calendar year on indirect emissions from any prod-
uct manufactured by that entity for which a report 
is not required under clause (iii) of subsection 
(a)(3)(A). 
‘‘(b) ADJUSTMENT FACTORS.— 
‘‘(1) CALCULATION CHANGES AND ERRORS.— 
The greenhouse gas emissions record of a reporting 
entity for preceding years shall be adjusted for— 
‘‘(A) changes in calculation methodologies; 
or 
‘‘(B) errors that significantly affect the 
quantity of greenhouse gases in the greenhouse 
gas emissions record. 
‘‘(2) EXPLANATIONS OF ADJUSTMENTS.—A re-
porting entity shall explain, in a statement included 
in the greenhouse gas report of the reporting entity 
for a year— 
‘‘(A) any significant adjustment in the 
greenhouse gas emissions record of the report-
ing entity; and 
‘‘(B) any significant change between the 
greenhouse gas emissions record for the pre-
ceding year and the greenhouse gas emissions 
reported for the current year.
‘‘(c) QUANTIFICATION AND VERIFICATION PROTO-
COLS AND TOOLS.— 
‘‘(1) IN GENERAL.—The Administrator, and the 
Secretary of Commerce, the Secretary of Agri-
culture, and the Secretary of Energy shall jointly 
work with the States, the private sector, and non-
governmental organizations to develop— 
‘‘(A) protocols for quantification and 
verification of greenhouse gas emissions; 
‘‘(B) electronic methods for quantification 
and reporting of greenhouse gas emissions, in-
cluding a mechanism by which a reporting enti-
ty may, at its option, electronically transfer in-
formation from its data system to the national 
greenhouse gas emissions information system; 
and 
‘‘(C) greenhouse gas accounting and re-
porting standards. 
‘‘(2) BEST
PRACTICES.—The protocols and 
methods developed under paragraph (1) shall con-
form, to the maximum extent practicable, to the best 
practice protocols that have the greatest support of 
experts in the field. 
‘‘(3) INCORPORATION
INTO
REGULATIONS.— 
The Administrator shall incorporate the protocols
developed under paragraph (1)(A) into the regula-
tions promulgated under subsections (c), (d), and (e) 
of section 705. 
‘‘(4) 
OUTREACH
PROGRAM.—The 
Adminis-
trator, the Secretary of Commerce, the Secretary of 
Agriculture, and the Secretary of Energy shall joint-
ly conduct an outreach program to provide informa-
tion to all reporting entities and the public on the 
protocols and methods developed under this sub-
section. 
‘‘(d) VERIFICATION.— 
‘‘(1) PROVISION OF INFORMATION BY REPORT-
ING ENTITIES.—Each reporting entity shall provide 
information sufficient for the Administrator to 
verify, in accordance with greenhouse gas accounting 
and reporting standards developed under subsection 
(c)(1)(C), that the greenhouse gas report of the re-
porting entity has been accurately reported. 
‘‘(2) 
INDEPENDENT
THIRD-PARTY 
VERIFICATION.—A reporting entity may— 
‘‘(A) 
obtain 
independent 
third-party 
verification; and 
‘‘(B) present the results of the third-party 
verification to the Administrator for consider-
ation by the Administrator in carrying out 
paragraph (1). 
‘‘(3) CERTIFICATION OF REPORTS.—Each re-
port submitted by a reporting entity shall include an 
appropriate certification, signed by a senior official 
with management responsibility for the person or 
persons completing the report, regarding the accu-
racy and completeness of the report. 
‘‘(e) ENFORCEMENT.—The Administrator may bring 
a civil action in United States district court against an 
entity that fails to comply with a requirement of this sec-
tion, or a regulation promulgated under section 705, to 
impose a civil penalty of not more than $25,000 for each 
day that the failure to comply continues. 
‘‘SEC. 704. NATIONAL GREENHOUSE GAS EMISSIONS INVEN-
TORY. 
‘‘(a) IN GENERAL.—Not later than April 30 of each 
year after the date of enactment of this title, the Adminis-
trator shall publish a national greenhouse gas emissions 
inventory that includes— 
‘‘(1) comprehensive estimates of the quantity of 
United States greenhouse gas emissions for the sec-
ond preceding calendar year, including—
‘‘(A) for each greenhouse gas, an estimate 
of the quantity of emissions contributed by each 
key source category; 
‘‘(B) a detailed analysis of trends in the 
quantity, composition, and sources of United 
States greenhouse gas emissions; and 
‘‘(C) a detailed explanation of the method-
ology used in developing the national green-
house gas emissions inventory; and 
‘‘(2) a detailed analysis of the information re-
ported to the national greenhouse gas emissions in-
formation system and the national greenhouse gas 
registry. 
If total direct emissions reported in a given year are re-
duced in comparison with the amount reported in the pre-
ceding year, the analysis referred to in paragraph (2) shall 
include a detailed assessment of what proportion of such 
reduction is a consequence of activities by entities that re-
ported reductions in indirect emissions. 
‘‘(b) ENERGY STAR COMPARISONS.—The Adminis-
trator shall include in the analysis under subsection (a)(2) 
a comparison of the indirect emissions associated with 
each manufactured product for which a report is required 
under clause (iii) of section 703(a)(3)(A) and the indirect
emissions of comparable products entitled to the Adminis-
trator’s Energy Star label. 
‘‘SEC. 705. REGULATIONS. 
‘‘(a) IN GENERAL.—The Administrator may promul-
gate such regulations as are necessary to carry out this 
title. 
‘‘(b) BEST PRACTICES.—In developing regulations 
under this section, the Administrator shall seek to leverage 
leading protocols for the measurement, accounting, report-
ing, and verification of greenhouse gas emissions. 
‘‘(c) NATIONAL GREENHOUSE GAS EMISSIONS IN-
FORMATION SYSTEM.—Not later than one year after the 
date of enactment of this title, the Administrator shall 
promulgate such regulations as are necessary to establish 
the national greenhouse gas emissions information system. 
‘‘(d) MANDATORY REPORTING REQUIREMENTS.— 
Not later than one year after the date of enactment of 
this title, the Administrator shall promulgate such regula-
tions as are necessary to implement the mandatory report-
ing requirements under section 703(a)(1). 
‘‘(e) VOLUNTARY
REPORTING
PROVISIONS.—Not 
later than two years after the date of enactment of this 
title, the Administrator shall promulgate such regulations 
and issue such guidance as are necessary to implement
the voluntary reporting provisions under paragraphs (5) 
through (7) of section 703(a). 
‘‘(f) ADJUSTMENT FACTORS.—Not later than two 
years after the date of enactment of this title, the Admin-
istrator shall promulgate such regulations as are necessary 
to implement the adjustment factors under section 
703(b).’’. 
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