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sions. Not later than 2 years after the date of enactment 
of this section, the Administrator shall promulgate final 
regulations under the existing authorities of this Act or 
finalize the proposed finding. Such regulations shall not 
apply to specific types, classes, categories, or other suit-
able groupings of emissions sources that the Adminis-
trator finds are subject to adequate regulation. 
‘‘(b) INTERNATIONAL
BLACK
CARBON
MITIGA-
TION.— 
‘‘(1) REPORT.—Not later than 1 year after the 
date of enactment of this section, the Administrator, 
in coordination with the Secretary of State and 
other appropriate Federal agencies, shall transmit a 
report to Congress on the amount, type, and direc-
tion of all present United States financial, technical, 
and related assistance to foreign countries to reduce, 
mitigate, and otherwise abate black carbon emis-
sions. 
‘‘(2) OTHER OPPORTUNITIES.—The report re-
quired under paragraph (1) shall also identify oppor-
tunities and recommendations, including action 
under existing authorities, to achieve significant 
black carbon emission reductions in foreign countries 
through technical assistance or other approaches 
to— 
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‘‘(A) promote sustainable solutions to 
bring clean, efficient, safe, and affordable 
stoves, fuels, or both stoves and fuels to resi-
dents of developing countries that are reliant on 
solid fuels such as wood, dung, charcoal, coal, 
or crop residues for home cooking and heating, 
so as to help reduce the public health, environ-
mental, and economic impacts of black carbon 
emissions from these sources by— 
‘‘(i) identifying key regions for large- 
scale demonstration efforts, and key part-
ners in each such region; and 
‘‘(ii) developing for each such region a 
large-scale implementation strategy with a 
goal of collectively reaching 20,000,000 
homes over 5 years with interventions that 
will— 
‘‘(I) increase stove efficiency by 
over 50 percent (or such other goal as 
determined by the Administrator); 
‘‘(II) reduce emissions of black 
carbon by over 60 percent (or such 
other goal as determined by the Ad-
ministrator); and 
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‘‘(III) reduce the incidence of se-
vere pneumonia in children under 5 
years old by over 30 percent (or such 
other goal as determined by the Ad-
ministrator); 
‘‘(B) make technological improvements to 
diesel engines and provide greater access to 
fuels that emit less or no black carbon; 
‘‘(C) reduce unnecessary agricultural or 
other biomass burning where feasible alter-
natives exist; 
‘‘(D) reduce unnecessary fossil fuel burn-
ing that produces black carbon where feasible 
alternatives exist; 
‘‘(E) reduce other sources of black carbon 
emissions; and 
‘‘(F) improve capacity to achieve greater 
compliance with existing laws to address black 
carbon emissions.’’. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 334. STATES. 
Section 116 of the Clean Air Act (42 U.S.C. 7416) 
is amended by adding the following at the end thereof: 
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‘‘For the purposes of this section, the phrases ‘standard 
or limitation respecting emissions of air pollutants’ and 
‘requirements respecting control or abatement of air pollu-
tion’ shall include any provision to: cap greenhouse gas 
emissions, require surrender to the State or a political 
subdivision thereof of emission allowances or offset credits 
established or issued under this Act, and require the use 
of such allowances or credits as a means of demonstrating 
compliance with requirements established by a State or 
political subdivision thereof.’’. 
SEC. 335. STATE PROGRAMS. 
Title VIII of the Clean Air Act, as added by section 
331 of this Act and amended by several sections of this 
Act, is further amended by adding after part E (as added 
by section 333(c) of this Act) the following new part: 
‘‘PART F—MISCELLANEOUS 
‘‘SEC. 861. STATE PROGRAMS. 
‘‘Notwithstanding section 116, no State or political 
subdivision thereof shall implement or enforce a cap and 
trade program that covers any capped emissions emitted 
during the years 2012 through 2017. For purposes of this 
section, the term ‘cap and trade program’ means a system 
of greenhouse gas regulation under which a State or polit-
ical subdivision issues a limited number of tradable instru-
ments in the nature of emission allowances and requires 
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that sources within its jurisdiction surrender such 
tradeable instruments for each unit of greenhouse gases 
emitted during a compliance period. For purposes of this 
section, a ‘cap-and-trade program’ does not include a tar-
get or limit on greenhouse gas emissions adopted by a 
State or political subdivision that is implemented other 
than through the issuance and surrender of a limited num-
ber of tradable instruments in the nature of emission al-
lowances, nor does it include any other standard, limit, 
regulation, or program to reduce greenhouse gas emissions 
that is not implemented through the issuance and sur-
render of a limited number of tradeable instruments in 
the nature of emission allowances. For purposes of this 
section, the term ‘cap and trade program’ does not in-
clude, among other things, fleet-wide motor vehicle emis-
sion requirements that allow greater emissions with in-
creased vehicle production, or requirements that fuels, or 
other products, meet an average pollution emission rate 
or lifecycle greenhouse gas standard. 
‘‘SEC. 862. GRANTS FOR SUPPORT OF AIR POLLUTION CON-
TROL PROGRAMS. 
‘‘The Administrator is authorized to make grants to 
air pollution control agencies pursuant to section 105 for 
purposes of assisting in the implementation of programs 
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to address global warming established under the Safe Cli-
mate Act.’’. 
SEC. 336. ENFORCEMENT. 
(a) REMAND.—Section 307(b) of the Clean Air Act 
(42 U.S.C. 7607(b)) is amended by adding the following 
new paragraphs at the end thereof: 
‘‘(3) If the court determines that any action of 
the Administrator is arbitrary, capricious, or other-
wise unlawful, the court may remand such action, 
without vacatur, if vacatur would impair or delay 
protection of the environment or public health or 
otherwise undermine the timely achievement of the 
purposes of this Act. 
‘‘(4) If the court determines that any action of 
the Administrator is arbitrary, capricious, or other-
wise unlawful, and remands the matter to the Ad-
ministrator, the Administrator shall complete final 
action on remand within an expeditious time period 
no longer than the time originally allowed for the ac-
tion or 1 year, whichever is less, unless the court on 
motion determines that a shorter or longer period is 
necessary, appropriate, and consistent with the pur-
poses of this Act. The court of appeals shall have ju-
risdiction to enforce a deadline for action on remand 
under this subparagraph.’’. 
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(b) PETITION
FOR
RECONSIDERATION.—Section 
307(d)(7)(B) of the Clean Air Act (42 U.S.C. 
7607(d)(7)(B)) is amended as follows: 
(1) By inserting after the second sentence ‘‘If 
a petition for reconsideration is filed, the Adminis-
trator shall take final action on such petition, in-
cluding promulgation of final action either revising 
or determining not to revise the action for which re-
consideration is sought, within 150 days after the 
petition is received by the Administrator or the peti-
tion shall be deemed denied for the purpose of judi-
cial review.’’. 
(2) By amending the third sentence to read as 
follows: ‘‘Such person may seek judicial review of 
such denial, or of any other final action, by the Ad-
ministrator, in response to a petition for reconsider-
ation, in the United States court of appeals for the 
appropriate circuit (as provided in subsection (b)).’’. 
SEC. 337. 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, title VII, or title VIII’’. 
(2) In subsection (b), by striking ‘‘or a major 
stationary source’’ and inserting ‘‘a major stationary 
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source, or a covered EGU under title VIII’’ in the 
material preceding paragraph (1). 
(3) In paragraph (2) of subsection (b), by strik-
ing ‘‘or title VI’’ and inserting ‘‘title VI, title VII, 
or title VIII’’. 
(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, 
title VII, or title VIII,’’; and 
(B) in the first sentence of paragraph (3), 
by striking ‘‘or VI’’ and inserting ‘‘VI, VII, or 
VIII’’. 
(5) In subsection (d)(1)(B), by striking ‘‘or VI’’ 
and inserting ‘‘VI, VII, or VIII’’. 
(6) In subsection (f), in the first sentence, by 
striking ‘‘or VI’’ and inserting ‘‘VI, VII, or VIII’’. 
(b) RETENTION
OF STATE AUTHORITY.—Section 
116 of the Clean Air Act (42 U.S.C. 7416) is amended 
as follows: 
(1) By striking ‘‘and 233’’ and inserting ‘‘233’’. 
(2) By striking ‘‘of moving sources)’’ and in-
serting ‘‘of moving sources), and 861 (preempting 
certain State greenhouse gas programs for a limited 
time)’’. 
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(c) INSPECTIONS, MONITORING, AND ENTRY.—Sec-
tion 114(a) of the Clean Air Act (42 U.S.C. 7414(a)) is 
amended by striking ‘‘section 112,’’ and all that follows 
through ‘‘(ii)’’ and inserting the following: ‘‘section 112, 
or any regulation of greenhouse gas emissions under title 
VII or VIII, (ii)’’. 
(d) ENFORCEMENT.—Subsection (f) of section 304 of 
the Clean Air Act (42 U.S.C. 7604(f)) is amended as fol-
lows: 
(1) By striking ‘‘; or’’ at the end of paragraph 
(3) thereof and inserting a comma. 
(2) By striking the period at the end of para-
graph (4) thereof and inserting ‘‘, or’’. 
(3) By adding the following after paragraph (4) 
thereof: 
‘‘(5) any requirement of title VII or VIII.’’. 
(e) 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 or 
VIII’’. 
(2) In subsection (b)(1)— 
(A) by striking ‘‘,,’’ and inserting ‘‘,’’ in 
each place such punctuation appears; and 
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(B) by striking ‘‘section 120,’’ in the first 
sentence and inserting ‘‘section 120, any final 
action under title VII or VIII,’’. 
(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 or VIII,’’. 
SEC. 338. DAVIS-BACON COMPLIANCE. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and in a manner consistent with other provi-
sions in this Act, to receive emission allowances or funding 
under this Act, or the amendments made by this Act, the 
recipient shall provide reasonable assurances that all la-
borers and mechanics employed by contractors and sub-
contractors on projects funded directly by or assisted in 
whole or in part by and through the Federal Government 
pursuant to this Act, or the amendments made by this 
Act, or by any entity established in accordance with this 
Act, or the amendments made by this Act, including the 
Carbon Storage Research Corporation, will be paid wages 
at rates not less than those prevailing on projects of a 
character similar in the locality as determined by the Sec-
retary of Labor in accordance with subchapter IV of chap-
ter 31 of title 40, United States Code (commonly known 
as the ‘‘Davis-Bacon Act’’). With respect to the labor 
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standards specified in this section, the Secretary of Labor 
shall have the authority and functions set forth in Reorga-
nization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 
U.S.C. App.) and section 3145 of title 40, United States 
Code. 
(b) EXEMPTION.—Neither subsection (a) nor the re-
quirements of subchapter IV of chapter 31 of title 40, 
United States Code, shall apply to retrofitting of the fol-
lowing: 
(1) Single family homes (both attached and de-
tached) under section 202. 
(2) Owner-occupied residential units in larger 
buildings that have their own dedicated space-condi-
tioning systems under section 202. 
(3) Residential buildings (as defined in section 
202(a)(5)) if designed for residential use by less 
than 4 families. 
(4) Nonresidential buildings (as defined in sec-
tion 202(a)(1)) if the net interior space of such non-
residential building is less than 6,500 square feet. 
SEC. 339. NATIONAL STRATEGY FOR DOMESTIC BIOLOGI-
CAL CARBON SEQUESTRATION. 
Not later than 1 year after the date of enactment 
of this Act, the Administrator of the Environmental Pro-
tection Agency, in consultation with the Secretary of En-
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ergy, the Secretary of Agriculture, the Secretary of the 
Interior, and the heads of such other relevant Federal 
agencies as the President may designate, shall submit to 
Congress a report setting forth a unified and comprehen-
sive strategy to address the key legal, regulatory, techno-
logical, and other barriers to maximizing the potential for 
sustainable biological sequestration of carbon within the 
United States. 
SEC. 340. REDUCING ACID RAIN AND MERCURY POLLU-
TION. 
Not later than 18 months after the date of enactment 
of this Act, the Administrator shall submit to Congress 
a report that analyzes the effects of different carbon diox-
ide reduction strategies and technologies on the emissions 
of mercury, sulfur dioxide, and nitrogen oxide, which 
cause acid rain, particulate matter, ground level ozone, 
mercury contamination, and other environmental prob-
lems. The report shall assess a variety of carbon reduction 
technologies, including the application of various carbon 
capture and sequestration technologies for both new and 
existing power plants. The report shall assess the current 
scientific and technical understanding of the interplay be-
tween the various technologies and emissions of air pollut-
ants, identify hurdles to strategies that could cost-effec-
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tively reduce emissions of multiple pollutants, and make 
appropriate recommendations. 
Subtitle D—Carbon Market 
Assurance 
SEC. 341. CARBON MARKET ASSURANCE. 
(a) AMENDMENT.—The Federal Power Act (16 
U.S.C. 791a and following) is amended by adding at the 
end the following: 
‘‘PART IV—CARBON MARKET ASSURANCE 
‘‘SEC. 401. OVERSIGHT AND ASSURANCE OF CARBON MAR-
KETS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COVERED ENTITY.—The term ‘covered en-
tity’ shall have the meaning given in section 700 of 
the Clean Air Act. 
‘‘(2) REGULATED ALLOWANCE.—The term ‘reg-
ulated allowance’ means any emission allowance, 
compensatory allowance, offset credit, or Federal re-
newable electricity credit established or issued under 
the American Clean Energy and Security Act of 
2009. 
‘‘(3) REGULATED
INSTRUMENT.—The term 
‘regulated instrument’ means a regulated allowance 
or a regulated allowance derivative. 
‘‘(b) REGULATED ALLOWANCE MARKET.— 
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‘‘(1) AUTHORITY.—The Commission shall pro-
mulgate regulations for the establishment, operation, 
and oversight of markets for regulated allowances 
not later than 18 months after the date of the enact-
ment of this section, and from time to time there-
after as may be appropriate. 
‘‘(2) REGULATIONS.—The regulations promul-
gated pursuant to paragraph (1) shall— 
‘‘(A) provide for effective and comprehen-
sive market oversight; 
‘‘(B) prohibit fraud, market manipulation, 
and excess speculation, and provide measures to 
limit unreasonable fluctuation in the prices of 
regulated allowances; 
‘‘(C) facilitate compliance with title VII of 
the Clean Air Act by covered entities; 
‘‘(D) ensure market transparency and rec-
ordkeeping deemed necessary and appropriate 
by the Commission to provide for efficient price 
discovery; prevention of fraud, market manipu-
lation, and excess speculation; and compliance 
with title VII of the Clean Air Act and section 
610 of the Public Utility Regulatory Policies 
Act of 1978; 
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‘‘(E) as necessary, ensure that position 
limitations for individual market participants 
are established with respect to each class of 
regulated allowances; 
‘‘(F) as necessary, ensure that margin re-
quirements are established for each class of reg-
ulated allowances; 
‘‘(G) provide for the formation and oper-
ation of a fair, orderly and liquid national mar-
ket system that allows for the best execution in 
the trading of regulated allowances; 
‘‘(H) limit or eliminate counterparty risks, 
market power concentration risks, and other 
risks associated with trading regulated allow-
ances outside of trading facilities; and 
‘‘(I) establish standards for qualification 
as, and operation of, trading facilities for regu-
lated allowances; 
‘‘(J) establish standards for qualification 
as, and operation of, clearing organizations for 
trading facilities for regulated allowances; and 
‘‘(K) include such other requirements as 
necessary to preserve market integrity and fa-
cilitate compliance with title VII of the Clean 
Air Act and section 610 of the Public Utility 
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Regulatory Policies Act of 1978 and the regula-
tions promulgated under such title and such 
section. 
‘‘(3) ENFORCEMENT.— 
‘‘(A) IN GENERAL.—If the Commission de-
termines, after notice and an opportunity for a 
hearing on the record, that any entity has vio-
lated any rule or order issued by the Commis-
sion under this subsection, the Commission may 
issue an order— 
‘‘(i) prohibiting the entity from trad-
ing on a trading facility for regulated al-
lowances registered with the Commission, 
and requiring all such facilities to refuse 
the entity all privileges for such period as 
may be specified in the order; 
‘‘(ii) if the entity is registered with 
the Commission in any capacity, sus-
pending for a period of not more than 6 
months, or revoking, the registration of the 
entity; 
‘‘(iii) assessing the entity a civil pen-
alty of not more than $1,000,000 per day 
per violation for as long as the violation 
continues (and in determining the amount 
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of a civil penalty, the Commission shall 
take into account the nature and serious-
ness of the violation and the efforts to 
remedy the violation); and 
‘‘(iv) requiring disgorgement of unjust 
profits, restitution to entities harmed by 
the violation as determined by the Com-
mission, or both. 
‘‘(B) AUTHORITY TO SUSPEND OR REVOKE 
REGISTRATION.—The Commission may suspend 
for a period of not more than 6 months, or re-
voke, the registration of a trading facility for 
regulated allowances or of a clearing organiza-
tion registered by the Commission if, after no-
tice and opportunity for a hearing on the 
record, the Commission finds that— 
‘‘(i) the entity violated any rule or 
order issued by the Commission under this 
subsection; or 
‘‘(ii) a director, officer, employee, or 
agent of the entity has violated any rule or 
order issued by the Commission under this 
subsection. 
‘‘(C) CEASE AND DESIST PROCEEDINGS.— 
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‘‘(i) IN GENERAL.—If the Commission 
determines that any entity may be vio-
lating, may have violated, or may be about 
to violate any provision of this part, or any 
regulation promulgated by, or any restric-
tion, condition, or order made or imposed 
by, the Commission under this Act, and if 
the Commission finds that the alleged vio-
lation or threatened violation, or the con-
tinuation of the violation, is likely to result 
in significant harm to covered entities or 
market participants, or significant harm to 
the public interest, the Commission may 
issue a temporary order requiring the enti-
ty— 
‘‘(I) to cease and desist from the 
violation or threatened violation; 
‘‘(II) to take such action as is 
necessary to prevent the violation or 
threatened violation; and 
‘‘(III) to prevent, as the Commis-
sion determines to be appropriate— 
‘‘(aa) significant harm to 
covered entities or market par-
ticipants; 
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