To amend the Clean Air Act to establish an inventory, registry, and information system of United States greenhouse gas emissions to inform the public and private sector concerning, and encourage voluntary reductions in, greenhouse gas emissions.

January 17, 2003

Mr. CORZINE (for himself, Mr. JEFFORDS, and Mr. LIEBERMAN) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works

To amend the Clean Air Act to establish an inventory, registry, and information system of United States greenhouse gas emissions to inform the public and private sector concerning, and encourage voluntary reductions in, greenhouse gas emissions.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `National Greenhouse Gas Emissions Inventory and Registry Act of 2003'.

SEC. 2. FINDINGS AND PURPOSE.

(a) FINDINGS- Congress finds that--

(1) human activities have caused rapid increases in atmospheric concentrations of carbon dioxide and other greenhouse gases in the last century;

(2) according to the Intergovernmental Panel on Climate Change and the National Research Council--

(A) the Earth has warmed in the last century; and

(B) the majority of the observed warming is attributable to human activities;

(3) despite the fact that many uncertainties in climate science remain, the potential impacts from human-induced climate change pose a substantial risk that should be managed in a responsible manner; and

(4) to begin to manage climate change risks, public and private entities will need a comprehensive, accurate inventory, registry, and information system of the sources and quantities of United States greenhouse gas emissions.

(b) PURPOSE- The purpose of this Act is to establish a mandatory greenhouse gas inventory, registry, and information system that--

(1) is complete, consistent, transparent, and accurate;

(2) will create accurate data that can be used by public and private entities to design efficient and effective greenhouse gas emission reduction strategies;

(3) will encourage greenhouse gas emission reductions; and

(4) can be used to establish a baseline in the event of any future greenhouse gas emission reduction requirements affecting major emitters in the United States.

SEC. 3. GREENHOUSE GAS EMISSIONS.

The Clean Air Act (42 U.S.C. 1701 et seq.) is amended by adding at the end the following:

`TITLE VII--GREENHOUSE GAS EMISSIONS

`SEC. 701. DEFINITIONS.

`In this title:

`(1) COVERED ENTITY- The term `covered entity' means an entity that emits more than a threshold quantity of greenhouse gas emissions.

`(2) DIRECT EMISSIONS- The term `direct emissions' means greenhouse gas emissions from a source that is owned or controlled by an entity.

`(3) ENTITY- The term `entity' includes a firm, a corporation, an association, a partnership, and a Federal agency.

`(4) GREENHOUSE GAS- The term `greenhouse gas' means--

`(A) carbon dioxide;

`(B) methane;

`(C) nitrous oxide;

`(D) hydrofluorocarbons;

`(E) perfluorocarbons; and

`(F) sulfur hexafluoride.

`(5) GREENHOUSE GAS EMISSIONS- The term `greenhouse gas emissions' means emissions of a greenhouse gas, including--

`(A) stationary combustion source emissions, which are emitted as a result of combustion of fuels in stationary equipment such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, and other similar sources;

`(B) process emissions, which consist of emissions from chemical or physical processes other than combustion;

`(C) fugitive emissions, which consist of intentional and unintentional emissions from--

`(i) equipment leaks such as joints, seals, packing, and gaskets; and

`(ii) piles, pits, cooling towers, and other similar sources; and

`(D) mobile source emissions, which are emitted as a result of combustion of fuels in transportation equipment such as automobiles, trucks, trains, airplanes, and vessels.

`(6) GREENHOUSE GAS EMISSIONS RECORD- The term `greenhouse gas emissions record' means all of the historical greenhouse gas emissions and project reduction data submitted by an entity under this title, including any adjustments to such data under section 704(c).

`(7) GREENHOUSE GAS REPORT- The term `greenhouse gas report' means an annual list of the greenhouse gas emissions of an entity and the sources of those emissions.

`(8) INDIRECT EMISSIONS- The term `indirect emissions' means greenhouse gas emissions that are a consequence of the activities of an entity but that are emitted from sources owned or controlled by another entity.

`(9) NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION SYSTEM- The term `national greenhouse gas emissions information system' means the information system established under section 702(a).

`(10) NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY- The term `national greenhouse gas emissions inventory' means the national inventory of greenhouse gas emissions established under section 705.

`(11) NATIONAL GREENHOUSE GAS REGISTRY- The term `national greenhouse gas registry' means the national greenhouse gas registry established under section 703(a).

`(12) PROJECT REDUCTION- The term `project reduction' means--

`(A) a greenhouse gas emission reduction achieved by carrying out a greenhouse gas emission reduction project; and

`(B) sequestration achieved by carrying out a sequestration project.

`(13) REPORTING ENTITY- The term `reporting entity' means an entity that reports to the Administrator under subsection (a) or (b) of section 704.

`(14) SEQUESTRATION- The term `sequestration' means the long-term separation, isolation, or removal of greenhouse gases from the atmosphere, including through a biological or geologic method such as reforestation or an underground reservoir.

`(15) THRESHOLD QUANTITY- The term `threshold quantity' means a threshold quantity for mandatory greenhouse gas reporting established by the Administrator under section 704(a)(3).

`(16) VERIFICATION- The term `verification' means the objective and independent assessment of whether a greenhouse gas report submitted by a reporting entity accurately reflects the greenhouse gas impact of the reporting entity.

`SEC. 702. NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION SYSTEM.

`(a) ESTABLISHMENT- In consultation with the Secretary of Commerce, the Secretary of Agriculture, the Secretary of Energy, States, the private sector, and nongovernmental organizations concerned with establishing standards for reporting of greenhouse gas emissions, the Administrator shall establish and administer a national greenhouse gas emissions information system to collect information reported under section 704(a).

`(b) SUBMISSION TO CONGRESS OF DRAFT DESIGN- Not later than 180 days after the date of enactment of this title, the Administrator shall submit to Congress a draft design of the national greenhouse gas emissions information system.

`(c) AVAILABILITY OF DATA TO THE PUBLIC- The Administrator shall publish all information in the national greenhouse gas emissions information system through the website of the Environmental Protection Agency, except in any case in which publishing the information would reveal a trade secret or disclose information vital to national security.

`(d) RELATIONSHIP TO OTHER GREENHOUSE GAS REGISTRIES- To the extent practicable, the Administrator shall ensure coordination between the national greenhouse gas emissions information system and existing and developing Federal, regional, and State greenhouse gas registries.

`(e) INTEGRATION WITH OTHER ENVIRONMENTAL INFORMATION- To the extent practicable, the Administrator shall integrate information in the national greenhouse gas emissions information system with other environmental information managed by the Administrator.

`SEC. 703. NATIONAL GREENHOUSE GAS REGISTRY.

`(a) ESTABLISHMENT- In consultation with the Secretary of Commerce, the Secretary of Agriculture, the Secretary of Energy, States, the private sector, and nongovernmental organizations concerned with establishing standards for reporting of greenhouse gas emissions, the Administrator shall establish and administer a national greenhouse gas registry to collect information reported under section 704(b).

`(b) AVAILABILITY OF DATA TO THE PUBLIC- The Administrator shall publish all information in the national greenhouse gas registry through the website of the Environmental Protection Agency, except in any case in which publishing the information would reveal a trade secret or disclose information vital to national security.

`(c) RELATIONSHIP TO OTHER GREENHOUSE GAS REGISTRIES- To the maximum extent feasible and practicable, the Administrator shall ensure coordination between the national greenhouse gas registry and existing and developing Federal, regional, and State greenhouse gas registries.

`(d) INTEGRATION WITH OTHER ENVIRONMENTAL INFORMATION- To the maximum extent practicable, the Administrator shall integrate all information in the national greenhouse gas registry with other environmental information collected by the Administrator.

`SEC. 704. REPORTING.

`(a) MANDATORY REPORTING TO NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION SYSTEM-

`(1) INITIAL REPORTING REQUIREMENTS-

`(A) IN GENERAL- Not later than April 30, 2004, in accordance with this paragraph and the regulations promulgated under section 706(e)(1), each covered entity shall submit to the Administrator, for inclusion in the national greenhouse gas emissions information system, the greenhouse gas report of the covered entity with respect to--

`(i) calendar year 2003; and

`(ii) each greenhouse gas emitted by the covered entity in an amount that exceeds the applicable threshold quantity.

`(B) REQUIRED ELEMENTS- Each greenhouse gas report submitted under subparagraph (A)--

`(i) shall include estimates of direct stationary combustion source emissions;

`(ii) shall express greenhouse gas emissions in metric tons of the carbon dioxide equivalent of each greenhouse gas emitted;

`(iii) shall specify the sources of greenhouse gas emissions that are included in the greenhouse gas report;

`(iv) shall be reported on an entity-wide basis and on a facility-wide basis; and

`(v) to the maximum extent practicable, shall be reported electronically to the Administrator in such form as the Administrator may require.

`(C) METHOD OF REPORTING OF ENTITY-WIDE EMISSIONS- Under subparagraph (B)(iv), entity-wide emissions shall be reported on the bases of financial control and equity share in a manner consistent with the financial reporting practices of the covered entity.

`(2) FINAL REPORTING REQUIREMENTS-

`(A) IN GENERAL- Not later than April 30, 2005, and each April 30 thereafter (except as provided in subparagraph (B)(vii)), in accordance with this paragraph and the regulations promulgated under section 706(e)(2), each covered entity shall submit to the Administrator the greenhouse gas report of the covered entity with respect to--

`(i) the preceding calendar year; and

`(ii) each greenhouse gas emitted by the covered entity in an amount that exceeds the applicable threshold quantity.

`(B) REQUIRED ELEMENTS- Each greenhouse gas report submitted under subparagraph (A) shall include--

`(i) the required elements specified in paragraph (1);

`(ii) estimates of indirect emissions from imported electricity, heat, and steam;

`(iii) estimates of process emissions described in section 701(5)(B);

`(iv) estimates of fugitive emissions described in section 701(5)(C);

`(v) estimates of mobile source emissions described in section 701(5)(D), in such form as the Administrator may require;

`(vi) in the case of a covered entity that is a forest product entity, estimates of direct stationary source emissions, including emissions resulting from combustion of biomass;

`(vii) in the case of a covered entity that owns more than 250,000 acres of timberland, estimates, by State, of the timber and carbon stocks of the covered entity, which estimates shall be updated every 5 years; and

`(viii) a description of any adjustments to the greenhouse gas emissions record of the covered entity under subsection (c).

`(3) ESTABLISHMENT OF THRESHOLD QUANTITIES- For the purpose of reporting under this subsection, the Administrator shall establish threshold quantities of emissions for each combination of a source and a greenhouse gas that is subject to the mandatory reporting requirements under this subsection.

`(b) VOLUNTARY REPORTING TO NATIONAL GREENHOUSE GAS REGISTRY-

`(1) IN GENERAL- Not later than April 30, 2004, and each April 30 thereafter, in accordance with this subsection and the regulations promulgated under section 706(f), an entity may voluntarily report to the Administrator, for inclusion in the national greenhouse gas registry, with respect to the preceding calendar year and any greenhouse gas emitted by the entity--

`(A) project reductions;

`(B) transfers of project reductions to and from any other entity;

`(C) project reductions and transfers of project reductions outside the United States;

`(D) indirect emissions that are not required to be reported under subsection (a)(2)(B)(ii) (such as product transport, waste disposal, product substitution, travel, and employee commuting); and

`(E) product use phase emissions.

`(2) TYPES OF ACTIVITIES- Under paragraph (1), an entity may report activities that reduce greenhouse gas emissions or sequester a greenhouse gas, including--

`(A) fuel switching;

`(B) energy efficiency improvements;

`(C) use of renewable energy;

`(D) use of combined heat and power systems;

`(E) management of cropland, grassland, and grazing land;

`(F) forestry activities that increase carbon stocks;

`(G) carbon capture and storage;

`(H) methane recovery; and

`(I) carbon offset investments.

`(c) ADJUSTMENT FACTORS-

`(1) IN GENERAL- Each reporting entity shall adjust the greenhouse gas emissions record of the reporting entity in accordance with this subsection.

`(2) SIGNIFICANT STRUCTURAL CHANGES-

`(A) IN GENERAL- A reporting entity that experiences a significant structural change in the organization of the reporting entity (such as a merger, major acquisition, or divestiture) shall adjust its greenhouse gas emissions record for preceding years so as to maintain year-to-year comparability.

`(B) MID-YEAR CHANGES- In the case of a reporting entity that experiences a significant structural change described in subparagraph (A) during the middle of a year, the greenhouse gas emissions record of the reporting entity for preceding years shall be adjusted on a pro-rata basis.

`(3) CALCULATION CHANGES AND ERRORS- The greenhouse gas emissions record of a reporting entity for preceding years shall be adjusted for--

`(A) changes in calculation methodologies; or

`(B) errors that significantly affect the quantity of greenhouse gases in the greenhouse gas emissions record.

`(4) ORGANIZATIONAL GROWTH OR DECLINE- The greenhouse gas emissions record of a reporting entity for preceding years shall not be adjusted for any organizational growth or decline of the reporting entity such as--

`(A) an increase or decrease in production output;

`(B) a change in product mix;

`(C) a plant closure; and

`(D) the opening of a new plant.

`(5) EXPLANATIONS OF ADJUSTMENTS- A reporting entity shall explain, in a statement included in the greenhouse gas report of the reporting entity for a year--

`(A) any significant adjustment in the greenhouse gas emissions record of the reporting entity; and

`(B) any significant change between the greenhouse gas emissions record for the preceding year and the greenhouse gas emissions reported for the current year.

`(d) QUANTIFICATION AND VERIFICATION PROTOCOLS AND TOOLS-

`(1) IN GENERAL- The Administrator and the Secretary of Commerce, the Secretary of Agriculture, and the Secretary of Energy shall jointly work with the States, the private sector, and nongovernmental organizations to develop--

`(A) protocols for quantification and verification of greenhouse gas emissions;

`(B) electronic methods for quantification and reporting of greenhouse gas emissions; and

`(C) greenhouse gas accounting and reporting standards.

`(2) BEST PRACTICES- The protocols and methods developed under paragraph (1) shall conform, to the maximum extent practicable, to the best practice protocols that have the greatest support of experts in the field.

`(3) INCORPORATION INTO REGULATIONS- The Administrator shall incorporate the protocols developed under paragraph (1)(A) into the regulations promulgated under section 706.

`(4) OUTREACH PROGRAM- The Administrator, the Secretary of Commerce, the Secretary of Agriculture, and the Secretary of Energy shall jointly conduct an outreach program to provide information to all reporting entities and the public on the protocols and methods developed under this subsection.

`(e) VERIFICATION-

`(1) PROVISION OF INFORMATION BY REPORTING ENTITIES- Each reporting entity shall provide information sufficient for the Administrator to verify, in accordance with greenhouse gas accounting and reporting standards developed under subsection (d)(1)(C), that the greenhouse gas report of the reporting entity--

`(A) has been accurately reported; and

`(B) in the case of each project reduction, represents actual reductions in greenhouse gas emissions or actual increases in net sequestration, as applicable.

`(2) INDEPENDENT THIRD-PARTY VERIFICATION- A reporting entity may--

`(A) obtain independent third-party verification; and

`(B) present the results of the third-party verification to the Administrator for consideration by the Administrator in carrying out paragraph (1).

`(f) ENFORCEMENT- The Administrator may bring a civil action in United States district court against a covered entity that fails to comply with subsection (a), or a regulation promulgated under section 706(e), to impose a civil penalty of not more than $25,000 for each day that the failure to comply continues.

`SEC. 705. NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY.

`Not later than April 30, 2004, and each April 30 thereafter, the Administrator shall publish a national greenhouse gas emissions inventory that includes--

`(1) comprehensive estimates of the quantity of United States greenhouse gas emissions for the second preceding calendar year, including--

`(A) for each greenhouse gas, an estimate of the quantity of emissions contributed by each key source category;

`(B) a detailed analysis of trends in the quantity, composition, and sources of United States greenhouse gas emissions; and

`(C) a detailed explanation of the methodology used in developing the national greenhouse gas emissions inventory; and

`(2) a detailed analysis of the information reported to the national greenhouse gas emissions information system and the national greenhouse gas registry.

`SEC. 706. REGULATIONS.

`(a) IN GENERAL- The Administrator may promulgate such regulations as are necessary to carry out this title.

`(b) BEST PRACTICES- In developing regulations under this section, the Administrator shall seek to leverage leading protocols for the measurement, accounting, reporting, and verification of greenhouse gas emissions.

`(c) NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION SYSTEM- Not later than January 31, 2004, the Administrator shall promulgate such regulations as are necessary to establish the national greenhouse gas emissions information system.

`(d) NATIONAL GREENHOUSE GAS REGISTRY- Not later than January 31, 2004, the Administrator shall promulgate such regulations as are necessary to establish the national greenhouse gas registry.

`(e) MANDATORY REPORTING REQUIREMENTS-

`(1) INITIAL REPORTING REQUIREMENTS- Not later than January 31, 2004, the Administrator shall promulgate such regulations as are necessary to implement the initial mandatory reporting requirements under section 704(a)(1).

`(2) FINAL REPORTING REQUIREMENTS- Not later than January 31, 2005, the Administrator shall promulgate such regulations as are necessary to implement the final mandatory reporting requirements under section 704(a)(2).

`(f) VOLUNTARY REPORTING PROVISIONS- Not later than January 31, 2004, the Administrator shall promulgate such regulations and issue such guidance as are necessary to implement the voluntary reporting provisions under section 704(b).

`(g) ADJUSTMENT FACTORS- Not later than January 31, 2004, the Administrator shall promulgate such regulations as are necessary to implement the adjustment factors under section 704(c).'.

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