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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 332 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 332

 To address climate disruptions, reduce carbon pollution, enhance the 
 use of clean energy, and promote resilience in the infrastructure of 
               the United States, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2013

Mr. Sanders (for himself and Mrs. Boxer) introduced the following bill; 
 which was read twice and referred to the Committee on Environment and 
                              Public Works

_______________________________________________________________________

                                 A BILL

 
 To address climate disruptions, reduce carbon pollution, enhance the 
 use of clean energy, and promote resilience in the infrastructure of 
               the United States, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Climate Protection 
Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--CARBON POLLUTION FEE

Sec. 101. Carbon pollution fee.
Sec. 102. Residential environmental rebate program.
Sec. 103. Pollution Reduction Trust Fund.
           TITLE II--SUSTAINABLE TECHNOLOGIES FINANCE PROGRAM

Sec. 201. Sustainable Technologies Finance Program.
Sec. 202. Budgetary effects.
                  TITLE III--ENVIRONMENTAL PROTECTION

Sec. 301. Regulation of hydraulic fracturing.
Sec. 302. Reports to Congress.
Sec. 303. Sense of Congress relating to reduction in greenhouse gas 
                            emissions.

                     TITLE I--CARBON POLLUTION FEE

SEC. 101. CARBON POLLUTION FEE.

    (a) In General.--Title I of the Clean Air Act (42 U.S.C. 7401 et 
seq.) is amended by adding at the end the following:

                     ``PART E--CARBON POLLUTION FEE

``SEC. 195. DEFINITIONS.

    ``In this part:
            ``(1) Carbon polluting substance.--The term `carbon 
        polluting substance' means coal (including lignite and peat), 
        petroleum and any petroleum product, or natural gas that--
                    ``(A) when combusted or otherwise used, will 
                release greenhouse gas emissions; and
                    ``(B) is--
                            ``(i) extracted, manufactured, or produced 
                        in the United States; or
                            ``(ii) imported into the United States for 
                        consumption, use, or warehousing.
            ``(2) Carbon pollution-intensive good.--The term `carbon 
        pollution-intensive good' means a good that is (as identified 
        by the Administrator, by rule)--
                    ``(A) iron, steel, a steel mill product (including 
                pipe and tube), aluminum, cement, glass (including 
                flat, container, and specialty glass and fiberglass), 
                pulp, paper, a chemical, or an industrial ceramic;
                    ``(B) any other manufactured product that the 
                Administrator determines--
                            ``(i) is transferred for purposes of 
                        further manufacture; and
                            ``(ii) generates, in the course of the 
                        manufacture of the product, direct and indirect 
                        greenhouse gas emissions that are comparable 
                        (on an emissions-per-dollar of output basis) to 
                        emissions generated in the manufacture or 
                        production of a product identified in 
                        subparagraph (A); or
                    ``(C) a manufactured item--
                            ``(i) in which 1 or more products 
                        identified in subparagraph (A) or (B) are 
                        inputs; and
                            ``(ii) the cost of production of which in 
                        the United States is significantly increased by 
                        the imposition of a fee under this part.
            ``(3) First calendar year.--The term `first calendar year' 
        means the earlier of--
                    ``(A) calendar year 2014; or
                    ``(B) the first calendar year beginning at least 
                180 days after the date of enactment of this part.
            ``(4) Substantially equivalent measure.--The term 
        `substantially equivalent measure' means a fee or other 
        regulatory requirement that imposes a cost on manufacturers of 
        carbon pollution-intensive goods located outside the United 
        States approximately equal to the cost imposed by the fee under 
        this part on manufacturers of comparable carbon pollution-
        intensive goods located in the United States.
            ``(5) 12th calendar year.--The term `12th calendar year' 
        means the calendar year beginning 12 years after the first 
        calendar year.

``SEC. 196. IMPOSITION OF FEE.

    ``(a) In General.--The Administrator shall impose on any 
manufacturer, producer, or importer of a carbon polluting substance a 
fee in accordance with this section.
    ``(b) Amount.--
            ``(1) In general.--The amount of the carbon pollution fee 
        imposed under subsection (a) on any carbon polluting substance 
        shall be assessed per ton of carbon dioxide content (including 
        carbon dioxide equivalent content of methane) of the carbon 
        polluting substance, as determined by the Administrator, in 
        consultation with the Secretary of Energy.
            ``(2) Fractional part of ton.--In the case of a fraction of 
        a ton of a carbon polluting substance, the fee imposed under 
        subsection (a) shall be the same fraction of the amount of the 
        fee imposed on a whole ton of the carbon polluting substance.
            ``(3) Applicable amount.--For purposes of paragraph (1), 
        the amount of the fee shall be--
                    ``(A) for the first calendar year, $20;
                    ``(B) for each calendar year occurring after the 
                first calendar year and before the 12th calendar year, 
                an amount equal to the sum of--
                            ``(i) the amount in effect under this 
                        paragraph for the preceding calendar year; and
                            ``(ii) the product (rounded to the nearest 
                        dollar) obtained by multiplying--
                                    ``(I) the amount described in 
                                clause (i); and
                                    ``(II) 5.6 percent; and
                    ``(C) for the 12th calendar year and any calendar 
                year thereafter, the amount in effect under this 
                paragraph for the preceding calendar year.
    ``(c) Single Imposition of Fee.--No fee shall be imposed under 
subsection (a) with respect to a carbon polluting substance if the 
person that would be liable for the fee establishes that a prior fee 
imposed under that subsection has been imposed with respect to that 
carbon polluting substance.
    ``(d) Limitations.--No fee shall be imposed against a person under 
subsection (a) for a calendar year if during that calendar year, in 
accordance with such regulations as the Administrator may prescribe--
            ``(1) the person uses a carbon polluting substance as a 
        feedstock so that the carbon associated with that carbon 
        polluting substance will not be emitted;
            ``(2) a fee under subsection (a) was paid with respect to 
        another carbon polluting substance that is used by the person 
        in the manufacture or production of the applicable carbon 
        polluting substance; or
            ``(3) the carbon polluting substance is exported.

``SEC. 197. CARBON EQUIVALENCY FEE.

    ``(a) Imports.--
            ``(1) In general.--The Administrator shall impose a carbon 
        equivalency fee on imports of carbon pollution-intensive goods 
        that shall be equivalent to the cost that domestic producers of 
        comparable carbon pollution-intensive goods incur as a result 
        of--
                    ``(A) fees paid by manufacturers, producers, and 
                importers of carbon polluting substances under this 
                part; and
                    ``(B) carbon equivalency fees paid by importers of 
                carbon pollution-intensive goods used in the production 
                of the relevant comparable carbon pollution-intensive 
                goods.
            ``(2) Determination of fee amount.--
                    ``(A) In general.--The amount of the carbon 
                equivalency fee under paragraph (1) shall be--
                            ``(i) determined annually; and
                            ``(ii) differentiated by classes of 
                        products and country of origin, taking into 
                        account the quantity of greenhouse gas 
                        emissions released during the process of 
                        manufacturing the carbon pollution-intensive 
                        goods and transporting the carbon pollution-
                        intensive goods from the country of origin.
                    ``(B) Petitions for adjustment.--The Administrator 
                shall provide for a process for petitioning for 
                adjustment to any fees determined under this 
                subsection.
    ``(b) Use of Proceeds.--
            ``(1) Transfer of funds.--For each applicable fiscal year, 
        the Secretary of the Treasury shall transfer to the 
        Administrator and the Secretary of Transportation an amount 
        equal to 50 percent each of the amounts received during the 
        preceding fiscal year as a result of the carbon equivalency fee 
        imposed under subsection (a), without further appropriation.
            ``(2) Use of funds.--
                    ``(A) Environment.--The Administrator, in 
                consultation with the Secretary of Agriculture, the 
                Secretary of the Interior, and the Secretary of State, 
                shall use the amounts transferred under paragraph (1)--
                            ``(i) as a primary purpose, to provide 
                        amounts to State and local programs that assist 
                        communities in--
                                    ``(I) adapting to climate change;
                                    ``(II) improving the resiliency of 
                                critical infrastructure; and
                                    ``(III) protecting environmental 
                                quality and wildlife; and
                            ``(ii) as a secondary purpose, to meet 
                        international commitments made by the United 
                        States to assist with climate change 
                        adaptation.
                    ``(B) Transportation.--The Secretary of 
                Transportation shall use the amounts transferred under 
                paragraph (1) to provide amounts--
                            ``(i) to State and local programs that 
                        assist communities in improving the resiliency 
                        of critical infrastructure; and
                            ``(ii) for projects that provide 
                        preferential parking for carpools, including 
                        the addition of electric vehicle charging 
                        stations, subject to the condition that the 
                        primary purpose of the facilities is the 
                        reduction of vehicular traffic on nearby 
                        Federal-aid highways.
    ``(c) Expiration.--This section shall cease to have effect at such 
time as, and to the extent that--
            ``(1)(A) in the case of countries of export that adopt and 
        ratify an international agreement requiring countries that emit 
        greenhouse gases and produce carbon pollution-intensive goods 
        for international markets to adopt equivalent measures, the 
        international agreement comes into effect; or
            ``(B) the country of export has implemented substantially 
        equivalent measures, as certified by the President of the 
        United States; and
            ``(2) the actions provided under subsection (a) are no 
        longer appropriate, as determined by the Administrator.

``SEC. 198. REPORT TO CONGRESS.

    ``Not later than 5 years after the date of enactment of this part, 
the Administrator shall submit to Congress a report that includes 
recommendations for--
            ``(1) the administration of the carbon pollution fee 
        program under this part for calendar years beginning after the 
        12th calendar year, including a schedule for establishing the 
        amount of the fee for those subsequent calendar years; and
            ``(2) future investments to reduce greenhouse gas emissions 
        and provide resources for climate change adaptation.''.
    (b) Technical Amendments.--Title IV of the Clean Air Act (relating 
to noise pollution) (42 U.S.C. 7641 et seq.) is--
            (1) amended by redesignating sections 401 through 403 as 
        sections 701 through 703, respectively; and
            (2) redesignated as title VII and moved to appear at the 
        end of that Act.

SEC. 102. RESIDENTIAL ENVIRONMENTAL REBATE PROGRAM.

    (a) In General.--There is authorized to be appropriated to the 
Administrator of the Environmental Protection Agency (referred to in 
this section as the ``Administrator'') an amount equal to \3/5\ of the 
amounts received in the Treasury as the result of the fee imposed under 
section 196 of the Clean Air Act (as added by section 101(a)) to 
provide a monthly residential environmental rebate to legal residents 
of the United States.
    (b) Regulations.--As soon as practicable after the date of 
enactment of this Act, the Administrator shall promulgate regulations 
establishing procedures for the distribution of residential 
environmental rebates under subsection (a), including procedures that 
provide, to the maximum extent practicable, for--
            (1) the coordination of the monthly residential 
        environmental rebate with other Federal and State payment 
        mechanisms;
            (2) the use of electronic transfers of the monthly 
        residential environmental rebates; and
            (3) the establishment of an Office of Environmental Rebate 
        Advocate within the Environmental Protection Agency to assist 
        households with accessing and using the residential 
        environmental rebate program.
    (c) Administrative Costs.--Of the amounts reserved for rebates 
under this section, not more than 1 percent shall be used to administer 
the program under this section.

SEC. 103. POLLUTION REDUCTION TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Pollution Reduction 
Trust Fund'' (referred to in this section as the ``Trust Fund''), 
consisting of such amounts as are transferred to the Trust Fund under 
subsection (b) and to be used to facilitate the implementation of the 
carbon pollution reduction program.
    (b) Transfers to Trust Fund.--After setting aside amounts under 
section 102(a), there is appropriated to the Trust Fund an amount 
equivalent to the remaining revenues received in the Treasury as the 
result of the fee imposed under section 196 of the Clean Air Act (as 
added by section 101(a)).
    (c) Distribution of Amounts.--Amounts in the Trust Fund for a 
calendar year shall be available without further appropriation, as 
follows:
            (1) $7,500,000,000 shall be available to the Administrator 
        of the Environmental Protection Agency, for each of the first 
        10 calendar years beginning after the date of enactment of this 
        Act, to mitigate the economic impacts of the fee imposed under 
        section 196 of the Clean Air Act (as added by section 101(a)) 
        on energy-intensive and trade-exposed industries, to be 
        distributed in accordance with regulations promulgated by the 
        Administrator, subject to the requirement that the 
        Administrator shall reserve not less than \1/4\ of those 
        amounts for energy efficiency investments in energy-intensive 
        or trade-exposed industries.
            (2) $5,000,000,000 shall be available to the Secretary of 
        Energy to carry out the Weatherization Assistance Program for 
        Low-Income Persons established under part A of title IV of the 
        Energy Conservation and Production Act (42 U.S.C. 6861 et seq.) 
        for each of the first 10 calendar years beginning after the 
        date of enactment of this Act.
            (3) $1,000,000,000 shall be available to the Secretary of 
        Labor for each of the first 10 calendar years beginning after 
        the date of enactment of this Act for job training, education, 
        and transition assistance for individuals employed by the 
        fossil fuel industry seeking to transition to clean energy 
        jobs.
            (4) $2,000,000,000 shall be available for the Advanced 
        Research Projects Agency-Energy for each of the first 10 
        calendar years beginning after the date of enactment of this 
        Act.
            (5) The balance shall be used for Federal budget deficit 
        reduction.

           TITLE II--SUSTAINABLE TECHNOLOGIES FINANCE PROGRAM

SEC. 201. SUSTAINABLE TECHNOLOGIES FINANCE PROGRAM.

    (a) Establishment.--The Administrator of the Environmental 
Protection Agency (referred to in this section as the 
``Administrator'') shall establish a program, and promulgate any 
necessary regulations to carry out the program, to be known as the 
``Sustainable Technologies Finance Program'', under which the 
Administrator shall provide loans, credit instruments, loan guarantees, 
and other financial assistance, including in the form of assistance for 
public-private partnerships, for eligible projects carried out in the 
United States that reduce greenhouse gas emissions.
    (b) Eligible Projects.--A project shall be eligible to receive 
financial assistance under this section if the project reduces 
greenhouse gas emissions as determined by the Administrator, and uses--
            (1) a technology for--
                    (A) energy efficiency;
                    (B) combined heat and power;
                    (C) solar energy, including--
                            (i) photovoltaic energy;
                            (ii) thermal energy;
                            (iii) wind energy; and
                            (iv) geothermal energy, including 
                        groundsource heat pumps;
                    (D) biomass or biofuels that are not sourced from 
                food crops;
                    (E) ocean, tidal, or hydropower energy;
                    (F) electric vehicle infrastructure;
                    (G) advanced battery or energy storage; or
                    (H) rail, transit, or public transportation; or
            (2) any other transportation technology that offers a 
        reduction in greenhouse gas emissions, as determined by the 
        Administrator.
    (c) Applications.--To be eligible to receive financial assistance 
under this section, the owner or operator of an eligible project shall 
submit to the Administrator an application at such time, in such 
manner, and containing such information as the Administrator may 
require.
    (d) Priority.--In providing financial assistance under this 
section, the Administrator shall give priority to projects that provide 
the largest greenhouse gas emissions reductions per Federal dollar 
invested, as determined by the Administrator.
    (e) Funding.--
            (1) In general.--Notwithstanding any other provision of 
        law, on October 1, 2013, and on each October 1 thereafter 
        through October 1, 2022, out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Administrator for the cost of grants, loans, 
        and loan guarantees to carry out this section, $5,000,000,000, 
        to remain available until expended.
            (2) Receipt and acceptance.--The Administrator shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
            (3) Administrative costs.--Of the amounts made available to 
        carry out this section, the Administrator may use not more than 
        2 percent for each fiscal year for the administration of this 
        section.

SEC. 202. BUDGETARY EFFECTS.

    The budgetary effects of this title, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

                  TITLE III--ENVIRONMENTAL PROTECTION

SEC. 301. REGULATION OF HYDRAULIC FRACTURING.

    (a) Disclosure.--Section 1421(b) of the Safe Drinking Water Act (42 
U.S.C. 300h(b)) is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) by adding at the end the following:
            ``(3) Disclosures of chemical constituents.--
                    ``(A) In general.--A person conducting hydraulic 
                fracturing operations shall disclose to the State (or 
                to the Administrator, in any case in which the 
                Administrator has primary enforcement responsibility in 
                a State), by not later than such deadlines as shall be 
                established by the State (or the Administrator)--
                            ``(i) before the commencement of any 
                        hydraulic fracturing operations at any area or 
                        a portion of a area, a list of chemicals 
                        intended for use in any underground injection 
                        during the operations (including identification 
                        of the chemical constituents of mixtures, 
                        Chemical Abstracts Service numbers for each 
                        chemical and constituent, material safety data 
                        sheets when available, and the anticipated 
                        volume of each chemical to be used); and
                            ``(ii) after the completion of hydraulic 
                        fracturing operations described in clause (i), 
                        the list of chemicals used in each underground 
                        injection during the operations (including 
                        identification of the chemical constituents of 
                        mixtures, Chemical Abstracts Service numbers 
                        for each chemical and constituent, material 
                        safety data sheets when available, and the 
                        volume of each chemical used).
                    ``(B) Public availability.--The State (or the 
                Administrator, as applicable) shall make available to 
                the public the information contained in each disclosure 
                of chemical constituents under subparagraph (A), 
                including by posting the information on an appropriate 
                Internet website.
                    ``(C) Immediate disclosure in case of medical 
                emergency.--
                            ``(i) In general.--Subject to clause (ii), 
                        the regulations promulgated pursuant to 
                        subsection (a) shall require that, in any case 
                        in which the State (or the Administrator, as 
                        applicable) or an appropriate treating 
                        physician or nurse determines that a medical 
                        emergency exists and the proprietary chemical 
                        formula or specific chemical identity of a 
                        trade-secret chemical used in hydraulic 
                        fracturing is necessary for medical treatment, 
                        the applicable person using hydraulic 
                        fracturing shall, upon request, immediately 
                        disclose to the State (or the Administrator) or 
                        the treating physician or nurse the proprietary 
                        chemical formula or specific chemical identity 
                        of a trade-secret chemical, regardless of the 
                        existence of--
                                    ``(I) a written statement of need; 
                                or
                                    ``(II) a confidentiality agreement.
                            ``(ii) Requirement.--A person using 
                        hydraulic fracturing that makes a disclosure 
                        required under clause (i) may require the 
                        execution of a written statement of need and a 
                        confidentiality agreement as soon as 
                        practicable after the determination by the 
                        State (or the Administrator) or the treating 
                        physician or nurse under that clause.
                    ``(D) No public disclosure required.--Nothing in 
                subparagraph (A) or (B) authorizes a State (or the 
                Administrator) to require the public disclosure of any 
                proprietary chemical formula.''.
    (b) Definitions.--Section 1421(d) of the Safe Drinking Water Act 
(42 U.S.C. 300h(d)) is amended by striking paragraph (1) and inserting 
the following:
            ``(1) Underground injection.--
                    ``(A) In general.--The term `underground injection' 
                means the subsurface emplacement of fluids by well 
                injection.
                    ``(B) Inclusion.--The term `underground injection' 
                includes the underground injection of fluids or 
                propping agents pursuant to hydraulic fracturing 
                operations relating to oil or gas production 
                activities.
                    ``(C) Exclusion.--The term `underground injection' 
                does not include the underground injection of natural 
                gas for the purpose of storage.''.
    (c) State Primary Enforcement Responsibility.--Section 1422 of the 
Safe Drinking Water Act (42 U.S.C. 300h-1) is amended by striking 
subsection (c) and inserting the following:
    ``(c) Disapproval of a State Program.--
            ``(1) In general.--If the Administrator disapproves a State 
        program (or part of a program) under subsection (b)(2) or 
        determines under subsection (b)(3) that a State no longer meets 
        the requirements of clause (i) or (ii) of subsection (b)(1)(A), 
        or if a State fails to submit an application or notice before 
        the date of expiration of the period specified in subsection 
        (b)(1), not later than 90 days after the date of the 
        disapproval, determination, or expiration (as applicable), the 
        Administrator, by regulation, shall prescribe (and may from 
        time to time by regulation revise) a program applicable to the 
        State that meets the requirements of section 1421(b).
            ``(2) Other program not in effect.--A program prescribed by 
        the Administrator under paragraph (1) shall apply in the State 
        to the extent that a program adopted by the State that the 
        Administrator determines meets the requirements of clause (i) 
        or (ii) of subsection (b)(1)(A) is not in effect.
            ``(3) Opportunity for public hearing.--Before promulgating 
        any regulation under this section, the Administrator shall 
        provide an opportunity for a public hearing with respect to the 
        regulation.''.
    (d) Enforcement of Program.--Section 1423(c) of the Safe Drinking 
Water Act (42 U.S.C. 300h-2) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) In general.--In any case in which the Administrator 
        is authorized to bring a civil action under this section with 
        respect to any regulation or other requirement of this part, 
        the Administrator may also issue an order under this subsection 
        that assesses a civil penalty of not more than $10,000 for each 
        day of violation for any past or current violation, up to a 
        maximum administrative penalty of $125,000 or requires 
        compliance with the regulation or other requirement, or 
        both.''; and
            (2) by redesignating paragraphs (3) through (8) as 
        paragraphs (2) through (7), respectively.
    (e) Optional Demonstration by States Relating to Oil or Natural 
Gas.--
            (1) In general.--Section 1425 of the Safe Drinking Water 
        Act (42 U.S.C. 300h-4) is repealed.
            (2) Conforming amendments.--
                    (A) The first sentence of section 1423(a)(1) of the 
                Safe Drinking Water Act (42 U.S.C. 300h-2(a)(1)) is 
                amended by striking ``or section 1425(c)''.
                    (B) Section 1443(c)(2) of the Safe Drinking Water 
                Act (42 U.S.C. 300j-2(c)(2)) is amended by striking the 
                second sentence.

SEC. 302. REPORTS TO CONGRESS.

    (a) Fugitive Methane Emissions.--Not later than 2 years after the 
date of enactment of this Act, the Administrator of the Environmental 
Protection Agency shall submit to Congress a report describing the 
quantity of fugitive methane emissions emitted as a result of any leak 
in natural gas infrastructure, including recommendations for 
eliminating each such leak.
    (b) Other Greenhouse Gas Emissions.--The Administrator of the 
Environmental Protection Agency shall enter into an agreement with the 
National Academy of Sciences under which the Academy shall conduct a 
study, and, not later than 2 years after the date of enactment of this 
Act, submit to Congress a report describing--
            (1) the quantity of United States greenhouse gas emissions 
        not covered by a program under this Act (or an amendment made 
        by this Act); and
            (2) recommendations for programs to reduce emissions of 
        those greenhouse gases.

SEC. 303. SENSE OF CONGRESS RELATING TO REDUCTION IN GREENHOUSE GAS 
              EMISSIONS.

    It is the sense of Congress that the United States should carry out 
activities to ensure that, by January 1, 2050, the total quantity of 
greenhouse gas emissions released in the United States is reduced by 
not less than 80 percent, as compared to the total quantity of 
greenhouse gas emissions released during calendar year 2005.
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