United States importers international reserve allow-
ances in accordance with this subsection. 
‘‘(2) SOURCE.—International reserve allowances 
under paragraph (1) shall be issued from a special 
reserve of allowances that is separate from, and es-
tablished in addition to, the quantity of allowances 
established under section 711. 
‘‘(3) PRICE.—The price of international reserve 
allowances shall be the fair market value of emission 
allowances during the previous 12 months, as deter-
mined by the Administrator. 
‘‘(4) SERIAL
NUMBER.—The Administrator 
shall assign a unique serial number to each inter-
national reserve allowance issued under this sub-
section. 
‘‘(5) TRADING
SYSTEM.—The Administrator 
may establish, by rule, a system for the sale, ex-
change, purchase, and transfer of international re-
serve allowances. 
‘‘(6) COVERED
ENTITIES.—International re-
serve allowances may not be submitted by covered 
entities to comply with the allowance submission re-
quirements of section 712. 
‘‘(7) PROCEEDS.—All proceeds from the sale of 
international reserve allowances under this sub-
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section shall be deposited in the International Clean 
Technology Fund established under section 722(a). 
‘‘(b) FOREIGN COUNTRY LISTS.— 
‘‘(1) IN GENERAL.—Not later than January 1, 
2019, and annually thereafter, the President shall 
develop and publish in the Federal Register, to-
gether with the determinations under section 764(b), 
2 lists of foreign countries, in accordance with this 
subsection. 
‘‘(2) EXCLUDED
LIST.—The President shall 
identify and publish in a list, to be known as the ‘ex-
cluded list’— 
‘‘(A) each foreign country determined by 
the President under section 764(b)(1) to have 
taken comparable action to limit the greenhouse 
gas emissions of the foreign country; 
‘‘(B) each foreign country determined by 
the President to be responsible for less than 0.5 
percent of total global greenhouse gas emissions 
for the most recent calendar year for which 
emissions and other relevant data are available; 
and 
‘‘(C) each foreign country the United Na-
tions has identified as among the least-devel-
oped of developing countries. 
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‘‘(3) COVERED LIST.—The President shall iden-
tify and publish in a list, to be known as the ‘cov-
ered list’, each foreign country that is not included 
on the excluded list under paragraph (2). 
‘‘(c) WRITTEN DECLARATIONS.— 
‘‘(1) IN GENERAL.—Effective beginning Janu-
ary 1, 2020, a United States importer shall, as a 
condition of importation or withdrawal for consump-
tion from a warehouse of a trade-exposed primary 
good, submit to the Administrator and the appro-
priate office of U.S. Customs and Border Protection 
a written declaration with respect to each such im-
portation or withdrawal. 
‘‘(2) CONTENTS.—A written declaration under 
paragraph (1) shall contain a statement that— 
‘‘(A) the applicable trade-exposed primary 
good is accompanied by a sufficient number of 
international reserve allowances, as determined 
under subsection (d); or 
‘‘(B) the trade-exposed primary good was 
produced in a foreign country on the excluded 
list published under subsection (b)(2). 
‘‘(3) INCLUSION.—A written declaration under 
paragraph (1) shall include the unique serial number 
of each international reserve allowance associated 
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with the importation of the applicable trade-exposed 
primary good. 
‘‘(4) FAILURE
TO
DECLARE.—An imported 
trade-exposed primary good produced in a covered 
foreign country that is not accompanied by a written 
declaration under this subsection shall not be per-
mitted to enter the customs territory of the United 
States. 
‘‘(5) CORRECTED DECLARATION.— 
‘‘(A) IN
GENERAL.—If, after making a 
declaration required under this subsection, an 
importer has reason to believe that the declara-
tion contains information that is not correct, 
the importer shall provide a corrected declara-
tion by not later than 30 days after the date of 
discovery of the error, in accordance with sub-
paragraph (B). 
‘‘(B) METHOD.—A corrected declaration 
under subparagraph (A) shall be in the form of 
a letter or other written statement to the Ad-
ministrator and the office of U.S. Customs and 
Border Protection to which the original declara-
tion was submitted. 
‘‘(d) QUANTITY OF ALLOWANCES REQUIRED.— 
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‘‘(1) METHODOLOGY.—Not later than January 
1, 2018, the Administrator shall establish, by rule, 
a method for calculating the required number of 
international reserve allowances per unit of trade-ex-
posed primary good that a United States importer 
must submit, together with a written declaration 
under subsection (c), for each category or sub-
category of trade-exposed primary goods produced in 
each covered foreign country. 
‘‘(2) INITIAL COMPLIANCE YEAR.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the methodology under paragraph 
(1) shall establish an international reserve al-
lowance requirement (per unit imported into the 
United States) for the initial compliance year 
for each category or subcategory of trade-ex-
posed primary goods produced in each covered 
foreign country that is equal to the quotient ob-
tained by dividing— 
‘‘(i) the total greenhouse gas emis-
sions (including indirect greenhouse gas 
emissions) from the covered foreign coun-
try that are attributable to the category or 
subcategory 
of 
trade-exposed 
primary 
goods produced in that country during the 
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most recent year for which data are avail-
able; by 
‘‘(ii) the total quantity of the category 
or subcategory of trade-exposed primary 
good produced in the covered foreign coun-
try during the same calendar year. 
‘‘(B) ADJUSTMENTS.—The Administrator 
shall adjust the requirement under subpara-
graph (A) to take into account the level of eco-
nomic development of the covered foreign coun-
try in which the trade-exposed primary goods 
were produced. 
‘‘(3) SUBSEQUENT
COMPLIANCE
YEARS.—For 
each subsequent compliance year, the Administrator 
shall revise the international reserve allowance re-
quirement applicable to each category or subcategory 
of imported trade-exposed primary goods produced 
in each covered foreign country to reflect changes in 
the factors described in paragraph (2). 
‘‘(4) PUBLICATION.—Not later than 90 days 
before the beginning of each compliance year, the 
Administrator shall publish in the Federal Register 
a schedule describing the required number of inter-
national reserve allowances for each category or sub-
category of imported trade-exposed primary goods 
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produced in each covered foreign country, as cal-
culated under this subsection. 
‘‘(e) INTERNATIONAL EMISSION ALLOWANCES AND 
OFFSET CREDITS.—A United States importer may satisfy 
up to 15 percent of its obligation under this section by 
submitting, in lieu of an international reserve allowance, 
an international emission allowance approved by the Ad-
ministrator under section 751 or an international offset 
credit approved by the Administrator under section 752. 
‘‘(f) RETIREMENT OF ALLOWANCES.—The Adminis-
trator shall retire each international reserve allowance 
submitted to achieve compliance with this section. Treat-
ment of international allowances and international offset 
credits submitted under this section shall be governed by 
section 753. 
‘‘(g) CONSISTENCY WITH INTERNATIONAL AGREE-
MENTS.—The Administrator, in consultation with the Sec-
retary of State, shall adjust the international reserve al-
lowance requirements established under this section (in-
cluding the quantity of international reserve allowances re-
quired for each category or subcategory of trade-exposed 
primary goods produced in a covered foreign country) as 
the Administrator determines to be necessary to ensure 
that the United States complies with all applicable inter-
national agreements. 
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100 
‘‘(h) FINAL REGULATIONS.—Not later than January 
1, 2018, the Administrator shall promulgate such regula-
tions as the Administrator determines to be necessary to 
carry out this section. 
‘‘SEC. 766. ADJUSTMENT OF INTERNATIONAL RESERVE AL-
LOWANCE REQUIREMENTS. 
‘‘(a) IN GENERAL.—Not later than January 1, 2023, 
and annually thereafter, the President shall prepare and 
submit to Congress a report that assesses the effectiveness 
of the applicable international reserve allowance require-
ments under section 765 with respect to the trade-exposed 
primary goods produced in each covered foreign country. 
‘‘(b) INADEQUATE REQUIREMENTS.—If the Presi-
dent determines that an applicable international reserve 
allowance requirement is not adequate to achieve the pur-
poses of this subtitle, the President, simultaneously with 
the submission of the report under subsection (a), shall— 
‘‘(1) adjust the requirement; or 
‘‘(2) take such other action as the President is 
authorized to take by law and determines to be nec-
essary to improve the effectiveness of the require-
ment, in accordance with all applicable international 
agreements. 
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101 
‘‘(c) EFFECTIVE DATE.—An adjustment under sub-
section (b)(1) shall take effect beginning on January 1 
of a compliance year, as determined by the President. 
‘‘Subtitle H—Standards for Non-
covered 
Facilities 
and 
Coal- 
Fired Power Plants 
‘‘SEC. 
771. 
PERFORMANCE 
STANDARDS 
FOR 
CERTAIN 
SOURCES THAT ARE NOT COVERED ENTITIES. 
‘‘(a) DEFINITION.—For purposes of this section, the 
term ‘performance standard source’ means a stationary 
source of methane or nitrous oxide emissions that are not 
covered by the compliance requirements of section 712 and 
that exceed 10,000 carbon dioxide equivalents per year, 
including coal mines, landfills, wastewater treatment oper-
ations, and animal feeding operations. Such term shall not 
include sources of emissions from agricultural soil man-
agement, rice cultivation, field burning of agricultural resi-
dues, or management of forest lands. 
‘‘(b) LIST OF CATEGORIES.—Not later than 90 days 
after the date of enactment of this title, the Administrator 
shall publish a list of all categories or subcategories of per-
formance standard sources subject to the requirements of 
this section. The Administrator shall review such list at 
least once every 5 years, and shall revise the list as nec-
essary. 
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102 
‘‘(c) RULEMAKING.—Not later than 2 years after ini-
tial publication of the list under subsection (b), the Ad-
ministrator shall issue a final rule for each category or 
subcategory of performance standard sources requiring 
such sources to operate in conformance with the standards 
established under subsection (d). Such rules shall establish 
compliance dates for each category or subcategory listed 
under subsection (b), which shall be no later than 3 years 
after the issuance of the rule under this subsection. The 
Administrator shall, not less often than every 8 years, re-
view and, as necessary, revise the rules issued under this 
subsection, taking into account developments in practices, 
processes, and control technologies. 
‘‘(d) STANDARDS.— 
‘‘(1) ESTABLISHMENT.—The rules issued under 
subsection (c) shall establish, for each category or 
subcategory of performance standard sources listed 
under subsection (b), standards for the best avail-
able control technologies and practices for reducing 
methane or nitrous oxide emissions from sources in 
that category or subcategory. 
‘‘(2) CONSIDERATIONS.—In establishing stand-
ards under paragraph (1), the Administrator shall 
consider— 
‘‘(A) compliance costs; 
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103 
‘‘(B) health and environmental impacts not 
associated with methane and nitrous oxide 
emissions; 
‘‘(C) energy requirements; and 
‘‘(D) technologies and practices developed 
or used outside the United States. 
‘‘(3) NEW SOURCES.—In establishing standards 
under paragraph (1), the Administrator may impose 
stricter requirements for new sources than for 
sources in existence before the issuance of the rule 
under subsection (c). 
‘‘(4) 
ALTERNATIVE
COMPLIANCE
THRESH-
OLD.—The Administrator may establish an optional 
alternative compliance threshold for a category or 
subcategory of performance standard sources based 
on the volume or size of the source’s operations, 
where such alternative threshold is demonstrated to 
be an accurate indicator of the mass of methane and 
nitrous oxide emissions from the source and is equiv-
alent to a 10,000 carbon dioxide equivalent per year 
threshold. 
‘‘(5) ALTERNATIVE MEANS OF COMPLIANCE.— 
The Administrator may approve a request by an 
owner or operator of a performance standard source 
to use an alternative means of compliance with the 
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104 
requirements for such source under the applicable 
rule issued under subsection (c) if such alternative 
will achieve a reduction in emissions at least equal 
to reductions achieved under the performance stand-
ards in the applicable rule. 
‘‘(e) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the Administrator’s duties 
or authority under section 111 or any other section of this 
Act. 
‘‘SEC. 772. PERFORMANCE STANDARDS FOR NEW COAL- 
FIRED POWER PLANTS. 
‘‘(a) COVERED EGUS DEFINED.—For purposes of 
this section, the term ‘covered EGU’ means an electric 
generating unit that— 
‘‘(1) has a rated capacity of 25 megawatts or 
more; 
‘‘(2) derives at least 50 percent of its annual 
fuel input from coal, petroleum coke, or any com-
bination of these fuels; and 
‘‘(3) commences construction on or after Janu-
ary 1, 2009. 
‘‘(b) STANDARDS OF EMISSION PERFORMANCE FOR 
COVERED ELECTRIC GENERATING UNITS.— 
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105 
‘‘(1) OBLIGATIONS OF COVERED EGUS.—Each 
covered EGU shall achieve, on the compliance sched-
ule set forth in paragraph (2), either— 
‘‘(A) the capture and geological sequestra-
tion of not less than 85 percent of the total car-
bon dioxide emissions produced by the covered 
EGU on an annual average basis; or 
‘‘(B) a greater rate of capture and geologi-
cal sequestration as established by regulations 
promulgated by the Administrator under sub-
section (c), provided that such regulations were 
promulgated prior to commencement of con-
struction of the covered EGU. 
‘‘(2) COMPLIANCE
SCHEDULE.—(A) Covered 
EGUs that commence operation prior to January 1, 
2020, must be in compliance with the emission per-
formance standard applicable under regulations pro-
mulgated under subsection (c) by either— 
‘‘(i) January 1, 2016; or 
‘‘(ii) four years after the covered EGU 
commences operation, 
whichever occurs later. 
‘‘(B) Any other covered EGU must be in com-
pliance with the emission performance standard on 
the date when it commences operation except that, 
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106 
prior to January 1, 2025, such EGU may obtain a 
compliance date extension of up to 18 months if the 
owner or operator can demonstrate to the Adminis-
trator’s satisfaction that it is unable to meet the 
emission performance standard because of technical 
infeasibility. 
‘‘(c) REGULATIONS.— 
‘‘(1) INITIAL
REGULATIONS.—Not later than 
180 days after the date of enactment of this title, 
the Administrator shall promulgate regulations im-
plementing the requirements of this section. 
‘‘(2) REVISED REGULATIONS.—Not later than 
January 1, 2012, and at 5-year intervals thereafter, 
the Administrator shall, by rule, increase the min-
imum rate of capture and geological sequestration of 
carbon dioxide emissions under subsection (b)(1)(A) 
if the Administrator determines that a greater rate 
of capture and geological sequestration is achievable 
through the application of the best available control 
technology, taking into account the cost of achieving 
such increase, energy impacts, and any health and 
environmental impacts not associated with carbon 
dioxide emissions.’’. 
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107 
SEC. 102. CONFORMING AMENDMENTS. 
(a) FEDERAL ENFORCEMENT.—Section 113 of the 
Clean Air Act (42 U.S.C. 7413) is amended as follows: 
(1) In subsection (a)(3), by striking ‘‘or title 
VI,’’ and inserting ‘‘title VI, or title VII,’’. 
(2) In subsection (b), by striking ‘‘or a major 
stationary source’’ and inserting ‘‘a major stationary 
source, or a covered entity under title VII,’’ in the 
material preceding paragraph (1). 
(3) In paragraph (2), by striking ‘‘or title VI’’ 
and inserting ‘‘title VI, or title VII’’. 
(4) In subsection (c)— 
(A) in the first sentence of paragraph (1), 
by striking ‘‘or title VI (relating to strato-
spheric ozone control),’’ and inserting ‘‘title VI 
(relating to stratospheric ozone control), or title 
VII (relating to reduction of greenhouse gas 
emissions),’’; and 
(B) in the first sentence of paragraph (3), 
by striking ‘‘or VI’’ and inserting ‘‘VI, or VII’’. 
(5) In subsection (d)(1)(B), by striking ‘‘or VI’’ 
and inserting ‘‘VI, or VII’’. 
(6) In subsection (f), in the first sentence, by 
striking ‘‘or VI’’ and inserting ‘‘VI, or VII’’. 
(b) INSPECTIONS, MONITORING, AND ENTRY.—Sec-
tion 114(a) of the Clean Air Act (42 U.S.C. 7414(a)) is 
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108 
amended by striking ‘‘section 112,’’ and all that follows 
through ‘‘(ii)’’ and inserting the following: ‘‘section 112, 
any regulation of solid waste combustion under section 
129, or any regulation of greenhouse gas emissions under 
title VII, (ii)’’. 
(c) ADMINISTRATIVE PROCEEDINGS AND JUDICIAL 
REVIEW.—Section 307 of the Clean Air Act (42 U.S.C. 
7607) is amended as follows: 
(1) In subsection (a), by striking ‘‘, or section 
306’’ and inserting ‘‘section 306,or title VII’’. 
(2) In subsection (b)(1)— 
(A) by striking ‘‘,,’’ and inserting ‘‘,’’ in 
each place such punctuation appears; and 
(B) by striking ‘‘section 120,’’ in the first 
sentence and inserting ‘‘section 120, any final 
action under title VII,’’. 
(3) In subsection (d)(1) by amending subpara-
graph (S) to read as follows: 
‘‘(S) the promulgation or revision of any 
regulation under title VII,’’. 
SEC. 
103. 
COMPLEMENTARY 
POLICIES 
FOR 
HYDROFLUOROCARBONS. 
(a) NATIONAL RECYCLING AND EMISSION REDUC-
TION PROGRAM.—Section 608 of the Clean Air Act (42 
U.S.C. 7671g) is amended as follows: 
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109 
(1) By adding at the end the following: 
‘‘(d) DEFINITION OF HYDROFLUOROCARBON SUB-
STITUTE.—In this section, the term ‘hydrofluorocarbon 
substitute’ means a hydrofluorocarbon or other green-
house gas that has a global warming potential of more 
than 150 and that is used in or for types of equipment, 
appliances, or processes that previously relied on class I 
or class II substances.’’. 
(2) In subsection (a), by adding the following 
new paragraph at the end: 
‘‘(4)(A) Not later than 1 year after the date of 
enactment of this paragraph, the Administrator shall 
promulgate regulations establishing standards and 
requirements regarding the sale or distribution, or 
offer for sale and distribution in interstate com-
merce, use, and disposal of hydrofluorocarbon sub-
stitutes for class I and class II substances not cov-
ered by paragraph (1), including the use, recycling, 
and disposal of those hydrofluorocarbon substitutes 
during the maintenance, service, repair, or disposal 
of appliances and industrial process refrigeration 
equipment. 
‘‘(B) The standards and requirements estab-
lished under subparagraph (A) shall take effect not 
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110 
later than 1 year after the date of promulgation of 
the regulations.’’. 
(3) In subsection (b), by inserting ‘‘and 
hydrofluorocarbon substitutes for those substances’’ 
after ‘‘substances’’ in the matter preceding para-
graph (1), by inserting ‘‘(or hydrofluorocarbon sub-
stitutes for those substances)’’ after ‘‘substances’’ in 
paragraph 
(1), 
and 
by 
inserting 
‘‘(or 
a 
hydrofluorocarbon substitute for such substance)’’ 
after ‘‘substance’’ in paragraphs (2) and (3) in each 
place such term appears. 
(b) SERVICING
OF MOTOR VEHICLE AIR CONDI-
TIONERS.—Section 609 of the Clean Air Act (42 U.S.C. 
7671h) is amended as follows: 
(1) In subsection (b), by adding at the end the 
following: 
‘‘(5) The term ‘hydrofluorocarbon substitute’ 
means a hydrofluorocarbon or other greenhouse gas 
that has a global warming potential of more than 
150 and that is used in or for types of equipment, 
appliances, or processes that previously relied on 
class I or class II substances.’’. 
(2) In subsection (e)— 
(A) by striking ‘‘OF CLASS I OR CLASS II 
SUBSTANCES’’ in the subsection heading; and 
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