II 

108TH CONGRESS 

1ST SESSION S. 17

To initiate responsible Federal actions that will reduce the risks from global 

warming and climate change to the economy, the environment, and 

quality of life, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 7, 2003

Mr. DASCHLE (for himself, Mr. JEFFORDS, Mrs. FEINSTEIN, Mr. AKAKA, Mr. 

BIDEN, Mrs. CLINTON, Mr. CORZINE, Mr. DAYTON, Mr. DODD, Mr. 

KENNEDY, Mr. LIEBERMAN, Mr. LEAHY, Mrs. MURRAY, Mr. SCHUMER, 

Mr. LAUTENBERG, and Mr. REID) introduced the following bill; which 

was read twice and referred to the Committee on Environment and Public 

Works 

A BILL

To initiate responsible Federal actions that will reduce the 

risks from global warming and climate change to the 

economy, the environment, and quality of life, 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 ‘‘Global Climate Security Act of 2003’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Convention. 

TITLE I—SENSE OF THE SENATE ON CLIMATE CHANGE ACTION 

Sec. 101. Sense of the Senate on climate change action. 

TITLE II—NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY 

AND REGISTRY 

Sec. 201. Short title. 

Sec. 202. Findings and purpose. 

Sec. 203. Greenhouse gas emissions. 

TITLE III—UNITED STATES RE-ENGAGEMENT IN INTERNATIONAL 

EFFORTS TO REDUCE GREENHOUSE GAS EMISSIONS 

Sec. 301. United States re-engagement in international efforts to reduce greenhouse gas emissions. 

TITLE IV—RIO AGREEMENT COMMISSION 

Sec. 401. Short title. 

Sec. 402. Findings. 

Sec. 403. Definitions. 

Sec. 404. Establishment of Commission. 

Sec. 405. Duties. 

Sec. 406. Powers. 

Sec. 407. Commission personnel matters. 

Sec. 408. Plan for minimizing impacts of climate change. 

Sec. 409. Authorization of appropriations. 

Sec. 410. Termination of Commission. 

TITLE V—MISCELLANEOUS 

Sec. 501. National assessment of climate change impacts. 

Sec. 502. Review of emission reduction policies and measures. 

Sec. 503. Climate change in environmental impact statements. 

Sec. 504. Federal Government greenhouse gas emissions goal. 

Sec. 505. Corporate environmental disclosure of climate change risks. 

Sec. 506. Methodology for determining greenhouse gas emissions from imports; 

review of trade and innovation effects. 

Sec. 507. Grants for reduction of greenhouse gas emissions. 

Sec. 508. Report on modifications to revenue statutes.

3 SEC. 2. DEFINITION OF CONVENTION. 

4 In this Act, the term ‘‘Convention’’ means the United 

5 Nations Framework Convention on Climate Change, done 

6 at New York on May 9, 1992. 
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1 TITLE I—SENSE OF THE SENATE 

2 ON CLIMATE CHANGE ACTION 

3 SEC. 101. SENSE OF THE SENATE ON CLIMATE CHANGE AC4 TION. 

5 (a) FINDINGS.—Based on the scientific evidence and 

6 the advice and conclusions of the National Academy of 

7 Sciences, the Intergovernmental Panel on Climate Change, 

8 and the National Assessment of the Potential Con9 sequences of Climate Variability and Change prepared 

10 under the Global Change Research Act of 1990 (15 U.S.C. 

11 2921 et seq.), Congress finds that the many risks to the 

12 United States and the world from global warming and cli13 mate change are substantial and require immediate atten14 tion. 

15 (b) SENSE OF THE SENATE.—It is the sense of the 

16 Senate that—

17 (1) the President and Congress should make re18 ducing and preparing for the risks of global climate 

19 change a higher priority; 

20 (2) the President should reorient the recently 

21 announced climate research plan away from a focus 

22 on whether climate change is occurring toward ac23 tively achieving the commitments of the United 

24 States under the Convention; 
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1 (3) such a plan should gather adequate infor2 mation on policies and strategies that the United 

3 States should embrace—

4 (A) to expeditiously and most cost-effec5 tively reduce greenhouse gas emissions; 

6 (B) to limit the adverse property, eco7 nomic, food supply, ecosystem, and public 

8 health impacts of global warming and climate 

9 change; 

10 (C) to reduce the uncertainty associated 

11 with those negative impacts and the timing of 

12 those negative impacts; and 

13 (D) to develop an early warning system of 

14 biological and ecological indicators that will pro15 vide sufficient advance notice of catastrophic or 

16 dramatic climate system alterations so that de17 veloped and developing countries can prepare 

18 for and respond to regional, national, and local 

19 disasters; 

20 (4) the President should resume support for, 

21 and Congress should pass, legislation that will re22 quire reductions in carbon dioxide, a major green23 house gas, and other damaging pollutants emitted by 

24 electric power plants; and 
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1 (5) as largest emitter of greenhouse gases in 

2 the world, the United States should be the world 

3 leader in—

4 (A) creating and promoting emission-re5 ducing technologies and clean energy sources; 

6 and 

7 (B) funding domestic and international 

8 programs and projects to reduce emissions. 

9 TITLE II—NATIONAL GREEN10 HOUSE GAS EMISSIONS IN11 VENTORY AND REGISTRY 

12 SEC. 201. SHORT TITLE. 

13 This title may be cited as the ‘‘National Greenhouse 

14 Gas Emissions Inventory and Registry Act of 2003’’. 

15 SEC. 202. FINDINGS AND PURPOSE. 

16 (a) FINDINGS.—Congress finds that—

17 (1) human activities have caused rapid in18 creases in atmospheric concentrations of carbon di19 oxide and other greenhouse gases in the last century; 

20 (2) according to the Intergovernmental Panel 

21 on Climate Change and the National Research 

22 Council—

23 (A) the Earth has warmed in the last cen24 tury; and
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1 (B) the majority of the observed warming 

2 is attributable to human activities; 

3 (3) despite the fact that many uncertainties in 

4 climate science remain, the potential impacts from 

5 human-induced climate change pose a substantial 

6 risk that should be managed in a responsible man7 ner; and 

8 (4) to begin to manage climate change risks, 

9 public and private entities will need a comprehen10 sive, accurate inventory, registry, and information 

11 system of the sources and quantities of United 

12 States greenhouse gas emissions. 

13 (b) PURPOSE.—The purpose of this title is to estab14 lish a mandatory greenhouse gas inventory, registry, and 

15 information system that—

16 (1) is complete, consistent, transparent, and ac17 curate; 

18 (2) will create accurate data that can be used 

19 by public and private entities to design efficient and 

20 effective greenhouse gas emission reduction strate21 gies; 

22 (3) will encourage greenhouse gas emission re23 ductions; and 

24 (4) can be used to establish a baseline in the 

25 event of any future greenhouse gas emission reduc-
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1 tion requirements affecting major emitters in the 

2 United States. 

3 SEC. 203. GREENHOUSE GAS EMISSIONS. 

4 The Clean Air Act (42 U.S.C. 1701 et seq.) is amend5 ed by adding at the end the following: 

6 ‘‘TITLE VII—GREENHOUSE GAS 

7 EMISSIONS 

8 ‘‘SEC. 701. DEFINITIONS. 

9 ‘‘In this title: 

10 ‘‘(1) COVERED ENTITY.—The term ‘covered en11 tity’ means an entity that emits more than a thresh12 old quantity of greenhouse gas emissions. 

13 ‘‘(2) DIRECT EMISSIONS.—The term ‘direct 

14 emissions’ means greenhouse gas emissions from a 

15 source that is owned or controlled by an entity. 

16 ‘‘(3) ENTITY.—The term ‘entity’ includes a 

17 firm, a corporation, an association, a partnership, 

18 and a Federal agency. 

19 ‘‘(4) GREENHOUSE GAS.—The term ‘greenhouse 

20 gas’ means—

21 ‘‘(A) carbon dioxide; 

22 ‘‘(B) methane; 

23 ‘‘(C) nitrous oxide; 

24 ‘‘(D) hydrofluorocarbons; 

25 ‘‘(E) perfluorocarbons; and 
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1 ‘‘(F) sulfur hexafluoride. 

2 ‘‘(5) GREENHOUSE GAS EMISSIONS.—The term 

3 ‘greenhouse gas emissions’ means emissions of a 

4 greenhouse gas, including—

5 ‘‘(A) stationary combustion source emis6 sions, which are emitted as a result of combus7 tion of fuels in stationary equipment such as 

8 boilers, furnaces, burners, turbines, heaters, in9 cinerators, engines, flares, and other similar 

10 sources; 

11 ‘‘(B) process emissions, which consist of 

12 emissions from chemical or physical processes 

13 other than combustion; 

14 ‘‘(C) fugitive emissions, which consist of 

15 intentional and unintentional emissions from—

16 ‘‘(i) equipment leaks such as joints, 

17 seals, packing, and gaskets; and 

18 ‘‘(ii) piles, pits, cooling towers, and 

19 other similar sources; and 

20 ‘‘(D) mobile source emissions, which are 

21 emitted as a result of combustion of fuels in 

22 transportation equipment such as automobiles, 

23 trucks, trains, airplanes, and vessels. 

24 ‘‘(6) GREENHOUSE GAS EMISSIONS RECORD.—

25 The term ‘greenhouse gas emissions record’ means 
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1 all of the historical greenhouse gas emissions and 

2 project reduction data submitted by an entity under 

3 this title, including any adjustments to such data 

4 under section 704(c). 

5 ‘‘(7) GREENHOUSE GAS REPORT.—The term 

6 ‘greenhouse gas report’ means an annual list of the 

7 greenhouse gas emissions of an entity and the 

8 sources of those emissions. 

9 ‘‘(8) INDIRECT EMISSIONS.—The term ‘indirect 

10 emissions’ means greenhouse gas emissions that are 

11 a consequence of the activities of an entity but that 

12 are emitted from sources owned or controlled by an13 other entity. 

14 ‘‘(9) NATIONAL GREENHOUSE GAS EMISSIONS

15 INFORMATION SYSTEM.—The term ‘national green16 house gas emissions information system’ means the 

17 information system established under section 702(a). 

18 ‘‘(10) NATIONAL GREENHOUSE GAS EMISSIONS

19 INVENTORY.—The term ‘national greenhouse gas 

20 emissions inventory’ means the national inventory of 

21 greenhouse gas emissions established under section 

22 705. 

23 ‘‘(11) NATIONAL GREENHOUSE GAS REG24 ISTRY.—The term ‘national greenhouse gas registry’
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1 means the national greenhouse gas registry estab2 lished under section 703(a). 

3 ‘‘(12) PROJECT REDUCTION.—The term 

4 ‘project reduction’ means—

5 ‘‘(A) a greenhouse gas emission reduction 

6 achieved by carrying out a greenhouse gas 

7 emission reduction project; and 

8 ‘‘(B) sequestration achieved by carrying 

9 out a sequestration project. 

10 ‘‘(13) REPORTING ENTITY.—The term ‘report11 ing entity’ means an entity that reports to the Ad12 ministrator under subsection (a) or (b) of section 

13 704. 

14 ‘‘(14) SEQUESTRATION.—The term ‘sequestra15 tion’ means the long-term separation, isolation, or 

16 removal of greenhouse gases from the atmosphere, 

17 including through a biological or geologic method 

18 such as reforestation or an underground reservoir. 

19 ‘‘(15) THRESHOLD QUANTITY.—The term 

20 ‘threshold quantity’ means a threshold quantity for 

21 mandatory greenhouse gas reporting established by 

22 the Administrator under section 704(a)(3). 

23 ‘‘(16) VERIFICATION.—The term ‘verification’ 

24 means the objective and independent assessment of 

25 whether a greenhouse gas report submitted by a re-
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1 porting entity accurately reflects the greenhouse gas 

2 impact of the reporting entity. 

3 ‘‘SEC. 702. NATIONAL GREENHOUSE GAS EMISSIONS INFOR4 MATION SYSTEM. 

5 ‘‘(a) ESTABLISHMENT.—In consultation with the 

6 Secretary of Commerce, the Secretary of Agriculture, the 

7 Secretary of Energy, States, the private sector, and non8 governmental organizations concerned with establishing 

9 standards for reporting of greenhouse gas emissions, the 

10 Administrator shall establish and administer a national 

11 greenhouse gas emissions information system to collect in12 formation reported under section 704(a). 

13 ‘‘(b) SUBMISSION TO CONGRESS OF DRAFT DE14 SIGN.—Not later than 180 days after the date of enact15 ment of this title, the Administrator shall submit to Con16 gress a draft design of the national greenhouse gas emis17 sions information system. 

18 ‘‘(c) AVAILABILITY OF DATA TO THE PUBLIC.—The 

19 Administrator shall publish all information in the national 

20 greenhouse gas emissions information system through the 

21 website of the Environmental Protection Agency, except 

22 in any case in which publishing the information would re23 veal a trade secret or disclose information vital to national 

24 security. 
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1 ‘‘(d) RELATIONSHIP TO OTHER GREENHOUSE GAS

2 REGISTRIES.—To the extent practicable, the Adminis3 trator shall ensure coordination between the national 

4 greenhouse gas emissions information system and existing 

5 and developing Federal, regional, and State greenhouse 

6 gas registries. 

7 ‘‘(e) INTEGRATION WITH OTHER ENVIRONMENTAL

8 INFORMATION.—To the extent practicable, the Adminis9 trator shall integrate information in the national green10 house gas emissions information system with other envi11 ronmental information managed by the Administrator. 

12 ‘‘SEC. 703. NATIONAL GREENHOUSE GAS REGISTRY. 

13 ‘‘(a) ESTABLISHMENT.—In consultation with the 

14 Secretary of Commerce, the Secretary of Agriculture, the 

15 Secretary of Energy, States, the private sector, and non16 governmental organizations concerned with establishing 

17 standards for reporting of greenhouse gas emissions, the 

18 Administrator shall establish and administer a national 

19 greenhouse gas registry to collect information reported 

20 under section 704(b). 

21 ‘‘(b) AVAILABILITY OF DATA TO THE PUBLIC.—The 

22 Administrator shall publish all information in the national 

23 greenhouse gas registry through the website of the Envi24 ronmental Protection Agency, except in any case in which 
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1 publishing the information would reveal a trade secret or 

2 disclose information vital to national security. 

3 ‘‘(c) RELATIONSHIP TO OTHER GREENHOUSE GAS

4 REGISTRIES.—To the maximum extent feasible and prac5 ticable, the Administrator shall ensure coordination be6 tween the national greenhouse gas registry and existing 

7 and developing Federal, regional, and State greenhouse 

8 gas registries. 

9 ‘‘(d) INTEGRATION WITH OTHER ENVIRONMENTAL

10 INFORMATION.—To the maximum extent practicable, the 

11 Administrator shall integrate all information in the na12 tional greenhouse gas registry with other environmental 

13 information collected by the Administrator. 

14 ‘‘SEC. 704. REPORTING. 

15 ‘‘(a) MANDATORY REPORTING TO NATIONAL GREEN16 HOUSE GAS EMISSIONS INFORMATION SYSTEM.—

17 ‘‘(1) INITIAL REPORTING REQUIREMENTS.—

18 ‘‘(A) IN GENERAL.—Not later than April 

19 30, 2004, in accordance with this paragraph 

20 and the regulations promulgated under section 

21 706(e)(1), each covered entity shall submit to 

22 the Administrator, for inclusion in the national 

23 greenhouse gas emissions information system, 

24 the greenhouse gas report of the covered entity 

25 with respect to—
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1 ‘‘(i) calendar year 2003; and 

2 ‘‘(ii) each greenhouse gas emitted by 

3 the covered entity in an amount that ex4 ceeds the applicable threshold quantity. 

5 ‘‘(B) REQUIRED ELEMENTS.—Each green6 house gas report submitted under subparagraph 

7 (A)—

8 ‘‘(i) shall include estimates of direct 

9 stationary combustion source emissions; 

10 ‘‘(ii) shall express greenhouse gas 

11 emissions in metric tons of the carbon di12 oxide equivalent of each greenhouse gas 

13 emitted; 

14 ‘‘(iii) shall specify the sources of 

15 greenhouse gas emissions that are included 

16 in the greenhouse gas report; 

17 ‘‘(iv) shall be reported on an entity18 wide basis and on a facility-wide basis; and 

19 ‘‘(v) to the maximum extent prac20 ticable, shall be reported electronically to 

21 the Administrator in such form as the Ad22 ministrator may require. 

23 ‘‘(C) METHOD OF REPORTING OF ENTITY24 WIDE EMISSIONS.—Under subparagraph 

25 (B)(iv), entity-wide emissions shall be reported
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1 on the bases of financial control and equity 

2 share in a manner consistent with the financial 

3 reporting practices of the covered entity. 

4 ‘‘(2) FINAL REPORTING REQUIREMENTS.—

5 ‘‘(A) IN GENERAL.—Not later than April 

6 30, 2005, and each April 30 thereafter (except 

7 as provided in subparagraph (B)(vii)), in ac8 cordance with this paragraph and the regula9 tions promulgated under section 706(e)(2), each 

10 covered entity shall submit to the Administrator 

11 the greenhouse gas report of the covered entity 

12 with respect to—

13 ‘‘(i) the preceding calendar year; and 

14 ‘‘(ii) each greenhouse gas emitted by 

15 the covered entity in an amount that ex16 ceeds the applicable threshold quantity. 

17 ‘‘(B) REQUIRED ELEMENTS.—Each green18 house gas report submitted under subparagraph 

19 (A) shall include—

20 ‘‘(i) the required elements specified in 

21 paragraph (1); 

22 ‘‘(ii) estimates of indirect emissions 

23 from imported electricity, heat, and steam; 

24 ‘‘(iii) estimates of process emissions 

25 described in section 701(5)(B); 
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1 ‘‘(iv) estimates of fugitive emissions 

2 described in section 701(5)(C); 

3 ‘‘(v) estimates of mobile source emis4 sions described in section 701(5)(D), in 

5 such form as the Administrator may re6 quire; 

7 ‘‘(vi) in the case of a covered entity 

8 that is a forest product entity, estimates of 

9 direct stationary source emissions, includ10 ing emissions resulting from combustion of 

11 biomass; 

12 ‘‘(vii) in the case of a covered entity 

13 that owns more than 250,000 acres of 

14 timberland, estimates, by State, of the tim15 ber and carbon stocks of the covered enti16 ty, which estimates shall be updated every 

17 5 years; and 

18 ‘‘(viii) a description of any adjust19 ments to the greenhouse gas emissions 

20 record of the covered entity under sub21 section (c). 

22 ‘‘(3) ESTABLISHMENT OF THRESHOLD QUAN23 TITIES.—For the purpose of reporting under this 

24 subsection, the Administrator shall establish thresh25 old quantities of emissions for each combination of 
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1 a source and a greenhouse gas that is subject to the 

2 mandatory reporting requirements under this sub3 section. 

4 ‘‘(b) VOLUNTARY REPORTING TO NATIONAL GREEN5 HOUSE GAS REGISTRY.—

6 ‘‘(1) IN GENERAL.—Not later than April 30, 

7 2004, and each April 30 thereafter, in accordance 

8 with this subsection and the regulations promulgated 

9 under section 706(f), an entity may voluntarily re10 port to the Administrator, for inclusion in the na11 tional greenhouse gas registry, with respect to the 

12 preceding calendar year and any greenhouse gas 

13 emitted by the entity—

14 ‘‘(A) project reductions; 

15 ‘‘(B) transfers of project reductions to and 

16 from any other entity; 

17 ‘‘(C) project reductions and transfers of 

18 project reductions outside the United States; 

19 ‘‘(D) indirect emissions that are not re20 quired to be reported under subsection 

21 (a)(2)(B)(ii) (such as product transport, waste 

22 disposal, product substitution, travel, and em23 ployee commuting); and 

24 ‘‘(E) product use phase emissions. 
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1 ‘‘(2) TYPES OF ACTIVITIES.—Under paragraph 

2 (1), an entity may report activities that reduce 

3 greenhouse gas emissions or sequester a greenhouse 

4 gas, including—

5 ‘‘(A) fuel switching; 

6 ‘‘(B) energy efficiency improvements; 

7 ‘‘(C) use of renewable energy; 

8 ‘‘(D) use of combined heat and power sys9 tems; 

10 ‘‘(E) management of cropland, grassland, 

11 and grazing land; 

12 ‘‘(F) forestry activities that increase car13 bon stocks; 

14 ‘‘(G) carbon capture and storage; 

15 ‘‘(H) methane recovery; and 

16 ‘‘(I) carbon offset investments. 

17 ‘‘(c) ADJUSTMENT FACTORS.—

18 ‘‘(1) IN GENERAL.—Each reporting entity shall 

19 adjust the greenhouse gas emissions record of the 

20 reporting entity in accordance with this subsection. 

21 ‘‘(2) SIGNIFICANT STRUCTURAL CHANGES.—

22 ‘‘(A) IN GENERAL.—A reporting entity 

23 that experiences a significant structural change 

24 in the organization of the reporting entity (such 

25 as a merger, major acquisition, or divestiture) 
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1 shall adjust its greenhouse gas emissions record 

2 for preceding years so as to maintain year-to3 year comparability. 

4 ‘‘(B) MID-YEAR CHANGES.—In the case of 

5 a reporting entity that experiences a significant 

6 structural change described in subparagraph 

7 (A) during the middle of a year, the greenhouse 

8 gas emissions record of the reporting entity for 

9 preceding years shall be adjusted on a pro-rata 

10 basis. 

11 ‘‘(3) CALCULATION CHANGES AND ERRORS.—

12 The greenhouse gas emissions record of a reporting 

13 entity for preceding years shall be adjusted for—

14 ‘‘(A) changes in calculation methodologies; 

15 or 

16 ‘‘(B) errors that significantly affect the 

17 quantity of greenhouse gases in the greenhouse 

18 gas emissions record. 

19 ‘‘(4) ORGANIZATIONAL GROWTH OR DECLINE.—

20 The greenhouse gas emissions record of a reporting 

21 entity for preceding years shall not be adjusted for 

22 any organizational growth or decline of the reporting 

23 entity such as—

24 ‘‘(A) an increase or decrease in production 

25 output;
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1 ‘‘(B) a change in product mix; 

2 ‘‘(C) a plant closure; and 

3 ‘‘(D) the opening of a new plant. 

4 ‘‘(5) EXPLANATIONS OF ADJUSTMENTS.—A re5 porting entity shall explain, in a statement included 

6 in the greenhouse gas report of the reporting entity 

7 for a year—

8 ‘‘(A) any significant adjustment in the 

9 greenhouse gas emissions record of the report10 ing entity; and 

11 ‘‘(B) any significant change between the 

12 greenhouse gas emissions record for the pre13 ceding year and the greenhouse gas emissions 

14 reported for the current year. 

15 ‘‘(d) QUANTIFICATION AND VERIFICATION PROTO16 COLS AND TOOLS.—

17 ‘‘(1) IN GENERAL.—The Administrator and the 

18 Secretary of Commerce, the Secretary of Agri19 culture, and the Secretary of Energy shall jointly 

20 work with the States, the private sector, and non21 governmental organizations to develop—

22 ‘‘(A) protocols for quantification and 

23 verification of greenhouse gas emissions; 

24 ‘‘(B) electronic methods for quantification 

25 and reporting of greenhouse gas emissions; and 
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1 ‘‘(C) greenhouse gas accounting and re2 porting standards. 

3 ‘‘(2) BEST PRACTICES.—The protocols and 

4 methods developed under paragraph (1) shall con5 form, to the maximum extent practicable, to the best 

6 practice protocols that have the greatest support of 

7 experts in the field. 

8 ‘‘(3) INCORPORATION INTO REGULATIONS.—

9 The Administrator shall incorporate the protocols 

10 developed under paragraph (1)(A) into the regula11 tions promulgated under section 706. 

12 ‘‘(4) OUTREACH PROGRAM.—The Adminis13 trator, the Secretary of Commerce, the Secretary of 

14 Agriculture, and the Secretary of Energy shall joint15 ly conduct an outreach program to provide informa16 tion to all reporting entities and the public on the 

17 protocols and methods developed under this sub18 section. 

19 ‘‘(e) VERIFICATION.—

20 ‘‘(1) PROVISION OF INFORMATION BY REPORT21 ING ENTITIES.—Each reporting entity shall provide 

22 information sufficient for the Administrator to 

23 verify, in accordance with greenhouse gas accounting 

24 and reporting standards developed under subsection 
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1 (d)(1)(C), that the greenhouse gas report of the re2 porting entity—

3 ‘‘(A) has been accurately reported; and 

4 ‘‘(B) in the case of each project reduction, 

5 represents actual reductions in greenhouse gas 

6 emissions or actual increases in net sequestra7 tion, as applicable. 

8 ‘‘(2) INDEPENDENT THIRD-PARTY

9 VERIFICATION.—A reporting entity may—

10 ‘‘(A) obtain independent third-party 

11 verification; and 

12 ‘‘(B) present the results of the third-party 

13 verification to the Administrator for consider14 ation by the Administrator in carrying out 

15 paragraph (1). 

16 ‘‘(f) ENFORCEMENT.—The Administrator may bring 

17 a civil action in United States district court against a cov18 ered entity that fails to comply with subsection (a), or a 

19 regulation promulgated under section 706(e), to impose a 

20 civil penalty of not more than $25,000 for each day that 

21 the failure to comply continues. 
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1 ‘‘SEC. 705. NATIONAL GREENHOUSE GAS EMISSIONS INVEN2 TORY. 

3 ‘‘Not later than April 30, 2003, and each April 30 

4 thereafter, the Administrator shall publish a national 

5 greenhouse gas emissions inventory that includes—

6 ‘‘(1) comprehensive estimates of the quantity of 

7 United States greenhouse gas emissions for the sec8 ond preceding calendar year, including—

9 ‘‘(A) for each greenhouse gas, an estimate 

10 of the quantity of emissions contributed by each 

11 key source category; 

12 ‘‘(B) a detailed analysis of trends in the 

13 quantity, composition, and sources of United 

14 States greenhouse gas emissions; and 

15 ‘‘(C) a detailed explanation of the method16 ology used in developing the national green17 house gas emissions inventory; and 

18 ‘‘(2) a detailed analysis of the information re19 ported to the national greenhouse gas emissions in20 formation system and the national greenhouse gas 

21 registry. 

22 ‘‘SEC. 706. REGULATIONS. 

23 ‘‘(a) IN GENERAL.—The Administrator may promul24 gate such regulations as are necessary to carry out this 

25 title. 
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1 ‘‘(b) BEST PRACTICES.—In developing regulations 

2 under this section, the Administrator shall seek to leverage 

3 leading protocols for the measurement, accounting, report4 ing, and verification of greenhouse gas emissions. 

5 ‘‘(c) NATIONAL GREENHOUSE GAS EMISSIONS IN6 FORMATION SYSTEM.—Not later than January 31, 2004, 

7 the Administrator shall promulgate such regulations as 

8 are necessary to establish the national greenhouse gas 

9 emissions information system. 

10 ‘‘(d) NATIONAL GREENHOUSE GAS REGISTRY.—Not 

11 later than January 31, 2004, the Administrator shall pro12 mulgate such regulations as are necessary to establish the 

13 national greenhouse gas registry. 

14 ‘‘(e) MANDATORY REPORTING REQUIREMENTS.—

15 ‘‘(1) INITIAL REPORTING REQUIREMENTS.—Not 

16 later than January 31, 2004, the Administrator 

17 shall promulgate such regulations as are necessary 

18 to implement the initial mandatory reporting re19 quirements under section 704(a)(1). 

20 ‘‘(2) FINAL REPORTING REQUIREMENTS.—Not 

21 later than January 31, 2005, the Administrator 

22 shall promulgate such regulations as are necessary 

23 to implement the final mandatory reporting require24 ments under section 704(a)(2).
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1 ‘‘(f) VOLUNTARY REPORTING PROVISIONS.—Not 

2 later than January 31, 2004, the Administrator shall pro3 mulgate such regulations and issue such guidance as are 

4 necessary to implement the voluntary reporting provisions 

5 under section 704(b). 

6 ‘‘(g) ADJUSTMENT FACTORS.—Not later than Janu7 ary 31, 2004, the Administrator shall promulgate such 

8 regulations as are necessary to implement the adjustment 

9 factors under section 704(c).’’. 

10 TITLE III—UNITED STATES RE11 ENGAGEMENT IN INTER12 NATIONAL EFFORTS TO RE13 DUCE GREENHOUSE GAS 

14 EMISSIONS 

15 SEC. 301. UNITED STATES RE-ENGAGEMENT IN INTER16 NATIONAL EFFORTS TO REDUCE GREEN17 HOUSE GAS EMISSIONS. 

18 (a) FINDINGS.—Congress finds that—

19 (1) evidence continues to mount that increases 

20 in atmospheric concentrations of manmade green21 house gases are contributing to global climate 

22 change; 

23 (2) the Intergovernmental Panel on Climate 

24 Change has concluded that—
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1 (A) ‘‘there is new and stronger evidence 

2 that most of the warming observed over the last 

3 50 years is attributable to human activities’’; 

4 and 

5 (B) the Earth’s average temperature can 

6 be expected to rise between 2.5 and 10.4 de7 grees Fahrenheit in this century; 

8 (3) in 2001, the National Academy of Sciences 

9 confirmed the findings of the Panel, stating that—

10 (A) ‘‘the IPCC’s conclusion that most of 

11 the observed warming of the last 50 years is 

12 likely to have been due to the increase of green13 house gas concentrations accurately reflects the 

14 current thinking of the scientific community on 

15 this issue’’; and 

16 (B) ‘‘there is general agreement that the 

17 observed warming is real and particularly 

18 strong within the past twenty years’’; 

19 (4) the Panel has stated that, in the past 40 

20 years, the global average sea level has risen, the heat 

21 content of the ocean has increased, and snow cover 

22 and ice extent have decreased, resulting in the threat 

23 of inundation of low-lying island countries and coast24 al regions throughout the world; 
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1 (5) in October 2000, a United States Govern2 ment report found that global climate change may 

3 harm the United States by—

4 (A) altering crop yields; 

5 (B) causing entire ecosystems to dis6 appear; 

7 (C) accelerating the rise of sea levels; and 

8 (D) increasing the spread of tropical infec9 tious diseases; 

10 (6) in 1992, the United States ratified the Con11 vention, the ultimate objective of which is the ‘‘sta12 bilization of greenhouse gas concentrations in the at13 mosphere at a level that would prevent dangerous 

14 anthropogenic interference with the climate system. 

15 Such a level should be achieved within a time-frame 

16 sufficient to allow ecosystems to adapt naturally to 

17 climate change, to ensure that food production is not 

18 threatened and to enable economic development to 

19 proceed in a sustainable manner’’; 

20 (7) the Convention stated in part that the par21 ties to the Convention are to implement policies 

22 ‘‘with the aim of returning . . . to their 1990 levels 

23 these anthropogenic emissions of carbon dioxide and 

24 other greenhouse gases’’ under the principle that 

25 ‘‘[p]olicies and measures . . . should be appropriate 
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1 for the specific conditions of each Party and should 

2 be integrated with national development pro3 grammes, taking into account that economic develop4 ment is essential for adopting measures to address 

5 climate change’’; 

6 (8) there is a shared international responsibility 

7 to address the problem of climate change, since—

8 (A) industrial countries are the largest his9 toric and current emitters of greenhouse gases; 

10 and 

11 (B) the emissions of developing countries 

12 will significantly increase in the future; 

13 (9) the Convention further stated that—

14 (A) ‘‘developed country Parties should take 

15 the lead in combating climate change and the 

16 adverse effects thereof’’, as those countries are 

17 the largest historic and current emitters of 

18 greenhouse gases; and 

19 (B) ‘‘steps required to understand and ad20 dress climate change will be environmentally, 

21 socially and economically most effective if they 

22 are based on relevant scientific, technical and 

23 economic considerations and continually re-eval24 uated in the light of new findings in these 

25 areas’’; 
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1 (10)(A) Senate Resolution 98 of the 105th Con2 gress (which stated that developing countries must 

3 also be included in any future, binding climate 

4 change treaty and that such a treaty must not result 

5 in serious harm to the United States economy) 

6 should not cause the United States to abandon its 

7 shared responsibility to help reduce the risks and 

8 impacts of climate change; and 

9 (B) future international efforts in this regard 

10 should focus on recognizing the equitable respon11 sibilities for addressing climate change by all coun12 tries, including commitments by the largest devel13 oping country emitters in a future, binding climate 

14 change treaty; 

15 (11) it is the position of the United States that 

16 the United States will not interfere with the plans 

17 of any country that chooses to ratify and implement 

18 the Kyoto Protocol to the Convention; 

19 (12) American businesses need to know how 

20 governments worldwide will address the risks of cli21 mate change; and 

22 (13) the United States benefits from invest23 ments in the research, development, and deployment 

24 of a range of clean energy and efficiency tech25 nologies that can—
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1 (A) reduce the risks of climate change and 

2 the impacts of climate change; and 

3 (B) make the United States economy more 

4 productive, bolster energy security, create jobs, 

5 and protect the environment. 

6 (b) SENSE OF CONGRESS.—It is the sense of Con7 gress that the United States should demonstrate inter8 national leadership and responsibility in reducing the 

9 health, environmental, and economic risks posed by cli10 mate change by—

11 (1) taking responsible action to ensure signifi12 cant and meaningful reductions in emissions of 

13 greenhouse gases from all sectors of the economy; 

14 (2) creating flexible international and domestic 

15 mechanisms (including joint implementation, tech16 nology deployment, tradable credits for emissions re17 ductions, and carbon sequestration projects) that 

18 will reduce, avoid, and sequester greenhouse gas 

19 emissions; 

20 (3) complying with the commitments of the 

21 United States, including funding obligations, under 

22 the Convention; and 

23 (4) participating in international negotiations, 

24 including putting forward a proposal to the Con25 ference of the Parties to the Convention, with the 
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1 objective of securing United States participation in 

2 a future binding climate change treaty in a manner 

3 that—

4 (A) is consistent with the environmental 

5 objectives of the Convention; 

6 (B) protects the economic interests of the 

7 United States; and 

8 (C) recognizes the shared international re9 sponsibility for addressing climate change, in10 cluding participation by developing countries. 

11 TITLE IV—RIO AGREEMENT 

12 COMMISSION 

13 SEC. 401. SHORT TITLE. 

14 This title may be cited as the ‘‘Rio Agreement Com15 mission Establishment Act’’. 

16 SEC. 402. FINDINGS. 

17 Congress finds that—

18 (1) strong evidence of human-induced global cli19 mate change and warming continues to accumulate; 

20 (2) an overwhelming majority of the world’s sci21 entists believe that anthropogenic sources of green22 house gases are contributing to increasing con23 centrations of those gases in the atmosphere; 

24 (3) in 1992, the United States Senate ratified 

25 the Convention, which committed the country to 
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1 aiming to return greenhouse gas emissions in the 

2 United States, individually or jointly with other 

3 countries, to 1990 levels by 2000; 

4 (4) the United States is now more than 13 per5 cent above that target; 

6 (5) the United States should exercise strong 

7 leadership and expeditiously take reasonable and 

8 cost-effective steps to meet its commitment under 

9 the Convention; 

10 (6) the establishment of an independent com11 mission to advise Congress and the Federal Govern12 ment would—

13 (A) minimize the effects of partisan poli14 tics and help surmount institutional barriers re15 lating to meeting that commitment; and 

16 (B) allow the United States to make 

17 progress on meeting that commitment; and 

18 (7) the potential damage to the United States 

19 economy and national interests from the inability of 

20 critical infrastructure, food production, or natural 

21 systems to adapt quickly enough to climate varia22 bility or global warming warrants taking action now 

23 rather than waiting until the costs of that damage 

24 are exorbitant. 
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1 SEC. 403. DEFINITIONS. 

2 In this title: 

3 (1) COMMISSION.—The term ‘‘Commission’’ 

4 means the Commission to Implement the Rio Agree5 ment established by section 404. 

6 (2) COUNCIL.—The term ‘‘Council’’ means the 

7 Council on Environmental Quality. 

8 (3) SESSION DAY.—The term ‘‘session day’’ 

9 means a day on which both Houses of Congress are 

10 in session. 

11 SEC. 404. ESTABLISHMENT OF COMMISSION. 

12 (a) ESTABLISHMENT.—There is established a com13 mission to be known as the ‘‘Commission to Implement 

14 the Rio Agreement’’. 

15 (b) MEMBERSHIP.—

16 (1) COMPOSITION.—The Commission shall be 

17 composed of 11 members, of whom—

18 (A) 3 members shall be appointed by the 

19 President; 

20 (B) subject to paragraph (4), 4 members 

21 shall be appointed by the President pro tempore 

22 of the Senate, on the recommendation of the 

23 majority and minority leaders of the Senate; 

24 and 

25 (C) subject to paragraph (4), 4 members 

26 shall be appointed by the Speaker of the House 
34

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1 of Representatives, in consultation with the mi2 nority leader of the House of Representatives. 

3 (2) EXPERTISE.—A member of the Commission 

4 shall be an expert in a field related to—

5 (A) the science of assessing climate 

6 change; 

7 (B) the effects of climate change on the 

8 United States; or 

9 (C) the technological and economic tools 

10 necessary to reduce net greenhouse gas emis11 sions. 

12 (3) PROHIBITION ON FEDERAL GOVERNMENT

13 EMPLOYMENT.—A member of the Commission shall 

14 not be an employee of the Federal Government. 

15 (4) APPOINTMENTS.—

16 (A) IN GENERAL.—Except as provided in 

17 subparagraph (B), a member of the Commis18 sion shall be appointed by and with the advice 

19 and consent of the Senate. 

20 (B) ALTERNATIVE APPOINTMENT.—If the 

21 appointment and confirmation by the Senate of 

22 at least 7 members of the Commission is not 

23 completed by the date that is 45 session days 

24 after the date of enactment of this Act, the 

25 President shall, on that date, arrange for the
35

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1 National Academy of Sciences or the National 

2 Science Foundation to establish and operate the 

3 Commission and fulfill the statutory mandate of 

4 the Commission. 

5 (c) TERM; VACANCIES.—

6 (1) TERM.—A member shall be appointed for 

7 the life of the Commission. 

8 (2) VACANCIES.—A vacancy on the Commis9 sion—

10 (A) shall not affect the powers of the Com11 mission; and 

12 (B) shall be filled in the same manner as 

13 the original appointment was made. 

14 (d) INITIAL MEETING.—Not later than 30 days after 

15 the date on which 7 members of the Commission have been 

16 appointed under subsection (b) or the Commission is oth17 erwise established under subsection (b)(4)(B), the Com18 mission shall hold the initial meeting of the Commission. 

19 (e) MEETINGS.—The Commission shall meet at the 

20 call of the Chairperson. 

21 (f) QUORUM.—Seven members of the Commission 

22 shall constitute a quorum, but a lesser number of members 

23 may hold hearings. 
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1 (g) CHAIRPERSON AND VICE CHAIRPERSON.—The 

2 Commission shall select a Chairperson and Vice Chair3 person from among the members of the Commission. 

4 SEC. 405. DUTIES. 

5 (a) REVIEW AND REPORT.—

6 (1) REVIEW.—

7 (A) IN GENERAL.—The Commission shall 

8 review the measures that are necessary to re9 duce net greenhouse gas emissions in the 

10 United States, and to the maximum extent pos11 sible in the world, below the levels that would 

12 otherwise result in a doubling of concentrations 

13 of greenhouse gases in the atmosphere from 

14 1870 levels. 

15 (B) EMPHASIS.—The review under sub16 paragraph (A) shall emphasize the need for 

17 those countries, like the United States, that 

18 have contributed and will contribute most great19 ly to the elevated concentrations described in 

20 that subparagraph to take the greatest and 

21 swiftest steps to reduce emissions in the near 

22 term to avert a doubling described in that sub23 paragraph. 

24 (C) TYPES OF MEASURES.—The measures 

25 to be reviewed under subparagraph (A) shall in-
37

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1 clude participation in any global or domestic 

2 carbon trading system or other international in3 stitution established to achieve global carbon 

4 emission reductions. 

5 (2) RECOMMENDATIONS.—The Commission 

6 shall develop recommendations concerning—

7 (A) the measures described in paragraph 

8 (1)(A) that the Commission determines to be 

9 appropriate for implementation, giving pref10 erence to cost-effective and technologically fea11 sible measures that will—

12 (i) produce measurable net reductions 

13 in emissions described in paragraph 

14 (1)(A); and 

15 (ii) minimize any adverse impacts on 

16 the economy of the United States; and 

17 (B) the text of legislation that would be 

18 necessary to effectuate the measures. 

19 (3) REPORT.—

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

21 2004, the Commission shall submit to Congress 

22 a report that contains—

23 (i) a detailed statement of the find24 ings and conclusions of the Commission; 

25 and 
38

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1 (ii) the recommendations of the Com2 mission for such legislation (in specific leg3 islative language) and administrative ac4 tions as the Commission considers appro5 priate. 

6 (B) APPROVAL.—The report under sub7 paragraph (A) shall be approved by the Com8 mission by a majority vote of the members that 

9 have been appointed under section 404(b) as of 

10 the date of the vote. 

11 (b) BUDGET.—

12 (1) SUBMISSION TO CONGRESS.—Not later than 

13 30 days after the date of enactment of this Act, the 

14 Commission shall submit to Congress and the Presi15 dent a proposed budget for the Commission. 

16 (2) FUNDING.—The President shall provide, 

17 from funds available to Federal agencies, such sums 

18 as are necessary to carry out the duties of the Com19 mission until the date on which funds are made 

20 available under section 409. 

21 SEC. 406. POWERS. 

22 (a) HEARINGS.—The Commission may hold such 

23 hearings, sit and act at such times and places, take such 

24 testimony, and receive such evidence as the Commission 

25 considers advisable to carry out this title. 
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1 (b) INFORMATION FROM FEDERAL AGENCIES.—

2 (1) IN GENERAL.—The Commission may secure 

3 directly from a Federal agency such information as 

4 the Commission considers necessary to carry out this 

5 title. 

6 (2) PROVISION OF INFORMATION.—On request 

7 of the Chairperson of the Commission, the head of 

8 the agency shall provide the information to the Com9 mission. 

10 (3) COORDINATION BY COUNCIL ON ENVIRON11 MENTAL QUALITY.—The Chairman of the Council on 

12 Environmental Quality shall coordinate with the 

13 Commission in ensuring that Federal agencies are 

14 responsive in assisting the Commission in carrying 

15 out its duties under this title. 

16 (c) POSTAL SERVICES.—The Commission may use 

17 the United States mails in the same manner and under 

18 the same conditions as other agencies of the Federal Gov19 ernment. 

20 (d) GIFTS.—The Commission may accept, use, and 

21 dispose of gifts or donations of services or property. 

22 SEC. 407. COMMISSION PERSONNEL MATTERS. 

23 (a) COMPENSATION OF MEMBERS.—A member of the 

24 Commission shall be compensated at a rate equal to the 

25 daily equivalent of the annual rate of basic pay prescribed
40

•S 17 IS 

1 for level IV of the Executive Schedule under section 5315 

2 of title 5, United States Code, for each day (including 

3 travel time) during which the member is engaged in the 

4 performance of the duties of the Commission. 

5 (b) TRAVEL EXPENSES.—A member of the Commis6 sion shall be allowed travel expenses, including per diem 

7 in lieu of subsistence, at rates authorized for an employee 

8 of an agency under subchapter I of chapter 57 of title 

9 5, United States Code, while away from the home or reg10 ular place of business of the member in the performance 

11 of the duties of the Commission. 

12 (c) STAFF.—

13 (1) IN GENERAL.—The Chairperson of the 

14 Commission may, without regard to the civil service 

15 laws (including regulations), appoint and terminate 

16 an executive director and such other additional per17 sonnel as are necessary to enable the Commission to 

18 perform the duties of the Commission. 

19 (2) CONFIRMATION OF EXECUTIVE DIREC20 TOR.—The employment of an executive director shall 

21 be subject to confirmation by the Commission. 

22 (3) COMPENSATION.—

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), the Chairperson of the Com25 mission may fix the compensation of the execu-
41

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1 tive director and other personnel without regard 

2 to the provisions of chapter 51 and subchapter 

3 III of chapter 53 of title 5, United States Code, 

4 relating to classification of positions and Gen5 eral Schedule pay rates. 

6 (B) MAXIMUM RATE OF PAY.—The rate of 

7 pay for the executive director and other per8 sonnel may not exceed the rate payable for level 

9 V of the Executive Schedule under section 5316 

10 of title 5, United States Code. 

11 (d) DETAIL OF FEDERAL GOVERNMENT EMPLOY12 EES.—

13 (1) IN GENERAL.—An employee of the Federal 

14 Government may be detailed to the Commission 

15 without reimbursement. 

16 (2) CIVIL SERVICE STATUS.—The detail of the 

17 employee shall be without interruption or loss of civil 

18 service status or privilege. 

19 (e) PROCUREMENT OF TEMPORARY AND INTERMIT20 TENT SERVICES.—The Chairperson of the Commission 

21 may procure temporary and intermittent services in ac22 cordance with section 3109(b) of title 5, United States 

23 Code, at rates for individuals that do not exceed the daily 

24 equivalent of the annual rate of basic pay prescribed for 
42

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1 level V of the Executive Schedule under section 5316 of 

2 that title. 

3 SEC. 408. PLAN FOR MINIMIZING IMPACTS OF CLIMATE 

4 CHANGE. 

5 (a) IN GENERAL.—Not later than October 1, 2004, 

6 the Council on Environmental Quality shall develop and 

7 submit to Congress a plan for minimizing the risks associ8 ated with global warming and climate change to public 

9 health and safety, community infrastructure, private prop10 erty, biological diversity, ecosystems, and the food supply, 

11 as outlined in the national assessment submitted under 

12 section 501.

13 (b) REQUIRED ELEMENTS.—The plan shall—

14 (1) include specific legislative recommendations 

15 and program funding levels; and 

16 (2) emphasize strategies that would not signifi17 cantly diminish the quality of life in the United 

18 States. 

19 (c) CONSULTATION.—In developing the plan, the 

20 Council shall consult with—

21 (1) the Committee on Earth and Environmental 

22 Sciences established under section 102 of the Global 

23 Change Research Act of 1990 (15 U.S.C. 2932); 
43

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1 (2) participants in the United States Global 

2 Change Research Program established under section 

3 103 of that Act (15 U.S.C. 2933); 

4 (3) State, local, and tribal governments; 

5 (4) other appropriate Federal agencies; and 

6 (5) members of the public. 

7 SEC. 409. AUTHORIZATION OF APPROPRIATIONS. 

8 There are authorized to be appropriated to the Com9 mission and the Council such sums as are necessary to 

10 carry out this title for fiscal years 2003 through 2005, 

11 to remain available until expended. 

12 SEC. 410. TERMINATION OF COMMISSION. 

13 The Commission shall terminate 90 days after the 

14 date on which the Commission submits the report of the 

15 Commission under section 405(a)(3). 

16 TITLE V—MISCELLANEOUS 

17 SEC. 501. NATIONAL ASSESSMENT OF CLIMATE CHANGE IM18 PACTS. 

19 (a) IN GENERAL.—Not later than October 1, 2004, 

20 and the end of each 4-year period thereafter, the President 

21 shall submit to Congress an assessment of the potential 

22 negative economic, public health, and environmental im23 pacts on the United States associated with global warming 

24 and climate change. 
44

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1 (b) REQUIRED ELEMENTS.—The assessment under 

2 subsection (a) shall—

3 (1) project the possible and the likely effects on 

4 the various regions of the United States and sectors 

5 of the economy in 2020, 2050, and 2075, using the 

6 most probable atmospheric concentrations of green7 house gases based on existing emission trends; and 

8 (2) address the possible political, economic, and 

9 environmental concerns and challenges that may 

10 confront the United States because of negative im11 pacts associated with global warming and climate 

12 change in the United States elsewhere in the world. 

13 (c) CONSULTATION.—The assessment shall be con14 ducted in broad consultation with the States, local govern15 ments, academic institutions, industry, investors, insurers, 

16 environmental organizations, planners, infrastructure ex17 perts, the public health community, and other relevant en18 tities. 

19 SEC. 502. REVIEW OF EMISSION REDUCTION POLICIES AND 

20 MEASURES. 

21 (a) PUBLICATION.—Not later than March 1, 2004, 

22 and annually thereafter, the President shall publish, in ac23 cordance with the commitment of the United States under 

24 the Convention, a description of each policy, program, and 

25 other measure that the United States has adopted or im-
45

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1 plemented in the previous year that is aimed at reducing 

2 greenhouse gas emissions to 1990 levels in the United 

3 States. 

4 (b) REQUIRED ELEMENTS.—The publication under 

5 subsection (a) shall include—

6 (1)(A) an identification of each Federal pro7 gram designed to result in reductions in greenhouse 

8 gas emissions; and 

9 (B)(i) the level of funding for the Federal pro10 gram for the current fiscal year; and 

11 (ii) the level of funding requested for the Fed12 eral program for the following fiscal year in the 

13 budget of the United States Government submitted 

14 by the President for the fiscal year under section 

15 1105 of title 31, United States Code; and 

16 (2) an evaluation of the ability of each policy, 

17 program, and other measure referred to in sub18 section (a) to reduce effectively greenhouse gas emis19 sions in the short term and the long term. 

20 SEC. 503. CLIMATE CHANGE IN ENVIRONMENTAL IMPACT 

21 STATEMENTS. 

22 In any case in which a Federal agency prepares an 

23 environmental impact statement or similar analysis re24 quired under the National Environmental Policy Act of 
46

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1 1969 (42 U.S.C. 4321 et seq.), the Federal agency shall 

2 consider and evaluate—

3 (1) the impact that the Federal action or 

4 project necessitating the statement or analysis will 

5 have in terms of net changes in greenhouse gas 

6 emissions; and 

7 (2) how climate changes may affect the action 

8 or project in the short term and the long term. 

9 SEC. 504. FEDERAL GOVERNMENT GREENHOUSE GAS EMIS10 SIONS GOAL. 

11 (a) ACTIONS.—Not later than January 1, 2004, the 

12 President shall take such actions as are necessary, includ13 ing preparing and submitting to Congress any necessary 

14 statutory changes, to reduce the net greenhouse gas emis15 sions of the Federal Government to 1990 levels by 2013, 

16 including steps to procure—

17 (1) only highly energy-efficient products, serv18 ices, and facilities; 

19 (2) electricity generated from renewable 

20 sources; and 

21 (3) alternative fuel vehicles. 

22 (b) REPORT.—The President shall direct the appro23 priate Federal agencies to study and submit to Congress, 

24 not later than July 1, 2005, a report on the most cost25 effective policy options through which the Federal Govern-
47

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1 ment could reduce the net greenhouse gas emissions of 

2 the Federal Government to zero by 2025. 

3 SEC. 505. CORPORATE ENVIRONMENTAL DISCLOSURE OF 

4 CLIMATE CHANGE RISKS. 

5 (a) REGULATIONS BY SECURITIES AND EXCHANGE

6 COMMISSION.—Not later than 2 years after the date of 

7 enactment of this Act, the Securities and Exchange Com8 mission should promulgate regulations for the purposes of 

9 section 13 of the Securities Exchange Act of 1934 (15 

10 U.S.C. 78m) directing each issuer of securities under that 

11 Act to inform securities investors of the risks relating to—

12 (1) the financial exposure of the issuer due to 

13 the net greenhouse gas emissions of the issuer; and 

14 (2) the potential economic impacts of global 

15 warming on the interests of the issuer. 

16 (b) UNIFORM FORMAT FOR DISCLOSURE.—In car17 rying out subsection (a), the Securities and Exchange 

18 Commission should enter into an agreement with the Fi19 nancial Accountings Standards Board, or another appro20 priate voluntary standards setting organization, to develop 

21 a uniform format for disclosing to securities investors in22 formation on the risks described in subsection (a). 

23 (c) INTERIM INTERPRETIVE RELEASE.—

24 (1) IN GENERAL.—As soon as practicable after 

25 the date of enactment of this Act, the Securities and
48

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1 Exchange Commission should issue an interpretive 

2 release clarifying that under items 101 and 303 of 

3 Regulation S–K (as in effect on the date of enact4 ment of this Act)—

5 (A) the commitments of the United States 

6 to reduce emissions of greenhouse gases under 

7 the Convention are considered to be a material 

8 effect; and 

9 (B) global warming constitutes a known 

10 trend. 

11 (2) PERIOD OF EFFECTIVENESS.—The inter12 pretive release issued under paragraph (1) should re13 main in effect until the effective date of the final 

14 regulations promulgated under subsection (a). 

15 SEC. 506. METHODOLOGY FOR DETERMINING GREEN16 HOUSE GAS EMISSIONS FROM IMPORTS; RE17 VIEW OF TRADE AND INNOVATION EFFECTS. 

18 (a) METHODOLOGY.—

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

20 2005, the Secretary of Commerce, in consultation 

21 with the United States Trade Representative, the 

22 Secretary of the Treasury, the Secretary of Agri23 culture, the Secretary of Energy, and the Adminis24 trator of the Environmental Protection Agency, shall 

25 develop a methodology for determining the green-
49

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1 house gases emitted in the production and delivery 

2 of goods and services imported into the United 

3 States. 

4 (2) LEVEL OF SPECIFICITY.—The methodology 

5 developed under paragraph (1) shall be specific 

6 enough to provide a basis for the imposition of tar7 iffs or import fees in the event that the United 

8 States adopts a binding commitment to reduce 

9 greenhouse gas emissions and an exporting country 

10 does not adopt such a similar commitment, thereby 

11 creating a trade disadvantage for United States enti12 ties. 

13 (b) REVIEW.—Not later than June 1, 2004, and an14 nually thereafter, the Secretary of Commerce, in consulta15 tion with the United States Trade Representative, the Sec16 retary of the Treasury, the Secretary of Agriculture, the 

17 Secretary of Energy, and the Administrator of the Envi18 ronmental Protection Agency, shall review and report to 

19 Congress on the trade, economic, and technology innova20 tion effects of any failure on the part of the United States 

21 to adopt policies and measures that require or result in 

22 reductions in total greenhouse gas emissions in the United 

23 States consistent with the goals for the United States 

24 under the Convention. 
50

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1 SEC. 507. GRANTS FOR REDUCTION OF GREENHOUSE GAS 

2 EMISSIONS. 

3 (a) IN GENERAL.—The President, acting through the 

4 Secretary of Agriculture, the Secretary of Commerce, the 

5 Secretary of Energy, and the Administrator of the Envi6 ronmental Protection Agency, may provide grants to 

7 States or local governments for the purpose of—

8 (1) preparing, completing, or operating green9 house gas data collection, inventory, or trading sys10 tems; 

11 (2) implementing greenhouse gas emission re12 duction or sequestration projects, including pro13 grams conducted jointly with industry or nonprofit 

14 organizations; and 

15 (3) conducting research, long-term planning, 

16 and modeling efforts intended to reduce net green17 house gas emissions in the United States through 

18 sustainable economic development. 

19 (b) SET ASIDE FOR MOST EFFECTIVE PROJECTS.—

20 For each fiscal year, 50 percent of the grant funds award21 ed under subsection (a) shall be awarded competitively for 

22 projects that will reduce net greenhouse gas emissions—

23 (1) in the greatest quantity; 

24 (2) most rapidly; and 

25 (3) with the greatest degree of permanence. 
51

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1 (c) ANNUAL REPORTING BY GRANT RECIPIENTS.—

2 As a condition of receipt of a grant under this section, 

3 each recipient shall submit to the Federal agency that pro4 vided the grant an annual report on the extent to which 

5 the emission reductions that were anticipated in the appli6 cation for the grant have occurred. 

7 (d) ANNUAL SUMMARY.—The President shall annu8 ally compile and publish in the Federal Register a sum9 mary of—

10 (1) the grants made under this section; and 

11 (2) the net emission reductions due to the ac12 tivities assisted with the grants. 

13 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $2,000,000,000 for each fiscal year. 

16 SEC. 508. REPORT ON MODIFICATIONS TO REVENUE STAT17 UTES. 

18 Not later than January 1, 2004, the Secretary of the 

19 Treasury, in consultation with the heads of other appro20 priate Federal agencies, shall submit to Congress a report 

21 making recommendations for modifications to the Internal 

22 Revenue Code and other statutes affecting revenue that 

23 are expected to result in the reduction of net greenhouse 

24 gas emissions in the United States below the levels that 
52

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1 would otherwise result in a doubling of concentrations of 

2 greenhouse gases in the atmosphere from 1870 levels.

Æ