109th CONGRESS
2d Session
S. 3698
To amend the Clean Air Act to reduce emissions of carbon dioxide,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
July 20, 2006
Mr. JEFFORDS (for himself, Mrs. BOXER, Mr. LAUTENBERG, Mr. KENNEDY, Mr.
LEAHY, Mr. REED, Mr. AKAKA, Mr. DODD, Mr. SARBANES, and Mr. MENENDEZ) introduced
the following bill; which was read twice and referred to the Committee on
Environment and Public Works
A BILL
To amend the Clean Air Act to reduce emissions of carbon dioxide,
and for other purposes.
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 `Global Warming Pollution Reduction Act'.
SEC. 2. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.
The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at the end
the following:
`TITLE VII--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS
`Sec. 704. Global warming pollution emission reductions.
`Sec. 705. Conditions for accelerated global warming pollution emission
reduction.
`Sec. 706. Use of allowances for transition assistance and other purposes.
`Sec. 707. Vehicle emission standards.
`Sec. 708. Emission standards for electric generation units.
`Sec. 709. Low-carbon generation requirement.
`Sec. 710. Geological disposal of global warming pollutants.
`Sec. 711. Research and development.
`Sec. 712. Energy efficiency performance standard.
`Sec. 713. Renewable portfolio standard.
`Sec. 714. Standards to account for biological sequestration of carbon.
`Sec. 715. Global warming pollution reporting.
`Sec. 716. Clean energy technology deployment in developing countries.
`Sec. 717. Paramount interest waiver.
`Sec. 718. Effect on other law.
`SEC. 701. FINDINGS.
`(1) global warming poses a significant threat to the national security
and economy of the United States, public health and welfare, and the global
environment;
`(2) due largely to an increased use of energy from fossil fuels, human
activities are primarily responsible for the release of carbon dioxide
and other heat-trapping global warming pollutants that are accumulating
in the atmosphere and causing surface air and subsurface ocean temperatures
to rise;
`(3) as of the date of enactment of this title, atmospheric concentrations
of carbon dioxide are 35 percent higher than those concentrations were
150 years ago, at 378 parts per million compared to 280 parts per million;
`(4) the United States emits more global warming pollutants than any other
country, and United States carbon dioxide emissions have increased by
an average of 1.3 percent annually since 1990;
`(5)(A) during the past 100 years, global temperatures have risen by 1.44
degrees Fahrenheit; and
`(B) from 1970 to the present, those temperatures have risen by almost
1 degree Fahrenheit;
`(6) 8 of the past 10 years (1996 to 2005) are among the 10 warmest years
on record;
`(7) average temperatures in the Arctic have increased by 4 to 7 degrees
Fahrenheit during the past 50 years;
`(8) global warming has caused--
`(A) ocean temperatures to increase, resulting in rising sea levels,
extensive bleaching of coral reefs worldwide, and an increase in the
intensity of tropical storms;
`(B) the retreat of Arctic sea ice by an average of 9 percent per decade
since 1978;
`(C) the widespread thawing of permafrost in polar, subpolar, and mountainous
regions;
`(D) the redistribution and loss of species; and
`(E) the rapid shrinking of glaciers;
`(9) the United States must adopt a comprehensive and effective national
program of mandatory limits and incentives to reduce global warming pollution
emissions into the atmosphere;
`(10) at the current rate of emission, global warming pollution concentrations
in the atmosphere could reach more than 600 parts per million in carbon
dioxide equivalent, and global average mean temperature could rise an
additional 2.7 to 11 degrees Fahrenheit, by the end of the century;
`(11) although an understanding of all details of the Earth system is
not yet complete, present knowledge indicates that potential future temperature
increases could result in--
`(A) the further or complete melting of the Antarctic and Greenland
ice sheets;
`(B) the disruption of the North-Atlantic Thermohaline Circulation (commonly
known as the `Gulf Stream');
`(C) the extinction of species; and
`(D) large-scale disruptions of the natural systems that support life;
`(12) there exists an array of technological options for use in reducing
global warming pollution emissions, and significant reductions can be
attained using a portfolio of options that will not adversely impact the
economy;
`(13) the ingenuity of the people of the United States will allow the
Nation to become a leader in solving global warming; and
`(14) it should be a goal of the United States to achieve a reduction
in global warming pollution emissions in the United States--
`(A) to ensure that the average global temperature does not increase
by more than 3.6 degrees Fahrenheit (2 degrees Celsius); and
`(B) to facilitate the achievement of an average global atmospheric
concentration of global warming pollutants that does not exceed 450
parts per million in carbon dioxide equivalent.
`SEC. 702. PURPOSES.
`The purposes of this title are--
`(1) to achieve a reduction in global warming pollution emissions compatible
with ensuring that--
`(A) the average global temperature does not increase by more than 3.6
degrees Fahrenheit (2 degrees Celsius) above the preindustrial average;
and
`(B) total average global atmospheric concentrations of global warming
pollutants do not exceed 450 parts per million in carbon dioxide equivalent;
`(2) to reduce by calendar year 2050 the aggregate net level of global
warming pollution emissions of the United States to a level that is 80
percent below the aggregate net level of global warming pollution emissions
for calendar year 1990;
`(3) to allow for an acceleration of reductions in global warming pollution
emissions to prevent--
`(A) average global temperature from increasing by more than 3.6 degrees
Fahrenheit (2 degrees Celsius) above the preindustrial average; or
`(B) global atmospheric concentrations of global warming pollutants
from exceeding 450 parts per million;
`(4) to establish a motor vehicle global warming pollution emission requirement;
`(5) to require electric generation units to meet a global warming pollution
emission standard;
`(6) to establish rules for the safe geological sequestration of carbon
dioxide;
`(7) to encourage energy efficiency and the use of renewable energy by
establishing a renewable portfolio standard and an energy efficiency portfolio
standard;
`(8) to provide for research relating to, and development of, the technologies
to control global warming pollution emissions;
`(9) to position the United States as the world leader in reducing the
risk of the potentially devastating, wide-ranging impacts associated with
global warming; and
`(10) to promote, through leadership by the United States, accelerated
reductions in global warming pollution from other countries with significant
global warming pollution emissions.
`SEC. 703. DEFINITIONS.
`(1) ACADEMY- The term `Academy' means the National Academy of Sciences.
`(2) CARBON DIOXIDE EQUIVALENT- The term `carbon dioxide equivalent' means,
for each global warming pollutant, the quantity of the global warming
pollutant that makes the same contribution to global warming as 1 metric
ton of carbon dioxide, as determined by the Administrator, taking into
account the study and report described in section 705(a).
`(3) FACILITY- The term `facility' means all buildings, structures, or
installations that are--
`(A) located on 1 or more contiguous or adjacent properties under common
control of the same persons; and
`(B) located in the United States.
`(4) GLOBAL WARMING POLLUTANT- The term `global warming pollutant' means--
`(F) sulfur hexafluoride; and
`(G) any other anthropogenically-emitted gas that the Administrator,
after notice and comment, determines to contribute to global warming.
`(5) GLOBAL WARMING POLLUTION- The term `global warming pollution' means
any combination of 1 or more global warming pollutants emitted into the
ambient air or atmosphere.
`(6) MARKET-BASED PROGRAM- The term `market-based program' means a program
that places an absolute limit on the aggregate net global warming pollution
emissions of 1 or more sectors of the economy of the United States, while
allowing the transfer or sale of global warming pollution emission allowances.
`(7) NAS REPORT- The term `NAS report' means a report completed by the
Academy under subsection (a) or (b) of section 705.
`SEC. 704. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.
`(a) Emission Reduction Goal- Congress declares that--
`(1) it shall be the goal of the United States, acting in concert with
other countries that emit global warming pollutants, to achieve a reduction
in global warming pollution emissions--
`(A) to ensure that the average global temperature does not increase
by more than 3.6 degrees Fahrenheit (2 degrees Celsius); and
`(B) to facilitate the achievement of an average global atmospheric
concentration of global warming pollutants that does not exceed 450
parts per million in carbon dioxide equivalent; and
`(2) in order to achieve the goal described in paragraph (1), the United
States shall reduce the global warming pollution emissions of the United
States by a quantity that is proportional to the share of the United States
of the reductions that are necessary--
`(A) to ensure that the average global temperature does not increase
more than 3.6 degrees Fahrenheit (2 degrees Celsius); and
`(B) to stabilize average global warming pollution concentrations globally
at or below 450 parts per million in carbon dioxide equivalent.
`(b) Emission Reduction Milestones for 2020-
`(1) IN GENERAL- To achieve the goal described in subsection (a)(1), not
later than 2 years after the date of enactment of this title, after an
opportunity for public notice and comment, the Administrator shall promulgate
any rules that are necessary to reduce, by not later than January 1, 2020,
the aggregate net levels of global warming pollution emissions of the
United States to the aggregate net level of those global warming pollution
emissions during calendar year 1990.
`(2) ACHIEVEMENT OF MILESTONES- To the maximum extent practicable, the
reductions described in paragraph (1) shall be achieved through an annual
reduction in the aggregate net level of global warming pollution emissions
of the United States of approximately 2 percent for each of calendar years
2010 through 2020.
`(c) Emission Reduction Milestones for 2030, 2040, and 2050- Except as described
in subsection (d), not later than January 1, 2018, after an opportunity
for public notice and comment, the Administrator shall promulgate any rules
that are necessary to reduce the aggregate net levels of global warming
pollution emissions of the United States--
`(1) by calendar year 2030, by 1/3 of 80 percent of the aggregate net
level of global warming pollution emissions of the United States during
calendar year 1990;
`(2) by calendar year 2040, by 2/3 of 80 percent of the aggregate net
level of the global warming pollution emissions of the United States during
calendar year 1990; and
`(3) by calendar year 2050, by 80 percent of the aggregate net level of
global warming pollution emissions of the United States during calendar
year 1990.
`(d) Accelerated Emission Reduction Milestones- If an NAS report determines
that any of the events described in section 705(a)(2) have occurred, or
are more likely than not to occur in the foreseeable future, not later than
2 years after the date of completion of the NAS report, the Administrator,
after an opportunity for public notice and comment and taking into account
the new information reported in the NAS report, may adjust the milestones
under this section and promulgate any rules that are necessary--
`(1) to reduce the aggregate net levels of global warming pollution emissions
from the United States on an accelerated schedule; and
`(2) to minimize the effects of rapid climate change and achieve the goals
of this title.
`(e) Report on Achievement of Milestones- If an NAS report determines that
a milestone under paragraph (1) or (2) of subsection (c) cannot be achieved
because of technological infeasibility, the Administrator shall submit to
Congress a notification of that determination.
`(f) Emission Reduction Policies-
`(1) IN GENERAL- In implementing subsections (a) through (e), the Administrator
may establish 1 or more market-based programs.
`(2) MARKET-BASED PROGRAM POLICIES-
`(A) IN GENERAL- In implementing any market-based program, the Administrator
shall allocate to households, communities, and other entities described
in section 706(a) any global warming pollution emission allowances that
are not allocated to entities covered under the emission limitation.
`(B) RECOGNITION OF EMISSION REDUCTIONS MADE IN COMPLIANCE WITH STATE
AND LOCAL LAWS- A market-based program may recognize reductions of global
warming pollution emissions made before the effective date of the market-based
program if the Administrator determines that--
`(i)(I) the reductions were made in accordance with a State or local
law;
`(II) the State or local law is at least as stringent as the rules
established for the market-based program under paragraph (1); and
`(III) the reductions are at least as verifiable as reductions made
in accordance with those rules; or
`(ii) for any given entity subject to the market-based program, the
entity demonstrates that the entity has made entity-wide reductions
of global warming pollution emissions before the effective date of
the market-based program, but not earlier than calendar year 1992,
that are at least as verifiable as reductions made in accordance with
the rules established for the market-based program under paragraph
(1).
`(C) PUBLICATION- If the Administrator determines that it is necessary
to establish a market-based program, the Administrator shall publish
notice of the determination in the Federal Register.
`(D) LIMITATIONS ON MARKET-BASED PROGRAMS-
`(i) DEFINITIONS- In this subparagraph:
`(I) ANNUAL ALLOWANCE PRICE- The term `annual allowance price' means
the average market price of global warming pollution emission allowances
for a calendar year.
`(II) DECLINING EMISSIONS CAP WITH A TECHNOLOGY-INDEXED STOP PRICE-
The term `declining emissions cap with a technology-indexed stop
price' means a feature of a market-based program for an industrial
sector, or on an economy-wide basis, under which the emissions cap
declines by a fixed percentage each calendar year or, during any
year in which the annual allowance price exceeds the technology-indexed
stop price, the emissions cap remains the same until the occurrence
of the earlier of--
`(aa) the date on which the annual allowance price no longer exceeds
the technology-indexed stop price; or
`(bb) the date on which a period of 3 years has elapsed during
which the emissions cap has remained unchanged.
`(III) EMISSIONS CAP- The term `emissions cap' means the total number
of global warming pollution emission allowances issued for a calendar
year.
`(IV) TECHNOLOGY-INDEXED STOP PRICE- The term `technology-indexed
stop price' means a price per ton of global warming pollution emissions
determined annually by the Administrator that is not less than the
technology-specific average cost of preventing the emission of 1
ton of global warming pollutants through commercial deployment of
any available zero-carbon or low-carbon technologies. With respect
to the electricity sector, those technologies shall consist of--
`(aa) wind-generated electricity;
`(bb) photovoltaic-generated electricity;
`(cc) geothermal energy;
`(dd) solar thermally-generated energy;
`(ee) wave-based forms of energy;
`(ff) any fossil fuel-based electric generating technology emitting
less than 250 pounds per megawatt hour; and
`(gg) any zero-carbon-emitting electric generating technology
that does not generate radioactive waste.
`(ii) IMPLEMENTATION- In implementing any market-based program under
this Act, for the period prior to January 1, 2020, the Administrator
shall consider the impact on the economy of the United States of implementing
the program with a declining emissions cap through the use of a technology-indexed
stop price.
`(iii) OTHER EMITTING SECTORS- The Administrator may consider the
use of a declining emissions cap with a technology-indexed stop price,
or similar approaches, for other emitting sectors based on low-carbon
or zero-carbon technologies, including--
`(II) hydrogen power; and
`(III) other sources of energy and transportation fuel.
`(g) Cost-Effectiveness- In promulgating regulations under this section,
the Administrator shall select the most cost-effective options for global
warming pollution control and emission reduction strategies.
`SEC. 705. CONDITIONS FOR ACCELERATED GLOBAL WARMING POLLUTION EMISSION
REDUCTION.
`(a) Report on Global Change Events by the Academy-
`(1) IN GENERAL- The Administrator shall offer to enter into a contract
with the Academy under which the Academy, not later than 2 years after
the date of enactment of this title, and every 3 years thereafter, shall
submit to Congress and the Administrator a report that describes whether
any of the events described in paragraph (2)--
`(A) have occurred or are more likely than not to occur in the foreseeable
future; and
`(B) in the judgment of the Academy, are the result of anthropogenic
climate change.
`(2) EVENTS- The events referred to in paragraph (1) are--
`(A) the exceedance of an atmospheric concentration of global warming
pollutants of 450 parts per million in carbon dioxide equivalent; and
`(B) an increase of global average temperatures in excess of 3.6 degrees
Fahrenheit (2 degrees Celsius) above the preindustrial average.
`(1) DEFINITION OF TECHNOLOGICALLY INFEASIBLE- In this subsection, the
term `technologically infeasible', with respect to a technology, means
that the technology--
`(A) will not be demonstrated beyond laboratory-scale conditions;
`(C) would not reliably reduce global warming pollution emissions; or
`(D) would prevent the activity to which the technology applies from
meeting or performing its primary purpose (such as generating electricity
or transporting goods or individuals).
`(2) REPORTS- The Administrator shall offer to enter into a contract with
the Academy under which the Academy, not later than 2 years after the
date of enactment of this title and every 3 years thereafter, shall submit
to Congress and the Administrator a report that describes or analyzes--
`(A) the status of current global warming pollution emission reduction
technologies, including--
`(i) technologies for capture and disposal of global warming pollutants;
`(ii) efficiency improvement technologies;
`(iii) zero-global-warming-pollution-emitting energy technologies;
and
`(iv) above- and below-ground biological sequestration technologies;
`(B) whether any of the requirements under this title (including regulations
promulgated under this title) mandate a level of emission control or
reduction that, based on available or expected technology, will be technologically
infeasible at the time at which the requirements become effective;
`(C) the projected date on which any technology determined to be technologically
infeasible will become technologically feasible;
`(D) whether any technology determined to be technologically infeasible
cannot reasonably be expected to become technologically feasible prior
to calendar year 2050; and
`(E) the costs of available alternative global warming pollution emission
reduction strategies that could be used or pursued in lieu of any technologies
that are determined to be technologically infeasible.
`(3) REPORT EVALUATING 2050 MILESTONE- Not later than December 31, 2037,
the Administrator shall offer to enter into a contract with the Academy
under which, not later than December 31, 2039, the Academy shall prepare
and submit to Congress and the Administrator a report on the appropriateness
of the milestone described in section 704(c)(3), taking into consideration--
`(A) information that was not available as of the date of enactment
of this title; and
`(B) events that have occurred since that date relating to--
`(ii) climate change technologies; and
`(iii) national and international climate change commitments.
`(c) Additional Items in NAS Report- In addition to the information described
in subsection (a)(1) that is required to be included in the NAS report,
the Academy shall include in the NAS report--
`(1) an analysis of the trends in annual global warming pollution emissions
by the United States and the other countries that collectively account
for more than 90 percent of global warming pollution emissions (including
country-specific inventories of global warming pollution emissions and
facility-specific inventories of global warming pollution emissions in
the United States);
`(2) an analysis of the trends in global warming pollution concentrations
(including observed atmospheric concentrations of global warming pollutants);
`(3) a description of actual and projected global change impacts that
may be caused by anthropogenic global warming pollution emissions, in
addition to the events described in subsection (a)(2); and
`(4) such other information as the Academy determines to be appropriate.
`SEC. 706. USE OF ALLOWANCES FOR TRANSITION ASSISTANCE AND OTHER PURPOSES.
`(a) Regulations Governing Allocation of Allowances for Transition Assistance
to Individuals and Entities-
`(1) IN GENERAL- In implementing any market-based program, the Administrator
may promulgate regulations providing for the allocation of global warming
pollution emission allowances to the individuals and entities, or for
the purposes, specified in subsection (b).
`(2) REQUIREMENTS- Regulations promulgated under paragraph (1) may, as
the Administrator determines to be necessary, provide for the appointment
of 1 or more trustees--
`(A) to receive emission allowances for the benefit of households, communities,
and other entities described in paragraph (1);
`(B) to sell the emission allowances at fair market value; and
`(C) to distribute the proceeds of any sale of emission allowances to
the appropriate beneficiaries.
`(b) Allocation for Transition Assistance- The Administrator may allocate
emission allowances, in accordance with regulations promulgated under subsection
(a), to--
`(1) communities, individuals, and companies that have experienced disproportionate
adverse impacts as a result of--
`(A) the transition to a lower carbon-emitting economy; or
`(2) owners and operators of highly energy-efficient buildings, including--
`(B) producers of highly energy-efficient products; and
`(C) entities that carry out energy-efficiency improvement projects
pursuant to section 712 that result in consumer-side reductions in electricity
use;
`(3) entities that will use the allowances for the purpose of carrying
out geological sequestration of carbon dioxide produced by an anthropogenic
global warming pollution emission source in accordance with requirements
established by the Administrator;
`(4) such individuals and entities as the Administrator determines to
be appropriate, for use in carrying out projects to reduce net carbon
dioxide emissions through above-ground and below-ground biological carbon
dioxide sequestration (including sequestration in forests, forest soils,
agricultural soils, rangeland, or grassland in the United States);
`(5) such individuals and entities (including fish and wildlife agencies)
as the Administrator determines to be appropriate, for use in carrying
out projects to protect and restore ecosystems (including fish and wildlife)
affected by climate change; and
`(6) manufacturers producing consumer products that result in substantially
reduced global warming pollution emissions, for use in funding rebates
for purchasers of those products.
`SEC. 707. VEHICLE EMISSION STANDARDS.
`(a) Vehicles Under 10,000 Pounds-
`(1) IN GENERAL- Not later than January 1, 2010, the Administrator shall
promulgate regulations requiring each fleet of automobiles sold by a manufacturer
in the United States beginning in model year 2016 to meet the standards
for global warming pollution emissions described in paragraph (2).
`(2) EMISSION STANDARDS- The average global warming pollution emissions
of a vehicle fleet described in paragraph (1) shall not exceed--
`(A) 205 carbon dioxide equivalent grams per mile for automobiles with--
`(i) a gross vehicle weight of not more than 8,500 pounds; and
`(ii) a loaded vehicle weight of not more than 3,750 pounds;
`(B) 332 carbon dioxide equivalent grams per mile for--
`(I) a gross vehicle weight of not more than 8,500 pounds; and
`(II) a loaded vehicle weight of more than 3,750 pounds; and
`(ii) medium-duty passenger vehicles; and
`(C) 405 carbon dioxide equivalent grams per mile for vehicles--
`(i) with a gross vehicle weight of between 8,501 pounds and 10,000
pounds; and
`(ii) that are not medium-duty passenger vehicles.
`(3) HEIGHTENED STANDARDS- After model year 2016, the Administrator may
promulgate regulations that increase the stringency of emission standards
described in paragraph (2) as necessary to meet the emission reduction
goal described in section 704(e)(3).
`(b) Highway Vehicles Over 10,000 Pounds-
`(1) IN GENERAL- Not later than January 1, 2010, the Administrator shall
promulgate regulations requiring each fleet of highway vehicles over 10,000
pounds sold by a manufacturer in the United States beginning in model
year 2020 to meet the standards for global warming pollution emissions
described in paragraph (2).
`(2) EMISSION STANDARDS- The average global warming pollution emissions
of a vehicle fleet described in paragraph (1) shall not exceed--
`(A) 850 carbon dioxide equivalent grams per mile for highway vehicles
with a gross vehicle weight rating between 10,001 pounds and 26,000
pounds; and
`(B) 1,050 carbon dioxide equivalent grams per mile for highway vehicles
with a gross vehicle weight rating of more than 26,000 pounds.
`(3) HEIGHTENED STANDARDS- After model year 2020, the Administrator may
promulgate regulations that increase the stringency of emission standards
described in paragraph (2) as necessary to meet the emission reduction
goal described in section 704(a)(1).
`(c) Adjustment of Requirements- Taking into account appropriate lead times
for vehicle manufacturers, if the Academy determines, pursuant to an NAS
report, that a vehicle emission standard under this section is or will be
technologically infeasible as of the effective date of the standard, the
Administrator may, by regulation, modify the requirement to take into account
the determination of the Academy.
`(1) IN GENERAL- Not later than January 1, 2008, the Administrator shall
enter into a contract with the Academy under which the Academy shall conduct
a study of, and submit to the Administrator a report on, the potential
contribution of the non-highway portion of the transportation sector toward
meeting the emission reduction goal described in section 704(a)(1).
`(2) REQUIREMENTS- The study shall analyze--
`(A) the technological feasibility and cost-effectiveness of global
warming pollution reductions from the non-highway sector; and
`(B) the overall potential contribution of that sector in terms of emissions,
in meeting the emission reduction goal described in section 704(a)(1).
`SEC. 708. EMISSION STANDARDS FOR ELECTRIC GENERATION UNITS.
`(1) IN GENERAL- Not later than 2 years after the date of enactment of
this title, the Administrator shall, by regulation, require each unit
that is designed and intended to provide electricity at a unit capacity
factor of at least 60 percent and that begins operation after December
31, 2011, to meet the standard described in paragraph (2).
`(2) STANDARD- Beginning on December 31, 2015, a unit described in paragraph
(1) shall meet a global warming pollution emission standard that is not
higher than the emission rate of a new combined cycle natural gas generating
unit.
`(3) MORE STRINGENT REQUIREMENTS- For the period beginning on January
1 of the calendar year following the effective date of the regulation
described in paragraph (1) and ending on December 31, 2029, the Administrator
may increase the stringency of the global warming pollution emission standard
described in paragraph (1) with respect to electric generation units described
in that paragraph.
`(b) Final Standard- Not later than December 31, 2030, the Administrator
shall require each electric generation unit, regardless of when the unit
began to operate, to meet the applicable emission standard under subsection
(a).
`(c) Adjustment of Requirements- If the Academy determines, pursuant to
section 705, that a requirement of this section is or will be technologically
infeasible at the time at which the requirement becomes effective, the Administrator,
may, by regulation, adjust or delay the effective date of the requirement
as is necessary to take into consideration the determination of the Academy.
`SEC. 709. LOW-CARBON GENERATION REQUIREMENT.
`(a) Definitions- In this section:
`(1) BASE QUANTITY OF ELECTRICITY- The term `base quantity of electricity'
means the total quantity of electricity produced for sale by a covered
generator during the calendar year immediately preceding a compliance
year from coal, petroleum coke, lignite, or any combination of those fuels.
`(2) COVERED GENERATOR- The term `covered generator' means an electric
generating unit that--
`(A) has a rated capacity of 25 megawatts or more; and
`(B) has an annual fuel input at least 50 percent of which is provided
by coal, petroleum coke, lignite, or any combination of those fuels.
`(3) LOW-CARBON GENERATION- The term `low-carbon generation' means electric
energy generated from an electric generating unit at least 50 percent
of the annual fuel input of which, in any year--
`(A) is provided by coal, petroleum coke, lignite, biomass, or any combination
of those fuels; and
`(B) results in an emission rate into the atmosphere of not more than
250 pounds of carbon dioxide per megawatt-hour (after adjustment for
carbon dioxide from the electric generating unit that is geologically
sequestered in a geological repository approved by the Administrator
pursuant to subsection (e)).
`(4) PROGRAM- The term `program' means the low-carbon generation credit
trading program established under subsection (d)(1).
`(1) CALENDAR YEARS 2015 THROUGH 2020- Of the base quantity of electricity
produced for sale by a covered generator for a calendar year, the covered
generator shall provide a minimum percentage of that base quantity of
electricity for the calendar year from low-carbon generation, as specified
in the following table:
---------------------------------------------------------
---------------------------------------------------------
`Calendar year: Minimum annual percentage:
2015 0.5
2016 1.0
2017 2.0
2018 3.0
2019 4.0
2020 5.0
---------------------------------------------------------
`(2) CALENDAR YEARS 2021 THROUGH 2025- For each of calendar years 2021
through 2025, the Administrator may increase the minimum percentage of
the base quantity of electricity from low-carbon generation described
in paragraph (1) by up to 2 percentage points from the previous year,
as the Administrator determines to be necessary to achieve the emission
reduction goal described in section 704(a)(1).
`(3) CALENDAR YEARS 2026 THROUGH 2030- For each of calendar years 2026
through 2030, the Administrator may increase the minimum percentage of
the base quantity of electricity from low-carbon generation described
in paragraph (1) by up to 3 percentage points from the previous year,
as the Administrator determines to be necessary to achieve the emission
reduction goal described in section 704(a)(1).
`(c) Means of Compliance- An owner or operator of a covered generator shall
comply with subsection (b) by--
`(1) generating electric energy using low-carbon generation;
`(2) purchasing electric energy generated by low-carbon generation;
`(3) purchasing low-carbon generation credits issued under the program;
or
`(4) undertaking a combination of the actions described in paragraphs
(1) through (3).
`(d) Low-Carbon Generation Credit Trading Program-
`(1) IN GENERAL- Not later than January 1, 2008, the Administrator shall
establish, by regulation after notice and opportunity for comment, a low-carbon
generation trading program to permit an owner or operator of a covered
generator that does not generate or purchase enough electric energy from
low-carbon generation to comply with subsection (b) to achieve that compliance
by purchasing sufficient low-carbon generation credits.
`(2) REQUIREMENTS- As part of the program, the Administrator shall--
`(A) issue to producers of low-carbon generation, on a quarterly basis,
a single low-carbon generation credit for each kilowatt hour of low-carbon
generation sold during the preceding quarter; and
`(B) ensure that a kilowatt hour, including the associated low-carbon
generation credit, shall be used only once for purposes of compliance
with subsection (b).
`(e) Enforcement- An owner or operator of a covered generator that fails
to comply with subsection (b) shall be subject to a civil penalty in an
amount equal to the product obtained by multiplying--
`(1) the number of kilowatt-hours of electric energy sold to electric
consumers in violation of subsection (b); and
`(A) 2.5 cents (as adjusted under subsection (g)); or
`(B) 200 percent of the average market value of those low-carbon generation
credits during the year in which the violation occurred.
`(f) Exemption- This section shall not apply for any calendar year to an
owner or operator of a covered generator that sold less than 40,000 megawatt-hours
of electric energy produced from covered generators during the preceding
calendar year.
`(g) Inflation Adjustment- Not later than December 31, 2008, and annually
thereafter, the Administrator shall adjust the amount of the civil penalty
for each kilowatt-hour calculated under subsection (e)(2) to reflect changes
for the 12-month period ending on the preceding November 30 in the Consumer
Price Index for All Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor.
`(h) Technological Infeasibility- If the Academy determines, pursuant to
section 705, that the schedule for compliance described in subsection (b)
is or will be technologically infeasible for covered generators to meet,
the Administrator may, by regulation, adjust the schedule as the Administrator
determines to be necessary to take into account the consideration of the
determination of the Academy.
`(i) Termination of Authority- This section and the authority provided by
this section terminate on December 31, 2030.
`SEC. 710. GEOLOGICAL DISPOSAL OF GLOBAL WARMING POLLUTANTS.
`(a) Geological Carbon Dioxide Disposal Deployment Projects-
`(1) IN GENERAL- The Administrator shall establish a competitive grant
program to provide grants to 5 entities for the deployment of projects
to geologically dispose of carbon dioxide (referred to in this subsection
as `geological disposal deployment projects').
`(2) LOCATION- Each geological disposal deployment project shall be conducted
in a geologically distinct location in order to demonstrate the suitability
of a variety of geological structures for carbon dioxide disposal.
`(3) COMPONENTS- Each geological disposal deployment project shall include
an analysis of--
`(A) mechanisms for trapping the carbon dioxide to be geologically disposed;
`(B) techniques for monitoring the geologically disposed carbon dioxide;
`(C) public response to the geological disposal deployment project;
and
`(D) the permanency of carbon dioxide storage in geological reservoirs.
`(A) IN GENERAL- The Administrator shall establish--
`(i) appropriate conditions for environmental protection with respect
to geological disposal deployment projects to protect public health
and the environment; and
`(ii) requirements relating to applications for grants under this
subsection.
`(B) RULEMAKING- The establishment of requirements under subparagraph
(A) shall not require a rulemaking.
`(C) MINIMUM REQUIREMENTS- At a minimum, each application for a grant
under this subsection shall include--
`(i) a description of the geological disposal deployment project proposed
in the application;
`(ii) an estimate of the quantity of carbon dioxide to be geologically
disposed over the life of the geological disposal deployment project;
and
`(iii) a plan to collect and disseminate data relating to each geological
disposal deployment project to be funded by the grant.
`(5) PARTNERS- An applicant for a grant under this subsection may carry
out a geological disposal deployment project under a pilot program in
partnership with 1 or more public or private entities.
`(6) SELECTION CRITERIA- In evaluating applications under this subsection,
the Administrator shall--
`(A) consider the previous experience of each applicant with similar
projects; and
`(B) give priority consideration to applications for geological disposal
deployment projects that--
`(i) offer the greatest geological diversity from other projects that
have previously been approved;
`(ii) are located in closest proximity to a source of carbon dioxide;
`(iii) make use of the most affordable source of carbon dioxide;
`(iv) are expected to geologically dispose of the largest quantity
of carbon dioxide;
`(v) are combined with demonstrations of advanced coal electricity
generation technologies;
`(vi) demonstrate the greatest commitment on the part of the applicant
to ensure funding for the proposed demonstration project and the greatest
likelihood that the demonstration project will be maintained or expanded
after Federal assistance under this subsection is completed; and
`(vii) minimize any adverse environmental effects from the project.
`(A) IN GENERAL- A geological disposal deployment project funded by
a grant under this subsection shall begin construction not later than
3 years after the date on which the grant is provided.
`(B) TERM- The Administrator shall not provide grant funds to any applicant
under this subsection for a period of more than 5 years.
`(8) TRANSFER OF INFORMATION AND KNOWLEDGE- The Administrator shall establish
mechanisms to ensure that the information and knowledge gained by participants
in the program under this subsection are published and disseminated, including
to other applicants that submitted applications for a grant under this
subsection.
`(A) PUBLICATION- Not later than 180 days after the date of enactment
of this title, the Administrator shall publish in the Federal Register,
and elsewhere as appropriate, a request for applications to carry out
geological disposal deployment projects.
`(B) DATE FOR APPLICATIONS- An application for a grant under this subsection
shall be submitted not later than 180 days after the date of publication
of the request under subparagraph (A).
`(C) SELECTION- After the date by which applications for grants are
required to be submitted under subparagraph (B), the Administrator,
in a timely manner, shall select, after peer review and based on the
criteria under paragraph (6), those geological disposal deployment projects
to be provided a grant under this subsection.
`(b) Interim Standards- Not later than 3 years after the date of enactment
of this title, the Administrator, in consultation with the Secretary of
Energy, shall, by regulation, establish interim geological carbon dioxide
disposal standards that address--
`(2) permitting processes;
`(3) monitoring requirements;
`(4) public participation; and
`(5) such other issues as the Administrator and the Secretary of Energy
determine to be appropriate.
`(c) Final Standards- Not later than 6 years after the date of enactment
of this title, taking into account the results of geological disposal deployment
projects carried out under subsection (a), the Administrator shall, by regulation,
establish final geological carbon dioxide disposal standards.
`(d) Considerations- In developing standards under subsections (b) and (c),
the Administrator shall consider the experience in the United States in
regulating--
`(1) underground injection of waste;
`(2) enhanced oil recovery;
`(3) short-term storage of natural gas; and
`(4) long-term waste storage.
`(e) Termination of Authority- This section and the authority provided by
this section terminate on December 31, 2030.
`SEC. 711. RESEARCH AND DEVELOPMENT.
`(a) In General- The Administrator shall carry out a program to perform
and support research on global climate change standards and processes, with
the goals of--
`(1) providing scientific and technical knowledge applicable to the reduction
of global warming pollutants; and
`(2) facilitating implementation of section 704.
`(1) IN GENERAL- The Administrator shall carry out, directly or through
the use of contracts or grants, a global climate change standards and
processes research program.
`(A) CONTENTS AND PRIORITIES- The specific contents and priorities of
the research program shall be determined in consultation with appropriate
Federal agencies, including--
`(i) the National Oceanic and Atmospheric Administration;
`(ii) the National Aeronautics and Space Administration; and
`(iii) the Department of Energy.
`(B) TYPES OF RESEARCH- The research program shall include the conduct
of basic and applied research--
`(i) to develop and provide the enhanced measurements, calibrations,
data, models, and reference material standards necessary to enable
the monitoring of global warming pollution;
`(ii) to assist in establishing a baseline reference point for future
trading in global warming pollutants (including the measurement of
progress in emission reductions);
`(iii) for international exchange as scientific or technical information
for the stated purpose of developing mutually-recognized measurements,
standards, and procedures for reducing global warming pollution; and
`(iv) to assist in developing improved industrial processes designed
to reduce or eliminate global warming pollution.
`(3) ABRUPT CLIMATE CHANGE RESEARCH-
`(A) DEFINITION OF ABRUPT CLIMATE CHANGE- In this paragraph, the term
`abrupt climate change' means a change in climate that occurs so rapidly
or unexpectedly that humans or natural systems may have difficulty adapting
to the change.
`(B) RESEARCH- The Administrator shall carry out a program of scientific
research on potential abrupt climate change that is designed--
`(i) to develop a global array of terrestrial and oceanographic indicators
of paleoclimate in order to identify and describe past instances of
abrupt climate change;
`(ii) to improve understanding of thresholds and nonlinearities in
geophysical systems relating to the mechanisms of abrupt climate change;
`(iii) to incorporate those mechanisms into advanced geophysical models
of climate change; and
`(iv) to test the output of those models against an improved global
array of records of past abrupt climate changes.
`(c) Sense of the Senate- It is the sense of the Senate that Federal funds
for clean, low-carbon energy research, development, and deployment should
be increased by at least 100 percent for each year during the 10-year period
beginning on the date of enactment of this title.
`SEC. 712. ENERGY EFFICIENCY PERFORMANCE STANDARD.
`(a) Definitions- In this section:
`(1) ELECTRICITY SAVINGS-
`(A) IN GENERAL- The term `electricity savings' means reductions in
end-use electricity consumption relative to consumption by the same
customer or at the same new or existing facility in a given year, as
defined in regulations promulgated by the Administrator under subsection
(e).
`(B) INCLUSIONS- The term `savings' includes savings achieved as a result
of--
`(i) installation of energy-saving technologies and devices; and
`(ii) the use of combined heat and power systems, fuel cells, or any
other technology identified by the Administrator that recaptures or
generates energy solely for onsite customer use.
`(C) EXCLUSION- The term `savings' does not include savings from measures
that would likely be adopted in the absence of energy-efficiency programs,
as determined by the Administrator.
`(2) RETAIL ELECTRICITY SALES- The term `retail electricity sales' means
the total quantity of electric energy sold by a retail electricity supplier
to retail customers during the most recent calendar year for which that
information is available.
`(3) RETAIL ELECTRICITY SUPPLIER- The term `retail electricity supplier'
means a distribution or integrated utility, or an independent company
or entity, that sells electric energy to consumers.
`(b) Energy Efficiency Performance Standard- Each retail electricity supplier
shall implement programs and measures to achieve improvements in energy
efficiency and peak load reduction, as verified by the Administrator.
`(c) Targets- For calendar year 2008 and each calendar year thereafter,
the Administrator shall ensure that retail electric suppliers annually achieve
electricity savings and reduce peak power demand and electricity use by
retail customers by a percentage that is not less than the applicable target
percentage specified in the following table:
---------------------------------------------------------------------------------------------
`Calendar Year Reduction in peak demand Reduction in electricity use
---------------------------------------------------------------------------------------------
2008 .25 percent .25 percent
2009 .75 percent .75 percent
2010 1.75 percent 1.5 percent
2011 2.75 percent 2.25 percent
2012 3.75 percent 3.0 percent
2013 4.75 percent 3.75 percent
2014 5.75 percent 4.5 percent
2015 6.75 percent 5.25 percent
2016 7.75 percent 6.0 percent
2017 8.75 percent 6.75 percent
2018 9.75 percent 7.5 percent
2019 10.75 percent 8.25 percent
2020 and each calendar year thereafter 11.75 percent 9.0 percent
---------------------------------------------------------------------------------------------
`(d) Beginning Date- For the purpose of meeting the targets established
under subsection (c), electricity savings shall be calculated based on the
sum of--
`(1) savings realized as a result of actions taken by the retail electric
supplier during the specified calendar year; and
`(2) cumulative savings realized as a result of electricity savings achieved
in all previous calendar years (beginning with calendar year 2006).
`(e) Implementing Regulations-
`(1) IN GENERAL- Not later than 1 year after the date of enactment of
this title, the Administrator shall promulgate regulations to implement
the targets established under subsection (c).
`(2) REQUIREMENTS- The regulations shall establish--
`(A) a national credit system permitting credits to be awarded, bought,
sold, or traded by and among retail electricity suppliers;
`(B) a fee equivalent to not less than 4 cents per kilowatt hour for
retail energy suppliers that do not meet the targets established under
subsection (c); and
`(C) standards for monitoring and verification of electricity use and
demand savings reported by the retail electricity suppliers.
`(3) CONSIDERATION OF TRANSMISSION AND DISTRIBUTION EFFICIENCY- In developing
regulations under this subsection, the Administrator shall consider whether
savings, in whole or part, achieved by retail electricity suppliers by
improving the efficiency of electric distribution and use should be eligible
for credits established under this section.
`(f) Compliance With State Law- Nothing in this section shall supersede
or otherwise affect any State or local law requiring or otherwise relating
to reductions in total annual electricity consumption, or peak power consumption,
by electric consumers to the extent that the State or local law requires
more stringent reductions than those required under this section.
`(g) Voluntary Participation- The Administrator may--
`(1) pursuant to the regulations promulgated under subsection (e)(1),
issue a credit to any entity that is not a retail electric supplier if
the entity implements electricity savings; and
`(2) in a case in which an entity described in paragraph (1) is a nonprofit
or educational organization, provide to the entity 1 or more grants in
lieu of a credit.
`SEC. 713. RENEWABLE PORTFOLIO STANDARD.
`(1) IN GENERAL- The Administrator, in consultation with the Secretary
of Energy, shall promulgate regulations defining the types and sources
of renewable energy generation that may be carried out in accordance with
this section.
`(2) INCLUSIONS- In promulgating regulations under paragraph (1), the
Administrator shall include of all types of renewable energy (as defined
in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)))
other than energy generated from--
`(A) municipal solid waste;
`(B) wood contaminated with plastics or metals; or
`(b) Renewable Energy Requirement- Of the base quantity of electricity sold
by each retail electric supplier to electric consumers during a calendar
year, the quantity generated by renewable energy sources shall be not less
than the following percentages:
------------------------------------------------------------
------------------------------------------------------------
`Calendar year: Minimum annual percentage:
2008 through 2009 5
2010 through 2014 10
2015 through 2019 15
2020 and subsequent years 20
------------------------------------------------------------
`(c) Renewable Energy Credit Program- Not later than 1 year after the date
of enactment of this title, the Administrator shall establish--
`(1) a program to issue, establish the value of, monitor the sale or exchange
of, and track renewable energy credits; and
`(2) penalties for any retail electric supplier that does not comply with
this section.
`(d) Prohibition on Double Counting- A renewable energy credit issued under
subsection (c)--
`(1) may be counted toward meeting the requirements of subsection (b)
only once; and
`(2) shall vest with the owner of the system or facility that generates
the renewable energy that is covered by the renewable energy credit, unless
the owner explicitly transfers the renewable energy credit.
`(e) Sale Under Purpa Contract- If the Administrator, after consultation
with the Secretary of Energy, determines that a renewable energy generator
is selling electricity to comply with this section to a retail electric
supplier under a contract subject to section 210 of the Public Utilities
Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), the retail electric
supplier shall be treated as the generator of the electric energy for the
purposes of this title for the duration of the contract.
`(f) State Programs- Nothing in this section precludes any State from requiring
additional renewable energy generation under any State renewable energy
program.
`(g) Voluntary Participation- The Administrator may issue a renewable energy
credit pursuant to subsection (c) to any entity that is not subject to this
section only if the entity applying for the renewable energy credit meets
the terms and conditions of this section to the same extent as retail electric
suppliers subject to this section.
`SEC. 714. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION OF CARBON.
`(a) In General- Not later than 2 years after the date of enactment of title,
the Secretary of Agriculture, with the concurrence of the Administrator,
shall establish standards for accrediting certified reductions in the emission
of carbon dioxide through above-ground and below-ground biological sequestration
activities.
`(b) Requirements- The standards shall include--
`(1) a national biological carbon storage baseline or inventory; and
`(2) measurement, monitoring, and verification guidelines based on--
`(A) measurement of increases in carbon storage in excess of the carbon
storage that would have occurred in the absence of a new management
practice designed to achieve biological sequestration of carbon;
`(B) comprehensive carbon accounting that--
`(i) reflects sustained net increases in carbon reservoirs; and
`(ii) takes into account any carbon emissions resulting from disturbance
of carbon reservoirs in existence as of the date of commencement of
any new management practice designed to achieve biological sequestration
of carbon;
`(C) adjustments to account for--
`(i) emissions of carbon that may result at other locations as a result
of the impact of the new biological sequestration management practice
on timber supplies; or
`(ii) potential displacement of carbon emissions to other land owned
by the entity that carries out the new biological sequestration management
practice; and
`(D) adjustments to reflect the expected carbon storage over various
time periods, taking into account the likely duration of the storage
of carbon in a biological reservoir.
`(c) Updating of Standards- Not later than 3 years after the date of establishment
of the standards under subsection (a), and every 3 years thereafter, the
Secretary of Agriculture shall update the standards to take into account
the most recent scientific information.
`SEC. 715. GLOBAL WARMING POLLUTION REPORTING.
`(a) In General- Not later than 2 years after the date of enactment of this
title, and annually thereafter, any entity considered to be a major stationary
source (as defined in section 169A(g)) shall submit to the Administrator
a report describing the emissions of global warming pollutants from the
entity for the preceding calendar year.
`(b) Voluntary Reporting- An entity that is not described in subsection
(a) may voluntarily report the emissions of global warming pollutants from
the entity to the Administrator.
`(c) Requirements for Reports-
`(1) EXPRESSION OF MEASUREMENTS- Each global warming pollution report
submitted under this section shall express global warming pollution emissions
in--
`(A) metric tons of each global warming pollutant; and
`(B) metric tons of the carbon dioxide equivalent of each global warming
pollutant.
`(2) ELECTRONIC FORMAT- The information contained in a report submitted
under this section shall be reported electronically to the Administrator
in such form and to such extent as may be required by the Administrator.
`(3) DE MINIMIS EXEMPTION- The Administrator may specify the level of
global warming pollution emissions from a source within a facility that
shall be considered to be a de minimis exemption from the requirement
to comply with this section.
`(d) Public Availability of Information- Not later than March 1 of the year
after which the Administrator receives a report under this subsection from
an entity, and annually thereafter, the Administrator shall make the information
reported under this section available to the public through the Internet.
`(e) Protocols and Methods- The Administrator shall, by regulation, establish
protocols and methods to ensure completeness, consistency, transparency,
and accuracy of data on global warming pollution emissions submitted under
this section.
`(f) Enforcement- Regulations promulgated under this section may be enforced
pursuant to section 113 with respect to any person that--
`(1) fails to submit a report under this section; or
`(2) otherwise fails to comply with those regulations.
`SEC. 716. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES.
`(a) Definitions- In this section:
`(1) CLEAN ENERGY TECHNOLOGY- The term `clean energy technology' means
an energy supply or end-use technology that, over the lifecycle of the
technology and compared to a similar technology already in commercial
use in any developing country--
`(B) results in reduced emissions of global warming pollutants.
`(A) IN GENERAL- The term `developing country' means any country not
listed in Annex I of the United Nations Framework Convention on Climate
Change, done at New York on May 9, 1992.
`(B) INCLUSION- The term `developing country' may include a country
with an economy in transition, as determined by the Secretary.
`(3) TASK FORCE- The term `Task Force' means the Task Force on International
Clean, Low-Carbon Energy Cooperation established under subsection (b)(1).
`(1) ESTABLISHMENT- Not later than 90 days after the date of enactment
of this title, the President shall establish a task force to be known
as the `Task Force on International Clean, Low Carbon Energy Cooperation'.
`(2) COMPOSITION- The Task Force shall be composed of--
`(A) the Administrator and the Secretary of State, who shall serve jointly
as Co-Chairpersons; and
`(B) representatives, appointed by the head of the respective Federal
agency, of--
`(i) the Department of Commerce;
`(ii) the Department of the Treasury;
`(iii) the United States Agency for International Development;
`(iv) the Export-Import Bank;
`(v) the Overseas Private Investment Corporation;
`(vi) the Office of United States Trade Representative; and
`(vii) such other Federal agencies as are determined to be appropriate
by the President.
`(A) IN GENERAL- Not later than 1 year after the date of enactment of
this title, the Task Force shall develop and submit to the President
an initial strategy--
`(i) to support the development and implementation of programs and
policies in developing countries to promote the adoption of clean,
low-carbon energy technologies and energy-efficiency technologies
and strategies, with an emphasis on those developing countries that
are expected to experience the most significant growth in global warming
pollution emissions over the 20-year period beginning on the date
of enactment of this title; and
`(ii)(I) open and expand clean, low-carbon energy technology markets;
and
`(II) facilitate the export of that technology to developing countries.
`(B) SUBMISSION TO CONGRESS- On receipt of the initial strategy from
the Task Force under subparagraph (A), the President shall submit the
initial strategy to Congress.
`(2) FINAL STRATEGY- Not later than 2 years after the date of submission
of the initial strategy under paragraph (1), and every 2 years thereafter--
`(A) the Task Force shall--
`(i) review and update the initial strategy; and
`(ii) report the results of the review and update to the President;
and
`(B) the President shall submit to Congress a final strategy.
`(3) PERFORMANCE CRITERIA- The Task Force shall develop and submit to
the Administrator performance criteria for use in the provision of assistance
under this section.
`(d) Provision of Assistance- The Administrator may--
`(1) provide assistance to developing countries for use in carrying out
activities that are consistent with the priorities established in the
final strategy; and
`(2) establish a pilot program that provides financial assistance for
qualifying projects (as determined by the Administrator) in accordance
with--
`(A) the final strategy submitted under subsection (c)(2)(B); and
`(B) any performance criteria developed by the Task Force under subsection
(c)(3).
`SEC. 717. PARAMOUNT INTEREST WAIVER.
`(a) In General- If the President determines that a national security emergency
exists and, in light of information that was not available as of the date
of enactment of this title, that it is in the paramount interest of the
United States to modify any requirement under this title to minimize the
effects of the emergency, the President may, after opportunity for public
notice and comment, temporarily adjust, suspend, or waive any regulations
promulgated pursuant to this title to achieve that minimization.
`(b) Consultation- In making an emergency determination under subsection
(a), the President shall, to the maximum extent practicable, consult with
and take into account any advice received from--
`(2) the Secretary of Energy; and
`(c) Judicial Review- An emergency determination under subsection (a) shall
be subject to judicial review under section 307.
`SEC. 718. EFFECT ON OTHER LAW.
`(1) affects the ability of a State to take State actions to further limit
climate change (except that section 209 shall apply to standards for vehicles);
and
`(2) except as expressly provided in this title--
`(A) modifies or otherwise affects any requirement of this Act in effect
on the day before the date of enactment of this title; or
`(B) relieves any person of the responsibility to comply with this Act.'.
SEC. 3. RENEWABLE CONTENT OF GASOLINE.
Section 211(o) of the Clean Air Act (as amended by section 1501 of the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 1067)) is amended--
(A) by redesignating subparagraph (B) as subparagraph (E); and
(B) by inserting after subparagraph (A) the following:
`(B) LOW-CARBON RENEWABLE FUEL- The term `low-carbon renewable fuel'
means renewable fuel the use of which, on a full fuel cycle, per-mile
basis, and as compared with the use of gasoline, achieves a reduction
in global warming pollution emissions of 75 percent or more.'; and
(A) in subparagraph (A)(i), by inserting `and low-carbon renewable fuel'
after `renewable fuel'; and
(B) in subparagraph (B)--
(i) in clause (iv), by striking `(iv) MINIMUM APPLICABLE VOLUME- For
the purpose of subparagraph (A), the applicable volume' and inserting
the following:
`(iv) MINIMUM APPLICABLE VOLUME OF RENEWABLE FUEL- For the purpose
of subparagraph (A), the minimum applicable volume of renewable fuel';
and
(ii) by adding at the end the following:
`(v) MINIMUM APPLICABLE VOLUME OF LOW-CARBON RENEWABLE FUEL- For the
purpose of subparagraph (A), the minimum applicable volume of low-carbon
renewable fuel for calendar year 2015 and each calendar year thereafter
shall be 5,000,000,000 gallons.'.
SEC. 4. ENFORCEMENT AND JUDICIAL REVIEW.
(a) Federal Enforcement- Section 113 of the Clean Air Act (42 U.S.C. 7413)
is amended--
(1) in subsection (a)(3), by striking `or title VI,' and inserting `title
VI, or title VII,';
(2) in subsection (b)(2), by striking `or title VI,' and inserting `title
VI, or title VII,';
(A) in the first sentence of paragraph (1), by striking `or title VI
(relating to stratospheric ozone control),' and inserting `title VI
(relating to stratospheric ozone control), or title VII (relating to
global warming pollution emission reductions),'; and
(B) in the first sentence of paragraph (3), by striking `or VI' and
inserting `VI, or VII';
(4) in subsection (d)(1)(B), by striking `or VI' and inserting `VI, or
VII'; and
(5) in the first sentence of subsection (f), by striking `or VI' and inserting
`VI, or VII'.
(b) Establishment of Standards- Section 202 of the Clean Air Act (42 U.S.C.
7521) is amended--
(1) by redesignating the second subsection (f) (as added by section 207(b)
of Public Law 101-549 (104 Stat. 2482)) as subsection (n); and
(2) by inserting after subsection (n) (as redesignated by paragraph (1))
the following:
`(o) Global Warming Pollution Emission Reductions-
`(1) IN GENERAL- Not later than January 1, 2010, the Administrator shall
promulgate regulations in accordance with subsection (a) and section 707
to require manufacturers of motor vehicles to meet the vehicle emission
standards established under subsections (a) and (b) of section 707.
`(2) EFFECTIVE DATE- The regulations promulgated under paragraph (1) shall
take effect with respect to motor vehicles sold by a manufacturer beginning
in model year 2016.'.
(c) Administrative Proceedings and Judicial Review- Section 307 of the Clean
Air Act (42 U.S.C. 7607) is amended--
(1) in subsection (b)(1)--
(A) in the first sentence--
(i) by striking `section 111,,' and inserting `section 111,'; and
(ii) by inserting `any emission standard or requirement issued pursuant
to title VII,' after `under section 120,'; and
(B) in the second sentence, by striking `section 112,,' and inserting
`section 112,'; and
(2) in subsection (d)(1)--
(A) in subparagraph (T), by striking `, and' at the end;
(B) in subparagraph (U), by striking the period at the end and inserting
`; and'; and
(C) by adding at the end the following:
`(V) the promulgation or revision of any regulation under title VII (relating
to global warming pollution).'.
SEC. 5. FEDERAL FLEET FUEL ECONOMY.
Section 32917 of title 49, United States Code, is amended by adding at the
end the following:
`(A) IN GENERAL- Except as provided in subparagraph (B), each passenger
vehicle purchased, or leased for a period of at least 60 consecutive
days, by an Executive agency after the date of enactment of this paragraph
shall be as fuel-efficient as practicable.
`(B) WAIVER- In an emergency situation, an Executive agency may submit
to Congress a written request for a waiver of the requirement under
paragraph (1).'.
SEC. 6. INTERNATIONAL NEGOTIATIONS AND TRADE RESTRICTIONS.
It is the sense of the Senate that the United States should act to reduce
the health, environmental, economic, and national security risks posed by
global climate change, and foster sustained economic growth through a new
generation of technologies, by--
(1) participating in negotiations under the United Nations Framework Convention
on Climate Change, done at New York May 9, 1992, and leading efforts in
other international forums, with the objective of securing participation
of the United States in agreements that--
(A) advance and protect the economic and national security interests
of the United States;
(B) establish mitigation commitments by all countries that are major
emitters of global warming pollution, in accordance with the principle
of `common but differentiated responsibilities';
(C) establish flexible international mechanisms to minimize the cost
of efforts by participating countries; and
(D) achieve a significant long-term reduction in global warming pollution
emissions; and
(2) establishing a bipartisan Senate observation group, the members of
which should be designated by the Chairman and Ranking Member of the Committee
on Foreign Relations of the Senate, and which should include the Chairman
and Ranking Member of the Committee on Environment and Public Works of
the Senate--
(A) to monitor any international negotiations on climate change; and
(B) to ensure that the advice and consent function of the Senate is
exercised in a manner to facilitate timely consideration of any applicable
treaty submitted to the Senate.
SEC. 7. REPORT ON TRADE AND INNOVATION EFFECTS.
Not later than 2 years after the date of enactment of this Act, and annually
thereafter, the Secretary of Commerce, in consultation with the United States
Trade Representative, the Secretary of the Treasury, the Secretary of Agriculture,
the Secretary of Energy, and the Administrator of the Environmental Protection
Agency (referred to in this section as the `Secretary'), shall prepare and
submit to Congress a report on the trade, economic, and technology innovation
effects of the failure of the United States to adopt measures that require
or result in a reduction in total global warming pollution emissions in
the United States, in accordance with the goals for the United States under
the United Nations Framework Convention on Climate Change, done at New York
on May 9, 1992.
SEC. 8. CLIMATE CHANGE IN ENVIRONMENTAL IMPACT STATEMENTS.
In any case in which a Federal agency prepares an environmental impact statement
or similar analysis required under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.), the Federal agency shall consider and
evaluate--
(1) the impact that the Federal action or project necessitating the statement
or analysis would have in terms of net changes in global warming pollution
emissions; and
(2) the ways in which climate changes may affect the action or project
in the short term and the long term.
SEC. 9. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE CHANGE RISKS.
(a) Regulations- Not later than 2 years after the date of enactment of this
Act, the Securities and Exchange Commission (referred to in this section
as the `Commission') shall promulgate regulations in accordance with section
13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) directing each
issuer of securities under that Act to inform securities investors of the
risks relating to--
(1) the financial exposure of the issuer because of the net global warming
pollution emissions of the issuer; and
(2) the potential economic impacts of global warming on the interests
of the issuer.
(b) Uniform Format for Disclosure- In carrying out subsection (a), the Commission
shall enter into an agreement with the Financial Accounting Standards Board,
or another appropriate organization that establishes voluntary standards,
to develop a uniform format for disclosing to securities investors information
on the risks described in subsection (a).
(c) Interim Interpretive Release-
(1) IN GENERAL- As soon as practicable after the date of enactment of
this Act, the Commission shall issue an interpretive release clarifying
that under items 101 and 303 of Regulation S-K of the Commission under
part 229 of title 17, Code of Federal Regulations (as in effect on the
date of enactment of this Act)--
(A) the commitments of the United States to reduce emissions of global
warming pollution under the United Nations Framework Convention on Climate
Change, done at New York on May 9, 1992, are considered to be a material
effect; and
(B) global warming constitutes a known trend.
(2) PERIOD OF EFFECTIVENESS- The interpretive release issued under paragraph
(1) shall remain in effect until the effective date of the final regulations
promulgated under subsection (a).
END
