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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 194 Introduced in Senate (IS)]

108th CONGRESS
  1st Session
                                 S. 194

  To amend the Clean Air Act to establish an inventory, registry, and 
information system of United States greenhouse gas emissions to inform 
   the public and private sector concerning, and encourage voluntary 
                reductions in, greenhouse gas emissions.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 17, 2003

 Mr. Corzine (for himself, Mr. Jeffords, and Mr. Lieberman) introduced 
the following bill; which was read twice and referred to the Committee 
                    on Environment and Public Works

_______________________________________________________________________

                                 A BILL

 
  To amend the Clean Air Act to establish an inventory, registry, and 
information system of United States greenhouse gas emissions to inform 
   the public and private sector concerning, and encourage voluntary 
                reductions in, greenhouse gas emissions.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Greenhouse Gas Emissions 
Inventory and Registry Act of 2003''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) human activities have caused rapid increases in 
        atmospheric concentrations of carbon dioxide and other 
        greenhouse gases in the last century;
            (2) according to the Intergovernmental Panel on Climate 
        Change and the National Research Council--
                    (A) the Earth has warmed in the last century; and
                    (B) the majority of the observed warming is 
                attributable to human activities;
            (3) despite the fact that many uncertainties in climate 
        science remain, the potential impacts from human-induced 
        climate change pose a substantial risk that should be managed 
        in a responsible manner; and
            (4) to begin to manage climate change risks, public and 
        private entities will need a comprehensive, accurate inventory, 
        registry, and information system of the sources and quantities 
        of United States greenhouse gas emissions.
    (b) Purpose.--The purpose of this Act is to establish a mandatory 
greenhouse gas inventory, registry, and information system that--
            (1) is complete, consistent, transparent, and accurate;
            (2) will create accurate data that can be used by public 
        and private entities to design efficient and effective 
        greenhouse gas emission reduction strategies;
            (3) will encourage greenhouse gas emission reductions; and
            (4) can be used to establish a baseline in the event of any 
        future greenhouse gas emission reduction requirements affecting 
        major emitters in the United States.

SEC. 3. GREENHOUSE GAS EMISSIONS.

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

                 ``TITLE VII--GREENHOUSE GAS EMISSIONS

``SEC. 701. DEFINITIONS.

    ``In this title:
            ``(1) Covered entity.--The term `covered entity' means an 
        entity that emits more than a threshold quantity of greenhouse 
        gas emissions.
            ``(2) Direct emissions.--The term `direct emissions' means 
        greenhouse gas emissions from a source that is owned or 
        controlled by an entity.
            ``(3) Entity.--The term `entity' includes a firm, a 
        corporation, an association, a partnership, and a Federal 
        agency.
            ``(4) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons; and
                    ``(F) sulfur hexafluoride.
            ``(5) Greenhouse gas emissions.--The term `greenhouse gas 
        emissions' means emissions of a greenhouse gas, including--
                    ``(A) stationary combustion source emissions, which 
                are emitted as a result of combustion of fuels in 
                stationary equipment such as boilers, furnaces, 
                burners, turbines, heaters, incinerators, engines, 
                flares, and other similar sources;
                    ``(B) process emissions, which consist of emissions 
                from chemical or physical processes other than 
                combustion;
                    ``(C) fugitive emissions, which consist of 
                intentional and unintentional emissions from--
                            ``(i) equipment leaks such as joints, 
                        seals, packing, and gaskets; and
                            ``(ii) piles, pits, cooling towers, and 
                        other similar sources; and
                    ``(D) mobile source emissions, which are emitted as 
                a result of combustion of fuels in transportation 
                equipment such as automobiles, trucks, trains, 
                airplanes, and vessels.
            ``(6) Greenhouse gas emissions record.--The term 
        `greenhouse gas emissions record' means all of the historical 
        greenhouse gas emissions and project reduction data submitted 
        by an entity under this title, including any adjustments to 
        such data under section 704(c).
            ``(7) Greenhouse gas report.--The term `greenhouse gas 
        report' means an annual list of the greenhouse gas emissions of 
        an entity and the sources of those emissions.
            ``(8) Indirect emissions.--The term `indirect emissions' 
        means greenhouse gas emissions that are a consequence of the 
        activities of an entity but that are emitted from sources owned 
        or controlled by another entity.
            ``(9) National greenhouse gas emissions information 
        system.--The term `national greenhouse gas emissions 
        information system' means the information system established 
        under section 702(a).
            ``(10) National greenhouse gas emissions inventory.--The 
        term `national greenhouse gas emissions inventory' means the 
        national inventory of greenhouse gas emissions established 
        under section 705.
            ``(11) National greenhouse gas registry.--The term 
        `national greenhouse gas registry' means the national 
        greenhouse gas registry established under section 703(a).
            ``(12) Project reduction.--The term `project reduction' 
        means--
                    ``(A) a greenhouse gas emission reduction achieved 
                by carrying out a greenhouse gas emission reduction 
                project; and
                    ``(B) sequestration achieved by carrying out a 
                sequestration project.
            ``(13) Reporting entity.--The term `reporting entity' means 
        an entity that reports to the Administrator under subsection 
        (a) or (b) of section 704.
            ``(14) Sequestration.--The term `sequestration' means the 
        long-term separation, isolation, or removal of greenhouse gases 
        from the atmosphere, including through a biological or geologic 
        method such as reforestation or an underground reservoir.
            ``(15) Threshold quantity.--The term `threshold quantity' 
        means a threshold quantity for mandatory greenhouse gas 
        reporting established by the Administrator under section 
        704(a)(3).
            ``(16) Verification.--The term `verification' means the 
        objective and independent assessment of whether a greenhouse 
        gas report submitted by a reporting entity accurately reflects 
        the greenhouse gas impact of the reporting entity.

``SEC. 702. NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION SYSTEM.

    ``(a) Establishment.--In consultation with the Secretary of 
Commerce, the Secretary of Agriculture, the Secretary of Energy, 
States, the private sector, and nongovernmental organizations concerned 
with establishing standards for reporting of greenhouse gas emissions, 
the Administrator shall establish and administer a national greenhouse 
gas emissions information system to collect information reported under 
section 704(a).
    ``(b) Submission to Congress of Draft Design.--Not later than 180 
days after the date of enactment of this title, the Administrator shall 
submit to Congress a draft design of the national greenhouse gas 
emissions information system.
    ``(c) Availability of Data to the Public.--The Administrator shall 
publish all information in the national greenhouse gas emissions 
information system through the website of the Environmental Protection 
Agency, except in any case in which publishing the information would 
reveal a trade secret or disclose information vital to national 
security.
    ``(d) Relationship to Other Greenhouse Gas Registries.--To the 
extent practicable, the Administrator shall ensure coordination between 
the national greenhouse gas emissions information system and existing 
and developing Federal, regional, and State greenhouse gas registries.
    ``(e) Integration With Other Environmental Information.--To the 
extent practicable, the Administrator shall integrate information in 
the national greenhouse gas emissions information system with other 
environmental information managed by the Administrator.

``SEC. 703. NATIONAL GREENHOUSE GAS REGISTRY.

    ``(a) Establishment.--In consultation with the Secretary of 
Commerce, the Secretary of Agriculture, the Secretary of Energy, 
States, the private sector, and nongovernmental organizations concerned 
with establishing standards for reporting of greenhouse gas emissions, 
the Administrator shall establish and administer a national greenhouse 
gas registry to collect information reported under section 704(b).
    ``(b) Availability of Data to the Public.--The Administrator shall 
publish all information in the national greenhouse gas registry through 
the website of the Environmental Protection Agency, except in any case 
in which publishing the information would reveal a trade secret or 
disclose information vital to national security.
    ``(c) Relationship to Other Greenhouse Gas Registries.--To the 
maximum extent feasible and practicable, the Administrator shall ensure 
coordination between the national greenhouse gas registry and existing 
and developing Federal, regional, and State greenhouse gas registries.
    ``(d) Integration With Other Environmental Information.--To the 
maximum extent practicable, the Administrator shall integrate all 
information in the national greenhouse gas registry with other 
environmental information collected by the Administrator.

``SEC. 704. REPORTING.

    ``(a) Mandatory Reporting to National Greenhouse Gas Emissions 
Information System.--
            ``(1) Initial reporting requirements.--
                    ``(A) In general.--Not later than April 30, 2004, 
                in accordance with this paragraph and the regulations 
                promulgated under section 706(e)(1), each covered 
                entity shall submit to the Administrator, for inclusion 
                in the national greenhouse gas emissions information 
                system, the greenhouse gas report of the covered entity 
                with respect to--
                            ``(i) calendar year 2003; and
                            ``(ii) each greenhouse gas emitted by the 
                        covered entity in an amount that exceeds the 
                        applicable threshold quantity.
                    ``(B) Required elements.--Each greenhouse gas 
                report submitted under subparagraph (A)--
                            ``(i) shall include estimates of direct 
                        stationary combustion source emissions;
                            ``(ii) shall express greenhouse gas 
                        emissions in metric tons of the carbon dioxide 
                        equivalent of each greenhouse gas emitted;
                            ``(iii) shall specify the sources of 
                        greenhouse gas emissions that are included in 
                        the greenhouse gas report;
                            ``(iv) shall be reported on an entity-wide 
                        basis and on a facility-wide basis; and
                            ``(v) to the maximum extent practicable, 
                        shall be reported electronically to the 
                        Administrator in such form as the Administrator 
                        may require.
                    ``(C) Method of reporting of entity-wide 
                emissions.--Under subparagraph (B)(iv), entity-wide 
                emissions shall be reported on the bases of financial 
                control and equity share in a manner consistent with 
                the financial reporting practices of the covered 
                entity.
            ``(2) Final reporting requirements.--
                    ``(A) In general.--Not later than April 30, 2005, 
                and each April 30 thereafter (except as provided in 
                subparagraph (B)(vii)), in accordance with this 
                paragraph and the regulations promulgated under section 
                706(e)(2), each covered entity shall submit to the 
                Administrator the greenhouse gas report of the covered 
                entity with respect to--
                            ``(i) the preceding calendar year; and
                            ``(ii) each greenhouse gas emitted by the 
                        covered entity in an amount that exceeds the 
                        applicable threshold quantity.
                    ``(B) Required elements.--Each greenhouse gas 
                report submitted under subparagraph (A) shall include--
                            ``(i) the required elements specified in 
                        paragraph (1);
                            ``(ii) estimates of indirect emissions from 
                        imported electricity, heat, and steam;
                            ``(iii) estimates of process emissions 
                        described in section 701(5)(B);
                            ``(iv) estimates of fugitive emissions 
                        described in section 701(5)(C);
                            ``(v) estimates of mobile source emissions 
                        described in section 701(5)(D), in such form as 
                        the Administrator may require;
                            ``(vi) in the case of a covered entity that 
                        is a forest product entity, estimates of direct 
                        stationary source emissions, including 
                        emissions resulting from combustion of biomass;
                            ``(vii) in the case of a covered entity 
                        that owns more than 250,000 acres of 
                        timberland, estimates, by State, of the timber 
                        and carbon stocks of the covered entity, which 
                        estimates shall be updated every 5 years; and
                            ``(viii) a description of any adjustments 
                        to the greenhouse gas emissions record of the 
                        covered entity under subsection (c).
            ``(3) Establishment of threshold quantities.--For the 
        purpose of reporting under this subsection, the Administrator 
        shall establish threshold quantities of emissions for each 
        combination of a source and a greenhouse gas that is subject to 
        the mandatory reporting requirements under this subsection.
    ``(b) Voluntary Reporting to National Greenhouse Gas Registry.--
            ``(1) In general.--Not later than April 30, 2004, and each 
        April 30 thereafter, in accordance with this subsection and the 
        regulations promulgated under section 706(f), an entity may 
        voluntarily report to the Administrator, for inclusion in the 
        national greenhouse gas registry, with respect to the preceding 
        calendar year and any greenhouse gas emitted by the entity--
                    ``(A) project reductions;
                    ``(B) transfers of project reductions to and from 
                any other entity;
                    ``(C) project reductions and transfers of project 
                reductions outside the United States;
                    ``(D) indirect emissions that are not required to 
                be reported under subsection (a)(2)(B)(ii) (such as 
                product transport, waste disposal, product 
                substitution, travel, and employee commuting); and
                    ``(E) product use phase emissions.
            ``(2) Types of activities.--Under paragraph (1), an entity 
        may report activities that reduce greenhouse gas emissions or 
        sequester a greenhouse gas, including--
                    ``(A) fuel switching;
                    ``(B) energy efficiency improvements;
                    ``(C) use of renewable energy;
                    ``(D) use of combined heat and power systems;
                    ``(E) management of cropland, grassland, and 
                grazing land;
                    ``(F) forestry activities that increase carbon 
                stocks;
                    ``(G) carbon capture and storage;
                    ``(H) methane recovery; and
                    ``(I) carbon offset investments.
    ``(c) Adjustment Factors.--
            ``(1) In general.--Each reporting entity shall adjust the 
        greenhouse gas emissions record of the reporting entity in 
        accordance with this subsection.
            ``(2) Significant structural changes.--
                    ``(A) In general.--A reporting entity that 
                experiences a significant structural change in the 
                organization of the reporting entity (such as a merger, 
                major acquisition, or divestiture) shall adjust its 
                greenhouse gas emissions record for preceding years so 
                as to maintain year-to-year comparability.
                    ``(B) Mid-year changes.--In the case of a reporting 
                entity that experiences a significant structural change 
                described in subparagraph (A) during the middle of a 
                year, the greenhouse gas emissions record of the 
                reporting entity for preceding years shall be adjusted 
                on a pro-rata basis.
            ``(3) Calculation changes and errors.--The greenhouse gas 
        emissions record of a reporting entity for preceding years 
        shall be adjusted for--
                    ``(A) changes in calculation methodologies; or
                    ``(B) errors that significantly affect the quantity 
                of greenhouse gases in the greenhouse gas emissions 
                record.
            ``(4) Organizational growth or decline.--The greenhouse gas 
        emissions record of a reporting entity for preceding years 
        shall not be adjusted for any organizational growth or decline 
        of the reporting entity such as--
                    ``(A) an increase or decrease in production output;
                    ``(B) a change in product mix;
                    ``(C) a plant closure; and
                    ``(D) the opening of a new plant.
            ``(5) Explanations of adjustments.--A reporting entity 
        shall explain, in a statement included in the greenhouse gas 
        report of the reporting entity for a year--
                    ``(A) any significant adjustment in the greenhouse 
                gas emissions record of the reporting entity; and
                    ``(B) any significant change between the greenhouse 
                gas emissions record for the preceding year and the 
                greenhouse gas emissions reported for the current year.
    ``(d) Quantification and Verification Protocols and Tools.--
            ``(1) In general.--The Administrator and the Secretary of 
        Commerce, the Secretary of Agriculture, and the Secretary of 
        Energy shall jointly work with the States, the private sector, 
        and nongovernmental organizations to develop--
                    ``(A) protocols for quantification and verification 
                of greenhouse gas emissions;
                    ``(B) electronic methods for quantification and 
                reporting of greenhouse gas emissions; and
                    ``(C) greenhouse gas accounting and reporting 
                standards.
            ``(2) Best practices.--The protocols and methods developed 
        under paragraph (1) shall conform, to the maximum extent 
        practicable, to the best practice protocols that have the 
        greatest support of experts in the field.
            ``(3) Incorporation into regulations.--The Administrator 
        shall incorporate the protocols developed under paragraph 
        (1)(A) into the regulations promulgated under section 706.
            ``(4) Outreach program.--The Administrator, the Secretary 
        of Commerce, the Secretary of Agriculture, and the Secretary of 
        Energy shall jointly conduct an outreach program to provide 
        information to all reporting entities and the public on the 
        protocols and methods developed under this subsection.
    ``(e) Verification.--
            ``(1) Provision of information by reporting entities.--Each 
        reporting entity shall provide information sufficient for the 
        Administrator to verify, in accordance with greenhouse gas 
        accounting and reporting standards developed under subsection 
        (d)(1)(C), that the greenhouse gas report of the reporting 
        entity--
                    ``(A) has been accurately reported; and
                    ``(B) in the case of each project reduction, 
                represents actual reductions in greenhouse gas 
                emissions or actual increases in net sequestration, as 
                applicable.
            ``(2) Independent third-party verification.--A reporting 
        entity may--
                    ``(A) obtain independent third-party verification; 
                and
                    ``(B) present the results of the third-party 
                verification to the Administrator for consideration by 
                the Administrator in carrying out paragraph (1).
    ``(f) Enforcement.--The Administrator may bring a civil action in 
United States district court against a covered entity that fails to 
comply with subsection (a), or a regulation promulgated under section 
706(e), to impose a civil penalty of not more than $25,000 for each day 
that the failure to comply continues.

``SEC. 705. NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY.

    ``Not later than April 30, 2004, and each April 30 thereafter, the 
Administrator shall publish a national greenhouse gas emissions 
inventory that includes--
            ``(1) comprehensive estimates of the quantity of United 
        States greenhouse gas emissions for the second preceding 
        calendar year, including--
                    ``(A) for each greenhouse gas, an estimate of the 
                quantity of emissions contributed by each key source 
                category;
                    ``(B) a detailed analysis of trends in the 
                quantity, composition, and sources of United States 
                greenhouse gas emissions; and
                    ``(C) a detailed explanation of the methodology 
                used in developing the national greenhouse gas 
                emissions inventory; and
            ``(2) a detailed analysis of the information reported to 
        the national greenhouse gas emissions information system and 
        the national greenhouse gas registry.

``SEC. 706. REGULATIONS.

    ``(a) In General.--The Administrator may promulgate such 
regulations as are necessary to carry out this title.
    ``(b) Best Practices.--In developing regulations under this 
section, the Administrator shall seek to leverage leading protocols for 
the measurement, accounting, reporting, and verification of greenhouse 
gas emissions.
    ``(c) National Greenhouse Gas Emissions Information System.--Not 
later than January 31, 2004, the Administrator shall promulgate such 
regulations as are necessary to establish the national greenhouse gas 
emissions information system.
    ``(d) National Greenhouse Gas Registry.--Not later than January 31, 
2004, the Administrator shall promulgate such regulations as are 
necessary to establish the national greenhouse gas registry.
    ``(e) Mandatory Reporting Requirements.--
            ``(1) Initial reporting requirements.--Not later than 
        January 31, 2004, the Administrator shall promulgate such 
        regulations as are necessary to implement the initial mandatory 
        reporting requirements under section 704(a)(1).
            ``(2) Final reporting requirements.--Not later than January 
        31, 2005, the Administrator shall promulgate such regulations 
        as are necessary to implement the final mandatory reporting 
        requirements under section 704(a)(2).
    ``(f) Voluntary Reporting Provisions.--Not later than January 31, 
2004, the Administrator shall promulgate such regulations and issue 
such guidance as are necessary to implement the voluntary reporting 
provisions under section 704(b).
    ``(g) Adjustment Factors.--Not later than January 31, 2004, the 
Administrator shall promulgate such regulations as are necessary to 
implement the adjustment factors under section 704(c).''.
                                 <all>
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