II 

109TH CONGRESS 

1ST SESSION S. 388 

To amend the Energy Policy Act of 1992 to direct the Secretary of Energy 

to carry out activities that promote the adoption of technologies that 

reduce greenhouse gas intensity and to provide credit-based financial 

assistance and investment protection for projects that employ advanced 

climate technologies or systems, to provide for the establishment of 

a national greenhouse gas registry, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 15, 2005 

Mr. HAGEL (for himself, Mr. ALEXANDER, Mr. CRAIG, and Mrs. DOLE) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL

To amend the Energy Policy Act of 1992 to direct the 

Secretary of Energy to carry out activities that promote 

the adoption of technologies that reduce greenhouse gas 

intensity and to provide credit-based financial assistance 

and investment protection for projects that employ advanced climate technologies or systems, to provide for 

the establishment of a national greenhouse gas registry, 

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Climate Change Tech3 nology Deployment and Infrastructure Credit Act of 

4 2005’’. 

5 SEC. 2. GREENHOUSE GAS INTENSITY REDUCING TECH6 NOLOGY STRATEGIES. 

7 Title XVI of the Energy Policy Act of 1992 (42 

8 U.S.C. 13381 et seq.) is amended by adding at the end 

9 the following: 

10 ‘‘SEC. 1610. GREENHOUSE GAS INTENSITY REDUCING 

11 STRATEGIES. 

12 ‘‘(a) DEFINITIONS.—In this section: 

13 ‘‘(1) CARBON SEQUESTRATION.—The term ‘car14 bon sequestration’ means the capture of carbon diox15 ide through terrestrial, geological, biological, or 

16 other means, which prevents the release of carbon 

17 dioxide into the atmosphere. 

18 ‘‘(2) COMMITTEE.—The term ‘Committee’ 

19 means the Interagency Coordinating Committee on 

20 Climate Change Technology established under sub21 section (c)(1). 

22 ‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse 

23 gas’ means carbon dioxide, methane, nitrous oxide, 

24 hydrofluorocarbons, perfluorocarbons, and sulfur 

25 hexafluoride. 
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1 ‘‘(4) GREENHOUSE GAS INTENSITY.—The term 

2 ‘greenhouse gas intensity’ means the ratio of green3 house gas emissions to economic output. 

4 ‘‘(5) NATIONAL LABORATORY.—The term ‘Na5 tional Laboratory’ means a laboratory owned by the 

6 Department of Energy, including the following: 

7 ‘‘(A) Argonne National Laboratory. 

8 ‘‘(B) Idaho National Laboratory. 

9 ‘‘(C) Brookhaven National Laboratory. 

10 ‘‘(D) Oak Ridge National Laboratory. 

11 ‘‘(E) Los Alamos National Laboratory. 

12 ‘‘(F) Sandia National Laboratory. 

13 ‘‘(G) Lawrence Livermore National Lab14 oratory. 

15 ‘‘(H) National Energy Technology Labora16 tory. 

17 ‘‘(I) National Renewable Energy Labora18 tory. 

19 ‘‘(J) Pacific Northwest National Labora20 tory. 

21 ‘‘(6) WORKING GROUP.—The term ‘Working 

22 Group’ means the Climate Change Technology 

23 Working Group established under subsection (g)(1). 

24 ‘‘(b) OFFICE OF SCIENCE AND TECHNOLOGY POLICY

25 STRATEGY.— 
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1 ‘‘(1) IN GENERAL.—Based on the recommenda2 tions of the report submitted under subsection 

3 (f)(2), the Director of the Office of Science and 

4 Technology Policy shall develop a national strategy 

5 to promote greenhouse gas intensity reducing tech6 nologies and practices developed through research 

7 and development programs conducted by National 

8 Laboratories, other Federal research facilities, uni9 versities, and the private sector. 

10 ‘‘(2) REPORT.—The Director of the Office of 

11 Science and Technology Policy shall annually submit 

12 to the President and make available to the public a 

13 report on the activities carried out in furtherance of 

14 the strategy developed under paragraph (1). 

15 ‘‘(c) INTERAGENCY COORDINATING COMMITTEE ON

16 CLIMATE CHANGE TECHNOLOGY.— 

17 ‘‘(1) IN GENERAL.—Not later than 180 days 

18 after the date on which the first report is submitted 

19 under subsection (b)(2), the Secretary shall establish 

20 an Interagency Coordinating Committee on Climate 

21 Change Technology to coordinate Federal climate 

22 change activities and programs carried out in fur23 therance of the strategy developed under subsection 

24 (b)(1). 
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1 ‘‘(2) MEMBERSHIP.—The Committee shall be 

2 composed of at least 6 members, including— 

3 ‘‘(A) the Secretary; 

4 ‘‘(B) the Secretary of Commerce; 

5 ‘‘(C) the Chairman of the Council on Envi6 ronmental Quality; 

7 ‘‘(D) the Secretary of Agriculture; 

8 ‘‘(E) the Administrator of the Environ9 mental Protection Agency; and 

10 ‘‘(F) the Secretary of Transportation. 

11 ‘‘(d) CLIMATE CHANGE SCIENCE PROGRAM AND CLI12 MATE CHANGE TECHNOLOGY PROGRAM.— 

13 ‘‘(1) CLIMATE CHANGE SCIENCE PROGRAM.—

14 Not later than 180 days after the date on which the 

15 first report is submitted under subsection (b)(2), the 

16 Secretary of Commerce, in cooperation with the 

17 Committee, shall establish as a permanent program 

18 within the Department of Commerce the Climate 

19 Change Science Program to assist the Committee in 

20 the interagency coordination of climate change 

21 science research and related activities, including— 

22 ‘‘(A) the assessments of the state of knowl23 edge on climate change; and 
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1 ‘‘(B) carrying out supporting studies, plan2 ning, and analyses of the science of climate 

3 change. 

4 ‘‘(2) CLIMATE CHANGE TECHNOLOGY PRO5 GRAM.—Not later than 180 days after the date on 

6 which the first report is submitted under subsection 

7 (b)(2), the Secretary, in cooperation with the Com8 mittee, shall establish as a permanent program with9 in the Department of Energy, the Climate Change 

10 Technology Program to assist the Committee in the 

11 interagency coordination of climate change tech12 nology research, development, demonstration, and 

13 deployment to reduce greenhouse gas intensity. 

14 ‘‘(e) TECHNOLOGY INVENTORY.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall con16 duct an inventory and evaluation of greenhouse gas 

17 intensity reducing technologies that have been devel18 oped, or are under development, by the National 

19 Laboratories to determine which technologies are 

20 suitable for commercialization and deployment. 

21 ‘‘(2) REPORT.—Not later than 180 days after 

22 the completion of the inventory under paragraph (1), 

23 the Secretary shall submit to the Secretary of Com24 merce and Congress a report that includes the re-
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1 sults of the completed inventory and any rec2 ommendations of the Secretary. 

3 ‘‘(3) USE.—The Secretary, in consultation with 

4 the Secretary of Commerce, shall use the results of 

5 the inventory as guidance in the commercialization 

6 of greenhouse gas intensity reducing technologies. 

7 ‘‘(f) GREENHOUSE GAS INTENSITY REDUCING TECH8 NOLOGY STUDY.— 

9 ‘‘(1) STUDY.—As soon as practicable after the 

10 date of enactment of this section, the Committee 

11 shall conduct and submit to the Secretary a study 

12 on— 

13 ‘‘(A) the commercialization and diffusion 

14 of new and existing technologies to reduce 

15 greenhouse gas intensity; and 

16 ‘‘(B) ways to increase the development and 

17 deployment of cost-effective technologies and 

18 practices. 

19 ‘‘(2) REPORT.—Not later than 180 days after 

20 the completion of the study under paragraph (1), the 

21 Secretary shall submit to Congress and the Director 

22 of the Office of Science and Technology Policy a re23 port that describes— 

24 ‘‘(A) the results of the study; and 
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1 ‘‘(B) any recommendations of the Com2 mittee to— 

3 ‘‘(i) increase commercialization of the 

4 technologies and practices described in 

5 paragraph (1); and 

6 ‘‘(ii) promote the long-term commer7 cialization and deployment of those tech8 nologies and practices. 

9 ‘‘(g) CLIMATE CHANGE TECHNOLOGY WORKING

10 GROUP.— 

11 ‘‘(1) IN GENERAL.—The Secretary, in consulta12 tion with the Committee, shall establish a Climate 

13 Change Technology Working Group to identify 

14 major statutory, regulatory, and economic barriers 

15 to the commercialization of greenhouse gas intensity 

16 reducing technologies and practices. 

17 ‘‘(2) COMPOSITION.—The Working Group shall 

18 be composed of the following members, to be ap19 pointed by the Secretary, in consultation with the 

20 Committee: 

21 ‘‘(A) 1 representative from each National 

22 Laboratory. 

23 ‘‘(B) 3 members shall be representatives of 

24 energy-producing industries. 
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1 ‘‘(C) 3 members shall represent major en2 ergy-consuming industries. 

3 ‘‘(D) 3 members shall represent groups 

4 that represent end-use energy and other con5 sumers. 

6 ‘‘(E) 3 members shall be employees of the 

7 Federal Government who are experts in energy 

8 technology, intellectual property, tax, and regu9 lation. 

10 ‘‘(F) 3 members shall be representatives of 

11 universities with expertise in energy technology 

12 development that are recommended by the Na13 tional Academy of Engineering. 

14 ‘‘(3) REPORT.—Not later than 1 year after the 

15 date of enactment of this section and annually there16 after, the Working Group shall submit to the Com17 mittee a report that describes— 

18 ‘‘(A) the findings of the Working Group; 

19 and 

20 ‘‘(B) any recommendations of the Working 

21 Group for the removal of barriers to commer22 cialization and increasing the use of greenhouse 

23 gas intensity reducing technologies. 

24 ‘‘(h) GREENHOUSE GAS INTENSITY REDUCING

25 TECHNOLOGY DEPLOYMENT.— 
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1 ‘‘(1) IN GENERAL.—Based on the strategy de2 veloped under subsection (b)(1), the technology in3 ventory conducted under subsection (e)(1), and the 

4 greenhouse gas intensity reducing technology study 

5 report submitted under subsection (e)(2), the Com6 mittee shall develop a program for implementation 

7 by the Climate Credit Board established under sec8 tion 1611(b)(2)(A) that would provide for the re9 moval of domestic barriers to the deployment of 

10 greenhouse gas intensity reducing technologies. 

11 ‘‘(2) REQUIREMENTS.—In developing the pro12 gram under paragraph (1), the Committee shall con13 sider— 

14 ‘‘(A) the cost-effectiveness of the tech15 nology; 

16 ‘‘(B) fiscal and regulatory barriers; 

17 ‘‘(C) statutory barriers; and 

18 ‘‘(D) intellectual property issues. 

19 ‘‘(3) REPORT.—Not later than 1 year after the 

20 date of enactment of this section, the Committee 

21 shall submit to the President and Congress a report 

22 that— 

23 ‘‘(A) identifies the barriers to, and the 

24 commercial risks associated with, the deploy-
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1 ment of greenhouse gas intensity reducing tech2 nologies; 

3 ‘‘(B) includes a comprehensive plan for 

4 carrying out eligible projects with Federal fi5 nancial assistance under section 1611; and 

6 ‘‘(C) describes the program developed 

7 under paragraph (1). 

8 ‘‘(i) PROCEDURES FOR CALCULATING, MONITORING, 

9 AND ANALYZING GREENHOUSE GAS INTENSITY.— 

10 ‘‘(1) IN GENERAL.—Using the guidelines issued 

11 under section 1605(b), the Committee, in collabora12 tion with the Administrator of the Energy Informa13 tion Administration and the National Institute of 

14 Standards and Technology, shall develop and pro15 pose standards and best practices for calculating, 

16 monitoring, and analyzing greenhouse gas intensity. 

17 ‘‘(2) CONTENT.—The standards and best prac18 tices shall address measurement of greenhouse gas 

19 intensity by industry sector. 

20 ‘‘(3) APPLICABLE LAW.—To ensure that high 

21 quality information is produced, the standards and 

22 best practices developed under paragraph (1) shall 

23 conform to the guidelines established under section 

24 515 of the Treasury and General Government Ap25 propriations Act, 2001 (commonly known as the 
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1 ‘Data Quality Act’) (44 U.S.C. 3516 note; 114 Stat. 

2 2763A–1543), as enacted into law by section 1(a)(3) 

3 of Public Law 106–554. 

4 ‘‘(j) DEMONSTRATION PROJECTS.— 

5 ‘‘(1) IN GENERAL.—The Secretary shall con6 duct and participate in demonstration projects ap7 proved by the Committee, including demonstration 

8 projects relating to— 

9 ‘‘(A) coal gasification and coal liquefaction; 

10 ‘‘(B) carbon sequestration; 

11 ‘‘(C) cogeneration technology initiatives; 

12 ‘‘(D) advanced nuclear power projects; 

13 ‘‘(E) lower emission transportation; 

14 ‘‘(F) renewable energy; and 

15 ‘‘(G) transmission upgrades. 

16 ‘‘(2) CRITERIA.—The Committee shall approve 

17 a demonstration project under paragraph (1) if the 

18 proposed demonstration project would— 

19 ‘‘(A) increase the reduction of the green20 house gas intensity to levels below that which 

21 would be achieved by technologies being used in 

22 the United States as of the date of enactment 

23 of this section; 

24 ‘‘(B) maximize the potential return on 

25 Federal investment; 
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1 ‘‘(C) demonstrate distinct roles in public2 private partnerships; 

3 ‘‘(D) produce a large-scale reduction of 

4 greenhouse gas intensity if commercialization 

5 occurred; and 

6 ‘‘(E) support a diversified portfolio to miti7 gate the uncertainty associated with a single 

8 technology. 

9 ‘‘(k) COOPERATIVE RESEARCH AND DEVELOPMENT

10 AGREEMENTS.—In carrying out greenhouse gas intensity 

11 reduction research and technology deployment, the Sec12 retary may enter into cooperative research and develop13 ment agreements under section 12 of the Stevenson14 Wydler Technology Innovation Act of 1980 (15 U.S.C. 

15 3710a). 

16 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated such sums as are nec18 essary to carry out this section. 

19 ‘‘(m) TERMINATION OF AUTHORITY.—The authority 

20 provided by this section terminates effective December 31, 

21 2010.’’. 

22 SEC. 3. CLIMATE INFRASTRUCTURE CREDIT. 

23 Title XVI of the Energy Policy Act of 1992 (42 

24 (U.S.C. 13381 et seq.) (as amended by section 2) is 

25 amended by adding at the end the following: 
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1 ‘‘SEC. 1611. CLIMATE INFRASTRUCTURE CREDIT. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) ADVANCED CLIMATE TECHNOLOGY OR SYS4 TEM.—The term ‘advanced climate technology or 

5 system’ means a climate technology or system that 

6 is not in general usage as of the date of enactment 

7 of this section. 

8 ‘‘(2) BOARD.—The term ‘Board’ means the Cli9 mate Credit Board established under subsection 

10 (b)(2)(A). 

11 ‘‘(3) DIRECT LOAN.—The term ‘direct loan’ has 

12 the meaning given the term in section 502 of the 

13 Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 

14 ‘‘(4) ELIGIBLE PROJECT.—The term ‘eligible 

15 project’ means a demonstration project that is ap16 proved under section 1610(j)(1). 

17 ‘‘(5) ELIGIBLE PROJECT COST.—The term ‘eli18 gible project cost’ means any amount incurred for an 

19 eligible project that is paid by, or on behalf of, an 

20 obligor, including the costs of— 

21 ‘‘(A) pre-construction activities, includ22 ing— 

23 ‘‘(i) detailed project engineering and 

24 design work; 

25 ‘‘(ii) environmental reviews and per26 mitting; and 
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1 ‘‘(iii) other pre-construction activities, 

2 as determined by the Secretary; 

3 ‘‘(B) construction activities, including— 

4 ‘‘(i) the acquisition of capital equip5 ment; 

6 ‘‘(ii) construction management; and 

7 ‘‘(iii) construction contingencies; and 

8 ‘‘(C) acquiring land (including any im9 provements to the land) relating to the eligible 

10 project; and 

11 ‘‘(D) financing the eligible project, includ12 ing— 

13 ‘‘(i) providing capitalized interest nec14 essary to meet market requirements; 

15 ‘‘(ii) maintaining reasonably required 

16 reserve funds; 

17 ‘‘(iii) capital issuance expenses; and 

18 ‘‘(iv) other carrying costs during con19 struction. 

20 ‘‘(6) FEDERAL FINANCIAL ASSISTANCE.—The 

21 term ‘Federal financial assistance’ means any credit22 based financial assistance, including a direct loan, 

23 loan guarantee, a line of credit (which serves as 

24 standby default coverage or standby interest cov25 erage), production incentive payment under sub-
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1 section (g)(1)(B), or other credit-based financial as2 sistance mechanism for an eligible project that is— 

3 ‘‘(A) authorized to be made available by 

4 the Secretary for an eligible project under this 

5 section; and 

6 ‘‘(B) provided in accordance with the Fed7 eral Credit Reform Act of 1990 (2 U.S.C. 661 

8 et seq.). 

9 ‘‘(7) INVESTMENT-GRADE RATING.—The term 

10 ‘investment-grade rating’ means a rating category of 

11 BBB minus, Baa3, or higher assigned by a rating 

12 agency for eligible project obligations offered into 

13 the capital markets. 

14 ‘‘(8) LENDER.—The term ‘lender’ means any 

15 non-Federal qualified institutional buyer (as defined 

16 in section 230.144A(a) of title 17, Code of Federal 

17 Regulations (or any successor regulation), known as 

18 Rule 144A(a) of the Securities and Exchange Com19 mission and issued under the Securities Act of 1933 

20 (15 U.S.C. 77a et seq.)), including— 

21 ‘‘(A) a qualified retirement plan (as de22 fined in section 4974(c) of the Internal Revenue 

23 Code of 1986) that is a qualified institutional 

24 buyer; and 
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1 ‘‘(B) a governmental plan (as defined in 

2 section 414(d) of the Internal Revenue Code of 

3 1986) that is a qualified institutional buyer. 

4 ‘‘(9) LOAN GUARANTEE.—The term ‘loan guar5 antee’ means any guarantee or other pledge by the 

6 Secretary to pay all or part of the principal of and 

7 interest on a loan or other debt obligation that is 

8 issued by an obligor and funded by a lender. 

9 ‘‘(10) OBLIGOR.—The term ‘obligor’ means a 

10 person or entity (including a corporation, partner11 ship, joint venture, trust, or governmental entity, 

12 agency, or instrumentality) that is primarily liable 

13 for payment of the principal of, or interest on, a 

14 Federal credit instrument. 

15 ‘‘(11) PROJECT OBLIGATION.—The term 

16 ‘project obligation’ means any note, bond, debenture, 

17 or other debt obligation issued by an obligor in con18 nection with the financing of an eligible project, 

19 other than a Federal credit instrument. 

20 ‘‘(12) RATING AGENCY.—The term ‘rating 

21 agency’ means a bond rating agency identified by 

22 the Securities and Exchange Commission as a Na23 tionally Recognized Statistical Rating Organization. 

24 ‘‘(13) REGULATORY FAILURE.—The term ‘regu25 latory failure’ means a situation in which, because of 
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1 a breakdown in a regulatory process or an indefinite 

2 delay caused by a judicial challenge to the regulatory 

3 consideration of a specific eligible project, the Fed4 eral or State regulatory or licensing process gov5 erning the siting, construction, or commissioning of 

6 an eligible project does not produce a definitive de7 termination that the eligible project may go forward 

8 or stop within a predetermined and prescribed time 

9 period, as determined by the Secretary. 

10 ‘‘(14) SECURED LOAN.—The term ‘secured 

11 loan’ means a loan or other secured debt obligation 

12 issued by an obligor and funded by the Secretary in 

13 connection with the financing of an eligible project. 

14 ‘‘(15) STANDBY DEFAULT COVERAGE.—The 

15 term ‘standby default coverage’ means a pledge by 

16 the Secretary to pay all or part of the debt obliga17 tion issued by an obligor and funded by a lender, 

18 plus all or part of obligor equity, if an eligible 

19 project fails to receive an operating license in a pe20 riod of time established by the Secretary because of 

21 a regulatory failure or other specific issue identified 

22 by the Secretary. 

23 ‘‘(16) STANDBY INTEREST COVERAGE.—The 

24 term ‘standby interest coverage’ means a pledge by 

25 the Secretary to provide to an obligor, at a future 
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1 date and on the occurrence of 1 or more events, a 

2 direct loan, the proceeds of which shall be used by 

3 the obligor to maintain the current status of the ob4 ligor on interest payments due on 1 or more loans 

5 or other project obligations issued by an obligor and 

6 funded by a lender for an eligible project. 

7 ‘‘(17) SUBSIDY AMOUNT.—The term ‘subsidy 

8 amount’ means the amount of budget authority suf9 ficient to cover the estimated long-term cost to the 

10 Federal Government of a Federal credit instrument 

11 issued by the Secretary to an eligible project, cal12 culated on a net present value basis, excluding ad13 ministrative costs and any incidental effects on gov14 ernmental receipts or outlays in accordance with the 

15 Federal Credit Reform Act of 1990 (2 U.S.C. 661 

16 et seq.). 

17 ‘‘(18) SUBSTANTIAL COMPLETION.—The term 

18 ‘substantial completion’ means that an eligible 

19 project has been determined by the Board to be in, 

20 or capable of, commercial operation. 

21 ‘‘(b) DUTIES OF THE SECRETARY.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall make 

23 available to eligible project developers and eligible 

24 project owners, in accordance with this section, such 
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1 financial assistance as is necessary to supplement 

2 private sector financing for eligible projects. 

3 ‘‘(2) CLIMATE CREDIT BOARD.— 

4 ‘‘(A) IN GENERAL.—Not later than 120 

5 days after the date of enactment of this section, 

6 the Secretary shall establish within the Depart7 ment of Energy a Climate Credit Board com8 posed of— 

9 ‘‘(i) the Under Secretary of Energy, 

10 who shall serve as Chairperson; 

11 ‘‘(ii) the Chief Financial Officer of the 

12 Department of Energy; 

13 ‘‘(iii) the Assistant Secretary of En14 ergy for Policy and International Affairs; 

15 ‘‘(iv) the Assistant Secretary of En16 ergy for Energy Efficiency and Renewable 

17 Energy; and 

18 ‘‘(v) such other individuals as the Sec19 retary determines to have the experience 

20 and expertise (including expertise in cor21 porate and project finance and the energy 

22 sector) necessary to carry out the duties of 

23 the Board. 

24 ‘‘(B) DUTIES.—The Board shall— 
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1 ‘‘(i) implement the program developed 

2 under section 1610(h)(1) in accordance 

3 with paragraph (3); 

4 ‘‘(ii) issue regulations and criteria in 

5 accordance with paragraph (4); 

6 ‘‘(iii) conduct negotiations with indi7 viduals and entities interested in obtaining 

8 assistance under this section; 

9 ‘‘(iv) recommend to the Secretary po10 tential recipients and amounts of grants of 

11 assistance under this section; and 

12 ‘‘(v) carry out such other projects and 

13 activities as the Interagency Coordinating 

14 Committee on Climate Change Technology 

15 may recommend. 

16 ‘‘(3) GREENHOUSE GAS INTENSITY REDUCING

17 TECHNOLOGY DEPLOYMENT PROGRAM.—Not later 

18 than 1 year after the date of enactment of this sec19 tion, the Board shall implement the greenhouse gas 

20 intensity reducing technology deployment program 

21 developed under section 1610(h)(1). 

22 ‘‘(4) REGULATIONS AND CRITERIA.— 

23 ‘‘(A) IN GENERAL.—Not later than 1 year 

24 after the date of enactment of this section, the 

25 Board shall issue and publish in the Federal 
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1 Register such regulations and criteria as are 

2 necessary to implement this section. 

3 ‘‘(B) REQUIREMENTS.—The regulations 

4 and criteria shall provide for, at a minimum— 

5 ‘‘(i) a competitive process and the 

6 general terms and conditions for the provi7 sion of assistance under this section; 

8 ‘‘(ii) the procedures by which eligible 

9 project owners and eligible project devel10 opers may request financial assistance 

11 under this section; and 

12 ‘‘(iii) the collection of any other infor13 mation necessary for the Secretary to carry 

14 out this section, including a process for ne15 gotiating the terms and conditions of as16 sistance provided under this section. 

17 ‘‘(C) ELIGIBILITY AND CRITERIA.—The de18 termination of eligibility of, and criteria for se19 lecting, eligible projects to receive assistance 

20 under this section shall be carried out in ac21 cordance with subsection (c). 

22 ‘‘(D) CONDITIONS FOR PROVISION OF AS23 SISTANCE.—The Board shall not provide assist24 ance under this section unless the Board deter25 mines that the terms, conditions, maturity, se-
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1 curity, schedule, and amounts of repayments of 

2 the assistance are reasonable and meet such 

3 standards as the Board determines are appro4 priate to protect the financial interests of the 

5 United States. 

6 ‘‘(5) REPORTS TO THE PRESIDENT AND CON7 GRESS.—Not later than 4 years after the date of en8 actment of this section, and every 2 years thereafter, 

9 the Board shall submit to the Secretary, for trans10 mittal to the President and Congress, a report that 

11 describes— 

12 ‘‘(A) the progress in carrying out this sec13 tion; 

14 ‘‘(B) the financial performance of the eligi15 ble projects that are receiving, or have received, 

16 assistance under this section as of the date of 

17 the report; and 

18 ‘‘(C) the progress and value to the United 

19 States of the program under this section, in20 cluding a recommendation as to whether the ob21 jectives of this section are best served by— 

22 ‘‘(i) continuing the program under the 

23 authority of the Secretary; 

24 ‘‘(ii) establishing a Federal Govern25 ment corporation or Federal Government-
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1 sponsored enterprise to administer the pro2 gram; or 

3 ‘‘(iii) phasing out the program and re4 lying on the capital markets to fund the 

5 kinds of energy infrastructure investments 

6 assisted by this section without Federal 

7 participation. 

8 ‘‘(6) CONFIDENTIALITY.—The Board shall pro9 tect the confidentiality of any information provided 

10 by an applicant for assistance under this section 

11 that the applicant certifies to be commercially sen12 sitive or that is protected intellectual property. 

13 ‘‘(c) GENERAL REQUIREMENTS REGARDING ASSIST14 ANCE, DETERMINATION OF ELIGIBILITY, AND PROJECT

15 SELECTION.— 

16 ‘‘(1) IN GENERAL.—The Board shall not pro17 vide assistance to an eligible project under this sec18 tion unless the Board first determines that the 

19 amount of assistance to be provided for the eligible 

20 project is not greater than the amount of assistance 

21 required to achieve the purposes of this section with 

22 respect to the eligible project. 

23 ‘‘(2) ELIGIBILITY.—To be eligible to receive as24 sistance under this section, an eligible project shall, 

25 as determined by the Board— 
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1 ‘‘(A) be supported by an application that 

2 contains all information required to be included 

3 by, and is submitted to and approved by the 

4 Board in accordance with, the regulations and 

5 criteria issued by the Board under subsection 

6 (b)(4); 

7 ‘‘(B) be nationally or regionally significant 

8 by— 

9 ‘‘(i) reducing greenhouse gas inten10 sity; 

11 ‘‘(ii) generating economic benefits; 

12 ‘‘(iii) contributing to energy security; 

13 ‘‘(iv) contributing to energy and tech14 nology diversity in the energy economy of 

15 the United States; 

16 ‘‘(v) contributing to energy and elec17 tricity price stability; or 

18 ‘‘(vi) otherwise enhancing national or 

19 regional energy efficiency, reliability, and 

20 robustness of performance; 

21 ‘‘(C) contain an advanced climate tech22 nology or system that could— 

23 ‘‘(i) significantly improve the effi24 ciency, security, reliability, and environ-
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1 mental performance of the energy economy 

2 of the United States; and 

3 ‘‘(ii) reduce greenhouse gas emissions; 

4 ‘‘(D) have revenue sources dedicated to re5 payment of credit support-based project financ6 ing, such as revenue— 

7 ‘‘(i) from the sale of sequestered car8 bon; 

9 ‘‘(ii) from the sale of energy, elec10 tricity, or other products from eligible 

11 projects that employ advanced climate 

12 technologies and systems; 

13 ‘‘(iii) from the sale of transportation 

14 of commerce; 

15 ‘‘(iv) from the sale of electricity or 

16 generating capacity, in the case of elec17 tricity infrastructure; 

18 ‘‘(v) from the sale or transmission of 

19 energy; 

20 ‘‘(vi) associated with energy efficiency 

21 gains, in the case of other energy projects; 

22 or 

23 ‘‘(vii) from other dedicated revenue 

24 sources; 
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1 ‘‘(E) include a project proposal and agree2 ment for project financing repayment that dem3 onstrates to the satisfaction of the Board that 

4 the dedicated revenue sources described in sub5 paragraph (D) will be adequate to repay project 

6 financing provided under this section; 

7 ‘‘(F) reduce greenhouse gas intensity on a 

8 national or regional basis; and 

9 ‘‘(G) if the eligible project involves new 

10 transmission capacity, link to low-emission 

11 projects. 

12 ‘‘(3) LIMITATIONS.—Except as otherwise pro13 vided in this section— 

14 ‘‘(A) the total cost of an eligible project 

15 provided Federal financial assistance under this 

16 section shall be at least $40,000,0000; 

17 ‘‘(B) the Federal share of an eligible 

18 project provided Federal financial assistance 

19 under this Act shall be not more than 20 per20 cent of the total cost of carrying out the eligible 

21 project; and 

22 ‘‘(C) not more than $200,000,000 in Fed23 eral financial assistance shall be provided to 

24 any individual eligible project. 

25 ‘‘(4) SELECTION AMONG ELIGIBLE PROJECTS.— 
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1 ‘‘(A) ESTABLISHMENT OF SELECTION CRI2 TERIA.—The Board shall establish criteria for 

3 selecting which eligible projects will receive as4 sistance under this section. 

5 ‘‘(B) REQUIREMENTS.—The selection cri6 teria shall include a determination by the Board 

7 of the extent to which— 

8 ‘‘(i) the eligible project reduces green9 house gas intensity beyond reductions 

10 achieved by technology available as of Oc11 tober 15, 1992; 

12 ‘‘(ii) financing for the eligible project 

13 has appropriate security features, such as 

14 a rate covenant, to ensure repayment; 

15 ‘‘(iii) assistance under this section for 

16 the eligible project would foster innovative 

17 public-private partnerships and attract pri18 vate debt or equity investment; 

19 ‘‘(iv) assistance under this section for 

20 an eligible project would enable the eligible 

21 project to proceed at an earlier date than 

22 would otherwise be practicable; 

23 ‘‘(v) the eligible project uses new tech24 nologies that enhance the efficiency, reduce 

25 the environmental impact, improve the reli-
29

•S 388 IS

1 ability, or improve the safety, of the eligi2 ble project; 

3 ‘‘(vi) the eligible project helps to 

4 maintain or protect the environment, espe5 cially with respect to having a low level of 

6 emissions to the atmosphere; 

7 ‘‘(vii) assistance for the eligible 

8 project provided under this section could 

9 reduce the contribution of other Federal 

10 grant or funding assistance to the eligible 

11 project; and 

12 ‘‘(viii) the eligible project is nationally 

13 or regionally significant in terms of gener14 ating economic benefits, supporting inter15 national commerce, or otherwise enhancing 

16 national energy efficiency, security, reli17 ability, robustness, and environmental per18 formance. 

19 ‘‘(C) FINANCIAL INFORMATION.—An appli20 cation for assistance for an eligible project 

21 under this section shall include such informa22 tion as the Secretary determines to be nec23 essary concerning— 
30

•S 388 IS

1 ‘‘(i) the amount of budget authority 

2 required to fund the Federal credit instru3 ment requested for the eligible project; 

4 ‘‘(ii) the estimated construction costs 

5 of the proposed eligible project; 

6 ‘‘(iii) estimates of construction and 

7 operating costs of the eligible project; 

8 ‘‘(iv) projected revenues from the eli9 gible project; and 

10 ‘‘(v) any other financial aspects of the 

11 eligible project, including assurances, that 

12 the Board determines to be appropriate. 

13 ‘‘(D) PRELIMINARY RATING OPINION LET14 TER.—The Board shall require each applicant 

15 seeking assistance for an eligible project under 

16 this section to provide a preliminary rating 

17 opinion letter from at least 1 credit rating 

18 agency indicating that the senior obligations of 

19 the eligible project have the potential to achieve 

20 an investment-grade rating. 

21 ‘‘(E) RISK ASSESSMENT.—Before entering 

22 into any agreement to provide assistance for an 

23 eligible project under this section, the Board, in 

24 consultation with the Secretary, the Director of 

25 the Office of Management and Budget, and 
31

•S 388 IS

1 each credit rating agency providing a prelimi2 nary rating opinion letter under subparagraph 

3 (D), shall determine and maintain an appro4 priate capital reserve subsidy amount for each 

5 line of credit established for the eligible project, 

6 taking into account the information contained 

7 in the preliminary rating opinion letter. 

8 ‘‘(F) INVESTMENT-GRADE RATING RE9 QUIREMENT.— 

10 ‘‘(i) IN GENERAL.—The funding of 

11 any assistance under this section shall be 

12 contingent on the senior obligations of the 

13 eligible project receiving an investment14 grade rating from at least 1 credit rating 

15 agency. 

16 ‘‘(ii) CONSIDERATIONS.—In deter17 mining whether an investment-grade rating 

18 is appropriate under clause (i), the credit 

19 rating agency shall take into account the 

20 availability of Federal financial assistance 

21 under this section. 

22 ‘‘(5) MAXIMUM AVAILABLE CLIMATE CREDIT

23 SUPPORT.—Notwithstanding any assistance limita24 tion under any other provision of this section, the 

25 Secretary shall not provide energy credit support to 
32

•S 388 IS

1 any eligible project in the form of a secured loan or 

2 loan guarantee under subsection (f), production in3 centive payments under subsection (g), or other 

4 credit-based financial assistance under subsection 

5 (h), the combined total of which exceeds 60 percent 

6 of eligible project costs, excluding the value of stand7 by default coverage under subsection (d) and stand8 by interest coverage under subsection (e), as deter9 mined by the Secretary. 

10 ‘‘(d) STANDBY DEFAULT COVERAGE.— 

11 ‘‘(1) AGREEMENTS; USE OF PROCEEDS.— 

12 ‘‘(A) AGREEMENTS.— 

13 ‘‘(i) IN GENERAL.—Subject to sub14 paragraph (B), the Board, in consultation 

15 with the Secretary, may enter into agree16 ments to provide standby default coverage 

17 for advanced climate technologies or sys18 tems of an eligible project. 

19 ‘‘(ii) RECIPIENTS.—Coverage under 

20 clause (i) may be provided to 1 or more ob21 ligors and debt holders to be triggered at 

22 future dates on the occurrence of certain 

23 events for any eligible project selected 

24 under subsection (c). 
33

•S 388 IS

1 ‘‘(B) USE OF PROCEEDS.—The proceeds of 

2 standby default coverage made available under 

3 this subsection shall be available to reimburse 

4 all or part of the debt obligation for an eligible 

5 project issued by an obligor and funded by a 

6 lender, plus all or part of obligor equity, in the 

7 event that, because of a regulatory failure or 

8 other event specified by the Secretary pursuant 

9 to this section, an eligible advanced climate 

10 technology or system for an eligible project fails 

11 to receive an operating license in a period of 

12 time specified by the Board in accordance with 

13 this subsection. 

14 ‘‘(2) TERMS AND LIMITATIONS.— 

15 ‘‘(A) IN GENERAL.—Standby default cov16 erage under this subsection with respect to an 

17 eligible project shall be on such terms and con18 ditions and contain such covenants, representa19 tions, warranties, and requirements (including 

20 requirements for audits) as the Board deter21 mines to be appropriate. 

22 ‘‘(B) MAXIMUM AMOUNTS.—The total 

23 amount of standby default coverage provided 

24 for an eligible project shall not exceed 100 per-
34

•S 388 IS

1 cent of the reasonably anticipated eligible 

2 project costs, including debt and equity. 

3 ‘‘(C) EXERCISE.—Any exercise on the 

4 standby default coverage shall be made only if 

5 a facility involved with the eligible project fails, 

6 because of regulatory failure or other specific 

7 issues specified by the Secretary, to receive an 

8 operating license by such deadline as the Sec9 retary shall establish. 

10 ‘‘(D) COST OF COVERAGE.—The cost of 

11 standby default coverage shall be assumed by 

12 the Secretary subject to the risk assessment 

13 calculation required under subsection (c)(4)(E) 

14 and the availability of funds for that purpose. 

15 ‘‘(E) FEES.—In carrying out this section, 

16 the Secretary may— 

17 ‘‘(i) establish fees at a level sufficient 

18 to cover all or a portion of the administra19 tive costs incurred by the Federal Govern20 ment in providing standby default coverage 

21 under this subsection; and 

22 ‘‘(ii) require that the fees be paid 

23 upon application for a standby default cov24 erage agreement under this subsection. 
35

•S 388 IS

1 ‘‘(F) PERIOD OF AVAILABILITY.—In the 

2 event that regulatory approval to operate a fa3 cility is suspended as a result of regulatory fail4 ure or other circumstances specified by the Sec5 retary, standby default coverage shall be avail6 able beginning on the date of substantial com7 pletion and ending not later than 5 years after 

8 the date on which operation of the facility is 

9 scheduled to commence. 

10 ‘‘(G) RIGHTS OF THIRD-PARTY CREDI11 TORS.— 

12 ‘‘(i) AGAINST FEDERAL GOVERN13 MENT.—A third-party creditor of an obli14 gor shall not have any right against the 

15 Federal Government with respect to any 

16 amounts other than those specified in sub17 paragraph (B). 

18 ‘‘(ii) ASSIGNMENT.—An obligor may 

19 assign all or part of the standby default 

20 coverage for an eligible project to 1 or 

21 more lenders or to a trustee on behalf of 

22 the lenders. 

23 ‘‘(H) RESULT OF EXERCISE OF STANDBY

24 DEFAULT COVERAGE.—If standby default cov-
36

•S 388 IS

1 erage is exercised by the obligor of an eligible 

2 project— 

3 ‘‘(i) the Federal Government shall be4 come the sole owner of the eligible project, 

5 with all rights and appurtenances to the el6 igible project; and 

7 ‘‘(ii) the Board shall dispose of the as8 sets of the eligible project on terms that 

9 are most favorable to the Federal Govern10 ment, which may include continuing to li11 censing and commercial operation or resale 

12 of the eligible project, in whole or in part, 

13 if that is the best course of action in the 

14 judgment of the Board. 

15 ‘‘(I) ESTIMATE OF ASSETS AT TIME OF

16 TERMINATION.—If standby default coverage is 

17 exercised and an eligible project is terminated, 

18 the Board, in making a determination of wheth19 er to dispose of the assets of the eligible project 

20 or continue the eligible project to licensing and 

21 commercial operation, shall obtain a fair and 

22 impartial estimate of the eligible project assets 

23 at the time of termination. 

24 ‘‘(J) RELATIONSHIP TO OTHER CREDIT IN25 STRUMENTS.—An eligible project that receives 
37

•S 388 IS

1 standby default coverage under this subsection 

2 may receive a secured loan or loan guarantee 

3 under subsection (f), production incentive pay4 ments under subsection (g), or assistance 

5 through a credit-based financial assistance 

6 mechanism under subsection (h). 

7 ‘‘(K) OTHER CONDITIONS AND REQUIRE8 MENTS.—The Secretary may impose such other 

9 conditions and requirements in connection with 

10 any insurance provided under this subsection 

11 (including requirements for audits) as the Sec12 retary determines to be appropriate. 

13 ‘‘(e) STANDBY INTEREST COVERAGE.— 

14 ‘‘(1) IN GENERAL.— 

15 ‘‘(A) AGREEMENTS.—Subject to subpara16 graph (B), the Board may enter into agree17 ments to make standby interest coverage avail18 able to 1 or more obligors in the form of loans 

19 for advanced climate or energy technologies or 

20 systems to be made by the Board at future 

21 dates on the occurrence of certain events for 

22 any eligible project selected under subsection 

23 (c)(4). 

24 ‘‘(B) USE OF PROCEEDS.—Subject to sub25 section (c)(3), the proceeds of standby interest 
38

•S 388 IS

1 coverage made available under this subsection 

2 shall be available to pay the debt service on 

3 project obligations issued to finance eligible 

4 project costs of an eligible project if a delay in 

5 commercial operations occurs due to a regu6 latory failure or other condition determined by 

7 the Secretary. 

8 ‘‘(2) TERMS AND LIMITATIONS.— 

9 ‘‘(A) IN GENERAL.—Standby interest cov10 erage under this subsection with respect to an 

11 eligible project shall be made on such terms and 

12 conditions (including a requirement for an 

13 audit) as the Secretary determines appropriate. 

14 ‘‘(B) MAXIMUM AMOUNTS.— 

15 ‘‘(i) TOTAL AMOUNT.—The total 

16 amount of standby interest coverage for an 

17 eligible project under this subsection shall 

18 not exceed 25 percent of the reasonably 

19 anticipated eligible project costs of the eli20 gible project. 

21 ‘‘(ii) 1-YEAR DRAWS.—The amount 

22 drawn in any 1 year for an eligible project 

23 under this subsection shall not exceed 20 

24 percent of the total amount of the standby 

25 interest coverage for the eligible project. 
39

•S 388 IS

1 ‘‘(C) PERIOD OF AVAILABILITY.—The 

2 standby interest coverage for an eligible project 

3 shall be available during the period— 

4 ‘‘(i) beginning on a date following 

5 substantial completion of the eligible 

6 project that regulatory approval to operate 

7 a facility under the eligible project is sus8 pended as a result of regulatory failure or 

9 other condition determined by the Sec10 retary; and 

11 ‘‘(ii) ending on a date that is not later 

12 than 5 years after the eligible project is 

13 scheduled to commence commercial oper14 ations. 

15 ‘‘(D) COST OF COVERAGE.—Subject to 

16 subsection (c)(4)(E), the cost of standby inter17 est coverage for an eligible project under this 

18 subsection shall be borne by the Secretary. 

19 ‘‘(E) DRAWS.—Any draw on the standby 

20 interest coverage for an eligible project shall— 

21 ‘‘(i) represent a loan; 

22 ‘‘(ii) be made only if there is a delay 

23 in commercial operations after the sub24 stantial completion of the eligible project; 

25 and 
40

•S 388 IS

1 ‘‘(iii) be subject to the overall credit 

2 support limitations established under sub3 section (c)(5). 

4 ‘‘(F) INTEREST RATE.— 

5 ‘‘(i) IN GENERAL.—Subject to clause 

6 (ii), the interest rate on a loan resulting 

7 from a draw on standby interest coverage 

8 under this subsection shall be established 

9 by the Secretary. 

10 ‘‘(ii) MINIMUM RATE.—The interest 

11 rate on a loan resulting from a draw on 

12 standby interest coverage under this sub13 section shall not be less than the current 

14 average market yield on outstanding mar15 ketable obligations of the United States 

16 with a maturity of 10 years, as of the date 

17 on which the standby interest coverage is 

18 obligated. 

19 ‘‘(G) SECURITY.—The standby interest 

20 coverage for an eligible project— 

21 ‘‘(i) shall be payable, in whole or in 

22 part, from dedicated revenue sources gen23 erated by the eligible project; 

24 ‘‘(ii) shall require security for the 

25 project obligations; and 
41

•S 388 IS

1 ‘‘(iii) may have a lien on revenues de2 scribed in clause (i), subject to any lien se3 curing project obligations. 

4 ‘‘(H) RIGHTS OF THIRD-PARTY CREDI5 TORS.— 

6 ‘‘(i) AGAINST FEDERAL GOVERN7 MENT.—A third-party creditor of the obli8 gor shall not have any right against the 

9 Federal Government with respect to any 

10 draw on standby interest coverage under 

11 this subsection. 

12 ‘‘(ii) ASSIGNMENT.—An obligor may 

13 assign the standby interest coverage to 1 

14 or more lenders or to a trustee on behalf 

15 of the lenders. 

16 ‘‘(I) SUBORDINATION.—A secured loan for 

17 an eligible project made under this subsection 

18 shall be subordinate to senior private debt 

19 issued by a lender for the eligible project. 

20 ‘‘(J) NONRECOURSE STATUS.—A secured 

21 loan for an eligible project under this subsection 

22 shall be nonrecourse to the obligor in the event 

23 of bankruptcy, insolvency, or liquidation of the 

24 eligible project. 
42

•S 388 IS

1 ‘‘(K) FEES.—The Board may impose fees 

2 at a level sufficient to cover all or part of the 

3 costs to the Federal Government of providing 

4 standby interest coverage for an eligible project 

5 under this subsection. 

6 ‘‘(3) REPAYMENT.— 

7 ‘‘(A) TERMS AND CONDITIONS.—The Sec8 retary shall establish a repayment schedule and 

9 terms and conditions for each loan for an eligi10 ble project under this subsection based on the 

11 projected cash flow from revenues for the eligi12 ble project. 

13 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

14 repayments of principal or interest on a loan 

15 under this subsection shall— 

16 ‘‘(i) commence not later than 5 years 

17 after the end of the period of availability 

18 specified in paragraph (2)(C); and 

19 ‘‘(ii) be completed, with interest, not 

20 later than 10 years after the end of the pe21 riod of availability. 

22 ‘‘(C) SOURCES OF REPAYMENT FUNDS.—

23 The sources of funds for scheduled loan repay24 ments under this subsection shall include— 
43

•S 388 IS

1 ‘‘(i) the sale of electricity or gener2 ating capacity; 

3 ‘‘(ii) the sale or transmission of en4 ergy; 

5 ‘‘(iii) revenues associated with energy 

6 efficiency gains; or 

7 ‘‘(iv) other dedicated revenue sources, 

8 such as carbon use. 

9 ‘‘(D) PREPAYMENT.— 

10 ‘‘(i) USE OF EXCESS REVENUES.—At 

11 the discretion of the obligor, any excess 

12 revenues that remain after satisfying 

13 scheduled debt service requirements on the 

14 project obligations and secured loan, and 

15 all deposit requirements under the terms of 

16 any trust agreement, bond resolution, or 

17 similar agreement securing project obliga18 tions, may be applied annually to prepay 

19 the secured loan without penalty. 

20 ‘‘(ii) USE OF PROCEEDS OF REFI21 NANCING.—The secured loan may be pre22 paid at any time without penalty from the 

23 proceeds of refinancing from non-Federal 

24 funding sources. 

25 ‘‘(f) SECURED LOANS AND LOAN GUARANTEES.— 
44

•S 388 IS

1 ‘‘(1) IN GENERAL.— 

2 ‘‘(A) AGREEMENTS.—Subject to subpara3 graph (B), the Board may enter into agree4 ments with 1 or more obligors to make secured 

5 loans for eligible projects involving advanced cli6 mate technologies or systems. 

7 ‘‘(B) USE OF PROCEEDS.—Subject to 

8 paragraph (2), the proceeds of a secured loan 

9 for an eligible project made available under this 

10 subsection shall be available, in conjunction 

11 with the equity of the obligor and senior debt 

12 financing for the eligible project, to pay for eli13 gible project costs. 

14 ‘‘(2) TERMS AND LIMITATIONS.— 

15 ‘‘(A) IN GENERAL.—A secured loan under 

16 this subsection with respect to an eligible 

17 project shall be made on such terms and condi18 tions (including requirements for an audit) as 

19 the Board, in consultation with the Secretary, 

20 determines appropriate. 

21 ‘‘(B) MAXIMUM AMOUNT.—Subject to sub22 section (c)(5), the total amount of the secured 

23 loan for an eligible project under this subsection 

24 shall not exceed 50 percent of the reasonably 
45

•S 388 IS

1 anticipated eligible project costs of the eligible 

2 project. 

3 ‘‘(C) PERIOD OF AVAILABILITY.—The 

4 Board may enter into a contract with the owner 

5 or operator of an eligible project to provide a 

6 secured loan during the period— 

7 ‘‘(i) beginning on the date that the fi8 nancial structure of the eligible project is 

9 established; and 

10 ‘‘(ii) ending on the date of the start of 

11 construction of the eligible project. 

12 ‘‘(D) COST OF COVERAGE.—Subject to 

13 subsection (c)(4)(E), the cost of a secured loan 

14 for an eligible project under this subsection 

15 shall be borne by the Secretary. 

16 ‘‘(E) INTEREST RATE.— 

17 ‘‘(i) IN GENERAL.—Subject to clause 

18 (ii), the interest rate on a secured loan 

19 under this subsection shall be established 

20 by the Secretary. 

21 ‘‘(ii) MINIMUM RATE.—The interest 

22 rate on a loan resulting from a secured 

23 loan under this subsection shall not be less 

24 than the current average market yield on 

25 outstanding marketable obligations of the 
46

•S 388 IS

1 United States of comparable maturity, as 

2 of the date of the execution of the loan 

3 agreement. 

4 ‘‘(F) SECURITY.—The secured loan— 

5 ‘‘(i) shall be payable, in whole or in 

6 part, from dedicated revenue sources gen7 erated by the eligible project; 

8 ‘‘(ii) shall include a rate covenant, 

9 coverage requirement, or similar security 

10 feature supporting the project obligations; 

11 and 

12 ‘‘(iii) may have a lien on revenues de13 scribed in clause (i), subject to any lien se14 curing project obligations. 

15 ‘‘(G) RIGHTS OF THIRD-PARTY CREDI16 TORS.— 

17 ‘‘(i) AGAINST FEDERAL GOVERN18 MENT.—A third-party creditor of the obli19 gor shall not have any right against the 

20 Federal Government with respect to any 

21 payments due to the Federal Government 

22 under this subsection. 

23 ‘‘(ii) ASSIGNMENT.—An obligor may 

24 assign the secured loan to 1 or more lend25 ers or to a trustee on behalf of the lenders. 
47

•S 388 IS

1 ‘‘(H) SUBORDINATION.—A secured loan 

2 for an eligible project made under this sub3 section shall be subordinate to senior private 

4 debt issued by a lender for the eligible project. 

5 ‘‘(I) NONRECOURSE STATUS.—A secured 

6 loan for an eligible project under this subsection 

7 shall be non-recourse to the obligor in the event 

8 of bankruptcy, insolvency, or liquidation of the 

9 eligible project. 

10 ‘‘(J) FEES.—The Board may establish fees 

11 at a level sufficient to cover all or a portion of 

12 the costs to the Federal Government of making 

13 secured loans for an eligible project under this 

14 subsection. 

15 ‘‘(3) REPAYMENT.— 

16 ‘‘(A) SCHEDULE AND TERMS.—The Board 

17 shall establish a repayment schedule and terms 

18 and conditions for each secured loan for an eli19 gible project under this subsection based on the 

20 projected cash flow from revenues for the eligi21 ble project. 

22 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

23 repayments on a secured loan for an eligible 

24 project under this subsection shall— 
48

•S 388 IS

1 ‘‘(i) commence not later than 5 years 

2 after the scheduled start of commercial op3 erations of the eligible project; and 

4 ‘‘(ii) be completed, with interest, not 

5 later than 35 years after the scheduled 

6 date of the start of commercial operations 

7 of the eligible project. 

8 ‘‘(C) SOURCES OF REPAYMENT FUNDS.—

9 The sources of funds for scheduled loan repay10 ments under this subsection shall include— 

11 ‘‘(i) the sale of carbon or carbon com12 pounds; 

13 ‘‘(ii) the sale of electricity or gener14 ating capacity; 

15 ‘‘(iii) the sale of sequestration serv16 ices; 

17 ‘‘(iv) the sale or transmission of en18 ergy; 

19 ‘‘(v) revenues associated with energy 

20 efficiency gains; or 

21 ‘‘(vi) other dedicated revenue sources. 

22 ‘‘(D) DEFERRED PAYMENTS.— 

23 ‘‘(i) AUTHORIZATION.—If, at any time 

24 during the 10-year period beginning on the 

25 date of the scheduled start of commercial 
49

•S 388 IS

1 operation of an eligible project, the eligible 

2 project is unable to generate sufficient rev3 enues to pay the scheduled loan repay4 ments of principal or interest on the se5 cured loan, the Secretary may, subject to 

6 clause (iii), allow the obligor to add unpaid 

7 principal or interest to the outstanding bal8 ance of the secured loan. 

9 ‘‘(ii) INTEREST.—Any payment de10 ferred under clause (i) shall— 

11 ‘‘(I) continue to accrue interest 

12 in accordance with paragraph (2)(E) 

13 until fully repaid; and 

14 ‘‘(II) be scheduled to be amor15 tized over the number of years re16 maining in the term of the loan in ac17 cordance with subparagraph (B). 

18 ‘‘(iii) CRITERIA.— 

19 ‘‘(I) IN GENERAL.—Any payment 

20 deferral under clause (i) shall be con21 tingent on the eligible project meeting 

22 criteria established by the Secretary. 

23 ‘‘(II) REPAYMENT STANDARDS.—

24 The criteria established under sub-
50

•S 388 IS

1 clause (I) shall include standards for 

2 reasonable assurance of repayment. 

3 ‘‘(E) PREPAYMENT.— 

4 ‘‘(i) USE OF EXCESS REVENUES.—At 

5 the discretion of the obligor, any excess 

6 revenues that remain after satisfying 

7 scheduled debt service requirements on the 

8 project obligations and secured loan, and 

9 all deposit requirements under the terms of 

10 any trust agreement, bond resolution, or 

11 similar agreement securing project obliga12 tions, may be applied annually to prepay 

13 the secured loan without penalty. 

14 ‘‘(ii) USE OF PROCEEDS OF REFI15 NANCING.—The secured loan may be pre16 paid at any time without penalty from the 

17 proceeds of refinancing from non-Federal 

18 funding sources. 

19 ‘‘(4) SALE OF SECURED LOANS.— 

20 ‘‘(A) IN GENERAL.—Subject to subpara21 graph (B), as soon as practicable after substan22 tial completion of an eligible project and after 

23 notifying the obligor, the Board may sell to an24 other entity or reoffer into the capital markets 

25 a secured loan for the eligible project if the 
51

•S 388 IS

1 Board determines that the sale or reoffering 

2 can be made on favorable terms. 

3 ‘‘(B) CONSENT OF OBLIGOR.—In making a 

4 sale or reoffering under subparagraph (A), the 

5 Board may not change the original terms and 

6 conditions of the secured loan without the writ7 ten consent of the obligor. 

8 ‘‘(5) LOAN GUARANTEES.— 

9 ‘‘(A) IN GENERAL.—The Board may pro10 vide a loan guarantee to a lender, in lieu of 

11 making a secured loan, under this subsection if 

12 the Board determines that the budgetary cost 

13 of the loan guarantee is substantially the same 

14 as that of a secured loan. 

15 ‘‘(B) TERMS.— 

16 ‘‘(i) IN GENERAL.—Except as pro17 vided in clause (ii), the terms of a guaran18 teed loan shall be consistent with the terms 

19 for a secured loan under this subsection. 

20 ‘‘(ii) INTEREST RATE; PREPAY21 MENT.—The interest rate on the guaran22 teed loan and any prepayment features 

23 shall be established by negotiations be24 tween the obligor and the lender, with the 

25 consent of the Board. 
52

•S 388 IS

1 ‘‘(g) PRODUCTION INCENTIVE PAYMENTS.— 

2 ‘‘(1) SECURED LOAN.— 

3 ‘‘(A) IN GENERAL.—The Secretary may 

4 enter into an agreement with 1 or more obligors 

5 to make a secured loan for an eligible project 

6 selected under subsection (c)(4) that employs 1 

7 or more advanced climate technologies or sys8 tems. 

9 ‘‘(B) PRODUCTION INCENTIVE PAY10 MENTS.— 

11 ‘‘(i) IN GENERAL.—Amounts loaned 

12 to an obligor under subparagraph (A) shall 

13 be made available in the form of a series 

14 of production incentive payments provided 

15 by the Board to the obligor during a period 

16 of not more than 10 years, as determined 

17 by the Board, beginning after the date on 

18 which commercial project operations start 

19 at the eligible project. 

20 ‘‘(ii) AMOUNT.—Production incentive 

21 payments under clause (i) shall be for an 

22 amount equal to 50 percent of the value 

23 of— 
53

•S 388 IS

1 ‘‘(I) the energy produced or 

2 transmitted by the eligible project 

3 during the applicable year; or 

4 ‘‘(II) any gains in energy effi5 ciency achieved by the eligible project 

6 during the applicable year. 

7 ‘‘(2) TERMS AND LIMITATIONS.— 

8 ‘‘(A) IN GENERAL.—A secured loan under 

9 this subsection shall be subject to such terms 

10 and conditions, including any covenant, rep11 resentation, warranty, and requirement (includ12 ing a requirement for an audit) that the Sec13 retary determines to be appropriate. 

14 ‘‘(B) AGREEMENT COSTS.—Subject to sub15 section (c)(4), the cost of carrying out an agree16 ment entered into under paragraph (1)(A) shall 

17 be paid by the Secretary. 

18 ‘‘(C) INTEREST RATE.— 

19 ‘‘(i) IN GENERAL.—Subject to clause 

20 (ii), the interest rate on a secured loan 

21 under this subsection shall be established 

22 by the Secretary. 

23 ‘‘(ii) MINIMUM RATE.—The interest 

24 rate on a secured loan under this sub25 section shall not be less than the current 
54

•S 388 IS

1 average market yield on outstanding mar2 ketable obligations of the United States of 

3 comparable maturity, as of the date on 

4 which the agreement under paragraph 

5 (1)(A) is executed. 

6 ‘‘(D) SECURITY.—The secured loan— 

7 ‘‘(i) shall be payable, in whole or in 

8 part, from dedicated revenue sources gen9 erated by the eligible project; 

10 ‘‘(ii) shall include a rate covenant, 

11 coverage requirement, or similar security 

12 feature supporting the eligible project obli13 gations; and 

14 ‘‘(iii) may have a lien on revenues de15 scribed in clause (i), subject to any lien se16 curing eligible project obligations. 

17 ‘‘(E) RIGHTS OF THIRD-PARTY CREDI18 TORS.— 

19 ‘‘(i) AGAINST FEDERAL GOVERN20 MENT.—A third-party creditor of the obli21 gor shall not have any right against the 

22 Federal Government with respect to any 

23 payments due to the Federal Government 

24 under the agreement entered into under 

25 paragraph (1)(A). 
55

•S 388 IS

1 ‘‘(ii) ASSIGNMENT.—An obligor may 

2 assign production incentive payments to 1 

3 or more lenders or to a trustee on behalf 

4 of the lenders. 

5 ‘‘(F) SUBORDINATION.—A secured loan 

6 under this subsection shall be subordinate to 

7 senior private debt issued by a lender for the el8 igible project. 

9 ‘‘(G) NONRECOURSE STATUS.—A secured 

10 loan under this subsection shall be nonrecourse 

11 to the obligor in the event of bankruptcy, insol12 vency, or liquidation of the eligible project. 

13 ‘‘(H) FEES.—The Secretary may impose 

14 fees at a level sufficient to cover all or part of 

15 the costs to the Federal Government of pro16 viding production incentive payments under this 

17 subsection. 

18 ‘‘(3) REPAYMENT.— 

19 ‘‘(A) SCHEDULE, TERMS, AND CONDI20 TIONS.—The Secretary shall establish a repay21 ment schedule and terms and conditions for 

22 each secured loan under this subsection based 

23 on the projected cash flow from revenues of the 

24 eligible project. 
56

•S 388 IS

1 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

2 repayments of principal or interest on a secured 

3 loan under this subsection shall— 

4 ‘‘(i) commence not later than 5 years 

5 after the date on which the last production 

6 incentive payment is made by the Board 

7 under paragraph (1)(B); and 

8 ‘‘(ii) be completed, with interest, not 

9 later than 10 years after the date on which 

10 the last production incentive payment is 

11 made. 

12 ‘‘(C) SOURCES OF REPAYMENT FUNDS.—

13 The sources of funds for scheduled loan repay14 ments under this subsection include— 

15 ‘‘(i) the sale of electricity or gener16 ating capacity; 

17 ‘‘(ii) the sale or transmission of en18 ergy; 

19 ‘‘(iii) revenues associated with energy 

20 efficiency gains; or 

21 ‘‘(iv) other dedicated revenue sources. 

22 ‘‘(D) DEFERRED PAYMENTS.— 

23 ‘‘(i) AUTHORIZATION.—If, at any time 

24 during the 10–year period beginning on 

25 the date on which commercial operations of 
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1 the eligible project start, the eligible 

2 project is unable to generate sufficient rev3 enues to pay the scheduled loan repay4 ments of principal or interest on a secured 

5 loan under this subsection, the Secretary 

6 may, subject to criteria established by the 

7 Secretary (including standards for reason8 able assurances of repayment), allow the 

9 obligor to add unpaid principal and inter10 est to the outstanding balance of the se11 cured loan. 

12 ‘‘(ii) INTEREST.—Any payment de13 ferred under clause (i) shall— 

14 ‘‘(I) continue to accrue interest 

15 in accordance with paragraph (2)(C) 

16 until fully repaid; and 

17 ‘‘(II) be scheduled to be amor18 tized over the number of years re19 maining in the term of the loan in ac20 cordance with subparagraph (B). 

21 ‘‘(E) PREPAYMENT.— 

22 ‘‘(i) USE OF EXCESS REVENUES.—At 

23 the discretion of the obligor, any excess 

24 revenues that remain after satisfying 

25 scheduled debt service requirements on the 
58

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1 eligible project obligations and the secured 

2 loan, and all deposit requirements under 

3 the terms of any trust agreement, bond 

4 resolution, or similar agreement securing 

5 eligible project obligations, may be applied 

6 annually to prepay loans pursuant to an 

7 agreement entered into under paragraph 

8 (1)(A) without penalty. 

9 ‘‘(ii) USE OF PROCEEDS OF REFI10 NANCING.—The secured loan may be pre11 paid at any time without penalty from the 

12 proceeds of refinancing from non-Federal 

13 funding sources. 

14 ‘‘(4) SALE OF SECURED LOANS.— 

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graph (B), as soon as practicable after the date 

17 on which the last production incentive payment 

18 is made to the obligor under paragraph (1)(B) 

19 and after notifying the obligor, the Secretary 

20 may sell to another entity or reoffer into the 

21 capital markets a secured loan for the eligible 

22 project if the Secretary determines that the sale 

23 or reoffering can be made on favorable terms. 

24 ‘‘(B) CONSENT REQUIRED.—In making a 

25 sale or reoffering under subparagraph (A), the 
59

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1 Board may not change the original terms and 

2 conditions of the secured loan without the writ3 ten consent of the obligor. 

4 ‘‘(h) OTHER CREDIT-BASED FINANCIAL ASSISTANCE

5 MECHANISMS FOR ELIGIBLE PROJECTS.— 

6 ‘‘(1) IN GENERAL.— 

7 ‘‘(A) AGREEMENTS.—The Board may 

8 enter into an agreement with 1 or more obligors 

9 to make a secured loan to the obligors for eligi10 ble projects selected under subsection (c) that 

11 employ advanced technologies or systems, the 

12 proceeds of which shall be used to— 

13 ‘‘(i) finance eligible project costs; or 

14 ‘‘(ii) enhance eligible project revenues. 

15 ‘‘(B) CREDIT-BASED FINANCIAL ASSIST16 ANCE.—Amounts made available as a secured 

17 loan under subparagraph (A) shall be provided 

18 by the Board to the obligor in the form of cred19 it-based financial assistance mechanisms that 

20 are not otherwise specifically provided for in 

21 subsections (d) through (g), as determined to 

22 be appropriate by the Secretary. 

23 ‘‘(2) TERMS AND LIMITATIONS.— 

24 ‘‘(A) IN GENERAL.—A secured loan under 

25 this subsection shall be subject to such terms 
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1 and conditions (including any covenants, rep2 resentations, warranties, and requirements (in3 cluding a requirement for an audit)) as the Sec4 retary determines to be appropriate. 

5 ‘‘(B) MAXIMUM AMOUNT.—Subject to sub6 section (c)(5), the total amount of the secured 

7 loan under this subsection shall not exceed 50 

8 percent of the reasonably anticipated eligible 

9 project costs. 

10 ‘‘(C) PERIOD OF AVAILABILITY.—The 

11 Board may enter into a contract with the obli12 gor to provide credit-based financial assistance 

13 to an eligible project during the period— 

14 ‘‘(i) beginning on the date that the fi15 nancial structure of the eligible project is 

16 established; and 

17 ‘‘(ii) ending on the date of the start of 

18 construction of the eligible project. 

19 ‘‘(D) AGREEMENT COSTS.—Subject to sub20 section (c)(4)(E), the cost of carrying out an 

21 agreement entered into under paragraph (1)(A) 

22 shall be paid by the Board. 

23 ‘‘(E) INTEREST RATE.— 

24 ‘‘(i) IN GENERAL.—Subject to clause 

25 (ii), the interest rate on a secured loan 
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1 under this subsection shall be established 

2 by the Board. 

3 ‘‘(ii) MINIMUM RATE.—The interest 

4 rate on a secured loan under this sub5 section shall not be less than the current 

6 average market yield on outstanding mar7 ketable obligations of the United States of 

8 comparable maturity, as of the date of the 

9 execution of the secured loan agreement. 

10 ‘‘(F) SECURITY.—The secured loan— 

11 ‘‘(i) shall be payable, in whole or in 

12 part, from dedicated revenue sources gen13 erated by the eligible project; 

14 ‘‘(ii) shall include a rate covenant, 

15 coverage requirement, or similar security 

16 feature supporting the eligible project obli17 gations; and 

18 ‘‘(iii) may have a lien on revenues de19 scribed in clause (i), subject to any lien se20 curing eligible project obligations. 

21 ‘‘(G) RIGHTS OF THIRD-PARTY CREDI22 TORS.— 

23 ‘‘(i) AGAINST FEDERAL GOVERN24 MENT.—A third-party creditor of the obli25 gor shall not have any right against the 
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1 Federal Government with respect to any 

2 payments due to the Federal Government 

3 under this subsection. 

4 ‘‘(ii) ASSIGNMENT.—An obligor may 

5 assign payments made pursuant to an 

6 agreement to provide credit-based financial 

7 assistance under this subsection to 1 or 

8 more lenders or to a trustee on behalf of 

9 the lenders. 

10 ‘‘(H) SUBORDINATION.—A secured loan 

11 under this subsection shall be subordinate to 

12 senior private debt issued by a lender for the el13 igible project. 

14 ‘‘(I) NONRECOURSE STATUS.—A secured 

15 loan under this subsection shall be nonrecourse 

16 to the obligor in the event of bankruptcy, insol17 vency, or liquidation of the eligible project. 

18 ‘‘(J) FEES.—The Board may establish fees 

19 at a level sufficient to cover all or part of the 

20 costs to the Federal Government of providing 

21 credit-based financial assistance under this sub22 section. 

23 ‘‘(3) REPAYMENT.— 

24 ‘‘(A) SCHEDULE AND TERMS AND CONDI25 TIONS.—The Board shall establish a repayment 
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1 schedule and terms and conditions for each se2 cured loan under this subsection based on the 

3 projected cash flow from eligible project reve4 nues. 

5 ‘‘(B) REPAYMENT SCHEDULE.—Scheduled 

6 loan repayments of principal or interest on a se7 cured loan under this subsection shall— 

8 ‘‘(i) commence not later than 5 years 

9 after the date of substantial completion of 

10 the eligible project; and 

11 ‘‘(ii) be completed, with interest, not 

12 later than 35 years after the date of sub13 stantial completion of the eligible project. 

14 ‘‘(C) SOURCES OF REPAYMENT FUNDS.—

15 The sources of funds for scheduled loan repay16 ments under this subsection shall include— 

17 ‘‘(i) the sale of electricity or gener18 ating capacity; 

19 ‘‘(ii) the sale or transmission of en20 ergy; 

21 ‘‘(iii) revenues associated with energy 

22 efficiency gains; or 

23 ‘‘(iv) other dedicated revenue sources, 

24 such as carbon sequestration. 

25 ‘‘(D) DEFERRED PAYMENTS.— 
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1 ‘‘(i) AUTHORIZATION.—If, at any time 

2 during the 10–year period beginning on 

3 the date of the start of commercial oper4 ations of the eligible project, the eligible 

5 project is unable to generate sufficient rev6 enues to pay the scheduled loan repay7 ments of principal or interest on a secured 

8 loan under this subsection, the Secretary 

9 may, subject to criteria established by the 

10 Secretary (including standards for reason11 able assurances of repayment), allow the 

12 obligor to add unpaid principal and inter13 est to the outstanding balance of the se14 cured loan. 

15 ‘‘(ii) INTEREST.—Any payment de16 ferred under clause (i) shall— 

17 ‘‘(I) continue to accrue interest 

18 in accordance with paragraph (2)(E) 

19 until fully repaid; and 

20 ‘‘(II) be scheduled to be amor21 tized over the number of years re22 maining in the term of the loan in ac23 cordance with subparagraph (B). 

24 ‘‘(E) PREPAYMENT.— 
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1 ‘‘(i) USE OF EXCESS REVENUES.—At 

2 the discretion of the obligor, any excess 

3 revenues that remain after satisfying 

4 scheduled debt service requirements on the 

5 eligible project obligations and secured 

6 loan, and all deposit requirements under 

7 the terms of any trust agreement, bond 

8 resolution, or similar agreement securing 

9 eligible project obligations, may be applied 

10 annually to prepay a secured loan under 

11 this subsection without penalty. 

12 ‘‘(ii) USE OF PROCEEDS OF REFI13 NANCING.—A secured loan under this sub14 section may be prepaid at any time without 

15 penalty from the proceeds of refinancing 

16 from non-Federal funding sources. 

17 ‘‘(4) SALE OF SECURED LOANS.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), as soon as practicable after the start 

20 of commercial operations of an eligible project 

21 and after notifying the obligor, the Board may 

22 sell to another entity or reoffer into the capital 

23 markets a secured loan for the eligible project 

24 under this subsection if the Secretary deter-
66

•S 388 IS

1 mines that the sale or reoffering can be made 

2 on favorable terms. 

3 ‘‘(B) CONSENT OF OBLIGOR.—In making a 

4 sale or reoffering under subparagraph (A), the 

5 Board may not change the original terms and 

6 conditions of the secured loan without the writ7 ten consent of the obligor. 

8 ‘‘(i) FEDERAL, STATE, AND LOCAL REGULATORY

9 REQUIREMENTS.—The provision of Federal financial as10 sistance to an eligible project under this section shall 

11 not— 

12 ‘‘(1) relieve any recipient of the assistance of 

13 any obligation to obtain any required Federal, State, 

14 or local regulatory requirement, permit, or approval 

15 with respect to the eligible project; 

16 ‘‘(2) limit the right of any unit of Federal, 

17 State, or local government to approve or regulate 

18 any rate of return on private equity invested in the 

19 eligible project; or 

20 ‘‘(3) otherwise supersede any Federal, State, or 

21 local law (including any regulation) applicable to the 

22 construction or operation of the eligible project. 

23 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

24 is authorized to be appropriated to carry out this section 
67

•S 388 IS

1 $400,000,000 for each of fiscal years 2006 through 2010, 

2 to remain available until expended. 

3 ‘‘(k) TERMINATION OF AUTHORITY.—The authority 

4 provided by this section terminates effective December 31, 

5 2010.’’. 

6 SEC. 4. NATIONAL CLIMATE REGISTRY INITIATIVE. 

7 Title XVI of the Energy Policy Act of 1992 (42 

8 U.S.C. 13381 et seq.) (as amended by section 3) is amend9 ed by adding at the end the following: 

10 ‘‘SEC. 1612. NATIONAL CLIMATE REGISTRY INITIATIVE. 

11 ‘‘(a) PURPOSE.—The purpose of this section is to es12 tablish a new national greenhouse gas registry— 

13 ‘‘(1) to further encourage voluntary efforts, by 

14 persons and entities conducting business and other 

15 operations in the United States, to implement ac16 tions, projects, and measures that reduce greenhouse 

17 gas emissions; 

18 ‘‘(2) to encourage those persons and entities to 

19 monitor and voluntarily report direct or indirect 

20 greenhouse gas emissions from— 

21 ‘‘(A) the facilities of the persons and enti22 ties; and 

23 ‘‘(B) to the maximum extent practicable, 

24 other types of sources; 
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1 ‘‘(3) to adopt a procedure and uniform format 

2 for use by the persons and entities in establishing 

3 and voluntarily reporting greenhouse gas emission 

4 baselines in connection with, and furtherance of, re5 ductions of greenhouse gas emissions; 

6 ‘‘(4) to provide verification mechanisms to en7 sure, for participants and the public, a high level of 

8 confidence in accuracy and verifiability of reports 

9 made to a national greenhouse gas registry; 

10 ‘‘(5) to encourage persons and entities, through 

11 voluntary agreements entered into with the Sec12 retary, to annually report greenhouse gas emissions 

13 from the facilities of the persons and entities; 

14 ‘‘(6) to provide to persons and entities that 

15 enter into those voluntary agreements and reduce 

16 greenhouse gas emissions transferable credits that 

17 may be used for any incentive, market-based, or reg18 ulatory program determined by Congress to be nec19 essary and feasible to reduce the risk of climate 

20 change and effects of climate change; and 

21 ‘‘(7) to provide for the registration, transfer, 

22 and tracking of the ownership or holding of those 

23 credits for purposes of facilitating voluntary trading 

24 among persons and entities. 

25 ‘‘(b) DEFINITIONS.—In this section: 
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1 ‘‘(1) COMMITTEE.—The term ‘Committee’ 

2 means the Interagency Coordinating Committee on 

3 Climate Change Technology established under sec4 tion 1610(c)(1). 

5 ‘‘(2) ENTITY.—The term ‘entity’ means— 

6 ‘‘(A) a public person; 

7 ‘‘(B) a Federal, State, interstate, or local 

8 governmental agency, department, or corpora9 tion; and 

10 ‘‘(C) any other publicly-owned organiza11 tion. 

12 ‘‘(3) FACILITY.—The term ‘facility’ means 2 or 

13 more buildings, structures, or installations, or 2 or 

14 more units of a building, structure, or installation, 

15 that— 

16 ‘‘(A) are located on contiguous or adjacent 

17 parcels of land; 

18 ‘‘(B) are under common control of the 

19 same person or entity; and 

20 ‘‘(C) are a source of greenhouse gas emis21 sions in excess of a limitation established under 

22 this section. 

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

24 gas’ means— 
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1 ‘‘(A) an anthropogenic gaseous constituent 

2 of the atmosphere (including carbon dioxide, 

3 methane, nitrous oxide, hydrofluorocarbons, 

4 perfluorocarbons, and sulfur hexafluoride) 

5 that— 

6 ‘‘(i) absorbs and reemits infrared ra7 diation; and 

8 ‘‘(ii) influences climate; and 

9 ‘‘(B) an anthropogenic aerosol (such as 

10 black soot) that— 

11 ‘‘(i) absorbs solar radiation; and 

12 ‘‘(ii) influences climate. 

13 ‘‘(5) PERSON.—The term ‘person’ means an in14 dividual, corporation, association, joint venture, co15 operative, or partnership. 

16 ‘‘(6) REDUCTION.—The term ‘reduction’ means 

17 an action, project, or measure carried out, within or 

18 outside the United States, by a person or entity to 

19 directly or indirectly reduce, avoid, or sequester 

20 emissions of 1 or more greenhouse gases. 

21 ‘‘(7) REGISTRY.—The term ‘registry’ means the 

22 national greenhouse gas registry established under 

23 subsection (c)(1)(A). 
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1 ‘‘(8) SECRETARY.—The term ‘Secretary’ means 

2 the Secretary of Energy, acting through the Admin3 istrator of the Energy Information Administration. 

4 ‘‘(c) NATIONAL GREENHOUSE GAS REGISTRY.— 

5 ‘‘(1) ESTABLISHMENT.— 

6 ‘‘(A) IN GENERAL.—Not later than 1 year 

7 after the enactment of this section, the Presi8 dent, in consultation with the Committee, shall 

9 establish a national greenhouse gas registry. 

10 ‘‘(B) ADMINISTRATION.—The registry 

11 shall be administered by the Secretary in ac12 cordance with applicable provisions of— 

13 ‘‘(i) this section; and 

14 ‘‘(ii) the Department of Energy Orga15 nization Act (42 U.S.C. 7101 et seq.). 

16 ‘‘(2) DESIGNATION.—On establishment of the 

17 registry under paragraph (1) and issuance of the 

18 guidelines in accordance with subsection (d)(1), the 

19 registry shall serve as the depository for the United 

20 States for data on greenhouse gas emissions and 

21 emission reductions that are collected from and re22 ported by persons or entities that own, or conduct 

23 business and other operations at, 1 or more facilities 

24 in the United States. 

25 ‘‘(3) PARTICIPATION.— 
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1 ‘‘(A) IN GENERAL.—Any person or entity 

2 conducting business or other activities in the 

3 United States may, in accordance with the 

4 guidelines issued under subsection (d)(1) and 

5 the conditions described in subparagraph (B), 

6 voluntarily report to the registry— 

7 ‘‘(i) total levels of greenhouse gas 

8 emissions of the person or entity; and 

9 ‘‘(ii) certified emission reductions of 

10 the person or entity. 

11 ‘‘(B) CONDITIONS.—The conditions de12 scribed in this subparagraph are that— 

13 ‘‘(i) with respect to a report described 

14 in subparagraph (A)(i), the report rep15 resents a complete and accurate inventory 

16 of— 

17 ‘‘(I) greenhouse gas emissions 

18 from facilities of, and operations con19 ducted by, the person or entity within 

20 the United States; and 

21 ‘‘(II) any domestic or inter22 national greenhouse gas emission re23 duction activities of the person or en24 tity; and 
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•S 388 IS

1 ‘‘(ii) with respect to a report described 

2 in subparagraph (A)(ii), the reductions 

3 have been verified by an independent third4 party or other process— 

5 ‘‘(I) in accordance with the 

6 guidelines issued under subsection 

7 (d)(1)(B)(ii); or 

8 ‘‘(II) by other means determined 

9 to be appropriate by the Secretary. 

10 ‘‘(4) CONFIDENTIALITY OF INFORMATION.—

11 Trade secret information, and commercial and finan12 cial information that is privileged and confidential, 

13 that is submitted to the registry under paragraph 

14 (3) or otherwise made available under any other pro15 vision of this section may be disclosed by the reg16 istry only in accordance with section 552(b)(4) of 

17 title 5, United States Code. 

18 ‘‘(d) IMPLEMENTATION.— 

19 ‘‘(1) GUIDELINES.— 

20 ‘‘(A) IN GENERAL.—Not later than 1 year 

21 after the date of establishment of the registry 

22 under subsection (c)(1)(A), the Secretary, in 

23 consultation with the Committee, shall issue 

24 guidelines establishing procedures for the ad25 ministration of the registry. 
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1 ‘‘(B) CONTENTS.—The guidelines issued 

2 under subparagraph (A) shall include— 

3 ‘‘(i) means and methods by which a 

4 person or entity may determine, quantify, 

5 and report, by appropriate and credible 

6 means, annual baseline emission levels of 

7 the person or entity, taking into consider8 ation any reports made by the person or 

9 entity under other Federal programs; 

10 ‘‘(ii) procedures for the use of an 

11 independent third-party or other effective 

12 verification process for emission levels and 

13 reductions reported under subsection 

14 (c)(3)(A) that are developed— 

15 ‘‘(I) in accordance with authority 

16 available to the Secretary under this 

17 section and other applicable provisions 

18 of law; and 

19 ‘‘(II) by taking into consider20 ation, to the maximum extent prac21 ticable— 

22 ‘‘(aa) the costs, risks, and 

23 voluntary nature of the registry; 

24 and 

25 ‘‘(bb) other relevant factors; 
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•S 388 IS

1 ‘‘(iii)(I) a range of reference cases for 

2 reporting of project-based emission reduc3 tions in various sectors; and 

4 ‘‘(II) any benchmark and default 

5 methodologies and practices that may be 

6 used as reference cases for eligible 

7 projects; 

8 ‘‘(iv) safeguards— 

9 ‘‘(I) to prevent and address du10 plicative reporting (including inad11 vertent reporting) of the same green12 house gas emissions or emission re13 ductions by more than 1 reporting 

14 person or entity; and 

15 ‘‘(II) to provide for corrections 

16 and adjustments in data, as nec17 essary, in cases of duplicative report18 ing; 

19 ‘‘(v) procedures and criteria for the 

20 review and registration of ownership or 

21 holding of all or any portion of a reported, 

22 independently-verified emission reduction 

23 project, action, or measure; 

24 ‘‘(vi) measures, or a process, for pro25 viding to a person or entity participating 
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•S 388 IS

1 in the registry such appropriate number of 

2 transferable credits with unique serial 

3 numbers as reflects the verified greenhouse 

4 gas emission reductions accomplished by 

5 the person or entity; and 

6 ‘‘(vii) such accounting provisions as 

7 are necessary to permit any change in reg8 istration or transfer of ownership of a 

9 credit described in clause (vi) that results 

10 from a voluntary, private transaction be11 tween 1 or more persons or entities, in12 cluding the requirement that the Secretary 

13 shall be notified of any such change or 

14 transfer not later than 30 days after the 

15 date on which the change or transfer is ef16 fectuated. 

17 ‘‘(2) CONSIDERATION.—In developing the 

18 guidelines under paragraph (1), the Secretary shall 

19 take into consideration— 

20 ‘‘(A)(i) the guidelines for voluntary emis21 sion reporting issued under section 1605(b), as 

22 in effect as of the date of enactment of this sec23 tion; 

24 ‘‘(ii) the experience of the Secretary in ap25 plying those guidelines; and 
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1 ‘‘(iii) any revision to those guidelines initi2 ated by the Secretary in response to any direc3 tive of the President issued before the date of 

4 enactment of this section; 

5 ‘‘(B) protocols and guidelines developed 

6 under any Federal, State, local, or private vol7 untary greenhouse gas emission reporting or re8 duction program; 

9 ‘‘(C) the differences between, and potential 

10 uniqueness of the facilities, operations, and 

11 business and other relevant practices of, per12 sons and entities in the private and public sec13 tors that the Secretary expects to participate in 

14 the registry; 

15 ‘‘(D) issues, such as comparability, that 

16 are associated with the reporting of emission 

17 baselines and reductions for various projects 

18 and activities; 

19 ‘‘(E) the appropriate level or threshold of 

20 emissions applicable to a facility, project, or ac21 tivity of a person or entity that may be reason22 ably and cost-effectively identified, measured, 

23 and voluntarily reported, taking into consider24 ation— 
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1 ‘‘(i) different types of facilities, 

2 projects, and activities; and 

3 ‘‘(ii) the de minimis nature, and 

4 sources, of certain emissions; and 

5 ‘‘(F) any other factor that the Secretary 

6 determines to be appropriate. 

7 ‘‘(3) EXPERTS AND CONSULTANTS.— 

8 ‘‘(A) IN GENERAL.—In accordance with 

9 section 3109 of title 5, United Sates Code, the 

10 Secretary and any member of the Committee 

11 may secure the services of 1 or more experts or 

12 consultants in the private and nonprofit sectors 

13 in the areas of greenhouse gas measurement, 

14 certification, and emission trading. 

15 ‘‘(B) GRANTS, CONTRACTS, AND AGREE16 MENTS.—In securing a service under subpara17 graph (A), the Secretary or the member of the 

18 Committee securing the service may use any 

19 grant, contract, cooperative agreement, or other 

20 arrangement authorized by applicable law and 

21 available to the Secretary or the member of the 

22 Committee. 

23 ‘‘(4) TRANSFERABILITY OF PRIOR REPORTS.—

24 An emission report or reduction made by a person 

25 or entity under section 1605(b), or under any other 
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1 Federal or State voluntary greenhouse gas emission 

2 reduction program, may be independently verified 

3 and reported to the registry in accordance with the 

4 guidelines issued under paragraph (1). 

5 ‘‘(5) PUBLIC COMMENT.—The Secretary shall— 

6 ‘‘(A) make the guidelines issued under 

7 paragraph (1) available in draft form for public 

8 notice and opportunity for comment for a pe9 riod of at least 90 days; and 

10 ‘‘(B) after that 90-day period, adopt the 

11 guidelines for use in implementing this section. 

12 ‘‘(6) REVIEW AND REVISION.—The Secretary, 

13 through the Committee, shall periodically review 

14 and, as necessary, revise, in accordance with para15 graph (5), the guidelines issued under paragraph 

16 (1). 

17 ‘‘(e) VOLUNTARY AGREEMENTS.— 

18 ‘‘(1) IN GENERAL.—Any person or entity may 

19 voluntarily enter into an agreement with the Sec20 retary to provide that— 

21 ‘‘(A) the person or entity (or any successor 

22 of the person or entity) shall annually report to 

23 the registry the greenhouse gas emissions of the 

24 person or entity (including the sources of those 

25 emissions) that— 
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•S 388 IS

1 ‘‘(i) are from applicable facilities and 

2 operations of the person or entity; and 

3 ‘‘(ii) generate net emissions at a level 

4 above any de minimis threshold specified in 

5 the guidelines issued by the Secretary 

6 under subsection (d)(1); 

7 ‘‘(B) the person or entity (or any successor 

8 of the person or entity)— 

9 ‘‘(i) commits to report to, and partici10 pate in, the registry for a period of at least 

11 5 calendar years; and 

12 ‘‘(ii) any agreement for such a com13 mitment may be renewed by consent of the 

14 person or entity and the Secretary; 

15 ‘‘(C) for purposes of measuring perform16 ance under the agreement, the person or entity 

17 (or any successor of the person or entity) and 

18 the Secretary shall determine— 

19 ‘‘(i) in accordance with the guidelines 

20 issued under subsection (d)(1), a baseline 

21 emission level of the person or entity for a 

22 representative period preceding the effec23 tive date of the agreement; and 
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1 ‘‘(ii) emission reduction goals of the 

2 person or entity, taking into consider3 ation— 

4 ‘‘(I) the baseline emission level 

5 determined under clause (i); and 

6 ‘‘(II) any relevant economic and 

7 operational factors that may affect 

8 the baseline emission level throughout 

9 the term of the agreement; and 

10 ‘‘(D) for certified emission reductions 

11 made relative to the baseline emission level, the 

12 Secretary shall provide, to the person or entity, 

13 at the request of the person or entity, transfer14 able credits with unique assigned serial num15 bers that— 

16 ‘‘(i) may be used by the person or en17 tity toward meeting emission reduction 

18 goals established under the agreement; 

19 ‘‘(ii) may be transferred, through a 

20 voluntary, private transaction, to any other 

21 person or entity; or 

22 ‘‘(iii) shall be applicable toward any 

23 incentive, market-based, or regulatory pro24 gram determined by Congress to be nec25 essary and feasible to reduce the risk of 
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1 climate change and effects of climate 

2 change. 

3 ‘‘(2) PUBLIC NOTICE AND COMMENT.— 

4 ‘‘(A) IN GENERAL.—Not later than 30 

5 days before the date on which an agreement de6 scribed in paragraph (1) is finalized, the Sec7 retary shall— 

8 ‘‘(i) publish in the Federal Register a 

9 notice of finalization for the agreement; 

10 and 

11 ‘‘(ii) provide an opportunity for writ12 ten public comment. 

13 ‘‘(B) COMMENTS.—The Secretary— 

14 ‘‘(i) shall review each comment re15 ceived under subparagraph (A)(ii); and 

16 ‘‘(ii) after reviewing the comments, 

17 may— 

18 ‘‘(I) withdraw the agreement de19 scribed in paragraph (1); or 

20 ‘‘(II) agree with each person or 

21 entity that is a party to the agree22 ment to— 

23 ‘‘(aa) revise and finalize the 

24 agreement; or 
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1 ‘‘(bb) finalize the agreement 

2 without substantive change. 

3 ‘‘(C) AVAILABILITY.—An agreement de4 scribed in paragraph (1) shall be— 

5 ‘‘(i) maintained in the registry; and 

6 ‘‘(ii) made available to the public. 

7 ‘‘(3) EMISSIONS IN EXCESS.—If a person or en8 tity fails to certify that emissions from applicable fa9 cilities of the person or entity are less than the emis10 sion reduction goals of the person or entity con11 tained in an agreement described in paragraph (1), 

12 the person or entity shall take such actions as are 

13 necessary to reduce the emissions of the person or 

14 entity, including— 

15 ‘‘(A) the redemption of any transferable 

16 credits of the person or entity that were ac17 quired in previous years; 

18 ‘‘(B) the acquisition, through private, vol19 untary agreements, of transferable credits from 

20 other persons or entities participating in the 

21 registry; or 

22 ‘‘(C) the undertaking of additional emis23 sion reduction activities in subsequent years, as 

24 determined in accordance with an agreement 

25 between the person or entity and the Secretary. 
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1 ‘‘(4) NO NEW AUTHORITY.—Nothing in this 

2 subsection provides any regulatory or other authority 

3 regarding the reporting of greenhouse gas emissions 

4 or reductions in those emissions. 

5 ‘‘(f) MEASUREMENT AND VERIFICATION.— 

6 ‘‘(1) STANDARDS AND PRACTICES.— 

7 ‘‘(A) IN GENERAL.—The Secretary of 

8 Commerce, acting through the Director of the 

9 National Institute of Standards and Technology 

10 and in consultation with the Secretary, shall de11 velop standards and best practices for accurate 

12 measurement and verification of greenhouse gas 

13 emissions and emission reductions. 

14 ‘‘(B) COMPONENTS.—The standards and 

15 best practices developed under subparagraph 

16 (A) shall address the need for— 

17 ‘‘(i) standardized measurement and 

18 verification practices for reports made by 

19 all persons and entities participating in the 

20 registry, taking into account— 

21 ‘‘(I) protocols and standards al22 ready in use by persons or entities de23 siring to participate in the registry; 

24 ‘‘(II) boundary issues, such as 

25 leakage and shifted use; 
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1 ‘‘(III) avoidance of duplicative 

2 counting and reporting of greenhouse 

3 gas emissions and emission reduc4 tions; and 

5 ‘‘(IV) such other factors as the 

6 Secretary of Commerce and the Sec7 retary determine to be appropriate; 

8 ‘‘(ii) measurement and verification of 

9 actions taken to reduce, avoid, or sequester 

10 greenhouse gas emissions; 

11 ‘‘(iii) measurement, in coordination 

12 with the Secretary of Agriculture, of the 

13 results of the use of carbon sequestration 

14 and carbon recapture technologies, includ15 ing— 

16 ‘‘(I) organic soil carbon seques17 tration practices; and 

18 ‘‘(II) forest preservation and re19 forestation activities that adequately 

20 address the issues of permanence, 

21 leakage, and verification; and 

22 ‘‘(iv) such other measurement and 

23 verification standards as the Secretary of 

24 Commerce, the Secretary of Agriculture, 
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1 and the Secretary determine to be appro2 priate. 

3 ‘‘(2) PUBLIC COMMENT.—The Secretary of 

4 Commerce shall— 

5 ‘‘(A) make the standards and best prac6 tices developed under paragraph (1)(A) avail7 able in draft form for public notice and oppor8 tunity for comment for a period of at least 90 

9 days; and 

10 ‘‘(B) as soon as practicable after the end 

11 of the 90-day period, in coordination with the 

12 Secretary, adopt the standards and best prac13 tices for use in implementing this section. 

14 ‘‘(g) CERTIFIED INDEPENDENT THIRD PARTIES.— 

15 ‘‘(1) CERTIFICATION.—The Secretary and the 

16 Secretary of Commerce, acting through the Director 

17 of the National Institute of Standards, shall develop 

18 standards for certification of parties to verify the ac19 curacy and reliability of reports submitted under 

20 this section, including standards that— 

21 ‘‘(A) prohibit a certified party from par22 ticipating in the registry through the ownership 

23 or transaction of transferable credits recorded 

24 in the registry; 
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1 ‘‘(B) prohibit the receipt by a certified 

2 party of compensation in the form of a commis3 sion received by the certified party based on the 

4 quantity of emission reductions verified by the 

5 certified party; and 

6 ‘‘(C) authorize certified parties to enter 

7 into agreements with persons engaged in trad8 ing of transferable credits recorded in the reg9 istry. 

10 ‘‘(2) LIST OF CERTIFIED PARTIES.—The Sec11 retary shall maintain and, on request of the public 

12 or a person or entity making a report under this sec13 tion, make available, a list of certified parties de14 scribed in paragraph (1), and clients of the certified 

15 parties, that submit 1 or more reports under this 

16 section. 

17 ‘‘(h) REPORT TO CONGRESS.— 

18 ‘‘(1) IN GENERAL.—Not later than 1 year after 

19 the date of issuance of guidelines under subsection 

20 (d)(1), and biennially thereafter, the President, act21 ing through the Committee, shall submit to Congress 

22 a report on the status of the registry. 

23 ‘‘(2) CONTENTS.—The report shall contain— 

24 ‘‘(A) an assessment, expressed in terms of 

25 geographic locations and national emissions 
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1 represented, of the level of participation in the 

2 registry; 

3 ‘‘(B) an assessment of the effectiveness of 

4 voluntary reporting agreements in enhancing 

5 participation in the registry; 

6 ‘‘(C) an assessment of the extent of use of 

7 the registry for emission trading and other pur8 poses; 

9 ‘‘(D) an assessment of progress toward in10 dividual and national emission reduction goals; 

11 and 

12 ‘‘(E)(i) an inventory of administrative ac13 tions implemented, or planned to be imple14 mented, to improve the registry or the guide15 lines issued under subsection (d)(1); and 

16 ‘‘(ii) such recommendations for legislation 

17 to modify this section or section 1605 as the 

18 President determines to be necessary to carry 

19 out this section. 

20 ‘‘(i) REVIEW BY NATIONAL ACADEMY OF

21 SCIENCES.—The Secretary, in consultation with the Com22 mittee, shall— 

23 ‘‘(1) not later than 1 year after the date of 

24 issuance of the guidelines under subsection (d)(1), 

25 enter into an agreement with the National Academy 
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1 of Sciences under which the National Academy of 

2 Sciences shall conduct, not later than 180 days after 

3 the date of execution of the agreement, a review of 

4 the scientific and technological methods, assump5 tions, and standards used by the Secretary and the 

6 Secretary of Commerce in developing the guidelines; 

7 and 

8 ‘‘(2) on completion of the review under sub9 paragraph (A), submit to the President and Con10 gress a report that describes the results of the re11 view (including any recommendations of the Sec12 retary). 

13 ‘‘(j) TERMINATION OF AUTHORITY.—The authority 

14 provided by this section terminates effective December 31, 

15 2010.’’.

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