I 

110TH CONGRESS 

1ST SESSION H. R. 1590 

To reduce greenhouse gas emissions and protect the climate. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 20, 2007 

Mr. WAXMAN (for himself, Mr. ALLEN, Mr. LOBIONDO, Ms. MATSUI, Mr. 

WEXLER, Mr. HINCHEY, Mr. PALLONE, Mr. BERMAN, Ms. SHEA-PORTER, Mr. CHANDLER, Mr. MEEHAN, Ms. MCCOLLUM of Minnesota, Mr. 

NADLER, Ms. LEE, Mr. BLUMENAUER, Mr. INSLEE, Mr. SCHIFF, Mrs. 

TAUSCHER, Mrs. MALONEY of New York, Mr. SHAYS, Mr. MORAN of Virginia, Mr. ELLISON, Mr. GUTIERREZ, Mr. GRIJALVA, Mrs. DAVIS of California, Mr. CLAY, Mr. HONDA, Ms. WOOLSEY, Ms. HARMAN, Ms. 

SCHAKOWSKY, Mr. COHEN, Mr. CLEAVER, Mr. CARNAHAN, Mr. PAYNE, 

Mr. MCNULTY, Mr. STARK, Mr. SESTAK, Mr. WELCH of Vermont, Mr. 

CUMMINGS, Ms. SCHWARTZ, Mr. DOGGETT, Ms. WATSON, Mr. SMITH of 

Washington, Mr. LYNCH, Mr. MARKEY, Mr. SHERMAN, Mr. MCGOVERN, 

Mr. MICHAUD, Ms. BALDWIN, Mr. OLVER, Mr. WEINER, Mr. JEFFERSON, Mr. HODES, Mr. LANTOS, Mr. SIRES, Mr. YARMUTH, Mr. ABERCROMBIE, Mr. ROTHMAN, Ms. WATERS, Mr. VAN HOLLEN, Mr. 

HASTINGS of Florida, Mrs. CAPPS, Mr. DELAHUNT, Mr. FARR, Mr. FILNER, Mr. FRANK of Massachusetts, Ms. JACKSON-LEE of Texas, Mrs. 

JONES of Ohio, Mr. KENNEDY, Mr. KUCINICH, Mr. LANGEVIN, Mr. 

LARSON of Connecticut, Mr. LEWIS of Georgia, Mr. GEORGE MILLER of 

California, Mrs. NAPOLITANO, Mr. NEAL of Massachusetts, Ms. LORETTA

SANCHEZ of California, Mr. SERRANO, Mr. THOMPSON of California, Ms. 

ZOE LOFGREN of California, Mr. DAVIS of Illinois, Mr. WYNN, Mr. 

FATTAH, Ms. SOLIS, Mr. SARBANES, Mr. MURPHY of Connecticut, Mr. 

ACKERMAN, Mrs. LOWEY, Ms. DELAURO, Mr. DICKS, Mr. TOWNS, Ms. 

DEGETTE, Ms. BERKLEY, Mr. KIND, Mr. BISHOP of New York, Mr. 

ISRAEL, Ms. CORRINE BROWN of Florida, Mr. SCOTT of Virginia, Mr. 

JOHNSON of Georgia, Mr. KLEIN of Florida, Mr. BRADY of Pennsylvania, 

Mr. CONYERS, Mr. JACKSON of Illinois, Ms. ROYBAL-ALLARD, Ms. CASTOR, Ms. HIRONO, Mr. EMANUEL, Mr. MCNERNEY, Mr. THOMPSON of 

Mississippi, Ms. LINDA T. SA ́NCHEZ of California, Mr. PASCRELL, Mr. 

RANGEL, Ms. MILLENDER-MCDONALD, Mr. DEFAZIO, Ms. MOORE of 

Wisconsin, Ms. WASSERMAN SCHULTZ, Mr. MEEK of Florida, Ms. EDDIE

BERNICE JOHNSON of Texas, Mr. MCDERMOTT, Ms. CARSON, Mr. 

BECERRA, Ms. ESHOO, Mr. HALL of New York, Mr. CAPUANO, Mr. 

CROWLEY, Mr. TIERNEY, Mr. ENGEL, and Mr. WU) introduced the folmstockstill on PROD1PC66 with BILLS

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lowing bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Foreign Affairs, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To reduce greenhouse gas emissions and protect the climate. 

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. 

4 This Act may be cited as the ‘‘Safe Climate Act of 

5 2007’’. 

6 SEC. 2. FINDING; SENSE OF CONGRESS. 

7 (a) FINDINGS.—The Congress finds as follows: 

8 (1) The United States is a party to the 1992 

9 United Nations Framework Convention on Climate 

10 Change, which has the objective of stabilizing green11 house gas concentrations in the atmosphere at a 

12 level that would prevent ‘‘dangerous anthropogenic 

13 interference’’ with the climate system. 

14 (2) To achieve this objective, the increase in 

15 global mean surface temperature should not exceed 

16 2°C (3.6°F) above pre-industrial temperature. 

17 (3) The risks associated with a temperature in18 crease above 2°C (3.6°F) are grave, including the 

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1 disintegration of the Greenland ice sheet, which, if 

2 it were to melt completely, would raise global aver3 age sea level by approximately 23 feet, devastating 

4 many of the world’s coastal areas and population 

5 centers. 

6 (4) The Intergovernmental Panel on Climate 

7 Change projects that temperatures will rise between 

8 1.8°C to 4.0°C (3.2°F to 7.2°F) by the end of the 

9 century, under a range of expected emissions trends. 

10 (5) Serious global warming impacts have al11 ready been observed in the United States and world12 wide, including increases in heat waves and other ex13 treme weather events, rise in sea level, retreat of 

14 glaciers and polar ice, decline in mountain snowpack, 

15 increased drought and wildfires, stronger hurricanes, 

16 ocean acidification, extensive coral bleaching, migra17 tions and shifts in the yearly cycles of plants and 

18 animals, and the spread of infectious diseases. 

19 (6) Scientists project that under a mid-range 

20 estimate of global warming, by 2050, roughly 25 

21 percent of animal and plant species will be com22 mitted to extinction. 

23 (7) Decisive action is needed to minimize the 

24 many dangers posed by global warming. 

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1 (8) The timing of such action is critical, given 

2 that greenhouse gases can persist in the atmosphere 

3 for more than a century. 

4 (9) Reductions in emissions from today’s levels 

5 must begin within a decade to preserve the ability to 

6 stabilize atmospheric greenhouse gas concentrations 

7 at levels likely to protect against a temperature rise 

8 above 2°C (3.6°F). 

9 (10) With only 5 percent of the world popu10 lation, the United States emits approximately 20 

11 percent of the world’s total greenhouse gas emissions 

12 and must be a leader in addressing global warming. 

13 (11) Existing energy efficiency and clean, re14 newable energy technologies can reduce global warm15 ing pollution, while saving consumers money, reduc16 ing our dependence on oil, enhancing national secu17 rity, cleaning the air, and protecting pristine places 

18 from drilling and mining. 

19 (b) SENSE OF CONGRESS.—It is the sense of the 

20 Congress that the United States should participate in ne21 gotiations under the 1992 United Nations Framework 

22 Convention on Climate Change with the objective of secur23 ing United States participation in agreements that— 

24 (1) establish mitigation commitments by all 

25 countries that are major emitters of greenhouse 

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1 gases, consistent with the principle of common but 

2 differentiated responsibilities; 

3 (2) achieve reductions in global greenhouse gas 

4 emissions at a pace and levels sufficient to avoid 

5 dangerous interference with the earth’s climate; and 

6 (3) advance and protect the economic and na7 tional security interests of the United States. 

8 SEC. 3. AMENDMENTS TO THE CLEAN AIR ACT. 

9 The Clean Air Act (42 U.S.C. 7401 et seq.) is amend10 ed by adding at the end the following: 

11 ‘‘TITLE VII—GREENHOUSE GAS 

12 EMISSIONS 

13 ‘‘SEC. 701. EMISSION REDUCTION TARGETS. 

14 ‘‘Not later than 2 years after the date of enactment 

15 of this section, the Administrator shall promulgate annual 

16 emission reduction targets for each calendar year begin17 ning in 2010 and ending in 2050, as follows: 

18 ‘‘(1) In 2010, the quantity of United States 

19 greenhouse gas emissions shall not exceed the quan20 tity of United States greenhouse gases projected to 

21 be emitted in 2009. 

22 ‘‘(2) Beginning in 2011, the quantity of United 

23 States greenhouse gas emissions shall be reduced by 

24 approximately 2 percent each year, such that the 

25 quantity of such emissions in 2020 does not exceed 

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1 the quantity of United States greenhouse gases 

2 emitted in 1990. 

3 ‘‘(3) Beginning in 2021, the quantity of United 

4 States greenhouse gas emissions shall be reduced by 

5 approximately 5 percent each year, such that the 

6 quantity of such emissions in 2050 does not exceed 

7 20 percent of the quantity of United States green8 house gases emitted in 1990. 

9 ‘‘SEC. 702. NATIONAL ACADEMIES REVIEW. 

10 ‘‘Not later than 5 years after the date of the enact11 ment of this section, and every 5 years thereafter, the Na12 tional Academies, acting through the National Academy 

13 of Sciences and the National Research Council, shall sub14 mit a report to the Administrator and the Congress on 

15 the prospects for avoiding dangerous anthropogenic inter16 ference with the climate system and the progress made 

17 to date. Such report shall— 

18 ‘‘(1) evaluate whether the emission reduction 

19 targets promulgated pursuant to section 701 are 

20 likely to be sufficient to avoid dangerous climate 

21 change, taking into account the actions of other na22 tions; 

23 ‘‘(2) include an assessment of whether each of 

24 the following events, and any other indicator of sigmstockstill on PROD1PC66 with BILLS

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1 nificant global warming determined by the National 

2 Academies, has occurred or is likely to occur— 

3 ‘‘(A) atmospheric greenhouse gas con4 centrations of greater than 450 carbon dioxide5 equivalent ppm; 

6 ‘‘(B) global mean surface temperature in7 crease of greater than 2°C (3.6°F) from pre-in8 dustrial levels; 

9 ‘‘(C) substantial slowing of the Atlantic 

10 thermohaline circulation; 

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

12 ‘‘(E) ice-free Arctic Ocean in the summer; 

13 ‘‘(F) decrease in the area of permafrost to 

14 below 50 percent of such area in 2000; and 

15 ‘‘(G) loss of over 40 percent of the world’s 

16 coverage of coral reefs, due to increased ocean 

17 temperature or acidity; and 

18 ‘‘(3) if the National Academies concludes that 

19 emission reduction targets promulgated pursuant to 

20 section 701 are not likely to be sufficient to avoid 

21 dangerous climate change, or that any of the events 

22 specified in paragraph (2) has occurred or is likely 

23 to occur— 

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1 ‘‘(A) identify the needed amount of further 

2 reductions in atmospheric greenhouse gas con3 centrations; and 

4 ‘‘(B) recommend additional United States 

5 and international actions to further reduce at6 mospheric greenhouse gas concentrations. 

7 ‘‘SEC. 703. REGULATIONS. 

8 ‘‘(a) IN GENERAL.—The Administrator shall promul9 gate not later than 2 years after the date of the enactment 

10 of this section, and may periodically revise, regulations re11 quiring the reduction of United States greenhouse gas 

12 emissions to meet the emission reduction targets promul13 gated pursuant to section 701. 

14 ‘‘(b) RULEMAKING ON RECOMMENDATIONS OF NA15 TIONAL ACADEMIES.—If the National Academies submits 

16 a recommendation under section 702(3)(B) for a regu17 latory action by a Federal department or agency, and such 

18 regulatory action is within the authority of such depart19 ment or agency (under law other than this subsection), 

20 the head of such department or agency shall, not later 

21 than 2 years after the submission of such recommenda22 tion, finalize a rulemaking— 

23 ‘‘(1) to carry out such regulatory action; or 

24 ‘‘(2) to explain the reasons for declining to act. 

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1 ‘‘SEC. 704. MARKET-BASED CAP ON EMISSIONS. 

2 ‘‘(a) IN GENERAL.—The regulations promulgated 

3 under section 703(a) shall— 

4 ‘‘(1) impose a cap on the greenhouse gas emis5 sions of sources and sectors described in subsection 

6 (b)(1); and 

7 ‘‘(2) allow emissions trading among covered en8 tities. 

9 ‘‘(b) SCOPE.—The regulations promulgated under 

10 section 703(a) shall— 

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

12 to the sources or sectors of the United States econ13 omy with— 

14 ‘‘(A) the largest emissions; 

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

16 to reduce emissions; or 

17 ‘‘(C) other characteristics that the Admin18 istrator determines make the source or sector 

19 appropriate to include; and 

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

21 United States greenhouse gas emissions, such that, 

22 in combination with other measures adopted under 

23 this title and under the Safe Climate Act of 2007 

24 and the amendments made by such Act, such regula25 tions will ensure that total United States greenhouse 

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1 gas emissions will not exceed the emission reduction 

2 targets promulgated pursuant to section 701. 

3 ‘‘(c) ALLOWANCES.— 

4 ‘‘(1) IN GENERAL.—The regulations promul5 gated under section 703(a) shall provide for the Ad6 ministrator to issue each year a quantity of green7 house gas emissions allowances equivalent to the 

8 emissions allowed under the cap required by sub9 section (a)(1) for such year. Each such allowance 

10 shall authorize the emission of one carbon dioxide 

11 equivalent. Such an allowance does not constitute a 

12 property right, and nothing in any provision of law 

13 shall be construed to limit the authority of the 

14 United States to terminate or limit such an allow15 ance. 

16 ‘‘(2) TRADING.—Allowances issued under this 

17 section may be held and traded by any person. 

18 ‘‘(3) FLEXIBILITY.—Allowances issued under 

19 this section may be used in the year of issuance or 

20 may be banked for use in a year subsequent to the 

21 year of issuance. 

22 ‘‘(d) DISTRIBUTION OF ALLOWANCES.— 

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

24 ‘‘(A) IN GENERAL.—Within one year of the 

25 enactment of this title, the President, in conmstockstill on PROD1PC66 with BILLS

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1 sultation with the Administrator and other ap2 propriate department and agency heads, shall 

3 develop and submit to the Congress a plan— 

4 ‘‘(i) to distribute the allowances issued 

5 under this section through auctions, and, 

6 at the discretion of the President and sub7 ject to subparagraph (B)(iii), through allo8 cations without charge to entities not cov9 ered by the cap or covered entities; 

10 ‘‘(ii) to deposit the proceeds of such 

11 auctions in the Climate Reinvestment 

12 Fund established by subsection (h); and 

13 ‘‘(iii) to ensure that such allowances 

14 are distributed, and such proceeds are 

15 used, in a manner consistent with the goals 

16 described in subsection (e). 

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

18 under subparagraph (A) shall— 

19 ‘‘(i) identify the department or agency 

20 responsible for implementing each action 

21 required; 

22 ‘‘(ii) ensure that allowances are dis23 tributed not later than January 1, 2010, 

24 for calendar year 2010; and 

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

2 of allowances without charge to result in 

3 the creation of windfall profits for covered 

4 entities. 

5 ‘‘(2) PLAN IMPLEMENTATION.—The Adminis6 trator and the head of each department or agency 

7 identified in paragraph (1)(B)(i) shall give the Con8 gress a period of one year to review and act upon 

9 the plan submitted under paragraph (1). If during 

10 such period no statute is enacted for the express 

11 purpose of codifying such plan or an alternative to 

12 such plan, the Administrator and the head of each 

13 such department or agency shall implement the ac14 tions identified in the plan. 

15 ‘‘(e) GOALS.—The goals described in this subsection 

16 are the following: 

17 ‘‘(1) Maximizing public benefit and promoting 

18 economic growth. 

19 ‘‘(2) Mitigating the effect of any energy cost in20 creases to consumers, particularly low-income con21 sumers. 

22 ‘‘(3) Providing equitable transition assistance to 

23 any workers and regions affected by a transition 

24 away from high carbon-emitting energy sources. 

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1 ‘‘(4) Encouraging research, development, and 

2 commercial deployment of innovative technologies for 

3 avoiding, reducing, or sequestering greenhouse gas 

4 emissions. 

5 ‘‘(5) Encouraging reduced carbon emissions 

6 from, and enhanced sequestration of, carbon in the 

7 forest and agricultural sectors. 

8 ‘‘(6) Recognizing and rewarding early reduc9 tions of greenhouse gases. 

10 ‘‘(7) Supporting activities, including providing 

11 support for State activities, to protect against and 

12 mitigate the impacts of climate change, including de13 pletion of snowpack and water supplies, droughts, 

14 wildfires, enhanced coastal erosion, sea level rise, 

15 higher storm surges, more intense precipitation 

16 events and hurricanes, spread of disease, damage to 

17 fish and wildlife habitat, commercial harms (such as 

18 damage to the maple syrup and fishing industries), 

19 and agricultural and forestry losses due to drought, 

20 disease, and insect infestations. 

21 ‘‘(f) MONITORING.—The Administrator shall ensure 

22 that greenhouse gas emissions and the use of allowances 

23 issued under this section are accurately tracked, reported, 

24 and verified, to ensure that the cap-and-trade system esmstockstill on PROD1PC66 with BILLS

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1 tablished pursuant to this section is robust and enforce2 able. 

3 ‘‘(g) ENFORCEMENT.— 

4 ‘‘(1) IN GENERAL.—In the case of excess green5 house gas emissions under this section by an entity 

6 during any calendar year, the regulations promul7 gated under section 703(a) shall require the entity— 

8 ‘‘(A) to submit allowances for such emis9 sions during the following calendar year; and 

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

11 determined under paragraph (2). 

12 ‘‘(2) AMOUNT OF CIVIL PENALTY.—For each 

13 quantity of excess greenhouse gas emissions consti14 tuting one carbon dioxide equivalent, the amount of 

15 a civil penalty under this subsection shall be twice 

16 the market price for an allowance at the end of the 

17 calendar year in which the excess emissions oc18 curred. The Administrator shall establish the meth19 od of determining such market price. 

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

21 under this subsection shall be due and payable to 

22 the Administrator without demand. 

23 ‘‘(h) CLIMATE REINVESTMENT FUND.— 

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

25 the Treasury of the United States a fund to be 

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1 known as the ‘Climate Reinvestment Fund’ (in this 

2 subsection referred to as the ‘Fund’). The Fund 

3 shall consist of such amounts as may be appro4 priated pursuant to paragraph (2) to the Fund. 

5 Such amounts shall remain available until expended. 

6 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

7 For each fiscal year, there is authorized to be appro8 priated to the Fund an amount equal to the sum 

9 of— 

10 ‘‘(A) the amount collected through auc11 tions of allowances issued under this section; 

12 and 

13 ‘‘(B) the amount of civil penalties assessed 

14 under subsection (g). 

15 ‘‘(3) USE OF FUNDS.—Amounts in the Fund 

16 and available pursuant to an appropriations Act 

17 shall be expended by the President to further the 

18 goals described in subsection (e). 

19 ‘‘(4) INVESTMENT.—The Secretary of the 

20 Treasury shall invest such amounts of the Fund as 

21 such Secretary determines are not required to meet 

22 current withdrawals from the Fund. 

23 ‘‘(i) ADDITIONAL LEAD TIME.—If the Administrator 

24 finds that providing one or two years of additional lead25 time for emissions reductions beyond the 2009, 2010, and 

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1 2011 deadlines specified in section 701(1), 701(2) or 

2 706(a) would substantially reduce compliance costs, the 

3 Administrator may extend, by rule, any of the compliance 

4 deadlines for emissions reductions that fall in 2009, 2010, 

5 or 2011 by one or two additional years. If the Adminis6 trator promulgates such an extension, the same extension 

7 may also apply to the deadline for allowance distribution 

8 specified in section 704(d)(1)(B)(ii). Any such extension 

9 shall not affect the 2020 cap on emissions specified in sec10 tion 701(2). 

11 ‘‘(j) DEFINITION.—In this section, the term ‘covered 

12 entity’ means an entity covered by the cap under sub13 section (a)(1). 

14 ‘‘SEC. 705. ADDITIONAL AUTHORITY TO REGULATE GREEN15 HOUSE GAS EMISSIONS. 

16 ‘‘(a) ADDITIONAL REGULATIONS.—The regulations 

17 promulgated under section 703(a) may include additional 

18 regulations to reduce emissions of greenhouse gases from 

19 any source or sector, irrespective of whether the source 

20 or sector is described in section 704(b)(1). Regulations 

21 under this section may include emissions performance 

22 standards, efficiency performance standards, best manage23 ment practices, technology-based requirements, and other 

24 forms of requirements. 

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1 ‘‘(b) RELATION TO OTHER AUTHORITY.—The au2 thorizations under this title are in addition to the Admin3 istrator’s authority to regulate greenhouse gas emissions 

4 pursuant to other provisions of law in effect on the date 

5 of the enactment of the Safe Climate Act of 2007. 

6 ‘‘SEC. 706. GREENHOUSE GAS EMISSIONS STANDARDS FOR 

7 MOTOR VEHICLES. 

8 ‘‘(a) IN GENERAL.—The regulations promulgated 

9 under section 703(a) shall include regulations under sec10 tion 202 setting standards for greenhouse gas emissions 

11 from motor vehicles. These standards shall reduce such 

12 emissions at least as quickly and at least as much (on an 

13 average vehicle basis) as the standards adopted by the 

14 California Air Resources Board at its September 23–24, 

15 2004 hearing (California Code of Regulations, title 13, 

16 sec. 1961.1). 

17 ‘‘(b) REVISION OF STANDARDS.—Not later than Jan18 uary 1, 2014, and every 5 years thereafter, the Adminis19 trator shall promulgate regulations revising such stand20 ards to further reduce greenhouse gas emissions from 

21 motor vehicles, taking into account the reductions needed 

22 to achieve the emission reduction targets promulgated 

23 pursuant to section 701, as well as the technological feasi24 bility of achieving tighter standards of various 

25 stringencies. 

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1 ‘‘SEC. 707. SAVINGS CLAUSE. 

2 ‘‘Nothing in this title shall be interpreted to preempt 

3 or limit State actions to address climate change. 

4 ‘‘SEC. 708. DEFINITIONS. 

5 ‘‘In this title: 

6 ‘‘(1) CARBON DIOXIDE EQUIVALENT.—The 

7 term ‘carbon dioxide equivalent’ means the quantity 

8 of greenhouse gas that makes the same contribution 

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

10 as determined by the Administrator, taking into ac11 count the global warming potentials published by the 

12 Intergovernmental Panel on Climate Change. 

13 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 

14 gas’ means— 

15 ‘‘(A) carbon dioxide; 

16 ‘‘(B) methane; 

17 ‘‘(C) nitrous oxide; 

18 ‘‘(D) hydrofluorocarbons; 

19 ‘‘(E) perfluorocarbons; 

20 ‘‘(F) sulfur hexafluoride; or 

21 ‘‘(G) any other anthropogenically-emitted 

22 gas that is determined by the Administrator, 

23 after notice and comment, to contribute to glob24 al warming to a non-negligible degree. 

25 ‘‘(3) UNITED STATES GREENHOUSE GAS EMIS26 SIONS.—The term ‘United States greenhouse gas 

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1 emissions’ means the total quantity of greenhouse 

2 gas emissions calculated by the Administrator on an 

3 annual basis and reported to the United Nations 

4 Framework Convention on Climate Change Secre5 tariat.’’. 

6 SEC. 4. NATIONAL RENEWABLE ENERGY STANDARD. 

7 Title VI of the Public Utility Regulatory Policies Act 

8 of 1978 (16 U.S.C. 824a–4 et seq.) is amended by adding 

9 at the end the following: 

10 ‘‘SEC. 610. NATIONAL RENEWABLE ENERGY STANDARD. 

11 ‘‘(a) IN GENERAL.—The Secretary shall promulgate 

12 regulations requiring that— 

13 ‘‘(1) beginning in calendar year 2010, the per14 centage of electric energy generated from renewable 

15 sources that is sold at the retail level in the United 

16 States shall increase each year; and 

17 ‘‘(2) in calendar year 2020 and each subse18 quent calendar year, such percentage shall be not 

19 less than 20 percent of the total electricity sold at 

20 the retail level in the United States. 

21 ‘‘(b) CONSULTATION.—The Secretary shall carry out 

22 this section in consultation with the Administrator of the 

23 Environmental Protection Agency. 

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1 ‘‘(c) SUBSEQUENT INCREASES.—Upon petition or 

2 upon the Secretary’s own initiative, the Secretary may in3 crease the percentage required by subsection (a)(2). 

4 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec5 tion shall be construed to preempt or limit State actions 

6 to enhance renewable energy generation or energy effi7 ciency.’’. 

8 SEC. 5. NATIONAL ENERGY EFFICIENCY STANDARD. 

9 Title VI of the Public Utility Regulatory Policies Act 

10 of 1978 (16 U.S.C. 824a–4 et seq.), as amended by sec11 tion 4 of this Act, is amended by adding at the end the 

12 following: 

13 ‘‘SEC. 611. NATIONAL ENERGY EFFICIENCY STANDARD. 

14 ‘‘(a) IN GENERAL.—The Secretary shall promulgate 

15 regulations in accordance with this section setting end16 user savings targets for retail electric-energy and natural 

17 gas suppliers. 

18 ‘‘(b) CONSULTATION.—The Secretary shall carry out 

19 this section in consultation with the Administrator of the 

20 Environmental Protection Agency. 

21 ‘‘(c) REQUIREMENTS.—With respect to targets under 

22 subsection (a): 

23 ‘‘(1) The targets shall require each supplier to 

24 secure annual savings of a set percentage of the sup25 plier’s most recent year’s sales to retail customers. 

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1 ‘‘(2) The savings shall be achieved through end2 use efficiency improvements at customer facilities. 

3 ‘‘(3) The targets shall increase gradually from 

4 0.25 percent of sales in 2010 to 1 percent of sales 

5 in 2012 and each year thereafter through 2020. 

6 ‘‘(4) The targets are cumulative. Each year’s 

7 savings shall be achieved in addition to the previous 

8 years’ savings. 

9 ‘‘(d) REQUIRED PERCENTAGES AFTER 2020.—The 

10 Secretary may, upon petition or upon the Secretary’s own 

11 initiative, increase the required percentage of end-user 

12 savings for years after 2020. 

13 ‘‘(e) MARKET-BASED TRADING SYSTEM.—The Sec14 retary shall allow suppliers to achieve the targets under 

15 subsection (a) through a market-based trading system. 

16 ‘‘(f) RULE OF CONSTRUCTION.—Nothing in this sec17 tion shall be construed to preempt or limit State actions 

18 to enhance renewable energy generation or energy effi19 ciency.’’. 

Æ 

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