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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 17 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Global Climate 
Security Act of 2003''.
    (b) Table of Contents.--The table of contents of 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.

SEC. 2. DEFINITION OF CONVENTION.

    In this Act, the term ``Convention'' means the United Nations 
Framework Convention on Climate Change, done at New York on May 9, 
1992.

         TITLE I--SENSE OF THE SENATE ON CLIMATE CHANGE ACTION

SEC. 101. SENSE OF THE SENATE ON CLIMATE CHANGE ACTION.

    (a) Findings.--Based on the scientific evidence and the advice and 
conclusions of the National Academy of Sciences, the Intergovernmental 
Panel on Climate Change, and the National Assessment of the Potential 
Consequences of Climate Variability and Change prepared under the 
Global Change Research Act of 1990 (15 U.S.C. 2921 et seq.), Congress 
finds that the many risks to the United States and the world from 
global warming and climate change are substantial and require immediate 
attention.
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) the President and Congress should make reducing and 
        preparing for the risks of global climate change a higher 
        priority;
            (2) the President should reorient the recently announced 
        climate research plan away from a focus on whether climate 
        change is occurring toward actively achieving the commitments 
        of the United States under the Convention;
            (3) such a plan should gather adequate information on 
        policies and strategies that the United States should embrace--
                    (A) to expeditiously and most cost-effectively 
                reduce greenhouse gas emissions;
                    (B) to limit the adverse property, economic, food 
                supply, ecosystem, and public health impacts of global 
                warming and climate change;
                    (C) to reduce the uncertainty associated with those 
                negative impacts and the timing of those negative 
                impacts; and
                    (D) to develop an early warning system of 
                biological and ecological indicators that will provide 
                sufficient advance notice of catastrophic or dramatic 
                climate system alterations so that developed and 
                developing countries can prepare for and respond to 
                regional, national, and local disasters;
            (4) the President should resume support for, and Congress 
        should pass, legislation that will require reductions in carbon 
        dioxide, a major greenhouse gas, and other damaging pollutants 
        emitted by electric power plants; and
            (5) as largest emitter of greenhouse gases in the world, 
        the United States should be the world leader in--
                    (A) creating and promoting emission-reducing 
                technologies and clean energy sources; and
                    (B) funding domestic and international programs and 
                projects to reduce emissions.

   TITLE II--NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY AND REGISTRY

SEC. 201. SHORT TITLE.

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

SEC. 202. 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 title 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. 203. 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, 2003, 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).''.

  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.

    (a) Findings.--Congress finds that--
            (1) evidence continues to mount that increases in 
        atmospheric concentrations of manmade greenhouse gases are 
        contributing to global climate change;
            (2) the Intergovernmental Panel on Climate Change has 
        concluded that--
                    (A) ``there is new and stronger evidence that most 
                of the warming observed over the last 50 years is 
                attributable to human activities''; and
                    (B) the Earth's average temperature can be expected 
                to rise between 2.5 and 10.4 degrees Fahrenheit in this 
                century;
            (3) in 2001, the National Academy of Sciences confirmed the 
        findings of the Panel, stating that--
                    (A) ``the IPCC's conclusion that most of the 
                observed warming of the last 50 years is likely to have 
                been due to the increase of greenhouse gas 
                concentrations accurately reflects the current thinking 
                of the scientific community on this issue''; and
                    (B) ``there is general agreement that the observed 
                warming is real and particularly strong within the past 
                twenty years'';
            (4) the Panel has stated that, in the past 40 years, the 
        global average sea level has risen, the heat content of the 
        ocean has increased, and snow cover and ice extent have 
        decreased, resulting in the threat of inundation of low-lying 
        island countries and coastal regions throughout the world;
            (5) in October 2000, a United States Government report 
        found that global climate change may harm the United States 
        by--
                    (A) altering crop yields;
                    (B) causing entire ecosystems to disappear;
                    (C) accelerating the rise of sea levels; and
                    (D) increasing the spread of tropical infectious 
                diseases;
            (6) in 1992, the United States ratified the Convention, the 
        ultimate objective of which is the ``stabilization of 
        greenhouse gas concentrations in the atmosphere at a level that 
        would prevent dangerous anthropogenic interference with the 
        climate system. Such a level should be achieved within a time-
        frame sufficient to allow ecosystems to adapt naturally to 
        climate change, to ensure that food production is not 
        threatened and to enable economic development to proceed in a 
        sustainable manner'';
            (7) the Convention stated in part that the parties to the 
        Convention are to implement policies ``with the aim of 
        returning . . . to their 1990 levels these anthropogenic 
        emissions of carbon dioxide and other greenhouse gases'' under 
        the principle that ``[p]olicies and measures . . . should be 
        appropriate for the specific conditions of each Party and 
        should be integrated with national development programmes, 
        taking into account that economic development is essential for 
        adopting measures to address climate change'';
            (8) there is a shared international responsibility to 
        address the problem of climate change, since--
                    (A) industrial countries are the largest historic 
                and current emitters of greenhouse gases; and
                    (B) the emissions of developing countries will 
                significantly increase in the future;
            (9) the Convention further stated that--
                    (A) ``developed country Parties should take the 
                lead in combating climate change and the adverse 
                effects thereof'', as those countries are the largest 
                historic and current emitters of greenhouse gases; and
                    (B) ``steps required to understand and address 
                climate change will be environmentally, socially and 
                economically most effective if they are based on 
                relevant scientific, technical and economic 
                considerations and continually re-evaluated in the 
                light of new findings in these areas'';
            (10)(A) Senate Resolution 98 of the 105th Congress (which 
        stated that developing countries must also be included in any 
        future, binding climate change treaty and that such a treaty 
        must not result in serious harm to the United States economy) 
        should not cause the United States to abandon its shared 
        responsibility to help reduce the risks and impacts of climate 
        change; and
            (B) future international efforts in this regard should 
        focus on recognizing the equitable responsibilities for 
        addressing climate change by all countries, including 
        commitments by the largest developing country emitters in a 
        future, binding climate change treaty;
            (11) it is the position of the United States that the 
        United States will not interfere with the plans of any country 
        that chooses to ratify and implement the Kyoto Protocol to the 
        Convention;
            (12) American businesses need to know how governments 
        worldwide will address the risks of climate change; and
            (13) the United States benefits from investments in the 
        research, development, and deployment of a range of clean 
        energy and efficiency technologies that can--
                    (A) reduce the risks of climate change and the 
                impacts of climate change; and
                    (B) make the United States economy more productive, 
                bolster energy security, create jobs, and protect the 
                environment.
    (b) Sense of Congress.--It is the sense of Congress that the United 
States should demonstrate international leadership and responsibility 
in reducing the health, environmental, and economic risks posed by 
climate change by--
            (1) taking responsible action to ensure significant and 
        meaningful reductions in emissions of greenhouse gases from all 
        sectors of the economy;
            (2) creating flexible international and domestic mechanisms 
        (including joint implementation, technology deployment, 
        tradable credits for emissions reductions, and carbon 
        sequestration projects) that will reduce, avoid, and sequester 
        greenhouse gas emissions;
            (3) complying with the commitments of the United States, 
        including funding obligations, under the Convention; and
            (4) participating in international negotiations, including 
        putting forward a proposal to the Conference of the Parties to 
        the Convention, with the objective of securing United States 
        participation in a future binding climate change treaty in a 
        manner that--
                    (A) is consistent with the environmental objectives 
                of the Convention;
                    (B) protects the economic interests of the United 
                States; and
                    (C) recognizes the shared international 
                responsibility for addressing climate change, including 
                participation by developing countries.

                   TITLE IV--RIO AGREEMENT COMMISSION

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Rio Agreement Commission 
Establishment Act''.

SEC. 402. FINDINGS.

    Congress finds that--
            (1) strong evidence of human-induced global climate change 
        and warming continues to accumulate;
            (2) an overwhelming majority of the world's scientists 
        believe that anthropogenic sources of greenhouse gases are 
        contributing to increasing concentrations of those gases in the 
        atmosphere;
            (3) in 1992, the United States Senate ratified the 
        Convention, which committed the country to aiming to return 
        greenhouse gas emissions in the United States, individually or 
        jointly with other countries, to 1990 levels by 2000;
            (4) the United States is now more than 13 percent above 
        that target;
            (5) the United States should exercise strong leadership and 
        expeditiously take reasonable and cost-effective steps to meet 
        its commitment under the Convention;
            (6) the establishment of an independent commission to 
        advise Congress and the Federal Government would--
                    (A) minimize the effects of partisan politics and 
                help surmount institutional barriers relating to 
                meeting that commitment; and
                    (B) allow the United States to make progress on 
                meeting that commitment; and
            (7) the potential damage to the United States economy and 
        national interests from the inability of critical 
        infrastructure, food production, or natural systems to adapt 
        quickly enough to climate variability or global warming 
        warrants taking action now rather than waiting until the costs 
        of that damage are exorbitant.

SEC. 403. DEFINITIONS.

    In this title:
            (1) Commission.--The term ``Commission'' means the 
        Commission to Implement the Rio Agreement established by 
        section 404.
            (2) Council.--The term ``Council'' means the Council on 
        Environmental Quality.
            (3) Session day.--The term ``session day'' means a day on 
        which both Houses of Congress are in session.

SEC. 404. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the ``Commission to Implement the Rio Agreement''.
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 11 
        members, of whom--
                    (A) 3 members shall be appointed by the President;
                    (B) subject to paragraph (4), 4 members shall be 
                appointed by the President pro tempore of the Senate, 
                on the recommendation of the majority and minority 
                leaders of the Senate; and
                    (C) subject to paragraph (4), 4 members shall be 
                appointed by the Speaker of the House of 
                Representatives, in consultation with the minority 
                leader of the House of Representatives.
            (2) Expertise.--A member of the Commission shall be an 
        expert in a field related to--
                    (A) the science of assessing climate change;
                    (B) the effects of climate change on the United 
                States; or
                    (C) the technological and economic tools necessary 
                to reduce net greenhouse gas emissions.
            (3) Prohibition on federal government employment.--A member 
        of the Commission shall not be an employee of the Federal 
        Government.
            (4) Appointments.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a member of the Commission shall be appointed by 
                and with the advice and consent of the Senate.
                    (B) Alternative appointment.--If the appointment 
                and confirmation by the Senate of at least 7 members of 
                the Commission is not completed by the date that is 45 
                session days after the date of enactment of this Act, 
                the President shall, on that date, arrange for 
the National Academy of Sciences or the National Science Foundation to 
establish and operate the Commission and fulfill the statutory mandate 
of the Commission.
    (c) Term; Vacancies.--
            (1) Term.--A member shall be appointed for the life of the 
        Commission.
            (2) Vacancies.--A vacancy on the Commission--
                    (A) shall not affect the powers of the Commission; 
                and
                    (B) shall be filled in the same manner as the 
                original appointment was made.
    (d) Initial Meeting.--Not later than 30 days after the date on 
which 7 members of the Commission have been appointed under subsection 
(b) or the Commission is otherwise established under subsection 
(b)(4)(B), the Commission shall hold the initial meeting of the 
Commission.
    (e) Meetings.--The Commission shall meet at the call of the 
Chairperson.
    (f) Quorum.--Seven members of the Commission shall constitute a 
quorum, but a lesser number of members may hold hearings.
    (g) Chairperson and Vice Chairperson.--The Commission shall select 
a Chairperson and Vice Chairperson from among the members of the 
Commission.

SEC. 405. DUTIES.

    (a) Review and Report.--
            (1) Review.--
                    (A) In general.--The Commission shall review the 
                measures that are necessary to reduce net greenhouse 
                gas emissions in the United States, and to the maximum 
                extent possible in the world, below the levels that 
                would otherwise result in a doubling of concentrations 
                of greenhouse gases in the atmosphere from 1870 levels.
                    (B) Emphasis.--The review under subparagraph (A) 
                shall emphasize the need for those countries, like the 
                United States, that have contributed and will 
                contribute most greatly to the elevated concentrations 
                described in that subparagraph to take the greatest and 
                swiftest steps to reduce emissions in the near term to 
                avert a doubling described in that subparagraph.
                    (C) Types of measures.--The measures to be reviewed 
                under subparagraph (A) shall include participation in 
                any global or domestic carbon trading system or other 
                international institution established to achieve global 
                carbon emission reductions.
            (2) Recommendations.--The Commission shall develop 
        recommendations concerning--
                    (A) the measures described in paragraph (1)(A) that 
                the Commission determines to be appropriate for 
                implementation, giving preference to cost-effective and 
                technologically feasible measures that will--
                            (i) produce measurable net reductions in 
                        emissions described in paragraph (1)(A); and
                            (ii) minimize any adverse impacts on the 
                        economy of the United States; and
                    (B) the text of legislation that would be necessary 
                to effectuate the measures.
            (3) Report.--
                    (A) In general.--Not later than June 1, 2004, the 
                Commission shall submit to Congress a report that 
                contains--
                            (i) a detailed statement of the findings 
                        and conclusions of the Commission; and
                            (ii) the recommendations of the Commission 
                        for such legislation (in specific legislative 
                        language) and administrative actions as the 
                        Commission considers appropriate.
                    (B) Approval.--The report under subparagraph (A) 
                shall be approved by the Commission by a majority vote 
                of the members that have been appointed under section 
                404(b) as of the date of the vote.
    (b) Budget.--
            (1) Submission to congress.--Not later than 30 days after 
        the date of enactment of this Act, the Commission shall submit 
        to Congress and the President a proposed budget for the 
        Commission.
            (2) Funding.--The President shall provide, from funds 
        available to Federal agencies, such sums as are necessary to 
        carry out the duties of the Commission until the date on which 
        funds are made available under section 409.

SEC. 406. POWERS.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out this title.
    (b) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly from a 
        Federal agency such information as the Commission considers 
        necessary to carry out this title.
            (2) Provision of information.--On request of the 
        Chairperson of the Commission, the head of the agency shall 
        provide the information to the Commission.
            (3) Coordination by council on environmental quality.--The 
        Chairman of the Council on Environmental Quality shall 
        coordinate with the Commission in ensuring that Federal 
        agencies are responsive in assisting the Commission in carrying 
        out its duties under this title.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
agencies of the Federal Government.
    (d) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 407. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--A member of the Commission shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which the member is engaged in the performance of 
the duties of the Commission.
    (b) Travel Expenses.--A member of the Commission shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for an employee of an agency under subchapter I of chapter 
57 of title 5, United States Code, while away from the home or regular 
place of business of the member in the performance of the duties of the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairperson of the Commission may, 
        without regard to the civil service laws (including 
        regulations), appoint and terminate an executive director and 
        such other additional personnel as are necessary to enable the 
        Commission to perform the duties of the Commission.
            (2) Confirmation of executive director.--The employment of 
        an executive director shall be subject to confirmation by the 
        Commission.
            (3) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Chairperson of the Commission may fix the 
                compensation of the executive director and other 
                personnel without regard to the provisions of chapter 
                51 and subchapter III of chapter 53 of title 5, United 
                States Code, relating to classification of positions 
                and General Schedule pay rates.
                    (B) Maximum rate of pay.--The rate of pay for the 
                executive director and other personnel may not exceed 
                the rate payable for level V of the Executive Schedule 
                under section 5316 of title 5, United States Code.
    (d) Detail of Federal Government Employees.--
            (1) In general.--An employee of the Federal Government may 
        be detailed to the Commission without reimbursement.
            (2) Civil service status.--The detail of the employee shall 
        be without interruption or loss of civil service status or 
        privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairperson of the Commission may procure temporary and intermittent 
services in accordance with section 3109(b) of title 5, United States 
Code, at rates for individuals that do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of that title.

SEC. 408. PLAN FOR MINIMIZING IMPACTS OF CLIMATE CHANGE.

    (a) In General.--Not later than October 1, 2004, the Council on 
Environmental Quality shall develop and submit to Congress a plan for 
minimizing the risks associated with global warming and climate change 
to public health and safety, community infrastructure, private 
property, biological diversity, ecosystems, and the food supply, as 
outlined in the national assessment submitted under section 501.
    (b) Required Elements.--The plan shall--
            (1) include specific legislative recommendations and 
        program funding levels; and
            (2) emphasize strategies that would not significantly 
        diminish the quality of life in the United States.
    (c) Consultation.--In developing the plan, the Council shall 
consult with--
            (1) the Committee on Earth and Environmental Sciences 
        established under section 102 of the Global Change Research Act 
        of 1990 (15 U.S.C. 2932);
            (2) participants in the United States Global Change 
        Research Program established under section 103 of that Act (15 
        U.S.C. 2933);
            (3) State, local, and tribal governments;
            (4) other appropriate Federal agencies; and
            (5) members of the public.

SEC. 409. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission and the 
Council such sums as are necessary to carry out this title for fiscal 
years 2003 through 2005, to remain available until expended.

SEC. 410. TERMINATION OF COMMISSION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits the report of the Commission under section 
405(a)(3).

                         TITLE V--MISCELLANEOUS

SEC. 501. NATIONAL ASSESSMENT OF CLIMATE CHANGE IMPACTS.

    (a) In General.--Not later than October 1, 2004, and the end of 
each 4-year period thereafter, the President shall submit to Congress 
an assessment of the potential negative economic, public health, and 
environmental impacts on the United States associated with global 
warming and climate change.
    (b) Required Elements.--The assessment under subsection (a) shall--
            (1) project the possible and the likely effects on the 
        various regions of the United States and sectors of the economy 
        in 2020, 2050, and 2075, using the most probable atmospheric 
        concentrations of greenhouse gases based on existing emission 
        trends; and
            (2) address the possible political, economic, and 
        environmental concerns and challenges that may confront the 
        United States because of negative impacts associated with 
        global warming and climate change in the United States 
        elsewhere in the world.
    (c) Consultation.--The assessment shall be conducted in broad 
consultation with the States, local governments, academic institutions, 
industry, investors, insurers, environmental organizations, planners, 
infrastructure experts, the public health community, and other relevant 
entities.

SEC. 502. REVIEW OF EMISSION REDUCTION POLICIES AND MEASURES.

    (a) Publication.--Not later than March 1, 2004, and annually 
thereafter, the President shall publish, in accordance with the 
commitment of the United States under the Convention, a description of 
each policy, program, and other measure that the United States has 
adopted or implemented in the previous year that is aimed at reducing 
greenhouse gas emissions to 1990 levels in the United States.
    (b) Required Elements.--The publication under subsection (a) shall 
include--
            (1)(A) an identification of each Federal program designed 
        to result in reductions in greenhouse gas emissions; and
            (B)(i) the level of funding for the Federal program for the 
        current fiscal year; and
            (ii) the level of funding requested for the Federal program 
        for the following fiscal year in the budget of the United 
        States Government submitted by the President for the fiscal 
        year under section 1105 of title 31, United States Code; and
            (2) an evaluation of the ability of each policy, program, 
        and other measure referred to in subsection (a) to reduce 
        effectively greenhouse gas emissions in the short term and the 
        long term.

SEC. 503. CLIMATE CHANGE IN ENVIRONMENTAL IMPACT STATEMENTS.

    In any case in which a Federal agency prepares an environmental 
impact statement or similar analysis required under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Federal 
agency shall consider and evaluate--
            (1) the impact that the Federal action or project 
        necessitating the statement or analysis will have in terms of 
        net changes in greenhouse gas emissions; and
            (2) how climate changes may affect the action or project in 
        the short term and the long term.

SEC. 504. FEDERAL GOVERNMENT GREENHOUSE GAS EMISSIONS GOAL.

    (a) Actions.--Not later than January 1, 2004, the President shall 
take such actions as are necessary, including preparing and submitting 
to Congress any necessary statutory changes, to reduce the net 
greenhouse gas emissions of the Federal Government to 1990 levels by 
2013, including steps to procure--
            (1) only highly energy-efficient products, services, and 
        facilities;
            (2) electricity generated from renewable sources; and
            (3) alternative fuel vehicles.
    (b) Report.--The President shall direct the appropriate Federal 
agencies to study and submit to Congress, not later than July 1, 2005, 
a report on the most cost-effective policy options through which the 
Federal Government could reduce the net greenhouse gas emissions of the 
Federal Government to zero by 2025.

SEC. 505. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE CHANGE RISKS.

    (a) Regulations by Securities and Exchange Commission.--Not later 
than 2 years after the date of enactment of this Act, the Securities 
and Exchange Commission should promulgate regulations for the purposes 
of section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
directing each issuer of securities under that Act to inform securities 
investors of the risks relating to--
            (1) the financial exposure of the issuer due to the net 
        greenhouse gas emissions of the issuer; and
            (2) the potential economic impacts of global warming on the 
        interests of the issuer.
    (b) Uniform Format for Disclosure.--In carrying out subsection (a), 
the Securities and Exchange Commission should enter into an agreement 
with the Financial Accountings Standards Board, or another appropriate 
voluntary standards setting organization, to develop a uniform format 
for disclosing to securities investors information on the risks 
described in subsection (a).
    (c) Interim Interpretive Release.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Securities and Exchange Commission 
should issue an interpretive release clarifying that under items 101 
and 303 of Regulation S-K (as in effect on the date of enactment of 
this Act)--
                    (A) the commitments of the United States to reduce 
                emissions of greenhouse gases under the Convention are 
                considered to be a material effect; and
                    (B) global warming constitutes a known trend.
            (2) Period of effectiveness.--The interpretive release 
        issued under paragraph (1) should remain in effect until the 
        effective date of the final regulations promulgated under 
        subsection (a).

SEC. 506. METHODOLOGY FOR DETERMINING GREENHOUSE GAS EMISSIONS FROM 
              IMPORTS; REVIEW OF TRADE AND INNOVATION EFFECTS.

    (a) Methodology.--
            (1) In general.--Not later than January 1, 2005, the 
        Secretary of Commerce, in consultation with the United States 
        Trade Representative, the Secretary of the Treasury, the 
        Secretary of Agriculture, the Secretary of Energy, and the 
        Administrator of the Environmental Protection Agency, shall 
        develop a methodology for determining the greenhouse gases 
        emitted in the production and delivery of goods and services 
        imported into the United States.
            (2) Level of specificity.--The methodology developed under 
        paragraph (1) shall be specific enough to provide a basis for 
        the imposition of tariffs or import fees in the event that the 
        United States adopts a binding commitment to reduce greenhouse 
        gas emissions and an exporting country does not adopt such a 
        similar commitment, thereby creating a trade disadvantage for 
        United States entities.
    (b) Review.--Not later than June 1, 2004, and annually thereafter, 
the Secretary of Commerce, in consultation with the United States Trade 
Representative, the Secretary of the Treasury, the Secretary of 
Agriculture, the Secretary of Energy, and the Administrator of the 
Environmental Protection Agency, shall review and report to Congress on 
the trade, economic, and technology innovation effects of any failure 
on the part of the United States to adopt policies and measures that 
require or result in reductions in total greenhouse gas emissions in 
the United States consistent with the goals for the United States under 
the Convention.

SEC. 507. GRANTS FOR REDUCTION OF GREENHOUSE GAS EMISSIONS.

    (a) In General.--The President, acting through the Secretary of 
Agriculture, the Secretary of Commerce, the Secretary of Energy, and 
the Administrator of the Environmental Protection Agency, may provide 
grants to States or local governments for the purpose of--
            (1) preparing, completing, or operating greenhouse gas data 
        collection, inventory, or trading systems;
            (2) implementing greenhouse gas emission reduction or 
        sequestration projects, including programs conducted jointly 
        with industry or nonprofit organizations; and
            (3) conducting research, long-term planning, and modeling 
        efforts intended to reduce net greenhouse gas emissions in the 
        United States through sustainable economic development.
    (b) Set Aside for Most Effective Projects.--For each fiscal year, 
50 percent of the grant funds awarded under subsection (a) shall be 
awarded competitively for projects that will reduce net greenhouse gas 
emissions--
            (1) in the greatest quantity;
            (2) most rapidly; and
            (3) with the greatest degree of permanence.
    (c) Annual Reporting by Grant Recipients.--As a condition of 
receipt of a grant under this section, each recipient shall submit to 
the Federal agency that provided the grant an annual report on the 
extent to which the emission reductions that were anticipated in the 
application for the grant have occurred.
    (d) Annual Summary.--The President shall annually compile and 
publish in the Federal Register a summary of--
            (1) the grants made under this section; and
            (2) the net emission reductions due to the activities 
        assisted with the grants.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000,000 for each fiscal 
year.

SEC. 508. REPORT ON MODIFICATIONS TO REVENUE STATUTES.

    Not later than January 1, 2004, the Secretary of the Treasury, in 
consultation with the heads of other appropriate Federal agencies, 
shall submit to Congress a report making recommendations for 
modifications to the Internal Revenue Code and other statutes affecting 
revenue that are expected to result in the reduction of net greenhouse 
gas emissions in the United States below the levels that would 
otherwise result in a doubling of concentrations of greenhouse gases in 
the atmosphere from 1870 levels.
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