254 
authorized for an employee of an agency under 
subchapter I of chapter 57 of title 5, United 
States Code, while away from the home or reg-
ular place of business of the member in the per-
formance of the duties of the Panel. 
‘‘(4) STAFF.— 
‘‘(A) IN
GENERAL.—The Chairperson of 
the Panel may, without regard to the civil serv-
ice laws (including regulations), appoint and 
terminate an executive director and such other 
additional personnel as are necessary to enable 
the Panel to perform the duties of the Panel. 
‘‘(B) CONFIRMATION
OF
EXECUTIVE
DI-
RECTOR.—The employment of an executive di-
rector shall be subject to confirmation by the 
Panel. 
‘‘(C) COMPENSATION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the Chairperson of the 
Panel may fix the compensation of the ex-
ecutive director and other personnel with-
out regard to the provisions of chapter 51 
and subchapter III of chapter 53 of title 5, 
United States Code, relating to classifica-
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00254
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
255 
tion of positions and General Schedule pay 
rates. 
‘‘(ii) EXCEPTION.—The rate of pay 
for the executive director and other per-
sonnel shall not exceed the rate payable for 
level V of the Executive Schedule under 
section 5316 of title 5, United States 
Code. 
‘‘(D) DETAIL OF FEDERAL GOVERNMENT 
EMPLOYEES.— 
‘‘(i) IN
GENERAL.—An employee of 
the Federal Government may be detailed to 
the staff of the Panel without reimburse-
ment. 
‘‘(ii) TREATMENT
OF
DETAILEES.— 
The detail of the employee shall be without 
interruption or loss of civil service status 
or privilege. 
‘‘(E) PROCUREMENT OF TEMPORARY AND 
INTERMITTENT SERVICES.—The Chairperson or 
executive director of the Panel may procure 
temporary and intermittent services in accord-
ance with section 3109(b) of title 5, United 
States Code, at rates for individuals that do not 
exceed the daily equivalent of the annual rate of 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00255
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
256 
basic pay prescribed for level V of the Executive 
Schedule under section 5316 of that title. 
‘‘(5) HEARINGS.—The Panel may hold such 
hearings, meet and act at such times and places, 
take such testimony, and receive such evidence as 
the Panel considers advisable to carry out this sec-
tion. 
‘‘(6) INFORMATION
FROM
FEDERAL
AGEN-
CIES.— 
‘‘(A) IN GENERAL.—The Panel may secure 
directly from a Federal agency such informa-
tion as the Panel considers necessary to carry 
out this section. 
‘‘(B) PROVISION
OF
INFORMATION.—On 
request of the Chairperson of the Panel, the 
head of the agency shall provide the informa-
tion to the Panel. 
‘‘(7) POSTAL SERVICES.—The Panel may use 
the United States mail in the same manner and 
under the same conditions as other agencies of the 
Federal Government. 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00256
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
257 
‘‘SEC. 813. REQUIRED REVIEW OF EMISSION REDUCTIONS 
NEEDED TO MAINTAIN THE SAFE CLIMATE 
LEVEL. 
‘‘(a) REVIEW AND DETERMINATION REGARDING RE-
DUCTION RATE.—Not later than December 31, 2015, the 
Administrator, after providing public notice and oppor-
tunity to comment, shall promulgate a final rule pursuant 
to which the Administrator shall review the reduction rate 
for greenhouse gas emissions required under section 811 
and determine— 
‘‘(1) whether to— 
‘‘(A) accept the recommendations of the 
Panel under section 812(b)(2) regarding the 
safe climate level and the timeframe for achiev-
ing the safe climate level; 
‘‘(B) establish a more stringent safe cli-
mate level or timeframe, together with a de-
tailed explanation of the justification of the Ad-
ministrator for rejection of the recommenda-
tions of the Panel. 
‘‘(b) MODIFICATION OF REDUCTION RATE.— 
‘‘(1) IN GENERAL.—If the Administrator makes 
a determination described in subparagraph (A) or 
(B) of subsection (a)(1),the final rule promulgated 
pursuant to subsection (a) shall establish a required 
level of emissions reductions for each calendar year, 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00257
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
258 
beginning with calendar year 2020, based on the 
considerations described in paragraph (2). 
‘‘(2) CONSIDERATIONS.— 
‘‘(A) PRIMARY CONSIDERATION.—In estab-
lishing the required level of emission reductions 
pursuant to paragraph (1), the Administrator 
shall take into consideration primarily the emis-
sion reductions necessary to stabilize atmos-
pheric greenhouse gas concentrations at the 
safe climate level within the timeframe specified 
under section 812(b)(2)(B). 
‘‘(B) SECONDARY
CONSIDERATIONS.—In 
establishing the required level of emission re-
ductions pursuant to paragraph (1), in addition 
to the primary consideration described in para-
graph (2), the Administrator shall take into 
consideration— 
‘‘(i) technological capability to reduce 
greenhouse gas emissions; 
‘‘(ii) the progress that foreign coun-
tries have made toward reducing their 
greenhouse gas emissions; 
‘‘(iii) the economic impacts within the 
United States of implementing this sub-
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00258
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
259 
title, including impacts on the major emit-
ting sectors; and 
‘‘(iv) the economic impacts within the 
United States of inadequate action. 
‘‘(c) ENFORCEMENT PROVISION.— 
‘‘(1) IN GENERAL.—If the Administrator fails 
to meet a deadline for promulgation of any regula-
tion under subsection (a), the Administrator shall 
withhold from allocation to covered entities that 
would otherwise be entitled to an allocation of allow-
ances under this subtitle a total of 10 percent of the 
allowances for each covered entity for each year 
after the deadline until the Administrator promul-
gates the applicable regulation. 
‘‘(2) RETURN OF ALLOWANCES.—On promulga-
tion of a delayed regulation described in paragraph 
(1), the Administrator shall distribute any allow-
ances withheld under that paragraph— 
‘‘(A) among the covered entities from 
which the allowances were withheld; and 
‘‘(B) in accordance with section 816. 
‘‘(d) SUBSEQUENT RULEMAKINGS.— 
‘‘(1) IN GENERAL.—Not later than December 
31, 2019, and every 4 years thereafter, the Adminis-
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00259
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
260 
trator shall promulgate a new final rule described in 
subsection (a) in accordance with this section. 
‘‘(2) EFFECTIVE
DATE.—If a new final rule 
promulgated pursuant to paragraph (1) changes a 
level of emission reductions required under the pre-
ceding final rule, the effective date of the new final 
rule shall be January 1 of the calendar year that is 
5 years after the deadline for promulgation of the 
new final rule under paragraph (1). 
‘‘SEC. 814. DISTRIBUTION OF ALLOWANCES BETWEEN AUC-
TIONS AND ALLOCATIONS; NATURE OF AL-
LOWANCES. 
‘‘(a) DISTRIBUTION
OF
ALLOWANCES
BETWEEN 
AUCTIONS AND ALLOCATIONS.— 
‘‘(1) IN GENERAL.—For each calendar year, the 
total quantity of allowances to be auctioned and allo-
cated under this subtitle shall be equal to the annual 
tonnage limitation for emissions of greenhouse gases 
from covered entities specified in section 811 for the 
calendar year. 
‘‘(2) DISTRIBUTION.—The proportion of allow-
ances to be auctioned pursuant to section 815 and 
allocated pursuant to section 816 for each calendar 
year beginning in calendar year 2010 shall be as fol-
lows: 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00260
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
261 
‘‘Percentages of Allowances to Be Auctioned and Allocated 
Calendar year 
Percentage to be 
auctioned 
Percentage to be al-
located 
2010 
2011 
2012 
2013 
2014 
2015 
2016 
2017 
2018 
2019 
2020 
2021 
2022 
2023 
2024 
2025 
2026 
100 
‘‘(b) NATURE OF ALLOWANCES.—An allowance— 
‘‘(1) shall not be considered to be a property 
right; and 
‘‘(2) may be terminated or limited by the Ad-
ministrator. 
‘‘(c) NO JUDICIAL REVIEW.—An auction or alloca-
tion of an allowance by the Administrator shall not be sub-
ject to judicial review. 
‘‘SEC. 815. AUCTION OF ALLOWANCES. 
‘‘(a) IN GENERAL.—Not later than 2 years after the 
date of enactment of this title, the Administrator shall 
promulgate regulations establishing a procedure for the 
auction of the quantity of allowances specified in section 
814(a) for each calendar year. 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00261
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
262 
‘‘(b) DEPOSIT OF PROCEEDS.—The Administrator 
shall deposit all proceeds from auctions conducted under 
this section in the General Fund of the United States 
Treasury. 
‘‘SEC. 816. ALLOCATION OF ALLOWANCES. 
‘‘(a) ALLOCATIONS
TO COVERED ENTITIES
AND 
OTHER ELIGIBLE ENTITIES.—Beginning with calendar 
year 2010, the Administrator shall, by regulation, estab-
lish a process for the allocation of free tradeable allow-
ances under this section that will— 
‘‘(1) provide equitable compensation for covered 
entities subject to unrecoverable costs resulting from 
the regulations promulgated under this title; 
‘‘(2) avoid overcompensating covered entities; 
‘‘(3) minimize the costs to the government of 
allocating tradeable allowances; 
‘‘(4) provide incentives for the deployment of 
new low and zero carbon energy technologies and en-
ergy efficiency upgrades at covered entities; 
‘‘(5) give credit to covered entities for emissions 
reductions made before 2010 and registered with the 
National Registry established in subtitle C; 
‘‘(6) recognize the investments that covered en-
tities and their customers have made to reduce their 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00262
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
263 
energy use and greenhouse gas emissions prior to 
enactment of this title; and 
‘‘(7) maintain the international competitiveness 
of United States manufacturing and avoid the addi-
tional loss of United States manufacturing jobs. 
‘‘(b) ALLOCATIONS TO NEW COVERED ENTITIES AND 
NEW ELIGIBLE ENTITIES.— 
‘‘(1) ESTABLISHMENT.—For each calendar 
year, the Administrator, in consultation with the 
Secretary of Energy the Secretary of Commerce, and 
with consideration to the allocation factors listed in 
subsection (a) shall promulgate regulations estab-
lishing— 
‘‘(A) a reserve of allowances to be allocated 
among new covered entities and new eligible en-
tities for the calendar year; and 
‘‘(B) the methodology for allocating those 
allowances among new covered entities and new 
eligible entities. 
‘‘(2) LIMITATION.—The number of allowances 
allocated under paragraph (1) during a calendar 
year shall be not more than 3 percent of the total 
number of allowances allocated among entities for 
the calendar year. 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00263
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
264 
‘‘(3) UNUSED
ALLOWANCES.—For each cal-
endar year, the Administrator shall reallocate to 
each entity any unused allowances from the new en-
tity reserve established under paragraph (1) in the 
proportion that— 
‘‘(A) the number of allowances allocated to 
each entity for the calendar year; bears to 
‘‘(B) the number of allowances allocated to 
all entities for the calendar year. 
‘‘(c) TOTAL QUANTITY OF ALLOWANCES TO BE AL-
LOCATED.—For each calendar year, the quantity of allow-
ances allocated under subsection (a) shall be equal to the 
difference between subparagraphs (1) and (2)— 
‘‘(1) the allocation percentage in section 814 of 
the annual limitation for emissions of greenhouse 
gases from covered entities specified in section 811 
for the calendar year, as modified, if applicable, 
under section 813; and 
‘‘(2) the quantity of allowances reserved for 
new covered entities under subsection (b) for the cal-
endar year. 
‘‘(d) COAL-FIRED COVERED ENTITIES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this subtitle, no allowance shall be allo-
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00264
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
265 
cated under this subtitle to a coal-fired covered enti-
ty unless the covered entity— 
‘‘(A) is powered by qualifying advanced 
clean coal technology, as defined pursuant to 
paragraph (2); or 
‘‘(B) entered operation before January 1, 
2007. 
‘‘(2) DEFINITION
OF
QUALIFYING
ADVANCED 
CLEAN COAL TECHNOLOGY.— 
‘‘(A) IN
GENERAL.—Not later than 18 
months after the date of enactment of this title, 
the Administrator, by regulation, shall define 
the term ‘qualifying advanced clean coal tech-
nology’ with respect to electric power genera-
tion. 
‘‘(B) REQUIREMENT.—In promulgating a 
definition pursuant to subparagraph (A), the 
Administrator shall ensure that the term ‘quali-
fying advanced clean coal technology’ reflects 
advances in available technology, taking into 
consideration— 
‘‘(i) net thermal efficiency; 
‘‘(ii) measures to capture and seques-
ter carbon dioxide; and 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00265
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
266 
‘‘(iii) output-based emission rates 
for— 
‘‘(I) carbon dioxide; 
‘‘(II) sulfur dioxide; 
‘‘(III) oxides of nitrogen; 
‘‘(IV) filterable and condensable 
particulate matter; and 
‘‘(V) mercury. 
‘‘(C) REVIEW AND REVISION.— 
‘‘(i) IN
GENERAL.—Not later than 
July 1, 2009, and each July 1 of every sec-
ond year thereafter, the Administrator 
shall review and, if appropriate, revise the 
definition under subparagraph (A) based 
on technological advances during the pre-
ceding 2 calendar years. 
‘‘(ii) NOTICE
AND
COMMENT
RE-
QUIRED.—Subject to clause (iii), after the 
initial definition is established under sub-
paragraph (A), no subsequent review or re-
vision under this subparagraph shall be 
subject to the notice and comment provi-
sions of section 307 of this Act or of sec-
tion 553 of title 5, United States Code. 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00266
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS
267 
‘‘(iii) EFFECT.—Nothing in clause (ii) 
precludes the application of the notice and 
comment provisions of section 307 of this 
Act or of section 553 of title 5, United 
States Code, as the Administrator deter-
mines to be practicable. 
‘‘SEC. 817. ADAPTATION ASSISTANCE. 
‘‘(a) ADAPTATION ASSISTANCE FOR WORKERS AND 
COMMUNITIES
NEGATIVELY
AFFECTED
BY
CLIMATE 
CHANGE
AND GREENHOUSE GAS REGULATION.—For 
each calendar year the Administrator shall, in consultation 
with the Secretary of labor and the Secretary of com-
merce, provide adaptation assistance for workers and com-
munities— 
‘‘(1) to address local or regional impacts of cli-
mate change and the impacts, if any, from green-
house gas regulation, including by providing assist-
ance to displaced workers and disproportionately af-
fected communities; and 
‘‘(2) to mitigate impacts of climate change and 
the impacts, in any, from greenhouse gas regulation 
on low-income energy consumers. 
‘‘(b) ADAPTATION ASSISTANCE FOR FISH AND WILD-
LIFE HABITAT.—For each calendar year, the Adminis-
trator shall, in consultation with the United States Fish 
VerDate Aug 31 2005 
18:39 Jun 27, 2007
Jkt 059200
PO 00000
Frm 00267
Fmt 6652
Sfmt 6201
E:\BILLS\H2809.IH
H2809
rwilkins on PROD1PC63 with BILLS