746 
house gas emissions for which a covered entity 
is demonstrating compliance temporarily, and 
may set a limit on this amount. In the event 
that a covered entity that used term offset cred-
its to demonstrate compliance temporarily fails 
to meet the requirements of subparagraph (D) 
at the end of the term offset credits’ crediting 
term, if the financial assurance mechanism fails 
to provide to the Administrator the number of 
allowances or offset credits for which the cred-
iting term has expired, then the Administrator 
shall retire that number of allowances with the 
vintage year 2 years after the year in which the 
term offset credit expires in the same amount. 
Allowances so retired shall not be counted as 
emission allowances established for that cal-
endar year under section 721(a). 
‘‘(3) 
INTERNATIONAL
EMISSION
ALLOW-
ANCES.—To demonstrate compliance, a covered enti-
ty may hold an international emission allowance in 
lieu of an emission allowance, except as modified 
under section 728(d). 
‘‘(4) COMPENSATORY ALLOWANCES.—To dem-
onstrate compliance, a covered entity may hold a
747 
compensatory allowance obtained under section 
721(f) in lieu of an emission allowance. 
‘‘(e) RETIREMENT OF ALLOWANCES AND CREDITS.— 
As soon as practicable after a deadline established for cov-
ered entities to demonstrate compliance with this title, the 
Administrator shall retire the quantity of allowances or 
credits required to be held under this title. 
‘‘(f) ALTERNATIVE METRICS.—For categories of cov-
ered entities described in subparagraph (B), (C), (D), (G), 
(H), or (I) of section 700(13), the Administrator may, by 
rule, establish an applicability threshold for inclusion 
under those subparagraphs using an alternative metric 
and level, provided that such metric and level are easier 
to administer and cover the same size and type of sources 
as the threshold defined in such subparagraphs. 
‘‘(g) THRESHOLD REVIEW.—For each category of 
covered entities described in subparagraph (B), (C), (D), 
(G), (H), or (I) of section 700(13), the Administrator 
shall, in 2020 and once every 8 years thereafter, review 
the carbon dioxide equivalent emission threshold that is 
used to define covered entities in such category. After con-
sideration of— 
‘‘(1) emissions from covered entities in such 
category, and from other entities of the same type 
that emit less than the threshold amount for the cat-
748 
egory (including emission sources that commence op-
eration after the date of enactment of this title that 
are not covered entities); and 
‘‘(2) whether greater greenhouse gas emission 
reductions can be cost-effectively achieved by low-
ering the applicable threshold, 
the Administrator may by rule lower such threshold to not 
less than 10,000 tons of carbon dioxide equivalent emis-
sions. In determining the cost effectiveness of potential re-
ductions from lowering the threshold for covered entities, 
the Administrator shall consider alternative regulatory 
greenhouse gas programs, including setting standards 
under other titles of this Act. 
‘‘(h) DESIGNATED REPRESENTATIVES.—The regula-
tions promulgated under section 721(h) shall require that 
each covered entity, and each entity holding allowances or 
offset credits or receiving allowances or offset credits from 
the Administrator under this title, submit to the Adminis-
trator a certificate of representation designating a des-
ignated representative. 
‘‘(i) EDUCATION AND OUTREACH.— 
‘‘(1) IN GENERAL.—The Administrator shall es-
tablish and carry out a program of education and 
outreach to assist covered entities, especially entities 
having little experience with environmental regu-
749 
latory requirements similar or comparable to those 
under this title, in preparing to meet the compliance 
obligations of this title. Such program shall include 
education with respect to using markets to effec-
tively achieve such compliance. 
‘‘(2) FAILURE TO RECEIVE INFORMATION.—A 
failure to receive information or assistance under 
this subsection may not be used as a defense against 
an allegation of any violation of this title. 
‘‘(j) ADJUSTMENT
OF DEADLINE.—The Adminis-
trator may, by rule, establish a deadline for demonstrating 
compliance, for a calendar year, later than the date pro-
vided in subsection (a), as necessary to ensure the avail-
ability of emissions data, but in no event shall the deadline 
be later than June 1. 
‘‘(k) NOTICE REQUIREMENT FOR COVERED ENTI-
TIES RECEIVING NATURAL GAS FROM NATURAL GAS 
LOCAL DISTRIBUTION COMPANIES.—The owner or oper-
ator of a covered entity that takes delivery of natural gas 
from a natural gas local distribution company shall, not 
later than September 1 of each calendar year, notify such 
natural gas local distribution company in writing that 
such entity will qualify as a covered entity under this title 
for that calendar year.
750 
‘‘(l) COMPLIANCE OBLIGATION.—For purposes of 
this title, the year of a compliance obligation is the year 
in which compliance is determined, not the year in which 
the greenhouse gas emissions occur or the covered entity 
has attributable greenhouse gas emissions. 
‘‘SEC. 723. PENALTY FOR NONCOMPLIANCE. 
‘‘(a) ENFORCEMENT.—A violation of any prohibition 
of, requirement of, or regulation promulgated pursuant to 
this title shall be a violation of this Act. It shall be a viola-
tion of this Act for a covered entity to emit greenhouse 
gases and have attributable greenhouse gas emissions, in 
combination, in excess of its allowable emissions level as 
provided in section 722(a). Each ton of carbon dioxide 
equivalent for which a covered entity fails to demonstrate 
compliance under section 722 shall be a separate violation. 
In the event that a covered entity fails to demonstrate 
compliance at the expiration of a term offset credit’s cred-
iting term as required by section 722(d)(2)(D), the year 
of the violation shall be the year in which the term offset 
credit expires. 
‘‘(b) EXCESS EMISSIONS PENALTY.— 
‘‘(1) IN GENERAL.—The owner or operator of 
any covered entity that fails for any year to comply, 
on the deadline described in section 722(a), (d)(2), 
or (j), shall be liable for payment to the Adminis-
751 
trator of an excess emissions penalty in the amount 
described in paragraph (2). 
‘‘(2) AMOUNT.—The amount of an excess emis-
sions penalty required to be paid under paragraph 
(1) shall be equal to the product obtained by multi-
plying— 
‘‘(A) the tons of carbon dioxide equivalent 
of greenhouse gas emissions or attributable 
greenhouse gas emissions for which the owner 
or operator of a covered entity failed to dem-
onstrate compliance under section 722 on the 
deadline; by 
‘‘(B) twice the auction clearing price for 
the earliest vintage year emission allowances in 
the last auction carried out pursuant to section 
791 before such deadline. 
‘‘(3) TIMING.—An excess emissions penalty re-
quired under this subsection shall be immediately 
due and payable to the Administrator, without de-
mand, in accordance with regulations promulgated 
by the Administrator, which shall be issued not later 
than 2 years after the date of enactment of this 
title. 
‘‘(4) NO
EFFECT
ON
LIABILITY.—An excess 
emissions penalty due and payable by the owners or
752 
operators of a covered entity under this subsection 
shall not diminish the liability of the owners or oper-
ators for any fine, penalty, or assessment against 
the owners or operators for the same violation under 
any other provision of this Act or any other law. 
‘‘(c) EXCESS EMISSIONS ALLOWANCES.—The owner 
or operator of a covered entity that fails for any year to 
comply on the deadline described in section 722(a), (d)(2), 
or (j) shall be liable to offset the covered entity’s excess 
combination of greenhouse gases emitted and attributable 
greenhouse gas emissions by an equal quantity of emission 
allowances during the following calendar year, or such 
longer period as the Administrator may prescribe. During 
the year in which the covered entity failed to comply, or 
any year thereafter, the Administrator may deduct the 
emission allowances required under this subsection to off-
set the covered entity’s excess greenhouse gas emissions 
or attributable greenhouse gas emissions. 
‘‘SEC. 724. TRADING. 
‘‘(a) PERMITTED TRANSACTIONS.—Except as other-
wise provided in this title, the lawful holder of an emission 
allowance, compensatory allowance, or offset credit may, 
without restriction, sell, exchange, transfer, hold for com-
pliance in accordance with section 722, or request that the
753 
Administrator retire the emission allowance, compensatory 
allowance, or offset credit. 
‘‘(b) NO RESTRICTION
ON TRANSACTIONS.—The 
privilege of purchasing, holding, selling, exchanging, 
transferring, and requesting retirement of emission allow-
ances, compensatory allowances, or offset credits shall not 
be restricted to the owners and operators of covered enti-
ties, except as otherwise provided in this title. 
‘‘(c) EFFECTIVENESS
OF
ALLOWANCE
TRANS-
FERS.—No transfer of an allowance, offset credit, or term 
offset credit shall be effective for purposes of this title 
until a certification of the transfer, signed by the des-
ignated representative of the transferor, is received and 
recorded by the Administrator in accordance with regula-
tions promulgated under section 721(h). 
‘‘(d) ALLOWANCE TRACKING SYSTEM.—The regula-
tions promulgated under section 721(h) shall include a 
system for issuing, recording, holding, and tracking allow-
ances, offset credits, and term offset credits that shall 
specify all necessary procedures and requirements for an 
orderly and competitive functioning of the allowance and 
offset credit markets. Such regulations shall provide for 
appropriate publication of the information in the system 
on the Internet.
755 
‘‘(A) it is retired by the Administrator pur-
suant to this title; or 
‘‘(B) it is determined to expire or to have 
expired by a specific date by the Administrator 
in accordance with regulations promulgated 
under paragraph (1). 
‘‘(3) 
INTERNATIONAL
EMISSION
ALLOW-
ANCES.—The ability to use an international emission 
allowance to comply with section 722 shall not ex-
pire unless— 
‘‘(A) the allowance is retired by the Ad-
ministrator pursuant to this title; or 
‘‘(B) the ability to use such allowance to 
meet such compliance obligation requirements is 
determined to expire or to have expired by a 
specific date by the Administrator in accord-
ance with regulations promulgated under para-
graph (1). 
‘‘(c) BORROWING FUTURE VINTAGE YEAR ALLOW-
ANCES.— 
‘‘(1) BORROWING WITHOUT INTEREST.—In ad-
dition to the uses described in subsection (a), an 
emission allowance may be used to demonstrate com-
pliance under section 722 or comply with section 
723 for emissions, production, importation, manu-
756 
facture, or deliveries in the calendar year imme-
diately preceding the vintage year for the allowance. 
‘‘(2) BORROWING WITH INTEREST.— 
‘‘(A) IN GENERAL.—A covered entity may 
demonstrate compliance under section 722 in a 
specific calendar year for up to 15 percent of 
its emissions by holding emission allowances 
with a vintage year 1 to 5 years later than that 
calendar year. 
‘‘(B) LIMITATIONS.—An emission allow-
ance borrowed pursuant to this paragraph shall 
be an emission allowance that is established by 
the Administrator for a specific future calendar 
year under section 721(a) and that is held by 
the borrower. 
‘‘(C) PREPAYMENT
OF
INTEREST.—For 
each emission allowance that an owner or oper-
ator of a covered entity borrows pursuant to 
this paragraph, such owner or operator shall, at 
the time it borrows the allowance, hold for re-
tirement by the Administrator, and the Admin-
istrator shall retire, a quantity of emission al-
lowances that is equal to the product obtained 
by multiplying— 
‘‘(i) 0.08; by
757 
‘‘(ii) the number of years between the 
calendar year in which the allowance is 
being used to satisfy a compliance obliga-
tion and the vintage year of the allowance. 
‘‘SEC. 726. STRATEGIC RESERVE. 
‘‘(a) STRATEGIC RESERVE AUCTIONS.— 
‘‘(1) IN GENERAL.—Once each quarter of each 
calendar year for which allowances are established 
under section 721(a), the Administrator shall auc-
tion strategic reserve allowances. 
‘‘(2) RESTRICTION TO COVERED ENTITIES.—In 
each auction conducted under paragraph (1), only 
covered entities that the Administrator expects will 
be required to comply with section 722 in the fol-
lowing calendar year shall be eligible to make pur-
chases. 
‘‘(b) POOL OF EMISSION ALLOWANCES FOR STRA-
TEGIC RESERVE AUCTIONS.— 
‘‘(1) FILLING
THE
STRATEGIC
RESERVE
INI-
TIALLY.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall, not later than 2 years after the date of 
enactment of this title, establish a strategic re-
serve account, and shall place in that account 
an amount of emission allowances established
758 
under section 721(a) for each calendar year 
from 2012 through 2050 in the amounts speci-
fied in subparagraph (B) of this paragraph. 
‘‘(B) AMOUNT.—The amount referred to in 
subparagraph (A) shall be— 
‘‘(i) for each of calendar years 2012 
through 2019, 1 percent of the quantity of 
emission allowances established for that 
year pursuant to section 721(e)(1); 
‘‘(ii) for each of calendar years 2020 
through 2029, 2 percent of the quantity of 
emission allowances established for that 
year pursuant to section 721(e)(1); and 
‘‘(iii) for each of calendar years 2030 
through 2050, 3 percent of the quantity of 
emission allowances established for that 
year pursuant to section 721(e)(1). 
‘‘(C) EFFECT
ON
OTHER
PROVISIONS.— 
Any provision in this title (except for subpara-
graph (B) of this paragraph) that refers to a 
quantity or percentage of the emission allow-
ances established for a calendar year under sec-
tion 721(a) shall be considered to refer to the 
amount of emission allowances as determined 
pursuant to section 721(e), less any emission
759 
allowances established for that year that are 
placed in the strategic reserve account under 
this paragraph. 
‘‘(2) SUPPLEMENTING
THE
STRATEGIC
RE-
SERVE.—The Administrator shall also— 
‘‘(A) at the end of each calendar year, 
transfer to the strategic reserve account each 
emission allowance that was offered for sale but 
not sold at any auction conducted under section 
791; and 
‘‘(B) deposit emission allowances estab-
lished under subsection (g) from auction pro-
ceeds into the strategic reserve, to the extent 
necessary to maintain the reserve at its original 
size. 
‘‘(c) MINIMUM
STRATEGIC
RESERVE
AUCTION 
PRICE.— 
‘‘(1) IN GENERAL.—At each strategic reserve 
auction, the Administrator shall offer emission al-
lowances for sale beginning at a minimum price per 
emission allowance, which shall be known as the 
‘minimum strategic reserve auction price’. 
‘‘(2) INITIAL
MINIMUM
STRATEGIC
RESERVE 
AUCTION PRICES.—The minimum strategic reserve 
auction price shall be $28 (in constant 2009 dollars)
760 
for the strategic reserve auctions held in 2012. For 
the strategic reserve auctions held in 2013 and 
2014, the minimum strategic reserve auction price 
shall be the strategic reserve auction price for the 
previous year increased by 5 percent plus the rate of 
inflation (as measured by the Consumer Price Index 
for All Urban Consumers). 
‘‘(3) MINIMUM STRATEGIC RESERVE AUCTION 
PRICE IN SUBSEQUENT YEARS.—For each strategic 
reserve auction held in 2015 and each year there-
after, the minimum strategic reserve auction price 
shall be 60 percent above a rolling 36-month average 
of the daily closing price for that year’s emission al-
lowance vintage as reported on registered carbon 
trading facilities, calculated using constant dollars. 
‘‘(d) QUANTITY
OF EMISSION ALLOWANCES RE-
LEASED FROM THE STRATEGIC RESERVE.— 
‘‘(1) INITIAL
LIMITS.—For each of calendar 
years 2012 through 2016, the annual limit on the 
number of emission allowances from the strategic re-
serve account that may be auctioned is an amount 
equal to 5 percent of the emission allowances estab-
lished for that calendar year under section 721(a). 
This limit does not apply to international offset
761 
credits sold on consignment pursuant to subsection 
(h). 
‘‘(2) LIMITS IN SUBSEQUENT YEARS.—For cal-
endar year 2017 and each year thereafter, the an-
nual limit on the number of emission allowances 
from the strategic reserve account that may be auc-
tioned is an amount equal to 10 percent of the emis-
sion allowances established for that calendar year 
under section 721(a). This limit does not apply to 
international offset credits sold on consignment pur-
suant to subsection (h). 
‘‘(3) ALLOCATION OF LIMITATION.—One-fourth 
of each year’s annual strategic reserve auction limit 
under this subsection shall be made available for 
auction in each quarter. Any allowances from the 
strategic reserve account that are made available for 
sale in a quarterly auction and not sold shall be 
rolled over and added to the quantity available for 
sale in the following quarter, except that allowances 
not sold at auction in the fourth quarter of a year 
shall not be rolled over to the following calendar 
year’s auctions, but shall be returned to the stra-
tegic reserve account. 
‘‘(e) PURCHASE LIMIT.—
762 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) or (3), the annual number of emission al-
lowances that a covered entity may purchase at the 
strategic reserve auctions in each calendar year shall 
not exceed 20 percent of the covered entity’s com-
bined greenhouse gas emissions and attributable 
greenhouse gas emissions during the most recent 
year for which allowances or offset credits were re-
tired under section 722. 
‘‘(2) 2012 LIMIT.—For calendar year 2012, the 
maximum aggregate number of emission allowances 
that a covered entity may purchase from that year’s 
strategic reserve auctions shall be 20 percent of the 
covered entity’s combined greenhouse gas emissions 
and attributable greenhouse gas emissions that the 
covered entity reported to the registry established 
under section 713 for 2011 and that would be sub-
ject to section 722(a) if occurring in later calendar 
years. 
‘‘(3) 
NEW
ENTRANTS.—The 
Administrator 
shall, by regulation, establish a separate purchase 
limit applicable to entities that expect to become a 
covered entity in the year of the auction, permitting 
them to purchase emission allowances at the stra-
tegic reserve auctions in their first calendar year of
763 
operation in an amount of at least 20 percent of 
their expected combined greenhouse gas emissions 
and attributable greenhouse gas emissions for that 
year. 
‘‘(f) DELEGATION OR CONTRACT.—Pursuant to regu-
lations under this section, the Administrator may, by dele-
gation or contract, provide for the conduct of strategic re-
serve auctions under the Administrator’s supervision by 
other departments or agencies of the Federal Government 
or by nongovernmental agencies, groups, or organizations. 
‘‘(g) USE OF AUCTION PROCEEDS.— 
‘‘(1) DEPOSIT IN STRATEGIC RESERVE FUND.— 
The proceeds from strategic reserve auctions shall be 
placed in the Strategic Reserve Fund established 
under section 793(1), and shall be available without 
further appropriation or fiscal year limitation for the 
purposes described in this subsection. 
‘‘(2) INTERNATIONAL OFFSET CREDITS FOR RE-
DUCED DEFORESTATION.—The Administrator shall 
use the proceeds from each strategic reserve auction 
to purchase international offset credits issued for re-
duced deforestation activities pursuant to section 
743(e). The Administrator shall retire those inter-
national offset credits and establish a number of 
emission allowances equal to 80 percent of the num-
764 
ber of international offset credits so retired. Emis-
sion allowances established under this paragraph 
shall be in addition to those established under sec-
tion 721(a). 
‘‘(3) EMISSION
ALLOWANCES.—The Adminis-
trator shall deposit emission allowances established 
under paragraph (2) in the strategic reserve, except 
that, with respect to any such emission allowances in 
excess of the amount necessary to fill the strategic 
reserve to its original size, the Administrator shall— 
‘‘(A) except as provided in subparagraph 
(B), assign a vintage year to the emission al-
lowance, which shall be no earlier than the year 
in which the allowance is established under 
paragraph (2), and shall treat such allowances 
as ones that are not designated for distribution 
or auction for purposes of section 782(q) and 
(r); and 
‘‘(B) to the extent any such allowances 
cannot be assigned a vintage year because of 
the limitation in paragraph (4), retire the allow-
ances. 
‘‘(4) LIMITATION.—In no case may the Admin-
istrator assign under paragraph (3)(A) more emis-
sion allowances to a vintage year than the number
765 
of emission allowances from that vintage year that 
were placed in the strategic reserve account under 
subsection (b)(1). 
‘‘(h) AVAILABILITY
OF
INTERNATIONAL
OFFSET 
CREDITS FOR AUCTION.— 
‘‘(1) IN
GENERAL.—The regulations promul-
gated under section 721(h) shall allow any entity 
holding international offset credits from reduced de-
forestation issued under section 743(e) to request 
that the Administrator include such offset credits in 
an upcoming strategic reserve auction. The regula-
tions shall provide that— 
‘‘(A) such international offset credits will 
be used to fill bid orders only after the supply 
of strategic reserve allowances available for sale 
at that auction has been depleted; 
‘‘(B) international offset credits may be 
sold at a strategic reserve auction under this 
subsection only if the Administrator determines 
that it is highly likely that covered entities will, 
to cover emissions occurring in the year the 
auction is held, use offset credits to dem-
onstrate compliance under section 722 for emis-
sions equal to or greater than 80 percent of 2 
billion tons of carbon dioxide equivalent;
1146 
(2) VERIFICATION OF INFORMATION.—The Sec-
retary shall require an employer, union, or one-stop 
operator or partner to certify all information ob-
tained under paragraph (1) from the employer, 
union, or one-stop operator or partner (as the case 
may be) on which the Secretary relies in making a 
determination under subsection (d), unless the Sec-
retary has a reasonable basis for determining that 
such information is accurate and complete without 
being certified. 
(3) PROTECTION OF CONFIDENTIAL INFORMA-
TION.—The Secretary may not release information 
obtained under paragraph (1) that the Secretary 
considers to be confidential business information un-
less the employer submitting the confidential busi-
ness information had notice, at the time of submis-
sion, that the information would be released by the 
Secretary, or the employer subsequently consents to 
the release of the information. Nothing in this para-
graph shall be construed to prohibit the Secretary 
from providing such confidential business informa-
tion to a court in camera or to another party under 
a protective order issued by a court. 
(d) DETERMINATION
BY
THE
SECRETARY
OF 
LABOR.—
1160 
period in which the individual is receiving a cli-
mate change adjustment allowance or training 
under this part, and after receiving such train-
ing for purposes of job placement. 
(H) Provision of employment statistics in-
formation, including the provision of accurate 
information relating to local, regional, and na-
tional labor market areas, including— 
(i) job vacancy listings in such labor 
market areas; 
(ii) information on jobs skills nec-
essary to obtain jobs identified in job va-
cancy listings described in subparagraph 
(A); 
(iii) information relating to local occu-
pations that are in demand and earnings 
potential of such occupations; and 
(iv) skills requirements for local occu-
pations described in subparagraph (C). 
(I) Information relating to the availability 
of supportive services, including services relat-
ing to child care, transportation, dependent 
care, housing assistance, and need-related pay-
ments that are necessary to enable an indi-
vidual to participate in training.
1266 
(x) an identification of the activities 
that may be undertaken in cooperation 
with international partners; 
(xi) the mechanisms established to 
provide quality assurance and quality con-
trol of climate service products and serv-
ices, and the agency or agencies designated 
to conduct and oversee these mechanisms; 
(xii) an identification of non-Federal 
entities that provide climate products and 
services, and a description of the relation-
ship envisioned between a National Climate 
Service and the non-Federal entities pro-
viding climate services; and 
(xiii) responses to the comments re-
ceived during the public comment period. 
(B) DRAFT REPORT.—Prior to the submis-
sion of the final report, the Director of the Of-
fice of Science and Technology Policy shall pub-
lish a draft report in the Federal Register with 
a comment period of at least 30 days. 
(C) CONSULTATION.—In developing the re-
port, the Director of the Office of Science and 
Technology Policy shall consult with State, 
local, and tribal governments, regional entities,
1284 
(3) CONSULTATION.—The Under Secretary 
shall consult with the Climate Service Advisory Com-
mittee in the preparation of this report. 
(j) IMPLEMENTATION PLAN.— 
(1) IN GENERAL.—The Under Secretary shall 
prepare a plan for creating a Climate Service Pro-
gram in the National Oceanic and Atmospheric Ad-
ministration and delivering climate products and 
services to the National Oceanic and Atmospheric 
Administration users and stakeholders. The plan 
shall be submitted to the President and the Con-
gress within 1 year after the date of enactment of 
this Act. 
(2) DRAFT PLAN.—Prior to the submission of 
the final plan, the Under Secretary shall publish a 
draft plan in the Federal Register with a public 
comment period of at least 30 days. 
(3) CONTENTS.—The plan shall— 
(A) identify the current gaps in climate 
services and outline the process and resources 
the National Oceanic and Atmospheric Admin-
istration will use to fill these gaps; 
(B) describe the roles of the National Oce-
anic and Atmospheric Administration line of-
fices and the National Oceanic and Atmospheric
1285 
Administration partner organizations in the de-
velopment and delivery of climate products and 
services; 
(C) describe the development and imple-
mentation of quality assurance and control 
mechanisms for climate products and services 
delivered by the National Oceanic and Atmos-
pheric Administration and its partner organiza-
tions; 
(D) identify the mechanisms and opportu-
nities for determining user needs and engaging 
in a two-way dialogue with users that will in-
form climate product and service development 
and delivery of authoritative, timely, and useful 
information on climate variability and change 
and the effects on local, State, regional, na-
tional, and global scales; 
(E) identify new responsibilities or tasks to 
be undertaken by existing National Oceanic and 
Atmospheric Administration line offices and 
partner organizations; 
(F) identify new infrastructure, equipment, 
personnel, or other resources needed to imple-
ment the proposed plan; and
1292 
(1) IN GENERAL.—Not later than September 
30 of each of calendar years 2011 through 2049, the 
Administrator shall distribute, in accordance with 
this section, allowances allocated for the following 
vintage year pursuant to section 782(l) of the Clean 
Air Act (as added by section 321 of this Act). The 
Administrator shall reserve 1 percent of such allow-
ances for distribution to Indian tribes in accordance 
with subsection (d). The remainder of such allow-
ances shall be distributed ratably among the States 
based on the product of— 
(A) each State’s population; and 
(B) each State’s allocation factor as deter-
mined under paragraph (2). 
(2) STATE ALLOCATION FACTORS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the allocation factor for a 
State shall be the quotient of— 
(i) the per capita income of all indi-
viduals in the United States, divided by 
(ii) the per capita income of all indi-
viduals in such State. 
(B) LIMITATION.—If the allocation factor 
for a State as calculated under subparagraph 
(A) would exceed 1.2, then the allocation factor
1323 
tribal, and local level related to the impacts of cli-
mate change and ocean acidification on natural re-
sources, as well as identification of research and 
data needs and priorities; 
(3) identification of natural resources that are 
likely to have the greatest need for protection, res-
toration, and conservation because of the adverse ef-
fects of climate change and ocean acidification; 
(4) specific protocols for integrating climate 
change and ocean acidification adaptation strategies 
and activities into the conservation and management 
of natural resources by Federal departments and 
agencies to ensure consistency across agency juris-
dictions and resources; 
(5) specific actions that Federal departments 
and agencies shall take to protect, conserve, and re-
store natural resources to become more resilient, 
adapt to, and withstand the impacts of climate 
change and ocean acidification, including a timeline 
to implement those actions; 
(6) specific mechanisms for ensuring commu-
nication and coordination among Federal depart-
ments and agencies, and between Federal depart-
ments and agencies and State natural resource agen-
cies, United States territories, Indian tribes, private
1338 
conservation actions for fish, wildlife, and plant 
populations, habitats, ecosystems, and associ-
ated ecological processes; 
(E) establishes methods for assessing the 
effectiveness of strategies and conservation ac-
tions taken to assist fish, wildlife, and plant 
populations, habitats, ecosystems, and associ-
ated ecological processes in becoming more re-
silient, adapt to, and better withstand the im-
pacts of climate changes and ocean acidification 
and for updating those strategies and actions to 
respond appropriately to new information or 
changing conditions; 
(F) is incorporated into a revision of the 
State wildlife action plan (also known as the 
State comprehensive wildlife strategy)— 
(i) that has been submitted to the 
United States Fish and Wildlife Service; 
and 
(ii) that has been approved by the 
Service or on which a decision on approval 
is pending; and 
(G) is developed— 
(i) with the participation of the State 
fish and wildlife agency, the State coastal