S.Amdt. 4966

1. 1

   Change 1: Rewrites page 183, line 15 through page 184, line 1

   ReplacesPrinted page

   Removes page 183, line 15 through page 184, line 1 of the printed bill. See that page

   Inserted: (b) Quantities of Emission Allowances Allocated.--The quantity of emissions allowances allocated pursuant to subsection (a) shall be represented by the following percentages:

   Inserted: ------------------------------------------------------------------------Percentage for Calendar year distribution 2012-2021............................................... 15 2022.................................................... 15 2023.................................................... 15 2024.................................................... 15 2025.................................................... 15 2026.................................................... 15 2027.................................................... 15 2028.................................................... 15 2029.................................................... 15 2030.................................................... 15.

   Inserted: (c) Conditional Phase-Out.--

   Inserted: (1) In general.--If the President determines that, as a result of international global warming agreements, the problem of diversion of manufacturing from United States facilities to facilities of foreign countries without greenhouse gas regulation is mitigated sufficiently to substantially reduce the competitive disadvantage of United States manufacturers in domestic or international markets as a result of this Act, the President shall provide to the Administrator a notification of the determination.

   Inserted: (2) Action by administrator.--On receipt of a notification under paragraph (1), the Administrator, by regulation, shall--

   Inserted: (A) reduce the quantity of emission allowances provided under this subtitle sufficient to reflect the reduced competitive harm caused to energy-intensive manufactures as a result of this Act; or

   Inserted: (B) if the President determines that the competitive disadvantage to United States manufacturing has been eliminated, terminate allocations of emission allowances under this subtitle.

   Inserted: SEC. 542. DISTRIBUTION.

   Original wording

   Beginning on page 183, strike line 15 and all that follows through page 184, line 1, and insert the following:

2. 2

   Change 2: Rewrites page 185, line 18

   ReplacesPrinted page

   Removes page 185, line 18 of the printed bill. See that page

   Inserted: (b) Regulations.--

   Inserted: (1) In general.--Not later than 2 years after the

   Original wording

   On page 185, strike line 18 and insert the following:

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   Change 3: Inserts new text on page 185, line 24

   InsertsPrinted page

   Inserted: (2) Requirements.--

   Inserted: (A) Consideration of costs.--In establishing the system under paragraph (1), the Administrator shall take into consideration all categories of cost increases resulting from the implementation of this Act, including--

   Inserted: (i) cost increases relating to direct emissions (including process emissions) and indirect emissions; and

   Inserted: (ii) any increase in the cost of natural gas or any other relatively carbon-efficient fuel as a result of fuel substitution and related effects.

   Inserted: (B) Categories of currently operating facilities.--For purposes of subsection (d), the Administrator shall establish, by regulation, appropriate categories of currently operating facilities, including reasonable industry subsectors within a category, as the Administrator determines to be necessary to avoid inequitable distributions, taking into account the existence of currently operating facilities that--

   Inserted: (i) qualify as energy-intensive facilities; but

   Inserted: (ii) are affiliated with entities with substantially different emission or energy-consumption profiles.

   Inserted: (C) Allocations to individual facilities.--In establishing the system under paragraph (1), to fully reflect year-to-year changes in aggregate production levels, the Administrator shall provide for an adjustment factor for allocations to individual facilities under subsection (e) equal to the product obtained by multiplying--

   Inserted: (i) the quantity of emission allowances that would otherwise be allocated to an individual facility under subsection (e); and

   Inserted: (ii) the ratio that--

   Inserted: (I) the output from the individual facility during the calendar year immediately preceding the year of the distribution; bears to

   Inserted: (II) the average output from all individual facility during the 3-calendar year period ending on the date of enactment of this Act.

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   Inserted: (D) Maximum quantity.--In establishing the system under paragraph (1), the Administrator shall--

   Inserted: (i) ensure that the total quantity of emission allowances allocated to all facilities under this section for a calendar year does not exceed a quantity sufficient to offset the increases in costs of the facilities resulting from the implementation of this Act; and

   Inserted: (ii) if the Administrator determines that, for any calendar year, the total quantity of emission allowances allocated to all facilities under this section is less than or greater than the quantity described in clause (i), adjust allocations for subsequent calendar years appropriately, in accordance with procedures to be established by the Administrator.

   Original wording

   On page 185, after line 24, insert the following:

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   Change 4: Rewrites page 188, line 9 through page 189, line 3

   ReplacesPrinted page

   Removes page 188, line 9 through page 189, line 3 of the printed bill. See that page

   Inserted: (f) Transition to Intensity-Based Allocations.--

   Inserted: (1) In general.--Not later than 2 year after the date of enactment of this Act, the Administrator shall establish, by regulation, a revised method of allocating emission allowances under this subtitle to carbon-intensive industries, in accordance with this subsection, based on benchmarks for the emission efficiency or energy efficiency of each manufacturing process used in an industry of a facility that receives emission allowances under this subtitle.

   Inserted: (2) Phase-in schedule.--The revised method established under paragraph (1) shall--

   Inserted: (A) be implemented for calendar year 2017; and

   Inserted: (B) be phased into use uniformly and appropriately to ensure that the revised method is fully in effect for calendar year 2030.

   Inserted: (3) Total quantity of allowances.--The total quantity of emission allowances to be distributed for each calendar year shall be the quantity determined in accordance with section 541(b).

   Inserted: (4) Manufacturing processes.--

   Inserted: (A) Identification of processes.--The Administrator, in consultation with affected industries, shall identify, by regulation, each manufacturing process that will be subject to the revised method established under this subsection, including by examining and categorizing existing manufacturing processes used by the affected industries.

   Inserted: (B) Exemption.--The Administrator shall exempt from identification under subparagraph (A) any process that--

   Inserted: (i) is used by few facilities; or

   Inserted: (ii) results in relatively small total production rate.

   Inserted: (5) Benchmarks.--The Administrator shall establish benchmarks for emission efficiency and energy efficiency for purposes of this subsection--

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   Inserted: (A) based on the average efficiency of all facilities in the United States in using a manufacturing process, such that, on a graduated basis--

   Inserted: (i) any facility with above-average efficiency receives proportionately more emission allowances under this subtitle; and

   Inserted: (ii) any facility with below-average efficiency receives proportionately fewer emission allowances under this subtitle; and

   Inserted: (B) in a manner that reflects factors under the control of facilities, including by--

   Inserted: (i) establishing a formula for conversion of kilowatt hours to emissions produced, with respect to indirect emissions of facilities; and

   Inserted: (ii) priority given to energy efficiency, except in any case in which energy efficiency and emission efficiency are poorly correlated.

   Original wording

   Beginning on page 188, strike line 9 and all that follows through page 189, line 3, and insert the following:

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As printed