lishing a baseline and reporting emissions under this 
section)— 
(A) submit a report described in paragraph 
(1) before the date specified in that paragraph 
for 
the 
purposes 
of 
achieving 
and 
commoditizing 
greenhouse 
gas 
reductions 
through use of the registry and for other pur-
poses; and 
(B) submit to the Administrator, for inclu-
sion in the registry, information that has been 
verified in accordance with regulations promul-
gated under section 201(c)(1) and that relates 
to— 
(i) any activity that resulted in the 
net reduction of the greenhouse gas emis-
sions of the entity or a net increase in se-
questration by the entity that were carried 
out during or after 1990 and before the es-
tablishment of the database, verified in ac-
cordance with regulations promulgated 
under section 201(c)(1), and submitted to 
the Administrator before the date that is 4 
years after the date of enactment of this 
Act; and
(ii) with respect to the calendar year 
preceding the calendar year in which the 
information is submitted, any project or 
activity that resulted in the net reduction 
of the greenhouse gas emissions of the en-
tity or a net increase in net sequestration 
by the entity. 
(3) PROVISION OF VERIFICATION INFORMATION 
BY REPORTING ENTITIES.—Each entity that submits 
a report under this subsection shall provide informa-
tion sufficient for the Administrator to verify, in ac-
cordance with measurement and verification methods 
and standards developed under section 204, that the 
greenhouse gas report of the reporting entity— 
(A) has been accurately reported; and 
(B) in the case of each voluntary report 
under paragraph (2), represents— 
(i) actual reductions in direct green-
house gas emissions— 
(I) relative to historic emission 
levels of the entity; and 
(II) after accounting for any in-
creases in indirect emissions described 
in paragraph (1)(D)(i); or
(ii) actual increases in net sequestra-
tion. 
(4) FAILURE TO SUBMIT REPORT.—An entity 
that participates or has participated in the registry 
and that fails to submit a report required under this 
subsection shall be prohibited from using, or allow-
ing another entity to use, its registered emissions re-
ductions or increases in sequestration to satisfy the 
requirements of section 301. 
(5) 
INDEPENDENT
THIRD-PARTY 
VERIFICATION.—To meet the requirements of this 
section and section 204, an entity that is required 
to submit a report under this section may— 
(A) 
obtain 
independent 
third-party 
verification; and 
(B) present the results of the third-party 
verification to the Administrator. 
(6) AVAILABILITY OF DATA.— 
(A) IN
GENERAL.—The Administrator 
shall ensure that information in the database 
is— 
(i) published; and 
(ii) accessible to the public, including 
in electronic format on the Internet.
(B) EXCEPTION.—Subparagraph (A) shall 
not apply in any case in which the Adminis-
trator determines that publishing or otherwise 
making available information described in that 
subparagraph poses a risk to national security 
or discloses confidential business information 
that can not be derived from information that 
is otherwise publicly available and that would 
cause competitive harm if published. 
(7) DATA
INFRASTRUCTURE.—The Adminis-
trator shall ensure, to the maximum extent prac-
ticable, that the database uses, and is integrated 
with, Federal, State, and regional greenhouse gas 
data collection and reporting systems in effect as of 
the date of enactment of this Act. 
(8) ADDITIONAL ISSUES TO BE CONSIDERED.— 
In promulgating the regulations under section 
201(c)(1) and implementing the database, the Ad-
ministrator shall take into consideration a broad 
range of issues involved in establishing an effective 
database, including— 
(A) the data and information systems and 
measures necessary to identify, track, and 
verify greenhouse gas emissions in a manner
that will encourage private sector trading and 
exchanges; 
(B) the greenhouse gas reduction and se-
questration measurement and estimation meth-
ods and standards applied in other countries, as 
applicable or relevant; 
(C) the extent to which available fossil 
fuels, greenhouse gas emissions, and greenhouse 
gas production and importation data are ade-
quate to implement the database; and 
(D) the differences in, and potential 
uniqueness of, the facilities, operations, and 
business and other relevant practices of persons 
and entities in the private and public sectors 
that may be expected to participate in the data-
base. 
(d) ANNUAL REPORT.—The Administrator shall pub-
lish an annual report that— 
(1) describes the total greenhouse gas emissions 
and emission reductions reported to the database 
during the year covered by the report; 
(2) provides entity-by-entity and sector-by-sec-
tor analyses of the emissions and emission reduc-
tions reported;
(3) describes the atmospheric concentrations of 
greenhouse gases; 
(4) provides a comparison of current and past 
atmospheric concentrations of greenhouse gases; and 
(5) describes the activity during the year cov-
ered by the period in the trading of greenhouse gas 
emission allowances. 
SEC. 204. MEASUREMENT AND VERIFICATION. 
(a) STANDARDS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary 
shall establish by rule, in coordination with the Ad-
ministrator, the Secretary of Energy, and the Sec-
retary of Agriculture, comprehensive measurement 
and verification methods and standards to ensure a 
consistent and technically accurate record of green-
house gas emissions, emission reductions, sequestra-
tion, and atmospheric concentrations for use in the 
registry. 
(2) REQUIREMENTS.—The methods and stand-
ards established under paragraph (1) shall include— 
(A) a requirement that a covered entity 
use a continuous emissions monitoring system, 
or another system of measuring or estimating 
emissions that is determined by the Secretary
to provide information with precision, reli-
ability, accessibility, and timeliness similar to 
that provided by a continuous emissions moni-
toring system where technologically feasible; 
(B) establishment of standardized meas-
urement and verification practices for reports 
made by all entities participating in the reg-
istry, taking into account— 
(i) protocols and standards in use by 
entities requiring or desiring to participate 
in the registry as of the date of develop-
ment of the methods and standards under 
paragraph (1); 
(ii) boundary issues, such as leakage; 
(iii) avoidance of double counting of 
greenhouse gas emissions and emission re-
ductions; 
(iv) protocols to prevent a covered en-
tity from avoiding the requirements of this 
Act by reorganization into multiple entities 
that are under common control; and 
(v) such other factors as the Sec-
retary, in consultation with the Adminis-
trator, determines to be appropriate; 
(C) establishment of methods of—
(i) estimating greenhouse gas emis-
sions, for those cases in which the Sec-
retary determines that methods of moni-
toring, measuring or estimating such emis-
sions with precision, reliability, accessi-
bility, and timeliness similar to that pro-
vided by a continuous emissions monitoring 
system are not technologically feasible at 
present; and 
(ii) reporting the accuracy of such es-
timations; 
(D) establishment of measurement and 
verification standards applicable to actions 
taken to reduce, avoid, or sequester greenhouse 
gas emissions; 
(E) in coordination with the Secretary of 
Agriculture, standards to measure the results of 
the use of carbon sequestration and carbon re-
capture technologies, including— 
(i) soil carbon sequestration practices; 
and 
(ii) forest preservation and reforest-
ation activities that adequately address the 
issues 
of 
permanence, 
leakage, 
and 
verification;
(F) establishment of such other measure-
ment and verification standards as the Sec-
retary, in consultation with the Secretary of Ag-
riculture, the Administrator, and the Secretary 
of Energy, determines to be appropriate; 
(G) establishment of standards for obtain-
ing the Secretary’s approval of the suitability of 
geological storage sites that include evaluation 
of both the geology of the site and the entity’s 
capacity to manage the site; and 
(H) establishment of other features that, 
as determined by the Secretary, will allow enti-
ties to adequately establish a fair and reliable 
measurement and reporting system. 
(b) REVIEW AND REVISION.—The Secretary shall pe-
riodically review, and revise as necessary, the methods and 
standards developed under subsection (a). 
(c) PUBLIC PARTICIPATION.—The Secretary shall— 
(1) make available to the public for comment, 
in draft form and for a period of at least 90 days, 
the methods and standards developed under sub-
section (a); and 
(2) after the 90-day period referred to in para-
graph (1), in coordination with the Secretary of En-
ergy, the Secretary of Agriculture, and the Adminis-
trator, adopt the methods and standards developed 
under subsection (a) for use in implementing the 
database. 
(d) EXPERTS AND CONSULTANTS.— 
(1) IN GENERAL.—The Secretary may obtain 
the services of experts and consultants in the private 
and nonprofit sectors in accordance with section 
3109 of title 5, United States Code, in the areas of 
greenhouse gas measurement, certification, and 
emission trading. 
(2) AVAILABLE ARRANGEMENTS.—In obtaining 
any service described in paragraph (1), the Sec-
retary may use any available grant, contract, cooper-
ative agreement, or other arrangement authorized by 
law. 
TITLE III—MARKET-DRIVEN 
GREENHOUSE GAS REDUCTIONS 
Subtitle 
A—Emission 
Reduction 
Requirements; Use of Tradeable 
Allowances 
SEC. 301. COVERED ENTITIES MUST SUBMIT ALLOWANCES 
FOR EMISSIONS. 
(a) IN GENERAL.—Beginning with calendar year 
2010—