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updated version of the list published under para-
graph (1). 
‘‘(b) ELIGIBLE INDUSTRIAL SECTORS.— 
‘‘(1) IN GENERAL.—Not later than June 30, 
2011, the Administrator shall promulgate a rule des-
ignating, based on the criteria under paragraph (2), 
the industrial sectors eligible for emission allowance 
rebates under this subpart. 
‘‘(2) PRESUMPTIVELY
ELIGIBLE
INDUSTRIAL 
SECTORS.— 
‘‘(A) ELIGIBILITY CRITERIA.— 
‘‘(i) IN GENERAL.—An owner or oper-
ator of an entity shall be eligible to receive 
emission allowance rebates under this sub-
part if such entity is in an industrial sector 
that is included in a six-digit classification 
of the NAICS that meets the criteria in 
both clauses (ii) and (iii), or the criteria in 
clause (iv). 
‘‘(ii) ENERGY OR GREENHOUSE GAS 
INTENSITY.—As determined by the Admin-
istrator, the industrial sector had— 
‘‘(I) an energy intensity of at 
least 5 percent, calculated by dividing 
the cost of purchased electricity and 
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fuel costs of the sector by the value of 
the shipments of the sector, based on 
data described in subparagraph (D); 
or 
‘‘(II) a greenhouse gas intensity 
of at least 5 percent, calculated by di-
viding— 
‘‘(aa) the number 20 multi-
plied by the number of tons of 
carbon dioxide equivalent green-
house gas emissions (including 
direct emissions from fuel com-
bustion, process emissions, and 
indirect emissions from the gen-
eration of electricity used to 
produce the output of the sector) 
of the sector based on data de-
scribed in subparagraph (D); by 
‘‘(bb) the value of the ship-
ments of the sector, based on 
data described in subparagraph 
(D). 
‘‘(iii) TRADE
INTENSITY.—As deter-
mined by the Administrator, the industrial 
sector had a trade intensity of at least 15 
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percent, calculated by dividing the value of 
the total imports and exports of such sec-
tor by the value of the shipments plus the 
value of imports of such sector, based on 
data described in subparagraph (D). 
‘‘(iv) VERY HIGH ENERGY OR GREEN-
HOUSE GAS INTENSITY.—As determined by 
the Administrator, the industrial sector 
had an energy or greenhouse gas intensity, 
as calculated under clause (ii)(I) or (II), of 
at least 20 percent. 
‘‘(B) METAL
AND
PHOSPHATE
PRODUC-
TION
CLASSIFIED
UNDER
MORE
THAN
ONE 
NAICS CODE.—For purposes of this section, the 
Administrator shall— 
‘‘(i) 
aggregate 
data 
for 
the 
beneficiation or other processing (including 
agglomeration) of metal ores, including 
iron and copper ores, soda ash, or phos-
phate with subsequent steps in the process 
of metal and phosphate manufacturing, re-
gardless of the NAICS code under which 
such activity is classified; and 
‘‘(ii) aggregate data for the manufac-
turing of steel with the manufacturing of 
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steel pipe and tube made from purchased 
steel in a nonintegrated process. 
‘‘(C) EXCLUSION.—The petroleum refining 
sector shall not be an eligible industrial sector. 
‘‘(D) DATA SOURCES.— 
‘‘(i) ELECTRICITY AND FUEL COSTS, 
VALUE
OF
SHIPMENTS.—The Adminis-
trator shall determine electricity and fuel 
costs and the value of shipments under 
this subsection from data from the United 
States Census Annual Survey of Manufac-
turers. The Administrator shall take the 
average of data from as many of the years 
of 2004, 2005, and 2006 for which such 
data are available. If such data are un-
available, the Administrator shall make a 
determination based upon 2002 or 2006 
data from the most detailed industrial clas-
sification level of Energy Information 
Agency’s Manufacturing Energy Consump-
tion Survey (using 2006 data if it is avail-
able) and the 2002 or 2007 Economic Cen-
sus of the United States (using 2007 data 
if it is available). If data from the Manu-
facturing Energy Consumption Survey or 
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Economic Census are unavailable for any 
sector at the six-digit classification level in 
the NAICS, then the Administrator may 
extrapolate the information necessary to 
determine the eligibility of a sector under 
this paragraph from available Manufac-
turing Energy Consumption Survey or 
Economic Census data pertaining to a 
broader industrial category classified in the 
NAICS. 
If 
data 
relating 
to 
the 
beneficiation or other processing (including 
agglomeration) of metal ores, including 
iron and copper ores, soda ash, or phos-
phate are not available from the specified 
data sources, the Administrator shall use 
the best available Federal or State govern-
ment data and may use, to the extent nec-
essary, representative data submitted by 
entities that perform such beneficiation or 
other processing (including agglomeration), 
in making a determination. Fuel cost data 
shall not include the cost of fuel used as 
feedstock by an industrial sector. 
‘‘(ii) IMPORTS
AND
EXPORTS.—The 
Administrator shall base the value of im-
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ports and exports under this subsection on 
United States International Trade Com-
mission data. The Administrator shall take 
the average of data from as many of the 
years of 2004, 2005, and 2006 for which 
such data are available. If data from the 
United States International Trade Com-
mission are unavailable for any sector at 
the six-digit classification level in the 
NAICS, then the Administrator may ex-
trapolate the information necessary to de-
termine the eligibility of a sector under 
this paragraph from available United 
States International Trade Commission 
data pertaining to a broader industrial cat-
egory classified in the NAICS. 
‘‘(iii) PERCENTAGES.—The Adminis-
trator shall round the energy intensity, 
greenhouse gas intensity, and trade inten-
sity percentages under subparagraph (A) 
to the nearest whole number. 
‘‘(iv) GREENHOUSE
GAS
EMISSION 
CALCULATIONS.—When 
calculating 
the 
tons of carbon dioxide equivalent green-
house gas emissions for each sector under 
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subparagraph (A)(ii)(II)(aa), the Adminis-
trator— 
‘‘(I) shall use the best available 
data from as many of the years 2004, 
2005, and 2006 for which such data 
is available; and 
‘‘(II) may, to the extent nec-
essary with respect to a sector, use 
economic and engineering models and 
the best available information on tech-
nology performance levels for such 
sector. 
‘‘(3) ADMINISTRATIVE DETERMINATION OF AD-
DITIONAL ELIGIBLE INDUSTRIAL SECTORS.— 
‘‘(A) UPDATED TRADE INTENSITY DATA.— 
The Administrator shall designate as eligible to 
receive emission allowance rebates under this 
subpart an industrial sector that— 
‘‘(i) met the energy or greenhouse gas 
intensity criteria in paragraph (2)(A)(ii) as 
of the date of promulgation of the rule 
under paragraph (1); and 
‘‘(ii) meets the trade intensity criteria 
in paragraph (2)(A)(iii), using data from 
any year after 2006. 
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‘‘(B) INDIVIDUAL SHOWING PETITION.— 
‘‘(i) PETITION.—In addition to des-
ignation under paragraph (2) or subpara-
graph (A) of this paragraph, the owner or 
operator of an entity in an industrial sec-
tor may petition the Administrator to des-
ignate as eligible industrial sectors under 
this subpart an entity or a group of enti-
ties that— 
‘‘(I) represent a subsector of a 
six-digit section of the NAICS code; 
and 
‘‘(II) meet the eligibility criteria 
in both clauses (ii) and (iii) of para-
graph (2)(A), or the eligibility criteria 
in clause (iv) of paragraph (2)(A). 
‘‘(ii) DATA.—In making a determina-
tion under this subparagraph, the Admin-
istrator shall consider data submitted by 
the petitioner that is specific to the entity, 
data solicited by the Administrator from 
other entities in the subsector, if such 
other entities exist, and data specified in 
paragraph (2)(D). 
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‘‘(iii) BASIS
OF
SUBSECTOR
DETER-
MINATION.—The Administrator shall de-
termine an entity or group of entities to be 
a subsector of a six-digit section of the 
NAICS code based only upon the products 
manufactured and not the industrial proc-
ess by which the products are manufac-
tured, except that the Administrator may 
determine an entity or group of entities 
that manufacture a product from primarily 
virgin material to be a separate subsector 
from another entity or group of entities 
that manufacture the same product pri-
marily from recycled material. 
‘‘(iv) USE OF MOST RECENT DATA.— 
In determining whether to designate a sec-
tor or subsector as an eligible industrial 
sector under this subparagraph, the Ad-
ministrator shall use the most recent data 
available from the sources described in 
paragraph (2)(D), rather than the data 
from the years specified in paragraph 
(2)(D), to determine the trade intensity of 
such sector or subsector, but only for de-
termining such trade intensity. 
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‘‘(v) FINAL
ACTION.—The Adminis-
trator shall take final action on such peti-
tion no later than 6 months after the peti-
tion is received by the Administrator. 
‘‘SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE RE-
BATES. 
‘‘(a) DISTRIBUTION SCHEDULE.— 
‘‘(1) IN GENERAL.—For each vintage year, the 
Administrator shall distribute pursuant to this sec-
tion emission allowances made available under sec-
tion 782(e), no later than October 31 of the pre-
ceding calendar year. The Administrator shall make 
such annual distributions to the owners and opera-
tors of each entity in an eligible industrial sector in 
the amount of emission allowances calculated under 
subsection (b), except that— 
‘‘(A) for vintage years 2012 and 2013, the 
distribution for a covered entity shall be pursu-
ant to the entity’s indirect carbon factor as cal-
culated under subsection (b)(3); 
‘‘(B) for vintage year 2026 and thereafter, 
the distribution shall be pursuant to the 
amount calculated under subsection (b) multi-
plied by, except as modified by the President 
pursuant to section 767(d)(1)(C) for a sector— 
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‘‘(i) 90 percent for vintage year 2026; 
‘‘(ii) 80 percent for vintage year 
2027; 
‘‘(iii) 70 percent for vintage year 
2028; 
‘‘(iv) 60 percent for vintage year 
2029; 
‘‘(v) 50 percent for vintage year 2030; 
‘‘(vi) 40 percent for vintage year 
2031; 
‘‘(vii) 30 percent for vintage year 
2032; 
‘‘(viii) 20 percent for vintage year 
2033; 
‘‘(ix) 10 percent for vintage year 
2034; and 
‘‘(x) 0 percent for vintage year 2035 
and thereafter. 
‘‘(2) RESUMPTION
OF
REDUCTION.—If the 
President has modified the percentage stated in 
paragraph (1)(B) under section 767(d)(1)(C), and 
the President subsequently makes a determination 
under section 767(c) for an eligible industrial sector 
that more than 85 percent of United States imports 
for that sector are produced or manufactured in 
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countries that have met at least one of the criteria 
in that section, then the 10-year reduction schedule 
set forth in paragraph (1)(B) of this subsection shall 
begin in the next vintage year, with the percentage 
reduction based on the amount of the distribution of 
emission allowances under this section in the pre-
vious year. 
‘‘(3) NEWLY ELIGIBLE SECTORS.—In addition 
to receiving a distribution of emission allowances 
under this section in the first distribution occurring 
after an industrial sector is designated as eligible 
under section 763(b)(3), the owner or operator of an 
entity in that eligible industrial sector may receive a 
prorated share of any emission allowances made 
available for distribution under this section that 
were not distributed for the year in which the peti-
tion for eligibility was granted under section 
763(b)(3)(A). 
‘‘(4) CESSATION OF QUALIFYING ACTIVITIES.— 
If, as determined by the Administrator, a facility is 
no longer in an eligible industrial sector designated 
under section 763— 
‘‘(A) the Administrator shall not distribute 
emission allowances to the owner or operator of 
such facility under this section; and 
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‘‘(B) the owner or operator of such facility 
shall return to the Administrator all allowances 
that have been distributed to it for future vin-
tage years and a pro-rated amount of allow-
ances distributed to the facility under this sec-
tion for the vintage year in which the facility 
ceases to be in an eligible industrial sector des-
ignated under section 763. 
‘‘(b) CALCULATION OF DIRECT AND INDIRECT CAR-
BON FACTORS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) COVERED ENTITIES.—Except as pro-
vided in subsection (a), for covered entities that 
are in eligible industrial sectors, the amount of 
emission allowance rebates shall be based on 
the sum of the covered entity’s direct and indi-
rect carbon factors. 
‘‘(B) OTHER
ELIGIBLE
ENTITIES.—For 
entities that are in eligible industrial sectors 
but are not covered entities, the amount of 
emission allowance rebates shall be based on 
the entity’s indirect carbon factor. 
‘‘(C) NEW
ENTITIES.—Not later than 2 
years after the date of enactment of this title, 
the Administrator shall issue regulations gov-
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