109 
for any purpose under any Federal, State, or local laws, 
including, but not limited to, laws relating to an income 
tax, public assistance programs (such as health care, cash 
aid, child care, nutrition programs, and housing assist-
ance) and no participating State or political subdivision 
thereof shall decrease any assistance otherwise provided 
an individual or individuals because of the receipt of bene-
fits under this Act. 
(h) DEFINITIONS.— 
(1) ELDERLY
OR
DISABLED
MEMBER.—The 
term ‘‘elderly or disabled member’’ includes individ-
uals who meet the definition of the term in section 
3 of the Food Stamp Act (7 U.S.C. 2012) or receive 
benefits under Section 1860(D)–14 of the Social Se-
curity Act (42 U.S.C. 1395w–114). 
(2) ELECTRONIC
BENEFIT
TRANSFER.—The 
term ‘‘electronic benefit transfer’’ means a system 
by which household benefits defined under sub-
section (d) are issued from and stored in a central 
databank via electronic benefit transfer cards. 
(3) GROSS INCOME.—The term ‘‘gross income’’ 
means the gross income of a household that is deter-
mined in accordance with standards and procedures 
established under section 5 of the Food Stamp Act 
of 1977 (7 U.S.C. 2014). 
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110 
(4) HOUSEHOLD.— 
(A) IN GENERAL.—The term ‘‘household’’ 
means an individual who lives alone or a group 
of individuals who live together. 
(B) EXCEPTIONS.—Notwithstanding sub-
paragraph (A)— 
(i) an individual or a group of individ-
uals who are a household under the Food 
Stamp Act of 1977 (7 U.S.C. 2012) shall 
be considered a household; 
(ii) a single individual or married cou-
ple that receive benefits under section 
1860D–14 of the Social Security Act (42 
U.S.C. 1395w–114) shall be considered a 
household; 
(iii) 
notwithstanding 
subsection 
(b)(5)(b), the Secretary shall establish 
rules for providing the Climate Change Re-
bate in an equitable and administratively 
simple manner to ‘‘mixed households’’ 
where the group of individuals who live to-
gether includes a combination of members 
described in clause (i) and clause (ii), or 
includes additional members not described 
in clause (i) or clause (ii). 
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(5) POVERTY LINE.—The term ‘‘poverty line’’ 
has the meaning given the term in section 673(2) of 
the Community Services Block Grant Act (42 U.S.C. 
9902(2)), including any revision required by that 
section. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury, or his designee. 
(7) STATE.—The term ‘‘State’’ means the fifty 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, American Samoa, the U.S. Virgin 
Islands, Guam, and the Commonwealth of the 
Northern Mariana Islands. 
(8) STATE AGENCY.—The term ‘‘State agency’’ 
means an agency of State government, including the 
local offices thereof, that has responsibility for ad-
ministration of the 1 or more federally aided public 
assistance programs within the State, and in those 
States where such assistance programs are operated 
on a decentralized basis, the term shall include the 
counterpart local agencies administering such pro-
grams. 
SEC. 313. HEALTHY FAMILIES FUND. 
(a) IN GENERAL.—Amounts made available for the 
healthy families fund shall be used only to carry out a 
program which is established by subsequent legislation to 
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assist households with the costs of obtaining and main-
taining healthcare coverage and which is consistent with 
the principles described in subsection (b). 
(b) PRINCIPLES OF HEALTHY FAMILIES FUND.—A 
program shall be treated as described in this section only 
if such program is consistent with the following principles: 
(1) Advances comprehensive, high quality, af-
fordable healthcare coverage for all. 
(2) Ensures premiums, deductibles, and out-of- 
pocket costs are affordable relative to family income, 
with protection from catastrophic medical costs and 
bankruptcy. 
(3) Recognizes the shared responsibility of Fed-
eral and State governments, households, and em-
ployers to contribute toward fair and adequate fi-
nancing of health insurance for all. 
(4) Promotes stability and equity in healthcare 
coverage. 
(5) Places a high value on effective, evidence- 
based care, and reduces over-utilization, duplication, 
and waste. 
PART 2—INVESTMENT IN NATURAL RESOURCE 
ADAPTATION 
SEC. 321. DEFINITIONS. 
In this part: 
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(1) ECOLOGICAL PROCESS.— 
(A) IN
GENERAL.—The term ‘‘ecological 
process’’ means a biological, chemical, or phys-
ical interaction between the biotic and abiotic 
components of an ecosystem. 
(B) INCLUSIONS.—The term ‘‘ecological 
process’’ includes— 
(i) nutrient cycling; 
(ii) pollination; 
(iii) predator-prey relationships; 
(iv) soil formation; 
(v) gene flow; 
(vi) larval dispersal and settlement; 
(vii) hydrological cycling; 
(viii) decomposition; and 
(ix) disturbance regimes, such as fire 
and flooding. 
(2) FISH AND WILDLIFE.—The term ‘‘fish and 
wildlife’’ means— 
(A) any species of wild fauna, including 
fish and other aquatic species; and 
(B) any fauna in a captive breeding pro-
gram the object of which is to reintroduce indi-
viduals of a depleted indigenous species into 
previously occupied range. 
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114 
(3) HABITAT.—The term ‘‘habitat’’ means the 
physical, chemical, and biological properties that are 
used by wildlife (including aquatic and terrestrial 
plant communities) for growth, reproduction, and 
survival, food, water, cover, and space, on a tract of 
land, in a body of water, or in an area or region. 
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(5) PLANT.—The term ‘‘plant’’ means any spe-
cies of wild flora. 
(6) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
and 
(D) any other territory or possession of the 
United States. 
SEC. 322. ADAPTATION FUND. 
(a) AVAILABILITY OF AMOUNTS.—All amounts de-
posited in the Investment in Natural Resource Adaptation 
Account established by section 9512 of the Internal Rev-
enue Code of 1986 shall be available to carry out activities 
(including research and education activities) that assist 
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115 
fish and wildlife, fish and wildlife habitat, plants, and as-
sociated ecological processes in becoming more resilient, 
adapting to, and surviving the impacts of climate change 
and ocean acidification (referred to in this section as ‘‘ad-
aptation activities’’) pursuant to this section. 
(b) DEPARTMENT
OF
THE
INTERIOR.—Of the 
amounts made available annually to carry out this sub-
section— 
(1) 35 percent shall be allocated to the Sec-
retary of the Interior, and subsequently made avail-
able to States through the Wildlife Conservation and 
Restoration 
Account 
established 
under 
section 
3(a)(2) of the Pittman-Robertson Wildlife Restora-
tion Act (16 U.S.C. 669b(a)(2)) to carry out adapta-
tion activities in accordance with comprehensive 
State adaptation strategies, as described in sub-
section (j); 
(2) 19 percent shall be allocated to the Sec-
retary of the Interior for use in funding adaptation 
activities carried out— 
(A) under endangered species, migratory 
bird, and other fish and wildlife programs ad-
ministered by the United States Fish and Wild-
life Service; 
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(B) on wildlife refuges and other public 
land under the jurisdiction of the United States 
Fish and Wildlife Service, the Bureau of Land 
Management, or the National Park Service; or 
(C) within Federal water managed by the 
Bureau of Reclamation; 
(3) 5 percent shall be allocated to the Secretary 
of the Interior for adaptation activities carried out 
under cooperative grant programs, including— 
(A) the cooperative endangered species 
conservation fund authorized under section 6(i) 
of the Endangered Species Act of 1973 (16 
U.S.C. 1535(i)); 
(B) programs under the North American 
Wetlands Conservation Act (16 U.S.C. 4401 et 
seq.); 
(C) the multinational species conservation 
fund established under the heading ‘‘MULTI-
NATIONAL
SPECIES
CONSERVATION
FUND’’ of 
title I of the Department of the Interior and 
Related Agencies Appropriations Act, 1999 (16 
U.S.C. 4246); 
(D) the Neotropical Migratory Bird Con-
servation Fund established by section 9(a) of 
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117 
the Neotropical Migratory Bird Conservation 
Act (16 U.S.C. 6108(a)); 
(E) the Coastal Program of the United 
States Fish and Wildlife Service; 
(F) the National Fish Habitat Action 
Plan; 
(G) the Partners for Fish and Wildlife 
Program; 
(H) the Landowner Incentive Program; 
(I) the Wildlife Without Borders Program 
of the United States Fish and Wildlife Service; 
and 
(J) the Park Flight Migratory Bird Pro-
gram of the National Park Service; and 
(4) 1 percent shall be allocated to the Secretary 
of the Interior and subsequently made available to 
Indian tribes to carry out adaptation activities 
through the tribal wildlife grants program of the 
United States Fish and Wildlife Service. 
(c) LAND AND WATER CONSERVATION FUND.— 
(1) DEPOSITS.— 
(A) IN GENERAL.—Of the amounts made 
available for each fiscal year to carry out this 
subsection, 10 percent shall be deposited into 
the Land and Water Conservation Fund estab-
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118 
lished under section 2 of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 
460l–5). 
(B) Deposits to the Land and Water Con-
servation Fund under this subsection shall be 
available without further appropriation or fiscal 
year limitation and shall be supplemental to au-
thorizations provided under section 3 of the 
Land and Water Conservation Fund Act of 
1965 (16 U.S.C. 460l–6) which shall remain 
available for non-adaptation needs. 
(2) ALLOCATIONS.—Of the amounts deposited 
under this subsection into the Land and Water Con-
servation Fund— 
(A) 1⁄6 shall be allocated to the Secretary 
of the Interior and made available on a com-
petitive basis to carry out adaptation activities 
through the acquisition of land and interests in 
land under section 6 of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 
460l–8)— 
(i) to States in accordance with com-
prehensive wildlife conservation strategies 
and Indian tribes; 
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119 
(ii) notwithstanding section 5 of that 
Act (16 U.S.C. 460l–7); and 
(iii) in addition to grants provided 
pursuant to— 
(I) annual appropriations Acts; 
(II) the Energy Policy Act of 
2005 (42 U.S.C. 15801 et seq.); or 
(III) any other authorization for 
nonadaptation needs; 
(B) 1⁄3 shall be allocated to the Secretary 
of the Interior to carry out adaptation activities 
through the acquisition of lands and interests in 
land under section 7 of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 
460l–9); 
(C) 1⁄6 shall be allocated to the Secretary 
of Agriculture and made available to the States 
to carry out adaptation activities through the 
acquisition of land and interests in land under 
section 7 of the Forest Legacy Program under 
the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103c); and 
(D) 1⁄3 shall be allocated to the Secretary 
of Agriculture to carry out adaptation activities 
through the acquisition of land and interests in 
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120 
land under section 7 of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 
460l–9). 
(3) EXPENDITURE
OF
FUNDS.—In allocating 
funds under subsection (c), the Secretary of the In-
terior and the Secretary of Agriculture shall take 
into consideration factors including— 
(A) the availability of non-Federal con-
tributions from State, local, or private sources; 
(B) opportunities to protect wildlife cor-
ridors or otherwise to link or consolidate frag-
mented habitats; 
(C) opportunities to reduce the risk of cat-
astrophic wildfires, extreme flooding, or other 
climate-related events that are harmful to fish 
and wildlife and people; 
(D) the potential for conservation of spe-
cies or habitat types at serious risk due to cli-
mate change, ocean acidification, and other 
stressors; and 
(E) the potential to provide enhanced ac-
cess to land and water for fishing, hunting, and 
other public recreational uses. 
(d) FOREST SERVICE.—Of the amounts made avail-
able annually to carry out this section, 5 percent shall be 
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121 
allocated to the Secretary of Agriculture for use in funding 
adaptation activities carried out on national forests and 
national grasslands under the jurisdiction of the Forest 
Service, or pursuant to the cooperative Wings Across the 
Americas Program. 
(e) ENVIRONMENTAL PROTECTION AGENCY.—Of the 
amounts made available annually to carry out this section, 
5 percent shall be allocated to the Administrator of the 
Environmental Protection Agency for use in adaptation 
activities restoring and protecting— 
(1) large-scale freshwater aquatic ecosystems, 
such as the Everglades, the Great Lakes, Flathead 
Lake, the Missouri River, the Mississippi River, the 
Colorado River, the Sacramento-San Joaquin Rivers, 
the Ohio River, the Columbia-Snake River System, 
the Apalachicola, Chattahoochee and Flint River 
System, the Connecticut River, and the Yellowstone 
River; 
(2) large-scale estuarine ecosystems, such as 
Chesapeake Bay, Long Island Sound, Puget Sound, 
the Mississippi River Delta, San Francisco Bay 
Delta, Narragansett Bay, and Albemarle-Pamlico 
Sound; and 
(3) freshwater and estuarine ecosystems, water-
sheds, and basins identified as priorities by the Ad-
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122 
ministrator of the Environmental Protection Agency, 
working in cooperation with other Federal agencies, 
States, local governments, scientists, and other con-
servation partners. 
(f) CORPS OF ENGINEERS.—Of the amounts made 
available annually to carry out this section, 10 percent 
shall be allocated to the Secretary of the Army for use 
by the Corps of Engineers to carry out adaptation activi-
ties restoring— 
(1) large-scale freshwater aquatic ecosystems, 
such as the ecosystems described in subsection 
(e)(1); 
(2) large-scale estuarine ecosystems, such as 
the ecosystems described in subsection (e)(2); 
(3) freshwater and estuarine ecosystems, water-
sheds, and basins identified as priorities by the 
Corps of Engineers, working in cooperation with 
other Federal agencies, States, local governments, 
scientists, and other conservation partners; and 
(4) habitats or ecosystems under programs such 
as the Estuary Restoration Act of 2000 (33 U.S.C. 
2901 et seq.), project modifications for improvement 
of the environment, and aquatic restoration under 
section 206 of the Water Resources Development 
Act of 1996 (33 U.S.C. 2330). 
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123 
(g) DEPARTMENT OF COMMERCE.—Of the amounts 
made available annually to carry out this section, 10 per-
cent shall be allocated to the Secretary of Commerce for 
use in funding adaptation activities to protect, maintain, 
and restore coastal, estuarine, and marine resources, habi-
tats, and ecosystems, including such activities carried out 
under— 
(1) the coastal and estuarine land conservation 
program; 
(2) the community-based restoration program; 
(3) the Coastal Zone Management Act of 1972 
(16 U.S.C. 1451 et seq.), subject to the condition 
that State coastal agencies shall incorporate, and the 
Secretary of Commerce shall approve, coastal zone 
management plan elements that are— 
(A) consistent with the national adaptation 
strategy under subsection (i), as part of a 
coastal zone management program established 
under this Act; and 
(B) specifically designed to strengthen the 
ability of coastal, estuarine, and marine re-
sources, habitats, and ecosystems to adapt to 
and withstand the impacts of— 
(i) global warming; and 
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124 
(ii) where practicable, ocean acidifica-
tion; 
(4) the Open Rivers Initiative; 
(5) the Magnuson Fishery Conservation and 
Management Act (16 U.S.C. 1801 et seq.); 
(6) the Marine Mammal Protection Act of 1972 
(16 U.S.C. 1361 et seq.); 
(7) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.); 
(8) the Marine Protection, Research, and Sanc-
tuaries Act of 1972 (33 U.S.C. 1401 et seq.); and 
(9) the Coral Reef Conservation Act of 2000 
(16 U.S.C. 6401 et seq.). 
(h) COST SHARING.—Notwithstanding any other pro-
vision of law, a State or Indian tribe that receives a grant 
under paragraph (1) or (4) of subsection (b) shall provide 
10 percent of the costs of each activity carried out using 
amounts under the grant. 
(i) NATIONAL ADAPTATION STRATEGY.— 
(1) IN GENERAL.—Effective beginning on the 
date on which the President establishes the national 
strategy under paragraph (3), funds made available 
under paragraphs (2), (3), and (4) of subsection (b) 
and subsections (c) through (g) shall be used only 
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for adaptation activities that are consistent with the 
national strategy. 
(2) INITIAL PERIOD.—Until the date on which 
the President establishes the national strategy under 
paragraph (3), funds made available under para-
graphs (2), (3), and (4) of subsection (b) and sub-
sections (c) through (g) shall be used only for adap-
tation activities that are consistent with a workplan 
established by the President. 
(3) NATIONAL STRATEGY.— 
(A) IN GENERAL.—Not later than 3 years 
after the date of enactment of this Act, the 
President shall develop and implement a na-
tional strategy for assisting fish and wildlife, 
fish and wildlife habitat, plants, and associated 
ecological processes in becoming more resilient 
and adapting to the impacts of climate change 
and ocean acidification. 
(B) 
ADMINISTRATION.—In 
establishing 
and revising the national strategy, the Presi-
dent shall— 
(i) base the national strategy on the 
best available science, as identified by the 
Science Advisory Board established under 
subparagraph (D); 
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126 
(ii) develop the national strategy in 
cooperation with State fish and wildlife 
agencies, State coastal agencies, United 
States territories, and Indian tribes; 
(iii) coordinate with the Secretary of 
the Interior, the Secretary of Commerce, 
the Secretary of Agriculture, the Secretary 
of Defense, the Administrator of the Envi-
ronmental Protection Agency, and other 
agencies as appropriate; 
(iv) consult with local governments, 
conservation organizations, scientists, and 
other interested stakeholders; and 
(v) provide public notice and oppor-
tunity for comment. 
(C) CONTENTS.—The President shall in-
clude in the national strategy, at a minimum, 
prioritized goals and measures and a schedule 
for implementation— 
(i) to identify and monitor fish and 
wildlife, fish and wildlife habitat, plants, 
and associated ecological processes that are 
particularly likely to be adversely affected 
by climate change and ocean acidification 
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128 
better able to withstand the additional 
stresses associated with climate change, in-
cluding relative sea level rise and ocean 
acidification; 
(viii) to protect ocean and coastal spe-
cies from the impact of climate change and 
ocean acidification; 
(ix) to incorporate adaptation strate-
gies and activities to address relative sea 
level rise in coastal zone planning; 
(x) to protect, maintain, and restore 
ocean and coastal habitats to build healthy 
and resilient ecosystems, including the pur-
chase of coastal and island land; and 
(xi) to incorporate consideration of cli-
mate change and ocean acidification, and 
to integrate adaptation strategies and ac-
tivities for fish and wildlife, fish and wild-
life habitat, plants, and associated ecologi-
cal processes, in the planning and manage-
ment of Federal land and water adminis-
tered by the Federal agencies that receive 
funding under this section. 
(D) SCIENCE ADVISORY BOARD.— 
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(i) ESTABLISHMENT.—Not later than 
180 days after the date of enactment of 
this Act, the Secretary of the Interior shall 
establish and appoint the members of a 
science advisory board, to be comprised of 
not fewer than 10 and not more than 20 
members, who shall— 
(I) be recommended by the Presi-
dent of the National Academy of 
Sciences; 
(II) have expertise in fish, wild-
life, plant, aquatic, and coastal and 
marine 
biology, 
ecology, 
climate 
change, ocean acidification, and other 
relevant scientific disciplines; and 
(III) represent a balanced mem-
bership between Federal, State, and 
local representatives, universities, and 
conservation organizations. 
(ii) DUTIES.—The science advisory 
board shall— 
(I) advise the President and rel-
evant Federal agencies and depart-
ments on— 
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(aa) 
the 
best 
available 
science regarding the impacts of 
climate change and ocean acidifi-
cation on fish and wildlife, habi-
tat, plants, and associated eco-
logical processes; and 
(bb) scientific strategies and 
mechanisms for adaptation; and 
(II) identify and recommend pri-
orities for ongoing research needs on 
those issues. 
(iii) COLLABORATION.—The science 
advisory board shall collaborate with other 
climate change and ecosystem research en-
tities in other Federal agencies and depart-
ments. 
(iv) AVAILABILITY TO PUBLIC.—The 
advice and recommendations of the science 
advisory board shall be made available to 
the public. 
(v) NONAPPLICABILITY
OF
FACA.— 
The Federal Advisory Committee Act (5 
U.S.C. App.) shall not apply to the science 
advisory board. 
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(E) COORDINATION WITH OTHER PLANS.— 
In developing the national strategy, the Presi-
dent shall, to the maximum extent prac-
ticable— 
(i) take into consideration research 
and information contained in— 
(I) State comprehensive wildlife 
conservation plans; 
(II) the North American water-
fowl management plan; 
(III) the national fish habitat ac-
tion plan; 
(IV) coastal zone management 
plans; 
(V) the reports of the Pew 
Oceans Commission and the United 
States Commission on Ocean Policy; 
and 
(VI) other relevant plans; and 
(ii) coordinate and integrate the goals 
and measures identified in the national 
strategy with the goals and measures iden-
tified in those plans. 
(F) REVISIONS.—Not later than 5 years 
after the date on which the strategy is devel-
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oped, and not less frequently than every 5 years 
thereafter, the President shall review and up-
date the national strategy using the procedures 
described in this paragraph. 
(j) STATE COMPREHENSIVE ADAPTATION STRATE-
GIES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), funds made available to States under this 
part shall be used only for activities that are con-
sistent with a State strategy that has been approved 
by— 
(A) the Secretary of the Interior; and 
(B) for any State with a coastal zone 
(within the meaning of the Coastal Zone Man-
agement Act (16 U.S.C. 1451 et seq.)), by the 
Secretary of Commerce, subject to the condition 
that approval by the Secretary of Commerce 
shall be required only for those portions of the 
strategy relating to activities affecting the 
coastal zone. 
(2) INITIAL PERIOD.— 
(A) IN GENERAL.—Until the earlier of the 
date that is 3 years after the date of enactment 
of this Act or the date on which a State re-
ceives approval for the State strategy, a State 
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shall be eligible to receive funding under sub-
section (b)(1) for adaptation activities that 
are— 
(i) consistent with the comprehensive 
wildlife strategy of the State and, where 
appropriate, other fish, wildlife and con-
servation strategies; and 
(ii) in accordance with a workplan de-
veloped in coordination with— 
(I) the Secretary of the Interior; 
and 
(II) for any State with a coastal 
zone (within the meaning of the 
Coastal Zone Management Act (16 
U.S.C. 1451 et seq.)), by the Sec-
retary of Commerce, subject to the 
condition that coordination with the 
Secretary of Commerce shall be re-
quired only for those portions of the 
strategy relating to activities affecting 
the coastal zone. 
(B) PENDING APPROVAL.—During the pe-
riod for which approval by the applicable Sec-
retary of a State strategy described in para-
graph (3) is pending, the State may continue 
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receiving funds under subsection (b)(1) pursu-
ant to the workplan described subparagraph 
(A)(ii). 
(3) REQUIREMENTS.—A State strategy shall— 
(A) describe the impacts of climate change 
and ocean acidification on the diversity and 
health of the fish, wildlife and plant popu-
lations, habitats, and associated ecological proc-
esses; 
(B) describe and prioritize proposed con-
servation actions to assist fish, wildlife, and 
plant populations in adapting to those impacts; 
(C) establish programs for monitoring the 
impacts of climate change on fish, wildlife, and 
plant populations, habitats, and associated eco-
logical processes; 
(D) include strategies, specific conservation 
actions, and a timeframe for implementing con-
servation actions for fish, wildlife, and plant 
populations, habitats, and associated ecological 
processes; 
(E) establish methods for assessing the ef-
fectiveness of conservation actions taken to as-
sist fish, wildlife, and plant populations, habi-
tats, and associated ecological processes in 
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adapting to those impacts and for updating 
those actions to respond appropriately to new 
information or changing conditions; 
(F) be developed— 
(i) with the participation of the State 
fish and wildlife agency, the State agency 
responsible for administration of Land and 
Water Conservation Fund grants, the 
State Forest Legacy program coordinator, 
and the State coastal agency; and 
(ii) in coordination with the Secretary 
of the Interior and, where applicable, the 
Secretary of Commerce; 
(G) provide for solicitation and consider-
ation of public and independent scientific input; 
(H) take into consideration research and 
information contained in, and coordinate with 
and integrate the goals and measures identified 
in, as appropriate, other fish, wildlife, and habi-
tat conservation strategies, including— 
(i) the national fish habitat action 
plan; 
(ii) plans under the North American 
Wetlands Conservation Act (16 U.S.C. 
4401 et seq.); 
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(iii) the Federal, State, and local part-
nership known as ‘‘Partners in Flight’’; 
(iv) federally approved coastal zone 
management plans under the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1451 
et seq.); 
(v) federally approved regional fishery 
management plans and habitat conserva-
tion activities under the Magnuson Fishery 
Conservation and Management Act (16 
U.S.C. 1801 et seq.); 
(vi) the national coral reef action 
plan; 
(vii) recovery plans for threatened 
species and endangered species under sec-
tion 4(f) of the Endangered Species Act of 
1973 (16 U.S.C. 1533(f)); 
(viii) habitat conservation plans under 
section 10 of that Act (16 U.S.C. 1539); 
(ix) other Federal and State plans for 
imperiled species; 
(x) the United States shorebird con-
servation plan; 
(xi) the North American waterbird 
conservation plan; and 
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(xii) other State-based strategies that 
comprehensively implement adaptation ac-
tivities to remediate the effects of climate 
change and ocean acidification on fish, 
wildlife, and habitats; and 
(I) be incorporated into a revision of the 
comprehensive wildlife conservation strategy of 
a State— 
(i) that has been submitted to the 
United States Fish and Wildlife Service; 
and 
(ii)(I) that has been approved by the 
Service; or 
(II) on which a decision on approval is 
pending. 
(4) UPDATING.—Each State strategy described 
in paragraph (3) shall be updated at least every 5 
years. 
PART 3—EARLY ACTION 
SEC. 331. EARLY ACTION. 
(a) IN GENERAL.—Annually, the Secretary of the 
Treasury shall distribute the balance of the Early Action 
Account established under section 9512 to owners or oper-
ators of covered facilities and other facilities that emit 
greenhouse gas in accordance with the procedures and 
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standards in subsection (b), in recognition of actions of 
the owners and operators taken since January 1, 1994, 
that resulted in verified and credible reductions of green-
house gas emissions. 
(b) REGULATIONS.—(b) Not later than 1 year after 
the date of enactment of this Act, the Administrator of 
the Environmental Protection Agency shall establish by 
regulation, procedures and standards for use in distrib-
uting to owners and operators of covered facilities and 
other facilities that emit greenhouse gas, amounts in the 
Early Action Account. 
(c) PROCEDURES AND STANDARDS.—The procedures 
and standards established under subsection (b) shall pro-
vide for consideration of verified and credible emission re-
ductions registered before the date of enactment of this 
Act under— 
(1) the Climate Leaders Program, or any other 
voluntary greenhouse gas reduction program of the 
United States Environmental Protection Agency and 
the United States Department of Energy; 
(2) the Voluntary Reporting of Greenhouse 
Gases Program of the Energy Information Adminis-
tration; 
(3) State or regional greenhouse gas emission 
reduction programs that include systems for track-
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ing and verifying the greenhouse gas emission reduc-
tions; and 
(4) voluntary entity programs that resulted in 
entity-wide reductions (including offsetting load 
growth) in greenhouse gas emissions. 
(d) ELIGIBLE ACTIONS.—Activities for which early 
action credit may be awarded may include, but are not 
limited to— 
(1) avoided greenhouse gas emissions from pro-
grams that reduce load growth, including: — 
(A) energy efficiency; 
(B) demand side management; and 
(C) zero-emissions energy resources, in-
cluding renewable energy, and 
(2) purchases of voluntary carbon offsets that 
result in measurable, verifiable, additional, and en-
forceable greenhouse gas reductions (or increase in 
sequestered greenhouse gas emissions) that are third 
party certified and verified according to the third 
party standard and registered with a tracking sys-
tem for certified offsets. 
PART 4—STATE AND TRIBAL ACTION 
SEC. 341. ALLOCATION FOR ENERGY SAVINGS. 
(a) ALLOCATION FOR BUILDING EFFICIENCY.—Not 
later than January 1, 2012, and annually thereafter 
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through January 1, 2050, the Secretary of the Treasury 
shall allocate 6 percent of the balance of the State and 
Tribal Action Account among States that are in compli-
ance with section 304(c) of the Energy Conservation and 
Production Act . 
(b) DISTRIBUTION.—Not later than 2 years after the 
date of enactment of this Act, the Secretary of the Treas-
ury shall establish procedures and standards for the dis-
tribution of amounts to States in accordance with sub-
sections (a) and (b). 
SEC. 342. ALLOCATION FOR STATES WITH PROGRAMS THAT 
EXCEED 
FEDERAL 
EMISSION 
REDUCTION 
TARGETS. 
(a) ALLOCATION.—Not later than April 1, 2011, and 
annually thereafter through calendar year 2049, the Sec-
retary of the Treasury shall allocate 25 percent of the bal-
ance of the State and Tribal Action Account for the fol-
lowing calendar year among States that have— 
(1) before the date of enactment of this Act, en-
acted statewide greenhouse gas emission reduction 
targets that are more stringent than the nationwide 
targets established under section 9911 of the Inter-
nal Revenue Code of 1986; and 
(2) by the time of an allocation under this sub-
section, imposed on covered facilities within the 
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States aggregate greenhouse gas emission limitations 
more stringent than those imposed on covered facili-
ties under section 9911 of the Internal Revenue 
Code of 1986. 
(b) DISTRIBUTION.—Not later than 2 years after the 
date of enactment of this Act, the Secretary of the Treas-
ury shall establish procedures and standards for use in 
distributing funds among States in accordance with sub-
section (a). 
(c) USE.—Any State receiving funds under this sec-
tion for a calendar year shall use not less than 90 percent 
of such funds in 1 or more of the ways described in section 
343(c)(1). 
SEC. 343. GENERAL ALLOCATION. 
(a) ALLOCATION.—Subject to subsection (d)(3), not 
later than April 1, 2011, and annually thereafter through 
calendar year 2049, the Secretary of the Treasury shall 
allocate 62 percent of the balance of the State and Tribal 
Action Account for the following calendar year among 
States. 
(b) DISTRIBUTION.—The allowances available for al-
location to States under subsection (a) for a calendar year 
shall be distributed as follows: 
(1) For each calendar year, 1⁄2 of the amount 
available for allocation to States under subsection 
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(a) shall be distributed among individual States 
based on the proportion that— 
(A) the expenditures of a State for the 
low-income home energy assistance program es-
tablished under the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621 et 
seq.) for the preceding calendar year; bears to 
(B) the expenditures of all States for that 
program for the preceding calendar year. 
(2) For each calendar year, 1⁄2 of the amount 
available for allocation to States under subsection 
(a) shall be distributed among the States based on 
the proportion that— 
(A) the population of a State, as deter-
mined by the most recent decennial census pre-
ceding the calendar year for which the alloca-
tion regulations are for the allocation year; 
bears to 
(B) the population of all States, as deter-
mined by that census. 
(c) USE.— 
(1) IN GENERAL.—During any calendar year, a 
State shall use in 1 or more of the following ways 
not less than 90 percent of the amount allocated to 
the State under this section for that calendar year: 
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(A) To address local or regional impacts of 
climate change, including by accommodating, 
protecting, or relocating affected communities 
and public infrastructure. 
(B) To collect, evaluate, disseminate, and 
use information necessary for affected coastal 
communities to adapt to climate change (such 
as information derived from inundation pre-
diction systems). 
(C) To address local or regional impacts of 
climate change policy, including providing as-
sistance to displaced workers. 
(D) To mitigate impacts on energy-inten-
sive industries in internationally competitive 
markets. 
(2) USE
FOR
RECYCLING.—During any cal-
endar year, a State shall use not less than 5 percent 
of the amounts allocated to the State under this sec-
tion for increasing recycling rates through activities 
such as— 
(A) improving recycling infrastructure; 
(B) increasing public education on the ben-
efits of recycling, particularly with respect to 
greenhouse gases; 
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(C) improving residential, commercial, and 
industrial collection of recyclables; 
(D) improving recycling system efficiency; 
(E) increasing recycling yields; and 
(F) improving the quality and usefulness 
of recycled materials. 
(3) OFFSET OF INCREASED ENERGY COSTS.— 
Any amount allocated to a State under this section 
which is not used for a purpose described in para-
graph (1) shall be used to offset the increased en-
ergy costs incurred by the State in the performance 
of governmental functions. 
(d) PROGRAM FOR TRIBAL COMMUNITIES.— 
(1) ESTABLISHMENT.—Not later than 3 years 
after the date of enactment of this Act, the Sec-
retary of the Interior shall by regulation establish a 
program for Indian tribes that is designed to deliver 
assistance to Indian tribes within the United States 
that face disruption or dislocation as a result of 
global climate change, utilizing the rulemaking proc-
ess identified under the Negotiated Rulemaking Act 
(5 U.S.C. 657 et seq.). 
(2) ALLOCATION.—Beginning in the first cal-
endar year that begins after promulgation of the 
regulations referred to in paragraph (1), and annu-
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ally thereafter until calendar year 2050, the Sec-
retary of the Treasury shall allocate 7 percent of the 
balance of the State and Tribal Action Account for 
each calendar year to the program established under 
paragraph (1). 
PART 5—DOMESTIC AGRICULTURE AND 
FORESTRY 
SEC. 351. ALLOCATION. 
The Secretary of Agriculture shall carry out a pro-
gram to— 
(1) achieve real, verifiable, additional, perma-
nent, and enforceable reductions in greenhouse gas 
emissions from the agriculture and forestry sectors 
of the United States economy; and 
(2) achieve real, verifiable, additional, perma-
nent, and enforceable increases in greenhouse gas 
sequestration from those sectors. 
SEC. 352. AGRICULTURAL AND FORESTRY GREENHOUSE 
GAS MANAGEMENT RESEARCH. 
(a) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of Agriculture, in 
consultation with scientific and agricultural and forestry 
experts, shall prepare and submit to Congress a report 
that describes the status of research on agricultural and 
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forestry greenhouse gas management, including a descrip-
tion of— 
(1) research on soil carbon sequestration and 
other agricultural and forestry greenhouse gas man-
agement that has been carried out; 
(2) any additional research that is necessary; 
(3) the proposed priority for additional re-
search; 
(4) the most appropriate approaches for con-
ducting the additional research; and 
(5) the extent to which and the manner in 
which carbon credits that are specific to agricultural 
and forestry operations, including harvested wood 
products and the reduction of hazardous fuels to re-
duce the risk of uncharacteristically severe wildfires, 
should be valued and allotted. 
(b) STANDARDIZED SYSTEM OF SOIL CARBON MEAS-
UREMENT AND CERTIFICATION FOR THE AGRICULTURAL 
AND FORESTRY SECTORS.— 
(1) IN GENERAL.—As soon as practicable after 
the date of enactment of this Act, the Secretary of 
Agriculture shall establish a standardized system of 
carbon measurement and certification for the agri-
cultural and forestry sectors. 
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(2) ADMINISTRATION.—In establishing the sys-
tem, the Secretary of Agriculture shall— 
(A) create a standardized system of meas-
urements for agricultural and forestry green-
house gases; and 
(B) delineate the most appropriate system 
of certification of credit by public or private en-
tities. 
(c) RESEARCH.—After the date of submission of the 
report described in paragraph (1), the President and the 
Secretary of Agriculture (in collaboration with the member 
institutions of higher education of the Consortium for Ag-
ricultural Soil Mitigation of Greenhouse Gases, institu-
tions of higher education, and research entities) shall ini-
tiate a program to conduct any additional research that 
is necessary. 
SEC. 353. DISTRIBUTION. 
(a) IN GENERAL.—Taking into account the report 
prepared under section 352(a), the Secretary of Agri-
culture shall establish, by regulation, a program under 
which amounts from the Domestic Agriculture and For-
estry Account established under section 9941 of the Inter-
nal Revenue Code of 1986 may be distributed to entities 
that carry out projects on agricultural and forest land that 
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achieve real, verifiable, additional, permanent, and en-
forceable greenhouse gas emission mitigation benefits. 
(b) NITROUS OXIDE AND METHANE.—The Secretary 
of Agriculture shall ensure that, during any 5-year period, 
the average annual percentage of amounts distributed to 
entities under the program established under subsection 
(a) specifically for achieving real, verifiable, additional, 
permanent, and enforceable reductions in nitrous oxide 
emissions through soil management or achieving real, 
verifiable, additional, permanent, and enforceable reduc-
tions in methane emissions through enteric fermentation 
and manure management shall be 0.5 percent. 
(c) REQUIREMENT.—The Secretary of Agriculture 
shall make distributions under this section in a manner 
that maximizes the avoidance or reduction of greenhouse 
gas emissions. 
PART 6—INTERNATIONAL FORESTRY 
SEC. 361. FINDINGS. 
Congress finds that— 
(1) land-use change and forest sector emissions 
account for approximately 20 percent of global 
greenhouse gas emissions; 
(2) land conversion and deforestation are 2 of 
the largest sources of greenhouse gas emissions in 
the developing world, amounting to roughly 40 per-
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cent of the total greenhouse gas emissions of the de-
veloping world; 
(3) with sufficient data, deforestation rates and 
forest carbon stocks can be measured with an ac-
ceptable level of uncertainty; 
(4) some countries are or will soon be ready to 
make national-level commitments to reduce deforest-
ation and forest degradation and to engage in activi-
ties to achieve measurable results, while other coun-
tries will benefit from capacity building programs for 
a few years in order to establish the necessary do-
mestic institutions and laws to achieve reductions; 
and 
(5) encouraging reduced deforestation and 
other forest carbon activities in other countries 
can— 
(A) provide critical leverage to encourage 
voluntary developing country participation in 
emission limitation regimes; 
(B) facilitate greater overall reductions in 
greenhouse gas emissions than would otherwise 
be practicable; and 
(C) substantially benefit biodiversity, con-
servation and indigenous and other forest-de-
pendent people in developing countries. 
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SEC. 362. DEFINITION OF DEFORESTATION REDUCTION AC-
TIVITIES. 
In this part, the term ‘‘deforestation reduction activi-
ties’’ means— 
(1) activities directed at reducing greenhouse 
gas emissions from deforestation and forest degrada-
tion in countries other than the United States; and 
(2) activities directed at increasing sequestra-
tion of carbon through restoration of forests, and de-
graded land in countries other than the United 
States that has not been forested prior to restora-
tion, afforestation and improved forest management, 
that meet the eligibility requirements and quality 
criteria promulgated under section 364. 
SEC. 363. ALLOCATION. 
Not later than April 1, 2011, and annually thereafter 
through calendar year 2049, the Administrator of the En-
vironmental Protection Agency shall allocate and dis-
tribute the balance of the International Forestry Account 
for the following calendar year for use in carrying out de-
forestation reduction activities in countries other than the 
United States. 
SEC. 364. QUALITY CRITERIA FOR DEFORESTATION REDUC-
TION ACTIVITIES. 
Not later than 2 years after the date of enactment 
of this Act, the Administrator of the Environmental Pro-
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tection Agency, in consultation with the Secretary of the 
Interior, the Secretary of State, and the Secretary of Agri-
culture, shall promulgate quality criteria for deforestation 
reduction activities directed at reducing emissions from 
deforestation and forest degradation, and at sequestration 
of carbon through restoration of forests and degraded 
land, afforestation, and improved forest management in 
countries other than the United States, including require-
ments that those activities be— 
(1) designed, carried out, and managed – 
(A) in accordance with widely-accepted en-
vironmentally sustainable forestry practices; 
(B) to promote native species and restora-
tion of native forests, where practicable and to 
avoid the introduction of invasive nonnative 
species; and 
(C) to promote fair compensation, public 
participation, and the informed consent of af-
fected local communities and forest dependent 
populations; and 
(2) for not less than 50 percent of the funds 
covered by this part, requirements that ensure that 
the associated emission reductions or sequestrations 
are real, permanent, additional, verifiable and en-
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forceable, with reliable measuring and monitoring 
and appropriate accounting for leakage. 
SEC. 365. ELIGIBILITY FOR DEFORESTATION REDUCTION 
ACTIVITIES. 
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency, in consultation with the 
Secretary of State, shall identify and periodically update 
two lists of eligible countries for allocation and distribu-
tion of the International Forestry Account, based on their 
level of development of domestic programs to implement 
deforestation reduction activities, one identified as Phase 
I and the other as Phase II. 
(b) PHASE I COUNTRIES.—The Phase I list, eligible 
for up to 50 percent of the funds covered by this part, 
shall include countries that have demonstrated a commit-
ment to conduct preparatory activities, which shall be 
identified in regulations promulgated by the Administrator 
of the Environmental Protection Agency, which are essen-
tial for building the capacity of the country to engage in 
deforestation or forest degradation reduction activities as 
described in section 362 and subsection (c), including 
project-level and institution building activities. 
(c) PHASE II COUNTRIES.—The Phase II list, eligible 
for not less than 50 percent of the funds covered by this 
part, shall be limited to countries that have— 
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(1) demonstrated the capacity to measure the 
results of international deforestation reduction ac-
tivities, based on sufficient, accurate and verifiable 
historical data on changes in national forest carbon 
stocks, and also demonstrated the institutional ca-
pacity to reduce emissions from deforestation and 
degradation; 
(2) capped greenhouse gas emissions from de-
forestation or other land use change or otherwise es-
tablished a national emission reference scenario 
based on historical data; 
(3) commenced an emission reduction program 
for the forest sector; 
(4) achieved national-level reductions of defor-
estation and degradation below a baseline or credible 
reference scenario, taking into account the average 
annual deforestation and degradation rates of the 
country during a period of at least 5 consecutive 
years; and 
(5) demonstrated those reductions using remote 
sensing technology, taking into account relevant 
international standards. 
(d) The Administrator of the Environmental Protec-
tion Agency is encouraged to identify other incentives, in-
cluding economic and market-based incentives, to encour-
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age developing countries with largely intact native forests 
to protect those forests. 
(e) No country may be eligible for both capacity 
building funds under subsection (b) and participation in 
an agreement for international forest carbon activities 
under section 114 of the Climate MATTERS Act of 2008. 
SEC. 366. REVIEWS AND DISCOUNT. 
(a) REVIEWS.—Not later than 3 years after the date 
of enactment of this Act, and 5 years thereafter, the Ad-
ministrator of the Environmental Protection Agency shall 
conduct a review of the program under this part. 
(b) DISCOUNT.—If, after the date that is 10 years 
after the date of enactment of this Act, the Administrator 
of the Environmental Protection Agency determines that 
foreign countries that, in the aggregate, generate green-
house gas emissions accounting for more than 0.5 percent 
of global greenhouse gas emissions have not capped those 
emissions, established emissions reference scenarios based 
on historical data, or otherwise reduced total forest emis-
sions, such Administrator may apply a discount to dis-
tributions of funds to those countries under this part. 
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PART 7—ENERGY EFFICIENCY 
SEC. 371. ALLOCATION. 
Not later than April 1, 2011, and annually thereafter 
through calendar year 2049, the Secretary of the Treasury 
shall allocate— 
(1) 39 percent of the balance of the Energy Ef-
ficiency Account established under section 9512 of 
the Internal Revenue Code of 1986 for the following 
year to States that can demonstrate they have estab-
lished a program that will reduce electricity and nat-
ural gas demand in the state by 2 percent each year, 
(2) 39 percent of the balance of the balance of 
such Energy Efficiency Account for the following 
year among load-serving entities, 
(3) 10 percent of the balance of such Energy 
Efficiency Account for the following year to carry 
out the low-income home energy assistance program 
established under the Low Income Home Energy As-
sistance Act of 1981 (42 U.S.C. 8621 et seq.), 
(4) 2 percent of the balance of such Energy Ef-
ficiency Account for the following year to carry out 
the Weatherization Assistance Program for Low-In-
come Persons established under part A of title IV of 
the Energy Conservation and Production Act (42 
U.S.C. 6861 et seq.), and 
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(5) 10 percent of the balance of such Energy 
Efficiency Account for the following year to carry 
out activities that directly increase the energy effi-
ciency in units assisted under the HOME Invest-
ment Partnerships Program established under title 
II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12721 et seq.). 
SEC. 372. DISTRIBUTION. 
(a) IN GENERAL.—For each calendar year, the funds 
allocated under section 371 to load-serving entities shall 
be distributed by the Secretary of the Treasury to each 
load-serving entity, including each rural electric coopera-
tive that serves as a load-serving entity in a State, based 
on the proportion that— 
(1) the quantity of electricity delivered by the 
load-serving entity during the 3 calendar years pre-
ceding the calendar year for which the funds are dis-
tributed, adjusted upward for electricity not deliv-
ered as a result of consumer energy-efficiency pro-
grams implemented by the load-serving entity and 
verified by the regulatory agency of the load-serving 
entity; bears to 
(2) the total quantity of electricity delivered by 
all load-serving entities during those 3 calendar 
years. 
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(b) BASIS.—The Secretary of the Treasury shall base 
the determination of the quantity of electricity delivered 
by a load-serving entity for the purpose of subsection (a) 
on the most recent data available in annual reports filed 
with the Energy Information Administration of the De-
partment of Energy. 
SEC. 373. USE. 
All funds received under this part by a load-serving 
entity shall be used solely to promote energy efficiency on 
the part of energy consumers. 
SEC. 374. REPORTING. 
(a) IN GENERAL.—Each load-serving entity that ac-
cepts funds distributed under this part shall, for each cal-
endar year for which the load-serving entity accepts such 
funds, submit to the Secretary of Energy to report to the 
Secretary of the Treasury a report describing how, and 
to what extent, the load-serving entity used such funds 
during the preceding year. 
(b) AVAILABILITY OF REPORTS.—The Secretary of 
the Treasury shall make available to the public all reports 
submitted by any load-serving entity under subsection (a), 
including by publishing those reports on the Internet. 
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158 
PART 8—ALTERNATIVE TRANSPORTATION 
SEC. 381. GRANTS TO PROVIDE FOR ADDITIONAL AND IM-
PROVED PUBLIC TRANSPORTATION SERVICE. 
(a) IN GENERAL.—Of the funds allocated to the 
Transportation Alternatives Account each year pursuant 
to section 9512 of the Internal Revenue Code of 1986, 
32 percent shall be distributed to designated recipients (as 
defined in section 5307(a) of title 49, United States Code) 
to maintain or improve public transportation through ac-
tivities eligible under that section and associated measures 
that increase the direct or indirect greenhouse gas emis-
sions reductions projected to result from those eligible ac-
tivities, including— 
(1) improvements to lighting, heating, cooling, 
or ventilation systems in stations and other facilities 
that reduce direct or indirect greenhouse gas emis-
sions; 
(2) adjustments to signal timing or other vehi-
cle controlling systems that reduce direct or indirect 
greenhouse gas emissions; 
(3) purchasing or retrofitting rolling stock to 
improve efficiency or reduce greenhouse gas emis-
sions; and 
(4) improvements to energy distribution sys-
tems. 
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(b) DISTRIBUTION.—Of the balance of account funds, 
the Secretary shall distribute under subsection (a)—— 
(1) 60 percent in accordance with the formulas 
contained in subsections (a) through (c) of section 
5336 of title 49, United States Code; and 
(2) 40 percent in accordance with the formula 
contained in section 5340 of that title. 
(c) TERMS
AND CONDITIONS.—A grant provided 
under this subsection shall be subject to the terms and 
conditions applicable to a grant provided under section 
5307 of title 49, United States Code. 
(d) COST SHARE.—The Federal share of cost of car-
rying out an activity using a grant under this subsection 
shall be determined in accordance with section 5307(e) of 
title 49, United States Code. 
SEC. 382. GRANTS FOR CONSTRUCTION OF NEW PUBLIC 
TRANSPORTATION PROJECTS. 
(a) IN GENERAL.—Of the funds deposited in the 
Transportation Alternatives Account each year pursuant 
to section 9512 of the Internal Revenue Code of 1986, 
32 percent shall be distributed to State and local govern-
ment authorities for design, engineering, and construction 
of new fixed guideway transit projects or extensions to ex-
isting fixed guideway transit systems that will assist in 
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reducing direct or indirect greenhouse gas emissions of the 
regional transportation sector. 
(b) APPLICATIONS.—Applications for grants under 
this section shall be reviewed according to the process and 
criteria established under section 5309(c) of title 49, 
United States Code, for major capital investments and 
section 5309(d) of title 49, United States Code, for other 
projects. 
(c) TERMS AND CONDITIONS.—Grant funds awarded 
under this section shall be subject to the terms and condi-
tions applicable to a grant made under section 5309 of 
title 49, United States Code. 
SEC. 383. GRANTS FOR TRANSPORTATION ALTERNATIVES 
AND 
TRAVEL 
DEMAND 
REDUCTION 
PROJECTS. 
(a) IN GENERAL.—Of the funds deposited into the 
Transportation Alternatives Account each year pursuant 
to section 9512 of the Internal Revenue Code of 1986, 
32 percent shall be awarded to designated recipients (as 
defined in section 5307(a) of title 49, United States Code) 
and State, regional, and local government authorities to 
assist in reducing the direct and indirect greenhouse gas 
emissions of the regional transportation sector, through 
the following activities— 
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(1) Carpool or telecommuting projects that do 
not include new roadway capacity; 
(2) Bicycle transportation and pedestrian walk-
ways in accordance with section 217 of title 23, 
United State Code, and the modification of public 
sidewalks to comply with the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 12101 et seq.); 
(3) Updating zoning and land use regulations 
to support, allow, or incentivize walkable or transit- 
supportive development patterns and land uses; 
(4) Transportation enhancement activities, in-
cluding design and retrofitting of streets for 
multimodal access; 
(5) Infrastructure-based intelligent transpor-
tation systems that help reduce vehicle miles trav-
eled, including automated road-pricing, congestion 
pricing, and advanced traffic management systems, 
provided they do not involve construction of signifi-
cant new roadway capacity; 
(6) Market-based programs to reduce travel de-
mand, including car or bicycle sharing and pay-as- 
you-drive insurance. 
(b) DISTRIBUTION OF FUNDS.—In determining the 
recipients of grants under this section, applications shall 
be evaluated based on the total direct and indirect green-
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house gas emissions reductions that are projected to result 
from the project and projected reductions as a percentage 
of the total direct and indirect emissions of an entity, as 
determined by applicants using methods developed and 
promulgated by the Administrator, in concert with the Ad-
ministrator of the United States Department of Transpor-
tation, no more than 3 years after the passage of this Act. 
(c) GOVERNMENT SHARE OF COSTS.—The Federal 
share of the cost of an activity funded using amounts 
made available under this section may not exceed 80 per-
cent of the cost of the activity. 
(d) TERMS AND CONDITIONS.—Except to the extent 
inconsistent with the terms of this section, grant funds 
awarded under this section shall be subject to the terms 
and conditions applicable to a grant made under section 
133 of title 23, United States Code. 
SEC. 384. TECHNICAL CAPACITY AND STANDARDS. 
(a) IN GENERAL.—Of the funds deposited into the 
Transportation Alternatives Accounts each year pursuant 
to section 9512 of the Internal Revenue Code of 1986, 
4 percent shall be distributed to Federal, State, and local 
government authorities including Municipal Planning Or-
ganizations to allocate resources and staff to improve and 
apply technical capacity for the development of plans and 
future plan updates including— 
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(1) collection of travel and land use data to 
measure transportation system performance using 
per capita vehicle miles traveled and other measures 
adopted by the Administrator of the Environmental 
Protection Agency, with the concurrence of the Sec-
retary of Transportation; 
(2) monitoring and periodically reporting vehi-
cle miles traveled by municipal planning region and 
statewide to demonstrate that performance objec-
tives are achieved; 
(3) modeling and analyses of transportation 
and land-use scenarios to develop regional and state-
wide plans and plan updates that will ensure that 
the emission reduction targets established in section 
386(3) this will continue to met during the period 
prior to the planning horizon for each plan update; 
(4) refinements to travel models to improve 
consideration of land use and non-motorized modes 
to estimate future system performance that are de-
termined to be reliable for the purpose of estimating 
future travel and system performance; and 
(5) stakeholder engagement. 
(b) DISTRIBUTION OF FUNDS.—The Secretary shall 
distribute funds under subsection (a) as follows: 
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(1) 80 percent to State and local government 
authorities for developing and implementing activi-
ties specified under subsection (a); 
(2) 20 percent to the United States Environ-
mental Protection Agency and the United States De-
partment of Transportation to establish methods for 
providing guidance, support, tools, and information 
to State and local government authorities for devel-
oping and implementing activities specified under 
subsection (a). 
SEC. 385. STUDY AND STANDARDS. 
(a) STUDY.—To improve the ability of recipients of 
funds under this part to maximize greenhouse gas emis-
sions reductions resulting from funded activities, no more 
than 180 days after the passage of this Act—— 
(1) the National Academy of Sciences Trans-
portation Research Board shall report to the Admin-
istrator of the United States Department of Trans-
portation recommendations for improving research 
and tools to assess the effect of transportation plans 
and land use plans on motor vehicle usage rates and 
transportation sector greenhouse gas emissions; and 
(2) the Government Accountability Office shall 
report to the Administrator of the Environmental 
Protection Agency on shortcomings of current gov-
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ernment data sources needed to assess greenhouse 
gas emissions from the transportation sector and to 
establish plans and policies to effectively reduce 
greenhouse gas emissions from the transportation 
sector, and make recommendations to address these 
shortcomings. 
(b) TECHNICAL STANDARDS.—Not more than 2 
years after the passage of this Act, based on recommenda-
tions issued pursuant to subsection (a), the Administra-
tors of the United States Environmental Protection Agen-
cy and the United States Department of Transportation 
shall promulgate standards for transportation data collec-
tion, monitoring, planning, and modeling. 
SEC. 386. CONDITION FOR RECEIPT OF FUNDS. 
To be eligible to receive funds under section 381, 382, 
or 383, projects or activities funded under such section 
must be part of an integrated State-wide, regional, or local 
transportation plan that shall— 
(1) include all modes of surface transportation; 
(2) utilize data collection, monitoring, planning, 
and modeling methods pursuant to standards estab-
lished in section 385(b); 
(3) establish targets for reducing long term 
greenhouse gas emissions from the regional trans-
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portation sector through reducing and managing 
motor vehicle usage; 
(4) demonstrate that the targets established 
pursuant to subparagraph (3) will be achieved 
with— 
(A) currently adopted land use plans and 
policies, or 
(B) revised land use plans and policies for 
which commitments have been obtained by reso-
lution of other lawful action taken by jurisdic-
tions with authority to adopt land use plans 
and policies; and 
(5) report on estimated direct and indirect 
greenhouse gases emissions from the transportation 
sector for 2005, and aggregate emissions for each 
five-year period within the planning horizon of the 
plan and each update; and 
(6) be certified by the Administrator of the En-
vironmental Protection Agency as consistent with 
the purposes of this Act. 
TITLE 
IV—EMISSIONS 
DETER-
MINATIONS AND MISCELLA-
NEOUS 
SEC. 401. DEFINITIONS. 
In this title: 
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(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) CARBON DIOXIDE EQUIVALENT.—The term 
‘‘carbon dioxide equivalent’’ means, for each green-
house gas, the quantity of the greenhouse gas that 
the Administrator determines makes the same con-
tribution to global warming as 1 metric ton of car-
bon dioxide. 
(3) GREENHOUSE GAS.—The term ‘‘greenhouse 
gas’’ means any of— 
(A) carbon dioxide; 
(B) methane; 
(C) nitrous oxide; 
(D) sulfur hexafluoride; 
(E) a perfluorocarbon; 
(F) a hydrofluorocarbon; or 
(G) any other anthropogenically-emitted 
gas that is determined by the Administrator, 
after notice and comment, to contribute to glob-
al warming to a non-negligible degree. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
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SEC. 402. FEDERAL GREENHOUSE GAS REGISTRY, EMIS-
SIONS DETERMINATION, AND UNCOVERED 
SECTOR EMISSIONS. 
(a) IN GENERAL.—For purposes of carrying out the 
emissions allowance system under subtitle L of the Inter-
nal Revenue Code of 1986, the Administrator shall— 
(1) develop a Federal Greenhouse Gas Registry 
that— 
(A) covers all United States emissions of 
greenhouse gases; 
(B) is complete, consistent, transparent 
and accurate; 
(C) will collect reliable and accurate data 
on increases and reductions in United States 
greenhouse gas emissions as well as greenhouse 
gas sequestration that can be used by public 
and private entities to design efficient and ef-
fective energy security initiatives and green-
house gas emission reduction strategies; and 
(D) will provide appropriate high-quality 
data to be used for implementing greenhouse 
gas reduction policies; 
(2) determine— 
(A) for each covered facility, the carbon di-
oxide equivalent of— 
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(i) greenhouse gas that was emitted 
by the use of coal by that covered facility 
during the preceding year; 
(ii) greenhouse gas that will, assum-
ing no capture and sequestration of that 
gas, be emitted from the use of any 
petroleum- or coal-based liquid or gaseous 
fuel that was produced or imported by that 
covered facility during the preceding year; 
(iii) greenhouse gas that was produced 
for sale or distribution or imported by that 
facility during the preceding year; 
(iv) greenhouse gas that was emitted 
as a byproduct of hydrochlorofluorocarbon 
production; and 
(v) greenhouse gas that will, assuming 
no capture and destruction or sequestra-
tion of that gas, be emitted— 
(I) from the use of natural gas 
that was, by that covered facility, 
processed, imported, or produced and 
not reinjected into the field; or 
(II) from the use of natural gas 
liquids that were processed or im-
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ported by that covered facility during 
the preceding year; and 
(B) any additional reduction in carbon di-
oxide equivalents by owners or operators of cov-
ered facilities, including additional net reduc-
tion of carbon dioxide equivalents due to dis-
placing petroleum in the transportation sector 
through actions by the owners or operators of 
covered facilities that result in increased use of 
electrified transportation, such as plug-in hy-
brid vehicles, electric vehicles, port electrifica-
tion, electric rail, and truck stop electrification; 
and 
(3) promulgate not later than 2 years after the 
date of the enactment of this Act, and periodically 
revise, regulations requiring that emissions in uncov-
ered sectors do not grow, so as to ensure that the 
goal of this Act to reduce United States emissions 
80 percent below 1990 levels by 2050 is met. 
(b) ANNUAL REPORT.—The Administrator shall an-
nually transmit to the Secretary a report describing the 
results of activities under subsection (a). 
(c) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘uncovered sector’’ means any sec-
tor that is not primarily composed of covered facili-
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ties and whose greenhouse gas emissions are not al-
ready included in the cap through the regulation of 
a covered facility; and 
(2) the term ‘‘United States greenhouse gas 
emissions’’ means the total quantity of greenhouse 
gas emissions calculated by the Administrator on an 
annual basis and reported to the United Nations 
Framework Convention on Climate Change Secre-
tariat. 
SEC. 403. PARAMOUNT INTEREST WAIVER. 
(a) IN GENERAL.—If the President determines that 
a national security emergency exists and, in light of infor-
mation that was not available as of the date of enactment 
of this Act, it is in the paramount interest of the United 
States to modify any requirement under this Act and the 
amendments made by this Act to minimize the effects of 
the emergency, the President may, after opportunity for 
public notice and comment, temporarily adjust, suspend, 
or waive any regulations promulgated pursuant to this Act 
and the amendments made by this Act to achieve that 
minimization. 
(b) CONSULTATION.—In making an emergency deter-
mination under subsection (a), the President shall, to the 
maximum extent practicable, consult with and take into 
account any advice received from— 
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(1) the Secretary; 
(2) the National Academy of Sciences; 
(3) the Secretary of Energy; and 
(4) the Administrator. 
(c) JUDICIAL REVIEW.—An emergency determination 
under subsection (a) shall be subject to judicial review in 
accordance with section 307 of the Clean Air Act (42 
U.S.C. 7607). 
SEC. 404. ADMINISTRATIVE PROCEDURE AND JUDICIAL RE-
VIEW. 
(a) RULEMAKING PROCEDURES.—Any rule, require-
ment, regulation, method, standard, program, determina-
tion, or final action made or promulgated pursuant to any 
title of this Act and the amendments made by this Act 
shall be subject to the rulemaking procedures described 
in sections 551 through 557 of title 5, United States Code. 
(b) ENFORCEMENT.—(1) Each provision of this Act 
and any regulation issued pursuant to this Act shall be 
fully enforceable pursuant to sections 113, 303, and 304 
of the Clean Air Act (42 U.S.C. 7413, 7603, 7604). For 
purposes of enforcement under these sections, all require-
ments under this Act shall constitute requirements of the 
Clean Air Act, and, for purposes of enforcement under sec-
tion 304 of the Clean Air Act (42 U.S.C. 7604), all re-
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quirements of this Act shall constitute emission standards 
or limitations under the Clean Air Act. 
(2) All provisions related to mandatory duties of the 
Secretary or any other Federal official shall be fully en-
forceable pursuant to section 304 of the Clean Air Act 
(42 U.S.C. 7604). 
(3) The district courts of the United States shall have 
jurisdiction to compel agency action (including discre-
tionary agency action) under this Act that has been unrea-
sonably delayed. 
(c) RECORDKEEPING, INSPECTIONS, MONITORING, 
ENTRY, AND SUBPOENAS.—The Secretary shall have the 
same powers and authority provided under sections 114 
and 307(a) of the Clean Air Act (42 U.S.C. 7414, 
7607(a)) in carrying out, administering, and enforcing 
this Act and the amendments made by this Act. 
(d) JUDICIAL REVIEW.—A petition for judicial review 
of any regulation promulgated, or final action carried out, 
by the Secretary or any other Federal official or agency 
pursuant to this Act may be filed in the United States 
Court of Appeals for the appropriate circuit and otherwise 
only in accordance with section 307(b) of the Clean Air 
Act (42 U.S.C. 7607(b)), except that petitions concerning 
actions of the Secretary may only be filed in the United 
States Court of Appeals for the District of Columbia. The 
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provisions of section 307(f) of the Clean Air Act (42 
U.S.C. 7607(f)) shall govern the award of costs and attor-
neys’ fees in such cases. 
SEC. 405. RETENTION OF STATE AUTHORITY. 
(a) IN GENERAL.—Except as provided in subsection 
(b), in accordance with section 116 of the Clean Air Act 
(42 U.S.C. 7416) and section 510 of the Federal Water 
Pollution Control Act (33 U.S.C. 1370), nothing in this 
Act and the amendments made by this Act precludes or 
abrogates the right of any State to adopt or enforce— 
(1) any standard, cap, limitation, or prohibition 
relating to emissions of greenhouse gas; or 
(2) any requirement relating to control, abate-
ment, or avoidance of emissions of greenhouse gas. 
(b) EXCEPTION.—Notwithstanding subsection (a), no 
State may adopt a standard, cap, limitation, prohibition, 
or requirement that is less stringent than the applicable 
standard, cap, limitation, prohibition, or requirement 
under this Act and the amendments made by this Act. 
SEC. 406. TRIBAL AUTHORITY. 
For purposes of this Act and the amendments made 
by this Act, the Secretary may treat any federally recog-
nized Indian tribe as a State, in accordance with section 
301(d) of the Clean Air Act (42 U.S.C. 7601(d)). 
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