108th CONGRESS
1st Session
H. R. 1245
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 sectors concerning, and encourage voluntary reductions in, greenhouse
gas emissions.
IN THE HOUSE OF REPRESENTATIVES
March 12, 2003
Mr. OLVER (for himself, Mr. GILCHREST, Mrs. JOHNSON of Connecticut, Mr. UDALL
of Colorado, Mr. SHAYS, Ms. WOOLSEY, Mr. MARKEY, Mr. WAXMAN, Mr. INSLEE, Mr.
HINCHEY, Mr. DELAHUNT, Mr. FARR, Mr. FRANK of Massachusetts, Mr. HONDA, Mr.
MORAN of Virginia, Mr. WEXLER, Mr. GEORGE MILLER of California, Ms. SCHAKOWSKY,
Mrs. DAVIS of California, Mr. STARK, Ms. SOLIS, Mr. SANDERS, Ms. MCCOLLUM, Mr.
MCDERMOTT, Mr. BLUMENAUER, Ms. BALDWIN, Mr. KUCINICH, Ms. NORTON, Ms. DELAURO,
Mr. ABERCROMBIE, Ms. EDDIE BERNICE JOHNSON of Texas, Ms. BORDALLO, Mr. ALLEN,
Mr. WALSH, Mr. NEAL of Massachusetts, Mr. BERMAN, Mrs. CAPPS, Mr. VAN HOLLEN,
and Mr. CARDIN) introduced the following bill; which was referred to the Committee
on Energy and Commerce
A BILL
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 sectors 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 Act
of 2003'.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS- Congress finds the following:
(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,
including fossil fuel-generated carbon dioxide emissions.
(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.
(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.
(5) Assurances that early action to reduce greenhouse gases will not be penalized
in any future emission reduction program would encourage more companies and
other entities to make investments to reduce those emissions.
(6) The United States has ratified the UNFCCC (United Nations Framework Convention
on Climate Change), which states, in part, `the Parties to the Convention
are to implement policies with the aim of returning to their 1990 levels anthropogenic
emissions of carbon dioxide and other greenhouse gases.
(7) According to the Department of Energy's Energy Information Administration,
United States anthropogenic greenhouse gas emissions increased by 13.6 percent
between 1990 and 2000.
(8) Global climate change poses a significant threat to national security,
the American economy, public health and welfare, and the global environment.
(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) will avoid penalizing early action to reduce emissions by providing assurances
that any future emission reduction program--
(A) will not assign emissions control responsibility by reference to an
entity's emissions during a baseline period; or
(B) if a baseline period is used will not use a period ending later than
the first year for which emissions reporting is required under this Act.
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.
`(1) CARBON DIOXIDE EQUIVALENT- The term `carbon dioxide equivalent' means,
for each greenhouse gas, the amount of each such greenhouse
gas that makes the same contribution to global warming as one metric ton of
carbon dioxide.
`(2) DIRECT EMISSIONS- The term `direct emissions' means greenhouse gas emissions
from sources that are owned or controlled by the reporting entity
`(3) DOE LISTED PRODUCT- The term `DOE listed product' means a product for
which the Secretary of Energy has published a final rule establishing a standard
for energy conservation, energy efficiency, maximum energy use, thermal efficiency,
fuel utilization efficiency, or energy consumption, or any similar standard,
including standards authorized under section 325 of the Energy Policy and
Conservation Act of 1975 (42 U.S.C. 6295).
`(4) EMISSIONS- The term `emissions' includes any of the following:
`(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 equipment leaks such as joints, seals, packing, and gaskets,
or from piles, pits, cooling towers, and other similar sources.
`(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.
`(5) ENTITY- The term `entity' means a person (including a firm, a corporation,
an association, a partnership, a Federal, state, or local governmental agency
or any other public or private entity) located in or operating in the United
States.
`(6) FACILITY- The term `facility' means all sources located on any one or
more of contiguous or adjacent property or properties under common ownership
or control of the same entity.
`(7) GREENHOUSE GAS- The term `greenhouse gas' means--
`(F) sulfur hexafluoride; and
`(G) any other chemical or physical substance not controlled under title
VI of this Act which is emitted into the air and which the Administrator
determines, by rule, may reasonably be anticipated to cause or contribute
to global warming.
`(8) GREENHOUSE GAS EMISSIONS- The term `greenhouse gas emissions' means emissions
of a greenhouse gas from any source located in the United States.
`(9) GREENHOUSE GAS EMISSIONS RECORD- The term `greenhouse gas emissions record'
means all of the greenhouse gas reports submitted by an entity under this
title, including any adjustments to such data under section 703(c).
`(10) GREENHOUSE GAS REPORT- The term `greenhouse gas report' means an annual
list of--
`(A) the direct greenhouse gas emissions of a reporting entity,
`(B) the indirect greenhouse gas emissions of a reporting entity,
`(C) greenhouse gas emissions from products manufactured or imported by
the reporting entity.
`(D) emissions of greenhouse gases manufactured or imported by the reporting
entity, and
`(E) greenhouse gas emissions from the combustion of fossil fuels distributed
by the reporting entity
and the sources of those emissions.
`(11) INDIRECT EMISSIONS- The term `indirect emissions' means greenhouse gas
emissions--
`(A) associated with the production of electricity, heat, or steam acquired
or purchased by the reporting entity, and
`(B) that are the consequence of activities of reporting entity but are
emitted by sources owned or controlled by an entity other than the reporting
entity.
`(12) NATIONAL GREENHOUSE GAS EMISSIONS INFORMATION SYSTEM- The term `national
greenhouse gas emissions information system' means the information system
established under section 702(a).
`(13) NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY- The term `national greenhouse
gas emissions inventory' means the national inventory of greenhouse gas emissions
established under section 704.
`(14) PROJECT REDUCTION- The term `project reduction' means--
`(A) a greenhouse gas emission reduction achieved by carrying out a greenhouse
gas emission reduction project in the United States, provided that the emissions
reduction did not occur at a source included in the greenhouse gas report
of any reporting entity; and
`(B) sequestration achieved by carrying out a sequestration project in the
United States, provided that the sequestration did not occur at a site included
in the greenhouse gas report of any reporting entity.
`(15) REPORTING ENTITY- The term `reporting entity' means an entity that reports
to the Administrator under section 703.
`(16) SEQUESTRATION- The term `sequestration' means the capture, 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.
`(17) SOURCE- The term `source' means any building, structure, installation,
unit, point, operation, vehicle, land area, or other item that emits or may
emit a greenhouse gas.
`(18) 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
703(a), including a national greenhouse gas reduction registry to collect information
reported under section 703(a)(7).
`(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 disclose information vital to national security.
Emission data, including data relating to project reductions, shall have the
same meaning as in section 114 of title I of this Act and regulations promulgated
thereunder prior to the date of enactment of this title.
`(d) RELATIONSHIP TO OTHER GREENHOUSE GAS DATABASES- To the extent practicable,
the Administrator shall ensure coordination between the national greenhouse
gas emissions information system and existing and developing Federal and State
greenhouse gas databases and registries. Nothing in this title shall alter any
existing requirements for reporting of greenhouse gas emissions data or other
data relevant to calculating such emissions.
`(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. REPORTING.
`(a) MANDATORY REPORTING OF GREENHOUSE GAS EMISSIONS-
`(1) IN GENERAL- Not later than April 30 of each year after the date of enactment
of this title, in accordance with this paragraph and the regulations promulgated
under section 705, each entity that exceeds the threshold for reporting in
paragraph (2) shall submit to the Administrator, for inclusion in the national
greenhouse gas emissions information system, the greenhouse gas report of
the entity with respect to the preceding calendar year. Once an entity has
exceeded the threshold for reporting, it shall continue to submit reports
for subsequent years.
`(2) THRESHOLD FOR REPORTING- (A) An entity shall submit a report under paragraph
(1) for greenhouse gas emissions if in the relevant calendar year--
`(i) one of the following exceeds 10,000 metric tons of carbon dioxide equivalent:
`(I) The total direct emissions of the entity.
`(II) The total indirect emissions of the reporting entity.
`(III) The total emissions from the combustion of fossil fuels distributed
by the entity.
`(IV) The total quantity of greenhouse gases manufactured or imported
by the reporting entity, or
`(ii) the entity either--
`(I) is a major industrial manufacturer or importer of motor vehicles,
or
`(II) manufactures or imports DOE listed products.
`(B) Farms shall not be required to submit reports under this section.
`(C) An entity that owns more than 250,000 acres of timberland shall report
on the carbon stock of such land as provided in paragraph (4)(E) of this subsection.
The Administrator may adjust the 10,000 metric ton threshold set forth in this
paragraph to a higher threshold if the Administrator determines that the reports
under this paragraph at such higher threshold will include at least 90 percent
of greenhouse gas emissions.
`(A) SEPARATE REPORTING- Each greenhouse gas report submitted under paragraph
(1) shall include and separately quantify each of the following:
`(i) All direct emissions of greenhouse gases.
`(ii) All indirect emissions of greenhouse gases.
`(iii) All emissions of greenhouse gases from motor vehicles manufactured
or imported by the entity.
`(iv) All emissions of greenhouse gases from DOE listed products manufactured
or imported by the reporting entity.
`(v) All emissions of greenhouse gases from the combustion of fossil fuels
distributed by the entity.
`(vi) All emissions of greenhouse gases manufactured or imported by the
reporting entity.
`(B) OTHER REPORTING REQUIREMENTS- Each greenhouse gas report under paragraph
(1)--
`(i) shall express greenhouse gas emissions in metric tons of each such
greenhouse gas and in metric tons of the carbon dioxide equivalent of each
greenhouse gas;
`(ii) shall be reported on an entity wide basis and on a facility wide
basis;
`(iii) shall specify the sources of direct emissions at each facility
included in the greenhouse gas report;
`(iv) in the case of a reporting entity that owns more than 250,000 acres
of timberland, shall include estimates, by State, of the timber and carbon
stocks of such land, which estimates shall be updated at least every 5
years; and
`(v) to the maximum extent practicable, shall be reported electronically
to the Administrator in such form as the Administrator may require.
`(4) METHOD OF REPORTING OF ENTITY WIDE EMISSIONS, PRODUCTION, OR IMPORTATION-
Under paragraph (1)(C), entity wide emissions, production, or importation
of greenhouse gases shall be reported on the bases of financial control and
equity share in a manner consistent with the financial reporting practices
of the entity. If ownership or control of a facility (or portion thereof)
whose emissions were included in a prior report under this section is transferred
to another entity, then any entity subsequently having ownership or control
of such facility shall submit a greenhouse gas report regarding the transferred
facility, even if such entity does not otherwise exceed the threshold for
reporting under paragraph (2).
`(5) VOLUNTARY REPORTING OF EARLIER EMISSIONS- Any entity may submit to the
Administrator, for inclusion in the national greenhouse gas emissions information
system, a greenhouse gas report for the entity with respect to one or more
years prior to 2003, provided that such report substantially meets the data
quality requirements for reports required for 2003 and thereafter.
`(6) VOLUNTARY REPORTING BY OTHER ENTITIES- Any entity that does not exceed
the threshold for reporting under paragraph (2) may elect to submit a greenhouse
gas report under paragraph (1). Such an entity shall be a reporting entity
from that time forward.
`(7) VOLUNTARY REPORTING OF PROJECT REDUCTIONS- Any entity may voluntarily
submit to the Administrator, for inclusion in a registry maintained within
the national greenhouse gas information system, a report with respect to the
preceding calendar year on any project reductions, provided that the emissions
or sequestrations associated with such project reductions are not included
in the greenhouse gas emissions report submitted to the Administrator by any
reporting entity. The reporting entity shall demonstrate that the project
and its reported reductions or sequestrations would not have occurred anyway
in the business-as-usual case, and shall account for any changes in emissions
outside boundaries of the project. Each report shall provide such further
information on the emission reduction or carbon sequestration project as required
by regulations promulgated by the Administrator under section 705(e). If the
project reductions are associated with a farm or forestland owned or operated
by an entity, the entity shall account for all emissions and reductions on
all farmland or forestland under ownership or control of the entity.
`(8) VOLUNTARY REPORTING OF OTHER INDIRECT PRODUCT EMISSIONS- Any entity may
voluntarily submit to the Administrator, for inclusion in a registry maintained
within the national greenhouse gas information system, a report with respect
to any calendar year on indirect emissions from any product manufactured by
that entity for which a report is not required under clause (iii) of subsection
(a)(3)(A).
`(1) 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.
`(2) 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.
`(c) 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, including a mechanism by which a reporting entity may, at its
option, electronically transfer information from its data system to the
national greenhouse gas emissions information system; 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 subsections
(c), (d), and (e) of section 705.
`(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.
`(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
(c)(1)(C), that the greenhouse gas report of the reporting entity has been
accurately reported.
`(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).
`(3) CERTIFICATION OF REPORTS- Each report submitted by a reporting entity
shall include an appropriate certification, signed by a senior official with
management responsibility for the person or persons completing the report,
regarding the accuracy and completeness of the report.
`(e) ENFORCEMENT- The Administrator may bring a civil action in United States
district court against an entity that fails to comply with a requirement of
this section, or a regulation promulgated under section 705, to impose a civil
penalty of not more than $25,000 for each day that the failure to comply continues.
`SEC. 704. NATIONAL GREENHOUSE GAS EMISSIONS INVENTORY.
`(a) IN GENERAL- Not later than April 30 of each year after the date of enactment
of this title, 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.
If total direct emissions reported in a given year are reduced in comparison
with the amount reported in the preceding year, the analysis referred to in
paragraph (2) shall include a detailed assessment of what proportion of such
reduction is a consequence of activities by entities that reported reductions
in indirect emissions.
`(b) ENERGY STAR COMPARISONS- The Administrator shall include in the analysis
under subsection (a)(2) a comparison of the indirect emissions associated with
each manufactured product for which a report is required under clause (iii)
of section 703(a)(3)(A) and the indirect emissions of comparable products entitled
to the Administrator's Energy Star label.
`SEC. 705. 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 one
year after the date of enactment of this title, the Administrator shall promulgate
such regulations as are necessary to establish the national greenhouse gas emissions
information system.
`(d) MANDATORY REPORTING REQUIREMENTS- Not later than one year after the date
of enactment of this title, the Administrator shall promulgate such regulations
as are necessary to implement the mandatory reporting requirements under section
703(a)(1).
`(e) VOLUNTARY REPORTING PROVISIONS- Not later than two years after the date
of enactment of this title, the Administrator shall promulgate such regulations
and issue such guidance as are necessary to implement the voluntary reporting
provisions under paragraphs (5) through (7) of section 703(a).
`(f) ADJUSTMENT FACTORS- Not later than two years after the date of enactment
of this title, the Administrator shall promulgate such regulations as are necessary
to implement the adjustment factors under section 703(b).'.
END
