S.Amdt. 2027

TEXT OF AMENDMENTS

SA 2025. Mrs. BOXER (for herself, Mrs. Clinton, and Mr. Dayton)
proposed an amendment to the bill H.R. 1904, to improve the capacity of
the Secretary of Agriculture and the Secretary of the Interior to plan
and conduct hazardous fuels reduction projects on National Forest
System lands and Bureau of Land Management lands aimed at protecting
communities, watersheds, and certain other at-risk lands from
catastrophic wildfire, to enhance efforts to protect watersheds and
address threats to forest and rangeland health, including catastrophic
wildfire, across the landscape, and for other purposes; as follows:

At the appropriate place, insert the following:

TITLE   . FIREFIGHTERS MEDICAL MONITORING ACT

SEC.   1. SHORT TITLE.

This Title shall be referred to as the ``Firefighters
Medical Monitoring Act of 2003''.

SECTION   2. MONITORING OF FIREFIGHTERS IN DISASTER AREAS.

(a) In General.--The National Institute for Occupational
Safety and Health shall monitor the long-term medical health
of those firefighters who fought fires in any area declared a
disaster area by the Federal Government.
(b) Health Monitoring.--The long-term health monitoring
referred to in subsection (a) shall include, but not be
limited to, pulmonary illness, neurological damage, and
cardiovascular damage, and shall utilize the medical
expertise in the local areas affected.
(c) Authorization.--To carry out this Title, there are
authorized to be appropriated such sums as may be necessary
in each of fiscal years 2004 through 2008.
______

SA 2026. Mrs. BOXER (for herself and Mrs. Clinton) proposed an
amendment to the bill H.R. 1904, to improve the capacity of the
Secretary of Agriculture and the Secretary of the Interior to plan and
conduct hazardous fuels reduction projects on National Forest System
lands and Bureau of Land Management lands aimed at protecting
communities, watersheds, and certain other at-risk lands from
catastrophic wildfire, to enhance efforts to protect watersheds and
address threats to forest and rangeland health, including catastrophic
wildfire, across the landscape, and for other purposes; as follows:

[[Page S13522]]

At the appropriate place, insert the following:

TITLE   . DISASTER AIR QUALITY MONITORING ACT

SEC.   1. SHORT TITLE.

This Title shall be referred to as the ``Disaster Air
Quality Monitoring Act of 2003''.

SECTION   2. MONITORING OF AIR QUALITY IN DISASTER AREAS.

(a) In General.--No later than six (6) months after the
enactment of this legislation, the Environmental Protection
Agency shall provide each of its regional offices a mobile
air pollution monitoring network to monitor the emissions of
hazardous air pollutants in areas declared a disaster as
referred to in subsection (b), and publish such information
on a daily basis on its web site and in other forums, until
such time as the Environmental Protection Agency has
determined that the danger has subsided.
(b) The areas referred to in subsection (a) are those areas
declared a disaster area by the Federal Government.
(c) The monitoring referred to in subsection (a) shall
include the continuous and spontaneous monitoring of
hazardous air pollutants, as defined in the Public Law 95-95
section 112(b).
(d) Authorization.--To carry out this Title, there are
authorized to be appropriated $8,000,000.
______

SA 2027. Mr. CORZINE (for himself, Mr. Lautenberg, Mr. Dodd, Mr.
Schumer, Mrs. Clinton, and Mr. Lieberman) submitted an amendment
intended to be proposed by him to the bill H.R. 1904, to improve the
capacity of the Secretary of Agriculture and the Secretary of the
Interior to plan and conduct hazardous fuels reduction projects on
National Forest System lands and Bureau of Land Management lands aimed
at protecting communities, watersheds, and certain other at-risk lands
from catastrophic wildfire, to enhance efforts to protect watersheds
and address threats to forest and rangeland health, including
catastrophic wildfire, across the landscape, and for other purposes;
which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE XX--HIGHLANDS STEWARDSHIP AREA

SECTION XX01. SHORT TITLE.

This title may be cited as the ``Highlands Stewardship Area
Act''.

SEC. XX02. FINDINGS.

Congress finds that--
(1) the Highlands region is a physiographic province that
encompasses more than 2,000,000 acres extending from eastern
Pennsylvania through the States of New Jersey and New York to
northwestern Connecticut;
(2) the Highlands region is an environmentally unique area
that--
(A) provides clean drinking water to more than 15,000,000
people in metropolitan areas in the States of Connecticut,
New Jersey, New York, and Pennsylvania;
(B) provides critical wildlife habitat, including habitat
for 247 threatened and endangered species;
(C) maintains an important historic connection to early
Native American culture, colonial settlement, the American
Revolution, and the Civil War;
(D) contains recreational resources for 14,000,000 visitors
annually; and
(E) provides other significant ecological, natural,
tourism, recreational, educational, and economic benefits;
(3) an estimated 1 in 12 citizens of the United States live
within a 2-hour drive of the Highlands region;
(4) more than 1,400,000 people live in the Highlands
region;
(5) the Highlands region forms a greenbelt adjacent to the
Philadelphia-New York City-Hartford urban corridor that
offers the opportunity to preserve water, forest and
agricultural resources, wildlife habitat, recreational areas,
and historic sites while encouraging sustainable economic
growth and development in a fiscally and environmentally
sound manner;
(6) continued population growth and land use patterns in
the Highlands region--
(A) reduce the availability and quality of water;
(B) reduce air quality;
(C) fragment the forests;
(D) destroy critical migration corridors and forest
habitat; and
(E) result in the loss of recreational opportunities and
scenic, historic, and cultural resources;
(7) the water, forest, wildlife, recreational,
agricultural, and cultural resources of the Highlands region,
in combination with the proximity of the Highlands region to
the largest metropolitan areas in the United States, make the
Highlands region nationally significant;
(8) the national significance of the Highlands region has
been documented in--
(A) the New York-New Jersey Highlands Regional Study
conducted by the Forest Service in 1990;
(B) the New York-New Jersey Highlands Regional Study: 2002
Update conducted by the Forest Service;
(C) the bi-State Skylands Greenway Task Force Report;
(D) the New Jersey State Development and Redevelopment
Plan;
(E) the New York State Open Space Conservation Plan;
(F) the Connecticut Green Plan: Open Space Acquisition
fiscal year 2001-2006;
(G) the open space plans of the State of Pennsylvania; and
(H) other open space conservation plans for States in the
Highlands region;
(9) the Highlands region includes or is adjacent to
numerous parcels of land owned by the Federal Government or
federally designated areas that protect, conserve, restore,
promote, or interpret resources of the Highlands region,
including--
(A) the Wallkill River National Wildlife Refuge;
(B) the Shawanagunk Grasslands Wildlife Refuge;
(C) the Morristown National Historical Park;
(D) the Delaware and Lehigh Canal Corridors;
(E) the Hudson River Valley National Heritage Area;
(F) the Delaware River Basin;
(G) the Delaware Water Gap National Recreation Area;
(H) the Upper Delaware Scenic and Recreational River;
(I) the Appalachian National Scenic Trail;
(J) the United States Military Academy at West Point, New
York;
(K) the Highlands National Millenium Trail;
(L) the Picatinny Arsenal, New Jersey;
(M) the Great Swamp National Wildlife Refuge;
(N) the proposed Crossroads of the Revolution National
Heritage Area;
(O) the proposed Musconetcong National Scenic and
Recreational River in New Jersey; and
(P) the Farmington River Wild and Scenic Area in
Connecticut;
(10) it is in the interest of the United States to protect,
conserve, and restore the resources of the Highlands region
for the residents of, and visitors to, the Highlands region;
(11) the States of Connecticut, New Jersey, New York, and
Pennsylvania and units of local government in the Highlands
region have the primary responsibility for protecting,
conserving, preserving, restoring and promoting the resources
of the Highlands region; and
(12) because of the longstanding Federal practice of
assisting States in creating, protecting, conserving, and
restoring areas of significant natural and cultural
importance, and the national significance of the Highlands
region, the Federal Government should, in partnership with
the Highlands States and units of local government in the
Highlands region, protect, restore, and preserve the water,
forest, agricultural, wildlife, recreational, and cultural
resources of the Highlands region.

SEC. XX03. PURPOSES.

The purposes of this title are--
(1) to recognize--
(A) the importance of the water, forest, agricultural,
wildlife, recreational, and cultural resources of the
Highlands; and
(B) the national significance of the Highlands region to
the United States;
(2) to authorize the Secretary of the Interior to work in
partnership with the Secretary of Agriculture to provide
financial assistance to the Highlands States to preserve and
protect high priority conservation land in the Highlands
region; and
(3) to continue the ongoing Forest Service programs in the
Highlands region to assist the Highlands States, units of
local government, and private forest and farm landowners in
the conservation and stewardship of the land and natural
resources in the Highlands region.

SEC. XX04. DEFINITIONS.

In this title:
(1) Highlands region.--The term ``Highlands region'' means
the physiographic province, defined by the Reading Prong and
ecologically similar adjacent upland areas, that encompasses
more than 2,000,000 acres extending from eastern Pennsylvania
through the States of New Jersey and New York to northwestern
Connecticut.
(2) Highlands state.--The term ``Highlands State'' means--
(A) the State of Connecticut;
(B) the State of New Jersey;
(C) the State of New York;
(D) the State of Pennsylvania; and
(E) any agency or department of any of those States
(including the Palisades Interstate Park Commission).
(3) Highlands stewardship area.--The term ``Highlands
Stewardship Area'' means the stewardship area designated
under section XX05.
(4) Land conservation partnership project.--The term ``land
conservation partnership project'' means a project in which a
Highlands State acquires from a willing seller land or an
interest in land in the Highlands Stewardship Area for the
purpose of permanently protecting, conserving, or preserving
the land or interest in the land through a partnership with
the Federal Government.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(6) Study.--The term ``study'' means the New York-New
Jersey Highlands Regional Study conducted by the Forest
Service in 1990.
(7) Update.--The term ``update'' means the New York-New
Jersey Highlands Regional Study: 2002 Update conducted by the
Forest Service.

[[Page S13523]]

SEC. XX05. DESIGNATION OF HIGHLANDS STEWARDSHIP AREA.

(a) Designation.--The Secretary and Secretary of the
Interior may designate the Highlands Stewardship Area, to be
composed of portions of the region identified by the Forest
Service as having high conservation values.
(b) Consultation and Resource Analyses.--In designating the
Highlands Stewardship Area, the Secretary and the Secretary
of the Interior shall--
(1) consult with the Governors of the Highlands States and
units of local government; and
(2) use the study, the update, and any additional studies
conducted by the Forest Service in the Highlands region.

SEC. XX06. LAND CONSERVATION PARTNERSHIP PROJECTS.

(a) In General.--Annually, the Governors of the Highlands
States, with input from interested units of local government
and the public, may jointly identify land conservation
partnership projects within the Highlands Stewardship Area
that shall be submitted to the Secretary of the Interior for
consideration under subsection (b).
(b) Designation of Projects.--From among the projects
submitted under subsection (a), the Secretary of the
Interior, in consultation with the Secretary, shall
annually--
(1) designate land conservation partnership projects that
are eligible to receive financial assistance under this
section; and
(2) submit proposals for the projects to Congress.
(c) Conditions.--
(1) In general.--To be eligible for financial assistance
under subsection (a), a Highlands State shall enter into an
agreement with the Secretary of the Interior that--
(A) identifies--
(i) the Highlands State that will own or hold and manage
the land or interest in land; and
(ii) the source of funds to provide the non-Federal share
under paragraph (2);
(B) describes the management objectives for the land that
will ensure permanent protection and use of the land for the
purpose for which the assistance is provided;
(C) provides that if the Highlands State converts, uses, or
disposes of the project for a purpose inconsistent with the
purpose for which the assistance was provided, as determined
by the Secretary of the Interior, the United States may--
(i) seek specific performance of the conditions of
financial assistance in United States District Court; or
(ii) seek reimbursement from the Highlands State in an
amount that is, as determined at the time of conversion, use,
or disposal, the greater of--

(I) the total amount of the financial assistance provided
for the project by the Federal Government under this section;
or
(II) the amount by which the financial assistance increased
the value of the land or interest in land; and

(D) provides that the land conservation partnership project
shall be consistent with areas identified as having high
conservation value in--
(i) the Forest Service study and update, including--

(I) Important Areas (study);
(II) Conservation Focal Areas (update);
(III) Conservation Priorities (update); and
(IV) land identified as having higher or highest resource
value in the Conservation Values Assessment (update); or

(ii) any similar study conducted by the Forest Service in
the Highlands region.
(2) Cost-sharing requirement.--The Federal share of the
cost of carrying out a land conservation partnership project
under this subsection shall not exceed 50 percent of the cost
of the land conservation partnership project.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of the Interior from the
general funds of the Treasury or the Land and Water
Conservation Fund to carry out this section $25,000,000 for
each of fiscal years 2005 through 2014, to remain available
until expended.

SEC. XX07. DEPARTMENT OF AGRICULTURE PROGRAMS IN THE
HIGHLANDS REGION.

(a) In General.--To meet land resource goals of, and the
stewardship, scientific, and conservation challenges
identified in, the study, update, and any future study that
the Forest Service may undertake in the Highlands Region, the
Secretary (acting through the Chief of the Forest Service),
in consultation with the Chief of the Natural Resource
Conservation Service, shall continue to assist the Highlands
States, units of local government, and private forest and
farm landowners in the conservation and stewardship of the
land and natural resources in the Highlands region.
(b) Duties.--The Secretary shall--
(1) in consultation with the Highlands States and
consistent with this title, undertake studies and research in
the Highlands Region;
(2) make the findings of the study publicly available and
update and maintain a public dialogue regarding
implementation; and
(3) assist the Highland States, units of local government,
individual landowners, and private organizations in
identifying and using technical and financial assistance
programs provided by the Forest Service and other units of
the Department of Agriculture.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out subsection
(b) $1,000,000 for each of fiscal years 2005 through 2014.

SEC. XX08. PRIVATE PROPERTY PROTECTION AND LACK OF REGULATORY
EFFECT.

(a) Effect of Title.--Nothing in this title--
(1) requires any private property owner to permit public
access (including Federal, State, or local government access)
to private property; or
(2) modifies any provision of Federal, State, or local law
with regard to public access to or use of private land.
(b) Liability.--Designation of the Highlands Stewardship
Area shall not create any liability, or have any effect on
any liability under any other law, of any private property
owner with respect to any person injured on private property.
(c) Land Use.--Nothing in this title modifies any authority
of the Federal Government or State or local government to
regulate land use.
(d) Participation of Private Property Owners in Highlands
Stewardship Area Programs.--Nothing in this title requires
the owner of any private property located within the
Highlands Stewardship Area to participate in the land
conservation program, financial or technical assistance
program, or any other program established under this title.
(e) Purchase of Land or Interest in Land from Willing
Sellers.--Funds made available under this Act may be used to
purchase land or interests in land from willing sellers only.
______

SA 2028. Mr. LIEBERMAN (for himself, Mr. McCain, Ms. Snowe, Mrs.
Feinstein, Mr. Chafee, Mr. Durbin, Mr. Akaka, Mrs. Murray, Mr.
Lautenberg, Mr. Edwards, Mr. Biden, Mr. Carper, Mr. Nelson of Florida,
Mr. Corzine, and Ms. Cantwell) proposed an amendment to the bill S.
139, to provide for a program of scientific research on abrupt climate
change, to accelerate the reduction of greenhouse gas emissions in the
United States by establishing a market-driven system of greenhouse gas
tradeable allowances that could be used interchangable with passenger
vehicle fuel economy standard credits, to limit greenhouse gas
emissions in the United States and reduce dependence upon foreign oil,
and ensure benefits to consumers from the trading in such allowances;
as follows:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Climate Stewardship Act of
2003''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

Title I--Federal Climate Change Research and Related Activities.

Sec. 101. National Science Foundation fellowships.
Sec. 102. Commerce Department study of technology transfer barriers.
Sec. 103. Report on United States impact of Kyoto protocol.
Sec. 104. Research grants.
Sec. 105. Abrupt climate change research.
Sec. 106. NIST greenhouse gas functions.
Sec. 107. Development of new measurement technologies.
Sec. 108. Enhanced environmental measurements and standards.
Sec. 109. Technology development and diffusion.
Sec. 110. Agricultural outreach program.

Title II--National Greenhouse Gas Database

Sec. 201. National greenhouse gas database and registry established.
Sec. 202. Inventory of greenhouse gas emissions for covered entities.
Sec. 203. Greenhouse gas reduction reporting.
Sec. 204. Measurement and verification.

Title III--Market-driven Greenhouse Gas Reductions

Subtitle A--Emission Reduction Requirements; Use of Tradeable
Allowances

Sec. 301. Covered entities must submit allowances for emissions.
Sec. 302. Compliance.
Sec. 303. Borrowing against future reductions.
Sec. 304. Other uses of tradeable allowances.
Sec. 305. Exemption of source categories.

Subtitle B--Establishment and Allocation of Tradeable Allowances

Sec. 331. Establishment of tradeable allowances.
Sec. 332. Determination of tradeable allowance allocations.
Sec. 333. Allocation of tradeable allowances.
Sec. 334. Ensuring target adequacy.
Sec. 335. Initial allocations for early participation and accelerated
participation.
Sec. 336. Bonus for accelerated participation.

Subtitle C--Climate Change Credit Corporation

Sec. 351. Establishment.
Sec. 352. Purposes and functions.

[[Page S13524]]

Subtitle D--Sequestration Accounting; Penalties

Sec. 371. Sequestration accounting.
Sec. 372. Penalties.

SEC. 3. DEFINITIONS.

In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Baseline.--The term ``baseline'' means the historic
greenhouse gas emission levels of an entity, as adjusted
upward by the Administrator to reflect actual reductions that
are verified in accordance with--
(A) regulations promulgated under section 201(c)(1); and
(B) relevant standards and methods developed under this
title.
(3) Carbon dioxide equivalents.--The term ``carbon dioxide
equivalents'' 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, as
determined by the Administrator.
(4) Covered sectors.--The term ``covered sectors'' means
the electricity, transportation, industry, and commercial
sectors, as such terms are used in the Inventory.
(5) Covered entity.--The term ``covered entity'' means an
entity (including a branch, department, agency, or
instrumentality of Federal, State, or local government)
that--
(A) owns or controls a source of greenhouse gas emissions
in the electric power, industrial, or commercial sectors of
the United States economy (as defined in the Inventory),
refines or imports petroleum products for use in
transportation, or produces or imports hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride; and
(B) emits, from any single facility owned by the entity,
over 10,000 metric tons of greenbouse gas per year, measured
in units of carbon dioxide equivalents, or produces or
imports--
(i) petroleum products that, when combusted, will emit,
(ii) hydrofluorocarbons, perfluorocarbons, or sulfur
hexafluoride that, when used, will emit, or
(iii) other greenhouse gases that, when used, will emit,

over 10,000 metric tons of greenhouse gas per year, measured
in units of carbon dioxide equivalents.
(6) Database.--The term ``database'' means the national
greenhouse gas database established under section 201.
(7) Direct emissions.--The term ``direct emissions'' means
greenhouse gas emissions by an entity from a facility that is
owned or controlled by that entity.
(8) Facility.--The term ``facility'' means a building,
structure, or installation located on any 1 or more
contiguous or adjacent properties of an entity in the United
States.
(9) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons; and
(F) sulfur hexafluoride.
(10) Indirect emissions.--The term ``indirect emissions''
means greenhouse gas emissions that are--
(A) a result of the activities of an entity; but
(B) emitted from a facility owned or controlled by another
entity.
(11) Inventory.--The term ``Inventory'' means the Inventory
of U.S. Greenhouse Gas Emissions and Sinks, prepared in
compliance with the United Nations Framework Convention on
Climate Change Decision 3/CP.5).
(12) Leakage.--The term ``leakage'' means--
(A) an increase in greenhouse gas emissions by one facility
or entity caused by a reduction in greenhouse gas emissions
by another facility or entity; or
(B) a decrease in sequestration that is caused by an
increase in sequestration at another location.
(13) Permanence.--The term ``permanence'' means the extent
to which greenhouse gases that are sequestered will not later
be returned to the atmosphere.
(14) Registry.--The term ``registry'' means the registry of
greenhouse gas emission reductions established under section
201(b)(2).
(15) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(16) Sequestration.--
(A) In general.--The term ``sequestration'' means the
capture, long-term separation, isolation, or removal of
greenhouse gases from the atmosphere.
(B) Inclusions.--The term ``sequestration'' includes--
(i) agricultural and conservation practices;
(ii) reforestation;
(iii) forest preservation; and
(iv) any other appropriate method of capture, long-term
separation, isolation, or removal of greenhouse gases from
the atmosphere, as determined by the Administrator.
(C) Exclusions.--The term ``sequestration'' does not
include--
(i) any conversion of, or negative impact on, a native
ecosystem; or
(ii) any introduction of non-native species.
(17) Source category.--The term ``source category'' means a
process or activity that leads to direct emissions of
greenhouse gases, as listed in the Inventory.
(18) Stationary source.--The term ``stationary source''
means generally any source of greenhouse gases except those
emissions resulting directly from an engine for
transportation purposes.

TITLE I--FEDERAL CLIMATE CHANGE RESEARCH AND RELATED ACTIVITIES.

SEC. 101. NATIONAL SCIENCE FOUNDATION FELLOWSHIPS.

The Director of the National Science Foundation shall
establish a fellowship program for students pursuing graduate
studies in global climate change, including capability in
observation, analysis, modeling, paleoclimatology,
consequences, and adaptation.

SEC. 102. COMMERCE DEPARTMENT STUDY OF TECHNOLOGY TRANSFER
BARRIERS.

(a) Study.--The Assistant Secretary of Technology Policy at
Department of Commerce shall conduct a study of technology
transfer barriers, best practices, and outcomes of technology
transfer activities at Federal laboratories related to the
licensing and commercialization of energy efficient
technologies, and other technologies that, compared to
similar technology in commercial use, result in reduced
emissions of greenhouse gases or increased sequestration of
greenhouse gases. The study shall be submitted to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Science within 6
months after the date of enactment of this Act. The
Assistant Secretary shall work with the existing
interagency working group to address identified barriers.
(b) Agency Report To Include Information on Technology
Transfer Income and Royalties.--Paragraph (2)(B) of section
11(f) of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3710(f)) is amended--
(1) by striking ``and'' after the semicolon in clause (vi);
(2) by redesignating clause (vii) as clause (ix); and
(3) by inserting after clause (vi) the following:
``(vii) the number of fully-executed licenses which
received royalty income in the preceding fiscal year for
climate-change or energy-efficient technology;
``(viii) the total earned royalty income for climate-change
or energy-efficient technology; and''.
(c) Increased Incentives for Development of Climate-Change
or Energy-Efficient Technology.--Section 14(a) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3710c(a)) is amended--
(1) by striking ``15 percent,'' in paragraph (1)(A) and
inserting ``15 percent (25 percent for climate change-related
technologies),''; and
(2) by inserting ``($250,000 for climate change-related
technologies)'' after ``$150,000'' each place it appears in
paragraph (3).

SEC. 103. REPORT ON UNITED STATES IMPACT OF KYOTO PROTOCOL.

Within 6 months after the date of enactment of this Act,
the Secretary shall execute a contract with the National
Academy of Science for a report to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Science on the effects that the
entry into force of the Kyoto Protocol without United States
participation will have on--
(1) United States industry and its ability to compete
globally;
(2) international cooperation on scientific research and
development; and
(3) United States participation in international
environmental climate change mitigation efforts and
technology deployment.

SEC. 104. RESEARCH GRANTS.

Section 105 of the Global Change Research Act of 1990 (15
U.S.C. 2935) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Research Grants.--
``(1) Committee to develop list of priority research
areas.--The Committee shall develop a list of priority areas
for research and development on climate change that are not
being addressed by Federal agencies.
``(2) Director of ostp to transmit list to NSF.--The
Director of the Office of Science and Technology Policy shall
transmit the list for the National Science Foundation.
``(3) Funding through nsf.--
``(A) Budget request.--The National Science Foundation
shall include, as part of the annual request for
appropriations for the Science and Technology Policy
Institute, a request for appropriations to fund research in
the priority areas on the list developed under paragraph (1).
``(B) Authorization.--For fiscal year 2004 and each fiscal
year thereafter, there are authorized to be appropriated to
the National Science Foundation not less than $25,000,000, to
be made available through the Science and Technology Policy
Institute, for research in those priority areas.''.

SEC. 105. ABRUPT CLIMATE CHANGE RESEARCH.

(a) In General.--The Secretary, through the National
Oceanic and Atmospheric Administration, shall carry out a
program of scientific research on potential abrupt climate
change designed--
(1) to develop a global array of terrestrial and
oceanographic indicators of paleoclimate in order
sufficiently to identify, and describe past instances of
abrupt climate change;
(2) to improve understanding of thresholds and
nonlinearities in geophysical systems related to the
mechanisms of abrupt climate change;

[[Page S13525]]

(3) to incorporate these mechanisms into advanced
geophysical models of climate change; and
(4) to test the output of these models against an improved
global array of records of past abrupt climate changes.
(b) Abrupt Climate Change Defined.--In this section, the
term ``abrupt climate change'' means a change in climate that
occurs so rapidly or unexpectedly that human or natural
systems may have difficulty adapting to it.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for fiscal year 2004
$60,000,000 to carry out this section, such sum to remain
available until expended.

SEC. 106. NIST GREENHOUSE GAS FUNCTIONS.

Section 2(c) of the National Institute of Standards and
Technology Act (15 U.S.C. 272 (c)) is amended--
(1) by striking ``and'' after the semicolon in paragraph
(21);
(2) by redesignating paragraph (22) as paragraph (23); and
(3) by inserting after paragraph (21) the following:
``(22) perform research to develop enhanced measurements,
calibrations, standards, and technologies which will
facilitate activities that reduce emissions of greenhouse
gases or increase sequestration of greenhouse gases,
including carbon dioxide, methane, nitrous oxide, ozone,
perfluorocarbons, hydrofluorocarbons, and sulfur
hexafluoride; and''.

SEC. 107. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.

To facilitate implementation of section 204, the
Secretary'' shall initiate a program to develop, with
technical assistance from appropriate Federal agencies,
innovative standards and measurement technologies to
calculate greenhouse gas emissions or reductions for which no
accurate or reliable measurement technology exists. The
program shall include--
(1) technologies (including remote sensing technologies) to
measure carbon changes and other greenhouse gas emissions and
reductions from agriculture, forestry, and other land use
practices; and
(2) technologies to calculate non-carbon dioxide greenhouse
gas emissions from transportation.

SEC. 108. ENHANCED ENVIRONMENTAL MEASUREMENTS AND STANDARDS.

The National Institute of Standards and Technology Act (15
U.S.C. 271 et seq.) is amended--
(1) by redesignating sections 17 through 32 as sections 18
through 33, respectively; and
(2) by inserting after section 16 the following:

``SEC. 17. CLIMATE CHANGE STANDARDS AND PROCESSES.

``(a) In General.--The Director shall establish within the
Institute a program to perform and support research on global
climate change standards and processes, with the goal of
providing scientific and technical knowledge applicable to
the reduction of greenhouse gases (as defined in section
3(8) of the Climate Stewardship Act of 2003) and of
facilitating implementation of section 204 of that Act.
``(b) Research Program.--
``(1) In general.--The Director is authorized to conduct,
directly or through contracts or grants, a global climate
change standards and processes research program.
``(2) Research projects.--The specific contents and
priorities of the research program shall be determined in
consultation. with appropriate Federal agencies, including
the Environmental Protection Agency, the National Oceanic and
Atmospheric Administration, and the National Aeronautics and
Space Administration. The program generally shall include
basic and applied research--
``(A) to develop and provide the enhanced measurements,
calibrations, data, models, and reference material standards
which will enable the monitoring of greenhouse gases;
``(B) to assist in establishing a baseline reference point
for future trading in greenhouse gases and the measurement of
progress in emissions reduction;
``(C) that will be exchanged internationally, as scientific
or technical information which has the stated purpose of
developing mutually recognized measurements, standards, and
procedures for reducing greenhouse gases; and
``(D) to assist in developing improved industrial processes
designed to reduce or eliminate greenhouse gases.
``(c) National measurement laboratories.--
``(1) In general.--In carrying out this section, the
Director shall utilize the collective skills of the National
Measurement Laboratories of the National Institute of
Standards and Technology to improve the accuracy of
measurements that will permit better understanding and
control of these industrial chemical processes and result in
the reduction or elimination of greenhouse gases.
``(2) Material, process, and building research.--The
National Measurement Laboratories shall conduct research
under this subsection that includes--
``(A) developing material and manufacturing processes which
are designed for energy efficiency and reduced greenhouse gas
emissions into the environment;
``(B) developing chemical processes to be used by industry
that, compared to similar processes in commercial use, result
in reduced emissions of greenhouse gases or increased
sequestration of greenhouse gases; and
``(C) enhancing building performance with a focus in
developing standards or tools which will help incorporate
low- or no-emission technologies into building designs.
``(3) Standards and tools.--The National Measurement
Laboratories shall develop standards and tools under this
subsection that include software to assist designers in
selecting alternate building materials, performance data on
materials; artificial intelligence-aided design procedures
for building subsystems and `smart buildings', and improved
test methods and rating procedures for evaluating the energy
performance of residential and commercial appliances and
products.
``(d) National Voluntary Laboratory Accreditation
Program.--The Director shall utilize the National Voluntary
Laboratory Accreditation Program under this section to
establish a program to include specific calibration or test.
standards and related methods and protocols assembled to
satisfy the unique needs for accreditation in measuring
the production of greenhouse gases. In carrying out this
subsection the Director may cooperate with other
departments and agencies of the Federal Government, State
and local governments, and private organizations.''.

SEC. 109. TECHNOLOGY DEVELOPMENT AND DIFFUSION.

The Director of the National Institute of Standards and
Technology, through the Manufacturing Extension Partnership
Program, may develop a program to promote the use, by the
more than 380,000 small manufacturers, of technologies and
techniques that result in reduced emissions of greenhouse
gases or increased sequestration of greenhouse gases.

SEC. 110. AGRICULTURAL OUTREACH PROGRAM.

(a) In General.--The Secretary of Agriculture, acting
through the Global Change Program Office and in consultation
with the heads of other appropriate departments and agencies,
shall establish the Climate Change Education and Outreach
Initiative Program to educate, and reach out to, agricultural
organizations and individual farmers on global climate
change.
(b) Program Components.--The program--
(1) shall be designed to ensure that agricultural
organizations and individual farmers receive detailed
information about--
(A) the potential impact of climate change on their
operations and well-being;
(B) market-driven, economic opportunities that may come
from storing carbon in soils and vegetation, including
emerging private sector markets for carbon storage; and
(C) techniques for measuring, monitoring, verifying, and
inventorying such carbon capture efforts;
(2) may incorporate existing efforts in any area of
activity referenced in paragraph (1) or in related areas of
activity;
(3) shall provide--
(A) outreach materials to interested parties;
(B) workshops; and
(C) technical assistance; and
(4) may include the creation and development of regional
centers on climate change or coordination with existing
centers (including such centers within NRCS and the
Cooperative State Research Education and Extension Service).

TITLE II--NATIONAL GREENHOUSE GAS DATABASE

SEC. 201. NATIONAL GREENHOUSE GAS DATABASE AND REGISTRY
ESTABLISHED.

(a) Establishment.--As soon as practicable after the date
of enactment of this Act, the Administrator, in coordination
with the Secretary, the Secretary of Energy, the Secretary of
Agriculture, and private sector and nongovernmental
organizations, shall establish, operate, and maintain a
database, to be known as the ``National Greenhouse Gas
Database'', to collect, verify, and analyze information on
greenhouse gas emissions by entities.
(b) National Greenhouse Gas Database Components.--The
database shall consist of--
(1) an inventory of greenhouse gas emissions; and
(2) a registry of greenhouse gas emission reductions and
increases in greenhouse gas sequestrations.
(c) Comprehensive System.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall promulgate
regulations to implement a com prehensive system for
greenhouse gas emissions reporting, inventorying, and
reductions registration.
(2) Requirements.--The Administrator shall ensure, to the
maximum extent practicable, that--
(A) the comprehensive system described in paragraph (1) is
designed to--
(i) maximize completeness, transparency, and accuracy of
information reported; and
(ii) minimize costs incurred by entities in measuring and
reporting greenhouse gas emissions; and
(B) the regulations promulgated under paragraph (1)
establish procedures and protocols necessary--
(i) to prevent the double-counting of greenhouse gas
emissions or emission reductions reported by more than 1
reporting entity;
(ii) to provide for corrections to errors in data submitted
to the database;
(iii) to provide for adjustment to data by reporting
entities that have had a significant organizational change
(including mergers, acquisitions, and divestiture), in order
to maintain comparability among data in the database over
time;

[[Page S13526]]

(iv) to provide for adjustments to reflect new technologies
or methods for measuring or calculating greenhouse gas
emissions;
(v) to account for changes in registration of ownership of
emission reductions resulting from a. voluntary private
transaction between reporting entities; and
(vi) to clarify the responsibility for reporting in the
case of any facility owned or controlled by more than 1
entity.
(3) Serial numbers.--Through regulations promulgated under
paragraph (1), the Administrator shall develop and implement
a system that provides--
(A) for the verification of submitted emissions reductions
registered under section 204;
(B) for the provision of unique serial numbers to identify
the registered emission reductions made by an entity relative
to the baseline of the entity;
(C) for the tracking of the registered reductions
associated with the serial numbers; and
(D) for such action as may be necessary to prevent
counterfeiting of the registered reductions.

SEC. 202. INVENTORY OF GREENHOUSE GAS EMISSIONS FOR COVERED
ENTITIES.

(a) In General.--Not later than July 1st of each calendar
year after 2008, each covered entity shall submit to the
Administrator a report that states, for the preceding
calendar year, the entity-wide greenhouse gas emissions (as
reported at the facility level), including--
(1) the total quantity of direct greenhouse gas emissions
from stationary sources, expressed in units of carbon dioxide
equivalents, except those reported under paragraph (3);
(2) the amount of petroleum products sold or imported by
the entity and the amount of greenhouse gases, expressed in
units of carbon dioxide equivalents, that would be emitted
when these products are used for transportation in the United
States, as determined by the Administrator under section
301(b);
(3) the amount of hydrofluorocarbons, perfluorocarbons, or
sulfur hexafluoride, expressed in units of carbon dioxide
equivalents, that are sold or imported by the entity and will
ultimately be emitted in the United States, as determined by
the Administrator under section 301(d); and
(4) such other categories of emissions as the Administrator
determines in the regulations promulgated under section
201(c)(1) may be practicable and useful for the purposes of
this Act, such as--
(A) indirect emissions from imported electricity, heat, and
steam;
(B) process and fugitive emissions; and
(C) production or importation of greenhouse gases.
(b) Collection and Analysis of Data.--The Administrator
shall collect and analyze information reported under
subsection (a) for use under title III.

SEC. 203. GREENHOUSE GAS REDUCTION REPORTING.

(a) In General.--Subject to the requirements described in
subsection (b)--
(1) a covered entity may register greenhouse gas emission
reductions achieved after 1990 and before 2010 under this
section; and
(2) an entity that is not a covered entity may register
greenhouse gas emission reductions achieved at any time since
1990 under this section.
(b) Requirements.--
(1) In general.--The requirements referred to in subsection
(a) are that an entity (other than an entity described in
paragraph (2)) shall--
(A) establish a baseline; and
(B) submit the report described in subsection (c)(1).
(2) Requirements applicable to entities entering into
certain agreements.--An entity that enters into an agreement
with a participant in the registry for the purpose of a
carbon sequestration project shall not be required to comply
with the requirements specified in paragraph (1) unless that
entity is required to comply with the requirements by reason
of an activity other than the agreement.
(c) Reports.--
(1) Required report.--Not later than July 1st of the each
calendar year beginning more than 2 years after the date of
enactment of this Act, but subject to paragraph (3), an
entity described in subsection (a) shall submit to the
Administrator a report that states, for the preceding
calendar year, the entity-wide greenhouse gas emissions (as
reported at the facility level), including--
(A) the total quantity of direct greenhouse gas emissions
from stationary sources, expressed in units of carbon dioxide
equivalents;
(B) the amount of petroleum products sold or imported by
the entity and the amount of greenhouse gases, expressed in
units of carbon dioxide equivalents, that would be emitted
when these products are used for transportation in the United
States, as determined by the Administrator under section
301(b);
(C) the amount of hydrofluorocarbons, perfluorocarbons, or
sulfur hexafluoride, expressed in units of carbon dioxide
equivalents, that are sold or imported by the entity and will
ultimately be emitted in the United States, as determined by
the Administrator under section 301(d); and
(D) such other categories of emissions as the Administrator
determines in the regulations promulgated under section
201(c)(1) may be practicable and useful for the purposes of
this Act, such as--
(i) indirect emissions from imported electricity, heat, and
steam;
(ii) process and fugitive emissions; and
(iii) production or importation of greenhouse gases.
(2) Voluntary reporting.--An entity described in subsection
(a) may (along with establishing a baseline and reporting
emissions under this section)--
(A) submit a report described in paragraph (1) before the
date specified in that paragraph for the purposes of
achieving and commoditizing greenhouse gas reductions through
use of the registry and for other purposes; and
(B) submit to the Administrator, for inclusion in the
registry, information that has been verified in accordance
with regulations promulgated under section 201(c)(1) and that
relates to--
(i) any activity that resulted in the net reduction of the
greenhouse gas emissions of the entity or a net increase in
sequestration by the entity that were carried out during or
after 1990 and before the establishment of the database,
verified in accordance with regulations promulgated under
section 201(c)(1), and submitted to the Administrator before
the date that is 4 years after the date of enactment of this
Act; and
(ii) with respect to the calendar year preceding the
calendar year in which the information is submitted, any
project or activity that resulted in the net reduction of the
greenhouse gas emissions of the entity or a net increase in
net sequestration by the entity.
(3) Provision of verification information by reporting
entities.--Each entity that submits a report under this
subsection shall provide information sufficient for the
Administrator to verify, in accordance with measurement and
verification methods and standards developed under section
204, that the greenhouse gas report of the reporting entity--
(A) has been accurately reported; and
(B) in the case of each voluntary report under paragraph
(2), represents--
(i) actual reductions in direct greenhouse gas emissions--
(I) relative to historic emission levels of the entity; and
(II) after accounting for any increases in indirect
emissions described in paragraph (1)(C)(i); or
(ii) actual increases in net sequestration.
(4) Failure to submit report.--An entity that participates
or has participated in the registry, and that fails to submit
a report required under this subsection shall be prohibited
from using, or allowing another entity to use, its registered
emissions reductions or increases in sequestration to satisfy
the requirements of section 301.
(5) Independent third-party verification.--To meet the
requirements of this section and section 203, an entity that
is required to submit a report under this section may--
(A) obtain independent third-party verification; and
(B) present the results of the third-party verification to
the Administrator.
(6) Availability of data.--
(A) In general.--The Administrator shall ensure that
information in the database is--
(i) published; and
(ii) accessible to the public, including in electronic
format on the Internet.
(B) Exception.--Subparagraph (A) shall not apply in any
case in which the Administrator determines that publishing or
otherwise making available information described in that
subparagraph poses a risk to national security or discloses
confidential business information that can not be derived
from information that is otherwise publicly available and
that would cause competitive harm if published.
(7) Data infrastructure.--The Administrator shall ensure,
to the maximum extent practicable, that the database uses,
and is integrated with, Federal, State, and regional
greenhouse gas data collection and reporting systems in
effect as of the date of enactment of this Act.
(8) Additional issues to be considered.--In promulgating
the regulations under section 201(c)(1) and implementing the
database, the Administrator shall take into consideration a
broad range of issues involved in establishing an effective
database, including--
(A) the data and information systems and measures necessary
to identify, track, and verify greenhouse gas emissions in a
manner that will encourage private sector trading and
exchanges;
(B) the greenhouse gas reduction and sequestration
measurement and estimation methods and standards applied in
other countries, as applicable or relevant;
(C) the extent to which available fossil fuels, greenhouse
gas emissions, and greenhouse gas production and importation
data are adequate to implement the database; and
(D) the differences in, and potential uniqueness of, the
facilities, operations, and business and other relevant
practices of persons and entities in the private and public
sectors that may be expected to participate in the database.
(d) Annual Report.--The Administrator shall publish an
annual report that--
(1) describes the total greenhouse gas emissions and
emission reductions reported to the database during the year
covered by the report;
(2) provides entity-by-entity'' and sector-by-sector
analyses of the emissions and emission reductions reported;

[[Page S13527]]

(3) describes the atmospheric concentrations of greenhouse
gases;
(4) provides a comparison of current and past atmospheric
concentrations of greenhouse gases; and
(5) describes the activity during the year covered by the
period in the trading of greenhouse gas emission allowances.

SEC. 204. MEASUREMENT AND VERIFICATION.

(a) Standards.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish by rule,
in coordination with the Administrator, the Secretary of
Energy, and the Secretary of Agriculture, comprehensive
measurement and verification methods and standards to ensure
a consistent and technically accurate record of greenhouse
gas emissions, emission reductions, sequestration, and
atmospheric concentrations for use in the registry.
(2) Requirements.--The methods and standards established
under paragraph (1) shall include--
(A) a requirement that a covered entity use a continuous
emissions monitoring system, or another system of measuring
or estimating emissions that is determined by the Secretary
to provide information with precision, reliability,
accessibility, and timeliness similar to that provided by a
continuous emissions monitoring system where technologically
feasible;
(B) establishment of standardized measurement and
verification practices for reports made by all entities
participating in the registry taking into account--
(i) protocols and standards in use by entities requiring or
desiring to participate in the registry as of the date of
development of the methods and standards under paragraph (1);
(ii) boundary issues, such as leakage;
(iii) avoidance of double counting of greenhouse gas
emissions and emission reductions;
(iv) protocols to prevent a covered entity from avoiding
the requirements of this Act by reorganization into multiple
entities that are under common control; and
(v) such other factors as the Secretary, in consultation
with the Administrator, determines to be appropriate;
(C) establishment of methods of--
(i) estimating greenhouse gas emissions, for those cases in
which the Secretary determines that methods of monitoring,
measuring or estimating such emissions with precision,
reliability, accessibility, and timeliness similar to that
provided by a continuous emissions monitoring system are not
technologically feasible at present; and
(ii) reporting the accuracy of such estimations;
(D) establishment of measurement and verification standards
applicable to actions taken to reduce, avoid, or sequester
greenhouse gas emissions;
(E) in coordination with the Secretary of Agriculture,
standards to measure the results of the use of carbon
sequestration and carbon recapture technologies, including--
(i) soil carbon sequestration practices; and
(ii) forest preservation and reforestation activities that
adequately address the issues of permanence, leakage, and
verification;
(E) establishment of such other measurement and
verification standards as the Secretary, in consultation with
the Secretary of Agriculture, the Administrator, and the
Secretary of Energy, determines to be appropriate;
(F) establishment of standards for obtaining the
Secretary's approval of the suitability of geological storage
sites that include evaluation of both the geology of the site
and the entity's capacity to manage the site; and
(G) establishment of other features that, as determined by
the Secretary, will allow entities to adequately establish a
fair and reliable measurement and reporting system.
(b) Review and Revision.--The Secretary shall periodically
review, and revise as necessary, the methods and standards
developed under subsection (a).
(c) Public Participation.--The Secretary shall--
(1) make available to the public for comment, in draft form
and for a period of at least 90 days, the methods and
standards developed under subsection (a); and
(2) after the 90-day period referred to in paragraph (1),
in coordination with the Secretary of Energy, the Secretary
of Agriculture, and the Administrator, adopt the methods and
standards developed under subsection (a) for use in
implementing the database.
(d) Experts and Consultants.--
(1) In general.--The Secretary may obtain the services of
experts and consultants in the private and nonprofit sectors
in accordance with section 3109 of title 5, United States
Code, in the areas of greenhouse gas measurement,
certification, and emission trading.
(2) Available arrangements.--In obtaining any service
described in paragraph (1), the Secretary may use any
available grant, contract, cooperative agreement, or other
arrangement authorized by law.

TITLE III--MARKET-DRIVEN GREENHOUSE GAS REDUCTIONS

Subtitle A--Emission Reduction Requirements; Use of Tradeable
Allowances

SEC. 301. COVERED ENTITIES MUST SUBMIT ALLOWANCES FOR
EMISSIONS.

(a) In General--Beginning with calendar year 2010--
(1) each covered entity in the electric generation,
industrial, and commercial sectors shall submit to the
Administrator one tradeable allowance for every metric ton of
greenhouse gases, measured in units of carbon dioxide
equivalents, that it emits from stationary sources, except
those described in paragraph (2);
(2) each producer or importer of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride that is a covered
entity shall submit to the Administrator one tradeable
allowance for every metric ton of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride, measured in units
of carbon dioxide equivalents; that it produces or imports
and that will ultimately be emitted in the United States, as
determined by the Administrator under subsection (d) and
(3) each petroleum refiner or importer that is a covered
entity shall submit one tradeable allowance for every unit of
petroleum product it sells that will produce one metric ton
of greenhouse gases, measured in units of carbon dioxide
equivalents, as determined by the Administrator under
subsection (b), when used for transportation.
(b) Determation of Transportation Sector Amount.--For the
transportation sector, the Administrator shall determine the
amount of greenhouse gases, measured in units of carbon
dioxide. equivalents, that will be emitted when petroleum
products are used for transportation.
(c) Exception for Certain Deposited Emissions.--
Notwithstanding subsection (a), a covered entity is not
required to submit a tradeable allowance for any amount of
greenhouse gas that would otherwise have been emitted from a
facility under the ownership or control of that entity if--
(1) the emission is deposited in a geological storage
facility approved by the Administrator under section
204(a)(2)(F); and
(2) the entity agrees to submit tradeable allowances for
any portion of the deposited emission that is subsequently
emitted from that facility.
(d) Determination of Hydroflurocarbon, Perfluorocarbon, and
Sulfur Hexafluoride Amount.--The Administrator shall
determine the amounts of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride, measured in units
of carbon dioxide equivalents, that will be deemed to be
emitted for purposes of this Act.

SEC. 302. COMPLIANCE.

(a) In General.--
(1) Source of Tradeable Allowances Used.--A covered entity
may use a tradeable allowance to meet the requirements of
this section without regard to whether the tradeable
allowance was allocated to it under subtitle B or acquired
from another entity or the Climate Change Credit Corporation
established under section 351.
(2) Verification by administrator.--At various times during
each year, the Administrator shall determine whether each
covered entity has met the requirements of this section. In
making that determination, the Administrator shall--
(A) take into account the tradeable allowances submitted by
the covered entity to the Administrator; and
(B) retire the serial number assigned to each such
tradeable allowance.
(b) Alternative Means of Compliance.--For the years after
2010, a covered entity may satisfy up to 15 percent of its
total allowance submission requirement under this section
by--
(1) submitting tradeable allowances from another nation's
market in greenhouse gas emissions if--
(A) the Secretary determines that the other nation's system
for trading in greenhouse gas emissions is complete,
accurate, and transparent and reviews that determination at
least once every 5 years;
(B) the other nation has adopted enforceable limits on its
greenhouse gas emissions which the tradeable allowances were
issued to implement; and
(C) the covered entity certifies that the tradeable
allowance has been retired unused in the other nation's
market;
(2) submitting a registered net increase in sequestration,
as registered in the database, adjusted, if necessary, to
comply with the accounting standards and methods established
under section 372;
(3) submitting a greenhouse gas emissions reduction (other
than a registered net increase in sequestration) that was
registered in the database by a person that is not a covered
entity; or
(4) submitting credits obtained from the Administrator
under section 303.
(c) Dedicated Program for Sequestration in Agricultural
Soils.--If a covered entity chooses to satisfy 15 percent of
its total allowance submission requirements under the
provisions of subsection (b), it shall satisfy up to 1.5
percent of its total allowance submission requirement by
submitting registered net increases in sequestration in
agricultural soils, as registered in the database, adjusted,
if necessary, to comply with the accounting standards and
methods established under section 371.

SEC. 303. BORROWING AGAINST FUTURE REDUCTIONS.

(a) In General.--The Administrator shall establish a
program under which a covered entity may--
(1) receive a credit in the current calendar year for
anticipated reductions in emissions in a future calendar
year; and
(2) use the credit in lieu of a tradeable allowance to meet
the requirements of this Act for the current calendar year,
subject to the limitation imposed by section 302(b).

[[Page S13528]]

(b) Determination of Tradeable Allowance Credits.--The
Administrator may make credits available under subsection (a)
only for anticipated reductions in emissions that--
(1) are attributable to the realization of capital
investments in equipment, the construction, reconstruction,
or acquisition of facilities, or the deployment of new
technologies--
(A) for which the covered entity has executed a binding
contract and secured, or applied for, all necessary permits
and operating or implementation authority;
(B) that will not become operational within the current
calendar year; and
(C) that will become operational and begin to reduce
emissions from the covered entity within 5 years after the
year in which the credit is used; and
(2) will be realized within 5 years after the year in which
the credit is used.
(c) Carrying Cost.--If a covered entity uses a credit under
this section to meet the requirements of this Act for a
calendar year (referred to as the use year), the tradeable
allowance requirement for the year from which the credit was
taken (referred to as the source year) shall be increased by
an amount equal to--
(1) 10 percent for each credit borrowed from the source
year; multiplied by
(2) the number of years beginning after the use year and
before the source year.
(d) Maximum Borrowing Period.--A credit from a year
beginning more than 5 years after the current year may not be
used to meet the requirements of this Act for the current
year.
(e) Failure To Achieve Reductions Generating Credit.--If a
covered entity that uses a credit under this section fails to
achieve the anticipated reduction for which the credit was
granted for the year from which the credit was taken, then--
(1) the covered entity's requirements under this Act for
that year shall be increased by the amount of the credit,
plus the amount determined under subsection (c);
(2) any tradeable allowances submitted by the covered
entity for that year shall be counted first against the
increase in those requirements; and
(3) the covered entity may not use credits under this
section to meet the increased requirements.

SEC. 304. OTHER USES OF TRADEABLE ALLOWANCES.

(a) In General.--Tradeable allowances may be sold,
exchanged, purchased, retired, or used as provided in this
section.
(b) Intersector Trading.--Covered entities may purchase or
otherwise acquire tradeable allowances from other covered
sectors to satisfy the requirements of section 301.
(c) Climate Change Credit Organization.--The Climate Change
Credit Corporation established under section 351 may sell
tradeable allowances allocated to it under section 332(a)(2)
to any covered entity or to any investor, broker, or dealer
in such tradeable allowances. The Climate Change Credit
Corporation shall use all proceeds from such sales in
accordance with the provisions of section 352.
(d) Banking of Tradeable Allowances.--Notwithstanding the
requirements of section 301, a covered entity that has more
than a sufficient amount of tradeable allowances to satisfy
the requirements of section 301, may refrain from submitting
a tradeable allowance to satisfy the requirements in order to
sell, exchange, or use the tradeable allowance in the future.

SEC. 305. EXEMPTION OF SOURCE CATEGORIES.

(a) In General.--The Administrator may grant an exemption
from the requirements of this Act to a source category if the
Administrator determines, after public notice and comment,
that it is not feasible to measure or estimate emissions from
that source category, until such time as measurement or
estimation becomes feasible.
(b) Reduction of Limitations.--If the Administrator exempts
a source category under subsection (a), the Administrator
shall also reduce the total tradeable allowances under
section 331(a)(1) by the amount of greenhouse gas emissions
that the exempted source category emitted in calendar year
2000, as identified in the 2000 Inventory.
(c) Limitation on Exemption.--The Administrator may not
grant an exemption under subsection (a) to carbon dioxide
produced from fossil fuel.

Subtitle B--Establishment and Allocation of Tradeable Allowances

SEC. 331. ESTABLISHMENT OF TRADEABLE ALLOWANCES.

(a) In General.--The Administrator shall promulgate
regulations to establish tradeable allowances, denominated in
units of carbon dioxide equivalents, for calendar years
beginning after 2009, equal to--
(1) 5896 million metric tons, measured in units of carbon
dioxide equivalents, reduced by
(2) the amount of emissions of greenhouse gases in calendar
year 2000 from non-covered entities.
(b) Serial Numbers.--The Administrator shall assign a
unique serial number to each tradeable allowance established
under subsection (a), and shall take such action as may be
necessary, to prevent counterfeiting of tradeable allowances.
(c) Nature of Tradeable Allowances.--A tradeable allowance
is not a property right, and nothing in this title or any
other provision of law limits the authority of the United
States to terminate or limit a tradeable allowance.
(d) Non-Covered Entity.--In this section:
(1) In general.--The term ``non-covered entity'' means an
entity that--
(A) owns or controls a source of greenhouse gas emissions
in the electric power, industrial, or commercial sectors of
the United States economy (as defined in the Inventory),
refines or imports petroleum products for use in
transportation, or produces or imports hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride; and
(B) is not a covered entity.
(2) Exception.--Notwithstanding paragraph (1), an entity
that is a covered entity for any calendar year beginning
after 2009 shall not be considered to be a non-covered entity
for purposes of subsection (a) only because it emitted, or
its products would have emitted, 10,000 metric tons or less
of greenhouse gas, measured in units of carbon dioxide
equivalents, in the year 2000.

SEC. 332. DETERMINATION OF TRADEABLE ALLOWANCE ALLOCATIONS.

(a) In General.--The Secretary shall determine--
(1) the amount of tradeable allowances to be allocated to
each covered sector of that sector's allotments; and
(2) the amount of tradeable allowances to be allocated to
the Climate Change Credit Corporation established under
section 351.
(b) Allocation Factors.--In making the determination
required by subsection (a), the Secretary shall consider--
(1) the distributive effect of the allocations on household
income and net worth of individuals;
(2) the impact of the allocations on corporate income,
taxes, and asset value;
(3) the impact of the allocations on income levels of
consumers and on their energy consumption;
(4) the effects of the allocations in terms of economic
efficiency;
(5) the ability of covered entities to pass through
compliance costs to their customers;
(6) the degree to which the amount of allocations to the
covered sectors should decrease over time; and
(7) the need to maintain the international competitiveness
of United States manufacturing and avoid the additional loss
of United States manufacturing jobs.
(c) Allocation Recommendations and Implementation.--Before
allocating or providing tradeable allowances under subsection
(a) and within 24 months after the date of enactment of this
Act, the Secretary shall submit the determinations under
subsection (a) to the Senate Committee on Commerce, Science,
and Transportation, the Senate Committee on Environment and
Public Works, the House of Representatives Committee on
Science, and the House of Representatives Committee on Energy
and Commerce. The Secretary's determinations under paragraph
(1), including the allocations and provision of tradeable
allowances pursuant to that determination, are deemed to be a
major rule (as defined in section 804(2) of title 5, United
States Code), and subject to the provisions of chapter 8 of
that title.

SEC. 333. ALLOCATION OF TRADEABLE ALLOWANCES.

(a) In General.--Beginning with calendar year 2010 and
after taking into account any initial allocations under
section 334, the Administrator shall--
(1) allocate to each covered sector that sector's
allotments determined by the Administrator under section 332
(adjusted for any such initial allocations and the allocation
to the Climate Change Credit Corporation established under
section 351); and
(2) allocate to the Climate Change Credit Corporation
established under section 351 the tradeable allowances
allocable to that Corporation.
(b) Intrasectorial Allotments.--The Administrator shall, by
regulation, establish a process for the allocation of
tradeable allowances under this section, without cost to
covered entities, that will--
(1) encourage investments that increase the efficiency of
the processes that produce greenhouse gas emissions;
(2) minimize the costs to the government of allocating the
tradeable allowances;
(3) not penalize a covered entity for emissions reductions
made before 2010 and registered with the database; and
(4) provide sufficient allocation for new entrants into the
sector.
(c) Point Source Allocation.--The Administrator shall
allocate the tradeable allowances for the electricity
generation, industrial, and commercial sectors to the
entities owning or controlling the point sources of
greenhouse gas emissions within that sector.
(d) Hydrofluorocarbons, Perfluorocarbons, and Sulfur
Hexafluoride.--The Administrator shall allocate the tradeable
allowances for producers or importers of hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride to such producers or
importers.
(e) Special Rule for Allocation Within the Transportation
Sector.--The Administrator shall allocate the tradeable
allowances for the transportation sector to petroleum
refiners or importers that produce or import petroleum
products that will be used as fuel for transportation.
(f) Allocations to Certain States; Rural Electric
Cooperatives.--
(1) In general.--The Administrator shall make the
allocations described in paragraphs (2) and (3) each year at
no cost. The

[[Page S13529]]

allocations shall be offset from the allowances allocated to
the Climate Change Credit Corporation.
(2) State allocations.--The Administrator shall allocate,
for all electric generating units located in a State in which
the average heating value of coal consumed by electric
generating units in 1999 was less than 7,000 Btu per pound,
allowances in an amount equal to the greenhouse gas emissions
of the units in 2000, multiplied by 1.3.
(3) Rural electric cooperatives.--For each electric
generating unit that is owned or operated by a rural electric
cooperative and not taken into account for purposes of
paragraph (2), the Administrator shall allocate allowances in
an amount equal to the greenhouse gas emissions of each such
unit in 2000, plus an amount equal to the average emissions
growth expected for all such units.

SEC. 334. ENSURING TARGET ADEQUACY.

(a) In General.--Beginning 2 years after the date of
enactment of this Act, the Under Secretary of Commerce for
Oceans and Atmosphere shall review the allowances established
by section 331 no less frequently than biennially--
(1) to re-evaluate the levels established by that
subsection, after taking into account the best available
science and the most currently available data, and
(2) to re-evaluate the environmental and public health
impacts of specific concentration levels of greenhouse gases,

to determine whether the allowances established by subsection
(a) continue to be consistent with the objective of the
United Nations' Framework Convention on Climate Change of
stabilizing levels of greenhouse gas emissions at a level
that will prevent dangerous anthropogenic interference with
the climate system.

(b) Review of 2010 Levels.--The Under Secretary shall
specifically review in 2008 the level established under
section 331(a)(1), and transmit a report on his reviews,
together with any recommendations, including legislative
recommendations, for modification of the levels, to the
Senate Committee on Commerce, Science, and Transportation,
the Senate Committee on Environment and Public Works, the
House of Representatives Committee on Science, and the House
of Representatives Committee on Energy and Commerce.

SEC. 335. INITIAL ALLOCATIONS FOR EARLY PARTICIPATION AND
ACCELERATED PARTICIPATION.

Before making any allocations under section 333, the
Administrator shall allocate--
(1) to any covered entity an amount of tradeable allowances
equivalent to the amount of greenhouse gas emissions
reductions registered by that covered entity in the national
greenhouse gas database if--
(A) the covered entity has requested to use the registered
reduction in the year of allocation;
(B) the reduction was registered prior to 2010; and
(C) the Administrator retires the unique serial number
assigned to the reduction under section 201(c)(3); and
(2) to any covered entity that has entered into an
accelerated participation agreement under section 336, such
tradeable allowances as the Administrator has determined to
be appropriate under that section.

SEC. 336. BONUS FOR ACCELERATED PARTICIPATION.

(a) In General.--If a covered entity executes an agreement
with the Administrator under which it agrees to reduce its
level of greenhouse gas emissions to a level no greater than
the level of its greenhouse gas emissions for calendar year
1990 by the year 2010, then, for the 6-year period beginning
with calendar year 2010, the Administrator shall--
(1) provide additional tradeable allowances to that entity
when allocating allowances under section 334 in order to
recognize the additional emissions reductions that will be
required of the covered entity;
(2) allow that entity to satisfy 20 percent of its
requirements under section 301 by--
(A) submitting tradeable allowances from another nation's
market in greenhouse gas emissions under the conditions
described in section 312(b)(1);
(B) submitting a registered net increase in sequestration,
as registered in the National Greenhouse Gas Database
established under section 201, and as adjusted by the
appropriate sequestration discount rate established under
section 371; or
(C) submitting a greenhouse gas emission reduction (other
than a registered net increase in sequestration) that was
registered in the National Greenhouse Gas Database by a
person that is not a covered entity.
(b) Termination.--An entity that executes an agreement
described in subsection (a) may terminate the agreement at
any time.
(c) Failure To Meet Commitment.--If an entity that executes
an agreement described in subsection (a) fails to achieve the
level of emissions to which it committed by calendar year
2010--
(1) its requirements under section 301 shall be increased
by the amount of any tradeable allowances provided to it
under subsection (a)(1); and
(2) any tradeable allowances submitted thereafter shall be
counted first against the increase in those requirements.

Subtitle C--Climate Change Credit Corporation

SEC. 351. ESTABLISHMENT.

(a) In General.--The Climate Change Credit Corporation is
established as a nonprofit corporation without stock. The
Corporation shall not be considered to be an agency or
establishment of the United States Government.
(b) Applicable Laws.--The Corporation shall be subject to
the provisions of this title and, to the extent consistent
with this title, to the District of Columbia Business
Corporation Act.
(c) Board of Directors.--The Corporation shall have a board
of directors of 5 individuals who are citizens of the United
States, of whom 1 shall be elected annually by the board to
serve as chairman. No more than 3 members of the board
serving at any time may be affiliated with the same political
party. The members of the board shall be appointed by the
President of the United States, by and with the advice and
consent of the Senate and shall serve for terms of 5 years.

SEC. 352. PURPOSES AND FUNCTIONS.

(a) Trading.--The Corporation--
(1) shall receive and manage tradeable allowances allocated
to it under section 333(a)(2); and
(2) shall buy and sell tradeable allowances, whether
allocated to it under that section or obtained by purchase,
trade, or donation from other entities; but
(3) may not retire tradeable allowances unused.
(b) Use of Tradeable Allowances and Proceeds.--
(1) In general.--The Corporation shall use the tradeable
allowances, and proceeds derived from its trading activities
in tradeable allowances, to reduce costs borne by consumers
as a result of the greenhouse gas reduction requirements of
this Act. The reductions--
(A) may be obtained by buy-down, subsidy, negotiation of
discounts, consumer rebates, or otherwise;
(B) shall be, as nearly as possible, equitably distributed
across all regions of the United States; and
(C) may include arrangements for preferential treatment to
consumers who can least afford any such increased costs.
(2) Transition assistance to dislocated workers and
communities.--The Corporation shall allocate a percentage of
the proceeds derived from its trading activities in tradeable
allowances to provide transition assistance to dislocated
workers and communities. Transition assistance may take the
form of--
(A) grants to employers, employer associations, and
representatives of employees--
(i) to provide training, adjustment assistance, and
employment services to dislocated workers; and
(ii) to make income-maintenance and needs-related payments
to dislocated workers; and
(B) grants to State and local governments to assist
communities in attracting new employers or providing
essential local government services.
(3) Phase-out of transition assistance.--The percentage
allocated by the Corporation under paragraph (2)--
(A) shall be 20 percent for 2010;
(B) shall be reduced by 2 percentage points each year
thereafter; and
(C) may not be reduced below zero.
(4) Technology deployment programs.--The Corporation shall
establish and carry out a program, through direct grants,
revolving loan programs, or other financial measures, to
provide support for the deployment of technology to assist in
compliance with this Act by distributing the proceeds from no
less than 10 percent of the total allowances allocated to it.
The support shall include the following:
(A) Coal gasification combined-cycle and geological carbon
storage program.--The Corporation shall establish and carry
out a program, through direct grants, to provide incentives
for the repowering of existing facilities or construction of
new facilities producing electricity or other products from
coal gasification combined-cycle plants that capture and
geologically store at least 90 percent of the carbon dioxide
produced at the facility in accordance with requirements
established by the Administrator to ensure the permanence of
the storage and that such storage will not cause or
contribute to significant adverse effects on public health or
the environment. The Corporation shall ensure that no less
than 20 percent of the funding under this program is
distributed to rural electric cooperatives.
(B) Agricultural programs.--The Corporation shall establish
and carry out a program, through direct grants, revolving
loan programs, or other financial measures, to provide
incentives for greenhouse gas emissions reductions or net
increases in greenhouse gas sequestration on agricultural
lands. The program shall include incentives for--
(i) production of wind energy on agricultural lands;
(ii) agricultural management practices that achieve
verified, incremental increases in net carbon sequestration,
in accordance with the requirements established by the
Administrator under section 371; and
(iii) production of renewable fuels that, after
consideration of the energy needed to produce such fuels,
result in a net reduction in greenhouse gas emissions.

Subtitle D--Sequestration Accounting; Penalties

SEC. 371. SEQUESTRATION ACCOUNTING.

(a) Sequestration Accounting.--If a covered entity uses a
registered net increase in sequestration to satisfy the
requirements of section 301 for any year, that covered entity
shall submit information to the Administrator every 5 years
thereafter sufficient to

[[Page S13530]]

allow the Administrator to determine, using the methods and
standards created under section 204, whether that net
increase in sequestration still exists. Unless the
Administrator determines that the net increase in
sequestration continues to exist, the covered entity shall
offset any loss of sequestration by submitting additional
tradeable allowances of equivalent amount in the calender
year following that determination.
(b) Regulations Required.--The Secretary, acting through
the Under Secretary of Commerce for Science and Technology,
in coordination with the Secretary of Agriculture, the
Secretary of Energy, and the Administrator, shall issue
regulations establishing the sequestration accounting rules
for all classes of sequestration projects.
(c) Criteria for Regulations.--In issuing regulations under
this section, the Secretary shall use the following criteria:
(1) If the range of possible amounts of net increase in
sequestration for a particular class of sequestration project
is not more than 10 percent of the median of that range, the
amount of sequestration awarded shall be equal to the median
value of that range.
(2) If the range of possible amounts of net increase in
sequestration for a particular class of sequestration project
is more than 10 percent of the median of that range, the
amount of sequestration awarded shall be equal to the fifth
percentile of that range.
(3) The regulations shall include procedures for accounting
for potential leakage from sequestration projects and for
ensuring that any registered increase in sequestration is in
addition that which would have occurred if this Act had not
been enacted.
(d) Updates.--The Secretary shall update the sequestration
accounting rules for every class of sequestration project at
least once every 5 years.

SEC. 372. PENALTIES.

Any covered entity that fails to meet the requirements of
section 301 for a year shall be liable for a civil penalty,
payable to the Administrator, equal to thrice the market
value (determined as of the last day of the year at issue) of
the tradeable allowances that would be necessary for that
covered entity to meet those requirements on the date of the
emission that resulted in the violation.
______

SA 2029. Mr. ALLARD submitted an amendment intended to be proposed by
him to the bill H.R. 1904, to improve the capacity of the Secretary of
Agriculture and the Secretary of the Interior to plan and conduct
hazardous fuels reduction projects on National Forest System lands and
Bureau of Land Management lands aimed at protecting communities,
watersheds, and certain other at-risk lands from catastrophic wildfire,
to enhance efforts to protect watersheds and address threats to forest
and rangeland health, including catastrophic wildfire, across the
landscape, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of title VIII, add the following:

SEC. 8XX. INCREASE IN MAXIMUM FINES FOR VIOLATION OF PUBLIC
LAND REGULATIONS AND ESTABLISHMENT OF MINIMUM
FINE FOR VIOLATION OF PUBLIC LAND FIRE
REGULATIONS DURING FIRE BAN.

(a) Lands Under Jurisdiction of Bureau of Land
Management.--Section 303(a) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1733(a)) is amended--
(1) in the second sentence, by striking ``no more than
$1,000'' and inserting ``as provided in title 18, United
States Code,''; and
(2) by inserting after the second sentence the following:
``In the case of a regulation issued under this section
regarding the use of fire by individuals on the public lands,
if the violation of the regulation was the result of reckless
conduct and occurred in an area subject to a complete ban on
open fires, the fine may not be less than $500.''.
(b) National Park System Lands.--
(1) Fines.--Section 3 of the Act of August 25, 1916
(popularly known as the National Park Service Organic Act; 16
U.S.C. 3) is amended--
(A) by striking ``That the Secretary'' at the beginning of
the section and inserting ``(a) Regulations for Use and
Management of National Park System; Enforcement.--The
Secretary'';
(B) by striking ``$500'' and inserting ``$10,000''; and
(C) by inserting after the first sentence the following:
``In the case of a rule or regulation issued under this
subsection regarding the use of fire by individuals on such
lands, if the violation of the rule or regulation was the
result of reckless conduct and occurred in an area subject to
a complete ban on open fires, the fine may not be less than
$500.''.
(2) Conforming amendments.--Such section is further
amended--
(A) by striking ``He may also'' the first place it appears
and inserting the following:
``(b) Special Management Authorities.--The Secretary of the
Interior may'';
(B) by striking ``He may also'' the second place it appears
and inserting ``The Secretary may''; and
(C) by striking ``No natural,'' and inserting the
following:
``(c) Lease and Permit Authorities.--No natural''.
(c) National Forest System Lands.--The eleventh
undesignated paragraph under the heading ``surveying the
public lands'' of the Act of June 4, 1897 (16 U.S.C. 551), is
amended--
(1) by striking ``$500'' and inserting ``$10,000''; and
(2) by inserting after the first sentence the following:
``In the case of such a rule or regulation regarding the use
of fire by individuals on such lands, if the violation of the
rule or regulation was the result of reckless conduct and
occurred in an area subject to a complete ban on open fires,
the fine may not be less than $500.''.

____________________