784 
‘‘(e) REGULATIONS.—The Administrator shall issue 
regulations within 24 months after the date of enactment 
of this title to implement this section. 
‘‘SEC. 793. ESTABLISHMENT OF FUNDS. 
‘‘There is hereby established in the Treasury of the 
United States the following separate accounts: 
‘‘(1) The Strategic Reserve Fund. 
‘‘(2) The Climate Change Consumer Refund 
Account. 
‘‘(3) The Climate Change Worker Adjustment 
Assistance Fund. 
‘‘SEC. 794. OVERSIGHT OF ALLOCATIONS. 
‘‘(a) IN GENERAL.—Not later than January 1, 2014, 
and every 2 years thereafter, the Comptroller General of 
the United States shall carry out and report to Congress 
on the results of a review of programs administered by 
the Federal Government that distribute emission allow-
ances or funds from any Federal auction of allowances. 
‘‘(b) CONTENTS.—Each such report shall include a 
comprehensive evaluation of the administration and effec-
tiveness of each program, including— 
‘‘(1) the efficiency, transparency, and sound-
ness of the administration of each program; 
‘‘(2) the performance of activities receiving as-
sistance under each program; 
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‘‘(3) the cost-effectiveness of each program in 
achieving the stated purposes of the program; and 
‘‘(4) recommendations, if any, for legislative, 
regulatory, or administrative changes to each pro-
gram to improve its effectiveness. 
‘‘(c) FOCUS.—In evaluating program performance, 
each review under this section review shall address the ef-
fectiveness of such programs in— 
‘‘(1) creating and preserving jobs; 
‘‘(2) ensuring a manageable transition for 
working families and workers; 
‘‘(3) reducing the emissions, or enhancing se-
questration, of greenhouse gases; 
‘‘(4) developing clean technologies; and 
‘‘(5) building resilience to the impacts of cli-
mate change.’’. 
Subtitle C—Additional Greenhouse 
Gas Standards 
SEC. 331. GREENHOUSE GAS STANDARDS. 
The Clean Air Act (42 U.S.C. 7401 and following), 
as amended by subtitles A and B of this title, is further 
amended by adding the following new title after title VII: 
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‘‘TITLE VIII—ADDITIONAL 
GREENHOUSE GAS STANDARDS 
‘‘SEC. 801. DEFINITIONS. 
‘‘For purposes of this title, terms that are defined 
in title VII, except for the term ‘stationary source’, shall 
have the meaning given those terms in title VII. 
‘‘PART A—STATIONARY SOURCE STANDARDS 
‘‘SEC. 811. STANDARDS OF PERFORMANCE. 
‘‘(a) UNCAPPED STATIONARY SOURCES.— 
‘‘(1) INVENTORY OF SOURCE CATEGORIES.—(A) 
Within 12 months after the date of enactment of 
this title, the Administrator shall publish under sec-
tion 111(b)(1)(A) an inventory of categories of sta-
tionary sources that consist of those categories that 
contain sources that individually had uncapped 
greenhouse gas emissions greater than 10,000 tons 
of carbon dioxide equivalent and that, in the aggre-
gate, were responsible for emitting at least 20 per-
cent annually of the uncapped greenhouse gas emis-
sions. 
‘‘(B) The Administrator shall include in the in-
ventory under this paragraph each source category 
that is responsible for at least 10 percent of the un-
capped methane emissions in 2005. Notwithstanding 
any other provision, the inventory required by this 
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section shall not include sources of enteric fermenta-
tion. The list under this paragraph shall include in-
dustrial sources, the emissions from which, when 
added to the capped emissions from industrial 
sources, constitute at least 95 percent of the green-
house gas emissions of the industrial sector. 
‘‘(C) For purposes of this subsection, emissions 
shall be calculated using tons of carbon dioxide 
equivalents. In promulgating the inventory required 
by this paragraph and the schedule required under 
by paragraph (2)(C), the Administrator shall use the 
most current emissions data available at the time of 
promulgation, except as provided in subparagraph 
(B). 
‘‘(D) Notwithstanding any other provisions, the 
Administrator may list under 111(b) any source cat-
egory identified in the inventory required by this 
subsection without making a finding that the source 
category causes or contributes significantly to, air 
pollution with may be reasonably anticipated to en-
danger public health or welfare. 
‘‘(2) STANDARDS
AND
SCHEDULE.—(A) For 
each category identified as provided in paragraph 
(1), the Administrator shall promulgate standards of 
performance under section 111 for the uncapped 
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emissions of greenhouse gases from stationary 
sources in that category and shall promulgate cor-
responding regulations under section 111(d). 
‘‘(B) The Administrator shall promulgate 
standards as required by this subsection for sta-
tionary sources in categories identified as provided 
in paragraph (1) as expeditiously as practicable, as-
suring that— 
‘‘(i) standards for identified source cat-
egories that, combined, emitted 80 percent or 
more of the greenhouse gas emissions of the 
identified source categories shall be promul-
gated not later than 3 years after the date of 
enactment of this title and shall include stand-
ards for natural gas extraction; and 
‘‘(ii) for all other identified source cat-
egories— 
‘‘(I) standards for not less than an 
additional 25 percent of the identified cat-
egories shall be promulgated not later than 
5 years after the date of enactment of this 
title; 
‘‘(II) standards for not less than an 
additional 25 percent of the identified cat-
egories shall be promulgated not later than 
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7 years after the date of enactment of this 
title; and 
‘‘(III) standards for all the identified 
categories shall be promulgated not later 
than 10 years after the date of enactment 
of this title. 
‘‘(C) Not later than 24 months after the date 
of enactment of this title and after notice and oppor-
tunity for comment, the Administrator shall publish 
a schedule establishing a date for the promulgation 
of standards for each category of sources identified 
pursuant to paragraph (1). The date for each cat-
egory shall be consistent with the requirements of 
subparagraph (B). The determination of priorities 
for the promulgation of standards pursuant to this 
paragraph is not a rulemaking and shall not be sub-
ject to judicial review, except that failure to promul-
gate any standard pursuant to the schedule estab-
lished by this paragraph shall be subject to review 
under section 304(a)(2). 
‘‘(D) Notwithstanding section 307, no action of 
the Administrator listing a source category under 
paragraph (1) shall be a final agency action subject 
to judicial review, except that any such action may 
be reviewed under section 307 when the Adminis-
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trator issues performance standards for such cat-
egory. 
‘‘(b) CAPPED SOURCES.—No standard of perform-
ance shall be established under section 111 for capped 
greenhouse gas emissions from a capped source unless the 
Administrator determines that such standards are appro-
priate because of effects that do not include climate 
change effects. In promulgating a standard of perform-
ance under section 111 for the emission from capped 
sources of any air pollutant that is not a greenhouse gas, 
the Administrator shall treat the emission of any green-
house gas by those entities as a nonair quality public 
health and environmental impact within the meaning of 
section 111(a)(1). 
‘‘(c) PERFORMANCE STANDARDS.—For purposes of 
setting a performance standard for source categories iden-
tified pursuant to subsection (a)— 
‘‘(1) The Administrator shall take into account 
the goal of reducing total United States greenhouse 
gas emissions as set forth in section 702. 
‘‘(2) The Administrator may promulgate a de-
sign, equipment, work practice, or operational stand-
ard, or any combination thereof, under section 111 
in lieu of a standard of performance under that sec-
tion without regard to any determination of feasi-
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bility that would otherwise be required under section 
111(h). 
‘‘(3) Notwithstanding any other provision, in 
setting the level of each standard required by this 
section, the Administrator shall take into account 
projections of allowance prices, such that the mar-
ginal cost of compliance (expressed as dollars per 
ton of carbon dioxide equivalent reduced) imposed by 
the standard would not, in the judgement of the Ad-
ministrator, be expected to exceed the Administra-
tor’s projected allowance prices over the time period 
spanning from the date of initial compliance to the 
date that the next revisions of the standard would 
come into effect pursuant to the schedule under sec-
tion 111(b)(1)(B). 
‘‘(d) DEFINITIONS.—In this section, the terms ‘un-
capped greenhouse gas emissions’ and ‘uncapped methane 
emissions’ mean those greenhouse gas or methane emis-
sions, respectively, to which section 722 would not have 
applied if the requirements of this title had been in effect 
for the same year as the emissions data upon which the 
list is based. 
‘‘(e) STUDY OF THE EFFECTS OF PERFORMANCE 
STANDARDS.— 
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‘‘(1) STUDY.—The Administrator shall conduct 
a study of the impacts of performance standards re-
quired under this section, which shall evaluate the 
effect of such standards on the— 
‘‘(A) costs of achieving compliance with the 
economy-wide reduction goals specified in sec-
tion 702 and the reduction targets specified in 
section 703; 
‘‘(B) available supply of offset credits; and 
‘‘(C) ability to achieve the economy-wide 
reduction goals specified in section 702 and any 
other benefits of such standards. 
‘‘(2) REPORT.—The Administrator shall submit 
to the House Energy and Commerce Committee a 
report that describes the results of the study not 
later than 18 months after the publication of the 
standards required under subsection (a)(2)(B)(i). 
‘‘PART C—EXEMPTIONS FROM OTHER PROGRAMS 
‘‘SEC. 831. CRITERIA POLLUTANTS. 
‘‘As of the date of the enactment of the Safe Climate 
Act, no greenhouse gas may be added to the list under 
section 108(a) on the basis of its effect on global climate 
change. 
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793 
‘‘SEC. 832. INTERNATIONAL AIR POLLUTION. 
‘‘Section 115 shall not apply to an air pollutant with 
respect to that pollutant’s contribution to global warming. 
‘‘SEC. 833. HAZARDOUS AIR POLLUTANTS. 
‘‘No greenhouse gas may be added to the list of haz-
ardous air pollutants under section 112 unless such green-
house gas meets the listing criteria of section 112(b) inde-
pendent of its effects on global climate change. 
‘‘SEC. 834. NEW SOURCE REVIEW. 
‘‘The provisions of part C of title I shall not apply 
to a major emitting facility that is initially permitted or 
modified after January 1, 2009, on the basis of its emis-
sions of any greenhouse gas. 
‘‘SEC. 835. TITLE V PERMITS. 
‘‘Notwithstanding any provision of title III or V, no 
stationary source shall be required to apply for, or operate 
pursuant to, a permit under title V, solely because the 
source emits any greenhouse gases that are regulated sole-
ly because of their effect on global climate change.’’. 
SEC. 332. HFC REGULATION. 
(a) IN GENERAL.—Title VI of the Clean Air Act (42 
U.S.C. 7671 et seq.) (relating to stratospheric ozone pro-
tection) is amended by adding at the end the following: 
‘‘SEC. 619. HYDROFLUOROCARBONS (HFCS). 
‘‘(a) TREATMENT
AS CLASS II, GROUP II SUB-
STANCES.—Except as otherwise provided in this section, 
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hydrofluorocarbons shall be treated as class II substances 
for purposes of applying the provisions of this title. The 
Administrator shall establish two groups of class II sub-
stances. Class II, group I substances shall include all 
hydrochlorofluorocarbons (HCFCs) listed pursuant to sec-
tion 602(b). Class II, group II substances shall include 
each of the following: 
‘‘(1) Hydrofluorocarbon-23 (HFC-23). 
‘‘(2) Hydrofluorocarbon-32 (HFC-32). 
‘‘(3) Hydrofluorocarbon-41 (HFC-41). 
‘‘(4) Hydrofluorocarbon-125 (HFC-125). 
‘‘(5) Hydrofluorocarbon-134 (HFC-134). 
‘‘(6) Hydrofluorocarbon-134a (HFC-134a). 
‘‘(7) Hydrofluorocarbon-143 (HFC-143). 
‘‘(8) Hydrofluorocarbon-143a (HFC-143a). 
‘‘(9) Hydrofluorocarbon-152 (HFC-152). 
‘‘(10) Hydrofluorocarbon-152a (HFC-152a). 
‘‘(11) Hydrofluorocarbon-227ea (HFC-227ea). 
‘‘(12) Hydrofluorocarbon-236cb (HFC-236cb). 
‘‘(13) Hydrofluorocarbon-236ea (HFC-236ea). 
‘‘(14) Hydrofluorocarbon-236fa (HFC-236fa). 
‘‘(15) Hydrofluorocarbon-245ca (HFC-245ca). 
‘‘(16) Hydrofluorocarbon-245fa (HFC-245fa). 
‘‘(17) 
Hydrofluorocarbon-365mfc 
(HFC- 
365mfc). 
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‘‘(18) Hydrofluorocarbon-43-10mee (HFC-43- 
10mee). 
‘‘(19) Hydrofluoroolefin-1234yf (HFO-1234yf). 
‘‘(20) Hydrofluoroolefin-1234ze (HFO-1234ze). 
Not later than 6 months after the date of enactment of 
this title, the Administrator shall publish an initial list of 
class II, group II substances, which shall include the sub-
stances listed in this subsection. The Administrator may 
add to the list of class II, group II substances any other 
substance used as a substitute for a class I or II substance 
if the Administrator determines that 1 metric ton of the 
substance makes the same or greater contribution to glob-
al warming over 100 years as 1 metric ton of carbon diox-
ide. Within 24 months after the date of enactment of this 
section, the Administrator shall amend the regulations 
under this title (including the regulations referred to in 
sections 603, 608, 609, 610, 611, 612, and 613) to apply 
to class II, group II substances. 
‘‘(b) CONSUMPTION AND PRODUCTION OF CLASS II, 
GROUP II SUBSTANCES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) CONSUMPTION PHASE DOWN.—In the 
case of class II, group II substances, in lieu of 
applying section 605 and the regulations there-
under, the Administrator shall promulgate reg-
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ulations phasing down the consumption of class 
II, group II substances in the United States, 
and the importation of products containing any 
class II, group II substance, in accordance with 
this subsection within 18 months after the date 
of enactment of this section. Effective January 
1, 2012, it shall be unlawful for any person to 
produce any class II, group II substance, im-
port any class II, group II substance, or import 
any product containing any class II, group II 
substance without holding one consumption al-
lowance or one destruction offset credit for each 
carbon dioxide equivalent ton of the class II, 
group II substance. Any person who exports a 
class II, group II substance for which a con-
sumption allowance was retired may receive a 
refund of that allowance from the Adminis-
trator following the export. 
‘‘(B) PRODUCTION.—If the United States 
becomes a party or otherwise adheres to a mul-
tilateral agreement, including any amendment 
to the Montreal Protocol on Substances That 
Deplete the Ozone Layer, that restricts the pro-
duction of class II, group II substances, the Ad-
ministrator shall promulgate regulations estab-
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lishing a baseline for the production of class II, 
group II substances in the United States and 
phasing down the production of class II, group 
II substances in the United States, in accord-
ance with such multilateral agreement and sub-
ject to the same exceptions and other provisions 
as are applicable to the phase down of con-
sumption of class II, group II substances under 
this section (except that the Administrator shall 
not require a person who obtains production al-
lowances from the Administrator to make pay-
ment for such allowances if the person is mak-
ing payment for a corresponding quantity of 
consumption allowances of the same vintage 
year). Upon the effective date of such regula-
tions, it shall be unlawful for any person to 
produce any class II, group II substance with-
out holding one consumption allowance and one 
production allowance, or one destruction offset 
credit, for each carbon dioxide equivalent ton of 
the class II, group II substance. 
‘‘(C) INTEGRITY
OF
CAP.—To maintain 
the integrity of the class II, group II cap, the 
Administrator may, through rulemaking, limit 
the percentage of each person’s compliance obli-
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