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or offset credits), and to make all submissions to the 
Administrator under this title. 
‘‘(16) DEVELOPING COUNTRY.—The term ‘de-
veloping country’ means a country eligible to receive 
official development assistance according to the in-
come guidelines of the Development Assistance Com-
mittee of the Organization for Economic Coopera-
tion and Development. 
‘‘(17) DOMESTIC
OFFSET
CREDIT.—For pur-
poses of part D, the term ‘domestic offset credit’ 
means an offset credit issued under part D, other 
than an international offset credit. For purposes of 
part C, the term means any offset credit issued 
under the American Clean Energy and Security Act 
of 2009, or the amendments made thereby. The 
term does not include a term offset credit. 
‘‘(18) ELECTRICITY SOURCE.—The term ‘elec-
tricity source’ means a stationary source that in-
cludes one or more utility units. 
‘‘(19) EMISSION.—The term ‘emission’ means 
the release of a greenhouse gas into the ambient air. 
Such term does not include gases that are captured 
and geologically sequestered, except to the extent 
that they are later released into the atmosphere, in 
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which case compliance must be demonstrated pursu-
ant to section 722(b)(5). 
‘‘(20) EMISSION ALLOWANCE.—The term ‘emis-
sion allowance’ means an allowance established 
under section 721(a) or section 726(g)(2) or 
(h)(1)(C). 
‘‘(21) FAIR MARKET VALUE.—The term ‘fair 
market value’ means the average daily closing price 
on registered exchanges or, if such a price is un-
available, the average price as determined by the Ad-
ministrator, during a specified time period, of an 
emission allowance. 
‘‘(22) FEDERAL
LAND.—The term ‘Federal 
land’ means land that is owned by the United 
States, other than land held in trust for an Indian 
or Indian tribe. 
‘‘(23) FOSSIL
FUEL.—The term ‘fossil fuel’ 
means natural gas, petroleum, or coal, or any form 
of solid, liquid, or gaseous fuel derived from such 
material, including consumer products that are de-
rived from such materials and are combusted. 
‘‘(24) FOSSIL
FUEL-FIRED.—The term ‘fossil 
fuel-fired’ means powered by combustion of fossil 
fuel, alone or in combination with any other fuel, re-
gardless of the percentage of fossil fuel consumed. 
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‘‘(25) FUGITIVE EMISSIONS.—The term ‘fugi-
tive emissions’ means emissions from leaks, valves, 
joints, or other small openings in pipes, ducts, or 
other equipment, or from vents. 
‘‘(26) GEOLOGIC
SEQUESTRATION; GEOLOGI-
CALLY SEQUESTERED.—The terms ‘geologic seques-
tration’ and ‘geologically sequestered’ mean the se-
questration of greenhouse gases in subsurface geo-
logic formations for purposes of permanent storage. 
‘‘(27) GEOLOGIC
SEQUESTRATION
SITE.—The 
term ‘geologic sequestration site’ means a site where 
carbon dioxide is geologically sequestered. 
‘‘(28) GREENHOUSE
GAS.—The term ‘green-
house gas’ means any gas described in section 
711(a) or designated under section 711, except to 
the extent that it is regulated under title VI. 
‘‘(29) HOLD.—The term ‘hold’ means, with re-
spect to an allowance, offset credit, or term offset 
credit, to have in the appropriate account in the al-
lowance tracking system established under section 
724(d), or submit to the Administrator for recording 
in such account. 
‘‘(30) INDUSTRIAL SOURCE.—The term ‘indus-
trial source’ means any stationary source that— 
‘‘(A) is not an electricity source; and 
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‘‘(B) is in— 
‘‘(i) the manufacturing sector (as de-
fined in North American Industrial Classi-
fication System codes 31, 32, and 33); or 
‘‘(ii) the natural gas processing or 
natural gas pipeline transportation sector 
(as defined in North American Industrial 
Classification System codes 211112 and 
486210). 
‘‘(31) 
INTERNATIONAL
EMISSION
ALLOW-
ANCE.—The term ‘international emission allowance’ 
means a tradable authorization to emit 1 ton of car-
bon dioxide equivalent of greenhouse gas that is 
issued by a national or supranational foreign govern-
ment pursuant to a qualifying international program 
designated by the Administrator pursuant to section 
728(a). 
‘‘(32) INTERNATIONAL OFFSET CREDIT.—The 
term ‘international offset credit’ means an offset 
credit issued by the Administrator under section 
743. 
‘‘(33) LEAKAGE.—Except as provided in part 
F, the term ‘leakage’ means a significant increase in 
greenhouse gas emissions, or significant decrease in 
sequestration, which is caused by an offset project or 
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activities under part E and occurs outside the 
boundaries of the offset project or the relevant pro-
gram or project under part E. 
‘‘(34) MINERAL
SEQUESTRATION.—The term 
‘mineral sequestration’ means sequestration of car-
bon dioxide from the atmosphere by capturing car-
bon dioxide into a permanent mineral, such as the 
aqueous precipitation of carbonate minerals that re-
sults in the storage of carbon dioxide in a mineral 
form. 
‘‘(35) NATURAL GAS LIQUID.—The term ‘nat-
ural gas liquid’ means ethane, butane, isobutane, 
natural gasoline, and propane. 
‘‘(36) NATURAL
GAS
LOCAL
DISTRIBUTION 
COMPANY.—The term ‘natural gas local distribution 
company’ has the meaning given the term ‘local dis-
tribution company’ in section 2(17) of the Natural 
Gas Policy Act of 1978 (15 U.S.C. 3301(17)). 
‘‘(37) OFFSET CREDIT.—For purposes of this 
section and part D, the term ‘offset credit’ means an 
offset credit issued under part D. For purposes of 
part C, the term means any offset credit issued 
under the American Clean Energy and Security Act 
of 2009, or the amendments made thereby. The 
term does not include a term offset credit. 
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‘‘(38) OFFSET
PROJECT.—The term ‘offset 
project’ means a project or activity that reduces or 
avoids greenhouse gas emissions, or sequesters 
greenhouse gases, and for which offset credits are or 
may be issued under part D. 
‘‘(39) OFFSET
PROJECT
DEVELOPER.—The 
term ‘offset project developer’ means the individual 
or entity designated as the offset project developer 
in an offset project approval petition under section 
735(c)(1). 
‘‘(40) PETROLEUM.—The term ‘petroleum’ in-
cludes crude oil, tar sands, oil shale, and heavy oils. 
‘‘(41) RENEWABLE
BIOMASS.—The term ‘re-
newable biomass’ means any of the following: 
‘‘(A) Materials, pre-commercial thinnings, 
or removed invasive species from National For-
est System land and public lands (as defined in 
section 103 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1702)), 
including those that are byproducts of preven-
tive treatments (such as trees, wood, brush, 
thinnings, chips, and slash), that are removed 
as part of a federally recognized timber sale, or 
that are removed to reduce hazardous fuels, to 
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reduce or contain disease or insect infestation, 
or to restore ecosystem health, and that are— 
‘‘(i) not from components of the Na-
tional Wilderness Preservation System, 
Wilderness 
Study 
Areas, 
Inventoried 
Roadless Areas, old growth stands, late- 
successional stands (except for dead, se-
verely damaged, or badly infested trees), 
components of the National Landscape 
Conservation 
System, 
National 
Monu-
ments, National Conservation Areas, Des-
ignated Primitive Areas, or Wild and Sce-
nic Rivers corridors; 
‘‘(ii) harvested in environmentally sus-
tainable quantities, as determined by the 
appropriate Federal land manager; and 
‘‘(iii) harvested in accordance with 
Federal and State law, and applicable land 
management plans. 
‘‘(B) Any organic matter that is available 
on a renewable or recurring basis from non- 
Federal land or land belonging to an Indian or 
Indian tribe that is held in trust by the United 
States or subject to a restriction against alien-
ation imposed by the United States, including— 
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‘‘(i) renewable plant material, includ-
ing— 
‘‘(I) feed grains; 
‘‘(II) other agricultural commod-
ities; 
‘‘(III) other plants and trees; and 
‘‘(IV) algae; and 
‘‘(ii) waste material, including— 
‘‘(I) crop residue; 
‘‘(II) other vegetative waste ma-
terial (including wood waste and wood 
residues); 
‘‘(III) animal waste and byprod-
ucts (including fats, oils, greases, and 
manure); 
‘‘(IV) construction waste; and 
‘‘(V) food waste and yard waste. 
‘‘(C) Residues and byproducts from wood, 
pulp, or paper products facilities. 
‘‘(42) RETIRE.—The term ‘retire’, with respect 
to an allowance, offset credit, or term offset credit, 
established or issued under the American Clean En-
ergy and Security Act of 2009 or the amendments 
made thereby, means to disqualify such allowance or 
offset credit for any subsequent use under this title, 
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regardless of whether the use is a sale, exchange, or 
submission of the allowance, offset credit, or term 
offset credit to satisfy a compliance obligation. 
‘‘(43) REVERSAL.—The term ‘reversal’ means 
an intentional or unintentional loss of sequestered 
greenhouse gases to the atmosphere. 
‘‘(44) SEQUESTERED AND SEQUESTRATION.— 
The terms ‘sequestered’ and ‘sequestration’ mean 
the separation, isolation, or removal of greenhouse 
gases from the atmosphere, as determined by the 
Administrator. The terms include biological, geo-
logic, and mineral sequestration, but do not include 
ocean fertilization techniques. 
‘‘(45) STATIONARY
SOURCE.—The term ‘sta-
tionary source’ means any integrated operation com-
prising any plant, building, structure, or stationary 
equipment, including support buildings and equip-
ment, that is located within one or more contiguous 
or adjacent properties, is under common control of 
the same person or persons, and emits or may emit 
a greenhouse gas. 
‘‘(46) STRATEGIC RESERVE ALLOWANCE.—The 
term ‘strategic reserve allowance’ means an emission 
allowance reserved for, transferred to, or deposited 
in the strategic reserve under section 726. 
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‘‘(47) TON.—The term ‘ton’ means metric ton. 
‘‘(48) UNCAPPED EMISSIONS.—The term ‘un-
capped emissions’ means emissions of greenhouse 
gases emitted after December 31, 2011, that are not 
capped emissions. 
‘‘(49) UNITED STATES GREENHOUSE GAS EMIS-
SIONS.—The term ‘United States greenhouse gas 
emissions’ means the total quantity of annual green-
house gas emissions from the United States, as cal-
culated by the Administrator and reported to the 
United Nations Framework Convention on Climate 
Change Secretariat. 
‘‘(50) UTILITY UNIT.—The term ‘utility unit’ 
means a combustion device that, on January 1, 
2009, or any date thereafter, is fossil fuel-fired and 
serves a generator that produces electricity for sale, 
unless such combustion device, during the 12-month 
period starting the later of January 1, 2009, or the 
commencement of commercial operation and each 
calendar year starting after such later date— 
‘‘(A) is part of an integrated cycle system 
that cogenerates steam and electricity during 
normal operation and that supplies one-third or 
less of its potential electric output capacity and 
25 MW or less of electrical output for sale; or 
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or auction pursuant to section 781 or subsections 
(a) through (o) and subsections (s) and (t) of this 
section, or disbursed pursuant to section 790, shall 
be auctioned by the Administrator pursuant to sec-
tion 791 and the proceeds shall be deposited into the 
Treasury. 
‘‘(2) Unless otherwise specified, any allowances 
allocated pursuant to subsections (a) through (o) 
and subsections (s) and (t) and not distributed by 
March 31 of the calendar year following the allow-
ance’s vintage year, shall be auctioned by the Ad-
ministrator and the proceeds shall be deposited into 
the Treasury. 
‘‘(3) For auctions conducted through calendar 
year 2020 pursuant to subsection (p), the auction 
proceeds shall be deposited into the Treasury. 
‘‘(r) CLIMATE CHANGE CONSUMER REFUND.— 
‘‘(1) For each of vintage years 2026 through 
2050, the Administrator shall auction the following 
allowances established under section 721(a) and de-
posit the proceeds into the Climate Change Con-
sumer Refund Account: 
‘‘(A) Any allowances not allocated for dis-
tribution or auction pursuant to section 781 or 
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