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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3698 Introduced in Senate (IS)]

109th CONGRESS
  2d Session
                                S. 3698

 To amend the Clean Air Act to reduce emissions of carbon dioxide, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2006

Mr. Jeffords (for himself, Mrs. Boxer, Mr. Lautenberg, Mr. Kennedy, Mr. 
 Leahy, Mr. Reed, Mr. Akaka, Mr. Dodd, Mr. Sarbanes, and Mr. Menendez) 
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 reduce emissions of carbon dioxide, 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.

    This Act may be cited as the ``Global Warming Pollution Reduction 
Act''.

SEC. 2. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

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

     ``TITLE VII--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS

``Sec. 701. Findings.
``Sec. 702. Purposes.
``Sec. 703. Definitions.
``Sec. 704. Global warming pollution emission reductions.
``Sec. 705. Conditions for accelerated global warming pollution 
                            emission reduction.
``Sec. 706. Use of allowances for transition assistance and other 
                            purposes.
``Sec. 707. Vehicle emission standards.
``Sec. 708. Emission standards for electric generation units.
``Sec. 709. Low-carbon generation requirement.
``Sec. 710. Geological disposal of global warming pollutants.
``Sec. 711. Research and development.
``Sec. 712. Energy efficiency performance standard.
``Sec. 713. Renewable portfolio standard.
``Sec. 714. Standards to account for biological sequestration of 
                            carbon.
``Sec. 715. Global warming pollution reporting.
``Sec. 716. Clean energy technology deployment in developing countries.
``Sec. 717. Paramount interest waiver.
``Sec. 718. Effect on other law.

``SEC. 701. FINDINGS.

    ``Congress finds that--
            ``(1) global warming poses a significant threat to the 
        national security and economy of the United States, public 
        health and welfare, and the global environment;
            ``(2) due largely to an increased use of energy from fossil 
        fuels, human activities are primarily responsible for the 
        release of carbon dioxide and other heat-trapping global 
        warming pollutants that are accumulating in the atmosphere and 
        causing surface air and subsurface ocean temperatures to rise;
            ``(3) as of the date of enactment of this title, 
        atmospheric concentrations of carbon dioxide are 35 percent 
        higher than those concentrations were 150 years ago, at 378 
        parts per million compared to 280 parts per million;
            ``(4) the United States emits more global warming 
        pollutants than any other country, and United States carbon 
        dioxide emissions have increased by an average of 1.3 percent 
        annually since 1990;
            ``(5)(A) during the past 100 years, global temperatures 
        have risen by 1.44 degrees Fahrenheit; and
            ``(B) from 1970 to the present, those temperatures have 
        risen by almost 1 degree Fahrenheit;
            ``(6) 8 of the past 10 years (1996 to 2005) are among the 
        10 warmest years on record;
            ``(7) average temperatures in the Arctic have increased by 
        4 to 7 degrees Fahrenheit during the past 50 years;
            ``(8) global warming has caused--
                    ``(A) ocean temperatures to increase, resulting in 
                rising sea levels, extensive bleaching of coral reefs 
                worldwide, and an increase in the intensity of tropical 
                storms;
                    ``(B) the retreat of Arctic sea ice by an average 
                of 9 percent per decade since 1978;
                    ``(C) the widespread thawing of permafrost in 
                polar, subpolar, and mountainous regions;
                    ``(D) the redistribution and loss of species; and
                    ``(E) the rapid shrinking of glaciers;
            ``(9) the United States must adopt a comprehensive and 
        effective national program of mandatory limits and incentives 
        to reduce global warming pollution emissions into the 
        atmosphere;
            ``(10) at the current rate of emission, global warming 
        pollution concentrations in the atmosphere could reach more 
        than 600 parts per million in carbon dioxide equivalent, and 
        global average mean temperature could rise an additional 2.7 to 
        11 degrees Fahrenheit, by the end of the century;
            ``(11) although an understanding of all details of the 
        Earth system is not yet complete, present knowledge indicates 
        that potential future temperature increases could result in--
                    ``(A) the further or complete melting of the 
                Antarctic and Greenland ice sheets;
                    ``(B) the disruption of the North-Atlantic 
                Thermohaline Circulation (commonly known as the `Gulf 
                Stream');
                    ``(C) the extinction of species; and
                    ``(D) large-scale disruptions of the natural 
                systems that support life;
            ``(12) there exists an array of technological options for 
        use in reducing global warming pollution emissions, and 
        significant reductions can be attained using a portfolio of 
        options that will not adversely impact the economy;
            ``(13) the ingenuity of the people of the United States 
        will allow the Nation to become a leader in solving global 
        warming; and
            ``(14) it should be a goal of the United States to achieve 
        a reduction in global warming pollution emissions in the United 
        States--
                    ``(A) to ensure that the average global temperature 
                does not increase by more than 3.6 degrees Fahrenheit 
                (2 degrees Celsius); and
                    ``(B) to facilitate the achievement of an average 
                global atmospheric concentration of global warming 
                pollutants that does not exceed 450 parts per million 
                in carbon dioxide equivalent.

``SEC. 702. PURPOSES.

    ``The purposes of this title are--
            ``(1) to achieve a reduction in global warming pollution 
        emissions compatible with ensuring that--
                    ``(A) the average global temperature does not 
                increase by more than 3.6 degrees Fahrenheit (2 degrees 
                Celsius) above the preindustrial average; and
                    ``(B) total average global atmospheric 
                concentrations of global warming pollutants do not 
                exceed 450 parts per million in carbon dioxide 
                equivalent;
            ``(2) to reduce by calendar year 2050 the aggregate net 
        level of global warming pollution emissions of the United 
        States to a level that is 80 percent below the aggregate net 
        level of global warming pollution emissions for calendar year 
        1990;
            ``(3) to allow for an acceleration of reductions in global 
        warming pollution emissions to prevent--
                    ``(A) average global temperature from increasing by 
                more than 3.6 degrees Fahrenheit (2 degrees Celsius) 
                above the preindustrial average; or
                    ``(B) global atmospheric concentrations of global 
                warming pollutants from exceeding 450 parts per 
                million;
            ``(4) to establish a motor vehicle global warming pollution 
        emission requirement;
            ``(5) to require electric generation units to meet a global 
        warming pollution emission standard;
            ``(6) to establish rules for the safe geological 
        sequestration of carbon dioxide;
            ``(7) to encourage energy efficiency and the use of 
        renewable energy by establishing a renewable portfolio standard 
        and an energy efficiency portfolio standard;
            ``(8) to provide for research relating to, and development 
        of, the technologies to control global warming pollution 
        emissions;
            ``(9) to position the United States as the world leader in 
        reducing the risk of the potentially devastating, wide-ranging 
        impacts associated with global warming; and
            ``(10) to promote, through leadership by the United States, 
        accelerated reductions in global warming pollution from other 
        countries with significant global warming pollution emissions.

``SEC. 703. DEFINITIONS.

    ``In this title:
            ``(1) Academy.--The term `Academy' means the National 
        Academy of Sciences.
            ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means, for each global warming pollutant, the 
        quantity of the global warming pollutant that makes the same 
        contribution to global warming as 1 metric ton of carbon 
        dioxide, as determined by the Administrator, taking into 
        account the study and report described in section 705(a).
            ``(3) Facility.--The term `facility' means all buildings, 
        structures, or installations that are--
                    ``(A) located on 1 or more contiguous or adjacent 
                properties under common control of the same persons; 
                and
                    ``(B) located in the United States.
            ``(4) Global warming pollutant.--The term `global warming 
        pollutant' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons;
                    ``(F) sulfur hexafluoride; and
                    ``(G) any other anthropogenically-emitted gas that 
                the Administrator, after notice and comment, determines 
                to contribute to global warming.
            ``(5) Global warming pollution.--The term `global warming 
        pollution' means any combination of 1 or more global warming 
        pollutants emitted into the ambient air or atmosphere.
            ``(6) Market-based program.--The term `market-based 
        program' means a program that places an absolute limit on the 
        aggregate net global warming pollution emissions of 1 or more 
        sectors of the economy of the United States, while allowing the 
        transfer or sale of global warming pollution emission 
        allowances.
            ``(7) NAS report.--The term `NAS report' means a report 
        completed by the Academy under subsection (a) or (b) of section 
        705.

``SEC. 704. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

    ``(a) Emission Reduction Goal.--Congress declares that--
            ``(1) it shall be the goal of the United States, acting in 
        concert with other countries that emit global warming 
        pollutants, to achieve a reduction in global warming pollution 
        emissions--
                    ``(A) to ensure that the average global temperature 
                does not increase by more than 3.6 degrees Fahrenheit 
                (2 degrees Celsius); and
                    ``(B) to facilitate the achievement of an average 
                global atmospheric concentration of global warming 
                pollutants that does not exceed 450 parts per million 
                in carbon dioxide equivalent; and
            ``(2) in order to achieve the goal described in paragraph 
        (1), the United States shall reduce the global warming 
        pollution emissions of the United States by a quantity that is 
        proportional to the share of the United States of the 
        reductions that are necessary--
                    ``(A) to ensure that the average global temperature 
                does not increase more than 3.6 degrees Fahrenheit (2 
                degrees Celsius); and
                    ``(B) to stabilize average global warming pollution 
                concentrations globally at or below 450 parts per 
                million in carbon dioxide equivalent.
    ``(b) Emission Reduction Milestones for 2020.--
            ``(1) In general.--To achieve the goal described in 
        subsection (a)(1), not later than 2 years after the date of 
        enactment of this title, after an opportunity for public notice 
        and comment, the Administrator shall promulgate any rules that 
        are necessary to reduce, by not later than January 1, 2020, the 
        aggregate net levels of global warming pollution emissions of 
        the United States to the aggregate net level of those global 
        warming pollution emissions during calendar year 1990.
            ``(2) Achievement of milestones.--To the maximum extent 
        practicable, the reductions described in paragraph (1) shall be 
        achieved through an annual reduction in the aggregate net level 
        of global warming pollution emissions of the United States of 
        approximately 2 percent for each of calendar years 2010 through 
        2020.
    ``(c) Emission Reduction Milestones for 2030, 2040, and 2050.--
Except as described in subsection (d), not later than January 1, 2018, 
after an opportunity for public notice and comment, the Administrator 
shall promulgate any rules that are necessary to reduce the aggregate 
net levels of global warming pollution emissions of the United States--
            ``(1) by calendar year 2030, by \1/3\ of 80 percent of the 
        aggregate net level of global warming pollution emissions of 
        the United States during calendar year 1990;
            ``(2) by calendar year 2040, by \2/3\ of 80 percent of the 
        aggregate net level of the global warming pollution emissions 
        of the United States during calendar year 1990; and
            ``(3) by calendar year 2050, by 80 percent of the aggregate 
        net level of global warming pollution emissions of the United 
        States during calendar year 1990.
    ``(d) Accelerated Emission Reduction Milestones.--If an NAS report 
determines that any of the events described in section 705(a)(2) have 
occurred, or are more likely than not to occur in the foreseeable 
future, not later than 2 years after the date of completion of the NAS 
report, the Administrator, after an opportunity for public notice and 
comment and taking into account the new information reported in the NAS 
report, may adjust the milestones under this section and promulgate any 
rules that are necessary--
            ``(1) to reduce the aggregate net levels of global warming 
        pollution emissions from the United States on an accelerated 
        schedule; and
            ``(2) to minimize the effects of rapid climate change and 
        achieve the goals of this title.
    ``(e) Report on Achievement of Milestones.--If an NAS report 
determines that a milestone under paragraph (1) or (2) of subsection 
(c) cannot be achieved because of technological infeasibility, the 
Administrator shall submit to Congress a notification of that 
determination.
    ``(f) Emission Reduction Policies.--
            ``(1) In general.--In implementing subsections (a) through 
        (e), the Administrator may establish 1 or more market-based 
        programs.
            ``(2) Market-based program policies.--
                    ``(A) In general.--In implementing any market-based 
                program, the Administrator shall allocate to 
                households, communities, and other entities described 
                in section 706(a) any global warming pollution emission 
                allowances that are not allocated to entities covered 
                under the emission limitation.
                    ``(B) Recognition of emission reductions made in 
                compliance with state and local laws.--A market-based 
                program may recognize reductions of global warming 
                pollution emissions made before the effective date of 
                the market-based program if the Administrator 
                determines that--
                            ``(i)(I) the reductions were made in 
                        accordance with a State or local law;
                            ``(II) the State or local law is at least 
                        as stringent as the rules established for the 
                        market-based program under paragraph (1); and
                            ``(III) the reductions are at least as 
                        verifiable as reductions made in accordance 
                        with those rules; or
                            ``(ii) for any given entity subject to the 
                        market-based program, the entity demonstrates 
                        that the entity has made entity-wide reductions 
                        of global warming pollution emissions before 
                        the effective date of the market-based program, 
                        but not earlier than calendar year 1992, that 
                        are at least as verifiable as reductions made 
                        in accordance with the rules established for 
                        the market-based program under paragraph (1).
                    ``(C) Publication.--If the Administrator determines 
                that it is necessary to establish a market-based 
                program, the Administrator shall publish notice of the 
                determination in the Federal Register.
                    ``(D) Limitations on market-based programs.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Annual allowance price.--The 
                                term `annual allowance price' means the 
                                average market price of global warming 
                                pollution emission allowances for a 
                                calendar year.
                                    ``(II) Declining emissions cap with 
                                a technology-indexed stop price.--The 
                                term `declining emissions cap with a 
                                technology-indexed stop price' means a 
                                feature of a market-based program for 
                                an industrial sector, or on an economy-
                                wide basis, under which the emissions 
                                cap declines by a fixed percentage each 
                                calendar year or, during any year in 
                                which the annual allowance price 
                                exceeds the technology-indexed stop 
                                price, the emissions cap remains the 
                                same until the occurrence of the 
                                earlier of--
                                            ``(aa) the date on which 
                                        the annual allowance price no 
                                        longer exceeds the technology-
                                        indexed stop price; or
                                            ``(bb) the date on which a 
                                        period of 3 years has elapsed 
                                        during which the emissions cap 
                                        has remained unchanged.
                                    ``(III) Emissions cap.--The term 
                                `emissions cap' means the total number 
                                of global warming pollution emission 
                                allowances issued for a calendar year.
                                    ``(IV) Technology-indexed stop 
                                price.--The term `technology-indexed 
                                stop price' means a price per ton of 
                                global warming pollution emissions 
                                determined annually by the 
                                Administrator that is not less than the 
                                technology-specific average cost of 
                                preventing the emission of 1 ton of 
                                global warming pollutants through 
                                commercial deployment of any available 
                                zero-carbon or low-carbon technologies. 
                                With respect to the electricity sector, 
                                those technologies shall consist of--
                                            ``(aa) wind-generated 
                                        electricity;
                                            ``(bb) photovoltaic-
                                        generated electricity;
                                            ``(cc) geothermal energy;
                                            ``(dd) solar thermally-
                                        generated energy;
                                            ``(ee) wave-based forms of 
                                        energy;
                                            ``(ff) any fossil fuel-
                                        based electric generating 
                                        technology emitting less than 
                                        250 pounds per megawatt hour; 
                                        and
                                            ``(gg) any zero-carbon-
                                        emitting electric generating 
                                        technology that does not 
                                        generate radioactive waste.
                            ``(ii) Implementation.--In implementing any 
                        market-based program under this Act, for the 
                        period prior to January 1, 2020, the 
                        Administrator shall consider the impact on the 
                        economy of the United States of implementing 
                        the program with a declining emissions cap 
                        through the use of a technology-indexed stop 
                        price.
                            ``(iii) Other emitting sectors.--The 
                        Administrator may consider the use of a 
                        declining emissions cap with a technology-
                        indexed stop price, or similar approaches, for 
                        other emitting sectors based on low-carbon or 
                        zero-carbon technologies, including--
                                    ``(I) biofuels;
                                    ``(II) hydrogen power; and
                                    ``(III) other sources of energy and 
                                transportation fuel.
    ``(g) Cost-Effectiveness.--In promulgating regulations under this 
section, the Administrator shall select the most cost-effective options 
for global warming pollution control and emission reduction strategies.

``SEC. 705. CONDITIONS FOR ACCELERATED GLOBAL WARMING POLLUTION 
              EMISSION REDUCTION.

    ``(a) Report on Global Change Events by the Academy.--
            ``(1) In general.--The Administrator shall offer to enter 
        into a contract with the Academy under which the Academy, not 
        later than 2 years after the date of enactment of this title, 
        and every 3 years thereafter, shall submit to Congress and the 
        Administrator a report that describes whether any of the events 
        described in paragraph (2)--
                    ``(A) have occurred or are more likely than not to 
                occur in the foreseeable future; and
                    ``(B) in the judgment of the Academy, are the 
                result of anthropogenic climate change.
            ``(2) Events.--The events referred to in paragraph (1) 
        are--
                    ``(A) the exceedance of an atmospheric 
                concentration of global warming pollutants of 450 parts 
                per million in carbon dioxide equivalent; and
                    ``(B) an increase of global average temperatures in 
                excess of 3.6 degrees Fahrenheit (2 degrees Celsius) 
                above the preindustrial average.
    ``(b) Technology Reports.--
            ``(1) Definition of technologically infeasible.--In this 
        subsection, the term `technologically infeasible', with respect 
        to a technology, means that the technology--
                    ``(A) will not be demonstrated beyond laboratory-
                scale conditions;
                    ``(B) would be unsafe;
                    ``(C) would not reliably reduce global warming 
                pollution emissions; or
                    ``(D) would prevent the activity to which the 
                technology applies from meeting or performing its 
                primary purpose (such as generating electricity or 
                transporting goods or individuals).
            ``(2) Reports.--The Administrator shall offer to enter into 
        a contract with the Academy under which the Academy, not later 
        than 2 years after the date of enactment of this title and 
        every 3 years thereafter, shall submit to Congress and the 
        Administrator a report that describes or analyzes--
                    ``(A) the status of current global warming 
                pollution emission reduction technologies, including--
                            ``(i) technologies for capture and disposal 
                        of global warming pollutants;
                            ``(ii) efficiency improvement technologies;
                            ``(iii) zero-global-warming-pollution-
                        emitting energy technologies; and
                            ``(iv) above- and below-ground biological 
                        sequestration technologies;
                    ``(B) whether any of the requirements under this 
                title (including regulations promulgated under this 
                title) mandate a level of emission control or reduction 
                that, based on available or expected technology, will 
                be technologically infeasible at the time at which the 
                requirements become effective;
                    ``(C) the projected date on which any technology 
                determined to be technologically infeasible will become 
                technologically feasible;
                    ``(D) whether any technology determined to be 
                technologically infeasible cannot reasonably be 
                expected to become technologically feasible prior to 
                calendar year 2050; and
                    ``(E) the costs of available alternative global 
                warming pollution emission reduction strategies that 
                could be used or pursued in lieu of any technologies 
                that are determined to be technologically infeasible.
            ``(3) Report evaluating 2050 milestone.--Not later than 
        December 31, 2037, the Administrator shall offer to enter into 
        a contract with the Academy under which, not later than 
        December 31, 2039, the Academy shall prepare and submit to 
        Congress and the Administrator a report on the appropriateness 
        of the milestone described in section 704(c)(3), taking into 
        consideration--
                    ``(A) information that was not available as of the 
                date of enactment of this title; and
                    ``(B) events that have occurred since that date 
                relating to--
                            ``(i) climate change;
                            ``(ii) climate change technologies; and
                            ``(iii) national and international climate 
                        change commitments.
    ``(c) Additional Items in NAS Report.--In addition to the 
information described in subsection (a)(1) that is required to be 
included in the NAS report, the Academy shall include in the NAS 
report--
            ``(1) an analysis of the trends in annual global warming 
        pollution emissions by the United States and the other 
        countries that collectively account for more than 90 percent of 
        global warming pollution emissions (including country-specific 
        inventories of global warming pollution emissions and facility-
        specific inventories of global warming pollution emissions in 
        the United States);
            ``(2) an analysis of the trends in global warming pollution 
        concentrations (including observed atmospheric concentrations 
        of global warming pollutants);
            ``(3) a description of actual and projected global change 
        impacts that may be caused by anthropogenic global warming 
        pollution emissions, in addition to the events described in 
        subsection (a)(2); and
            ``(4) such other information as the Academy determines to 
        be appropriate.

``SEC. 706. USE OF ALLOWANCES FOR TRANSITION ASSISTANCE AND OTHER 
              PURPOSES.

    ``(a) Regulations Governing Allocation of Allowances for Transition 
Assistance to Individuals and Entities.--
            ``(1) In general.--In implementing any market-based 
        program, the Administrator may promulgate regulations providing 
        for the allocation of global warming pollution emission 
        allowances to the individuals and entities, or for the 
        purposes, specified in subsection (b).
            ``(2) Requirements.--Regulations promulgated under 
        paragraph (1) may, as the Administrator determines to be 
        necessary, provide for the appointment of 1 or more trustees--
                    ``(A) to receive emission allowances for the 
                benefit of households, communities, and other entities 
                described in paragraph (1);
                    ``(B) to sell the emission allowances at fair 
                market value; and
                    ``(C) to distribute the proceeds of any sale of 
                emission allowances to the appropriate beneficiaries.
    ``(b) Allocation for Transition Assistance.--The Administrator may 
allocate emission allowances, in accordance with regulations 
promulgated under subsection (a), to--
            ``(1) communities, individuals, and companies that have 
        experienced disproportionate adverse impacts as a result of--
                    ``(A) the transition to a lower carbon-emitting 
                economy; or
                    ``(B) global warming;
            ``(2) owners and operators of highly energy-efficient 
        buildings, including--
                    ``(A) residential users;
                    ``(B) producers of highly energy-efficient 
                products; and
                    ``(C) entities that carry out energy-efficiency 
                improvement projects pursuant to section 712 that 
                result in consumer-side reductions in electricity use;
            ``(3) entities that will use the allowances for the purpose 
        of carrying out geological sequestration of carbon dioxide 
        produced by an anthropogenic global warming pollution emission 
        source in accordance with requirements established by the 
        Administrator;
            ``(4) such individuals and entities as the Administrator 
        determines to be appropriate, for use in carrying out projects 
        to reduce net carbon dioxide emissions through above-ground and 
        below-ground biological carbon dioxide sequestration (including 
        sequestration in forests, forest soils, agricultural soils, 
        rangeland, or grassland in the United States);
            ``(5) such individuals and entities (including fish and 
        wildlife agencies) as the Administrator determines to be 
        appropriate, for use in carrying out projects to protect and 
        restore ecosystems (including fish and wildlife) affected by 
        climate change; and
            ``(6) manufacturers producing consumer products that result 
        in substantially reduced global warming pollution emissions, 
        for use in funding rebates for purchasers of those products.

``SEC. 707. VEHICLE EMISSION STANDARDS.

    ``(a) Vehicles Under 10,000 Pounds.--
            ``(1) In general.--Not later than January 1, 2010, the 
        Administrator shall promulgate regulations requiring each fleet 
        of automobiles sold by a manufacturer in the United States 
        beginning in model year 2016 to meet the standards for global 
        warming pollution emissions described in paragraph (2).
            ``(2) Emission standards.--The average global warming 
        pollution emissions of a vehicle fleet described in paragraph 
        (1) shall not exceed--
                    ``(A) 205 carbon dioxide equivalent grams per mile 
                for automobiles with--
                            ``(i) a gross vehicle weight of not more 
                        than 8,500 pounds; and
                            ``(ii) a loaded vehicle weight of not more 
                        than 3,750 pounds;
                    ``(B) 332 carbon dioxide equivalent grams per mile 
                for--
                            ``(i) automobiles with--
                                    ``(I) a gross vehicle weight of not 
                                more than 8,500 pounds; and
                                    ``(II) a loaded vehicle weight of 
                                more than 3,750 pounds; and
                            ``(ii) medium-duty passenger vehicles; and
                    ``(C) 405 carbon dioxide equivalent grams per mile 
                for vehicles--
                            ``(i) with a gross vehicle weight of 
                        between 8,501 pounds and 10,000 pounds; and
                            ``(ii) that are not medium-duty passenger 
                        vehicles.
            ``(3) Heightened standards.--After model year 2016, the 
        Administrator may promulgate regulations that increase the 
        stringency of emission standards described in paragraph (2) as 
        necessary to meet the emission reduction goal described in 
        section 704(e)(3).
    ``(b) Highway Vehicles Over 10,000 Pounds.--
            ``(1) In general.--Not later than January 1, 2010, the 
        Administrator shall promulgate regulations requiring each fleet 
        of highway vehicles over 10,000 pounds sold by a manufacturer 
        in the United States beginning in model year 2020 to meet the 
        standards for global warming pollution emissions described in 
        paragraph (2).
            ``(2) Emission standards.--The average global warming 
        pollution emissions of a vehicle fleet described in paragraph 
        (1) shall not exceed--
                    ``(A) 850 carbon dioxide equivalent grams per mile 
                for highway vehicles with a gross vehicle weight rating 
                between 10,001 pounds and 26,000 pounds; and
                    ``(B) 1,050 carbon dioxide equivalent grams per 
                mile for highway vehicles with a gross vehicle weight 
                rating of more than 26,000 pounds.
            ``(3) Heightened standards.--After model year 2020, the 
        Administrator may promulgate regulations that increase the 
        stringency of emission standards described in paragraph (2) as 
        necessary to meet the emission reduction goal described in 
        section 704(a)(1).
    ``(c) Adjustment of Requirements.--Taking into account appropriate 
lead times for vehicle manufacturers, if the Academy determines, 
pursuant to an NAS report, that a vehicle emission standard under this 
section is or will be technologically infeasible as of the effective 
date of the standard, the Administrator may, by regulation, modify the 
requirement to take into account the determination of the Academy.
    ``(d) Study.--
            ``(1) In general.--Not later than January 1, 2008, the 
        Administrator shall enter into a contract with the Academy 
        under which the Academy shall conduct a study of, and submit to 
        the Administrator a report on, the potential contribution of 
        the non-highway portion of the transportation sector toward 
        meeting the emission reduction goal described in section 
        704(a)(1).
            ``(2) Requirements.--The study shall analyze--
                    ``(A) the technological feasibility and cost-
                effectiveness of global warming pollution reductions 
                from the non-highway sector; and
                    ``(B) the overall potential contribution of that 
                sector in terms of emissions, in meeting the emission 
                reduction goal described in section 704(a)(1).

``SEC. 708. EMISSION STANDARDS FOR ELECTRIC GENERATION UNITS.

    ``(a) Initial Standard.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this title, the Administrator shall, by 
        regulation, require each unit that is designed and intended to 
        provide electricity at a unit capacity factor of at least 60 
        percent and that begins operation after December 31, 2011, to 
        meet the standard described in paragraph (2).
            ``(2) Standard.--Beginning on December 31, 2015, a unit 
        described in paragraph (1) shall meet a global warming 
        pollution emission standard that is not higher than the 
        emission rate of a new combined cycle natural gas generating 
        unit.
            ``(3) More stringent requirements.--For the period 
        beginning on January 1 of the calendar year following the 
        effective date of the regulation described in paragraph (1) and 
        ending on December 31, 2029, the Administrator may increase the 
        stringency of the global warming pollution emission standard 
        described in paragraph (1) with respect to electric generation 
        units described in that paragraph.
    ``(b) Final Standard.--Not later than December 31, 2030, the 
Administrator shall require each electric generation unit, regardless 
of when the unit began to operate, to meet the applicable emission 
standard under subsection (a).
    ``(c) Adjustment of Requirements.--If the Academy determines, 
pursuant to section 705, that a requirement of this section is or will 
be technologically infeasible at the time at which the requirement 
becomes effective, the Administrator, may, by regulation, adjust or 
delay the effective date of the requirement as is necessary to take 
into consideration the determination of the Academy.

``SEC. 709. LOW-CARBON GENERATION REQUIREMENT.

    ``(a) Definitions.--In this section:
            ``(1) Base quantity of electricity.--The term `base 
        quantity of electricity' means the total quantity of 
        electricity produced for sale by a covered generator during the 
        calendar year immediately preceding a compliance year from 
        coal, petroleum coke, lignite, or any combination of those 
        fuels.
            ``(2) Covered generator.--The term `covered generator' 
        means an electric generating unit that--
                    ``(A) has a rated capacity of 25 megawatts or more; 
                and
                    ``(B) has an annual fuel input at least 50 percent 
                of which is provided by coal, petroleum coke, lignite, 
                or any combination of those fuels.
            ``(3) Low-carbon generation.--The term `low-carbon 
        generation' means electric energy generated from an electric 
        generating unit at least 50 percent of the annual fuel input of 
        which, in any year--
                    ``(A) is provided by coal, petroleum coke, lignite, 
                biomass, or any combination of those fuels; and
                    ``(B) results in an emission rate into the 
                atmosphere of not more than 250 pounds of carbon 
                dioxide per megawatt-hour (after adjustment for carbon 
                dioxide from the electric generating unit that is 
                geologically sequestered in a geological repository 
                approved by the Administrator pursuant to subsection 
                (e)).
            ``(4) Program.--The term `program' means the low-carbon 
        generation credit trading program established under subsection 
        (d)(1).
    ``(b) Requirement.--
            ``(1) Calendar years 2015 through 2020.--Of the base 
        quantity of electricity produced for sale by a covered 
        generator for a calendar year, the covered generator shall 
        provide a minimum percentage of that base quantity of 
        electricity for the calendar year from low-carbon generation, 
        as specified in the following table:

 
 
 
``Calendar year:                    Minimum annual percentage:
  2015............................  0.5
  2016............................  1.0
  2017............................  2.0
  2018............................  3.0
  2019............................  4.0
  2020............................  5.0

            ``(2) Calendar years 2021 through 2025.--For each of 
        calendar years 2021 through 2025, the Administrator may 
        increase the minimum percentage of the base quantity of 
        electricity from low-carbon generation described in paragraph 
        (1) by up to 2 percentage points from the previous year, as the 
        Administrator determines to be necessary to achieve the 
        emission reduction goal described in section 704(a)(1).
            ``(3) Calendar years 2026 through 2030.--For each of 
        calendar years 2026 through 2030, the Administrator may 
        increase the minimum percentage of the base quantity of 
        electricity from low-carbon generation described in paragraph 
        (1) by up to 3 percentage points from the previous year, as the 
        Administrator determines to be necessary to achieve the 
        emission reduction goal described in section 704(a)(1).
    ``(c) Means of Compliance.--An owner or operator of a covered 
generator shall comply with subsection (b) by--
            ``(1) generating electric energy using low-carbon 
        generation;
            ``(2) purchasing electric energy generated by low-carbon 
        generation;
            ``(3) purchasing low-carbon generation credits issued under 
        the program; or
            ``(4) undertaking a combination of the actions described in 
        paragraphs (1) through (3).
    ``(d) Low-Carbon Generation Credit Trading Program.--
            ``(1) In general.--Not later than January 1, 2008, the 
        Administrator shall establish, by regulation after notice and 
        opportunity for comment, a low-carbon generation trading 
        program to permit an owner or operator of a covered generator 
        that does not generate or purchase enough electric energy from 
        low-carbon generation to comply with subsection (b) to achieve 
        that compliance by purchasing sufficient low-carbon generation 
        credits.
            ``(2) Requirements.--As part of the program, the 
        Administrator shall--
                    ``(A) issue to producers of low-carbon generation, 
                on a quarterly basis, a single low-carbon generation 
                credit for each kilowatt hour of low-carbon generation 
                sold during the preceding quarter; and
                    ``(B) ensure that a kilowatt hour, including the 
                associated low-carbon generation credit, shall be used 
                only once for purposes of compliance with subsection 
                (b).
    ``(e) Enforcement.--An owner or operator of a covered generator 
that fails to comply with subsection (b) shall be subject to a civil 
penalty in an amount equal to the product obtained by multiplying--
            ``(1) the number of kilowatt-hours of electric energy sold 
        to electric consumers in violation of subsection (b); and
            ``(2) the greater of--
                    ``(A) 2.5 cents (as adjusted under subsection (g)); 
                or
                    ``(B) 200 percent of the average market value of 
                those low-carbon generation credits during the year in 
                which the violation occurred.
    ``(f) Exemption.--This section shall not apply for any calendar 
year to an owner or operator of a covered generator that sold less than 
40,000 megawatt-hours of electric energy produced from covered 
generators during the preceding calendar year.
    ``(g) Inflation Adjustment.--Not later than December 31, 2008, and 
annually thereafter, the Administrator shall adjust the amount of the 
civil penalty for each kilowatt-hour calculated under subsection (e)(2) 
to reflect changes for the 12-month period ending on the preceding 
November 30 in the Consumer Price Index for All Urban Consumers 
published by the Bureau of Labor Statistics of the Department of Labor.
    ``(h) Technological Infeasibility.--If the Academy determines, 
pursuant to section 705, that the schedule for compliance described in 
subsection (b) is or will be technologically infeasible for covered 
generators to meet, the Administrator may, by regulation, adjust the 
schedule as the Administrator determines to be necessary to take into 
account the consideration of the determination of the Academy.
    ``(i) Termination of Authority.--This section and the authority 
provided by this section terminate on December 31, 2030.

``SEC. 710. GEOLOGICAL DISPOSAL OF GLOBAL WARMING POLLUTANTS.

    ``(a) Geological Carbon Dioxide Disposal Deployment Projects.--
            ``(1) In general.--The Administrator shall establish a 
        competitive grant program to provide grants to 5 entities for 
        the deployment of projects to geologically dispose of carbon 
        dioxide (referred to in this subsection as `geological disposal 
        deployment projects').
            ``(2) Location.--Each geological disposal deployment 
        project shall be conducted in a geologically distinct location 
        in order to demonstrate the suitability of a variety of 
        geological structures for carbon dioxide disposal.
            ``(3) Components.--Each geological disposal deployment 
        project shall include an analysis of--
                    ``(A) mechanisms for trapping the carbon dioxide to 
                be geologically disposed;
                    ``(B) techniques for monitoring the geologically 
                disposed carbon dioxide;
                    ``(C) public response to the geological disposal 
                deployment project; and
                    ``(D) the permanency of carbon dioxide storage in 
                geological reservoirs.
            ``(4) Requirements.--
                    ``(A) In general.--The Administrator shall 
                establish--
                            ``(i) appropriate conditions for 
                        environmental protection with respect to 
                        geological disposal deployment projects to 
                        protect public health and the environment; and
                            ``(ii) requirements relating to 
                        applications for grants under this subsection.
                    ``(B) Rulemaking.--The establishment of 
                requirements under subparagraph (A) shall not require a 
                rulemaking.
                    ``(C) Minimum requirements.--At a minimum, each 
                application for a grant under this subsection shall 
                include--
                            ``(i) a description of the geological 
                        disposal deployment project proposed in the 
                        application;
                            ``(ii) an estimate of the quantity of 
                        carbon dioxide to be geologically disposed over 
                        the life of the geological disposal deployment 
                        project; and
                            ``(iii) a plan to collect and disseminate 
                        data relating to each geological disposal 
                        deployment project to be funded by the grant.
            ``(5) Partners.--An applicant for a grant under this 
        subsection may carry out a geological disposal deployment 
        project under a pilot program in partnership with 1 or more 
        public or private entities.
            ``(6) Selection criteria.--In evaluating applications under 
        this subsection, the Administrator shall--
                    ``(A) consider the previous experience of each 
                applicant with similar projects; and
                    ``(B) give priority consideration to applications 
                for geological disposal deployment projects that--
                            ``(i) offer the greatest geological 
                        diversity from other projects that have 
                        previously been approved;
                            ``(ii) are located in closest proximity to 
                        a source of carbon dioxide;
                            ``(iii) make use of the most affordable 
                        source of carbon dioxide;
                            ``(iv) are expected to geologically dispose 
                        of the largest quantity of carbon dioxide;
                            ``(v) are combined with demonstrations of 
                        advanced coal electricity generation 
                        technologies;
                            ``(vi) demonstrate the greatest commitment 
                        on the part of the applicant to ensure funding 
                        for the proposed demonstration project and the 
                        greatest likelihood that the demonstration 
                        project will be maintained or expanded after 
                        Federal assistance under this subsection is 
                        completed; and
                            ``(vii) minimize any adverse environmental 
                        effects from the project.
            ``(7) Period of grants.--
                    ``(A) In general.--A geological disposal deployment 
                project funded by a grant under this subsection shall 
                begin construction not later than 3 years after the 
                date on which the grant is provided.
                    ``(B) Term.--The Administrator shall not provide 
                grant funds to any applicant under this subsection for 
                a period of more than 5 years.
            ``(8) Transfer of information and knowledge.--The 
        Administrator shall establish mechanisms to ensure that the 
        information and knowledge gained by participants in the program 
        under this subsection are published and disseminated, including 
        to other applicants that submitted applications for a grant 
        under this subsection.
            ``(9) Schedule.--
                    ``(A) Publication.--Not later than 180 days after 
                the date of enactment of this title, the Administrator 
                shall publish in the Federal Register, and elsewhere as 
                appropriate, a request for applications to carry out 
                geological disposal deployment projects.
                    ``(B) Date for applications.--An application for a 
                grant under this subsection shall be submitted not 
                later than 180 days after the date of publication of 
                the request under subparagraph (A).
                    ``(C) Selection.--After the date by which 
                applications for grants are required to be submitted 
                under subparagraph (B), the Administrator, in a timely 
                manner, shall select, after peer review and based on 
                the criteria under paragraph (6), those geological 
                disposal deployment projects to be provided a grant 
                under this subsection.
    ``(b) Interim Standards.--Not later than 3 years after the date of 
enactment of this title, the Administrator, in consultation with the 
Secretary of Energy, shall, by regulation, establish interim geological 
carbon dioxide disposal standards that address--
            ``(1) site selection;
            ``(2) permitting processes;
            ``(3) monitoring requirements;
            ``(4) public participation; and
            ``(5) such other issues as the Administrator and the 
        Secretary of Energy determine to be appropriate.
    ``(c) Final Standards.--Not later than 6 years after the date of 
enactment of this title, taking into account the results of geological 
disposal deployment projects carried out under subsection (a), the 
Administrator shall, by regulation, establish final geological carbon 
dioxide disposal standards.
    ``(d) Considerations.--In developing standards under subsections 
(b) and (c), the Administrator shall consider the experience in the 
United States in regulating--
            ``(1) underground injection of waste;
            ``(2) enhanced oil recovery;
            ``(3) short-term storage of natural gas; and
            ``(4) long-term waste storage.
    ``(e) Termination of Authority.--This section and the authority 
provided by this section terminate on December 31, 2030.

``SEC. 711. RESEARCH AND DEVELOPMENT.

    ``(a) In General.--The Administrator shall carry out a program to 
perform and support research on global climate change standards and 
processes, with the goals of--
            ``(1) providing scientific and technical knowledge 
        applicable to the reduction of global warming pollutants; and
            ``(2) facilitating implementation of section 704.
    ``(b) Research Program.--
            ``(1) In general.--The Administrator shall carry out, 
        directly or through the use of contracts or grants, a global 
        climate change standards and processes research program.
            ``(2) Research.--
                    ``(A) Contents and priorities.--The specific 
                contents and priorities of the research program shall 
                be determined in consultation with appropriate Federal 
                agencies, including--
                            ``(i) the National Oceanic and Atmospheric 
                        Administration;
                            ``(ii) the National Aeronautics and Space 
                        Administration; and
                            ``(iii) the Department of Energy.
                    ``(B) Types of research.--The research program 
                shall include the conduct of basic and applied 
                research--
                            ``(i) to develop and provide the enhanced 
                        measurements, calibrations, data, models, and 
                        reference material standards necessary to 
                        enable the monitoring of global warming 
                        pollution;
                            ``(ii) to assist in establishing a baseline 
                        reference point for future trading in global 
                        warming pollutants (including the measurement 
                        of progress in emission reductions);
                            ``(iii) for international exchange as 
                        scientific or technical information for the 
                        stated purpose of developing mutually-
                        recognized measurements, standards, and 
                        procedures for reducing global warming 
                        pollution; and
                            ``(iv) to assist in developing improved 
                        industrial processes designed to reduce or 
                        eliminate global warming pollution.
            ``(3) Abrupt climate change research.--
                    ``(A) Definition of abrupt climate change.--In this 
                paragraph, the term `abrupt climate change' means a 
                change in climate that occurs so rapidly or 
                unexpectedly that humans or natural systems may have 
                difficulty adapting to the change.
                    ``(B) Research.--The Administrator shall carry out 
                a program of scientific research on potential abrupt 
                climate change that is designed--
                            ``(i) to develop a global array of 
                        terrestrial and oceanographic indicators of 
                        paleoclimate in order to identify and describe 
                        past instances of abrupt climate change;
                            ``(ii) to improve understanding of 
                        thresholds and nonlinearities in geophysical 
                        systems relating to the mechanisms of abrupt 
                        climate change;
                            ``(iii) to incorporate those mechanisms 
                        into advanced geophysical models of climate 
                        change; and
                            ``(iv) to test the output of those models 
                        against an improved global array of records of 
                        past abrupt climate changes.
    ``(c) Sense of the Senate.--It is the sense of the Senate that 
Federal funds for clean, low-carbon energy research, development, and 
deployment should be increased by at least 100 percent for each year 
during the 10-year period beginning on the date of enactment of this 
title.

``SEC. 712. ENERGY EFFICIENCY PERFORMANCE STANDARD.

    ``(a) Definitions.--In this section:
            ``(1) Electricity savings.--
                    ``(A) In general.--The term `electricity savings' 
                means reductions in end-use electricity consumption 
                relative to consumption by the same customer or at the 
                same new or existing facility in a given year, as 
                defined in regulations promulgated by the Administrator 
                under subsection (e).
                    ``(B) Inclusions.--The term `savings' includes 
                savings achieved as a result of--
                            ``(i) installation of energy-saving 
                        technologies and devices; and
                            ``(ii) the use of combined heat and power 
                        systems, fuel cells, or any other technology 
                        identified by the Administrator that recaptures 
                        or generates energy solely for onsite customer 
                        use.
                    ``(C) Exclusion.--The term `savings' does not 
                include savings from measures that would likely be 
                adopted in the absence of energy-efficiency programs, 
                as determined by the Administrator.
            ``(2) Retail electricity sales.--The term `retail 
        electricity sales' means the total quantity of electric energy 
        sold by a retail electricity supplier to retail customers 
        during the most recent calendar year for which that information 
        is available.
            ``(3) Retail electricity supplier.--The term `retail 
        electricity supplier' means a distribution or integrated 
        utility, or an independent company or entity, that sells 
        electric energy to consumers.
    ``(b) Energy Efficiency Performance Standard.--Each retail 
electricity supplier shall implement programs and measures to achieve 
improvements in energy efficiency and peak load reduction, as verified 
by the Administrator.
    ``(c) Targets.--For calendar year 2008 and each calendar year 
thereafter, the Administrator shall ensure that retail electric 
suppliers annually achieve electricity savings and reduce peak power 
demand and electricity use by retail customers by a percentage that is 
not less than the applicable target percentage specified in the 
following table:

------------------------------------------------------------------------
                                Reduction in peak       Reduction in
       ``Calendar Year               demand            electricity use
------------------------------------------------------------------------
2008........................  .25 percent.........  .25 percent
2009........................  .75 percent.........  .75 percent
2010........................  1.75 percent........  1.5 percent
2011........................  2.75 percent........  2.25 percent
2012........................  3.75 percent........  3.0 percent
2013........................  4.75 percent........  3.75 percent
2014........................  5.75 percent........  4.5 percent
2015........................  6.75 percent........  5.25 percent
2016........................  7.75 percent........  6.0 percent
2017........................  8.75 percent........  6.75 percent
2018........................  9.75 percent........  7.5 percent
2019........................  10.75 percent.......  8.25 percent
2020 and each calendar year   11.75 percent.......  9.0 percent
 thereafter.
------------------------------------------------------------------------

    ``(d) Beginning Date.--For the purpose of meeting the targets 
established under subsection (c), electricity savings shall be 
calculated based on the sum of--
            ``(1) savings realized as a result of actions taken by the 
        retail electric supplier during the specified calendar year; 
        and
            ``(2) cumulative savings realized as a result of 
        electricity savings achieved in all previous calendar years 
        (beginning with calendar year 2006).
    ``(e) Implementing Regulations.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this title, the Administrator shall promulgate 
        regulations to implement the targets established under 
        subsection (c).
            ``(2) Requirements.--The regulations shall establish--
                    ``(A) a national credit system permitting credits 
                to be awarded, bought, sold, or traded by and among 
                retail electricity suppliers;
                    ``(B) a fee equivalent to not less than 4 cents per 
                kilowatt hour for retail energy suppliers that do not 
                meet the targets established under subsection (c); and
                    ``(C) standards for monitoring and verification of 
                electricity use and demand savings reported by the 
                retail electricity suppliers.
            ``(3) Consideration of transmission and distribution 
        efficiency.--In developing regulations under this subsection, 
        the Administrator shall consider whether savings, in whole or 
        part, achieved by retail electricity suppliers by improving the 
        efficiency of electric distribution and use should be eligible 
        for credits established under this section.
    ``(f) Compliance With State Law.--Nothing in this section shall 
supersede or otherwise affect any State or local law requiring or 
otherwise relating to reductions in total annual electricity 
consumption, or peak power consumption, by electric consumers to the 
extent that the State or local law requires more stringent reductions 
than those required under this section.
    ``(g) Voluntary Participation.--The Administrator may--
            ``(1) pursuant to the regulations promulgated under 
        subsection (e)(1), issue a credit to any entity that is not a 
        retail electric supplier if the entity implements electricity 
        savings; and
            ``(2) in a case in which an entity described in paragraph 
        (1) is a nonprofit or educational organization, provide to the 
        entity 1 or more grants in lieu of a credit.

``SEC. 713. RENEWABLE PORTFOLIO STANDARD.

    ``(a) Renewable Energy.--
            ``(1) In general.--The Administrator, in consultation with 
        the Secretary of Energy, shall promulgate regulations defining 
        the types and sources of renewable energy generation that may 
        be carried out in accordance with this section.
            ``(2) Inclusions.--In promulgating regulations under 
        paragraph (1), the Administrator shall include of all types of 
        renewable energy (as defined in section 203(b) of the Energy 
        Policy Act of 2005 (42 U.S.C. 15852(b))) other than energy 
        generated from--
                    ``(A) municipal solid waste;
                    ``(B) wood contaminated with plastics or metals; or
                    ``(C) tires.
    ``(b) Renewable Energy Requirement.--Of the base quantity of 
electricity sold by each retail electric supplier to electric consumers 
during a calendar year, the quantity generated by renewable energy 
sources shall be not less than the following percentages:

 
 
 
``Calendar year:                    Minimum annual percentage:
  2008 through 2009...............  5
  2010 through 2014...............  10
  2015 through 2019...............  15
  2020 and subsequent years.......  20

    ``(c) Renewable Energy Credit Program.--Not later than 1 year after 
the date of enactment of this title, the Administrator shall 
establish--
            ``(1) a program to issue, establish the value of, monitor 
        the sale or exchange of, and track renewable energy credits; 
        and
            ``(2) penalties for any retail electric supplier that does 
        not comply with this section.
    ``(d) Prohibition on Double Counting.--A renewable energy credit 
issued under subsection (c)--
            ``(1) may be counted toward meeting the requirements of 
        subsection (b) only once; and
            ``(2) shall vest with the owner of the system or facility 
        that generates the renewable energy that is covered by the 
        renewable energy credit, unless the owner explicitly transfers 
        the renewable energy credit.
    ``(e) Sale Under Purpa Contract.--If the Administrator, after 
consultation with the Secretary of Energy, determines that a renewable 
energy generator is selling electricity to comply with this section to 
a retail electric supplier under a contract subject to section 210 of 
the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 824a-
3), the retail electric supplier shall be treated as the generator of 
the electric energy for the purposes of this title for the duration of 
the contract.
    ``(f) State Programs.--Nothing in this section precludes any State 
from requiring additional renewable energy generation under any State 
renewable energy program.
    ``(g) Voluntary Participation.--The Administrator may issue a 
renewable energy credit pursuant to subsection (c) to any entity that 
is not subject to this section only if the entity applying for the 
renewable energy credit meets the terms and conditions of this section 
to the same extent as retail electric suppliers subject to this 
section.

``SEC. 714. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION OF 
              CARBON.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of title, the Secretary of Agriculture, with the concurrence 
of the Administrator, shall establish standards for accrediting 
certified reductions in the emission of carbon dioxide through above-
ground and below-ground biological sequestration activities.
    ``(b) Requirements.--The standards shall include--
            ``(1) a national biological carbon storage baseline or 
        inventory; and
            ``(2) measurement, monitoring, and verification guidelines 
        based on--
                    ``(A) measurement of increases in carbon storage in 
                excess of the carbon storage that would have occurred 
                in the absence of a new management practice designed to 
                achieve biological sequestration of carbon;
                    ``(B) comprehensive carbon accounting that--
                            ``(i) reflects sustained net increases in 
                        carbon reservoirs; and
                            ``(ii) takes into account any carbon 
                        emissions resulting from disturbance of carbon 
                        reservoirs in existence as of the date of 
                        commencement of any new management practice 
                        designed to achieve biological sequestration of 
                        carbon;
                    ``(C) adjustments to account for--
                            ``(i) emissions of carbon that may result 
                        at other locations as a result of the impact of 
                        the new biological sequestration management 
                        practice on timber supplies; or
                            ``(ii) potential displacement of carbon 
                        emissions to other land owned by the entity 
                        that carries out the new biological 
                        sequestration management practice; and
                    ``(D) adjustments to reflect the expected carbon 
                storage over various time periods, taking into account 
                the likely duration of the storage of carbon in a 
                biological reservoir.
    ``(c) Updating of Standards.--Not later than 3 years after the date 
of establishment of the standards under subsection (a), and every 3 
years thereafter, the Secretary of Agriculture shall update the 
standards to take into account the most recent scientific information.

``SEC. 715. GLOBAL WARMING POLLUTION REPORTING.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this title, and annually thereafter, any entity considered 
to be a major stationary source (as defined in section 169A(g)) shall 
submit to the Administrator a report describing the emissions of global 
warming pollutants from the entity for the preceding calendar year.
    ``(b) Voluntary Reporting.--An entity that is not described in 
subsection (a) may voluntarily report the emissions of global warming 
pollutants from the entity to the Administrator.
    ``(c) Requirements for Reports.--
            ``(1) Expression of measurements.--Each global warming 
        pollution report submitted under this section shall express 
        global warming pollution emissions in--
                    ``(A) metric tons of each global warming pollutant; 
                and
                    ``(B) metric tons of the carbon dioxide equivalent 
                of each global warming pollutant.
            ``(2) Electronic format.--The information contained in a 
        report submitted under this section shall be reported 
        electronically to the Administrator in such form and to such 
        extent as may be required by the Administrator.
            ``(3) De minimis exemption.--The Administrator may specify 
        the level of global warming pollution emissions from a source 
        within a facility that shall be considered to be a de minimis 
        exemption from the requirement to comply with this section.
    ``(d) Public Availability of Information.--Not later than March 1 
of the year after which the Administrator receives a report under this 
subsection from an entity, and annually thereafter, the Administrator 
shall make the information reported under this section available to the 
public through the Internet.
    ``(e) Protocols and Methods.--The Administrator shall, by 
regulation, establish protocols and methods to ensure completeness, 
consistency, transparency, and accuracy of data on global warming 
pollution emissions submitted under this section.
    ``(f) Enforcement.--Regulations promulgated under this section may 
be enforced pursuant to section 113 with respect to any person that--
            ``(1) fails to submit a report under this section; or
            ``(2) otherwise fails to comply with those regulations.

``SEC. 716. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES.

    ``(a) Definitions.--In this section:
            ``(1) Clean energy technology.--The term `clean energy 
        technology' means an energy supply or end-use technology that, 
        over the lifecycle of the technology and compared to a similar 
        technology already in commercial use in any developing 
        country--
                    ``(A) is reliable; and
                    ``(B) results in reduced emissions of global 
                warming pollutants.
            ``(2) Developing country.--
                    ``(A) In general.--The term `developing country' 
                means any country not listed in Annex I of the United 
                Nations Framework Convention on Climate Change, done at 
                New York on May 9, 1992.
                    ``(B) Inclusion.--The term `developing country' may 
                include a country with an economy in transition, as 
                determined by the Secretary.
            ``(3) Task force.--The term `Task Force' means the Task 
        Force on International Clean, Low-Carbon Energy Cooperation 
        established under subsection (b)(1).
    ``(b) Task Force.--
            ``(1) Establishment.--Not later than 90 days after the date 
        of enactment of this title, the President shall establish a 
        task force to be known as the `Task Force on International 
        Clean, Low Carbon Energy Cooperation'.
            ``(2) Composition.--The Task Force shall be composed of--
                    ``(A) the Administrator and the Secretary of State, 
                who shall serve jointly as Co-Chairpersons; and
                    ``(B) representatives, appointed by the head of the 
                respective Federal agency, of--
                            ``(i) the Department of Commerce;
                            ``(ii) the Department of the Treasury;
                            ``(iii) the United States Agency for 
                        International Development;
                            ``(iv) the Export-Import Bank;
                            ``(v) the Overseas Private Investment 
                        Corporation;
                            ``(vi) the Office of United States Trade 
                        Representative; and
                            ``(vii) such other Federal agencies as are 
                        determined to be appropriate by the President.
    ``(c) Duties.--
            ``(1) Initial strategy.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this title, the Task Force shall 
                develop and submit to the President an initial 
                strategy--
                            ``(i) to support the development and 
                        implementation of programs and policies in 
                        developing countries to promote the adoption of 
                        clean, low-carbon energy technologies and 
                        energy-efficiency technologies and strategies, 
                        with an emphasis on those developing countries 
                        that are expected to experience the most 
                        significant growth in global warming pollution 
                        emissions over the 20-year period beginning on 
                        the date of enactment of this title; and
                            ``(ii)(I) open and expand clean, low-carbon 
                        energy technology markets; and
                            ``(II) facilitate the export of that 
                        technology to developing countries.
                    ``(B) Submission to congress.--On receipt of the 
                initial strategy from the Task Force under subparagraph 
                (A), the President shall submit the initial strategy to 
                Congress.
            ``(2) Final strategy.--Not later than 2 years after the 
        date of submission of the initial strategy under paragraph (1), 
        and every 2 years thereafter--
                    ``(A) the Task Force shall--
                            ``(i) review and update the initial 
                        strategy; and
                            ``(ii) report the results of the review and 
                        update to the President; and
                    ``(B) the President shall submit to Congress a 
                final strategy.
            ``(3) Performance criteria.--The Task Force shall develop 
        and submit to the Administrator performance criteria for use in 
        the provision of assistance under this section.
    ``(d) Provision of Assistance.--The Administrator may--
            ``(1) provide assistance to developing countries for use in 
        carrying out activities that are consistent with the priorities 
        established in the final strategy; and
            ``(2) establish a pilot program that provides financial 
        assistance for qualifying projects (as determined by the 
        Administrator) in accordance with--
                    ``(A) the final strategy submitted under subsection 
                (c)(2)(B); and
                    ``(B) any performance criteria developed by the 
                Task Force under subsection (c)(3).

``SEC. 717. PARAMOUNT INTEREST WAIVER.

    ``(a) In General.--If the President determines that a national 
security emergency exists and, in light of information that was not 
available as of the date of enactment of this title, that it is in the 
paramount interest of the United States to modify any requirement under 
this title to minimize the effects of the emergency, the President may, 
after opportunity for public notice and comment, temporarily adjust, 
suspend, or waive any regulations promulgated pursuant to this title to 
achieve that minimization.
    ``(b) Consultation.--In making an emergency determination under 
subsection (a), the President shall, to the maximum extent practicable, 
consult with and take into account any advice received from--
            ``(1) the Academy;
            ``(2) the Secretary of Energy; and
            ``(3) the Administrator.
    ``(c) Judicial Review.--An emergency determination under subsection 
(a) shall be subject to judicial review under section 307.

``SEC. 718. EFFECT ON OTHER LAW.

    ``Nothing in this title--
            ``(1) affects the ability of a State to take State actions 
        to further limit climate change (except that section 209 shall 
        apply to standards for vehicles); and
            ``(2) except as expressly provided in this title--
                    ``(A) modifies or otherwise affects any requirement 
                of this Act in effect on the day before the date of 
                enactment of this title; or
                    ``(B) relieves any person of the responsibility to 
                comply with this Act.''.

SEC. 3. RENEWABLE CONTENT OF GASOLINE.

    Section 211(o) of the Clean Air Act (as amended by section 1501 of 
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1067)) is 
amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (E); and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) Low-carbon renewable fuel.--The term `low-
                carbon renewable fuel' means renewable fuel the use of 
                which, on a full fuel cycle, per-mile basis, and as 
                compared with the use of gasoline, achieves a reduction 
                in global warming pollution emissions of 75 percent or 
                more.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(i), by inserting ``and low-
                carbon renewable fuel'' after ``renewable fuel''; and
                    (B) in subparagraph (B)--
                            (i) in clause (iv), by striking ``(iv) 
                        Minimum applicable volume.--For the purpose of 
                        subparagraph (A), the applicable volume'' and 
                        inserting the following:
                            ``(iv) Minimum applicable volume of 
                        renewable fuel.--For the purpose of 
                        subparagraph (A), the minimum applicable volume 
                        of renewable fuel''; and
                            (ii) by adding at the end the following:
                            ``(v) Minimum applicable volume of low-
                        carbon renewable fuel.--For the purpose of 
                        subparagraph (A), the minimum applicable volume 
                        of low-carbon renewable fuel for calendar year 
                        2015 and each calendar year thereafter shall be 
                        5,000,000,000 gallons.''.

SEC. 4. ENFORCEMENT AND JUDICIAL REVIEW.

    (a) Federal Enforcement.--Section 113 of the Clean Air Act (42 
U.S.C. 7413) is amended--
            (1) in subsection (a)(3), by striking ``or title VI,'' and 
        inserting ``title VI, or title VII,'';
            (2) in subsection (b)(2), by striking ``or title VI,'' and 
        inserting ``title VI, or title VII,'';
            (3) in subsection (c)--
                    (A) in the first sentence of paragraph (1), by 
                striking ``or title VI (relating to stratospheric ozone 
                control),'' and inserting ``title VI (relating to 
                stratospheric ozone control), or title VII (relating to 
                global warming pollution emission reductions),''; and
                    (B) in the first sentence of paragraph (3), by 
                striking ``or VI'' and inserting ``VI, or VII'';
            (4) in subsection (d)(1)(B), by striking ``or VI'' and 
        inserting ``VI, or VII''; and
            (5) in the first sentence of subsection (f), by striking 
        ``or VI'' and inserting ``VI, or VII''.
    (b) Establishment of Standards.--Section 202 of the Clean Air Act 
(42 U.S.C. 7521) is amended--
            (1) by redesignating the second subsection (f) (as added by 
        section 207(b) of Public Law 101-549 (104 Stat. 2482)) as 
        subsection (n); and
            (2) by inserting after subsection (n) (as redesignated by 
        paragraph (1)) the following:
    ``(o) Global Warming Pollution Emission Reductions.--
            ``(1) In general.--Not later than January 1, 2010, the 
        Administrator shall promulgate regulations in accordance with 
        subsection (a) and section 707 to require manufacturers of 
        motor vehicles to meet the vehicle emission standards 
        established under subsections (a) and (b) of section 707.
            ``(2) Effective date.--The regulations promulgated under 
        paragraph (1) shall take effect with respect to motor vehicles 
        sold by a manufacturer beginning in model year 2016.''.
    (c) Administrative Proceedings and Judicial Review.--Section 307 of 
the Clean Air Act (42 U.S.C. 7607) is amended--
            (1) in subsection (b)(1)--
                    (A) in the first sentence--
                            (i) by striking ``section 111,,'' and 
                        inserting ``section 111,''; and
                            (ii) by inserting ``any emission standard 
                        or requirement issued pursuant to title VII,'' 
                        after ``under section 120,''; and
                    (B) in the second sentence, by striking ``section 
                112,,'' and inserting ``section 112,''; and
            (2) in subsection (d)(1)--
                    (A) in subparagraph (T), by striking ``, and'' at 
                the end;
                    (B) in subparagraph (U), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(V) the promulgation or revision of any regulation under 
        title VII (relating to global warming pollution).''.

SEC. 5. FEDERAL FLEET FUEL ECONOMY.

    Section 32917 of title 49, United States Code, is amended by adding 
at the end the following:
            ``(3) New vehicles.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each passenger vehicle purchased, or 
                leased for a period of at least 60 consecutive days, by 
                an Executive agency after the date of enactment of this 
                paragraph shall be as fuel-efficient as practicable.
                    ``(B) Waiver.--In an emergency situation, an 
                Executive agency may submit to Congress a written 
                request for a waiver of the requirement under paragraph 
                (1).''.

SEC. 6. INTERNATIONAL NEGOTIATIONS AND TRADE RESTRICTIONS.

    It is the sense of the Senate that the United States should act to 
reduce the health, environmental, economic, and national security risks 
posed by global climate change, and foster sustained economic growth 
through a new generation of technologies, by--
            (1) participating in negotiations under the United Nations 
        Framework Convention on Climate Change, done at New York May 9, 
        1992, and leading efforts in other international forums, with 
        the objective of securing participation of the United States in 
        agreements that--
                    (A) advance and protect the economic and national 
                security interests of the United States;
                    (B) establish mitigation commitments by all 
                countries that are major emitters of global warming 
                pollution, in accordance with the principle of ``common 
                but differentiated responsibilities'';
                    (C) establish flexible international mechanisms to 
                minimize the cost of efforts by participating 
                countries; and
                    (D) achieve a significant long-term reduction in 
                global warming pollution emissions; and
            (2) establishing a bipartisan Senate observation group, the 
        members of which should be designated by the Chairman and 
        Ranking Member of the Committee on Foreign Relations of the 
        Senate, and which should include the Chairman and Ranking 
        Member of the Committee on Environment and Public Works of the 
        Senate--
                    (A) to monitor any international negotiations on 
                climate change; and
                    (B) to ensure that the advice and consent function 
                of the Senate is exercised in a manner to facilitate 
                timely consideration of any applicable treaty submitted 
                to the Senate.

SEC. 7. REPORT ON TRADE AND INNOVATION EFFECTS.

    Not later than 2 years after the date of enactment of this Act, 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 (referred to in 
this section as the ``Secretary''), shall prepare and submit to 
Congress a report on the trade, economic, and technology innovation 
effects of the failure of the United States to adopt measures that 
require or result in a reduction in total global warming pollution 
emissions in the United States, in accordance with the goals for the 
United States under the United Nations Framework Convention on Climate 
Change, done at New York on May 9, 1992.

SEC. 8. 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 would have in terms of 
        net changes in global warming pollution emissions; and
            (2) the ways in which climate changes may affect the action 
        or project in the short term and the long term.

SEC. 9. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE CHANGE RISKS.

    (a) Regulations.--Not later than 2 years after the date of 
enactment of this Act, the Securities and Exchange Commission (referred 
to in this section as the ``Commission'') shall promulgate regulations 
in accordance with 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 because of the net 
        global warming pollution 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 Commission shall enter into an agreement with the Financial 
Accounting Standards Board, or another appropriate organization that 
establishes voluntary standards, 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 Commission shall issue an 
        interpretive release clarifying that under items 101 and 303 of 
        Regulation S-K of the Commission under part 229 of title 17, 
        Code of Federal Regulations (as in effect on the date of 
        enactment of this Act)--
                    (A) the commitments of the United States to reduce 
                emissions of global warming pollution under the United 
                Nations Framework Convention on Climate Change, done at 
                New York on May 9, 1992, 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) shall remain in effect until the 
        effective date of the final regulations promulgated under 
        subsection (a).
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