

11 of the product exceeds the energy efficiency re12 quired under the standard. 

13 (C) ZERO- OR LOW-CARBON GENERA14 TION.—The term ‘‘zero- or low-carbon genera15 tion’’ means generation of electricity by an elec16 tric generation unit that— 

17 (i) emits no carbon dioxide into the 

18 atmosphere, or is fossil-fuel fired and emits 

19 into the atmosphere not more than 250 

20 pounds of carbon dioxide per megawatt21 hour (after adjustment for any carbon di22 oxide from the unit that is geologically se23 questered); and 

24 (ii) was placed into commercial service 

25 after the date of enactment of this Act. 


hmoore on PRODPC68 with HMBILLS
62 

•S 1766 IS

1 (2) FINANCIAL INCENTIVES PROGRAM.—During 

2 each fiscal year beginning on or after October 1, 

3 2008, the Secretary shall competitively award finan4 cial incentives under this subsection in the following 

5 technology categories: 

6 (A) Production of electricity from new 

7 zero- or low-carbon generation. 

8 (B) Manufacture of high-efficiency con9 sumer products. 

10 (3) REQUIREMENTS.— 

11 (A) IN GENERAL.—The Secretary shall 

12 make awards under this subsection to producers 

13 of new zero- or low-carbon generation and to 

14 manufacturers of high-efficiency consumer 

15 products— 

16 (i) in the case of producers of new 

17 zero- or low-carbon generation, based on 

18 the bid of each producer in terms of dol19 lars per megawatt-hour of electricity gen20 erated; and 

21 (ii) in the case of manufacturers of 

22 high-efficiency consumer products, based 

23 on the bid of each manufacturer in terms 

24 of dollars per megawatt-hour or million 

25 British thermal units saved. 


hmoore on PRODPC68 with HMBILLS
63 

•S 1766 IS

1 (B) ACCEPTANCE OF BIDS.— 

2 (i) IN GENERAL.—In making awards 

3 under this subsection, the Secretary 

4 shall— 

5 (I) solicit bids for reverse auction 

6 from appropriate producers and man7 ufacturers, as determined by the Sec8 retary; and 

9 (II) award financial incentives to 

10 the producers and manufacturers that 

11 submit the lowest bids that meet the 

12 requirements established by the Sec13 retary. 

14 (ii) FACTORS FOR CONVERSION.— 

15 (I) IN GENERAL.—For the pur16 pose of assessing bids under clause 

17 (i), the Secretary shall specify a factor 

18 for converting megawatt-hours of elec19 tricity and million British thermal 

20 units of natural gas to common units. 

21 (II) REQUIREMENT.—The con22 version factor shall be based on the 

23 relative greenhouse gas emission bene24 fits of electricity and natural gas con25 servation. 


hmoore on PRODPC68 with HMBILLS
64 

•S 1766 IS

1 (C) INELIGIBLE UNITS.—A new unit for 

2 the generation of electricity that uses renewable 

3 energy resources shall not be eligible to receive 

4 an award under this subsection if the unit re5 ceives renewable energy credits under a Federal 

6 renewable portfolio standard. 

7 (4) FORMS OF AWARDS.— 

8 (A) ZERO- AND LOW-CARBON GENERA9 TORS.—An award for zero- or low-carbon gen10 eration under this subsection shall be in the 

11 form of a contract to provide a production pay12 ment for each year during the first 10 years of 

13 commercial service of the generation unit in an 

14 amount equal to the product obtained by multi15 plying— 

16 (i) the amount bid by the producer of 

17 the zero- or low-carbon generation; and 

18 (ii) the megawatt-hours estimated to 

19 be generated by the zero- or low-carbon 

20 generation unit each year. 

21 (B) HIGH-EFFICIENCY CONSUMER PROD22 UCTS.—An award for a high-efficiency con23 sumer product under this subsection shall be in 

24 the form of a lump sum payment in an amount 

25 equal to the product obtained by multiplying— 


hmoore on PRODPC68 with HMBILLS
65 

•S 1766 IS

1 (i) the amount bid by the manufac2 turer of the high-efficiency consumer prod3 uct; and 

4 (ii) the energy savings during the pro5 jected useful life of the high-efficiency con6 sumer product, not to exceed 10 years, as 

7 determined under rules issued by the Sec8 retary. 

9 (c) ADVANCED COAL AND SEQUESTRATION TECH10 NOLOGIES PROGRAM.— 

11 (1) ADVANCED COAL TECHNOLOGIES.— 

12 (A) DEFINITION OF ADVANCED COAL GEN13 ERATION TECHNOLOGY.—In this paragraph, the 

14 term ‘‘advanced coal generation technology’’ 

15 means advanced coal-fueled power plant tech16 nologies that— 

17 (i) achieve a minimum efficiency of 30 

18 percent with respect to higher heating 

19 value of the feedstock after all parasitic re20 quirements for carbon dioxide capture and 

21 compression to 2,000 psia have been sub22 tracted; and 

23 (ii) provide for capture of a significant 

24 quantity of carbon dioxide emissions, as 

25 determined by the Secretary. 


hmoore on PRODPC68 with HMBILLS
66 

•S 1766 IS

1 (B) DEMONSTRATION PROJECTS.—The 

Secretary shall use 1 2 ⁄4 of the funds provided to 

3 carry out this subsection during each year to 

4 support demonstration projects using advanced 

5 coal generation technology, including retrofit 

6 technology that could be deployed on existing 

7 coal generation facilities. 

8 (C) DEPLOYMENT INCENTIVES.— 

9 (i) IN GENERAL.—The Secretary shall 

use 1 10 ⁄4 of the funds provided to carry out 

11 this subsection during each fiscal year to 

12 provide Federal financial incentives to fa13 cilitate the deployment of not more than 

14 20 gigawatts of advanced coal generation 

15 technologies. 

16 (ii) ADMINISTRATION.—In providing 

17 incentives under this subparagraph, the 

18 Secretary shall— 

19 (I) provide appropriate incentives 

20 for regulated investor-owned utilities, 

21 municipal utilities, electric coopera22 tives, and independent power pro23 ducers, as determined by the Sec24 retary; and 


hmoore on PRODPC68 with HMBILLS
67 

•S 1766 IS

1 (II) ensure that a range of the 

2 domestic coal types is employed in the 

3 facilities that receive incentives under 

4 this subparagraph. 

5 (iii) FUNDING REQUIREMENTS.— 

6 (I) SEQUESTRATION ACTIVI7 TIES.—The Secretary shall provide in8 centives only to projects that will cap9 ture and sequester emissions of car10 bon dioxide. 

11 (II) STORAGE AGREEMENT RE12 QUIRED.—The Secretary shall require 

13 a binding storage agreement for the 

14 carbon dioxide captured in a project 

15 under this subsection, in a geologic 

16 storage project approved by the Sec17 retary. 

18 (III) PROJECTS USING CERTAIN

19 COALS.—In providing incentives under 

20 this subparagraph, the Secretary shall 

21 set aside not less than 25 percent of 

22 any funds made available to carry out 

23 this paragraph for projects using 

24 lower rank coals, such as subbitu25 minous coal and lignite. 


hmoore on PRODPC68 with HMBILLS
68 

•S 1766 IS

1 (iv) DISTRIBUTION OF FUNDS.—A 

2 project that receives an award under this 

3 subparagraph may elect 1 of the following 

4 Federal financial incentives: 

5 (I) A loan guarantee. 

6 (II) A cost-sharing grant for not 

7 more than 50 percent of the cost of 

8 the project. 

9 (III) Production payments of not 

10 more than 1.5 cents per kilowatt-hour 

11 of electric output during the first 10 

12 years of commercial service of the 

13 project. 

14 (v) LIMITATION.—A project may not 

15 receive an award under this subsection if 

16 the project receives an award under sub17 section (d). 

18 (2) SEQUESTRATION.— 

19 (A) IN GENERAL.—The Secretary shall use 

1 20 ⁄2 of the funds provided to carry out this sub21 section during each fiscal year for large-scale 

22 geologic carbon storage demonstration projects 

23 that use carbon dioxide captured from facilities 

24 for the generation of electricity using coal gas25 ification or other advanced coal combustion 


hmoore on PRODPC68 with HMBILLS
69 

•S 1766 IS

1 processes, including facilities that receive assist2 ance under paragraph (1). 

3 (B) PROJECT CAPITAL AND OPERATING

4 COSTS.—The Secretary shall provide assistance 

5 under this paragraph to reimburse the project 

6 owner for a percentage of the incremental 

7 project capital and operating costs of the 

8 project that are attributable to carbon capture 

9 and sequestration, as the Secretary determines 

10 to be appropriate. 

11 (d) FUEL FROM CELLULOSIC BIOMASS.— 

12 (1) IN GENERAL.—The Secretary shall provide 

13 deployment incentives under this subsection to en14 courage a variety of projects to produce transpor15 tation fuels from cellulosic biomass, relying on dif16 ferent feedstocks in different regions of the United 

17 States. 

18 (2) PROJECT ELIGIBILITY.—Incentives under 

19 this subsection shall be provided on a competitive 

20 basis to projects that produce fuels that— 

21 (A) meet United States fuel and emissions 

22 specifications; 

23 (B) help diversify domestic transportation 

24 energy supplies; and 


hmoore on PRODPC68 with HMBILLS
70 

•S 1766 IS

1 (C) improve or maintain air, water, soil, 

2 and habitat quality. 

3 (3) INCENTIVES.—Incentives under this sub4 section may consist of— 

5 (A) loan guarantees for the construction of 

6 production facilities and supporting infrastruc7 ture; or 

8 (B) production payments through a reverse 

9 auction in accordance with paragraph (4). 

10 (4) REVERSE AUCTION.— 

11 (A) IN GENERAL.—In providing incentives 

12 under this subsection, the Secretary shall— 

13 (i) prescribe rules under which pro14 ducers of fuel from cellulosic biomass may 

15 bid for production payments under para16 graph (3)(B); and 

17 (ii) solicit bids from producers of dif18 ferent classes of transportation fuel, as the 

19 Secretary determines to be appropriate. 

20 (B) REQUIREMENT.—The rules under sub21 paragraph (A) shall require that incentives shall 

22 be provided to the producers that submit the 

23 lowest bid (in terms of cents per gallon) for 

24 each class of transportation fuel from which the 

25 Secretary solicits a bid. 


hmoore on PRODPC68 with HMBILLS
71 

•S 1766 IS

1 (e) ADVANCED TECHNOLOGY VEHICLES MANUFAC2 TURING INCENTIVE PROGRAM.— 

3 (1) DEFINITIONS.—In this subsection: 

4 (A) ADVANCED TECHNOLOGY VEHICLE.— 

5 The term ‘‘advanced technology vehicle’’ means 

6 a light duty motor vehicle that meets— 

7 (i) the Tier II Bin 5 emission stand8 ard established in rules prescribed by the 

9 Administrator of the Environmental Pro10 tection Agency under section 202(i) of the 

11 Clean Air Act (42 U.S.C. 7521(i)), or a 

12 lower numbered Bin emission standard; 

13 (ii) any new emission standard for 

14 fine particulate matter prescribed by the 

15 Administrator under that Act; and 

16 (iii) at least 125 percent of the aver17 age base year combined fuel economy, cal18 culated on an energy-equivalent basis, for 

19 vehicles of a substantially similar footprint. 

20 (B) COMBINED FUEL ECONOMY.—The 

21 term ‘‘combined fuel economy’’ means— 

22 (i) the combined city-highway miles 

23 per gallon values, as reported in accord24 ance with section 32908 of title 49, United 

25 States Code; and 


hmoore on PRODPC68 with HMBILLS
72 

•S 1766 IS

1 (ii) in the case of an electric drive ve2 hicle with the ability to recharge from an 

3 off-board source, the reported mileage, as 

4 determined in a manner consistent with 

5 the Society of Automotive Engineers rec6 ommended practice for that configuration, 

7 or a similar practice recommended by the 

8 Secretary, using a petroleum equivalence 

9 factor for the off-board electricity (as de10 fined by the Secretary). 

11 (C) ENGINEERING INTEGRATION COSTS.— 

12 The term ‘‘engineering integration costs’’ in13 cludes the cost of engineering tasks relating 

14 to— 

15 (i) incorporating qualifying compo16 nents into the design of advanced tech17 nology vehicles; and 

18 (ii) designing new tooling and equip19 ment for production facilities that produce 

20 qualifying components or advanced tech21 nology vehicles. 

22 (D) QUALIFYING COMPONENT.—The term 

23 ‘‘qualifying component’’ means a component 

24 that the Secretary determines to be— 


hmoore on PRODPC68 with HMBILLS
73 

•S 1766 IS

1 (i) specially designed for advanced 

2 technology vehicles; and 

3 (ii) installed for the purpose of meet4 ing the performance requirements of ad5 vanced technology vehicles. 

6 (2) MANUFACTURER FACILITY CONVERSION

7 AWARDS.—The Secretary shall provide facility con8 version funding awards under this subsection to 

9 automobile manufacturers and component suppliers 

10 to pay 30 percent of the cost of— 

11 (A) re-equipping or expanding an existing 

12 manufacturing facility to produce— 

13 (i) qualifying advanced technology ve14 hicles; or 

15 (ii) qualifying components; and 

16 (B) engineering integration of qualifying 

17 vehicles and qualifying components. 

18 (3) PERIOD OF AVAILABILITY.— 

19 (A) IN GENERAL.—An award under para20 graph (2) shall apply to— 

21 (i) facilities and equipment placed in 

22 service after the date of enactment of this 

23 Act and before January 1, 2016; and 


hmoore on PRODPC68 with HMBILLS
74 

•S 1766 IS

1 (ii) engineering integration costs in2 curred after the date of enactment of this 

3 Act. 

4 (f) INTERNATIONAL TECHNOLOGY DEVELOPMENT.— 

5 (1) FUNDING.—Beginning in fiscal year 2010, 

6 the Secretary of State shall, without further appro7 priation or fiscal year limitation, use 20 percent of 

8 the funds deposited in the Energy Technology De9 ployment Fund and any funds in the International 

10 Technology Deployment Fund from the sale of inter11 national reserve allowances under section 

12 502(f)(4)(A), for purposes of carrying out an inter13 national technology development program under this 

14 subsection. 

15 (2) REPORT.— 

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

17 after the date of enactment of this Act, the 

18 President shall submit to Congress— 

19 (i) a report on a strategy for 

20 leveraging funds available under this sub21 section to encourage the deployment of en22 ergy technology with low or no greenhouse 

23 gas emissions in key developing countries; 

24 and 


hmoore on PRODPC68 with HMBILLS
75 

•S 1766 IS

1 (ii) legislative recommendations for 

2 carrying out the strategy. 

3 (B) TARGETING.— 

4 (i) IN GENERAL.—The report shall 

5 recommend targeted countries, priority 

6 technologies, and sectors. 

7 (ii) PRIORITY.—Priority shall be given 

8 to countries that the President determines 

9 are making substantial efforts to reduce 

10 the greenhouse gas emissions of the coun11 tries. 

12 (C) GOALS.—The recommendations in the 

13 report shall be based on the dual goals of ex14 port promotion and greenhouse gas reduction. 

15 (D) COMPONENTS.—Components of the 

16 strategy described in the report may include— 

17 (i) loan guarantees and other funding 

18 mechanisms; 

19 (ii) cost sharing for demonstration 

20 projects; 

21 (iii) information sharing and capacity 

22 building; 

23 (iv) cooperative benchmarking efforts; 

24 (v) joint research and development 

25 initiatives; 


hmoore on PRODPC68 with HMBILLS
76 

•S 1766 IS

1 (vi) elimination of financing and mar2 ket barriers; and 

3 (vii) pursuing carbon reduction strate4 gies that align with general development 

5 plans (such as using nuclear power, em6 ploying efficiency or fuel switching to re7 duce conventional pollution, or avoiding de8 forestation). 

9 (3) IMPLEMENTATION.—The program under 

10 this subsection, if the program is approved by Con11 gress by law, shall be administered by the Secretary 

12 of State, in consultation with— 

13 (A) the Secretary of Energy; 

14 (B) the Secretary of Commerce; 

15 (C) the Administrator of the United States 

16 Agency for International Development; 

17 (D) the United States Trade Representa18 tive; and 

19 (E) the Administrator of the Environ20 mental Protection Agency. 

21 SEC. 402. ADAPTATION PROGRAMS. 

22 (a) IN GENERAL.— 

23 (1) AUCTION PROCEEDS.—All proceeds from 

24 auctions deposited into the Climate Adaptation 

25 Fund shall be made available, without further approVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
77 

•S 1766 IS

1 priation or fiscal year limitation, for the adaptation 

2 programs under this section. 

3 (2) USES OF FUNDS.—Funds for adaptation 

4 shall be used as follows: 

5 (A) 25 percent shall be used by the Presi6 dent to address climate change impacts on 

7 coastal regions of the United States (other than 

8 regions for which funding is received under sub9 paragraph (B)). 

10 (B) 25 percent shall be to address climate 

11 change impacts on regions in the United States 

12 above 50 degrees North latitude, in accordance 

13 with a plan submitted by such a region to the 

14 President, with up to 5 percent of the funds for 

15 those regions made available for research on 

16 impacts of climate change on those regions. 

17 (C) 20 percent shall be used by the Presi18 dent to address climate change impacts on nat19 ural resources in the contiguous United States 

20 (other than in areas described in subparagraphs 

21 (A) and (B)), with a priority given to— 

22 (i) studies or research within the Cli23 mate Change Science Program, including 

24 basic data acquisition and enhanced mod25 eling systems, intended to better underVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
78 

•S 1766 IS

1 stand and predict the impacts to water 

2 supply of global climate change; 

3 (ii) research and development of new 

4 technologies to reclaim impaired and non5 traditional water supplies, including desali6 nation technologies; and 

7 (iii) providing an appropriate Federal 

8 cost-share through existing Federal pro9 grams to facilitate the planning, design, 

10 and construction of projects to conserve 

11 water or otherwise enhance water use effi12 ciency, including facilities to reclaim and 

13 reuse wastewater. 

14 (D) 30 percent shall be used for fish and 

15 wildlife conservation programs, with the total 

16 funding under this subparagraph divided as fol17 lows: 

18 (i) 18 percent shall be transferred to 

19 the subaccount of the Treasury known as 

20 the Wildlife Conservation and Restoration 

21 Account established by section 3(a)(2) of 

22 the Pittman-Robertson Wildlife Restora23 tion Act (16 U.S.C. 669b(a)(2)) in accord24 ance with subsection (b). 


hmoore on PRODPC68 with HMBILLS
79 

•S 1766 IS

1 (ii) 18 percent shall be made available 

2 to States through the Federal aid to wild3 life restoration fund established under sec4 tion 3(a)(1) of the Pittman-Robertson 

5 Wildlife Restoration Act (16 U.S.C. 

6 669b(a)(1))) and the Dingell-Johnson 

7 Sport Fish Restoration Act (commonly 

8 known as the ‘‘Wallop-Breaux Act’’) (16 

9 U.S.C. 777 et seq.) in accordance with 

10 subsection (c). 

11 (iii) 28 percent shall be available for 

12 obligation or expenditure in accordance 

13 with section 5 of the Land and Water Con14 servation Fund Act of 1965 (16 U.S.C. 

15 460l–7) in accordance with subsection (d). 

16 (iv) 36 percent shall be transferred to 

17 the Treasury subaccount described in sub18 section (e)(2) for the purposes specified in 

19 subsection (e)(3). 

20 (3) DISTRIBUTION RULES.—The President shall 

21 establish, by rule, a procedure to distribute the ad22 aptation assistance available for each calendar year 

23 under subparagraphs (A) and (C) of paragraph (2). 

24 (4) USE OF FUNDS.—Adaptation assistance 

25 available for each calendar year under subparaVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
80 

•S 1766 IS

1 graphs (A) and (B) of paragraph (2) shall be used 

2 only for— 

3 (A) coastal and estuarine land protection; 

4 (B) mitigation, restoration, protection, and 

5 relocation of threatened coastal communities; 

6 (C) coastal damage prevention and restora7 tion, including infrastructure replacement and 

8 construction; 

9 (D) research and deployment of tech10 nologies designed to address climate impacts; or 

11 (E) construction of energy or transpor12 tation infrastructure capable of reducing carbon 

13 emissions. 

14 (5) REPORT.— 

15 (A) IN GENERAL.—Not later than Sep16 tember 30, 2008, and annually thereafter, a 

17 State receiving adaptation assistance under this 

18 subsection shall submit to the appropriate con19 gressional committees, the Department of Com20 merce, Department of the Interior, Environ21 mental Protection Agency, and the Council on 

22 Environmental Quality a report that describes 

23 actions taken to carry out this subsection. 

24 (B) CONTENT.—The report shall include— 


hmoore on PRODPC68 with HMBILLS
81 

•S 1766 IS

1 (i) the amount of obligations and ex2 penditures to carry out this subsection; 

3 (ii) a list of research questions and 

4 the results of research undertaken; and 

5 (iii) a description of any project un6 dertaken with the use of funds under this 

7 subsection. 

8 (b) STATE WILDLIFE PLANS.— 

9 (1) IN GENERAL.—Funds made available under 

10 subsection (a)(2)(D)(i) shall be used by States to 

11 improve the ability of fish and wildlife to survive the 

12 effects of climate change by— 

13 (A) developing assessment information, 

14 conducting research, and undertaking moni15 toring of fish and wildlife and the habitat of 

16 fish and wildlife; 

17 (B) developing and undertaking projects to 

18 manage, conserve, and restore individual species 

19 of fish and wildlife and populations; and 

20 (C) implementing actions to manage, con21 serve, and restore fish and wildlife habitat. 

22 (2) INTEGRATING CLIMATE CHANGE CONSIDER23 ATIONS INTO STATE COMPREHENSIVE WILDLIFE

24 CONSERVATION STRATEGIES.—Effective beginning 

25 on the date of enactment of this Act, each State 


hmoore on PRODPC68 with HMBILLS
82 

•S 1766 IS

1 shall account for anticipated changes in climate and 

2 anticipated changes in the natural environment in 

3 any revisions and updates to the comprehensive wild4 life conservation strategy required by section 

5 4(d)(1)(D) of the Pittman-Robertson Wildlife Res6 toration Act (16 U.S.C. 669c(d)(1)(D)) undertaken 

7 after the date of enactment of this Act. 

8 (3) STATE MATCHING REQUIREMENT.—Not9 withstanding any other provision of law, the State 

10 matching requirement for use of funds made avail11 able under subsection (a)(2)(D)(i) shall be 10 per12 cent of the cost of the projects carried out under 

13 this subsection. 

14 (c) STATE WILDLIFE CONSERVATION PROGRAMS.— 

15 (1) IN GENERAL.—Funds made available under 

16 subsection (a)(2)(D)(ii) shall be used by States to 

17 improve the ability of game and other species of fish 

18 and wildlife to survive the effects of climate change 

19 by— 

20 (A) developing assessment information, 

21 conducting research, and undertaking moni22 toring of game and other species of fish and 

23 wildlife and the habitat of the game and other 

24 species of fish and wildlife; 


hmoore on PRODPC68 with HMBILLS
83 

•S 1766 IS

1 (B) developing and undertaking projects to 

2 manage, conserve, and restore individual game 

3 and other species of fish and wildlife and popu4 lations; and 

5 (C) implementing actions to manage, con6 serve, and restore fish and wildlife habitat. 

7 (2) COORDINATING GAME SPECIES CLIMATE

8 CHANGE CONSERVATION EFFORTS WITH STATE COM9 PREHENSIVE WILDLIFE CONSERVATION STRATE10 GIES.—A State shall coordinate, to the maximum ex11 tent practicable, the efforts of the State under this 

12 section to conserve game species in light of climate 

13 change impacts on the natural environment with 

14 work carried out under the comprehensive wildlife 

15 conservation strategy of the State required under 

16 section 4(d)(1)(D) of the Pittman-Robertson Wildlife 

17 Restoration Act (16 U.S.C. 669c(d)(1)(D)). 

18 (3) MATCHING REQUIREMENT.—Notwith19 standing any other provision of law, the State 

20 matching requirement for use of funds made avail21 able under subsection (a)(2)(D)(ii) shall be 10 per22 cent of the cost of the projects carried out under 

23 this subsection. 

24 (4) SAVINGS CLAUSE.—Nothing in this Act di25 minishes or affects the authorization by Congress to 


hmoore on PRODPC68 with HMBILLS
84 

•S 1766 IS

1 appropriate funds to carry out the purposes of the 

2 Pittman-Robertson Wildlife Restoration Act (16 

3 U.S.C. 669 et seq.) and the Dingell-Johnson Sport 

4 Fish Restoration Act (commonly known as the 

5 ‘‘Wallop-Breaux Act’’) (16 U.S.C. 777 et seq.). 

6 (d) LAND AND WATER CONSERVATION FUND.— 

7 (1) IN GENERAL.—Funds made available under 

8 subsection (a)(2)(D)(iii) shall— 

9 (A) be available without further appropria10 tion; 

11 (B) remain available until expended; and 

12 (C) be in addition to any other funds made 

13 available from the land and water conservation 

14 fund established under section 2 of the Land 

15 and Water Conservation Fund Act of 1965 (16 

16 U.S.C. 460l–5). 

17 (2) ALLOCATION OF FUNDS.—Of funds made 

18 available under subsection (a)(2)(D)(iii)— 

19 (A) 50 percent shall be used for Federal 

20 land acquisition purposes as provided in section 

21 7 of the Land and Water Conservation Fund 

22 Act of 1965 (16 U.S.C. 460l–9); and 

23 (B) 50 percent shall be used for financial 

24 assistance to States as provided in section 6 of 


hmoore on PRODPC68 with HMBILLS
85 

•S 1766 IS

1 the Land and Water Conservation Fund Act of 

2 1965 (16 U.S.C. 460l–8). 

3 (3) FEDERAL LAND ACQUISITION PROJECTS.— 

4 (A) PRIORITY LIST.—The President shall 

5 transmit, as part of the annual budget pro6 posal, a priority list for Federal land acquisition 

7 projects to be funded under this section. 

8 (B) AVAILABILITY.—Funds for Federal 

9 land acquisition provided under paragraph (2) 

10 shall be made available, without further appro11 priation, 15 days after the date Congress ad12 journs sine die for each year, for the projects 

13 identified on the priority list of the President, 

14 unless prior to that date, legislation is enacted 

15 establishing a different priority list. 

16 (C) SITES UNDER JURISDICTION OF SEC17 RETARY OF THE INTERIOR AND SECRETARY OF

18 AGRICULTURE.— 

19 (i) IN GENERAL.—In developing the 

20 annual land acquisition priority list, the 

21 President shall require the Secretary of the 

22 Interior and the Secretary of Agriculture 

23 to develop the priority list for the sites 

24 under the jurisdiction of each Secretary. 


hmoore on PRODPC68 with HMBILLS
86 

•S 1766 IS

1 (ii) CONSULTATION.—The Secretaries 

2 shall prepare the lists in consultation with 

3 the head of each affected bureau or agen4 cy, taking into account the best profes5 sional judgment regarding the land acqui6 sition priorities and policies of each bureau 

7 or agency. 

8 (D) AREAS.—Acquisition of land or inter9 ests in land under this section shall be limited 

10 to acquisitions within the external boundaries 

11 of— 

12 (i) a unit of the National Park Sys13 tem; 

14 (ii) a unit of the National Wildlife 

15 Refuge System; 

16 (iii) a federally administered compo17 nent of the National Wild and Scenic Riv18 ers System; 

19 (iv) a component of the National 

20 Trails System; 

21 (v) a component of the National Wil22 derness Preservation System; 

23 (vi) a National Monument; 

24 (vii) any part of the National Land25 scape Conservation System established by 


hmoore on PRODPC68 with HMBILLS
87 

•S 1766 IS

1 Congress or if the boundary has been ap2 proved by Congress; 

3 (viii) a National Conservation Area; or 

4 (ix) a National Recreation Area ad5 ministered by the Secretary of Agriculture. 

6 (e) NATIONAL CLIMATE CHANGE CONSERVATION

7 WILDLIFE STRATEGY.— 

8 (1) DEVELOPMENT OF STRATEGY.— 

9 (A) IN GENERAL.—Not later than 2 years 

10 of the date of enactment of this Act, the Sec11 retary of the Interior, in consultation and co12 ordination with the Secretaries of Agriculture 

13 and Commerce, the National Research Council 

14 Science Advisory Board, State fish and wildlife 

15 agencies, Indian tribes, conservation organiza16 tions, and the public, shall develop a National 

17 Climate Change Conservation Wildlife Strategy. 

18 (B) CONTENTS.—The strategy shall— 

19 (i) be updated at least once every 5 

20 years; 

21 (ii) be based on the best available 

22 science, as identified by the Science Advi23 sory Board of the National Research 

24 Council; 


hmoore on PRODPC68 with HMBILLS
88 

•S 1766 IS

1 (iii) identify roles and actions for each 

2 participating Federal agency and how that 

3 strategy will work to complement State ef4 forts, including coordination with State 

5 Comprehensive Wildlife Conservation 

6 Strategies and other wildlife conservation 

7 plans; 

8 (iv) identify and provide for moni9 toring of all fish and wildlife populations 

10 affected by climate change, including game 

11 and nongame species, habitat at risk, and 

12 wildlife mitigation strategies; 

13 (v) establish priorities for the con14 servation of game and nongame fish and 

15 wildlife, based on which actions will have 

16 the greatest long-term benefit to the spe17 cies and the ecosystem, considering the 

18 likely effects of climate change, including 

19 sea level rise and coastal inundation, and 

20 shifts in local and regional climate regimes; 

21 (vi) provide for the national climate 

22 change and wildlife science centers of the 

23 United States Geological Survey to re24 search impacts on wildlife and mechanisms 


hmoore on PRODPC68 with HMBILLS
89 

•S 1766 IS

1 for adaptation, and to support Federal 

2 land management agencies; 

3 (vii) be implemented on Federal land 

4 and on private land through Department 

5 of Agriculture land conservation programs; 

6 and 

7 (viii) be implemented through existing 

8 Federal wildlife programs. 

9 (2) WILDLIFE CONSERVATION TREASURY SUB10 ACCOUNT.— 

11 (A) ESTABLISHMENT.—There is estab12 lished a Climate Change Wildlife Conservation 

13 subaccount in the Treasury to receive transfers 

14 of adaptation funds under subsection 

15 (a)(2)(D)(iv). 

16 (B) USE.—The Secretary of the Interior 

17 shall have exclusive use of the funds in the 

18 Wildlife Conservation subaccount for the pur19 poses specified in paragraph (3). 

20 (3) IMPLEMENTATION OF THE CLIMATE

21 CHANGE WILDLIFE CONSERVATION STRATEGY.—The 

22 Secretary of the Interior shall use funds in the Cli23 mate Change Wildlife Conservation subaccount as 

24 follows: 


hmoore on PRODPC68 with HMBILLS
90 

•S 1766 IS

1 (A) 4 percent for development of the Na2 tional Climate Change Conservation Wildlife 

3 Strategy, except that if the Secretary of the In4 terior needs less than 2 percent for that pur5 pose, the Secretary may reallocate unneeded 

6 funds to implement the Strategy. 

7 (B) 8 percent for monitoring under the 

8 National Climate Change Conservation Wildlife 

9 Strategy, except that if the Secretary of the In10 terior needs less than 4 percent for that pur11 pose, the Secretary may reallocate unneeded 

12 funds to implement the Strategy. 

13 (C) 88 percent for implementation of the 

14 National Climate Change Conservation Wildlife 

15 Strategy through existing Federal programs, in16 cluding not less than— 

17 (i) 16 percent to the Secretary of the 

18 Interior for— 

19 (I) implementation of the North 

20 American Wetlands Conservation Act 

21 (16 U.S.C. 4401 et seq.); 

22 (II) acquisition of easements by 

23 the Fish and Wildlife Service; and 


hmoore on PRODPC68 with HMBILLS
91 

•S 1766 IS

1 (III) implementation of a migra2 tory bird climate change-related strat3 egy; 

4 (ii) 26 percent to the Secretary of Ag5 riculture— 

6 (I) for implementation of the cli7 mate change mitigation strategy of 

8 the Secretary on National Forest 

9 land; and 

10 (II) to supplement funding for 

11 private land conservation programs; 

12 (iii) 26 percent to the Secretary of the 

13 Interior for implementation of the climate 

14 mitigation strategy of the Secretary— 

15 (I) on Bureau of Land Manage16 ment land; 

17 (II) in units of the National 

18 Wildlife Refuge System; 

19 (III) in units of the National 

20 Park System; and 

21 (IV) in areas to improve fish pas22 sage and dam removal. 

23 (iv) 10 percent to the Secretary of the 

24 Interior for— 


hmoore on PRODPC68 with HMBILLS
92 

•S 1766 IS

1 (I) the National Fish Habitat 

2 Plan; 

3 (II) endangered species program 

4 of the Fish and Wildlife Services; and 

5 (III) multinational species con6 servation funds. 

7 (v) 10 percent to the Secretary of 

8 Commerce for conservation programs of 

9 the National Marine Fisheries Service for 

10 programs to— 

11 (I) sustain fisheries; 

12 (II) protect marine species; and 

13 (III) conserve marine habitat. 

14 SEC. 403. ASSISTANCE PROGRAMS. 

15 (a) AUCTION PROCEEDS.—In addition to any other 

16 amounts that are made available for the programs, all pro17 ceeds from auctions deposited into the Energy Assistance 

18 Fund shall be made available, without further appropria19 tion or fiscal year limitation, to the following programs 

20 in the following ratios: 

(1) 1 21 ⁄2 of the funds to the low-income home en22 ergy assistance program established under the Low23 Income Home Energy Assistance Act of 1981 (42 

24 U.S.C. 8621 et seq.); 


hmoore on PRODPC68 with HMBILLS
93 

•S 1766 IS

(2) 1 1 ⁄4 of the funds to the Weatherization As2 sistance Program for Low-Income Persons estab3 lished under part A of title IV of the Energy Con4 servation and Production Act (42 U.S.C. 6861 et 

5 seq.); and 

(3) 1 6 ⁄4 of the funds to the rural energy assist7 ance program established under subsection (b). 

8 (b) RURAL ENERGY ASSISTANCE PROGRAM.—The 

9 Secretary shall use funds made available under subsection 

10 (a)(3) to provide financial assistance to promote the avail11 ability of reasonably priced electricity in off-grid rural re12 gions in which electricity prices exceed 150 percent of the 

13 national average. 

14 TITLE V—PERIODIC REVIEW 

15 AND INTERNATIONAL LEAD16 ERSHIP 

17 SEC. 501. EXECUTIVE BRANCH AND CONGRESSIONAL RE18 VIEW OF PROGRAM. 

19 (a) INTERAGENCY REVIEW.— 

20 (1) IN GENERAL.—Not later than January 1, 

21 2013, the President shall establish an interagency 

22 group— 

23 (A) to conduct the annual review described 

24 in section 502(d) regarding comparable action 

25 by foreign countries; 


hmoore on PRODPC68 with HMBILLS
94 

•S 1766 IS

1 (B) not later than January 1, 2014, to 

2 make any recommendations with respect to for3 eign credits and international offset projects 

4 under subsections (d) and (e); and 

5 (C) to conduct 5-year reviews under para6 graph (2). 

7 (2) 5-YEAR REVIEW.— 

8 (A) IN GENERAL.—Not later than January 

9 1, 2016, and every 5 years thereafter, the inter10 agency group shall submit to the President the 

11 results of the applicable review conducted under 

12 paragraph (1)(C). 

13 (B) REQUIRED CONTENTS.—Each 5-year 

14 review shall include— 

15 (i) an analysis of whether each of the 

16 5 largest trading partners of the United 

17 States, as of the date on which the review 

18 is conducted, has taken comparable action 

19 (as defined in section 502(a)); 

20 (ii) an analysis of whether the pro21 grams established under this Act have con22 tributed to an increase in electricity im23 ports from Canada or Mexico; 

24 (iii) an analysis of the status of the 

25 best available science and the status of 


hmoore on PRODPC68 with HMBILLS
95 

•S 1766 IS

1 technologies to reduce, sequester, or avoid 

2 greenhouse gas emissions based on reports 

3 provided by the National Academy of 

4 Sciences under paragraph (3); and 

5 (iv) an analysis of the energy security 

6 implications of this Act, including the im7 pact on fuel diversity, energy infrastruc8 ture, and other relevant factors. 

9 (C) PERMITTED CONTENTS.—Each 5-year 

10 review may include an analysis of— 

11 (i) the feasibility of regulating owners 

12 or operators of entities that— 

13 (I) emit nonfuel-related green14 house gases; and 

15 (II) that are not subject to this 

16 Act; 

17 (ii) whether the percentage of allow18 ances for any calendar year that are auc19 tioned, allocated, or devoted to other pur20 poses under title II should be modified; 

21 (iii) whether regulated entities should 

22 be allowed to submit credits issued under 

23 foreign greenhouse gas regulatory pro24 grams in lieu of allowances under section 

25 102; 


hmoore on PRODPC68 with HMBILLS
96 

•S 1766 IS

1 (iv) whether the President should dis2 tribute credits for offset projects carried 

3 out outside the United States that do not 

4 receive credit under a foreign greenhouse 

5 gas program; 

6 (v) whether and how the value of al7 lowances or credits banked for use during 

8 a future calendar year should be dis9 counted if the TAP price increases or the 

10 elimination of the TAP provision are rec11 ommended under subsection (b)(2)(C)(ii); 

12 and 

13 (vi) such other issues as the President 

14 may direct. 

15 (3) NATIONAL ACADEMY OF SCIENCES RE16 PORTS.—As soon as practicable after the date of en17 actment of this Act, the President shall offer to 

18 enter into an agreement with the National Academy 

19 of Sciences to develop periodic and timely reports on 

20 the status of the best available science and the sta21 tus of technologies to reduce, sequester, or avoid 

22 greenhouse gas emissions. 

23 (4) STUDY OF ENERGY SECURITY IMPLICATIONS

24 OF GREENHOUSE GAS PROGRAM.—Before making 


hmoore on PRODPC68 with HMBILLS
97 

•S 1766 IS

1 any recommendations under subsection (b), the 

2 President shall— 

3 (A) conduct a comprehensive study of the 

4 energy security implications of the greenhouse 

5 gas program established under this Act, includ6 ing a study of the impact of the program on 

7 fuel diversity, energy infrastructure, and other 

8 relevant factors; and 

9 (B) submit to Congress a report on the re10 sults of the study. 

11 (b) PRESIDENTIAL RECOMMENDATIONS TO CON12 GRESS.— 

13 (1) RECOMMENDATIONS TO ACHIEVE LONG14 TERM EMISSION REDUCTIONS.—If the President de15 termines (based on the interagency review conducted 

16 under subsection (a)(1)(C)) that the 5 largest trad17 ing partners of the United States are taking com18 parable actions (as defined in section 502(a)) with 

19 respect to greenhouse gas emissions, based on con20 sideration of the best available science and tech21 nology information provided under subsection (a)(3), 

22 the President shall submit to Congress (in accord23 ance with paragraph (2)) a report that recommends 

24 such changes to the quantity of greenhouse gas alVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
98 

•S 1766 IS

1 lowances to be issued in future allocation periods as 

2 the President determines are necessary— 

3 (A) to ensure that the United States is un4 dertaking an equitable share of the responsi5 bility for reducing atmospheric greenhouse gas 

6 concentrations; and 

7 (B) to reasonably lead the United States to 

8 reduce the annual emissions of the United 

9 States to levels that are at least 60 percent 

10 below 2006 levels by 2050 or to levels con11 sistent with the most recent assessments of the 

12 National Academy of Sciences. 

13 (2) REPORTS TO CONGRESS.— 

14 (A) 5-YEAR REVIEW REPORT.— 

15 (i) IN GENERAL.—During the period 

16 beginning April 15, 2017, and ending May 

17 31, 2017, and every 5 years thereafter, the 

18 President shall submit to Congress a re19 port describing any recommendation of the 

20 President with respect to amendments to 

21 this Act. 

22 (ii) RECOMMENDATIONS.—The rec23 ommendations of each report shall take 

24 into account— 


hmoore on PRODPC68 with HMBILLS
99 

•S 1766 IS

1 (I) the results of the review con2 ducted under subsection (a)(1)(C); 

3 and 

4 (II) any determinations made 

5 under paragraph (1). 

6 (B) OTHER REPORTS.—During the period 

7 beginning on April 15 and ending on May 31 

8 of any calendar year, the President may submit 

9 to Congress a report describing any rec10 ommendation of the President with respect to 

11 amendments to this Act. 

12 (C) AREAS.—In any report submitted 

13 under subparagraph (A) or (B), the President 

14 shall make recommendations with respect to 

15 whether, and the extent to which— 

16 (i) the quantity of greenhouse gas al17 lowances issued for future allocation peri18 ods under section 101 should be reduced; 

19 and 

20 (ii) the TAP prices under section 

21 102(d) for future calendar years should be 

22 increased or the TAP mechanism should be 

23 eliminated. 

24 (3) REPORT TO CONGRESS ON ADDITIONAL

25 MEASURES.—If, in any calendar year, TAPs made in 


hmoore on PRODPC68 with HMBILLS
100 

•S 1766 IS

1 lieu of allowance submissions under section 102 are 

2 substantial, not later than April 30 of the following 

3 calendar year, the President shall submit to Con4 gress a report describing the additional actions the 

5 President is taking, and the recommendations the 

6 President has for additional congressional action, to 

7 ensure that TAPs in future years will not interfere 

8 with achieving the principal purposes of this Act 

9 over the long term. 

10 (c) EXPEDITED CONGRESSIONAL ACTION ON CER11 TAIN PRESIDENTIAL RECOMMENDATIONS.— 

12 (1) CONSIDERATION.—Not later than Sep13 tember 30 of any calendar year during which a re14 port is submitted under subsection (b)(2), the Sen15 ate and the House of Representatives may consider 

16 a joint resolution, in accordance with paragraph (2), 

17 that— 

18 (A) amends section 101 to decrease the 

19 number of allowances to be issued, if and to the 

20 extent specifically recommended by the Presi21 dent pursuant to subsection (b)(2); or 

22 (B) amends section 102(d) to increase the 

23 TAP price, or to eliminate the TAP mechanism, 

24 if and to the extent specifically recommended by 

25 the President pursuant to subsection (b)(2). 


hmoore on PRODPC68 with HMBILLS
101 

•S 1766 IS

1 (2) REQUIREMENTS.—A joint resolution consid2 ered under paragraph (1) shall— 

3 (A) be introduced during the 45-day period 

4 beginning on the date on which a report is sub5 mitted under subsection (b); and 

6 (B) after the resolving clause and ‘‘That’’, 

7 contain only 1 or more of the following: 

8 ‘‘(i) Effective beginning 

9 llllllll, the table in section 

10 101 of the Low Carbon Economy Act of 

11 2007 is amended lllll.’’; 

12 ‘‘(ii) Effective beginning 

13 llllllll, section 102(d) of the 

14 Low Carbon Economy Act of 2007 is 

15 amended lllll.’’; or 

16 ‘‘(iii) Effective beginning 

17 llllllll, no TAP may be ac18 cepted by the President in lieu of an allow19 ance under section 102 of the Low Carbon 

20 Economy Act of 2007.’’; 

21 the blanks being filled in with the effective 

22 dates, reductions in the quantity of greenhouse 

23 gas allowances to be issued, or increases in the 

24 TAP price that were specifically recommended 

25 by the President under subsection (b)(2). 


hmoore on PRODPC68 with HMBILLS
102 

•S 1766 IS

1 (3) APPLICABLE LAW.—Subsections (b) 

2 through (g) of section 802 of title 5, United States 

3 Code, shall apply to any joint resolution under this 

4 subsection. 

5 (d) FOREIGN CREDITS.— 

6 (1) RULES.—After taking into consideration 

7 the initial interagency review under subsection 

8 (a)(1)(B), the President may promulgate rules that 

9 authorize regulated entities to submit credits issued 

10 under foreign greenhouse gas regulatory programs 

11 in lieu of allowances under section 102. 

12 (2) COMPARABLE PROGRAMS.—Rules promul13 gated by the President under paragraph (1) shall 

14 ensure that foreign credits submitted in lieu of al15 lowances are from foreign greenhouse gas regulatory 

16 programs that the President determines to have a 

17 level of environmental integrity that is not less than 

18 the level of environmental integrity of the programs 

19 under this Act. 

20 (e) INTERNATIONAL OFFSET PROJECT CREDITS.— 

21 (1) ACTION BY THE PRESIDENT.—After taking 

22 into consideration the results of the interagency re23 view under subsection (a)(1)(B), the President may 

24 promulgate rules establishing a program under 

25 which the President distributes credits for the greenVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
103 

•S 1766 IS

1 house gas mitigation benefits of offset projects out2 side the United States that— 

3 (A) meet the requirements of section 

4 601(c); and 

5 (B) maintain the environment integrity of 

6 the program under this Act. 

7 (2) STREAMLINED PROCEDURES.—Rules pro8 mulgated by the President under paragraph (1) shall 

9 have streamlined procedures for distributing credits 

10 for the greenhouse gas emission mitigation benefits 

11 of projects for which the President determines there 

12 are broadly accepted standards or methodologies for 

13 quantifying and verifying those benefits. 

14 (f) LIMIT ON INTERNATIONAL CREDITS.—Rules pro15 mulgated by the President under subsection (d) or (e) 

16 shall ensure that— 

17 (1) foreign credits or greenhouse gas mitigation 

18 benefits of international offset projects have not 

19 been and cannot be used in the future for compli20 ance purposes under any foreign greenhouse gas reg21 ulatory program; and 

22 (2) a regulated entity does not use international 

23 offset project credits to meet more than 10 percent 

24 of the compliance obligations of the regulated entity 

25 under this Act. 


hmoore on PRODPC68 with HMBILLS
104 

•S 1766 IS

1 SEC. 502. INTERNATIONAL RESERVE ALLOWANCE RE2 QUIREMENT. 

3 (a) DEFINITIONS.—In this section: 

4 (1) BASELINE EMISSIONS LEVELS.—The term 

5 ‘‘baseline emissions levels’’ means the historic green6 house gas emissions attributed to a category of cov7 ered goods of a specific covered foreign country, as 

8 determined under subsection (e)(2). 

9 (2) COMPARABLE ACTION.—The term ‘‘com10 parable action’’ means greenhouse gas regulatory 

11 programs, requirements, and other measures adopt12 ed by a foreign country that are determined by the 

13 President to be, in combination, comparable in effect 

14 to the action taken by the United States to limit 

15 greenhouse gas emissions pursuant to this Act, after 

16 taking into account the level of economic develop17 ment of the foreign country. 

18 (3) COMPLIANCE YEAR.—The term ‘‘compliance 

19 year’’ means each calendar year for which the inter20 national reserve allowance requirements of sub21 section (f) apply to a category of covered goods of 

22 a covered foreign country that is imported into the 

23 United States. 

24 (4) COVERED FOREIGN COUNTRY.—The term 

25 ‘‘covered foreign country’’ means a foreign country 


hmoore on PRODPC68 with HMBILLS
105 

•S 1766 IS

1 that is included on the covered list prepared under 

2 subsection (f)(3)(B)(ii). 

3 (5) COVERED GOOD.—The term ‘‘covered good’’ 

4 means each good that the President identifies, by 

5 rule, as a greenhouse gas intensive good that is 

6 closely related to goods, the cost of production of 

7 which in the United States is affected by this Act. 

8 (6) FOREIGN COUNTRY.—The term ‘‘foreign 

9 country’’ means a Member of, or observer govern10 ment to, the World Trade Organization, other than 

11 the United States. 

12 (7) GOOD OF A COVERED FOREIGN COUNTRY.— 

13 The term ‘‘good of a covered foreign country’’ means 

14 a good originating in a specific covered foreign coun15 try, as determined in accordance with rules of origin 

16 generally used by the United States. 

17 (8) GREENHOUSE GAS INTENSIVE GOOD.—The 

18 term ‘‘greenhouse gas intensive good’’ means a good 

19 that— 

20 (A) is a primary product; and 

21 (B) generates, in the course of the manu22 facture of the good, a substantial quantity of 

23 direct and indirect greenhouse gas emissions. 

24 (9) INDIRECT GREENHOUSE GAS EMISSIONS.— 

25 The term ‘‘indirect greenhouse gas emissions’’ 


hmoore on PRODPC68 with HMBILLS
106 

•S 1766 IS

1 means greenhouse gases emitted from the generation 

2 of electricity that is consumed during the manufac3 ture of a good. 

4 (10) INTERNATIONAL AGREEMENT.—The term 

5 ‘‘international agreement’’ means any international 

6 agreement to which the United States is a party, in7 cluding the Marrakesh agreement establishing the 

8 World Trade Organization (WTO), done at Marra9 kesh on April 15, 1994. 

10 (11) INTERNATIONAL RESERVE ALLOWANCE.— 

11 The term ‘‘international reserve allowance’’ means 

12 an allowance (denominated in units of metric tons of 

13 carbon dioxide equivalent) that is— 

14 (A) purchased from a special reserve of al15 lowances pursuant to subsection (f)(4)(A); and 

16 (B) used for purposes of meeting the im17 port allowance requirements of subsection (f). 

18 (12) PRIMARY PRODUCT.—The term ‘‘primary 

19 product’’ means— 

20 (A) iron, steel, aluminum, cement, bulk 

21 glass, or paper; or 

22 (B) any other manufactured product 

23 that— 

24 (i) is sold in bulk for purposes of fur25 ther manufacture; and 


hmoore on PRODPC68 with HMBILLS
107 

•S 1766 IS

1 (ii) generates, in the course of the 

2 manufacture of the product, direct and in3 direct greenhouse gas emissions that are 

4 comparable (on an emissions per dollar 

5 basis) to emissions generated in the manu6 facture of products described in subpara7 graph (A). 

8 (b) PURPOSES.—The purposes of this section are— 

9 (1) to ensure that greenhouse gas emissions oc10 curring outside the United States do not undermine 

11 the objectives of the United States to address global 

12 climate change (as described in section 2(1)); and 

13 (2) to encourage effective international action 

14 to achieve those objectives through— 

15 (A) procedures negotiated between the 

16 United States and other countries; or 

17 (B) measures taken by the United States 

18 that comply with applicable international agree19 ments. 

20 (c) INTERNATIONAL NEGOTIATIONS.— 

21 (1) FINDING.—Congress finds that the pur22 poses described in subsection (b) can be most effec23 tively addressed and achieved through procedures 

24 negotiated between the United States and other 

25 countries. 


hmoore on PRODPC68 with HMBILLS
108 

•S 1766 IS

1 (2) NEGOTIATING OBJECTIVE.—To the extent 

2 that the procedures described in paragraph (1) in3 volve measures affecting international trade in goods 

4 or services, the climate change negotiating objective 

5 of the United States shall be to conclude multilateral 

6 or bilateral agreements on the reduction of green7 house gas emissions that will help to achieve the 

8 purposes described in subsection (b). 

9 (d) INTERAGENCY REVIEW.— 

10 (1) IN GENERAL.—The interagency group es11 tablished under section 501(a)(1) shall determine 

12 whether, and the extent to which, each foreign coun13 try has taken comparable action to limit the green14 house gas emissions of the foreign country. 

15 (2) REPORT TO THE PRESIDENT.—Not later 

16 than January 1, 2018, and every year thereafter, 

17 the interagency group shall report the findings of 

18 the group to the President relating to the review 

19 under paragraph (1). 

20 (3) EXCLUSION OF CERTAIN COUNTRIES.—The 

21 interagency group may exclude from review and re22 port to the President those foreign countries that 

23 are identified in clauses (ii) and (iii) of subsection 

24 (f)(3)(A). 

25 (e) PRESIDENTIAL DETERMINATIONS.— 


hmoore on PRODPC68 with HMBILLS
109 

•S 1766 IS

1 (1) COMPARABLE ACTION.— 

2 (A) IN GENERAL.—Not later than January 

3 1, 2019, and every year thereafter, the Presi4 dent shall determine whether or not each for5 eign country that is subject to the interagency 

6 review under subsection (d) has taken com7 parable action to limit the greenhouse gas emis8 sions of the foreign country. 

9 (B) PUBLICATION.—The President shall— 

10 (i) report to Congress the determina11 tions of the President under subparagraph 

12 (A); and 

13 (ii) publish the determinations in the 

14 Federal Register. 

15 (2) BASELINE EMISSION LEVELS.— 

16 (A) IN GENERAL.—The President shall de17 termine baseline emissions levels under this sec18 tion by determining the total annual average 

19 greenhouse gas emissions attributed to each 

20 category of covered goods of a covered foreign 

21 country during the 3-year period consisting of 

22 calendar years 2012 through 2014, based on 

23 the emissions, production, and other relevant 

24 data that are available for that 3-year period. 


hmoore on PRODPC68 with HMBILLS
110 

•S 1766 IS

1 (B) OTHER FACTORS.—To the extent nec2 essary, the President may also use economic 

3 and engineering models and the best available 

4 information on technology performance levels 

5 for the manufacture of specific categories of 

6 covered goods in order to establish representa7 tive baseline emissions levels for a specific cat8 egory of covered goods of a covered foreign 

9 country. 

10 (f) INTERNATIONAL RESERVE ALLOWANCE RE11 QUIREMENTS.— 

12 (1) IN GENERAL.— 

13 (A) REQUIREMENT FOR DECLARATION.— 

14 Effective beginning January 1, 2020, a United 

15 States importer of covered goods shall be re16 quired, as a condition of importation or with17 drawal for consumption from a warehouse, to 

18 make a written declaration with respect to each 

19 entry of imported covered goods. 

20 (B) CONTENTS.—The declaration shall 

21 provide that— 

22 (i) the goods subject to the entry are 

23 accompanied by a sufficient number of 

24 international reserve allowances, as deter25 mined under paragraph (6); or 


hmoore on PRODPC68 with HMBILLS
111 

•S 1766 IS

1 (ii) the goods are not subject to the 

2 requirement to submit international re3 serve allowances pursuant to the exclusion 

4 that is provided under paragraph (3). 

5 (2) CONSEQUENCES OF FAILURE TO MAKE DEC6 LARATION.—An imported covered good that is not 

7 accompanied by a written declaration pursuant to 

8 paragraph (1) shall not be permitted to enter the 

9 customs territory of the United States. 

10 (3) EXCLUSION FOR CERTAIN IMPORTS.— 

11 (A) DETERMINATION.—The requirement 

12 set forth in paragraph (1)(B)(i) shall not apply 

13 to the covered goods of any foreign country if 

14 the President determines that— 

15 (i) the foreign country has taken com16 parable action to limit the greenhouse gas 

17 emissions of the foreign country, as pro18 vided under subsection (e)(1); 

19 (ii) the United Nations has identified 

20 the foreign country as among the least-de21 veloped developing countries; or 

22 (iii) the share of the foreign country 

23 of total global greenhouse gas emissions is 

24 below a de minimis percentage described in 

25 subparagraph (C). 


hmoore on PRODPC68 with HMBILLS
112 

•S 1766 IS

1 (B) COUNTRY LISTS.—Not later than Jan2 uary 1, 2020, and every year thereafter, the 

3 President shall develop and publish in the Fed4 eral Register the following 2 lists of foreign 

5 countries: 

6 (i) EXCLUDED LIST.—In the excluded 

7 list, the President shall identify those for8 eign countries the covered goods of which 

9 the President has determined under sub10 paragraph (A) are not subject to the inter11 national reserve allowance requirements of 

12 this subsection. 

13 (ii) COVERED LIST.— 

14 (I) IN GENERAL.—In the covered 

15 list, the President shall identify those 

16 foreign countries the covered goods of 

17 which are subject to the international 

18 reserve allowance requirements of this 

19 subsection. 

20 (II) CONTENT.—The list shall 

21 consist of the names of those foreign 

22 countries that are not included on the 

23 excluded list prepared under clause 

24 (i). 

25 (C) DE MINIMIS THRESHOLD.— 


hmoore on PRODPC68 with HMBILLS
113 

•S 1766 IS

1 (i) IN GENERAL.—For purposes of 

2 this paragraph, a de minimis percentage 

3 shall not be greater than 0.5 percent of 

4 total global greenhouse gas emissions, as 

5 determined by the President, for the most 

6 recent calendar year for which emissions 

7 and other relevant data is available. 

8 (ii) DEFORESTATION RATE.—To the 

9 extent that the President determines to be 

10 necessary to achieve the purposes of this 

11 section, the President may consider the an12 nual average deforestation rate of a devel13 oping country during a representative pe14 riod in determining that the share of the 

15 country of total global greenhouse gas 

16 emissions. 

17 (4) SOURCE OF ALLOWANCES.— 

18 (A) INTERNATIONAL RESERVE ALLOW19 ANCES.— 

20 (i) IN GENERAL.—A United States 

21 importer may meet the obligations of the 

22 importer under this subsection by submit23 ting international reserve allowances that 

24 are issued in accordance with this subpara25 graph. 


hmoore on PRODPC68 with HMBILLS
114 

•S 1766 IS

1 (ii) OFFER FOR SALE.— 

2 (I) IN GENERAL.—During the 1- 

3 year period ending on January 1 of 

4 the first calendar year for which com5 pliance with this Act is required, the 

6 President shall offer for sale inter7 national reserve allowances. 

8 (II) SOURCE.—The international 

9 reserve allowances shall be issued 

10 from a special reserve of allowances 

11 that are separate from, and in addi12 tion to, the allowances issued under 

13 section 201(b). 

14 (iii) PRICE.— 

15 (I) IN GENERAL.—Subject to 

16 subclause (II), the President shall de17 termine, by rule, the methodology for 

18 setting the price of international re19 serve allowances for each compliance 

20 year at a level that does not exceed 

21 the market price of allowances issued 

22 under section 201(b) for the same 

23 year. 


hmoore on PRODPC68 with HMBILLS
115 

•S 1766 IS

1 (II) MAXIMUM PRICE.—The price 

2 for international reserve allowances 

3 shall not exceed— 

4 (aa) the TAP price (as de5 termined under section 102(d)); 

6 or 

7 (bb) the clearing price for 

8 current year allowances estab9 lished in the most recent auction 

10 of allowances by the President 

11 under section 208. 

12 (iv) SERIAL NUMBER.—The President 

13 shall assign a unique serial number to each 

14 international reserve allowance issued 

15 under this subparagraph. 

16 (v) TRADING SYSTEM.—The President 

17 may establish, by rule, a trading system 

18 for the sale, exchange, purchase, transfer, 

19 and banking of international reserve allow20 ances. 

21 (vi) REGULATED ENTITIES.—Inter22 national reserve allowances may not be 

23 submitted by regulated entities to comply 

24 with the allowance submission require25 ments of section 102. 


hmoore on PRODPC68 with HMBILLS
116 

•S 1766 IS

1 (vii) PROCEEDS.—All proceeds from 

2 the sale of international reserve allowances 

3 under this subparagraph shall be— 

4 (I) deposited into a special fund 

5 in the Treasury known as the ‘‘Inter6 national Energy Technology Deploy7 ment Fund’’; and 

8 (II) available for expenditure only 

9 for international technology develop10 ment under section 401(f). 

11 (B) FOREIGN ALLOWANCES.— 

12 (i) IN GENERAL.—A United States 

13 importer may submit, in lieu of inter14 national reserve allowances issued under 

15 this subsection, foreign allowances or simi16 lar compliance instruments that a foreign 

17 country has distributed under a com18 parable cap and trade program. 

19 (ii) COMPARABLE CAP AND TRADE

20 PROGRAM.—For purposes of clause (i), a 

21 comparable cap and trade program shall 

22 include any greenhouse gas regulatory pro23 gram that a foreign country has adopted to 

24 limit the greenhouse gas emissions of the 


hmoore on PRODPC68 with HMBILLS
117 

•S 1766 IS

1 foreign country, if the President certifies 

2 that the program— 

3 (I) places a quantitative limita4 tion on the total quantity of green5 house gas emissions of the foreign 

6 country (expressed in terms of tons 

7 per year) and achieves that limitation 

8 through an allowance trading system; 

9 (II) satisfies criteria that the 

10 President shall establish for key re11 quirements related to the enforce12 ability of the cap and trade program, 

13 including requirements for moni14 toring, reporting, verification proce15 dures, and allowance tracking; and 

16 (III) is a comparable action. 

17 (C) FOREIGN CREDITS.— 

18 (i) IN GENERAL.—A United States 

19 importer may submit, in lieu of inter20 national reserve allowances issued under 

21 this subsection, foreign credits and credits 

22 for international offset projects that the 

23 President has authorized for use under 

24 subsections (d) and (e) of section 501. 


hmoore on PRODPC68 with HMBILLS
118 

•S 1766 IS

1 (ii) APPLICATION.—The quantitative 

2 limit placed on the use of the allowances 

3 by a regulated entity under subsection 

4 501(f)(2) shall not apply to a United 

5 States importer under this section. 

6 (5) WRITTEN DECLARATION OF IMPORTER.— 

7 (A) UNIQUE SERIAL NUMBERS.—A United 

8 States importer shall include in each written 

9 declaration subject to paragraph (1) the unique 

10 serial numbers of the international reserve al11 lowances, foreign allowances, or foreign credits 

12 associated with the covered goods subject to 

13 entry. 

14 (B) RETIREMENT OF ALLOWANCES.—The 

15 President shall retire the international reserve 

16 allowances, foreign allowances, or foreign cred17 its that are included in a written declaration 

18 subject to paragraph (1). 

19 (C) CORRECTED DECLARATION.— 

20 (i) IN GENERAL.—If, after making the 

21 declaration required under paragraph (1), 

22 the United States importer has reason to 

23 believe that a declaration contains informa24 tion that is not correct, the importer shall, 

25 not later than 30 calendar days after the 


hmoore on PRODPC68 with HMBILLS
119 

•S 1766 IS

1 date of discovery of the error, make a cor2 rected declaration. 

3 (ii) METHOD.—A corrected declara4 tion shall be made by submission of a let5 ter or other written statement to the Cus6 toms office where the original declaration 

7 was filed. 

8 (6) CALCULATION OF SUFFICIENCY OF ALLOW9 ANCES.— 

10 (A) METHODOLOGY.— 

11 (i) IN GENERAL.—The President shall 

12 establish, by rule, the methodology for cal13 culating the required number of inter14 national reserve allowances that a United 

15 States importer must submit with the writ16 ten declaration under subsection (a) for 

17 each category of covered goods of each cov18 ered foreign country. 

19 (ii) FORMULA.—The President shall 

20 develop a general formula for calculating 

21 the international reserve allowance require22 ment that applies, on a per unit basis, to 

23 each covered good of a covered foreign 

24 country that is imported during each com25 pliance year. 


hmoore on PRODPC68 with HMBILLS
120 

•S 1766 IS

1 (B) INITIAL COMPLIANCE YEAR.—Subject 

2 to subparagraph (C), the formulas under sub3 paragraphs (A) and (C) shall establish an inter4 national reserve allowance requirement (per 

5 unit imported into the United States) for the 

6 first compliance year for each category of cov7 ered goods of each covered foreign country that 

8 is equal to the quotient obtained by dividing— 

9 (i) the excess, if any, of the total 

10 emissions from the foreign country that 

11 are attributable to the category of covered 

12 goods produced during the most recent 

13 year for which data are available, over the 

14 baseline emissions level of the foreign 

15 country determined for that category of 

16 covered goods; by 

17 (ii) the total number of units of out18 put of the covered good produced in the 

19 foreign country during the most recent 

20 year. 

21 (C) ADJUSTMENTS FOR INITIAL COMPLI22 ANCE YEAR.—The President shall adjust the 

23 international reserve allowance requirement ap24 plicable to the first compliance year to— 

25 (i) reflect the ratio that— 


hmoore on PRODPC68 with HMBILLS
121 

•S 1766 IS

1 (I) allowances that were allocated 

2 at no cost under title II to entities 

3 within the industry sector manufac4 turing the covered goods for the year 

5 when the covered goods were imported 

6 into the United States; bears to 

7 (II) the emissions of that indus8 try sector; and 

9 (ii) take into account the level of eco10 nomic development of the foreign country 

11 of origin of the imported covered goods. 

12 (D) ADJUSTMENTS FOR SUBSEQUENT

13 COMPLIANCE YEARS.—For each subsequent 

14 compliance year, the President shall revise, as 

15 appropriate, the international reserve allowance 

16 requirement applicable to each category of im17 ported covered goods of each covered foreign 

18 country to reflect changes in— 

19 (i) the factors described in subpara20 graphs (B) and (C); 

21 (ii) the total quantity of the annual 

22 greenhouse gas allowances issued under 

23 section 201 and payments made in lieu of 

24 the submission of allowances pursuant to 

25 section 102(a)(2); and 


hmoore on PRODPC68 with HMBILLS
122 

•S 1766 IS

1 (iii) other matters that the President 

2 considers to be relevant in revising the 

3 international reserve allowance require4 ment to achieve the purposes of this sec5 tion. 

6 (E) PUBLICATION.—Not later than 90 

7 days before the beginning of each applicable 

8 calendar year, the President shall publish in the 

9 Federal Register a schedule describing the re10 quired number of international reserve allow11 ances for each category of imported covered 

12 goods of each covered foreign country, as cal13 culated under this paragraph. 

14 (7) CONSISTENCY WITH INTERNATIONAL

15 AGREEMENTS.—The President shall adjust the inter16 national reserve allowance requirements established 

17 under this subsection (including the number of inter18 national reserve allowances required for each cat19 egory of covered goods of a covered foreign country) 

20 as necessary to ensure that the United States com21 plies with all applicable international agreements. 

22 (8) TERMINATION OF INTERNATIONAL RESERVE

23 ALLOWANCE REQUIREMENT.—The international re24 serve allowance requirements of this subsection shall 

25 not apply to the covered goods of a covered foreign 


hmoore on PRODPC68 with HMBILLS
123 

•S 1766 IS

1 country on a determination made by the President 

2 under paragraph (3)(A) with respect to covered 

3 goods of that foreign country. 

4 (9) IMPLEMENTING RULES.—Not later than 

5 January 1, 2019, the President shall issue, pursuant 

6 to notice and comment rulemaking, final rules for 

7 implementing the international reserve allowance re8 quirements established under this subsection. 

9 (g) ADJUSTMENT OF INTERNATIONAL RESERVE AL10 LOWANCE REQUIREMENTS.— 

11 (1) IN GENERAL.—Not later than January 1, 

12 2023, and each year thereafter, the President shall 

13 prepare and submit to Congress a report that as14 sesses the effectiveness of the existing international 

15 reserve allowance requirements of subsection (f) with 

16 respect to covered goods of each covered foreign 

17 country. 

18 (2) INADEQUATE REQUIREMENTS.—If the 

19 President finds that those international reserve al20 lowance requirements are not adequate to achieve 

21 the purposes of this section, the President shall, si22 multaneously with the submission of the report 

23 under paragraph (1), adjust the stringency of the 

24 existing international reserve allowance requirements 

25 applicable to imported covered goods or take other 


hmoore on PRODPC68 with HMBILLS
124 

•S 1766 IS

1 such actions for improving the effectiveness of the 

2 international reserve allowance requirements with re3 spect to imported covered goods in any manner that 

4 complies with all applicable international agree5 ments. 

6 (3) EFFECTIVE DATE.—The revised inter7 national reserve allowance requirements take effect 

8 beginning on January 1 of the calendar year imme9 diately following the date that the President adjusts 

10 the requirements under this subsection. 

11 TITLE VI—GENERAL 

12 PROVISIONS 

13 SEC. 601. MONITORING AND REPORTING. 

14 (a) IN GENERAL.—The President shall require, by 

15 rule, that a regulated entity shall perform such monitoring 

16 and submit such reports as the President determines to 

17 be necessary to carry out this Act. 

18 (b) SUBMISSION OF INFORMATION.—The President 

19 shall establish, by rule, any procedure the President deter20 mines to be necessary to ensure the completeness, consist21 ency, transparency, and accuracy of reports under sub22 section (a), including— 

23 (1) accounting and reporting standards for cov24 ered greenhouse gas emissions; 


hmoore on PRODPC68 with HMBILLS
125 

•S 1766 IS

1 (2) standardized methods of calculating covered 

2 greenhouse gas emissions in specific industries from 

3 other information the President determines to be 

4 available and reliable, such as energy consumption 

5 data, materials consumption data, production data, 

6 or other relevant activity data; 

7 (3) if the President determines that a method 

8 described in paragraph (2) is not feasible for a regu9 lated entity, a standardized method of estimating 

10 covered greenhouse gas emissions of the regulated 

11 entity; 

12 (4) a method of avoiding double-counting of 

13 covered greenhouse gas emissions; 

14 (5) a procedure to prevent a regulated entity 

15 from avoiding the requirements of this Act by— 

16 (A) reorganization into multiple entities; or 

17 (B) outsourcing the operations or activities 

18 of the regulated entity with respect to covered 

19 greenhouse gas emissions; and 

20 (6) a procedure for the verification of data re21 lating to covered greenhouse gas emissions by— 

22 (A) regulated entities; and 

23 (B) independent verification organizations. 

24 (c) DETERMINING ELIGIBILITY FOR CREDITS, AGRI25 CULTURAL SEQUESTRATION ALLOWANCES, BONUS ALVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00125 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
126 

•S 1766 IS

1 LOWANCES FOR GEOLOGICAL SEQUESTRATION, AND

2 EARLY REDUCTION ALLOWANCES.— 

3 (1) IN GENERAL.—An entity shall provide the 

4 President with the information described in para5 graph (2) in connection with any application to re6 ceive— 

7 (A) an agricultural project allowance under 

8 section 205; 

9 (B) an early reduction allowance under 

10 section 206 (unless, and to the extent that, the 

11 President determines that providing the infor12 mation would not be feasible for the entity); 

13 (C) a carbon capture and sequestration 

14 bonus allowance under section 207; or 

15 (D) a credit under section 301, 302, or 

16 303. 

17 (2) REQUIRED INFORMATION.— 

18 (A) GREENHOUSE GAS EMISSIONS REDUC19 TION.—In the case of a greenhouse gas emis20 sions reduction, the entity shall provide the 

21 President with information verifying that, as 

22 determined by the President— 

23 (i) the entity has achieved an actual 

24 reduction in greenhouse gas emissions— 


hmoore on PRODPC68 with HMBILLS
127 

•S 1766 IS

1 (I) relative to historic emissions 

2 levels of the entity; and 

3 (II) taking into consideration any 

4 increase in other greenhouse gas emis5 sions of the entity; and 

6 (ii) if the reduction exceeds the net re7 duction of direct greenhouse gas emissions 

8 of the entity, the entity reported a reduc9 tion that was adjusted so as not to exceed 

10 the net reduction. 

11 (B) GREENHOUSE GAS SEQUESTRATION.— 

12 In the case of a greenhouse gas sequestration, 

13 the entity shall provide the President with in14 formation verifying that, as determined by the 

15 President, the entity has achieved actual in16 creases in net sequestration, taking into ac17 count the total use of materials and energy by 

18 the entity in carrying out the sequestration. 

19 (d) HARMONIZATION WITH INTERNATIONAL STAND20 ARDS.—The President shall, to the maximum extent prac21 ticable, harmonize the rules and procedures developed 

22 under this Act with the rules and procedures of other 

23 countries that have market-based greenhouse gas regu24 latory programs. 


hmoore on PRODPC68 with HMBILLS
128 

•S 1766 IS

1 SEC. 602. ENFORCEMENT. 

2 (a) FAILURE TO SUBMIT ALLOWANCES.— 

3 (1) PAYMENT TO PRESIDENT.—A regulated en4 tity that fails to submit an allowance (or a credit or 

5 TAP in lieu of an allowance) for a calendar year not 

6 later than March 31 of the following calendar year 

7 shall pay to the President, for each allowance the 

8 regulated entity failed to submit, an amount equal 

9 to the product obtained by multiplying— 

10 (A) the TAP price for that calendar year; 

11 and 

12 (B) 3. 

13 (2) FAILURE TO PAY.—A regulated entity that 

14 fails to make a payment to the President under 

15 paragraph (1) by December 31 of the calendar year 

16 following the calendar year for which the payment is 

17 due shall be subject to subsection (b) or (c), or both. 

18 (b) CIVIL ENFORCEMENT.— 

19 (1) PENALTY.—A person that the President de20 termines to be in violation of this Act (including any 

21 rules promulgated under this Act) shall be subject to 

22 a civil penalty of not more than $25,000 for each 

23 day during which the entity is in violation, in addi24 tion to any amount required under subsection (a)(1). 


hmoore on PRODPC68 with HMBILLS
129 

•S 1766 IS

1 (2) INJUNCTION.—The President may bring a 

2 civil action for a temporary or permanent injunction 

3 against any person described in paragraph (1). 

4 (c) CRIMINAL PENALTIES.—A person that willfully 

5 fails to comply with this Act (including any rules promul6 gated under this Act) shall be subject to a fine under title 

7 18, United States Code, or imprisonment for not to exceed 

8 5 years, or both. 

9 SEC. 603. ADMINISTRATIVE PROVISIONS. 

10 (a) DELEGATION.—To carry out this Act, the Presi11 dent may— 

12 (1) delegate and assign any duties or powers 

13 imposed on or assigned to the President; and 

14 (2) promulgate any rules necessary to carry out 

15 this Act. 

16 (b) DATA.— 

17 (1) IN GENERAL.—In carrying out this Act, the 

18 President may use any authority provided under sec19 tion 11 of the Energy Supply and Environmental 

20 Coordination Act of 1974 (15 U.S.C. 796). 

21 (2) DEFINITION OF ENERGY INFORMATION.— 

22 For the purposes of carrying out this Act, the defini23 tion of the term ‘‘energy information’’ under section 

24 11 of the Energy Supply and Environmental Coordi25 nation Act of 1974 (15 U.S.C. 796) shall be considVerDate Aug 31 2005 00:17 Jul 14, 2007 Jkt 059200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\S1766.IS S1766

hmoore on PRODPC68 with HMBILLS
130 

•S 1766 IS

1 ered to include any information the President deter2 mines to be necessary or appropriate to carry out 

3 this Act. 

4 SEC. 604. JUDICIAL REVIEW. 

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

6 (b), section 336(b) of the Energy Policy and Conservation 

7 Act (42 U.S.C. 6306(b)) shall apply to a review of any 

8 rule issued under this Act in the same manner, and to 

9 the same extent, that section applies to a rule issued under 

10 sections 323, 324, and 325 of that Act (42 U.S.C. 6293, 

11 6294, 6295). 

12 (b) EXCEPTION.—A petition for review of a rule 

13 under this Act shall be filed in the United States Court 

14 of Appeals for the District of Columbia. 

15 SEC. 605. SAVINGS PROVISION. 

16 Nothing in this Act affects the authority of Congress 

17 to— 

18 (1) limit, terminate, or change the value of an 

19 allowance or credit issued under this Act; or 

20 (2) modify allocations of allowances or the dis21 tribution of proceeds of allowance auctions. 

Æ 


hmoore on PRODPC68 with HMBILLS