An amendment printed in part B of House Report 111-185 to strike everything and insert the text of H.R. 513, the "New Manhattan Project for Energy Independence.".

{time}  1245
AMERICAN CLEAN ENERGY AND SECURITY ACT OF 2009

Mr. WAXMAN. Madam Speaker, pursuant to H. Res. 587, I call up the
bill (H.R. 2454) to create clean-energy jobs, achieve energy
independence, reduce global warming pollution and transition to a
clean-energy economy, and ask for its immediate consideration in the
House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 587, in lieu of
the amendment recommended by the Committee on Energy and Commerce
printed in the bill, the amendment in the nature of a substitute
consisting of the text of H.R. 2998, modified by the amendment printed
in part A of House Report 111-185 is adopted and the bill, as amended,
is considered read.
The text of the bill, as amended, is as follows:

H.R. 2998

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``American
Clean Energy and Security Act of 2009''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. International participation.

TITLE I--CLEAN ENERGY

Subtitle A--Combined Efficiency and Renewable Electricity Standard

Sec. 101. Combined efficiency and renewable electricity standard.
Sec. 102. Clarifying State authority to adopt renewable energy
incentives.
Sec. 103. Federal renewable energy purchases.

Subtitle B--Carbon Capture and Sequestration

Sec. 111. National strategy.
Sec. 112. Regulations for geologic sequestration sites.
``Sec. 813. Geologic sequestration sites.
Sec. 113. Studies and reports.
Sec. 114. Carbon capture and sequestration demonstration and early
deployment program.
Sec. 115. Commercial deployment of carbon capture and sequestration
technologies.
``Sec. 786. Commercial deployment of carbon capture and sequestration
technologies.
Sec. 116. Performance standards for coal-fueled power plants.
``Sec. 812. Performance standards for new coal-fired power plants.

Subtitle C--Clean Transportation

Sec. 121. Electric vehicle infrastructure.
Sec. 122. Large-scale vehicle electrification program.
Sec. 123. Plug-in electric drive vehicle manufacturing.
Sec. 124. Investment in clean vehicles.
Sec. 125. Advanced technology vehicle manufacturing incentive loans.
Sec. 126. Amendment to renewable fuels standard.
Sec. 127. Open fuel standard.
Sec. 128. Diesel emissions reduction.
Sec. 129. Loan guarantees for projects to construct renewable fuel
pipelines.
Sec. 130. Fleet vehicles.
Sec. 130A. Report on natural gas vehicle emissions reductions.

Subtitle D--State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts.
Sec. 132. Support of State renewable energy and energy efficiency
programs.
Sec. 133. Support of Indian renewable energy and energy efficiency
programs.

Subtitle E--Smart Grid Advancement

Sec. 141. Definitions.
Sec. 142.  Assessment of Smart Grid cost effectiveness in products.
Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE
labels.
Sec. 144. Smart Grid peak demand reduction goals.
Sec. 145.  Reauthorization of energy efficiency public information
program to include Smart Grid information.
Sec. 146. Inclusion of Smart Grid features in appliance rebate program.

Subtitle F--Transmission Planning

Sec. 151. Transmission planning and siting.
Sec. 152. Net metering for Federal agencies.
Sec. 153. Support for qualified advanced electric transmission
manufacturing plants, qualified high efficiency
transmission property, and qualified advanced electric
transmission property.

Subtitle G--Technical Corrections to Energy Laws

Sec. 161. Technical corrections to Energy Independence and Security Act
of 2007.
Sec. 162. Technical corrections to Energy Policy Act of 2005.

Subtitle H--Energy and Efficiency Centers and Research

Sec. 171. Energy Innovation Hubs.
Sec. 172. Advanced energy research.
Sec. 173. Building Assessment Centers.
Sec. 174. Centers for Energy and Environmental Knowledge and Outreach.

Subtitle I--Nuclear and Advanced Technologies

Sec. 181. Revisions to loan guarantee program authority.
Sec. 182. Purpose.
Sec. 183. Definitions.
Sec. 184. Clean energy investment fund.
Sec. 185. Energy technology deployment goals.
Sec. 186. Clean energy deployment administration.
Sec. 187. Direct support.

[[Page H7472]]

Sec. 188. Indirect support.
Sec. 189. Federal credit authority.
Sec. 190. General provisions.
Sec. 191. Conforming amendments.

Subtitle J--Miscellaneous

Sec. 195. Increased hydroelectric generation at existing Federal
facilities.
Sec. 196. Clean technology business competition grant program.
Sec. 197. National Bioenergy Partnership.
Sec. 198. Office of Consumer Advocacy.
Sec. 199. Development corporation for renewable power borrowing
authority.
Sec. 199A. Study.

TITLE II--ENERGY EFFICIENCY

Subtitle A--Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes.
Sec. 202. Building retrofit program.
Sec. 203. Energy efficient manufactured homes.
Sec. 204. Building energy performance labeling program.
Sec. 205. Tree planting programs.
Sec. 206. Energy efficiency for data center buildings.
Sec. 207. Community building code.
Sec. 208. Solar energy systems building permit requirement for receipt
of community development block grant funds.

Subtitle B--Lighting and Appliance Energy Efficiency Programs

Sec. 211. Lighting efficiency standards.
Sec. 212. Other appliance efficiency standards.
Sec. 213. Appliance efficiency determinations and procedures.
Sec. 214. Best-in-Class Appliances Deployment Program.
Sec. 215. WaterSense.
Sec. 216. Federal procurement of water efficient products.
Sec. 216A. Transmission planning.
Sec. 216B. Siting and construction in the western interconnection.
Sec. 217. Water efficient product rebate programs.
Sec. 218. Certified stoves program.
Sec. 219. Energy Star standards.

Subtitle C--Transportation Efficiency

Sec. 221. Emissions standards.

``Part B--Mobile Sources

``Sec. 821. Greenhouse gas emission standards for mobile sources.
Sec. 222. Greenhouse gas emissions reductions through transportation
efficiency.

``Part D--Transportation Emissions

``Sec. 841. Greenhouse gas emissions reductions through transportation
efficiency.
Sec. 223. SmartWay transportation efficiency program.
``Sec. 822. SmartWay transportation efficiency program.
Sec. 224. State vehicle fleets.

Subtitle D--Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards.
Sec. 242. Electric and thermal waste energy recovery award program.
Sec. 243. Clarifying election of waste heat recovery financial
incentives.
Sec. 244. Motor market assessment and commercial awareness program.
Sec. 245. Motor efficiency rebate program.

Subtitle E--Improvements in Energy Savings Performance Contracting

Sec. 251. Energy savings performance contracts.

Subtitle F--Public Institutions

Sec. 261. Public institutions.
Sec. 262. Community energy efficiency flexibility.
Sec. 263. Small community joint participation.
Sec. 264. Low income community energy efficiency program.
Sec. 265. Consumer behavior research.

Subtitle G--Miscellaneous

Sec. 271. Energy efficient information and communications technologies.
Sec. 272. National energy efficiency goals.
Sec. 273. Affiliated island energy independence team.
Sec. 274. Product carbon disclosure program.

TITLE III--REDUCING GLOBAL WARMING POLLUTION

Sec. 301. Short title.

Subtitle A--Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution.

``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

``Part A--Global Warming Pollution Reduction Goals and Targets

``Sec. 701. Findings and purpose.
``Sec. 702. Economy-wide reduction goals.
``Sec. 703. Reduction targets for specified sources.
``Sec. 704. Supplemental pollution reductions.
``Sec. 705. Review and program recommendations.
``Sec. 706. National Academy review.
``Sec. 707. Presidential response and recommendations.

``Part B--Designation and Registration of Greenhouse Gases

``Sec. 711. Designation of greenhouse gases.
``Sec. 712. Carbon dioxide equivalent value of greenhouse gases.
``Sec. 713. Greenhouse gas registry.

``Part C--Program Rules

``Sec. 721. Emission allowances.
``Sec. 722. Prohibition of excess emissions.
``Sec. 723. Penalty for noncompliance.
``Sec. 724. Trading.
``Sec. 725. Banking and borrowing.
``Sec. 726. Strategic reserve.
``Sec. 727. Permits.
``Sec. 728. International emission allowances.

``Part D--Offsets

``Sec. 731. Offsets Integrity Advisory Board.
``Sec. 732. Establishment of offsets program.
``Sec. 733. Eligible project types.
``Sec. 734. Requirements for offset projects.
``Sec. 735. Approval of offset projects.
``Sec. 736. Verification of offset projects.
``Sec. 737. Issuance of offset credits.
``Sec. 738. Audits.
``Sec. 739. Program review and revision.
``Sec. 740. Early offset supply.
``Sec. 741. Environmental considerations.
``Sec. 742. Trading.
``Sec. 743. International offset credits.

``Part E--Supplemental Emissions Reductions From Reduced Deforestation

``Sec. 751. Definitions.
``Sec. 752. Findings.
``Sec. 753. Supplemental emissions reductions through reduced
deforestation.
``Sec. 754. Requirements for international deforestation reduction
program.
``Sec. 755. Reports and reviews.
``Sec. 756. Legal effect of part.
Sec. 312. Definitions.
``Sec. 700. Definitions.

Subtitle B--Disposition of Allowances

Sec. 321. Disposition of allowances for global warming pollution
reduction program.

``Part H--Disposition of Allowances

``Sec. 781. Allocation of allowances for supplemental reductions.
``Sec. 782. Allocation of emission allowances.
``Sec. 783. Electricity consumers.
``Sec. 784. Natural gas consumers.
``Sec. 785. Home heating oil, propane, and kerosene consumers.
``Sec. 787. Allocations to refineries.
``Sec. 788. [SECTION RESERVED].
``Sec. 789. Climate change consumer refunds.
``Sec. 790. Exchange for State-issued allowances.
``Sec. 791. Auction procedures.
``Sec. 792. Auctioning allowances for other entities.
``Sec. 793. Establishment of funds.
``Sec. 794. Oversight of allocations.

Subtitle C--Additional Greenhouse Gas Standards

Sec. 331. Greenhouse gas standards.

``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

``Sec. 801. Definitions.

``Part A--Stationary Source Standards

``Sec. 811. Standards of performance.

``Part C--Exemptions From Other Programs

``Sec. 831. Criteria pollutants.
``Sec. 832. International air pollution.
``Sec. 833. Hazardous air pollutants.
``Sec. 834. New source review.
``Sec. 835. Title V permits.
Sec. 332. HFC Regulation.
Sec. 333. Black carbon.

``Part E--Black Carbon

``Sec. 851. Black carbon.
Sec. 334. States.
Sec. 335. State programs.

``Part F--Miscellaneous

``Sec. 861. State programs.
``Sec. 862. Grants for support of air pollution control programs.
Sec. 336. Enforcement.
Sec. 337. Conforming amendments.
Sec. 338. Davis-Bacon compliance.
Sec. 339. National strategy for domestic biological carbon
sequestration.

Subtitle D--Carbon Market Assurance

Sec. 341. Carbon market assurance.
Sec. 342. Carbon derivative markets.

Subtitle E--Additional Market Assurance

Sec. 351. Regulation of certain transactions in derivatives involving
energy commodities.
Sec. 352. No effect on authority of the Federal Energy Regulatory
Commission.
Sec. 353. Inspector General of the Commodity Futures Trading
Commission.
Sec. 354. Settlement and clearing through registered derivatives
clearing organizations.
Sec. 355. Limitation on eligibility to purchase a credit default swap.
Sec. 356. Transaction fees.
Sec. 357. No effect on antitrust law or authority of the Federal Trade
Commission.
Sec. 358. Effect of derivatives regulatory reform legislation.
Sec. 359. Cease-and-desist authority.
Sec. 360. Presidential review of regulations.

[[Page H7473]]

TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

Subtitle A--Ensuring Real Reductions in Industrial Emissions

Sec. 401. Ensuring real reductions in industrial emissions.

``Part F--Ensuring Real Reductions in Industrial Emissions

``Sec. 761. Purposes.
``Sec. 762. International negotiations.
``Sec. 763. Definitions.

``subpart 1--emission allowance rebate program

``Sec. 764. Eligible industrial sectors.
``Sec. 765. Distribution of emission allowance rebates.

``subpart 2--international reserve allowance program

``Sec. 766. International reserve allowance program.

``subpart 3--presidential determination

``Sec. 767. Presidential reports and determinations.

Subtitle B--Green Jobs and Worker Transition

Part 1--Green Jobs

Sec. 421. Clean energy curriculum development grants.
Sec. 422. Increased funding for energy worker training program.

Part 2--Climate Change Worker Adjustment Assistance

Sec. 425. Petitions, eligibility requirements, and determinations.
Sec. 426. Program benefits.
Sec. 427. General provisions.

Subtitle C--Consumer Assistance

Sec. 431. Energy refund program.
Sec. 432. Modification of earned income credit amount for individuals
with no qualifying children.
Sec. 433. Protection of Social Security and Medicare trust funds.

Subtitle D--Exporting Clean Technology

Sec. 441. Findings and purposes.
Sec. 442. Definitions.
Sec. 443. Governance.
Sec. 444. Determination of eligible countries.
Sec. 445. Qualifying activities.
Sec. 446. Assistance.

Subtitle E--Adapting to Climate Change

Part 1--Domestic Adaptation

subpart a--national climate change adaptation program

Sec. 451. Global change research and data management.
Sec. 452. National Climate Service.
Sec. 453. State programs to build resilience to climate change impacts.

subpart b--public health and climate change

Sec. 461. Sense of Congress on public health and climate change.
Sec. 462. Relationship to other laws.
Sec. 463. National strategic action plan.
Sec. 464. Advisory board.
Sec. 465. Reports.
Sec. 466. Definitions.
Sec. 467. Climate Change Health Protection and Promotion Fund.

subpart c--natural resource adaptation

Sec. 471. Purposes.
Sec. 472. Natural resources climate change adaptation policy.
Sec. 473. Definitions.
Sec. 474. Council on Environmental Quality.
Sec. 475. Natural Resources Climate Change Adaptation Panel.
Sec. 476. Natural Resources Climate Change Adaptation Strategy.
Sec. 477. Natural resources adaptation science and information.
Sec. 478. Federal natural resource agency adaptation plans.
Sec. 479. State natural resources adaptation plans.
Sec. 480. Natural Resources Climate Change Adaptation Fund.
Sec. 481. National Wildlife Habitat and Corridors Information Program.
Sec. 482. Additional provisions regarding Indian tribes.

Part 2--International Climate Change Adaptation Program

Sec. 491. Findings and purposes.
Sec. 492. Definitions.
Sec. 493. International Climate Change Adaptation Program.
Sec. 494. Distribution of allowances.
Sec. 495. Bilateral assistance.

SEC. 2. DEFINITIONS.

For purposes of this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) State.--The term ``State'' has the meaning given that
term in section 302 of the Clean Air Act.

SEC. 3. INTERNATIONAL PARTICIPATION.

The Administrator, in consultation with the Department of
State and the United States Trade Representative, shall
annually prepare and certify a report to the Congress
regarding whether China and India have adopted greenhouse gas
emissions standards at least as strict as those standards
required under this Act. If the Administrator determines that
China and India have not adopted greenhouse gas emissions
standards at least as stringent as those set forth in this
Act, the Administrator shall notify each Member of Congress
of his determination, and shall release his determination to
the media.

TITLE I--CLEAN ENERGY

Subtitle A--Combined Efficiency and Renewable Electricity Standard

SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY
STANDARD.

(a) In General.--Title VI of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601 and following) is
amended by adding at the end the following:

``SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY
STANDARD.

``(a) Definitions.--For purposes of this section:
``(1) CHP savings.--The term `CHP savings' means--
``(A) CHP system savings from a combined heat and power
system that commences operation after the date of enactment
of this section; and
``(B) the increase in CHP system savings from, at any time
after the date of the enactment of this section, upgrading,
replacing, expanding, or increasing the utilization of a
combined heat and power system that commenced operation on or
before the date of enactment of this section.
``(2) CHP system savings.--The term `CHP system savings'
means the increment of electric output of a combined heat and
power system that is attributable to the higher efficiency of
the combined system (as compared to the efficiency of
separate production of the electric and thermal outputs).
``(3) Combined heat and power system.--The term `combined
heat and power system' means a system that uses the same
energy source both for the generation of electrical or
mechanical power and the production of steam or another form
of useful thermal energy, provided that--
``(A) the system meets such requirements relating to
efficiency and other operating characteristics as the
Commission may promulgate by regulation; and
``(B) the net sales of electricity by the facility to
customers not consuming the thermal output from that facility
will not exceed 50 percent of total annual electric
generation by the facility.
``(4) Customer facility savings.--The term `customer
facility savings' means a reduction in end-use electricity
consumption (including recycled energy savings) at a facility
of an end-use consumer of electricity served by a retail
electric supplier, as compared to--
``(A) in the case of a new facility, consumption at a
reference facility of average efficiency;
``(B) in the case of an existing facility, consumption at
such facility during a base period, except as provided in
subparagraphs (C) and (D);
``(C) in the case of new equipment that replaces existing
equipment with remaining useful life, the projected
consumption of the existing equipment for the remaining
useful life of such equipment, and thereafter, consumption of
new equipment of average efficiency of the same equipment
type; and
``(D) in the case of new equipment that replaces existing
equipment at the end of the useful life of the existing
equipment, consumption by new equipment of average efficiency
of the same equipment type.
``(5) Distributed renewable generation facility.--The term
`distributed renewable generation facility' means a facility
that--
``(A) generates renewable electricity;
``(B) primarily serves 1 or more electricity consumers at
or near the facility site; and
``(C) is no greater than--
``(i) 2 megawatts in capacity; or
``(ii) 4 megawatts in capacity, in the case of a facility
that is placed in service after the date of enactment of this
section and generates electricity from a renewable energy
resource other than by means of combustion.
``(6) Electricity savings.--The term `electricity savings'
means reductions in electricity consumption, relative to
business-as-usual projections, achieved through measures
implemented after the date of enactment of this section,
limited to--
``(A) customer facility savings of electricity, adjusted to
reflect any associated increase in fuel consumption at the
facility;
``(B) reductions in distribution system losses of
electricity achieved by a retail electricity distributor, as
compared to losses attributable to new or replacement
distribution system equipment of average efficiency;
``(C) CHP savings; and
``(D) fuel cell savings.
``(7) Central procurement state.--The term `central
procurement State' means a State that, as of January 1, 2009,
had adopted and implemented a legally enforceable mandate
that, in lieu of requiring utilities to submit credits or
certificates issued based on generation of electricity from
(or to purchase or generate electricity from) resources
defined by the State as renewable, requires retail electric
suppliers to collect payments from electricity ratepayers
within the State that are used for central procurement, by a
State agency or a public benefit corporation established
pursuant to State law, of credits or certificates issued
based on generation of electricity from resources defined by
the State as renewable.
``(8) Federal renewable electricity credit.--The term
`Federal renewable electricity credit' means a credit,
representing one megawatt hour of renewable electricity,
issued pursuant to subsection (e).
``(9) Fuel cell.--The term `fuel cell' means a device that
directly converts the chemical energy of a fuel and an
oxidant into electricity by electrochemical processes
occurring at separate electrodes in the device.

[[Page H7474]]

``(10) Fuel cell savings.--The term `fuel cell savings'
means the electricity saved by a fuel cell that is installed
after the date of enactment of this section, or by upgrading
a fuel cell that commenced operation on or before the date of
enactment of this section, as a result of the greater
efficiency with which the fuel cell transforms fuel into
electricity as compared with sources of electricity delivered
through the grid, provided that--
``(A) the fuel cell meets such requirements relating to
efficiency and other operating characteristics as the
Commission may promulgate by regulation; and
``(B) the net sales of electricity from the fuel cell to
customers not consuming the thermal output from the fuel
cell, if any, do not exceed 50 percent of the total annual
electricity generation by the fuel cell.
``(12) Other qualifying energy resource.--The term `other
qualifying energy resource' means any of the following:
``(A) Landfill gas.
``(B) Wastewater treatment gas.
``(C) Coal mine methane used to generate electricity at or
near the mine mouth.
``(D) Qualified waste-to-energy.
``(13) Qualified hydropower.--The term `qualified
hydropower' means--
``(A) energy produced from increased efficiency achieved,
or additions of capacity made, on or after January 1, 1988,
at a hydroelectric facility that was placed in service before
that date and does not include additional energy generated as
a result of operational changes not directly associated with
efficiency improvements or capacity additions; or
``(B) energy produced from generating capacity added to a
dam on or after January 1, 1988, provided that the Commission
certifies that--
``(i) the dam was placed in service before the date of the
enactment of this section and was operated for flood control,
navigation, or water supply purposes and was not producing
hydroelectric power prior to the addition of such capacity;
``(ii) the hydroelectric project installed on the dam is
licensed (or is exempt from licensing) by the Commission and
is in compliance with the terms and conditions of the license
or exemption, and with other applicable legal requirements
for the protection of environmental quality, including
applicable fish passage requirements; and
``(iii) the hydroelectric project installed on the dam is
operated so that the water surface elevation at any given
location and time that would have occurred in the absence of
the hydroelectric project is maintained, subject to any
license or exemption requirements that require changes in
water surface elevation for the purpose of improving the
environmental quality of the affected waterway.
``(14) Qualified waste-to-energy.--The term `qualified
waste-to-energy' means energy from the combustion of
municipal solid waste or construction, demolition, or
disaster debris, or from the gasification or pyrolization of
such waste or debris and the combustion of the resulting gas
at the same facility, provided that--
``(A) such term shall include only the energy derived from
the non-fossil biogenic portion of such waste or debris;
``(B) the Commission determines, with the concurrence of
the Administrator of the Environmental Protection Agency,
that the total lifecycle greenhouse gas emissions
attributable to the generation of electricity from such waste
or debris are lower than those attributable to the likely
alternative method of disposing of such waste or debris; and
``(C) the owner or operator of the facility generating
electricity from such energy provides to the Commission, on
an annual basis--
``(i) a certification that the facility is in compliance
with all applicable State, tribal, and Federal environmental
permits;
``(ii) in the case of a facility that commenced operation
before the date of enactment of this section, a certification
that the facility meets emissions standards promulgated under
sections 112 or 129 of the Clean Air Act (42 U.S.C. 7412 or
7429) that apply as of the date of enactment of this section
to new facilities within the relevant source category; and
``(iii) in the case of the combustion, pyrolization, or
gasification of municipal solid waste, a certification that
each local government unit from which such waste originates
operates, participates in the operation of, contracts for, or
otherwise provides for, recycling services for its residents.
``(15) Recycled energy savings.--The term `recycled energy
savings' means a reduction in electricity consumption that
results from a modification of an industrial or commercial
system that commenced operation before the date of enactment
of this section, in order to recapture electrical,
mechanical, or thermal energy that would otherwise be wasted.
``(16) Renewable biomass.--The term `renewable biomass'
means any of the following:
``(A) Materials, pre-commercial thinnings, or removed
invasive species from National Forest System land and public
lands (as defined in section 103 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1702)), including those
that are byproducts of preventive treatments (such as trees,
wood, brush, thinnings, chips, and slash), that are removed
as part of a federally recognized timber sale, or that are
removed to reduce hazardous fuels, to reduce or contain
disease or insect infestation, or to restore ecosystem
health, and that are--
``(i) not from components of the National Wilderness
Preservation System, Wilderness Study Areas, Inventoried
Roadless Areas, old growth stands, late-successional stands
(except for dead, severely damaged, or badly infested trees),
components of the National Landscape Conservation System,
National Monuments, National Conservation Areas, Designated
Primitive Areas, or Wild and Scenic Rivers corridors;
``(ii) harvested in environmentally sustainable quantities,
as determined by the appropriate Federal land manager; and
``(iii) harvested in accordance with Federal and State law,
and applicable land management plans.
``(B) Any organic matter that is available on a renewable
or recurring basis from non-Federal land or land belonging to
an Indian or Indian tribe that is held in trust by the United
States or subject to a restriction against alienation imposed
by the United States, including--
``(i) renewable plant material, including--

``(I) feed grains;
``(II) other agricultural commodities;
``(III) other plants and trees; and
``(IV) algae; and

``(ii) waste material, including--

``(I) crop residue;
``(II) other vegetative waste material (including wood
waste and wood residues);
``(III) animal waste and byproducts (including fats, oils,
greases, and manure);
``(IV) construction waste; and
``(V) food waste and yard waste.

``(C) Residues and byproducts from wood, pulp, or paper
products facilities.''.
``(17) Renewable electricity.--The term `renewable
electricity' means electricity generated (including by means
of a fuel cell) from a renewable energy resource or other
qualifying energy resources.
``(18) Renewable energy resource.--The term `renewable
energy resource' means each of the following:
``(A) Wind energy.
``(B) Solar energy.
``(C) Geothermal energy.
``(D) Renewable biomass.
``(E) Biogas derived exclusively from renewable biomass.
``(F) Biofuels derived exclusively from renewable biomass.
``(G) Qualified hydropower.
``(H) Marine and hydrokinetic renewable energy, as that
term is defined in section 632 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17211).
``(19) Retail electric supplier.--
``(A) In general.--The term `retail electric supplier'
means, for any given year, an electric utility that sold not
less than 4,000,000 megawatt hours of electric energy to
electric consumers for purposes other than resale during the
preceding calendar year.
``(B) Inclusions and limitations.--For purposes of
determining whether an electric utility qualifies as a retail
electric supplier under subparagraph (A)--
``(i) the sales of any affiliate of an electric utility to
electric consumers, other than sales to the affiliate's
lessees or tenants, for purposes other than resale shall be
considered to be sales of such electric utility; and
``(ii) sales by any electric utility to an affiliate,
lessee, or tenant of such electric utility shall not be
treated as sales to electric consumers.
``(C) Affiliate.--For purposes of this paragraph, the term
`affiliate' when used in relation to a person, means another
person that directly or indirectly owns or controls, is owned
or controlled by, or is under common ownership or control
with, such person, as determined under regulations
promulgated by the Commission.
``(20) Retail electric supplier's base amount.--The term
`retail electric supplier's base amount' means the total
amount of electric energy sold by the retail electric
supplier, expressed in megawatt hours, to electric customers
for purposes other than resale during the relevant calendar
year, excluding--
``(A) electricity generated by a hydroelectric facility
that is not qualified hydropower;
``(B) electricity generated by a nuclear generating unit
placed in service after the date of enactment of this
section; and
``(C) the proportion of electricity generated by a fossil-
fueled generating unit that is equal to the proportion of
greenhouse gases produced by such unit that are captured and
geologically sequestered.
``(21) Retire and retirement.--The terms `retire' and
`retirement' with respect to a Federal renewable electricity
credit, means to disqualify such credit for any subsequent
use under this section, regardless of whether the use is a
sale, transfer, exchange, or submission in satisfaction of a
compliance obligation.
``(22) Third-party efficiency provider.--The term `third-
party efficiency provider' means any retailer, building
owner, energy service company, financial institution or other
commercial, industrial or nonprofit entity that is capable of
providing electricity savings in accordance with the
requirements of this section.
``(23) Total annual electricity savings.--The term `total
annual electricity savings' means electricity savings during
a specified calendar year from measures implemented since the
date of the enactment of this section, taking into account
verified measure lifetimes or verified annual savings
attrition

[[Page H7475]]

rates, as determined in accordance with such regulations as
the Commission may promulgate and measured in megawatt hours.
``(b) Annual Compliance Obligation.--
``(1) In general.--For each of calendar years 2012 through
2039, not later than March 31 of the following calendar year,
each retail electric supplier shall submit to the Commission
an amount of Federal renewable electricity credits and
demonstrated total annual electricity savings that, in the
aggregate, is equal to such retail electric supplier's annual
combined target as set forth in subsection (d), except as
otherwise provided in subsection (h).
``(2) Demonstration of savings.--For purposes of this
subsection, submission of demonstrated total annual
electricity savings means submission of a report that
demonstrates, in accordance with the requirements of
subsection (f), the total annual electricity savings achieved
by the retail electric supplier within the relevant
compliance year.
``(3) Renewable electricity credits portion.--Except as
provided in paragraph (4), each retail electric supplier must
submit Federal renewable electricity credits equal to at
least three quarters of the retail electric supplier's annual
combined target.
``(4) State petition.--
``(A) In general.--Upon written request from the Governor
of any State (including, for purposes of this paragraph, the
Mayor of the District of Columbia), the Commission shall
increase, to not more than two fifths, the proportion of the
annual combined targets of retail electric suppliers located
within such State that may be met through submission of
demonstrated total annual electricity savings, provided that
such increase shall be effective only with regard to the
portion of a retail electric supplier's annual combined
target that is attributable to electricity sales within such
State.
``(B) Contents.--A Governor's request under this paragraph
shall include an explanation of the Governor's rationale for
determining, after consultation with the relevant State
regulatory authority and other retail electricity ratemaking
authorities within the State, to make such request. The
request shall specify the maximum proportion of annual
combined targets (not more than two fifths) that can be met
through demonstrated total annual electricity savings, and
the period for which such proportion shall be effective.
``(C) Revision.--The Governor of any State may, after
consultation with the relevant State regulatory authority and
other retail electricity ratemaking authorities within the
State, submit a written request for revocation or revision of
a previous request submitted under this paragraph. The
Commission shall grant such request, provided that--
``(i) any revocation or revision shall not apply to the
combined annual target for any year that is any earlier than
2 calendar years after the calendar year in which such
request is submitted, so as to provide retail electric
suppliers with adequate notice of such change; and
``(ii) any revision shall meet the requirements of
subparagraph (A).
``(c) Establishment of Program.--Not later than 1 year
after the date of enactment of this section, the Commission
shall promulgate regulations to implement and enforce the
requirements of this section. In promulgating such
regulations, the Commission shall, to the extent
practicable--
``(1) preserve the integrity, and incorporate best
practices, of existing State and tribal renewable electricity
and energy efficiency programs;
``(2) rely upon existing and emerging State, tribal, or
regional tracking systems that issue and track non-Federal
renewable electricity credits; and
``(3) cooperate with the States and Indian tribes to
facilitate coordination between State, tribal, and Federal
renewable electricity and energy efficiency programs and to
minimize administrative burdens and costs to retail electric
suppliers.
``(d) Annual Compliance Requirement.--
``(1) Annual combined targets.--For each of calendar years
2012 through 2039, a retail electric supplier's annual
combined target shall be the product of--
``(A) the required annual percentage for such year, as set
forth in paragraph (2); and
``(B) the retail electric supplier's base amount for such
year.
``(2) Required annual percentage.--For each of calendar
years 2012 through 2039, the required annual percentage shall
be as follows:

``Calendar year                              Required annual percentage
2012................................................................6.0
2013................................................................6.0
2014................................................................9.5
2015................................................................9.5
2016...............................................................13.0
2017...............................................................13.0
2018...............................................................16.5
2019...............................................................16.5
2020...............................................................20.0
2021 through 2039..................................................20.0

``(e) Federal Renewable Electricity Credits.--
``(1) In general.--The regulations promulgated under this
section shall include provisions governing the issuance,
tracking, and verification of Federal renewable electricity
credits. Except as provided in paragraphs (2), (3), and (4)
of this subsection, the Commission shall issue to each
generator of renewable electricity, 1 Federal renewable
electricity credit for each megawatt hour of renewable
electricity generated by such generator after December 31,
2011. The Commission shall assign a unique serial number to
each Federal renewable electricity credit.
``(2) Generation from certain state renewable electricity
programs.--``(A) Except as provided in subparagraph (B),
where renewable electricity is generated with the support of
payments from a retail electric supplier pursuant to a State
renewable electricity program (whether through State
alternative compliance payments or through payments to a
State renewable electricity procurement fund or entity), the
Commission shall issue Federal renewable electricity credits
to such retail electric supplier for the proportion of the
relevant renewable electricity generation that is
attributable to the retail electric supplier's payments, as
determined pursuant to regulations issued by the Commission.
For any remaining portion of the relevant renewable
electricity generation, the Commission shall issue Federal
renewable electricity credits to the generator, as provided
in paragraph (1), except that in no event shall more than 1
Federal renewable electricity credit be issued for the same
megawatt hour of electricity. In determining how Federal
renewable electricity credits will be apportioned among
retail electric suppliers and generators in such
circumstances, the Commission shall consider information and
guidance furnished by the relevant State or States.
``(B) In the case of a central procurement State that
pursuant to subsection (g) has assumed responsibility for
compliance with the requirements of subsection (b), the
Commission shall issue directly to the State Federal
renewable electricity credits for any renewable electricity
for which the State, pursuant to a mandate described in
subsection (a)(7), has centrally procured credits or
certificates issued based on generation of such renewable
electricity.
``(3) Certain power sales contracts.--Except as otherwise
provided in paragraph (2), when a generator has sold
renewable electricity to a retail electric supplier under a
contract for power from a facility placed in service before
the date of enactment of this section, and the contract does
not provide for the determination of ownership of the Federal
renewable electricity credits associated with such
generation, the Commission shall issue such Federal renewable
electricity credits to the retail electric supplier for the
duration of the contract.
``(4) Credit multiplier for distributed renewable
generation.--
``(A) In general.--Except as provided in subparagraph (B),
the Commission shall issue 3 Federal renewable electricity
credits for each megawatt hour of renewable electricity
generated by a distributed renewable generation facility.
``(B) Adjustment.--Except as provided in subparagraph (C),
not later than January 1, 2014, and not less frequently than
every 4 years thereafter, the Commission shall review the
effect of this paragraph and shall, as necessary, reduce the
number of Federal renewable electricity credits per megawatt
hour issued under this paragraph for any given energy source
or technology, but not below 1, to ensure that such number is
no higher than the Commission determines is necessary to make
distributed renewable generation facilities using such source
or technology cost competitive with other sources of
renewable electricity generation.
``(C) Facilities placed in service after enactment.--For
any distributed renewable generation facility placed in
service after the date of enactment of this section,
subparagraph (B) shall not apply for the first 10 years after
the date on which the facility is placed in service. For each
year during such 10-year period, the Commission shall issue
to the facility the same number of Federal renewable
electricity credits per megawatt hour as are issued to that
facility in the year in which such facility is placed in
service. After such 10-year period, the Commission shall
issue Federal renewable electricity credits to the facility
in accordance with the current multiplier as determined
pursuant to subparagraph (B).
``(5) Credits based on qualified hydropower.--For purposes
of this subsection, the number of Federal renewable
electricity credits issued for qualified hydropower shall be
calculated--
``(A) based solely on the increase in average annual
generation directly resulting from the efficiency
improvements or capacity additions described in subsection
(a)(13)(A); and
``(B) using the same water flow information used to
determine a historic average annual generation baseline for
the hydroelectric facility, as certified by the Commission.
``(6) Generation from qualified waste-to-energy.--In the
case of electricity generated from the combustion of any
municipal solid waste or construction, demolition, or
disaster debris that is included in the definition of
renewable biomass, or from the gasification or pyrolization
of such waste or debris and the combustion of the resulting
gas at the same facility, the Commission shall issue Federal
renewable electricity credits only for electricity generated
from qualified waste-to-energy.
``(7) Generation from mixed renewable and nonrenewable
resources.--If electricity is generated using both a
renewable energy resource or other qualifying energy

[[Page H7476]]

resource and an energy source that is not a renewable energy
resource or other qualifying energy resource (as, for
example, in the case of co-firing of renewable biomass and
fossil fuel), the Commission shall issue Federal renewable
electricity credits based on the proportion of the
electricity that is attributable to the renewable energy
resource or other qualifying energy resource.
``(8) Prohibition against double-counting.--Except as
provided in paragraph (4) of this subsection, the Commission
shall ensure that no more than 1 Federal renewable
electricity credit will be issued for any megawatt hour of
renewable electricity and that no Federal renewable
electricity credit will be used more than once for compliance
with this section.
``(9) Trading.--The lawful holder of a Federal renewable
electricity credit may sell, exchange, transfer, submit for
compliance in accordance with subsection (b), or submit such
credit for retirement by the Commission.
``(10) Banking.--A Federal renewable electricity credit may
be submitted in satisfaction of the compliance obligation set
forth in subsection (b) for the compliance year in which the
credit was issued or for any of the 3 immediately subsequent
compliance years. The Commission shall retire any Federal
renewable electricity credit that has not been retired by
April 2 of the calendar year that is 3 years after the
calendar year in which the credit was issued.
``(11) Retirement.--The Commission shall retire a Federal
renewable electricity credit immediately upon submission by
the lawful holder of such credit, whether in satisfaction of
a compliance obligation under subsection (b) or on some other
basis.
``(f) Electricity Savings.--
``(1) Standards for measurement of savings.--As part of the
regulations promulgated under this section, the Commission
shall prescribe standards and protocols for defining and
measuring electricity savings and total annual electricity
savings that can be counted towards the compliance obligation
set forth in subsection (b). Such protocols and standards
shall, at minimum--
``(A) specify the types of energy efficiency and energy
conservation measures that can be counted;
``(B) require that energy consumption estimates for
customer facilities or portions of facilities in the
applicable base and current years be adjusted, as
appropriate, to account for changes in weather, level of
production, and building area;
``(C) account for the useful life of measures;
``(D) include deemed savings values for specific, commonly
used measures;
``(E) allow for savings from a program to be estimated
based on extrapolation from a representative sample of
participating customers;
``(F) include procedures for counting CHP savings, recycled
energy savings, and fuel cell savings;
``(G) include procedures for documenting measurable and
verifiable electricity savings achieved as a result of market
transformation efforts;
``(H) include procedures for counting electricity savings
achieved by solar water heating and solar light pipe
technology that has the capability to provide measurable data
on the amount of megawatt-hours displaced;
``(I) avoid double-counting of savings used for compliance
with this section, including savings that are transferred
pursuant to paragraph (3);
``(J) ensure that, except as provided in subparagraph (L),
the retail electric supplier claiming the savings played a
significant role in achieving the savings (including through
the activities of a designated agent of the supplier or
through the purchase of transferred savings);
``(K) include savings from programs administered by a
retail electric supplier (or a retail electricity distributor
that is not a retail electric supplier) that are funded by
State, Federal, or other sources;
``(L) in any State in which the State regulatory authority
has designated 1 or more entities to administer electric
ratepayer-funded efficiency programs approved by such State
regulatory authority, provide that electricity savings
achieved through such programs shall be distributed equitably
among retail electric suppliers in accordance with the
direction of the relevant State regulatory authority; and
``(M) exclude savings achieved as a result of compliance
with mandatory appliance and equipment efficiency standards
or building codes.
``(2) Standards for third-party verification of savings.--
The regulations promulgated under this section shall
establish procedures and standards requiring third-party
verification of all reported electricity savings, including
requirements for accreditation of third-party verifiers to
ensure that such verifiers are professionally qualified and
have no conflicts of interest.
``(3) Transfers of savings.--
``(A) Bilateral contracts for savings transfers.--Subject
to the limitations of this paragraph, a retail electric
supplier may use electricity savings transferred, pursuant to
a bilateral contract, from another retail electric supplier,
an owner of an electric distribution facility that is not a
retail electric supplier, a State, or a third-party
efficiency provider to meet the applicable compliance
obligation under subsection (b).
``(B) Requirements.--Electricity savings transferred and
used for compliance pursuant to this paragraph shall be--
``(i) measured and verified in accordance with the
procedures specified under this subsection;
``(ii) reported in accordance with paragraph (4) of this
subsection; and
``(iii) achieved within the same State as is served by the
retail electric supplier.
``(C) Regulatory approval.--Nothing in this paragraph shall
limit or affect the authority of a State regulatory authority
to require a retail electric supplier that is regulated by
such authority to obtain such authority's authorization or
approval of a contract for transfer of savings under this
paragraph.
``(4) Reporting savings.--
``(A) Requirements.--The regulations promulgated under this
section shall establish requirements governing the submission
of reports to demonstrate, in accordance with the protocols
and standards for measurement and third-party verification
established under this subsection, the total annual
electricity savings achieved by a retail electric supplier
within the relevant year.
``(B) Review and approval.--The Commission shall review
each report submitted to the Commission by a retail electric
supplier and shall exclude any electricity savings that have
not been adequately demonstrated in accordance with the
requirements of this subsection.
``(5) State administration.--
``(A) Delegation of authority.--Upon receipt of an
application from the Governor of a State (including, for
purposes of this subsection, the Mayor of the District of
Columbia), the Commission may delegate to the State the
authority to review and verify reported electricity savings
for purposes of determining demonstrated total annual
electricity savings that may be counted towards a retail
electric supplier's compliance obligation under subsection
(b). The Commission shall make a substantive determination
approving or disapproving a State application under this
subparagraph, after notice and comment, within 180 days of
receipt of a complete application.
``(B) Alternative measurement and verification procedures
and standards.--As part of an application submitted under
subparagraph (A), a State may request to use alternative
measurement and verification procedures and standards to
those specified in paragraphs (1) and (2), provided the State
demonstrates that such alternative procedures and standards
provide a level of accuracy of measurement and verification
at least equivalent to the Federal procedures and standards
promulgated under paragraphs (1) and (2).
``(C) Review of state implementation.--The Commission
shall, not less frequently than once every 4 years, review
each State's implementation of delegated authority under this
paragraph to ensure conformance with the requirements of this
section. The Commission may, at any time, revoke the
delegation of authority under this section upon a finding
that the State is not implementing its delegated
responsibilities in conformity with this paragraph. As a
condition of maintaining its delegated authority under this
paragraph, the Commission may require a State to submit a
revised application under subparagraph (A) if the Commission
has--
``(i) promulgated new or substantially revised measurement
and verification procedures and standards under this
subsection; or
``(ii) otherwise substantially revised the program
established under this section.
``(g) Alternative Compliance Payments.--
``(1) In general.--A retail electric supplier ``, or a
central procurement State that, pursuant to subsection (g),
has assumed responsibility for compliance with the
requirements of subsection (b),'' may satisfy the
requirements of subsection (b) in whole or in part by
submitting in accordance with this subsection, in lieu of
each Federal renewable electricity credit or megawatt hour of
demonstrated total annual electricity savings that would
otherwise be due, a payment equal to $25, adjusted for
inflation on January 1 of each year following calendar year
2009, in accordance with such regulations as the Commission
may promulgate.
``(2) Payment to state funds.--Except as otherwise provided
in this paragraph and paragraph (4), payments made under this
subsection shall be made directly to the State or States in
which the retail electric supplier is located, in proportion
to the portion of the retail electric supplier's base amount
that is sold within each relevant State, provided that such
payments are deposited directly into a fund in the State
treasury established for this purpose and that the State uses
such funds in accordance with paragraphs (3) and (5) and with
paragraph (4) where applicable. If the Commission determines
at any time that a State is in substantial noncompliance with
paragraph (3) or (5), or with paragraph (4) where applicable,
the Commission shall direct that any future alternative
compliance payments that would otherwise be paid to such
State under this subsection shall instead be paid to the
Commission and deposited in the United States Treasury.
``(3) State use of funds.--As a condition of continued
receipt of alternative compliance payments pursuant to this
subsection, a State shall use such payments exclusively for
the purposes of--
``(A) deploying technologies that generate electricity from
renewable energy resources; or

[[Page H7477]]

``(B) implementing cost-effective energy efficiency
programs to achieve electricity savings.
``(4) Central procurement states.--
``(A) In general.--A central procurement State that,
pursuant to subsection (g), has assumed responsibility for
compliance with the requirements of subsection (b) shall
deposit any alternative compliance payments under this
subsection in a unique fund in the State treasury created and
used solely for this purpose.
``(B) Requirements.--As a precondition of making
alternative compliance payments under this subsection, a
central procurement State shall certify to the Commission, in
accordance with such requirements as the Commission may
prescribe, that--
``(i) making such payments is the lowest cost alternative
to meet the requirements of subsection (b); and
``(ii) moneys used by the State to make such payments are
in addition to any spending that the State, and any separate
entity charged with administering the State central
procurement requirement identified under subsection (a)(7),
otherwise collectively would direct to the purposes
identified in paragraph (3).
``(C) Uses.--A central procurement State that makes
alternative compliance payments under this subsection shall
certify to the Commission that, in using such payments in
accordance with paragraph (3), it has, to the extent
practicable, maximized the level of deployment of renewable
electricity generation (measured in megawatt hours) and
electricity savings per dollar that are achieved through such
expenditures.
``(5) Reporting.--As a condition of continued receipt of
alternative compliance payments pursuant to this subsection,
a State shall, within 12 months of receipt of any such
payments and at 12-month intervals thereafter until such
payments are expended, provide a report to the Commission, in
accordance with such regulations as the Commission may
prescribe, giving a full accounting of the use of such
payments, including a detailed description of the activities
funded thereby and demonstrating compliance with the
requirements of this subsection.
``(g) Central Procurement States.--
``(1) In general.--A central procurement State may, upon
submission of a written request by the Governor of such State
to the Commission, assume responsibility for compliance with
the requirements of subsection (b) on behalf of retail
electric suppliers located in such State, exclusively with
regard to the portion of such retail electric suppliers' base
amount that is sold within the State.
``(2) Demonstration of electricity savings.--If a central
procurement State opts to meet any part of the requirements
of subsection (b) based on the achievement of demonstrated
total annual electricity savings, regardless of whether such
State has received delegated authority pursuant to subsection
(f)(5), such State shall submit such demonstrated total
annual electricity savings to the Commission through an
annual report in accordance with requirements prescribed by
the Commission by regulation, which shall be of equivalent
stringency to those applicable to retail electric suppliers
under subsection (f).
``(3) Noncompliance.--If a central procurement State that
pursuant to this subsection has assumed responsibility for
compliance with the requirements of subsection (b), fails to
satisfy the requirements of subsection (b) or (h) for any
year, the State's assumption of responsibility under this
subsection shall be discontinued immediately, and retail
electric suppliers located in such State henceforth shall be
directly subject to the requirements of this section.
``(h) Information Collection.--The Commission may require
any retail electric supplier, renewable electricity
generator, or such other entities as the Commission deems
appropriate, to provide any information the Commission
determines appropriate to carry out this section. Failure to
submit such information or submission of false or misleading
information under this subsection shall be a violation of
this section.
``(i) Enforcement and Judicial Review.--
``(1) Failure to submit credits or demonstrate savings.--If
any person ``, other than any central procurement State that
pursuant to subsection (g) has assumed responsibility for
compliance with the requirements of subsection (b),'' fails
to comply with the requirements of subsection (b) or (h),
such person shall be liable to pay to the Commission a civil
penalty equal to the product of--
``(A) double the alternative compliance payment calculated
under subsection (h)(1), and
``(B) the aggregate quantity of Federal renewable
electricity credits, total annual electricity savings, or
equivalent alternative compliance payments that the person
failed to submit in violation of the requirements of
subsections (b) and (h).
``(2) Enforcement.--The Commission shall assess a civil
penalty under paragraph (1) in accordance with the procedures
described in section 31(d) of the Federal Power Act (16
U.S.C. 823b(d)).
``(3) Violation of requirement of regulations or orders.--
Any person ``, other than any central procurement State that
pursuant to subsection (g) has assumed responsibility for
compliance with the requirements of subsection (b),''. who
violates, or fails or refuses to comply with, any requirement
of a regulation promulgated or order issued under this
section shall be subject to a civil penalty under section
316A(b) of the Federal Power Act (16 U.S.C. 825o-1). Such
penalty shall be assessed by the Commission in the same
manner as in the case of a violation referred to in section
316A(b) of such Act.
``(j) Judicial Review.--Any person aggrieved by a final
action taken by the Commission under this section, other than
the assessment of a civil penalty under subsection (j), may
use the procedures for review described in section 313 of the
Federal Power Act (16 U.S.C. 825l). For purposes of this
paragraph, references to an order in section 313 of such Act
shall be deemed to refer also to all other final actions of
the Commission under this section other than the assessment
of a civil penalty under subsection (i).
``(k) Savings Provisions.--Nothing in this section shall--
``(1) diminish or qualify any authority of a State, a
political subdivision of a State, or an Indian tribe to--
``(A) adopt or enforce any law or regulation respecting
renewable electricity or energy efficiency, including any law
or regulation establishing requirements more stringent than
those established by this section, provided that no such law
or regulation may relieve any person of any requirement
otherwise applicable under this section; or
``(B) regulate the acquisition and disposition of Federal
renewable electricity credits by retail electric suppliers
within the jurisdiction of such State, political subdivision,
or Indian tribe, including the authority to require such
retail electric supplier to acquire and submit to the
Secretary for retirement Federal renewable electricity
credits in excess of those submitted under this section; or
``(2) affect the application of, or the responsibility for
compliance with, any other provision of law or regulation,
including environmental and licensing requirements.
``(l) Sunset.--This section expires on December 31,
2040.''.
(b) Conforming Amendment.--The table of contents set forth
in section 1(b) of the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2601 and following) is amended by
inserting after the item relating to section 609 the
following:

``Sec. 610. Combined efficiency and renewable electricity standard.''.

SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RENEWABLE
ENERGY INCENTIVES.

Section 210 of the Public Utility Regulatory Policies Act
of 1978 is amended by adding at the end thereof:
``(o) Clarification of State Authority to Adopt Renewable
Energy Incentives.--Notwithstanding any other provision of
this Act or the Federal Power Act, a State legislature or
regulatory authority may set the rates for a sale of electric
energy by a facility generating electric energy from
renewable energy sources pursuant to a State-approved
production incentive program under which the facility
voluntarily sells electric energy. For purposes of this
subsection, `State-approved production incentive program'
means a requirement imposed pursuant to State law, or by a
State regulatory authority acting within its authority under
State law, that an electric utility purchase renewable energy
(as defined in section 609 of this Act) at a specified
rate.''.

SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES.

(a) Requirement.--For each of calendar years 2012 through
2039, the President shall ensure that, of the total amount of
electricity Federal agencies consume in the United States
during each calendar year, the following percentage shall be
renewable electricity:

Required
Calendar year                           annual
percentage

2012....................................................             6.0
2013....................................................             6.0
2014....................................................             9.5
2015....................................................             9.5
2016....................................................            13.0
2017....................................................            13.0
2018....................................................            16.5
2019....................................................            16.5
2020....................................................            20.0
2021 through 2039.......................................            20.0

(b) Definitions.--For purposes of this section:
(1) Renewable electricity.--The term ``renewable
electricity'' shall have the meaning given in section 610 of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2601 and following).
(2) Renewable energy resource.--The term ``renewable energy
resource'' shall have the meaning given in section 610 of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2601 and following).
(c) Modification of Requirement.--If the President
determines that the Federal Government cannot feasibly meet
the requirement established in subsection (a) in a specific
calendar year, the President may, by written order, reduce
such requirement for such calendar year to a percentage the
President determines the Federal Government can feasibly
meet.
(d) Reports.--Not later than April 1, 2013, and each year
thereafter, the Secretary of Energy shall provide a report to
Congress on the percentage of each Federal agency's
electricity consumption in the United States that was
renewable electricity in the previous calendar year.

[[Page H7478]]

(e) Contracts for Renewable Energy.--(1) Notwithstanding
section 501(b)(1)(B) of title 40, United States Code, a
contract for the acquisition of electricity generated from a
renewable energy resource for the Federal Government may be
made for a period of not more than 20 years.
(2) Not later than 90 days after the date of enactment of
this subsection, the Secretary of Energy, through the Federal
Energy Management Program, shall publish a standardized
renewable energy purchase agreement, setting forth commercial
terms and conditions, that Federal agencies may use to
acquire electricity generated from a renewable energy
resource.
(3) The Secretary of Energy shall provide technical
assistance to assist Federal agencies in implementing this
subsection.

Subtitle B--Carbon Capture and Sequestration

SEC. 111. NATIONAL STRATEGY.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Energy, the Secretary of the Interior,
and the heads of such other relevant Federal agencies as the
President may designate, shall submit to Congress a report
setting forth a unified and comprehensive strategy to address
the key legal, regulatory and other barriers to the
commercial-scale deployment of carbon capture and
sequestration.
(b) Barriers.-- The report under this section shall--
(1) identify those regulatory, legal, and other gaps and
barriers that could be addressed by a Federal agency using
existing statutory authority, those, if any, that require
Federal legislation, and those that would be best addressed
at the State, tribal, or regional level;
(2) identify regulatory implementation challenges,
including those related to approval of State and tribal
programs and delegation of authority for permitting; and
(3) recommend rulemakings, Federal legislation, or other
actions that should be taken to further evaluate and address
such barriers.

SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.

(a) Coordinated Certification and Permitting Process.--
Title VIII of the Clean Air Act, as added by section 331 of
this Act, is amended by adding after section 812 (as added by
section 116 of this Act) the following:

``SEC. 813. GEOLOGIC SEQUESTRATION SITES.

``(a) Coordinated Process.--The Administrator shall
establish a coordinated approach to certifying and permitting
geologic sequestration, taking into consideration all
relevant statutory authorities. In establishing such
approach, the Administrator shall--
``(1) take into account, and reduce redundancy with, the
requirements of section 1421 of the Safe Drinking Water Act
(42 U.S.C. 300h), as amended by section 112(b) of the
American Clean Energy and Security Act of 2009, including the
rulemaking for geologic sequestration wells described at 73
Fed. Reg. 43491-541 (July 25, 2008); and
``(2) to the extent practicable, reduce the burden on
certified entities and implementing authorities.
``(b) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator shall
promulgate regulations to protect human health and the
environment by minimizing the risk of escape to the
atmosphere of carbon dioxide injected for purposes of
geologic sequestration.
``(c) Requirements.--The regulations under subsection (b)
shall include--
``(1) a process to obtain certification for geologic
sequestration under this section; and
``(2) requirements for--
``(A) monitoring, record keeping, and reporting for
emissions associated with injection into, and escape from,
geologic sequestration sites, taking into account any
requirements or protocols developed under section 713;
``(B) public participation in the certification process
that maximizes transparency;
``(C) the sharing of data between States, Indian tribes,
and the Environmental Protection Agency; and
``(D) other elements or safeguards necessary to achieve the
purpose set forth in subsection (b).
``(d) Report.--Not later than 2 years after the
promulgation of regulations under subsection (b), and at 3-
year intervals thereafter, the Administrator shall deliver to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Environment and Public
Works of the Senate a report on geologic sequestration in the
United States, and, to the extent relevant, other countries
in North America. Such report shall include--
``(1) data regarding injection, emissions to the
atmosphere, if any, and performance of active and closed
geologic sequestration sites, including those where enhanced
hydrocarbon recovery operations occur;
``(2) an evaluation of the performance of relevant Federal
environmental regulations and programs in ensuring
environmentally protective geologic sequestration practices;
``(3) recommendations on how such programs and regulations
should be improved or made more effective; and
``(4) other relevant information.''.
(b) Safe Drinking Water Act Standards.--Section 1421 of the
Safe Drinking Water Act (42 U.S.C. 300h) is amended by
inserting after subsection (d) the following:
``(e) Carbon Dioxide Geologic Sequestration Wells.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Administrator shall
promulgate regulations under subsection (a) for carbon
dioxide geologic sequestration wells.
``(2) Financial responsibility.--The regulations referred
to in paragraph (1) shall include requirements for
maintaining evidence of financial responsibility, including
financial responsibility for emergency and remedial response,
well plugging, site closure, and post-injection site care.
Financial responsibility may be established for carbon
dioxide geologic sequestration wells in accordance with
regulations promulgated by the Administrator by any one, or
any combination, of the following: insurance, guarantee,
trust, standby trust, surety bond, letter of credit,
qualification as a self-insurer, or any other method
satisfactory to the Administrator.''.

SEC. 113. STUDIES AND REPORTS.

(a) Study of Legal Framework for Geologic Sequestration
Sites.--
(1) Establishment of task force.--As soon as practicable,
but not later than 6 months after the date of enactment of
this Act, the Administrator shall establish a task force to
be composed of an equal number of subject matter experts,
nongovernmental organizations with expertise in environmental
policy, academic experts with expertise in environmental law,
State and tribal officials with environmental expertise,
representatives of State and tribal Attorneys General,
representatives from the Environmental Protection Agency, the
Department of the Interior, the Department of Energy, the
Department of Transportation, and other relevant Federal
agencies, and members of the private sector, to conduct a
study of--
(A) existing Federal environmental statutes, State
environmental statutes, and State common law that apply to
geologic sequestration sites for carbon dioxide, including
the ability of such laws to serve as risk management tools;
(B) the existing statutory framework, including Federal and
State laws, that apply to harm and damage to the environment
or public health at closed sites where carbon dioxide
injection has been used for enhanced hydrocarbon recovery;
(C) the statutory framework, environmental health and
safety considerations, implementation issues, and financial
implications of potential models for Federal, State, or
private sector assumption of liabilities and financial
responsibilities with respect to closed geologic
sequestration sites;
(D) private sector mechanisms, including insurance and
bonding, that may be available to manage environmental,
health and safety risk from closed geologic sequestration
sites; and
(E) the subsurface mineral rights, water rights, or
property rights issues associated with geologic sequestration
of carbon dioxide, including issues specific to Federal
lands.
(2) Report.--Not later than 18 months after the date of
enactment of this Act, the task force established under
paragraph (1) shall submit to Congress a report describing
the results of the study conducted under that paragraph
including any consensus recommendations of the task force.
(b) Environmental Statutes.--
(1) Study.--The Administrator shall conduct a study
examining how, and under what circumstances, the
environmental statutes for which the Environmental Protection
Agency has responsibility would apply to carbon dioxide
injection and geologic sequestration activities.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to
Congress a report describing the results of the study
conducted under paragraph (1).

SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND
EARLY DEPLOYMENT PROGRAM.

(a) Definitions.--For purposes of this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(2) Distribution utility.--The term ``distribution
utility'' means an entity that distributes electricity
directly to retail consumers under a legal, regulatory, or
contractual obligation to do so.
(3) Electric utility.--The term ``electric utility'' has
the meaning provided by section 3(22) of the Federal Power
Act (16 U.S.C. 796(22)).
(4) Fossil fuel-based electricity.--The term ``fossil fuel-
based electricity'' means electricity that is produced from
the combustion of fossil fuels.
(5) Fossil fuel.--The term ``fossil fuel'' means coal,
petroleum, natural gas or any derivative of coal, petroleum,
or natural gas.
(6) Corporation.--The term ``Corporation'' means the Carbon
Storage Research Corporation established in accordance with
this section.
(7) Qualified industry organization.--The term ``qualified
industry organization'' means the Edison Electric Institute,
the American Public Power Association, the National Rural
Electric Cooperative Association, a successor organization of
such organizations, or a group of owners or operators of
distribution utilities delivering fossil fuel-based
electricity who collectively represent at least 20 percent of
the volume of fossil

[[Page H7479]]

fuel-based electricity delivered by distribution utilities to
consumers in the United States.
(8) Retail consumer.--The term ``retail consumer'' means an
end-user of electricity.
(b) Carbon Storage Research Corporation.--
(1) Establishment.--
(A) Referendum.--Qualified industry organizations may
conduct, at their own expense, a referendum among the owners
or operators of distribution utilities delivering fossil
fuel-based electricity for the creation of a Carbon Storage
Research Corporation. Such referendum shall be conducted by
an independent auditing firm agreed to by the qualified
industry organizations. Voting rights in such referendum
shall be based on the quantity of fossil fuel-based
electricity delivered to consumers in the previous calendar
year or other representative period as determined by the
Secretary pursuant to subsection (f). Upon approval of those
persons representing two-thirds of the total quantity of
fossil fuel-based electricity delivered to retail consumers,
the Corporation shall be established unless opposed by the
State regulatory authorities pursuant to subparagraph (B).
All distribution utilities voting in the referendum shall
certify to the independent auditing firm the quantity of
fossil fuel-based electricity represented by their vote.
(B) State regulatory authorities.--Upon its own motion or
the petition of a qualified industry organization, each State
regulatory authority shall consider its support or opposition
to the creation of the Corporation under subparagraph (A).
State regulatory authorities may notify the independent
auditing firm referred to in subparagraph (A) of their views
on the creation of the Corporation within 180 days after the
date of enactment of this Act. If 40 percent or more of the
State regulatory authorities submit to the independent
auditing firm written notices of opposition, the Corporation
shall not be established notwithstanding the approval of the
qualified industry organizations as provided in subparagraph
(A).
(2) Termination.--The Corporation shall be authorized to
collect assessments and conduct operations pursuant to this
section for a 10-year period from the date 6 months after the
date of enactment of this Act. After such 10-year period, the
Corporation is no longer authorized to collect assessments
and shall be dissolved on the date 15 years after such date
of enactment, unless the period is extended by an Act of
Congress.
(3) Governance.--The Corporation shall operate as a
division or affiliate of the Electric Power Research
Institute (referred to in this section as ``EPRI'') and be
managed by a Board of not more than 15 voting members
responsible for its operations, including compliance with
this section. EPRI, in consultation with the Edison Electric
Institute, the American Public Power Association and the
National Rural Electric Cooperative Association shall appoint
the Board members under clauses (i), (ii), and (iii) of
subparagraph (A) from among candidates recommended by those
organizations. At least a majority of the Board members
appointed by EPRI shall be representatives of distribution
utilities subject to assessments under subsection (d).
(A) Members.--The Board shall include at least one
representative of each of the following:
(i) Investor-owned utilities.
(ii) Utilities owned by a State agency, a municipality, and
an Indian tribe.
(iii) Rural electric cooperatives.
(iv) Fossil fuel producers.
(v) Nonprofit environmental organizations.
(vi) Independent generators or wholesale power providers.
(vii) Consumer groups.
(B) Nonvoting members.--The Board shall also include as
additional nonvoting Members the Secretary of Energy or his
designee and 2 representatives of State regulatory
authorities as defined in section 3(17) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)), each
designated by the National Association of State Regulatory
Utility Commissioners from States that are not within the
same transmission interconnection.
(4) Compensation.--Corporation Board members shall receive
no compensation for their services, nor shall Corporation
Board members be reimbursed for expenses relating to their
service.
(5) Terms.--Corporation Board members shall serve terms of
4 years and may serve not more than 2 full consecutive terms.
Members filling unexpired terms may serve not more than a
total of 8 consecutive years. Former members of the
Corporation Board may be reappointed to the Corporation Board
if they have not been members for a period of 2 years.
Initial appointments to the Corporation Board shall be for
terms of 1, 2, 3, and 4 years, staggered to provide for the
selection of 3 members each year.
(6) Status of corporation.--The Corporation shall not be
considered to be an agency, department, or instrumentality of
the United States, and no officer or director or employee of
the Corporation shall be considered to be an officer or
employee of the United States Government, for purposes of
title 5 or title 31 of the United States Code, or for any
other purpose, and no funds of the Corporation shall be
treated as public money for purposes of chapter 33 of title
31, United States Code, or for any other purpose.
(c) Functions and Administration of the Corporation.--
(1) In general.--The Corporation shall establish and
administer a program to accelerate the commercial
availability of carbon dioxide capture and storage
technologies and methods, including technologies which
capture and store, or capture and convert, carbon dioxide.
Under such program competitively awarded grants, contracts,
and financial assistance shall be provided and entered into
with eligible entities. Except as provided in paragraph (8),
the Corporation shall use all funds derived from assessments
under subsection (d) to issue grants and contracts to
eligible entities.
(2) Purpose.--The purposes of the grants, contracts, and
assistance under this subsection shall be to support
commercial-scale demonstrations of carbon capture or storage
technology projects capable of advancing the technologies to
commercial readiness. Such projects should encompass a range
of different coal and other fossil fuel varieties, be
geographically diverse, involve diverse storage media, and
employ capture or storage, or capture and conversion,
technologies potentially suitable either for new or for
retrofit applications. The Corporation shall seek, to the
extent feasible, to support at least 5 commercial-scale
demonstration projects integrating carbon capture and
sequestration or conversion technologies.
(3) Eligible entities.--Entities eligible for grants,
contracts or assistance under this subsection may include
distribution utilities, electric utilities and other private
entities, academic institutions, national laboratories,
Federal research agencies, State and tribal research
agencies, nonprofit organizations, or consortiums of 2 or
more entities. Pilot-scale and similar small-scale projects
are not eligible for support by the Corporation. Owners or
developers of projects supported by the Corporation shall,
where appropriate, share in the costs of such projects.
(4) Grants for early movers.--Fifty percent of the funds
raised under this section shall be provided in the form of
grants to electric utilities that had, prior to the award of
any grant under this section, committed resources to deploy a
large scale electricity generation unit with integrated
carbon capture and sequestration or conversion applied to a
substantial portion of the unit's carbon dioxide emissions.
Grant funds shall be provided to defray costs incurred by
such electricity utilities for at least 5 such electricity
generation units.
(5) Administration.--The members of the Board of Directors
of the Corporation shall elect a Chairman and other officers
as necessary, may establish committees and subcommittees of
the Corporation, and shall adopt rules and bylaws for the
conduct of business and the implementation of this section.
The Board shall appoint an Executive Director and
professional support staff who may be employees of the
Electric Power Research Institute (EPRI). After consultation
with the Technical Advisory Committee established under
subsection (j), the Secretary, and the Director of the
National Energy Technology Laboratory to obtain advice and
recommendations on plans, programs, and project selection
criteria, the Board shall establish priorities for grants,
contracts, and assistance; publish requests for proposals for
grants, contracts, and assistance; and award grants,
contracts, and assistance competitively, on the basis of
merit, after the establishment of procedures that provide for
scientific peer review by the Technical Advisory Committee.
The Board shall give preference to applications that reflect
the best overall value and prospect for achieving the
purposes of the section, such as those which demonstrate an
integrated approach for capture and storage or capture and
conversion technologies. The Board members shall not
participate in making grants or awards to entities with whom
they are affiliated.
(6) Uses of grants, contracts, and assistance.--A grant,
contract, or other assistance provided under this subsection
may be used to purchase carbon dioxide when needed to conduct
tests of carbon dioxide storage sites, in the case of
established projects that are storing carbon dioxide
emissions, or for other purposes consistent with the purposes
of this section. The Corporation shall make publicly
available at no cost information learned as a result of
projects which it supports financially.
(7) Intellectual property.--The Board shall establish
policies regarding the ownership of intellectual property
developed as a result of Corporation grants and other forms
of technology support. Such policies shall encourage
individual ingenuity and invention.
(8) Administrative expenses.--Up to 5 percent of the funds
collected in any fiscal year under subsection (d) may be used
for the administrative expenses of operating the Corporation
(not including costs incurred in the determination and
collection of the assessments pursuant to subsection (d)).
(9) Programs and budget.--Before August 1 each year, the
Corporation, after consulting with the Technical Advisory
Committee and the Secretary and the Director of the
Department's National Energy Technology Laboratory and other
interested parties to obtain advice and recommendations,
shall publish for public review and comment its proposed
plans, programs, project selection criteria, and projects to
be funded by the Corporation for the next calendar year. The
Corporation shall also publish for public review and comment
a budget plan for the next calendar year, including the
probable costs of all programs, projects, and contracts and a
recommended rate of assessment sufficient to cover such
costs. The Secretary may

[[Page H7480]]

recommend programs and activities the Secretary considers
appropriate. The Corporation shall include in the first
publication it issues under this paragraph a strategic plan
or roadmap for the achievement of the purposes of the
Corporation, as set forth in paragraph (2).
(10) Records; audits.--The Corporation shall keep minutes,
books, and records that clearly reflect all of the acts and
transactions of the Corporation and make public such
information. The books of the Corporation shall be audited by
a certified public accountant at least once each fiscal year
and at such other times as the Corporation may designate.
Copies of each audit shall be provided to the Congress, all
Corporation board members, all qualified industry
organizations, each State regulatory authority and, upon
request, to other members of the industry. If the audit
determines that the Corporation's practices fail to meet
generally accepted accounting principles the assessment
collection authority of the Corporation under subsection (d)
shall be suspended until a certified public accountant
renders a subsequent opinion that the failure has been
corrected. The Corporation shall make its books and records
available for review by the Secretary or the Comptroller
General of the United States.
(11) Public access.--The Corporation Board's meetings shall
be open to the public and shall occur after at least 30 days
advance public notice. Meetings of the Board of Directors may
be closed to the public where the agenda of such meetings
includes only confidential matters pertaining to project
selection, the award of grants or contracts, personnel
matters, or the receipt of legal advice. The minutes of all
meetings of the Corporation shall be made available to and
readily accessible by the public.
(12) Annual report.--Each year the Corporation shall
prepare and make publicly available a report which includes
an identification and description of all programs and
projects undertaken by the Corporation during the previous
year. The report shall also detail the allocation or planned
allocation of Corporation resources for each such program and
project. The Corporation shall provide its annual report to
the Congress, the Secretary, each State regulatory authority,
and upon request to the public. The Secretary shall, not less
than 60 days after receiving such report, provide to the
President and Congress a report assessing the progress of the
Corporation in meeting the objectives of this section.
(d) Assessments.--
(1) Amount.--(A) In all calendar years following its
establishment, the Corporation shall collect an assessment on
distribution utilities for all fossil fuel-based electricity
delivered directly to retail consumers (as determined under
subsection (f)). The assessments shall reflect the relative
carbon dioxide emission rates of different fossil fuel-based
electricity, and initially shall be not less than the
following amounts for coal, natural gas, and oil:

Fuel type                                             Rate of assessment
per kilowatt hour
Coal..............................................           $0.00043
Natural Gas.......................................           $0.00022
Oil...............................................          $0.00032.

(B) The Corporation is authorized to adjust the assessments
on fossil fuel-based electricity to reflect changes in the
expected quantities of such electricity from different fuel
types, such that the assessments generate not less than $1.0
billion and not more than $1.1 billion annually. The
Corporation is authorized to supplement assessments through
additional financial commitments.
(2) Investment of funds.--Pending disbursement pursuant to
a program, plan, or project, the Corporation may invest funds
collected through assessments under this subsection, and any
other funds received by the Corporation, only in obligations
of the United States or any agency thereof, in general
obligations of any State or any political subdivision
thereof, in any interest-bearing account or certificate of
deposit of a bank that is a member of the Federal Reserve
System, or in obligations fully guaranteed as to principal
and interest by the United States.
(3) Reversion of unused funds.--If the Corporation does not
disburse, dedicate or assign 75 percent or more of the
available proceeds of the assessed fees in any calendar year
7 or more years following its establishment, due to an
absence of qualified projects or similar circumstances, it
shall reimburse the remaining undedicated or unassigned
balance of such fees, less administrative and other expenses
authorized by this section, to the distribution utilities
upon which such fees were assessed, in proportion to their
collected assessments.
(e)  ERCOT.--
(1) Assessment, collection, and remittance.--(A)
Notwithstanding any other provision of this section, within
ERCOT, the assessment provided for in subsection (d) shall
be--
(i) levied directly on qualified scheduling entities, or
their successor entities;
(ii) charged consistent with other charges imposed on
qualified scheduling entities as a fee on energy used by the
load-serving entities; and
(iii) collected and remitted by ERCOT to the Corporation in
the amounts and in the same manner as set forth in subsection
(d).
(B) The assessment amounts referred to in subparagraph (A)
shall be--
(i) determined by the amount and types of fossil fuel-based
electricity delivered directly to all retail customers in the
prior calendar year beginning with the year ending
immediately prior to the period described in subsection
(b)(2); and
(ii) take into account the number of renewable energy
credits retired by the load-serving entities represented by a
qualified scheduling entity within the prior calendar year.
(2) Administration expenses.--Up to 1 percent of the funds
collected in any fiscal year by ERCOT under the provisions of
this subsection may be used for the administrative expenses
incurred in the determination, collection and remittance of
the assessments to the Corporation.
(3) Audit.--ERCOT shall provide a copy of its annual audit
pertaining to the administration of the provisions of this
subsection to the Corporation.
(4) Definitions.--For the purposes of this subsection:
(A) The term ``ERCOT'' means the Electric Reliability
Council of Texas.
(B) The term ``load-serving entities'' has the meaning
adopted by ERCOT Protocols and in effect on the date of
enactment of this Act.
(C) The term ``qualified scheduling entities'' has the
meaning adopted by ERCOT Protocols and in effect on the date
of enactment of this Act.
(D) The term ``renewable energy credit'' has the meaning as
promulgated and adopted by the Public Utility Commission of
Texas pursuant to section 39.904(b) of the Public Utility
Regulatory Act of 1999, and in effect on the date of
enactment of this Act.
(f) Determination of Fossil Fuel-based Electricity
Deliveries.--
(1) Findings.--The Congress finds that:
(A) The assessments under subsection (d) are to be
collected based on the amount of fossil fuel-based
electricity delivered by each distribution utility.
(B) Since many distribution utilities purchase all or part
of their retail consumer's electricity needs from other
entities, it may not be practical to determine the precise
fuel mix for the power sold by each individual distribution
utility.
(C) It may be necessary to use average data, often on a
regional basis with reference to Regional Transmission
Organization (``RTO'') or NERC regions, to make the
determinations necessary for making assessments.
(2) DOE proposed rule.--The Secretary, acting in close
consultation with the Energy Information Administration,
shall issue for notice and comment a proposed rule to
determine the level of fossil fuel electricity delivered to
retail customers by each distribution utility in the United
States during the most recent calendar year or other period
determined to be most appropriate. Such proposed rule shall
balance the need to be efficient, reasonably precise, and
timely, taking into account the nature and cost of data
currently available and the nature of markets and regulation
in effect in various regions of the country. Different
methodologies may be applied in different regions if
appropriate to obtain the best balance of such factors.
(3) Final rule.--Within 6 months after the date of
enactment of this Act, and after opportunity for comment, the
Secretary shall issue a final rule under this subsection for
determining the level and type of fossil fuel-based
electricity delivered to retail customers by each
distribution utility in the United States during the
appropriate period. In issuing such rule, the Secretary may
consider opportunities and costs to develop new data sources
in the future and issue recommendations for the Energy
Information Administration or other entities to collect such
data. After notice and opportunity for comment the Secretary
may, by rule, subsequently update and modify the methodology
for making such determinations.
(4) Annual determinations.--Pursuant to the final rule
issued under paragraph (3), the Secretary shall make annual
determinations of the amounts and types for each such utility
and publish such determinations in the Federal Register. Such
determinations shall be used to conduct the referendum under
subsection (b) and by the Corporation in applying any
assessment under this subsection.
(5) Rehearing and judicial review.--The owner or operator
of any distribution utility that believes that the Secretary
has misapplied the methodology in the final rule in
determining the amount and types of fossil fuel electricity
delivered by such distribution utility may seek rehearing of
such determination within 30 days of publication of the
determination in the Federal Register. The Secretary shall
decide such rehearing petitions within 30 days. The
Secretary's determinations following rehearing shall be final
and subject to judicial review in the United States Court of
Appeals for the District of Columbia.
(g) Compliance With Corporation Assessments.--The
Corporation may bring an action in the appropriate court of
the United States to compel compliance with an assessment
levied by the Corporation under this section. A successful
action for compliance under this subsection may also require
payment by the defendant of the costs incurred by the
Corporation in bringing such action.

[[Page H7481]]

(h) Midcourse Review.--Not later than 5 years following
establishment of the Corporation, the Comptroller General of
the United States shall prepare an analysis, and report to
Congress, assessing the Corporation's activities, including
project selection and methods of disbursement of assessed
fees, impacts on the prospects for commercialization of
carbon capture and storage technologies, adequacy of funding,
and administration of funds. The report shall also make such
recommendations as may be appropriate in each of these areas.
The Corporation shall reimburse the Government Accountability
Office for the costs associated with performing this
midcourse review.
(i) Recovery of Costs.--
(1) In general.--A distribution utility whose transmission,
delivery, or sales of electric energy are subject to any form
of rate regulation shall not be denied the opportunity to
recover the full amount of the prudently incurred costs
associated with complying with this section, consistent with
applicable State or Federal law.
(2) Ratepayer rebates.--Regulatory authorities that approve
cost recovery pursuant to paragraph (1) may order rebates to
ratepayers to the extent that distribution utilities are
reimbursed undedicated or unassigned balances pursuant to
subsection (d)(3).
(j) Technical Advisory Committee.--
(1) Establishment.--There is established an advisory
committee, to be known as the ``Technical Advisory
Committee''.
(2) Membership.--The Technical Advisory Committee shall be
comprised of not less than 7 members appointed by the Board
from among academic institutions, national laboratories,
independent research institutions, and other qualified
institutions. No member of the Committee shall be affiliated
with EPRI or with any organization having members serving on
the Board. At least one member of the Committee shall be
appointed from among officers or employees of the Department
of Energy recommended to the Board by the Secretary of
Energy.
(3) Chairperson and vice chairperson.--The Board shall
designate one member of the Technical Advisory Committee to
serve as Chairperson of the Committee and one to serve as
Vice Chairperson of the Committee.
(4) Compensation.--The Board shall provide compensation to
members of the Technical Advisory Committee for travel and
other incidental expenses and such other compensation as the
Board determines to be necessary.
(5) Purpose.--The Technical Advisory Committee shall
provide independent assessments and technical evaluations, as
well as make non-binding recommendations to the Board,
concerning Corporation activities, including but not limited
to the following:
(A) Reviewing and evaluating the Corporation's plans and
budgets described in subsection (c)(9), as well as any other
appropriate areas, which could include approaches to
prioritizing technologies, appropriateness of engineering
techniques, monitoring and verification technologies for
storage, geological site selection, and cost control
measures.
(B) Making annual non-binding recommendations to the Board
concerning any of the matters referred to in subparagraph
(A), as well as what types of investments, scientific
research, or engineering practices would best further the
goals of the Corporation.
(6) Public availability.--All reports, evaluations, and
other materials of the Technical Advisory Committee shall be
made available to the public by the Board, without charge, at
time of receipt by the Board.
(k) Lobbying Restrictions.--No funds collected by the
Corporation shall be used in any manner for influencing
legislation or elections, except that the Corporation may
recommend to the Secretary and the Congress changes in this
section or other statutes that would further the purposes of
this section.
(l) Davis-Bacon Compliance.--The Corporation shall ensure
that entities receiving grants, contracts, or other financial
support from the Corporation for the project activities
authorized by this section are in compliance with the Davis-
Bacon Act (40 U.S.C. 276a-276a-5).

SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND
SEQUESTRATION TECHNOLOGIES.

Part H of title VII of the Clean Air Act (as added by
section 321 of this Act) is amended by adding the following
new section after section 785:

``SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND
SEQUESTRATION TECHNOLOGIES.

``(a) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator shall
promulgate regulations providing for the distribution of
emission allowances allocated pursuant to section 782(f),
pursuant to the requirements of this section, to support the
commercial deployment of carbon capture and sequestration
technologies in both electric power generation and industrial
operations.
``(b) Eligibility Criteria.--For an owner or operator of a
project to be eligible to receive emission allowances under
this section, the project must--
``(1) implement carbon capture and sequestration
technology--
``(A) at an electric generating unit that--
``(i) has a nameplate capacity of 200 megawatts or more;
``(ii) in the case of a retrofit application, applies the
carbon capture and sequestration technology to the flue gas
from at least 200 megawatts of the total nameplate generating
capacity of the unit, provided that clause (i) shall apply
without exception;
``(iii) derives at least 50 percent of its annual fuel
input from coal, petroleum coke, or any combination of these
2 fuels; and
``(iv) upon implementation of capture and sequestration
technology, will achieve an emission limit that is at least a
50 percent reduction in emissions of the carbon dioxide
produced by--

``(I) the unit, measured on an annual basis, determined in
accordance with section 812(b)(2); or
``(II) in the case of retrofit applications under clause
(ii), the treated portion of flue gas from the unit, measured
on an annual basis, determined in accordance with section
812(b)(2); or

``(B) at an industrial source that--
``(i) absent carbon capture and sequestration, would emit
greater than 50,000 tons per year of carbon dioxide;
``(ii) upon implementation, will achieve an emission limit
that is at least a 50 percent reduction in emissions of the
carbon dioxide produced by the emission point, measured on an
annual basis, determined in accordance with section
812(b)(2); and
``(iii) does not produce a liquid transportation fuel from
a solid fossil-based feedstock;
``(2) geologically sequester carbon dioxide at a site that
meets all applicable permitting and certification
requirements for geologic sequestration, or, pursuant to such
requirements as the Administrator may prescribe by
regulation, convert captured carbon dioxide to a stable form
that will safely and permanently sequester such carbon
dioxide;
``(3) meet all other applicable State, tribal, and Federal
permitting requirements; and
``(4) be located in the United States.
``(c) Phase I Distribution to Electric Generating Units.--
``(1) Application.--This subsection shall apply only to
projects at the first 6 gigawatts of electric generating
units, measured in cumulative generating capacity of such
units, that receive allowances under this section.
``(2) Distribution.--The Administrator shall distribute
emission allowances allocated under section 782(f) to the
owner or operator of each eligible project at an electric
generating unit in a quantity equal to the quotient obtained
by dividing--
``(A) the product obtained by multiplying--
``(i) the number of metric tons of carbon dioxide emissions
avoided through capture and sequestration of emissions by the
project, as determined pursuant to such methodology as the
Administrator shall prescribe by regulation; and
``(ii) a bonus allowance value, pursuant to paragraph (3);
by
``(B) the average fair market value of an emission
allowance during the preceding year.
``(3) Bonus allowance values.--
``(A) For a generating unit achieving the capture and
sequestration of 85 percent or more of the carbon dioxide
that otherwise would be emitted by such unit, the bonus
allowance value shall be $90 per ton.
``(B) The Administrator shall by regulation establish a
bonus allowance value for each rate of lower capture and
sequestration achieved by a generating unit, from a minimum
of $50 per ton for a 50 percent rate and varying directly
with increasing rates of capture and sequestration up to $90
per ton for an 85 percent rate.
``(C) For a generating unit that achieves the capture and
sequestration of at least 50 percent of the carbon dioxide
that otherwise would be emitted by such unit by not later
than January 1, 2017, the otherwise applicable bonus
allowance value under this paragraph shall be increased by
$10, provided that the owner of such unit notifies the
Administrator by not later than January 1, 2012, of its
intent to achieve such rate of capture and sequestration.
``(D) For a carbon capture and sequestration project
sequestering in a geological formation for purposes of
enhanced hydrocarbon recovery, the Administrator shall, by
regulation, reduce the applicable bonus allowance value under
this paragraph to reflect the lower net cost of the project
when compared to sequestration into geological formations
solely for purposes of sequestration.
``(E) The Administrator shall annually adjust for inflation
the bonus allowance values established under this paragraph.
``(d) Phase II Distribution to Electric Generating Units.--
``(1) Application.--This subsection shall apply only to the
distribution of emission allowances for carbon capture and
sequestration projects at electric generating units after the
capacity threshold identified in subsection (c)(1) is
reached.
``(2) Regulations.--Not later than 2 years prior to the
date on which the capacity threshold identified in subsection
(c)(1) is projected to be reached, the Administrator shall
promulgate regulations to govern the distribution of emission
allowances to the owners or operators of eligible projects
under this subsection.
``(3) Reverse auctions.--
``(A) In general.--Except as provided in paragraph (4), the
regulations promulgated under paragraph (2) shall provide for
the distribution of emission allowances to the owners or
operators of eligible projects under this subsection through
reverse auctions, which shall be held no less frequently than

[[Page H7482]]

once each calendar year. The Administrator may establish a
separate auction for each of no more than 5 different project
categories, defined on the basis of coal type, capture
technology, geological formation type, new unit versus
retrofit application, such other factors as the Administrator
may prescribe, or any combination thereof. The Administrator
may establish appropriate minimum rates of capture and
sequestration in implementing this paragraph.
``(B) Auction process.--At each reverse auction--
``(i) the Administrator shall solicit bids from eligible
projects;
``(ii) eligible projects participating in the auction shall
submit a bid including the desired level of carbon dioxide
sequestration incentive per ton and the estimated quantity of
carbon dioxide that the project will permanently sequester
over 10 years; and
``(iii) the Administrator shall select bids, within each
auction, for the sequestration amount submitted, beginning
with the eligible project submitting the bid for the lowest
level of sequestration incentive on a per ton basis and
meeting such other requirements as the Administrator may
specify, until the amount of funds available for the reverse
auction is committed.
``(C) Form of distribution.--The Administrator shall
distribute emission allowances to the owners or operators of
eligible projects selected through a reverse auction under
this paragraph pursuant to a formula equivalent to that
described in subsection (c)(2), except that the bonus
allowance value that is bid by the entity shall be
substituted for the bonus allowance values set forth in
subsection (c)(3).
``(4) Alternative distribution method.--
``(A) In general.--If the Administrator determines that
reverse auctions would not provide for efficient and cost-
effective commercial deployment of carbon capture and
sequestration technologies, the Administrator may instead,
through regulations promulgated under paragraph (2) or (5),
prescribe a schedule for the award of bonus allowances to the
owners or operators of eligible projects under this
subsection, in accordance with the requirements of this
paragraph.
``(B) Multiple tranches.--The Administrator shall divide
emission allowances available for distribution to the owners
or operators of eligible projects into a series of tranches,
each supporting the deployment of a specified quantity of
cumulative electric generating capacity utilizing carbon
capture and sequestration technology, each of which shall not
be greater than 6 gigawatts.
``(C) Method of distribution.--The Administrator shall
distribute emission allowances within each tranche, on a
first-come, first-served basis--
``(i) based on the date of full-scale operation of capture
and sequestration technology; and
``(ii) pursuant to a formula, similar to that set forth in
subsection (c)(2) (except that the Administrator shall
prescribe bonus allowance values different than those set
forth in subsection (c)(3)), establishing the number of
allowances to be distributed per ton of carbon dioxide
sequestered by the project.
``(D) Requirements.--For each tranche established pursuant
to subparagraph (B), the Administrator shall establish a
schedule for distributing emission allowances that--
``(i) is based on a sliding scale that provides higher
bonus allowance values for projects achieving higher rates of
capture and sequestration;
``(ii) for each capture and sequestration rate, establishes
a bonus allowance value that is lower than that established
for such rate in the previous tranche (or, in the case of the
first tranche, than that established for such rate under
subsection (c)(3)); and
``(iii) may establish different bonus allowance levels for
no more than 5 different project categories, defined by coal
type, capture technology, geological formation type, new unit
versus retrofit application, such other factors as the
Administrator may prescribe, or any combination thereof.
``(E) Criteria for establishing bonus allowance values.--In
setting bonus allowance values under this paragraph, the
Administrator shall seek to cover no more than the reasonable
incremental capital and operating costs of a project that are
attributable to implementation of carbon capture,
transportation, and sequestration technologies, taking into
account--
``(i) the reduced cost of compliance with section 722 of
this Act;
``(ii) the reduced cost associated with sequestering in a
geological formation for purposes of enhanced hydrocarbon
recovery when compared to sequestration into geological
formations solely for purposes of sequestration;
``(iii) the relevant factors defining the project category;
and
``(iv) such other factors as the Administrator determines
are appropriate.
``(5) Revision of regulations.--The Administrator shall
review, and as appropriate revise, the applicable regulations
under this subsection no less frequently than every 8 years.
``(e) Limits for Certain Electric Generating Units.--
``(1) Definitions.--For purposes of this subsection, the
terms `covered EGU' and `initially permitted' shall have the
meaning given those terms in section 812 of this Act.
``(2) Covered egus initially permitted from 2009 through
2014.--For a covered EGU that is initially permitted on or
after January 1, 2009, and before January 1, 2015, the
Administrator shall reduce the quantity of emission
allowances that the owner or operator of such covered EGU
would otherwise be eligible to receive under this section as
follows:
``(A) In the case of a unit commencing operation on or
before January 1, 2019, if the date in clause (ii)(I) is
earlier than the date in clause (ii)(II), by the product of--
``(i) 20 percent; and
``(ii) the number of years, if any, that have elapsed
between--

``(I) the earlier of January 1, 2020, or the date that is 5
years after the commencement of operation of such covered
EGU; and
``(II) the first year that such covered EGU achieves (and
thereafter maintains) an emission limit that is at least a 50
percent reduction in emissions of the carbon dioxide produced
by the unit, measured on an annual basis, as determined in
accordance with section 812(b)(2).

``(B) In the case of a unit commencing operation after
January 1, 2019, by the product of--
``(i) 20 percent; and
``(ii) the number of years between--

``(I) the commencement of operation of such covered EGU;
and
``(II) the first year that such covered EGU achieves (and
thereafter maintains) an emission limit that is at least a 50
percent reduction in emissions of the carbon dioxide produced
by the unit, measured on an annual basis, as determined in
accordance with section 812(b)(2).

``(3) Covered egus initially permitted from 2015 through
2019.--The owner or operator of a covered EGU that is
initially permitted on or after January 1, 2015, and before
January 1, 2020, shall be ineligible to receive emission
allowances pursuant to this section if such unit, upon
commencement of operations (and thereafter), does not achieve
and maintain an emission limit that is at least a 50 percent
reduction in emissions of the carbon dioxide produced by the
unit, measured on an annual basis, as determined in
accordance with section 812(b)(2).
``(f) Industrial Sources.--
``(1) Allowances.--The Administrator may distribute not
more than 15 percent of the allowances allocated under
section 782(f) for any vintage year to the owners or
operators of eligible industrial sources to support the
commercial-scale deployment of carbon capture and
sequestration technologies at such sources.
``(2) Distribution.--The Administrator shall, by
regulation, prescribe requirements for the distribution of
emission allowances to the owners or operators of industrial
sources under this subsection, based on a bonus allowance
formula that awards allowances to qualifying projects on the
basis of tons of carbon dioxide captured and permanently
sequestered. The Administrator may provide for the
distribution of emission allowances pursuant to--
``(A) a reverse auction method, similar to that described
under subsection (d)(3), including the use of separate
auctions for different project categories; or
``(B) an incentive schedule, similar to that described
under subsection (d)(4), which shall ensure that incentives
are set so as to satisfy the requirement described in
subsection (d)(4)(E).
``(3) Revision of regulations.--The Administrator shall
review, and as appropriate revise, the applicable regulations
under this subsection no less frequently than every 8 years.
``(g) Limitations.--Allowances may be distributed under
this section only for tons of carbon dioxide emissions that
have already been captured and sequestered. A qualifying
project may receive annual emission allowances under this
section only for the first 10 years of operation. No greater
than 72 gigawatts of total cumulative generating capacity
(including industrial applications, measured by such
equivalent metric as the Administrator may designate) may
receive emission allowances under this section. Upon reaching
the limit described in the preceding sentence, any emission
allowances that are allocated for carbon capture and
sequestration deployment under section 782(f) and are not yet
obligated under this section shall be treated as allowances
not designated for distribution for purposes of section
782(r).
``(h) Exhaustion of Account and Annual Roll-over of Surplus
Allowances.--
``(1) In distributing emission allowances under this
section, the Administrator shall ensure that qualifying
projects receiving allowances receive distributions for 10
years.
``(2) If the Administrator determines that the emission
allowances allocated under section 782(f) with a vintage year
that matches the year of distribution will be exhausted once
the estimated full 10-year distributions will be provided to
current eligible participants, the Administrator shall
provide to new eligible projects allowances from vintage
years after the year of the distribution.
``(i) Retrofit Applications.--(1) In calculating bonus
allowance values for retrofit applications eligible under
subsection (b)(1)(A)(ii) and (iv)(II), the Administrator
shall apply the required capture rates with respect to the
treated portion of flue gas from the unit.
``(2) No additional projects shall be eligible for
allowances under subsection (b)(1)(A)(ii) and (iv)(II) as of
such time as the Administrator reports, pursuant to section
812(d), that carbon capture and sequestration retrofit
projects at electric generating units that are eligible for
allowances under this

[[Page H7483]]

section have been applied, in the aggregate, to the flue gas
generated by 1 gigawatt of total cumulative generating
capacity. ``The limitation in the preceding sentence shall
not apply to projects that meet the eligibility criteria in
subsection (b)(1)(A)(iv)(I).'' after ``generating
capacity.''.
``(j) Davis-Bacon Compliance.--All laborers and mechanics
employed on projects funded directly by or assisted in whole
or in part by this section through the use of emission
allowances shall be paid wages at rates not less than those
prevailing on projects of a character similar in the locality
as determined by the Secretary of Labor in accordance with
subchapter IV, chapter 31, part A of subtitle II of title 40,
United States Code. With respect to the labor standards
specified in this subsection, the Secretary of Labor shall
have the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
section 3145 of title 40, United States Code.''.

SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.

(a) In General.--Title VIII of the Clean Air Act (as added
by section 331 of this Act) is amended by adding the
following new section after section 811:

``SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER
PLANTS.

``(a) Definitions.--For purposes of this section:
``(1) Covered egu.--The term `covered EGU' means a utility
unit that is required to have a permit under section 503(a)
and is authorized under state or federal law to derive at
least 30 percent of its annual heat input from coal,
petroleum coke, or any combination of these fuels.
``(2) Initially permitted.--The term `initially permitted'
means that the owner or operator has received a Clean Air Act
preconstruction approval or permit, for the covered EGU as a
new (not a modified) source, but administrative review or
appeal of such approval or permit has not been exhausted. A
subsequent modification of any such approval or permits,
ongoing administrative or court review, appeals, or
challenges, or the existence or tolling of any time to pursue
further review, appeals, or challenges shall not affect the
date on which a covered EGU is considered to be initially
permitted under this paragraph.
``(b) Standards.--(1) A covered EGU that is initially
permitted on or after January 1, 2020, shall achieve an
emission limit that is a 65 percent reduction in emissions of
the carbon dioxide  produced by the  unit, as measured on an
annual basis, or meet such more stringent standard as the
Administrator may establish pursuant to subsection (c).
``(2) A covered EGU that is initially permitted after
January 1, 2009, and before January 1, 2020, shall, by the
applicable compliance date established under this paragraph,
achieve an emission limit that is a 50 percent reduction in
emissions of the carbon dioxide produced by the  unit, as
measured on an annual basis. Compliance with the requirement
set forth in this paragraph shall be required by the earliest
of the following:
``(A) Four years after the date the Administrator has
published pursuant to subsection (d) a report that there are
in commercial operation in the United States electric
generating units or other stationary sources equipped with
carbon capture and sequestration technology that, in the
aggregate--
``(i) have a total of at least 4 gigawatts of nameplate
generating capacity of which--
``(I) at least 3 gigawatts must be electric generating
units; and
``(II) up to 1 gigawatt may be industrial applications, for
which capture and sequestration of 3 million tons of carbon
dioxide per year on an aggregate annualized basis shall be
considered equivalent to 1 gigawatt;
``(ii) include at least 2 electric generating units, each
with a nameplate generating capacity of 250 megawatts or
greater, that capture, inject, and sequester carbon dioxide
into geologic formations other than oil and gas fields; and
``(iii) are capturing and sequestering in the aggregate at
least 12 million tons of carbon dioxide per year, calculated
on an aggregate annualized basis.
``(B) January 1, 2025.
``(3) If the deadline for compliance with paragraph (2) is
January 1, 2025, the Administrator may extend the deadline
for compliance by a covered EGU by up to 18 months if the
Administrator makes a determination, based on a showing by
the owner or operator of the unit, that it will be
technically infeasible for the unit to meet the standard by
the deadline. The owner or operator must submit a request for
such an extension by no later than January 1, 2022, and the
Administrator shall provide for public notice and comment on
the extension request.
``(c) Review and Revision of Standards.--Not later than
2025 and at 5-year intervals thereafter, the Administrator
shall review the standards for new covered EGUs under this
section and shall, by rule, reduce the maximum carbon dioxide
emission rate for new covered EGUs to a rate which reflects
the degree of emission limitation achievable through the
application of the best system of emission reduction which
(taking into account the cost of achieving such reduction and
any nonair quality health and environmental impact and energy
requirements) the Administrator determines has been
adequately demonstrated.
``(d)  Reports.--Not later than the date 18 months after
the date of enactment of this title and semiannually
thereafter, the Administrator shall publish a report on the
nameplate capacity of units (determined pursuant to
subsection (b)(2)(A)) in commercial operation in the United
States equipped with carbon capture and sequestration
technology, including the information described in subsection
(b)(2)(A) (including the cumulative generating capacity to
which carbon capture and sequestration retrofit projects
meeting the criteria described in section 786(b)(1)(A)(ii)
and (b)(1)(A)(iv)(II) has been applied and the quantities of
carbon dioxide captured and sequestered by such projects).
``(e) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator shall
promulgate regulations to carry out the requirements of this
section.''.

Subtitle C--Clean Transportation

SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE.

(a) Amendment of PURPA.--Section 111(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))
is amended by adding at the end the following:
``(20) Plug-in electric drive vehicle infrastructure.--
``(A) Utility plan for infrastructure.--Each electric
utility shall develop a plan to support the use of plug-in
electric drive vehicles, including heavy-duty hybrid electric
vehicles. The plan may provide for deployment of electrical
charging stations in public or private locations, including
street parking, parking garages, parking lots, homes, gas
stations, and highway rest stops. Any such plan may also
include--
``(i) battery exchange, fast charging infrastructure and
other services;
``(ii) triggers for infrastructure deployment based upon
market penetration of plug-in electric drive vehicles; and
``(iii) such other elements as the State determines
necessary to support plug-in electric drive vehicles.
Each plan under this paragraph shall provide for the
deployment of the charging infrastructure or other
infrastructure necessary to adequately support the use of
plug-in electric drive vehicles.
``(B) Support requirements.--Each State regulatory
authority (in the case of each electric utility for which it
has ratemaking authority) and each utility (in the case of a
nonregulated utility) shall--
``(i) require that charging infrastructure deployed is
interoperable with products of all auto manufacturers to the
extent possible; and
``(ii) consider adopting minimum requirements for
deployment of electrical charging infrastructure and other
appropriate requirements necessary to support the use of
plug-in electric drive vehicles.
``(C) Cost recovery.--Each State regulatory authority (in
the case of each electric utility for which it has ratemaking
authority) and each utility (in the case of a nonregulated
utility) shall consider whether, and to what extent, to allow
cost recovery for plans and implementation of plans.
``(D) Smart grid integration.--The State regulatory
authority (in the case of each electric utility for which it
has ratemaking authority) and each utility (in the case of a
nonregulated utility) shall, in accordance with regulations
issued by the Federal Energy Regulatory Commission pursuant
to section 1305(d) of the Energy Independence and Security
Act of 2007--
``(i) establish any appropriate protocols and standards for
integrating plug-in electric drive vehicles into an
electrical distribution system, including Smart Grid systems
and devices as described in title XIII of the Energy
Independence and Security Act of 2007;
``(ii) include, to the extent feasible, the ability for
each plug-in electric drive vehicle to be identified
individually and to be associated with its owner's electric
utility account, regardless of the location that the vehicle
is plugged in, for purposes of appropriate billing for any
electricity required to charge the vehicle's batteries as
well as any crediting for electricity provided to the
electric utility from the vehicle's batteries; and
``(iii) review the determination made in response to
section 1252 of the Energy Policy Act of 2005 in light of
this section, including whether time-of-use pricing should be
employed to enable the use of plug-in electric drive vehicles
to contribute to meeting peak-load and ancillary service
power needs.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding the following at the end thereof:
``(7)(A) Not later than 3 years after the date of enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority) and each nonregulated utility shall commence the
consideration referred to in section 111, or set a hearing
date for consideration, with respect to the standard
established by paragraph (20) of section 111(d).
``(B) Not later than 4 years after the date of enactment of
the this paragraph, each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority), and each nonregulated electric utility, shall
complete the consideration, and shall make the determination,
referred to in section 111 with respect to the standard
established by paragraph (20) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of

[[Page H7484]]

1978 (16 U.S.C. 2622(c)) is amended by adding the following
at the end: ``In the case of the standards established by
paragraph (20) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraph.''.
(3) Prior state actions.--Section 112(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d))
is amended by striking ``(19)'' and inserting ``(20)'' before
``of section 111(d)''.

SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.

(a) Deployment Program.--The Secretary of Energy shall
establish a program to deploy and integrate plug-in electric
drive vehicles into the electricity grid in multiple regions.
In carrying out the program, the Secretary may provide
financial assistance described under subsection (d),
consistent with the goals under subsection (b). The Secretary
shall select regions based upon applications for assistance
received pursuant to subsection (c).
(b) Goals.--The goals of the program established pursuant
to subsection (a) shall be--
(1) to demonstrate the viability of a vehicle-based
transportation system that is not overly dependent on
petroleum as a fuel and contributes to lower carbon emissions
than a system based on conventional vehicles;
(2) to facilitate the integration of advanced vehicle
technologies into electricity distribution areas to improve
system performance and reliability;
(3) to demonstrate the potential benefits of coordinated
investments in vehicle electrification on personal mobility
and a regional grid;
(4) to demonstrate protocols and standards that facilitate
vehicle integration into the grid; and
(5) to investigate differences in each region and
regulatory environment regarding best practices in
implementing vehicle electrification.
(c) Applications.--Any State, Indian tribe, or local
government (or group of State, Indian tribe, or local
governments) may apply to the Secretary of Energy for
financial assistance in furthering the regional deployment
and integration into the electricity grid of plug-in electric
drive vehicles. Such applications may be jointly sponsored by
electric utilities, automobile manufacturers, technology
providers, car sharing companies or organizations, or other
persons or entities.
(d) Use of Funds.--Pursuant to applications received under
subsection (c), the Secretary may make financial assistance
available to any applicant or joint sponsor of the
application to be used for any of the following:
(1) Assisting persons located in the regional deployment
area, including fleet owners, in the purchase of new plug-in
electric drive vehicles by offsetting in whole or in part the
incremental cost of such vehicles above the cost of
comparable conventionally fueled vehicles.
(2) Supporting the use of plug-in electric drive vehicles
by funding projects for the deployment of any of the
following:
(A) Electrical charging infrastructure for plug-in electric
drive vehicles, including battery exchange, fast charging
infrastructure, and other services, in public or private
locations, including street parking, parking garages, parking
lots, homes, gas stations, and highway rest stops.
(B) Smart Grid equipment and infrastructure, as described
in title XIII of the Energy Independence and Security Act of
2007, to facilitate the charging and integration of plug-in
electric drive vehicles.
(3) Such other projects as the Secretary determines
appropriate to support the large-scale deployment of plug-in
electric drive vehicles in regional deployment areas.
(e) Program Requirements.--The Secretary, in consultation
with the Administrator and the Secretary of Transportation,
shall determine design elements and requirements of the
program established pursuant to subsection (a), including--
(1) the type of financial mechanism with which to provide
financial assistance;
(2) criteria for evaluating applications submitted under
subsection (c), including the anticipated ability to promote
deployment and market penetration of vehicles that are less
dependent on petroleum as a fuel source; and
(3) reporting requirements for entities that receive
financial assistance under this section, including a
comprehensive set of performance data characterizing the
results of the deployment program.
(f) Information Clearinghouse.--The Secretary shall, as
part of the program established pursuant to subsection (a),
collect and make available to the public information
regarding the cost, performance, and other technical data
regarding the deployment and integration of plug-in electric
drive vehicles.
(g) Authorization.--There are authorized to be appropriated
to carry out this section such sums as may be necessary.

SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFACTURING.

(a) Vehicle Manufacturing Assistance Program.--The
Secretary of Energy shall establish a program to provide
financial assistance to automobile manufacturers to
facilitate the manufacture of plug-in electric drive
vehicles, as defined in section 131(a)(5) of the Energy
Independence and Security Act of 2007, that are developed and
produced in the United States.
(b) Financial Assistance.--The Secretary of Energy may
provide financial assistance to an automobile manufacturer
under the program established pursuant to ``subsection (a)
for the reconstruction or retooling of facilities for the
manufacture of plug-in electric drive vehicles or batteries
for such vehicles that are developed and produced in the
United States.''.
(c) Coordination With Regional Deployment.--The Secretary
may provide financial assistance under subsection (b) in
conjunction with the award of financial assistance under the
large scale vehicle electrification program established
pursuant to section 122 of this Act.
(d) Program Requirements.--The Secretary shall determine
design elements and requirements of the program established
pursuant to subsection (a), including--
(1) the type of financial mechanism with which to provide
financial assistance;
(2) criteria, in addition to the criteria described under
subsection (e), for evaluating applications for financial
assistance; and
(3) reporting requirements for automobile manufacturers
that receive financial assistance under this section.
(e) Criteria.--In selecting recipients of financial
assistance from among applicant automobile manufacturers, the
Secretary shall give preference to proposals that--
(1) are most likely to be successful; and
(2) are located in local markets that have the greatest
need for the facility.
(f) Reports.--The Secretary shall annually submit to
Congress a report on the program established pursuant to this
section.
(g) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.

SEC. 124. INVESTMENT IN CLEAN VEHICLES.

(a) Definitions.--In this section:
(1) Advanced technology vehicles and qualifying
components.--The terms ``advanced technology vehicles'' and
``qualifying components'' shall have the definition of such
terms in section 136 of the Energy Independence and Security
Act of 2007, except that for purposes of this section, the
average base year as described in such section 136(a)(1)(C)
shall be the following:
(A) In each of the years 2012 through 2016, model year
2009.
(B) In 2017, the Administrator shall, notwithstanding such
section 136(a)(1)(C), determine an appropriate baseline based
on technological and economic feasibility.
(2) Plug-in electric drive vehicle.--The term ``plug-in
electric drive vehicle'' shall have the definition of such
term in section 131 of the Energy Independence and Security
Act of 2007.
(b) Distribution of Allowances.--The Administrator shall,
in accordance with this section, distribute emission
allowances allocated pursuant to section 782(i) of the Clean
Air Act not later than September 30 of 2012 and each calendar
year thereafter through 2025.
(c) Plug-in Electric Drive Vehicle Manufacturing and
Deployment.--
(1) In general.--The Administrator shall, at the direction
of the Secretary of Energy, provide emission allowances
allocated pursuant to section 782(i) to applicants, joint
sponsors and automobile manufacturers pursuant to sections
122 and 123 of this Act.
(2) Annual amount.--In each of the years 2012 through 2017,
one-quarter of the portion of the emission allowances
allocated pursuant to section 782(i) of the Clean Air Act
shall be available to carry out paragraph (1) such that--
(A) one-eighth of the portion shall be available to carry
out section 122; and,
(B) one-eighth of the portion shall be available to carry
out section 123.
(3) Preference.--In directing the provision of emission
allowances under this subsection to carry out section 122,
the Secretary shall give preference to applications under
section 122(c) that are jointly sponsored by one or more
automobile manufacturers.
(4) Multi-year commitments.--The Administrator shall commit
to providing emission allowances to an applicant, joint
sponsor, or automobile manufacturer for up to five
consecutive years if--
(A) an application under section 122 or 123 of this Act
requests a multi-year commitment;
(B) such application meets the criteria for support
established by the Secretary of Energy under sections 122 or
123 of this Act;
(C) the Administrator confirms to the Secretary that
emission allowances will be available for a multi-year
commitment;
(D) the Secretary of Energy determines that a multi-year
commitment for such application will advance the goals of
section 122 or 123; and
(E) the Secretary of Energy directs the Administrator to
make a multi-year commitment.
(5) Insufficient applications.--If, in any year, emission
allowances available under paragraph (2) cannot be provided
because of insufficient numbers of submitted applications
that meet the criteria for support established by the
Secretary of Energy under sections 122 or 123 of this Act,
the remaining emission allowances shall be distributed
according to subsection (d).
(d) Advanced Technology Vehicles.--
(1) In general.--The Administrator shall, at the direction
of the Secretary of Energy, provide any emission allowances
allocated pursuant to section 782(i) of the Clean Air Act
that are not provided under subsection

[[Page H7485]]

(c) to automobile manufacturers and component suppliers to
pay not more than 30 percent of the cost of--
(A) reequipping, expanding, or establishing a manufacturing
facility in the United States to produce--
(i) qualifying advanced technology vehicles; or
(ii) qualifying components; and
(B) engineering integration performed in the United States
of qualifying vehicles and qualifying components.
(2) Preference.--In directing the provision of emission
allowances under this subsection during the years 2012
through 2017, the Secretary shall give preference to
applications for projects that save the maximum number of
gallons of fuel.

SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING INCENTIVE
LOANS.

Section 136(d)(1) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17013(d)(1)) is amended by striking
``$25,000,000,000'' and inserting ``$50,000,000,000''.

SEC. 126. DEFINITION OF RENEWABLE BIOMASS.

Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C.
7545(o)(1)(I)) is amended to read as follows:
``(I) Renewable biomass.--The term `renewable biomass'
means any of the following:
``(i) Materials, pre-commercial thinnings, or removed
invasive species from National Forest System land and public
lands (as defined in section 103 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1702)), including those
that are byproducts of preventive treatments (such as trees,
wood, brush, thinnings, chips, and slash), that are removed
as part of a federally recognized timber sale, or that are
removed to reduce hazardous fuels, to reduce or contain
disease or insect infestation, or to restore ecosystem
health, and that are--

``(I) not from components of the National Wilderness
Preservation System, Wilderness Study Areas, Inventoried
Roadless Areas, old growth stands, late-successional stands
(except for dead, severely damaged, or badly infested trees),
components of the National Landscape Conservation System,
National Monuments, National Conservation Areas, Designated
Primitive Areas, or Wild and Scenic Rivers corridors;
``(II) harvested in environmentally sustainable quantities,
as determined by the appropriate Federal land manager; and
``(III) harvested in accordance with Federal and State law,
and applicable land management plans.

``(ii) Any organic matter that is available on a renewable
or recurring basis from non-Federal land or land belonging to
an Indian or Indian tribe that is held in trust by the United
States or subject to a restriction against alienation imposed
by the United States, including--

``(I) renewable plant material, including--

``(aa) feed grains;
``(bb) other agricultural commodities;
``(cc) other plants and trees; and
``(dd) algae; and

``(II) waste material, including--

``(aa) crop residue;
``(bb) other vegetative waste material (including wood
waste and wood residues);
``(cc) animal waste and byproducts (including fats, oils,
greases, and manure);
``(dd) construction waste;
``(ee) food waste and yard waste; and
``(ff) the non-fossil biogenic portion of municipal solid
waste and construction, demolition, and disaster debris.
``(iii) Residues and byproducts from wood, pulp, or paper
products facilities.''.
(c) Reduction.--The last sentence of section 211(o)(7)(D)
of the Clean Air Act (42 U.S.C. 7545(o)(7)(D)) is amended to
read as follows: ``For any calendar year in which the
Administrator makes such a reduction, the Administrator shall
also reduce the applicable volume of renewable fuel and
advanced biofuels requirement established under paragraph
(2)(B) by the same volume.''.

SEC. 127. OPEN FUEL STANDARD.

(a) Findings.--The Congress finds that--
(1) the status of oil as a strategic commodity, which
derives from its domination of the transportation sector,
presents a clear and present danger to the United States;
(2) in a prior era, when salt was a strategic commodity,
salt mines conferred national power and wars were fought over
the control of such mines;
(3) technology, in the form of electricity and
refrigeration, decisively ended salt's monopoly of meat
preservation and greatly reduced its strategic importance;
(4) fuel competition and consumer choice would similarly
serve to end oil's monopoly in the transportation sector and
strip oil of its strategic status;
(5) the current closed fuel market has allowed a cartel of
petroleum exporting countries to inflate fuel prices,
effectively imposing a harmful tax on the economy of the
United States;
(6) much of the inflated petroleum revenues the oil cartel
earns at the expense of the people of the United States are
used for purposes antithetical to the interests of the United
States and its allies;
(7) alcohol fuels, including ethanol and methanol, could
potentially provide significant supplies of additional fuels
that could be produced in the United States and in many other
countries in the Western Hemisphere that are friendly to the
United States;
(8) alcohol fuels can only play a major role in securing
the energy independence of the United States if a substantial
portion of vehicles in the United States are capable of
operating on such fuels;
(9) it is not in the best interest of United States
consumers or the United States Government to be constrained
to depend solely upon petroleum resources for vehicle fuels
if alcohol fuels are potentially available;
(10) existing technology, in the form of flexible fuel
vehicles, allows internal combustion engine cars and trucks
to be produced at little or no additional cost, which are
capable of operating on conventional gasoline, alcohol fuels,
or any combination of such fuels, as availability or cost
advantage dictates, providing a platform on which fuels can
compete;
(11) the necessary distribution system for such alcohol
fuels will not be developed in the United States until a
substantial fraction of the vehicles in the United States are
capable of operating on such fuels;
(12) the establishment of such a vehicle fleet and
distribution system would provide a large market that would
mobilize private resources to substantially advance the
technology and expand the production of alcohol fuels in the
United States and abroad;
(13) the United States has an urgent national security
interest to develop alcohol fuels technology, production, and
distribution systems as rapidly as possible;
(14) new cars sold in the United States that are equipped
with an internal combustion engine should allow for fuel
competition by being flexible fuel vehicles, and new diesel
cars should be capable of operating on biodiesel; and
(15) such an open fuel standard would help to protect the
United States economy from high and volatile oil prices and
from the threats caused by global instability, terrorism, and
natural disaster.
(b) Open Fuel Standard for Transportation.--(1) Chapter 329
of title 49, United States Code, is amended by adding at the
end the following:

``Sec. 32920. Open fuel standard for transportation

``(a) Definitions.--In this section:
``(1) E85.--The term `E85' means a fuel mixture containing
85 percent ethanol and 15 percent gasoline by volume.
``(2) Flexible fuel automobile.--The term `flexible fuel
automobile' means an automobile that has been warranted by
its manufacturer to operate on gasoline, E85, and M85.
``(3) Fuel choice-enabling automobile.--The term `fuel
choice-enabling automobile' means--
``(A) a flexible fuel automobile; or
``(B) an automobile that has been warranted by its
manufacturer to operate on biodiesel.
``(4) Light-duty automobile.--The term `light-duty
automobile' means--
``(A) a passenger automobile; or
``(B) a non-passenger automobile.
``(5) Light-duty automobile manufacturer's annual covered
inventory.--The term `light-duty automobile manufacturer's
annual covered inventory' means the number of light-duty
automobiles powered by an internal combustion engine that a
manufacturer, during a given calendar year, manufactures in
the United States or imports from outside of the United
States for sale in the United States.
``(6) M85.--The term `M85' means a fuel mixture containing
85 percent methanol and 15 percent gasoline by volume.
``(b) Open Fuel Standard for Transportation.--
``(1) In general.--The Secretary may promulgate regulations
to require each light-duty automobile manufacturer's annual
covered inventory to be comprised of a minimum percentage of
fuel-choice enabling automobiles, with sufficient lead time,
if the Secretary, in coordination with the Secretary of
Energy and the Administrator of the Environmental Protection
Agency, determines such requirement is a cost-effective way
to achieve the Nation's energy independence and environmental
objectives. The cost-effective determination shall consider
the future availability of both alternative fuel supply and
infrastructure to deliver the alternative fuel to the fuel-
choice enabling vehicles.
``(2) Temporary exemption from requirements.--
``(A) Application.--A manufacturer may request an exemption
from the requirement described in paragraph (1) by submitting
an application to the Secretary, at such time, in such
manner, and containing such information as the Secretary may
require by regulation. Each such application shall specify
the models, lines, and types of automobiles affected.
``(B) Evaluation.--After evaluating an application received
from a manufacturer, the Secretary may at any time, under
such terms and conditions, and to such extent as the
Secretary considers appropriate, temporarily exempt, or renew
the exemption of, a light-duty automobile from the
requirement described in paragraph (1) if the Secretary
determines that unavoidable events not under the control of
the manufacturer prevent the manufacturer of such automobile
from meeting its required production volume of fuel choice-
enabling automobiles, including--
``(i) a disruption in the supply of any component required
for compliance with the regulations;

[[Page H7486]]

``(ii) a disruption in the use and installation by the
manufacturer of such component; or
``(iii) application to plug-in electric drive vehicles
causing such vehicles to fail to meet State air quality
requirements.
``(C) Consolidation.--The Secretary may consolidate
applications received from multiple manufacturers under
subparagraph (A) if they are of a similar nature.
``(D) Conditions.--Any exemption granted under subparagraph
(B) shall be conditioned upon the manufacturer's commitment
to recall the exempted automobiles for installation of the
omitted components within a reasonable time proposed by the
manufacturer and approved by the Secretary after such
components become available in sufficient quantities to
satisfy both anticipated production and recall volume
requirements.
``(E) Notice.--The Secretary shall publish in the Federal
Register--
``(i) notice of each application received from a
manufacturer;
``(ii) notice of each decision to grant or deny a temporary
exemption; and
``(iii) the reasons for granting or denying such
exemptions.''.
(2) The table of contents in chapter 329 of such title is
amended by adding at the end the following:

``32920. Open fuel standard for transportation.''.

SEC. 128. DIESEL EMISSIONS REDUCTION.

Subtitle G of title VII of the Energy Policy Act of 2005
(42 U.S.C. 16131 et seq.) is amended--
(1) in the matter preceding clause (i) in section
791(3)(B), by inserting ``in any State'' after ``nonprofit
organization or institution'';
(2) in section 791(9), by striking ``The term `State'
includes the District of Columbia.'' and inserting ``The term
`State' includes the District of Columbia, American Samoa,
Guam, the Commonwealth of the Northern Mariana Islands,
Puerto Rico, and the Virgin Islands.'':
(3) in section 793(c)--
(A) in paragraph (2)(A), by striking ``51 States'' and
inserting ``56 States'';
(B) in paragraph (2)(A), by striking ``1.96 percent'' and
inserting ``1.785 percent'';
(C) in paragraph (2)(B), by striking ``51 States'' and
inserting ``56 States''; and
(D) in paragraph (2)(B), by amending clause (ii) to read as
follows:
``(ii) the amount of funds remaining after each State
described in paragraph (1) receives the 1.785-percent
allocation under this paragraph.''; and
(4) in section 797, by striking ``2011'' and inserting
``2016''.

SEC. 129. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE
FUEL PIPELINES.

(a) Definitions.--Section 1701 of the Energy Policy Act of
2005 (42 U.S.C. 16511) is amended by adding at the end the
following:
``(6) Renewable fuel.--The term `renewable fuel' has the
meaning given the term in section 211(o)(1) of the Clean Air
Act (42 U.S.C. 7545(o)(1)), except that the term shall
include all ethanol and biodiesel.
``(7) Renewable fuel pipeline.--The term `renewable fuel
pipeline' means a common carrier pipeline for transporting
renewable fuel.''.
(b) Renewable Fuel Pipeline Eligibility.--Section 1703(b)
of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended
by adding at the end the following:
``(11) Renewable fuel pipelines.''.

SEC. 130. FLEET VEHICLES.

Section 508 of the Energy Policy Act of 1992 (42 U.S.C.
13258) is amended as follows:
(1) By adding the following new paragraph at the end of
subsection (a):
``(6) Repowered or converted alternative fueled vehicles.--
As used in this paragraph, the term `repowered or converted
alternative fueled vehicle' includes light-, medium- or
heavy-duty motor vehicles that have been modified with an EPA
or CARB compliant engine or vehicle or aftermarket system so
that the vehicle or engine is capable of operating on an
alternative fuel.''.
(2) By adding the following new paragraph at the end of
subsection (b):
``(3) Repowered or converted vehicles. Not later than
January 1, 2010, the Secretary shall allocate credits to
fleets that repower or convert an existing vehicle so that it
is capable of operating on an alternative fuel. In the case
of any medium- or heavy-duty vehicle that is repowered or
converted so that it is capable of operating on an
alternative fuel, the Secretary shall allocate additional
credits for such vehicles if he determines that such vehicles
displace more petroleum than light duty alternative fueled
vehicles. Such rules shall also include a requirement that
such vehicles remain in the fleet for a period of no less
than 2 years in order to continue to qualify for credit. The
Secretary also shall extend the flexibility afforded in this
paragraph to Federal fleets subject to the purchase
provisions contained in section 303 of this Act.''.

SEC. 130A. REPORT ON NATURAL GAS VEHICLE EMISSIONS
REDUCTIONS.

Within 360 days after the date of enactment of this Act,
the Administrator, in consultation with the Secretaries of
Energy and Transportation, and the Administrator of the
General Services Administration, and after an examination of
available scientific studies or analysis, shall submit to the
Congress a report on--
(1) the contribution that light and heavy duty natural gas
vehicles, by category and State, have made during the last
decade to the reduction of greenhouse gases and criteria
pollutants under the Clean Air Act, and the reduced
consumption of petroleum-based fuels;
(2) the contribution that light and heavy duty natural gas
vehicles are expected to make from 2010 to 2020 in reducing
greenhouse gas and criteria pollutants under the Clean Air
Act based, among other things, on additional Federal
incentives for the manufacture and deployment of natural gas
vehicles provided in this Act, and other Federal legislation;
and
(3) additional Federal measures, including legislation,
that could, if implemented, maximize the potential for
natural gas used in both stationary and mobile sources to
contribute to the reduction of greenhouse gases and criteria
pollutants under the Clean Air Act.

Subtitle D--State Energy and Environment Development Accounts

SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS.

(a) Definitions.--In this section:
(1) SEED account.--The term ``SEED Account'' means a State
Energy and Environment Development Account established
pursuant to this section.
(2) State energy office.--The term ``State Energy Office''
means a State entity eligible for grants under part D of
title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
(b) Establishment of Program.--The Administrator shall
establish a program under which a State, through its State
Energy Office or other State agency designated by the State,
may operate a State Energy and Environment Development
Account.
(c) Purpose.--The purpose of each SEED Account is to serve
as a common State-level repository for managing and
accounting for emission allowances provided to States
designated for renewable energy and energy efficiency
purposes.
(d) Regulations.--Not later than one year after the date of
enactment of this Act, the Administrator shall promulgate
regulations to carry out this section, including
regulations--
(1) to ensure that each State operates its SEED Account and
any subaccounts thereof efficiently and in accordance with
this Act and applicable State and Federal laws;
(2) to prevent waste, fraud, and abuse;
(3) to indicate the emission allowances that may be
deposited in a State's SEED Account pending distribution or
use;
(4) to indicate the programs and objectives authorized by
Federal law for which emission allowances in a SEED Account
may be distributed or used;
(5) to identify the forms of financial assistance and
incentives that States may provide through distribution or
use of SEED Accounts; and
(6) to prescribe the form and content of reports that the
States are required to submit under this section on the use
of SEED Accounts.
(e) Operation.--
(1) Deposits.--
(A) In general.--In the allowance tracking system
established pursuant to section 724(d) of the Clean Air Act,
the Administrator shall establish a SEED Account for each
State and place in it the allowances allocated pursuant to
section 782(g) of the Clean Air Act to be distributed to
States pursuant to sections 132 and 201 of this Act.
(B) Financial account.--A State may create a financial
account associated with its SEED Account to deposit, retain,
and manage any proceeds of any sale of any allowance provided
pursuant to this Act pending expenditure or disbursement of
those proceeds for purposes permitted under this section. The
funds in such an account shall not be commingled with other
funds not derived from the sale of allowances provided to the
State; however, loans made by the State from such funds
pursuant to paragraph (2)(C)(i) may be repaid into such a
financial account, including any interest charged.
(2) Withdrawals.--
(A) In general.--All allowances distributed pursuant to
sections 132 and 201, including the proceeds of any sale of
such allowances, shall support renewable energy and energy
efficiency programs authorized or approved by the Federal
Government.
(B) Dedicated allowances.--Allowances distributed pursuant
to sections 132 and 201 that are required by law to be used
for specific purposes for a specified period shall be used
according to those requirements during that period.
(C) Undedicated allowances.--To the extent that allowances
distributed pursuant to sections 132 and 201 are not required
by law to be used for specific purposes for a specified
period as described in subparagraph (B), such allowances or
the proceeds of their sale may be used for any of the
following purposes:
(i) Loans.--Loans of allowances, or the proceeds from the
sale of allowances, may be provided, interest on commercial
loans may be subsidized at an interest rate as low as zero,
and other credit support may be provided to support programs
authorized to use SEED Account allowance value or any other
renewable energy or energy efficiency purpose authorized or
approved by the Federal Government.
(ii) Grants.--Grants of allowances or the proceeds of their
sale may be provided to support programs authorized to use
SEED

[[Page H7487]]

Account allowance value or any other renewable energy or
energy efficiency purpose authorized or approved by the
Federal Government.
(iii) Other forms of support.--Allowances or the proceeds
of the sale of allowances may be provided for other forms of
support for programs authorized to use SEED Account allowance
value or any other renewable energy or energy efficiency
purpose authorized or approved by the Federal Government.
(iv) Administrative costs.--Except to the extent provided
in Federal law authorizing or allocating allowances deposited
in a SEED Account, not more than 5 percent of the allowance
value in a SEED Account in any year may be used to cover
administrative expenses of the SEED Account.
(D) Subaccounts.--A State may request that the
Administrator establish accounts for local governments that
request such subaccounts to hold allowances distributed to
local governments for renewable energy or energy efficiency
programs authorized or approved by the Federal Government.
(E) Intended use plans.--
(i) In general.--After providing for public review and
comment, each State administering a SEED Account shall
annually prepare a plan that identifies the intended uses of
the allowances or proceeds from the sale of allowances in its
SEED Account.
(ii) Contents.--An intended use plan shall include--

(I) a list of the projects or programs for which
withdrawals from the SEED Account are intended in the next
fiscal year that begins after the date of the plan, including
a description of each project;
(II) the relationship of each of the projects or programs
to an identified Federal purpose authorized by this Act, or
any other Federal statute;
(III) the expected terms of use of allowance value to
provide assistance;
(IV) the criteria and methods established for the
distribution of allowances or allowance value;
(V) a description of the equivalent financial value and
status of the SEED Account; and
(VI) a statement of the mid-term and long-term goals of the
State for use of its SEED Account.

(3) Accountability and transparency.--
(A) Controls and procedures.--Any State that has a SEED
Account shall establish fiscal controls and recordkeeping and
accounting procedures for the SEED Account sufficient to
ensure proper accounting during appropriate accounting
periods for distributions into the SEED Account, transfers
from the SEED Account, and SEED Account balances, including
any related financial accounts. Such controls and procedures
shall conform to generally accepted government accounting
principles. Any State that has a SEED Account shall retain
records for a period of at least 5 years.
(B) Audits.--Any State that has a SEED Account shall have
an annual audit conducted of the SEED Account by an
independent public accountant in accordance with generally
accepted auditing standards, and shall transmit the results
of that audit to the Administrator.
(C) State report.--Each State administering a SEED Account
shall make publicly available and submit to the Administrator
a report every 2 years on its activities related to its SEED
Account.
(D) Public information.--Any--
(i) controls and procedures established under subparagraph
(A); and
(ii) information obtained through audits conducted under
subparagraph (B), except to the extent that it would be
protected from disclosure, if it were information held by the
Federal Government, under section 552(b) of title 5, United
States Code,
shall be made publicly available.
(E) Other protections.--The Administrator shall require
such additional procedures and protections as are necessary
to ensure that any State that has a SEED Account will operate
the SEED Account in an accountable and transparent manner.
(f) Requirements for Eligibility.--A State's eligibility to
receive allowances in its SEED Account shall depend on that
State's compliance with the requirements of this Act (and the
amendments made by this Act).
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator such sums as may be
necessary for SEED Account operations.

SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND ENERGY
EFFICIENCY PROGRAMS.

(a) Definitions.--For purposes of this section:
(1) Allowance.--The term ``allowance'' means an emission
allowance established under section 721 of the Clean Air Act
(as added by section 311 of this Act).
(2) Cost-effective.--The term ``cost-effective'', with
respect to an energy efficiency program, means that the
program meets the Total Resource Cost Test, which requires
that the net present value of economic benefits over the life
of the program or measure, including avoided supply and
delivery costs and deferred or avoided investments, is
greater than the net present value of the economic costs over
the life of the program, including program costs and
incremental costs borne by the energy consumer.
(3) Renewable energy resource.--The term ``renewable energy
resource'' shall have the meaning given that term in section
610 of the Public Utility Regulatory Policies Act of 1978 (as
added by section 101 of this Act).
(4) Vintage year.--The term ``vintage year'' shall the
meaning given that term in section 700 of the Clean Air Act
(as added by section 311 of this Act).
(b) Distribution Among States.--Not later than September 30
of each calendar year from 2011 through 2049, the
Administrator shall, in accordance with this section,
distribute allowances allocated pursuant to section 782(g)(1)
of the Clean Air Act (as added by section 311 of this Act)
for the following vintage year. The Administrator shall
distribute 0.5 percent of such allowances pursuant to section
133 of this Act. The Administrator shall distribute the
remaining allowances to States for renewable energy and
energy efficiency programs to be deposited in and
administered through the State Energy and Environment
Development (SEED) Accounts established pursuant to section
131. The Administrator shall distribute allowances among the
States under this section each year in accordance with the
following formula:
(1) One third of the allowances shall be divided equally
among the States.
(2) One third of the allowances shall be distributed
ratably among the States based on the population of each
State, as contained in the most recent reliable census data
available from the Bureau of the Census, Department of
Commerce, for all States at the time the Administrator
calculates the formula for distribution.
(3) One third of the allowances shall be distributed
ratably among the States on the basis of the energy
consumption of each State as contained in the most recent
State Energy Data Report available from the Energy
Information Administration (or such alternative reliable
source as the Administrator may designate).
(c) Uses.--The allowances distributed to each State
pursuant to this section shall be used exclusively in
accordance with the following requirements:
(1) Not less than 12.5 percent shall be distributed by the
State to units of local government within such State to be
used exclusively to support the energy efficiency and
renewable energy purposes listed in paragraphs (2) and (3).
(2) Not less than 20 percent shall be used exclusively for
the following energy efficiency purposes, provided that not
less than 1 percent shall be used for the purpose described
in subparagraph (D) and not less than 5.5 percent shall be
used for the purpose described in subparagraph (E):
(A) Implementation and enforcement of building codes
adopted in compliance with section 201.
(B) Implementation of the energy efficient manufactured
homes program established pursuant to section 203.
(C) Implementation of the building energy performance
labeling program established pursuant to section 204.
(D) Low-income community energy efficiency programs that
are consistent with the grant program established under
section 264 of this Act.
(E) Implementation of the Retrofit for Energy and
Environmental Performance (REEP) program established pursuant
to section 202.
(3) Not less than 20 percent shall be used exclusively for
capital grants, tax credits, production incentives, loans,
loan guarantees, forgivable loans, direct provision of
allowances, and interest rate buy-downs for--
(A) re-equipping, expanding, or establishing a
manufacturing facility that receives certification from the
Secretary of Energy pursuant to section 1302 of the American
Recovery and Reinvestment Act of 2009 for the production of--
(i) property designed to be used to produce energy from
renewable energy sources; and
(ii) electricity storage systems;
(B) deployment of technologies to generate electricity from
renewable energy sources; and
(C) deployment of facilities or equipment, such as solar
panels, to generate electricity or thermal energy from
renewable energy resources in and on buildings in an urban
environment.
(4) The remaining 47.5 percent shall be used exclusively
for any of the following purposes:
(A) Energy efficiency purposes described in paragraph (2).
(B) Renewable energy purposes described in paragraph (3)(B)
and (C).
(C) Cost-effective energy efficiency programs for end-use
consumers of electricity, natural gas, home heating oil, or
propane, including, where appropriate, programs or mechanisms
administered by local governments and entities other than the
State.
(D) Enabling the development of a Smart Grid (as described
in section 1301 of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17381)) for State, local government, and
other public buildings and facilities, including integration
of renewable energy resources and distributed generation,
demand response, demand side management, and systems
analysis.
(E) Providing the non-Federal share of support for surface
transportation capital projects under--
(i) sections 5307, 5308, 5309, 5310, 5311 and 5319 of title
49, United States Code; and
(ii) sections 142, 146, and 149 of title 23, United States
Code,
provided that not more than 10 percent of allowances
distributed to each State pursuant to this section shall be
used for such purpose.

[[Page H7488]]

(5) For any allowances used for the purpose described in
paragraph (4)(C), the State shall--
(A) prioritize expansion of existing energy efficiency
programs approved and overseen by the State or the
appropriate State regulatory authority; and
(B) demonstrate that such allowances have been used to
supplement, and not to supplant, existing and otherwise
available State, local, and ratepayer funding for such
purpose.
(d) Reporting.--Each State receiving allowances under this
section shall include in its biennial reports required under
section 131, in accordance with such requirements as the
Administrator may prescribe
(1) a list of entities receiving allowances or allowance
value under this section, including entities receiving such
allowances or allowance value from units of local government
pursuant to subsection (c)(1);
(2) the amount and nature of allowances or allowance value
received by each such recipient;
(3) the specific purposes for which such allowances or
allowance value was conveyed to each such recipient;
(4) documentation of the amount of energy savings, emission
reductions, renewable energy deployment, and new or retooled
manufacturing capacity resulting from the use of such
allowances or allowance value; and
(5) for any energy efficiency program supported under
subsection (c)(4)(C)--
(A) an assessment demonstrating the cost-effectiveness of
such program; and
(B) a demonstration that the requirements set forth in
subsection (c)(5) have been satisfied.
(e) Enforcement.--If the Administrator determines that a
State is not in compliance with this section, the
Administrator may withhold up to twice the number of
allowances that the State failed to use in accordance with
the requirements of this section, that such State would
otherwise be eligible to receive under this section in later
years. Allowances withheld pursuant to this subsection shall
be distributed among the remaining States in accordance with
the requirements of subsection (b).

SEC. 133. SUPPORT OF INDIAN RENEWABLE ENERGY AND ENERGY
EFFICIENCY PROGRAMS.

(a) Definitions.--For purposes of this section:
(1) Allowance; cost-effective; renewable energy resource.--
The terms ``allowance'', ``cost-effective'', and ``renewable
energy resource'' have the meaning given those terms in
section 132 of this Act.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Establishment.--Not later than 18 months after the date
of enactment of this Act, the Secretary shall, in
consultation with the Administrator and the Secretary of the
Interior, promulgate regulations establishing a program to
distribute allowances to Indian tribes on a competitive basis
for the following purposes:
(1) Energy efficiency.--Cost-effective energy efficiency
programs for end-use consumers of electricity, natural gas,
home heating oil, or propane.
(2) Renewable energy.--Deployment of technologies to
generate electricity from renewable energy resources.
(c) Requirements.--The regulations promulgated pursuant to
subsection (b) shall prescribe design elements and
requirements of the program established under this section,
including--
(1) objective criteria for evaluating proposals submitted
by Indian tribes, and for selecting projects and programs to
receive support, under this section;
(2) reporting requirements for Indian tribes that receive
allowances under this section; and
(3) other appropriate elements and requirements.
(d) Distribution.--The Administrator shall, at the
direction of the Secretary, distribute to Indian tribes
allowances that are set aside, pursuant to section 132, for
use under this section.

Subtitle E--Smart Grid Advancement

SEC. 141. DEFINITIONS.

For purposes of this subtitle:
(1) The term ``applicable baseline'' means the average of
the highest three annual peak demands a load-serving entity
has experienced during the 5 years immediately prior to the
date of enactment of this Act.
(2) The term ``Commission'' means Federal Energy Regulatory
Commission.
(3) The term ``load-serving entity'' means an entity that
provides electricity directly to retail consumers with the
responsibility to assure power quality and reliability,
including such entities that are investor-owned, publicly
owned, owned by rural electric cooperatives, or other
entities.
(4) The term ``peak demand'' means the highest point of
electricity demand, net of any distributed electricity
generation or storage from sources on the load-serving
entity's customers' premises, during any hour on the system
of a load serving entity during a calendar year, expressed in
Megawatts (MW), or more than one such high point as a
function of seasonal demand changes.
(5) The term ``peak demand reduction'' means the reduction
in annual peak demand as compared to a previous baseline year
or period, expressed in Megawatts (MW), whether accomplished
by--
(A) diminishing the end-use requirements for electricity;
(B) use of locally stored energy or generated electricity
to meet those requirements from distributed resources on the
load-serving entity's customers' premises and without use of
high-voltage transmission; or
(C) energy savings from efficient operation of the
distribution grid resulting from the use of a Smart Grid.
(6) The term ``peak demand reduction plan'' means a plan
developed by or for a load-serving entity that it will
implement to meet its peak demand reduction goals.
(7) The term ``peak period'' means the time period on the
system of a load-serving entity relative to peak demand that
may warrant special measures or electricity resources to
maintain system reliability while meeting peak demand.
(8) The term ``Secretary'' means the Secretary of Energy.
(9) The term ``Smart Grid'' has the meaning provided by
section 1301 of the Energy Independence and Security Act of
2007 (15 U.S.C. 17381).

SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN
PRODUCTS.

(a) Assessment.--Within one year after the date of
enactment of this Act, the Secretary and the Administrator
shall each assess the potential for cost-effective
integration of Smart Grid technologies and capabilities in
all products that are reviewed by the Department of Energy
and the Environmental Protection Agency, respectively, for
potential designation as Energy Star products.
(b) Analysis.--(1) Within 2 years after the date of
enactment of this Act, the Secretary and the Administrator
shall each prepare an analysis of the potential energy
savings, greenhouse gas emission reductions, and electricity
cost savings that could accrue for each of the products
identified by the assessment in subsection (a) in the
following optimal circumstances:
(A) The products possessed Smart Grid capability and
interoperability that is tested and proven reliable.
(B) The products were utilized in an electricity utility
service area which had Smart Grid capability and offered
customers rate or program incentives to use the products.
(C) The utility's rates reflected national average costs,
including average peak and valley seasonal and daily
electricity costs.
(D) Consumers using such products took full advantage of
such capability.
(E) The utility avoided incremental investments and rate
increases related to such savings.
(2) The analysis under paragraph (1) shall be considered
the ``best case'' Smart Grid analysis. On the basis of such
an analysis for each product, the Secretary and the
Administrator shall determine whether the installation of
Smart Grid capability for such a product would be cost
effective. For purposes of this paragraph, the term ``cost
effective'' means that the cumulative savings from using the
product under the best case Smart Grid circumstances for a
period of one-half of the product's expected useful life will
be greater than the incremental cost of the Smart Grid
features included in the product.
(3) To the extent that including Smart Grid capability in
any products analyzed under paragraph (2) is found to be cost
effective in the best case, the Secretary and the
Administrator shall, not later than 3 years after the date of
enactment of this Act take each of the following actions:
(A) Inform the manufacturer of such product of such finding
of cost effectiveness.
(B) Assess the potential contributions the development and
use of products with Smart Grid technologies bring to
reducing peak demand and promoting grid stability.
(C) Assess the potential national energy savings and
electricity cost savings that could be realized if Smart Grid
potential were installed in the relevant products reviewed by
the Energy Star program.
(D) Assess and identify options for providing consumers
information on products with Smart Grid capabilities,
including the necessary conditions for cost-effective
savings.
(E) Submit a report to Congress summarizing the results of
the assessment for each class of products, and presenting the
potential energy and greenhouse gas savings that could result
if Smart Grid capability were installed and utilized on such
products.

SEC. 143. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE
ENERGY GUIDE LABELS.

Section 324(a)(2) of the Energy Policy and Conservation Act
(42 U.S.C. 6294(a)(2)) is amended by adding the following at
the end:
``(J)(i) Not later than 1 year after the date of enactment
of this subparagraph, the Federal Trade Commission shall
initiate a rulemaking to consider making a special note in a
prominent manner on any ENERGY GUIDE label for any product
actually including Smart Grid capability that--
``(I) Smart Grid capability is a feature of that product;
``(II) the use and value of that feature depended on the
Smart Grid capability of the utility system in which the
product was installed and the active utilization of that
feature by the customer; and
``(III) on a utility system with Smart Grid capability, the
use of the product's Smart Grid capability could reduce the
customer's cost of the product's annual operation by an

[[Page H7489]]

estimated dollar amount range representing the result of
incremental energy and electricity cost savings that would
result from the customer taking full advantage of such Smart
Grid capability.
``(ii) Not later than 3 years after the date of enactment
of this subparagraph, the Commission shall complete the
rulemaking initiated under clause (i).''.

SEC. 144. SMART GRID PEAK DEMAND REDUCTION GOALS.

(a) Goals.--Not later than one year after the date of
enactment of this section, each load-serving entity, or, at
the option of the State, each State with respect to load-
serving entities that the State regulates, shall determine
and publish peak demand reduction goals for any load-serving
entities that have an applicable baseline in excess of 250
megawatts.
(b) Baselines.--(1) The Commission, in consultation with
the Secretary and the Administrator, shall develop and
publish, after an opportunity for public comment, but not
later than 180 days after enactment of this section, a
methodology to provide for adjustments or normalization to a
load-serving entity's applicable baseline over time to
reflect changes in the number of customers served, weather
conditions, general economic conditions, and any other
appropriate factors external to peak demand management, as
determined by the Commission.
(2) The Commission shall support load-serving entities
(including any load-serving entities with an applicable
baseline of less than 250 megawatts that volunteer to
participate in achieving the purposes of this section) in
determining their applicable baselines, and in developing
their peak demand reduction goals.
(3) The Secretary, in consultation with the Commission, the
Administrator, and the North American Electric Reliability
Corporation, shall develop a system and rules for measurement
and verification of demand reductions.
(c) Peak Demand Reduction Goals.--(1) Peak demand reduction
goals may be established for an individual load-serving
entity, or, at the determination of a State, tribal, or
regional entity, by that State, tribal, or regional entity
for a larger region that shares a common system peak demand
and for which peak demand reduction measures would offer
regional benefit.
(2) A State or regional entity establishing peak demand
reduction goals shall cooperate, as necessary and
appropriate, with the Commission, the Secretary, State
regulatory commissions, State energy offices, the North
American Electric Reliability Corporation, and other relevant
authorities.
(3) In determining the applicable peak demand reduction
goals--
(A) States and other jurisdictional entities may utilize
the results of the 2009 National Demand Response Potential
Assessment, as authorized by section 571 of the National
Energy Conservation Policy Act (42 U.S.C. 8279); and
(B) the relative economics of peak demand reduction and
generation required to meet peak demand shall be evaluated in
a neutral and objective manner.
(4) The applicable peak demand reduction goals shall
provide that--
(A) load-serving entities will reduce or mitigate peak
demand by a minimum percentage amount from the applicable
baseline to a lower peak demand during calendar year 2012;
(B) load-serving entities will reduce or mitigate peak
demand by a minimum percentage greater amount from the
applicable baseline to a lower peak demand during calendar
year 2015; and
(C) the minimum percentage reductions established as peak
demand reduction goals shall be the maximum reductions that
are realistically achievable with an aggressive effort to
deploy Smart Grid and peak demand reduction technologies and
methods, including but not limited to those listed in
subsection (d).
(d) Plan.--Each load-serving entity shall prepare a peak
demand reduction plan that demonstrates its ability to meet
each applicable goal by any or a combination of the following
options:
(1) Direct reduction in megawatts of peak demand through--
(A) energy efficiency measures (including efficient
transmission wire technologies which significantly reduce
line loss compared to traditional wire technology) with
reliable and continued application during peak demand
periods; or
(B) use of a Smart Grid.
(2) Demonstration that an amount of megawatts equal to a
stated portion of the applicable goal is contractually
committed to be available for peak reduction through one or
more of the following:
(A) Megawatts enrolled in demand response programs.
(B) Megawatts subject to the ability of a load-serving
entity to call on demand response programs, smart appliances,
smart electricity or energy storage devices, distributed
generation resources on the entity's customers' premises, or
other measures directly capable of actively, controllably,
reliably, and dynamically reducing peak demand (``dynamic
peak management control'').
(C) Megawatts available from distributed dynamic
electricity or energy storage under agreement with the owner
of that storage.
(D) Megawatts committed from dispatchable distributed
generation demonstrated to be reliable under peak period
conditions and in compliance with air quality regulations.
(E) Megawatts available from smart appliances and equipment
with Smart Grid capability available for direct control by
the utility through agreement with the customer owning the
appliances or equipment or with a third party pursuant to
such agreements.
(F) Megawatts from a demonstrated and assured minimum of
distributed solar electric generation capacity in instances
where peak period and peak demand conditions are directly
related to solar radiation and accompanying heat.
(3) If any of the methods listed in subparagraph (C), (D),
or (E) of paragraph (2) are relied upon to meet its peak
demand reduction goals, the load-serving entity must
demonstrate this capability by operating a test during the
applicable calendar year.
(4) Nothing in this section shall require the publication
in peak demand reduction goals or in any peak demand
reduction plan of any information that is confidential for
competitive or other reasons or that identifies individual
customers.
(e) Existing Authority and Requirements.--Nothing in this
section diminishes or supersedes any authority of a State or
political subdivision of a State to adopt or enforce any law
or regulation respecting peak demand management, demand
response, distributed energy storage, use of distributed
generation, or the regulation of load-serving entities. The
Commission, in consultation with States and Indian tribes
having such peak management, demand response and distributed
energy storage programs, shall to the maximum extent
practicable, facilitate coordination between the Federal
program and such State and tribal programs.
(f) Relief.--The Commission may, for good cause, grant
relief to load-serving entities from the requirements of this
section.
(g) Other Laws.--Except as provided in subsections (e) and
(f), no law or regulation shall relieve any person of any
requirement otherwise applicable under this section.
(h) Compliance.--(1) The Commission shall within one year
after the date of enactment of this Act establish a public
website where the Commission will provide information and
data demonstrating compliance by States, Indian tribes
regional entities, and load-serving entities with this
section, including the success of load-serving entities in
meeting applicable peak demand reduction goals.
(2) The Commission shall, by April 1 of each year beginning
in 2012, provide a report to Congress on compliance with this
section and success in meeting applicable peak demand
reduction goals and, as appropriate, shall make
recommendations as to how to increase peak demand reduction
efforts.
(3) The Commission shall note in each such report any
State, political subdivision of a State, or load-serving
entity that has failed to comply with this section, or is not
a part of any region or group of load-serving entities
serving a region that has complied with this section.
(4) The Commission shall have and exercise the authority to
take reasonable steps to modify the process of establishing
peak demand reduction goals and to accept adjustments to them
as appropriate when sought by load-serving entities.
(i) Assistance and Funding.--
(1) Assistance to states and tribes.--Any costs incurred by
States for activities undertaken pursuant to this section
shall be supported by the use of emission allowances
allocated to the States' SEED Accounts or to the tribes
pursuant to section 132 of this Act. To the extent that a
State provides allowances to local governments within the
State to implement this program, that shall be deemed a
distribution of such allowances to units of local government
pursuant to subsection (c)(1) of that section.
(2) Funding.--There are authorized to be appropriated such
sums as may be necessary to the Commission, the Secretary,
and the Administrator to carry out the provisions of this
section.

SEC. 145. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC
INFORMATION PROGRAM TO INCLUDE SMART GRID
INFORMATION.

(a) In General.--Section 134 of the Energy Policy Act of
2005 (42 U.S.C. 15832) is amended as follows:
(1) By amending the section heading to read as follows:
``ENERGY EFFICIENCY AND SMART GRID PUBLIC INFORMATION
INITIATIVE''.
(2) In paragraph (1) of subsection (a) by striking ``reduce
energy consumption during the 4-year period beginning on the
date of enactment of this Act'' and inserting ``increase
energy efficiency and to adopt Smart Grid technology and
practices''.
(3) In paragraph (2) of subsection (a) by striking
``benefits to consumers of reducing'' and inserting
``economic and environmental benefits to consumers and the
United States of optimizing''.
(4) In subsection (a) by inserting at the beginning of
paragraph (3) ``the effect of energy efficiency and Smart
Grid capability in reducing energy and electricity prices
throughout the economy, together with''.
(5) In subsection (a)(4) by redesignating subparagraph (D)
as (E), by striking ``and'' at the end of subparagraph (C),
and by inserting after subparagraph (C) the following:
``(D) purchasing and utilizing equipment that includes
Smart Grid features and capability; and''.
(6) In subsection (c), by striking ``Not later than July 1,
2009,'' and inserting, ``For each year when appropriations
pursuant to the authorization in this section exceed
$10,000,000,''.

[[Page H7490]]

(7) In subsection (d) by striking ``2010'' and inserting
``2020''.
(8) In subsection (e) by striking ``2010'' and inserting
``2020''.
(b) Table of Contents.--The item relating to section 134 in
the table of contents for the Energy Policy Act of 2005 (42
U.S.C. 15801 and following) is amended to read as follows:

``Sec. 134. Energy efficiency and Smart Grid public information
initiative.''.

SEC. 146. INCLUSION OF SMART GRID FEATURES IN APPLIANCE
REBATE PROGRAM.

(a) Amendments.--Section 124 of the Energy Policy Act of
2005 (42 U.S.C. 15821) is amended as follows:
(1) By amending the section heading to read as follows:
``ENERGY EFFICIENT AND SMART APPLIANCE REBATE PROGRAM.''.
(2) By redesignating paragraphs (4) and (5) of subsection
(a) as paragraphs (5) and (6), respectively, and inserting
after paragraph (3) the following:
``(4) Smart appliance.--The term `smart appliance' means a
product that the Administrator of the Environmental
Protection Agency or the Secretary of Energy has determined
qualifies for such a designation in the Energy Star program
pursuant to section 142 of the American Clean Energy and
Security Act of 2009, or that the Secretary or the
Administrator has separately determined includes the relevant
Smart Grid capabilities listed in section 1301 of the Energy
Independence and Security Act of 2007 (15 U.S.C. 17381).''.
(3) In subsection (b)(1) by inserting ``and smart'' after
``efficient'' and by inserting after ``products'' the first
place it appears ``, including products designated as being
smart appliances''.
(4) In subsection (b)(3), by inserting ``the administration
of'' after ``carry out''.
(5) In subsection (d), by inserting ``the administration
of'' after ``carrying out'' and by inserting ``, and up to
100 percent of the value of the rebates provided pursuant to
this section'' before the period at the end.
(6) In subsection (e)(3), by inserting ``, with separate
consideration as applicable if the product is also a smart
appliance,'' after ``Energy Star product'' the first place it
appears and by inserting ``or smart appliance'' before the
period at the end.
(7) In subsection (f), by striking ``$50,000,000'' through
the period at the end and inserting ``$100,000,000 for each
fiscal year from 2010 through 2015.''.
(b) Table of Contents.--The item relating to section 124 in
the table of contents for the Energy Policy Act of 2005 (42
U.S.C. 15801 and following) is amended to read as follows:

``Sec. 124. Energy efficient and smart appliance rebate program.''.

Subtitle F--Transmission Planning

SEC. 151. TRANSMISSION PLANNING AND SITING.

(a) In General.--Section 216 of the Federal Power Act (16
U.S.C. 824p) is amended as follows:
(1) In subsection (b), in paragraph (5), by striking ``;
and'' and inserting a semicolon, in paragraph (6) by striking
the period and inserting ``; and'' and by adding the
following at the end thereof:
``(7) the facility is interstate in nature or is an
intrastate segment integral to a proposed interstate
facility;''.
(2) In subsection (k), by inserting at the end the
following: ``Subsections (a), (b), (c), and (h) of this
section shall not apply in the Western interconnection.''.
(3) In subsections (d) and (e), by striking ``subsection
(b)'' in each place and inserting ``subsection (b) or section
216B'', and by striking ``permit'' and inserting ``permit or
certificate'' in each place it appears.
(b) New Sections.--The Federal Power Act (16 U.S.C. 824p)
is amended by inserting the following new sections after
section 216:

``SEC. 216A TRANSMISSION PLANNING.

``(a) Federal Policy for Transmission Planning.--
``(1) Objectives.--It is the policy of the United States
that regional electric grid planning should facilitate the
deployment of renewable and other zero-carbon and low-carbon
energy sources for generating electricity to reduce
greenhouse gas emissions while ensuring reliability, reducing
congestion, ensuring cyber-security, minimizing environmental
harm, and providing for cost-effective electricity services
throughout the United States, in addition to serving the
objectives stated in section 217(b)(4).
``(2) Options.--In addition to the policy under paragraph
(1), it is the policy of the United States that regional
electric grid planning to meet these objectives should result
from an open, inclusive and transparent process, taking into
account all significant demand-side and supply-side options,
including energy efficiency, distributed generation,
renewable energy and zero-carbon electricity generation
technologies, smart-grid technologies and practices, demand
response, electricity storage, voltage regulation
technologies, high capacity conductors with at least 25
percent greater efficiency than traditional ACSR (aluminum
stranded conductors steel reinforced) conductors,
superconductor technologies, underground transmission
technologies, and new conventional electric transmission
capacity and corridors.
``(b) Planning.--
``(1) Planning principles.--Not later than 1 year after the
date of enactment of this section, the Commission shall
adopt, after notice and opportunity for comment, national
electricity grid planning principles derived from the Federal
policy established under subsection (a) to be applied in
ongoing and future transmission planning that may implicate
interstate transmission of electricity.
``(2) Regional planning entities.--Not later than 3 months
after the date of adoption by the Commission of national
electricity grid planning principles pursuant to paragraph
(1), entities that conduct or may conduct transmission
planning pursuant to State, tribal, or Federal law or
regulation, including States, Indian tribes, entities
designated by States and Indian tribes, Federal Power
Marketing Administrations, transmission providers, operators
and owners, regional organizations, and electric utilities,
and that are willing to incorporate the national electricity
grid planning principles adopted by the Commission in their
electric grid planning, shall identify themselves and the
regions for which they propose to develop plans to the
Commission.
``(3) Coordination of regional planning entities.--The
Commission shall encourage regional planning entities
described under paragraph (2) to cooperate and coordinate
across regions and to harmonize regional electric grid
planning with planning in adjacent or overlapping
jurisdictions to the maximum extent feasible. The Commission
shall work with States, Indian tribes, Federal land
management agencies, State energy, environment, natural
resources, and land management agencies and commissions,
Federal power marketing administrations, electric utilities,
transmission providers, load-serving entities, transmission
operators, regional transmission organizations, independent
system operators, and other organizations to resolve any
conflict or competition among proposed planning entities in
order to build consensus and promote the Federal policy
established under subsection (a). The Commission shall seek
to ensure that planning that is consistent with the national
electricity grid planning principles adopted pursuant to
paragraph (1) is conducted in all regions of the United
States and the territories, but in a manner that, to the
extent feasible, avoids uncoordinated planning by more than
one planning entity for the same area.
``(4) Relation to existing planning policy.--In
implementing the Federal policy established under subsection
(a), the Commission shall
``(A) incorporate and coordinate with any ongoing planning
efforts undertaken pursuant to section 217 and Commission
Order No. 890;
``(B) coordinate with the Secretary of Energy in providing
to the regional planning entities an annual summary of
national energy policy priorities and goals;
``(C) coordinate with corridor designation and planning
functions carried out pursuant to section 216 by the
Secretary of Energy, who shall provide financial support from
available funds to support the purposes of this section; and
``(D) coordinate with the Secretaries of the Interior and
Agriculture and Indian tribes in carrying out the
Secretaries' or tribal governments' existing responsibilities
for the planning or siting of transmission facilities on
Federal or tribal lands, consistent with law, policy, and
regulations relating to the management of federal public
lands .
``(5) Assistance.--
``(A) In general.--The Commission shall provide support to
and may participate if invited to do so in the regional grid
planning processes conducted by regional planning entities.
The Secretary of Energy and the Commission may provide
planning resources and assistance as required or as requested
by regional planning entities, including system data, cost
information, system analysis, technical expertise, modeling
support, dispute resolution services, and other assistance to
regional planning entities, as appropriate.
``(B) Authorization.--There are authorized to be
appropriated such sums as may be necessary to carry out this
paragraph.
``(6) Conflict resolution.--In the event that regional grid
plans conflict, the Commission shall assist the regional
planning entities in resolving such conflicts in order to
achieve the objectives of the Federal policy established
under subsection (a).
``(7) Submission of plans.--The Commission shall require
regional planning entities to submit initial regional
electric grid plans to the Commission not later than 18
months after the date the Commission promulgates national
electricity grid planning principles pursuant to paragraph
(1), with updates to such plans not less than every 3 years
thereafter. The Commission shall review such plans for
consistency with the national grid planning principles and
may return a plan to one or more planning entities for
further consideration, along with the Commission's own
recommendations for resolution of any conflict or for
improvement.
``(8) Integration of plans.--Regional electric grid plans
should, in general, be developed from sub-regional
requirements and plans, including planning input reflecting
individual utility service areas. Regional plans may then in
turn be combined into larger regional plans, up to
interconnection-wide and national plans, as appropriate and
necessary as determined by the Commission. In no case shall a
multi-regional plan impose inclusion of a facility on a
region that has submitted a valid plan that, after efforts to
resolve the conflict, does not include such facility. To the
extent practicable, all plans submitted to the Commission
shall be public documents and available on the Commission's
Web site.
``(9) Multi-regional meetings.--As regional grid plans are
submitted to the Commission, the Commission may convene
multi-regional meetings to discuss regional

[[Page H7491]]

grid plan consistency and integration, including requirements
for multi-regional projects, and to resolve any conflicts
that emerge from such multi-regional projects. The Commission
shall provide its recommendations for eliminating any inter-
regional conflicts.
``(10) Report to congress.--Not later than 3 years after
the date of enactment of this section and each 3 years
thereafter, the Commission shall provide a report to Congress
containing the results of the regional grid planning process,
including summaries of the adopted regional plans and the
extent to which the Federal policy objectives in subsection
(a) have been successfully achieved. The Commission shall
provide an electronic version of its report on its website
with links to all regional and sub-regional plans taken into
account. The Commission shall note and provide its
recommended resolution for any conflicts not resolved during
the planning process. The Commission shall make any
recommendations to Congress on the appropriate Federal role
or support required to address the needs of the electric
grid, including recommendations for addressing any needs that
are beyond the reach of existing State, tribal, and Federal
authority.

``SEC. 216B. SITING AND CONSTRUCTION IN THE WESTERN
INTERCONNECTION.

``(a) Applicability.--This section applies only to States
located in the Western Interconnection and does not apply to
States located in the Eastern Interconnection, to the States
of Alaska or Hawaii, or to ERCOT.
``(b) Certificate of Public Convenience and Necessity.--The
Commission may, after notice and opportunity for hearing,
issue a certificate of public convenience and necessity for
the construction or modification of a transmission facility
if the Commission finds that--
``(1) the facility was identified and included in one or
more relevant and final regional or interconnection-wide
electric grid plans submitted to the Commission pursuant to
subsection (b) of 216A;
``(2) any conflict among regional electric grid plans
concerning the need for the facility was resolved;
``(3) such relevant regional electric grid plans are
consistent with the national grid planning principles adopted
by the Commission pursuant to subsection (b);
``(4) the facility was identified as needed in significant
measure to meet demand for renewable energy in such plans;
``(5) the facility is a multistate facility;
``(6) the developer of such facility filed a complete
application seeking approval for the siting of the facility
with a state commission or other entity that has authority to
approve the siting of the facility;
``(7) a State commission or other entity that has authority
to approve the siting of the facility--
``(A) did not issue a decision on an application seeking
approval for the siting of the facility within 1 year after
the date the applicant submitted a completed application to
the State;
``(B) denied a complete application seeking approval for
the siting of the facility; or
``(C) authorized the siting of the facility subject to
conditions that unreasonably interfere with the development
of the facility; and
``(8) the siting of the facility can be accomplished in a
manner consistent with the Federal policy established in
subsection (a) of section 216A and the national grid planning
principles adopted by the Commission pursuant to subsection
(b) of section 216A.
``(c) State Recommendations on Resource Protection.--In
issuing a final certificate of public convenience and
necessity pursuant to subsection (b), the Commission shall--
``(1) consider any siting constraints and mitigation
measures based on habitat protection, health and safety
considerations, environmental considerations, or cultural
site protection identified by relevant State or local
authorities; and
``(2) incorporate those identified siting constraints or
mitigation measures, including recommendations related to
project routing, as conditions in the final certificate of
public convenience and necessity, or if the Commission
determines that a recommended siting constraint or mitigation
measure is infeasible, excessively costly, or inconsistent
with the Federal policy established in subsection (a) of
section 216A or the national grid planning principles adopted
by the Commission pursuant to subsection (b) of section
216A--
``(A) consult with State regulatory agencies to seek to
resolve the issue;
``(B) incorporate as conditions on the certificate such
recommended siting constraints or mitigation measures as are
determined to be appropriate by the Commission, based on
consultation by the Commission with State regulatory
agencies, the Federal policy established in subsection (a) of
section 216A and the national grid planning principles
adopted by the Commission pursuant to subsection (b)of
section 216A, and the record before the Commission; and
``(C) if, after consultation, the Commission does not adopt
in whole or in part a recommendation of an agency, publish a
finding that the adoption of the recommendation is
infeasible, not cost effective, or inconsistent with this
section or other applicable provisions of law.
``(d) Certificate Applications.--(1) An application for a
preliminary or final certificate of public convenience and
necessity under this subsection shall be made in writing to
the Commission.
``(2) The Commission shall issue rules specifying--
``(A) the form of the application;
``(B) the information to be contained in the application;
and
``(C) the manner of service of notice of the application on
interested persons.
``(e) Coordination of Federal Authorizations for
Transmission Facilities.--
``(1) In this subsection, the term `Federal authorization'
shall have the same meaning and include the same actions as
in section 216(h).
``(2) The Federal Energy Regulatory Commission shall act as
the lead agency for purposes of coordinating all applicable
Federal authorizations and related environmental reviews of
the facility, provided, however, that to the extent the
facility is proposed to be sited on Federal lands, the
Department of the Interior will assume such lead-agency
duties as agreed between the Commission and the Department of
Interior.
``(3) To the maximum extent practicable under applicable
Federal law, the Commission, and to the extent agreed, the
Secretary of Interior, shall coordinate the Federal
authorization and review process under this subsection with
any Indian tribes, multistate entities, and State agencies
that are responsible for conducting any separate permitting
and environmental reviews of the facility, to ensure timely
and efficient review and permit decisions.
``(4)(A) As head of the lead agency, the Chairman of the
Commission, in consultation with the Secretary of Interior
and with those entities referred to in paragraph (3) that are
willing to coordinate their own separate permitting and
environmental reviews with the Federal authorization and
environmental reviews, shall establish prompt and binding
intermediate milestones and ultimate deadlines for the review
of, and Federal authorization decisions relating to, the
proposed facility.
``(B) The Chairman of the Commission, or the Secretary of
Interior, as agreed under paragraph (2), shall ensure that,
once an application has been submitted with such data as the
lead agency considers necessary, all permit decisions and
related environmental reviews under all applicable Federal
laws shall be completed--
``(i) within 1 year; or
``(ii) if a requirement of another provision of Federal law
does not permit compliance with clause (i), as soon
thereafter as is practicable.
``(C) The Commission shall provide an expeditious pre-
application mechanism for prospective applicants to confer
with the agencies involved to have each such agency determine
and communicate to the prospective applicant not later than
60 days after the prospective applicant submits a request for
such information concerning--
``(i) the likelihood of approval for a potential facility;
and
``(ii) key issues of concern to the agencies and public.
``(5)(A) As lead agency head, the Chairman of the
Commission, in consultation with the affected agencies, shall
prepare a single environmental review document, which shall
be used as the basis for all decisions on the proposed
project under Federal law.
``(B) The Chairman of the Commission and the heads of other
agencies shall streamline the review and permitting of
transmission within corridors designated under section 503 of
the Federal Land Policy and Management Act (43 U.S.C. 1763)
by fully taking into account prior analyses and decisions
relating to the corridors.
``(C) The document shall include consideration by the
relevant agencies of any applicable criteria or other matters
as required under applicable law.
``(6)(A) If any agency has denied a Federal authorization
required for a transmission facility, or has failed to act by
the deadline established by the Commission pursuant to this
section for deciding whether to issue the authorization, the
applicant or any State in which the facility would be located
may file an appeal with the President, who shall, in
consultation with the affected agency, review the denial or
failure to take action on the pending application.
``(B) Based on the overall record and in consultation with
the affected agency, the President may--
``(i) issue the necessary authorization with any
appropriate conditions; or
``(ii) deny the application.
``(C) The President shall issue a decision not later than
90 days after the date of the filing of the appeal.
``(D) In making a decision under this paragraph, the
President shall comply with applicable requirements of
Federal law, including any requirements of--
``(i) the National Forest Management Act of 1976 (16 U.S.C.
472a et seq.);
``(ii) the Endangered Species Act of 1973 (16 U.S.C. 1531
et seq.);
``(iii) the Federal Water Pollution Control Act (33 U.S.C.
1251 et seq.);
``(iv) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.); and
``(v) the Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701 et seq.).
``(7)(A) Not later than 18 months after August 8, 2005, the
Commission or, as requested, the Secretary or Interior, shall
issue any regulations necessary to implement this subsection.
``(B)(i) Not later than 1 year after August 8, 2005, the
Commission, the Secretary of Interior, and the heads of all
Federal agencies

[[Page H7492]]

with authority to issue Federal authorizations shall enter
into a memorandum of understanding to ensure the timely and
coordinated review and permitting of electricity transmission
facilities.
``(ii) Interested Indian tribes, multistate entities, and
State agencies may enter the memorandum of understanding.
``(C) The head of each Federal agency with authority to
issue a Federal authorization shall designate a senior
official responsible for, and dedicate sufficient other staff
and resources to ensure, full implementation of the
regulations and memorandum required under this paragraph.
``(8)(A) Each Federal land use authorization for an
electricity transmission facility shall be issued--
``(i) for a duration, as determined by the Secretary of
Interior, commensurate with the anticipated use of the
facility; and
``(ii) with appropriate authority to manage the right-of-
way for reliability and environmental protection.
``(B) On the expiration of the authorization (including an
authorization issued before August 8, 2005), the
authorization shall be reviewed for renewal taking fully into
account reliance on such electricity infrastructure,
recognizing the importance of the authorization for public
health, safety, and economic welfare and as a legitimate use
of Federal land.
``(9) In exercising the responsibilities under this
section, the Commission shall consult regularly with--
``(A) electric reliability organizations (including related
regional entities) approved by the Commission; and
``(B) Transmission Organizations approved by the
Commission.''.

SEC. 152. NET METERING FOR FEDERAL AGENCIES.

(a) Standard.--Subsection (b) of section 113 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2623) is
amended by adding the following new paragraph at the end
thereof:
``(6) Net metering for federal agencies.--Each electric
utility shall offer to arrange (either directly or through a
third party) to make interconnection and net metering
available to Federal Government agencies, offices, or
facilities in accordance with the requirements of section
115(j). The standard under this paragraph shall apply only to
electric utilities that sold over 4,000,000 megawatt hours of
electricity in the preceding year to the ultimate consumers
thereof. In the case of a standard under this paragraph, a
period of 1 year after the date of the enactment of this
section shall be substituted for the 2-year period referred
to in other provisions of this section.''.
(b) Special Rules.--Section 115 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended
by adding the following new subsection at the end thereof:
``(j) Net Metering for Federal Agencies.--(1) The standard
under paragraph (6) of section 113(b) shall require that
rates and charges and contract terms and conditions for the
sale of electric energy to the Federal Government or agency
shall be the same as the rates and charges and contract terms
and conditions that would be applicable if the agency did not
own or operate a qualified generation unit and use a net
metering system.
``(2)(A) The standard under paragraph (6) of section 113(b)
shall require that each electric utility shall arrange to
provide to the Government office or agency that qualifies for
net metering an electrical energy meter capable of net
metering and measuring, to the maximum extent practicable,
the flow of electricity to or from the customer, using a
single meter and single register, the cost of which shall be
recovered from the customer.
``(B) In a case in which it is not practicable to provide a
meter under subparagraph (A), the utility (either directly or
through a third party) shall, at the expense of the utility
install 1 or more of those electric energy meters.
``(3)(A) The standard under paragraph (6) of section 113(b)
shall require that each electric utility shall calculate the
electric energy consumption for the Government office or
agency using a net metering system that meets the
requirements of this subsection and paragraph (6) of section
113(b) and shall measure the net electricity produced or
consumed during the billing period using the metering
installed in accordance with this paragraph.
``(B) If the electricity supplied by the retail electric
supplier exceeds the electricity generated by the Government
office or agency during the billing period, the Government
office or agency shall be billed for the net electric energy
supplied by the retail electric supplier in accordance with
normal billing practices.
``(C) If electric energy generated by the Government office
or agency exceeds the electric energy supplied by the retail
electric supplier during the billing period, the Government
office or agency shall be billed for the appropriate customer
charges for that billing period and credited for the excess
electric energy generated during the billing period, with the
credit appearing as a kilowatt-hour credit on the bill for
the following billing period.
``(D) Any kilowatt-hour credits provided to the Government
office or agency as provided in this subsection shall be
applied to the Government office or agency electric energy
consumption on the following billing period bill (except for
a billing period that ends in the next calendar year). At the
beginning of each calendar year, any unused kilowatt-hour
credits remaining from the preceding year will carry over to
the new year.
``(4) The standard under paragraph (6) of section 113(b)
shall require that each electric utility shall offer a meter
and retail billing arrangement that has time-differentiated
rates. The kilowatt-hour credit shall be based on the ratio
representing the difference in retail rates for each time-of-
use rate, or the credits shall be reflected on the bill of
the Government office or agency as a monetary credit
reflecting retail rates at the time of generation of the
electric energy by the customer-generator.
``(5) The standard under paragraph (6) of section 113(b)
shall require that the qualified generation unit,
interconnection standards, and net metering system used by
the Government office or agency shall meet all applicable
safety and performance and reliability standards established
by the National Electrical Code, the Institute of Electrical
and Electronics Engineers, Underwriters Laboratories, and the
American National Standards Institute.
``(6) The standard under paragraph (6) of section 113(b)
shall require that electric utilities shall not make
additional charges, including standby charges, for equipment
or services for safety or performance that are in addition to
those necessary to meet the other standards and requirements
of this subsection and paragraph (6) of section 113(b).
``(7) For purposes of this subsection and paragraph (6) of
section 113(b):
``(A) The term `Government' means any office, facility, or
agency of the Federal Government.
``(B) The term `customer-generator' means the owner or
operator of a electricity generation unit.
``(C) The term `electric generation unit' means any
renewable electric generation unit that is owned, operated,
or sited on a Federal Government facility.
``(D) The term `net metering' means the process of--
``(i) measuring the difference between the electricity
supplied to a customer-generator and the electricity
generated by the customer-generator that is delivered to a
utility at the same point of interconnection during an
applicable billing period; and
``(ii) providing an energy credit to the customer-generator
in the form of a kilowatt-hour credit for each kilowatt-hour
of electricity produced by the customer-generator from an
electric generation unit.''.
(c) Savings Provision.--If this section or a portion of
this section is determined to be invalid or unenforceable,
that shall not affect the validity or enforceability of any
other provision of this Act.

SEC. 153. SUPPORT FOR QUALIFIED ADVANCED ELECTRIC
TRANSMISSION MANUFACTURING PLANTS, QUALIFIED
HIGH EFFICIENCY TRANSMISSION PROPERTY, AND
QUALIFIED ADVANCED ELECTRIC TRANSMISSION
PROPERTY.

(a) Loan Guarantees Prior to September 30, 2011.--Section
1705(a) of the Energy Policy Act of 2005 (42 U.S.C.
16515(a)), as added by section 406 of the American Recovery
and Reinvestment Act of 2009 (Public Law 109-58; 119 Stat.
594) is amended by adding the following new paragraph at the
end thereof:
``(5) The development, construction, acquisition,
retrofitting, or engineering integration of a qualified
advanced electric transmission manufacturing plant or the
construction of a qualified high efficiency transmission
property or a qualified advanced electric transmission
property (whether by construction of new facilities or the
modification of existing facilities). For purposes of this
paragraph:
``(A) The term `qualified advanced electric transmission
property' means any high voltage electric transmission cable,
related substation, converter station, or other integrated
facility that--
``(i) utilizes advanced ultra low resistance
superconductive material or other advanced technology that
has been determined by the Secretary of Energy as--

``(I) reasonably likely to become commercially viable
within 10 years after the date of enactment of this
paragraph;
``(II) capable of reliably transmitting at least 5
gigawatts of high-voltage electric energy for distances
greater than 300 miles with energy losses not exceeding 3
percent of the total power transported; and
``(III) not creating an electromagnetic field;

``(ii) has been determined by an appropriate energy
regulatory body, upon application, to be in the public
interest and thereby eligible for inclusion in regulated
rates; and
``(iii) can be located safely and economically in a
permanent underground right of way not to exceed 25 feet in
width.

The term `qualified advanced electric transmission property'
shall not include any property placed in service after
December 31, 2016.
``(B)(i) The term `qualified high efficiency transmission
property' means any high voltage overhead electric
transmission line, related substation, or other integrated
facility that--
``(I) utilizes advanced conductor core technology that--

``(aa) has been determined by the Secretary of Energy as
reasonably likely to become commercially viable within 10
years after the date of enactment of this paragraph;

[[Page H7493]]

``(bb) is suitable for use on transmission lines up to
765kV; and
``(cc) exhibits power losses at least 30 percent lower than
that of transmission lines using conventional `ACSR'
conductors;

``(II) has been determined by an appropriate energy
regulatory body, upon application, to be in the public
interest and thereby eligible for inclusion in regulated
rates; and
``(III) can be located safely and economically in a right
of way not to exceed that used by conventional `ACSR'
conductors; and
``(ii) The term `qualified high efficiency transmission
property' shall not include any property placed in service
after December 31, 2016.
``(C) The term `qualified advanced electric transmission
manufacturing plant' means any industrial facility located in
the United States which can be equipped, re-equipped,
expanded, or established to produce in whole or in part
qualified advanced electric transmission property.''.
(b) Additional Loan Guarantee Authority.--Section 1703 of
the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by
adding the following new paragraph at the end of subsection
(b):
``(12) The development, construction, acquisition,
retrofitting, or engineering integration of a qualified
advanced electric transmission manufacturing plant or the
construction of a qualified advanced electric transmission
property (whether by construction of new facilities or the
modification of existing facilities). For purposes of this
paragraph, the terms `qualified advanced electric
transmission property' and `qualified advanced electric
transmission manufacturing plant' have the meanings provided
by section 1705(a)(5).''.
(c) Grants.--The Secretary of Energy is authorized to
provide grants for up to 50 percent of costs incurred in
connection with the development, construction, acquisition of
components for, or engineering of a qualified advanced
electric transmission property defined in paragraph (5) of
section 1705(a) of the Energy Policy Act of 2005 (42 U.S.C.
16515(a)). Such grants may only be made to the first project
which qualifies under that paragraph. There are authorized to
be appropriated for purposes of this subsection not more than
$100,000,000 for fiscal year 2010. The United States shall
take no equity or other ownership interest in the qualified
advanced electric transmission manufacturing plant or
qualified advanced electric transmission property for which
funding is provided under this subsection.

Subtitle G--Technical Corrections to Energy Laws

SEC. 161. TECHNICAL CORRECTIONS TO ENERGY INDEPENDENCE AND
SECURITY ACT OF 2007.

(a) Title III--Energy Savings Through Improved Standards
for Appliance and Lighting.--(1) Section 325(u) of the Energy
Policy and Conservation Act (42 U.S.C. 6295(u)) (as amended
by section 301(c) of the Energy Independence and Security Act
of 2007 (121 Stat. 1550)) is amended--
(A) by redesignating paragraph (7) as paragraph (4); and
(B) in paragraph (4) (as so redesignated), by striking
``supplies is'' and inserting ``supply is''.
(2) Section 302 of the Energy Independence and Security Act
of 2007 (121 Stat. 1551)) is amended--
(A) in subsection (a), by striking ``end of the paragraph''
and inserting ``end of subparagraph (A)''; and
(B) in subsection (b), by striking ``6313(a)'' and
inserting ``6314(a)''.
(3) Section 343(a)(1) of the Energy Policy and Conservation
Act (42 U.S.C. 6313(a)(1)) (as amended by section 302(b) of
the Energy Independence and Security Act of 2007 (121 Stat.
1551)) is amended--
(A) by striking ``Test procedures'' and all that follows
through ``At least once'' and inserting ``Test procedures.--
At least once''; and
(B) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively (and by moving the margins of such
subparagraphs 2 ems to the left).
(4) Section 342(a)(6) of the Energy Policy and Conservation
Act (42 U.S.C. 6313(a)(6)) (as amended by section 305(b)(2)
of the Energy Independence and Security Act of 2007 (121
Stat. 1554)) is amended--
(A) in subparagraph (B)--
(i) by striking ``If the Secretary'' and inserting the
following:
``(i) In general.--If the Secretary'';
(ii) by striking ``clause (ii)(II)'' and inserting
``subparagraph (A)(ii)(II)'';
(iii) by striking ``clause (i)'' and inserting
``subparagraph (A)(i)''; and
(iv) by adding at the end the following:
``(ii) Factors.--In determining whether a standard is
economically justified for the purposes of subparagraph
(A)(ii)(II), the Secretary shall, after receiving views and
comments furnished with respect to the proposed standard,
determine whether the benefits of the standard exceed the
burden of the proposed standard by, to the maximum extent
practicable, considering--

``(I) the economic impact of the standard on the
manufacturers and on the consumers of the products subject to
the standard;
``(II) the savings in operating costs throughout the
estimated average life of the product in the type (or class)
compared to any increase in the price of, or in the initial
charges for, or maintenance expenses of, the products that
are likely to result from the imposition of the standard;
``(III) the total projected quantity of energy savings
likely to result directly from the imposition of the
standard;
``(IV) any lessening of the utility or the performance of
the products likely to result from the imposition of the
standard;
``(V) the impact of any lessening of competition, as
determined in writing by the Attorney General, that is likely
to result from the imposition of the standard;
``(VI) the need for national energy conservation; and
``(VII) other factors the Secretary considers relevant.

``(iii) Administration.--

``(I) Energy use and efficiency.--The Secretary may not
prescribe any amended standard under this paragraph that
increases the maximum allowable energy use, or decreases the
minimum required energy efficiency, of a covered product.
``(II) Unavailability.--

``(aa) In general.--The Secretary may not prescribe an
amended standard under this subparagraph if the Secretary
finds (and publishes the finding) that interested persons
have established by a preponderance of the evidence that a
standard is likely to result in the unavailability in the
United States in any product type (or class) of performance
characteristics (including reliability, features, sizes,
capacities, and volumes) that are substantially the same as
those generally available in the United States at the time of
the finding of the Secretary.
``(bb) Other types or classes.--The failure of some types
(or classes) to meet the criterion established under this
subclause shall not affect the determination of the Secretary
on whether to prescribe a standard for the other types or
classes.''; and
(B) in subparagraph (C)(iv), by striking ``An amendment
prescribed under this subsection'' and inserting
``Notwithstanding subparagraph (D), an amendment prescribed
under this subparagraph''.
(5) Section 342(a)(6)(B)(iii) of the Energy Policy and
Conservation Act (as added by section 306(c) of the Energy
Independence and Security Act of 2007) is transferred and
redesignated as clause (vi) of section 342(a)(6)(C) of the
Energy Policy and Conservation Act (as amended by section
305(b)(2) of the Energy Independence and Security Act of
2007).
(6) Section 340 of the Energy Policy and Conservation Act
(42 U.S.C. 6311) (as amended by sections 312(a)(2) and 314(a)
of the Energy Independence and Security Act of 2007 (121
Stat. 1564, 1569)) is amended by redesignating paragraphs
(22) and (23) (as added by section 314(a) of that Act) as
paragraphs (23) and (24), respectively.
(7) Section 345 of the Energy Policy and Conservation Act
(42 U.S.C. 6316) (as amended by section 312(e) of the Energy
Independence and Security Act of 2007 (121 Stat. 1567)) is
amended--
(A) by striking ``subparagraphs (B) through (G)'' each
place it appears and inserting ``subparagraphs (B), (C), (D),
(I), (J), and (K)'';
(B) by striking ``part A'' each place it appears and
inserting ``part B''; and
(C) in subsection (h)(3), by striking ``section 342(f)(3)''
and inserting ``section 342(f)(4)''.
(8) Section 340(13) of the Energy Policy and Conservation
Act (42 U.S.C. 6311(13)) (as amended by section 313(a) of the
Energy Independence and Security Act of 2007 (121 Stat.
1568)) is amended--
(A) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) In general.--The term `electric motor' means any
motor that is--
``(i) a general purpose T-frame, single-speed, foot-
mounting, polyphase squirrel-cage induction motor of the
National Electrical Manufacturers Association, Design A and
B, continuous rated, operating on 230/460 volts and constant
60 Hertz line power as defined in NEMA Standards Publication
MG1-1987; or
``(ii) a motor incorporating the design elements described
in clause (i), but is configured to incorporate one or more
of the following variations--

``(I) U-frame motor;
``(II) NEMA Design C motor;
``(III) close-coupled pump motor;
``(IV) footless motor;
``(V) vertical solid shaft normal thrust motor (as tested
in a horizontal configuration);
``(VI) 8-pole motor; or
``(VII) poly-phase motor with a voltage rating of not more
than 600 volts (other than 230 volts or 460 volts, or both,
or can be operated on 230 volts or 460 volts, or both).'';
and

(B) by redesignating subparagraphs (C) through (I) as
subparagraphs (B) through (H), respectively.
(9)(A) Section 342(b) of the Energy Policy and Conservation
Act (42 U.S.C. 6313(b)) is amended--
(i) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraph (3)'';
(ii) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4);
(iii) by inserting after paragraph (1) the following:
``(2) Standards effective beginning december 19, 2010.--
``(A) In general.--Except for definite purpose motors,
special purpose motors, and those motors exempted by the
Secretary under paragraph (3) and except as provided for in
subparagraphs (B), (C), and (D), each electric motor
manufactured with power ratings from 1 to 200 horsepower
(alone or as a component of another piece of equipment) on

[[Page H7494]]

or after December 19, 2010, shall have a nominal full load
efficiency of not less than the nominal full load efficiency
described in NEMA MG-1 (2006) Table 12-12.
``(B) Fire pump electric motors.--Except for those motors
exempted by the Secretary under paragraph (3), each fire pump
electric motor manufactured with power ratings from 1 to 200
horsepower (alone or as a component of another piece of
equipment) on or after December 19, 2010, shall have a
nominal full load efficiency that is not less than the
nominal full load efficiency described in NEMA MG-1 (2006)
Table 12-11.
``(C) NEMA design b electric motors.--Except for those
motors exempted by the Secretary under paragraph (3), each
NEMA Design B electric motor with power ratings of more than
200 horsepower, but not greater than 500 horsepower,
manufactured (alone or as a component of another piece of
equipment) on or after December 19, 2010, shall have a
nominal full load efficiency of not less than the nominal
full load efficiency described in NEMA MG-1 (2006) Table 12-
11.
``(D) Motors incorporating certain design elements.--Except
for those motors exempted by the Secretary under paragraph
(3), each electric motor described in section 340(13)(A)(ii)
manufactured with power ratings from 1 to 200 horsepower
(alone or as a component of another piece of equipment) on or
after December 19, 2010, shall have a nominal full load
efficiency of not less than the nominal full load efficiency
described in NEMA MG-1 (2006) Table 12-11.''; and
(iv) in paragraph (3) (as redesignated by clause (ii)), by
striking ``paragraph (1)'' each place it appears in
subparagraphs (A) and (D) and inserting ``paragraphs (1) and
(2)''.
(B) Section 313 of the Energy Independence and Security Act
of 2007 (121 Stat. 1568) is repealed.
(C) The amendments made by--
(i) subparagraph (A) shall take effect on December 19,
2010; and
(ii) subparagraph (B) shall take effect on December 19,
2007.
(10) Section 321(30)(D)(i)(III) of the Energy Policy and
Conservation Act (42 U.S.C. 6291(30)(D)(i)(III)) (as amended
by section 321(a)(1)(A) of the Energy Independence and
Security Act of 2007 (121 Stat. 1574)) is amended by
inserting before the semicolon the following: ``or, in the
case of a modified spectrum lamp, not less than 232 lumens
and not more than 1,950 lumens''.
(11) Section 321(30)(T) of the Energy Policy and
Conservation Act (42 U.S.C. 6291(30)(T) (as amended by
section 321(a)(1)(B) of the Energy Independence and Security
Act of 2007 (121 Stat. 1574)) is amended--
(A) in clause (i)--
(i) by striking the comma after ``household appliance'' and
inserting ``and''; and
(ii) by striking ``and is sold at retail,''; and
(B) in clause (ii), by inserting ``when sold at retail,''
before ``is designated''.
(12) Section 325 of the Energy Policy and Conservation Act
(42 U.S.C. 6295) (as amended by sections 321(a)(3)(A) and
322(b) of the Energy Independence and Security Act of 2007
(121 Stat. 1577, 1588)) is amended by striking subsection (i)
and inserting the following:
``(i) General Service Fluorescent Lamps, General Service
Incandescent Lamps, Intermediate Base Incandescent Lamps,
Candelabra Base Incandescent Lamps, and Incandescent
Reflector Lamps.--
``(1) Energy efficiency standards.--
``(A) In general.--Each of the following general service
fluorescent lamps, general service incandescent lamps,
intermediate base incandescent lamps, candelabra base
incandescent lamps, and incandescent reflector lamps
manufactured after the effective date specified in the tables
listed in this subparagraph shall meet or exceed the
following lamp efficacy, new maximum wattage, and CRI
standards:

``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Effective Date
Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
35 W              45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------

``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
Effective Date
Nominal Lamp Wattage         Minimum Average Lamp      (Period of
Efficacy (LPW)           Months)
------------------------------------------------------------------------
40-50.......................             10.5                  36
51-66.......................             11.0                  36
67-85.......................             12.5                  36
86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------

``GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Minimum
Rated Lumen Ranges                            Maximum Rated        Rated       Effective
Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1490-2600                                                                        72     1,000 hrs      1/1/2012
1050-1489                                                                        53     1,000 hrs      1/1/2013
750-1049                                                                         43     1,000 hrs      1/1/2014
310-749                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------

``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Minimum
Rated Lumen Ranges                            Maximum Rated        Rated       Effective
Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1118-1950                                                                        72     1,000 hrs      1/1/2012
788-1117                                                                         53     1,000 hrs      1/1/2013
563-787                                                                          43     1,000 hrs      1/1/2014
232-562                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------

``(B) Application.--
``(i) Application criteria.--This subparagraph applies to
each lamp that--

``(I) is intended for a general service or general
illumination application (whether incandescent or not);
``(II) has a medium screw base or any other screw base not
defined in ANSI C81.61-2006;

[[Page H7495]]

``(III) is capable of being operated at a voltage at least
partially within the range of 110 to 130 volts; and
``(IV) is manufactured or imported after December 31, 2011.

``(ii) Requirement.--For purposes of this paragraph, each
lamp described in clause (i) shall have a color rendering
index that is greater than or equal to--

``(I) 80 for nonmodified spectrum lamps; or
``(II) 75 for modified spectrum lamps.

``(C) Candelabra incandescent lamps and intermediate base
incandescent lamps.--
``(i) Candelabra base incandescent lamps.--Effective
beginning January 1, 2012, a candelabra base incandescent
lamp shall not exceed 60 rated watts.
``(ii) Intermediate base incandescent lamps.--Effective
beginning January 1, 2012, an intermediate base incandescent
lamp shall not exceed 40 rated watts.
``(D) Exemptions.--
``(i) Statutory exemptions.--The standards specified in
subparagraph (A) shall not apply to the following types of
incandescent reflector lamps:

``(I) Lamps rated at 50 watts or less that are ER30, BR30,
BR40, or ER40 lamps.
``(II) Lamps rated at 65 watts that are BR30, BR40, or ER40
lamps.
``(III) R20 incandescent reflector lamps rated 45 watts or
less.

``(ii) Administrative exemptions.--

``(I) Petition.--Any person may petition the Secretary for
an exemption for a type of general service lamp from the
requirements of this subsection.
``(II) Criteria.--The Secretary may grant an exemption
under subclause (I) only to the extent that the Secretary
finds, after a hearing and opportunity for public comment,
that it is not technically feasible to serve a specialized
lighting application (such as a military, medical, public
safety, or certified historic lighting application) using a
lamp that meets the requirements of this subsection.
``(III) Additional criterion.--To grant an exemption for a
product under this clause, the Secretary shall include, as an
additional criterion, that the exempted product is unlikely
to be used in a general service lighting application.

``(E) Extension of coverage.--
``(i) Petition.--Any person may petition the Secretary to
establish standards for lamp shapes or bases that are
excluded from the definition of general service lamps.
``(ii) Increased sales of exempted lamps.--The petition
shall include evidence that the availability or sales of
exempted incandescent lamps have increased significantly
since the date on which the standards on general service
incandescent lamps were established.
``(iii) Criteria.--The Secretary shall grant a petition
under clause (i) if the Secretary finds that--

``(I) the petition presents evidence that demonstrates that
commercial availability or sales of exempted incandescent
lamp types have increased significantly since the standards
on general service lamps were established and likely are
being widely used in general lighting applications; and
``(II) significant energy savings could be achieved by
covering exempted products, as determined by the Secretary
based in part on sales data provided to the Secretary from
manufacturers and importers.

``(iv) No presumption.--The grant of a petition under this
subparagraph shall create no presumption with respect to the
determination of the Secretary with respect to any criteria
under a rulemaking conducted under this section.
``(v) Expedited proceeding.--If the Secretary grants a
petition for a lamp shape or base under this subparagraph,
the Secretary shall--

``(I) conduct a rulemaking to determine standards for the
exempted lamp shape or base; and
``(II) complete the rulemaking not later than 18 months
after the date on which notice is provided granting the
petition.

``(F) Effective dates.--
``(i) In general.--In this paragraph, except as otherwise
provided in a table contained in subparagraph (A) or in
clause (ii), the term `effective date' means the last day of
the month specified in the table that follows October 24,
1992.
``(ii) Special effective dates.--

``(I) ER, br, and bpar lamps.--The standards specified in
subparagraph (A) shall apply with respect to ER incandescent
reflector lamps, BR incandescent reflector lamps, BPAR
incandescent reflector lamps, and similar bulb shapes on and
after January 1, 2008, or the date that is 180 days after the
date of enactment of the Energy Independence and Security Act
of 2007.
``(II) Lamps between 2.25-2.75 inches in diameter.--The
standards specified in subparagraph (A) shall apply with
respect to incandescent reflector lamps with a diameter of
more than 2.25 inches, but not more than 2.75 inches, on and
after the later of January 1, 2008, or the date that is 180
days after the date of enactment of the Energy Independence
and Security Act of 2007.

``(2) Compliance with existing law.--Notwithstanding
section 332(a)(5) and section 332(b), it shall not be
unlawful for a manufacturer to sell a lamp that is in
compliance with the law at the time the lamp was
manufactured.
``(3) Rulemaking before october 24, 1995.--
``(A) In general.--Not later than 36 months after October
24, 1992, the Secretary shall initiate a rulemaking procedure
and shall publish a final rule not later than the end of the
54-month period beginning on October 24, 1992, to determine
whether the standards established under paragraph (1) should
be amended.
``(B) Administration.--The rule shall contain the
amendment, if any, and provide that the amendment shall apply
to products manufactured on or after the 36-month period
beginning on the date on which the final rule is published.
``(4) Rulemaking before october 24, 2000.--
``(A) In general.--Not later than 8 years after October 24,
1992, the Secretary shall initiate a rulemaking procedure and
shall publish a final rule not later than 9 years and 6
months after October 24, 1992, to determine whether the
standards in effect for fluorescent lamps and incandescent
lamps should be amended.
``(B) Administration.--The rule shall contain the
amendment, if any, and provide that the amendment shall apply
to products manufactured on or after the 36-month period
beginning on the date on which the final rule is published.
``(5) Rulemaking for additional general service fluorescent
lamps.--
``(A) In general.--Not later than the end of the 24-month
period beginning on the date labeling requirements under
section 324(a)(2)(C) become effective, the Secretary shall--
``(i) initiate a rulemaking procedure to determine whether
the standards in effect for fluorescent lamps and
incandescent lamps should be amended so that the standards
would be applicable to additional general service fluorescent
lamps; and
``(ii) publish, not later than 18 months after initiating
the rulemaking, a final rule including the amended standards,
if any.
``(B) Administration.--The rule shall provide that the
amendment shall apply to products manufactured after a date
which is 36 months after the date on which the rule is
published.
``(6) Standards for general service lamps.--
``(A) Rulemaking before january 1, 2014.--
``(i) In general.--Not later than January 1, 2014, the
Secretary shall initiate a rulemaking procedure to determine
whether--

``(I) standards in effect for general service lamps should
be amended; and
``(II) the exclusions for certain incandescent lamps should
be maintained or discontinued based, in part, on excluded
lamp sales collected by the Secretary from manufacturers.

``(ii) Scope.--The rulemaking--

``(I) shall not be limited to incandescent lamp
technologies; and
``(II) shall include consideration of a minimum standard of
45 lumens per watt for general service lamps.

``(iii) Amended standards.--If the Secretary determines
that the standards in effect for general service lamps should
be amended, the Secretary shall publish a final rule not
later than January 1, 2017, with an effective date that is
not earlier than 3 years after the date on which the final
rule is published.
``(iv) Phased-in effective dates.--The Secretary shall
consider phased-in effective dates under this subparagraph
after considering--

``(I) the impact of any amendment on manufacturers,
retiring and repurposing existing equipment, stranded
investments, labor contracts, workers, and raw materials; and
``(II) the time needed to work with retailers and lighting
designers to revise sales and marketing strategies.

``(v) Backstop requirement.--If the Secretary fails to
complete a rulemaking in accordance with clauses (i) through
(iv) or if the final rule does not produce savings that are
greater than or equal to the savings from a minimum efficacy
standard of 45 lumens per watt, effective beginning January
1, 2020, the Secretary shall prohibit the manufacture of any
general service lamp that does not meet a minimum efficacy
standard of 45 lumens per watt.
``(vi) State preemption.--Neither section 327(c) nor any
other provision of law shall preclude California or Nevada
from adopting, effective beginning on or after January 1,
2018--

``(I) a final rule adopted by the Secretary in accordance
with clauses (i) through (iv);
``(II) if a final rule described in subclause (I) has not
been adopted, the backstop requirement under clause (v); or
``(III) in the case of California, if a final rule
described in subclause (I) has not been adopted, any
California regulations relating to these covered products
adopted pursuant to State statute in effect as of the date of
enactment of the Energy Independence and Security Act of
2007.

``(B) Rulemaking before january 1, 2020.--
``(i) In general.--Not later than January 1, 2020, the
Secretary shall initiate a rulemaking procedure to determine
whether--

``(I) standards in effect for general service lamps should
be amended; and
``(II) the exclusions for certain incandescent lamps should
be maintained or discontinued based, in part, on excluded
lamp sales data collected by the Secretary from
manufacturers.

``(ii) Scope.--The rulemaking shall not be limited to
incandescent lamp technologies.
``(iii) Amended standards.--If the Secretary determines
that the standards in effect for general service lamps should
be amended, the Secretary shall publish a final rule not
later than January 1, 2022, with an effective date that is
not earlier than 3 years

[[Page H7496]]

after the date on which the final rule is published.
``(iv) Phased-in effective dates.--The Secretary shall
consider phased-in effective dates under this subparagraph
after considering--

``(I) the impact of any amendment on manufacturers,
retiring and repurposing existing equipment, stranded
investments, labor contracts, workers, and raw materials; and
``(II) the time needed to work with retailers and lighting
designers to revise sales and marketing strategies.

``(7) Federal actions.--
``(A) Comments of secretary.--
``(i) In general.--With respect to any lamp to which
standards are applicable under this subsection or any lamp
specified in section 346, the Secretary shall inform any
Federal entity proposing actions that would adversely impact
the energy consumption or energy efficiency of the lamp of
the energy conservation consequences of the action.
``(ii) Consideration.--The Federal entity shall carefully
consider the comments of the Secretary.
``(B) Amendment of standards.--Notwithstanding section
325(n)(1), the Secretary shall not be prohibited from
amending any standard, by rule, to permit increased energy
use or to decrease the minimum required energy efficiency of
any lamp to which standards are applicable under this
subsection if the action is warranted as a result of other
Federal action (including restrictions on materials or
processes) that would have the effect of either increasing
the energy use or decreasing the energy efficiency of the
product.
``(8) Compliance.--
``(A) In general.--Not later than the date on which
standards established pursuant to this subsection become
effective, or, with respect to high-intensity discharge lamps
covered under section 346, the effective date of standards
established pursuant to that section, each manufacturer of a
product to which the standards are applicable shall file with
the Secretary a laboratory report certifying compliance with
the applicable standard for each lamp type.
``(B) Contents.--The report shall include the lumen output
and wattage consumption for each lamp type as an average of
measurements taken over the preceding 12-month period.
``(C) Other lamp types.--With respect to lamp types that
are not manufactured during the 12-month period preceding the
date on which the standards become effective, the report
shall--
``(i) be filed with the Secretary not later than the date
that is 12 months after the date on which manufacturing is
commenced; and
``(ii) include the lumen output and wattage consumption for
each such lamp type as an average of measurements taken
during the 12-month period.''.
(13) Section 325(l)(4)(A) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(l)(4)(A)) (as amended by
section 321(a)(3)(B) of the Energy Independence and Security
Act of 2007 (121 Stat. 1581)) is amended by striking
``only''.
(14) Section 327(b)(1)(B) of the Energy Policy and
Conservation Act (42 U.S.C. 6297(b)(1)(B)) (as amended by
section 321(d)(3) of the Energy Independence and Security Act
of 2007 (121 Stat. 1585)) is amended--
(A) in clause (i), by inserting ``and'' after the semicolon
at the end;
(B) in clause (ii), by striking ``; and'' and inserting a
period; and
(C) by striking clause (iii).
(15) Section 321(e) of the Energy Independence and Security
Act of 2007 (121 Stat. 1586) is amended--
(A) in the matter preceding paragraph (1), by striking ``is
amended'' and inserting ``(as amended by section 306(b)) is
amended''; and
(B) by striking paragraphs (1) and (2) and inserting the
following:
``(1) in paragraph (5), by striking `or' after the
semicolon at the end;
``(2) in paragraph (6), by striking the period at the end
and inserting `; or'; and''.
(16) Section 332(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6302(a)) (as amended by section 321(e) of the
Energy Independence and Security Act of 2007 (121 Stat.
1586)) is amended by redesignating the second paragraph (6)
as paragraph (7).
(17) Section 321(30)(C)(ii) of the Energy Policy and
Conservation Act (42 U.S.C. 6291(30)(C)(ii)) (as amended by
section 322(a)(1)(B) of the Energy Independence and Security
Act of 2007 (121 Stat. 1587)) is amended by inserting a
period after ``40 watts or higher''.
(18) Section 322(b) of the Energy Independence and Security
Act of 2007 (121 Stat. 1588)) is amended by striking
``6995(i)'' and inserting ``6295(i)''.
(19) Section 327(c) of the Energy Policy and Conservation
Act (42 U.S.C. 6297(c)) (as amended by sections 324(f) of the
Energy Independence and Security Act of 2007 (121 Stat.
1594)) is amended--
(A) in paragraph (6), by striking ``or'' after the
semicolon at the end;
(B) in paragraph (8)(B), by striking ``and'' after the
semicolon at the end;
(C) in paragraph (9)--
(i) by striking ``except that--'' and all that follows
through ``if the Secretary fails to issue'' and inserting
``except that if the Secretary fails to issue'';
(ii) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively (and by moving the margins of such
subparagraphs 2 ems to the left); and
(iii) by striking the period at the end and inserting a
semicolon; and
(D) by adding at the end the following:
``(10) is a regulation for general service lamps that
conforms with Federal standards and effective dates;
``(11) is an energy efficiency standard for general service
lamps enacted into law by the State of Nevada prior to
December 19, 2007, if the State has not adopted the Federal
standards and effective dates pursuant to subsection
(b)(1)(B)(ii); or''.
(20) Section 325(b) of the Energy Independence and Security
Act of 2007 (121 Stat. 1596)) is amended by striking
``6924(c)'' and inserting ``6294(c)''.
(b) Title IV--Energy Savings in Buildings and Industry.--
(1) Section 401 of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17061) is amended--
(A) in paragraph (2), by striking ``484'' and inserting
``494''; and
(B) in paragraph (13), by striking ``Agency'' and inserting
``Administration''.
(2) Section 422 of the Energy Conservation and Production
Act (42 U.S.C. 6872) (as amended by section 411(a) of the
Energy Independence and Security Act of 2007 (121 Stat.
1600)) is amended by striking 1 of the 2 periods at the end
of paragraph (5).
(3) Section 305(a)(3)(D)(i) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D)(i)) (as amended by
section 433(a) of the Energy Independence and Security Act of
2007 (121 Stat. 1612)) is amended--
(A) in subclause (I)--
(i) by striking ``in fiscal year 2003 (as measured by
Commercial Buildings Energy Consumption Survey or Residential
Energy Consumption Survey data from the Energy Information
Agency'' and inserting ``as measured by the calendar year
2003 Commercial Buildings Energy Consumption Survey or the
calendar year 2005 Residential Energy Consumption Survey data
from the Energy Information Administration''; and
(ii) in the table at the end, by striking ``Fiscal Year''
and inserting ``Calendar Year''; and
(B) in subclause (II)--
(i) by striking ``(II) Upon petition'' and inserting the
following:

``(II) Downward adjustment of numeric requirement.--

``(aa) In general.--On petition''; and
(ii) by striking the last sentence and inserting the
following:
``(bb) Exceptions to requirement for concurrence of
secretary.--
``(AA) In general.--The requirement to petition and
obtain the concurrence of the Secretary under this subclause
shall not apply to any Federal building with respect to which
the Administrator of General Services is required to transmit
a prospectus to Congress under section 3307 of title 40,
United States Code, or to any other Federal building
designed, constructed, or renovated by the Administrator if
the Administrator certifies, in writing, that meeting the
applicable numeric requirement under subclause (I) with
respect to the Federal building would be technically
impracticable in light of the specific functional needs for
the building.
``(BB) Adjustment.--In the case of a building described
in subitem (AA), the Administrator may adjust the applicable
numeric requirement of subclause (I) downward with respect to
the building.''.
(4) Section 436(c)(3) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17092(c)(3)) is amended by
striking ``474'' and inserting ``494''.
(5) Section 440 of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17096) is amended by striking ``and 482''.
(6) Section 373(c) of the Energy Policy and Conservation
Act (42 U.S.C. 6343(c)) (as amended by section 451(a) of the
Energy Independence and Security Act of 2007 (121 Stat.
1628)) is amended by striking ``Administrator'' and inserting
``Secretary''.
(c) Date of Enactment.--Section 1302 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17382) is
amended in the first sentence by striking ``enactment'' and
inserting ``the date of enactment of this Act''.
(d) Reference.--Section 1306(c)(3) of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17386(c)(3))
is amended by striking ``section 1307 (paragraph (17) of
section 111(d) of the Public Utility Regulatory Policies Act
of 1978)'' and inserting ``paragraph (19) of section 111(d)
of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2621(d))''.
(e) Effective Date.--This section and the amendments made
by this section take effect as if included in the Energy
Independence and Security Act of 2007 (Public Law 110-140;
121 Stat. 1492).

SEC. 162. TECHNICAL CORRECTIONS TO ENERGY POLICY ACT OF 2005.

(a) Title I--Energy Efficiency.--Section 325(g)(8)(C)(ii)
of the Energy Policy and Conservation Act (42 U.S.C.
6295(g)(8)(C)(ii)) (as added by section 135(c)(2)(B) of the
Energy Policy Act of 2005) is amended by striking ``20F''
and inserting ``-20F''.
(b) Effective Date.--This section and the amendments made
by this section take effect as if included in the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 594).

Subtitle H--Energy and Efficiency Centers and Research

SEC. 171. ENERGY INNOVATION HUBS.

(a) Purpose.--The Secretary shall carry out a program to
establish Energy Innovation Hubs to enhance the Nation's
economic, environmental, and energy security by promoting
commercial application of clean, indigenous energy
alternatives to oil and other

[[Page H7497]]

fossil fuels, reducing greenhouse gas emissions, and ensuring
that the United States maintains a technological lead in the
development and commercial application of state-of-the-art
energy technologies. To achieve these purposes the program
shall--
(1) leverage the expertise and resources of the university
and private research communities, industry, venture capital,
national laboratories, and other participants in energy
innovation to support cross-disciplinary research and
development in areas not being served by the private sector
in order to develop and transfer innovative clean energy
technologies into the marketplace;
(2) expand the knowledge base and human capital necessary
to transition to a low-carbon economy; and
(3) promote regional economic development by cultivating
clusters of clean energy technology firms, private research
organizations, suppliers, and other complementary groups and
businesses.
(b) Definitions.--For purposes of this section:
(1) Allowance.--The term ``allowance'' means an emission
allowance established under section 721 of the Clean Air Act
(as added by section 311 of this Act).
(2) Clean energy technology.--The term ``clean energy
technology'' means a technology that--
(A) produces energy from solar, wind, geothermal, biomass,
tidal, wave, ocean, and other renewable energy resources (as
such term is defined in section 610 of the Public Utility
Regulatory Policies Act of 1978);
(B) more efficiently transmits, distributes, or stores
energy;
(C) enhances energy efficiency for buildings and industry,
including combined heat and power;
(D) enables the development of a Smart Grid (as described
in section 1301 of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17381)), including integration of
renewable energy resources and distributed generation, demand
response, demand side management, and systems analysis;
(E) produces an advanced or sustainable material with
energy or energy efficiency applications;
(F) enhances water security through improved water
management, conservation, distribution, and end use
applications; or
(G) improves energy efficiency for transportation,
including electric vehicles.
(3) Cluster.--The term ``cluster'' means a network of
entities directly involved in the research, development,
finance, and commercialization of clean energy technologies
whose geographic proximity facilitates utilization and
sharing of skilled human resources, infrastructure, research
facilities, educational and training institutions, venture
capital, and input suppliers.
(4) Hub.--The term ``Hub'' means an Energy Innovation Hub
established in accordance with this section.
(5) Project.--The term ``project'' means an activity with
respect to which a Hub provides support under subsection (e).
(6) Qualifying entity.--The term ``qualifying entity''
means each of the following:
(A) A research university.
(B) A State or Federal institution with a focus on the
advancement of clean energy technologies.
(C) A nongovernmental organization with research or
commercialization expertise in clean energy technology
development.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(8) Technology development focus.--The term ``technology
development focus'' means the unique technology development
areas in which a Hub will specialize, and may include solar
electricity, fuels from solar energy, batteries and energy
storage, electricity grid systems and devices, energy
efficient building systems and design, advanced materials,
modeling and simulation, and other clean energy technology
development areas designated by the Secretary.
(9) Translational research.--The term ``translational
research'' means coordination of basic or applied research
with technical and commercial applications to enable
promising discoveries or inventions to attract investment
sufficient for market penetration and diffusion.
(10) Vintage year.--The term ``vintage year'' has the
meaning given that term in section 700 of the Clean Air Act
(as added by section 312 of this Act).
(c) Role of the Secretary.--The Secretary shall--
(1) have ultimate responsibility for, and oversight of, all
aspects of the program under this section;
(2) provide for the distribution of allowances allocated
under section 782(h)(1) of the Clean Air Act (as added by
section 321 of this Act) to support the establishment of 8
Hubs, each with a unique designated technology development
focus, pursuant to this section;
(3) coordinate the innovation activities of Hubs with those
occurring through other Department of Energy entities,
including the National Laboratories, the Advanced Research
Projects Agency--Energy, and Energy Frontier Research
Collaborations, and within industry, including by annually--
(A) issuing guidance regarding national energy research and
development priorities and strategic objectives; and
(B) convening a conference of staff of the Department of
Energy and representatives from such other entities to share
research results, program plans, and opportunities for
collaboration.
(d) Entities Eligible for Support.--A consortium shall be
eligible to receive allowances to support the establishment
of a Hub under this section if--
(1) it is composed of--
(A) 2 research universities with a combined annual research
budget of $500,000,000; and
(B) 1 or more additional qualifying entities;
(2) its members have established a binding agreement that
documents--
(A) the structure of the partnership agreement;
(B) a governance and management structure to enable cost-
effective implementation of the program;
(C) an intellectual property management policy;
(D) a conflicts of interest policy consistent with
subsection (e)(4);
(E) an accounting structure that meets the requirements of
the Department of Energy and can be audited under subsection
(f)(5); and
(F) that it has an Advisory Board consistent with
subsection (e)(3);
(3) it receives financial contributions from States,
consortium participants, or other non-Federal sources, to be
used to support project awards pursuant to subsection (e);
(4) it is part of an existing cluster or demonstrates high
potential to develop a new cluster; and
(5) it operates as a nonprofit organization.
(e) Energy Innovation Hubs.--
(1) Role.--Hubs receiving allowances under this section
shall support translational research activities leading to
commercial application of clean energy technologies, in
accordance with the purposes of this section, through
issuance of awards to projects managed by qualifying entities
and other entities meeting the Hub's project criteria,
including national laboratories. Each such Hub shall--
(A) develop and publish for public review and comment
proposed plans, programs, project selection criteria, and
terms for individual project awards under this subsection;
(B) submit an annual report to the Secretary summarizing
the Hub's activities, organizational expenditures, and Board
members, which shall include a certification of compliance
with conflict of interest policies and a description of each
project in the research portfolio;
(C) establish policies--
(i) regarding intellectual property developed as a result
of Hub awards and other forms of technology support that
encourage individual ingenuity and invention while speeding
technology transfer and facilitating the establishment of
rapid commercialization pathways;
(ii) to prevent resources provided to the Hub from being
used to displace private sector investment otherwise likely
to occur, including investment from private sector entities
that are members of the consortium;
(iii) to facilitate the participation of private investment
firms or other private entities that invest in clean energy
technologies to perform due diligence on award proposals, to
participate in the award review process, and to provide
guidance to projects supported by the Hub; and
(iv) to facilitate the participation of entrepreneurs with
a demonstrated history of developing and commercializing
clean energy technologies;
(D) oversee project solicitations, review proposed
projects, and select projects for awards; and
(E) monitor project implementation.
(2) Distribution of awards by hubs.--A Hub shall distribute
awards under this subsection to support clean energy
technology projects conducting translational research and
related activities, provided that at least 50 percent of such
support shall be provided to projects related to the Hub's
technology development focus.
(3) Advisory boards.--
(A) In general.--Each Hub shall establish an Advisory
Board, the members of which shall have extensive and relevant
scientific, technical, industry, financial, or research
management expertise. The Advisory Board shall review the
Hub's proposed plans, programs, project selection criteria,
and projects and shall ensure that projects selected for
awards meet the conflict of interest policies of the Hub.
Advisory Board members other than those representing
consortium members shall serve for no more than 3 years. All
Advisory Board members shall comply with the Hub's conflict
of interest policies and procedures.
(B) Members.--Each Advisory Board shall consist of--
(i) 5 members selected by the consortium's research
universities;
(ii) 2 members selected by the consortium's other
qualifying entities;
(iii) 2 members selected at large by other Advisory Board
members to represent the entrepreneur and venture capital
communities; and
(iv) 1 member appointed by the Secretary.
(D) Compensation.--Members of an Advisory Board may receive
reimbursement for travel expenses and a reasonable stipend.
(4) Conflict of interest.--
(A) Procedures.--Hubs shall establish procedures to ensure
that any employee or consortia designee for Hub activities
who serves in a decisionmaking capacity shall--
(i) disclose any financial interests in, or financial
relationships with, applicants for or recipients of awards
under this subsection, including those of his or her spouse
or minor child, unless such relationships or interests

[[Page H7498]]

would be considered to be remote or inconsequential; and
(ii) recuse himself or herself from any funding decision
for projects in which he or she has a personal financial
interest.
(B) Disqualification and revocation.--The Secretary may
disqualify an application or revoke allowances distributed to
the Hub or awards provided under this subsection, if
cognizant officials of the Hub fail to comply with procedures
required under subparagraph (A).
(f) Distribution of Allowances to Energy Innovation Hubs.--
(1) Distribution of allowances.--Not later than September
30 of 2011 and each calendar year thereafter through 2049,
the Secretary shall, in accordance with the requirements of
this section, distribute to eligible consortia allowances
allocated for the following vintage year under section
782(h)(1) of the Clean Air Act (as added by section 321 of
this Act). Not less than 10 percent and not more than 30
percent of the allowances available for distribution in any
given year shall be distributed to support any individual Hub
under this section.
(2) Selection and schedule.--Allowances to support the
establishment of a Hub shall be distributed to eligible
consortia (as defined in subsection (d)) selected through a
competitive process. Not later than 120 days after the date
of enactment of this Act, the Secretary shall solicit
proposals from eligible consortia to establish Hubs, which
shall be submitted not later than 180 days after the date of
enactment of this Act. The Secretary shall select the program
consortia not later than 270 days after the date of enactment
of this Act. For at least 3 awards to consortia under this
section, the Secretary shall give special consideration to
applications in which 1 or more of the institutions under
subsection (d)(1)(A) are 1890 Land Grant Institutions (as
defined in section 2 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7061)),
Predominantly Black Institutions (as defined in section 318
of the Higher Education Act of 1965 (20 U.S.C. 1059e)),
Tribal Colleges or Universities (as defined in section 316(b)
of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)), or
Hispanic Serving Institutions (as defined in section 318 of
the Higher Education Act of 1965 (20 U.S.C. 1059e)).
(3) Amount and term of awards.--For each Hub selected to
receive an award under this subsection, the Secretary shall
define a quantity of allowances that shall be distributed to
such Hub each year for an initial period not to exceed 5
years. The Secretary may extend the term of such award by up
to 5 additional years, and a Hub may compete to receive an
increase in the quantity of allowances per year that it shall
receive during any such extension. A Hub shall be eligible to
compete for a new award after the expiration of the term of
any award, including any extension of such term, under this
subsection.
(4) Use of allowances.--Allowances distributed under this
section shall be used exclusively to support project awards
pursuant to subsection (e)(1) and (2), provided that a Hub
may use not more than 10 percent of the value of such
allowances for its administrative expenses related to making
such awards. Allowances distributed under this section shall
not be used for construction of new buildings or facilities
for Hubs, and construction of new buildings or facilities
shall not be considered as part of the non-Federal share of a
cost sharing agreement under this section.
(5) Audit.--Each Hub shall conduct, in accordance with such
requirements as the Secretary may prescribe, an annual audit
to determine the extent to which allowances distributed to
the Hub under this subsection, and awards under subsection
(e), have been utilized in a manner consistent with this
section. The auditor shall transmit a report of the results
of the audit to the Secretary and to the Government
Accountability Office. The Secretary shall include such
report in an annual report to Congress, along with a plan to
remedy any deficiencies cited in the report. The Government
Accountability Office may review such audits as appropriate
and shall have full access to the books, records, and
personnel of the Hub to ensure that allowances distributed to
the Hub under this subsection, and awards made under
subsection (e), have been utilized in a manner consistent
with this section.
(6) Revocation of allowances.--The Secretary shall have
authority to review awards made under this subsection and to
revoke such awards if the Secretary determines that a Hub has
used the award in a manner not consistent with the
requirements of this section.

SEC. 172. ADVANCED ENERGY RESEARCH.

(a) Definitions.--For purposes of this section:
(1) Allowance.--The term ``allowance'' means an emission
allowance established under section 721 of the Clean Air Act
(as added by section 311 of this Act).
(2) Director.--The term ``Director'' means Director of the
Advanced Research Projects Agency-Energy.
(b) In General.--Not later than September 30 of 2011 and
each calendar year thereafter through 2049, the Director
shall distribute allowances allocated for the following
vintage year under section 782(h)(2) of the Clean Air Act (as
added by section 321 of this Act). Such allowances shall be
distributed on a competitive basis to institutions of higher
education, companies, research foundations, trade and
industry research collaborations, or consortia of such
entities, or other appropriate research and development
entities to achieve the goals of the Advanced Research
Projects Agency-Energy (as described in section 5012(c) of
the America COMPETES Act) through targeted acceleration of--
(1) novel early-stage energy research with possible
technology applications;
(2) development of techniques, processes, and technologies,
and related testing and evaluation;
(3) development of manufacturing processes for
technologies; and
(4) demonstration and coordination with nongovernmental
entities for commercial applications of technologies and
research applications.
(c) Responsibilities.--The Director shall be responsible
for assessing the success of programs and terminating
programs carried out under this section that are not
achieving the goals of the programs, consistent with
5012(e)(2) and (4) of the America COMPETES Act. The Director
shall designate program managers whose responsibilities are
consistent with 5012(f)(1)(B) of the America COMPETES Act.
The Director's reporting and coordination requirements
established through 5012(g) and (h) of the America COMPETES
Act shall apply to activities funded through this section.
(d) Supplement Not Supplant.--Assistance provided under
this section shall be used to supplement, and not to
supplant, any other Federal resources available to carry out
activities described in this section.

SEC. 173. BUILDING ASSESSMENT CENTERS.

(a) In General.--The Secretary of Energy (in this section
referred to as the ``Secretary'') shall provide funding to
institutions of higher education for Building Assessment
Centers to--
(1) identify opportunities for optimizing energy efficiency
and environmental performance in existing buildings;
(2) promote high-efficiency building construction
techniques and materials options;
(3) promote applications of emerging concepts and
technologies in commercial and institutional buildings;
(4) train engineers, architects, building scientists, and
building technicians in energy-efficient design and
operation;
(5) assist local community colleges, trade schools,
registered apprenticeship programs and other accredited
training programs in training building technicians;
(6) promote research and development for the use of
alternative energy sources to supply heat and power, for
buildings, particularly energy-intensive buildings; and
(7) coordinate with and assist State-accredited technical
training centers and community colleges, while ensuring
appropriate services to all regions of the United States.
(b) Coordination With Regional Centers for Energy and
Environmental Knowledge and Outreach.--A Building Assessment
Center may serve as a Center for Energy and Environmental
Knowledge and Outreach established pursuant to section 174.
(c) Coordination and Duplication.--The Secretary shall
coordinate efforts under this section with other programs of
the Department of Energy and other Federal agencies to avoid
duplication of effort.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$50,000,000 for fiscal year 2010 and each fiscal year
thereafter.

SEC. 174. CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND
OUTREACH.

(a) Regional Centers for Energy and Environmental Knowledge
and Outreach.--
(1) Establishment.--The Secretary shall establish not more
than 10 regional Centers for Energy and Environmental
Knowledge and Outreach at institutions of higher education to
coordinate with and advise industrial research and assessment
centers, Building Assessment Centers, and Clean Energy
Application Centers located in the region of such Center for
Energy and Environmental Knowledge and Outreach.
(2) Technical assistance programs.--Each Center for Energy
and Environmental Knowledge and Outreach shall consist of at
least one, new or existing, high performing, of the
following:
(A) An industrial research and assessment center.
(B) A Clean Energy Application Center.
(C) A Building Assessment Center.
(3) Selection criteria.--The Secretary shall select Centers
for Energy and Environmental Knowledge and Outreach through a
competitive process, based on the following:
(A) Identification of the highest performing industrial
research and assessment centers, Clean Energy Application
Centers, and Building Assessment Centers.
(B) The degree to which an institution of higher education
maintains credibility among regional private sector
organizations such as trade associations, engineering
associations, and environmental organizations.
(C) The degree to which an institution of higher education
is providing or has provided technical assistance, academic
leadership, and market leadership in the energy arena in a
manner that is consistent with the areas of focus of
industrial research and assessment centers, Clean Energy
Application Centers, and Building Assessment Centers.
(D) The presence of an additional industrial research and
assessment center, Clean

[[Page H7499]]

Energy Application Center, or Building Assessment Center at
the institution of higher education.
(4) Geographic diversity.--In selecting Centers for Energy
and Environmental Knowledge and Outreach under this
subsection, the Secretary shall ensure such Centers are
distributed geographically in a relatively uniform manner to
ensure all regions of the Nation are represented.
(5) Regional leadership.--Each Center for Energy and
Environmental Knowledge and Outreach shall, to the extent
possible, provide leadership to all other industrial research
and assessment centers, Clean Energy Application Centers, and
Building Assessment Centers located in the Center's
geographic region, as determined by the Secretary. Such
leadership shall include--
(A) developing regional goals specific to the purview of
the industrial research and assessment centers, Clean Energy
Application Centers, and Building Assessment Centers
programs;
(B) developing regionally specific technical resources; and
(C) outreach to interested parties in the region to inform
them of the information, resources, and services available
through the associated industrial research and assessment
centers, Clean Energy Application Centers, and Building
Assessment Centers.
(6) Further coordination.--To increase the value and
capabilities of the regionally associated industrial research
and assessment centers, Clean Energy Application Centers, and
Building Assessment Centers programs, Centers for Energy and
Environmental Knowledge and Outreach shall--
(A) coordinate with Manufacturing Extension Partnership
Centers of the National Institute of Science and Technology;
(B) coordinate with the relevant programs in the Department
of Energy, including the Building Technology Program and
Industrial Technologies Program;
(C) increase partnerships with the National Laboratories of
the Department of Energy to leverage the expertise and
technologies of the National Laboratories to achieve the
goals of the industrial research and assessment centers,
Clean Energy Application Centers, and Building Assessment
Centers;
(D) work with relevant municipal, county, and State
economic development entities to leverage relevant financial
incentives for capital investment and other policy tools for
the protection and growth of local business and industry;
(E) partner with local professional and private trade
associations and business development interests to leverage
existing knowledge of local business challenges and
opportunities;
(F) work with energy utilities and other administrators of
publicly funded energy programs to leverage existing energy
efficiency and clean energy programs;
(G) identify opportunities for reducing greenhouse gas
emissions; and
(H) promote sustainable business practices for those served
by the industrial research and assessment centers, Clean
Energy Application Centers, and Building Assessment Centers.
(7) Workforce training.--
(A) In general.--The Secretary shall require each Center
for Energy and Environmental Knowledge and Outreach to
establish or maintain an internship program for the region of
such Center, designed to encourage students who perform
energy assessments to continue working with a particular
company, building, or facility to help implement the
recommendations contained in any such assessment provided to
such company, building, or facility. Each Center for Energy
and Environmental Knowledge and Outreach shall act as
internship coordinator to help match students to available
opportunities.
(B) Federal share.--The Federal share of the cost of
carrying out internship programs described under subparagraph
(A) shall be 50 percent.
(C) Funding.--Subject to the availability of
appropriations, of the funds made available to carry out this
subsection, the Secretary shall use to carry out this
paragraph not less than $5,000,000 for fiscal year 2010 and
each fiscal year thereafter.
(8) Small business loans.--The Administrator of the Small
Business Administration shall, to the maximum practicable,
expedite consideration of applications from eligible small
business concerns for loans under the Small Business Act (15
U.S.C. 631 et seq.) for loans to implement recommendations of
any industrial research and assessment center, Clean Energy
Application Center, or Building Assessment Center.
(9) Definitions.--In this subsection:
(A) Industrial research and assessment center.--The term
``industrial research and assessment center'' means a center
established or maintained pursuant to section 452(e) of the
Energy Independence and Security Act of 2007 (42 U.S.C.
17111(e)).
(B) Clean energy application center.--The term ``Clean
Energy Application Center'' means a center redesignated and
described section under section 375 of the Energy Policy and
Conservation Act (42 U.S.C. 6345).
(C) Building assessment center.--The term ``Building
Assessment Center'' means an institution of higher education-
based center established pursuant to section 173.
(D) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) Funding.--There are authorized to be appropriated to
the Secretary to carry out this subsection $10,000,000 for
fiscal year 2010 and each fiscal year thereafter. Subject to
the availability of appropriations, of the funds made
available to carry out this subsection, the Secretary shall
provide to each Center for Energy and Environmental Knowledge
and Outreach not less than $500,000 for fiscal year 2010 and
each fiscal year thereafter.
(b) Integration of Other Technical Assistance Programs.--
(1) Clean energy application centers.--Section 375 of the
Energy Policy and Conservation Act (42 U.S.C. 6345) is
amended--
(A) by redesignating subsection (f) as subsection (g); and
(B) by adding after subsection (e) the following new
subsection:
``(f) Coordination With Centers for Energy and
Environmental Knowledge and Outreach.--A Clean Energy
Application Center may serve as a Center for Energy and
Environmental Knowledge and Outreach established pursuant to
section 174 of the American Clean Energy and Security Act of
2009.''.
(2) Industrial research and assessment centers.--Section
452(e) of the Energy Independence and Security Act of 2007
(42 U.S.C. 17111(e)) is amended--
(A) by striking ``The Secretary'' and all that follows
through ``shall be--'' and inserting the following:
``(1) In general.--The Secretary shall provide funding to
institution of higher education-based industrial research and
assessment centers, whose purposes shall be--'';
(B) by redesignating paragraphs (1) through (5) as
subparagraphs (A) through (E), respectively (and by moving
the margins of such subparagraphs 2 ems to the right); and
(C) by adding at the end the following new paragraph:
``(2) Coordination with centers for energy and
environmental knowledge and outreach.--An industrial research
and assessment center may serve as a Center for Energy and
Environmental Knowledge and Outreach established pursuant to
section 174 of the American Clean Energy and Security Act of
2009.''.
(c) Additional Funding for Clean Energy Application
Centers.--Subsection (g) of section 375 of the Energy Policy
and Conservation Act (42 U.S.C. 6345(f)), as redesignated by
subsection (b)(1) of this section, is amended by striking
``$10,000,000 for each of fiscal years 2008 through 2012''
and inserting ``$30,000,000 for fiscal year 2010 and each
fiscal year thereafter''.

SEC. 175. HIGH EFFICIENCY GAS TURBINE RESEARCH, DEVELOPMENT,
AND DEMONSTRATION.

(a) In General.--The Secretary of Energy shall carry out a
multiyear, multiphase program of research, development, and
technology demonstration to improve the efficiency of gas
turbines used in combined cycle power generation systems and
to identify the technologies that ultimately will lead to gas
turbine combined cycle efficiency of 65 percent.
(b) Program Elements.--The program under this section
shall--
(1) support first-of-a-kind engineering and detailed gas
turbine design for utility-scale electric power generation,
including--
(A) high temperature materials, including superalloys,
coatings, and ceramics;
(B) improved heat transfer capability;
(C) manufacturing technology required to construct complex
three-dimensional geometry parts with improved aerodynamic
capability;
(D) combustion technology to produce higher firing
temperature while lowering nitrogen oxide and carbon monoxide
emissions per unit of output;
(E) advanced controls and systems integration;
(F) advanced high performance compressor technology; and
(G) validation facilities for the testing of components and
subsystems;
(2) include technology demonstration through component
testing, subscale testing, and full scale testing in existing
fleets;
(3) include field demonstrations of the developed
technology elements so as to demonstrate technical and
economic feasibility; and
(4) assess overall combined cycle system performance.
(c) Program Goals.--The goals of the multiphase program
established under subsection (a) shall be--
(1) in phase I--
(A) to develop the conceptual design of advanced high
efficiency gas turbines that can achieve at least 62 percent
combined cycle efficiency on a lower heating value basis; and
(B) to develop and demonstrate the technology required for
advanced high efficiency gas turbines that can achieve at
least 62 percent combined cycle efficiency on a lower heating
value basis; and
(2) in phase II, to develop the conceptual design for
advanced high efficiency gas turbines that can achieve at
least 65 percent combined cycle efficiency on a lower heating
value basis.
(d) Proposals.--Within 180 days after the date of enactment
of this section, the Secretary shall solicit proposals for
conducting activities under this section. In selecting
proposals, the Secretary shall emphasize--
(1) the extent to which the proposal will stimulate the
creation or increased retention of jobs in the United States;
and
(2) the extent to which the proposal will promote and
enhance United States technology leadership.
(e) Cost Sharing.--Section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352) shall

[[Page H7500]]

apply to an award of financial assistance made under this
section.
(f) Limits on Participation.--The limits on participation
applicable under section 999E of the Energy Policy Act of
2005 (42 U.S.C. 16375) shall apply to financial assistance
awarded under this section.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $65,000,000 for each of fiscal years 2011 through
2014.

Subtitle I--Nuclear and Advanced Technologies

SEC. 181. REVISIONS TO LOAN GUARANTEE PROGRAM AUTHORITY.

(a) Definition of Conditional Commitment.--Section 1701 of
the Energy Policy Act of 2005 (42 U.S.C. 16511), as amended
by section 130(a) of this Act, is amended by adding after
paragraph (7) the following:
``(8) Conditional commitment.--The term `conditional
commitment' means a final term sheet negotiated between the
Secretary and a project sponsor or sponsors, which term sheet
shall be binding on both parties and become a final loan
guarantee agreement if all conditions precedent established
in the term sheet, which shall include the acquisition of all
necessary permits and licenses, are satisfied.''.
(b) Specific Appropriation or Contribution.--Section 1702
of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended
by striking subsection (b) and inserting the following:
``(b) Specific Appropriation or Contribution.--
``(1) In general.--No guarantee shall be made unless--
``(A) an appropriation for the cost has been made;
``(B) the Secretary has received from the borrower a
payment in full for the cost of the obligation and deposited
the payment into the Treasury; or
``(C) a combination of appropriations or payments from the
borrower has been made sufficient to cover the cost of the
obligation.
``(2) Limitation.--The source of payments received from a
borrower under paragraph (1)(B) shall not be a loan or other
debt obligation that is made or guaranteed by the Federal
Government.''.
(c) Fees.--Section 1702(h) of the Energy Policy Act of 2005
(42 U.S.C. 16512(h)) is amended by striking paragraph (2) and
inserting the following:
``(2) Availability.--Fees collected under this subsection
shall--
``(A) be deposited by the Secretary into a special fund in
the Treasury to be known as the `Incentives For Innovative
Technologies Fund'; and
``(B) remain available to the Secretary for expenditure,
without further appropriation or fiscal year limitation, for
administrative expenses incurred in carrying out this
title.''.
(d) Wage Rate Requirements.--Section 1702 of the Energy
Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at
the end the following new subsection:
``(k) Wage Rate Requirements.--No loan guarantee shall be
made under this title unless the borrower has provided to the
Secretary reasonable assurances that all laborers and
mechanics employed by contractors and subcontractors in the
performance of construction work financed in whole or in part
by the guaranteed loan will be paid wages at rates not less
than those prevailing on projects of a character similar to
the contract work in the civil subdivision of the State in
which the contract work is to be performed as determined by
the Secretary of Labor in accordance with subchapter IV of
chapter 31 of part A of subtitle II of title 40, United
States Code. With respect to the labor standards specified in
this subsection, the Secretary of Labor shall have the
authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
section 3145 of title 40, United States Code.''.
(e) Subrogation.--Section 1702(g)(2) of the Energy Policy
Act of 2005 (42 U.S.C. 16512(g)(2)) is amended by striking
subparagraphs (B) and (C) and inserting the following:
``(B) Superiority of rights.--Except as provided in
subparagraph (C), the rights of the Secretary, with respect
to any property acquired pursuant to a guarantee or related
agreements, shall be superior to the rights of any other
person with respect to the property.
``(C) Terms and conditions.--A guarantee agreement shall
include such detailed terms and conditions as the Secretary
determines appropriate to--
``(i) protect the financial interests of the United States
in the case of default;
``(ii) have available all the patents and technology
necessary for any person selected, including the Secretary,
to complete and operate the project;
``(iii) provide for sharing the proceeds received from the
sale of project assets with other creditors or control the
disposition of project assets if necessary to protect the
financial interests of the United States in the case of
default; and
``(iv) provide such lien priority in project assets as
necessary to protect the financial interests of the United
States in the case of a default.''.

SEC. 182. PURPOSE.

The purpose of sections 183 through 189 of this subtitle is
to promote the domestic development and deployment of clean
energy technologies required for the 21st century through the
establishment of a self-sustaining Clean Energy Deployment
Administration that will provide for an attractive investment
environment through partnership with and support of the
private capital market in order to promote access to
affordable financing for accelerated and widespread
deployment of--
(1) clean energy technologies;
(2) advanced or enabling energy infrastructure
technologies;
(3) energy efficiency technologies in residential,
commercial, and industrial applications, including end-use
efficiency in buildings; and
(4) manufacturing technologies for any of the technologies
or applications described in this section.

SEC. 183. DEFINITIONS.

In this subtitle:
(1) Administration.--The term ``Administration'' means the
Clean Energy Deployment Administration established by section
186.
(2) Advisory council.--The term ``Advisory Council'' means
the Energy Technology Advisory Council of the Administration.
(3) Breakthrough technology.--The term ``breakthrough
technology'' means a clean energy technology that--
(A) presents a significant opportunity to advance the goals
developed under section 185, as assessed under the
methodology established by the Advisory Council; but
(B) has generally not been considered a commercially ready
technology as a result of high perceived technology risk or
other similar factors.
(4) Clean energy technology.--The term ``clean energy
technology'' means a technology related to the production,
use, transmission, storage, control, or conservation of
energy--
(A) that will contribute to a stabilization of atmospheric
greenhouse gas concentrations thorough reduction, avoidance,
or sequestration of energy-related emissions and--
(i) reduce the need for additional energy supplies by using
existing energy supplies with greater efficiency or by
transmitting, distributing, or transporting energy with
greater effectiveness through the infrastructure of the
United States; or
(ii) diversify the sources of energy supply of the United
States to strengthen energy security and to increase supplies
with a favorable balance of environmental effects if the
entire technology system is considered; and
(B) for which, as determined by the Administrator,
insufficient commercial lending is available at affordable
rates to allow for widespread deployment.
(5) Cost.--The term ``cost'' has the meaning given the term
in section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a).
(6) Direct loan.--The term ``direct loan'' has the meaning
given the term in section 502 of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a).
(7) Fund.--The term ``Fund'' means the Clean Energy
Investment Fund established by section 184(a).
(8) Green bonds.--The term ``Green Bonds'' means bonds
issued pursuant to section 184.
(8) Loan guarantee.--The term ``loan guarantee'' has the
meaning given the term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a).
(9) National laboratory.--The term ``National Laboratory''
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(11) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
(12) Technology risk.--The term ``technology risk'' means
the risks during construction or operation associated with
the design, development, and deployment of clean energy
technologies (including the cost, schedule, performance,
reliability and maintenance, and accounting for the perceived
risk), from the perspective of commercial lenders, that may
be increased as a result of the absence of adequate
historical construction, operating, or performance data from
commercial applications of the technology.

SEC. 184. CLEAN ENERGY INVESTMENT FUND.

(a) Establishment.--There is established in the Treasury of
the United States a revolving fund, to be known as the
``Clean Energy Investment Fund'', consisting of--
(1) such amounts as are deposited in the Fund under this
subtitle; and
(2) such sums as may be appropriated to supplement the
Fund.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Fund such sums as are necessary to
carry out this subtitle.
(c) Expenditures From Fund.--
(1) In general.--Amounts in the Fund shall be available to
the Administrator of the Administration for obligation
without fiscal year limitation, to remain available until
expended.
(2) Administrative expenses.--
(A) Fees.--Fees collected for administrative expenses shall
be available without limitation to cover applicable expenses.
(B) Fund.--To the extent that administrative expenses are
not reimbursed through

[[Page H7501]]

fees, an amount not to exceed 1.5 percent of the amounts in
the Fund as of the beginning of each fiscal year shall be
available to pay the administrative expenses for the fiscal
year necessary to carry out this subtitle.
(d) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the Fund under this section shall be transferred at least
monthly from the general fund of the Treasury to the Fund on
the basis of estimates made by the Secretary of the Treasury.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior
estimates were in excess of or less than the amounts required
to be transferred.
(3) Cash flows.--Cash flows associated with costs of the
Fund described in section 502(5)(B) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)(B)) shall be transferred
to appropriate credit accounts.
(e) Green Bonds.--
(1) Initial capitalization.--The Secretary of the Treasury
shall issue Green Bonds in the amount of $7,500,000,000 on
the credit of the United States to acquire capital stock of
the Administration. Stock certificates evidencing ownership
in the Administration shall be issued by the Administration
to the Secretary of the Treasury, to the extent of payments
made for the capital stock of the Administration.
(2) Denominations and maturity.--Green Bonds shall be in
such forms and denominations, and shall mature within such
periods, as determined by the Secretary of the Treasury.
(3) Interest.--Green Bonds shall bear interest at a rate
not less than the current average yield on outstanding market
obligations of the United States of comparable maturity
during the month preceding the issuance of the obligation as
determined by the Secretary of the Treasury.
(4) Lawful investments.--Green Bonds shall be lawful
investments, and may be accepted as security for all
fiduciary, trust, and public funds, the investment or deposit
of which shall be under the authority or control of the
United States or any officer or officers thereof.

SEC. 185. ENERGY TECHNOLOGY DEPLOYMENT GOALS.

(a) Goals.--Not later than 1 year after the date of
enactment of this Act, the Secretary, after consultation with
the Advisory Council, shall develop and publish for review
and comment in the Federal Register recommended near-,
medium-, and long-term goals (including numerical performance
targets at appropriate intervals to measure progress toward
those goals) for the deployment of clean energy technologies
through the credit support programs established by section
187 to promote--
(1) sufficient electric generating capacity using clean
energy technologies to meet the energy needs of the United
States;
(2) clean energy technologies in vehicles and fuels that
will substantially reduce the reliance of the United States
on foreign sources of energy and insulate consumers from the
volatility of world energy markets;
(3) a domestic commercialization and manufacturing capacity
that will establish the United States as a world leader in
clean energy technologies across multiple sectors;
(4) installation of sufficient infrastructure to allow for
the cost-effective deployment of clean energy technologies
appropriate to each region of the United States;
(5) the transformation of the building stock of the United
States to zero net energy consumption;
(6) the recovery, use, and prevention of waste energy;
(7) domestic manufacturing of clean energy technologies on
a scale that is sufficient to achieve price parity with
conventional energy sources;
(8) domestic production of commodities and materials (such
as steel, chemicals, polymers, and cement) using clean energy
technologies so that the United States will become a world
leader in environmentally sustainable production of the
commodities and materials;
(9) a robust, efficient, and interactive electricity
transmission grid that will allow for the incorporation of
clean energy technologies, distributed generation, and
demand-response in each regional electric grid;
(10) sufficient availability of financial products to allow
owners and users of residential, retail, commercial, and
industrial buildings to make energy efficiency and
distributed generation technology investments with reasonable
payback periods; and
(11) sufficient availability of financial services and
support to small businesses developing and deploying clean
energy technologies through partnerships with private
entities that have relevant creidt expertise; and
(12) such other goals as the Secretary, in consultation
with the Advisory Council, determines to be consistent with
the purpose stated in section 182.
(b) Revisions.--The Secretary shall revise the goals
established under subsection (a), from time to time as
appropriate, to account for advances in technology and
changes in energy policy.

SEC. 186. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.

(a) Establishment.--
(1) Establishment of corporation.--There is established a
corporation to be known as the Clean Energy Deployment
Administration that shall be wholly owned by the United
States.
(2) Independent corporation.--The Administration shall be
an independent corporation. Neither the Administration nor
any of its functions, powers, or duties shall be transferred
to or consolidated with any other department, agency, or
corporation of the Government unless the Congress provides
otherwise.
(3) Charter.--The Administration shall be chartered for 20
years from the date of enactment of this section.
(4) Status.--
(A) Inspector general.--Section 12 of the Inspector General
Act of 1978 (5 U.S.C. App.) is amended--
(i) in paragraph (1), by inserting ``the Administrator of
the Clean Energy Deployment Administration;'' after ``Export-
Import Bank;''; and
(ii) in paragraph (2), by inserting ``the Clean Energy
Deployment Administration,'' after ``Export-Import Bank,''.
(3) Offices.--
(A) Principal office.--The Administration shall--
(i) maintain the principal office of the Administration in
the national capital region; and
(ii) for purposes of venue in civil actions, be considered
to be a resident of the District of Columbia.
(B) Other offices.--The Administration may establish other
offices in such other places as the Administration considers
necessary or appropriate for the conduct of the business of
the Administration.
(b) Administrator.--
(1) In general.--The Administrator of the Administration
shall be--
(A) appointed by the President, with the advice and consent
of the Senate, for a 5-year term; and
(B) compensated at the prevailing rate for compensation for
similar positions in industry.
(2) Duties.--The Administrator of the Administration
shall--
(A) serve as the Chief Executive Officer of the
Administration and Chairman of the Board;
(B) ensure that--
(i) the Administration operates in a safe and sound manner,
including maintenance of adequate capital and internal
controls (consistent with section 404 of the Sarbanes-Oxley
Act of 2002 (15 U.S.C. 7262));
(ii) the operations and activities of the Administration
foster liquid, efficient, competitive, and resilient energy
and energy efficiency finance markets;
(iii) the Administration carries out the purpose stated in
section 182 only through activities that are authorized under
and consistent with sections 182 through 189; and
(iv) the activities of the Administration and the manner in
which the Administration is operated are consistent with the
public interest;
(C) develop policies and procedures for the Administration
that will--
(i) promote a self-sustaining portfolio of investments that
will maximize the value of investments to effectively promote
clean energy technologies;
(ii) promote transparency and openness in Administration
operations;
(iii) afford the Administration with sufficient flexibility
to meet the purpose stated in section 182; and
(iv) provide for the efficient processing of applications;
and
(D) with the concurrence of the Board, set expected loss
reserves for the support provided by the Administration
consistent with section 187(c).
(c) Board of Directors.--
(1) In general.--The Board of Directors of the
Administration shall consist of--
(A) the Secretary or the designee of the Secretary, who
shall serve as an ex-officio member of the Board of
Directors;
(B) the Secretary of the Treasury or the designee of the
Secretary, who shall serve as an ex-officio member of the
Board of Directors;
(C) the Secretary of the Interior or the designee of the
Secretary, who shall serve as an ex-officio member of the
Board of Directors;
(D) the Secretary of Agriculture or the designee of the
Secretary, who shall serve as an ex officio member of the
Board of Directors;
(E) the Administrator of the Administration, who shall
serve as the Chairman of the Board of Directors; and
(F) 4 additional members who shall--
(i) be appointed by the President, with the advice and
consent of the Senate, for staggered 5-year terms; and
(ii) have experience in banking, financial services,
technology assessment, energy regulation, or risk management,
including individuals with substantial experience in the
development of energy projects, the electricity generation
sector, the transportation sector, the manufacturing sector,
and the energy efficiency sector.
(2) Duties.--The Board of Directors shall--
(A) oversee the operations of the Administration and ensure
industry best practices are followed in all financial
transactions involving the Administration;
(B) consult with the Administrator of the Administration on
the general policies and procedures of the Administration to
ensure the interests of the taxpayers are protected;
(C) ensure the portfolio of investments are consistent with
purpose stated in section 182 and with the long-term
financial stability of the Administration;

[[Page H7502]]

(D) ensure that the operations and activities of the
Administration are consistent with the development of a
robust private sector that can provide commercial loans or
financing products; and
(E) not serve on a full-time basis, except that the Board
of Directors shall meet at least quarterly to review, as
appropriate, applications for credit support and set policies
and procedures as necessary.
(3) Removal.--An appointed member of the Board of Directors
may be removed from office by the President for good cause.
(4) Vacancies.--An appointed seat on the Board of Directors
that becomes vacant shall be filled by appointment by the
President, but only for the unexpired portion of the term of
the vacating member.
(5) Compensation of members.--An appointed member of the
Board of Directors shall be compensated at the prevailing
rate for compensation for similar positions in industry.
(d) Energy Technology Advisory Council.--
(1) In general.--The Administration shall have an Energy
Technology Advisory Council consisting of 8 members selected
by the Board of Directors of the Administration.
(2) Qualifications.--The members of the Advisory Council
shall--
(A) have clean energy project development, clean energy
finance, commercial, and/or relevant scientific expertise;
and
(B) include representatives of--
(i) the academic community;
(ii) the private research community;
(iii) National Laboratories;
(iv) the technology or project development community; and
(v) the commercial energy financing and operations sector.
(3) Duties.--The Advisory Council shall--
(A) develop and publish for comment in the Federal Register
a methodology for assessment of clean energy technologies
that will allow the Administration to evaluate projects based
on the progress likely to be achieved per-dollar invested in
maximizing the attributes of the definition of clean energy
technology, taking into account the extent to which support
for a clean energy technology is likely to accrue subsequent
benefits that are attributable to a commercial scale
deployment taking place earlier than that which otherwise
would have occurred without the support; and
(B) advise on the technological approaches that should be
supported by the Administration to meet the technology
deployment goals established by the Secretary pursuant to
section 185.
(4) Term.--
(A) In general.--Members of the Advisory Council shall have
5-year staggered terms, as determined by the Administrator of
the Administration.
(B) Reappointment.--A member of the Advisory Council may be
reappointed.
(5) Compensation.--A member of the Advisory Council, who is
not otherwise compensated as a Federal employee, shall be
compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties
of the Advisory Council.
(e) Staff.--
(1) In general.--The Administrator of the Administration,
in consultation with the Board of Directors, may--
(A) appoint and terminate such officers, attorneys,
employees, and agents as are necessary to carry out this
subtitle; and
(B) vest those personnel with such powers and duties as the
Administrator of the Administration may determine.
(f) Conflicts of Interest.--No director, officer, attorney,
agent, or employee of the Administration shall in any manner,
directly or indirectly, participate in the deliberation upon,
or the determination of, any question affecting such
individual's personal interests, or the interests of any
corporation, partnership, or association in which such
individual is directly or indirectly personally interested.
(g) Sunset.--
(1) Expiration of charter.--The Administration shall
continue to exercise its functions until all obligations and
commitments of the Administration are discharged, even after
its charter has expired.
(2) Prior obligations.--No provisions of this subsection
shall be construed as preventing the Administration from--
(A) undertaking obligations prior to the date of the
expiration of its charter which mature subsequent to such
date;
(B) assuming, prior to the date of the expiration of its
charter, liability as guarantor, endorser, or acceptor of
obligations which mature subsequent to such date; or
(C) continuing as a corporation and exercising any of its
functions subsequent to the date of the expiration of its
charter for purposes of orderly liquidation, including the
administration of its assets and the collection of any
obligations held by the Administration.

SEC. 187. DIRECT SUPPORT.

(a) In General.--The Administration may issue direct loans,
letters of credit, and loan guarantees to deploy clean energy
technologies if the Administrator of the Administration has
determined that deployment of the technologies would benefit
or be accelerated by the support.
(b) Eligibility Criteria.--In carrying out this section and
awarding credit support to projects, the Administrator of the
Administration shall account for--
(1) how the technology rates based on an evaluation
methodology established by the Advisory Council;
(2) how the project fits with the goals established under
section 185; and
(3) the potential for the applicant to successfully
complete the project.
(c) Risk.--
(1) Expected loan loss reserve.--The Administrator of the
Administration shall establish an expected loan loss reserve
to account for estimated losses attributable to activities
under this section that is consistent with the purposes of--
(A) developing breakthrough technologies to the point at
which technology risk is largely mitigated;
(B) achieving widespread deployment and advancing the
commercial viability of clean energy technologies; and
(C) advancing the goals established under section 185.
(2) Initial expected loan loss reserve.--Until such time as
the Administrator of the Administration determines sufficient
data exist to establish an expected loan loss reserve that is
appropriate, the Administrator of the Administration shall
consider establishing an initial rate of 10 percent for the
portfolio of investments under this subtitle.
(3) Portfolio investment approach.--The Administration
shall--
(A) use a portfolio investment approach to mitigate risk
and diversify investments across technologies and ensure that
no particular technology is provided more than 30 percent of
the financial support available;
(B) to the maximum extent practicable and consistent with
long-term self-sufficiency, weigh the portfolio of
investments in projects to advance the goals established
under section 185;
(C) consistent with the expected loan loss reserve
established under this subsection, the purpose stated in
section 182, and section 186(b)(2)(B), provide the maximum
practicable percentage of support to promote breakthrough
technologies; and
(D) give the highest priority to investments that promote
technologies that will achieve the maximum greenhouse gas
emission reductions within a reasonable period of time per
dollar invested and the earliest reductions in greenhouse gas
emissions.
(4) Loss rate review.--
(A) In general.--The Board of Directors shall review on an
annual basis the loss rates of the portfolio to determine the
adequacy of the reserves.
(B) Report.--Not later than 90 days after the date of the
initiation of the review, the Administrator of the
Administration shall submit to the Committee on Energy and
Natural Resources and the Committee on Finance of the Senate,
and the Committee on Energy and Commerce and the Committee on
Ways and Means of the House of Representatives a report
describing the results of the review and any recommended
policy changes.
(5) Federal cost share.--Direct loans, letters of credit
and loan guarantees by the Administration shall not exceed an
amount equal to 80 percent of the project cost of the
facility that is the subject of the loan, letter of credit or
loan guarantee, as estimated at the time at which the loan,
letter of credit or loan guarantee is issued.
(d) Application Review.--
(1) In general.--To the maximum extent practicable and
consistent with sound business practices, the Administration
shall seek to consolidate reviews of applications for credit
support under this subtitle such that final decisions on
applications can generally be issued not later than 180 days
after the date of submission of a completed application.
(2) Environmental review.--In carrying out this subtitle,
the Administration shall, to the maximum extent practicable--
(A) avoid duplicating efforts that have already been
undertaken by other agencies (including State agencies acting
under Federal programs); and
(B) with the advice of the Council on Environmental Quality
and any other applicable agencies, use the administrative
records of similar reviews conducted throughout the executive
branch to develop the most expeditious review process
practicable.
(e) Wage Rate Requirements.--
(1) In general.--No credit support shall be issued under
this section unless the borrower has provided to the
Administrator of the Administration reasonable assurances
that all laborers and mechanics employed by contractors and
subcontractors in the performance of construction work
financed in whole or in part by the Administration will be
paid wages at rates not less than those prevailing on
projects of a character similar to the contract work in the
civil subdivision of the State in which the contract work is
to be performed as determined by the Secretary of Labor in
accordance with subchapter IV of chapter 31 of part A of
subtitle II of title 40, United States Code.
(2) Labor standards.--With respect to the labor standards
specified in this subsection, the Secretary of Labor shall
have the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
section 3145 of title 40, United States Code.
(f) Limitations.--(1) The Administration shall not provide
direct support as defined

[[Page H7503]]

under this section or indirect support as defined under
section 188 to an individual clean energy technology project
that obtained a loan guarantee under title XVII of the Energy
Policy Act of 2005.
(2) No direct or indirect support provided by the
Administration may be used to pay any part of the cost of an
obligation or a loan guarantee under Title XVII of the Energy
Policy Act of 2005.

SEC. 188. INDIRECT SUPPORT.

(a) In General.--For the purpose of enhancing the
availability of private financing for clean energy technology
deployment, the Administration may--
(1) provide credit support to portfolios of taxable debt
obligations originated by state, local, and private sector
entities that enable owners and users of buildings and
industrial facilities to--
(A) significantly increase the energy efficiency of such
buildings or facilities; or
(B) install systems that individually generate electricity
from renewable energy resources and have a capacity of no
more than 2 megawatts;
(2) facilitate financing transactions in tax equity markets
and long-term purchasing of clean energy by state, local, and
non-governmental not-for-profit entities, to the degree and
extent that the Administration determines such financing
activity is appropriate and consistent with carrying out the
purposes described in Section 182 of this Act; and
(3) provide credit support to portfolios of taxable debt
obligations originated by state, local, and private sector
entities that enable the deployment of energy storage
applications for electric drive vehicles, stationary
applications, and electricity transmission and distribution.
(b) Definitions.--For purposes of the section:
(1) Credit support.--The term ``credit support'' means--
(A) direct loans, letters of credit, loan guarantees, and
insurance products; and
(B) the purchase or commitment to purchase, or the sale or
commitment to sell, debt instruments (including subordinated
securities).
(2) Renewable energy resource.--The term ``renewable energy
resource'' shall have the meaning given that term in section
610 of the Public Utility Regulatory Policies Act of 1978 (as
added by section 101 of this Act).
(c) Transparency.--The Administration shall seek to foster
through its credit support activities--
(1) the development and consistent application of standard
contractual terms, transparent underwriting standards and
consistent measurement and verification protocols, as
applicable; and
(2) the creation of performance data that promotes
effective underwriting and risk management to support lending
markets and stimulate the development of private investment
markets.
(d) Exempt Securities.--All securities insured or
guaranteed by the Administration shall, to the same extent as
securities that are direct obligations of or obligations
guaranteed as to the principal or interest by the United
States, be considered to be exempt securities within the
meaning of the laws administered by the Securities and
Exchange Commission.

SEC. 189. FEDERAL CREDIT AUTHORITY.

(a) Payments of Liabilities.--
(1) In general.--Any payment made to discharge liabilities
arising from agreements under this subtitle shall be paid
exclusively out of the Fund or the associated credit account,
as appropriate.
(2) Security.--Subject to paragraph (1), the full faith and
credit of the United States is pledged to the payment of all
obligations entered into by the Administration pursuant to
this subtitle.
(b) Fees.--
(1) In general.--Consistent with achieving the purpose
stated in section 182, the Administrator of the
Administration shall charge fees or collect compensation
generally in accordance with commercial rates.
(2) Availability of fees.--All fees collected by the
Administration may be retained by the Administration and
placed in the Fund and may remain available to the
Administration, without further appropriation or fiscal year
limitation, for use in carrying out the purpose stated in
section 182.
(3) Breakthrough technologies.--The Administration shall
charge the minimum amount in fees or compensation practicable
for breakthrough technologies, consistent with the long-term
viability of the Administration, unless the Administration
first determines that a higher charge will not impede the
development of the technology.
(4) Alternative fee arrangements.--The Administration may
use such alternative arrangements (such as profit
participation, contingent fees, and other valuable contingent
interests) as the Administration considers appropriate to
compensate the Administration for the expenses of the
Administration and the risk inherent in the support of the
Administration.
(c) Cost Transfer Authority.--Amounts collected by the
Administration for the cost of a loan or loan guarantee shall
be transferred by the Administration to the respective credit
accounts.

SEC. 190. GENERAL PROVISIONS.

(a) Immunity From Impairment, Limitation, or Restriction.--
(1) In general.--All rights and remedies of the
Administration (including any rights and remedies of the
Administration on, under, or with respect to any mortgage or
any obligation secured by a mortgage) shall be immune from
impairment, limitation, or restriction by or under--
(A) any law (other than a law enacted by Congress expressly
in limitation of this paragraph) that becomes effective after
the acquisition by the Administration of the subject or
property on, under, or with respect to which the right or
remedy arises or exists or would so arise or exist in the
absence of the law; or
(B) any administrative or other action that becomes
effective after the acquisition.
(2) State law.--The Administrator of the Administration may
conduct the business of the Administration without regard to
any qualification or law of any State relating to
incorporation.
(b) Use of Other Agencies.--With the consent of a
department, establishment, or instrumentality (including any
field office), the Administration may--
(1) use and act through any department, establishment, or
instrumentality; and
(2) use, and pay compensation for, information, services,
facilities, and personnel of the department, establishment,
or instrumentality.
(c) Financial Matters.--
(1) Investments.--Funds of the Administration may be
invested in such investments as the Board of Directors may
prescribe. Earnings from such funds, other than fees
collected under section 189, may be spent by the
Administration only to such extent or in such amounts as are
provided in advance by appropriation Acts.
(2) Fiscal agents.--Any Federal Reserve bank or any bank as
to which at the time of the designation of the bank by the
Administrator of the Administration there is outstanding a
designation by the Secretary of the Treasury as a general or
other depository of public money, may be designated by the
Administrator of the Administration as a depositary or
custodian or as a fiscal or other agent of the
Administration.
(d) Periodic Reports.--Not later than 1 year after
commencement of operation of the Administration and at least
biannually thereafter, the Administrator of the
Administration shall submit to the Committee on Energy and
Natural Resources and the Committee on Finance of the Senate
and the Committee on Energy and Commerce and the Committee on
Ways and Means of the House of Representatives a report that
includes a description of--
(1) the technologies supported by activities of the
Administration and how the activities advance the purpose
stated in section 182; and
(2) the performance of the Administration on meeting the
goals established under section 185.
(g) Audits by the Comptroller General.--
(1) In general.--The programs, activities, receipts,
expenditures, and financial transactions of the
Administration shall be subject to audit by the Comptroller
General of the United States under such rules and regulations
as may be prescribed by the Comptroller General.
(2) Access.--The representatives of the Government
Accountability Office shall--
(A) have access to the personnel and to all books,
accounts, documents, records (including electronic records),
reports, files, and all other papers, automated data, things,
or property belonging to, under the control of, or in use by
the Administration, or any agent, representative, attorney,
advisor, or consultant retained by the Administration, and
necessary to facilitate the audit;
(B) be afforded full facilities for verifying transactions
with the balances or securities held by depositories, fiscal
agents, and custodians;
(C) be authorized to obtain and duplicate any such books,
accounts, documents, records, working papers, automated data
and files, or other information relevant to the audit without
cost to the Comptroller General; and
(D) have the right of access of the Comptroller General to
such information pursuant to section 716(c) of title 31,
United States Code.
(3) Assistance and cost.--
(A) In general.--For the purpose of conducting an audit
under this subsection, the Comptroller General may, in the
discretion of the Comptroller General, employ by contract,
without regard to section 3709 of the Revised Statutes (41
U.S.C. 5), professional services of firms and organizations
of certified public accountants for temporary periods or for
special purposes.
(B) Reimbursement.--
(i) In general.--On the request of the Comptroller General,
the Administration shall reimburse the Government
Accountability Office for the full cost of any audit
conducted by the Comptroller General under this subsection.
(ii) Crediting.--Such reimbursements shall--

(I) be credited to the appropriation account entitled
``Salaries and Expenses, Government Accountability Office''
at the time at which the payment is received; and
(II) remain available until expended.

(h) Annual Independent Audits.--
(1) In general.--The Administrator of the Administration
shall--
(A) have an annual independent audit made of the financial
statements of the Administration by an independent public
accountant

[[Page H7504]]

in accordance with generally accepted auditing standards; and
(B) submit to the Secretary and to the Committee on Energy
and Natural Resources and the Committee on Finance of the
Senate and the Committee on Energy and Commerce and the
Committee on Ways and Means of the House the results of the
audit.
(2) Content.--In conducting an audit under this subsection,
the independent public accountant shall determine and report
on whether the financial statements of the Administration--
(A) are presented fairly in accordance with generally
accepted accounting principles; and
(B) comply with any disclosure requirements imposed under
this subtitle.
(i) Financial Reports.--
(1) In general.--The Administrator of the Administration
shall submit to the Secretary and to the Committee on Energy
and Natural Resources and the Committee on Finance of the
Senate and the Committee on Energy and Commerce and the
Committee on Ways and Means of the House annual and quarterly
reports of the financial condition and operations of the
Administration, which shall be in such form, contain such
information, and be submitted on such dates as the Secretary
shall require.
(2) Contents of annual reports.--Each annual report shall
include--
(A) financial statements prepared in accordance with
generally accepted accounting principles;
(B) any supplemental information or alternative
presentation that the Secretary may require; and
(C) an assessment (as of the end of the most recent fiscal
year of the Administration), signed by the chief executive
officer and chief accounting or financial officer of the
Administration, of--
(i) the effectiveness of the internal control structure and
procedures of the Administration; and
(ii) the compliance of the Administration with applicable
safety and soundness laws.
(3) Special reports.--The Secretary may require the
Administrator of the Administration to submit other reports
on the condition (including financial condition), management,
activities, or operations of the Administration, as the
Secretary considers appropriate.
(4) Accuracy.--Each report of financial condition shall
contain a declaration by the Administrator of the
Administration or any other officer designated by the Board
of Directors of the Administration to make the declaration,
that the report is true and correct to the best of the
knowledge and belief of the officer.
(5) Availability of reports.--Reports required under this
section shall be published and made publicly available as
soon as is practicable after receipt by the Secretary.
(j) Spending Safeguards and Reporting.--
(1) In general.--The Administrator--
(A) shall require any entity receiving financing support
from the Administration to report quarterly, in a format
specified by the Administrator, on such entity's use of such
support and its progress fulfilling the objectives for which
such support was granted, and the Administrator shall make
these reports available to the public;
(B) may establish additional reporting and information
requirements for any recipient of financing support from the
Administration;
(C) shall establish appropriate mechanisms to ensure
appropriate use and compliance with all terms of any
financing support from the Administration;
(D) shall create and maintain a fully searchable database,
accessible on the Internet (or successor protocol) at no cost
to the public, that contains at least--
(i) a list of each entity that has applied for financing
support;
(ii) a description of each application;
(iii) the status of each such application;
(iv) the name of each entity receiving financing support;
(v) the purpose for which such entity is receiving such
financing support;
(vi) each quarterly report submitted by the entity pursuant
to this section; and
(vii) such other information sufficient to allow the public
to understand and monitor the financial support provided by
the Administration;
(E) shall make all financing transactions available for
public inspection, including formal annual reviews by both a
private auditor and the Comptroller General; and
(F) shall at all times be available to receive public
comment in writing on the activities of the Administration.
(2) Protection of confidential business information.--To
the extent necessary and appropriate, the Administrator may
redact any information regarding applicants and borrowers to
protect confidential business information.

SEC. 191. CONFORMING AMENDMENTS.

(a) Tax Exempt Status.--Subsection (l) of section 501 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following:
``(4) The Clean Energy Deployment Administration
established under section 186 of the American Clean Energy
and Security Act of 2009''.
(b) Wholly Owned Government Corporation.--Paragraph (3) of
section 9101 of title 31, United States Code, is amended by
adding at the end the following:
``(S) the Clean Energy Deployment Administration.''.

Subtitle J--Miscellaneous

SEC. 195. INCREASED HYDROELECTRIC GENERATION AT EXISTING
FEDERAL FACILITIES.

(a) In General.--The Secretary of the Interior, the
Secretary of Energy, and the Secretary of the Army shall
jointly update the study of the potential for increasing
electric power production capability at federally owned or
operated water regulation, storage, and conveyance facilities
required in section 1834 of the Energy Policy Act of 2005.
(b) Content.--The update under this section shall include
identification and description in detail of each facility
that is capable, with or without modification, of producing
additional hydroelectric power, including estimation of the
existing potential for the facility to generate hydroelectric
power.
(c) Report.--The Secretaries shall submit to the Committees
on Energy and Commerce, Natural Resources, and Transportation
and Infrastructure of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a
report on the findings, conclusions, and recommendations of
the update of the study under this section by not later than
12 months after the date of enactment of this Act. The report
shall include each of the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities currently conducted or
considered, or that could be considered, to produce
additional hydroelectric power from each identified facility.
(3) A summary of prior actions taken by the Secretaries to
produce additional hydroelectric power from each identified
facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility, and the level of Federal power
customer involvement in the determination of such costs.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action,
including quantified estimates of any additional energy or
capacity from each facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric
power production by replacing turbine runners, by performing
generator upgrades or rewinds, or by construction of pumped
storage facilities.
(7) The impact of increased hydroelectric power production
on irrigation, water supply, fish, wildlife, Indian tribes,
river health, water quality, navigation, recreation, fishing,
and flood control.
(8) Any additional recommendations to increase
hydroelectric power production from, and reduce costs and
improve efficiency at, federally owned or operated water
regulation, storage, and conveyance facilities.

SEC. 196. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT
PROGRAM.

(a) In General.--The Secretary of Energy is authorized to
provide grants to organizations to conduct business
competitions that provide incentives, training, and
mentorship to entrepreneurs including minority-owned and
woman-owned and early stage start-up companies throughout the
United States to meet high priority economic, environmental,
and energy security goals in areas to include energy
efficiency, renewable energy, air quality, water quality and
conservation, transportation, smart grid, green building, and
waste management. Such competitions shall have the purpose of
accelerating the development and deployment of clean
technology businesses and green jobs; stimulating green
economic development; providing business training and
mentoring to early stage clean technology companies; and
strengthening the competitiveness of United States clean
technology industry in world trade markets. Priority shall be
given to business competitions that are private sector led,
encourage regional and interregional cooperation, and can
demonstrate market-driven practices and show the creation of
cost-effective green jobs through an annual publication of
competition activities and directory of companies.
(b) Eligibility.--An organization eligible for a grant
under subsection (a) is--
(1) any organization described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of such Code; and
(2) any sponsored entity of an organization described in
paragraph (1) that is operated as a nonprofit entity.
(c) Priority.--In making grants under this section, the
Secretary shall give priority to those organizations that can
demonstrate broad funding support from private and other non-
Federal funding sources to leverage Federal investment.
(d) Authorization of Appropriations.--For the purpose of
carrying out this section, there are authorized to be
appropriated $20,000,000.

SEC. 197. NATIONAL BIOENERGY PARTNERSHIP.

(a) In General.--The Secretary of Energy shall establish a
National Bioenergy Partnership to provide coordination among
programs of State governments, the Federal Government, and
the private sector that support the institutional and
physical infrastructure necessary to promote the deployment
of sustainable biomass fuels and bioenergy technologies for
the United States.
(b) Program.--The National Bioenergy Partnership shall
consist of five regions, to be administered by the CONEG
Policy Research Center, the Council of Great Lakes

[[Page H7505]]

Governors, the Southern States Energy Board, the Western
Governors Association, and the Pacific Regional Biomass
Energy Partnership led by the Washington State University
Energy Program.
(c) Authorization of Appropriations.--There are authorized
to be appropriated for each of fiscal years 2010 through 2014
to carry out this section--
(1) $5,000,000, to be allocated among the 5 regions
described in subsection (b) on the basis of the number of
States in each region, for distribution among the member
States of that region based on procedures developed by the
member States of the region; and
(2) $2,500,000, to be allocated equally among the 5 regions
described in subsection (b) for region-wide activities,
including technical assistance and regional studies and
coordination.

SEC. 198. OFFICE OF CONSUMER ADVOCACY.

Section 319 of the Federal Power Act is amended to read as
follows:

``SEC. 319. OFFICE OF CONSUMER ADVOCACY.

``(a) Office.--
``(1) Establishment.--There is established within the
Commission an Office of Consumer Advocacy to serve as an
advocate for the public interest. The Office of
Administrative Litigation within the Commission shall be
incorporated into the Office of Consumer Advocacy.
``(2) Director.--The Office shall be headed by a Director
to be appointed by the President by and with the advice and
consent of the Senate from among individuals who are licensed
attorneys admitted to the Bar of any State or of the District
of Columbia and who have experience in public utility
proceedings.
``(3) Duties.--The Office may--
``(A) represent the interests of energy customers--
``(i) on matters before the Commission concerning rates or
service of public utilities and natural gas companies under
the jurisdiction of the Commission;
``(ii) as amicus curiae, in the review in the courts of the
United States of rulings by the Commission in such matters;
and
``(iii) as amicus, in hearings and proceedings in other
Federal regulatory agencies and commissions related to such
matters;
``(B) monitor and review energy customer complaints and
grievances on matters concerning rates or service of public
utilities and natural gas companies under the jurisdiction of
the Commission;
``(C) investigate independently, or within the context of
formal proceedings, the services provided by, the rates
charged by, and the valuation of the properties of, public
utilities and natural gas companies under the jurisdiction of
the Commission;
``(D) develop means, such as public dissemination of
information, consultative services, and technical assistance,
to ensure, to the maximum extent practicable, that the
interests of energy consumers are adequately represented in
the course of any hearing or proceeding described in
subparagraph (A);
``(E) collect data concerning rates or service of public
utilities and natural gas companies under the jurisdiction of
the Commission; and
``(F) prepare and issue reports and recommendations.
``(4) Compensation and powers.--The Director shall be
compensated at Level IV of the Executive Schedule. The
Director may--
``(A) employ not more than 25 full-time professional
employees at appropriate levels in the GS Scale and such
additional support personnel as required; and
``(B) procure temporary and intermittent services as
needed.
``(5) Information from other federal agencies.--The
Director may request, from any department, agency, or
instrumentality of the United States such information as he
deems necessary to carry out his functions under this
section. Upon such request, the head of the department,
agency, or instrumentality concerned shall, to the extent
practicable and authorized by law, provide such information
to the Office.
``(b) Consumer Advocacy Advisory Committee.--
``(1) Establishment.--The Director shall establish an
advisory committee to be known as Consumer Advocacy Advisory
Committee (in this section referred to as the `Advisory
Committee') to review rates, services, and disputes and to
make recommendations to the Director.
``(2) Composition.--The Director shall appoint 5 members to
the Advisory Committee including--
``(A) 2 individuals representing State utility consumer
advocates; and
``(B) 1 individual, from a nongovernmental organization
representing consumers.
``(3) Meetings.--The Advisory Committee shall meet at such
frequency as may be required to carry out its duties.
``(4) Reports.--The Director shall provide for the
publication of recommendations of the Advisory Committee on
the public website established for the Office.
``(5) Duration.--Notwithstanding any other provision of
law, the Advisory Committee shall continue in operation
during the period for which the Office exists.
``(c) Definitions.--
``(1) Energy customer.--The term `energy customer' means a
residential customer or a small commercial customer that
receives products or services directly or indirectly from a
public utility or natural gas company under the jurisdiction
of the Commission.
``(2) Natural gas company.--The term `natural gas company'
has the meaning given the term in section 2 of the Natural
Gas Act (15 U.S.C. 717a), as modified by section 601(a) of
the Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a)).
``(3) Office.--The term `Office' means the Office of
Consumer Advocacy established under this section.
``(4) Public utility.--The term `public utility' has the
meaning given the term in section 201(e) of this Act.
``(5) Small commercial customer.--The term `small
commercial customer' means a commercial customer that has a
peak demand of not more than 1,000 kilowatts per hour.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as necessary to carry
out this section.
``(e) Savings Clause.--Nothing in this section affects the
rights or obligations of any State utility consumer
advocate.''.

SEC. 199. DEVELOPMENT CORPORATION FOR RENEWABLE POWER
BORROWING AUTHORITY

(a) Determination.--No later than 6 months after the date
of enactment of this Act, the Secretary of Energy, in
coordination with the Secretary of Commerce, shall--
(1) determine any geographic area within the contiguous
United States that lacks a Federal power marketing agency;
(2) develop a plan or criteria for the geographic areas
identified in paragraph (1) regarding investment in renewable
energy and associated infrastructure within an area
identified in paragraph (1); and
(3) identify any Federal agency within an area in paragraph
(1) that has, or could develop, the ability to facilitate the
investment in paragraph (2).
(b) Report.--The Secretary of Energy, in coordination with
the Secretary of Commerce, shall provide the determinations
made under subsection (a) to the Committee on Energy and
Commerce of the House of Representatives.
(c) Establishment.--Based upon the determinations made
pursuant to subsection (a), the Secretary of Energy, in
coordination with the Secretary of Commerce, shall recommend
to the Committee on Energy and Commerce of the House of
Representatives the establishment of any new Federal lending
authority, including authorization of additional lending
authority for existing Federal agencies, not to exceed
$3,500,000,000 per geographic area identified in subsection
(a)(1).
(d) Authorization.--$25,000,000 is authorized to be
appropriated for fiscal year 2010 to carry out the provisions
of this section.

SEC. 199A. STUDY.

Not later than February 1, 2011, the Secretary of Energy
shall transmit to the Congress a report showing the results
of a study on the use of thorium-fueled nuclear reactors for
national energy needs. Such report shall include a response
to the International Atomic Energy Agency study entitled
``Thorium fuel cycle - Potential benefits and challenges''
(IAEA-TECDOC-1450).

TITLE II--ENERGY EFFICIENCY

Subtitle A--Building Energy Efficiency Programs

SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

Section 304 of the Energy Conservation and Production Act
(42 U.S.C. 6833) is amended to read as follows:

``SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

``(a) Energy Efficiency Targets.--
``(1) In general.--Except as provided in paragraph (2) or
(3), the national building code energy efficiency target for
the national average percentage improvement of a building's
energy performance when built to a code meeting the target
shall be--
``(A) effective on the date of enactment of the American
Clean Energy and Security Act of 2009, 30 percent reduction
in energy use relative to a comparable building constructed
in compliance with the baseline code;
``(B) effective January 1, 2014, for residential buildings,
and January 1, 2015, for commercial buildings, 50 percent
reduction in energy use relative to the baseline code; and
``(C) effective January 1, 2017, for residential buildings,
and January 1, 2018, for commercial buildings, and every 3
years thereafter, respectively, through January 1, 2029, and
January 1, 2030, 5 percent additional reduction in energy use
relative to the baseline code.
``(2) Consensus-based codes.--If on any effective date
specified in paragraph (1)(A), (B), or (C) a successor code
to the baseline codes provides for greater reduction in
energy use than is required under paragraph (1), the overall
percentage reduction in energy use provided by that successor
code shall be the national building code energy efficiency
target.
``(3) Targets established by secretary.--The Secretary may
by rule establish a national building code energy efficiency
target for residential or commercial buildings achieving
greater reductions in energy use than the targets prescribed
in paragraph (1) or (2) if the Secretary determines that such
greater reductions in energy use can be achieved with a code
that is life cycle cost-justified and technically feasible.
The Secretary may by rule establish a national building code
energy efficiency target for residential or commercial
buildings achieving a reduction in energy use that is greater

[[Page H7506]]

than zero but less than the targets prescribed in paragraph
(1) or (2) if the Secretary determines that such lesser
target is the maximum reduction in energy use that can be
achieved through a code that is life cycle cost-justified and
technically feasible.
``(4) Additional reductions in energy use.--Effective on
January 1, 2033, and once every 3 years thereafter, the
Secretary shall determine, after notice and opportunity for
comment, whether further energy efficiency building code
improvements for residential or commercial buildings,
respectively, are life cycle cost-justified and technically
feasible, and shall establish updated national building code
energy efficiency targets that meet such criteria.
``(5) Zero-net-energy buildings.--In setting targets under
this subsection, the Secretary shall consider ways to support
the deployment of distributed renewable energy technology,
and shall seek to achieve the goal of zero-net-energy
commercial buildings established in section 422 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17082).
``(6) Baseline code.--For purposes of this section, the
term `baseline code' means--
``(A) for residential buildings, the 2006 International
Energy Conservation Code (IECC) published by the
International Code Council (ICC); and
``(B) for commercial buildings, the code published in
ASHRAE Standard 90.1-2004.
``(7) Consultation.--In establishing the targets required
by this section, the Secretary shall consult with the
Director of the National Institute of Standards and
Technology.
``(b) National Energy Efficiency Building Codes.--
``(1) Requirement.--
``(A) In general.--There shall be established national
energy efficiency building codes under this subsection, for
residential and commercial buildings, sufficient to meet each
of the national building code energy efficiency targets
established under subsection (a), not later than the date
that is one year after the deadline for establishment of each
such target, except that the national energy efficiency
building code established to meet the target described in
subsection (a)(1)(A) shall be established by not later than
15 months after the effective date of that target.
``(B) Existing code.--If the Secretary finds prior to the
date provided in subparagraph (A) for establishing a national
code for any target that one or more energy efficiency
building codes published by a recognized developer of
national energy codes and standards meet or exceed the
established target, the Secretary shall select the code that
meets the target with the highest efficiency in the most
cost-effective manner, and such code shall be the national
energy efficiency building code.
``(C) Requirement to establish code.--If the Secretary does
not make a finding under subparagraph (B), the national
energy efficiency building code shall be established by rule
by the Secretary under paragraph (2).
``(2) Establishment by secretary.--
``(A) Procedure.--In order to establish a national energy
efficiency building code as required under paragraph (1)(C),
the Secretary shall--
``(i) not later than six months prior to the effective date
for each target, review existing and proposed codes published
or under review by recognized developers of national energy
codes and standards;
``(ii) determine the percentage of energy efficiency
improvements that are or would be achieved in such published
or proposed code versions relative to the target;
``(iii) propose improvements to such published or proposed
code versions sufficient to meet or exceed the target; and
``(iv) unless a finding is made under paragraph (1)(B) with
respect to a code published by a recognized developer of
national energy codes and standards, adopt a code that meets
or exceeds the relevant national building code energy
efficiency target by not later than one year after the
effective date of each such target, and by not later than 15
months after the target is established under subsection
(a)(1)(A).
``(B) Calculations.--Each national energy efficiency
building code established by the Secretary under this
paragraph shall be set at the maximum level the Secretary
determines is life cycle cost-justified and technically
feasible, in accordance with the following:
``(i) Savings calculations.--Calculations of energy savings
shall take into account the typical lifetimes of different
products, measures, and system configurations.
``(ii) Cost-effectiveness calculations.--Calculations of
life cycle cost-effectiveness shall be based on life cycle
cost methods and procedures under section 544 of the National
Energy Conservation Policy Act (42 U.S.C. 8254), but shall
incorporate to the extent feasible externalities such as
impacts on climate change and on peak energy demand that are
not already incorporated in assumed energy costs.
``(C) Considerations.--In developing a national energy
efficiency building code under this paragraph, the Secretary
shall consider--
``(i) for residential national energy efficiency building
codes--

``(I) residential building standards published or proposed
by ASHRAE;
``(II) building codes published or proposed by the
International Code Council (ICC);
``(III) data from the Residential Energy Services Network
(RESNET) on compliance measures utilized by consumers to
qualify for the residential energy efficiency tax credits
established under the Energy Policy Act of 2005;
``(IV) data and information from the Department of Energy's
Building America Program;
``(V) data and information from the Energy Star New Homes
program;
``(VI) data and information from the New Building Institute
and similar organizations; and
``(VII) standards for practices and materials to achieve
cool roofs in residential buildings, taking into
consideration reduced air conditioning energy use as a
function of cool roofs, the potential reduction in global
warming from increased solar reflectance from buildings, and
cool roofs criteria in State and local building codes and in
national and local voluntary programs, without reduction of
otherwise applicable ceiling insulation standards; and

``(ii) for commercial national energy efficiency building
codes--

``(I) commercial building standards proposed by ASHRAE;
``(II) building codes proposed by the International Code
Council (ICC);
``(III) the Core Performance Criteria published by the New
Buildings Institute;
``(IV) data and information developed by the Director of
the Commercial High-Performance Green Building Office of the
Department of Energy and any public-private partnerships
established under that Office;
``(V) data and information from the Energy Star for
Buildings program;
``(VI) data and information from the New Building
Institute, RESNET, and similar organizations; and
``(VII) standards for practices and materials to achieve
cool roofs in commercial buildings, taking into consideration
reduced air conditioning energy use as a function of cool
roofs, the potential reduction in global warming from
increased solar reflectance from buildings, and cool roofs
criteria in State and local building codes and in national
and local voluntary programs, without reduction of otherwise
applicable ceiling insulation standards.

``(D) Consultation.--In establishing any national energy
efficiency building code required by this section, the
Secretary shall consult with the Director of the National
Institute of Standards and Technology.
``(3) Consensus standard assistance.--(A) To support the
development of consensus standards that may provide the basis
for national energy efficiency building codes, minimize
duplication of effort, encourage progress through consensus,
and facilitate the development of greater building
efficiency, the Secretary shall provide assistance to
recognized developers of national energy codes and standards
to develop, and where the relevant code has been adopted as
the national code, disseminate consensus based energy
efficiency building codes as provided in this paragraph.
``(B) Upon a finding by the Secretary that a code developed
by such a developer meets a target established under
subsection (a), the Secretary shall--
``(i) send notice of the Secretary's finding to all duly
authorized or appointed State, tribal, and local code
agencies; and
``(ii) provide sufficient support to such a developer to
make the code available on the Internet, or to accomplish
distribution of such code to all such State, tribal, and
local code agencies at no cost to the State, tribal, and
local code agencies.
``(C) The Secretary may contract with such a developer and
with other organizations with expertise on codes to provide
training for State, tribal, and local code officials and
building inspectors in the implementation and enforcement of
such code.
``(D) The Secretary may provide grants and other support to
such a developer to--
``(i) develop appropriate refinements to such code; and
``(ii) support analysis of options for improvements in the
code to meet the next scheduled target.
``(4) Code developed by secretary.--If the Secretary
establishes a national energy efficiency building code under
paragraph (2), the Secretary shall--
``(A) to the extent that such code is based on a prior code
developed by a recognized developer of national energy codes
and standards, negotiate and provide appropriate compensation
to such developer for the use of the code materials that
remain in the code established by the Secretary; and
``(B) disseminate the national energy efficiency building
codes to State, tribal, and local code officials, and support
training and provide guidance and technical assistance to
such officials as appropriate.
``(c) State Adoption of Energy Efficiency Building Codes.--
``(1) Requirement.--Not later than 1 year after a national
energy efficiency building code for residential or commercial
buildings is established or revised under subsection (b),
each State--
``(A) shall--
``(i) review and update the provisions of its building code
regarding energy efficiency to meet or exceed the target met
in the new national energy efficiency building code, to
achieve equivalent or greater energy savings;
``(ii) document, where local governments establish building
codes, that local governments representing not less than 80
percent

[[Page H7507]]

of the State's urban population have adopted the new national
code, or have adopted local codes that meet or exceed the
target met in the new national code to achieve equivalent or
greater energy savings; or
``(iii) adopt the new national code; and
``(B) shall provide a certification to the Secretary
demonstrating that energy efficiency building code provisions
that apply pursuant to subparagraph (A) in that State meet or
exceed the target met by the new national code, to achieve
equivalent or greater energy savings.
``(2) Confirmation.--
``(A) Requirement.--Not later than 90 days after a State
certification is provided under paragraph (1)(B), the
Secretary shall determine whether the State's energy
efficiency building code provisions meet the requirements of
this subsection.
``(B) Acceptance by secretary.--If the Secretary determines
under subparagraph (A) that the State's energy efficiency
building code or codes meet the requirements of this
subsection, the Secretary shall accept the certification.
``(C) Deficiency notice.--If the Secretary determines under
subparagraph (A) that the State's building code or codes do
not meet the requirements of this subsection, the Secretary
shall identify the deficiency in meeting the national
building code energy efficiency target, and, to the extent
possible, indicate areas where further improvement in the
State's code provisions would allow the deficiency to be
eliminated.
``(D) Revision of code and recertification.--A State may
revise its code or codes and submit a recertification under
paragraph (1)(B) to the Secretary at any time.
``(3) Compliant code.--For the purposes of meeting the
target described in subsection (a)(1)(A) for residential
buildings, a State that adopts the code represented in
California's Title 24-2009 by the date 27 months after the
date of enactment of the American Clean Energy and Security
Act of 2009 shall be considered to have met the requirements
of this subsection for the applicable period.
``(d) Application of National Code to State and Local
Jurisdictions.--
``(1) In general.--Upon the expiration of 18 months after a
national energy efficiency building code is established under
subsection (b), in any jurisdiction where the State has not
had a certification relating to that code accepted by the
Secretary under subsection (c)(2)(B), and the local
government has not had a certification relating to that code
accepted by the Secretary under subsection (e)(5), the
national energy efficiency building code shall become the
applicable energy efficiency building code for such
jurisdiction.
``(2) Conflicts.--In the event of a conflict between a
provision of the national energy efficiency building code and
a provision of other applicable energy codes, the national
energy efficiency building code shall apply. If there is a
conflict between a provision of the national energy
efficiency building code and a provision of any applicable
fire code, life safety code, egress code, or accessibility
code, the Secretary shall take appropriate actions to resolve
such conflict in a manner that does not compromise the
objectives of such codes.
``(3) State legislative adoption.--In a State in which the
relevant building energy code is adopted legislatively, the
deadline in paragraph (1) shall not be earlier than 1 year
after the first day that the legislature meets following
establishment of a national energy efficiency building code.
``(4) Notice of intent to enforce.--A State or locality
that enforces building codes may assume responsibility for
enforcing the national energy efficiency building code by
notifying the Secretary to that effect not later than three
months after the date established under paragraph (1).
``(5) Violations.--Violations of this section shall be
defined as follows:
``(A) If the building is subject to the requirements of a
State energy efficiency building code with respect to which a
certification has been accepted by the Secretary under
subsection (c)(2)(B) or a local energy efficiency building
code with respect to which a certification has been accepted
by the Secretary pursuant to subsection (e)(5), or the
requirements of the national energy efficiency building code
in a State where the State or locality has notified the
Secretary of its intent to enforce the provisions of the
national energy efficiency building code, a violation shall
be determined pursuant to the relevant provisions of State or
local law.
``(B) If the building is subject to the requirements of a
national energy efficiency building code made applicable
under paragraph (1) of this subsection, except as provided in
subparagraph (A), a violation shall be defined by the
Secretary pursuant to subsection (g).
``(e) State Enforcement of Energy Efficiency Building
Codes.--
``(1) In general.--Each State, or where applicable under
State law each local government, shall implement and enforce
applicable State or local codes with respect to which a
certification was accepted by the Secretary under subsection
(c)(2)(B) or paragraph (5) of this subsection, or the
national energy efficiency building codes, as provided in
this subsection.
``(2) State certification.--Not later than 2 years after
the date of a certification under subsection (c)(1) or the
application of a national energy efficiency building code
under subsection (d)(1), each State shall certify that it
has--
``(A) achieved compliance with--
``(i) State codes, or, as provided under State law, local
codes, with respect to which a certification was accepted by
the Secretary under subsection (c)(2)(B); or
``(ii) the national energy efficiency building code, as
applicable; or
``(B) for any certification submitted within 7 years after
the date of enactment of the American Clean Energy and
Security Act of 2009, made significant progress toward
achieving such compliance.
``(3) Achieving compliance.--A State shall be considered to
achieve compliance with a code described in paragraph (2)(A)
if at least 90 percent of new and substantially renovated
building space in that State in the preceding year upon
inspection meets the requirements of the code. A
certification under paragraph (2) shall include documentation
of the rate of compliance based on--
``(A) independent inspections of a random sample of the new
and substantially renovated buildings covered by the code in
the preceding year; or
``(B) an alternative method that yields an accurate measure
of compliance as determined by the Secretary.
``(4) Significant progress.--A State shall be considered to
have made significant progress toward achieving compliance
with a code described in paragraph (2)(A) if--
``(A) the State has developed a plan, including for hiring
enforcement staff, providing training, providing manuals and
checklists, and instituting enforcement programs, designed to
achieve full compliance within 5 years after the date of the
adoption of the code;
``(B) the State is taking significant, timely, and
measurable action to implement that plan;
``(C) the State has not reduced its expenditures for code
enforcement; and
``(D) at least 50 percent of new and substantially
renovated building space in the State in the preceding year
upon inspection meets the requirements of the code.
``(5) Secretary's determination.--Not later than 90 days
after a State certification under paragraph (2), the
Secretary shall determine whether the State has demonstrated
that it has complied with the requirements of this
subsection, including accurate measurement of compliance, or
that it has made significant progress toward compliance. If
such determination is positive, the Secretary shall accept
the certification. If the determination is negative, the
Secretary shall identify the areas of deficiency.
``(6) Out of compliance.--
``(A) In general.--Any State for which the Secretary has
not accepted a certification under paragraph (5) by the dates
specified in paragraph (2) is out of compliance with this
section.
``(B) Local compliance.--In any State that is out of
compliance with this section as provided in subparagraph (A),
a local government may be in compliance with this section by
meeting all certification requirements of this subsection.
``(C) Noncompliance.--Any State that is not in compliance
with this section, as provided in subparagraph (A), shall,
until the State regains such compliance, be ineligible to
receive--
``(i) emission allowances pursuant to subsection (h)(1);
``(ii) Federal funding in excess of that State's share
(calculated according to the allocation formula in section
363 of the Energy Policy and Conservation Act (42 U.S.C.
6323)) of $125,000,000 each year; and
``(iii) for--

``(I) the first year for which the State is out of
compliance, 25 percent of any additional funding or other
items of monetary value otherwise provided under the American
Clean Energy and Security Act of 2009;
``(II) the second year for which the State is out of
compliance, 50 percent of any additional funding or other
items of monetary value otherwise provided under the American
Clean Energy and Security Act of 2009;
``(III) the third year for which the State is out of
compliance, 75 percent of any additional funding or other
items of monetary value otherwise provided under the American
Clean Energy and Security Act of 2009; and
``(IV) the fourth and subsequent years for which the State
is out of compliance, 100 percent of any additional funding
or other items of monetary value otherwise provided under the
American Clean Energy and Security Act of 2009.

``(f) Federal Enforcement and Training.--Where a State
fails and local governments in that State also fail to
enforce the applicable State or national energy efficiency
building codes, the Secretary shall enforce such codes, as
follows:
``(1) The Secretary shall establish, by rule, within 2
years after the date of enactment of the American Clean
Energy and Security Act of 2009, an energy efficiency
building code enforcement capability.
``(2) Such enforcement capability shall be designed to
achieve 90 percent compliance with such code in any State
within 1 year after the date of the Secretary's determination
that such State is out of compliance with this section.
``(3) The Secretary may set and collect reasonable
inspection fees to cover the costs of inspections required
for such enforcement. Revenue from fees collected shall be
available to the Secretary to carry out the requirements of
this section upon appropriation.

[[Page H7508]]

``(4) In any jurisdiction to which this subsection applies,
the Secretary shall coordinate enforcement of the national
energy efficiency building code with State and local code
enforcement of other building codes.
``(5) In any jurisdiction to which this subsection applies,
the Secretary shall enhance compliance by conducting training
and education of builders and other professionals in the
jurisdiction concerning the national energy efficiency
building code.
``(6) The Secretary shall coordinate with professional
organizations representing code officials, architects,
engineers, builders, and other experts to develop training
curricula concerning the national energy efficiency building
code.
``(7) If the Secretary enforces such codes under this
subsection, the Secretary may, as appropriate, redefine
violations of such codes.
``(g) Enforcement Procedures.--The Secretary shall propose
and, not later than three years after the date of enactment
of the American Clean Energy and Security Act of 2009, shall
define by rule violations of the energy efficiency building
codes to be enforced by the Secretary pursuant to this
section, and the penalties that shall apply to violators, in
any jurisdiction in which the national energy efficiency
building code has been made applicable under subsection
(d)(1). To the extent that the Secretary determines that the
authority to adopt and impose such violations and penalties
by rule requires further statutory authority, the Secretary
shall report such determination to Congress as soon as such
determination is made, but not later than one year after the
enactment of the American Clean Energy and Security Act of
2009.
``(h) Federal Support.--
``(1) Allowance allocation for state compliance.--For each
vintage year from 2012 through 2050, the Administrator shall
distribute allowances allocated pursuant to section 782(g)(2)
of the Clean Air Act to the SEED Account for each State. Such
allowances shall be distributed according to a formula
established by the Secretary as follows:
``(A) One-fifth in an equal amount to each of the 50 States
and United States territories.
``(B) Two-fifths as a function of the relative energy use
in all buildings in each State in the most recent year for
which data is available.
``(C) Two-fifths based on the number of building
construction starts recorded in each State, the number of new
building permits applied for in each State, or other relevant
available data indicating building activity in each State, in
the judgment of the Secretary, for the year prior to the year
of the distribution.
``(2) Allowance allocation to local governments.--In the
instance that the Secretary certifies that one or more local
governments are in compliance with this section pursuant to
subsection (e)(6)(B), the Administrator shall provide to each
such local government the portion of the emission allowances
that would have been provided to that State as a function of
the population of that locality as a proportion of the
population of that State as a whole.
``(3) Unallocated allowances.--To the extent that
allowances are not provided to State or local governments for
lack of certification in any year, those allowances shall be
added to the amount provided to those States and local
governments that are certified as eligible in that year.
``(4) Use of allowances.--Each State or each local
government shall use such emission allowances as it receives
pursuant to this section exclusively for the purposes of this
section, including covering a reasonable portion of the costs
of the development, adoption, implementation, and enforcement
of a State or local energy efficiency building code that
meets the national building code energy efficiency targets,
or the national energy efficiency building code. In a State
where local governments provide substantially all building
code enforcement, a minimum of 50 percent of the allowance
value received pursuant to this section shall be distributed
to local governments as a function of the relative
populations of such localities. In a State where local and
State governments share building code enforcement duties, the
State and local shares of allowance value required for
enforcement shall be allocated in proportion to the number of
building inspections performed by each level of government,
and the share for local governments shall be distributed as a
function of the relative populations of such localities.
States shall further ensure that the allowance value made
available pursuant to section 782 of the Clean Air Act and
section 132 of the American Clean Energy and Security Act of
2009 is provided to the applicable State or local
governmental entities as necessary to adopt and implement
energy efficiency building codes, provide training for
inspectors, ensure compliance, and provide such other
functions as necessary. Actions taken by local authorities
pursuant to this section shall constitute an acceptable use
of funds authorized pursuant to the Energy Efficiency and
Conservation Block Grant program under section 544 of the
Energy Independence and Security Act of 2007 (42 U.S.C.
17154).
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary of Energy
$25,000,000, and such additional sums as may be necessary to
provide enforcement of a national energy efficiency building
code, for each of fiscal years 2010 through 2020, and such
sums thereafter as may be necessary to support the purposes
of this section.
``(j) Annual Reports by Secretary.--The Secretary shall
annually submit to Congress, and publish in the Federal
Register, a report on--
``(1) the status of national energy efficiency building
codes;
``(2) the status of energy efficiency building code
adoption and compliance in the States;
``(3) the implementation of this section;
``(4) the status of Federal enforcement of building codes,
including coordination with State and local enforcement, and
the extent and resolution of any conflicts between the
national energy efficiency building code and other
residential and commercial building codes in force in the
same jurisdictions; and
``(5) impacts of past action under this section, and
potential impacts of further action, on lifetime energy use
by buildings, including resulting energy and cost savings.''.

SEC. 202. BUILDING RETROFIT PROGRAM.

(a) Definitions.--For purposes of this section:
(1) Assisted housing.--The term ``assisted housing'' means
those properties receiving project-based assistance pursuant
to section 202 of the Housing Act of 1959 (12 U.S.C. 1701q),
section 811 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013), section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f), or similar programs.
(2) Nonresidential building.--The term ``nonresidential
building'' means a building with a primary use or purpose
other than residential housing, including any building used
for commercial offices, schools, academic and other public
and private institutions, nonprofit organizations including
faith-based organizations, hospitals, hotels, and other
nonresidential purposes. Such buildings shall include mixed-
use properties used for both residential and nonresidential
purposes in which more than half of building floor space is
nonresidential.
(3) Performance-based building retrofit program.--The term
``performance-based building retrofit program'' means a
program that determines building energy efficiency success
based on actual measured savings after a retrofit is
complete, as evidenced by energy invoices or evaluation
protocols.
(4) Prescriptive building retrofit program.--The term
``prescriptive building retrofit program'' means a program
that projects building retrofit energy efficiency success
based on the known effectiveness of measures prescribed to be
included in a retrofit.
(5) Public housing.--The term ``public housing'' means
properties receiving assistance under section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g).
(6) Recommissioning; retrocommissioning.--The terms
``recommissioning'' and ``retrocommissioning'' have the
meaning given those terms in section 543(f)(1) of the
National Energy Conservation Policy Act (42 U.S.C.
8253(f)(1)).
(7) Residential building.--The term ``residential
building'' means a building whose primary use is residential.
Such buildings shall include single-family homes (both
attached and detached), owner-occupied units in larger
buildings with their own dedicated space-conditioning
systems, apartment buildings, multi-unit condominium
buildings, public housing, assisted housing, and buildings
used for both residential and nonresidential purposes in
which more than half of building floor space is residential.
(8) State energy program.--The term ``State Energy
Program'' means the program under part D of title III of the
Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
(b) Establishment.--The Administrator shall develop and
implement, in consultation with the Secretary of Energy,
standards for a national energy and environmental building
retrofit policy for single-family and multifamily residences.
The Administrator shall develop and implement, in
consultation with the Secretary of Energy and the Director of
Commercial High-Performance Green Buildings, standards for a
national energy and environmental building retrofit policy
for nonresidential buildings. The programs to implement the
residential and nonresidential policies based on the
standards developed under this section shall together be
known as the Retrofit for Energy and Environmental
Performance (REEP) program.
(c) Purpose.--The purpose of the REEP program is to
facilitate the retrofitting of existing buildings across the
United States to achieve maximum cost-effective energy
efficiency improvements and significant improvements in water
use and other environmental attributes.
(d) Federal Administration.--
(1) Existing programs.--In creating and operating the REEP
program--
(A) the Administrator shall make appropriate use of
existing programs, including the Energy Star program and in
particular the Environmental Protection Agency Energy Star
for Buildings program; and
(B) the Secretary of Energy shall make appropriate use of
existing programs, including delegating authority to the
Director of Commercial High-Performance Green Buildings
appointed under section 421 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17081), who shall designate
and provide funding to support a high-performance

[[Page H7509]]

green building partnership consortium pursuant to subsection
(f) of such section to support efforts under this section.
(2) Consultation and coordination.--The Administrator and
the Secretary of Energy shall consult with and coordinate
with the Secretary of Housing and Urban Development in
carrying out the REEP program with regard to retrofitting of
public housing and assisted housing. As a result of such
consultation, the Administrator shall establish standards to
ensure that retrofits of public housing and assisted housing
funded pursuant to this section are cost-effective, including
opportunities to address the potential co-performance of
repair and replacement needs that may be supported with other
forms of Federal assistance. ``Owners of public housing or
assited housing receiving funding through the REEP program
shall agree to continue to provide affordable housing
consistent with the provisions of the authorizing legislation
governing each program for an additional period commensurate
with the funding received, as determined in accordance with
guidelines established by the Secretary of Housing and Urban
Development.''
(3) Assistance.--The Administrator and the Secretary of
Energy shall provide consultation and assistance to State and
local agencies for the establishment of revolving loan funds,
loan guarantees, or other forms of financial assistance under
this section.
(e) State and Local Administration.--
(1) Designation and delegation.--A State may designate one
or more agencies or entities, including those regulated by
the State, to carry out the purposes of this section, but
shall designate one entity or individual as the principal
point of contact for the Administrator regarding the REEP
Program. The designated State agency, agencies, or entities
may delegate performance of appropriate elements of the REEP
program, upon their request and subject to State law, to
counties, municipalities, appropriate public agencies, and
other divisions of local government, as well as to entities
regulated by the State. In making any such designation or
delegation, a State shall give priority to entities that
administer existing comprehensive retrofit programs,
including those under the supervision of State utility
regulators. States shall maintain responsibility for meeting
the standards and requirements of the REEP program. In any
State that elects not to administer the REEP program, a unit
of local government may propose to do so within its
jurisdiction, and if the Administrator finds that such local
government is capable of administering the program, the
Administrator may provide allowances to that local
government, prorated according to the population of the local
jurisdiction relative to the population of the State, for
purposes of the REEP program.
(2) Employment.--States and local government entities may
administer a REEP program in a manner that authorizes public
or regulated investor-owned utilities, building auditors and
inspectors, contractors, nonprofit organizations, for-profit
companies, and other entities to perform audits and retrofit
services under this section. A State may provide incentives
for retrofits without direct participation by the State or
its agents, so long as the resulting savings are measured and
verified. A State or local administrator of a REEP program
shall seek to ensure that sufficient qualified entities are
available to support retrofit activities so that building
owners have a competitive choice among qualified auditors,
raters, contractors, and providers of services related to
retrofits. Nothing in this section is intended to deny the
right of a building owner to choose the specific providers of
retrofit services to engage for a retrofit project in that
owner's building.
(3) Equal incentives for equal improvement.--In general,
the States should strive to offer the same levels of
incentives for retrofits that meet the same efficiency
improvement goals, regardless of whether the State, its
agency or entity, or the building owner has conducted the
retrofit achieving the improvement, provided the improvement
is measured and verified.
(f) Elements of Reep Program.--The Administrator, in
consultation with the Secretary of Energy, shall establish
goals, guidelines, practices, and standards for accomplishing
the purpose stated in subsection (c), and shall annually
review and, as appropriate, revise such goals, guidelines,
practices, and standards. The program under this section
shall include the following:
(1) Residential Energy Services Network (RESNET) or
Building Performance Institute (BPI) analyst certification of
residential building energy and environment auditors,
inspectors, and raters, or an equivalent certification system
as determined by the Administrator.
(2) BPI certification or licensing by States of residential
building energy and environmental retrofit contractors, or an
equivalent certification or licensing system as determined by
the Administrator.
(3) Provision of BPI, RESNET, or other appropriate
information on equipment and procedures, as determined by the
Administrator, that contractors can use to test the energy
and environmental efficiency of buildings effectively (such
as infrared photography and pressurized testing, and tests
for water use and indoor air quality).
(4) Provision of clear and effective materials to describe
the testing and retrofit processes for typical buildings.
(5) Guidelines for offering and managing prescriptive
building retrofit programs and performance-based building
retrofit programs for residential and nonresidential
buildings.
(6) Guidelines for applying recommissioning and
retrocommissioning principles to improve a building's
operations and maintenance procedures.
(7) A requirement that building retrofits conducted
pursuant to a REEP program utilize, especially in all air-
conditioned buildings, roofing materials with high solar
energy reflectance, unless inappropriate due to green roof
management, solar energy production, or for other reasons
identified by the Administrator, in order to reduce energy
consumption within the building, increase the albedo of the
building's roof, and decrease the heat island effect in the
area of the building, without reduction of otherwise
applicable ceiling insulation standards.
(8) Determination of energy savings in a performance-based
building retrofit program through--
(A) for residential buildings, comparison of before and
after retrofit scores on the Home Energy Rating System (HERS)
Index, where the final score is produced by an objective
third party;
(B) for nonresidential buildings, Environmental Protection
Agency Portfolio Manager benchmarks; or
(C) for either residential or nonresidential buildings, use
of an Administrator-approved simulation program by a
contractor with the appropriate certification, subject to
appropriate software standards and verification of at least
15 percent of all work done, or such other percentage as the
Administrator may determine.
(9) Guidelines for utilizing the Energy Star Portfolio
Manager, the Home Energy Rating System (HERS) rating system,
Home Performance with Energy Star program approvals, and any
other tools associated with the retrofit program.
(10) Requirements and guidelines for post-retrofit
inspection and confirmation of work and energy savings.
(11) Detailed descriptions of funding options for the
benefit of State and local governments, along with model
forms, accounting aids, agreements, and guides to best
practices.
(12) Guidance on opportunities for--
(A) rating or certifying retrofitted buildings as Energy
Star buildings, or as green buildings under a recognized
green building rating system;
(B) assigning Home Energy Rating System (HERS) or similar
ratings; and
(C) completing any applicable building performance labels.
(13) Sample materials for publicizing the program to
building owners, including public service announcements and
advertisements.
(14) Processes for tracking the numbers and locations of
buildings retrofitted under the REEP program, with
information on projected and actual savings of energy and its
value over time.
(g) Requirements.--As a condition of receiving allowances
for the REEP program pursuant to this Act, a State or
qualifying local government shall--
(1) adopt the standards for training, certification of
contractors, certification of buildings, and post-retrofit
inspection as developed by the Administrator for residential
and nonresidential buildings, respectively, except as
necessary to match local conditions, needs, efficiency
opportunities, or other local factors, or to accord with
State laws or regulations, and then only after the
Administrator approves such a variance;
(2) establish fiscal controls and accounting procedures
(which conform to generally accepted government accounting
principles) sufficient to ensure proper accounting during
appropriate accounting periods for payments received and
disbursements, and for fund balances; and
(3) agree to make not less than 10 percent of allowance
value received pursuant to section 132(c)(2) for dedicated
funding of its REEP program available on a preferential basis
for retrofit projects proposed for public housing and
assisted housing, provided that--
(A) none of such funds shall be used for demolition of such
housing;
(B) such retrofits shall not be used to justify any
increase in rents charged to residents of such housing; and
(C) owners of such housing shall agree to continue to
provide affordable housing consistent with the provisions of
the authorizing legislation governing each program for an
additional period commensurate with the funding received.

The Administrator shall conduct or require each State to have
such independent financial audits of REEP-related funding as
the Administrator considers necessary or appropriate to carry
out the purposes of this section.
(h) Options to Support Reep Program.--The emission
allowances provided pursuant to this Act to the States SEED
Accounts shall support the implementation through State REEP
programs of alternate means of creating incentives for, or
reducing financial barriers to, improved energy and
environmental performance in buildings, consistent with this
section, including--
(1) implementing prescriptive building retrofit programs
and performance-based building retrofit programs;
(2) providing credit enhancement, interest rate subsidies,
loan guarantees, or other credit support;

[[Page H7510]]

(3) providing initial capital for public revolving fund
financing of retrofits, with repayments by beneficiary
building owners over time through their tax payments,
calibrated to create net positive cash flow to the building
owner;
(4) providing funds to support utility-operated retrofit
programs with repayments over time through utility rates,
calibrated to create net positive cash flow to the building
owner, and transferable from one building owner to the next
with the building's utility services;
(5) providing funds to local government programs to provide
REEP services and financial assistance; and
(6) other means proposed by State and local agencies,
subject to the approval of the Administrator.
(i) Support for Program.--
(1) Use of allowances.--Direct Federal support for the REEP
program is provided through the emission allowances allocated
to the States' SEED Accounts pursuant to section 132 of this
Act. To the extent that a State provides allowances to local
governments within the State to implement elements of the
REEP Program, that shall be deemed a distribution of such
allowances to units of local government pursuant to
subsection (c)(1) of that section.
(2) Initial award limits.--Except as provided in paragraph
(3), State and local REEP programs may make per-building
direct expenditures for retrofit improvements, or their
equivalent in indirect or other forms of financial support,
from funds derived from the sale of allowances received
directly from the Administrator in amounts not to exceed the
following amounts per unit:
(A) Residential building program.--
(i) Awards.--For residential buildings--

(I) support for a free or low-cost detailed building energy
audit that prescribes measures sufficient to achieve at least
a 20 percent reduction in energy use, by providing an
incentive equal to the documented cost of such audit, but not
more than $200, in addition to any earned by achieving a 20
percent or greater efficiency improvement;
(II) a total of $1,000 for a combination of measures,
prescribed in an audit conducted under subclause (I),
designed to reduce energy consumption by more than 10
percent, and $2,000 for a combination of measures prescribed
in such an audit, designed to reduce energy consumption by
more than 20 percent;
(III) $3,000 for demonstrated savings of 20 percent,
pursuant to a performance-based building retrofit program;
and
(IV) $1,000 for each additional 5 percentage points of
energy savings achieved beyond savings for which funding is
provided under subclause (II) or (III).

Funding shall not be provided under clauses (II) and (III)
for the same energy savings.
(ii) Maximum percentage.--Awards under clause (i) shall not
exceed 50 percent of retrofit costs for each building. For
buildings with multiple residential units, awards under
clause (i) shall not be greater than 50 percent of the total
cost of retrofitting the building, prorated among individual
residential units on the basis of relative costs of the
retrofit. In the case of public housing and assisted housing,
the 50 percent contribution matching the contribution from
REEP program funds may come from any other source, including
other Federal funds.
(iii) Additional awards.--Additional awards may be provided
for purposes of increasing energy efficiency, for buildings
achieving at least 20 percent energy savings using funding
provided under clause (i), in the form of grants of not more
than $600 for measures projected or measured (using an
appropriate method approved by the Administrator) to achieve
at least 35 percent potable water savings through equipment
or systems with an estimated service life of not less than
seven years, and not more than an additional $20 may be
provided for each additional one percent of such savings, up
to a maximum total grant of $1,200.
(B) Nonresidential building program.--
(i) Awards.--For nonresidential buildings--

(I) support for a free or low-cost detailed building energy
audit that prescribes, as part of a energy-reducing measures
sufficient to achieve at least a 20 percent reduction in
energy use, by providing an incentive equal to the documented
cost of such audit, but not more than $500, in addition to
any award earned by achieving a 20 percent or greater
efficiency improvement;
(II) $0.15 per square foot of retrofit area for
demonstrated energy use reductions from 20 percent to 30
percent;
(III) $0.75 per square foot for demonstrated energy use
reductions from 30 percent to 40 percent;
(IV) $1.60 per square foot for demonstrated energy use
reductions from 40 percent to 50 percent; and
(V) $2.50 per square foot for demonstrated energy use
reductions exceeding 50 percent.

(ii) Maximum percentage.--Amounts provided under subclauses
(II) through (V) of clause (i) combined shall not exceed 50
percent of the total retrofit cost of a building. In
nonresidential buildings with multiple units, such awards
shall be prorated among individual units on the basis of
relative costs of the retrofit.
(iii) Additional awards.--Additional awards may be
provided, for buildings achieving at least 20 percent energy
savings using funding provided under clause (i), as follows:

(I) Water.--For purposes of increasing energy efficiency,
grants may be made for whole building potable water use
reduction (using an appropriate method approved by the
Administrator) for up to 50 percent of the total retrofit
cost, including amounts up to--

(aa) $24.00 per thousand gallons per year of potable water
savings of 40 percent or more;
(bb) $27.00 per thousand gallons per year of potable water
savings of 50 percent or more; and
(cc) $30.00 per thousand gallons per year of potable water
savings of 60 percent or more.

(II) Environmental improvements.--Additional awards of up
to $1,000 may be granted for the inclusion of other
environmental attributes that the Administrator, in
consultation with the Secretary, identifies as contributing
to energy efficiency. Such attributes may include, but are
not limited to waste diversion and the use of environmentally
preferable materials (including salvaged, renewable, or
recycled materials, and materials with no or low-VOC
content). The Administrator may recommend that States develop
such standards as are necessary to account for local or
regional conditions that may affect the feasibility or
availability of identified resources and attributes.

(iv) Indoor air quality minimum.--Nonresidential buildings
receiving incentives under this section must satisfy at a
minimum the most recent version of ASHRAE Standard 62.1 for
ventilation, or the equivalent as determined by the
Administrator. A State may issue a waiver from this
requirement to a building project on a showing that such
compliance is infeasible due to the physical constraints of
the building's existing ventilation system, or such other
limitations as may be specified by the Administrator.
(C) Disaster damaged buildings.--Any source of funds,
including Federal funds provided through the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, shall
qualify as the building owner's 50 percent contribution, in
order to match the contribution of REEP funds, so long as the
REEP funds are only used to improve the energy efficiency of
the buildings being reconstructed. In addition, the
appropriate Federal agencies providing assistance to building
owners through the Robert T. Stafford Disaster Relief and
Emergency Assistance Act shall make information available,
following a disaster, to building owners rebuilding disaster
damaged buildings with assistance from the Act, that REEP
funds may be used for energy efficiency improvements.
(D) Historic buildings.--Notwithstanding subparagraphs (A)
and (B), a building in or eligible for the National Register
of Historic Places shall be eligible for awards under this
paragraph in amounts up to 120 percent of the amounts set
forth in subparagraphs (A) and (B).
(E) Supplemental support.--State and local governments may
supplement the per-building expenditures under this paragraph
with funding from other sources.
(3) Adjustment.--The Administrator may adjust the specific
dollar limits funded by the sale of allowances pursuant to
paragraph (2) in years subsequent to the second year after
the date of enactment of this Act, and every 2 years
thereafter, as the Administrator determines necessary to
achieve optimum cost-effectiveness and to maximize incentives
to achieve energy efficiency within the total building award
amounts provided in that paragraph, and shall publish and
hold constant such revised limits for at least 2 years.
(j) Report to Congress.--The Administrator shall conduct an
annual assessment of the achievements of the REEP program in
each State, shall prepare an annual report of such
achievements and any recommendations for program
modifications, and shall provide such report to Congress at
the end of each fiscal year during which funding or other
resources were made available to the States for the REEP
Program.
(k) Other Sources of Federal Support.--
(1) Additional state energy program funds.--Any Federal
funding provided to a State Energy Program that is not
required to be expended for a different federally designated
purpose may be used to support a REEP program.
(2) Program administration.--State Energy Offices or
designated State agencies may expend up to 10 percent of
available allowance value provided under this section for
program administration.
(3) Authorization of appropriations.--There are authorized
to be appropriated for the purposes of this section, for each
of fiscal years 2010, 2011, 2012, and 2013--
(A) $50,000,000 to the Administrator for program
administration costs; and
(B) $20,000,000 to the Secretary of Energy for program
administration costs.

SEC. 203. ENERGY EFFICIENT MANUFACTURED HOMES.

(a) Definitions.--In this section:
(1) Manufactured home.--The term ``manufactured home'' has
the meaning given such term in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402).
(2) Energy star qualified manufactured home.--The term
``Energy Star qualified manufactured home'' means a
manufactured home that has been designed, produced, and
installed in accordance with Energy Star's guidelines by an
Energy Star certified plant.
(b) Purpose.--The purpose of this section is to assist low-
income households residing in manufactured homes constructed
prior to 1976 to save energy and energy expenditures by
providing support toward the purchase of

[[Page H7511]]

new Energy Star qualified manufactured homes.
(c) State Implementation of Program.--
(1) Manufactured home replacement program.--Any State may
provide to the owner of a manufactured home constructed prior
to 1976 a rebate to use toward the purchase of a new Energy
Star qualified manufactured home pursuant to this section.
(2) Use of allowances.--Direct Federal support for the
program established in this section is provided through the
emission allowances allocated to the States' SEED Accounts
pursuant to section 132 of this Act. To the extent that a
State provides allowances to local governments within the
State to implement this program, that shall be deemed a
distribution of such allowances to units of local government
pursuant to subsection (c)(1) of that section.
(3) Rebates.--
(A) Primary residence requirement.--A rebate described
under paragraph (1) may only be made to an owner of a
manufactured home constructed prior to 1976 that is used on a
year-round basis as a primary residence.
(B) Dismantling and replacement.--A rebate described under
paragraph (1) may be made only if the manufactured home
constructed prior to 1976 will be--
(i) rendered unusable for human habitation (including
appropriate recycling); and
(ii) replaced, in the same general location, as determined
by the applicable State agency, with an Energy Star qualified
manufactured home.
(C) Single rebate.--A rebate described under paragraph (1)
may not be provided to any owner of a manufactured home
constructed prior to 1976 that was or is a member of a
household for which any other member of the household was
provided a rebate pursuant to this section.
(D) Eligible households.--To be eligible to receive a
rebate described under paragraph (1), an owner of a
manufactured home constructed prior to 1976 shall demonstrate
to the applicable State agency that the total income of all
members the owner's household does not exceed 200 percent of
the Federal poverty level for income in the applicable area.
(E) Advance availability.--A rebate may be provided under
this section in a manner to facilitate the purchase of a new
Energy Star qualified manufactured home.
(4) Rebate limitation.--Rebates provided by States under
this section shall not exceed $7,500 per manufactured home
from any value derived from the use of emission allowances
provided to the State pursuant to section 132.
(5) Use of state funds.--A State providing rebates under
this section may supplement the amount of such rebates under
paragraph (4) by any additional amount is from State funds
and other sources, including private donations or grants from
charitable organizations.
(6) Coordination with similar programs.--
(A) State programs.--A State conducting an existing program
that has the purpose of replacing manufactured homes
constructed prior to 1976 with Energy Star qualified
manufactured homes, may use allowance value provided under
section 782 of the Clean Air Act to support such a program,
provided such funding does not exceed the rebate limitation
amount under paragraph (4).
(B) Federal programs.--The Secretary of Energy shall
coordinate with and seek to achieve the purpose of this
section through similar Federal programs including--
(i) the Weatherization Assistance Program under part A of
title IV of the Energy Conservation and Production Act (42
U.S.C. 6861 et seq.); and
(ii) the program under part D of title III of the Energy
Policy and Conservation Act (42 U.S.C. 6321 et seq.).
(C) Coordination with other state agencies.--A State agency
using allowance value to administer the program under this
section may coordinate its efforts, and share funds for
administration, with other State agencies involved in low-
income housing programs.
(7) Administrative expenses.--A State using allowance value
under this section may expend not more than 10 percent of
such value for administrative expenses related to this
program.

SEC. 204. BUILDING ENERGY PERFORMANCE LABELING PROGRAM.

(a) Establishment.--
(1) Purpose.--The Administrator shall establish a building
energy performance labeling program with broad applicability
to the residential and commercial markets to enable and
encourage knowledge about building energy performance by
owners and occupants and to inform efforts to reduce energy
consumption nationwide.
(2) Components.--In developing such program, the
Administrator shall--
(A) consider existing programs, such as Environmental
Protection Agency's Energy Star program, the Home Energy
Rating System (HERS) Index, and programs at the Department of
Energy;
(B) support the development of model performance labels for
residential and commercial buildings; and
(C) utilize incentives and other means to spur use of
energy performance labeling of public and private sector
buildings nationwide.
(b) Data Assessment for Building Energy Performance.--
(1) Initial report.--Not later than 90 days after the date
of enactment of this Act, the Administrator shall provide to
Congress, as well as to the Secretary of Energy and the
Office of Management and Budget, a report identifying--
(A) all principal building types for which statistically
significant energy performance data exists to serve as the
basis of measurement protocols and labeling requirements for
achieved building energy performance; and
(B) those building types for which additional data are
required to enable the development of such protocols and
requirements.
(2) Additional reports.--Additional updated reports shall
be provided under this subsection as often as The
Administrator considers practicable, but not less than every
2 years.
(c) Building Data Acquisition.--
(1) Resource requirements.--For all principal building
types identified under subsection (b), the Secretary of
Energy, not later than 90 days after a report by the
Administrator under subsection (b), shall provide to
Congress, the Administrator, and the Office of Management and
Budget a statement of additional resources needed, if any, to
fully develop the relevant data, as well as the anticipated
timeline for data development.
(2) Consultation.--The Secretary of Energy shall consult
with the Administrator concerning the Administrator's ability
to use data series for these additional building types to
support the achieved performance component in the labeling
program.
(3) Improvements to building energy consumption
databases.--
(A) Commercial database.--The Secretary of Energy shall
support improvements to the Commercial Buildings Energy
Consumption Survey (CBECS) as authorized by section 205(k) of
the Department of Energy Organization Act (42 U.S.C.
7135(k))--
(i) to enable complete and robust data for the actual
energy performance of principal building types currently
covered by survey;
(ii) to cover additional building types as identified by
the Administrator under subsection (b)(1)(B), to enable the
development of achieved performance measurement protocols are
developed for at least 90 percent of all major commercial
building types within 5 years after the date of enactment of
this Act; and
(iii) to include third-party audits of random data
samplings to ensure the quality and accuracy of survey
information.
(B) Residential databases.--The Administrator, in
consultation with the Energy Information Administration and
the Secretary of Energy, shall support improvements to the
Residential Energy Consumption Survey (RECS) as authorized by
section 205(k) of the Department of Energy Organization Act
(42 U.S.C. 7135(k)), or such other residential energy
performance databases as the Administrator considers
appropriate, to aid the development of achieved performance
measurement protocols for residential building energy use for
at least 90 percent of the residential market within 5 years
after the date of enactment of this Act.
(C) Consultation.--The Secretary of Energy and the
Administrator shall consult with public, private, and
nonprofit sector representatives from the building industry
and real estate industry to assist in the evaluation and
improvement of building energy performance databases and
labeling programs.
(d) Identification of Measurement Protocols for Achieved
Performance.--
(1) Proposed protocols and requirements.--At the earliest
practicable date, but not later than 1 year after identifying
a building type under subsection (b)(1)(A), the Administrator
shall propose a measurement protocol for that building type
and a requirement detailing how to use that protocol in
completing applicable commercial or residential performance
labels created pursuant to this section.
(2) Final rule.--After providing for notice and comment,
the Administrator shall publish a final rule containing a
measurement protocol and the corresponding requirements for
applying that protocol. Such a rule--
(A) shall define the minimum period for measurement of
energy use by buildings of that type and other details for
determining achieved performance, to include leased buildings
or parts thereof;
(B) shall identify necessary data collection and record
retention requirements; and
(C) may specify transition rules and exemptions for classes
of buildings within the building type.
(e) Procedures for Evaluating Designed Performance.--The
Administrator shall develop protocols for evaluating the
designed performance of individual building types. The
Administrator may conduct such feasibility studies and
demonstration projects as are necessary to evaluate the
sufficiency of proposed protocols for designed performance.
(f) Creation of Building Energy Performance Labeling
Program.--
(1) Model label.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall propose a
model building energy label that provides a format--
(A) to display achieved performance and designed
performance data;
(B) that may be tailored for residential and commercial
buildings, and for single-occupancy and multitenanted
buildings; and
(C) to display other appropriate elements identified during
the development of measurement protocols under subsections
(d) and (e).

[[Page H7512]]

(2) Inclusions.--Nothing in this section shall require the
inclusion on such a label of designed performance data where
impracticable or not cost effective, or to preclude the
display of both achieved performance and designed performance
data for a particular building where both such measures are
available, practicable, and cost effective.
(3) Existing programs.--In developing the model label, the
Administrator shall consider existing programs, including--
(A) the Environmental Protection Agency's Energy Star
Portfolio Manager program and the California HERS II Program
Custom Approach for the achieved performance component of the
label;
(B) the Home Energy Rating System (HERS) Index system for
the designed performance component of the label; and
(C) other Federal and State programs, including the
Department of Energy's related programs on building
technologies and those of the Federal Energy Management
Program.
(4) Final rule.--After providing for notice and comment,
the Administrator shall publish a final rule containing the
label applicable to covered building types.
(g) Demonstration Projects for Labeling Program.--
(1) In general.--The Administrator shall conduct building
energy performance labeling demonstration projects for
different building types--
(A) to ensure the sufficiency of the current Commercial
Buildings Energy Consumption Survey and other data to serve
as the basis for new measurement protocols for the achieved
performance component of the building energy performance
labeling program;
(B) to inform the development of measurement protocols for
building types not currently covered by the Commercial
Buildings Energy Consumption Survey; and
(C) to identify any additional information that needs to be
developed to ensure effective use of the model label.
(2) Participation.--Such demonstration projects shall
include participation of--
(A) buildings from diverse geographical and climate
regions;
(B) buildings in both urban and rural areas;
(C) single-family residential buildings;
(D) multihousing residential buildings with more than 50
units, including at least one project that provides
affordable housing to individuals of diverse incomes;
(E) single-occupant commercial buildings larger than 30,000
square feet;
(F) multitenanted commercial buildings larger than 50,000
square feet; and
(G) buildings from both the public and private sectors.
(3) Priority.--Priority in the selection of demonstration
projects shall be given to projects that facilitate large-
scale implementation of the labeling program for samples of
buildings across neighborhoods, geographic regions, cities,
or States.
(4) Findings.--The Administrator shall report any findings
from demonstration projects under this subsection, including
an identification of any areas of needed data improvement, to
the Department of Energy's Energy Information Administration
and Building Technologies Program.
(5) Coordination.--The Administrator and the Secretary of
Energy shall coordinate demonstration projects undertaken
pursuant to this subsection with those undertaken as part of
the Zero-Net-Energy Commercial Buildings Initiative adopted
under section 422 of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17082).
(h) Implementation of Labeling Program.--
(1) In general.--The Administrator, in consultation with
the Secretary of Energy, shall work with all State Energy
Offices established pursuant to part D of title III of the
Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.)
or other State authorities as necessary for the purpose of
implementing the labeling program established under this
section for commercial and residential buildings.
(2) Outreach to local authorities.--The Administrator
shall, acting in consultation and coordination with the
respective States, encourage use of the labeling program by
counties and other localities to broaden access to
information about building energy use, for example, through
disclosure of building label contents in tax, title, and
other records those localities maintain. For this purpose,
the Administrator shall develop an electronic version of the
label and information that can be readily transmitted and
read in widely-available computer programs but is protected
from unauthorized manipulation.
(3) Means of implementation.--In adopting the model
labeling program established under this section, a State
shall seek to ensure that labeled information be made
accessible to the public in a manner so that owners, lenders,
tenants, occupants, or other relevant parties can utilize it.
Such accessibility may be accomplished through--
(A) preparation, and public disclosure of the label through
filing with tax and title records at the time of--
(i) a building audit conducted with support from Federal or
State funds;
(ii) a building energy-efficiency retrofit conducted in
response to such an audit;
(iii) a final inspection of major renovations or additions
made to a building in accordance with a building permit
issued by a local government entity;
(iv) a sale that is recorded for title and tax purposes
consistent with paragraph (8);
(v) a new lien recorded on the property for more than a set
percentage of the assessed value of the property, if that
lien reflects public financial assistance for energy-related
improvements to that building; or
(vi) a change in ownership or operation of the building for
purposes of utility billing; or
(B) other appropriate means.
(4) State implementation of program.--
(A) Eligibility.--A State may become eligible to utilize
allowance value to implement this program by--
(i) adopting by statute or regulation a requirement that
buildings be assessed and labeled, consistent with the
labeling requirements of the program established under this
section; or
(ii) adopting a plan to implement a model labeling program
consistent with this section within one year of enactment of
this Act, including the establishment of that program within
3 years after the date of enactment of this Act, and
demonstrating continuous progress under that plan.
(B) Use of allowances.--Direct Federal support for the
program established in this section is provided through the
emission allowances allocated to the States' SEED Accounts
pursuant to section 132 of this Act. To the extent that a
State provides allowances to local governments within the
State to implement this program, that shall be deemed a
distribution of such allowances to units of local government
pursuant to subsection (c)(1) of that section.
(5) Guidance.--The Administrator may create or identify
model programs and resources to provide guidance to offer to
States and localities for creating labeling programs
consistent with the model program established under this
section.
(6) Progress report.--The Administrator, in consultation
with the Secretary of Energy, shall provide a progress report
to Congress not later than 3 years after the date of
enactment of this Act that--
(A) evaluates the effectiveness of efforts to advance use
of the model labeling program by States and localities;
(B) recommends any legislative changes necessary to broaden
the use of the model labeling program; and
(C) identifies any changes to broaden the use of the model
labeling program that the Administrator has made or intends
to make that do not require additional legislative authority.
(7) State information.--The Administrator may require
States to report to the Administrator information that the
Administrator requires to provide the report required under
paragraph (6).
(8) Prevention of disruption of sales transactions.--No
State shall implement a new labeling program pursuant to this
section in a manner that requires the labeling of a building
to occur after a contract has been executed for the sale of
that building and before the sales transaction is completed.
(i) Implementation of Labeling Program in Federal
Buildings.--
(1) Use of labeling program.--The Secretary of Energy and
the Administrator shall use the labeling program established
under this section to evaluate energy performance in the
facilities of the Department of Energy and the Environmental
Protection Agency, respectively, to the extent practicable,
and shall encourage and support implementation efforts in
other Federal agencies.
(2) Annual progress report.--The Secretary of Energy and
Administrator shall provide an annual progress report to
Congress and the Office of Management and Budget detailing
efforts to implement this subsection, as well as any best
practices or needed resources identified as a result of such
efforts.
(j) Public Outreach.--The Secretary of Energy and the
Administrator, in consultation with nonprofit and industry
stakeholders with specialized expertise, and in conjunction
with other energy efficiency public awareness efforts, shall
establish a business and consumer education program to
increase awareness about the importance of building energy
efficiency and to facilitate widespread use of the labeling
program established under this section.
(k) Definitions.--In this section:
(1) Building type.--The term ``building type'' means a
grouping of buildings as identified by their principal
building activities, or as grouped by their use, including
office buildings, laboratories, libraries, data centers,
retail establishments, hotels, warehouses, and educational
buildings.
(2) Measurement protocol.--The term ``measurement
protocol'' means the methodology, prescribed by the
Administrator, for defining a benchmark for building energy
performance for a specific building type and for measuring
that performance against the benchmark.
(3) Achieved performance.--The term ``achieved
performance'' means the actual energy consumption of a
building as compared to a baseline building of the same type
and size, determined by actual consumption data normalized
for appropriate variables.
(4) Designed performance.--The term ``designed
performance'' means the energy consumption performance a
building would achieve if operated consistent with its design
intent for building energy use, utilizing a standardized set
of operational conditions informed by data collected or
confirmed during an energy audit.
(l) Authorization of Appropriations.--There are authorized
to be appropriated--

[[Page H7513]]

(1) to the Administrator $50,000,000 for implementation of
this section for each fiscal year from 2010 through 2020; and
(2) to the Secretary of Energy $20,000,000 for
implementation of this section for fiscal year 2010 and
$10,000,000 for fiscal years 2011 through 2020.
(m) New Construction.--This section shall apply only to
construction beginning after the date of enactment of this
Act.

SEC. 205. TREE PLANTING PROGRAMS.

(a) Findings.--The Congress finds that--
(1) the utility sector is the largest single source of
greenhouse gas emissions in the United States today,
producing approximately one-third of the country's emissions;
(2) heating and cooling homes accounts for nearly 60
percent of residential electricity usage in the United
States;
(3) shade trees planted in strategic locations can reduce
residential cooling costs by as much as 30 percent;
(4) shade trees have significant clean-air benefits
associated with them;
(5) every 100 healthy large trees removes about 300 pounds
of air pollution (including particulate matter and ozone) and
about 15 tons of carbon dioxide from the air each year;
(6) tree cover on private property and on newly-developed
land has declined since the 1970s, even while emissions from
transportation and industry have been rising; and
(7) in over a dozen test cities across the United States,
increasing urban tree cover has generated between two and
five dollars in savings for every dollar invested in such
tree planting.
(b) Definitions.--As used in this section:
(1) The term ``Secretary'' refers to the Secretary of
Energy.
(2) The term ``retail power provider'' means any entity
authorized under applicable State or Federal law to generate,
distribute, or provide retail electricity, natural gas, or
fuel oil service.
(3) The term ``tree-planting organization'' means any
nonprofit or not-for-profit group which exists, in whole or
in part, to--
(A) expand urban and residential tree cover;
(B) distribute trees for planting;
(C) increase awareness of the environmental and energy-
related benefits of trees;
(D) educate the public about proper tree planting, care,
and maintenance strategies; or
(E) carry out any combination of the foregoing activities.
(4) The term ``tree-siting guidelines'' means a
comprehensive list of science-based measurements outlining
the species and minimum distance required between trees
planted pursuant to this section, in addition to the minimum
required distance to be maintained between such trees and--
(A) building foundations;
(B) air conditioning units;
(C) driveways and walkways;
(D) property fences;
(E) preexisting utility infrastructure;
(F) septic systems;
(G) swimming pools; and
(H) other infrastructure as deemed appropriate.
(5) The terms ``small office'', ``small office buildings'',
and ``small office settings'' means nonresidential buildings
or structures zoned for business purposes that are 20,000
square feet or less in total area.
(c) Purposes.--The purpose of this section is to establish
a grant program to assist retail power providers with the
establishment and operation of targeted tree-planting
programs in residential and small office settings, for the
following purposes:
(1) Reducing the peak-load demand for electricity from
residences and small office buildings during the summer
months through direct shading of buildings provided by
strategically planted trees.
(2) Reducing wintertime demand for energy from residences
and small office buildings by blocking cold winds from
reaching such structures, which lowers interior temperatures
and drives heating demand.
(3) Protecting public health by removing harmful pollution
from the air.
(4) Utilizing the natural photosynthetic and transpiration
process of trees to lower ambient temperatures and absorb
carbon dioxide, thus mitigating the effects of climate
change.
(5) Lowering electric bills for residential and small
office ratepayers by limiting electricity consumption without
reducing benefits.
(6) Relieving financial and demand pressure on retail power
providers that stems from large peak-load energy demand.
(7) Protecting water quality and public health by reducing
stormwater runoff and keeping harmful pollutants from
entering waterways.
(8) Ensuring that trees are planted in locations that limit
the amount of public money needed to maintain public and
electric infrastructure.
(d) General Authority.--
(1) Assistance.--The Secretary is authorized to provide
financial, technical, and related assistance to retail power
providers to assist with the establishment of new, or
continued operation of existing, targeted tree-planting
programs for residences and small office buildings.
(2) Public recognition initiative.--In carrying out the
authority provided under this section, the Secretary shall
also create a national public recognition initiative to
encourage participation in tree-planting programs by retail
power providers.
(3) Eligibility.--Only those programs which utilize
targeted, strategic tree-siting guidelines to plant trees in
relation to building location, sunlight, and prevailing wind
direction shall be eligible for assistance under this
section.
(4) Requirements.--In order to qualify for assistance under
this section, a tree-planting program shall meet each of the
following requirements:
(A) The program shall provide free or discounted shade-
providing or wind-reducing trees to residential and small
office consumers interested in lowering their home energy
costs.
(B) The program shall optimize the electricity-consumption
reduction benefit of each tree by planting in strategic
locations around a given residence or small office.
(C) The program shall either--
(i) provide maximum amounts of shade during summer
intervals when residences and small offices are exposed to
the most sun intensity; or
(ii) provide maximum amounts of wind protection during fall
and winter intervals when residences and small offices are
exposed to the most wind intensity.
(D) The program shall use the best available science to
create tree siting guidelines which dictate where the optimum
tree species are best planted in locations that achieve
maximum reductions in consumer energy demand while causing
the least disruption to public infrastructure, considering
overhead and underground facilities.
(E) The program shall receive certification from the
Secretary that it is designed to achieve the goals set forth
in subparagraphs (A) through (D). In designating criteria for
such certification, the Secretary shall collaborate with the
United States Forest Service's Urban and Community Forestry
Program to ensure that certification requirements are
consistent with such above goals.
(5) New program funding share.--The Secretary shall ensure
that no less than 30 percent of the funds made available
under this section are distributed to retail power providers
which--
(A) have not previously established or operated qualified
tree-planting programs; or
(B) are operating qualified tree-planting programs which
were established no more than three years prior to the date
of enactment of this section.
(e) Agreements Between Electricity Providers and Tree-
planting Organizations.--
(1) Grant authorization.--In providing assistance under
this section, the Secretary is authorized to award grants
only to retail power providers that have entered into binding
legal agreements with nonprofit tree-planting organizations.
(2) Conditions of agreement.--Those agreements between
retail power providers and tree-planting organizations shall
set forth conditions under which nonprofit tree-planting
organizations shall provide targeted tree-planting programs
which may require these organizations to--
(A) participate in local technical advisory committees
responsible for drafting general tree-siting guidelines and
choosing the most effective species of trees to plant in
given locations;
(B) coordinate volunteer recruitment to assist with the
physical act of planting trees in residential locations;
(C) undertake public awareness campaigns to educate local
residents about the benefits, cost savings, and availability
of free shade trees;
(D) establish education and information campaigns to
encourage recipients to maintain their shade trees over the
long term;
(E) serve as the point of contact for existing and
potential residential participants who have questions or
concerns regarding the tree-planting program;
(F) require tree recipients to sign agreements committing
to voluntary stewardship and care of provided trees;
(G) monitor and report on the survival, growth, overall
health, and estimated energy savings of provided trees up
until the end of their establishment period which shall be no
less than five years; and
(H) ensure that trees planted near existing power lines
will not interfere with energized electricity distribution
lines when mature, and that no new trees will be planted
under or adjacent to high-voltage electric transmission lines
without prior consultation with the applicable retail power
provider receiving assistance under this section.
(3) Lack of nonprofit organization.--If qualified nonprofit
or not-for-profit tree planting organizations do not exist or
operate within areas served by retail power providers
applying for assistance under this section, the requirements
of this section shall apply to binding legal agreements
entered into by such retail power providers and one of the
following entities:
(A) Local municipal governments with jurisdiction over the
urban or suburban forest.
(B) The State Forester for the State in which the tree
planting program will operate.
(C) The United States Forest Service's Urban and Community
Forestry representative for the State in which the tree-
planting program will operate.
(D) A landscaping services company that is--
(i) identified in consultation with a national or State
nonprofit or not-for-profit tree-planting organization;

[[Page H7514]]

(ii) licensed to operate in the State in which the tree-
planting program will operate; and
(iii) a business as defined by the United States Census
Bureau's 2007 North American Industry Classification System
Code 561730.
(f) Technical Advisory Committees.--
(1) Description.--In order to qualify for assistance under
this section, the retail power provider shall establish and
consult with a local technical advisory committee which shall
provide advice and consultation to the program, and may--
(A) design and adopt an approved plant list that emphasizes
the use of hardy, noninvasive tree species and, where
geographically appropriate, the use of native, or site-
adapted, or low water-use shade trees;
(B) design and adopt planting, installation, and
maintenance specifications and create a process for
inspection and quality control;
(C) ensure that tree recipients are educated to care for
and maintain their trees over the long term;
(D) help the public become more engaged and educated in the
planting and care of shade trees;
(E) prioritize which sites receive trees, giving preference
to locations with the most potential for energy conservation
and secondary preference to areas where the average annual
income is below the regional median; and
(F) assist with monitoring and collection of data on tree
health, tree survival, and energy conservation benefits
generated under this section.
(2) Compensation.--Individuals serving on local technical
advisory committees shall not receive compensation for their
service.
(3) Composition.--Local technical advisory committees shall
be composed of representatives from public, private, and
nongovernmental agencies with expertise in demand-side energy
efficiency management, urban forestry, or arboriculture, and
shall be composed of the following:
(A) Up to 4 persons, but no less than one person,
representing the retail power provider receiving assistance
under this section.
(B) Up to 4 persons, but no less than one person,
representing the local tree-planting organization which will
partner with the retail power provider to carry out this
section.
(C) Up to 3 persons representing local nonprofit
conservation or environmental organizations. Preference shall
be given to those entities which are organized under section
501(c)(3) of the Internal Revenue Code of 1986, and which
have demonstrated expertise engaging the public in energy
conservation, energy efficiency, or green building practices
or a combination thereof, such that no single organization is
represented by more than one individual under this paragraph.
(D) Up to 2 persons representing a local affordable housing
agency, affordable housing builder, or community development
corporation.
(E) Up to 3, but no less than one, persons representing
local city or county government for each municipality where a
shade tree-planting program will take place; at least one of
these representatives shall be the city or county forester,
city or county arborist, or functional equivalent.
(F) Up to one person representing the local government
agency responsible for management of roads, sewers, and
infrastructure, including but not limited to public works
departments, transportation agencies, or equivalents.
(G) Up to 3 persons representing the nursery and
landscaping industry.
(H) Up to 3 persons representing the research community or
academia with expertise in natural resources or energy
management issues.
(4) Chairperson.--Each local technical advisory committee
shall elect a chairperson to preside over Committee meetings,
act as a liaison to governmental and other outside entities,
and direct the general operation of the committee; only
committee representatives from paragraph (3)(A) or paragraph
(3)(B) of this subsection shall be eligible to act as local
technical advisory committee chairpersons.
(5) Credentials.--At least one of the members of each local
technical advisory committee shall be certified with one or
more of the following credentials: International Society of
Arboriculture; Certified Arborist, ISA; Certified Arborist
Municipal Specialist, ISA; Certified Arborist Utility
Specialist, ISA; Board Certified Master Arborist; or
Registered Landscape Architect recommended by the American
Society of Landscape Architects.
(g) Cost-share Program.--
(1) Federal share.--The Federal share of support for
projects funded under this section shall not exceed 50
percent of the cost of such project and shall be provided on
a matching basis.
(2) Non-federal share.--The non-Federal share of such costs
may be paid or contributed by any governmental or
nongovernmental entity other than from funds derived directly
or indirectly from an agency or instrumentality of the United
States.
(h) Rulemaking.--
(1) Rulemaking period.--The Secretary shall be authorized
to solicit comments and initiate a rulemaking period that
shall last no more than 6 months after the date of enactment
of this section.
(2) Competitive grant rule.--At the conclusion of the
rulemaking period under paragraph (1), the Secretary shall
promulgate a rule governing a public, competitive grants
process through which retail power providers may apply for
Federal support under this section.
(i) Nonduplicity.--Nothing in this section shall be
construed to supersede, duplicate, cancel, or negate the
programs or authorities provided under section 9 of the
Cooperative Forestry Assistance Act of 1978 (92 Stat. 369;
Public Law 95-313; 16 U.S.C. 2105).
(j) Authorization of Appropriations.--There are hereby
authorized to be appropriated such sums as may be necessary
for the implementation of this section.

SEC. 206. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

Section 453(c)(1) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17112(c)(1)) is amended by inserting
``but not later than 2 years after the date of enactment of
this Act'' after ``described in subsection (b)''.

SEC. 207. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

(a) Grant Program Authorized.--
(1) Grant authorization.--The Secretary of Housing and
Urban Development shall to the extent amounts are made
available for grants under this section provide grants to
local building code enforcement departments.
(2) Competitive awards.--The Secretary shall award grants
under paragraph (1) on a competitive basis taking into
consideration the following:
(A) The financial need of each building code enforcement
department.
(B) The benefit to the jurisdiction of having an adequately
funded building code enforcement department.
(C) The demonstrated ability of each building code
enforcement department to work cooperatively with other local
code enforcement offices, health departments, and local
prosecutorial agencies.
(3) Maximum amount.--The maximum amount of any grant
awarded under this subsection shall not exceed $1,000,000.
(4) Coordination.--The Secretary of Housing and Urban
Development shall coordinate with the Secretary of Energy to
ensure that any unnecessarily duplicative funding through
grants under this section of activities otherwise funded
through the Department of Energy is minimized or eliminated.
(b) Required Elements in Grant Proposals.--In order to be
eligible for a grant under subsection (a), a building code
enforcement department of a jurisdiction shall submit to the
Secretary the following:
(1) A demonstration of the jurisdiction's needs in
executing building code enforcement administration.
(2) A plan for the use of any funds received from a grant
under this section that addresses the needs discussed in
paragraph (1) and that is consistent with the authorized uses
established in subsection (c).
(3) A plan for local governmental actions to be taken to
establish and sustain local building code enforcement
administration functions, without continuing Federal support,
at a level at least equivalent to that proposed in the grant
application.
(4) A plan to create and maintain a program of public
outreach that includes a regularly updated and readily
accessible means of public communication, interaction, and
reporting regarding the services and work of the building
code enforcement department to be supported by the grant.
(5) A plan for ensuring the timely and effective
administrative enforcement of building safety and fire
prevention violations.
(c) Use of Funds; Matching Funds.--
(1) Authorized uses.--Amounts from grants awarded under
subsection (a) may be used by the grant recipient to
supplement existing State or local funding for administration
of building code enforcement, or to supplement allowance
value received pursuant to this Act for implementation and
enforcement of energy efficiency building codes. Such amounts
may be used to increase staffing, provide staff training,
increase staff competence and professional qualifications, or
support individual certification or departmental
accreditation, or for capital expenditures specifically
dedicated to the administration of the building code
enforcement department.
(2) Additional requirement.--Each building code enforcement
department receiving a grant under subsection (a) shall
empanel a code administration and enforcement team consisting
of at least 1 full-time building code enforcement officer, a
city planner, and a health planner or similar officer.
(3) Matching funds required.--
(A) In general.--To be eligible to receive a grant under
this section, a building code enforcement department shall
provide matching, non-Federal funds in the following amount:
(i) In the case of a building code enforcement department
serving an area with a population of more than 50,000, an
amount equal to not less than 50 percent of the total amount
of any grant to be awarded under this section.
(ii) In the case of a building code enforcement department
serving an area with a population of between 20,001 and
50,000, an amount equal to not less than 25 percent of the
total amount of any grant to be awarded under this section.
(iii) In the case of a building code enforcement department
serving an area with a population of less than 20,000, an
amount equal to not less than 12.5 percent of the total
amount of any grant to be awarded under this section.
(B) Economic distress.--

[[Page H7515]]

(i) In general.--The Secretary may waive the matching fund
requirements under subparagraph (A), and institute, by
regulation, new matching fund requirements based upon the
level of economic distress of the jurisdiction in which the
local building code enforcement department seeking such grant
is located.
(ii) Content of regulations.--Any regulations instituted
under clause (i) shall include--

(I) a method that allows for a comparison of the degree of
economic distress among the local jurisdictions of grant
applicants, as measured by the differences in the extent of
growth lag, the extent of poverty, and the adjusted age of
housing in such jurisdiction; and
(II) any other factor determined to be relevant by the
Secretary in assessing the comparative degree of economic
distress among such jurisdictions.

(4) In-kind contributions.--In determining the non-Federal
share required to be provided under paragraph (3), the
Secretary shall consider in-kind contributions, not to exceed
50 percent of the amount that the department contributes in
non-Federal funds.
(5) Waiver of matching requirement.--The Secretary shall
waive the matching fund requirements under paragraph (3) for
any recipient jurisdiction that has dedicated all building
code permitting fees to the conduct of local building code
enforcement.
(d) Evaluation and Report.--
(1) In general.--Grant recipients under this section
shall--
(A) be obligated to fully account and report for the use of
all grants funds; and
(B) provide a report to the Secretary on the effectiveness
of the program undertaken by the grantee and any other
criteria requested by the Secretary for the purpose of
indicating the effectiveness of, and ideas for, refinement of
the grant program.
(2) Report.--The report required under paragraph (1)(B)
shall include a discussion of--
(A) the specific capabilities and functions in local
building code enforcement administration that were addressed
using funds received under this section;
(B) the lessons learned in carrying out the plans supported
by the grant; and
(C) the manner in which the programs supported by the grant
are to be maintained by the grantee.
(3) Content of reports.--The Secretary shall--
(A) require each recipient of a grant under this section to
file interim and final reports under paragraph (2) to ensure
that grant funds are being used as intended and to measure
the effectiveness and benefits of the grant program; and
(B) develop and maintain a means whereby the public can
access such reports, at no cost, via the Internet.
(e) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Building code enforcement.--The term ``building code
enforcement'' means the enforcement of any code, adopted by a
State or local government, that regulates the construction of
buildings and facilities to mitigate hazards to life or
property. Such term includes building codes, electrical
codes, energy codes, fire codes, fuel gas codes, mechanical
codes, and plumbing codes.
(2) Building code enforcement department.--The term
``building code enforcement department'' means an inspection
or enforcement agency of a jurisdiction that is responsible
for conducting building code enforcement.
(3) Jurisdiction.--The term ``jurisdiction'' means a city,
county, parish, city and county authority, or city and parish
authority having local authority to enforce building codes
and regulations and to collect fees for building permits.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
$20,000,000 for each of fiscal years 2010 through 2014 to the
Secretary of Housing and Urban Development to carry out the
provisions of this section.
(2) Reservation.--From the amount made available under
paragraph (1), the Secretary may reserve not more than 5
percent for administrative costs.
(3) Availability.--Any funds appropriated pursuant to
paragraph (1) shall remain available until expended.

SEC. 208. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS
FOR RECEIPT OF COMMUNITY DEVELOPMENT BLOCK
GRANT FUNDS.

Section 104 of the Housing and Community Development Act of
1974 (42 U.S.C. 5304) is amended by adding at the end the
following new subsection:
``(n) Requirements for Building Permits Regarding Solar
Energy Systems.--
``(1) In general.--A grant under section 106 for a fiscal
year may be made only if the grantee certifies to the
Secretary that--
``(A) in the case of a grant under section 106(a) for any
Indian tribe or insular area, during such fiscal year the
cost of any permit or license, for construction or
installation of any solar energy system for any structure,
that is required by the tribe or insular area or by any other
unit of general local government or other political
subdivision of such tribe or insular area, complies with
paragraph (2);
``(B) in the case of a grant under section 106(b) for any
metropolitan city or urban county, during such fiscal year
the cost of any permit or license, for construction or
installation of any solar energy system for any structure,
that is required by the metropolitan city or urban county, or
by any other political subdivision of such city or county,
complies with paragraph (2); and
``(C) in the case of a grant under section 106(d) for any
State, during such fiscal year the cost of any permit or
license, for construction or installation of any solar energy
system for any structure, that is required by the State, or
by any other unit of general local government within any
nonentitlement area of such State, or other political
subdivision within any nonentitlement area of such State or
such a unit of general local government, complies with
paragraph (2).
``(2) Limitation on cost.--The cost of permit or license
for construction or installation of any solar energy system
complies with this paragraph only if such cost does not
exceed the following amount:
``(A) Residential structures.--In the case of a structure
primarily for residential use, $500.
``(B) Nonresidential structures.--In the case of a
structure primarily for nonresidential use, 1.0 percent of
the total cost of the installation or construction of the
solar energy system, but not in excess of $10,000.
``(3) Noncompliance.--If the Secretary determines that a
grantee of a grant made under section 106 is not in
compliance with a certification under paragraph (1)--
``(A) the Secretary shall notify the grantee of such
determination; and
``(B) if the grantee has not corrected such noncompliance
before the expiration of the 6-month period beginning upon
notification under subparagraph (A), such grantee shall not
be eligible for 5 percent of any amounts awarded under a
grant under section 106 for the first fiscal year that
commences after the expiration of such 6-month period.
``(4) Solar energy system.--For purposes of this
subsection, the term `solar energy system' means, with
respect to a structure, equipment that uses solar energy to
generate electricity for, or to heat or cool (or provide hot
water for use in), such structure.''.

SEC. 209. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL
INSTALLATION OF SOLAR ENERGY SYSTEM.

(a) Regulations.--Within 180 days after the enactment of
this Act, the Secretary of Housing and Urban Development, in
consultation with the Secretary of Energy, shall issue
regulations--
(1) to prohibit any private covenant, contract provision,
lease provision, homeowners' association rule or bylaw, or
similar restriction, that impairs the ability of the owner or
lessee of any residential structure designed for occupancy by
1 family to install, construct, maintain, or use a solar
energy system on such residential property; and
(2) to require that whenever any such covenant, provision,
rule or bylaw, or restriction requires approval for the
installation or use of a solar energy system, the application
for approval shall be processed and approved by the
appropriate approving entity in the same manner as an
application for approval of an architectural modification to
the property, and shall not be willfully avoided or delayed.
(b) Contents.--The regulations required under subsection
(a) shall provide that--
(1) such a covenant, provision, rule or bylaw, or
restriction impairs the installation, construction,
maintenance, or use of a solar energy system if it--
(A) unreasonably delays or prevents installation,
maintenance, or use;
(B) unreasonably increases the cost of installation,
maintenance, or use; or
(C) precludes use of such a system; and
(2) any fee or cost imposed on the owner or lessee of such
a residential structure by such a covenant, provision, rule
or bylaw, or restriction shall be considered unreasonable
if--
(A) such fee or cost is not reasonable in comparison to the
cost of the solar energy system or the value of its use; or
(B) treatment of solar energy systems by the covenant,
provision, rule or bylaw, or restriction is not reasonable in
comparison with treatment of comparable systems by the same
covenant, provision, rule or bylaw, or restriction.
(c) Solar Energy System.--For purposes of this section, the
term ``solar energy system'' means, with respect to a
structure, equipment that uses solar energy to generate
electricity for, or to heat or cool (or provide hot water for
use in), such structure.

Subtitle B--Lighting and Appliance Energy Efficiency Programs

SEC. 211. LIGHTING EFFICIENCY STANDARDS.

(a) Outdoor Lighting.--
(1) Definitions.--
(A) Section 340(1) of the Energy Policy and Conservation
Act (42 U.S.C. 6311(1)) is amended by striking subparagraph
(L) and inserting the following:
``(L) Outdoor luminaires.
``(M) Outdoor high light output lamps.
``(N) Any other type of industrial equipment which the
Secretary classifies as covered equipment under section
341(b).''.
(B) Section 340 of the Energy Policy and Conservation Act
(42 U.S.C. 6311) is amended as adding at the end the
following:
``(25) The term `luminaire' means a complete lighting unit
consisting of one or more light sources and ballast(s),
together with parts designed to distribute the light, to
position and protect such lamps, and to connect such light
sources to the power supply.
``(26) The term `outdoor luminaire' means a luminaire that
is listed as suitable for wet locations pursuant to
Underwriters Laboratories Inc. standard UL 1598 and is
labeled as

[[Page H7516]]

`Suitable for Wet Locations' consistent with section 410.4(A)
of the National Electrical Code 2005, or is designed for
roadway illumination and meets the requirements of Addendum A
for IESNA TM-15-07: Backlight, Uplight, and Glare (BUG)
Ratings, except for--
``(A) luminaires designed for outdoor video display images
that cannot be used in general lighting applications;
``(B) portable luminaires designed for use at construction
sites;
``(C) luminaires designed for continuous immersion in
swimming pools and other water features;
``(D) seasonal luminaires incorporating solely individual
lamps rated at 10 watts or less;
``(E) luminaires designed to be used in emergency
conditions that incorporate a means of charging a battery and
a device to switch the power supply to emergency lighting
loads automatically upon failure of the normal power supply;
``(F) components used for repair of installed luminaries
and that meet the requirements of section 342(h);
``(G) a luminaire utilizing an electrode-less fluorescent
lamp as the light source;
``(H) decorative gas lighting systems;
``(I) luminaires designed explicitly for lighting for
theatrical purposes, including performance, stage, film
production, and video production;
``(J) luminaires designed as theme elements in theme/
amusement parks and that cannot be used in most general
lighting applications;
``(K) luminaires designed explicitly for vehicular roadway
tunnels designed to comply with ANSI/IESNA RP-22-05;
``(L) luminaires designed explicitly for hazardous
locations meeting UL Standard 844;
``(M) searchlights;
``(N) luminaires that are designed to be recessed into a
building, and that cannot be used in most general lighting
applications;
``(O) a luminaire rated only for residential applications
utilizing a light source or sources regulated under the
amendments made by section 321 of the Energy Independence and
Security Act of 2007 and with a light output no greater than
2,600 lumens;
``(P) a residential pole-mounted luminaire that is not
rated for commercial use utilizing a light source or sources
meeting the efficiency requirements of section 231 of the
Energy Independence and Security Act of 2007 and mounted on a
post or pole not taller than 10.5 feet above ground and with
a light output not greater than 2,600 lumens;
``(Q) a residential fixture with E12 (Candelabra) bases
that is rated for not more than 300 watts total; or
``(R) a residential fixture with medium screw bases that is
rated for not more than 145 watts.
``(27) The term `outdoor high light outputlamp' means a
lamp that--
``(A) has a rated lumen output not less than 2601 lumens;
``(B) is capable of being operated at a voltage not less
than 110 volts and not greater than 300 volts, or driven at a
constant current of 6.6 amperes;
``(C) is not a Parabolic Aluminized Reflector lamp; and
``(D) is not a J-type double-ended (T-3) halogen quartz
lamp, utilizing R-7S bases, that is manufactured before
January 1, 2015.
``(28) The term `outdoor lighting control' means a device
incorporated in a luminaire that receives a signal, from
either a sensor (such as an occupancy sensor, motion sensor,
or daylight sensor) or an input signal (including analog or
digital signals communicated through wired or wireless
technology), and can adjust the light level according to the
signal.''.
(2) Standards.-- Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the
end the following:
``(g) Outdoor Luminaires.--
``(1) Each outdoor luminaire manufactured on or after
January 1, 2011, shall--
``(A) have an initial luminaire efficacy of at least 50
lumens per watt; and
``(B) be designed to use a light source with a lumen
maintenance, calculated as mean rated lumens divided by
initial lumens, of at least 0.6.
``(2) Each outdoor luminaire manufactured on or after January
1, 2018, shall--
``(A) have an initial luminaire efficacy of at least 70
lumens per watt; and
``(B) be designed to use a light source with a lumen
maintenance, calculated as mean rated lumens divided by
initial lumens, of at least 0.6.
``(3) In addition to the requirements of paragraphs (1)
through (3), each outdoor luminaire manufactured on or after
January 1, 2016, shall have the capability of producing at
least two different light levels, including 100 percent and
60 percent of full lamp output as tested with the maximum
rated lamp per UL1598 or the manufacturer's maximum specified
for the luminaire under test, outdoor luminaires used for
roadway lighting applications shall be exempt from the 2
light level requirements.
``(4)(A) Not later than January 1, 2022, the Secretary
shall issue a final rule amending the applicable standards
established in paragraph (3) if technologically feasible and
economically justified.
``(B) A final rule issued under subparagraph (A) shall
establish efficiency standards at the maximum level that is
technically feasible and economically justified, as provided
in subsections (o) and (p) of section 325. The Secretary may
also, in such rulemaking, amend or discontinue the product
exclusions listed in section 340(26)(A) through (P), or amend
the lumen maintenance requirements in paragraph (2) if the
Secretary determines that such amendments are consistent with
the purposes of this Act.
``(C) If the Secretary issues a final rule under
subparagraph (A) establishing amended standards, the final
rule shall provide that the amended standards apply to
products manufactured on or after January 1, 2025, or one
year after the date on which the final amended standard is
published, whichever is later.
``(h) Outdoor High Light Output Lamps.--Each outdoor high
light output lamp manufactured on or after January 1, 2017,
shall have a lighting efficiency of at least 45 lumens per
watt.''.
(3) Test procedures.-- Section 343(a) of the Energy Policy
and Conservation Act (42 U.S.C. 6314(a)) is amended by adding
at the end the following:
``(10) Outdoor lighting.--
``(A) With respect to outdoor luminaires and outdoor high
light output lamps, the test procedures shall be based upon
the test procedures specified in illuminating engineering
society procedures LM-79 as of March 1, 2009, and LM-31, and/
or other appropriate consensus test procedures developed by
the Illuminating Engineering Society or other appropriate
consensus standards bodies.
``(B) If illuminating engineering society procedure LM--79
is amended, the Secretary shall amend the test procedures
established in subparagraph (A) as necessary to be consistent
with the amended LM-79 test procedure, unless the Secretary
determines, by rule, published in the Federal Register and
supported by clear and convincing evidence, that to do so
would not meet the requirements for test procedures under
paragraph (2).
``(C) The Secretary may revise the test procedures for
outdoor luminaires or outdoor high light output lamps by rule
consistent with paragraph (2), and may incorporate as
appropriate consensus test procedures developed by the
Illuminating Engineering Society or other appropriate
consensus standards bodies.''.
(4) Preemption.-- Section 345 of the Energy Policy and
Conservation Act (42 U.S.C. 6316) is amended by adding at the
end the following:
``(i)(1) Except as provided in paragraph (2), section 327
shall apply to outdoor luminaires to the same extent and in
the same manner as the section applies under part B.
``(2) Any State standard that is adopted on or before
January 1, 2015, pursuant to a statutory requirement to adopt
efficiency standards for reducing outdoor lighting energy use
enacted prior to January 31, 2008, shall not be preempted.''.
(5) Energy efficiency standards for certain luminaires.--
Not later than 1 year after the date of enactment of this
Act, the Secretary of Energy shall, in consultation with the
National Electrical Manufacturers Association, collect data
for United States sales of luminaires described in section
340(26)(H) and (M) of the Energy Policy and Conservation Act,
to determine the historical growth rate. If the Secretary
finds that the growth in market share of such luminaires
exceeds twice the year to year rate of the average of the
previous three years, then the Secretary shall within 12
months initiate a rulemaking to determine if such exclusion
should be eliminated, if substitute products exist that
perform more efficiently and fulfill the performance
functions of these luminaires.
(b) Portable Lighting.--
(1) Portable light fixtures.--
(A) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended by adding at the
end the following:
``(67) Art work light fixture.--The term `art work light
fixture' means a light fixture designed only to be mounted
directly to an art work and for the purpose of illuminating
that art work.
``(68) LED light engine.--The term `LED light engine' or
`LED light engine with integral heat sink' means a subsystem
of an LED light fixture that--
``(A) includes 1 or more LED components, including--
``(i) an LED driver power source with electrical and
mechanical interfaces; and
``(ii) an integral heat sink to provide thermal
dissipation; and
``(B) may be designed to accept additional components that
provide aesthetic, optical, and environmental control.
``(69) LED light fixture.--The term `LED light fixture'
means a complete lighting unit consisting of--
``(A) an LED light source with 1 or more LED lamps or LED
light engines; and
``(B) parts--
``(i) to distribute the light;
``(ii) to position and protect the light source; and
``(iii) to connect the light source to electrical power.
``(70) Light fixture.--The term `light fixture' means a
product designed to provide light that includes--
``(A) at least 1 lamp socket; and
``(B) parts--
``(i) to distribute the light;
``(ii) position and protect 1 or more lamps; and

[[Page H7517]]

``(iii) to connect 1 or more lamps to a power supply.
``(71) Portable light fixture.--
``(A) In general.--The term `portable light fixture' means
a light fixture that has a flexible cord and an attachment
plug for connection to a nominal 120-volt circuit that--
``(i) allows the user to relocate the product without any
rewiring; and
``(ii) typically can be controlled with a switch located on
the product or the power cord of the product.
``(B) Exclusions.--The term `portable light fixture' does
not include--
``(i) direct plug-in night lights, sun or heat lamps,
medical or dental lights, portable electric hand lamps, signs
or commercial advertising displays, photographic lamps,
germicidal lamps, or light fixtures for marine use or for use
in hazardous locations (as those terms are defined in ANSI/
NFPA 70 of the National Electrical Code); or
``(ii) decorative lighting strings, decorative lighting
outfits, or electric candles or candelabra without lamp
shades that are covered by Underwriter Laboratories (UL)
standard 588, `Seasonal and Holiday Decorative Products'.''.
(B) Coverage.--
(i) In general.--Section 322(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)) is amended--

(I) by redesignating paragraph (20) as paragraph (24); and
(II) by inserting after paragraph (19) the following:

``(20) Portable light fixtures.''.
(ii) Conforming amendments.--Section 325(l) of the Energy
Policy and Conservation Act (42 U.S.C. 6295(l)) is amended by
striking ``paragraph (19)'' each place it appears in
paragraphs (1) and (2) and inserting ``paragraph (24)''.
(C) Test procedures.--Section 323(b) of the Energy Policy
and Conservation Act (42 U.S.C. 6293(b)) is amended by adding
at the end the following:
``(19) LED fixtures and led light engines.--Test procedures
for LED fixtures and LED light engines shall be based on
Illuminating Engineering Society of North America (IESNA)
test procedure LM-79, Approved Method for Electrical and
Photometric Testing of Solid-State Lighting Devices, and
IESNA-approved test procedure for testing LED light
engines.''.
(D) Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended--
(i) by redesignating subsection (ii) as subsection (oo);
(ii) in subsection (oo)(2), as redesignated in clause (i)
of this subparagraph, by striking ``(hh)'' each place it
appears and inserting ``(mm)''; and
(iii) by inserting after subsection (hh) the following:
``(ii) Portable Light Fixtures.--
``(1) In general.--Subject to paragraphs (2) and (3),
portable light fixtures manufactured on or after January 1,
2012, shall meet 1 or more of the following requirements:
``(A) Be a fluorescent light fixture that meets the
requirements of the Energy Star Program for Residential Light
Fixtures, Version 4.2.
``(B) Be equipped with only 1 or more GU-24 line-voltage
sockets, not be rated for use with incandescent lamps of any
type (as defined in ANSI standards), and meet the
requirements of version 4.2 of the Energy Star program for
residential light fixtures.
``(C) Be an LED light fixture or a light fixture with an
LED light engine and comply with the following minimum
requirements:
``(i) Minimum light output: 200 lumens (initial).
``(ii) Minimum LED light engine efficacy: 40 lumens/watt
installed in fixtures that meet the minimum light fixture
efficacy of 29 lumens/watt or, alternatively, a minimum LED
light engine efficacy of 60 lumens/watt for fixtures that do
not meet the minimum light fixture efficacy of 29 lumens/
watt.
``(iii) All portable fixtures shall have a minimum LED
light fixture efficacy of 29 lumens/watt and a minimum LED
light engine efficacy of 60 lumens/watt by January 1, 2016.
``(iv) Color Correlated Temperature (CCT): 2700K through
4000K.
``(v) Minimum Color Rendering Index (CRI): 75.
``(vi) Power factor equal to or greater than 0.70.
``(vii) Portable luminaries that have internal power
supplies shall have zero standby power when the luminaire is
turned off.
``(viii) LED light sources shall deliver at least 70
percent of initial lumens for at least 25,000 hours.
``(D)(i) Be equipped with an ANSI-designated E12, E17, or
E26 screw-based socket and be prepackaged and sold together
with 1 screw-based compact fluorescent lamp or screw-based
LED lamp for each screw-based socket on the portable light
fixture.
``(ii) The compact fluorescent or LED lamps prepackaged
with the light fixture shall be fully compatible with any
light fixture controls incorporated into the light fixture
(for example, light fixtures with dimmers shall be packed
with dimmable lamps).
``(iii) Compact fluorescent lamps prepackaged with light
fixtures shall meet the requirements of the Energy Star
Program for CFLs Version 4.0.
``(iv) Screw-based LED lamps shall comply with the minimum
requirements described in subparagraph (C).
``(E) Be equipped with 1 or more single-ended, non-screw
based halogen lamp sockets (line or low voltage), a dimmer
control or high-low control, and be rated for a maximum of
100 watts.
``(2) Review.--
``(A) Review.--The Secretary shall review the criteria and
standards established under paragraph (1) to determine if
revised standards are technologically feasible and
economically justified.
``(B) Components.--The review shall include consideration
of--
``(i) whether a separate compliance procedure is still
needed for halogen fixtures described in subparagraph (E)
and, if necessary, what an appropriate standard for halogen
fixtures shall be;
``(ii) whether the specific technical criteria described in
subparagraphs (A), (C), and (D)(iii) should be modified; and
``(iii) which fixtures should be exempted from the light
fixture efficacy standard as of January 1, 2016, because the
fixtures are primarily decorative in nature (as defined by
the Secretary) and, even if exempted, are likely to be sold
in limited quantities.
``(C) Timing.--
``(i) Determination.--Not later than January 1, 2014, the
Secretary shall publish amended standards, or a determination
that no amended standards are justified, under this
subsection.
``(ii) Standards.--Any standards under this paragraph shall
take effect on January 1, 2016.
``(3) Art work light fixtures.--Art work light fixtures
manufactured on or after January 1, 2012, shall--
``(A) comply with paragraph (1); or
``(B)(i) contain only ANSI-designated E12 screw-based line-
voltage sockets;
``(ii) have not more than 3 sockets;
``(iii) be controlled with an integral high/low switch;
``(iv) be rated for not more than 25 watts if fitted with 1
socket; and
``(v) be rated for not more than 15 watts per socket if
fitted with 2 or 3 sockets.
``(4) Exception from preemption.--Notwithstanding section
327, Federal preemption shall not apply to a regulation
concerning portable light fixtures adopted by the California
Energy Commission on or before January 1, 2014.''.
(2) GU-24 base lamps.--
(A) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) (as amended by paragraph
(1)(A)) is amended by adding at the end the following:
``(72) GU-24.--The term `GU-24' means the designation of a
lamp socket, based on a coding system by the International
Electrotechnical Commission, under which--
``(A) `G' indicates a holder and socket type with 2 or more
projecting contacts, such as pins or posts;
``(B) `U' distinguishes between lamp and holder designs of
similar type that are not interchangeable due to electrical
or mechanical requirements; and
``(C) 24 indicates the distance in millimeters between the
electrical contact posts.
``(73) GU-24 adaptor.--
``(A) In general.--The term `GU-24 Adaptor' means a 1-piece
device, pig-tail, wiring harness, or other such socket or
base attachment that--
``(i) connects to a GU-24 socket on 1 end and provides a
different type of socket or connection on the other end; and
``(ii) does not alter the voltage.
``(B) Exclusion.--The term `GU-24 Adaptor' does not include
a fluorescent ballast with a GU-24 base.
``(74) GU-24 base lamp.--`GU-24 base lamp' means a light
bulb designed to fit in a GU-24 socket.''.
(B) Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) (as amended by paragraph
(1)(D)) is amended by inserting after subsection (ii) the
following:
``(jj) GU-24 Base Lamps.--
``(1) In general.--A GU-24 base lamp shall not be an
incandescent lamp as defined by ANSI.
``(2) GU-24 adaptors.--GU-24 adaptors shall not adapt a GU-
24 socket to any other line voltage socket.''.
(3) Standards for certain incandescent reflector lamps.--
Section 325(i) of the Energy Policy and Conservation Act (42
U.S.C. 6295(i)), as amended by section 161(a)(12) of this
Act, is amended by adding at the end the following:
``(9) Certain incandescent reflector lamps.--(A) No later
than 12 months after enactment of this paragraph, the
Secretary shall publish a final rule establishing standards
for incandescent reflector lamp types described in paragraph
(1)(D). Such standards shall be effective on July 1, 2013.
``(B) Any rulemaking for incandescent reflector lamps
completed after enactment of this section shall consider
standards for all incandescent reflector lamps, inclusive of
those specified in paragraph (1)(C).
``(10) Reflector lamps.--No later than January 1, 2015, the
Secretary shall publish a final rule establishing and
amending standards for reflector lamps, including
incandescent reflector lamps. Such standards shall be
effective no sooner than three years after publication of the
final rule. Such rulemaking shall consider incandescent and
nonincandescent technologies. Such rulemaking shall consider
a new metric other than lumens-per-watt based on the
photometric distribution of light from such lamps.''.

[[Page H7518]]

SEC. 212. OTHER APPLIANCE EFFICIENCY STANDARDS.

(a) Standards for Water Dispensers, Hot Food Holding
Cabinets, and Portable Electric Spas.--
(1) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291), as amended by section 211
of this Act, is further amended by adding at the end the
following:
``(75) The term `water dispenser' means a factory-made
assembly that mechanically cools and heats potable water and
that dispenses the cooled or heated water by integral or
remote means.
``(76) The term `bottle-type water dispenser' means a
drinking water dispenser designed for dispensing both hot and
cold water that uses a removable bottle or container as the
source of potable water.
``(77) The term `commercial hot food holding cabinet' means
a heated, fully-enclosed compartment with one or more solid
or glass doors that is designed to maintain the temperature
of hot food that has been cooked in a separate appliance.
Such term does not include heated glass merchandizing
cabinets, drawer warmers, commercial hot food holding
cabinets with interior volumes of less than 8 cubic feet, or
cook-and-hold appliances.
``(78) The term `portable electric spa' means a factory-
built electric spa or hot tub, supplied with equipment for
heating and circulating water.''.
(2) Coverage.--Section 322(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6292(a)), as amended by section
211(b)(1)(B) of this Act, is further amended by inserting
after paragraph (20) the following new paragraphs:
``(21) Bottle type water dispensers.
``(22) Commercial hot food holding cabinets.
``(23) Portable electric spas.''.
(3) Test procedures.--Section 323(b) of the Energy Policy
and Conservation Act (42 U.S.C. 6293(b)), as amended by
section 211(b)(1)(C) of this Act, is further amended by
adding at the end the following:
``(20) Bottle type water dispensers.--Test procedures for
bottle type water dispensers shall be based on `Energy Star
Program Requirements for Bottled Water Coolers version 1.1'
published by the Environmental Protection Agency. Units with
an integral, automatic timer shall not be tested using
section 4D, `Timer Usage,' of the test criteria.
``(21) Commercial hot food holding cabinets.--Test
procedures for commercial hot food holding cabinets shall be
based on the test procedures described in ANSI/ASTM F2140-01
(Test for idle energy rate-dry test). Interior volume shall
be based on the method shown in the Environmental Protection
Agency's `Energy Star Program Requirements for Commercial Hot
Food Holding Cabinets' as in effect on August 15, 2003.
``(22) Portable electric spas.--Test procedures for
portable electric spas shall be based on the test method for
portable electric spas contained in section 1604, title 20,
California Code of Regulations as amended on December 3,
2008. When the American National Standards Institute
publishes a test procedure for portable electric spas, the
Secretary shall revise the Department of Energy's
procedure.''.
(4) Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295), as amended by section 211
of this Act, is further amended by adding after subsection
(jj) the following:
``(kk) Bottle Type Water Dispensers.--Effective January 1,
2012, bottle-type water dispensers designed for dispensing
both hot and cold water shall not have standby energy
consumption greater than 1.2 kilowatt-hours per day.
``(ll) Commercial Hot Food Holding Cabinets.--Effective
January 1, 2012, commercial hot food holding cabinets with
interior volumes of 8 cubic feet or greater shall have a
maximum idle energy rate of 40 watts per cubic foot of
interior volume.
``(mm) Portable Electric Spas.--Effective January 1, 2012,
portable electric spas shall not have a normalized standby
power greater than 5(V\2/3\) Watts where V=the fill volume in
gallons.
``(nn) Revisions.--The Secretary of Energy shall consider
revisions to the standards in subsections (kk), (ll), and
(mm) in accordance with subsection (o) and publish a final
rule no later than January 1, 2013 establishing such revised
standards, or make a finding that no revisions are
technically feasible and economically justified. Any such
revised standards shall take effect January 1, 2016.''.
(b) Commercial Furnace Efficiency Standards.--Section
342(a) of the Energy Policy and Conservation Act (42 U.S.C.
6312(a)) is amended by inserting after paragraph (10) the
following new paragraph:
``(11) Warm air furnaces.--Each warm air furnace with an
input rating of 225,000 Btu per hour or more and manufactured
after January 1, 2011, shall meet the following standard
levels:
``(A) Gas-fired units.--
``(i) Minimum thermal efficiency of 80 percent.
``(ii) Include an interrupted or intermittent ignition
device.
``(iii) Have jacket losses not exceeding 0.75 percent of
the input rating.
``(iv) Have either power venting or a flue damper.
``(B) Oil-fired units.--
``(i) Minimum thermal efficiency of 81 percent.
``(ii) Have jacket losses not exceeding 0.75 percent of the
input rating.
``(iii) Have either power venting or a flue damper.''.

SEC. 213. APPLIANCE EFFICIENCY DETERMINATIONS AND PROCEDURES.

(a) Definition of Energy Conservation Standard.--Section
321(6) of the Energy Policy and Conservation Act (42 U.S.C.
6291(6)) is amended to read as follows:
``(6) Energy conservation standard.--
``(A) In general.--The term `energy conservation standard'
means 1 or more performance standards that--
``(i) for covered products (excluding clothes washers,
dishwashers, showerheads, faucets, water closets, and
urinals), prescribe a minimum level of energy efficiency or a
maximum quantity of energy use, determined in accordance with
test procedures prescribed under section 323;
``(ii) for showerheads, faucets, water closets, and
urinals, prescribe a minimum level of water efficiency or a
maximum quantity of water use, determined in accordance with
test procedures prescribed under section 323; and
``(iii) for clothes washers and dishwashers--

``(I) prescribe a minimum level of energy efficiency or a
maximum quantity of energy use, determined in accordance with
test procedures prescribed under section 323; and
``(II) may include a minimum level of water efficiency or a
maximum quantity of water use, determined in accordance with
those test procedures.

``(B) Inclusions.--The term `energy conservation standard'
includes--
``(i) 1 or more design requirements, if the requirements
were established--

``(I) on or before the date of enactment of this subclause;
``(II) as part of a direct final rule under section
325(p)(4); or
``(III) as part of a final rule published on or after
January 1, 2012, and

``(ii) any other requirements that the Secretary may
prescribe under section 325(r).
``(C) Exclusion.--The term `energy conservation standard'
does not include a performance standard for a component of a
finished covered product, unless regulation of the component
is specifically authorized or established pursuant to this
title.''.
(b) Adopting Consensus Test Procedures and Test Procedures
in Use Elsewhere.--Section 323(b) of the Energy Policy and
Conservation Act (42 U.S.C. 6293(b)), as amended by sections
211 and 212 of this Act, is further amended by adding the
following new paragraph after paragraph (22):
``(23) Consensus and alternate test procedures.--
``(A) Receipt of joint recommendation or alternate testing
procedure.--On receipt of--
``(i) a statement that is submitted jointly by interested
persons that are fairly representative of relevant points of
view (including representatives of manufacturers of covered
products, States, and efficiency advocates), as determined by
the Secretary, and contains recommendations with respect to
the testing procedure for a covered product; or
``(ii) a submission of a testing procedure currently in use
for a covered product by a State, nation, or group of
nations--

``(I) if the Secretary determines that the recommended
testing procedure contained in the statement or submission is
in accordance with subsection (b)(3), the Secretary may issue
a final rule that establishes an energy or water conservation
testing procedure that is published simultaneously with a
notice of proposed rulemaking that proposes a new or amended
energy or water conservation testing procedure that is
identical to the testing procedure established in the final
rule to establish the recommended testing procedure (referred
to in this paragraph as a `direct final rule'); or
``(II) if the Secretary determines that a direct final rule
cannot be issued based on the statement or submission, the
Secretary shall publish a notice of the determination,
together with an explanation of the reasons for the
determination.

``(B) Public comment.--The Secretary shall solicit public
comment for a period of at least 110 days with respect to
each direct final rule issued by the Secretary under
subparagraph (A)(ii)(I).
``(C) Withdrawal of direct final rules.--
``(i) In general.--Not later than 120 days after the date
on which a direct final rule issued under subparagraph
(A)(ii)(I) is published in the Federal Register, the
Secretary shall withdraw the direct final rule if--

``(I) the Secretary receives 1 or more adverse public
comments relating to the direct final rule under subparagraph
(B)or any alternative joint recommendation; and
``(II) based on the rulemaking record relating to the
direct final rule, the Secretary determines that such adverse
public comments or alternative joint recommendation may
provide a reasonable basis for withdrawing the direct final
rule under paragraph (3) or any other applicable law.

``(ii) Action on withdrawal.--On withdrawal of a direct
final rule under clause (i), the Secretary shall--

``(I) proceed with the notice of proposed rulemaking
published simultaneously with the direct final rule as
described in subparagraph (A)(ii)(I); and
``(II) publish in the Federal Register the reasons why the
direct final rule was withdrawn.

[[Page H7519]]

``(iii) Treatment of withdrawn direct final rules.--A
direct final rule that is withdrawn under clause (i) shall
not be considered to be a final rule for purposes of
subsection (b).
``(D) Effect of paragraph.--Nothing in this paragraph
authorizes the Secretary to issue a direct final rule based
solely on receipt of more than 1 statement containing
recommended test procedures relating to the direct final
rule.''.
(c) Updating Television Test Methods.--Section 323(b) of
the Energy Policy and Conservation Act (42 U.S.C. 6293(b)),
as amended by sections 211 and 212 of this Act, and
subsection (b) of this section, is further amended by adding
at the end the following new paragraph:
``(24) Televisions.--(A) On the date of enactment of this
paragraph, Appendix H to Subpart B of Part 430 of the United
States Code of Federal Regulations, `Uniform Test Method for
Measuring the Energy Consumption of Television Sets', is
repealed.
``(B) No later than 12 months after the date of enactment
of this paragraph the Secretary shall publish in the Federal
Register a final rule prescribing a new test method for
televisions.''.
(d) Criteria for Prescribing New or Amended Standards.--(1)
Section 325(o)(2)(B)(i) of the Energy Policy and Conservation
Act (42 U.S.C. 6295(o)(2)(B)(i)) is amended as follows:
(A) By striking ``and'' at the end of subclause (VI).
(B) By redesignating subclause (VII) as subclause (XI).
(C) By inserting the following new subclauses after
subclause (VI):
``(VII) the estimated value of the carbon dioxide and other
emission reductions that will be achieved by virtue of the
higher energy efficiency of the covered products resulting
from the imposition of the standard;
``(VIII) the estimated impact of standards for a particular
product on average consumer energy prices;
``(IX) the increased energy efficiency that may be
attributable to the installation of Smart Grid technologies
or capabilities in the covered products, if applicable in the
determination of the Secretary;
``(X) the availability in the United States or in other
nations of examples or prototypes of covered products that
achieve significantly higher efficiency standards for energy
or for water; and''.
(2) Section 325(o)(2)(B)(iii) of such Act is amended as
follows:
(A) By striking ``three'' and inserting ``5''.
(B) By inserting after the first sentence the following
``For products with an average expected useful life of less
than 5 years, such rebuttable presumption shall be determined
utilizing 75 percent of the product's average expected useful
life as a multiplier instead of 5.''.
(C) By striking the last sentence and inserting the
following: ``Such a presumption may be rebutted only if the
Secretary finds, based on clear, convincing, and reliable
evidence, that--
``(I) such standard level would cause serious and
unavoidable hardship to the average consumer of the product,
or to manufacturers supplying a significant portion of the
market for the product, that substantially outweighs the
standard level's benefits;
``(II) the standard and implementing regulations cannot be
designed to avoid or mitigate the hardship identified under
subclause (I), through the adoption of regional standards
consistent with paragraph (6) of this subsection, or other
reasonable means consistent with this part;
``(III) the same or substantially similar hardship would
not occur under a standard adopted in the absence of the
presumption, but that otherwise meets the requirements of
this section; and
``(IV) the hardship cannot be avoided or mitigated pursuant
the procedures specified in section 504 of the Department of
Energy Organization Act (42 U.S.C. 7194).
A determination by the Secretary that the criteria triggering
such presumption are not met, or that the criterion for
rebutting the presumption are met shall not be taken into
consideration in the Secretary's determination of whether a
standard is economically justified.''.
(e) Obtaining Appliance Information From Manufacturers.--
Section 326(d) of the Energy Policy and Conservation Act (42
U.S.C. 6295(d)) is amended to read as follows:
``(d) Information Requirements.--(1) For purposes of
carrying out this part, the Secretary shall publish proposed
regulations not later than one year after the date of
enactment of the American Clean Energy and Security Act of
2009, and after receiving public comment, final regulations
not later than 18 months from such date of enactment under
this part or other provision of law administered by the
Secretary, which shall require each manufacturer of a covered
product to submit information or reports to the Secretary on
an annual basis in a form adopted by the Secretary. Such
reports shall include information or data with respect to--
``(A) the manufacturers' compliance with all requirements
applicable pursuant to this part;
``(B) the economic impact of any proposed energy
conservation standard;
``(C) the manufacturers' annual shipments of each class or
category of covered products, organized, to the maximum
extent practicable, by--
``(i) energy efficiency, energy use, and, if applicable,
water use;
``(ii) the presence or absence of such efficiency related
or energy consuming operational characteristics or components
as the Secretary determines are relevant for the purposes of
carrying out this part; and
``(iii) the State or regional location of sale, for covered
products for which the Secretary may adopt regional
standards; and
``(D) such other categories of information as the Secretary
deems relevant to carry out this part, including such other
information as may be necessary to establish and revise test
procedures, labeling rules, and energy conservation standards
and to insure compliance with the requirements of this part.
``(2) In adopting regulations under this subsection, the
Secretary shall consider existing public sources of
information, including nationally recognized certification
programs of trade associations.
``(3) The Secretary shall exercise authority under this
section in a manner designed to minimize unnecessary burdens
on manufacturers of covered products.
``(4) To the extent that they do not conflict with the
duties of the Secretary in carrying out this part, the
provisions of section 11(d) of the Energy Supply and
Environmental Coordination Act of 1974 (15 U.S.C. 796(d))
shall apply with respect to information obtained under this
subsection to the same extent and in the same manner as they
apply with respect to other energy information obtained under
such section.''.
(f) State Waiver.--Section 327(c) of the Energy Policy and
Conservation Act (42 U.S.C. 6297(c)), as amended by section
161(a)(19) of this Act, is further amended by adding at the
end the following:
``(12) is a regulation concerning standards for hot food
holding cabinets, drinking water dispensers and portable
electric spas adopted by the California Energy Commission on
or before January 1, 2013.''.
(g) Waiver of Federal Preemption.--Paragraph (1) of section
327(d) of the Energy Policy and Conservation Act (42 U.S.C.
6297(d)) is amended as follows:
(1) In subparagraph (A) by striking ``State regulation''
each place it appears and inserting ``State statute or
regulation''.
(2) In subparagraph (B) by adding at the end the following
new sentence: ``In making such a finding, the Secretary may
not reject a petition for failure of the petitioning State or
river basin commission to produce confidential information
maintained by any manufacturer or distributor, or group or
association of manufacturers or distributors, and which the
petitioning party does not have the legal right to obtain.''.
(3) In clause (ii) of subparagraph (C) by striking
``costs'' each place it appears and inserting ``estimated
costs''.
(4) In subparagraph (C) by striking ``within the context of
the State's energy plan and forecast, and,''.
(h) Inclusion of Carbon Output on Appliance ``Energyguide''
Labels.--(1) Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding
the following at the end:
``(I)(i) Not later than 90 days after the date of enactment
of this subparagraph, the Commission shall initiate a
rulemaking to implement the additional labeling requirements
specified in subsection (c)(1)(C) of this section with an
effective date for the revised labeling requirement not later
than 12 months from issuance of the final rule.
``(ii) Not later than 24 months after the date of enactment
of this subparagraph, the Commission shall complete the
rulemaking initiated under clause (i).
``(iii) Not later than 90 days after issuance of the final
rule as provided in this subparagraph, the Secretary shall
issue calculation methods required to effectuate the labeling
requirements specified in subsection (c)(1)(C) of this
section.''.
(2) Section 324(c)(1) of the Energy Policy and Conservation
Act (42 U.S.C. 6294(c)(1)) is amended--
(A) by striking ``and'' at the end of subparagraph (A);
(B) by striking the period at the end of subparagraph (B)
and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
``(C) for products or groups of products providing a
comparable function (including the group of products
comprising the heating function of heat pumps and furnaces)
among covered products listed in paragraphs (3), (4), (5),
(8), (9), (10), and (11) of section 322(a) of this part, and
others designated by the Secretary, the estimated total
annual atmospheric carbon dioxide emissions (or their
equivalent in other greenhouse gases) associated with, or
caused by, the product, calculated utilizing--
``(i) national average energy use for the product including
energy consumed at the point of end use based on test
procedures developed under section 323 of this part;
``(ii) national average energy consumed or lost in the
production, generation, transportation, storage, and
distribution of energy to the point of end use; and
``(iii) any direct emissions of greenhouse gases from the
product during normal use;
``(D) in determining the national average energy
consumption and total annual atmospheric carbon dioxide
emissions, the Secretary shall utilize Federal Government
sources, including the Energy Information Administration
Annual Energy Review, the Environmental Protection Agency
eGRID data base, Environmental Protection Agency AP-42
Emission Factors as amended, and other sources determined to
be appropriate by the Secretary; and

[[Page H7520]]

``(E) information presenting, for each product (or group of
products providing the comparable function) identified in
section (c)(1)(C) of this section, the estimated annual
carbon dioxide emissions calculated within the range of
emissions calculated for all models of the product or group
according to its function, including those models consuming
fuels and those models not consuming fuels.''.
(i) Permitting States to Seek Injunctive Enforcement.--(1)
Section 334 of the Energy Policy and Conservation Act (42
U.S.C. 6304) is amended to read as follows:

``SEC. 334. JURISDICTION AND VENUE.

``(a) Jurisdiction.--The United States district courts
shall have jurisdiction to restrain--
``(1) any violation of section 332; and
``(2) any person from distributing in commerce any covered
product which does not comply with an applicable rule under
section 324 or 325.
``(b) Authority.--Any action referred to in subsection (a)
shall be brought by the Commission or by the attorney general
of a State in the name of the State, except that--
``(1) any such action to restrain any violation of section
332(a)(3) which relates to requirements prescribed by the
Secretary or any violation of section 332(a)(4) which relates
to request of the Secretary under section 326(b)(2) shall be
brought by the Secretary; and
``(2) any violation of section 332(a)(5) or 332(a)(7) shall
be brought by the Secretary or by the attorney general of a
State in the name of the State.
``(c) Venue and Service of Process.--Any such action may be
brought in the United States district court for a district
wherein any act, omission, or transaction constituting the
violation occurred, or in such court of the district wherein
the defendant is found or transacts business. In any action
under this section, process may be served on a defendant in
any other district in which the defendant resides or may be
found.''.
(2) The item relating to section 334 in the table of
contents for such Act is amended to read as follows:
``Sec. 334. Jurisdiction and venue.''.
(j) Treatment of Appliances Within Building Codes.--(1)
Section 327(f)(3) of the Energy Policy and Conservation Act
(42 U.S.C. 6297(f)(3)) is amended by striking subparagraphs
(B) through (G) and inserting the following:
``(B) The code meets at least one of the following
requirements:
``(i) The code does not require that the covered product
have an energy efficiency exceeding--
``(I) the applicable energy conservation standard
established in or prescribed under section 325;
``(II) the level required by a regulation of that State for
which the Secretary has issued a rule granting a waiver under
subsection (d) of this section; or
``(III) the required level established in the International
Energy Conservation Code or in a standard of the American
Society of Heating, Refrigerating and Air-Conditioning
Engineers, or by the Secretary pursuant to section 304 of the
Energy Conservation and Production Act.
``(ii) If the code uses one or more baseline building
designs against which all submitted building designs are to
be evaluated and such baseline building designs contain a
covered product subject to an energy conservation standard
established in or prescribed under section 325, the baseline
building designs are based on an efficiency level for such
covered product which meets but does not exceed one of the
levels specified in clause (i).
``(iii) If the code sets forth one or more optional
combinations of items which meet the energy consumption or
conservation objective, in at least one combination that the
State has found to be reasonably achievable using
commercially available technologies the efficiency of the
covered product meets but does not exceed one of the levels
specified in clause (i).
``(C) The credit to the energy consumption or conservation
objective allowed by the code for installing covered products
having energy efficiencies exceeding one of the levels
specified in subparagraph (B)(i) is on a one-for-one
equivalent energy use or equivalent energy cost basis, taking
into account the typical lifetime of the product.
``(D) The energy consumption or conservation objective is
specified in terms of an estimated total consumption of
energy (which may be calculated from energy loss- or gain-
based codes) utilizing an equivalent amount of energy (which
may be specified in units of energy or its equivalent cost)
and equivalent lifetimes.
``(E) The estimated energy use of any covered product
permitted or required in the code, or used in calculating the
objective, is determined using the applicable test procedures
prescribed under section 323, except that the State may
permit the estimated energy use calculation to be adjusted to
reflect the conditions of the areas where the code is being
applied if such adjustment is based on the use of the
applicable test procedures prescribed under section 323 or
other technically accurate documented procedure.''.
(2) Section 327(f)(4)(B) of the Energy Policy and
Conservation Act (42 U.S.C. 6297(f)(4)(B)) is amended to read
as follows:
``(B) If a building code requires the installation of
covered products with efficiencies exceeding the levels and
requirements specified in paragraph (3)(B), such requirement
of the building code shall not be applicable unless the
Secretary has granted a waiver for such requirement under
subsection (d) of this section.''.

SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PROGRAM.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy, in
consultation with the Administrator, shall establish a
program to be known as the ``Best-in-Class Appliances
Deployment Program'' to--
(1) provide bonus payments to retailers or distributors
under subsection (c) for sales of best-in-class high-
efficiency household appliance models, high-efficiency
installed building equipment, and high-efficiency consumer
electronics, with the goal of reducing life-cycle costs for
consumers, encouraging innovation, and maximizing energy
savings and public benefit;
(2) provide bounties under subsection (d) to retailers and
manufacturers for the replacement, retirement, and recycling
of old, inefficient, and environmentally harmful products;
and
(3) provide premium awards under subsection (e) to
manufacturers for developing and producing new Superefficient
Best-in-Class Products.
(b) Designation of Best-in-Class Product Models.--
(1) In general.--The Secretary of Energy shall designate
product models of appliances, equipment, or electronics as
Best-in-Class Product models. The Secretary shall publicly
announce the Best-in-Class Product models designated under
this subsection. The Secretary shall define product classes
broadly and, except as provided in paragraph (2), shall
designate as Best-in-Class Product models no more than the
most efficient 10 percent of the commercially available
product models in a class that demonstrate, as a group, a
distinctly greater energy efficiency than the average energy
efficiency of that class of appliances, equipment, or
electronics. In designating models, the Secretary shall--
(A) identify commercially available models in the relevant
class of products;
(B) identify the subgroup of those models that share the
distinctly higher energy-efficiency characteristics that
warrant designation as best-in-class; and
(C) add other models in that class to the list of Best-in-
Class Product models as they demonstrate their ability to
meet the higher-efficiency characteristics on which the
designation was made.
(2) Percentage exception.--If there are fewer than 10
product models in a class of products, the Secretary may
designate one or more of such models as Best-in-Class
Products.
(3) Review of best-in-class standards.--The Secretary shall
review annually the product-specific criteria for
designating, and the product models that qualify as, Best-in-
Class Products and, after notice and a 30-day comment period,
make upwards adjustments in the efficiency criteria as
necessary to maintain an appropriate ratio of such product
models to the total number of product models in the product
class.
(4) Smart grid energy efficiency savings.--The Secretary
shall include energy efficiency savings achieved by a
commercially available product having smart grid capability
in determining the efficiency level of a product for purposes
of a Best-In-Class Product designation pursuant to this
subsection. In measuring energy efficiency savings achieved
by smart grid capability, the Secretary shall use a metric
that--
(A) is based on the time-differentiated value and amount of
energy consumption;
(B) accounts for the capability of the product to respond
to a smart grid in which the physical capability of the
product to save or delay energy because of a smart grid
feature is weighted by the likelihood that the feature will
be used;
(C) is based on the value of a unit of electric or gas
consumption as a function of time of day and season; and
(D) includes a test method by which the manufacturer shall
determine the energy efficiency of smart grid capable
products.
(c) Bonuses for Sales of Best-in-Class Products.--
(1) In general.--The Secretary of Energy shall make bonus
payments to retailers or, as provided in paragraph (5)(B),
distributors for the sale of Best-in-Class Products.
(2) Bonus program.--The Secretary shall--
(A) publicly announce the availability and amount of the
bonus to be paid for each sale of a Best-in-Class Product of
a model designated under subsection (b); and
(B) make bonus payments in at least that amount for each
Best-in-Class Product of that model sold during the 3-year
period beginning on the date the model is designated under
subsection (b).
(3) Upgrade of best-in-class product eligibility.--In
conducting a review under subsection (b)(3), the Secretary
shall--
(A) consider designating as a Best-in-Class Product model a
Superefficient Best-in-Class Product model that has been
designated pursuant to subsection (e);
(B) announce any change in the bonus payment as necessary
to increase the market share of Best-in-Class Product models;
(C) list models that will be eligible for bonuses in the
new amount; and
(D) continue paying bonus payments at the original level,
for the sale of any models that previously qualified as Best-
in-Class Products but do not qualify at the new level, for

[[Page H7521]]

the remainder of the 3-year period announced with the
original designation.
(4) Size of individual bonus payments.--(A) The size of
each bonus payment under this subsection shall be the product
of--
(i) an amount determined by the Secretary; and
(ii) the difference in energy consumption between the Best-
in-Class Product and the average product in the product
class.
(B) The Secretary shall determine the amount under
subparagraph (A)(i) for each product type, in consultation
with State and utility efficiency program administrators as
well as the Administrator, based on estimates of the amount
of bonus payment that would provide significant incentive to
increase the market share of Best-in-Class Products.
(5) Eligible bonus recipient.--(A) The Secretary shall
ensure that not more than 1 bonus payment is provided under
this subsection for each Best-in-Class Product.
(B) The Secretary may make distributors eligible to receive
bonus payments under this subsection for sales that are not
to the final end-user, to the extent that the Secretary
determines that for a particular product category
distributors are well situated to increase sales of Best-in-
Class Products.
(d) Bounties for Replacement, Retirement, and Recycling of
Existing Low-Efficiency Products.--
(1) In general.--The Secretary of Energy shall make bounty
payments to--
(A) retailers for the replacement, retirement, and
recycling of older operating low-efficiency products that
might otherwise continue in operation; and
(B) manufacturers of Superefficient Best-in-Class Products
for the retirement and recycling of older operating low-
efficiency products that perform the same function and which
might otherwise continue in operation.
(2) Bounties.--Bounties shall be payable--
(A) to a retailer upon documentation that the sale of a
Best-in-Class Product was accompanied by the replacement,
retirement, and recycling of--
(i) an inefficient but still-functioning product; or
(ii) a nonfunctioning product containing a refrigerant, by
the consumer to whom the Best-in-Class Product was sold; and
(B) to a manufacturer upon documentation of the retirement
and recycling of--
(i) an inefficient but still-functioning product from a
consumer to whom a Superefficient Best-in-Class Product was
delivered; or
(ii) a nonfunctioning product containing a refrigerant from
a consumer to whom a Superefficient Best-in-Class Product was
delivered.
(3) Amount.--
(A) Functioning products.--The bounty payment payable under
this subsection for a product described in paragraphs
(2)(A)(i) and (2)(B)(i) shall be based on the difference
between the estimated energy use of the product replaced and
the energy use of an average new product in the product
class, over the estimated remaining lifetime of the product
that was replaced.
(B) Nonfunctioning products containing refrigerants.--The
bounty payment payable under this subsection for a product
described in paragraphs (2)(A)(ii) and (2)(B)(ii) shall be in
the amount that the Secretary of Energy, in consultation with
the Administrator, determines is sufficient to promote the
recycling of such products, up to the amount of bounty for a
comparable product described in paragraphs (2)(A) and (2)(B).
(4) Retirement.--The Secretary shall ensure that no product
for which a bounty is paid under this subsection is returned
to active service, but that it is instead destroyed, and
recycled to the extent feasible.
(5) Recycling appliances containing refrigerants.--
Exclusively for the purpose of implementing the bounty
payment program for products containing a refrigerant under
this section, the Administrator shall establish standards for
environmentally responsible methods of recycling and disposal
of refrigerant-containing appliances that, at a minimum, meet
the requirements set by the Responsible Appliance Disposal
(RAD) Program for refrigerant disposal. The Secretary shall
ensure that such standards are met before a bounty payment is
made under this subsection for a product containing a
refrigerant. Nothing in this section shall be interpreted to
alter the requirements of section 608 of the Clean Air Act or
to relieve any person from complying with those requirements.
(e) Premium Awards for Development and Production of
Superefficient Best-in-Class Products.--
(1) In general.--(A) The Secretary of Energy shall provide
premium awards to manufacturers for the development and
production of Superefficient Best-in-Class Products. The
Secretary shall set and periodically revise standards for
eligibility of products for designation as a Superefficient
Best-in-Class Product.
(B) The Secretary may establish a standard for a
Superefficient Best-in-Class Product even if no product
meeting that standard exists, if the Secretary has reasonable
grounds to conclude that a mass-producible product could be
made to meet that standard.
(C) The Secretary may also establish a Superefficient Best-
in-Class Product standard that is met by one or more existing
Best-in-Class Product models, if those product models have
distinct energy efficiency attributes and performance
characteristics that make them significantly better than
other product models qualifying as best-in-class. The
Secretary may not designate as Superefficient Best-in-Class
Products under this subparagraph models that represent more
than 10 percent of the currently qualifying Best-in-Class
Product models. This subparagraph shall not apply to products
designated pursuant to paragraph (4)(A).
(D) In making its finding on the efficiency level a product
can achieve for purposes of a Superefficient Best-In-Class
Product designation pursuant to this paragraph, the Secretary
shall include energy efficiency savings that would be
achieved by a product as a result of smart grid capability
when a product having such capability can be produced and
sold commercially to mass market consumers. In measuring
energy efficiency savings achieved by smart grid capability,
the Secretary shall use a metric that--
(i) is based on the time-differentiated value and amount of
energy consumption;
(ii) accounts for the capability of the product to respond
to a smart grid in which the physical capability of the
product to save or delay energy because of a smart grid
feature is weighted by the likelihood that the feature will
be used;
(iii) is based on the value of a unit of electric or gas
consumption as a function of time of day and season; and
(iv) includes a test method by which the manufacturer shall
determine the energy efficiency of smart grid capable
products.
(2) Premium awards.--(A) The premium award payment provided
to a manufacturer under this subsection shall be in addition
to any bonus payments made under subsection (c).
(B) The amount of the premium award paid per unit of
Superefficient Best-in-Class Products sold to retailers or
distributors shall, except as provided by subparagraph (F),
be the product of--
(i) an amount determined by the Secretary; and
(ii) the difference in energy consumption between the
Superefficient Best-in-Class Product and the average product
in the product class.
(C) The Secretary shall determine the amount under
subparagraph (B)(i) for each product type, in consultation
with State and utility efficiency program administrators as
well as the Administrator, based on consideration of the
present value to the Nation of the energy (and water or other
resources or inputs) saved over the useful life of the
product. The Secretary may also take into consideration the
methods used to increase sales of qualifying products in
determining such amount.
(D) The Secretary may adjust the value described in
subparagraph (C) upward or downward as appropriate, including
based on the effect of the premium awards on the sales of
products in different classes that may be affected by the
program under this subsection.
(E) Premium award payments shall be applied to sales of any
Superefficient Best-in-Class Product for the first 3 years
after designation as a Superefficient Best-in-Class Product.
(F) For years 2011 through 2013, the Secretary shall make
bonus payments to manufacturers of the products designated in
paragraph (4)(A) for each product produced in the following
amounts:
(i) $75 for each dishwasher.
(ii) $250 for each clothes washer.
(iii) $200 for each refrigerator or refrigerator-freezer.
(iv) $250 for each clothes dryer.
(v) $200 for each cooking product.
(vi) $300 for each water heater.
(3) Coordination of incentives.--No product for which
Federal tax credit is received under section 45M of the
Internal Revenue Code of 1986 shall be eligible to receive
premium award payments pursuant to this subsection.
(4) Designations.--
(A) Initial designations.--Notwithstanding any other
provisions of this section, the products the Secretary shall
designate as a Superefficient Best-In-Class Product include,
but are not limited to, the following products manufactured
in 2011 through 2013:
(i) A dishwasher, clothes washer, refrigerator, or
refrigerator-freezer that meets the highest efficiency
performance standards in its product category as provided in
Section 305(b) of the Emergency Economic Stabilization Act of
2008 and has the smart grid capability specified in paragraph
(5).
(ii) A water heater that meets an efficiency standard that
is the same or equivalent to the standard provided in Section
1333 of the Energy Policy Act of 2005 and has the smart grid
capability specified in paragraph (5).
(iii) A clothes dryer or cooking product that the Secretary
determines meets the standards specified in subsection
(j)(3), which the Secretary shall promulgate no later than
one year after the date of enactment, and has the smart grid
capability specified in paragraph (5).
(B) Extension of initial designations.--
(i) General.--The Secretary shall in 2013 extend the
Superefficient Best-In-Class Product designation of each
product specified in subparagraph (A)(i) through (iii)
through 2017, provided that for each product designation
extended--

(I) the extension will result in significant energy
efficiency savings;
(II) the product meets the Superefficient Best-In-Class
Product criteria specified in paragraph (1);

[[Page H7522]]

(III) the eligibility standards of the product include the
smart grid capability specified in paragraph (5); and
(IV) the Secretary makes appropriate revisions to the
eligibility standards of the product as provided by paragraph
(1).

(ii) Awards.--If a Superefficient Best-In-Class Product
designation for a product is extended pursuant to this
subparagraph, the premium award for the product shall be
determined in accordance with paragraph (2).
(5) Smart grid capability.--
(A) Until the Secretary promulgates criteria under
subparagraph (B), the term ``smart grid capability'' means
capability of receiving and interpreting time-of-use pricing
and peak-load-shed signals from a utility and--
(i) in the case of a cooking product, reducing a minimum of
20 percent during peak demand as measured by the tested
average wattage over the course of a typical operating cycle
of the product; or
(ii) in the case of a clothes washer, a refrigerator, a
dishwasher, a dryer and a water heater, reducing a minimum of
50 percent during peak demand as measured by the tested
average wattage over the course of a typical operating cycle
of the product, provided that the typical operating cycle of
a refrigerator and a water heater shall be a 24-hour period.
(B) After completion of the analysis required under section
142(b) of this Act, the Secretary shall expeditiously
promulgate, after notice and a 30-day public comment period,
criteria for what constitutes ``smart grid capability.''
(f) Reporting.--The Secretary of Energy shall require, as a
condition of receiving a bonus, bounty, or premium award
under this section, that a report containing the following
documentation be provided:
(1) For retailers and distributors, the number of units
sold within each product type, and model-specific wholesale
purchase prices and retail sale prices, on a monthly basis.
(2) For manufacturers, model-specific energy efficiency and
consumption data.
(3) For manufacturers, on an immediate basis, information
concerning any product design or function changes that affect
the energy consumption of the unit.
(4) The methods used to increase the sales of qualifying
products.
(g) Monitoring and Verification Protocols.--The Secretary
of Energy shall establish monitoring and verification
protocols for energy consumption tests for each product model
and for sales of energy-efficient models. The Secretary shall
estimate actual savings of energy from the use of Smart Grid
capability in appliances for which premium award payments are
made pursuant to subsection (e) as a function of utility and
consumer readiness to utilize such capability.
(h) Disclosure.--The Secretary of Energy may require that
manufacturers, retailers and distributors disclose publicly
and to consumers their participation in the program under
this section.
(i) Cost-Effectiveness Requirement.--
(1) Requirement.--The Secretary of Energy shall make cost-
effectiveness a top priority in designing the program under,
and administering, this section, except that the cost-
effectiveness of providing premium awards to manufacturers
under subsection (e), in aggregate, may be lower by this
measure than that of the bonuses and bounties to retailers
and distributors under subsections (c) and (d).
(2) Definitions.--In this subsection:
(A) Cost-effectiveness.--The term ``cost-effectiveness''
means a measure of aggregate savings in the cost of energy
over the lifetime of a product in relation to the cost to the
Secretary of the bonuses, bounties, and premium awards
provided under this section for a product.
(B) Savings.--The term ``savings'' means the cumulative
megawatt-hours of electricity or million British thermal
units of other fuels saved by a product during the projected
useful life of the product, in comparison to projected energy
consumption of the average product in the same class, taking
into consideration the impact of any documented measures to
replace, retire, and recycle low-efficiency products at the
time of purchase of highly-efficient substitutes.
(j) Definitions.--In this section--
(1) the term ``distributor'' mean an individual,
organization, or company that sells products in multiple lots
and not directly to end-users;
(2) the term ``retailer'' means an individual,
organization, or company that sells products directly to end-
users;
(3) the term ``manufacturer'' means an individual,
organization, or company that transforms raw materials into
mass-producible finished goods; and
(4) the term ``Superefficient Best-in-Class Product'' means
a product that--
(A) can be mass produced; and
(B) achieves the highest level of efficiency that the
Secretary of Energy finds can, given the current state of
technology, be produced and sold commercially to mass-market
consumers.
(k) Authorization of Appropriations.--There are authorized
to be appropriated $600,000,000 for each of the fiscal years
2011 through 2013 to the Secretary of Energy for purposes of
this section, and such sums as may be necessary for
subsequent fiscal years. Of funds appropriated, not more than
10 percent for any fiscal year may be expended on program
administration, and not less than 40 percent of any funds
appropriated during fiscal years 2011 through 2013 shall be
for purposes of subsection (e).

SEC. 215. WATERSENSE.

(a) In General.--There is established within the
Environmental Protection Agency a WaterSense program to
identify and promote water efficient products, buildings and
landscapes, and services in order--
(1) to reduce water use;
(2) to reduce the strain on water, wastewater, and
stormwater infrastructure;
(3) to conserve energy used to pump, heat, transport, and
treat water; and
(4) to preserve water resources for future generations,
through voluntary labeling of, or other forms of
communications about, products, buildings and landscapes, and
services that meet the highest water efficiency and
performance standards.
(b) Duties.--The Administrator shall--
(1) promote WaterSense labeled products, buildings and
landscapes, and services in the market place as the preferred
technologies and services for--
(A) reducing water use; and
(B) ensuring product and service performance;
(2) work to enhance public awareness of the WaterSense
label through public outreach, education, and other means;
(3) establish and maintain performance standards so that
products, buildings and landscapes, and services labeled with
the WaterSense label perform as well or better than their
less efficient counterparts;
(4) publicize the need for proper installation and
maintenance of WaterSense products by a licensed, and where
certification guidelines exist, WaterSense-certified
professional to ensure optimal performance;
(5) preserve the integrity of the WaterSense label;
(6) regularly review and, when appropriate, update
WaterSense criteria for categories of products, buildings and
landscapes, and services, at least once every four years;
(7) to the extent practical, regularly estimate and make
available to the public the production and relative market
shares of WaterSense labeled products, buildings and
landscapes, and services, at least annually;
(8) to the extent practical, regularly estimate and make
available to the public the water and energy savings
attributable to the use of WaterSense labeled products,
buildings and landscapes, and services, at least annually;
(9) solicit comments from interested parties and the public
prior to establishing or revising a WaterSense category,
specification, installation criterion, or other criterion (or
prior to effective dates for any such category,
specification, installation criterion, or other criterion);
(10) provide reasonable notice to interested parties and
the public of any changes (including effective dates), on the
adoption of a new or revised category, specification,
installation criterion, or other criterion, along with--
(A) an explanation of changes; and
(B) as appropriate, responses to comments submitted by
interested parties;
(11) provide appropriate lead time (as determined by the
Administrator) prior to the applicable effective date for a
new or significant revision to a category, specification,
installation criterion, or other criterion, taking into
account the timing requirements of the manufacturing,
marketing, training, and distribution process for the
specific product, building and landscape, or service category
addressed; and
(12) identify and, where appropriate, implement other
voluntary approaches in commercial, institutional,
residential, municipal, and industrial sectors to encourage
reuse and recycling technologies, improve water efficiency,
or lower water use while meeting, where applicable, the
performance standards established under paragraph (3).
(c) Authorization of Appropriations.--There are authorized
to be appropriated $7,500,000 for fiscal year 2010,
$10,000,000 for fiscal year 2011, $20,000,000 for fiscal year
2012, and $50,000,000 for fiscal year 2013 and each year
thereafter, adjusted for inflation, to carry out this
section.

SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.

(a) Definitions.--In this section:
(1) Agency.--The term ``agency'' has the meaning given that
term in section 7902(a) of title 5, United States Code.
(2) Watersense product or service.--The term ``WaterSense
product or service'' means a product or service that is rated
for water efficiency under the WaterSense program.
(3) Watersense program.--The term ``WaterSense program''
means the program established by section 215 of this Act.
(4) FEMP designated product.--The term ``FEMP designated
product'' means a product that is designated under the
Federal Energy Management Program of the Department of Energy
as being among the highest 25 percent of equivalent products
for efficiency.
(5) Product and service.--The terms ``product'' and
``service'' do not include any water consuming product or
service designed or procured for combat or combat-related
missions. The terms also exclude products or services already
covered by the Federal procurement regulations established
under section 553 of the National Energy Conservation Policy
Act (42 U.S.C. 8259b).
(b) Procurement of Water Efficient Products.--
(1) Requirement.--To meet the requirements of an agency for
a water consuming product or service, the head of the agency

[[Page H7523]]

shall, except as provided in paragraph (2), procure--
(A) a WaterSense product or service; or
(B) a FEMP designated product.
A WaterSense plumbing product should preferably, when
possible, be installed by a licensed and, when WaterSense
certification guidelines exist, WaterSense-certified plumber
or mechanical contractor, and a WaterSense irrigation system
should preferably, when possible, be installed, maintained,
and audited by a WaterSense-certified irrigation professional
to ensure optimal performance.
(2) Exceptions.--The head of an agency is not required to
procure a WaterSense product or service or FEMP designated
product under paragraph (1) if the head of the agency finds
in writing that--
(A) a WaterSense product or service or FEMP designated
product is not cost-effective over the life of the product,
taking energy and water cost savings into account; or
(B) no WaterSense product or service or FEMP designated
product is reasonably available that meets the functional
requirements of the agency.
(3) Procurement planning.--The head of an agency shall
incorporate into the specifications for all procurements
involving water consuming products and systems, including
guide specifications, project specifications, and
construction, renovation, and services contracts that include
provision of water consuming products and systems, and into
the factors for the evaluation of offers received for the
procurement, criteria used for rating WaterSense products and
services and FEMP designated products. The head of an agency
shall consider, to the maximum extent practicable, additional
measures for reducing agency water consumption, including
water reuse technologies, leak detection and repair, and use
of waterless products that perform similar functions to
existing water-consuming products.
(c) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Energy, working in
coordination with the Administrator, shall issue guidelines
to carry out this section.

SEC. 217. EARLY ADOPTER WATER EFFICIENT PRODUCT INCENTIVE
PROGRAMS.

(a) Definitions.--In this section:
(1) Eligible state.--The term ``eligible entity'' means a
State government, local or county government, tribal
government, wastewater or sewerage utility, municipal water
authority, energy utility, water utility, or nonprofit
organization that meets the requirements of subsection (b).
(2) Incentive program.--The term ``incentive program''
means a program for administering financial incentives for
consumer purchase and installation of residential water
efficient products and services as described in subsection
(b)(1).
(3) Residential water efficient product or service.--The
term ``residential water efficient product or service'' means
a product or service for a single-family or multifamily
residence or its landscape that is rated for water efficiency
and performance--
(A) by the WaterSense program; or
(B) where a WaterSense specification does not exist; by an
incentive program.
Categories of water efficient products and services may
include faucets, irrigation technologies and services, point-
of-use water treatment devices, reuse and recycling
technologies, toilets, and showerheads.
(4) Watersense program.--The term ``WaterSense program''
means the program established by section 215 of this Act.
(b) Eligible Entities..--An entity shall be eligible to
receive an allocation under subsection (c) if the entity--
(1) establishes (or has established) an incentive program
to provide rebates, vouchers, other financial incentives, or
direct installs to consumers for the purchase of residential
water efficient products or services;
(2) submits an application for the allocation at such time,
in such form, and containing such information as the
Administrator may require; and
(3) provides assurances satisfactory to the Administrator
that the entity will use the allocation to supplement, but
not supplant, funds made available to carry out the incentive
program.
(c) Amount of Allocations.--For each fiscal year, the
Administrator shall determine the amount to allocate to each
eligible entity to carry out subsection (d) taking into
consideration--
(1) the population served by the eligible entity in the
most recent calendar year for which data are available;
(2) the targeted population of the eligible entity's
incentive program, such as general households, low-income
households, or first-time homeowners, and the probable
effectiveness of the incentive program for that population;
(3) for existing programs, the effectiveness of the
incentive program in encouraging the adoption of water
efficient products and services; and
(4) any prior year's allocation to the eligible entity that
remains unused.
(d) Use of Allocated Funds.--Funds allocated to an entity
under subsection (c) may be used to pay up to 50 percent of
the cost of establishing and carrying out an incentive
program.
(e) Fixture Recycling.--Entities are encouraged to promote
or implement fixture recycling programs to manage the
disposal of older fixtures replaced due to the incentive
program under this section.
(f) Issuance of Incentives.--Financial incentives may be
provided to consumers that meet the requirements of the
incentive program. The entity may issue all financial
incentives directly to consumers or, with approval of the
Administrator, delegate some or all financial incentive
administration to other organizations including, but not
limited to local governments, municipal water authorities,
and water utilities. The amount of a financial incentive
shall be determined by the entity, taking into
consideration--
(1) the amount of the allocation to the entity under
subsection (c);
(2) the amount of any Federal, State, or other
organization's tax or financial incentive available for the
purchase of the residential water efficient product or
service;
(3) the amount necessary to change consumer behavior to
purchase water efficient products and services; and
(4) the consumer expenditures for onsite preparation,
assembly, and original installation of the product.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section $50,000,000 for fiscal years 2010, $100,000,000 for
fiscal year 2011, $150,000,000 for fiscal year 2012,
$100,000,000 for fiscal year 2013, and $50,000,000 for fiscal
year 2014.

SEC. 218. CERTIFIED STOVES PROGRAM.

(a) Definitions.--In this section:
(1) Agency.--The term ``Agency'' means the Environmental
Protection Agency.
(2) Wood stove or pellet stove.--The term ``wood stove or
pellet stove'' means a wood stove, pellet stove, or fireplace
insert that uses wood or pellets for fuel.
(3) Certified stove.--The term ``certified stove'' means a
wood stove or pellet stove that meets the standards of
performance for new residential wood heaters under subpart
AAA of part 60 of subchapter C of chapter I of title 40, Code
of Federal Regulations (or successor regulations), as
certified by the Administrator. Pellet stoves and fireplace
inserts using pellets for fuel that are exempt from testing
by the Administrator but meet the same standards of
performance as wood stoves are considered certified for the
purposes of this section.
(4) Eligible entity.--The term ``eligible entity'' means--
(A) a State, a local government, or a federally recognized
Indian tribe;
(B) Alaskan Native villages or regional or village
corporations (as defined in, or established under, the
Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et
seq.)); and
(C) a nonprofit organization or institution that--
(i) represents or provides pollution reduction or
educational services relating to wood smoke minimization to
persons, organizations, or communities; or
(ii) has, as its principal purpose, the promotion of air
quality or energy efficiency.
(b) Establishment.--The Administrator shall establish and
carry out a program to assist in the replacement of wood
stoves or pellet stoves that do not meet the standards of
performance referred to in subsection (a)(4) by--
(1) requiring that each wood stove or pellet stove sold in
the United States on and after the date of enactment of this
Act meet the standards of performance referred to in
subsection (a)(4);
(2) requiring that no wood stove or pellet stove replaced
under this program is sold or returned to active service, but
that it is instead destroyed and recycled to the maximum
extent feasible;
(3) providing funds to an eligible entity to replace a wood
stove or pellet stove that does not meet the standards of
performance in subsection (a)(4) with a certified stove,
including funds to pay for--
(A) installation of a replacement certified stove; and
(B) necessary replacement of or repairs to ventilation,
flues, chimneys, or other relevant items necessary for safe
installation of a replacement certified stove;
(4) in addition to any funds that may be appropriated for
the program under this subsection, using existing Federal,
State, and local programs and incentives, to the greatest
extent practicable;
(5) prioritizing the replacement of wood stoves or pellet
stoves manufactured before July 1, 1990; and
(6) carrying out such other activities as the Administrator
determines appropriate to facilitate the replacement of wood
stoves or pellet stoves that do not meet the standards of
performance referred to in subsection (a)(3).
(c) Regulations.--The Administrator may promulgate such
regulations as are necessary to carry out the program
established under subsection (b).
(d) Funding.--
(1) Authorization of appropriations.--There are authorized
to be appropriated to carry out the program under this
section $20,000,000 for the period of fiscal years 2010
through 2014.
(2) Designated use.--Of amounts appropriated pursuant to
this subsection--
(A) 25 percent shall be designated for use to carry out the
program under this section on lands held in trust for the
benefit of a federally recognized Indian tribe;
(B) 3 percent shall be designated for use to carry out the
program under this section in Alaskan Native villages or
regional or village corporations (as defined in, or
established under, the Alaskan Native Claims Settlement Act
(43 U.S.C. 1601 et seq.)); and

[[Page H7524]]

(C) 72 percent shall be designated for use to carry out the
program under this section nationwide.
(3) Regulatory programs.--
(A) In general.--No grant or loan provided under this
section shall be used to fund the costs of emissions
reductions that are mandated under Federal, State, or local
law.
(B) Mandated.--For purposes of subparagraph (A), voluntary
or elective emission reduction measures shall not be
considered ``mandated'', regardless of whether the reductions
are included in the implementation plan of a State.
(e) EPA Authority to Accept Wood Stove or Pellet Stove
Replacement Supplemental Environmental Projects.--
(1) In general.--The Administrator may accept
(notwithstanding sections 3302 and 1301 of title 31, United
States Code) wood stove or pellet stove replacement
Supplemental Environmental Projects if such projects, as part
of a settlement of any alleged violation of environmental
law--
(A) protect human health or the environment;
(B) are related to the underlying alleged violation;
(C) do not constitute activities that the defendant would
otherwise be legally required to perform; and
(D) do not provide funds for the staff of the Agency or for
contractors to carry out the Agency's internal operations.
(2) Certification.--In any settlement agreement regarding
an alleged violation of environmental law in which a
defendant agrees to perform a wood stove or pellet stove
replacement Supplemental Environmental Project, the
Administrator shall require the defendant to include in the
settlement documents a certification under penalty of law
that the defendant would have agreed to perform a comparably
valued, alternative project other than a wood stove or pellet
stove replacement Supplemental Environmental Project if the
Administrator were precluded by law from accepting a wood
stove or pellet stove replacement Supplemental Environmental
Project. A failure by the Administrator to include this
language in such a settlement agreement shall not create a
cause of action against the United States under the Clean Air
Act or any other law or create a basis for overturning a
settlement agreement entered into by the United States.

SEC. 219. ENERGY STAR STANDARDS.

(a) Energy Star.--Section 324A(c) of the Energy Policy and
Conservation Act is amended--
(1) in paragraph (6)(B), by striking ``and'' after the
semicolon at the end;
(2) in paragraph (7), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(8) not later than 18 months after the date of enactment
of this paragraph, establish and implement a rating system
for products identified as Energy Star products pursuant to
this section to provide consumers with the most helpful
information on the relative energy efficiency, including cost
effectiveness from the consumer's perspective, and relative
length of time for consumers to recover costs attributable to
the energy efficient features, of those products, unless the
Administrator and the Secretary communicate to Congress that
establishing such a system would diminish the value of the
Energy Star brand to consumers;
``(9)(A) review the Energy Star product criteria for the 10
product models in each product category with the greatest
energy consumption at least once every 3 years; and
``(B) based on the review, update and publish the Energy
Star product criteria for each such category, as necessary;
and
``(10) require periodic verification of compliance with the
Energy Star product criteria by products identified as Energy
Star products pursuant to this section, including--
``(A) purchase and testing of products from the market; or
``(B) other appropriate testing and compliance
approaches.''.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to carry out the amendments made by this
section $5,000,000 for fiscal year 2010 and for each fiscal
year thereafter.

Subtitle C--Transportation Efficiency

SEC. 221. EMISSIONS STANDARDS.

Title VIII of the Clean Air Act, as added by section 331 of
this Act, is amended by inserting after part A the following
new part:

``PART B--MOBILE SOURCES

``SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR MOBILE
SOURCES.

``(a) New Motor Vehicles and New Motor Vehicle Engines.--
(1) Pursuant to section 202(a)(1), by December 31, 2010, the
Administrator shall promulgate standards applicable to
emissions of greenhouse gases from new heavy-duty motor
vehicles or new heavy-duty motor vehicle engines, excluding
such motor vehicles covered by the Tier II standards (as
established by the Administrator as of the date of the
enactment of this section). The Administrator may revise
these standards from time to time.
``(2) Regulations issued under section 202(a)(1) applicable
to emissions of greenhouse gases from new heavy-duty motor
vehicles or new heavy-duty motor vehicle engines, excluding
such motor vehicles covered by the Tier II standards (as
established by the Administrator as of the date of the
enactment of this section), shall contain standards that
reflect the greatest degree of emissions reduction achievable
through the application of technology which the Administrator
determines will be available for the model year to which such
standards apply, giving appropriate consideration to cost,
energy, and safety factors associated with the application of
such technology. Any such regulations shall take effect after
such period as the Administrator finds necessary to permit
the development and application of the requisite technology,
and, at a minimum, shall apply for a period no less than 3
model years beginning no earlier than the model year
commencing 4 years after such regulations are promulgated.
``(3) Regulations issued under section 202(a)(1) applicable
to emissions of greenhouse gases from new heavy-duty motor
vehicles or new heavy-duty motor vehicle engines, excluding
such motor vehicles covered by the Tier II standards (as
established by the Administrator as of the date of the
enactment of this section), shall supersede and satisfy any
and all of the rulemaking and compliance requirements of
section 32902(k) of title 49, United States Code.
``(4) Other than as specifically set forth in paragraph (3)
of this subsection, nothing in this section shall affect or
otherwise increase or diminish the authority of the Secretary
of Transportation to adopt regulations to improve the overall
fuel efficiency of the commercial goods movement system.
``(b) Nonroad Vehicles and Engines.--(1) Pursuant to
section 213(a)(4) and (5), the Administrator shall identify
those classes or categories of new nonroad vehicles or
engines, or combinations of such classes or categories, that,
in the judgment of the Administrator, both contribute
significantly to the total emissions of greenhouse gases from
nonroad engines and vehicles, and provide the greatest
potential for significant and cost-effective reductions in
emissions of greenhouse gases. The Administrator shall
promulgate standards applicable to emissions of greenhouse
gases from these new nonroad engines or vehicles by December
31, 2012. The Administrator shall also promulgate standards
applicable to emissions of greenhouse gases for such other
classes and categories of new nonroad vehicles and engines as
the Administrator determines appropriate and in the timeframe
the Administrator determines appropriate. The Administrator
shall base such determination, among other factors, on the
relative contribution of greenhouse gas emissions, and the
costs for achieving reductions, from such classes or
categories of new nonroad engines and vehicles. The
Administrator may revise these standards from time to time.
``(2) Standards under section 213(a)(4) and (5) applicable
to emissions of greenhouse gases from those classes or
categories of new nonroad engines or vehicles identified in
the first sentence of paragraph (1) of this subsection, shall
achieve the greatest degree of emissions reduction achievable
based on the application of technology which the
Administrator determines will be available at the time such
standards take effect, taking into consideration cost,
energy, and safety factors associated with the application of
such technology. Any such regulations shall take effect at
the earliest possible date after such period as the
Administrator finds necessary to permit the development and
application of the requisite technology, giving appropriate
consideration to the cost of compliance within such period,
the applicable compliance dates for other standards, and
other appropriate factors, including the period of time
appropriate for the transfer of applicable technology from
other applications, including motor vehicles, and the period
of time in which previously promulgated regulations have been
in effect.
``(3) For purposes of this section and standards under
section 213(a)(4) or (5) applicable to emissions of
greenhouse gases, the term `nonroad engines and vehicles'
shall include non-internal combustion engines and the
vehicles these engines power (such as electric engines and
electric vehicles), for those non-internal combustion engines
and vehicles which would be in the same category and have the
same uses as nonroad engines and vehicles that are powered by
internal combustion engines.
``(c) Averaging, Banking, and Trading of Emissions
Credits.--In establishing standards applicable to emissions
of greenhouse gases pursuant to this section and sections
202(a), 213(a)(4) and (5), and 231(a), the Administrator may
establish provisions for averaging, banking, and trading of
greenhouse gas emissions credits within or across classes or
categories of motor vehicles and motor vehicle engines,
nonroad vehicles and engines (including marine vessels), and
aircraft and aircraft engines, to the extent the
Administrator determines appropriate and considering the
factors appropriate in setting standards under those
sections. Such provisions may include reasonable and
appropriate provisions concerning generation, banking,
trading, duration, and use of credits.
``(d) Reports.--The Administrator shall, from time to time,
submit a report to Congress that projects the amount of
greenhouse gas emissions from the transportation sector,
including transportation fuels, for the years 2030 and 2050,
based on the standards adopted under this section.
``(e) Greenhouse Gases.--Notwithstanding the provisions of
section 711, hydrofluorocarbons shall be considered a
greenhouse gas for purposes of this section.''.

[[Page H7525]]

SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH
TRANSPORTATION EFFICIENCY.

(a) Environmental Protection Agency.--Title VIII of the
Clean Air Act, as added by section 331 of this Act, is
further amended by inserting after part C the following new
part:

``PART D--TRANSPORTATION EMISSIONS

``SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH
TRANSPORTATION EFFICIENCY.

``(a) In General.--The Administrator, in consultation with
the Secretary of Transportation, shall promulgate, and update
from time to time, regulations to establish national
transportation-related greenhouse gas emissions reduction
goals, standardized models and methodologies for use in
developing surface transportation-related greenhouse gas
emissions reduction targets pursuant to sections 134 and 135
of title 23 of the United States Code and methods for
collection of data on transportation-related greenhouse gas
emissions. Such goals shall be commensurate with the
emissions reductions goals established under the American
Clean Energy and Security Act of 2009. In establishing such
goals, models, and methodologies, the Administrator shall
consult with States and metropolitan planning organizations
and may utilize existing models and methodologies.
``(b) Timing.--The Administrator shall--
``(1) publish proposed regulations under subsection (a) not
later than 12 months after the date of enactment of this
section; and
``(2) promulgate final regulations under subsection (a) not
later than 18 months after the date of enactment of this
section.
``(c) Assessment.--At least every 6 years after
promulgating final regulations under subsection (a), the
Administrator, jointly with the Secretary of Transportation,
shall assess current and projected progress in reducing
national transportation-related greenhouse gas emissions. The
assessment shall examine the contributions to emissions
reductions attributable to improvements in vehicle
efficiency, greenhouse gas performance of transportation
fuels, increased efficiency in utilizing transportation
systems and the effects of local and State planning.''.
(b) Metropolitan Planning Organizations.--Section 134 of
title 23 of the United States Code is amended as follows:
(1) In subsection (a)(1)--
(A) by striking ``minimizing'' and inserting ``reducing'';
and
(B) by inserting ``, reliance on oil, impacts on the
environment, transportation-related greenhouse gas
emissions'' after ``consumption''.
(2) In subsection (h)(1)(E)--
(A) by inserting ``sustainability and livability, reduce
surface transportation-related greenhouse gas emissions and
reliance on oil, adapt to the effects of climate change,''
after ``energy conservation'';
(B) by inserting ``and public health'' after ``quality of
life''; and
(C) by inserting ``, including housing and land use
patterns'' after ``development patterns''.
(3) In subsection (i)(4)(A) by inserting ``air quality,
public health, housing, transportation,'' after
``conservation,''.
(4) In subsection (k) by inserting at the end the following
new paragraph:
``(6) Emissions reduction process.--
``(A) In general.--Within a metropolitan planning area
serving a transportation management area, the transportation
planning process under this section shall address
transportation-related greenhouse gas emissions by including
emission reduction targets and strategies.
``(B) Establishment of emissions reduction targets and
strategies.--
``(i) In general.--Not later than one year after the
promulgation of the final regulations required under section
841 of the Clean Air Act, each metropolitan planning
organization shall develop surface transportation-related
greenhouse gas emission reduction targets, as well as
strategies to meet such targets, as part of the
transportation planning process under this section. If more
than one metropolitan planning organization has been
designated within a metropolitan planning area serving a
transportation management area, each such metropolitan
planning organization shall work cooperatively with other
such organization to develop the surface transportation-
related greenhouse gas emission reduction targets required
under this subparagraph.
``(ii) Minimum requirements.--Each metropolitan planning
organization that develops targets and strategies required
under clause (i) shall demonstrate progress in stabilizing
and reducing transportation-related greenhouse gas emissions
in each metropolitan planning area serving a surface
transportation management area. The targets and strategies
shall, at a minimum--

``(I) be based on the models and methodologies established
in the final regulations required under section 841 of the
Clean Air Act;
``(II) address sources of surface transportation-related
greenhouse gas emissions and contribute to achievement of the
national transportation-related greenhouse gas emissions
reduction goals;
``(III) include efforts to increase public transportation
ridership; and
``(IV) include efforts to increase walking, bicycling, and
other forms of nonmotorized transportation.

``(C) Public notice.--Each metropolitan planning
organization shall make its emission reduction targets and
strategies, and an analysis of the anticipated effects
thereof, available to the public through its Web site.
``(D) Enforcement.--If the Secretary finds that a
metropolitan planning organization has failed to develop,
submit or publish its emission reduction targets and
strategies, the Secretary shall not certify that the
requirements of this section are met with respect to the
metropolitan planning process of such organization.''.
(c) States.--Section 135 of title 23 of the United States
Code is amended as follows:
(1) In subsection (d)(1)(E)--
(A) by inserting ``sustainability and livability, reduce
surface transportation-related greenhouse gas emissions and
reliance on oil, adapt to the effects of climate change,''
after ``energy conservation'';
(B) by inserting ``and public health'' after ``quality of
life''; and
(C) by inserting ``, including housing and land use
patterns'' after ``development patterns''.
(2) In subsection (f)(2)(D)(i) by inserting ``air quality,
public health, housing, transportation,'' after
``conservation,''.
(3) In subsection (f) by inserting at the end the following
new paragraph:
``(9) Emissions reduction process.--
``(A) In general.--Within a State, the transportation
planning process under this section shall address
transportation-related greenhouse gas emissions by including
emission reduction targets and strategies.
``(B) Establishment of emissions reduction targets and
strategies.--
``(i) In general.--Not later than one year after the
promulgation of the final regulations required under section
841 of the Clean Air Act, each State shall develop surface
transportation-related greenhouse gas emission reduction
targets, as well as strategies to meet such targets, as part
of the transportation planning process under this section.
``(ii) Minimum requirements.--Each State that develops
targets and strategies required under clause (i) shall
demonstrate progress in stabilizing and reducing
transportation-related greenhouse gas emissions in such
State. The targets and strategies shall, at a minimum,

``(I) be based on the models and methodologies established
in the final regulations required under section 841 of the
Clean Air Act;
``(II) address sources of surface transportation-related
greenhouse gas emissions and contribute to achievement of the
national transportation-related greenhouse gas emissions
reduction goals;
``(III) include efforts to increase public transportation
ridership; and
``(IV) include efforts to increase walking, bicycling, and
other forms of nonmotorized transportation.

``(D) Public notice.--Each State shall make its emission
reduction targets and strategies, and an analysis of the
anticipated effects thereof, available to the public through
its Web site.
``(E) Enforcement.--If the Secretary finds that a State has
failed to develop, submit or publish its emission reduction
targets and strategies, the Secretary shall not certify that
the requirements of this section are met with respect to the
statewide planning process of such State.''.
(d) Department of Transportation.--The Secretary of
Transportation shall establish appropriate requirements,
including performance measures, to ensure that transportation
plans developed under sections 134 and 135 of title 23 of the
United States Code sufficiently meet the requirements of this
section, including achieving progress towards national
transportation-related greenhouse gas emissions reduction
goals.

SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

Part B of title VIII of the Clean Air Act, as added by
section 221 of this Act is amended by adding after section
821 the following section:

``SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

``(a) In General.--There is established within the
Environmental Protection Agency a SmartWay Transport Program
to quantify, demonstrate, and promote the benefits of
technologies, products, fuels, and operational strategies
that reduce petroleum consumption, air pollution, and
greenhouse gas emissions from the mobile source sector.
``(b) General Duties.--Under the program established under
this section, the Administrator shall carry out each of the
following:
``(1) Development of measurement protocols to evaluate the
energy consumption and greenhouse gas impacts from
technologies and strategies in the mobile source sector,
including those for passenger transport and goods movement.
``(2) Development of qualifying thresholds for certifying,
verifying, or designating energy-efficient, low-greenhouse
gas SmartWay technologies and strategies for each mode of
passenger transportation and goods movement.
``(3) Development of partnership and recognition programs
to promote best practices and drive demand for energy-
efficient, low-greenhouse gas transportation performance.
``(4) Promotion of the availability of, and encouragement
of the adoption of, SmartWay certified or verified
technologies and strategies, and publication of the
availability of financial incentives, such as assistance from
loan programs and other Federal and State incentives.
``(c) Smartway Transport Freight Partnership.--The
Administrator shall establish a SmartWay Transport Freight
Partnership

[[Page H7526]]

program with shippers and carriers of goods to promote
energy-efficient, low-greenhouse gas transportation. In
carrying out such partnership, the Administrator shall
undertake each of the following:
``(1) Certification of the energy and greenhouse gas
performance of participating freight carriers, including
those operating rail, trucking, marine, and other goods
movement operations.
``(2) Publication of a comprehensive energy and greenhouse
gas performance index of freight modes (including rail,
trucking, marine, and other modes of transporting goods) and
individual freight companies so that shippers can choose to
deliver their goods more efficiently.
``(3) Development of tools for--
``(A) carriers to calculate their energy and greenhouse gas
performance; and
``(B) shippers to calculate the energy and greenhouse gas
impacts of moving their products and to evaluate the relative
impacts from transporting their goods by different modes and
corporate carriers.
``(4) Provision of recognition opportunities for
participating shipper and carrier companies demonstrating
advanced practices and achieving superior levels of
greenhouse gas performance.
``(d) Improving Freight Greenhouse Gas Performance
Databases.--The Administrator shall, in coordination with
other appropriate agencies, define and collect data on the
physical and operational characteristics of the Nation's
truck population, with special emphasis on data related to
energy efficiency and greenhouse gas performance to inform
the performance index published under subsection (c)(2) of
this section, and other means of goods transport as
necessary, at least every 5 years.
``(e) Establishment of Financing Program.--The
Administrator shall establish a SmartWay Financing Program to
competitively award funding to eligible entities identified
by the Administrator in accordance with the program
requirements in subsection (g).
``(f) Purpose.--Under the SmartWay Financing Program,
eligible entities shall--
``(1) use funds awarded by the Administrator to provide
flexible loan and lease terms that increase approval rates or
lower the costs of loans and leases in accordance with
guidance developed by the Administrator; and
``(2) make such loans and leases available to public and
private entities for the purpose of adopting low-greenhouse
gas technologies or strategies for the mobile source sector
that are designated by the Administrator.
``(g) Program Requirements.--The Administrator shall
determine program design elements and requirements,
including--
``(1) the type of financial mechanism with which to award
funding, in the form of grants or contracts;
``(2) the designation of eligible entities to receive
funding, including State, tribal, and local governments,
regional organizations comprised of governmental units,
nonprofit organizations, or for-profit companies;
``(3) criteria for evaluating applications from eligible
entities, including anticipated--
``(A) cost-effectiveness of loan or lease program on a
metric-ton-of-greenhouse gas-saved-per-dollar basis;
``(B) ability to promote the loan or lease program and
associated technologies and strategies to the target
audience; and
``(4) reporting requirements for entities that receive
awards, including--
``(A) actual cost-effectiveness and greenhouse gas savings
from the loan or lease program based on a methodology
designated by the Administrator;
``(B) the total number of applications and number of
approved applications; and
``(C) terms granted to loan and lease recipients compared
to prevailing market practices.
``(h) Authorization of Appropriations.--Such sums as
necessary are authorized to be appropriated to the
Administrator to carry out this section.''.

SEC. 224. STATE VEHICLE FLEETS.

Section 507(o) of the Energy Policy Act of 1992 (42 U.S.C.
13257) is amended by adding the following new paragraph at
the end thereof:
``(3) The Secretary shall revise the rules under this
subsection with respect to the types of alternative fueled
vehicles required for compliance with this subsection to
ensure those rules are consistent with any guidance issued
pursuant to section 303 of this Act.''.

Subtitle D--Industrial Energy Efficiency Programs

SEC. 241. INDUSTRIAL PLANT ENERGY EFFICIENCY STANDARDS.

The Secretary of Energy shall continue to support the
development of the American National Standards Institute
(ANSI) voluntary industrial plant energy efficiency
certification program, pending International Standards
Organization (ISO) consensus standard 50001, and other
related ANSI/ISO standards. In addition, the Department shall
undertake complementary activities through the Department of
Energy's Industry Technologies Program that support the
voluntary implementation of such standards by manufacturing
firms. There are authorized to be appropriated to the
Secretary such sums as are necessary to carry out these
activities. The Secretary shall report to Congress on the
status of standards development and plans for further
standards development pursuant to this section by not later
than 18 months after the date of enactment of this Act, and
shall prepare a second such report 18 months thereafter.

SEC. 242. ELECTRIC AND THERMAL WASTE ENERGY RECOVERY AWARD
PROGRAM.

(a) Electric and Thermal Waste Energy Recovery Awards.--The
Secretary of Energy shall establish a program to make
monetary awards to the owners and operators of new and
existing electric energy generation facilities or thermal
energy production facilities using fossil or nuclear fuel, to
encourage them to use innovative means of recovering any
thermal energy that is a potentially useful byproduct of
electric power generation or other processes to--
(1) generate additional electric energy; or
(2) make sales of thermal energy not used for electric
generation, in the form of steam, hot water, chilled water,
or desiccant regeneration, or for other commercially valid
purposes.
(b) Amount of Awards.--
(1) Eligibility.--Awards shall be made under subsection (a)
only for the use of innovative means that achieve net energy
efficiency at the facility concerned significantly greater
than the current standard technology in use at similar
facilities.
(2) Amount.--The amount of an award made under subsection
(a) shall equal an amount up to the value of 25 percent of
the energy projected to be recovered or generated during the
first 5 years of operation of the facility using the
innovative energy recovery method, or such lesser amount that
the Secretary determines to be the minimum amount that can
cost-effectively stimulate such innovation.
(3) Limitation.--No person may receive an award under this
section if a grant under the waste energy incentive grant
program under section 373 of the Energy Policy and
Conservation Act (42 U.S.C. 6343) is made for the same energy
savings resulting from the same innovative method.
(c) Regulatory Status.--The Secretary of Energy shall--
(1) assist State regulatory commissions to identify and
make changes in State regulatory programs for electric
utilities to provide appropriate regulatory status for
thermal energy byproduct businesses of regulated electric
utilities to encourage those utilities to enter businesses
making the sales referred to in subsection (a)(2); and
(2) encourage self-regulated utilities to enter businesses
making the sales referred to in subsection (a)(2).
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy such sums as
are necessary for the purposes of this section.

SEC. 243. CLARIFYING ELECTION OF WASTE HEAT RECOVERY
FINANCIAL INCENTIVES.

Section 373(e) of the Energy Policy and Conservation Act
(42 U.S.C. 6343(e)) is amended--
(1) by striking ``that qualifies for'' and inserting ``who
elects to claim''; and
(2) by inserting ``from that project'' after ``for waste
heat recovery''.

SEC. 244. MOTOR MARKET ASSESSMENT AND COMMERCIAL AWARENESS
PROGRAM.

(a) Findings.--Congress finds that--
(1) electric motor systems account for about half of the
electricity used in the United States;
(2) electric motor energy use is determined by both the
efficiency of the motor and the system in which the motor
operates;
(3) Federal Government research on motor end use and
efficiency opportunities is more than a decade old; and
(4) the Census Bureau has discontinued collection of data
on motor and generator importation, manufacture, shipment,
and sales.
(b) Definitions.--In this section:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Interested parties.--The term ``interested parties''
includes--
(A) trade associations;
(B) motor manufacturers;
(C) motor end users;
(D) electric utilities; and
(E) individuals and entities that conduct energy efficiency
programs.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy, in consultation with interested parties.
(c) Assessment.--The Secretary shall conduct an assessment
of electric motors and the electric motor market in the
United States that shall--
(1) include important subsectors of the industrial and
commercial electric motor market (as determined by the
Secretary), including--
(A) the stock of motors and motor-driven equipment;
(B) efficiency categories of the motor population; and
(C) motor systems that use drives, servos, and other
control technologies;
(2) characterize and estimate the opportunities for
improvement in the energy efficiency of motor systems by
market segment, including opportunities for--
(A) expanded use of drives, servos, and other control
technologies;
(B) expanded use of process control, pumps, compressors,
fans or blowers, and material handling components; and
(C) substitution of existing motor designs with existing
and future advanced motor designs, including electronically
commutated permanent magnet, interior permanent magnet, and
switched reluctance motors; and

[[Page H7527]]

(3) develop an updated profile of motor system purchase and
maintenance practices, including surveying the number of
companies that have motor purchase and repair specifications,
by company size, number of employees, and sales.
(d) Recommendations; Update.--Based on the assessment
conducted under subsection (c), the Secretary shall--
(1) develop--
(A) recommendations to update the detailed motor profile on
a periodic basis;
(B) methods to estimate the energy savings and market
penetration that is attributable to the Save Energy Now
Program of the Department; and
(C) recommendations for the Director of the Census Bureau
on market surveys that should be undertaken in support of the
motor system activities of the Department; and
(2) prepare an update to the Motor Master+ program of the
Department.
(e) Program.--Based on the assessment, recommendations, and
update required under subsections (c) and (d), the Secretary
shall establish a proactive, national program targeted at
motor end-users and delivered in cooperation with interested
parties to increase awareness of--
(1) the energy and cost-saving opportunities in commercial
and industrial facilities using higher efficiency electric
motors;
(2) improvements in motor system procurement and management
procedures in the selection of higher efficiency electric
motors and motor-system components, including drives,
controls, and driven equipment; and
(3) criteria for making decisions for new, replacement, or
repair motor and motor system components.

SEC. 245. MOTOR EFFICIENCY REBATE PROGRAM.

(a) In General.--Part C of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6311 et seq.) is amended by
adding at the end the following:

``SEC. 347. MOTOR EFFICIENCY REBATE PROGRAM.

``(a) Establishment.--Not later than January 1, 2010, in
accordance with subsection (b), the Secretary shall establish
a program to provide rebates for expenditures made by
entities--
``(1) for the purchase and installation of a new electric
motor that has a nominal full load efficiency that is not
less than the nominal full load efficiency as defined in--
``(A) table 12-12 of NEMA Standards Publication MG 1-2006
for random wound motors rated 600 volts or lower; or
``(B) table 12-13 of NEMA Standards Publication MG 1-2006
for form wound motors rated 5000 volts or lower; and
``(2) to replace an installed motor of the entity the
specifications of which are established by the Secretary by a
date that is not later than 90 days after the date of
enactment of this section.
``(b) Requirements.--
``(1) Application.--To be eligible to receive a rebate
under this section, an entity shall submit to the Secretary
an application in such form, at such time, and containing
such information as the Secretary may require, including--
``(A) demonstrated evidence that the entity purchased an
electric motor described in subsection (a)(1) to replace an
installed motor described in subsection (a)(2);
``(B) demonstrated evidence that the entity--
``(i) removed the installed motor of the entity from
service; and
``(ii) properly disposed the installed motor of the entity;
and
``(C) the physical nameplate of the installed motor of the
entity.
``(2) Authorized amount of rebate.--The Secretary may
provide to an entity that meets each requirement under
paragraph (1) a rebate the amount of which shall be equal to
the product obtained by multiplying--
``(A) the nameplate horsepower of the electric motor
purchased by the entity in accordance with subsection (a)(1);
and
``(B) $25.00.
``(3) Payments to distributors of qualifying electric
motors.--To assist in the payment for expenses relating to
processing and motor core disposal costs, the Secretary shall
provide to the distributor of an electric motor described in
subsection (a)(1), the purchaser of which received a rebate
under this section, an amount equal to the product obtained
by multiplying--
``(A) the nameplate horsepower of the electric motor; and
``(B) $5.00.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section, to
remain available until expended--
``(1) $80,000,000 for fiscal year 2011;
``(2) $75,000,000 for fiscal year 2012;
``(3) $70,000,000 for fiscal year 2013;
``(4) $65,000,000 for fiscal year 2014; and
``(5) $60,000,000 for fiscal year 2015.''.
(b) Table of Contents.--The table of contents of the Energy
Policy and Conservation Act (42 U.S.C. prec. 6201) is amended
by adding at the end of the items relating to part C of title
III the following:

``Sec. 347. Motor efficiency rebate program.''.

SEC. 246. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND
PROGRAM.

The National Institute of Standards and Technology Act (15
U.S.C. 271 et seq.) is amended by inserting after section 26
the following:

``SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND
PROGRAM.

``(a) Purposes.--The purposes of this section are as
follows:
``(1) To develop the long-term manufacturing capacity of
the United States.
``(2) To create jobs through the retooling and expansion of
manufacturing facilities to produce clean energy technology
products and energy efficient products.
``(3) To improve the long-term competitiveness of domestic
manufacturing by increasing the energy efficiency of
manufacturing facilities.
``(4) To assist small and medium-sized manufacturers
diversify operations to respond to emerging clean energy
technology product markets.
``(b) Definitions.--In this section:
``(1) Clean energy technology product.--The term `clean
energy technology product' means technology products relating
to the following:
``(A) Wind turbines.
``(B) Solar energy.
``(C) Fuel cells.
``(D) Advanced batteries, battery systems, or storage
devices.
``(E) Biomass equipment.
``(F) Geothermal equipment.
``(G) Advanced biofuels.
``(H) Ocean energy equipment.
``(I) Carbon capture and storage.
``(J) Such other products as the Secretary determines--
``(i) relate to the production, use, transmission, storage,
control, or conservation of energy;
``(ii) reduce greenhouse gas concentrations;
``(iii) achieve the earliest and maximum emission
reductions within a reasonable period per dollar invested;
``(iv) result in the fewest non-greenhouse gas
environmental impacts; and
``(v) either--

``(I) reduce the need for additional energy supplies by--

``(aa) using existing energy supplies with greater
efficiency; or
``(bb) by transmitting, distributing, or transporting
energy with greater effectiveness through the infrastructure
of the United States; or

``(II) diversity the sources of energy supply of the United
States--

``(aa) to strengthen energy security; and
``(bb) to increase supplies with a favorable balance of
environmental effects if the entire technology system is
considered.
``(2) Energy efficient product.--The term `energy efficient
product' means a product that, as determined by the Secretary
in consultation with the Secretary of Energy--
``(A) consumes significantly less energy than the average
amount that all similar products consumed on the day before
the date of the enactment of this Act; or
``(B) is a component, system, or group of subsystems that
is designed, developed, and validated to optimize the energy
efficiency of a product.
``(3) Hollings manufacturing extension center.--The term
`Hollings Manufacturing Extension Center' means a center
established under section 25.
``(4) Hollings manufacturing partnership program.--The term
`Hollings Manufacturing Partnership Program' means the
program established under sections 25 and 26.
``(5) Program.--The term `Program' means the grant program
established pursuant to subsection (c)(1).
``(6) Revolving loan fund.--The term `revolving loan fund'
means a revolving loan fund described in subsection (d).
``(7) Secretary.--Except as otherwise provided, the term
`Secretary' means the Secretary of Commerce.
``(8) Small or medium-sized manufacturer.--The term `small
or medium-sized manufacturer' means a manufacturer that
employs fewer than 500 full-time equivalent employees at a
manufacturing facility that is not owned or controlled by an
automobile manufacturer.
``(c) Grant Program.--
``(1) Establishment.--Not later than 120 days after the
date of the enactment of this section, the Secretary shall
establish a program under which the Secretary shall award
grants to States to establish revolving loan funds to provide
loans to small and medium-sized manufacturers to finance the
cost of--
``(A) reequipping, expanding, or establishing (including
applicable engineering costs) a manufacturing facility in the
United States to produce--
``(i) clean energy technology products;
``(ii) energy efficient products; or
``(iii) integral component parts of clean energy technology
products or energy efficient products; or
``(B) reducing the energy intensity or greenhouse gas
production of a manufacturing facility in the United States,
including using energy intensive feedstocks.
``(2) Maximum amount.--The Secretary may not award a grant
under the Program in an amount that exceeds $500,000,000 in
any fiscal year.
``(d) Criteria for Awarding Grants.--
``(1) Matching funds.--The Secretary may make a grant to a
State under the Program only if the State agrees to ensure
that for each loan provided by the State under the Program,
not less than 20 percent of the amount of each loan will come
from a non-Federal source.
``(2) Administrative costs.--A State receiving a grant
under the Program may only use such amount of the grant for
the costs of

[[Page H7528]]

administering the revolving loan fund as the Secretary shall
provide in regulations.
``(3) Application.--Each State seeking a grant under the
Program shall submit to the Secretary an application therefor
in such form and in such manner as the Secretary considers
appropriate.
``(4) Evaluation.--The Secretary shall evaluate and
prioritize an application submitted by a State for a grant
under the Program on the basis of--
``(A) the description of the revolving loan fund to be
established with the grant and how such revolving loan fund
will achieve the purposes described in subsection (a);
``(B) whether the State will be able to provide loans from
the revolving loan fund to small or medium-sized
manufacturers before the date that is 120 days after the date
on which the State receives the grant;
``(C) a description of how the State will administer the
revolving loan fund in coordination with other State and
Federal programs, including programs administered by the
Assistant Secretary for Economic Development;
``(D) a description of the actual or potential clean energy
manufacturing supply chains, including significant component
parts, in the region served by the revolving loan fund;
``(E) how the State will target the provision of loans
under the Program to manufacturers located in regions
characterized by high unemployment and sudden and severe
economic dislocation, in particular where mass layoffs have
resulted in a precipitous increase in unemployment;
``(F) the availability of a skilled manufacturing workforce
in the region served by the revolving loan fund and the
capacity of the region's workforce and education systems to
provide pathways for unemployed or low-income workers into
skilled manufacturing employment;
``(G) a description of how the State will target loans to
small or medium-sized manufacturers who are--
``(i) manufacturers of automobile components; and
``(ii) either--

``(I) increasing the energy efficiency of their
manufacturing facilities; or
``(II) retooling to manufacture clean energy products or
energy efficient products, including manufacturing components
to improve the compliance of an automobile with fuel economy
standards prescribed under section 32902 of title 49, United
States Code;

``(H) a description of how the State will use the loan fund
to achieve the earliest and maximum greenhouse gas emission
reductions within a reasonable period of time per dollar
invested and with the fewest non-greenhouse gas environmental
impacts; and
``(I) such other factors as the Secretary considers
appropriate to ensure that grants awarded under the Program
effectively and efficiently achieve the purposes described in
subsection (a).
``(e) Revolving Loan Funds.--
``(1) In general.--A State receiving a grant under the
Program shall establish, maintain, and administer a revolving
loan fund in accordance with this subsection.
``(2) Deposits.--A revolving loan fund shall consist of the
following:
``(A) Amounts from grants awarded under this section.
``(B) All amounts held or received by the State incident to
the provision of loans described in subsection (f), including
all collections of principal and interest.
``(3) Expenditures.--Amounts in the revolving loan fund
shall be available for the provision and administration of
loans in accordance with subsection (f).
``(4) Limitation.--No funds provided pursuant to this
section may be leveraged through use of tax-exempt bonding
authority by a State or a political subdivision of a State.
``(f) Loans.--
``(1) In general.--A State receiving a grant under this
section shall use the amount in the revolving loan fund to
provide loans to small and medium-sized manufacturers as
described in subsection (c)(1).
``(2) Loan terms and conditions.--The following shall apply
with respect to loans provided under paragraph (1):
``(A) Terms.--Loans shall have a term determined by the
State receiving the grant as follows:
``(i) For fixed assets, the term of the loan shall not
exceed the useful life of the asset and shall be less than 15
years.
``(ii) For working capital, the term of the loan shall not
exceed 36 months.
``(B) Interest rates.--Loans shall bear an interest rate
determined by the State receiving the grant as follows:
``(i) The interest rate shall enable the loan recipient to
accomplish the activities described in subparagraphs (A) and
(B) of subsection (c)(1).
``(ii) The interest rate may be set below-market interest
rates.
``(iii) The interest rate may not be less than zero
percent.
``(iv) The interest rate may not exceed the current prime
rate plus 500 basis points.
``(C) Description and budget for use of loan funds.--Each
recipient of a loan from a State under the Program shall
develop and submit to the State and the Secretary a
description and budget for the use of loan amounts, including
a description of the following:
``(i) Any new business expected to be developed with the
loan.
``(ii) Any improvements to manufacturing operations to be
developed with the loan.
``(iii) Any technology expected to be commercialized with
the loan.
``(D) Priority in review and preference in selection for
certain loan applicants.--
``(i) Review.--In reviewing applications submitted by small
or medium-sized manufacturers for a loan, a recipient of a
grant under the Program shall give priority to small or
medium-sized manufacturers described in clause (iii).
``(ii) Selection.--In selecting small or medium-sized
manufacturers to receive a loan, a recipient of a grant under
the Program shall give preference to small or medium-sized
manufacturers described in clause (iii).
``(iii) Priority and preferred small or medium-sized
manufacturers.--A small or medium-sized manufacturer
described in this clause is a manufacturer that--

``(I) is certified by a Hollings Manufacturing Extension
Center or a manufacturing-related local intermediary
designated by the Secretary for purposes of providing such
certification; or
``(II) provides individuals employed at the manufacturing
facilities of the manufacturer--

``(aa) pay in amounts that are, on average, equal to or
more than the average wage of an individual working in a
manufacturing facility in the State; and
``(bb) health benefits.
``(iv) Certification by hollings manufacturing extension
center.--A Hollings Manufacturing Extension Center or other
entity designated by the Secretary for purposes of providing
certification under clause (iii)(I) shall only certify
applications for a loan after carrying out a qualitative and
quantitative review of the applicant's business strategy,
manufacturing operations, and technological ability to
contribute to the purposes described in subsection (a).
``(E) Repayment upon relocation outside united states.--
``(i) In general.--If a person receives a loan under
paragraph (1) to finance the cost of reequipping, expanding,
or establishing a manufacturing facility as described in
subsection (c)(1)(A) or to reduce the energy intensity of a
manufacturing facility and such person relocates the
production activities of such manufacturing facility outside
the United States during the term of the loan, the recipient
shall repay such loan in full with interest as described in
clause (ii) and for a duration described in clause (iii).
``(ii) Payment of interest.--Any amount owed by the
recipient of a loan under paragraph (1) who is required to
repay the loan under clause (i) shall bear interest at a
penalty rate determined by the Secretary to deter recipients
of loans under paragraph (1) from relocating production
activities as described in clause (i).
``(iii) Period of repayment.--Repayment of a loan under
clause (i) shall be for a duration determined by the
Secretary.
``(F) Compliance with wage rate requirements.--Each
recipient of a loan shall undertake and agree to incorporate
or cause to be incorporated into all contracts for
construction, alteration or repair, which are paid for in
whole or in part with funds obtained pursuant to such loan, a
requirement that all laborers and mechanics employed by
contractors and subcontractors performing construction,
alteration or repair shall be paid wages at rates not less
than those determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title 40,
United States Code (known as the `Davis-Bacon Act'), to be
prevailing for the corresponding classes of laborers and
mechanics employed on projects of a character similar to the
contract work in the same locality in which the work is to be
performed. The Secretary of Labor shall have, with respect to
the labor standards specified in this subparagraph, the
authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section
3145 of title 40, United States Code.
``(G) Annual reports by loan recipients.--Each recipient of
a loan issued by a State under paragraph (1) shall, not less
frequently than once each year during the term of the loan,
submit to such State a report containing such information as
the Secretary may specify for purposes of the Program,
including information that the Secretary can use to determine
whether a recipient of a loan is required to repay the loan
under subparagraph (E).
``(3) Annual reports by grant recipients.--Each recipient
of a grant under the Program shall, not less frequently than
once each year, submit to the Secretary a report on the
impact of each loan issued by the State under the Program and
the aggregate impact of all loans so issued, including the
following:
``(A) The sales increased or retained.
``(B) Cost savings or costs avoided.
``(C) Additional investment encouraged.
``(D) Jobs created or retained.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000,000
for each of fiscal years 2010 and 2011.''.

SEC. 247. CLEAN ENERGY AND EFFICIENCY MANUFACTURING
PARTNERSHIPS.

(a) Hollings Manufacturing Partnership Program.--Section
25(b) of the National Institute of Standards and Technology
Act (15 U.S.C. 278k(b)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;

[[Page H7529]]

(2) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) the establishment of a clean energy manufacturing
supply chain initiative--
``(A) to support manufacturers in their identification of
and diversification to new markets, including support for
manufacturers transitioning to the use of clean energy supply
chains;
``(B) to assist manufacturers improve their competitiveness
by reducing energy intensity and greenhouse gas production,
including the use of energy intensive feedstocks;
``(C) to increase adoption and implementation of innovative
manufacturing technologies;
``(D) to coordinate and leverage the expertise of the
National Laboratories and Technology Centers and the
Industrial Assessment Centers of the Department of Energy to
meet the needs of manufacturers; and
``(E) to identify, assist, and certify manufacturers
seeking loans under section 27(e)(1).''.
(b) Reduction in Cost Share Requirements.--Section 25(c) of
such Act (15 U.S.C. 278k(c)) is amended--
(1) in paragraph (1), by inserting ``or as provided in
paragraph (5)'' after ``not to exceed six years'';
(2) in paragraph (3)(B), by striking ``not less than 50
percent of the costs incurred for the first 3 years and an
increasing share for each of the last 3 years'' and inserting
``50 percent of the costs incurred or such lesser percentage
of the costs incurred as determined appropriate by the
Secretary by rule''; and
(3) in paragraph (5)--
(A) by striking ``at declining levels'';
(B) by striking ``one third'' and inserting ``50 percent'';
and
(C) by inserting ``, or such lesser percentage as
determined appropriate by the Secretary by rule,'' after
``maintenance costs''.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Commerce for the
Hollings Manufacturing Partnership Program authorized under
sections 25 of the National Institute of Standards and
Technology Act (15 U.S.C. 278k) and for the provision of
assistance under section 26 of such Act (15 U.S.C. 278l)--
(1) $200,000,000 for fiscal year 2010;
(2) $250,000,000 for fiscal year 2011;
(3) $300,000,000 for fiscal year 2012;
(4) $350,000,000 for fiscal year 2013; and
(5) $400,000,000 for fiscal year 2014.

SEC. 248. TECHNICAL AMENDMENTS.

(a) Amendment to National Institute of Standards and
Technology Act.--Section 25 of the National Institute of
Standards and Technology Act (15 U.S.C. 278k(b)) is amended--
(1) in subsection (a), by striking ``(hereafter in this Act
referred to as the `Centers')''; and
(2) by adding at the end the following:
``(g) Designation.--
``(1) Hollings manufacturing partnership program.--The
program under this section shall be known as the `Hollings
Manufacturing Partnership Program'.
``(2) Hollings manufacturing extension centers.--The
Regional Centers for the Transfer of Manufacturing Technology
created and supported under subsection (a) shall be known as
the `Hollings Manufacturing Extension Centers' (in this Act
referred to as the `Centers').''.
(b) Amendment to Consolidated Appropriations Act, 2005.--
Division B of title II of the Consolidated Appropriations
Act, 2005 (Public Law 108-09447; 118 Stat. 2879; 15 U.S.C.
278k note) is amended under the heading ``industrial
technology services'' by striking ``2007: Provided further,
That'' and all that follows through ``Extension Centers.''
and inserting ``2007.''.

Subtitle E--Improvements in Energy Savings Performance Contracting

SEC. 251. ENERGY SAVINGS PERFORMANCE CONTRACTS.

(a) Competition Requirements for Task or Delivery Orders
Under Energy Savings Performance Contracts.--
(1) Competition requirements.--Subsection (a) of section
801 of the National Energy Conservation Policy Act (42 U.S.C.
8287(a)) is amended by adding at the end the following
paragraph:
``(3)(A) The head of a Federal agency may issue a task or
delivery order under an energy savings performance contract
by--
``(i) notifying all contractors that have received an award
under such contract that the agency proposes to discuss
energy savings performance services for some or all of its
facilities and, following a reasonable period of time to
provide a proposal in response to the notice, soliciting an
expression of interest in performing site surveys or
investigations and feasibility designs and studies and the
submission of qualifications from such contractors, and
including in such notice summary information concerning
energy use for any facilities that the agency has specific
interest in including in such contract;
``(ii) reviewing all expressions of interest and
qualifications submitted pursuant to the notice under clause
(i);
``(iii) selecting two or more contractors (from among those
reviewed under clause (ii)) to conduct discussions concerning
the contractors' respective qualifications to implement
potential energy conservation measures, including requesting
references demonstrating experience on similar efforts and
the resulting energy savings of such similar efforts, and
providing an opportunity for a post-award debriefing to all
contractors that submitted expressions of interest and
qualifications under clause (ii) pursuant to the notice;
``(iv) selecting and authorizing--
``(I) more than one contractor (from among those selected
under clause (iii)) to conduct site surveys, investigations,
feasibility designs and studies or similar assessments for
the energy savings performance contract services (or for
discrete portions of such services), for the purpose of
allowing each such contractor to submit a firm, fixed-price
proposal to implement specific energy conservation measures;
or
``(II) one contractor (from among those selected under
clause (iii)) to conduct a site survey, investigation, a
feasibility design and study or similar for the purpose of
allowing the contractor to submit a firm, fixed-price
proposal to implement specific energy conservation measures;
``(v) negotiating a task or delivery order for energy
savings performance contracting services with the contractor
or contractors selected under clause (iv) based on the energy
conservation measures identified; and
``(vi) issuing a task or delivery order for energy savings
performance contracting services to such contractor or
contractors.
``(B) The issuance of a task or delivery order for energy
savings performance contracting services pursuant to
subparagraph (A) is deemed to satisfy the task and delivery
order competition requirements in section 2304c(d) of title
10, United States Code, and section 303J(d) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
253j(d)).
``(C) The Secretary may issue guidance as necessary to
agencies issuing task or delivery orders pursuant to
subparagraph (A).''.
(2) Effective date.--The amendment made by paragraph (1) is
inapplicable to task or delivery orders issued before the
date of enactment of this section.
(b) Inclusion of Thermal Renewable Energy.--Section 203 of
the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended--
(1) in subsection (a), by striking ``electric''; and
(2) in subsection (b)(2), by inserting ``or thermal'' after
``means electric''.
(c)  Credit for Renewable Energy Produced and Used on
Site.--Subsection (c) of section 203 of the Energy Policy Act
of 2005 (42 U.S.C. 15852) is amended to read as follows:
``(c) Calculation.--Renewable energy produced at a Federal
facility, on Federal lands, or on Indian lands (as defined in
title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501
et seq.)) shall be calculated separately from renewable
energy consumed at a Federal facility, and each may be used
to comply with the consumption requirement under subsection
(a).''.
(d) Financing Flexibility.--Section 801(a)(2)(E) of the
National Energy Conservation Policy Act (42 U.S.C.
8287(a)(2)(E)) is amended by striking ``In'' and inserting
``Notwithstanding any other provision of law, in''.

Subtitle F--Public Institutions

SEC. 261. PUBLIC INSTITUTIONS.

Section 399A of the Energy Policy and Conservation Act (42
U.S.C. 6371h-1) is amended--
(1) in subsection (a)(5), by striking ``or a designee'' and
inserting ``an Indian tribe, a not-for-profit hospital or
not-for-profit inpatient health care facility, or a
designated agent'';
(2) in subsection (c)(1), by striking subparagraph (C);
(3) in subsection (f)(3)(A), by striking ``$1,000,000'' and
inserting ``$2,500,000''; and
(4) in subsection (i)(1), by striking ``$250,000,000 for
each of fiscal years 2009 through 2013'' and inserting
``$250,000,000 for each of fiscal years 2010 through 2015''.

SEC. 262. COMMUNITY ENERGY EFFICIENCY FLEXIBILITY.

Section 545(b)(3) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17155(b)(3)) is amended--
(1) by striking ``Indian tribe may use'' and all that
follows through ``for administrative expenses'' and inserting
``Indian tribe may use for administrative expenses'';
(2) by striking subparagraphs (B) and (C);
(3) by redesignating the remaining clauses (i) and (ii) as
subparagraphs (A) and (B), respectively and adjusting the
margin of those subparagraphs accordingly; and
(4) by striking the semicolon at the end and inserting a
period.

SEC. 263. SMALL COMMUNITY JOINT PARTICIPATION.

(a) Section 541(3)(A) of the Energy Independence and
Security Act of 2007 is amended in clause (i) by striking
``and'' at the end of subclause (II), in clause (ii) by
striking the period at the end of subclause (II) and
inserting ``; or'', and by inserting the following new clause
(iii):
``(iii) a group of adjacent, contiguous, or geographically
proximate units of local government that reach agreement to
act jointly for purposes of this section and that represent a
combined population of not less than 35,000.''.
(b) Section 541(3)(B) of the Energy Independence and
Security Act of 2007 is amended in clause (i) by striking
``or'', in clause (ii) by striking the period at the end and
inserting ``; or'', and by inserting the following new clause
(iii):

[[Page H7530]]

``(iii) a group of adjacent, contiguous, or geographically
proximate units of local government that reach agreement to
act jointly for purposes of this section and that represent a
combined population of not less than 50,000.''.

SEC. 264. LOW INCOME COMMUNITY ENERGY EFFICIENCY PROGRAM.

(a) In General.--The Secretary of Energy is authorized to
make grants to private, nonprofit, mission-driven community
development organizations including community development
corporations and community development financial institutions
to provide financing to businesses and projects that improve
energy efficiency; identify and develop alternative,
renewable, and distributed energy supplies; provide technical
assistance and promote job and business opportunities for
low-income residents; and increase energy conservation in low
income rural and urban communities.
(b) Grants.--The purpose of such grants is to increase the
flow of capital and benefits to low income communities,
minority-owned and woman-owned businesses and entrepreneurs
and other projects and activities located in low income
communities in order to reduce environmental degradation,
foster energy conservation and efficiency and create job and
business opportunities for local residents. The Secretary may
make grants on a competitive basis for--
(1) investments that develop alternative, renewable, and
distributed energy supplies;
(2) capitalizing loan funds that lend to energy efficiency
projects and energy conservation programs;
(3) technical assistance to plan, develop, and manage an
energy efficiency financing program; and
(4) technical and financial assistance to assist small-
scale businesses and private entities develop new renewable
and distributed sources of power or combined heat and power
generation.
(c) Authorization of Appropriations.--For the purposes of
this section there is authorized to be appropriated
$50,000,000 for each of the fiscal years 2010 through 2015.

SEC. 265. CONSUMER BEHAVIOR RESEARCH.

(a) In General.--The Secretary of Energy is authorized to
establish a research program to identify the factors
affecting consumer actions to conserve energy and make
improvements in energy efficiency. Through the program the
Secretary will make grants to public and private institutions
of higher education to study the effects of consumer behavior
on total energy use; potential energy savings from changes in
consumption habits; the ability to reduce greenhouse gas
emissions through changes in energy consumption habits;
increase public awareness of Federal climate adaptation and
mitigation programs; and the potential for alterations in
consumer behavior to further American energy independence.
Grants may also fund projects that evaluate or inform public
knowledge of the effects of energy consumption habits on
these topics.
(b) Grants.--The purpose of the program is to provide
grants to public and private institutions of higher education
to carry out projects which will improve understanding of the
effects of consumer behavior on energy consumption and
conservation. The Secretary shall make grants on a
competitive basis for--
(1) studies of the effects of consumer habits on energy
consumption and conservation;
(2) development of strategies that communicate the
importance of energy efficiency and conservation to
consumers;
(3) identification of best practices to improve consumer
energy use habits;
(4) education programs that inform consumers about the
implications of consumption habits on energy use and climate
change;
(5) evaluation of the effectiveness of programs designed to
promote public awareness of Federal Government climate
adaptation and mitigation activities; and
(6) other projects that advance the mission of the program.
(c) Report.--The Secretary of Energy shall provide Congress
with a report on progress towards establishing the program
within 120 days after the date of enactment of this Act.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.

Subtitle G--Miscellaneous

SEC. 271. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS
TECHNOLOGIES.

Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended to read as follows:

``SEC. 543. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS
TECHNOLOGIES.

``(a) In General.--Not later than 1 year after the date of
enactment of the American Clean Energy and Security Act of
2009, each Federal agency shall collaborate with the Director
of the Office of Management and Budget (referred to in this
section as the `Director') to create an implementation
strategy, including best practices and measurement and
verification techniques, for the purchase and use of energy
efficient information and communications technologies and
practices. Wherever possible, existing standards,
specifications, performance metrics, and best management
practices that have been or are being developed in open
collaboration and with broad stakeholder input and review
should be incorporated. In addition, agency strategies shall
be flexible, cost-effective, and based on the specific
operating requirements and statutory mission of each agency.
``(b) Energy Efficient Information and Communications
Technologies.--In developing an implementation strategy, each
agency shall--
``(1) consider information and communications technologies
and infrastructure, including, but not limited to, advanced
metering infrastructure, information and communications
technology services and products, efficient data center
strategies, applications modernization and rationalization,
building systems energy efficiency, and telework; and
``(2) ensure that agencies are eligible to realize the
savings and rewards brought about through increased
efficiencies.
``(c) Performance Goals.--Not later than 6 months after the
date of enactment of the American Clean Energy and Security
Act of 2009, the Director shall establish performance goals
for evaluating the efforts of the agencies in improving the
maintenance, purchase and use of energy efficiency of
information and communications technology systems. These
performance goals should measure information technology costs
over a specific time horizon (3 to 5 years), providing a
complete picture of all costs, including energy.
``(d) Report.--Not later than 18 months after the date of
enactment of the American Clean Energy and Security Act of
2009, and annually thereafter, the Director shall submit a
report to Congress on--
``(1) the progress of each agency in reducing energy use
through its implementation strategy; and
``(2) new and emerging technologies that would help achieve
increased energy efficiency.''.

SEC. 272. NATIONAL ENERGY EFFICIENCY GOALS.

(a) Goals.--The energy efficiency goals of the United
States are--
(1) to achieve an improvement in the overall energy
productivity of the United States (measured in gross domestic
product per unit of energy input) of at least 2.5 percent per
year by the year 2012; and
(2) to maintain that annual rate of improvement each year
through 2030.
(b) Strategic Plan.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy (referred to
in this section as the ``Secretary''), in cooperation with
the Administrator and the heads of other appropriate Federal
agencies, shall develop a strategic plan to achieve the
national goals for improvement in energy productivity
established under subsection (a).
(2) Public input and comment.--The Secretary shall develop
the plan in a manner that provides appropriate opportunities
for public input and comment.
(c) Plan Contents.--The strategic plan shall--
(1) identify future regulatory, funding, and policy
priorities that would assist the United States in meeting the
national goals;
(2) include energy savings estimates for each sector; and
(3) include data collection methodologies and compilations
used to establish baseline and energy savings data.
(d) Plan Updates.--
(1) In general.--The Secretary shall--
(A) update the strategic plan biennially; and
(B) include the updated strategic plan in the national
energy policy plan required by section 801 of the Department
of Energy Organization Act (42 U.S.C. 7321).
(2) Contents.--In updating the plan, the Secretary shall--
(A) report on progress made toward implementing efficiency
policies to achieve the national goals established under
subsection (a); and
(B) verify, to the maximum extent practicable, energy
savings resulting from the policies.
(e) Report to Congress and the Public.--The Secretary shall
submit to Congress, and make available to the public, the
initial strategic plan developed under subsection (b) and
each updated plan.

SEC. 273. AFFILIATED ISLAND ENERGY INDEPENDENCE TEAM.

(a) Definitions.--In this section:
(1) Affiliated island.--The term ``affiliated island''
means--
(A) the Commonwealth of Puerto Rico;
(B) Guam;
(C) American Samoa;
(D) the Commonwealth of the Northern Mariana Islands;
(E) the Federated States of Micronesia;
(F) the Republic of the Marshall Islands;
(G) the Republic of Palau; and
(H) the United States Virgin Islands.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy (acting through the Assistant Secretary of Energy
Efficiency and Renewable Energy), in consultation with the
Secretary of the Interior and the Secretary of State.
(3) Team.--The term ``team'' means the team established by
the Secretary under subsection (b).
(b) Establishment.--As soon as practicable after the date
of enactment of this Act, the Secretary shall assemble a team
of technical, policy, and financial experts to address the
energy needs of each affiliated island--
(1) to reduce the reliance and expenditure of each
affiliated island on imported fossil fuels;
(2) to increase the use by each affiliated island of
indigenous, nonfossil fuel energy sources;

[[Page H7531]]

(3) to improve the performance of the energy infrastructure
of the affiliated island through projects--
(A) to improve the energy efficiency of power generation,
transmission, and distribution; and
(B) to increase consumer energy efficiency;
(4) to improve the performance of the energy infrastructure
of each affiliated island through enhanced planning,
education, and training;
(5) to adopt research-based and public-private partnership-
based approaches as appropriate;
(6) to stimulate economic development and job creation; and
(7) to enhance the engagement by the Federal Government in
international efforts to address island energy needs.
(c) Duties of Team.--
(1) Energy action plans.--
(A) In general.--In accordance with subparagraph (B), the
team shall provide technical, programmatic, and financial
assistance to each utility of each affiliated island, and the
government of each affiliated island, as appropriate, to
develop and implement an energy Action Plan for each
affiliated island to reduce the reliance of each affiliated
island on imported fossil fuels through increased efficiency
and use of indigenous clean-energy resources.
(B) Requirements.--Each Action Plan described in
subparagraph (A) for each affiliated island shall require and
provide for--
(i) the conduct of 1 or more studies to assess
opportunities to reduce fossil fuel use through--

(I) the improvement of the energy efficiency of the
affiliated island; and
(II) the increased use by the affiliated island of
indigenous clean-energy resources;

(ii) the identification and implementation of the most
cost-effective strategies and projects to reduce the
dependence of the affiliated island on fossil fuels;
(iii) the promotion of education and training activities to
improve the capacity of the local utilities of the affiliated
island, and the government of the affiliated island, as
appropriate, to plan for, maintain, and operate the energy
infrastructure of the affiliated island through the use of
local or regional institutions, as appropriate;
(iv) the coordination of the activities described in clause
(iii) to leverage the expertise and resources of
international entities, the Department of Energy, the
Department of the Interior, and the regional utilities of the
affiliated island;
(v) the identification, and development, as appropriate, of
research-based and private-public, partnership approaches to
implement the Action Plan; and
(vi) any other component that the Secretary determines to
be necessary to reduce successfully the use by each
affiliated island of fossil fuels.
(2) Reports to secretary.--Not later than 1 year after the
date on which the Secretary establishes the team and
biennially thereafter, the team shall submit to the Secretary
a report that contains a description of the progress of each
affiliated island in--
(A) implementing the Action Plan of the affiliated island
developed under paragraph (1)(A); and
(B) reducing the reliance of the affiliated island on
fossil fuels.
(d) Use of Regional Utility Organizations.--To provide
expertise to affiliated islands to assist the affiliated
islands in meeting the purposes of this section, the
Secretary shall consider--
(1) including regional utility organizations in the
establishment of the team; and
(2) providing assistance through regional utility
organizations.
(e) Annual Reports to Congress.--Not later than 30 days
after the date on which the Secretary receives a report
submitted by the team under subsection (c)(2), the Secretary
shall submit to the appropriate committees of Congress a
report that contains a summary of the report of the team.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.

SEC. 274. PRODUCT CARBON DISCLOSURE PROGRAM.

(a) EPA Study.--The Administrator shall conduct a study to
determine the feasibility of establishing a national program
for measuring, reporting, publicly disclosing, and labeling
products or materials sold in the United States for their
carbon content, and shall, not later than 18 months after the
date of enactment of this Act, transmit a report to Congress
which shall include the following:
(1) A determination of whether a national product carbon
disclosure program and labeling program would be effective in
achieving the intended goals of achieving greenhouse gas
reductions and an examination of existing programs globally
and their strengths and weaknesses.
(2) Criteria for identifying and prioritizing sectors and
products and processes that should be covered in such program
or programs.
(3) An identification of products, processes, or sectors
whose inclusion could have a substantial carbon impact
(prioritizing industrial products such as iron and steel,
aluminum, cement, chemicals, and paper products, and also
including food, beverage, hygiene, cleaning, household
cleaners, construction, metals, clothing, semiconductor, and
consumer electronics).
(4) Suggested methodology and protocols for measuring the
carbon content of the products across the entire carbon
lifecycle of such products for use in a carbon disclosure
program and labeling program.
(5) A review of existing greenhouse gas product accounting
standards, methodologies, and practices including the
Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and
Publically Available Specification 2050, and including a
review of the strengths and weaknesses of each.
(6) A survey of secondary databases including the
Manufacturing Energy Consumption Survey and evaluate the
quality of data for use in a product carbon disclosure
program and product carbon labeling program and an
identification of gaps in the data relative to the potential
purposes of a national product carbon disclosure program and
product carbon labeling program and development of
recommendations for addressing these data gaps.
(7) An assessment of the utility of comparing products and
the appropriateness of product carbon standards.
(8) An evaluation of the information needed on a label for
clear and accurate communication, including what pieces of
quantitative and qualitative information needs to be
disclosed.
(9) An evaluation of the appropriate boundaries of the
carbon lifecycle analysis for different sectors and products.
(10) An analysis of whether default values should be
developed for products whose producer does not participate in
the program or does not have data to support a disclosure or
label and determine best ways to develop such default values.
(11) A recommendation of certification and verification
options necessary to assure the quality of the information
and avoid greenwashing or the use of insubstantial or
meaningless environmental claims to promote a product.
(12) An assessment of options for educating consumers about
product carbon content and the product carbon disclosure
program and product carbon labeling program.
(13) An analysis of the costs and timelines associated with
establishing a national product carbon disclosure program and
product carbon labeling program, including options for a
phased approach. Costs should include those for businesses
associated with the measurement of carbon footprints and
those associated with creating a product carbon label and
managing and operating a product carbon labeling program, and
options for minimizing these costs.
(14) An evaluation of incentives (such as financial
incentives, brand reputation, and brand loyalty) to determine
whether reductions in emissions can be accelerated through
encouraging more efficient manufacturing or by encouraging
preferences for lower-emissions products to substitute for
higher-emissions products whose level of performance is no
better.
(b) Development of National Carbon Disclosure Program.--
Upon conclusion of the study, and not more than 36 months
after the date of enactment of this Act, the Administrator
shall establish a national product carbon disclosure program,
participation in which shall be voluntary, and which may
involve a product carbon label with broad applicability to
the wholesale and consumer markets to enable and encourage
knowledge about carbon content by producers and consumers and
to inform efforts to reduce energy consumption (carbon
dioxide equivalent emissions) nationwide. In developing such
a program, the Administrator shall--
(1) consider the results of the study conducted under
subsection (a);
(2) consider existing and planned programs and proposals
and measurement standards (including the Publicly Available
Specification 2050, standards to be developed by the World
Resource Institute/World Business Council for Sustainable
Development, the International Standards Organization, and
the bill AB19 pending in the California legislature);
(3) consider the compatibility of a national product carbon
disclosure program with existing programs;
(4) utilize incentives and other means to spur the adoption
of product carbon disclosure and product carbon labeling;
(5) develop protocols and parameters for a product carbon
disclosure program, including a methodology and formula for
assessing, verifying, and potentially labeling a product's
greenhouse gas content, and for data quality requirements to
allow for product comparison;
(6) create a means to--
(A) document best practices;
(B) ensure clarity and consistency;
(C) work with suppliers, manufacturers, and retailers to
encourage participation;
(D) ensure that protocols are consistent and comparable
across like products; and
(E) evaluate the effectiveness of the program;
(7) make publicly available information on product carbon
content to ensure transparency;
(8) provide for public outreach, including a consumer
education program to increase awareness;
(9) develop training and education programs to help
businesses learn how to measure and communicate their carbon
footprint and easy tools and templates for businesses to use
to reduce cost and time to measure their products' carbon
lifecycle;
(10) consult with the Secretary of Energy, the Secretary of
Commerce, the Federal

[[Page H7532]]

Trade Commission, and other Federal agencies, as necessary;
(11) gather input from stakeholders through consultations,
public workshops or hearings with representatives of consumer
product manufacturers, consumer groups, and environmental
groups;
(12) utilize systems for verification and product
certification that will ensure that claims manufacturers make
about their products are valid;
(13) create a process for reviewing the accuracy of product
carbon label information and protecting the product carbon
label in the case of a change in the product's energy source,
supply chain, ingredients, or other factors, and specify the
frequency to which data should be updated; and
(14) develop a standardized, easily understandable carbon
label, if appropriate, and create a process for responding to
inaccuracies and misuses of such a label.
(c) Report to Congress.--Not later than 5 years after the
program is established pursuant to subsection (b), the
Administrator shall report to Congress on the effectiveness
and impact of the program, the level of voluntary
participation, and any recommendations for additional
measures.
(d) Definitions.--As used in this section--
(1) the term ``carbon content'' means the amount of
greenhouse gas emissions and their warming impact on the
atmosphere expressed in carbon dioxide equivalent associated
with a product's value chain;
(2) the term ``carbon footprint'' means the level of
greenhouse gas emissions produced by a particular activity,
service, or entity; and
(3) the term ``carbon lifecycle'' means the greenhouse gas
emissions that are released as part of the processes of
creating, producing, processing or manufacturing, modifying,
transporting, distributing, storing, using, recycling, or
disposing of goods and services.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to the Administrator $5,000,000 for the
study required by subsection (a) and $25,000,000 for each of
fiscal years 2010 through 2025 for the program required under
subsection (b).

SEC. 275. INDUSTRIAL ENERGY EFFICIENCY EDUCATION AND TRAINING
INITIATIVE.

(a) In General.--The Secretary of Energy shall carry out a
national education and awareness program for the purpose of
informing building, facility, and industrial plant owners and
managers and decisionmakers, government leaders, and industry
leaders about the large energy-saving potential of greater
use of mechanical insulation, and other benefits.
(b) Purpose and Goals.--
(1) Purpose.--The purpose of the initiative shall be to
increase the energy efficiency of the commercial and
industrial sectors through an ongoing program that will
include--
(A) education and training sessions;
(B) Web-based information; and
(C) advertising.
(2) Goals.--The goals of the initiative shall be to--
(A) educate and motivate commercial building owners and
industrial facility managers to utilize mechanical insulation
in new and existing facilities;
(B) preserve and create jobs while reducing energy and
greenhouse gas emissions;
(C) create a safer working environment and make businesses
more competitive in a global economy; and
(D) motivate and empower the industry to make better use of
mechanical insulation through awareness, education, and
training.
(c) Report.--Not later than July 1, 2013, the Secretary
shall submit to Congress a report describing the extent by
which the initiative has been enacted and the actual and
projected effectiveness of the program under this section,
including the energy efficiency, greenhouse gas emissions
reductions, cost savings, and safety benefits at
manufacturing facilities, power plants, refineries,
hospitals, universities, government buildings, and other
commercial and industrial locations.
(d) Authorization of Appropriations.--There are authorized
to be appropriated $3,500,000 for each of fiscal years 2010
through 2014 to carry out this section.   The Secretary may
enter into a cooperative agreement, including grant funding,
with an industry association and union working
collaboratively and having expertise on the installation,
maintenance, measure of efficiencies and standards, and
certification of mechanical insulation in buildings and
facilities.
(e) Termination of Authority.--The program carried out
under this section shall terminate on December 31, 2014.

SEC. 276. SENSE OF CONGRESS.

It is the sense of Congress that the United States should--
(1) continue to actively promote, within the International
Civil Aviation Organization, the development of a global
framework for the regulation of greenhouse gas emissions from
civil aircraft that recognizes the uniquely international
nature of the industry and treats commercial aviation
industries in all countries fairly; and
(2) work with foreign governments towards a global
agreement that reconciles foreign carbon emissions reduction
programs to minimize duplicative requirements and avoids
unnecessary complication for the aviation industry, while
still achieving the environmental goals.

Subtitle H--Green Resources for Energy Efficient Neighborhoods

SEC. 281. SHORT TITLE.

This subtitle may be cited as the ``Green Resources for
Energy Efficient Neighborhoods Act of 2009'' or the ``GREEN
Act of 2009''.

SEC. 282. DEFINITIONS.

For purposes of this subtitle, the following definitions
shall apply:
(1) Green building standards.--The term ``green building
standards'' means standards to require use of sustainable
design principles to reduce the use of nonrenewable
resources, encourage energy-efficient construction and
rehabilitation and the use of renewable energy resources,
minimize the impact of development on the environment, and
improve indoor air quality.
(2) HUD.--The term ``HUD'' means the Department of Housing
and Urban Development.
(3) HUD assistance.--The term ``HUD assistance'' means
financial assistance that is awarded, competitively or
noncompetitively, allocated by formula, or provided by HUD
through loan insurance or guarantee.
(4) Nonresidential structure.--The term ``nonresidential
structures'' means only nonresidential structures that are
appurtenant to single-family or multifamily housing
residential structures, or those that are funded by the
Secretary of Housing and Urban Development through the HUD
Community Development Block Grant program.
(5) Secretary.--The term ``Secretary'', unless otherwise
specified, means the Secretary of Housing and Urban
Development.

SEC. 283. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION
INCENTIVES FOR HUD PROGRAMS.

(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Secretary shall issue such
regulations as may be necessary to establish annual energy
efficiency participation incentives to encourage participants
in programs administered by the Secretary, including
recipients under programs for which HUD assistance is
provided, to achieve substantial improvements in energy
efficiency.
(b) Requirement for Appropriation of Funds.--The
requirement under subsection (a) for the Secretary to provide
annual energy efficiency participation incentives pursuant to
the provisions of this subtitle shall be subject to the
annual appropriation of necessary funds.

SEC. 284. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS
FOR ADDITIONAL CREDIT.

(a) Basic HUD Standard.--
(1) Residential structures.--A residential single-family or
multifamily structure shall be considered to comply with the
energy efficiency standards under this subsection if--
(A) the structure complies with an energy efficiency
building code that has been certified as in compliance with
section 304 of the Energy Conservation and Production Act (42
U.S.C. 6833) as amended by section 201 of this Act, or a
national energy efficiency building code adopted pursuant to
that section;
(B) the structure complies with the applicable provisions
of the American Society of Heating, Refrigerating, and Air-
Conditioning Engineers Standard 90.1-2007, as such standard
or successor standard is in effect for purposes of this
section pursuant subsection (c);
(C) the structure complies with the applicable provisions
of the 2009 International Energy Conservation Code, as such
standard or successor standard is in effect for purposes of
this section pursuant subsection (c);
(D) in the case only of an existing structure, where
determined cost effective, the structure has undergone
rehabilitation or improvements, completed after the date of
the enactment of this Act, and the energy consumption for the
structure has been reduced by at least 20 percent from the
previous level of consumption, as determined in accordance
with energy audits performed both before and after any
rehabilitation or improvements undertaken to reduce such
consumption; or
(E) the structure complies with the applicable provisions
of such other energy efficiency requirements, standards,
checklists, or ratings systems as the Secretary may adopt and
apply by regulation, as may be necessary, for purposes of
this section for specific types of residential single-family
or multifamily structures or otherwise, except that the
Secretary shall make a determination regarding whether to
adopt and apply any such requirements, standards, checklists,
or rating system for purposes of this section not later than
the expiration of the 180-day period beginning upon the date
of receipt of any written request, made in such form as the
Secretary shall provide, for such adoption and application.

In addition to compliance with any of subparagraphs (A)
through (E), the Secretary shall by regulation require, for
any newly constructed residential single-family or
multifamily structure to be considered to comply with the
energy efficiency standards under this subsection, that the
structure have appropriate electrical outlets with the
facility and capacity to recharge a standard electric
passenger vehicle, including an electric hybrid vehicle,
where such vehicle would normally be parked.
(2) Nonresidential structures.--For purposes of this
section, the Secretary shall identify and adopt by
regulation, as may be necessary, energy efficiency
requirements,

[[Page H7533]]

standards, checklists, or rating systems applicable to
nonresidential structures that are constructed or
rehabilitated with HUD assistance. A nonresidential structure
shall be considered to comply with the energy efficiency
standards under this subsection if the structure complies
with the applicable provisions of any such energy efficiency
requirements, standards, checklist, or rating systems
identified and adopted by the Secretary pursuant to this
paragraph, as such standards are in effect for purposes of
this section pursuant to subsection (c).
(3) Effect.--Nothing in this subsection may be construed to
require any structure to comply with any standard established
or adopted pursuant to this subsection, or identified in this
subsection, or to provide any benefit or credit under any
Federal program for any structure that complies with any such
standard, except to the extent that--
(A) any provision of law other than this subsection
provides a benefit or credit under a Federal program for
compliance with a standard established or adopted pursuant to
this subsection, or identified in this subsection; or
(B) the Secretary specifically provides pursuant to
subsection (c) for the applicability of such standard.
(b) Enhanced Energy Efficiency Standards for Purposes of
Providing Additional Credit Under Certain Federally Assisted
Housing Programs.--
(1) Purpose and effect.--
(A) Purpose.--The purpose of this subsection is to
establish energy efficiency and conservation standards and
green building standards that--
(i) provide for greater energy efficiency and conservation
in structures than is required for compliance with the energy
efficiency standards under subsection (a) and then in effect;
(ii) provide for green and sustainable building standards
not required by such standards; and
(iii) can be used in connection with Federal housing,
housing finance, and development programs to provide
incentives for greater energy efficiency and conservation and
for green and sustainable building methods, elements,
practices, and materials.
(B) Effect.--Nothing in this subsection may be construed to
require any structure to comply with any standard established
pursuant to this subsection or to provide any benefit or
credit under any Federal program for any structure, except to
the extent that any provision of law other than this
subsection provides a benefit or credit under a Federal
program for compliance with a standard established pursuant
to this subsection.
(2) Compliance.--A residential or nonresidential structure
shall be considered to comply with the enhanced energy
efficiency and conservation standards or the green building
standards under this subsection, to the extent that such
structure complies with the applicable provisions of the
standards under paragraph (3) or (4), respectively (as such
standards are in effect for purposes of this section,
pursuant to paragraph (7)), in a manner that is not required
for compliance with the energy efficiency standards under
subsection (a) then in effect and subject to the Secretary's
determination of which standards are applicable to which
structures.
(3) Energy efficiency and conservation standards.--The
energy efficiency and conservation standards under this
paragraph are as follows:
(A) Residential structures.--With respect to residential
structures:
(i) New construction.--For new construction, the Energy
Star standards established by the Environmental Protection
Agency, as such standards are in effect for purposes of this
subsection pursuant to paragraph (7);
(ii) Existing structures.--For existing structures, a
reduction in energy consumption from the previous level of
consumption for the structure, as determined in accordance
with energy audits performed both before and after any
rehabilitation or improvements undertaken to reduce such
consumption, that exceeds the reduction necessary for
compliance with the energy efficiency standards under
subsection (a) then in effect and applicable to existing
structures.
(B) Nonresidential structures.--With respect to
nonresidential structures, such energy efficiency and
conservation requirements, standards, checklists, or rating
systems for nonresidential structures as the Secretary shall
identify and adopt by regulation, as may be necessary, for
purposes of this paragraph.
(4) Green building standards.--The green building standards
under this paragraph are as follows:
(A) The national Green Communities criteria checklist for
residential construction that provides criteria for the
design, development, and operation of affordable housing, as
such checklist or successor checklist is in effect for
purposes of this section pursuant to paragraph (7).
(B) The gold certification level for the LEED for New
Construction rating system, the LEED for Homes rating system,
the LEED for Core and Shell rating system, as applicable, as
such systems or successor systems are in effect for purposes
of this section pursuant to paragraph (7).
(C) The Green Globes assessment and rating system of the
Green Buildings Initiative.
(D) For manufactured housing, energy star rating with
respect to fixtures, appliances, and equipment in such
housing, as such standard or successor standard is in effect
for purposes of this section pursuant to paragraph (7).
(E) The National Green Building Standard.
(F) Any other requirements, standards, checklists, or
rating systems for green building or sustainability as the
Secretary may identify and adopt by regulation, as may be
necessary for purposes of this paragraph, except that the
Secretary shall make a determination regarding whether to
adopt and apply any such requirements, standards, checklist,
or rating system for purposes of this section not later than
the expiration of the 180-day period beginning upon date of
receipt of any written request, made in such form as the
Secretary shall provide, for such adoption and application.
(5) Green building.--For purposes of this subsection, the
term ``green building'' means, with respect to standards for
structures, standards to require use of sustainable design
principles to reduce the use of nonrenewable resources,
minimize the impact of development on the environment, and to
improve indoor air quality.
(6) Energy audits.--The Secretary shall establish standards
and requirements for energy audits for purposes of paragraph
(3)(A)(ii) and, in establishing such standards, may consult
with any advisory committees established pursuant to section
285(c)(2) of this subtitle.
(7) Applicability and updating of standards.--
(A) Applicability.--Except as provided in subparagraph (B),
the requirements, standards, checklists, and rating systems
referred to in this subsection that are in effect for
purposes of this subsection are such requirements, standards,
checklists, and systems are as in existence upon the date of
the enactment of this Act.
(B) Updating.--For purposes of this section, the Secretary
may adopt and apply by regulation, as may be necessary,
future amendments and supplements to, and editions of, the
requirements, standards, checklists, and rating systems
referred to in this subsection, including applicable energy
efficiency building codes that are certified as in compliance
with section 304 of the Energy Conservation and Production
Act (42 U.S.C. 6833) as amended by section 201 of this Act,
or national energy efficiency building codes adopted pursuant
to that section.
(c) Authority of Secretary To Apply Standards to Federally
Assisted Housing and Programs.--
(1) HUD housing and programs.--The Secretary of Housing and
Urban Development may, by regulation, provide for the
applicability of the energy efficiency standards under
subsection (a) or the enhanced energy efficiency and
conservation standards and green building standards under
subsection (b), or both, with respect to any covered
federally assisted housing described in paragraph (3)(A) or
any HUD assistance, subject to minimum Federal codes or
standards then in effect.
(2) Rural housing.--The Secretary of Agriculture may, by
regulation, provide for the applicability of the energy
efficiency standards under subsection (a) or the enhanced
energy efficiency and conservation standards and green
building standards under subsection (b), or both, with
respect to any covered federally assisted housing described
in paragraph (3)(B) or any assistance provided with respect
to rural housing by the Rural Housing Service of the
Department of Agriculture, subject to minimum Federal codes
or standards then in effect.
(3) Covered federally assisted housing.--For purposes of
this subsection, the term ``covered federally assisted
housing'' means--
(A) any residential or nonresidential structure for which
any HUD assistance is provided; and
(B) any new construction of single-family housing (other
than manufactured homes) subject to mortgages insured,
guaranteed, or made by the Secretary of Agriculture under
title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.).

SEC. 285. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION
PROGRAM FOR MULTIFAMILY HOUSING PROJECTS
ASSISTED WITH PROJECT-BASED RENTAL ASSISTANCE.

(a) Authority.--For multifamily housing projects for which
project-based rental assistance is provided under a covered
multifamily assistance program, the Secretary shall, subject
to the availability of amounts provided in advance in
appropriation Acts, carry out a program to demonstrate the
effectiveness of funding a portion of the costs of meeting
the enhanced energy efficiency standards under section
284(b). At the discretion of the Secretary, the demonstration
program may include incentives for housing that is assisted
with Indian housing block grants provided pursuant to the
Native American Housing Assistance and Self-Determination Act
of 1996, but only to the extent that such inclusion does not
violate such Act, its regulations, and the goal of such Act
of tribal self-determination.
(b) Goals.--The demonstration program under this section
shall be carried out in a manner that--
(1) protects the financial interests of the Federal
Government;
(2) reduces the proportion of funds provided by the Federal
Government and by owners and residents of multifamily housing
projects that are used for costs of utilities for the
projects;

[[Page H7534]]

(3) encourages energy efficiency and conservation by owners
and residents of multifamily housing projects and
installation of renewable energy improvements, such as
improvements providing for use of solar, wind, geothermal, or
biomass energy sources;
(4) creates incentives for project owners to carry out such
energy efficiency renovations and improvements by allowing a
portion of the savings in operating costs resulting from such
renovations and improvements to be retained by the project
owner, notwithstanding otherwise applicable limitations on
dividends;
(5) promotes the installation, in existing residential
buildings, of energy-efficient and cost-effective
improvements and renewable energy improvements, such as
improvements providing for use of solar, wind, geothermal, or
biomass energy sources;
(6) tests the efficacy of a variety of energy efficiency
measures for multifamily housing projects of various sizes
and in various geographic locations;
(7) tests methods for addressing the various, and often
competing, incentives that impede owners and residents of
multifamily housing projects from working together to achieve
energy efficiency or conservation; and
(8) creates a database of energy efficiency and
conservation, and renewable energy, techniques, energy-
savings management practices, and energy efficiency and
conservation financing vehicles.
(c) Approaches.--In carrying out the demonstration program
under this section, the Secretary may--
(1) enter into agreements with the Building America Program
of the Department of Energy and other consensus committees
under which such programs, partnerships, or committees assume
some or all of the functions, obligations, and benefits of
the Secretary with respect to energy savings;
(2) establish advisory committees to advise the Secretary
and any such third-party partners on technological and other
developments in the area of energy efficiency and the
creation of an energy efficiency and conservation credit
facility and other financing opportunities, which committees
shall include representatives of homebuilders, realtors,
architects, nonprofit housing organizations, environmental
protection organizations, renewable energy organizations, and
advocacy organizations for the elderly and persons with
disabilities; any advisory committees established pursuant to
this paragraph shall not be subject to the Federal Advisory
Committee Act (5 U.S.C. App.);
(3) approve, for a period not to exceed 10 years,
additional adjustments in the maximum monthly rents or
additional project rental assistance, or additional Indian
housing block grant funds under the Native American Housing
Assistance and Self-Determination Act of 1996, as applicable,
for dwelling units in multifamily housing projects that are
provided project-based rental assistance under a covered
multifamily assistance program, in such amounts as may be
necessary to amortize a portion of the cost of energy
efficiency and conservation measures for such projects;
(4) develop a competitive process for the award of such
additional assistance for multifamily housing projects
seeking to implement energy efficiency, renewable energy
sources, or conservation measures; and
(5) waive or modify any existing statutory or regulatory
provision that would otherwise impair the implementation or
effectiveness of the demonstration program under this
section, including provisions relating to methods for rent
adjustments, comparability standards, maximum rent schedules,
and utility allowances; notwithstanding the preceding
provisions of this paragraph, the Secretary may not waive any
statutory requirement relating to fair housing,
nondiscrimination, labor standards, or the environment,
except pursuant to existing authority to waive nonstatutory
environmental and other applicable requirements.
(d) Requirement.--During the 4-year period beginning 12
months after the date of the enactment of this Act, the
Secretary shall carry out demonstration programs under this
section with respect to not fewer than 50,000 dwelling units.
(e) Selection.--
(1) Scope.--In order to provide a broad and representative
profile for use in designing a program which can become
operational and effective nationwide, the Secretary shall
carry out the demonstration program under this section with
respect to dwelling units located in a wide variety of
geographic areas and project types assisted by the various
covered multifamily assistance programs and using a variety
of energy efficiency and conservation and funding techniques
to reflect differences in climate, types of dwelling units
and technical and scientific methodologies, and financing
options. The Secretary shall ensure that the geographic areas
included in the demonstration program include dwelling units
on Indian lands (as such term is defined in section 2601 of
the Energy Policy Act of 1992 (25 U.S.C. 3501), to the extent
that dwelling units on Indian land have the type of
residential structures that are the focus of the
demonstration program.
(2) Priority.--The Secretary shall provide priority for
selection for participation in the program under this section
based on the extent to which, as a result of assistance
provided, the project will comply with the energy efficiency
standards under subsection (a), (b), or (c) of section 284 of
this subtitle.
(f) Use of Existing Partnerships.--To the extent feasible,
the Secretary shall--
(1) utilize the Partnership for Advancing Technology in
Housing of the Department of Housing and Urban Development to
assist in carrying out the requirements of this section and
to provide education and outreach regarding the demonstration
program authorized under this section; and
(2) consult with the Secretary of Energy, the Administrator
of the Environmental Protection Agency, and the Secretary of
the Army regarding utilizing the Building America Program of
the Department of Energy, the Energy Star Program, and the
Army Corps of Engineers, respectively, to determine the
manner in which they might assist in carrying out the goals
of this section and providing education and outreach
regarding the demonstration program authorized under this
section.
(g) Limitation.--No amounts made available under the
American Recovery and Reinvestment Act of 2009 (Public Law
111-5) may be used to carry out the demonstration program
under this section.
(h) Reports.--
(1) Annual.--Not later than the expiration of the 2-year
beginning upon the date of the enactment of this Act, and for
each year thereafter during the term of the demonstration
program, the Secretary shall submit a report to the Congress
annually that describes and assesses the demonstration
program under this section.
(2) Final.--Not later than 6 months after the expiration of
the 4-year period described in subsection (d), the Secretary
shall submit a final report to the Congress assessing the
demonstration program, which--
(A) shall assess the potential for expanding the
demonstration program on a nationwide basis; and
(B) shall include descriptions of--
(i) the size of each multifamily housing project for which
assistance was provided under the program;
(ii) the geographic location of each project assisted, by
State and region;
(iii) the criteria used to select the projects for which
assistance is provided under the program;
(iv) the energy efficiency and conservation measures and
financing sources used for each project that is assisted
under the program;
(v) the difference, before and during participation in the
demonstration program, in the amount of the monthly
assistance payments under the covered multifamily assistance
program for each project assisted under the program;
(vi) the average length of the term of the such assistance
provided under the program for a project;
(vii) the aggregate amount of savings generated by the
demonstration program and the amount of savings expected to
be generated by the program over time on a per-unit and
aggregate program basis;
(viii) the functions performed in connection with the
implementation of the demonstration program that were
transferred or contracted out to any third parties;
(ix) an evaluation of the overall successes and failures of
the demonstration program; and
(x) recommendations for any actions to be taken as a result
of the such successes and failures.
(3) Contents.--Each annual report pursuant to paragraph (1)
and the final report pursuant to paragraph (2) shall
include--
(A) a description of the status of each multifamily housing
project selected for participation in the demonstration
program under this section; and
(B) findings from the program and recommendations for any
legislative actions.
(i) Covered Multifamily Assistance Program.--For purposes
of this section, the term ``covered multifamily assistance
program'' means--
(1) the program under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) for project-based
rental assistance;
(2) the program under section 202 of the Housing Act of
1959 (12 U.S.C. 1701q) for assistance for supportive housing
for the elderly;
(3) the program under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013) for
supportive housing for persons with disabilities;
(4) the program under section 236 of the National Housing
Act (12 U.S.C. 1715z-1 for assistance for rental housing
projects;
(5) the program under section 515 of the Housing Act of
1949 (42 U.S.C. 1485) for rural rental housing; and
(6) the program for assistance under the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4111).
(j) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section, including
providing rent adjustments, additional project rental
assistance, and incentives, $50,000,000 for each fiscal year
in which the demonstration program under this section is
carried out.
(k) Regulations.--Not later than the expiration of the 180-
day period beginning on the date of the enactment of this
Act, the Secretary shall issue any regulations necessary to
carry out this section.

SEC. 286. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC
HOUSING GOALS FOR ENERGY-EFFICIENT AND
LOCATION-EFFICIENT MORTGAGES.

Section 1336(a) of the Housing and Community Development
Act of 1992 (12 U.S.C. 4566(a)), as amended by the Federal
Housing

[[Page H7535]]

Finance Regulatory Reform Act of 2008 (Public Law 110-289;
122 Stat. 2654), is amended--
(1) in paragraph (2), by striking ``paragraph (5)'' and
inserting ``paragraphs (5) and (6)''; and
(2) by adding at the end the following new paragraph:
``(6) Additional credit.--
``(A) In general.--In assigning credit toward achievement
under this section of the housing goals for mortgage purchase
activities of the enterprises, the Director shall assign--
``(i) more than 125 percent credit, for any such purchase
that both--

``(I) complies with the requirements of such goals; and
``(II)(aa) supports housing that meets the energy
efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009; or
``(bb) is a location-efficient mortgage, as such term is
defined in section 1335(e); and

``(ii) credit in addition to credit under clause (i), for
any such purchase that both--

``(I) complies with the requirements of such goals, and
``(II) supports housing that complies with the enhanced
energy efficiency and conservation standards, or the green
building standards, under section 284(b) of such Act, or
both,

and such additional credit shall be given based on the extent
to which the housing supported with such purchases complies
with such standards.
``(B) Treatment of additional credit.--The availability of
additional credit under this paragraph shall not be used to
increase any housing goal, subgoal, or target established
under this subpart.''.

SEC. 287. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-
EFFICIENT AND LOCATION-EFFICIENT MORTGAGES.

Section 1335 of Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4565), as amended
by the Federal Housing Finance Regulatory Reform Act of 2008
(Public Law 110-289; 122 Stat. 2654), is amended--
(1) in subsection (a)(1), by adding at the end the
following new subparagraph:
``(D) Markets for energy-efficient and location-efficient
mortgages.--
``(i) Duty.--Subject to clause (ii), the enterprise shall
develop loan products and flexible underwriting guidelines to
facilitate a secondary market for energy-efficient and
location-efficient mortgages on housing for very low-, low-,
and moderate-income families, and for second and junior
mortgages made for purposes of energy efficiency or renewable
energy improvements, or both.
``(ii) Authority to suspend.--Notwithstanding any other
provision of this section, the Director may suspend the
applicability of the requirement under clause (i) with
respect to an enterprise, for such period as is necessary, if
the Director determines that exigent circumstances exist and
such suspension is appropriate to ensure the safety and
soundness of the portfolio holdings of the enterprise.'';
(2) by adding at the end the following new subsection:
``(e) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Energy-efficient mortgage.--The term `energy-
efficient mortgage' means a mortgage loan under which the
income of the borrower, for purposes of qualification for
such loan, is considered to be increased by not less than $1
for each $1 of savings projected to be realized by the
borrower as a result of cost-effective energy-saving design,
construction or improvements (including use of renewable
energy sources, such as solar, geothermal, biomass, and wind,
super-insulation, energy-saving windows, insulating glass and
film, and radiant barrier) for the home for which the loan is
made.
``(2) Location-efficient mortgage.--The term `location-
efficient mortgage' means a mortgage loan under which--
``(A) the income of the borrower, for purposes of
qualification for such loan, is considered to be increased by
not less than $1 for each $1 of savings projected to be
realized by the borrower because the location of the home for
which loan is made will result in decreased transportation
costs for the household of the borrower; or
``(B) the sum of the principal, interest, taxes, and
insurance due under the mortgage loan is decreased by not
less than $1 for each $1 of savings projected to be realized
by the borrower because the location of the home for which
loan is made will result in decreased transportation costs
for the household of the borrower.''.

SEC. 288. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA
MORTGAGE INSURANCE PROGRAMS AND NATIVE AMERICAN
AND NATIVE HAWAIIAN LOAN GUARANTEE PROGRAMS.

(a) FHA Mortgage Insurance.--
(1) Requirement.--Title V of the National Housing Act is
amended by adding after section 542 (12 U.S.C. 1735f-20) the
following new section:

``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.

``(a) Underwriting Standards.--The Secretary shall
establish a method to consider, in its underwriting standards
for mortgages on single-family housing meeting the energy
efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 that
are insured under this Act, the impact that savings on
utility costs has on the income of the mortgagor.
``(b) Goal.--It is the sense of the Congress that, in
carrying out this Act, the Secretary should endeavor to
insure mortgages on single-family housing meeting the energy
efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 such
that at least 50,000 such mortgages are insured during the
period beginning upon the date of the enactment of such Act
and ending on December 31, 2012.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)) is amended by adding at
the end the following new paragraph:
``(3) With respect to each collection period that commences
after December 31, 2011, the total number of mortgages on
single-family housing meeting the energy efficiency standards
under section 284(a) of the Green Resources for Energy
Efficient Neighborhoods Act of 2009 that are insured by the
Secretary during the applicable collection period, the number
of defaults and foreclosures occurring on such mortgages
during such period, the percentage of the total of such
mortgages insured during such period on which defaults and
foreclosure occurred, and the rate for such period of
defaults and foreclosures on such mortgages compared to the
overall rate for such period of defaults and foreclosures on
mortgages for single-family housing insured under this Act by
the Secretary.''.
(b) Indian Housing Loan Guarantees.--
(1) Requirement.--Section 184 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
(A) by redesignating subsection (l) as subsection (m); and
(B) by inserting after subsection (k) the following new
subsection:
``(l) Consideration of Energy Efficiency.--The Secretary
shall establish a method to consider, in its underwriting
standards for loans for single-family housing meeting the
energy efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 that
are guaranteed under this section, the impact that savings on
utility costs has on the income of the borrower.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)), as amended by subsection
(a)(2) of this section, is further amended by adding at the
end the following new paragraph:
``(4) With respect to each collection period that commences
after December 31, 2011, the total number of loans guaranteed
under section 184 of the Housing and Community Development
Act of 1992 (12 U.S.C. 1715z-13a) on single-family housing
meeting the energy efficiency standards under section 284(a)
of the Green Resources for Energy Efficient Neighborhoods Act
of 2009 that are guaranteed by the Secretary during the
applicable collection period, the number of defaults and
foreclosures occurring on such loans during such period, the
percentage of the total of such loans guaranteed during such
period on which defaults and foreclosure occurred, and the
rate for such period of defaults and foreclosures on such
loans compared to the overall rate for such period of
defaults and foreclosures on loans for single-family housing
guaranteed under such section 184 by the Secretary.''.
(c) Native Hawaiian Housing Loan Guarantees.--
(1) Requirement.--Section 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by
inserting after subsection (l) the following new subsection:
``(m) Energy-Efficient Housing Requirement.--The Secretary
shall establish a method to consider, in its underwriting
standards for loans for single-family housing meeting the
energy efficiency standards under section 284(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2009 that
are guaranteed under this section, the impact that savings on
utility costs has on the income of the borrower.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)), as amended by the
preceding provisions of this section, is further amended by
adding at the end the following new paragraph:
``(5) With respect to each collection period that commences
after December 31, 2011, the total number of loans guaranteed
under section 184A of the Housing and Community Development
Act of 1992 (12 U.S.C. 1715z-13b) on single-family housing
meeting the energy efficiency standards under section 284(a)
of the Green Resources for Energy Efficient Neighborhoods Act
of 2009 that are guaranteed by the Secretary during the
applicable collection period, the number of defaults and
foreclosures occurring on such loans during such period, the
percentage of the total of such loans guaranteed during such
period on which defaults and foreclosure occurred, and the
rate for such period of defaults and foreclosures on such
loans compared to the overall rate for such period of
defaults and foreclosures on loans for single-family housing
guaranteed under such section 184A by the Secretary.''.

SEC. 289. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT
MORTGAGES EDUCATION AND OUTREACH CAMPAIGN.

Section 106 of the Energy Policy Act of 1992 (12 U.S.C.
1701z-16) is amended by adding at the end the following new
subsection:
``(g) Education and Outreach Campaign.--
``(1) Development of energy- and location-efficient
mortgages outreach program.--

[[Page H7536]]

``(A) Commission.--The Secretary, in consultation and
coordination with the Secretary of Energy, the Secretary of
Education, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency, shall
establish a commission to develop and recommend model
mortgage products and underwriting guidelines that provide
market-based incentives to prospective home buyers, lenders,
and sellers to incorporate energy efficiency upgrades and
location efficiencies in new mortgage loan transactions.
``(B) Report.--Not later than 24 months after the date of
the enactment of this Act, the Secretary shall provide a
written report to the Congress on the results of work of the
commission established pursuant to subparagraph (A) and that
identifies model mortgage products and underwriting
guidelines that may encourage energy and location efficiency.
``(2) Implementation.--After submission of the report under
paragraph (1)(B), the Secretary, in consultation and
coordination with the Secretary of Energy, the Secretary of
Education, and the Administrator of the Environmental
Protection Agency, shall carry out a public awareness,
education, and outreach campaign based on the findings of the
commission established pursuant to paragraph (1) to inform
and educate residential lenders and prospective borrowers
regarding the availability, benefits, advantages, and terms
of energy-efficient mortgages and location-efficient
mortgages made available pursuant to this section, energy-
efficient and location-efficient mortgages that meet the
requirements of section 1335 of the Housing and Community
Development Act of 1992 (42 U.S.C. 4565), and other
mortgages, including mortgages for multifamily housing, that
have energy improvement features or location efficiency
features and to publicize such availability, benefits,
advantages, and terms. Such actions may include entering into
a contract with an appropriate entity to publicize and market
such mortgages through appropriate media.
``(3) Renewable energy home product expos.--The Congress
hereby encourages the Secretary of Housing and Urban
Development to work with appropriate entities to organize and
hold renewable energy expositions that provide an opportunity
for the public to view and learn about renewable energy
products for the home that are currently on the market.
``(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $5,000,000 for each of fiscal years 2010 through
2014.''.

SEC. 290. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND
LOCATION-EFFICIENT MORTGAGES THROUGH HOME
MORTGAGE DISCLOSURE ACT.

(a) In General.--Section 304(b) of the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(5) the number and dollar amount of mortgage loans for
single-family housing and for multifamily housing that are
energy-efficient mortgages (as such term is defined in
section 1335 of Housing and Community Development Act of
1992); and
``(6) the number and dollar amount of mortgage loans for
single-family housing and for multifamily housing that are
location-efficient mortgages (as such term is defined in
section 1335 of Housing and Community Development Act of
1992).''.
(b) Applicability.--The amendment made by subsection (a)
shall apply with respect to the first calendar year that
begins after the expiration of the 30-day period beginning on
the date of the enactment of this Act.

SEC. 291. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR
HOMES NOT CONNECTED TO ELECTRICITY GRID.

(a) Congressional Intent.--The Congress intends that--
(1) consumers shall not be denied homeowners insurance for
a dwelling (as such term is defined in subsection (c)) based
solely on the fact that the dwelling is not connected to or
able to receive electricity service from any wholesale or
retail electric power provider;
(2) States should ensure that consumers are able to obtain
homeowners insurance for such dwellings;
(3) States should support insurers that develop voluntary
incentives to provide such insurance; and
(4) States may not prohibit insurers from offering a
homeowners insurance product specifically designed for such
dwellings.
(b) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, dwellings located
in Indian areas (as such term is defined in section 4 of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103)) and constructed or maintained using
assistance, loan guarantees, or other authority under the
Native American Housing Assistance and Self-Determination Act
of 1996 may be insured by any tribally owned self-insurance
risk pool approved by the Secretary of Housing and Urban
Development.
(c) Dwelling.--For purposes of this section, the term
``dwelling'' means a residential structure that--
(1) consists of one to four dwelling units;
(2) is provided electricity from renewable energy sources;
and
(3) is not connected to any wholesale or retail electrical
power grid.

SEC. 292. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT
MULTIFAMILY HOUSING.

(a) In General.--The Secretary of Housing and Urban
Development shall establish incentives for increasing the
energy efficiency of multifamily housing that is subject to a
mortgage to be insured under title II of the National Housing
Act (12 U.S.C. 1707 et seq.) so that the housing meets the
energy efficiency standards under section 284(a) of this
subtitle and incentives to encourage compliance of such
housing with the energy efficiency and conservation
standards, and the green building standards, under section
284(b) of this subtitle, to the extent that such incentives
are based on the impact that savings on utility costs has on
the operating costs of the housing, as determined by the
Secretary.
(b) Incentives.--Such incentives may include, for any such
multifamily housing that complies with the energy efficiency
standards under section 284(a)--
(1) providing a discount on the chargeable premiums for the
mortgage insurance for such housing from the amount otherwise
chargeable for such mortgage insurance;
(2) allowing mortgages to exceed the dollar amount limits
otherwise applicable under law to the extent such additional
amounts are used to finance improvements or measures designed
to meet the standards referred to in subsection (a); and
(3) reducing the amount that the owner of such multifamily
housing meeting the standards referred to in subsection (a)
is required to contribute.

SEC. 293. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED
HOUSING WITH MORTGAGES.

Section 526 of the National Housing Act (12 U.S.C. 1735f-
4(a)) is amended--
(1) in subsection (a)--
(A) by striking ``, other than manufactured homes,'' each
place such term appears;
(B) by inserting after the period at the end the following:
``The energy performance requirements developed and
established by the Secretary under this section for
manufactured homes shall require energy star rating for wall
fixtures, appliances, and equipment in such housing.'';
(C) by inserting ``(1)'' after ``(a)''; and
(D) by adding at the end the following new paragraphs:
``(2) The Secretary shall require, with respect to any
single- or multi-family residential housing subject to a
mortgage insured under this Act, that any approval or
certification of the housing for meeting any energy
efficiency or conservation criteria, standards, or
requirements pursuant to this title and any approval or
certification required pursuant to this title with respect to
energy-conserving improvements or any renewable energy
sources, such as wind, solar energy geothermal, or biomass,
shall be conducted only by an individual certified by a home
energy rating system provider who has been accredited to
conduct such ratings by the Home Energy Ratings System
Council, the Residential Energy Services Network, or such
other appropriate national organization, as the Secretary may
provide, or by licensed professional architect or engineer.
If any organization makes a request to the Secretary for
approval to accredit individuals to conduct energy efficiency
or conservation ratings, the Secretary shall review and
approve or disapprove such request not later than the
expiration of the 6-month period beginning upon receipt of
such request.
``(3) The Secretary shall periodically examine the method
used to conduct inspections for compliance with the
requirements under this section, analyze various other
approaches for conducting such inspections, and review the
costs and benefits of the current method compared with other
methods.''; and
(2) in subsection (b), by striking ``, other than a
manufactured home,''.

SEC. 294. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.

(a) Authority.--Not later than the expiration of the 12-
month period beginning on the date of the enactment of this
Act, the Secretary shall develop and implement a pilot
program under this section to facilitate the financing of
cost-effective capital improvements for covered assisted
housing projects to improve the energy efficiency and
conservation of such projects.
(b) Loans.--The pilot program under this section shall
involve not less than three and not more than five lenders,
and shall provide for a privately financed loan to be made
for a covered assisted housing project, which shall--
(1) finance capital improvements for the project that meet
such requirements as the Secretary shall establish, and may
involve contracts with third parties to perform such capital
improvements, including the design of such improvements by
licensed professional architects or engineers;
(2) have a term to maturity of not more than 20 years,
which shall be based upon the duration necessary to realize
cost savings sufficient to repay the loan;
(3) be secured by a mortgage subordinate to the mortgage
for the project that is insured under the National Housing
Act; and
(4) provide for a reduction in the remaining principal
obligation under the loan based on

[[Page H7537]]

the actual resulting cost savings realized from the capital
improvements financed with the loan.
(c) Underwriting Standards.--The Secretary shall establish
underwriting requirements for loans made under the pilot
program under this section, which shall--
(1) require the cost savings projected to be realized from
the capital improvements financed with the loan, during the
term of the loan, to exceed the costs of repaying the loan;
(2) allow the designer or contractor involved in designing
capital improvements to be financed with a loan under the
program to carry out such capital improvements; and
(3) include such energy, audit, property, financial,
ownership, and approval requirements as the Secretary
considers appropriate.
(d) Treatment of Savings.--The pilot program under this
section shall provide that the project owner shall receive
the full financial benefit from any reduction in the cost of
utilities resulting from capital improvements financed with a
loan made under the program.
(e) Covered Assisted Housing Projects.--For purposes of
this section, the term ``covered assisted housing project''
means a housing project that--
(1) is financed by a loan or mortgage that is--
(A) insured by the Secretary under--
(i) subsection (d)(3) of section 221 of the National
Housing Act (12 U.S.C. 1715l), and bears interest at a rate
determined under the proviso of section 221(d)(5) of such
Act; or
(ii) subsection (d)(4) of such section 221.
(B) insured or assisted under section 236 of the National
Housing Act (12 U.S.C. 1715z-1);
(2) at the time a loan under this section is made, is
provided project-based rental assistance under section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f) for
50 percent or more of the dwelling units in the project; and
(3) is not a housing project owned or held by the
Secretary, or subject to a mortgage held by the Secretary.

SEC. 295. MAKING IT GREEN.

(a) Partnerships With Tree-Planting Organizations.--The
Secretary shall establish and provide incentives for
developers of housing for which any HUD financial assistance,
as determined by the Secretary, is provided for development,
maintenance, operation, or other costs, to enter into
agreements and partnerships with tree-planting organizations,
nurseries, and landscapers to certify that trees, shrubs,
grasses, and other plants are planted in the proper manner,
are provided adequate maintenance, and survive for at least 3
years after planting or are replaced. The financial
assistance determined by the Secretary as eligible under this
section shall take into consideration such factors as cost
effectiveness and affordability.
(b) Making It Green Plan.--In the case of any new or
substantially rehabilitated housing for which HUD financial
assistance, as determined in accordance with subsection (a),
is provided by the Secretary for the development,
construction, maintenance, rehabilitation, improvement,
operation, or costs of the housing, including financial
assistance provided through the Community Development Block
Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.), the
Secretary shall require the development of a plan that
provides for--
(1) in the case of new construction and improvements,
siting of such housing and improvements in a manner that
provides for energy efficiency and conservation to the extent
feasible, taking into consideration location and project
type;
(2) minimization of the effects of construction,
rehabilitation, or other development on the condition of
existing trees;
(3) selection and installation of indigenous trees, shrubs,
grasses, and other plants based upon applicable design
guidelines and standards of the International Society for
Arboriculture;
(4) post-planting care and maintenance of the landscaping
relating to or affected by the housing in accordance with
best management practices; and
(5) establishment of a goal for minimum greenspace or tree
canopy cover for the housing site for which such financial
assistance is provided, including guidelines and timetables
within which to achieve compliance with such minimum
requirements.
(c) Partnerships.--In carrying out this section, the
Secretary is encouraged to consult, as appropriate, with
national organizations dedicated to providing housing
assistance and related services to low-income families, such
as the Alliance for Community Trees and its affiliates, the
American Nursery and Landscape Association, the American
Society of Landscape Architects, and the National Arbor Day
Foundation.

SEC. 296. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

Title I of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end
the following new section:

``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT
PROGRAM.

``(a) In General.--To the extent amounts are made available
for grants under this section, the Secretary shall make
grants under this section to States, metropolitan cities and
urban counties, Indian tribes, and insular areas to carry out
energy efficiency improvements in new and existing single-
family and multifamily housing.
``(b) Allocations.--
``(1) In general.--Of the total amount made available for
each fiscal year for grants under this section that remains
after reserving amounts pursuant to paragraph (2), the
Secretary shall allocate for insular areas, for metropolitan
cities and urban counties, and for States, an amount that
bears the same ratio to such total amount as the amount
allocated for such fiscal year under section 106 for Indian
tribes, for insular areas, for metropolitan cities and urban
counties, and for States, respectively, bears to the total
amount made available for such fiscal year for grants under
section 106.
``(2) Set aside for indian tribes.--Of the total amount
made available for each fiscal year for grants under this
section, the Secretary shall allocate not less than 1 percent
to Indian tribes.
``(c) Grant Amounts.--
``(1) Entitlement communities.--From the amounts allocated
pursuant to subsection (b) for metropolitan cities and urban
counties for each fiscal year, the Secretary shall make a
grant for such fiscal year to each metropolitan city and
urban county that complies with the requirement under
subsection (d), in the amount that bears the same ratio such
total amount so allocated as the amount of the grant for such
fiscal year under section 106 for such metropolitan city or
urban county bears to the aggregate amount of all grants for
such fiscal year under section 106 for all metropolitan
cities and urban counties.
``(2) States.--From the amounts allocated pursuant to
subsection (b) for States for each fiscal year, the Secretary
shall make a grant for such fiscal year to each State that
complies with the requirement under subsection (d), in the
amount that bears the same ratio such total amount so
allocated as the amount of the grant for such fiscal year
under section 106 for such State bears to the aggregate
amount of all grants for such fiscal year under section 106
for all States. Grant amounts received by a State shall be
used only for eligible activities under subsection (e)
carried out in nonentitlement areas of the State.
``(3) Indian tribes.--From the amounts allocated pursuant
to subsection (b) for Indian tribes, the Secretary shall make
grants to Indian tribes that comply with the requirement
under subsection (d) on the basis of a competition conducted
pursuant to specific criteria, as the Secretary shall
establish by regulation, for the selection of Indian tribes
to receive such amount.
``(4) Insular areas.--From the amounts allocated pursuant
to subsection (b) for insular areas, the Secretary shall make
a grant to each insular area that complies with the
requirement under subsection (d) on the basis of the ratio of
the population of the insular area to the aggregate
population of all insular areas. In determining the
distribution of amounts to insular areas, the Secretary may
also include other statistical criteria as data become
available from the Bureau of Census of the Department of
Labor, but only if such criteria are set forth by regulation
issued after notice and an opportunity for comment.
``(d) Statement of Activities.--
``(1) Requirement.--Before receipt the receipt in any
fiscal year of a grant under subsection (c) by any grantee,
the grantee shall have prepared a final statement of housing
energy efficiency objectives and projected use of funds as
the Secretary shall require and shall have provided the
Secretary with such certifications regarding such objectives
and use as the Secretary may require. In the case of
metropolitan cities, urban counties, units of general local
government, and insular areas receiving grants, the statement
of projected use of funds shall consist of proposed housing
energy efficiency activities. In the case of States receiving
grants, the statement of projected use of funds shall consist
of the method by which the States will distribute funds to
units of general local government.
``(2) Public participation.--The Secretary may establish
requirements to ensure the public availability of information
regarding projected use of grant amounts and public
participation in determining such projected use.
``(e) Eligible Activities.--
``(1) Requirement.--Amounts from a grant under this section
may be used only to carry out activities for single-family or
multifamily housing that are designed to improve the energy
efficiency of the housing so that the housing complies with
the energy efficiency standards under section 284(a) of the
Green Resources for Energy Efficient Neighborhoods Act of
2009, including such activities to provide energy for such
housing from renewable sources, such as wind, waves, solar,
biomass, and geothermal sources.
``(2) Preference for compliance beyond basic
requirements.--In selecting activities to be funded with
amounts from a grant under this section, a grantee shall give
more preference to activities based on the extent to which
the activities will result in compliance by the housing with
the enhanced energy efficiency and conservation standards,
and the green building standards, under section 284(b) of
such Act.
``(f) Reports.--Each grantee of a grant under this section
for a fiscal year shall submit to the Secretary, at a time
determined by the Secretary, a performance and evaluation
report concerning the use of grant amounts, which shall
contain an assessment by the grantee of the relationship of
such use

[[Page H7538]]

to the objectives identified in the grantees statement under
subsection (d).
``(g) Applicability of CDBG Provisions.--Sections 109, 110,
and 111 of the Housing and Community Development Act of 1974
(42 U.S.C. 5309, 5310, 5311) shall apply to assistance
received under this section to the same extent and in the
same manner that such sections apply to assistance received
under title I of such Act.
``(h) Authorization of Appropriations.--There is authorized
to be appropriated for grants under this section
$2,500,000,000 for fiscal year 2010 and such sums as may be
necessary for each fiscal year thereafter.''.

SEC. 297. INCLUDING SUSTAINABLE DEVELOPMENT AND
TRANSPORTATION STRATEGIES IN COMPREHENSIVE
HOUSING AFFORDABILITY STRATEGIES.

Section 105(b) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12705(b)) is amended--
(1) by striking ``and'' at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20) and
inserting ``; and'';
(3) and by inserting after paragraph (20) the following new
paragraphs:
``(21) describe the jurisdiction's strategies to encourage
sustainable development for affordable housing, including
single-family and multifamily housing, as measured by--
``(A) greater energy efficiency and use of renewable energy
sources, including any strategies regarding compliance with
the energy efficiency standards under section 284(a) of the
Green Resources for Energy Efficient Neighborhoods Act of
2009 and with the enhanced energy efficiency and conservation
standards, and the green building standards, under section
284(b) of such Act;
``(B) increased conservation, recycling, and reuse of
resources;
``(C) more effective use of existing infrastructure;
``(D) use of building materials and methods that are
healthier for residents of the housing, including use of
building materials that are free of added known carcinogens
that are classified as Group 1 Known Carcinogens by the
International Agency for Research on Cancer; and
``(E) such other criteria as the Secretary determines, in
consultation with the Secretary of Energy, the Secretary of
Agriculture, and the Administrator of the Environmental
Protection Agency, are in accordance with the purposes of
this paragraph; and
``(22) describe the jurisdiction's efforts to coordinate
its housing strategy with its transportation planning
strategies to ensure to the extent practicable that residents
of affordable housing have access to public
transportation.''.

SEC. 298. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME
COMMUNITY DEVELOPMENT CAPACITY.

(a) In General.--The Secretary may make grants to nonprofit
organizations to use for any of the following purposes:
(1) Training, educating, supporting, or advising an
eligible community development organization or qualified
youth service and conservation corps in improving energy
efficiency, resource conservation and reuse, design
strategies to maximize energy efficiency, installing or
constructing renewable energy improvements (such as wind,
wave, solar, biomass, and geothermal energy sources), and
effective use of existing infrastructure in affordable
housing and economic development activities in low-income
communities, taking into consideration energy efficiency
standards under section 284(a) of this subtitle and with the
enhanced energy efficiency and conservation standards, and
the green building standards, under section 284(b) of this
subtitle.
(2) Providing loans, grants, or predevelopment assistance
to eligible community development organizations or qualified
youth service and conservation corps to carry out energy
efficiency improvements that comply with the energy
efficiency standards under section 284(a) of this subtitle,
resource conservation and reuse, and effective use of
existing infrastructure in affordable housing and economic
development activities in low-income communities. In
providing assistance under this paragraph, the Secretary
shall give more preference to activities based on the extent
to which the activities will result in compliance with the
enhanced energy efficiency and conservation standards, and
the green building standards, under section 284(b) of this
subtitle.
(3) Such other purposes as the Secretary determines are in
accordance with the purposes of this subsection.
(b) Application Requirement.--To be eligible for a grant
under this section, a nonprofit organization shall prepare
and submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary
may require.
(c) Award of Contracts.--Contracts for architectural or
engineering services funded with amounts from grants made
under this section shall be awarded in accordance with
chapter 11 of title 40, United States Code (relating to
selection of architects and engineers).
(d) Matching Requirement.--A grant made under this section
may not exceed the amount that the nonprofit organization
receiving the grant certifies, to the Secretary, will be
provided (in cash or in-kind) from nongovernmental sources to
carry out the purposes for which the grant is made.
(e) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) The term ``nonprofit organization'' has the meaning
given such term in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704).
(2) The term ``eligible community development
organization'' means--
(A) a unit of general local government (as defined in
section 104 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704));
(B) a community housing development organization (as
defined in section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704));
(C) an Indian tribe or tribally designated housing entity
(as such terms are defined in section 4 of the Native
American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4103)); or
(D) a public housing agency, as such term is defined in
section 3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437(b)).
(3) The term ``low-income community'' means a census tract
in which 50 percent or more of the households have an income
which is less than 80 percent of the greater of--
(A) the median gross income for such year for the area in
which such census tract is located; or
(B) the median gross income for such year for the State in
which such census tract is located.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$10,000,000 for each of fiscal years 2010 through 2014.

SEC. 299. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.

(a) Mandatory Component.--Section 24(e) of the United
States Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by
adding at the end the following new paragraph:
``(4) Green developments requirement.--
``(A) Requirement.--The Secretary may not make a grant
under this section to an applicant unless the proposed
revitalization plan of the applicant to be carried out with
such grant amounts meets the following requirements:
``(i) Green communities criteria checklist.--All
residential construction under the proposed plan complies
with the national Green Communities criteria checklist for
residential construction that provides criteria for the
design, development, and operation of affordable housing, as
such checklist is in effect for purposes of this paragraph
pursuant to subparagraph (D) at the date of the application
for the grant, or any substantially equivalent standard or
standards as determined by the Secretary, as follows:

``(I) The proposed plan shall comply with all items of the
national Green Communities criteria checklist for residential
construction that are identified as mandatory.
``(II) The proposed plan shall comply with such other
nonmandatory items of such national Green Communities
criteria checklist so as to result in a cumulative number of
points attributable to such nonmandatory items under such
checklist of not less than--

``(aa) 25 points, in the case of any proposed plan (or
portion thereof) consisting of new construction; and
``(bb) 20 points, in the case of any proposed plan (or
portion thereof) consisting of rehabilitation.
``(ii) Green buildings certification system.--All
nonresidential construction under the proposed plan complies
with all minimum required levels of the green building rating
systems and levels identified by the Secretary pursuant to
subparagraph (C), as such systems and levels are in effect
for purposes of this paragraph pursuant to subparagraph (D)
at the time of the application for the grant.
``(B) Verification.--
``(i) In general.--The Secretary shall verify, or provide
for verification, sufficient to ensure that each proposed
revitalization plan carried out with amounts from a grant
under this section complies with the requirements under
subparagraph (A) and that the revitalization plan is carried
out in accordance with such requirements and plan.
``(ii) Timing.--In providing for such verification, the
Secretary shall establish procedures to ensure such
compliance with respect to each grantee, and shall report to
the Congress with respect to the compliance of each grantee,
at each of the following times:

``(I) Not later than 6 months after execution of the grant
agreement under this section for the grantee.
``(II) Upon completion of the revitalization plan of the
grantee.

``(C) Identification of green buildings rating systems and
levels.--
``(i) In general.--For purposes of this paragraph, the
Secretary shall identify rating systems and levels for green
buildings that the Secretary determines to be the most likely
to encourage a comprehensive and environmentally sound
approach to ratings and standards for green buildings. The
identification of the ratings systems and levels shall be
based on the criteria specified in clause (ii), shall
identify the highest levels the Secretary determines are
appropriate above the minimum levels required under the
systems selected. Within 90 days of the completion of each
study required by clause (iii), the Secretary shall review
and update the rating systems and levels, or identify
alternative systems and levels for purposes of this
paragraph, taking into account the conclusions of such study.

[[Page H7539]]

``(ii) Criteria.--In identifying the green rating systems
and levels, the Secretary shall take into consideration--

``(I) the ability and availability of assessors and
auditors to independently verify the criteria and measurement
of metrics at the scale necessary to implement this
paragraph;
``(II) the ability of the applicable ratings system
organizations to collect and reflect public comment;
``(III) the ability of the standards to be developed and
revised through a consensus-based process;
``(IV) An evaluation of the robustness of the criteria for
a high-performance green building, which shall give credit
for promoting--

``(aa) efficient and sustainable use of water, energy, and
other natural resources;
``(bb) use of renewable energy sources;
``(cc) improved indoor and outdoor environmental quality
through enhanced indoor and outdoor air quality, thermal
comfort, acoustics, outdoor noise pollution, day lighting,
pollutant source control, sustainable landscaping, and use of
building system controls and low- or no-emission materials,
including preference for materials with no added carcinogens
that are classified as Group 1 Known Carcinogens by the
International Agency for Research on Cancer; and
``(dd) such other criteria as the Secretary determines to
be appropriate; and

``(V) national recognition within the building industry.

``(iii) 5-year evaluation.--At least once every 5 years,
the Secretary shall conduct a study to evaluate and compare
available third-party green building rating systems and
levels, taking into account the criteria listed in clause
(ii).
``(D) Applicability and updating of standards.--
``(i) Applicability.--Except as provided in clause (ii) of
this subparagraph, the national Green Communities criteria
checklist and green building rating systems and levels
referred to in clauses (i) and (ii) of subparagraph (A) that
are in effect for purposes of this paragraph are such
checklist systems, and levels as in existence upon the date
of the enactment of the Green Resources for Energy Efficient
Neighborhoods Act of 2009.
``(ii) Updating.--The Secretary may, by regulation, adopt
and apply, for purposes of this paragraph, future amendments
and supplements to, and editions of, the national Green
Communities criteria checklist, any standard or standards
that the Secretary has determined to be substantially
equivalent to such checklist, and the green building ratings
systems and levels identified by the Secretary pursuant to
subparagraph (C).''.
(b) Selection Criteria; Graded Component.--Section 24(e)(2)
of the United States Housing Act of 1937 (42 U.S.C.
1437v(e)(2)) is amended--
(1) in subparagraph (K), by striking ``and'' at the end;
(2) by redesignating subparagraph (L) as subparagraph (M);
and
(3) by inserting after subparagraph (K) the following new
subparagraph:
``(L) the extent to which the proposed revitalization
plan--
``(i) in the case of residential construction, complies
with the nonmandatory items of the national Green Communities
criteria checklist identified in paragraph (4)(A)(i), or any
substantially equivalent standard or standards as determined
by the Secretary, but only to the extent such compliance
exceeds the compliance necessary to accumulate the number of
points required under such paragraph; and
``(ii) in the case of nonresidential construction, complies
with the components of the green building rating systems and
levels identified by the Secretary pursuant to paragraph
(4)(C), but only to the extent such compliance exceeds the
minimum level required under such systems and levels; and''.

SEC. 299A. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS IN
APPRAISALS.

(a) Appraisals in Connection With Federally Related
Transactions.--
(1) Requirement.--Section 1110 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3339) is amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) by redesignating paragraph (2) as paragraph (3); and
(C) by inserting after paragraph (1) the following new
paragraph:
``(2) that such appraisals be performed in accordance with
appraisal standards that require, in determining the value of
a property, consideration of any renewable energy sources
for, or energy efficiency or energy-conserving improvements
or features of, the property; and''.
(2) Revision of appraisal standards.--Each Federal
financial institutions regulatory agency shall, not later
than 6 months after the date of the enactment of this Act,
revise its standards for the performance of real estate
appraisals in connection with federally related transactions
under the jurisdiction of the agency to comply with the
requirement under the amendments made by paragraph (1) of
this subsection.
(b) Appraiser Certification and Licensing Requirements.--
Section 1116 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3345) is amended--
(1) in subsection (a), by inserting before the period at
the end the following: ``, and meets the requirements
established pursuant to subsection (f) for qualifications
regarding consideration of any renewable energy sources for,
or energy efficiency or energy-conserving improvements or
features of, the property'';
(2) in subsection (c), by inserting before the period at
the end the following: ``, which shall include compliance
with the requirements established pursuant to subsection (f)
regarding consideration of any renewable energy sources for,
or energy efficiency or energy-conserving improvements or
features of, the property'';
(3) in subsection (e), by striking ``The'' and inserting
``Except as provided in subsection (f), the''; and
(4) by adding at the end the following new subsection:
``(f) Requirements for Appraisers Regarding Energy
Efficiency Features.--The Appraisal Subcommittee shall
establish requirements for State certification of State
certified real estate appraisers and for State licensing of
State licensed appraisers, to ensure that appraisers consider
and are qualified to consider, in determining the value of a
property, any renewable energy sources for, or energy
efficiency or energy-conserving improvements or features of,
the property.''.
(c) Guidelines for Appraising Photovoltaic Measures and
Training of Appraisers.--Section 1122 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3351) is amended by adding at the end the
following new subsection:
``(g) Guidelines for Appraising Photovoltaic Measures and
Training of Appraisers.--The Appraisal Subcommittee shall, in
consultation with the Secretary of Housing and Urban
Development, the Federal National Mortgage Association, and
the Federal Home Loan Mortgage Corporation, establish
specific guidelines for--
``(1) appraising off- and on-grid photovoltaic measures for
compliance with the appraisal standards prescribed pursuant
to section 1110(2);
``(2) requirements under section 1116(f) for certification
of State certified real estate appraisers and for State
licensing of State licensed appraisers, to ensure that
appraisers consider, and are qualified to consider, such
photovoltaic measures in determining the value of a property;
and
``(3) training of appraisers to meet the requirements
established pursuant to paragraph (2) of this subsection.''.

SEC. 299B. HOUSING ASSISTANCE COUNCIL.

The Secretary shall require the Housing Assistance
Council--
(1) to encourage each organization that receives assistance
from the Council with any amounts made available from the
Secretary to provide that any structures and buildings
developed or assisted under projects, programs, and
activities funded with such amounts complies with the energy
efficiency standards under section 284(a) of this subtitle;
and
(2) to establish incentives to encourage each such
organization to provide that any such structures and
buildings comply with the energy efficiency and conservation
standards, and the green building standards, under section
284(b) of such Act.

SEC. 299C. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.

The Secretary shall--
(1) require each tribe, agency, organization, corporation,
and other entity that receives any assistance from the Office
of Rural Housing and Economic Development of the Department
of Housing and Urban Development to provide that any
structures and buildings developed or assisted under
activities funded with such amounts complies with the energy
efficiency standards under section 284(a) of this subtitle;
and
(2) establish incentives to encourage each such tribe,
agency, organization, corporation, and other entity to
provide that any such structures and buildings comply with
the enhanced energy efficiency and conservation standards,
and the green building standards, under section 284(b) of
such Act.

SEC. 299D. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT
RENEWABLE ENERGY SOURCES ACTIVITIES.

(a) Establishment of Fund.--There is established in the
Treasury of the United States a fund, to be known as the
``Alternative Energy Sources State Loan Fund''.
(b) Expenditures.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to provide loans under subsection
(c)(1).
(2) Administrative expenses.--Of the amounts in the Fund,
not more than 5 percent shall be available for each fiscal
year to pay the administrative expenses of the Department of
Housing and Urban Development to carry out this section.
(c) Loans to States and Indian Tribes.--
(1) In general.--The Secretary shall use amounts in the
Fund to provide loans to States and Indian tribes to provide
incentives to owners of single-family and multifamily
housing, commercial properties, and public buildings to
provide--
(A) renewable energy sources for such structures, such as
wind, wave, solar, biomass, or geothermal energy sources,
including incentives to companies and business to change
their source of energy to such renewable energy sources and
for changing the sources of energy for public buildings to
such renewable energy sources;

[[Page H7540]]

(B) energy efficiency and energy conserving improvements
and features for such structures; or
(C) infrastructure related to the delivery of electricity
and hot water for structures lacking such amenities.
(2) Eligibility.--To be eligible to receive a loan under
this subsection, a State or Indian tribe, directly or through
an appropriate State or tribal agency, shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(3) Criteria for approval.--The Secretary may approve an
application of a State or Indian tribe under paragraph (2)
only if the Secretary determines that the State or tribe will
use the funds from the loan under this subsection to carry
out a program to provide incentives described in paragraph
(1) that--
(A) requires that any such renewable energy sources, and
energy efficiency and energy conserving improvements and
features, developed pursuant to assistance under the program
result in compliance of the structure so improved with energy
efficiency requirements determined by the Secretary; and
(B) includes such compliance and audit requirements as the
Secretary determines are necessary to ensure that the program
is operated in a sound and effective manner.
(4) Preference.--In making loans during each fiscal year,
the Secretary shall give preference to States and Indian
tribes that have not previously received a loan under this
subsection.
(5) Maximum amount.--The aggregate outstanding principal
amount from loans under this subsection to any single State
or Indian tribe may not exceed $500,000,000.
(6) Loan terms.--Each loan under this subsection shall have
a term to maturity of not more than 10 years and shall bear
interest at annual rate, determined by the Secretary, that
shall not exceed interest rate charged by the Federal Reserve
Bank of New York to commercial banks and other depository
institutions for very short-term loans under the primary
credit program, as most recently published in the Federal
Reserve Statistical Release on selected interest rates (daily
or weekly), and commonly referred to as the H.15 release,
preceding the date of a determination for purposes of
applying this paragraph.
(7) Loan repayment.--The Secretary shall require full
repayment of each loan made under this section.
(d) Investment of Amounts.--
(1) In general.--The Secretary of the Treasury shall invest
such amounts in the Fund that are not, in the judgment of the
Secretary of the Treasury, required to meet needs for current
withdrawals.
(2) Obligations of united states.--Investments may be made
only in interest-bearing obligations of the United States.
(e) Reports.--
(1) Reports to secretary.--For each year during the term of
a loan made under subsection (c), the State or Indian tribe
that received the loan shall submit to the Secretary a report
describing the State or tribal alternative energy sources
program for which the loan was made and the activities
conducted under the program using the loan funds during that
year.
(2) Report to congress.--Not later than September 30 of
each year that loans made under subsection (c) are
outstanding, the Secretary shall submit a report to the
Congress describing the total amount of such loans provided
under subsection (c) to each eligible State and Indian tribe
during the fiscal year ending on such date, and an evaluation
on effectiveness of the Fund.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to the Fund $5,000,000,000.
(g) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(2) State.--The term ``State'' means each of the several
States, the Commonwealth of Puerto Rico, the District of
Columbia, the Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, the Trust
Territories of the Pacific, or any other possession of the
United States.

SEC. 299E. GREEN BANKING CENTERS.

(a) Insured Depository Institutions.--Section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by
adding at the end the following new subsection:
``(x) `Green Banking' Centers.--
``(1) In general.--The Federal banking agencies shall
prescribe guidelines encouraging the establishment and
maintenance of `green banking' centers by insured depository
institutions to provide any consumer who seeks information on
obtaining a mortgage, home improvement loan, home equity
loan, or renewable energy lease with additional information
on--
``(A) obtaining an home energy rating or audit for the
residence for which such mortgage or loan is sought;
``(B) obtaining financing for cost-effective energy-saving
improvements to such property; and
``(C) obtaining beneficial terms for any mortgage or loan,
or qualifying for a larger mortgage or loan, secured by a
residence which meets or will meet energy efficiency
standards.
``(2) Information and referrals.--The information made
available to consumers under paragraph (1) may include--
``(A) information on obtaining a home energy rating and
contact information on qualified energy raters in the area of
the residence;
``(B) information on the secondary market guidelines that
permit lenders to provide more favorable terms by allowing
lenders to increase the ratio on debt-to-income requirements
or to use the projected utility savings as a compensating
factor;
``(C) information including eligibility information about,
and contact information for, any conservation or renewable
energy programs, grants, or loans offered by the Secretary of
Housing and Urban Development, including the Energy Efficient
Mortgage Program;
``(D) information including eligibility information about,
and contact information for, any conservation or renewable
energy programs, grants, or loans offered for qualified
military personal, reservists, and veterans by the Secretary
of Veterans Affairs;
``(E) information about, and contact information for, the
Office of Efficiency and Renewable Energy at the Department
of Energy, including the weatherization assistance program;
``(F) information about, and contact information for, the
Energy Star Program of the Environmental Protection Agency;
``(G) information from, and contact information for, the
Federal Citizen Information Center of the General Services
Administration on energy-efficient mortgages and loans, home
energy rating systems, and the availability of energy-
efficient mortgage information from a variety of Federal
agencies; and
``(H) such other information as the agencies or the insured
depository institution may determine to be appropriate or
useful.''.
(b) Insured Credit Unions.--Section 206 of the Federal
Credit Union Act (12 U.S.C. 1786) is amended by adding at the
end the following new subsection:
``(x) `Green Banking' Centers.--
``(1) In general.--The Board shall prescribe guidelines
encouraging the establishment and maintenance of `green
banking' centers by insured credit unions to provide any
member who seeks information on obtaining a mortgage, home
improvement loan, home equity loan, or renewable energy lease
with additional information on--
``(A) obtaining an home energy rating or audit for the
residence for which such mortgage or loan is sought;
``(B) obtaining financing for cost-effective energy-saving
improvements to such property; and
``(C) obtaining beneficial terms for any mortgage or loan,
or qualifying for a larger mortgage or loan, secured by a
residence which meets or will meet energy efficiency
standards.
``(2) Information and referrals.--The information made
available to members under paragraph (1) may include--
``(A) information on obtaining a home energy rating and
contact information on qualified energy raters in the area of
the residence;
``(B) information on the secondary market guidelines that
permit lenders to provide more favorable terms by allowing
lenders to increase the ratio on debt-to-income requirements
or to use the projected utility savings as a compensating
factor;
``(C) information including eligibility information about,
and contact information for, any conservation or renewable
energy programs, grants, or loans offered by the Secretary of
Housing and Urban Development, including the Energy Efficient
Mortgage Program;
``(D) information including eligibility information about,
and contact information for, any conservation or renewable
energy programs, grants, or loans offered for qualified
military personal, reservists, and veterans by the Secretary
of Veterans Affairs;
``(E) information about, and contact information for, the
Office of Efficiency and Renewable Energy at the Department
of Energy, including the weatherization assistance program;
``(F) information from, and contact information for, the
Federal Citizen Information Center of the General Services
Administration on energy-efficient mortgages and loans, home
energy rating systems, and the availability of energy-
efficient mortgage information from a variety of Federal
agencies; and
``(G) such other information as the Board or the insured
credit union may determine to be appropriate or useful.''.

SEC. 299F. GAO REPORTS ON AVAILABILITY OF AFFORDABLE
MORTGAGES.

(a) Study.--The Comptroller General of the United States
shall periodically, as necessary to comply with subsection
(b), examine the impact of this subtitle and the amendments
made by this subtitle on the availability of affordable
mortgages in various areas throughout the United States,
including cities having older infrastructure and limited
space for the development of new housing.
(b) Triennial Reports.--The Comptroller General shall
submit a report once every 3 years to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate that shall include--
(1) a detailed statement of the most recent findings
pursuant to subsection (a); and
(2) if the Comptroller General finds that this subtitle or
the amendments made by

[[Page H7541]]

this subtitle have directly or indirectly resulted in
consequences that limit the availability or affordability of
mortgages in any area or areas within the United States,
including any city having older infrastructure and limited
space for the development of new housing, any recommendations
for any additional actions at the Federal, State, or local
levels that the Comptroller General considers necessary or
appropriate to mitigate such effects.

The first report under this subsection shall be submitted not
later than the expiration of the 3-year period beginning on
the date of the enactment of this Act.

SEC. 299G. PUBLIC HOUSING ENERGY COST REPORT.

(a) Collection of Information by HUD.--The Secretary of
Housing and Urban Development shall obtain from each public
housing agency, by such time as may be necessary to comply
with the reporting requirement under subsection (b),
information regarding the energy costs for public housing
administered or operated by the agency. For each public
housing agency, such information shall include the monthly
energy costs associated with each separate building and
development of the agency, for the most recently completed
12-month period for which such information is available, and
such other information as the Secretary determines is
appropriate in determining which public housing buildings and
developments are most in need of repairs and improvements to
reduce energy needs and costs and become more energy
efficient.
(b) Report.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act,
the Secretary of Housing and Urban Development shall submit a
report to the Congress setting forth the information
collected pursuant to subsection (a).

SEC. 299H. SECONDARY MARKET FOR RESIDENTIAL RENEWABLE ENERGY
LEASE INSTRUMENTS.

(a) Purposes.--The purposes of this section are--
(1) to encourage residential use of renewable energy
systems by minimizing up-front costs and providing immediate
utility cost savings to consumers through leasing of such
systems to homeowners;
(2) to reduce carbon emissions and the use of nonrenewable
resources;
(3) to encourage energy-efficient residential construction
and rehabilitation;
(4) to encourage the use of renewable resources by
homeowners;
(5) to minimize the impact of development on the
environment;
(6) to reduce consumer utility costs; and
(7) to encourage private investment in the green economy.
(b) Residual Value of Renewable Energy Asset.--The
Secretary of Housing and Urban Development shall establish a
means of determining the residual value of a renewable energy
asset such that a secondary market for residential renewable
energy lease instruments may be facilitated. Such means may
include, without limitation, the calculation of residual
value based on the net present value of projected future
energy production of the renewable energy asset.

SEC. 299I. GREEN GUARANTEES.

(a) Authority To Guarantee ``Green Portion'' of Eligible
Mortgages.--
(1) In general.--The Secretary of Housing and Urban
Development may make commitments to guarantee under this
section and may guarantee, the repayment of the portions of
the principal obligations of eligible mortgages that are used
to finance eligible sustainable building elements for the
housing that is subject to the mortgage.
(2) Amount of guarantee.--A guarantee under this section by
the Secretary in connection with an eligible mortgage shall
not exceed a percentage of the green portion (as such term is
defined in subsection (g)) of the mortgage, as shall be
established by the Secretary and may be established on a
regional basis as the Secretary determines appropriate.
(b) Eligible Mortgages.--To be considered an eligible
mortgage for purposes of this section, a mortgage shall
comply with all of the following requirements:
(1) Acquisition or construction of housing.--The mortgage
shall be made for the acquisition or construction of single-
or multifamily housing and repayment of the mortgage shall be
secured by an interest in such housing.
(2) Financing of eligible sustainable building elements
through green portion of mortgage.--A portion of the
principal obligation of the mortgage, which meets the
requirements under subsection (c), shall be used only for
financing the provision of eligible sustainable building
elements for the housing for which the mortgage was made.
(3) Maximum mortgage amount.--The principal obligation of
the mortgage (including the eligible portion of such
mortgage, and such initial service charges, appraisal,
inspection, and other fees as the Secretary shall approve)
may not exceed the following amounts:
(A) Single-family housing.--Such dollar amounts for single-
family housing as the Secretary shall establish, which may be
established on the basis of the number of dwelling units in
the housing, as the Secretary considers appropriate.
(B) Multifamily housing.--Such dollar amounts for
multifamily housing as the Secretary shall establish, which
may be established on the basis of the number of dwelling
units in the housing and the number of bedrooms in such
dwelling units, as the Secretary considers appropriate.
(4) Repayment.--The mortgage meets such requirements as the
Secretary shall establish to ensure that there is a
reasonable prospect of repayment of the principal and
interest on the obligation by the mortgagor.
(5) Mortgage terms.--The mortgage shall meet such
requirements with respect to loan-to-value ratio, mortgagor
credit scores, debt-to-income ratio, and other underwriting
standards, term to maturity, interest rates and amortization,
including amortization of the green portion of the mortgage,
and other mortgage terms as the Secretary shall establish.
(c) Limitations on Green Portion of Mortgage.--The
requirements under this subsection with respect to the green
portion of an eligible mortgage are as follows:
(1) Percentage limitation.--Such portion shall not exceed,
in the case of single-family or multifamily housing, 10
percent of the total principal obligation of the mortgage.
(2) Dollar amount limitation.--Such portion shall not
exceed--
(A) in the case of single-family housing, such maximum
dollar amount limitation as the Secretary shall establish,
which may be established on the basis of the number of
dwelling units in the housing, as the Secretary considers
appropriate; and
(B) in the case of multifamily housing, such maximum dollar
amount limitation as the Secretary shall establish, which
limitation may be established on the basis of the number of
dwelling units in the housing and the number of bedrooms in
such dwelling units, as the Secretary considers appropriate.
(3) Cost-effectiveness limitation.--Such portion shall not
exceed the total present value of the savings (as determined
in accordance with subsection (d)) attributable to the
incorporation of the eligible sustainable building elements
to be financed with the green portion of the mortgage that
are to be realized over the useful life of such elements.
(d) Eligible Sustainable Building Elements.--The Secretary
may not guarantee any eligible mortgage under this section
unless the mortgagor has demonstrated, in accordance with
such requirements as the Secretary shall establish, the
amount of savings attributable to incorporation of the
sustainable building elements to be financed with the green
portion of the mortgage, as measured by the National Green
Building Standard for all residential construction developed
by the National Association of Home Builders and the U.S.
Green Building Council, and approved by the American National
Standards Institute, as updated and in effect at the time of
such demonstration.
(e) Guarantee Fee.--
(1) Assessment and collection.--The Secretary shall assess
and collect fees for guarantees under this section in amounts
that the Secretary determines are sufficient to cover the
costs (as such term is defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)) of such
guarantees.
(2) Availability.--Fees collected under this subsection
shall be deposited by the Secretary in the Treasury of the
United States and shall remain available until expended,
subject to such other conditions as are contained in annual
appropriations Acts.
(f) Payment of Guarantee.--
(1) Default.--
(A) Right to payment.--If a mortgagor under a mortgage
guaranteed under this section defaults (as defined in
regulations issued by the Secretary and specified in the
guarantee contract) on the obligation under the mortgage--
(i) the holder of the guarantee shall have the right to
demand payment of the unpaid amount of the guaranteed portion
of the mortgage, to the extent provided under subsection
(a)(2), from the Secretary; and
(ii) within such period as may be specified in the
guarantee or related agreements, the Secretary shall pay to
the holder of the guarantee, to the extent provided under
subsection (a)(2), the unpaid interest on, and unpaid
principal of the portion of guaranteed portion of the
mortgage with respect to which the borrower has defaulted,
unless the Secretary finds that there was no default by the
borrower in the payment of interest or principal or that the
default has been remedied.
(B) Forbearance.--Nothing in this paragraph precludes any
forbearance by the holder of an eligible mortgage for the
benefit of the mortgagor which may be agreed upon by the
parties to the mortgage and approved by the Secretary.
(2) Subrogation.--
(A) In general.--If the Secretary makes a payment under
paragraph (1), the Secretary shall be subrogated to the
rights of the recipient of the payment as specified in the
guarantee or related agreements including, if appropriate,
the authority (notwithstanding any other provision of law)--
(i) to complete, maintain, operate, lease, or otherwise
dispose of any property acquired pursuant to such guarantee
or related agreements; or
(ii) to permit the mortgagor, pursuant to an agreement with
the Secretary, to continue to occupy the property subject to
the mortgage, if the Secretary determines such occupancy to
be appropriate.
(B) Superiority of rights.--The rights of the Secretary,
with respect to any property acquired pursuant to a guarantee
or related agreements, shall be superior to the rights of

[[Page H7542]]

any other person with respect to the property.
(C) Terms and conditions.--A guarantee agreement shall
include such detailed terms and conditions as the Secretary
determines appropriate to protect the interests of the United
States in the case of default.
(3) Full faith and credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
issued under this section with respect to principal and
interest.
(g) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Eligible mortgage.--The term ``eligible mortgage''
means a mortgage that meets the requirements under subsection
(b).
(2) Green portion.--The term ``green portion'' means, with
respect to an eligible mortgage, the portion of the mortgage
principal referred to in subsection (b)(2) that is
attributable, as determined in accordance with regulations
issued by the Secretary, to the increased costs incurred in
financing provision of sustainable building elements for the
housing for which the mortgage was made, as compared to the
costs that would have been incurred in financing the
provision of other building elements for the housing for the
same purposes that are commonly or conventionally used but
are not sustainable building elements.
(3) Guaranteed portion.--The term ``guaranteed portion''
means, with respect to an eligible mortgage guaranteed under
this section, the green portion of the mortgage that is so
guaranteed.
(4) Mortgage.--The term ``mortgage'' has the meaning given
such term in section 201 of the National Housing Act (12
U.S.C. 1707).
(5) Multifamily housing.--The term ``multifamily housing''
means a residential property consisting of five or more
dwelling units.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(7) Single-family housing.--The term ``single-family
housing'' means a residential property consisting of one to
four dwelling units.
(8) Sustainable building element.--The term ``sustainable
building element'' means such building elements, as the
Secretary shall define, that have energy efficiency or
environmental sustainability qualities that are superior to
such qualities for other building elements for the same
purposes that are commonly or conventionally used.
(h) Authorization of Appropriations.--There is authorized
to be appropriated for costs (as such term is defined in
section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a) of guarantees under this section $500,000,000
for each of fiscal years 2010 through 2014.
(i) Regulations.--The Secretary shall issue any regulations
necessary to carry out this section.

TITLE III--REDUCING GLOBAL WARMING POLLUTION

SEC. 301. SHORT TITLE.

This title, and sections 112, 116, 221, 222, 223, and 401
of this Act, and the amendments made by this title and those
sections, may be cited as the ``Safe Climate Act''.

Subtitle A--Reducing Global Warming Pollution

SEC. 311. REDUCING GLOBAL WARMING POLLUTION.

The Clean Air Act (42 U.S.C. and following) is amended by
adding after title VI the following new title:

``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

``PART A--GLOBAL WARMING POLLUTION REDUCTION GOALS AND TARGETS

``SEC. 701. FINDINGS AND PURPOSE.

``(a) Findings.--The Congress finds as follows:
``(1) Global warming poses a significant threat to the
national security, economy, public health and welfare, and
environment of the United States, as well as of other
nations.
``(2) Reviews of scientific studies, including by the
Intergovernmental Panel on Climate Change and the National
Academy of Sciences, demonstrate that global warming is the
result of the combined anthropogenic greenhouse gas emissions
from numerous sources of all types and sizes. Each increment
of emission, when combined with other emissions, causes or
contributes materially to the acceleration and extent of
global warming and its adverse effects for the lifetime of
such gas in the atmosphere. Accordingly, controlling
emissions in small as well as large amounts is essential to
prevent, slow the pace of, reduce the threats from, and
mitigate global warming and its adverse effects.
``(3) Because they induce global warming, greenhouse gas
emissions cause or contribute to injuries to persons in the
United States, including--
``(A) adverse health effects such as disease and loss of
life;
``(B) displacement of human populations;
``(C) damage to property and other interests related to
ocean levels, acidification, and ice changes;
``(D) severe weather and seasonal changes;
``(E) disruption, costs, and losses to business, trade,
employment, farms, subsistence, aesthetic enjoyment of the
environment, recreation, culture, and tourism;
``(F) damage to plants, forests, lands, and waters;
``(G) harm to wildlife and habitat;
``(H) scarcity of water and the decreased abundance of
other natural resources;
``(I) worsening of tropospheric air pollution;
``(J) substantial threats of similar damage; and
``(K) other harm.
``(4) That many of these effects and risks of future
effects of global warming are widely shared does not minimize
the adverse effects individual persons have suffered, will
suffer, and are at risk of suffering because of global
warming.
``(5) That some of the adverse and potentially catastrophic
effects of global warming are at risk of occurring and not a
certainty does not negate the harm persons suffer from
actions that increase the likelihood, extent, and severity of
such future impacts.
``(6) Nations of the world look to the United States for
leadership in addressing the threat of and harm from global
warming. Full implementation of the Safe Climate Act is
critical to engage other nations in an international effort
to mitigate the threat of and harm from global warming.
``(7) Global warming and its adverse effects are occurring
and are likely to continue and increase in magnitude, and to
do so at a greater and more harmful rate, unless the Safe
Climate Act is fully implemented and enforced in an
expeditious manner.
``(b) Purpose.--It is the general purpose of the Safe
Climate Act to help prevent, reduce the pace of, mitigate,
and remedy global warming and its adverse effects. To fulfill
such purpose, it is necessary to--
``(1) require the timely fulfillment of all governmental
acts and duties, both substantive and procedural, and the
prompt compliance of covered entities with the requirements
of the Safe Climate Act;
``(2) establish and maintain an effective, transparent, and
fair market for emission allowances and preserve the
integrity of the cap on emissions and of offset credits;
``(3) advance the production and deployment of clean energy
and energy efficiency technologies; and
``(4) ensure effective enforcement of the Safe Climate Act
by citizens, States, Indian tribes, and all levels of
government because each violation of the Safe Climate Act is
likely to result in an additional increment of greenhouse gas
emission and will slow the pace of implementation of the Safe
Climate Act and delay the achievement of the goals set forth
in section 702, and cause or contribute to global warming and
its adverse effects.

``SEC. 702. ECONOMY-WIDE REDUCTION GOALS.

``The goals of the Safe Climate Act are to reduce steadily
the quantity of United States greenhouse gas emissions such
that--
``(1) in 2012, the quantity of United States greenhouse gas
emissions does not exceed 97 percent of the quantity of
United States greenhouse gas emissions in 2005;
``(2) in 2020, the quantity of United States greenhouse gas
emissions does not exceed 80 percent of the quantity of
United States greenhouse gas emissions in 2005;
``(3) in 2030, the quantity of United States greenhouse gas
emissions does not exceed 58 percent of the quantity of
United States greenhouse gas emissions in 2005; and
``(4) in 2050, the quantity of United States greenhouse gas
emissions does not exceed 17 percent of the quantity of
United States greenhouse gas emissions in 2005.

``SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES.

``(a) In General.--The regulations issued under section 721
shall cap and reduce annually the greenhouse gas emissions of
capped sources each calendar year beginning in 2012 such
that--
``(1) in 2012, the quantity of greenhouse gas emissions
from capped sources does not exceed 97 percent of the
quantity of greenhouse gas emissions from such sources in
2005;
``(2) in 2020, the quantity of greenhouse gas emissions
from capped sources does not exceed 83 percent of the
quantity of greenhouse gas emissions from such sources in
2005;
``(3) in 2030, the quantity of greenhouse gas emissions
from capped sources does not exceed 58 percent of the
quantity of greenhouse gas emissions from such sources in
2005; and
``(4) in 2050, the quantity of greenhouse gas emissions
from capped sources does not exceed 17 percent of the
quantity of greenhouse gas emissions from such sources in
2005.
``(b) Definition.--For purposes of this section, the term
`greenhouse gas emissions from such sources in 2005' means
emissions to which section 722 would have applied if the
requirements of this title for the specified year had been in
effect for 2005.

``SEC. 704. SUPPLEMENTAL POLLUTION REDUCTIONS.

``For the purposes of decreasing the likelihood of
catastrophic climate change, preserving tropical forests,
building capacity to generate offset credits, and
facilitating international action on global warming, the
Administrator shall set aside the percentage specified in
section 781 of the quantity of emission allowances
established under section 721(a) for each year, to be used to
achieve a reduction of greenhouse gas emissions from
deforestation in developing countries in accordance with part
E. In 2020, activities supported under part E shall provide
greenhouse gas reductions in an amount equal to an additional
10 percentage points of reductions from United States
greenhouse

[[Page H7543]]

gas emissions in 2005. The Administrator shall distribute
these allowances with respect to activities in countries that
enter into and implement agreements or arrangements relating
to reduced deforestation as described in section 754(a)(2).

``SEC. 705. REVIEW AND PROGRAM RECOMMENDATIONS.

``(a) In General.--The Administrator shall, in consultation
with appropriate Federal agencies, submit to Congress a
report not later than July 1, 2013, and every 4 years
thereafter, that includes--
``(1) an analysis of key findings based on the latest
scientific information and data relevant to global climate
change;
``(2) an analysis of capabilities to monitor and verify
greenhouse gas reductions on a worldwide basis, including for
the United States, as required under the Safe Climate Act;
and
``(3) an analysis of the status of worldwide greenhouse gas
reduction efforts, including implementation of the Safe
Climate Act and other policies, both domestic and
international, for reducing greenhouse gas emissions,
preventing dangerous atmospheric concentrations of greenhouse
gases, preventing significant irreversible consequences of
climate change, and reducing vulnerability to the impacts of
climate change.
``(b) Exception.--Paragraph (3) of subsection (a) shall not
apply to the first report submitted under such subsection.
``(c) Latest Scientific Information.--The analysis required
under subsection (a)(1) shall--
``(1) address existing scientific information and reports,
considering, to the greatest extent possible, the most recent
assessment report of the Intergovernmental Panel on Climate
Change, reports by the United States Global Change Research
Program, the Natural Resources Climate Change Adaptation
Panel established under section 475 of the American Clean
Energy and Security Act of 2009, and Federal agencies, and
the European Union's global temperature data assessment; and
``(2) review trends and projections for--
``(A) global and country-specific annual emissions of
greenhouse gases, and cumulative greenhouse gas emissions
produced between 1850 and the present, including--
``(i) global cumulative emissions of anthropogenic
greenhouse gases;
``(ii) global annual emissions of anthropogenic greenhouse
gases; and
``(iii) by country, annual total, annual per capita, and
cumulative anthropogenic emissions of greenhouse gases for
the top 50 emitting nations;
``(B) significant changes, both globally and by region, in
annual net non-anthropogenic greenhouse gas emissions from
natural sources, including permafrost, forests, or oceans;
``(C) global atmospheric concentrations of greenhouse
gases, expressed in annual concentration units as well as
carbon dioxide equivalents based on 100-year global warming
potentials;
``(D) major climate forcing factors, such as aerosols;
``(E) global average temperature, expressed as seasonal and
annual averages in land, ocean, and land-plus-ocean averages;
and
``(F) sea level rise;
``(3) assess the current and potential impacts of global
climate change on--
``(A) human populations, including impacts on public
health, economic livelihoods, subsistence, human
infrastructure, and displacement or permanent relocation due
to flooding, severe weather, extended drought, erosion, or
other ecosystem changes;
``(B) freshwater systems, including water resources for
human consumption and agriculture and natural and managed
ecosystems, flood and drought risks, and relative humidity;
``(C) the carbon cycle, including impacts related to the
thawing of permafrost, the frequency and intensity of
wildfire, and terrestrial and ocean carbon sinks;
``(D) ecosystems and animal and plant populations,
including impacts on species abundance, phenology, and
distribution;
``(E) oceans and ocean ecosystems, including effects on sea
level, ocean acidity, ocean temperatures, coral reefs, ocean
circulation, fisheries, and other indicators of ocean
ecosystem health;
``(F) the cryosphere, including effects on ice sheet mass
balance, mountain glacier mass balance, and sea-ice extent
and volume;
``(G) changes in the intensity, frequency, or distribution
of severe weather events, including precipitation, tropical
cyclones, tornadoes, and severe heat waves;
``(H) agriculture and forest systems; and
``(I) any other indicators the Administrator deems
appropriate;
``(4) summarize any significant socio-economic impacts of
climate change in the United States, including the
territories of the United States, drawing on work by Federal
agencies and the academic literature, including impacts on--
``(A) public health;
``(B) economic livelihoods and subsistence;
``(C) displacement or permanent relocation due to flooding,
severe weather, extended drought, erosion, or other ecosystem
changes;
``(D) human infrastructure, including coastal
infrastructure vulnerability to extreme events and sea level
rise, river floodplain infrastructure, and sewer and water
management systems;
``(E) agriculture and forests, including effects on
potential growing season, distribution, and yield;
``(F) water resources for human consumption, agriculture
and natural and managed ecosystems, flood and drought risks,
and relative humidity;
``(G) energy supply and use; and
``(H) transportation;
``(5) in assessing risks and impacts, use a risk management
framework, including both qualitative and quantitative
measures, to assess the observed and projected impacts of
current and future climate change, accounting for--
``(A) both monetized and non-monetized losses;
``(B) potential nonlinear, abrupt, or essentially
irreversible changes in the climate system;
``(C) potential nonlinear increases in the cost of impacts;
``(D) potential low-probability, high impact events; and
``(E) whether impacts are transitory or essentially
permanent; and
``(6) based on the findings of the Administrator under this
section, as well as assessments produced by the
Intergovernmental Panel on Climate Change, the United States
Global Change Research program, and other relevant scientific
entities--
``(A) describe increased risks to natural systems and
society that would result from an increase in global average
temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above
the pre-industrial average or an increase in atmospheric
greenhouse gas concentrations above 450 parts per million
carbon dioxide equivalent; and
``(B) identify and assess--
``(i) significant residual risks not avoided by the
thresholds described in subparagraph (A);
``(ii) alternative thresholds or targets that may more
effectively limit the risks identified pursuant to clause
(i); and
``(iii) thresholds above those described in subparagraph
(A) which significantly increase the risk of certain impacts
or render them essentially permanent.
``(d) Status of Monitoring and Verification Capabilities To
Evaluate Greenhouse Gas Reduction Efforts.--The analysis
required under subsection (a)(2) shall evaluate the
capabilities of the monitoring, reporting, and verification
systems used to quantify progress in achieving reductions in
greenhouse gas emissions both globally and in the United
States (as described in section 702), including--
``(1) quantification of emissions and emission reductions
by entities participating in the cap and trade program under
this title;
``(2) quantification of emissions and emission reductions
by entities participating in the offset program under this
title;
``(3) quantification of emission and emissions reductions
by entities regulated by performance standards;
``(4) quantification of aggregate net emissions and
emissions reductions by the United States; and
``(5) quantification of global changes in net emissions and
in sources and sinks of greenhouse gases.
``(e) Status of Greenhouse Gas Reduction Efforts.--The
analysis required under subsection (a)(3) shall address--
``(1) whether the programs under Safe Climate Act and other
Federal statutes are resulting in sufficient United States
greenhouse gas emissions reductions to meet the emissions
reduction goals described in section 702, taking into account
the use of offsets; and
``(2) whether United States actions, taking into account
international actions, commitments, and trends, and
considering the range of plausible emissions scenarios, are
sufficient to avoid--
``(A) atmospheric greenhouse gas concentrations above 450
parts per million carbon dioxide equivalent;
``(B) global average surface temperature 3.6 degrees
Fahrenheit (2 degrees Celsius) above the pre-industrial
average, or such other temperature thresholds as the
Administrator deems appropriate; and
``(C) other temperature or greenhouse gas thresholds
identified pursuant to subsection (c)(6)(B).
``(f) Recommendations.--
``(1) Latest scientific information.--Based on the analysis
described in subsection (a)(1), each report under subsection
(a) shall identify actions that could be taken to--
``(A) improve the characterization of changes in the earth-
climate system and impacts of global climate change;
``(B) better inform decision making and actions related to
global climate change;
``(C) mitigate risks to natural and social systems; and
``(D) design policies to better account for climate risks.
``(2) Monitoring, reporting and verification.--Based on the
analysis described in subsection (a)(2), each report under
subsection (a) shall identify key gaps in measurement,
reporting, and verification capabilities and make
recommendations to improve the accuracy and reliability of
those capabilities.
``(3) Status of greenhouse gas reduction efforts.--Based on
the analysis described in subsection (a)(3), taking into
account international actions, commitments, and trends, and
considering the range of plausible emissions scenarios, each
report under subsection (a) shall identify--

[[Page H7544]]

``(A) the quantity of additional reductions required to
meet the emissions reduction goals in section 702;
``(B) the quantity of additional reductions in global
greenhouse gas emissions needed to avoid the concentration
and temperature thresholds identified in subsection (e); and
``(C) possible strategies and approaches for achieving
additional reductions.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary.

``SEC. 706. NATIONAL ACADEMY REVIEW.

``(a) In General.--Not later than 1 year after the date of
enactment of this title, the Administrator shall offer to
enter into a contract with the National Academy of Sciences
(in this section referred to as the `Academy') under which
the Academy shall, not later than July 1, 2014, and every 4
years thereafter, submit to Congress and the Administrator a
report that includes--
``(1) a review of the most recent report and
recommendations issued under section 705; and
``(2) an analysis of technologies to achieve reductions in
greenhouse gas emissions.
``(b) Failure to Issue a Report.--In the event that the
Administrator has not issued all or part of the most recent
report required under section 705, the Academy shall conduct
its own review and analysis of the required information.
``(c) Technological Information.--The analysis required
under subsection (a)(2) shall--
``(1) review existing technological information and
reports, including the most recent reports by the Department
of Energy, the United States Global Change Research Program,
the Intergovernmental Panel on Climate Change, and the
International Energy Agency and any other relevant
information on technologies or practices that reduce or limit
greenhouse gas emissions;
``(2) include the participation of technical experts from
relevant private industry sectors;
``(3) review the current and future projected deployment of
technologies and practices in the United States that reduce
or limit greenhouse gas emissions, including--
``(A) technologies for capture and sequestration of
greenhouse gases;
``(B) technologies to improve energy efficiency;
``(C) low- or zero-greenhouse gas emitting energy
technologies;
``(D) low- or zero-greenhouse gas emitting fuels;
``(E) biological sequestration practices and technologies;
and
``(F) any other technologies the Academy deems relevant;
and
``(4) review and compare the emissions reduction potential,
commercial viability, market penetration, investment trends,
and deployment of the technologies described in paragraph
(3), including--
``(A) the need for additional research and development,
including publicly funded research and development;
``(B) the extent of commercial deployment, including, where
appropriate, a comparison to the cost and level of deployment
of conventional fossil fuel-fired energy technologies and
devices; and
``(C) an evaluation of any substantial technological,
legal, or market-based barriers to commercial deployment.
``(d) Recommendations.--
``(1) Latest scientific information.--Based on the review
described in subsection (a)(1), the Academy shall identify
actions that could be taken to--
``(A) improve the characterization of changes in the earth-
climate system and impacts of global climate change;
``(B) better inform decision making and actions related to
global climate change;
``(C) mitigate risks to natural and social systems;
``(D) design policies to better account for climate risks;
and
``(E) improve the accuracy and reliability of capabilities
to monitor, report, and verify greenhouse gas emissions
reduction efforts.
``(2) Technological information.--Based on the analysis
described in subsection (a)(2), the Academy shall identify--
``(A) additional emissions reductions that may be possible
as a result of technologies described in the analysis;
``(B) barriers to the deployment of such technologies; and
``(C) actions that could be taken to speed deployment of
such technologies.
``(3) Status of greenhouse gas reduction efforts.--Based on
the review described in subsection (a)(1), the Academy shall
identify--
``(A) the quantity of additional reductions required to
meet the emissions reduction goals described in section 702;
and
``(B) the quantity of additional reductions in global
greenhouse gas emissions needed to avoid the concentration
and temperature thresholds described in section 705(c)(6)(A)
or identified pursuant to section 705(c)(6)(B).
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary.

``SEC. 707. PRESIDENTIAL RESPONSE AND RECOMMENDATIONS.

``(a) Agency Actions.--The President shall direct relevant
Federal agencies to use existing statutory authority to take
appropriate actions identified in the reports submitted under
sections 705 and 706, and to address any shortfalls
identified in such reports, not later than July 1, 2015, and
every 4 years thereafter.
``(b) Plan.--In the event that the Administrator or the
National Academy of Sciences has concluded, in the most
recent report submitted under section 705 or 706
respectively, that the United States will not achieve the
necessary domestic greenhouse gas emissions reductions, or
that global actions will not maintain safe global average
surface temperature and atmospheric greenhouse gas
concentration thresholds, the President shall, not later than
July 1, 2015, and every 4 years thereafter, submit to
Congress a plan identifying domestic and international
actions that will achieve necessary additional greenhouse gas
reductions, including any recommendations for legislative
action.

``PART B--DESIGNATION AND REGISTRATION OF GREENHOUSE GASES

``SEC. 711. DESIGNATION OF GREENHOUSE GASES.

``(a) Greenhouse Gases.--For purposes of this title, the
following are greenhouse gases:
``(1) Carbon dioxide.
``(2) Methane.
``(3) Nitrous oxide.
``(4) Sulfur hexafluoride.
``(5) Hydrofluorocarbons emitted from a chemical
manufacturing process at an industrial stationary source.
``(6) Any perfluorocarbon.
``(7) Nitrogen trifluoride.
``(8) Any other anthropogenic gas designated as a
greenhouse gas by the Administrator under this section.
``(b) Determination on Administrator's Initiative.--The
Administrator shall, by rule--
``(1) determine whether 1 metric ton of another
anthropogenic gas makes the same or greater contribution to
global warming over 100 years as 1 metric ton of carbon
dioxide;
``(2) determine the carbon dioxide equivalent value for
each gas with respect to which the Administrator makes an
affirmative determination under paragraph (1);
``(3) for each gas with respect to which the Administrator
makes an affirmative determination under paragraph (1) and
that is used as a substitute for a class I or class II
substance under title VI, determine the extent to which to
regulate that gas under section 619 and specify appropriate
compliance obligations under section 619;
``(4) designate as a greenhouse gas for purposes of this
title each gas for which the Administrator makes an
affirmative determination under paragraph (1), to the extent
that it is not regulated under section 619; and
``(5) specify the appropriate compliance obligations under
this title for each gas designated as a greenhouse gas under
paragraph (4).
``(c) Petitions to Designate a Greenhouse Gas.--
``(1) In general.--Any person may petition the
Administrator to designate as a greenhouse gas any
anthropogenic gas 1 metric ton of which makes the same or
greater contribution to global warming over 100 years as 1
metric ton of carbon dioxide.
``(2) Contents of petition.--The petitioner shall provide
sufficient data, as specified by rule by the Administrator,
to demonstrate that the gas is likely to be designated as a
greenhouse gas and is likely to be produced, imported, used,
or emitted in the United States. To the extent practicable,
the petitioner shall also identify producers, importers,
distributors, users, and emitters of the gas in the United
States.
``(3) Review and action by the administrator.--Not later
than 90 days after receipt of a petition under paragraph (2),
the Administrator shall determine whether the petition is
complete and notify the petitioner and the public of the
decision.
``(4) Additional information.--The Administrator may
require producers, importers, distributors, users, or
emitters of the gas to provide information on the
contribution of the gas to global warming over 100 years
compared to carbon dioxide.
``(5) Treatment of petition.--For any substance used as a
substitute for a class I or class II substance under title
VI, the Administrator may elect to treat a petition under
this subsection as a petition to list the substance as a
class II, group II substance under section 619, and may
require the petition to be amended to address listing
criteria promulgated under that section.
``(6) Determination.--Not later than 2 years after receipt
of a complete petition, the Administrator shall, after notice
and an opportunity for comment--
``(A) issue and publish in the Federal Register--
``(i) a determination that 1 metric ton of the gas does not
make a contribution to global warming over 100 years that is
equal to or greater than that made by 1 metric ton of carbon
dioxide; and
``(ii) an explanation of the decision; or
``(B) determine that 1 metric ton of the gas makes a
contribution to global warming over 100 years that is equal
to or greater than that made by 1 metric ton of carbon
dioxide, and take the actions described in subsection (b)
with respect to such gas.
``(7) Grounds for denial.--The Administrator may not deny a
petition under this subsection solely on the basis of
inadequate Environmental Protection Agency resources or time
for review.
``(d) Science Advisory Board Consultation.--

[[Page H7545]]

``(1) Consultation.--The Administrator shall--
``(A) give notice to the Science Advisory Board prior to
making a determination under subsection (b)(1), (c)(6), or
(e)(2)(B);
``(B) consider the written recommendations of the Science
Advisory Board under paragraph (2) regarding the
determination; and
``(C) consult with the Science Advisory Board regarding
such determination, including consultation subsequent to
receipt of such written recommendations.
``(2) Formulation of recommendations.--Upon receipt of
notice under paragraph (1)(A) regarding a pending
determination under subsection (b)(1), (c)(6), or (e)(2)(B),
the Science Advisory Board shall--
``(A) formulate recommendations regarding such
determination, subject to a peer review process; and
``(B) submit such recommendations in writing to the
Administrator.
``(e) Manufacturing and Emission Notices.--
``(1) Notice requirement.--
``(A) In general.--Effective 24 months after the date of
enactment of this title, no person may manufacture or
introduce into interstate commerce a fluorinated gas, or emit
a significant quantity, as determined by the Administrator,
of any fluorinated gas that is generated as a byproduct
during the production or use of another fluorinated gas,
unless--
``(i) the gas is designated as a greenhouse gas under this
section or is an ozone-depleting substance listed as a class
I or class II substance under title VI;
``(ii) the Administrator has determined that 1 metric ton
of such gas does not make a contribution to global warming
over 100 years that is equal to or greater than that made by
1 metric ton of carbon dioxide; or
``(iii) the person manufacturing or importing the gas for
distribution into interstate commerce, or emitting the gas,
has submitted to the Administrator, at least 90 days before
the start of such manufacture, introduction into commerce, or
emission, a notice of such person's manufacture, introduction
into commerce, or emission of such gas, and the Administrator
has not determined that that notice or a substantially
similar notice submitted by that person is incomplete.
``(B) Alternative compliance.--For a gas that is a
substitute for a class I or class II substance under title VI
and either has been listed as acceptable for use under
section 612 or is currently subject to evaluation under
section 612, the Administrator may accept the notice and
information provided pursuant to that section as fulfilling
the obligation under clause (iii) of subparagraph (A).
``(2) Review and action by the administrator.--
``(A) Completeness.--Not later than 90 days after receipt
of notice under paragraph (1)(A)(iii) or (B), the
Administrator shall determine whether the notice is complete.
``(B) Determination.--If the Administrator determines that
the notice is complete, the Administrator shall, after notice
and an opportunity for comment, not later than 12 months
after receipt of the notice--
``(i) issue and publish in the Federal Register--

``(I) a determination that 1 metric ton of the gas does not
make a contribution to global warming over 100 years that is
equal to or greater than that made by 1 metric ton of carbon
dioxide; and
``(II) an explanation of the decision; or

``(ii) determine that 1 metric ton of the gas makes a
contribution to global warming over 100 years that is equal
to or greater than that made by 1 metric ton of carbon
dioxide, and take the actions described in subsection (b)
with respect to such gas.
``(f) Regulations.--Not later than one year after the date
of enactment of this title, the Administrator shall
promulgate regulations to carry out this section. Such
regulations shall include--
``(1) requirements for the contents of a petition submitted
under subsection (c);
``(2) requirements for the contents of a notice required
under subsection (e); and
``(3) methods and standards for evaluating the carbon
dioxide equivalent value of a gas.
``(g) Gases Regulated Under Title VI.--The Administrator
shall not designate a gas as a greenhouse gas under this
section to the extent that the gas is regulated under title
VI.
``(h) Savings Clause.--Nothing in this section shall be
interpreted to relieve any person from complying with the
requirements of section 612.

``SEC. 712. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE
GASES.

``(a) Measure of Quantity of Greenhouse Gases.--Any
provision of this title or title VIII that refers to a
quantity or percentage of a quantity of greenhouse gases
shall mean the quantity or percentage of the greenhouse gases
expressed in carbon dioxide equivalents.
``(b) Initial Value.--Except as provided by the
Administrator under this section or section 711--
``(1) the carbon dioxide equivalent value of greenhouse
gases for purposes of this Act shall be as follows:

``CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASES
------------------------------------------------------------------------
Carbon dioxide
Greenhouse gas (1 metric ton)             equivalent (metric
tons)
------------------------------------------------------------------------
Carbon dioxide......................................                  1
------------------------------------------------------------------------
Methane.............................................                 25
------------------------------------------------------------------------
Nitrous oxide.......................................                298
------------------------------------------------------------------------
HFC-23..............................................             14,800
------------------------------------------------------------------------
HFC-125.............................................              3,500
------------------------------------------------------------------------
HFC-134a............................................              1,430
------------------------------------------------------------------------
HFC-143a............................................              4,470
------------------------------------------------------------------------
HFC-152a............................................                124
------------------------------------------------------------------------
HFC-227ea...........................................              3,220
------------------------------------------------------------------------
HFC-236fa...........................................              9,810
------------------------------------------------------------------------
HFC-4310mee.........................................              1,640
------------------------------------------------------------------------
CF4.................................................              7,390
------------------------------------------------------------------------
C2F6................................................             12,200
------------------------------------------------------------------------
C4F10...............................................              8,860
------------------------------------------------------------------------
C6F14...............................................              9,300
------------------------------------------------------------------------
SF6.................................................             22,800
------------------------------------------------------------------------
NF3.................................................             17,200
------------------------------------------------------------------------

; and
``(2) the carbon dioxide equivalent value for purposes of
this Act for any greenhouse gas not listed in the table under
paragraph (1) shall be the 100-year Global Warming Potentials
provided in the Intergovernmental Panel on Climate Change
Fourth Assessment Report.
``(c) Periodic Review.--
``(1) Not later than February 1, 2017, and (except as
provided in paragraph (3)) not less than every 5 years
thereafter, the Administrator shall--
``(A) review and, if appropriate, revise the carbon dioxide
equivalent values established under this section or section
711(b)(2), based on a determination of the number of metric
tons of carbon dioxide that makes the same contribution to
global warming over 100 years as 1 metric ton of each
greenhouse gas; and
``(B) publish in the Federal Register the results of that
review and any revisions.
``(2) A revised determination published in the Federal
Register under paragraph (1)(B) shall take effect for
greenhouse gas emissions starting on January 1 of the first
calendar year starting at least 9 months after the date on
which the revised determination was published.
``(3) The Administrator may decrease the frequency of
review and revision under paragraph (1) if the Administrator
determines that such decrease is appropriate in order to
synchronize such review and revision with any similar review
process carried out pursuant to the United Nations Framework
Convention on Climate Change, done at New York on May 9,
1992, or to an agreement negotiated under that convention,
except that in no event shall the Administrator carry out
such review and revision any less frequently than every 10
years.
``(d) Methodology.--In setting carbon dioxide equivalent
values, for purposes of this section or section 711, the
Administrator shall take into account publications by the
Intergovernmental Panel on Climate Change or a successor
organization under the auspices of the United Nations
Environmental Programme and the World Meteorological
Organization.

``SEC. 713. GREENHOUSE GAS REGISTRY.

``(a) Definitions.--For purposes of this section:
``(1) Climate registry.--The term `Climate Registry' means
the greenhouse gas emissions registry jointly established and
managed by more than 40 States and Indian tribes in 2007 to
collect high-quality greenhouse gas emission data from
facilities, corporations, and other organizations to support
various greenhouse gas emission reporting and reduction
policies for the member States and Indian tribes.
``(2) Reporting entity.--The term `reporting entity'
means--
``(A) a covered entity;
``(B) an entity that--
``(i) would be a covered entity if it had emitted,
produced, imported, manufactured, or delivered in 2008 or any
subsequent year more than the applicable threshold level in
the definition of covered entity in paragraph (13) of section
700; and
``(ii) has emitted, produced, imported, manufactured, or
delivered in 2008 or any subsequent year more than the
applicable threshold level in the definition of covered
entity in paragraph (13) of section 700, provided that the
figure of 25,000 tons of carbon dioxide equivalent is read
instead as 10,000 tons of carbon dioxide equivalent and the
figure of 460,000,000 cubic feet is read instead as
184,000,000 cubic feet;
``(C) any other entity that emits a greenhouse gas, or
produces, imports, manufactures, or delivers material whose
use results or may result in greenhouse gas emissions if the
Administrator determines that reporting under this section by
such entity will help achieve the purposes of this title or
title VIII;
``(D) any vehicle fleet with emissions of more than 25,000
tons of carbon dioxide equivalent on an annual basis, if the
Administrator determines that the inclusion of

[[Page H7546]]

such fleet will help achieve the purposes of this title or
title VIII; or
``(E) any entity that delivers electricity to a facility in
an energy-intensive industrial sector that meets the energy
or greenhouse gas intensity criteria in section
764(b)(2)(A)(i).
``(b) Regulations.--
``(1) In general.--Not later than 6 months after the date
of enactment of this title, the Administrator shall issue
regulations establishing a Federal greenhouse gas registry.
Such regulations shall--
``(A) require reporting entities to submit to the
Administrator data on--
``(i) greenhouse gas emissions in the United States;
``(ii) the production and manufacture in the United States,
importation into the United States, and, at the discretion of
the Administrator, exportation from the United States, of
fuels and industrial gases the uses of which result or may
result in greenhouse gas emissions;
``(iii) deliveries in the United States of natural gas, and
any other gas meeting the specifications for commingling with
natural gas for purposes of delivery, the combustion of which
result or may result in greenhouse gas emissions; and
``(iv) the capture and sequestration of greenhouse gases;
``(B) require covered entities and, where appropriate,
other reporting entities to submit to the Administrator data
sufficient to ensure compliance with or implementation of the
requirements of this title;
``(C) require reporting of electricity delivered to
facilities in an energy-intensive industrial sector that
meets the energy or greenhouse gas intensity criteria in
section 764(b)(2)(A)(i);
``(D) ensure the completeness, consistency, transparency,
accuracy, precision, and reliability of such data;
``(E) take into account the best practices from the most
recent Federal, State, tribal, and international protocols
for the measurement, accounting, reporting, and verification
of greenhouse gas emissions, including protocols from the
Climate Registry and other mandatory State or multistate
authorized programs;
``(F) take into account the latest scientific research;
``(G) require that, for covered entities with respect to
greenhouse gases to which section 722 applies, and, to the
extent determined to be appropriate by the Administrator, for
covered entities with respect to other greenhouse gases and
for other reporting entities, submitted data are based on--
``(i) continuous monitoring systems for fuel flow or
emissions, such as continuous emission monitoring systems;
``(ii) alternative systems that are demonstrated as
providing data with the same precision, reliability,
accessibility, and timeliness, or, to the extent the
Administrator determines is appropriate for reporting small
amounts of emissions, the same precision, reliability, and
accessibility and similar timeliness, as data provided by
continuous monitoring systems for fuel flow or emissions; or
``(iii) alternative methodologies that are demonstrated to
provide data with precision, reliability, accessibility, and
timeliness, or, to the extent the Administrator determines is
appropriate for reporting small amounts of emissions,
precision, reliability, and accessibility, as similar as is
technically feasible to that of data generally provided by
continuous monitoring systems for fuel flow or emissions, if
the Administrator determines that, with respect to a
reporting entity, there is no continuous monitoring system or
alternative system described in clause (i) or (ii) that is
technically feasible;
``(H) require that the Administrator, in determining the
extent to which the requirement to use systems or
methodologies in accordance with subparagraph (G) is
appropriate for reporting entities other than covered
entities or for greenhouse gases to which section 722 does
not apply, consider the cost of using such systems and
methodologies, and of using other systems and methodologies
that are available and suitable, for quantifying the
emissions involved in light of the purposes of this title,
including the goal of collecting consistent entity-wide data;
``(I) include methods for minimizing double reporting and
avoiding irreconcilable double reporting of greenhouse gas
emissions;
``(J) establish measurement protocols for carbon capture
and sequestration systems, taking into consideration the
regulations promulgated under section 813;
``(K) require that reporting entities provide the data
required under this paragraph in reports submitted
electronically to the Administrator, in such form and
containing such information as may be required by the
Administrator;
``(L) include requirements for keeping records supporting
or related to, and protocols for auditing, submitted data;
``(M) establish consistent policies for calculating carbon
content and greenhouse gas emissions for each type of fossil
fuel with respect to which reporting is required;
``(N) subsequent to implementation of policies developed
under subparagraph (M), provide for immediate dissemination,
to States, Indian tribes, and on the Internet, of all data
reported under this section as soon as practicable after
electronic audit by the Administrator and any resulting
correction of data, except that data shall not be
disseminated under this subparagraph if--
``(i) its nondissemination is vital to the national
security of the United States, as determined by the
President; or
``(ii) it is confidential business information that cannot
be derived from information that is otherwise publicly
available and that would cause significant calculable
competitive harm if published, except that--

``(I) data relating to greenhouse gas emissions, including
any upstream or verification data from reporting entities,
shall not be considered to be confidential business
information; and
``(II) data that is confidential business information shall
be provided to a State or Indian tribe within whose
jurisdiction the reporting entity is located, if the
Administrator determines that such State or Indian tribe has
in effect protections for confidential business information
that are at least as protective as protections applicable to
the Federal Government;

``(O) prescribe methods by which the Administrator shall,
in cases in which satisfactory data are not submitted to the
Administrator for any period of time, estimate emission,
production, importation, manufacture, or delivery levels--
``(i) for covered entities with respect to greenhouse gas
emissions, production, importation, manufacture, or delivery
regulated under this title to ensure that emissions,
production, importation, manufacture, or deliveries are not
underreported, and to create a strong incentive for meeting
data monitoring and reporting requirements--

``(I) with a conservative estimate of the highest emission,
production, importation, manufacture, or delivery levels that
may have occurred during the period for which data are
missing; or
``(II) to the extent the Administrator considers
appropriate, with an estimate of such levels assuming the
unit is emitting, producing, importing, manufacturing, or
delivering at a maximum potential level during the period, in
order to ensure that such levels are not underreported and to
create a strong incentive for meeting data monitoring and
reporting requirements; and

``(ii) for covered entities with respect to greenhouse gas
emissions to which section 722 does not apply and for other
reporting entities, with a reasonable estimate of the
emission, production, importation, manufacture, or delivery
levels that may have occurred during the period for which
data are missing;
``(P) require the designation of a designated
representative for each reporting entity;
``(Q) require an appropriate certification, by the
designated representative for the reporting entity, of
accurate and complete accounting of greenhouse gas emissions,
as determined by the Administrator; and
``(R) include requirements for other data necessary for
accurate and complete accounting of greenhouse gas emissions,
as determined by the Administrator, including data for
quality assurance of monitoring systems, monitors and other
measurement devices, and other data needed to verify reported
emissions, production, importation, manufacture, or delivery.
``(2) Timing.--
``(A) Calendar years 2007 through 2010.--For a base period
of calendar years 2007 through 2010, each reporting entity
shall submit annual data required under this section to the
Administrator not later than March 31, 2011. The
Administrator may waive or modify reporting requirements for
calendar years 2007 through 2010 for categories of reporting
entities to the extent that the Administrator determines that
the reporting entities did not keep data or records necessary
to meet reporting requirements. The Administrator may, in
addition to or in lieu of such requirements, collect
information on energy consumption and production.
``(B) Subsequent calendar years.--For calendar year 2011
and each subsequent calendar year, each reporting entity
shall submit quarterly data required under this section to
the Administrator not later than 60 days after the end of the
applicable quarter, except when the data is already being
reported to the Administrator on an earlier timeframe for
another program.
``(3) Waiver of reporting requirements.--The Administrator
may waive reporting requirements under this section for
specific entities to the extent that the Administrator
determines that sufficient and equally or more reliable
verified and timely data are available to the Administrator
and the public on the Internet under other mandatory
statutory requirements.
``(4) Alternative threshold.--The Administrator may, by
rule, establish applicability thresholds for reporting under
this section using alternative metrics and levels, provided
that such metrics and levels are easier to administer and
cover the same size and type of sources as the threshold
defined in this section.
``(c) Interrelationship With Other Systems.--In developing
the regulations issued under subsection (b), the
Administrator shall take into account the work done by the
Climate Registry and other mandatory State or multistate
programs. Such regulations shall include an explanation of
any major differences in approach between the system
established under the regulations and such registries and
programs.

[[Page H7547]]

``PART C--PROGRAM RULES

``SEC. 721. EMISSION ALLOWANCES.

``(a) In General.--The Administrator shall establish a
separate quantity of emission allowances for each calendar
year starting in 2012, in the amounts prescribed under
subsection (e).
``(b) Identification Numbers.--The Administrator shall
assign to each emission allowance established under
subsection (a) a unique identification number that includes
the vintage year for that emission allowance.
``(c) Legal Status of Emission Allowances.--
``(1) In general.--An allowance established by the
Administrator under this title does not constitute a property
right, nor does any offset credit or other instrument
established or issued under the American Clean Energy and
Security Act of 2009, and the amendments made thereby, for
the purpose of demonstrating compliance with this title.
``(2) Termination or limitation.--Nothing in this Act or
any other provision of law shall be construed to limit or
alter the authority of the United States, including the
Administrator acting pursuant to statutory authority, to
terminate or limit allowances, offset credits, or term offset
credits.''
``(3) Other provisions unaffected.--Except as otherwise
specified in this Act, nothing in this Act relating to
allowances, offset credits, or term offset credits,
established or issued under this title shall affect the
application of any other provision of law to a covered
entity, or the responsibility for a covered entity to comply
with any such provision of law.
``(d) Savings Provision.--Nothing in this part shall be
construed as requiring a change of any kind in any State law
regulating electric utility rates and charges, or as
affecting any State law regarding such State regulation, or
as limiting State regulation (including any prudency review)
under such a State law. Nothing in this part shall be
construed as modifying the Federal Power Act or as affecting
the authority of the Federal Energy Regulatory Commission
under that Act. Nothing in this part shall be construed to
interfere with or impair any program for competitive bidding
for power supply in a State in which such program is
established.
``(e) Allowances for Each Calendar Year.--
``(1) In general.--Except as provided in paragraph (2), the
number of emission allowances established by the
Administrator under subsection (a) for each calendar year
shall be as provided in the following table:

------------------------------------------------------------------------
``Calendar year             Emission allowances (in millions)
------------------------------------------------------------------------
2012                                4,627
------------------------------------------------------------------------
2013                                4,544
------------------------------------------------------------------------
2014                                5,099
------------------------------------------------------------------------
2015                                5,003
------------------------------------------------------------------------
2016                                5,482
------------------------------------------------------------------------
2017                                5,375
------------------------------------------------------------------------
2018                                5,269
------------------------------------------------------------------------
2019                                5,162
------------------------------------------------------------------------
2020                                5,056
------------------------------------------------------------------------
2021                                4,903
------------------------------------------------------------------------
2022                                4,751
------------------------------------------------------------------------
2023                                4,599
------------------------------------------------------------------------

------------------------------------------------------------------------
``Calendar year             Emission allowances (in millions)
------------------------------------------------------------------------
2024                                4,446
------------------------------------------------------------------------
2025                                4,294
------------------------------------------------------------------------
2026                                4,142
------------------------------------------------------------------------
2027                                3,990
------------------------------------------------------------------------
2028                                3,837
------------------------------------------------------------------------
2029                                3,685
------------------------------------------------------------------------
2030                                3,533
------------------------------------------------------------------------
2031                                3,408
------------------------------------------------------------------------
2032                                3,283
------------------------------------------------------------------------
2033                                3,158
------------------------------------------------------------------------
2034                                3,033
------------------------------------------------------------------------
2035                                2,908
------------------------------------------------------------------------
2036                                2,784
------------------------------------------------------------------------
2037                                2,659
------------------------------------------------------------------------
2038                                2,534
------------------------------------------------------------------------
2039                                2,409
------------------------------------------------------------------------
2040                                2,284
------------------------------------------------------------------------
2041                                2,159
------------------------------------------------------------------------
2042                                2,034
------------------------------------------------------------------------
2043                                1,910
------------------------------------------------------------------------
2044                                1,785
------------------------------------------------------------------------
2045                                1,660
------------------------------------------------------------------------
2046                                1,535
------------------------------------------------------------------------
2047                                1,410
------------------------------------------------------------------------
2048                                1,285
------------------------------------------------------------------------
2049                                1,160
------------------------------------------------------------------------
2050 and each year thereafter                             1,035
------------------------------------------------------------------------

``(2) Revision.--
``(A) In general.--The Administrator may adjust, in
accordance with subparagraph (B), the number of emission
allowances established pursuant to paragraph (1) if, after
notice and an opportunity for public comment, the
Administrator determines that--
``(i) United States greenhouse gas emissions in 2005 were
other than 7,206 million metric tons carbon dioxide
equivalent;
``(ii) if the requirements of this title for 2012 had been
in effect in 2005, section 722 would have required emission
allowances to be held for other than 66.2 percent of United
States greenhouse gas emissions in 2005;
``(iii) if the requirements of this title for 2014 had been
in effect in 2005, section 722 would have required emission
allowances to be held for other than 75.7 percent of United
States greenhouse gas emissions in 2005; or
``(iv) if the requirements of this title for 2016 had been
in effect in 2005, section 722 would have required emission
allowances to be held for other than 84.5 percent United
States greenhouse gas emissions in 2005.
``(B) Adjustment formula.--
``(i) In general.--If the Administrator adjusts under this
paragraph the number of emission allowances established
pursuant to paragraph (1), the number of emission allowances
the Administrator establishes for any given calendar year
shall equal the product of--

``(I) United States greenhouse gas emissions in 2005,
expressed in tons of carbon dioxide equivalent;
``(II) the percent of United States greenhouse gas
emissions in 2005, expressed in tons of carbon dioxide
equivalent, that would have been subject to section 722 if
the requirements of this title for the given calendar year
had been in effect in 2005; and
``(III) the percentage set forth for that calendar year in
section 703(a), or determined under clause (ii) of this
subparagraph.

``(ii) Targets.--In applying the portion of the formula in
clause (i)(III) of this subparagraph, for calendar years for
which a percentage is not listed in section 703(a), the
Administrator shall use a uniform annual decline in the
amount of emissions between the years that are specified.
``(iii) Carbon dioxide equivalent value.--If the
Administrator adjusts under this paragraph the number of
emission allowances established pursuant to paragraph (1),
the Administrator shall use the carbon dioxide equivalent
values established pursuant to section 712.
``(iv) Limitation on adjustment timing.--Once a calendar
year has started, the Administrator may not adjust the number
of emission allowances to be established for that calendar
year.
``(C) Limitation on adjustment authority.--The
Administrator may adjust under this paragraph the number of
emission allowances to be established pursuant to paragraph
(1) only once.
``(f) Compensatory Allowance.--
``(1) In general.--The regulations promulgated under
subsection (h) shall provide for the establishment and
distribution of compensatory allowances for--
``(A) the destruction, in 2012 or later, of fluorinated
gases that are greenhouse gases if--
``(i) allowances or offset credits were retired for their
production or importation; and
``(ii) such gases are not required to be destroyed under
any other provision of law;
``(B) the nonemissive use, in 2012 or later, of petroleum-
based or coal-based liquid or gaseous fuel, petroleum coke,
natural gas liquid, or natural gas as a feedstock, if
allowances or offset credits were retired for the greenhouse
gases that would have been emitted from their combustion; and
``(C) the conversionary use, in 2012 or later, of
fluorinated gases in a manufacturing process, including
semiconductor research or manufacturing, if allowances or
offset credits were retired for the production or importation
of such gas.
``(2) Establishment and distribution.--
``(A) In general.--Not later than 90 days after the end of
each calendar year, the Administrator shall establish and
distribute to the entity taking the actions described in
subparagraph (A), (B), or (C) of paragraph (1) a quantity of
compensatory allowances equivalent to the number of tons of
carbon dioxide equivalent of avoided emissions achieved
through such actions. In establishing the quantity of
compensatory allowances, the Administrator shall take into
account the carbon dioxide equivalent value of any greenhouse
gas resulting from such action.
``(B) Source of allowances.--Compensatory allowances
established under this subsection shall not be emission
allowances established under subsection (a).
``(C) Identification numbers.--The Administrator shall
assign to each compensatory allowance established under
subparagraph (A) a unique identification number.

[[Page H7548]]

``(3) Definitions.--For purposes of this subsection--
``(A) the term `destruction' means the conversion of a
greenhouse gas by thermal, chemical, or other means to
another gas or set of gases with little or no carbon dioxide
equivalent value;
``(B) the term `nonemissive use' means the use of fossil
fuel as a feedstock in an industrial or manufacturing process
to the extent that greenhouse gases are not emitted from such
process, and to the extent that the products of such process
are not intended for use as, or to be contained in, a fuel;
and
``(C) the term `conversionary use' means the conversion
during research or manufacturing of a fluorinated gas into
another greenhouse gas or set of gases with a lower carbon
dioxide equivalent value.
``(4) Feedstock emissions study.--
``(A) The Administrator may conduct a study to determine
the extent to which petroleum-based or coal-based liquid or
gaseous fuel, petroleum coke, natural gas liquid, or natural
gas are used as feedstocks in manufacturing processes to
produce products and the greenhouse gas emissions resulting
from such uses.
``(B) If as a result of such a study, the Administrator
determines that the use of such products by noncovered
sources results in substantial emissions of greenhouse gases
and that such emissions have not been adequately addressed
under other requirements of this Act, the Administrator may,
after notice and comment rulemaking, promulgate a regulation
reducing compensatory allowances commensurately if doing so
will not result in shifting such emissions to noncovered
sources.
``(g) Fluorinated Gases Assessment.--No later than March
31, 2014, the Administrator shall complete an assessment of
the regulation of non-HFC fluorinated gases under this title
to determine whether the most appropriate point of regulation
is at the gas manufacturer or importer level, or at the
source of emissions downstream. If the Administrator
determines, based on consideration of environmental
effectiveness, cost effectiveness, administrative
feasibility, extent of coverage of emissions, competitiveness
and other relevant considerations consistent with the
purposes of this title, that emissions of non-HFC fluorinated
gases can best be regulated by designating downstream
emission sources as covered entities with compliance
obligations under section 722, the Administrator shall, after
notice and comment rulemaking, change the definition of
covered entity and the compliance obligations under section
722 with respect to non-HFC fluorinated gases accordingly,
consistent with the purposes of this title, and establish
such other requirements as are necessary to ensure compliance
for such entities with the requirements of this title.
``(h) Regulations.--Not later than 24 months after the date
of enactment of this title, the Administrator shall
promulgate regulations to carry out the provisions of this
title.

``SEC. 722. PROHIBITION OF EXCESS EMISSIONS.

``(a) Prohibition.--Except as provided in subsection (c),
effective January 1, 2012, each covered entity is prohibited
from emitting greenhouse gases and having attributable
greenhouse gas emissions, in combination, in excess of its
allowable emissions level. A covered entity's allowable
emissions level for each calendar year is the number of
emission allowances (or offset credits or other allowances as
provided in subsection (d)) it holds as of 12:01 a.m. on
April 1 (or a later date established by the Administrator
under subsection (j)) of the following calendar year.
``(b) Methods of Demonstrating Compliance.--Except as
otherwise provided in this section, the owner or operator of
a covered entity shall not be considered to be in compliance
with the prohibition in subsection (a) unless, as of 12:01
a.m. on April 1 (or a later date established by the
Administrator under subsection (j)) of each calendar year
starting in 2013, the owner or operator holds a quantity of
emission allowances (or offset credits or other allowances as
provided in subsection (d)) at least as great as the quantity
calculated as follows:
``(1) Electricity sources.--For a covered entity described
in section 700(13)(A), 1 emission allowance for each ton of
carbon dioxide equivalent of greenhouse gas that such covered
entity emitted in the previous calendar year, excluding
emissions resulting from the combustion of--
``(A) petroleum-based or coal-based liquid fuel;
``(B) natural gas liquid;
``(C) renewable biomass or gas derived from renewable
biomass; or
``(D) petroleum coke or gas derived from petroleum coke.
``(2) Fuel producers and importers.--For a covered entity
described in section 700(13)(B), 1 emission allowance for
each ton of carbon dioxide equivalent of greenhouse gas that
would be emitted from the combustion of any petroleum-based
or coal-based liquid fuel, petroleum coke, or natural gas
liquid, produced or imported by such covered entity during
the previous calendar year for sale or distribution in
interstate commerce, assuming no capture and sequestration of
any greenhouse gas emissions.
``(3) Industrial gas producers and importers.--For a
covered entity described in section 700(13)(C), 1 emission
allowance for each ton of carbon dioxide equivalent of fossil
fuel-based carbon dioxide, nitrous oxide, or any other
fluorinated gas that is a greenhouse gas (except for nitrogen
trifluoride), or any combination thereof, produced or
imported by such covered entity during the previous calendar
year for sale or distribution in interstate commerce.
``(4) Nitrogen trifluoride sources.--For a covered entity
described in section 700(13)(D), 1 emission allowance for
each ton of carbon dioxide equivalent of nitrogen trifluoride
that such covered entity emitted in the previous calendar
year.
``(5) Geological sequestration sites.--For a covered entity
described in section 700(13)(E), 1 emission allowance for
each ton of carbon dioxide equivalent of greenhouse gas that
such covered entity emitted in the previous calendar year.
``(6) Industrial stationary sources.--For a covered entity
described in section 700(13)(F), (G), or (H), 1 emission
allowance for each ton of carbon dioxide equivalent of
greenhouse gas that such covered entity emitted in the
previous calendar year, excluding emissions resulting from--
``(A) the combustion of petroleum-based or coal-based
liquid fuel;
``(B) the combustion of natural gas liquid;
``(C) the combustion of renewable biomass or gas derived
from renewable biomass;
``(D) the combustion of petroleum coke or gas derived from
petroleum coke; or
``(E) the use of any fluorinated gas that is a greenhouse
gas purchased for use at that covered entity, except for
nitrogen trifluoride.
``(7) Industrial fossil fuel-fired combustion devices.--For
a covered entity described in section 700(13)(I), 1 emission
allowance for each ton of carbon dioxide equivalent of
greenhouse gas that the devices emitted in the previous
calendar year, excluding emissions resulting from the
combustion of--
``(A) petroleum-based or coal-based liquid fuel;
``(B) natural gas liquid;
``(C) renewable biomass or gas derived from renewable
biomass; or
``(D) petroleum coke or gas derived from petroleum coke.
``(8) Natural gas local distribution companies.--For a
covered entity described in section 700(13)(J), 1 emission
allowance for each ton of carbon dioxide equivalent of
greenhouse gas that would be emitted from the combustion of
the natural gas, and any other gas meeting the specifications
for commingling with natural gas for purposes of delivery,
that such entity delivered during the previous calendar year
to customers that are not covered entities, assuming no
capture and sequestration of that greenhouse gas.
``(9) Algae-based fuels.--Where carbon dioxide (or another
greenhouse gas) generated by a covered entity is used as an
input in the production of algae-based fuels, the
Administrator shall ensure that emission allowances are
required to be held either for the carbon dioxide generated
by a covered entity that is used to grow the algae or for the
portion of the carbon dioxide emitted from combustion of the
fuel produced from such algae that is attributable to carbon
dioxide generated by a covered entity, but not for both.
``(10) Fugitive emissions.--The greenhouse gas emissions to
which paragraphs (1), (4), (6), and (7) apply shall not
include fugitive emissions of greenhouse gas, except to the
extent the Administrator determines that data on the carbon
dioxide equivalent value of greenhouse gas in the fugitive
emissions can be provided with sufficient precision,
reliability, accessibility, and timeliness to ensure the
integrity of emission allowances, the allowance tracking
system, and the cap on emissions.
``(11) Export exemption.--This section shall not apply to
any petroleum-based or coal-based liquid fuel, petroleum
coke, natural gas liquid, fossil fuel-based carbon dioxide,
nitrous oxide, or fluorinated gas that is exported for sale
or use.
``(12) Natural gas liquids.--For natural gas liquids, the
covered entity subject to the requirement stated in paragraph
(2) shall be the owner of the natural gas liquids at the
point the natural gas liquids are separated into merchantable
products.
``(13) Application of multiple paragraphs.--For a covered
entity to which more than 1 of paragraphs (1) through (8)
apply, all applicable paragraphs shall apply, except that not
more than 1 emission allowance shall be required for the same
emission.
``(14) Application to fractions of tons.--In applying
paragraphs (1) through (8), any amount less than 1 ton of
carbon dioxide equivalent of emissions or attributable
greenhouse gas emissions shall be treated as 1 ton of such
carbon dioxide equivalent.
``(c) Phase-in of Prohibition.--
``(1) Industrial stationary sources.--The prohibition under
subsection (a) shall first apply to a covered entity
described in section 700(13)(D), (F), (G), (H), or (I), with
respect to emissions occurring during calendar year 2014.
``(2) Natural gas local distribution companies.--The
prohibition under subsection (a) shall first apply to a
covered entity described in section 700(13)(J) with respect
to deliveries occurring during calendar year 2016.
``(d) Additional Methods.--In addition to using the method
of compliance described in subsection (b), a covered entity
may do the following:
``(1) Offset credits.--

[[Page H7549]]

``(A) In general.--Covered entities collectively may, in
accordance with this paragraph, use offset credits to
demonstrate compliance for up to a maximum of 2 billion tons
of greenhouse gas emissions annually. The ability to
demonstrate compliance with offset credits shall be divided
pro rata among covered entities by allowing each covered
entity to satisfy a percentage of the number of allowances
required to be held under subsection (b) to demonstrate
compliance by holding 1 domestic offset credit or 1.25
international offset credits in lieu of an emission
allowance, except as provided in subparagraph (D).
``(B) Applicable percentage.--The percentage referred to in
subparagraph (A) for a given calendar year shall be
determined by dividing 2 billion by the sum of 2 billion plus
the number of emission allowances established under section
721(a) for the previous year, and multiplying that number by
100. Not more than one half of the applicable percentage
under this paragraph may be used by holding domestic offset
credits, and not more than one half of the applicable
percentage under this paragraph may be used by holding
international offset credits, except as provided in
subparagraph (C).
``(C) Modified percentages.--If the Administrator
determines that domestic offset credits available for use in
demonstrating compliance in any calendar year at domestic
offset prices generally equal to or less than emission
allowance prices, are likely to offset less than 0.9 billion
tons of greenhouse gas emissions (measured in tons of carbon
dioxide equivalents), for purposes of compliance
demonstration in that year the Administrator shall--
``(i) increase the percentage of emissions that can be
offset through the use of international offset credits to
reflect the amount that 1.0 billion exceeds the number of
domestic offset credits the Administrator determines is
available, at prices generally equal to or less than emission
allowance prices, for that year, up to a maximum of 0.5
billion tons of greenhouse gas emissions; and
``(ii) decrease the percentage of emissions that can be
offset through the use of domestic offset credits by the same
amount.
``(D) International offset credits.--Notwithstanding
subparagraph (A), to demonstrate compliance prior to calendar
year 2018, a covered entity may use 1 international offset
credit in lieu of an emission allowance up to the amount
permitted under this paragraph.
``(E) President's recommendation.--The President may make a
recommendation to Congress as to whether the number 2 billion
specified in subparagraphs (A) and (B) should be increased or
decreased.
``(2) Term offsett credits.--
``(A) In general.--Covered entities may, in accordance with
this paragraph, use non-expired term offset credits instead
of domestic offset credits for purposes of temporarily
demonstrating compliance with this section.
``(B) Amount.--The combined quantity of term offset credits
and domestic offset credits used by a covered entity to
demonstrate compliance for its emissions or attributable
greenhouse gas emissions in any given year shall not exceed
the quantity of domestic offset credits that a covered entity
is entitled to use for that year to demonstrate compliance in
accordance with paragraph (1).
``(C) Expiration.--A term offset credit shall expire in the
year after its term ends. The term of a term offset credit
shall be calculated by adding to the year of issuance the
number of years equal to the length of the crediting period
for the practice or project for which the term offset credit
was issued, but in no case shall be later than the date 5
years from the date of issuance.
``(D) Demonstrating compliance upon expiration of term
offset credit.--With respect to the emissions for which a
covered entity is using term offset credits to demonstrate
compliance temporarily with this section, the owner or
operator of a covered entity shall not be considered to be in
compliance with the prohibition in subsection (a) unless, as
of 12:01 a.m. on April 1 (or a later date established by the
Administrator under subsection (j)) of the calendar year in
which a term offset credit expires, the owner or operator
holds--
``(i) for purposes of finally demonstrating compliance, an
allowance or a domestic offset credit; or
``(ii) for purposes of temporarily demonstrating
compliance, a non-expired term offset credit.

Domestic offset credits used for purposes of finally
demonstrating compliance under this subparagraph shall not be
subject to the percentage limitations in subparagraph (B).
``(E) Financial assurance.--A covered entity may not use a
term offset credit to demonstrate compliance temporarily
unless it simultaneously provides to the Administrator
financial assurance that, at the end of the term offset
credit's crediting term, the covered entity will have
sufficient resources to obtain the quantity of allowances or
credits necessary to demonstrate final compliance. The
Administrator shall issue regulations establishing
requirements for such financial assurance, which shall take
into account the increased risk associated with longer
crediting terms. These regulations shall take into account
the total number of tons of carbon dioxide equivalent of
greenhouse gas emissions for which a covered entity is
demonstrating compliance temporarily, and may set a limit on
this amount. In the event that a covered entity that used
term offset credits to demonstrate compliance temporarily
fails to meet the requirements of subparagraph (D) at the end
of the term offset credits' crediting term, if the financial
assurance mechanism fails to provide to the Administrator the
number of allowances or offset credits for which the
crediting term has expired, then the Administrator shall
retire that number of allowances with the vintage year 2
years after the year in which the term offset credit expires
in the same amount. Allowances so retired shall not be
counted as emission allowances established for that calendar
year under section 721(a).
``(3) International emission allowances.--To demonstrate
compliance, a covered entity may hold an international
emission allowance in lieu of an emission allowance, except
as modified under section 728(d).
``(4) Compensatory allowances.--To demonstrate compliance,
a covered entity may hold a compensatory allowance obtained
under section 721(f) in lieu of an emission allowance.
``(e) Retirement of Allowances and Credits.--As soon as
practicable after a deadline established for covered entities
to demonstrate compliance with this title, the Administrator
shall retire the quantity of allowances or credits required
to be held under this title.
``(f) Alternative Metrics.--For categories of covered
entities described in subparagraph (B), (C), (D), (G), (H),
or (I) of section 700(13), the Administrator may, by rule,
establish an applicability threshold for inclusion under
those subparagraphs using an alternative metric and level,
provided that such metric and level are easier to administer
and cover the same size and type of sources as the threshold
defined in such subparagraphs.
``(g) Threshold Review.--For each category of covered
entities described in subparagraph (B), (C), (D), (G), (H),
or (I) of section 700(13), the Administrator shall, in 2020
and once every 8 years thereafter, review the carbon dioxide
equivalent emission threshold that is used to define covered
entities in such category. After consideration of--
``(1) emissions from covered entities in such category, and
from other entities of the same type that emit less than the
threshold amount for the category (including emission sources
that commence operation after the date of enactment of this
title that are not covered entities); and
``(2) whether greater greenhouse gas emission reductions
can be cost-effectively achieved by lowering the applicable
threshold,

the Administrator may by rule lower such threshold to not
less than 10,000 tons of carbon dioxide equivalent emissions.
In determining the cost effectiveness of potential reductions
from lowering the threshold for covered entities, the
Administrator shall consider alternative regulatory
greenhouse gas programs, including setting standards under
other titles of this Act.
``(h) Designated Representatives.--The regulations
promulgated under section 721(h) shall require that each
covered entity, and each entity holding allowances or offset
credits or receiving allowances or offset credits from the
Administrator under this title, submit to the Administrator a
certificate of representation designating a designated
representative.
``(i) Education and Outreach.--
``(1) In general.--The Administrator shall establish and
carry out a program of education and outreach to assist
covered entities, especially entities having little
experience with environmental regulatory requirements similar
or comparable to those under this title, in preparing to meet
the compliance obligations of this title. Such program shall
include education with respect to using markets to
effectively achieve such compliance.
``(2) Failure to receive information.--A failure to receive
information or assistance under this subsection may not be
used as a defense against an allegation of any violation of
this title.
``(j) Adjustment of Deadline.--The Administrator may, by
rule, establish a deadline for demonstrating compliance, for
a calendar year, later than the date provided in subsection
(a), as necessary to ensure the availability of emissions
data, but in no event shall the deadline be later than June
1.
``(k) Notice Requirement for Covered Entities Receiving
Natural Gas From Natural Gas Local Distribution Companies.--
The owner or operator of a covered entity that takes delivery
of natural gas from a natural gas local distribution company
shall, not later than September 1 of each calendar year,
notify such natural gas local distribution company in writing
that such entity will qualify as a covered entity under this
title for that calendar year.
``(l) Compliance Obligation.--For purposes of this title,
the year of a compliance obligation is the year in which
compliance is determined, not the year in which the
greenhouse gas emissions occur or the covered entity has
attributable greenhouse gas emissions.

``SEC. 723. PENALTY FOR NONCOMPLIANCE.

``(a) Enforcement.--A violation of any prohibition of,
requirement of, or regulation promulgated pursuant to this
title shall be a violation of this Act. It shall be a
violation of this Act for a covered entity to emit greenhouse
gases and have attributable greenhouse gas emissions, in
combination, in excess of its allowable emissions level as
provided in section 722(a). Each ton of carbon dioxide
equivalent for which a covered entity fails to demonstrate
compliance under section 722 shall be a separate violation.
In the

[[Page H7550]]

event that a covered entity fails to demonstrates compliance
at the expiration of a term offset credit's crediting term as
required by section 722(d)(2)(D), the year of the violation
shall be the year in which the term offset credit expires.
``(b) Excess Emissions Penalty.--
``(1) In general.--The owner or operator of any covered
entity that fails for any year to comply, on the deadline
described in section 722(a), (d)(2) or (j), shall be liable
for payment to the Administrator of an excess emissions
penalty in the amount described in paragraph (2).
``(2) Amount.--The amount of an excess emissions penalty
required to be paid under paragraph (1) shall be equal to the
product obtained by multiplying--
``(A) the tons of carbon dioxide equivalent of greenhouse
gas emissions or attributable greenhouse gas emissions for
which the owner or operator of a covered entity failed to
demonstrate compliance under section 722 on the deadline; by
``(B) twice the auction clearing price for the earliest
vintage year emission allowances in the last auction carried
out pursuant to section 791 before such deadline.
``(3) Timing.--An excess emissions penalty required under
this subsection shall be immediately due and payable to the
Administrator, without demand, in accordance with regulations
promulgated by the Administrator, which shall be issued not
later than 2 years after the date of enactment of this title.
``(4) No effect on liability.--An excess emissions penalty
due and payable by the owners or operators of a covered
entity under this subsection shall not diminish the liability
of the owners or operators for any fine, penalty, or
assessment against the owners or operators for the same
violation under any other provision of this Act or any other
law.
``(c) Excess Emissions Allowances.--The owner or operator
of a covered entity that fails for any year to comply on the
deadline described in section 722(a), (d)(2) or (j) shall be
liable to offset the covered entity's excess combination of
greenhouse gases emitted and attributable greenhouse gas
emissions by an equal quantity of emission allowances during
the following calendar year, or such longer period as the
Administrator may prescribe. During the year in which the
covered entity failed to comply, or any year thereafter, the
Administrator may deduct the emission allowances required
under this subsection to offset the covered entity's excess
greenhouse gas emissions or attributable greenhouse gas
emissions.

``SEC. 724. TRADING.

``(a) Permitted Transactions.--Except as otherwise provided
in this title, the lawful holder of an emission allowance,
compensatory allowance, or offset credit may, without
restriction, sell, exchange, transfer, hold for compliance in
accordance with section 722, or request that the
Administrator retire the emission allowance, compensatory
allowance, or offset credit.
``(b) No Restriction on Transactions.--The privilege of
purchasing, holding, selling, exchanging, transferring, and
requesting retirement of emission allowances, compensatory
allowances, or offset credits shall not be restricted to the
owners and operators of covered entities, except as otherwise
provided in this title.
``(c) Effectiveness of Allowance Transfers.--No transfer of
an allowance, offset credit or term offset credit shall be
effective for purposes of this title until a certification of
the transfer, signed by the designated representative of the
transferor, is received and recorded by the Administrator in
accordance with regulations promulgated under section 721(h).
``(d) Allowance Tracking System.--The regulations
promulgated under section 721(h) shall include a system for
issuing, recording, holding, and tracking allowances, offset
credits, and term offset credits that shall specify all
necessary procedures and requirements for an orderly and
competitive functioning of the allowance and offset credit
markets. Such regulations shall provide for appropriate
publication of the information in the system on the Internet.

``SEC. 725. BANKING AND BORROWING.

``(a) Banking.--An emission allowance may be used to comply
with section 722 or section 723 for emissions in--
``(1) the vintage year for the allowance; or
``(2) any calendar year subsequent to the vintage year for
the allowance.
``(b) Expiration.--
``(1) Regulations.--The Administrator may establish by
regulation criteria and procedures for determining whether,
and for implementing a determination that, the expiration of
an allowance offset credit, or term offset credit,
established or issued under the American Clean Energy and
Security Act of 2009 or the amendments made thereby or
expiration of the ability to use an international emission
allowance to comply with section 722, is necessary to ensure
the authenticity and integrity of allowances, offset credits,
or term offset credits or the allowance tracking system.
``(2) General rule.--Allowance, offset credit, or term
offset credit, established or issued under the American Clean
Energy and Security Act of 2009 or the amendments made
thereby, shall not expire unless--
``(A) it is retired by the Administrator pursuant to this
title; or
``(B) it is determined to expire or to have expired by a
specific date by the Administrator in accordance with
regulations promulgated under paragraph (1).
``(3) International emission allowances.--The ability to
use an international emission allowance to comply with
section 722 shall not expire unless--
``(A) the allowance is retired by the Administrator
pursuant to this title; or
``(B) the ability to use such allowance to meet such
compliance obligation requirements is determined to expire or
to have expired by a specific date by the Administrator in
accordance with regulations promulgated under paragraph (1).
``(c) Borrowing Future Vintage Year Allowances.--
``(1) Borrowing without interest.--In addition to the uses
described in subsection (a), an emission allowance may be
used to demonstrate compliance under section 722 or comply
with section 723 for emissions, production, importation,
manufacture, or deliveries in the calendar year immediately
preceding the vintage year for the allowance.
``(2) Borrowing with interest.--
``(A) In general.--A covered entity may demonstrate
compliance under section 722 in a specific calendar year for
up to 15 percent of its emissions by holding emission
allowances with a vintage year 1 to 5 years later than that
calendar year.
``(B) Limitations.--An emission allowance borrowed pursuant
to this paragraph shall be an emission allowance that is
established by the Administrator for a specific future
calendar year under section 721(a) and that is held by the
borrower.
``(C) Prepayment of interest.--For each emission allowance
that an owner or operator of a covered entity borrows
pursuant to this paragraph, such owner or operator shall, at
the time it borrows the allowance, hold for retirement by the
Administrator, and the Administrator shall retire, a quantity
of emission allowances that is equal to the product obtained
by multiplying--
``(i) 0.08; by
``(ii) the number of years between the calendar year in
which the allowance is being used to satisfy a compliance
obligation and the vintage year of the allowance.

``SEC. 726. STRATEGIC RESERVE.

``(a) Strategic Reserve Auctions.--
``(1) In general.--Once each quarter of each calendar year
for which allowances are established under section 721(a),
the Administrator shall auction strategic reserve allowances.
``(2) Restriction to covered entities.--In each auction
conducted under paragraph (1), only covered entities that the
Administrator expects will be required to comply with section
722 in the following calendar year shall be eligible to make
purchases.
``(b) Pool of Emission Allowances for Strategic Reserve
Auctions.--
``(1) Filling the strategic reserve initially.--
``(A) In general.--The Administrator shall, not later than
2 years after the date of enactment of this title, establish
a strategic reserve account, and shall place in that account
an amount of emission allowances established under section
721(a) for each calendar year from 2012 through 2050 in the
amounts specified in subparagraph (B) of this paragraph.
``(B) Amount.--The amount referred to in subparagraph (A)
shall be--
``(i) for each of calendar years 2012 through 2019, 1
percent of the quantity of emission allowances established
for that year pursuant to section 721(e)(1);
``(ii) for each of calendar years 2020 through 2029, 2
percent of the quantity of emission allowances established
for that year pursuant to section 721(e)(1); and
``(iii) for each of calendar years 2030 through 2050, 3
percent of the quantity of emission allowances established
for that year pursuant to section 721(e)(1).
``(C) Effect on other provisions.--Any provision in this
title (except for subparagraph (B) of this paragraph) that
refers to a quantity or percentage of the emission allowances
established for a calendar year under section 721(a) shall be
considered to refer to the amount of emission allowances as
determined pursuant to section 721(e), less any emission
allowances established for that year that are placed in the
strategic reserve account under this paragraph.
``(2) Supplementing the strategic reserve.--The
Administrator shall also--
``(A) at the end of each calendar year, transfer to the
strategic reserve account each emission allowance that was
offered for sale but not sold at any auction conducted under
section 791; and
``(B) deposit emission allowances established under
subsection (g) from auction proceeds into the strategic
reserve, to the extent necessary to maintain the reserve at
its original size.
``(c) Minimum Strategic Reserve Auction Price.--
``(1) In general.--At each strategic reserve auction, the
Administrator shall offer emission allowances for sale
beginning at a minimum price per emission allowance, which
shall be known as the `minimum strategic reserve auction
price'.
``(2) Initial minimum strategic reserve auction prices.--
The minimum strategic reserve auction price shall be $28 (in
constant 2009 dollars) for the strategic reserve auctions
held in 2012. For the strategic reserve auctions held in 2013
and 2014, the minimum strategic reserve auction price shall
be the strategic reserve auction price for the previous year
increased by 5 percent plus the

[[Page H7551]]

rate of inflation (as measured by the Consumer Price Index
for All Urban Consumers).
``(3) Minimum strategic reserve auction price in subsequent
years.--For each strategic reserve auction held in 2015 and
each year thereafter, the minimum strategic reserve auction
price shall be 60 percent above a rolling 36-month average of
the daily closing price for that year's emission allowance
vintage as reported on registered carbon trading facilities,
calculated using constant dollars.
``(d) Quantity of Emission Allowances Released From the
Strategic Reserve.--
``(1) Initial limits.--For each of calendar years 2012
through 2016, the annual limit on the number of emission
allowances from the strategic reserve account that may be
auctioned is an amount equal to 5 percent of the emission
allowances established for that calendar year under section
721(a). This limit does not apply to international offset
credits sold on consignment pursuant to subsection (h).
``(2) Limits in subsequent years.--For calendar year 2017
and each year thereafter, the annual limit on the number of
emission allowances from the strategic reserve account that
may be auctioned is an amount equal to 10 percent of the
emission allowances established for that calendar year under
section 721(a). This limit does not apply to international
offset credits sold on consignment pursuant to subsection
(h).
``(3) Allocation of limitation.--One-fourth of each year's
annual strategic reserve auction limit under this subsection
shall be made available for auction in each quarter. Any
allowances from the strategic reserve account that are made
available for sale in a quarterly auction and not sold shall
be rolled over and added to the quantity available for sale
in the following quarter, except that allowances not sold at
auction in the fourth quarter of a year shall not be rolled
over to the following calendar year's auctions, but shall be
returned to the strategic reserve account.
``(e) Purchase Limit.--
``(1) In general.--Except as provided in paragraph (2) or
(3), the annual number of emission allowances that a covered
entity may purchase at the strategic reserve auctions in each
calendar year shall not exceed 20 percent of the covered
entity's combined greenhouse gas emissions and attributable
greenhouse gas emissions during the most recent year for
which allowances or offset credits were retired under section
722.
``(2) 2012 limit.--For calendar year 2012, the maximum
aggregate number of emission allowances that a covered entity
may purchase from that year's strategic reserve auctions
shall be 20 percent of the covered entity's combined
greenhouse gas emissions and attributable greenhouse gas
emissions that the covered entity reported to the registry
established under section 713 for 2011 and that would be
subject to section 722(a) if occurring in later calendar
years.
``(3) New entrants.--The Administrator shall, by
regulation, establish a separate purchase limit applicable to
entities that expect to become a covered entity in the year
of the auction, permitting them to purchase emission
allowances at the strategic reserve auctions in their first
calendar year of operation in an amount of at least 20
percent of their expected combined greenhouse gas emissions
and attributable greenhouse gas emissions for that year.
``(f) Delegation or Contract.--Pursuant to regulations
under this section, the Administrator may, by delegation or
contract, provide for the conduct of strategic reserve
auctions under the Administrator's supervision by other
departments or agencies of the Federal Government or by
nongovernmental agencies, groups, or organizations.
``(g) Use of Auction Proceeds.--
``(1) Deposit in strategic reserve fund.--The proceeds from
strategic reserve auctions shall be placed in the Strategic
Reserve Fund established under section 793(1), and shall be
available without further appropriation or fiscal year
limitation for the purposes described in this subsection.
``(2) International offset credits for reduced
deforestation.--The Administrator shall use the proceeds from
each strategic reserve auction to purchase international
offset credits issued for reduced deforestation activities
pursuant to section 743(e). The Administrator shall retire
those international offset credits and establish a number of
emission allowances equal to 80 percent of the number of
international offset credits so retired. Emission allowances
established under this paragraph shall be in addition to
those established under section 721(a).
``(3) Emission allowances.--The Administrator shall deposit
emission allowances established under paragraph (2) in the
strategic reserve, except that, with respect to any such
emission allowances in excess of the amount necessary to fill
the strategic reserve to its original size, the Administrator
shall--
``(A) except as provided in subparagraph (B), assign a
vintage year to the emission allowance, which shall be no
earlier than the year in which the allowance is established
under paragraph (2), and shall treat such allowances as ones
that are not designated for distribution or auction for
purposes of section 782(q) and (r); and
``(B) to the extent any such allowances cannot be assigned
a vintage year because of the limitation in paragraph (4),
retire the allowances.
``(4) Limitation.--In no case may the Administrator assign
under paragraph (3)(A) more emission allowances to a vintage
year than the number of emission allowances from that vintage
year that were placed in the strategic reserve account under
subsection (b)(1).
``(h) Availability of International Offset Credits for
Auction.--
``(1) In general.--The regulations promulgated under
section 721(h) shall allow any entity holding international
offset credits from reduced deforestation issued under
section 743(e) to request that the Administrator include such
offset credits in an upcoming strategic reserve auction. The
regulations shall provide that--
``(A) such international offset credits will be used to
fill bid orders only after the supply of strategic reserve
allowances available for sale at that auction has been
depleted;
``(B) international offset credits may be sold at a
strategic reserve auction under this subsection only if the
Administrator determines that it is highly likely that
covered entities will, to cover emissions occurring in the
year the auction is held, use offset credits to demonstrate
compliance under section 722 for emissions equal to or
greater than 80 percent of 2 billion tons of carbon dioxide
equivalent;
``(C) upon sale of such international offset credits, the
Administrator shall retire those international offset
credits, and establish and provide to the purchasers a number
of emission allowances equal to 80 percent of the number of
international offset credits so retired, which allowances
shall be in addition to those established under section
721(a); and
``(D) for international offset credits sold pursuant to
this subsection, the proceeds for the entity that offered the
international offset credits for sale shall be the lesser
of--
``(i) the average daily closing price for international
offset credits sold on registered exchanges (or if such price
is unavailable, the average price as determined by the
Administrator) during the six months prior to the strategic
reserve auction at which they were auctioned, with the
remaining funds collected upon the sale of the international
offset credits deposited in the Treasury; and
``(ii) the amount received for the international offset
credits at the auction.
``(2) Proceeds.--For international offset credits sold
pursuant to this subsection, notwithstanding section 3302 of
title 31, United States Code, or any other provision of law,
within 90 days of receipt, the United States shall transfer
the proceeds from the auction, as defined in paragraph
(1)(D), to the entity that offered the international offset
credits for sale. No funds transferred from a purchaser to a
seller of international offset credits under this paragraph
shall be held by any officer or employee of the United States
or treated for any purpose as public monies.
``(3) Pricing.--When the Administrator acts under this
subsection as the agent of an entity in possession of
international offset credits, the Administrator is not
obligated to obtain the highest price possible for the
international offset credits, and instead shall auction such
international offset credits in the same manner and pursuant
to the same rules (except as modified in paragraph (1)) as
set forth for auctioning strategic reserve allowances.
Entities requesting that such international offset credits be
offered for sale at a strategic reserve auction may not set a
minimum reserve price for their international offset credits
that is different than the minimum strategic reserve auction
price set pursuant to subsection (c).
``(i) Initial Regulations.--Not later than 24 months after
the date of enactment of this title, the Administrator shall
promulgate regulations, in consultation with other
appropriate agencies, governing the auction of allowances
under this section. Such regulations shall include the
following requirements:
``(1) Frequency; first auction.--Auctions shall be held
four times per year at regular intervals, with the first
auction to be held no later than March 31, 2012.
``(2) Auction format.--Auctions shall follow a single-
round, sealed-bid, uniform price format.
``(3) Participation; financial assurance.--Auctions shall
be open to any covered entity eligible to purchase emission
allowances at the auction under subsection (a)(2), except
that the Administrator may establish financial assurance
requirements to ensure that auction participants can and will
perform on their bids.
``(4) Disclosure of beneficial ownership.--Each bidder in
an auction shall be required to disclose the person or entity
sponsoring or benefitting from the bidder's participation in
the auction if such person or entity is, in whole or in part,
other than the bidder.
``(5) Purchase limits.--No person may, directly or in
concert with another participant, purchase more than 20
percent of the allowances offered for sale at any quarterly
auction.
``(6) Publication of information.--After the auction, the
Administrator shall, in a timely fashion, publish the
identities of winning bidders, the quantity of allowances
obtained by each winning bidder, and the auction clearing
price.
``(7) Other requirements.--The Administrator may include in
the regulations such other requirements or provisions as the
Administrator, in consultation with other

[[Page H7552]]

agencies as appropriate, considers appropriate to promote
effective, efficient, transparent, and fair administration of
auctions under this section.
``(j) Revision of Regulations.--The Administrator may, at
any time, in consultation with other agencies as appropriate,
revise the initial regulations promulgated under subsection
(i). Such revised regulations need not meet the requirements
identified in subsection (i) by promulgating new regulations
if the Administrator determines that an alternative auction
design would be more effective, taking into account factors
including costs of administration, transparency, fairness,
and risks of collusion or manipulation. In determining
whether and how to revise the initial regulations under this
subsection, the Administrator shall not consider maximization
of revenues to the Federal Government.

``SEC. 727. PERMITS.

``(a) Permit Program.--For stationary sources subject to
title V of this Act that are covered entities, the provisions
of this title shall be implemented by permits issued to such
covered entities (and enforced) in accordance with the
provisions of title V, as modified by this title. Any such
permit issued by the Administrator, or by a State or Indian
tribe with an approved permit program, shall require the
owner or operator of a covered entity to hold allowances or
offset credits at least equal to the total annual amount of
carbon dioxide equivalents for its combined emissions and
attributable greenhouse gas emissions to which section 722
applies. No such permit shall be issued that is inconsistent
with the requirements of this title, and title V as
applicable. Nothing in this section regarding compliance
plans or in title V shall be construed as affecting
allowances or offset credits. Submission of a statement by
the owner or operator, or the designated representative of
the owners and operators, of a covered entity that the owners
and operators will hold allowances or offset credits for the
entity's combined emissions and attributable greenhouse gas
emissions to which section 722 applies shall be deemed to
meet the proposed and approved planning requirements of title
V. Recordation by the Administrator of transfers of
allowances and offset credits shall amend automatically all
applicable proposed or approved permit applications,
compliance plans, and permits.
``(b) Multiple Owners.--No permit shall be issued under
this section and no allowances or offset credits shall be
disbursed under this title to a covered entity or any other
person until the designated representative of the owners or
operators has filed a certificate of representation with
regard to matters under this title, including the holding and
distribution of emission allowances and the proceeds of
transactions involving emission allowances. Where there are
multiple holders of a legal or equitable title to, or a
leasehold interest in, such a covered entity or other entity
or where a utility or industrial customer purchases power
under a long-term power purchase contract from an independent
power production facility that is a covered entity, the
certificate shall state--
``(1) that emission allowances and the proceeds of
transactions involving emission allowances will be deemed to
be held or distributed in proportion to each holder's legal,
equitable, leasehold, or contractual reservation or
entitlement; or
``(2) if such multiple holders have expressly provided for
a different distribution of emission allowances by contract,
that emission allowances and the proceeds of transactions
involving emission allowances will be deemed to be held or
distributed in accordance with the contract.

A passive lessor, or a person who has an equitable interest
through such lessor, whose rental payments are not based,
either directly or indirectly, upon the revenues or income
from the covered entity or other entity shall not be deemed
to be a holder of a legal, equitable, leasehold, or
contractual interest for the purpose of holding or
distributing emission allowances as provided in this
subsection, during either the term of such leasehold or
thereafter, unless expressly provided for in the leasehold
agreement. Except as otherwise provided in this subsection,
where all legal or equitable title to or interest in a
covered entity, or other entity, is held by a single person,
the certificate shall state that all emission allowances
received by the entity are deemed to be held for that person.
``(c) Prohibition.--It shall be unlawful for any person to
operate any stationary source subject to the requirements of
this section except in compliance with the terms and
requirements of a permit issued by the Administrator or a
State or Indian tribe with an approved permit program in
accordance with this section. For purposes of this
subsection, compliance, as provided in section 504(f), with a
permit issued under title V which complies with this title
for covered entities shall be deemed compliance with this
subsection as well as section 502(a).
``(d) Reliability.--Nothing in this section or title V
shall be construed as requiring termination of operations of
a stationary source that is a covered entity for failure to
have an approved permit, or compliance plan, that is
consistent with the requirements in the second and fifth
sentences of subsection (a) concerning the holding of
allowances or offset credits, except that any such covered
entity may be subject to the applicable enforcement provision
of section 113.
``(e) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator shall
promulgate regulations to implement this section. To provide
for permits required under this section, each State in which
one or more stationary sources that are covered entities are
located shall submit, in accordance with this section and
title V, revised permit programs for approval.

``SEC. 728. INTERNATIONAL EMISSION ALLOWANCES.

``(a) Qualifying Programs.--The Administrator, in
consultation with the Secretary of State, may by rule
designate an international climate change program as a
qualifying international program if--
``(1) the program is run by a national or supranational
foreign government, and imposes a mandatory absolute tonnage
limit on greenhouse gas emissions from 1 or more foreign
countries, or from 1 or more economic sectors in such a
country or countries; and
``(2) the program is at least as stringent as the program
established by this title, including provisions to ensure at
least comparable monitoring, compliance, enforcement, quality
of offsets, and restrictions on the use of offsets.
``(b) Disqualified Allowances.--An international emission
allowance may not be held under section 722(d)(2) if it is in
the nature of an offset instrument or allowance awarded based
on the achievement of greenhouse gas emission reductions or
avoidance, or greenhouse gas sequestration, that are not
subject to the mandatory absolute tonnage limits referred to
in subsection (a)(1).
``(c) Retirement.--
``(1) Entity certification.--The owner or operator of an
entity that holds an international emission allowance under
section 722(d)(2) shall certify to the Administrator that
such international emission allowance has not previously been
used to comply with any foreign, international, or domestic
greenhouse gas regulatory program.
``(2) Retirement.--
``(A) Foreign and international regulatory entities.--The
Administrator, in consultation with the Secretary of State,
shall seek, by whatever means appropriate, including
agreements and technical cooperation on allowance tracking,
to ensure that any relevant foreign, international, and
domestic regulatory entities--
``(i) are notified of the use, for purposes of compliance
with this title, of any international emission allowance; and
``(ii) provide for the disqualification of such
international emission allowance for any subsequent use under
the relevant foreign, international, or domestic greenhouse
gas regulatory program, regardless of whether such use is a
sale, exchange, or submission to satisfy a compliance
obligation.
``(B) Disqualification from further use.--The Administrator
shall ensure that, once an international emission allowance
has been disqualified or otherwise used for purposes of
compliance with this title, such allowance shall be
disqualified from any further use under this title.
``(d) Use Limitations.--The Administrator may, by rule,
apply a limit to the percentage of the combined greenhouse
gas emissions and attributable greenhouse gas emissions of a
covered entity with respect to which compliance may be
demonstrated by holding international emission allowances
under section 722(d)(2), consistent with the purposes of the
Safe Climate Act.

``PART D--OFFSETS

``SEC. 731. OFFSETS INTEGRITY ADVISORY BOARD.

``(a) Establishment.--Not later than 30 days after the date
of enactment of this title, the Administrator shall establish
an independent Offsets Integrity Advisory Board. The Advisory
Board shall make recommendations to the Administrator for use
in promulgating and revising regulations under this part and
part E, and for ensuring the overall environmental integrity
of the programs established pursuant to those regulations.
``(b) Membership.--The Advisory Board shall be comprised of
at least nine members. Each member shall be qualified by
education, training, and experience to evaluate scientific
and technical information on matters referred to the Board
under this section. The Administrator shall appoint Advisory
Board members, including a chair and vice-chair of the
Advisory Board. Terms shall be 3 years in length, except for
initial terms, which may be up to 5 years in length to allow
staggering. Members may be reappointed only once for an
additional 3-year term, and such second term may follow
directly after a first term.
``(c) Activities.--The Advisory Board established pursuant
to subsection (a) shall--
``(1) provide recommendations, not later than 90 days after
the Advisory Board's establishment and periodically
thereafter, to the Administrator regarding offset project
types that should be considered for eligibility under section
733, taking into consideration relevant scientific and other
issues, including--
``(A) the availability of a representative data set for use
in developing the activity baseline;
``(B) the potential for accurate quantification of
greenhouse gas reduction, avoidance, or sequestration for an
offset project type;
``(C) the potential level of scientific and measurement
uncertainty associated with an offset project type; and

[[Page H7553]]

``(D) any beneficial or adverse environmental, public
health, welfare, social, economic, or energy effects
associated with an offset project type;
``(2) make available to the Administrator its advice and
comments on offset methodologies that should be considered
under regulations promulgated with respect to section 734,
including methodologies to address the issues of
additionality, activity baselines, quantification methods,
leakage, uncertainty, permanence, and environmental
integrity;
``(3) make available to the Administrator, and other
relevant Federal agencies, its advice and comments regarding
scientific, technical, and methodological issues specific to
the issuance of international offset credits under section
743;
``(4) make available to the Administrator, and other
relevant Federal agencies, its advice and comments regarding
scientific, technical, and methodological issues associated
with the implementation of part E;
``(5) make available to the Administrator its advice and
comments on areas in which further knowledge is required to
appraise the adequacy of existing, revised, or proposed
methodologies for use under this part and part E, and
describe the research efforts necessary to provide the
required information; and
``(6) make available to the Administrator its advice and
comments on other ways to improve or safeguard the
environmental integrity of programs established under this
part and part E.
``(d) Scientific Review of Offset and Deforestation
Reduction Programs.--Not later than January 1, 2017, and at
five-year intervals thereafter, the Advisory Board shall
submit to the Administrator and make available to the public
an analysis of relevant scientific and technical information
related to this part and part E. The Advisory Board shall
review approved and potential methodologies, scientific
studies, offset project monitoring, offset project
verification reports, and audits related to this part and
part E, and evaluate the net emissions effects of implemented
offset projects. The Advisory Board shall recommend changes
to offset methodologies, protocols, or project types, or to
the overall offset program under this part, to ensure that
offset credits issued by the Administrator do not compromise
the integrity of the annual emission reductions established
under section 703, and to avoid or minimize adverse effects
to human health or the environment.

``SEC. 732. ESTABLISHMENT OF OFFSETS PROGRAM.

``(a) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator, in
consultation with appropriate Federal agencies and taking
into consideration the recommendations of the Advisory Board,
shall promulgate regulations establishing a program for the
issuance of offset credits in accordance with the
requirements of this part. The Administrator shall
periodically revise these regulations as necessary to meet
the requirements of this part.
``(b) Requirements.--The regulations described in
subsection (a) shall--
``(1) authorize the issuance of offset credits with respect
to qualifying offset projects that result in reductions or
avoidance of greenhouse gas emissions, or sequestration of
greenhouse gases;
``(2) ensure that such offset credits represent verifiable
and additional greenhouse gas emission reductions or
avoidance, or increases in sequestration;
``(3) ensure that offset credits issued for sequestration
offset projects are only issued for greenhouse gas reductions
that are permanent;
``(4) provide for the implementation of the requirements of
this part; and
``(5) include as reductions in greenhouse gases reductions
achieved through the destruction of methane and its
conversion to carbon dioxide, and reductions achieved through
destruction of chlorofluorocarbons or other ozone depleting
substances, if permitted by the Administrator under section
619(b)(9) and subject to the conditions specified in section
619(b)(9), based on the carbon dioxide equivalent value of
the substance destroyed.
``(c) Coordination to Minimize Negative Effects.--In
promulgating and implementing regulations under this part,
the Administrator shall act (including by rejecting projects,
if necessary) to avoid or minimize, to the maximum extent
practicable, adverse effects on human health or the
environment resulting from the implementation of offset
projects under this part.
``(d) Offset Registry.--The Administrator shall establish
within the allowance tracking system established under
section 724(d) an Offset Registry for qualifying offset
projects and offset credits issued with respect thereto under
this part.
``(e) Legal Status of Offset Credit.--An offset credit does
not constitute a property right.
``(f) Fees.--The Administrator shall assess fees payable by
offset project developers in an amount necessary to cover the
administrative costs to the Environmental Protection Agency
of carrying out the activities under this part. Amounts
collected for such fees shall be available to the
Administrator for carrying out the activities under this part
to the extent provided in advance in appropriations Acts.

``SEC. 733. ELIGIBLE PROJECT TYPES.

``(a) List of Eligible Project Types.--
``(1) In general.--As part of the regulations promulgated
under section 732(a), the Administrator shall establish, and
may periodically revise, a list of types of projects eligible
to generate offset credits, including international offset
credits, under this part.
``(2) Advisory board recommendations.--In determining the
eligibility of project types, the Administrator shall take
into consideration the recommendations of the Advisory Board.
If a list established under this section differs from the
recommendations of the Advisory Board, the regulations
promulgated under section 732(a) shall include a
justification for the discrepancy.
``(3) Initial determination.--The Administrator shall
establish the initial eligibility list under paragraph (1)
not later than one year after the date of enactment of this
title. The Administrator shall add additional project types
to the list not later than 2 years after the date of
enactment of this title. In determining the initial list, the
Administrator shall give priority to consideration of offset
project types that are recommended by the Advisory Board and
for which there are well developed methodologies that the
Administrator determines would meet the criteria of section
734, with such modifications as the Administrator deems
appropriate. In establishing methodologies pursuant to
section 734, the Administrator shall give priority to
methodologies for offset project types included on the
initial eligibility list.
``(b) Modification of List.--The Administrator--
``(1) may at any time, by rule, add a project type to the
list established under subsection (a) if the Administrator,
in consultation with appropriate Federal agencies and taking
into consideration the recommendations of the Advisory Board,
determines that the project type can generate additional
reductions or avoidance of greenhouse gas emissions, or
sequestration of greenhouse gases, subject to the
requirements of this part;
``(2) may at any time, by rule, determine that a project
type on the list does not meet the requirements of this part,
and remove the project type from the list established under
subsection (a), in consultation with appropriate Federal
agencies and taking into consideration any recommendations of
the Advisory Board; and
``(3) shall consider adding to or removing from the list
established under subsection (a), at a minimum, project types
proposed to the Administrator--
``(A) by petition pursuant to subsection (c); or
``(B) by the Advisory Board.
``(c) Petition Process.--Any person may petition the
Administrator to modify the list established under subsection
(a) by adding or removing a project type pursuant to
subsection (b). Any such petition shall include a showing by
the petitioner that there is adequate data to establish that
the project type does or does not meet the requirements of
this part. Not later than 12 months after receipt of such a
petition, the Administrator shall either grant or deny the
petition and publish a written explanation of the reasons for
the Administrator's decision. The Administrator may not deny
a petition under this subsection on the basis of inadequate
Environmental Protection Agency resources or time for review.

``SEC. 734. REQUIREMENTS FOR OFFSET PROJECTS.

``(a) Methodologies.--As part of the regulations
promulgated under section 732(a), the Administrator shall
establish, for each type of offset project listed as eligible
under section 733, the following:
``(1) Additionality.--A standardized methodology for
determining the additionality of greenhouse gas emission
reductions or avoidance, or greenhouse gas sequestration,
achieved by an offset project of that type. Such methodology
shall ensure, at a minimum, that any greenhouse gas emission
reduction or avoidance, or any greenhouse gas sequestration,
is considered additional only to the extent that it results
from activities that--
``(A) are not required by or undertaken to comply with any
law, including any regulation or consent order;
``(B) were not commenced prior to January 1, 2009, except
in the case of--
``(i) offset project activities that commenced after
January 1, 2001, and were registered as of the date of
enactment of this title under an offset program with respect
to which the Administrator has made an affirmative
determination under section 740(a)(2); or
``(ii) activities that are readily reversible, with respect
to which the Administrator may set an alternative earlier
date under this subparagraph that is not earlier than January
1, 2001, where the Administrator determines that setting such
an alternative date may produce an environmental benefit by
removing an incentive to cease and then reinitiate activities
that began prior to January 1, 2009; and
``(C) exceed the activity baseline established under
paragraph (2).
``(2) Activity baselines.--A standardized methodology for
establishing activity baselines for offset projects of that
type. The Administrator shall set activity baselines to
reflect a conservative estimate of business-as-usual
performance or practices for the relevant type of activity
such that the baseline provides an adequate margin of safety
to ensure the environmental integrity of offsets calculated
in reference to such baseline.

[[Page H7554]]

``(3) Quantification methods.--A standardized methodology
for determining the extent to which greenhouse gas emission
reductions or avoidance, or greenhouse gas sequestration,
achieved by an offset project of that type exceed a relevant
activity baseline, including protocols for monitoring and
accounting for uncertainty.
``(4) Leakage.--A standardized methodology for accounting
for and mitigating potential leakage, if any, from an offset
project of that type, taking uncertainty into account.
``(b) Accounting for Reversals.--
``(1) In general.--For each type of sequestration project
listed under section 733, the Administrator shall establish
requirements to account for and address reversals,
including--
``(A) a requirement to report any reversal with respect to
an offset project for which offset credits have been issued
under this part;
``(B) provisions to require emission allowances to be held
in amounts to fully compensate for greenhouse gas emissions
attributable to reversals, and to assign responsibility for
holding such emission allowances; and
``(C) any other provisions the Administrator determines
necessary to account for and address reversals.
``(2) Mechanisms.--The Administrator shall prescribe
mechanisms to ensure that any sequestration with respect to
which an offset credit is issued under this part results in a
permanent net increase in sequestration, and that full
account is taken of any actual or potential reversal of such
sequestration, with an adequate margin of safety. The
Administrator shall prescribe at least one of the following
mechanisms to meet the requirements of this paragraph:
``(A) An offsets reserve, pursuant to paragraph (3).
``(B) Insurance that provides for purchase and provision to
the Administrator for retirement of an amount of offset
credits or emission allowances equal in number to the tons of
carbon dioxide equivalents of greenhouse gas emissions
released due to reversal.
``(C) Another mechanism that the Administrator determines
satisfies the requirements of this part.
``(3) Offsets reserve.--
``(A) In general.--An offsets reserve referred to in
paragraph (2)(A) is a program under which, before issuance of
offset credits under this part, the Administrator shall
subtract and reserve from the quantity to be issued a
quantity of offset credits based on the risk of reversal. The
Administrator shall--
``(i) hold these reserved offset credits in the offsets
reserve; and
``(ii) register the holding of the reserved offset credits
in the Offset Registry established under section 732(d).
``(B) Project reversal.--
``(i) In general.--If a reversal has occurred with respect
to an offset project for which offset credits are reserved
under this paragraph, the Administrator shall retire offset
credits or emission allowances from the offsets reserve to
fully account for the tons of carbon dioxide equivalent that
are no longer sequestered.
``(ii) Intentional reversals.--If the Administrator
determines that a reversal was intentional, the offset
project developer for the relevant offset project shall place
into the offsets reserve a quantity of offset credits, or
combination of offset credits and emission allowances, equal
in number to the number of reserve offset credits that were
canceled due to the reversal pursuant to clause (i).
``(iii) Unintentional reversals.--If the Administrator
determines that a reversal was unintentional, the offset
project developer for the relevant offset project shall place
into the offsets reserve a quantity of offset credits, or
combination of offset credits and emission allowances, equal
in number to half the number of offset credits that were
reserved for that offset project, or half the number of
reserve offset credits that were canceled due to the reversal
pursuant to clause (i), whichever is less.
``(C) Use of reserved offset credits.--Offset credits
placed into the offsets reserve under this paragraph may not
be used to comply with section 722.
``(c) Crediting Periods.--
``(1) In general.--For each offset project type, the
Administrator shall specify a crediting period, and establish
provisions for petitions for new crediting periods, in
accordance with this subsection.
``(2) Duration.--The crediting period shall be no less than
5 and no greater than 10 years for any project type other
than those involving sequestration.
``(3) Eligibility.--An offset project shall be eligible to
generate offset credits under this part only during the
project's crediting period. During such crediting period, the
project shall remain eligible to generate offset credits,
subject to the methodologies and project type eligibility
list that applied as of the date of project approval under
section 735, except as provided in paragraph (4) of this
subsection.
``(4) Petition for new crediting period.--An offset project
developer may petition for a new crediting period to commence
after termination of a crediting period, subject to the
methodologies and project type eligibility list in effect at
the time when such petition is submitted. A petition may not
be submitted under this paragraph more than 18 months before
the end of the pending crediting period. The Administrator
may limit the number of new crediting periods available for
projects of particular project types.
``(d) Environmental Integrity.--In establishing the
requirements under this section, the Administrator shall
apply conservative assumptions or methods to maximize the
certainty that the environmental integrity of the cap
established under section 703 is not compromised.
``(e) Pre-existing Methodologies.--In promulgating
requirements under this section, the Administrator shall give
due consideration to methodologies for offset projects
existing as of the date of enactment of this title.
``(f) Added Project Types.--The Administrator shall
establish methodologies described in subsection (a), and, as
applicable, requirements and mechanisms for reversals as
described in subsection (b), for any project type that is
added to the list pursuant to section 733.

``SEC. 735. APPROVAL OF OFFSET PROJECTS.

``(a) Approval Petition.--An offset project developer shall
submit an offset project approval petition providing such
information as the Administrator requires to determine
whether the offset project is eligible for issuance of offset
credits under rules promulgated pursuant to this part.
``(b) Timing.--An approval petition shall be submitted to
the Administrator under subsection (a) no later than the time
at which an offset project's first verification report is
submitted under section 736.
``(c) Approval Petition Requirements.--As part of the
regulations promulgated under section 732, the Administrator
shall include provisions for, and shall specify, the required
components of an offset project approval petition required
under subsection (a), which shall include--
``(1) designation of an offset project developer; and
``(2) any other information that the Administrator
considers to be necessary to achieve the purposes of this
part.
``(d) Approval and Notification.--Not later than 90 days
after receiving a complete approval petition under subsection
(a), the Administrator shall make the approval petition
publicly available, approve or deny the petition in writing
and if the petition is denied, provide the reasons for
denial, and make the Administrator's written decision
publicly available. After an offset project is approved, the
offset project developer shall not be required to resubmit an
approval petition during the offset project's crediting
period, except as provided in section 734(c)(4).
``(e) Appeal.--The Administrator shall establish procedures
for appeal and review of determinations made under subsection
(d).
``(f) Voluntary Preapproval Review.--The Administrator may
establish a voluntary preapproval review procedure, to allow
an offset project developer to request the Administrator to
conduct a preliminary eligibility review for an offset
project. Findings of such reviews shall not be binding upon
the Administrator. The voluntary preapproval review
procedure--
``(1) shall require the offset project developer to submit
such basic project information as the Administrator requires
to provide a meaningful review; and
``(2) shall require a response from the Administrator not
later than 6 weeks after receiving a request for review under
this subsection.

``SEC. 736. VERIFICATION OF OFFSET PROJECTS.

``(a) In General.--As part of the regulations promulgated
under section 732(a), the Administrator shall establish
requirements, including protocols, for verification of the
quantity of greenhouse gas emission reductions or avoidance,
or sequestration of greenhouse gases, resulting from an
offset project. The regulations shall require that an offset
project developer shall submit a report, prepared by a third-
party verifier accredited under subsection (d), providing
such information as the Administrator requires to determine
the quantity of greenhouse gas emission reductions or
avoidance, or sequestration of greenhouse gases, resulting
from the offset project.
``(b) Schedule.--The Administrator shall prescribe a
schedule for the submission of verification reports under
subsection (a).
``(c) Verification Report Requirements.--The Administrator
shall specify the required components of a verification
report required under subsection (a), which shall include--
``(1) the name and contact information for a designated
representative for the offset project developer;
``(2) the quantity of greenhouse gases reduced, avoided, or
sequestered;
``(3) the methodologies applicable to the project pursuant
to section 734;
``(4) a certification that the project meets the applicable
requirements;
``(5) a certification establishing that the conflict of
interest requirements in the regulations promulgated under
subsection (d)(1) have been complied with; and
``(6) any other information that the Administrator
considers to be necessary to achieve the purposes of this
part.
``(d) Verifier Accreditation.--
``(1) In general.--As part of the regulations promulgated
under section 732(a), the Administrator shall establish a
process and requirements for periodic accreditation of third-
party verifiers to ensure that such verifiers are
professionally qualified and have no conflicts of interest.

[[Page H7555]]

``(2) Standards.--
``(A) American national standards institute
accreditation.--The Administrator may accredit, or accept for
purposes of accreditation under this subsection, verifiers
accredited under the American National Standards Institute
(ANSI) accreditation program in accordance with ISO 14065.
The Administrator shall accredit, or accept for
accreditation, verifiers under this subparagraph only if the
Administrator finds that the American National Standards
Institute accreditation program provides sufficient assurance
that the requirements of this part will be met.
``(B) EPA accreditation.--As part of the regulations
promulgated under section 732(a), the Administrator may
establish accreditation standards for verifiers under this
subsection, and may establish related training and testing
programs and requirements.
``(3) Public accessibility.--Each verifier meeting the
requirements for accreditation in accordance with this
subsection shall be listed in a publicly accessible database,
which shall be maintained and updated by the Administrator.

``SEC. 737. ISSUANCE OF OFFSET CREDITS.

``(a) Determination and Notification.--Not later than 90
days after receiving a complete verification report under
section 736, the Administrator shall--
``(1) make the report publicly available;
``(2) make a determination of the quantity of greenhouse
gas emissions that have been reduced or avoided, or
greenhouse gases that have been sequestered, by the offset
project; and
``(3) notify the offset project developer in writing of
such determination and make such determination publicly
available.
``(b) Issuance Of Offset Credits.--The Administrator shall
issue one offset credit to an offset project developer for
each ton of carbon dioxide equivalent that the Administrator
has determined has been reduced, avoided, or sequestered
during the period covered by a verification report submitted
in accordance with section 736, only if--
``(1) the Administrator has approved the offset project
pursuant to section 735; and
``(2) the relevant emissions reduction, avoidance, or
sequestration has--
``(A) already occurred, during the offset project's
crediting period; and
``(B) occurred after January 1, 2009.
``(c) Appeal.--The Administrator shall establish procedures
for appeal and review of determinations made under subsection
(a).
``(d) Timing.--Offset credits meeting the criteria
established in subsection (b) shall be issued not later than
2 weeks following the verification determination made by the
Administrator under subsection (a).
``(e) Registration.--The Administrator shall assign a
unique serial number to and register each offset credit to be
issued in the Offset Registry established under section
732(d).

``SEC. 738. AUDITS.

``(a) In General.--The Administrator shall, on an ongoing
basis, conduct random audits of offset projects, offset
credits, and practices of third-party verifiers. In each
year, the Administrator shall conduct audits, at minimum, for
a representative sample of project types and geographic
areas.
``(b) Delegation.--The Administrator may delegate to a
State or tribal government the responsibility for conducting
audits under this section if the Administrator finds that the
program proposed by the State or tribal government provides
assurances equivalent to those provided by the auditing
program of the Administrator, and that the integrity of the
offset program under this part will be maintained. Nothing in
this subsection shall prevent the Administrator from
conducting any audit the Administrator considers necessary
and appropriate.

``SEC. 739. PROGRAM REVIEW AND REVISION.

``At least once every 5 years, the Administrator shall
review and, based on new or updated information and taking
into consideration the recommendations of the Advisory Board,
update and revise--
``(1) the list of eligible project types established under
section 733;
``(2) the methodologies established, including specific
activity baselines, under section 734(a);
``(3) the reversal requirements and mechanisms established
or prescribed under section 734(b);
``(4) measures to improve the accountability of the offsets
program; and
``(5) any other requirements established under this part to
ensure the environmental integrity and effective operation of
this part.

``SEC. 740. EARLY OFFSET SUPPLY.

``(a) Projects Registered Under Other Government-recognized
Programs.--Except as provided in subsection (b) or (c), the
Administrator shall issue one offset credit for each ton of
carbon dioxide equivalent emissions reduced, avoided, or
sequestered--
``(1) under an offset project that was started after
January 1, 2001;
``(2) for which a credit was issued under any regulatory or
voluntary greenhouse gas emission offset program that the
Administrator determines--
``(A) was established under State or tribal law or
regulation prior to January 1, 2009, or has been approved by
the Administrator pursuant to subsection (e);
``(B) has developed offset project type standards,
methodologies, and protocols through a public consultation
process or a peer review process;
``(C) has made available to the public standards,
methodologies, and protocols that require that credited
emission reductions, avoidance, or sequestration are
permanent, additional, verifiable, and enforceable;
``(D) requires that all emission reductions, avoidance, or
sequestration be verified by a State or tribal regulatory
agency or an accredited third-party independent verification
body;
``(E) requires that all credits issued are registered in a
publicly accessible registry, with individual serial numbers
assigned for each ton of carbon dioxide equivalent emission
reductions, avoidance, or sequestration; and
``(F) ensures that no credits are issued for an activity if
the entity administering the program, or a program
administrator or representative, has funded, solicited, or
served as a fund administrator for the development of the
activity; and
``(3) for which the credit described in paragraph (2) is
transferred to the Administrator.
``(b) Ineligible Credits.--Subsection (a) shall not apply
to offset credits that have expired or have been retired,
canceled, or used for compliance under a program established
under State or tribal law or regulation.
``(c) Limitation.--Notwithstanding subsection (a)(1),
offset credits shall be issued under this section--
``(1) only for reductions or avoidance of greenhouse gas
emissions, sequestration of greenhouse gases, or destruction
of chlorofluorocarbons (subject to the conditions specified
in section 619(b)(9) and based on the carbon dioxide
equivalent value of the substance destroyed), that occur
after January 1, 2009; and
``(2) only until the date that is 3 years after the date of
enactment of this title, or the date that regulations
promulgated under section 732(a) take effect, whichever
occurs sooner.
``(d) Retirement of Credits.--The Administrator shall seek
to ensure that offset credits described in subsection (a)(2)
are retired for purposes of use under a program described in
subsection (b).
``(e) Other Programs.--(1) Offset programs that either--
``(A) were not established under State or tribal law or
regulation; or
``(B) were not established prior to January 1, 2009,

but that otherwise meet all of the criteria of subsection
(a)(2) may apply to the Administrator to be approved under
this subsection as an eligible program for early offset
credits under this section.
``(2) The Administrator shall approve any such program that
the Administrator determines has criteria and methodologies
of at least equal stringency to the criteria and
methodologies of the programs established under State or
tribal law or regulation that the Administrator determines
meet the criteria of subsection (a)(2). The Administrator may
approve types of offsets under any such program that are
subject to criteria and methodologies of at least equal
stringency to the criteria and methodologies for such types
of offsets applied under the programs established under State
or tribal law or regulation that the Administrator determines
meet the criteria of subsection (a)(2). The Administrator
shall make a determination on any application received under
this section by no later than 180 days from the date of
receipt of the application.

``SEC. 741. ENVIRONMENTAL CONSIDERATIONS.

``If the Administrator lists forestry or other relevant
land management-related offset projects as eligible offset
project types under section 733, the Administrator, in
consultation with appropriate Federal agencies, shall
promulgate regulations for the selection and use of species
in such offset projects--
``(1) to ensure that native species are given primary
consideration in such projects;
``(2) to enhance biological diversity in such projects;
``(3) to prohibit the use of federally designated or State-
designated noxious weeds;
``(4) to prohibit the use of a species listed by a regional
or State invasive plant authority within the applicable
region or State; and
``(5) in the case of forestry offset projects, in
accordance with widely accepted, environmentally sustainable
forestry practices.

``SEC. 742. TRADING.

``Section 724 shall apply to the trading of offset credits.

``SEC. 743. INTERNATIONAL OFFSET CREDITS.

``(a) In General.--The Administrator, in consultation with
the Secretary of State and the Administrator of the United
States Agency for International Development, may issue, in
accordance with this section, international offset credits
based on activities that reduce or avoid greenhouse gas
emissions, or increase sequestration of greenhouse gases, in
a developing country. Such credits may be issued for projects
eligible under section 733 or as provided in subsection (c),
(d), or (e) of this section.
``(b) Issuance.--
``(1) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator, in
consultation with the Secretary of State, the Administrator
of the United States Agency for International Development,
and any other appropriate Federal agency, and taking into
consideration the recommendations of the Advisory Board,
shall promulgate regulations for implementing this section.
Except as otherwise provided in this section, the issuance of

[[Page H7556]]

international offset credits under this section shall be
subject to the requirements of this part.
``(2) Requirements for international offset credits.--The
Administrator may issue international offset credits only
if--
``(A) the United States is a party to a bilateral or
multilateral agreement or arrangement that includes the
country in which the project or measure achieving the
relevant greenhouse gas emission reduction or avoidance, or
greenhouse gas sequestration, has occurred;
``(B) such country is a developing country; and
``(C) such agreement or arrangement--
``(i) ensures that the requirements of this part apply to
the issuance of international offset credits under this
section; and
``(ii) provides for the appropriate distribution of
international offset credits issued.
``(c) Sector-based Credits.--
``(1) In general.--In order to minimize the potential for
leakage and to encourage countries to take nationally
appropriate mitigation actions to reduce or avoid greenhouse
gas emissions, or sequester greenhouse gases, the
Administrator, in consultation with the Secretary of State
and the Administrator of the United States Agency for
International Development, shall--
``(A) identify sectors of specific countries with respect
to which the issuance of international offset credits on a
sectoral basis is appropriate; and
``(B) issue international offset credits for such sectors
only on a sectoral basis.
``(2) Identification of sectors.--
``(A) General rule.--For purposes of paragraph (1)(A), a
sectoral basis shall be appropriate for activities--
``(i) in countries that have comparatively high greenhouse
gas emissions, or comparatively greater levels of economic
development; and
``(ii) that, if located in the United States, would be
within a sector subject to the compliance obligation under
section 722.
``(B) Factors.--In determining the sectors and countries
for which international offset credits should be awarded only
on a sectoral basis, the Administrator, in consultation with
the Secretary of State and the Administrator of the United
States Agency for International Development, shall consider
the following factors:
``(i) The country's gross domestic product.
``(ii) The country's total greenhouse gas emissions.
``(iii) Whether the comparable sector of the United States
economy is covered by the compliance obligation under section
722.
``(iv) The heterogeneity or homogeneity of sources within
the relevant sector.
``(v) Whether the relevant sector provides products or
services that are sold in internationally competitive
markets.
``(vi) The risk of leakage if international offset credits
were issued on a project-level basis, instead of on a
sectoral basis, for activities within the relevant sector.
``(vii) The capability of accurately measuring, monitoring,
reporting, and verifying the performance of sources across
the relevant sector.
``(viii) Such other factors as the Administrator, in
consultation with the Secretary of State and the
Administrator of the United States Agency for International
Development, determines are appropriate to--

``(I) ensure the integrity of the United States greenhouse
gas emissions cap established under section 703; and
``(II) encourage countries to take nationally appropriate
mitigation actions to reduce or avoid greenhouse gas
emissions, or sequester greenhouse gases.

``(3) Sectoral basis.--
``(A) Definition.--In this subsection, the term `sectoral
basis' means the issuance of international offset credits
only for the quantity of sector-wide reductions or avoidance
of greenhouse gas emissions, or sector-wide increases in
sequestration of greenhouse gases, achieved across the
relevant sector of the economy relative to a domestically
enforceable baseline level of absolute emissions established
in an agreement or arrangement described in subsection
(b)(2)(A) for the sector.
``(B) Baseline.--The baseline for a sector shall be
established on an absolute basis and at levels of greenhouse
gas emissions consistent with the thresholds identified in
section 705(e)(2) and lower than would occur under a
business-as-usual scenario taking into account relevant
domestic or international policies or incentives to reduce
greenhouse gas emissions, among other factors, and
additionality and performance shall be determined on the
basis of such baseline.
``(d) Credits Issued by an International Body.--
``(1) In general.--The Administrator, in consultation with
the Secretary of State, may issue international offset
credits in exchange for instruments in the nature of offset
credits that are issued by an international body established
pursuant to the United Nations Framework Convention on
Climate Change, to a protocol to such Convention, or to a
treaty that succeeds such Convention. The Administrator may
issue international offset credits under this subsection only
if, in addition to the requirements of subsection (b), the
Administrator has determined that the international body that
issued the instruments has implemented substantive and
procedural requirements for the relevant project type that
provide equal or greater assurance of the integrity of such
instruments as is provided by the requirements of this part.
Starting January 1, 2016, the Administrator shall issue no
offset credit pursuant to this subsection if the activity
generating the greenhouse gas emissions reductions or
avoidance, or greenhouse gas sequestration, occurs in a
country and sector identified by the Administrator under
subsection (c).
``(2) Retirement.--The Administrator, in consultation with
the Secretary of State, shall seek, by whatever means
appropriate, including agreements, arrangements, or technical
cooperation with the international issuing body described in
paragraph (1), to ensure that such body--
``(A) is notified of the Administrator's issuance, under
this subsection, of an international offset credit in
exchange for an instrument issued by such international body;
and
``(B) provides, to the extent feasible, for the
disqualification of the instrument issued by such
international body for subsequent use under any relevant
foreign or international greenhouse gas regulatory program,
regardless of whether such use is a sale, exchange, or
submission to satisfy a compliance obligation.
``(e) Offsets From Reduced Deforestation.--
``(1) Requirements.--The Administrator, in accordance with
the regulations promulgated under subsection (b)(1) and an
agreement or arrangement described in subsection (b)(2)(A),
shall issue international offset credits for greenhouse gas
emission reductions achieved through activities to reduce
deforestation only if, in addition to the requirements of
subsection (b)--
``(A) the activity occurs in--
``(i) a country listed by the Administrator pursuant to
paragraph (2);
``(ii) a state or province listed by the Administrator
pursuant to paragraph (5); or
``(iii) a country listed by the Administrator pursuant to
paragraph (6);
``(B) except as provided in paragraph (5) or (6), the
quantity of the international offset credits is determined by
comparing the national emissions from deforestation relative
to a national deforestation baseline for that country
established, in accordance with an agreement or arrangement
described in subsection (b)(2)(A), pursuant to paragraph (4);
``(C) the reduction in emissions from deforestation has
occurred before the issuance of the international offset
credit and, taking into consideration relevant international
standards, has been demonstrated using ground-based
inventories, remote sensing technology, and other
methodologies to ensure that all relevant carbon stocks are
accounted;
``(D) the Administrator has made appropriate adjustments,
such as discounting for any additional uncertainty, to
account for circumstances specific to the country, including
its technical capacity described in paragraph (2)(A);
``(E) the activity is designed, carried out, and managed--
``(i) in accordance with widely accepted, environmentally
sustainable forest management practices;
``(ii) to promote or restore native forest species and
ecosystems where practicable, and to avoid the introduction
of invasive nonnative species;
``(iii) in a manner that gives due regard to the rights and
interests of local communities, indigenous peoples, forest-
dependent communities, and vulnerable social groups;
``(iv) with consultations with, and full participation of,
local communities, indigenous peoples, and forest-dependent
communities, in affected areas, as partners and primary
stakeholders, prior to and during the design, planning,
implementation, and monitoring and evaluation of activities;
and
``(v) with equitable sharing of profits and benefits
derived from offset credits with local communities,
indigenous peoples, and forest-dependent communities; and
``(F) the reduction otherwise satisfies and is consistent
with any relevant requirements established by an agreement
reached under the auspices of the United Nations Framework
Convention on Climate Change.
``(2) Eligible countries.--The Administrator, in
consultation with the Secretary of State and the
Administrator of the United States Agency for International
Development, and in accordance with an agreement or
arrangement described in subsection (b)(2)(A), shall
establish, and periodically review and update, a list of the
developing countries that have the capacity to participate in
deforestation reduction activities at a national level,
including--
``(A) the technical capacity to monitor, measure, report,
and verify forest carbon fluxes for all significant sources
of greenhouse gas emissions from deforestation with an
acceptable level of uncertainty, as determined taking into
account relevant internationally accepted methodologies, such
as those established by the Intergovernmental Panel on
Climate Change;
``(B) the institutional capacity to reduce emissions from
deforestation, including strong forest governance and
mechanisms to equitably distribute deforestation resources
for local actions; and
``(C) a land use or forest sector strategic plan that--
``(i) assesses national and local drivers of deforestation
and forest degradation and identifies reforms to national
policies needed to address them;

[[Page H7557]]

``(ii) estimates the country's emissions from deforestation
and forest degradation;
``(iii) identifies improvements in data collection,
monitoring, and institutional capacity necessary to implement
a national deforestation reduction program; and
``(iv) establishes a timeline for implementing the program
and transitioning to low-emissions development with respect
to emissions from forest and land use activities.
``(3) Protection of interests.--With respect to an
agreement or arrangement described in subsection (b)(2)(A)
that addresses international offset credits under this
subsection, the Administrator, in consultation with the
Secretary of State and the Administrator of the United States
Agency for International Development, shall seek to ensure
the establishment and enforcement by such country of legal
regimes, processes, standards, and safeguards that--
``(A) give due regard to the rights and interests of local
communities, indigenous peoples, forest-dependent
communities, and vulnerable social groups;
``(B) promote consultations with, and full participation
of, forest-dependent communities and indigenous peoples in
affected areas, as partners and primary stakeholders, prior
to and during the design, planning, implementation, and
monitoring and evaluation of activities; and
``(C) encourage equitable sharing of profits and benefits
derived from international offset credits with local
communities, indigenous peoples, and forest-dependent
communities.
``(4) National deforestation baseline.--A national
deforestation baseline established under this subsection
shall--
``(A) be national in scope;
``(B) be consistent with nationally appropriate mitigation
commitments or actions with respect to deforestation, taking
into consideration the average annual historical
deforestation rates of the country during a period of at
least 5 years, the applicable drivers of deforestation, and
other factors to ensure additionality;
``(C) establish a trajectory that would result in zero net
deforestation by not later than 20 years after the national
deforestation baseline has been established;
``(D) be adjusted over time to take account of changing
national circumstances;
``(E) be designed to account for all significant sources of
greenhouse gas emissions from deforestation in the country;
and
``(F) be consistent with the national deforestation
baseline, if any, established for such country under section
754(d)(1) and (2).
``(5) State-level or province-level activities.--
``(A) Eligible states or provinces.--The Administrator, in
consultation with the Secretary of State and the
Administrator of the United States Agency for International
Development, shall establish within 2 years after the date of
enactment of this title, and periodically review and update,
a list of states or provinces in developing countries where--
``(i) the developing country is not included on the list of
countries established pursuant to paragraph (6)(A);
``(ii) the state or province by itself is a major emitter
of greenhouse gases from tropical deforestation on a scale
commensurate to the emissions of other countries; and
``(iii) the state or province meets the eligibility
criteria in paragraphs (2) and (3) for the geographic area
under its jurisdiction.
``(B) Activities.--The Administrator may issue
international offset credits for greenhouse gas emission
reductions achieved through activities to reduce
deforestation at a state or provincial level that meet the
requirements of this section. Such credits shall be
determined by comparing the emissions from deforestation
within that state or province relative to the state or
province deforestation baseline for that state or province
established, in accordance with an agreement or arrangement
described in subsection (b)(2)(A), pursuant to subparagraph
(C) of this paragraph.
``(C) State or province deforestation baseline.--A state or
province deforestation baseline shall--
``(i) be consistent with any existing nationally
appropriate mitigation commitments or actions for the country
in which the activity is occurring, taking into consideration
the average annual historical deforestation rates of the
state or province during a period of at least 5 years,
relevant drivers of deforestation, and other factors to
ensure additionality;
``(ii) establish a trajectory that would result in zero net
deforestation by not later than 20 years after the state or
province deforestation baseline has been established; and
``(iii) be designed to account for all significant sources
of greenhouse gas emissions from deforestation in the state
or province and adjusted to fully account for emissions
leakage outside the state or province.
``(D) Phase out.--Beginning 5 years after the first
calendar year for which a covered entity must demonstrate
compliance with section 722(a), the Administrator shall issue
no further international offset credits for eligible state-
level or province-level activities to reduce deforestation
pursuant to this paragraph.
``(6) Projects and programs to reduce deforestation.--
``(A) Eligible countries.--The Administrator, in
consultation with the Secretary of State and the
Administrator of the United States Agency for International
Development, shall establish within 2 years after the date of
enactment of this title, and periodically review and update,
a list of developing countries each of which--
``(i) the Administrator determines, based on recent,
credible, and reliable emissions data, accounts for less than
1 percent of global greenhouse gas emissions and less than 3
percent of global forest-sector and land use change
greenhouse gas emissions; and
``(ii) has, or in the determination of the Administrator is
making a good faith effort to develop, a land use or forest
sector strategic plan that meets the criteria described in
paragraph (2)(C).
``(B) Activities.--The Administrator may issue
international offset credits for greenhouse gas emission
reductions achieved through project or program level
activities to reduce deforestation in countries listed under
subparagraph (A) that meet the requirements of this section.
The quantity of international offset credits shall be
determined by comparing the project-level or program-level
emissions from deforestation to a deforestation baseline for
such project or program established pursuant to subparagraph
(C).
``(C) Project-level or program-level baseline.--A project-
level or program-level deforestation baseline shall--
``(i) be consistent with any existing nationally
appropriate mitigation commitments or actions for the country
in which the project or program is occurring, taking into
consideration the average annual historical deforestation
rates relevant to the specific project or program during a
period of at least 5 years, applicable drivers of
deforestation, and other factors to ensure additionality;
``(ii) be designed to account for all significant sources
of greenhouse gas emissions from deforestation in the project
or program boundary; and
``(iii) be adjusted to fully account for emissions leakage
outside the project or program boundary.
``(D) Phase out.--(i) Beginning 5 years after the first
calendar year for which a covered entity must demonstrate
compliance with section 722(a), the Administrator shall issue
no further international offset credits for project-level or
program-level activities pursuant to this paragraph, except
as provided in clause (ii).
``(ii) The Administrator may extend the phase out deadline
for the issuance of international offset credits under this
paragraph by up to 8 years with respect to eligible
activities taking place in a least developed country, which
for purposes of this paragraph is defined as a foreign
country that the United Nations has identified as among the
least developed of developing countries at the time that the
Administrator determines to provide an extension, if the
Administrator, in consultation with the Secretary of State
and the Administrator of the United States Agency for
International Development, determines the country--
``(I) lacks sufficient capacity to adopt and implement
effective programs to achieve reductions in deforestation
measured against national baselines;
``(II) is receiving support under part E to develop such
capacity; and
``(III) has developed and is working to implement a
credible national strategy or plan to reduce deforestation.
``(7) Deforestation.--In implementing this subsection, the
Administrator, taking into consideration the recommendations
of the Advisory Board, may include forest degradation, or
soil carbon losses associated with forested wetlands or
peatlands, within the meaning of deforestation.
``(8) Consultation.--In implementing this subsection, the
Administrator shall consult with the Secretary of Agriculture
on relevant matters within such Secretary's area of
expertise.
``(f) Modification of Requirements.--In promulgating
regulations under subsection (b)(1) with respect to the
issuance of international offset credits under subsection
(c), (d), or (e), the Administrator, in consultation with the
Secretary of State and the Administrator of the United States
Agency for International Development, may modify or omit a
requirement of this part (excluding the requirements of this
section) if the Administrator determines that the application
of that requirement to such subsection is not feasible. In
modifying or omitting such a requirement on the basis of
infeasibility, the Administrator, in consultation with the
Secretary of State and the Administrator of the United States
Agency for International Development, shall ensure, with an
adequate margin of safety, the integrity of international
offset credits issued under this section and of the
greenhouse gas emissions cap established pursuant to section
703.
``(g) Avoiding Double Counting.--The Administrator, in
consultation with the Secretary of State, shall seek, by
whatever means appropriate, including agreements,
arrangements, or technical cooperation, to ensure that
activities on the basis of which international offset credits
are issued under this section are not used for compliance
with an obligation to reduce or avoid greenhouse gas
emissions, or increase greenhouse gas sequestration, under a
foreign or international regulatory system. In addition, no
international offset credits shall be issued for emission
reductions from activities with respect to which emission
allowances were allocated under section 781 for distribution
under part E.

[[Page H7558]]

``(h) Limitation.--The Administrator shall not issue
international offset credits generated by projects based on
the destruction of hydrofluorocarbons.

``PART E--SUPPLEMENTAL EMISSIONS REDUCTIONS FROM REDUCED DEFORESTATION

``SEC. 751. DEFINITIONS.

``In this part:
``(1) Leakage prevention activities.--The term `leakage
prevention activities' means activities in developing
countries that are directed at preserving existing forest
carbon stocks, including forested wetlands and peatlands,
that might, absent such activities, be lost through leakage.
``(2) National deforestation reduction activities.--The
term `national deforestation reduction activities' means
activities in developing countries that reduce a quantity of
greenhouse gas emissions from deforestation that is
calculated by measuring actual emissions against a national
deforestation baseline established pursuant to section
754(d)(1) and (2).
``(3) Subnational deforestation reduction activities.--The
term `subnational deforestation reduction activities' means
activities in developing countries that reduce a quantity of
greenhouse gas emissions from deforestation that are
calculated by measuring actual emissions using an appropriate
baseline established by the Administrator that is less than
national in scope.
``(4) Supplemental emissions reductions.--The term
`supplemental emissions reductions' means greenhouse gas
emissions reductions achieved from reduced or avoided
deforestation under this part.
``(5) USAID.--The term `USAID' means the United States
Agency for International Development.

``SEC. 752. FINDINGS.

``Congress finds that--
``(1) as part of a global effort to mitigate climate
change, it is in the national interest of the United States
to assist developing countries to reduce and ultimately halt
emissions from deforestation;
``(2) deforestation is one of the largest sources of
greenhouse gas emissions in developing countries, amounting
to roughly 20 percent of overall emissions globally;
``(3) recent scientific analysis shows that it will be
substantially more difficult to limit the increase in global
temperatures to less than 2 degrees centigrade above
preindustrial levels without reducing and ultimately halting
net emissions from deforestation;
``(4) reducing emissions from deforestation is highly cost-
effective, compared to many other sources of emissions
reductions;
``(5) in addition to contributing significantly to
worldwide efforts to address global warming, assistance under
this part will generate significant environmental and social
cobenefits, including protection of biodiversity, ecosystem
services, and forest-related livelihoods; and
``(6) under the Bali Action Plan, developed country parties
to the United Nations Framework Convention on Climate Change,
including the United States, committed to `enhanced action on
the provision of financial resources and investment to
support action on mitigation and adaptation and technology
cooperation,' including, inter alia, consideration of
`improved access to adequate, predictable, and sustainable
financial resources and financial and technical support, and
the provision of new and additional resources, including
official and concessional funding for developing country
parties' .

``SEC. 753. SUPPLEMENTAL EMISSIONS REDUCTIONS THROUGH REDUCED
DEFORESTATION.

``(a) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator, in
consultation with the Administrator of USAID and any other
appropriate agencies, shall promulgate regulations
establishing a program to use emission allowances set aside
for this purpose under section 781 to reduce greenhouse gas
emissions from deforestation in developing countries in
accordance with the requirements of this part.
``(b) Objectives.--The objectives of the program
established under this section shall be to--
``(1) achieve supplemental emissions reductions of at least
720,000,000 tons of carbon dioxide equivalent in 2020, a
cumulative amount of at least 6,000,000,000 tons of carbon
dioxide equivalent by December 31, 2025, and additional
supplemental emissions reductions in subsequent years;
``(2) build capacity to reduce deforestation in developing
countries experiencing deforestation, including preparing
developing countries to participate in international markets
for international offset credits for reduced emissions from
deforestation; and
``(3) preserve existing forest carbon stocks in countries
where such forest carbon may be vulnerable to international
leakage, particularly in developing countries with largely
intact native forests.

``SEC. 754. REQUIREMENTS FOR INTERNATIONAL DEFORESTATION
REDUCTION PROGRAM.

``(a) Eligible Countries.--The Administrator may support
activities under this part only with respect to a developing
country that--
``(1) the Administrator, in consultation with the
Administrator of USAID, determines is experiencing
deforestation or forest degradation or has standing forest
carbon stocks that may be at risk of deforestation or
degradation; and
``(2) has entered into a bilateral or multilateral
agreement or arrangement with the United States establishing
the conditions of its participation in the program
established under this part, which shall include an agreement
to meet the standards established under subsection (d) for
the activities to which those standards apply.
``(b) Activities.--
``(1) Authorized activities.--Subject to the requirements
of this part, the Administrator, in consultation with the
Administrator of USAID, may support activities to achieve the
objectives identified in section 753(b), including--
``(A) national deforestation reduction activities;
``(B) subnational deforestation reduction activities,
including pilot activities that reduce greenhouse gas
emissions but are subject to significant uncertainty;
``(C) activities to measure, monitor, and verify
deforestation, avoided deforestation, and deforestation
rates;
``(D) leakage prevention activities;
``(E) development of measurement, monitoring, and
verification capacities to enable a country to quantify
supplemental emissions reductions and to generate for sale
offset credits from reduced or avoided deforestation;
``(F) development of governance structures to reduce
deforestation and illegal logging;
``(G) enforcement of requirements for reduced deforestation
or forest conservation;
``(H) efforts to combat illegal logging and increase
enforcement cooperation;
``(I) providing incentives for policy reforms to achieve
the objectives identified in section 753(b); and
``(J) monitoring and evaluation of the results of the
activities conducted under this section.
``(2) Activities selected by usaid.--
``(A) The Administrator of USAID, in consultation with the
Administrator, may select for support and implementation
pursuant to subsection (c) any of the activities described in
paragraph (1), consistent with this part and the regulations
promulgated under subsection (d), and subject to the
requirement to achieve the objectives listed in section
753(b)(1).
``(B) With respect to the activities listed in
subparagraphs (D) through (J) of paragraph (1), the
Administrator of USAID, in consultation with the
Administrator, shall have primary but not exclusive
responsibility for selecting the activities to be supported
and implemented.
``(3) Interagency coordination.--The Administrator and the
Administrator of USAID shall jointly develop and biennially
update a strategic plan for meeting the objectives listed in
section 753(b) and shall execute a memorandum of
understanding delineating the agencies' respective roles in
implementing this part.
``(c) Mechanisms.--
``(1) In general.--The Administrator may support activities
to achieve the objectives identified in section 753(b) by--
``(A) developing and implementing programs and projects
that achieve such objectives; and
``(B) distributing emission allowances to a country that is
eligible under subsection (a), to a private or public group
(including international organizations), or to an
international fund established by an international agreement
to which the United States is a party, to carry out
activities to achieve such objectives.
``(2) USAID activities.--With respect to activities
selected and implemented by the Administrator of USAID
pursuant to subsection (b)(2), the Administrator shall
distribute emission allowances as provided in paragraph (1)
of this subsection based upon the direction of the
Administrator of USAID, subject to the availability of
allowances for such activities.
``(3) Implementation through international organizations.--
If support is distributed through an international
organization, the agency responsible for selecting activities
in accordance with subsection (b)(1) or (2), in consultation
with the Secretary of State, shall ensure the establishment
and implementation of adequate mechanisms to apply and
enforce the eligibility requirements and other requirements
of this section.
``(4) Role of the secretary of state.--The Administrator
may not distribute emission allowances under this part to the
government of another country or to an international
organization or international fund unless the Secretary of
State has concurred with such distribution.
``(d) Standards.--The Administrator, in consultation with
the Administrator of USAID, shall promulgate regulations
establishing standards to ensure that supplemental emissions
reductions achieved through supported activities are
additional, measurable, verifiable, permanent, and monitored,
and account for leakage and uncertainty. In addition, such
standards shall--
``(1) require the establishment of a national deforestation
baseline for each country with national deforestation
reduction activities that is used to account for reductions
achieved from such activities;
``(2) provide that a national deforestation baseline
established under paragraph (1) shall--
``(A) be national in scope;

[[Page H7559]]

``(B) be consistent with nationally appropriate mitigation
commitments or actions with respect to deforestation, taking
into consideration the average annual historical
deforestation rates of the country during a period of at
least 5 years, the applicable drivers of deforestation, and
other factors to ensure additionality;
``(C) establish a trajectory that would result in zero net
deforestation by not later than 20 years from the date the
baseline is established;
``(D) be adjusted over time to take account of changing
national circumstances;
``(E) be designed to account for all significant sources of
greenhouse gas emissions from deforestation in the country;
and
``(F) be consistent with the national deforestation
baseline, if any, established for such country under section
743(e)(4);
``(3) with respect to support provided pursuant to
subsection (b)(1)(A) or (B), require supplemental emissions
reductions to be achieved and verified prior to compensation
through the distribution of emission allowances under this
part;
``(4) with respect to accounting for subnational
deforestation reduction activities that lack the standardized
or precise measurement and monitoring techniques needed for a
full accounting of changes in emissions or baselines, or are
subject to other sources of uncertainty, apply a conservative
discount factor to reflect the uncertainty regarding the
levels of reductions achieved;
``(5) ensure that activities under this part shall be
designed, carried out, and managed--
``(A) in accordance with widely accepted, environmentally
sustainable forest management practices;
``(B) to promote or restore native forest species and
ecosystems where practicable, and to avoid the introduction
of invasive nonnative species;
``(C) in a manner that gives due regard to the rights and
interests of local communities, indigenous peoples, forest-
dependent communities, and vulnerable social groups;
``(D) with consultations with, and full participation of,
local communities, indigenous peoples, and forest-dependent
communities in affected areas, as partners and primary
stakeholders, prior to and during the design, planning,
implementation, and monitoring and evaluation of activities;
and
``(E) with equitable sharing of profits and benefits
derived from the activities with local communities,
indigenous peoples, and forest-dependent communities; and
``(6) with respect to support for all activities under this
part, seek to ensure the establishment and enforcement, by
the country in which the activities occur, of legal regimes,
standards, processes, and safeguards that--
``(A) give due regard to the rights and interests of local
communities, indigenous peoples, forest-dependent
communities, and vulnerable social groups;
``(B) promote consultations with local communities and
indigenous peoples and forest-dependent communities in
affected areas, as partners and primary stakeholders, prior
to and during the design, planning, implementation,
monitoring, and evaluation of activities under this part; and
``(C) encourage equitable sharing of profits and benefits
from incentives for emissions reductions or leakage
prevention with local communities, indigenous peoples, and
forest-dependent communities.
``(e) Scope.--(1) The Administrator shall include within
the scope of activities under this part reduced emissions
from forest degradation.
``(2) The Administrator, in consultation with the
Administrator of USAID, may decide, taking into account any
advice from the Advisory Board, to expand, where appropriate,
the scope of activities under this part to include reduced
soil carbon-derived emissions associated with deforestation
and degradation of forested wetlands and peatlands.
``(f) Accounting.--The Administrator shall establish a
publicly accessible registry of the supplemental emissions
reductions achieved through support provided under this part
each year, after appropriately discounting for uncertainty
and other relevant factors as required by the standards
established under subsection (d).
``(g) Transition to National Reductions.--Beginning 5 years
after the date that a country entered into the agreement or
arrangement required under subsection (a)(2), the
Administrator shall provide no further compensation through
emission allowances to that country under this part for any
subnational deforestation reduction activities, except that
the Administrator may extend this period by an additional 5
years if the Administrator, in consultation with the
Administrator of USAID, determines that--
``(1) the country is making substantial progress towards
adopting and implementing a program to achieve reductions in
deforestation measured against a national baseline;
``(2) the greenhouse gas emissions reductions achieved are
not resulting in significant leakage; and
``(3) the greenhouse gas emissions reductions achieved are
being appropriately discounted to account for any leakage
that is occurring.

The limitation under this subsection shall not apply to
support for activities to further the objectives listed in
section 753(b)(2) or (3).
``(h) Coordination With U.S. Foreign Assistance.--Subject
to the direction of the President, the Administrator and the
Administrator of USAID shall, to the extent practicable and
consistent with the objectives of this program, seek to align
activities under this section with broader development,
poverty alleviation, or natural resource management
objectives and initiatives in the recipient country.
``(i) Support as Supplement.--The provision of support for
activities under this part shall be used to supplement, and
not to supplant, any other Federal, State, or local support
available to carry out such qualifying activities under this
part.
``(j) Not Eligible for Offset Credit.--Activities that
receive support under this part shall not be issued offset
credits for the greenhouse gas emissions reductions or
avoidance, or greenhouse gas sequestration, produced by such
activities.

``SEC. 755. REPORTS AND REVIEWS.

``(a) Reports.--Not later than January 1, 2014, and
annually thereafter, the Administrator and the Administrator
of USAID shall submit to the Committee on Energy and Commerce
and the Committee on Foreign Affairs of the House of
Representatives, and the Committee on Environment and Public
Works and the Committee on Foreign Relations of the Senate,
and make available to the public, a report on the support
provided under this part during the prior fiscal year. The
report shall include--
``(1) a statement of the quantity of supplemental emissions
reductions for which compensation in the form of emission
allowances was provided under this part during the prior
fiscal year, as registered by the Administrator under section
754(f); and
``(2) a description of the national and subnational
deforestation reduction activities, capacity-building
activities, and leakage prevention activities supported under
this part, including a statement of the quantity of emission
allowances distributed to each recipient for each activity
during the prior fiscal year, and a description of what was
accomplished through each of the activities.
``(b) Reviews.--Not later than 4 years after the date of
enactment of this title and every 5 years thereafter, the
Administrator and the Administrator of USAID, taking into
consideration any evaluation by or recommendations from the
Advisory Board established under section 731, shall conduct a
review of the activities undertaken pursuant to this part and
make any appropriate changes in the program established under
this part, consistent with the requirements of this part,
based on the findings of the review. The review shall include
the effects of the activities on--
``(1) total documented carbon stocks of each country that
directly or indirectly received support under this part
compared with such country's national deforestation baseline
established under section 754(d)(1) and (2);
``(2) the number of countries with the capacity to generate
for sale instruments in the nature of offset credits from
forest-related activities, and the amount of such activities;
``(3) forest governance in each country that directly or
indirectly received support under this part;
``(4) indigenous peoples and forest-dependent communities
residing in areas affected by such activities;
``(5) biodiversity and ecosystem services within forested
areas associated with the activities;
``(6) subnational and international leakage; and
``(7) any program or mechanism established under the United
Nations Framework Convention on Climate Change related to
greenhouse gas emissions from deforestation.

``SEC. 756. LEGAL EFFECT OF PART.

``(1) In general.--Nothing in this part supersedes, limits,
or otherwise affects any restriction imposed by Federal law
(including regulations) on any interaction between an entity
located in the United States and an entity located in a
foreign country.
``(2) Role of the secretary of state.--Nothing in this part
shall be construed as affecting the role of the Secretary of
State or the responsibilities of the Secretary under section
622(c) of the Foreign Assistance Act of 1961.''.

SEC. 312. DEFINITIONS.

Title VII of the Clean Air Act, as added by section 311 of
this Act, is amended by inserting before part A the following
new section:

``SEC. 700. DEFINITIONS.

``In this title:
``(1) Additional.--The term `additional', when used with
respect to reductions or avoidance of greenhouse gas
emissions, or to sequestration of greenhouse gases, means
reductions, avoidance, or sequestration that result in a
lower level of net greenhouse gas emissions or atmospheric
concentrations than would occur in the absence of an offset
project.
``(2) Additionality.--The term `additionality' means the
extent to which reductions or avoidance of greenhouse gas
emissions, or sequestration of greenhouse gases, are
additional.
``(3) Advisory board.--The term `Advisory Board' means the
Offsets Integrity Advisory Board established under section
731.
``(4) Affiliated.--The term `affiliated'--
``(A) when used in relation to an entity means owned or
controlled by, or under common ownership or control with,
another entity, as determined by the Administrator; and
``(B) when used in relation to a natural gas local
distribution company, means owned or

[[Page H7560]]

controlled by, or under common ownership or control with,
another natural gas local distribution company, as determined
by the Administrator.
``(5) Allowance.--The term `allowance' means a limited
authorization to emit, or have attributable greenhouse gas
emissions in an amount of, 1 ton of carbon dioxide equivalent
of a greenhouse gas in accordance with this title. Such term
includes an emission allowance, a compensatory allowance, and
an international emission allowance, but does not include an
international reserve allowance established under section
766.
``(6) Attributable greenhouse gas emissions.--The term
`attributable greenhouse gas emissions', for a given calendar
year, means--
``(A) for a covered entity that is a fuel producer or
importer described in paragraph (13)(B), greenhouse gases
that would be emitted from the combustion of any petroleum-
based or coal-based liquid fuel, petroleum coke, or natural
gas liquid, produced or imported by that covered entity
during that calendar year for sale or distribution in
interstate commerce, assuming no capture and sequestration of
any greenhouse gas emissions;
``(B) for a covered entity that is an industrial gas
producer or importer described in paragraph (13)(C), the tons
of carbon dioxide equivalent of any gas described in clauses
(i) through (vi) of paragraph (13)(C)--
``(i) produced or imported by such covered entity during
that calendar year for sale or distribution in interstate
commerce; or
``(ii) released as fugitive emissions in the production of
fluorinated gas; and
``(C) for a natural gas local distribution company
described in paragraph (13)(J), greenhouse gases that would
be emitted from the combustion of the natural gas, and any
other gas meeting the specifications for commingling with
natural gas for purposes of delivery, that such entity
delivered during that calendar year to customers that are not
covered entities, assuming no capture and sequestration of
that greenhouse gas.
``(7) Biological sequestration; biologically sequestered.--
The terms `biological sequestration' and `biologically
sequestered' mean the removal of greenhouse gases from the
atmosphere by terrestrial biological means, such as by
growing plants, and the storage of those greenhouse gases in
plants or soils.
``(8) Capped emissions.--The term `capped emissions' means
greenhouse gas emissions to which section 722 applies,
including emissions from the combustion of natural gas,
petroleum-based or coal-based liquid fuel, petroleum coke, or
natural gas liquid to which section 722(b)(2) or (8) applies.
``(9) Capped source.--The term `capped source' means a
source that directly emits capped emissions.
``(10) Carbon dioxide equivalent.--The term `carbon dioxide
equivalent' means the unit of measure, expressed in metric
tons, of greenhouse gases as provided under section 711 or
712.
``(11) Carbon stock.--The term `carbon stock' means the
quantity of carbon contained in a biological reservoir or
system which has the capacity to accumulate or release
carbon.
``(12) Compensatory allowance.--The term `compensatory
allowance' means an allowance issued under section 721(f).
``(13) Covered entity.--The term `covered entity' means
each of the following:
``(A) Any electricity source.
``(B) Any stationary source that produces, and any entity
that (or any group of two or more affiliated entities that,
in the aggregate) imports, for sale or distribution in
interstate commerce in 2008 or any subsequent year,
petroleum-based or coal-based liquid fuel, petroleum coke, or
natural gas liquid, the combustion of which would emit 25,000
or more tons of carbon dioxide equivalent, as determined by
the Administrator.
``(C) Any stationary source that produces, and any entity
that (or any group of two or more affiliated entities that,
in the aggregate) imports, for sale or distribution in
interstate commerce, in bulk, or in products designated by
the Administrator, in 2008 or any subsequent year 25,000 or
more tons of carbon dioxide equivalent of--
``(i) fossil fuel-based carbon dioxide;
``(ii) nitrous oxide;
``(iii) perfluorocarbons;
``(iv) sulfur hexafluoride;
``(v) any other fluorinated gas, except for nitrogen
trifluoride, that is a greenhouse gas, as designated by the
Administrator under section 711; or
``(vi) any combination of greenhouse gases described in
clauses (i) through (v).
``(D) Any stationary source that has emitted 25,000 or more
tons of carbon dioxide equivalent of nitrogen trifluoride in
2008 or any subsequent year.
``(E) Any geologic sequestration site.
``(F) Any stationary source in the following industrial
sectors:
``(i) Adipic acid production.
``(ii) Primary aluminum production.
``(iii) Ammonia manufacturing.
``(iv) Cement production, excluding grinding-only
operations.
``(v) Hydrochlorofluorocarbon production.
``(vi) Lime manufacturing.
``(vii) Nitric acid production.
``(viii) Petroleum refining.
``(ix) Phosphoric acid production.
``(x) Silicon carbide production.
``(xi) Soda ash production.
``(xii) Titanium dioxide production.
``(xiii) Coal-based liquid or gaseous fuel production.
``(G) Any stationary source in the chemical or
petrochemical sector that, in 2008 or any subsequent year--
``(i) produces acrylonitrile, carbon black, ethylene,
ethylene dichloride, ethylene oxide, or methanol; or
``(ii) produces a chemical or petrochemical product if
producing that product results in annual combustion plus
process emissions of 25,000 or more tons of carbon dioxide
equivalent.
``(H) Any stationary source that--
``(i) is in one of the following industrial sectors:
ethanol production; ferroalloy production; fluorinated gas
production; food processing; glass production; hydrogen
production; iron and steel production; lead production; pulp
and paper manufacturing; and zinc production; and
``(ii) has emitted 25,000 or more tons of carbon dioxide
equivalent in 2008 or any subsequent year.
``(I) Any fossil fuel-fired combustion device (such as a
boiler) or grouping of such devices that--
``(i) is all or part of an industrial source not specified
in subparagraph (D), (F), (G), or (H); and
``(ii) has emitted 25,000 or more tons of carbon dioxide
equivalent in 2008 or any subsequent year.
``(J) Any natural gas local distribution company that (or
any group of 2 or more affiliated natural gas local
distribution companies that, in the aggregate), in 2008 or
any subsequent year, delivers 460,000,000 cubic feet or more
of natural gas, and any other gas meeting the specifications
for commingling with natural gas for purposes of delivery, to
customers that are not covered entities.
``(14) Crediting period.--The term `crediting period' means
the period with respect to which an offset project is
eligible to earn offset credits under part D, as determined
under section 734(c).
``(15) Designated representative.--The term `designated
representative' means, with respect to a covered entity, a
reporting entity (as defined in section 713), an offset
project developer, or any other entity receiving or holding
allowances, offset credits, or term offset credits under this
title, an individual authorized, through a certificate of
representation submitted to the Administrator by the owners
and operators or similar entity official, to represent the
owners and operators or similar entity official in all
matters pertaining to this title (including the holding,
transfer, or disposition of allowances or offset credits),
and to make all submissions to the Administrator under this
title.
``(16) Developing country.--The term `developing country'
means a country eligible to receive official development
assistance according to the income guidelines of the
Development Assistance Committee of the Organization for
Economic Cooperation and Development.
``(17) Domestic offset credit.--For purposes of part D, the
term `domestic offset credit' means an offset credit issued
under part D, other than an international offset credit. For
purposes of part C, the term means any offset credit issued
under the American Clean Energy and Security Act of 2009, or
the amendments made thereby. The term does not include a term
offset credit.
``(18) Electricity source.--The term `electricity source'
means a stationary source that includes one or more utility
units.
``(19) Emission.--The term `emission' means the release of
a greenhouse gas into the ambient air. Such term does not
include gases that are captured and geologically sequestered,
except to the extent that they are later released into the
atmosphere, in which case compliance must be demonstrated
pursuant to section 722(b)(5).
``(20) Emission allowance.--The term `emission allowance'
means an allowance established under section 721(a) or
section 726(g)(2) or (h)(1)(C).
``(21) Fair market value.--The term `fair market value'
means the average daily closing price on registered exchanges
or, if such a price is unavailable, the average price as
determined by the Administrator, during a specified time
period, of an emission allowance.
``(22) Federal land.--The term `Federal land' means land
that is owned by the United States, other than land held in
trust for an Indian or Indian tribe.
``(23) Fossil fuel.--The term `fossil fuel' means natural
gas, petroleum, or coal, or any form of solid, liquid, or
gaseous fuel derived from such material, including consumer
products that are derived from such materials and are
combusted.
``(24) Fossil fuel-fired.--The term `fossil fuel-fired'
means powered by combustion of fossil fuel, alone or in
combination with any other fuel, regardless of the percentage
of fossil fuel consumed.
``(25) Fugitive emissions.--The term `fugitive emissions'
means emissions from leaks, valves, joints, or other small
openings in pipes, ducts, or other equipment, or from vents.
``(26) Geologic sequestration; geologically sequestered.--
The terms `geologic sequestration' and `geologically
sequestered' mean the sequestration of greenhouse gases in
subsurface geologic formations for purposes of permanent
storage.
``(27) Geologic sequestration site.--The term `geologic
sequestration site' means a site where carbon dioxide is
geologically sequestered.

[[Page H7561]]

``(28) Greenhouse gas.--The term `greenhouse gas' means any
gas described in section 711(a) or designated under section
711, except to the extent that it is regulated under title
VI.
``(30) Hold.--The term `hold' means, with respect to an
allowance, offsets credit, or term offset credit, to have in
the appropriate account in the allowance tracking system
established under section 724(d), or submit to the
Administrator for recording in such account.
``(31) Industrial source.--The term `industrial source'
means any stationary source that--
``(A) is not an electricity source; and
``(B) is in--
``(i) the manufacturing sector (as defined in North
American Industrial Classification System codes 31, 32, and
33); or
``(ii) the natural gas processing or natural gas pipeline
transportation sector (as defined in North American
Industrial Classification System codes 211112 and 486210).
``(32) International emission allowance.--The term
`international emission allowance' means a tradable
authorization to emit 1 ton of carbon dioxide equivalent of
greenhouse gas that is issued by a national or supranational
foreign government pursuant to a qualifying international
program designated by the Administrator pursuant to section
728(a).
``(33) International offset credit.--The term
`international offset credit' means an offset credit issued
by the Administrator under section 743.
``(34) Leakage.--Except as provided in part F, the term
`leakage' means a significant increase in greenhouse gas
emissions, or significant decrease in sequestration, which is
caused by an offset project or activities under part E and
occurs outside the boundaries of the offset project or the
relevant program or project under part E.
``(35) Mineral sequestration.--The term `mineral
sequestration' means sequestration of carbon dioxide from the
atmosphere by capturing carbon dioxide into a permanent
mineral, such as the aqueous precipitation of carbonate
minerals that results in the storage of carbon dioxide in a
mineral form.
``(36) Natural gas liquid.--The term `natural gas liquid'
means ethane, butane, isobutane, natural gasoline, and
propane.
``(37) Natural gas local distribution company.--The term
`natural gas local distribution company' has the meaning
given the term `local distribution company' in section 2(17)
of the Natural Gas Policy Act of 1978 (15 U.S.C. 3301(17)).
``(38) Offset credit.--For purposes of this section and
part D, the term `offset credit' means an offset credit
issued under part D. For purposes of part C, the term means
any offset credit issued under the American Clean Energy and
Security Act of 2009, or the amendments made thereby. The
term does not include a term offset credit.
``(39) Offset project.--The term `offset project' means a
project or activity that reduces or avoids greenhouse gas
emissions, or sequesters greenhouse gases, and for which
offset credits are or may be issued under part D.
``(40) Offset project developer.--The term `offset project
developer' means the individual or entity designated as the
offset project developer in an offset project approval
petition under section 735(c)(1).
``(41) Petroleum.--The term `petroleum' includes crude oil,
tar sands, oil shale, and heavy oils.
``(42) Renewable biomass.--The term `renewable biomass'
means any of the following:
``(A) Materials, pre-commercial thinnings, or removed
invasive species from National Forest System land and public
lands (as defined in section 103 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1702)), including those
that are byproducts of preventive treatments (such as trees,
wood, brush, thinnings, chips, and slash), that are removed
as part of a federally recognized timber sale, or that are
removed to reduce hazardous fuels, to reduce or contain
disease or insect infestation, or to restore ecosystem
health, and that are--
``(i) not from components of the National Wilderness
Preservation System, Wilderness Study Areas, Inventoried
Roadless Areas, old growth stands, late-successional stands
(except for dead, severely damaged, or badly infested trees),
components of the National Landscape Conservation System,
National Monuments, National Conservation Areas, Designated
Primitive Areas, or Wild and Scenic Rivers corridors;
``(ii) harvested in environmentally sustainable quantities,
as determined by the appropriate Federal land manager; and
``(iii) harvested in accordance with Federal and State law,
and applicable land management plans.
``(B) Any organic matter that is available on a renewable
or recurring basis from non-Federal land or land belonging to
an Indian or Indian tribe that is held in trust by the United
States or subject to a restriction against alienation imposed
by the United States, including--
``(i) renewable plant material, including--

``(I) feed grains;
``(II) other agricultural commodities;
``(III) other plants and trees; and
``(IV) algae; and

``(ii) waste material, including--

``(I) crop residue;
``(II) other vegetative waste material (including wood
waste and wood residues);
``(III) animal waste and byproducts (including fats, oils,
greases, and manure);
``(IV) construction waste; and
``(V) food waste and yard waste.

``(C) Residues and byproducts from wood, pulp, or paper
products facilities.''.
``(43) Retire.--The term `retire', with respect to an
``allowance, offset credit, or term offset credit,
established or issued under the American Clean Energy and
Security Act of 2009 or the amendments made thereby, means to
disqualify such allowance or offset credit for any subsequent
use under this title, regardless of whether the use is a
sale, exchange, or submission of the allowance, offset
credit, or term offset credit to satisfy a compliance
obligation.
``(44) Reversal.--The term `reversal' means an intentional
or unintentional loss of sequestered greenhouse gases to the
atmosphere.
``(45) Sequestered and sequestration.--The terms
`sequestered' and `sequestration' mean the separation,
isolation, or removal of greenhouse gases from the
atmosphere, as determined by the Administrator. The terms
include biological, geologic, and mineral sequestration, but
do not include ocean fertilization techniques.
``(46) Stationary source.--The term `stationary source'
means any integrated operation comprising any plant,
building, structure, or stationary equipment, including
support buildings and equipment, that is located within one
or more contiguous or adjacent properties, is under common
control of the same person or persons, and emits or may emit
a greenhouse gas.
``(47) Strategic reserve allowance.--The term `strategic
reserve allowance' means an emission allowance reserved for,
transferred to, or deposited in the strategic reserve under
section 726.
``(48) Ton.--The term `ton' means metric ton.
``(49) Uncapped emissions.--The term `uncapped emissions'
means emissions of greenhouse gases emitted after December
31, 2011, that are not capped emissions.
``(50) United states greenhouse gas emissions.--The term
`United States greenhouse gas emissions' means the total
quantity of annual greenhouse gas emissions from the United
States, as calculated by the Administrator and reported to
the United Nations Framework Convention on Climate Change
Secretariat.
``(51) Utility unit.--The term `utility unit' means a
combustion device that, on January 1, 2009, or any date
thereafter, is fossil fuel-fired and serves a generator that
produces electricity for sale, unless such combustion device,
during the 12-month period starting the later of January 1,
2009, or the commencement of commercial operation and each
calendar year starting after such later date--
``(A) is part of an integrated cycle system that
cogenerates steam and electricity during normal operation and
that supplies one-third or less of its potential electric
output capacity and 25 MW or less of electrical output for
sale; or
``(B) combusts materials of which more than 95 percent is
municipal solid waste on a heat input basis.
``(52) Vintage year.--The term `vintage year' means the
calendar year for which an emission allowance is established
under section 721(a) or which is assigned to an emission
allowance under section 726(g)(3)(A), except that the vintage
year for a strategic reserve allowance shall be the year in
which such allowance is purchased at auction.''.

Subtitle B--Disposition of Allowances

SEC. 321. DISPOSITION OF ALLOWANCES FOR GLOBAL WARMING
POLLUTION REDUCTION PROGRAM.

Title VII of the Clean Air Act, as added by section 311 of
this Act, is amended by adding at the end the following part:

``PART H--DISPOSITION OF ALLOWANCES

``SEC. 781. ALLOCATION OF ALLOWANCES FOR SUPPLEMENTAL
REDUCTIONS.

``(a) In General.--The Administrator shall allocate for
each vintage year the following percentage of the emission
allowances established under section 721(a), for distribution
in accordance with part E:
``(1) For vintage years 2012 through 2025, 5 percent.
``(2) For vintage years 2026 through 2030, 3 percent.
``(3) For vintage years 2031 through 2050, 2 percent.
``(b) Adjustment.--The Administrator shall modify the
percentages set forth in subsection (a) as necessary to
ensure the achievement of the annual supplemental emission
reduction objective for 2020, and the cumulative reduction
objective through 2025, set forth in section 753(b)(1).
``(c) Carryover.--If the Administrator has not distributed
all of the allowances allocated pursuant to this section for
a given vintage year by the end of that year, all such
undistributed emission allowances shall, in accordance with
section 782(s), be exchanged for allowances from the
following vintage year and treated as part of the allocation
for supplemental reductions under this section for that later
vintage year.

``SEC. 782. ALLOCATION OF EMISSION ALLOWANCES.

``(a) Electricity Consumers.--(1) The Administrator shall
allocate emission allowances for the benefit of electricity
consumers, to be distributed in accordance with section
783(b), (c), and (d) in the following amounts:
``(A) For vintage years 2012 and 2013: 43.75 percent of the
emission allowances established for each year under section
721(a).

[[Page H7562]]

``(B) For vintage years 2014 and 2015: 38.89 percent of the
emission allowances established for each year under section
721(a).
``(C) For vintage years 2016 through 2025: 35.00 percent of
the emission allowances established for each year under
section 721(a).
``(D) For vintage year 2026: 28 percent of the emission
allowances established for that year under section 721(a).
``(E) For vintage year 2027: 21 percent of the emission
allowances established for that year under section 721(a).
``(F) For vintage year 2028: 14 percent of the emission
allowances established for that year under section 721(a).
``(G) For vintage year 2029: 7 percent of the emission
allowances established for that year under section 721(a).
``(2) The Administrator shall allocate emission allowances
for energy efficiency, renewable electricity, and low income
ratepayer assistance programs administered by small
electricity local distribution companies, to be distributed
in accordance with section 783(e) in the following amounts:
``(A) For vintage years 2012 through 2025: 0.5 percent of
the emission allowances established each year under section
721(a).
``(B) For vintage year 2026: 0.4 percent of the emission
allowances established for that year under section 721(a).
``(C) For vintage year 2027: 0.3 percent of the emission
allowances established for that year under section 721(a).
``(D) For vintage year 2028: 0.2 percent of the emission
allowances established for that year under section 721(a).
``(E) For vintage year 2029: 0.1 percent of the emission
allowances established for that year under section 721(a).
``(3) For vintage year 2012, the Administrator shall
allocate 0.35 percent of emission allowances established for
such year under section 721(a) to avoid disincentives to the
continued use of existing energy-efficient cogeneration
facilities at industrial parks, to be distributed in
accordance with section 783(f).
``(b) Natural Gas Consumers.--The Administrator shall
allocate emission allowances for the benefit of natural gas
consumers to be distributed in accordance with section 784 in
the following amounts:
``(1) For vintage years 2016 through 2025, 9 percent of the
emission allowances established for each year under section
721(a).
``(2) For vintage year 2026, 7.2 percent of the emission
allowances established for that year under section 721(a).
``(3) For vintage year 2027, 5.4 percent of the emission
allowances established for that year under section 721(a).
``(4) For vintage year 2028, 3.6 percent of the emission
allowances established for that year under section 721(a).
``(5) For vintage year 2029, 1.8 percent of the emission
allowances established for that year under section 721(a).
``(c) Home Heating Oil and Propane Consumers.--The
Administrator shall allocate emission allowances for the
benefit of home heating oil and propane consumers to be
distributed in accordance with section 785 in the following
amounts:
``(1) For vintage years 2012 and 2013, 1.875 percent of the
emission allowances established for each year under section
721(a).
``(2) For vintage years 2014 and 2015, 1.67 percent of the
emission allowances established for each year under section
721(a).
``(3) For vintage years 2016 through 2025, 1.5 percent of
the emission allowances established for each year under
section 721(a).
``(4) For vintage year 2026, 1.2 percent of the emission
allowances established for that year under section 721(a).
``(5) For vintage year 2027, 0.9 percent of the emission
allowances established for that year under section 721(a).
``(6) For vintage year 2028, 0.6 percent of the emission
allowances established for that year under section 721(a).
``(7) For vintage year 2029, 0.3 percent of the emission
allowances established for that year under section 721(a).
``(d) Low Income Consumers.--For each vintage year starting
in 2012, the Administrator shall auction, pursuant to section
791, 15 percent of the emission allowances established for
each year under section 721(a), with the proceeds used for
the benefit of low income consumers to fund the program set
forth in subtitle C of title IV of American Clean Energy and
Security Act of 2009 and the amendments made thereby.
``(e) Trade-vulnerable Industries.--
``(1) In general.--The Administrator shall allocate
emission allowances to energy-intensive, trade-exposed
entities, to be distributed in accordance with section 765,
in the following amounts:
``(A) For vintage years 2012 and 2013, up to 2.0 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage year 2014, up to 15 percent of the
emission allowances established for that year under section
721(a).
``(C) For vintage year 2015, up to the product of--
``(i) the amount specified in paragraph (2); multiplied by
``(ii) the quantity of emission allowances established for
2015 under section 721(a) divided by the quantity of emission
allowances established for 2014 under section 721(a).
``(D) For vintage year 2016, up to the product of--
``(i) the amount specified in paragraph (3); multiplied by
``(ii) the quantity of emission allowances established for
2015 under section 721(a) divided by the quantity of emission
allowances established for 2014 under section 721(a).
``(E) For vintage years 2017 through 2025, up to the
product of--
``(i) the amount specified in paragraph (4); multiplied by
``(ii) the quantity of emission allowances established for
that year under section 721(a) divided by the quantity of
emission allowances established for 2016 under section
721(a).
``(F) For vintage years 2026 through 2050, up to the
product of the amount specified in paragraph (4)--
``(i) multiplied by the quantity of emission allowances
established for the applicable year during 2026 through 2050
under section 721(a) divided by the quantity of emission
allowances established for 2016 under section 721(a); and
``(ii) multiplied by a factor that shall equal 90 percent
for 2026 and decline 10 percent for each year thereafter
until reaching zero, except that, if the President modifies a
percentage for a year under subparagraph (A) of section
767(c)(3), the highest percentage the President applies for
any sector under that subparagraph for that year (not
exceeding 100 percent) shall be used for that year instead of
the factor otherwise specified in this clause.
``(2) Carryover.--After the Administrator distributes
emission allowances pursuant to section 765 for any given
vintage year, any emission allowances allocated to energy-
intensive, trade-exposed entities pursuant to this subsection
that have not been so distributed shall, in accordance with
subsection (s), be exchanged for allowances from the
following vintage year and treated as part of the allocation
to such entities for that later vintage year.
``(f) Deployment of Carbon Capture and Sequestration
Technology.--
``(1) Annual allocation.--The Administrator shall allocate
emission allowances for the deployment of carbon capture and
sequestration technology to be distributed in accordance with
section 786 in the following amounts:
``(A) For vintage years 2014 through 2017, 1.75 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage years 2018 and 2019, 4.75 percent of the
emission allowances established for each year under section
721(a).
``(C) For vintage years 2020 through 2050, 5 percent of the
emission allowances established for each year under section
721(a).
``(2) Carryover.--If the Administrator has not distributed
all of the allowances allocated pursuant to this subsection
for a given vintage year by the end of that year, all such
undistributed emission allowances shall, in accordance with
subsection (s), be exchanged for allowances from the
following vintage year and treated as part of the allocation
for the deployment of carbon capture and sequestration
technology under this subsection for that later vintage year.
``(g) Investment in Energy Efficiency and Renewable
Energy.--The Administrator shall allocate emission allowances
to invest in energy efficiency and renewable energy as
follows:
``(1) To be distributed in accordance with section 132 of
the American Clean Energy and Security Act of 2009 in the
following amounts:
``(A) For vintage years 2012 through 2015, 9.5 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage years 2016 through 2017, 6.5 percent of
the emission allowances established for each year under
section 721(a).
``(C) For vintage years 2018 through 2021, 5.5 percent of
the emission allowances established for each year under
section 721(a).
``(D) For vintage years 2022 through 2025, 1.0 percent of
the emission allowances established for each year under
section 721(a).
``(E) For vintage years 2026 through 2050, 4.5 percent of
the emission allowances established for each year under
section 721(a).
``(F) At the same time allowances are distributed under
subparagraph (D) for each of the vintage years 2022 through
2025, 3.55 percent of emission allowances established under
section 721(a) for the vintage year four years after that
vintage year shall also be distributed (which shall be in
addition to the emission allowances distributed under
subparagraph (E)).
``(2) To be distributed in accordance with section 304 of
the Energy Conservation and Production Act, as amended by
section 201 of the American Clean Energy and Security Act of
2009, for each vintage year from 2012 through 2050, 0.5
percent of emission allowances established for that year
under section 721(a).
``(3) To be distributed among the States in accordance with
the formula in section 132(b) of the American Clean Energy
and Security Act of 2009 and to be used exclusively for the
purposes of section 202 of the American Clean Energy and
Security Act of 2009 in the following amounts:
``(A) For vintage years 2012 through 2017, 0.05 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage years 2018 through 2050, 0.03 percent of
the emission allowances established for each year under
section 721(a).
``(h) Energy Research and Development.--
``(1) Energy innovation hubs.--For vintage years 2012
through 2050, the Administrator shall allocate 0.45 percent
of the emission allowances established under section 721(a)
to

[[Page H7563]]

be distributed to Energy Innovation Hubs in accordance with
section 171 of the American Clean Energy and Security Act of
2009.
``(2) Advanced energy research.--For vintage years 2012
through 2050, the Administrator shall allocate 1.05 percent
of the emission allowances established under section 721(a)
for the Advanced Research Project Agency-Energy to be
distributed in accordance with section 172 of the American
Clean Energy and Security Act of 2009.
``(i) Investment in Clean Vehicle Technology.--The
Administrator shall allocate emission allowances to invest in
the development and deployment of clean vehicles, to be
distributed in accordance with section 124 of the American
Clean Energy and Security Act of 2009 in the following
amounts:
``(1) For vintage years 2012 through 2017, 3 percent of the
emission allowances established for each year under section
721(a).
``(2) For vintage years 2018 through 2025, 1 percent of the
emission allowances established for each year under section
721(a).
``(j) Domestic Fuel Production.--For vintage years 2014
through 2026, the Administrator shall allocate and distribute
according to section 787--
``(1) 2 percent of the emission allowances established for
each year under section 721(a) to domestic petroleum
refineries that are covered entities pursuant to section
700(13)(F)(viii), including small business refiners; and
``(2) an additional 0.25 percent of the emissions
allowances established for each year under section 721(a) to
small business refiners that are covered entities pursuant to
section 700(13)(F)(viii).
``(k) Investment in Workers.--The Administrator shall
auction pursuant to section 791 emission allowances for the
benefit of workers pursuant to part 2 of subtitle B of the
American Clean Energy and Security Act of 2009 in the
following amounts, and shall deposit into the Climate Change
Worker Adjustment Assistance Fund established pursuant to
section 793, and report to the Secretary of Labor on, the
proceeds from the sale of these allowances:
``(A) For vintage years 2012 through 2021, 0.5 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage years 2022 through 2050, 1.0 percent of
the emission allowances established for each year under
section 721(a).
All amounts deposited into the fund shall be available to the
Secretary of Labor until expended to carry out part 2 of
subtitle B of title IV of the American Clean Energy and
Security Act of 2009. Of the amounts deposited, not more than
$10,000,000 shall be available to the Secretary of Labor for
Federal administration costs of such part 2 each fiscal year.
``(2) The Administrator shall auction, pursuant to section
791, 0.75 percent of the emission allowances established for
each of vintage years 2012 and 2013 under section 721(a), and
shall deposit the proceeds in the Energy Efficiency and
Renewable Energy Worker Training Fund established by section
422 of the American Clean Energy and Security Act of 2009.
``(l) Domestic Adaptation.--The Administrator shall
allocate emission allowances for domestic adaptation as
follows:
``(1) To be distributed in accordance with section 453 of
the American Clean Energy and Security Act of 2009 in the
following amounts:
``(A) For vintage years 2012 through 2021, 0.9 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage years 2022 through 2026, 1.9 percent of
the emission allowances established for each year under
section 721(a).
``(C) For vintage years 2027 through 2050, 3.9 percent of
the emission allowances established for each year under
section 721(a).
``(2) For vintage year 2012 and thereafter, the
Administrator shall auction, pursuant to section 791, 0.1
percent of the emission allowances established for each year
under section 721(a), and shall deposit the proceeds in the
Climate Change Health Protection and Promotion Fund
established by section 467 of the American Clean Energy and
Security Act of 2009.
``(m) Wildlife and Natural Resource Adaptation.--The
Administrator shall allocate emission allowances for wildlife
and natural resource adaptation as follows:
``(1) To be distributed to State agencies in accordance
with section 480(a) of the American Clean Energy and Security
Act of 2009 in the following amounts:
``(A) For vintage years 2012 through 2021, 0.385 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage years 2022 through 2026, 0.77 percent of
the emission allowances established for each year under
section 721(a).
``(C) For vintage years 2027 through 2050, 1.54 percent of
the emission allowances established for each year under
section 721(a).
``(2) To be auctioned pursuant to section 791, with the
proceeds to be deposited in the Natural Resources Climate
Change Adaptation Fund established pursuant to section
480(b), in the following amounts:
``(A) For vintage years 2012 through 2021, 0.615 percent of
the emission allowances established for each year under
section 721(a).
``(B) For vintage years 2022 through 2026, 1.23 percent of
the emission allowances established for each year under
section 721(a).
``(C) For vintage years 2027 through 2050, 2.46 percent of
the emission allowances established for each year under
section 721(a).
``(n) International Adaptation.--The Administrator shall
allocate emission allowances for international adaptation to
be distributed in accordance with part 2 of subtitle E of
title IV of the American Clean Energy and Security Act of
2009 in the following amounts:
``(1) For vintage years 2012 through 2021, 1.0 percent of
the emission allowances established for each year under
section 721(a).
``(2) For vintage years 2022 through 2026, 2.0 percent of
the emission allowances established for each year under
section 721(a).
``(3) For vintage years 2027 through 2050, 4.0 percent of
the emission allowances established for each year under
section 721(a).
``(o) International Clean Technology Deployment.--The
Administrator shall allocate emission allowances for
international clean technology deployment for distribution in
accordance with subtitle D of title IV of the American Clean
Energy and Security Act of 2009 in the following amounts:
``(1) For vintage years 2012 through 2021, 1.0 percent of
the emission allowances established for each year under
section 721(a).
``(2) For vintage years 2022 through 2026, 2.0 percent of
the emission allowances established for each year under
section 721(a).
``(3) For vintage years 2027 through 2050, 4.0 percent of
the emission allowances established for each year under
section 721(a).
``(p) Release of Future Allowances.--The Administrator
shall make future year allowances available by auctioning
allowances, pursuant to section 791, in the following
amounts:
``(1) In each of calendar years 2014 through 2019, a string
of 0.70 billion allowances with vintage years 12 to 17 years
after the year of the auction, with an equal number of
allowances from each vintage year in the string.
``(2) In each of calendar years 2020 through 2025, a string
of 0.50 billion allowances with vintage years 12 to 17 years
after the year of the auction, with an equal number of
allowances from each vintage year in the string.
``(3) In each of calendar years 2026 through 2030, a string
of 0.3 billion allowances with vintage years 12 to 17 years
after the year of the auction, with an equal number of
allowances from each vintage year in the string.
``(q) Deficit Reduction.--
``(1) For each of vintage years 2012 through 2025, any
allowances not allocated for distribution or auction pursuant
to section 781 or subsections (s) and (t) of this section, or
disbursed pursuant to section 790, shall be auctioned by the
Administrator pursuant to section 791 and the proceeds shall
be deposited into the Treasury.
``(2) Unless otherwise specified, any allowances allocated
pursuant to subsections (s) and (t) and not distributed by
March 31 of the calendar year following the allowance's
vintage year, shall be auctioned by the Administrator and the
proceeds shall be deposited into the Treasury.
``(3) For auctions conducted through calendar year 2020
pursuant to subsection (p), the auction proceeds shall be
deposited into the Treasury.
``(r) Climate Change Consumer Refund.--
``(1) For each of vintage years 2026 through 2050, the
Administrator shall auction the following allowances
established under section 721(a) and deposit the proceeds
into the Climate Change Consumer Refund Account:
``(A) Any allowances not allocated for distribution or
auction pursuant to section 781 or subsections (a) through
(p) of this section, or disbursed pursuant to section 790.
``(B) Unless otherwise specified, any allowances allocated
pursuant to subsections (a) through (o) and not distributed
by March 31 of the calendar year following the allowance's
vintage year.
``(2) For auctions conducted pursuant to subsection (p) in
calendar years 2021 and thereafter, the Administrator shall
place the proceeds from the sales of the these allowances
into the Climate Change Consumer Refund Account.
``(3) Funds deposited into the Climate Change Consumer
Refund Account shall be used as specified in section 789 and
shall be available for expenditure, without further
appropriation or fiscal year limitation.
``(s) Treatment of Carryover Allowances.--
``(1) In general.--If there are undistributed allowances
from a vintage year for supplemental reductions pursuant to
section 781(c), energy-intensive, trade-exposed industries
pursuant to subsection (e)(2) of this section, deployment of
carbon capture and sequestration technology pursuant to
subsection (f)(2) of this section, or supplemental
agriculture and renewable energy pursuant to subsection
(u)(2) of this section, the Administrator shall--
``(A) use the undistributed allowances to increase for the
same vintage year--
``(i) the allocation of allowances to be auctioned for
deficit reduction pursuant to subsection (q) or for consumer
refunds pursuant to subsection (r);
``(ii) the allocation of allowances to be auctioned for low
income consumers pursuant to subsection (d); or
``(iii) a combination of both; and
``(B) except as provided in paragraph (2)--
``(i) decrease by the same amount for the following vintage
year the allocation for the purpose for which the allocation
was increased pursuant to subparagraph (A); and
``(ii) increase by the same amount for the following
vintage year the allocation for the purpose for which the
undistributed allowances were originally allocated.

[[Page H7564]]

``(2) Excess undistributed allowances.--(A) For each
vintage year for which this subsection applies, the
Administrator shall determine whether--
``(i) the total quantity of undistributed allowances for
that vintage year that were allocated pursuant to section
781(c), and subsections (e)(2), (f)(2), and (u)(2) of this
section, exceeds
``(ii) the total quantity of allowances allocated pursuant
to subsection (d), (q) and (r) for the following vintage
year, decreased by the quantity of allowances for that
following vintage year set aside for the reserve established
by section 791(f).
``(B) If the Administrator determines under subparagraph
(A) that the quantity described in subparagraph (A)(i)
exceeds the quantity described in subparagraph (A)(ii),
paragraph (1)(B)(ii) of this subsection shall not apply.
Instead, for each purpose described in section 781(c), or
subsections (e)(2), (f)(2), and (u)(2) of this section for
which undistributed allowances for a given vintage year were
allocated, the Administrator shall increase the allocation
for the following vintage year by the amount that is the
product of--
``(i) the number of undistributed allowances for that
purpose, times
``(ii) the quantity described in subparagraph (A)(ii)
divided by the quantity described in subparagraph (A)(i).
``(t) Compensation for Early Actors.--For vintage year
2012, the Administrator shall allocate for compensation for
early actors 1 percent of emission allowances established
under section 721(a), to be distributed in accordance with
section 795 of the American Clean Energy and Security Act of
2009.
``(u) Supplemental Agriculture and Renewable Energy.--
``(1) In general.--For vintage years 2012 through 2016, the
Administrator shall allocate 0.28 percent of emission
allowances established under section 721(a), to be
distributed in accordance with section 788 of the American
Clean Energy and Security Act of 2009.
``(2) Carryover.--After the Administrator distributes
emission allowances pursuant to section 788 for any given
vintage year, any emission allowances allocated to
supplemental agriculture and renewable energy pursuant to
this subsection that have not been so distributed shall, in
accordance with subsection (s), be exchanged for allowances
from the following vintage year and treated as part of the
allocation to such entities for that later vintage year.

``SEC. 783. ELECTRICITY CONSUMERS.

``(a) Definitions.--For purposes of this section:
``(1) Coal-fueled unit.--The term `coal-fueled unit' means
a utility unit that derives at least 85 percent of its heat
input from coal, petroleum coke, or any combination of these
2 fuels.
``(2) Electricity local distribution company.--The term
`electricity local distribution company' means an electric
utility--
``(A) that has a legal, regulatory, or contractual
obligation to deliver electricity directly to retail
consumers in the United States, regardless of whether that
entity or another entity sells the electricity as a commodity
to those retail consumers; and
``(B) the retail rates of which, except in the case of an
electric cooperative, are regulated or set by--
``(i) a State regulatory authority;
``(ii) a State or political subdivision thereof (or an
agency or instrumentality of, or corporation wholly owned by,
either of the foregoing); or
``(iii) an Indian tribe pursuant to tribal law.
``(3) Electricity savings; renewable energy resource.--The
terms `electricity savings' and `renewable energy resource'
shall have the meaning given those terms in section 610 of
the Public Utility Regulatory Policies Act of 1978 (as added
by section 101 of the American Clean Energy and Security Act
of 2009).
``(4) Independent power production facility.--The term
`independent power production facility' means a facility--
``(A) that is used for the generation of electric energy,
at least 80 percent of which is sold at wholesale; and
``(B) the sales of the output of which are not subject to
retail rate regulation or setting of retail rates by--
``(i) a State regulatory authority;
``(ii) a State or political subdivision thereof (or an
agency or instrumentality of, or corporation wholly owned by,
either of the foregoing);
``(iii) an electric cooperative; or
``(iv) an Indian tribe pursuant to tribal law.
``(5) Long-term contract generator.--The term `long-term
contract generator' means a qualifying small power production
facility, a qualifying cogeneration facility ), an
independent power production facility, or a facility for the
production of electric energy for sale to others that is
owned and operated by an electric cooperative that is--
``(A) a covered entity; and
``(B) as of the date of enactment of this title--
``(i) a facility with 1 or more sales or tolling agreements
executed before March 1, 2007, that govern the facility's
electricity sales and provide for sales at a price (whether a
fixed price or a price formula) for electricity that does not
allow for recovery of the costs of compliance with the
limitation on greenhouse gas emissions under this title,
provided that such agreements are not between entities that
are affiliates of one another; or
``(ii) a facility consisting of 1 or more cogeneration
units that makes useful thermal energy available to an
industrial or commercial process with 1 or more sales
agreements executed before March 1, 2007, that govern the
facility's useful thermal energy sales and provide for sales
at a price (whether a fixed price or price formula) for
useful thermal energy that does not allow for recovery of the
costs of compliance with the limitation on greenhouse gas
emissions under this title, provided that such agreements are
not between entities that are affiliates of one another.
``(6) Merchant coal unit.--The term `merchant coal unit'
means a coal-fueled unit that--
``(A) is or is part of a covered entity;
``(B) is not owned by a Federal, State, or regional agency
or power authority; and
``(C) generates electricity solely for sale to others,
provided that all or a portion of such sales are made by a
separate legal entity that--
``(i) has a full or partial ownership or leasehold interest
in the unit, as certified in accordance with such
requirements as the Administrator shall prescribe; and
``(ii) is not subject to retail rate regulation or setting
of retail rates by--

``(I) a State regulatory authority;
``(II) a State or political subdivision thereof (or an
agency or instrumentality of, or corporation wholly owned by,
either of the foregoing);
``(III) an electric cooperative; or
``(IV) an Indian tribe pursuant to tribal law.

``(7) Merchant coal unit sales.--The term `merchant coal
unit sales' means sales to others of electricity generated by
a merchant coal unit that are made by the owner or
leaseholder described in paragraph (6)(C).
``(8) New coal-fueled unit.--The term `new coal-fueled
unit' means a coal-fueled unit that commenced operation on or
after January 1, 2009 and before January 1, 2013.
``(9) New merchant coal unit.--The term `new merchant coal
unit' means a merchant coal unit--
``(A) that commenced operation on or after January 1, 2009
and before January 1, 2013; and
``(B) the actual, on-site construction of which commenced
prior to January 1, 2009.
``(10) Qualifying small power production facility;
qualifying cogeneration facility.--The terms `qualifying
small power production facility' and `qualifying cogeneration
facility' have the meanings given those terms in section
3(17)(C) and 3(18)(B) of the Federal Power Act (16 U.S.C.
796(17)(C) and 796(18)(B)).
``(11) Small ldc.--The term `small LDC' means, for any
given year, an electricity local distribution company that
delivered less than 4,000,000 megawatt hours of electric
energy directly to retail consumers in the preceding year.
``(12) State regulatory authority.--The term `State
regulatory authority' has the meaning given that term in
section 3(17) of the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2602(17)).
``(13) Useful thermal energy.--The term `useful thermal
energy'has the meaning given that term in section 371(7) of
the Energy Policy and Conservation Act (42 U.S.C. 6341(7)).
``(b) Electricity Local Distribution Companies.--
``(1) Distribution of allowances.--Not later than September
30 of 2011 and each calendar year thereafter through 2028,
the Administrator shall distribute to electricity local
distribution companies for the benefit of retail ratepayers
the quantity of emission allowances allocated for the
following vintage year pursuant to section 782(a)(1).
Notwithstanding the preceding sentence, the Administrator
shall withhold from distribution under this subsection a
quantity of emission allowances equal to the lesser of 14.3
percent of the quantity of emission allowances allocated
under section 782(a)(1) for the relevant vintage year, or 105
percent of the emission allowances for the relevant vintage
year that the Administrator anticipates will be distributed
to merchant coal units and to long-term contract generators,
respectively, under subsections (c) and (d). If not required
by subsections (c) and (d) to distribute all of these
reserved allowances, the Administrator shall distribute any
remaining emission allowances to electricity local
distribution companies in accordance with this subsection.
``(2) Distribution based on emissions.--
``(A) In general.--For each vintage year, 50 percent of the
emission allowances available for distribution under
paragraph (1), after reserving allowances for distribution
under subsections (c) and (d), shall be distributed by the
Administrator among individual electricity local distribution
companies ratably based on the annual average carbon dioxide
emissions attributable to generation of electricity delivered
at retail by each such company during the base period
determined under subparagraph (B).
``(B) Base period.--
``(i) Vintage years 2012 and 2013.--For vintage years 2012
and 2013, an electricity local distribution company's base
period shall be--

``(I) calendar years 2006 through 2008; or
``(II) any 3 consecutive calendar years between 1999 and
2008, inclusive, that such company selects, provided that the
company timely informs the Administrator of such selection.

[[Page H7565]]

``(ii) Vintage years 2014 and thereafter.--For vintage
years 2014 and thereafter, the base period shall be--

``(I) the base period selected under clause (i); or
``(II) calendar year 2012, in the case of an electricity
local distribution company that owns, co-owns, or purchases
through a power purchase agreement (whether directly or
through a cooperative arrangement) a substantial portion of
the electricity generated by a new coal-fueled unit, provided
that such company timely informs the Administrator of its
election to use 2012 as its base period.

``(C) Determination of emissions.--
``(i) Determination for 1999-2008.--As part of the
regulations promulgated pursuant to subsection, the
Administrator, after consultation with the Energy Information
Administration, shall determine the average amount of carbon
dioxide emissions attributable to generation of electricity
delivered at retail by each electricity local distribution
company for each of the years 1999 through 2008, taking into
account entities' electricity generation, electricity
purchases, and electricity sales. In the case of any
electricity local distribution company that owns, co-owns, or
purchases through a power purchase agreement (whether
directly or through a cooperative arrangement) a substantial
portion of the electricity generated by, a coal-fueled unit
that commenced operation after January 1, 2006 and before
December 31, 2008, the Administrator shall adjust the
emissions attributable to such company's retail deliveries in
calendar years 2006 through 2008 to reflect the emissions
that would have occurred if the relevant unit were in
operation during the entirety of such 3-year period.
``(ii) Adjustments for new coal-fueled units.--

``(I) Vintage years 2012 and 2013.--For purposes of
emission allowance distributions for vintage years 2012 and
2013, in the case of any electricity local distribution
company that owns, co-owns, or purchases through a power
purchase agreement (whether directly or through a cooperative
arrangement) a substantial portion of the electricity
generated by, a new coal-fueled unit, the Administrator shall
adjust the emissions attributable to such company's retail
deliveries in the applicable base period to reflect the
emissions that would have occurred if the new coal-fueled
unit were in operation during such period.
``(II) Vintage year 2014 and thereafter.--Not later than
necessary for use in making emission allowance distributions
under this subsection for vintage year 2014, the
Administrator shall, for any electricity local distribution
company that owns, co-owns, or purchases through a power
purchase agreement (whether directly or through a cooperative
arrangement) a substantial portion of the electricity
generated by a new coal-fueled unit and has selected calendar
year 2012 as its base period pursuant to subparagraph
(B)(ii)(II), determine the amount of carbon dioxide emissions
attributable to generation of electricity delivered at retail
by such company in calendar year 2012. If the relevant new
coal-fueled unit was not yet operational by January 1, 2012,
the Administrator shall adjust such determination to reflect
the emissions that would have occurred if such unit were in
operation for all of calendar year 2012.

``(iii) Requirements.--Determinations under this paragraph
shall be as precise as practicable, taking into account the
nature of data currently available and the nature of markets
and regulation in effect in various regions of the country.
The following requirements shall apply to such
determinations:

``(I) The Administrator shall determine the amount of
fossil fuel-based electricity delivered at retail by each
electricity local distribution company, and shall use
appropriate emission factors to calculate carbon dioxide
emissions associated with the generation of such electricity.
``(II) Where it is not practical to determine the precise
fuel mix for the electricity delivered at retail by an
individual electricity local distribution company, the
Administrator may use the best available data, including
average data on a regional basis with reference to Regional
Transmission Organizations or regional entities (as that term
is defined in section 215(a)(7) of the Federal Power Act (16
U.S.C. 824o(a)(7)), to estimate fuel mix and emissions.
Different methodologies may be applied in different regions
if appropriate to obtain the most accurate estimate.

``(3) Distribution based on deliveries.--
``(A) Initial formula.--Except as provided in subparagraph
(B), for each vintage year, the Administrator shall
distribute 50 percent of the emission allowances available
for distribution under paragraph (1), after reserving
allowances for distribution under subsections (c) and (d),
among individual electricity local distribution companies
ratably based on each electricity local distribution
company's annual average retail electricity deliveries for
calendar years 2006 through 2008, unless the owner or
operator of the company selects 3 other consecutive years
between 1999 and 2008, inclusive, and timely notifies the
Administrator of its selection.
``(B) Updating.--Prior to distributing 2015 vintage year
emission allowances under this paragraph and at 3-year
intervals thereafter, the Administrator shall update the
distribution formula under this paragraph to reflect changes
in each electricity local distribution company's service
territory since the most recent formula was established. For
each successive 3-year period, the Administrator shall
distribute allowances ratably among individual electricity
local distribution companies based on the product of--
``(i) each electricity local distribution company's average
annual deliveries per customer during calendar years 2006
through 2008, or during the 3 alternative consecutive years
selected by such company under subparagraph (A); and
``(ii) the number of customers of such electricity local
distribution company in the most recent year in which the
formula is updated under this subparagraph.
``(4) Prohibition against excess distributions.--The
regulations promulgated under subsection shall ensure that,
notwithstanding paragraphs (2) and (3), no electricity local
distribution company shall receive a greater quantity of
allowances under this subsection than is necessary to offset
any increased electricity costs to such company's retail
ratepayers, including increased costs attributable to
purchased power costs, due to enactment of this title. Any
emission allowances withheld from distribution to an
electricity local distribution company pursuant to this
paragraph shall be distributed among all remaining
electricity local distribution companies ratably based on
emissions pursuant to paragraph (2).
``(5) Use of allowances.--
``(A) Ratepayer benefit.--Emission allowances distributed
to an electricity local distribution company under this
subsection shall be used exclusively for the benefit of
retail ratepayers of such electricity local distribution
company and may not be used to support electricity sales or
deliveries to entities or persons other than such ratepayers.
``(B) Ratepayer classes.--In using emission allowances
distributed under this subsection for the benefit of
ratepayers, an electricity local distribution company shall
ensure that ratepayer benefits are distributed--
``(i) among ratepayer classes ratably based on electricity
deliveries to each class; and
``(ii) equitably among individual ratepayers within each
ratepayer class, including entities that receive emission
allowances pursuant to part F.
``(C) Limitation.--In general, an electricity local
distribution company shall not use the value of emission
allowances distributed under this subsection to provide to
any ratepayer a rebate that is based solely on the quantity
of electricity delivered to such ratepayer. To the extent an
electricity local distribution company uses the value of
emission allowances distributed under this subsection to
provide rebates, it shall, to the maximum extent practicable,
provide such rebates with regard to the fixed portion of
ratepayers' bills or as a fixed credit or rebate on
electricity bills.
``(D) Industrial ratepayers.--Notwithstanding subparagraph
(C), if compliance with the requirements of this title
results (or would otherwise result) in an increase in
electricity costs for industrial retail ratepayers of any
given electricity local distribution company (including
entities that receive emission allowances pursuant to part
F), such electricity local distribution company--
``(i) shall pass through to industrial retail ratepayers
their ratable share (based on deliveries to each ratepayer
class) of the value of the emission allowances distributed to
such company under this subsection, to reduce electricity
cost impacts on such ratepayers; and
``(ii) may do so based on the quantity of electricity
delivered to individual industrial retail ratepayers.
``(E) Guidelines.--As part of the regulations promulgated
under subsection, the Administrator shall, after consultation
with State regulatory authorities, prescribe guidelines for
the implementation of the requirements of this paragraph.
Such guidelines shall include requirements to ensure that
industrial retail ratepayers (including entities that receive
emission allowances under part F) receive their ratable share
of the value of the allowances distributed to each
electricity local distribution company pursuant to this
subsection.
``(6) Regulatory proceedings.--
``(A) Requirement.--No electricity local distribution
company shall be eligible to receive emission allowances
under this subsection or subsection (e) unless the State
regulatory authority with authority over such company's
retail rates, or the entity with authority to regulate or set
retail electricity rates of an electricity local distribution
company not regulated by a State regulatory authority, has--
``(i) after public notice and an opportunity for comment,
promulgated a regulation or completed a rate proceeding (or
the equivalent, in the case of a ratemaking entity other than
a State regulatory authority) that provides for the full
implementation of the requirements of paragraph (5) of this
subsection and the requirements of subsection (e); and
``(ii) made available to the Administrator and the public a
report describing, in adequate detail, the manner in which
the requirements of paragraph (5) and the requirements of
subsection (e) will be implemented.
``(B) Updating.--The Administrator shall require, as a
condition of continued receipt of emission allowances under
this subsection by an electricity local distribution company,
that a new regulation be promulgated or rate proceeding be
completed , after public notice

[[Page H7566]]

and an opportunity for comment, and a new report be made
available to the Administrator and the public, pursuant to
subparagraph (A), not less frequently than every 5 years.
``(7) Plans and reporting.--
``(A) Regulations.--As part of the regulations promulgated
under subsection, the Administrator shall prescribe
requirements governing plans and reports to be submitted in
accordance with this paragraph.
``(B) Plans.--Not later than April 30 of 2011 and every 5
years thereafter through 2026, each electricity local
distribution company shall submit to the Administrator a
plan, approved by the State regulatory authority or other
entity charged with regulating tor setting the retail rates
of such company, describing such company's plans for the
disposition of the value of emission allowances to be
received pursuant to this subsection and subsection (e), in
accordance with the requirements of this subsection and
subsection (e). Such plan shall include a description of the
manner in which the company will provide to industrial retail
ratepayers (including entities that receive emission
allowances under part F) their ratable share of the value of
such allowances.
``(C) Reports.--Not later than June 30 of 2013 and each
calendar year thereafter through 2031, each electricity local
distribution company shall submit a report to the
Administrator, and to the relevant State regulatory authority
or other entity charged with regulating or setting the retail
electricity rates of such company, describing the disposition
of the value of any emission allowances received by such
company in the prior calendar year pursuant to this
subsection and subsection (e), including--
``(i) a description of sales, transfer, exchange, or use by
the company for compliance with obligations under this title,
of any such emission allowances;
``(ii) the monetary value received by the company, whether
in money or in some other form, from the sale, transfer, or
exchange of any such emission allowances;
``(iii) the manner in which the company's disposition of
any such emission allowances complies with the requirements
of this subsection and of subsection (e), including each of
the requirements of paragraph (5) of this subsection,
including the requirement that industrial retail ratepayers
(including entities that receive emission allowances under
part F) receive their ratable share of the value of such
allowances; and
``(iv) such other information as the Administrator may
require pursuant to subparagraph (A).
``(D) Publication.--The Administrator shall make available
to the public all plans and reports submitted under this
subsection, including by publishing such plans and reports on
the Internet.
``(8) Audits.--Each year, the Administrator shall audit a
representative sample of electricity local distribution
companies to ensure that emission allowances distributed
under this subsection have been used exclusively for the
benefit of retail ratepayers and that such companies are
complying with the requirements of this subsection and of
subsection (e), including the requirement that industrial
retail ratepayers (including entities that receive emission
allowances under part F) receive their ratable share of the
value of such allowances. In selecting companies for audit,
the Administrator shall take into account any credible
evidence of noncompliance with such requirements. The
Administrator shall make available to the public a report
describing the results of each such audit, including by
publishing such report on the Internet.
``(9) Enforcement.--A violation of any requirement of this
subsection or of subsection (e) shall be a violation of this
Act. Each emission allowance the value of which is used in
violation of the requirements of this subsection or of
subsection (e) shall be a separate violation.
``(c) Merchant Coal Units.--
``(1) Qualifying emissions.--The qualifying emissions for a
merchant coal unit for a given calendar year shall be the
product of the number of megawatt hours of merchant coal unit
sales generated by such unit in such calendar year and the
average carbon dioxide emissions per megawatt hour generated
by such unit during the base period under paragraph (2),
provided that the number of megawatt hours in a given
calendar year for purposes of such calculation shall be
reduced in proportion to the portion of such unit's carbon
dioxide emissions that are either--
``(A) captured and sequestered in such calendar year; or
``(B) attributable to the combustion or gasification of
biomass, to the extent that the owner or operator of the unit
is not required to hold emission allowances for such
emissions.
``(2) Base period.--For purposes of this subsection, the
base period for a merchant coal unit shall be--
``(A) calendar years 2006 through 2008; or
``(B) in the case of a new merchant coal unit--
``(i) the first full calendar year of operation of such
unit, if such unit commences operation before January 1,
2012;
``(ii) calendar year 2012, if such unit commences operation
on or after January 1, 2012.
``(iii) calendar year 2013, if such unit commences
operation on or after October 1, 2012, and before January 1,
2013.
``(3) Phase-down schedule.--The Administrator shall
identify an annual phase-down factor, applicable to
distributions to merchant coal units for each of vintage
years 2012 through 2029, that corresponds to the overall
decline in the amount of emission allowances allocated to the
electricity sector in such years pursuant to section
782(a)(1). Such factor shall--
``(A) for vintage year 2012, be equal to 1.0;
``(B) for each of vintage years 2013 through 2029,
correspond to the quotient of--
``(i) the quantity of emission allowances allocated under
section 782(a)(1) for such vintage year; divided by
``(ii) the quantity of emission allowances allocated under
section 782(a)(1) for vintage year 2012.
``(4) Distribution of emission allowances.--Not later than
March 1 of 2013 and each calendar year through 2030, the
Administrator shall distribute emission allowances of the
preceding vintage year to the owner or operator of each
merchant coal unit described in subsection (a)(6)(C) in an
amount equal to the product of--
``(A) 0.5;
``(B) the qualifying emissions for such merchant coal unit
for the preceding year, as determined under paragraph (1);
and
``(C) the phase-down factor for the preceding calendar
year, as identified under paragraph (3).
``(5) Adjustment.--
``(A) Study.--Not later than July 1, 2014, the
Administrator, in consultation with the Federal Energy
Regulatory Commission, shall complete a study to determine
whether the allocation formula under paragraph (3) is
resulting in, or is likely to result in, windfall profits to
merchant coal generators or substantially disparate treatment
of merchant coal generators operating in different markets or
regions.
``(B) Regulation.--If the Administrator, in consultation
with the Federal Energy Regulatory Commission, makes an
affirmative finding of windfall profits or disparate
treatment under subparagraph (A), the Administrator shall,
not later than 18 months after the completion of the study
described in subparagraph (A), promulgate regulations
providing for the adjustment of the allocation formula under
paragraph (3) to mitigate, to the extent practicable, such
windfall profits, if any, and such disparate treatment, if
any.
``(6) Limitation on allowances.--Notwithstanding paragraph
(4) or (5), for each vintage year the Administrator shall
distribute under this subsection no more than 10 percent of
the total quantity of emission allowances available for such
vintage year for distribution to the electricity sector under
section 782(a)(1). If the quantity of emission allowances
that would otherwise be distributed pursuant to paragraph (4)
or (5) for any vintage year would exceed such limit, the
Administrator shall distribute 10 percent of the total
emission allowances available for distribution under section
782(a)(1) for such vintage year ratably among merchant coal
generators based on the applicable formula under paragraph
(4) or (5).
``(7) Eligibility.--The owner or operator of a merchant
coal unit shall not be eligible to receive emission
allowances under this subsection for any vintage year for
which such owner or operator has elected to receive emission
allowances for the same unit under subsection (d).
``(d) Long-term Contract Generators.--
``(1) Distribution.--Not later than March 1 of 2013 and
each calendar year through 2030, the Administrator shall
distribute to the owner or operator of each long-term
contract generator a quantity of emission allowances of the
preceding vintage year that is equal to the sum of--
``(A) the number of tons of carbon dioxide emitted as a
result of a qualifying electricity sales agreement referred
to in subsection (a)(5)(B)(i); and
``(B) the incremental number of tons of carbon dioxide
emitted solely as a result of a qualifying thermal sales
agreement referred to in subsection (a)(5)(B)(ii), provided
that in no event shall the Administrator distribute more than
1 emission allowance for the same ton of emissions.
``(2) Limitation on allowances.-- Notwithstanding paragraph
(1), for each vintage year the Administrator shall distribute
under this subsection no more than 4.3 percent of the total
quantity of emission allowances available for such vintage
year for distribution to the electricity sector under section
782(a)(1). If the quantity of emission allowances that would
otherwise be distributed pursuant to paragraph (1) for any
vintage year would exceed such limit, the Administrator shall
distribute 4.3 percent of the total emission allowances
available for distribution under section 782(a)(1) for such
vintage year ratably among long-term contract generators
based on paragraph (1).
``(3) Eligibility.--
``(A) Facility eligibility.--The owner or operator of a
facility shall cease to be eligible to receive emission
allowances under this subsection upon the earliest date on
which the facility no longer meets each and every element of
the definition of a long-term contract generator under
subsection (a)(5).
``(B) Contract eligibility.--The owner or operator of a
facility shall cease to be eligible to receive emission
allowances under this subsection based on an electricity or
thermal sales agreement referred to in subsection (a)(5)(B)
upon the earliest date that such agreement--
``(i) expires;
``(ii) is terminated; or

[[Page H7567]]

``(iii) is amended in any way that changes the location of
the facility, the price (whether a fixed price or price
formula) for electricity or thermal energy sold under such
agreement, the quantity of electricity or thermal energy sold
under the agreement, or the expiration or termination date of
the agreement.
``(4) Demonstration of eligibility.--To be eligible to
receive allowance distributions under this subsection, the
owner or operator of a long-term contract generator shall
submit each of the following in writing to the Administrator
within 180 days after the date of enactment of this title,
and not later than September 30 of each vintage year for
which such generator wishes to receive emission allowances:
``(A) A certificate of representation described in section
700(15).
``(B) An identification of each owner and each operator of
the facility.
``(C) An identification of the units at the facility and
the location of the facility.
``(D) A written certification by the designated
representative that the facility meets all the requirements
of the definition of a long-term contract generator.
``(E) The expiration date of each qualifying electricity or
thermal sales agreement referred to in subsection (a)(5)(B).
``(F) A copy of each qualifying electricity or thermal
sales agreement referred to in subsection (a)(5)(B).
``(5) Notification.--Not later than 30 days after, in
accordance with paragraph (3), a facility or an agreement
ceases to meet the eligibility requirements for distribution
of emission allowances pursuant to this subsection, the
designated representative of such facility shall notify the
Administrator in writing when, and on what basis, such
facility or agreement ceased to meet such requirements.
``(e) Small LDCs.--
``(1) Distribution.--Not later than September 30 of each
calendar year from 2011 through 2028, the Administrator
shall, in accordance with this subsection, distribute
emission allowances allocated pursuant to section 782(a)(2)
for the following vintage year. Such allowances shall be
distributed ratably among small LDCs based on historic
emissions in accordance with the same measure of such
emissions applied to each such small LDC for the relevant
vintage year under subsection (b)(2) of this section.
``(2) Uses.--A small LDC receiving allowances under this
section shall use such allowances exclusively for the
following purposes:
``(A) Cost-effective programs to achieve electricity
savings, provided that such savings shall not be transferred
or used for compliance with section 610 of the Public Utility
Regulatory Policies Act of 1978.
``(B) Deployment of technologies to generate electricity
from renewable energy resources, provided that any Federal
renewable electricity credits issued based on generation
supported under this section shall be submitted to the
Federal Energy Regulatory Commission for voluntary retirement
and shall not be used for compliance with section 610 of the
Public Utility Regulatory Policies Act of 1978.
``(C) Assistance programs to reduce electricity costs for
low-income residential ratepayers of such small LDC, provided
that such assistance is made available equitably to all
residential ratepayers below a certain income level, which
shall not be higher than 200 percent of the poverty line (as
that term is defined in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)).
``(3) Requirements.--As part of the regulations promulgated
under subsection, the Administrator shall prescribe--
``(A) after consultation with the Federal Energy Regulatory
Commission, requirements to ensure that programs and projects
under paragraph (2)(A) and (B) are consistent with the
standards established by, and effectively supplement
electricity savings and generation of electricity from
renewable energy resources achieved by, the Combined
Efficiency and Renewable Electricity Standard established
under section 610 of the Public Utility Regulatory Policies
Act of 1978;
``(B) eligibility criteria and guidelines for consumer
assistance programs for low-income residential ratepayers
under paragraph (2)(C); and
``(C) such other requirements as the Administrator
determines appropriate to ensure compliance with the
requirements of this subsection.
``(4) Reporting.--Reports submitted under subsection (b)(7)
shall include, in accordance with such requirements as the
Administrator may prescribe--
``(A) a description of any facilities deployed under
paragraph (2)(A), the quantity of resulting electricity
generation from renewable energy resources;
``(B) an assessment demonstrating the cost-effectiveness
of, and electricity savings achieved by, programs supported
under paragraph (2)(B); and
``(C) a description of assistance provided to low-income
retail ratepayers under paragraph (2)(C).
(f) Certain Cogeneration Facilities.--
(1) Eligible cogeneration facilities.--For purposes of this
subsection, an ``eligible cogeneration facility'' is a
facility that--
(A) is a qualifying co-generation facility (as that term is
defined in section 3(18)(B) of the Federal Power Act (16
U.S.C. 796(18)(B));
(B) derives 80 percent or more of its heat input from coal,
petroleum coke, or any combination of these 2 fuels;
(C) has a nameplate capacity of 100 megawatts or greater;
(D) was in operation as of January 1, 2009, and remains in
operation as of the date of any distribution of emission
allowances under this subsection;
(E) in calendar years 2006 through 2008 sold, and as of the
date of any distribution of emission allowances under this
section sells, steam or electricity directly and solely to
multiple, separately-owned industrial or commercial
facilities co-located at the same site with the cogeneration
facility; and
(F) is not eligible to receive allowances under any other
subsection of this section or under part F of this title.
(2) Distribution.--The Administrator shall distribute the
emission allowances allocated pursuant to section 782(a)(3)
to owners or operators of eligible cogeneration facilities
ratably based on the carbon dioxide emissions of each such
facility in calendar years 2006 through 2008. The
Administrator--
(A) shall not, in any year, distribute emission allowances
under this subsection to the owner or operator of any
eligible cogeneration facility in excess of the amount
necessary to offset such facility's cost of compliance with
the requirements of this title in that year; and
(B) may distribute such allowances over a period of years
if annual distributions under this subsection would otherwise
exceed the limitation in subparagraph (A), provided that in
no event shall distributions be made under this subsection
after calendar year 2025.
(3) Requirements.--The Administrator shall, by regulation,
establish requirements to ensure that the value of any
emission allowances distributed pursuant to this subsection
are passed through, on an equitable basis, to the facilities
to which the relevant cogeneration facility provides
electricity or steam deliveries, including any facility owned
or operated by the owner or operator of the cogeneration
facility.
``(g) Regulations.--Not later than 2 years after the date
of enactment of this title, the Administrator, in
consultation with the Federal Energy Regulatory Commission,
shall promulgate regulations to implement the requirements of
this section.

``SEC. 784. NATURAL GAS CONSUMERS.

``(a) Definitions.--For purposes of this section:
``(1) Cost-effective.--The term `cost-effective', with
respect to an energy efficiency program, means that the
program meets the Total Resource Cost Test, which requires
that the net present value of economic benefits over the life
of the program, including avoided supply and delivery costs
and deferred or avoided investments, is greater than the net
present value of the economic costs over the life of the
program, including program costs and incremental costs borne
by the energy consumer.
``(2) Natural gas local distribution company.--The term
`natural gas local distribution company' means a natural gas
local distribution company that is a covered entity.
``(3) Non-covered entity.--The term `non-covered entity'
means, when used in reference to a date or period prior to
the enactment of this title, an entity that would not have
been a covered entity if this title had been in effect during
such date or period.
``(4) State regulatory authority.--The term `State
regulatory authority' has the meaning given the term `State
commission' in section 2(8) of the Natural Gas Act (15 U.S.C.
717a(8)).
``(b) Distribution.--Not later than June 30 of 2015 and
each calendar year thereafter through 2028, the Administrator
shall distribute to natural gas local distribution companies
for the benefit of retail ratepayers the quantity of emission
allowances allocated for the following vintage year pursuant
to section 782(b). Such allowances shall be distributed among
local natural gas distribution companies based on the
following formula:
``(1) Initial formula.--Except as provided in paragraph
(2), for each vintage year, the Administrator shall
distribute emission allowances among natural gas local
distribution companies ratably based on each such company's
annual average retail natural gas deliveries for 2006 through
2008 to customers that were non-covered entities, unless the
owner or operator of the company selects 3 other consecutive
years between 1999 and 2008, inclusive, and timely notifies
the Administrator of its selection.
``(2) Updating.--Prior to distributing 2019 vintage year
emission allowances and at 3-year intervals thereafter, the
Administrator shall update the distribution formula under
this subsection to reflect changes in each natural gas local
distribution company's service territory since the most
recent formula was established. For each successive 3-year
period, the Administrator shall distribute allowances ratably
among natural gas local distribution companies based on the
product of--
``(A) each natural gas local distribution company's average
annual natural gas deliveries per customer to customers that
were non-covered entities during calendar years 2006 through
2008, or during the 3 alternative consecutive years selected
by such company under paragraph (1); and
``(B) the number of customers of such natural gas local
distribution company that are not covered entities in the
most recent year in which the formula is updated under this
paragraph.
``(c) Use of Allowances.--

[[Page H7568]]

``(1) Ratepayer benefit.--Emission allowances distributed
to a natural gas local distribution company under this
section shall be used exclusively for the benefit of retail
ratepayers of such natural gas local distribution company
other than covered entities and may not be used to support
natural gas sales or deliveries to entities or persons other
than such ratepayers.
``(2) Ratepayer classes.--In using emission allowances
distributed under this section for the benefit of ratepayers,
a natural gas local distribution company shall ensure that
ratepayer benefits are distributed--
``(A) among ratepayer classes ratably based on natural gas
deliveries to each class, excluding deliveries to covered
entities; and
``(B) equitably among individual ratepayers other than
covered entities within each ratepayer class.
``(3) Limitation.--In general, a natural gas local
distribution company shall not use the value of emission
allowances distributed under this section to provide to any
ratepayer a rebate that is based solely on the quantity of
natural gas delivered to such ratepayer. To the extent a
natural gas local distribution company uses the value of
emission allowances distributed under this section to provide
rebates, it shall, to the maximum extent practicable, provide
such rebates with regard to the fixed portion of ratepayers'
bills or as a fixed creditor rebate on natural gas bills.
``(4) Industrial ratepayers.--Notwithstanding paragraph
(3), if compliance with the requirements of this title
results (or would otherwise result) in an increase in natural
gas costs for industrial retail ratepayers of any given
natural gas local distribution company that are not covered
entities (including entities that receive emission allowances
pursuant to part F), such natural gas local distribution
company--
``(A) shall pass through to industrial retail ratepayers
that are not covered entities their ratable share (based on
deliveries to each ratepayer class) of the value of the
emission allowances distributed to such company under this
subsection, to reduce natural gas cost impacts on such
ratepayers; and
``(B) may do so based on the quantity of natural gas
delivered to individual industrial retail ratepayers.
``(5) Energy efficiency programs.--The value of no less
than one third of the emission allowances distributed to
natural gas local distribution companies pursuant to this
section in any calendar year shall be used for cost-effective
energy efficiency programs for natural gas consumers. Such
programs must be authorized and overseen by the State
regulatory authority, or by the entity with authority to
regulate or set retail natural gas rates in the case of a
natural gas local distribution company that is not regulated
by a State regulatory authority.
``(6) Certain intracompany deliveries.--If a natural gas
local distribution company makes an intracompany delivery of
natural gas to a customer that is not a covered entity, for
which such company is required to hold emission allowances
under section 722, such customer shall, for purposes of this
section, be considered a retail ratepayer and a member of a
ratepayer class to be determined by the relevant State
regulatory authority, or other entity with authority to
regulate or set natural gas rates in the case of a company
not regulated by a State regulatory authority.
``(7) Guidelines.--As part of the regulations promulgated
under subsection (h), the Administrator shall, after
consultation with State regulatory authorities, prescribe
guidelines for the implementation of the requirements of this
subsection. Such guidelines shall include requirements to
ensure that industrial retail ratepayers that are not covered
entities (including entities that receive emission allowances
under part F) receive their ratable share of the value of the
allowances distributed to each natural gas local distribution
company pursuant to this section.
``(d) Regulatory Proceedings.--
``(1) Requirement.--No natural gas local distribution
company shall be eligible to receive emission allowances
under this section unless the State regulatory authority with
authority over the retail rates of such company, or the
entity with authority to regulate or set retail rates of a
natural gas local distribution company not regulated by a
State regulatory authority, has--
``(A) after public notice and an opportunity for comment,
promulgated a regulation or completed a public rate
proceeding (or the equivalent, in the case of a ratemaking
entity other than a State regulatory authority) that provides
for the full implementation of the requirements of subsection
(c); and
``(B) made available to the Administrator and the public a
report describing, in adequate detail, the manner in which
the requirements of subsection (c) will be implemented.
``(2) Updating.--The Administrator shall require, as a
condition of continued receipt of emission allowances under
this section, that a new regulation be promulgated or rate
proceeding be completed, after public notice and an
opportunity for comment, and a new report be made available
to the Administrator and the public, pursuant to paragraph
(1), not less frequently than every 5 years.
``(e) Plans and Reporting.--
``(1) Regulations.--As part of the regulations promulgated
under subsection (h), the Administrator shall prescribe
requirements governing plans and reports to be submitted in
accordance with this subsection.
``(2) Plans.--Not later than April 30 of 2015 and every 5
years thereafter through 2025, each natural gas local
distribution company shall submit to the Administrator a
plan, approved by the State regulatory authority or other
entity charged with regulating or setting the retail rates of
such company, describing such company's plans for the
disposition of the value of emission allowances to be
received pursuant to this section, in accordance with the
requirements of this section.
``(3) Reports.--Not later than June 30 of 2017 and each
calendar year thereafter through 2031, each natural gas local
distribution company shall submit a report to the
Administrator, approved by the relevant State regulatory
authority or other entity charged with regulating or setting
the retail natural gas rates of such company, describing the
disposition of the value of any emission allowances received
by such company in the prior calendar year pursuant to this
section, including--
``(A) a description of sales, transfer, exchange, or use by
the company for compliance with obligations under this title,
of any such emission allowances;
``(B) the monetary value received by the company, whether
in money or in some other form, from the sale, transfer, or
exchange of emission allowances received by the company under
this section;
``(C) the manner in which the company's disposition of
emission allowances received under this section complies with
the requirements of this section, including each of the
requirements of subsection (c);
``(D) the cost-effectiveness of, and energy savings
achieved by, energy efficiency programs supported through
such emission allowances; and
``(E) such other information as the Administrator may
require pursuant to paragraph (1).
``(4) Publication.--The Administrator shall make available
to the public all plans and reports submitted by natural gas
local distribution companies under this subsection, including
by publishing such plans and reports on the Internet.
``(f) Audits.--Each year, the Administrator shall audit a
representative sample of natural gas local distribution
companies to ensure that emission allowances distributed
under this section have been used exclusively for the benefit
of retail ratepayers and that such companies are complying
with the requirements of this section. In selecting companies
for audit, the Administrator shall take into account any
credible evidence of noncompliance with such requirements.
The Administrator shall make available to the public a report
describing the results of each such audit, including by
publishing such report on the Internet.
``(g) Enforcement.--A violation of any requirement of this
section shall be a violation of this Act. Each emission
allowance the value of which is used in violation of the
requirements of this section shall be a separate violation.
``(h) Regulations.--Not later than January 1, 2014, the
Administrator, in consultation with the Federal Energy
Regulatory Commission, shall promulgate regulations to
implement the requirements of this section.

``SEC. 785. HOME HEATING OIL, PROPANE, AND KEROSENE
CONSUMERS.

``(a) Definitions.--For purposes of this section:
``(1) Carbon content.--The term `carbon content' means the
amount of carbon dioxide that would be emitted as a result of
the combustion of a fuel.
``(2) Cost-effective.--The term `cost-effective' has the
meaning given that term in section 784(a)(1).
``(3) Oilheat fuel.--The term `oilheat fuel' means fuel
that--
``(A) is--
``(i) No. 1 distillate;
``(ii) No. 2 dyed distillate;
``(iii) a liquid blended with No. 1 distillate or No. 2
dyed distillate; or
``(iv) a biobased liquid; and
``(B) is used as a fuel for nonindustrial commercial or
residential space or hot water heating.
``(b) Distribution Among States.--Not later than September
30 of each of calendar years 2011 through 2028, the
Administrator shall distribute among the States, in
accordance with this section, the quantity of emission
allowances allocated for the following vintage year pursuant
to section 782(c). The Administrator shall distribute
emission allowances among the States under this section each
year ratably based on the ratio of--
``(1) the carbon content of oilheat fuel, propane, and
kerosene sold to consumers within each State in the preceding
year for residential or commercial uses; to
``(2) the carbon content of oilheat fuel, propane, and
kerosene sold to consumers within the United States in the
preceding year for residential or commercial uses.
``(c) Use of Allowances.--
``(1) In general.--States shall use emission allowances
distributed under this section exclusively for the benefit of
consumers of oilheat fuel, propane, or kerosene for
residential or commercial purposes. Such proceeds shall be
used exclusively for--
``(A) cost-effective energy efficiency programs for
consumers that use oilheat fuel, propane, or kerosene for
residential or commercial purposes; or
``(B) rebates or other direct financial assistance programs
for consumers of oilheat

[[Page H7569]]

fuel, propane, or kerosene used for residential or commercial
purposes.
``(2) Administration and delivery mechanisms.--In
administering programs supported by this section, States
shall
``(A) use no less than 50 percent of the value of emission
allowances received under this section for cost-effective
energy efficiency programs to reduce consumers' overall fuel
costs;
``(B) to the extent practicable, deliver consumer support
under this section through existing energy efficiency and
consumer energy assistance programs or delivery mechanisms,
including, where appropriate, programs or mechanisms
administered by parties other than the State; and
``(C) seek to coordinate the administration and delivery of
energy efficiency and consumer energy assistance programs
supported under this section, with one another and with
existing programs for various fuel types, so as to deliver
comprehensive, fuel-blind, coordinated programs to consumers.
``(d) Reporting.--Each State receiving emission allowances
under this section shall submit to the Administrator, within
12 months of each receipt of such allowances, a report, in
accordance with such requirements as the Administrator may
prescribe, that--
``(1) describes the State's use of emission allowances
distributed under this section, including a description of
the energy efficiency and consumer assistance programs
supported with such allowances;
``(2) demonstrates the cost-effectiveness of, and the
energy savings and greenhouse gas emissions reductions
achieved by, energy efficiency programs supported under this
section; and
``(3) includes a report prepared by an independent third
party, in accordance with such regulations as the
Administrator may promulgate, evaluating the performance of
the energy efficiency and consumer assistance programs
supported under this section.
``(e) Enforcement.--If the Administrator determines that a
State is not in compliance with this section, the
Administrator may withhold a portion of the emission
allowances, the quantity of which is equal to up to twice the
quantity of the allowances that the State failed to use in
accordance with the requirements of this section, that such
State would otherwise be eligible to receive under this
section in later years. Allowances withheld pursuant to this
subsection shall be distributed among the remaining States
ratably in accordance with the formula in subsection (b).

``SEC. 787. ALLOCATIONS TO REFINERIES.

``(a) Purpose.--The purpose of this section is to provide
emission allowance rebates to petroleum refineries in the
United States in a manner that promotes energy efficiency and
a reduction in greenhouse gas emissions at such facilities.
``(b) Definitions.--In this section:
``(1) Emissions.--The term `emissions' includes direct
emissions from fuel combustion, process emissions, and
indirect emissions from the generation of electricity, steam,
and hydrogen used to produce the output of a petroleum
refinery or the petroleum refinery sector.
``(2) Petroleum refinery.--The term `petroleum refinery'
means a facility classified under code 324110 of the North
American Industrial Classification System of 2002.
``(3) Small business refiner.--The term `small business
refiner' means a refiner that meets the applicable Federal
refinery capacity and employee limitations criteria described
in section 45H(c)(1) of the Internal Revenue Code of 1986 (as
in effect on the date of enactment of this section and
without regard to section 45H(d)). Eligibility of a small
business refiner under this paragraph shall not be
recalculated or disallowed on account of (i) its merger with
another small business refiner or refiners after December 31,
2002 or (ii) its acquisition of another small business
refiner (or refinery of such refiner) after December 31,
2002.
``(c) In General.--For each vintage year between 2014 and
2026, the Administrator shall distribute allowances pursuant
to this section to owners and operators of petroleum
refineries, including small business refiners, in the United
States.
``(d) Distribution Schedule.--The Administrator shall
distribute emission allowances pursuant to the regulations
issued under subsection (e) for each vintage year no later
than October 31 of the preceding calendar year.
``(e) Regulations.--Not later than 3 years after the date
of enactment of this title, the Administrator, in
consultation with the Administrator of the Energy Information
Administration, shall promulgate regulations that establish a
formula for distributing emission allowances consistent with
the purpose of this section. In establishing such formula,
the Administrator shall consider the relative complexity of
refinery processes and appropriate mechanisms to take energy
efficiency and greenhouse gas reductions into account. If a
petroleum refinery's electricity provider received a free
allocation of emission allowances pursuant to section 782(a),
the Administrator shall take this free allocation into
account when establishing such formula to avoid rebates to a
petroleum refinery for costs that the Administrator
determines were not incurred by the petroleum refinery
because the allowances were freely allocated to the petroleum
refinery's electricity provider and used for the benefit of
the petroleum refinery. This formula shall apply separately
to the distribution of allowances allocated pursuant to
section 782(j)(1) and to those allocated under section
782(j)(2).

``SEC. 788. SUPPLEMENTAL AGRICULTURE AND RENEWABLE ENERGY
INCENTIVES PROGRAMS.

``(a) In General.--Emission allowances allocated pursuant
to section 782(u) shall be distributed by the Administrator
at the direction of the Secretary of Energy and the Secretary
of Agriculture in accordance with this section. Not less than
50 percent of the allowances shall be available for the
program established pursuant to subsection (b).
``(b) Agriculture Incentives Program.--
``(1) Establishment.--The Secretary of Agriculture shall
establish by rule a program to provide incentives in the form
of emission allowances for activities undertaken in the
agriculture sector that reduce greenhouse gas emissions or
sequester carbon. Under this program, the Secretary of
Agriculture shall provide incentives for projects and
activities that--
``(A) reduce or avoid greenhouse gas emissions, or
sequester greenhouse gases, but do not meet the criteria for
offset credits established under the American Clean Energy
and Security Act of 2009;
``(B) support actions to adapt to climate change; or
``(C) prevent conversion of land that would increase
greenhouse gas emissions (including projects and activities
that complement or supplement conservation programs
administered by the Secretary).
``(2) Considerations.--In designing this program, the
Secretary shall ensure that it provides support for--
``(A) development and demonstration of practices to reduce
greenhouse gas emissions or sequester carbon in agricultural
operations where there are limited recognized opportunities
to achieve such emissions reductions or sequestration; and
``(B) projects that reduce greenhouse gas emissions or
increase sequestration of greenhouse gases and also achieve
other significant environmental benefits, such as the
improvement of water or air quality.
``(3) Research.--The Secretary shall establish by rule a
program to conduct research to develop additional projects
and activities for crops to find additional techniques and
methods to reduce greenhouse gas emissions or sequester
greenhouse gases that may or may not meet the criteria for
offset credits established under the American Clean Energy
and Security Act of 2009.
``(4) Use of information.--Information and data generated
by this program should, where relevant, be used to inform the
development of additional offset practices and methodologies.
``(c) Renewable Energy Incentives Program.--The Secretary
of Energy and the Administrator shall establish by rule a
program to provide allowances to State and local governments
to support the deployment of renewable energy
infrastructure.''.

``SEC. 789. CLIMATE CHANGE CONSUMER REFUNDS.

``(a) Refund.--In each year after deposits are made to the
Climate Change Consumer Refund Account, the Secretary of the
Treasury shall provide tax refunds on a per capita basis to
each household in the United States that shall collectively
equal the amount deposited into the Climate Change Consumer
Refund Account.
``(b) Limitations.--The Secretary of the Treasury shall
establish procedures to ensure that individuals who are not--
``(1) citizens or nationals of the United States; or
``(2) immigrants lawfully residing in the United States,
are excluded for the purpose of calculating and distributing
refunds under this section.

``SEC. 790. EXCHANGE FOR STATE-ISSUED ALLOWANCES.

``(a) In General.--Not later than one year after the date
of enactment of this title, the Administrator shall issue
regulations allowing any person in the United States to
exchange greenhouse gas emission allowances issued before
December 31, 2011, by the State of California or for the
Regional Greenhouse Gas Initiative, or the Western Climate
Initiative (in this section referred to as `State
allowances') for emission allowances established by the
Administrator under section 721(a).
``(b) Regulations.--Regulations issued under subsection (a)
shall--
``(1) provide that a person exchanging State allowances
under this section receive emission allowances established
under section 721(a) in the amount that is sufficient to
compensate for the cost of obtaining and holding such State
allowances;
``(2) establish a deadline by which persons must exchange
the State allowances;
``(4) require that, once exchanged, the credit or other
instrument be retired for purposes of use under the program
by or for which it was originally issued.
``(5) provide that the Federal emission allowances
disbursed pursuant to this section shall be deducted from the
allowances to be auctioned pursuant to section 782(d); and
``(c) Cost of Obtaining State Allowance.--For purposes of
this section, the cost of obtaining a State allowance shall
be the average auction price, for emission allowances issued
in the year in which the State allowance was issued, under
the program under which the State allowance was issued.

``SEC. 791. AUCTION PROCEDURES.

``(a) In General.--To the extent that auctions of emission
allowances by the Administrator are authorized by this part,
such auctions shall be carried out pursuant to this

[[Page H7570]]

section and the regulations established hereunder.
``(b) Initial Regulations.--Not later than 12 months after
the date of enactment of this title, the Administrator, in
consultation with other agencies, as appropriate, shall
promulgate regulations governing the auction of allowances
under this section. Such regulations shall include the
following requirements:
``(1) Frequency; first auction.--Auctions shall be held
four times per year at regular intervals, with the first
auction to be held no later than March 31, 2011.
``(2) Auction schedule; current and future vintages.--The
Administrator shall, at each quarterly auction under this
section, offer for sale both a portion of the allowances with
the same vintage year as the year in which the auction is
being conducted and a portion of the allowances with vintage
years from future years. The preceding sentence shall not
apply to auctions held before 2012, during which period, by
necessity, the Administrator shall auction only allowances
with a vintage year that is later than the year in which the
auction is held. Beginning with the first auction and at each
quarterly auction held thereafter, the Administrator may
offer for sale allowances with vintage years of up to four
years after the year in which the auction is being conducted,
except as provided in section 782(p).
``(3) Auction format.--Auctions shall follow a single-
round, sealed-bid, uniform price format.
``(4) Participation; financial assurance.--Auctions shall
be open to any person, except that the Administrator may
establish financial assurance requirements to ensure that
auction participants can and will perform on their bids.
``(5) Disclosure of beneficial ownership.--Each bidder in
the auction shall be required to disclose the person or
entity sponsoring or benefitting from the bidder's
participation in the auction if such person or entity is, in
whole or in part, other than the bidder.
``(6) Purchase limits.--No person may, directly or in
concert with another participant, purchase more than 5
percent of the allowances offered for sale at any quarterly
auction.
``(7) Publication of information.--After the auction, the
Administrator shall, in a timely fashion, publish the
identities of winning bidders, the quantity of allowances
obtained by each winning bidder, and the auction clearing
price.
``(8) Other requirements.--The Administrator may include in
the regulations such other requirements or provisions as the
Administrator, in consultation with other agencies, as
appropriate, considers appropriate to promote effective,
efficient, transparent, and fair administration of auctions
under this section.
``(c) Revision of Regulations.--The Administrator may, in
consultation with other agencies, as appropriate, at any
time, revise the initial regulations promulgated under
subsection (b) by promulgating new regulations. Such revised
regulations need not meet the requirements identified in
subsection (b) if the Administrator determines that an
alternative auction design would be more effective, taking
into account factors including costs of administration,
transparency, fairness, and risks of collusion or
manipulation. In determining whether and how to revise the
initial regulations under this subsection, the Administrator
shall not consider maximization of revenues to the Federal
Government.
``(d) Reserve Auction Price.--The minimum reserve auction
price shall be $10 (in constant 2009 dollars) for auctions
occurring in 2012. The minimum reserve price for auctions
occurring in years after 2012 shall be the minimum reserve
auction price for the previous year increased by 5 percent
plus the rate of inflation (as measured by the Consumer Price
Index for all urban consumers).
``(e) Delegation or Contract.--Pursuant to regulations
under this section, the Administrator may by delegation or
contract provide for the conduct of auctions under the
Administrator's supervision by other departments or agencies
of the Federal Government or by nongovernmental agencies,
groups, or organizations.
``(f) Small Business Refiner Reserve.--The Administrator
shall, in accordance with this subsection, issue regulations
setting aside a specified number of allowances that small
business refiners may purchase at the average auction price
and may use to demonstrate compliance pursuant to section
722. These regulations shall provide the following:
``(1) Amount.--The Administrator shall place in the small
business refiner reserve account allowances that are to be
sold at auction pursuant to the allocations in section 782 in
an amount equal to--
``(A) 6.2 percent of the emission allowances established
under section 721(a) for each vintage year from 2012 through
2013;
``(B) 5.4 percent of the emission allowances established
under section 721(a) for each vintage year from 2014 through
2015; and
``(C) 4.9 percent of the emission allowances established
under section 721(a) for each vintage year from 2016 through
2024.
``(2) Allowed purchases.--From January 1 of the calendar
year that matches the vintage year for which allowances have
been placed in the reserve, through January 14 of the
following year, small business refiners (as defined in
section 787(b)) may purchase allowances from this reserve at
the price determined pursuant to paragraph (3).
``(3) Price.--The price for allowances purchased from this
reserve shall be the average auction price for allowances of
the same vintage year purchased at auctions conducted
pursuant to this section during the 12 months preceding the
purchase of the allowances.
``(4) Use of allowances.--Allowances purchased from this
reserve shall only be used by the purchaser to demonstrate
compliance pursuant to section 722 for attributable
greenhouse gas emissions in the calendar year that matches
the vintage year of the purchased allowance. Allowances
purchased from this reserve may not be banked, traded or
borrowed.
``(5) Limitations on purchase amount.--The Administrator,
by regulation adopted after public notice and an opportunity
for comment, shall establish procedures to distribute the
ability to purchase allowances from the reserve fairly among
all small business refiners interested in purchasing
allowances from this reserve so as to address the potential
that requests to purchase allowances exceed the number of
allowances available in the reserve. This regulation may
place limits on the number of allowances a small business
refiner may purchase from the reserve.
``(6) Unsold allowances.--Vintage year allowances not sold
from the reserve on or before January 15 of the calendar year
following the vintage year shall be sold at an auction
conducted pursuant to this section no later than March 31 of
the calendar year following the vintage year. If
significantly more allowances are being placed in the reserve
than are being purchased from the reserve several years in a
row, the Administrator may adjust either the percent of
allowances placed in the reserve or the date by which
allowances may be purchased from the reserve.

``SEC. 792. AUCTIONING ALLOWANCES FOR OTHER ENTITIES.

``(a) Consignment.--Any entity holding emission allowances
or compensatory allowances may request that the Administrator
auction, pursuant to section 791, the allowances on
consignment.
``(b) Pricing.--When the Administrator acts under this
section as the agent of an entity in possession of emission
allowances or compensatory allowances, the Administrator is
not obligated to obtain the highest price possible for the
allowances, and instead shall auction consignment allowances
in the same manner and pursuant to the same rules as auctions
of other allowances under section 791. The Administrator may
permit the entity offering the allowance for sale to
condition the sale of its allowances pursuant to this section
on a minimum reserve price that is different than the reserve
auction price set pursuant to section 791(d).
``(c) Proceeds.--For emission allowances and compensatory
allowances auctioned pursuant to this section,
notwithstanding section 3302 of title 31, United States Code,
or any other provision of law, within 90 days of receipt, the
United States shall transfer the proceeds from the auction to
the entity which held the allowances auctioned. No funds
transferred from a purchaser to a seller of emission
allowances or compensatory allowances under this subsection
shall be held by any officer or employee of the United States
or treated for any purpose as public monies.
``(d) Unsold Allowances.--Allowances offered for sale under
this section that are not sold shall be returned to the
entity in possession of the allowance, notwithstanding
section 726(b)(2)(A).
``(e) Regulations.--The Administrator shall issue
regulations within 24 months after the date of enactment of
this title to implement this section.

``SEC. 793. ESTABLISHMENT OF FUNDS.

``There is hereby established in the Treasury of the United
States the following separate accounts:
``(1) The Strategic Reserve Fund.
``(2) The Climate Change Consumer Refund Account.
``(3) The Climate Change Worker Adjustment Assistance Fund.

``SEC. 794. OVERSIGHT OF ALLOCATIONS.

``(a) In General.--Not later than January 1, 2014, and
every 2 years thereafter, the Comptroller General of the
United States shall carry out and report to Congress on the
results of a review of programs administered by the Federal
Government that distribute emission allowances or funds from
any Federal auction of allowances.
``(b) Contents.--Each such report shall include a
comprehensive evaluation of the administration and
effectiveness of each program, including--
``(1) the efficiency, transparency, and soundness of the
administration of each program;
``(2) the performance of activities receiving assistance
under each program;
``(3) the cost-effectiveness of each program in achieving
the stated purposes of the program; and
``(4) recommendations, if any, for legislative, regulatory,
or administrative changes to each program to improve its
effectiveness.
``(c) Focus.--In evaluating program performance, each
review under this section review shall address the
effectiveness of such programs in--
``(1) creating and preserving jobs;
``(2) ensuring a manageable transition for working families
and workers;

[[Page H7571]]

``(3) reducing the emissions, or enhancing sequestration,
of greenhouse gases;
``(4) developing clean technologies; and
``(5) building resilience to the impacts of climate change.

``SEC. 795. EXCHANGE FOR EARLY ACTION OFFSET CREDITS.

``(a) In General.--Emission allowances allocated pursuant
to section 782(t) shall be distributed by the Administrator
in accordance with this section. Not later than one year
after the date of enactment of this title, the Administrator
shall issue regulations allowing--
``(1) any person in the United States to exchange
instruments in the nature of offset credits issued before
January 1, 2009, by a State or voluntary offset program with
respect to which the Administrator has made an affirmative
determination under section 740(a)(2), for emissions
allowances established by the Administrator under section
721(a); and
``(2) the Administrator to provide compensation in the form
of emission allowances to entities that do not meet the
criteria of paragraph (1) and meet the criteria of this
paragraph for documented early reductions or avoidance of
greenhouse gas emissions or greenhouse gases sequestered
before January 1, 2009, from projects begun before January 1,
2009, where--
``(A) the entity publicly stated greenhouse gas reduction
goals and publicly reported against those goals;
``(B) the entity demonstrated entity-wide net greenhouse
gas reductions; and
``(C) the entity demonstrates the actual projects
undertaken to make reductions and documents the reductions
(e.g., through documentation of engineering projects).
``(b) Regulations.--Regulations issued under subsection (a)
shall--
``(1) provide that a person exchanging credits under
subsection (a)(1) receive emission allowances established
under section 721(a) in an amount for which the monetary
value is equivalent to the average monetary value of the
credits during the period from January 1, 2006, to January 1,
2009, as adjusted for inflation to reflect current dollar
values at the time of the exchange;
``(2) provide that a person receiving compensation for
documented early action under subsection (a)(2) shall receive
emission allowances established under section 721(a) in an
amount that is approximately equivalent in value to the
carbon dioxide equivalent per ton value received by entities
in exchange for credits under paragraph (1) (as adjusted for
inflation to reflect current dollar values at the time of the
exchange), as determined by the Administrator;
``(3) provide that only reductions or avoidance of
greenhouse gas emissions, or sequestration of greenhouse
gases, achieved by activities in the United States between
January 1, 2001, and January 1, 2009, may be compensated
under this section, and only credits issued for such
activities may be exchanged under this section;
``(4) provide that only credits that have not been retired
or otherwise used to meet a voluntary or mandatory
commitment, and have not expired, may be exchanged under
subsection (a)(1);
``(5) require that, once exchanged, the credit be retired
for purposes of use under the program by or for which it was
originally issued; and
``(6) establish a deadline by which persons must exchange
the credits or request compensation for early action under
this section.
``(c) Participation.--Participation in an exchange of
credits for allowances or compensation for early action
authorized by this section shall not preclude any person from
participation in an offset credit program established under
the American Clean Energy and Security Act of 2009.
``(d) Distribution.--Of the emission allowances distributed
under this section, a quantity equal to 0.75 percent of
vintage year 2012 emission allowances established under
section 721(a) shall be distributed pursuant to subsection
(a)(1), and a quantity equal to 0.25 percent of vintage year
2012 emission allowances established under section 721(a)
shall be distributed pursuant to subsection (a)(2).''.

Subtitle C--Additional Greenhouse Gas Standards

SEC. 331. GREENHOUSE GAS STANDARDS.

The Clean Air Act (42 U.S.C. 7401 and following), as
amended by subtitles A and B of this title, is further
amended by adding the following new title after title VII:

``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

``SEC. 801. DEFINITIONS.

``For purposes of this title, terms that are defined in
title VII, except for the term `stationary source', shall
have the meaning given those terms in title VII.

``PART A--STATIONARY SOURCE STANDARDS

``SEC. 811. STANDARDS OF PERFORMANCE.

``(a) Uncapped Stationary Sources.--
``(1) Inventory of source categories.--(A) Within 12 months
after the date of enactment of this title, the Administrator
shall publish under section 111(b)(1)(A) an inventory of
categories of stationary sources that consist of those
categories that contain sources that individually had
uncapped greenhouse gas emissions greater than 10,000 tons of
carbon dioxide equivalent and that, in the aggregate, were
responsible for emitting at least 20 percent annually of the
uncapped greenhouse gas emissions.
``(B) The Administrator shall include in the inventory
under this paragraph each source category that is responsible
for at least 10 percent of the uncapped methane emissions in
2005. Notwithstanding any other provision, the inventory
required by this section shall not include sources of enteric
fermentation. The list under this paragraph shall include
industrial sources, the emissions from which, when added to
the capped emissions from industrial sources, constitute at
least 95 percent of the greenhouse gas emissions of the
industrial sector.
``(C) For purposes of this subsection, emissions shall be
calculated using tons of carbon dioxide equivalents. In
promulgating the inventory required by this paragraph and the
schedule required under by paragraph (2)(C), the
Administrator shall use the most current emissions data
available at the time of promulgation, except as provided in
subparagraph (B).
``(D) Notwithstanding any other provisions, the
Administrator may list under 111(b) any source category
identified in the inventory required by this subsection
without making a finding that the source category causes or
contributes significantly to, air pollution with may be
reasonably anticipated to endanger public health or welfare.
``(2) Standards and schedule.--(A) For each category
identified as provided in paragraph (1), the Administrator
shall promulgate standards of performance under section 111
for the uncapped emissions of greenhouse gases from
stationary sources in that category and shall promulgate
corresponding regulations under section 111(d).
``(B) The Administrator shall promulgate standards as
required by this subsection for stationary sources in
categories identified as provided in paragraph (1) as
expeditiously as practicable, assuring that--
``(i) standards for identified source categories that,
combined, emitted 80 percent or more of the greenhouse gas
emissions of the identified source categories shall be
promulgated not later than 3 years after the date of
enactment of this title and shall include standards for
natural gas extraction; and
``(ii) for all other identified source categories--
``(I) standards for not less than an additional 25 percent
of the identified categories shall be promulgated not later
than 5 years after the date of enactment of this title;
``(II) standards for not less than an additional 25 percent
of the identified categories shall be promulgated not later
than 7 years after the date of enactment of this title; and
``(III) standards for all the identified categories shall
be promulgated not later than 10 years after the date of
enactment of this title.
``(C) Not later than 24 months after the date of enactment
of this title and after notice and opportunity for comment,
the Administrator shall publish a schedule establishing a
date for the promulgation of standards for each category of
sources identified pursuant to paragraph (1). The date for
each category shall be consistent with the requirements of
subparagraph (B). The determination of priorities for the
promulgation of standards pursuant to this paragraph is not a
rulemaking and shall not be subject to judicial review,
except that failure to promulgate any standard pursuant to
the schedule established by this paragraph shall be subject
to review under section 304(a)(2).
``(D) Notwithstanding section 307, no action of the
Administrator listing a source category under paragraph (1)
shall be a final agency action subject to judicial review,
except that any such action may be reviewed under section 307
when the Administrator issues performance standards for such
category.
``(b) Capped Sources.--No standard of performance shall be
established under section 111 for capped greenhouse gas
emissions from a capped source unless the Administrator
determines that such standards are appropriate because of
effects that do not include climate change effects. In
promulgating a standard of performance under section 111 for
the emission from capped sources of any air pollutant that is
not a greenhouse gas, the Administrator shall treat the
emission of any greenhouse gas by those entities as a nonair
quality public health and environmental impact within the
meaning of section 111(a)(1).
``(c) Performance Standards.--For purposes of setting a
performance standard for source categories identified
pursuant to subsection (a)--
``(1) The Administrator shall take into account the goal of
reducing total United States greenhouse gas emissions as set
forth in section 702.
``(2) The Administrator may promulgate a design, equipment,
work practice, or operational standard, or any combination
thereof, under section 111 in lieu of a standard of
performance under that section without regard to any
determination of feasibility that would otherwise be required
under section 111(h).
``(3) Notwithstanding any other provision, in setting the
level of each standard required by this section, the
Administrator shall take into account projections of
allowance prices, such that the marginal cost of compliance
(expressed as dollars per ton of carbon dioxide equivalent
reduced) imposed by the standard would not, in the judgement
of the Administrator, be expected to exceed the
Administrator's projected allowance prices over the time
period spanning from the date of initial compliance to the
date that the next

[[Page H7572]]

revisions of the standard would come into effect pursuant to
the schedule under section 111(b)(1)(B).
``(d) Definitions.--In this section, the terms `uncapped
greenhouse gas emissions' and `uncapped methane emissions'
mean those greenhouse gas or methane emissions, respectively,
to which section 722 would not have applied if the
requirements of this title had been in effect for the same
year as the emissions data upon which the list is based.
``(e) Study of the Effects of Performance Standards.--
``(1) Study.--The Administrator shall conduct a study of
the impacts of performance standards required under this
section, which shall evaluate the effect of such standards on
the--
``(A) costs of achieving compliance with the economy-wide
reduction goals specified in section 702 and the reduction
targets specified in section 703;
``(B) available supply of offset credits; and
``(C) ability to achieve the economy-wide reduction goals
specified in section 702 and any other benefits of such
standards.
``(2) Report.--The Administrator shall submit to the House
Energy and Commerce Committee a report that describes the
results of the study not later than 18 months after the
publication of the standards required under subsection
(a)(2)(B)(i).

``PART C--EXEMPTIONS FROM OTHER PROGRAMS

``SEC. 831. CRITERIA POLLUTANTS.

``As of the date of the enactment of the Safe Climate Act,
no greenhouse gas may be added to the list under section
108(a) on the basis of its effect on global climate change.

``SEC. 832. INTERNATIONAL AIR POLLUTION.

``Section 115 shall not apply to an air pollutant with
respect to that pollutant's contribution to global warming.

``SEC. 833. HAZARDOUS AIR POLLUTANTS.

``No greenhouse gas may be added to the list of hazardous
air pollutants under section 112 unless such greenhouse gas
meets the listing criteria of section 112(b) independent of
its effects on global climate change.

``SEC. 834. NEW SOURCE REVIEW.

``The provisions of part C of title I shall not apply to a
major emitting facility that is initially permitted or
modified after January 1, 2009, on the basis of its emissions
of any greenhouse gas.

``SEC. 835. TITLE V PERMITS.

``Notwithstanding any provision of title III or V, no
stationary source shall be required to apply for, or operate
pursuant to, a permit under title V, solely because the
source emits any greenhouse gases that are regulated solely
because of their effect on global climate change.''.

SEC. 332. HFC REGULATION.

(a) In General.--Title VI of the Clean Air Act (42 U.S.C.
7671 et seq.) (relating to stratospheric ozone protection) is
amended by adding at the end the following:

``SEC. 619. HYDROFLUOROCARBONS (HFCS).

``(a) Treatment as Class II, Group II Substances.--Except
as otherwise provided in this section, hydrofluorocarbons
shall be treated as class II substances for purposes of
applying the provisions of this title. The Administrator
shall establish two groups of class II substances. Class II,
group I substances shall include all hydrochlorofluorocarbons
(HCFCs) listed pursuant to section 602(b). Class II, group II
substances shall include each of the following:
``(1) Hydrofluorocarbon-23 (HFC-23).
``(2) Hydrofluorocarbon-32 (HFC-32).
``(3) Hydrofluorocarbon-41 (HFC-41).
``(4) Hydrofluorocarbon-125 (HFC-125).
``(5) Hydrofluorocarbon-134 (HFC-134).
``(6) Hydrofluorocarbon-134a (HFC-134a).
``(7) Hydrofluorocarbon-143 (HFC-143).
``(8) Hydrofluorocarbon-143a (HFC-143a).
``(9) Hydrofluorocarbon-152 (HFC-152).
``(10) Hydrofluorocarbon-152a (HFC-152a).
``(11) Hydrofluorocarbon-227ea (HFC-227ea).
``(12) Hydrofluorocarbon-236cb (HFC-236cb).
``(13) Hydrofluorocarbon-236ea (HFC-236ea).
``(14) Hydrofluorocarbon-236fa (HFC-236fa).
``(15) Hydrofluorocarbon-245ca (HFC-245ca).
``(16) Hydrofluorocarbon-245fa (HFC-245fa).
``(17) Hydrofluorocarbon-365mfc (HFC-365mfc).
``(18) Hydrofluorocarbon-43-10mee (HFC-43-10mee).
``(19) Hydrofluoroolefin-1234yf (HFO-1234yf).
``(20) Hydrofluoroolefin-1234ze (HFO-1234ze).
Not later than 6 months after the date of enactment of this
title, the Administrator shall publish an initial list of
class II, group II substances, which shall include the
substances listed in this subsection. The Administrator may
add to the list of class II, group II substances any other
substance used as a substitute for a class I or II substance
if the Administrator determines that 1 metric ton of the
substance makes the same or greater contribution to global
warming over 100 years as 1 metric ton of carbon dioxide.
Within 24 months after the date of enactment of this section,
the Administrator shall amend the regulations under this
title (including the regulations referred to in sections 603,
608, 609, 610, 611, 612, and 613) to apply to class II, group
II substances.
``(b) Consumption and Production of Class II, Group II
Substances.--
``(1) In general.--
``(A) Consumption phase down.--In the case of class II,
group II substances, in lieu of applying section 605 and the
regulations thereunder, the Administrator shall promulgate
regulations phasing down the consumption of class II, group
II substances in the United States, and the importation of
products containing any class II, group II substance, in
accordance with this subsection within 18 months after the
date of enactment of this section. Effective January 1, 2012,
it shall be unlawful for any person to produce any class II,
group II substance, import any class II, group II substance,
or import any product containing any class II, group II
substance without holding one consumption allowance or one
destruction offset credit for each carbon dioxide equivalent
ton of the class II, group II substance. Any person who
exports a class II, group II substance for which a
consumption allowance was retired may receive a refund of
that allowance from the Administrator following the export.
``(B) Production.--If the United States becomes a party or
otherwise adheres to a multilateral agreement, including any
amendment to the Montreal Protocol on Substances That Deplete
the Ozone Layer, that restricts the production of class II,
group II substances, the Administrator shall promulgate
regulations establishing a baseline for the production of
class II, group II substances in the United States and
phasing down the production of class II, group II substances
in the United States, in accordance with such multilateral
agreement and subject to the same exceptions and other
provisions as are applicable to the phase down of consumption
of class II, group II substances under this section (except
that the Administrator shall not require a person who obtains
production allowances from the Administrator to make payment
for such allowances if the person is making payment for a
corresponding quantity of consumption allowances of the same
vintage year). Upon the effective date of such regulations,
it shall be unlawful for any person to produce any class II,
group II substance without holding one consumption allowance
and one production allowance, or one destruction offset
credit, for each carbon dioxide equivalent ton of the class
II, group II substance.
``(C) Integrity of cap.--To maintain the integrity of the
class II, group II cap, the Administrator may, through
rulemaking, limit the percentage of each person's compliance
obligation that may be met through the use of destruction
offset credits or banked allowances.
``(D) Counting of violations.--Each consumption allowance,
production allowance, or destruction offset credit not held
as required by this section shall be a separate violation of
this section.
``(2) Schedule.--Pursuant to the regulations promulgated
pursuant to paragraph (1)(A), the number of class II, group
II consumption allowances established by the Administrator
for each calendar year beginning in 2012 shall be the
following percentage of the baseline, as established by the
Administrator pursuant to paragraph (3):

------------------------------------------------------------------------
``Calendar Year                    Percent of Baseline
------------------------------------------------------------------------
2012                                   90
------------------------------------------------------------------------
2013                                 87.5
------------------------------------------------------------------------
2014                                   85
------------------------------------------------------------------------
2015                                 82.5
------------------------------------------------------------------------
2016                                   80
------------------------------------------------------------------------
2017                                 77.5
------------------------------------------------------------------------
2018                                   75
------------------------------------------------------------------------
2019                                   71
------------------------------------------------------------------------
2020                                   67
------------------------------------------------------------------------
2021                                   63
------------------------------------------------------------------------
2022                                   59
------------------------------------------------------------------------
2023                                   54
------------------------------------------------------------------------
2024                                   50
------------------------------------------------------------------------
2025                                   46
------------------------------------------------------------------------
2026                                   42
------------------------------------------------------------------------
2027                                   38
------------------------------------------------------------------------
2028                                   34
------------------------------------------------------------------------
2029                                   30
------------------------------------------------------------------------
2030                                   25
------------------------------------------------------------------------
2031                                   21
------------------------------------------------------------------------
2032                                   17
------------------------------------------------------------------------
after 2032                                   15
------------------------------------------------------------------------

``(3) Baseline.--(A) Within 12 months after the date of
enactment of this section, the Administrator shall promulgate
regulations to establish the baseline for purposes of
paragraph (2). The baseline shall be the sum, expressed in
metric tons of carbon dioxide equivalents, of--
``(i) the annual average consumption of all class II
substances in calendar years 2004, 2005, and 2006; plus
``(ii) the annual average quantity of all class II
substances contained in imported products in calendar years
2004, 2005, and 2006.
``(B) Notwithstanding subparagraph (A), if the
Administrator determines that the baseline is higher than 370
million metric tons of

[[Page H7573]]

carbon dioxide equivalents, then the Administrator shall
establish the baseline at 370 million metric tons of carbon
dioxide equivalents.
``(C) Notwithstanding subparagraph (A), if the
Administrator determines that the baseline is lower than 280
million metric tons of carbon dioxide equivalents, then the
Administrator shall establish the baseline at 280 million
metric tons of carbon dioxide equivalents.
``(4) Distribution of allowances.--
``(A) In general.--Pursuant to the regulations promulgated
under paragraph (1)(A), for each calendar year beginning in
2012, the Administrator shall sell consumption allowances in
accordance with this paragraph.
``(B) Establishment of pools.--The Administrator shall
establish two allowance pools. Eighty percent of the
consumption allowances available for a calendar year shall be
placed in the producer-importer pool, and 20 percent of the
consumption allowances available for a calendar year shall be
placed in the secondary pool.
``(C) Producer-importer pool.--
``(i) Auction.--(I) For each calendar year, the
Administrator shall offer for sale at auction the following
percentage of the consumption allowances in the producer-
importer pool:

------------------------------------------------------------------------
``Calendar Year               Percent Available for Auction
------------------------------------------------------------------------
2012                                   10
------------------------------------------------------------------------
2013                                   20
------------------------------------------------------------------------
2014                                   30
------------------------------------------------------------------------
2015                                   40
------------------------------------------------------------------------
2016                                   50
------------------------------------------------------------------------
2017                                   60
------------------------------------------------------------------------
2018                                   70
------------------------------------------------------------------------
2019                                   80
------------------------------------------------------------------------
2020 and thereafter                                   90
------------------------------------------------------------------------

``(II) Any person who produced or imported any class II
substance during calendar year 2004, 2005, or 2006 may
participate in the auction. No other persons may participate
in the auction unless permitted to do so pursuant to
subclause (III).
``(III) Not later than three years after the date of the
initial auction and from time to time thereafter, the
Administrator shall determine through rulemaking whether any
persons who did not produce or import a class II substance
during calendar year 2004, 2005, or 2006 will be permitted to
participate in future auctions. The Administrator shall base
this determination on the duration, consistency, and scale of
such person's purchases of consumption allowances in the
secondary pool under subparagraph (D)(ii)(III), as well as
economic or technical hardship and other factors deemed
relevant by the Administrator.
``(IV) The Administrator shall set a minimum bid per
consumption allowance of the following:

``(aa) For vintage year 2012, $1.00.
``(bb) For vintage year 2013, $1.20.
``(cc) For vintage year 2014, $1.40.
``(dd) For vintage year 2015, $1.60.
``(ee) For vintage year 2016, $1.80.
``(ff) For vintage year 2017, $2.00.
``(gg) For vintage year 2018 and thereafter, $2.00 adjusted
for inflation after vintage year 2017 based upon the producer
price index as published by the Department of Commerce.

``(ii) Non-auction sale.--(I) For each calendar year, as
soon as practicable after auction, the Administrator shall
offer for sale the remaining consumption allowances in the
producer-importer pool at the following prices:

``(aa) A fee of $1.00 per vintage year 2012 allowance.
``(bb) A fee of $1.20 per vintage year 2013 allowance.
``(cc) A fee of $1.40 per vintage year 2014 allowance.
``(dd) For each vintage year 2015 allowance, a fee equal to
the average of $1.10 and the auction clearing price for
vintage year 2014 allowances.
``(ee) For each vintage year 2016 allowance, a fee equal to
the average of $1.30 and the auction clearing price for
vintage year 2015 allowances.
``(ff) For each vintage year 2017 allowance, a fee equal to
the average of $1.40 and the auction clearing price for
vintage year 2016 allowances.
``(gg) For each allowance of vintage year 2018 and
subsequent vintage years, a fee equal to the auction clearing
price for that vintage year.

``(II) The Administrator shall offer to sell the remaining
consumption allowances in the producer-importer pool to
producers of class II, group II substances and importers of
class II, group II substances in proportion to their relative
allocation share.
``(III) Such allocation share for such sale shall be
determined by the Administrator using such producer's or
importer's annual average data on class II substances from
calendar years 2004, 2005, and 2006, on a carbon dioxide
equivalent basis, and--

``(aa) shall be based on a producer's production, plus
importation, plus acquisitions and purchases from persons who
produced class II substances in the United States during
calendar years 2004, 2005, or 2006, less exportation, less
transfers and sales to persons who produced class II
substances in the United States during calendar years 2004,
2005, or 2006; and
``(bb) for an importer of class II substances that did not
produce in the United States any class II substance during
calendar years 2004, 2005, and 2006, shall be based on the
importer's importation less exportation.

For purposes of item (aa), the Administrator shall account
for 100 percent of class II, group II substances and 60
percent of class II, group I substances. For purposes of item
(bb), the Administrator shall account for 100 percent of
class II, group II substances and 100 percent of class II,
group I substances.
``(IV) Any consumption allowances made available for
nonauction sale to a specific producer or importer of class
II, group II substances but not purchased by the specific
producer or importer shall be made available for sale to any
producer or importer of class II substances during calendar
years 2004, 2005, or 2006. If demand for such consumption
allowances exceeds supply of such consumption allowances, the
Administrator shall develop and utilize criteria for the sale
of such consumption allowances that may include pro rata
shares, historic production and importation, economic or
technical hardship, or other factors deemed relevant by the
Administrator. If the supply of such consumption allowances
exceeds demand, the Administrator may offer such consumption
allowances for sale in the secondary pool as set forth in
subparagraph (D).
``(D) Secondary pool.--(i) For each calendar year, as soon
as practicable after the auction required in subparagraph
(C), the Administrator shall offer for sale the consumption
allowances in the secondary pool at the prices listed in
subparagraph (C)(ii).
``(ii) The Administrator shall accept applications for
purchase of secondary pool consumption allowances from--
``(I) importers of products containing class II, group II
substances;
``(II) persons who purchased any class II, group II
substance directly from a producer or importer of class II,
group II substances for use in a product containing a class
II, group II substance, a manufacturing process, or a
reclamation process;
``(III) persons who did not produce or import a class II
substance during calendar year 2004, 2005, or 2006, but who
the Administrator determines have subsequently taken
significant steps to produce or import a substantial quantity
of any class II, group II substance; and
``(IV) persons who produced or imported any class II
substance during calendar year 2004, 2005, or 2006.
``(iii) If the supply of consumption allowances in the
secondary pool equals or exceeds the demand for consumption
allowances in the secondary pool as presented in the
applications for purchase, the Administrator shall sell the
consumption allowances in the secondary pool to the
applicants in the amounts requested in the applications for
purchase. Any consumption allowances in the secondary pool
not purchased in a calendar year may be rolled over and added
to the quantity available in the secondary pool in the
following year.
``(iv) If the demand for consumption allowances in the
secondary pool as presented in the applications for purchase
exceeds the supply of consumption allowances in the secondary
pool, the Administrator shall sell the consumption allowances
as follows:
``(I) The Administrator shall first sell the consumption
allowances in the secondary pool to any importers of products
containing class II, group II substances in the amounts
requested in their applications for purchase. If the demand
for such consumption allowances exceeds supply of such
consumption allowances, the Administrator shall develop and
utilize criteria for the sale of such consumption allowances
among importers of products containing class II, group II
substances that may include pro rata shares, historic
importation, economic or technical hardship, or other factors
deemed relevant by the Administrator.
``(II) The Administrator shall next sell any remaining
consumption allowances to persons identified in subclauses
(II) and (III) of clause (ii) in the amounts requested in
their applications for purchase. If the demand for such
consumption allowances exceeds remaining supply of such
consumption allowances, the Administrator shall develop and
utilize criteria for the sale of such consumption allowances
among subclauses (II) and (III) applicants that may include
pro rata shares, historic use, economic or technical
hardship, or other factors deemed relevant by the
Administrator.
``(III) The Administrator shall then sell any remaining
consumption allowances to persons who produced or imported
any class II substance during calendar year 2004, 2005, or
2006 in the amounts requested in their applications for
purchase. If demand for such consumption allowances exceeds
remaining supply of such consumption allowances, the
Administrator shall develop and utilize criteria for the sale
of such consumption allowances that may include pro rata
shares, historic production and importation, economic or
technical hardship, or other factors deemed relevant by the
Administrator.
``(IV) Each person who purchases consumption allowances in
a non-auction sale under this subparagraph shall be required
to disclose the person or entity sponsoring or benefitting
from the purchases if such person or

[[Page H7574]]

entity is, in whole or in part, other than the purchaser or
the purchaser's employer.
``(E) Discretion to withhold allowances.--Nothing in this
paragraph prevents the Administrator from exercising
discretion to withhold and retire consumption allowances that
would otherwise be available for auction or nonauction sale.
Not later than 18 months after the date of enactment of this
section, the Administrator shall promulgate regulations
establishing criteria for withholding and retiring
consumption allowances.
``(5) Banking.--A consumption allowance or destruction
offset credit may be used to meet the compliance obligation
requirements of paragraph (1) in--
``(A) the vintage year for the allowance or destruction
offset credit; or
``(B) any calendar year subsequent to the vintage year for
the allowance or destruction offset credit.
``(6) Auctions.--
``(A) Initial regulations.--Not later than 18 months after
the date of enactment of this section, the Administrator
shall promulgate regulations governing the auction of
allowances under this section. Such regulations shall include
the following requirements:
``(i) Frequency; first auction.--Auctions shall be held one
time per year at regular intervals, with the first auction to
be held no later than October 31, 2011.
``(ii) Auction format.--Auctions shall follow a single-
round, sealed-bid, uniform price format.
``(iii) Financial assurance.--The Administrator may
establish financial assurance requirements to ensure that
auction participants can and will perform on their bids.
``(iv) Disclosure of beneficial ownership.--Each bidder in
the auction shall be required to disclose the person or
entity sponsoring or benefitting from the bidder's
participation in the auction if such person or entity is, in
whole or in part, other than the bidder.
``(v) Publication of information.--After the auction, the
Administrator shall, in a timely fashion, publish the number
of bidders, number of winning bidders, the quantity of
allowances sold, and the auction clearing price.
``(vi) Bidding limits in 2012.--In the vintage year 2012
auction, no auction participant may, directly or in concert
with another participant, bid for or purchase more allowances
offered for sale at the auction than the greater of--

``(I) the number of allowances which, when added to the
number of allowances available for purchase by the
participant in the producer-importer pool non-auction sale,
would equal the participant's annual average consumption of
class II, group II substances in calendar years 2004, 2005,
and 2006; or
``(II) the number of allowances equal to the product of--

``(aa) 1.20 multiplied by the participant's allocation
share of the producer-importer pool non-auction sale as
determined under paragraph (4)(C)(ii); and
``(bb) the number of vintage year 2012 allowances offered
at auction.
``(vii) Bidding limits in 2013.--In the vintage year 2013
auction, no auction participant may, directly or in concert
with another participant, bid for or purchase more allowances
offered for sale at the auction than the product of--

``(I) 1.15 multiplied by the ratio of the total number of
vintage year 2012 allowances purchased by the participant
from the auction and from the producer-importer pool non-
auction sale to the total number of vintage year 2012
allowances in the producer-importer pool; and
``(II) the number of vintage year 2013 allowances offered
at auction.

``(viii) Bidding limits in subsequent years.--In the
auctions for vintage year 2014 and subsequent vintage years,
no auction participant may, directly or in concert with
another participant, bid for or purchase more allowances
offered for sale at the auction than the product of--

``(I) 1.15 multiplied by the ratio of the highest number of
allowances required to be held by the participant in any of
the three prior vintage years to meet its compliance
obligation under paragraph (1) to the total number of
allowances in the producer-importer pool for such vintage
year; and
``(II) the number of allowances offered at auction for that
vintage year.

``(ix) Other requirements.--The Administrator may include
in the regulations such other requirements or provisions as
the Administrator considers necessary to promote effective,
efficient, transparent, and fair administration of auctions
under this section.
``(B) Revision of regulations.--The Administrator may, at
any time, revise the initial regulations promulgated under
subparagraph (A) based on the Administrator's experience in
administering allowance auctions by promulgating new
regulations. Such revised regulations need not meet the
requirements identified in subparagraph (A) if the
Administrator determines that an alternative auction design
would be more effective, taking into account factors
including costs of administration, transparency, fairness,
and risks of collusion or manipulation. In determining
whether and how to revise the initial regulations under this
paragraph, the Administrator shall not consider maximization
of revenues to the Federal Government.
``(C) Delegation or contract.--Pursuant to regulations
under this section, the Administrator may, by delegation or
contract, provide for the conduct of auctions under the
Administrator's supervision by other departments or agencies
of the Federal Government or by nongovernmental agencies,
groups, or organizations.
``(7) Payments for allowances.--
``(A) Initial regulations.--Not later than 18 months after
the date of enactment of this section, the Administrator
shall promulgate regulations governing the payment for
allowances purchased in auction and non-auction sales under
this section. Such regulations shall include the requirement
that, in the event that full payment for purchased allowances
is not made on the date of purchase, equal payments shall be
made one time per calendar quarter with all payments for
allowances of a vintage year made by the end of that vintage
year.
``(B) Revision of regulations.-- The Administrator may, at
any time, revise the initial regulations promulgated under
subparagraph (A) based on the Administrator's experience in
administering collection of payments by promulgating new
regulations. Such revised regulations need not meet the
requirements identified in subparagraph (A) if the
Administrator determines that an alternative payment
structure or frequency would be more effective, taking into
account factors including cost of administration,
transparency, and fairness. In determining whether and how to
revise the initial regulations under this paragraph, the
Administrator shall not consider maximization of revenues to
the Federal Government.
``(C) Penalties for non-payment.--Failure to pay for
purchased allowances in accordance with the regulations
promulgated pursuant to this paragraph shall be a violation
of the requirements of subsection (b). Section 113(c)(3)
shall apply in the case of any person who knowingly fails to
pay for purchased allowances in accordance with the
regulations promulgated pursuant to this paragraph.
``(8) Imported products.--If the United States becomes a
party or otherwise adheres to a multilateral agreement,
including any amendment to the Montreal Protocol on
Substances That Deplete the Ozone Layer, which restricts the
production or consumption of class II, group II substances--
``(A) as of the date on which such agreement or amendment
enters into force, it shall no longer be unlawful for any
person to import from a party to such agreement or amendment
any product containing any class II, group II substance whose
production or consumption is regulated by such agreement or
amendment without holding one consumption allowance or one
destruction offset credit for each carbon dioxide equivalent
ton of the class II, group II substance;
``(B) the Administrator shall promulgate regulations within
12 months of the date the United States becomes a party or
otherwise adheres to such agreement or amendment, or the date
on which such agreement or amendment enters into force,
whichever is later, to establish a new baseline for purposes
of paragraph (2), which new baseline shall be the original
baseline less the carbon dioxide equivalent of the annual
average quantity of any class II substances regulated by such
agreement or amendment contained in products imported from
parties to such agreement or amendment in calendar years
2004, 2005, and 2006;
``(C) as of the date on which such agreement or amendment
enters into force, no person importing any product containing
any class II, group II substance may, directly or in concert
with another person, purchase any consumption allowances for
sale by the Administrator for the importation of products
from a party to such agreement or amendment that contain any
class II, group II substance restricted by such agreement or
amendment; and
``(D) the Administrator may adjust the two allowance pools
established in paragraph (4) such that up to 90 percent of
the consumption allowances available for a calendar year are
placed in the producer-importer pool with the remaining
consumption allowances placed in the secondary pool.
``(9) Offsets.--
``(A) Chlorofluorocarbon destruction.--Within 18 months
after the date of enactment of this section, the
Administrator shall promulgate regulations to provide for the
issuance of offset credits for the destruction, in the
calendar year 2012 or later, of chlorofluorocarbons in the
United States. The Administrator shall establish and
distribute to the destroying entity a quantity of destruction
offset credits equal to 0.8 times the number of metric tons
of carbon dioxide equivalents of reduction achieved through
the destruction. No destruction offset credits shall be
established for the destruction of a class II, group II
substance.
``(B) Definition.--For purposes of this paragraph, the term
`destruction' means the conversion of a substance by thermal,
chemical, or other means to another substance with little or
no carbon dioxide equivalent value and no ozone depletion
potential.
``(C) Regulations.--The regulations promulgated under this
paragraph shall include standards and protocols for project
eligibility, certification of destroyers, monitoring,
tracking, destruction efficiency, quantification of project
and baseline emissions and carbon dioxide equivalent value,
and verification. The Administrator shall ensure that
destruction offset credits represent real and verifiable
destruction of chlorofluorocarbons or other class I or class

[[Page H7575]]

II, group I, substances authorized under subparagraph (D).
``(D) Other substances.--The Administrator may promulgate
regulations to add to the list of class I and class II, group
I, substances that may be destroyed for destruction offset
credits, taking into account a candidate substance's carbon
dioxide equivalent value, ozone depletion potential,
prevalence in banks in the United States, and emission rates,
as well as the need for additional cost containment under the
class II, group II cap and the integrity of the class II,
group II cap. The Administrator shall not add a class I or
class II, group I substance to the list if the consumption of
the substance has not been completely phased-out
internationally (except for essential use exemptions or other
similar exemptions) pursuant to the Montreal Protocol.
``(E) Extension of offsets.--(i) At any time after the
Administrator promulgates regulations pursuant to
subparagraph (A), the Administrator may, pursuant to the
requirements of part D of title VII and based on the carbon
dioxide equivalent value of the substance destroyed, add the
types of destruction projects authorized to receive
destruction offset credits under this paragraph to the list
of types of projects eligible for offset credits under
section 733. If such projects are added to the list under
section 733, the issuance of offset credits for such projects
under part D of title VII shall be governed by the
requirements of such part D, while the issuance of offset
credits for such projects under this paragraph shall be
governed by the requirements of this paragraph. Nothing in
this paragraph shall affect the issuance of offset credits
under section 740.
``(ii) The Administrator shall not make the addition under
clause (i) unless the Administrator finds that insufficient
destruction is occurring or is projected to occur under this
paragraph and that the addition would increase destruction.
``(iii) In no event shall more than one destruction offset
credit be issued under title VII and this section for the
destruction of the same quantity of a substance.
``(10) Legal status of allowances and credits.--None of the
following constitutes a property right:
``(A) A production or consumption allowance.
``(B) A destruction offset credit.
``(c) Deadlines for Compliance.--Notwithstanding the
deadlines specified for class II substances in sections 608,
609, 610, 612, and 613 that occur prior to January 1, 2009,
the deadline for promulgating regulations under those
sections for class II, group II substances shall be January
1, 2012.
``(d) Exceptions for Essential Uses.--Notwithstanding any
phase down of production and consumption required by this
section, to the extent consistent with any applicable
multilateral agreement to which the United States is a party
or otherwise adheres, the Administrator may provide the
following exceptions for essential uses:
``(1) Medical devices.--The Administrator, after notice and
opportunity for public comment, and in consultation with the
Commissioner of the Food and Drug Administration, may provide
an exception for the production and consumption of class II,
group II substances solely for use in medical devices.
``(2) Aviation and space vehicle safety.--The
Administrator, after notice and opportunity for public
comment, may authorize the production and consumption of
limited quantities of class II, group II substances solely
for the purposes of aviation or space vehicle safety if
either the Administrator of the Federal Aviation
Administration or the Administrator of the National
Aeronautics and Space Administration, in consultation with
the Administrator, determines that no safe and effective
substitute has been developed and that such authorization is
necessary for aviation or space flight safety purposes.
``(e) Developing Countries.--Notwithstanding any phase down
of production required by this section, the Administrator,
after notice and opportunity for public comment, may
authorize the production of limited quantities of class II,
group II substances in excess of the amounts otherwise
allowable under this section solely for export to, and use
in, developing countries. Any production authorized under
this subsection shall be solely for purposes of satisfying
the basic domestic needs of such countries as provided in
applicable international agreements, if any, to which the
United States is a party or otherwise adheres.
``(f) National Security; Fire Suppression, etc.--The
provisions of subsection (f) and paragraphs (1) and (2) of
subsection (g) of section 604 shall apply to any consumption
and production phase down of class II, group II substances in
the same manner and to the same extent, consistent with any
applicable international agreement to which the United States
is a party or otherwise adheres, as such provisions apply to
the substances specified in such subsection.
``(g) Accelerated Schedule.--In lieu of section 606, the
provisions of paragraphs (1), (2), and (3) of this subsection
shall apply in the case of class II, group II substances.
``(1) In general.--The Administrator shall promulgate
initial regulations not later than 18 months after the date
of enactment of this section, and revised regulations any
time thereafter, which establish a schedule for phasing down
the consumption (and, if the condition in subsection
(b)(1)(B) is met, the production) of class II, group II
substances that is more stringent than the schedule set forth
in this section if, based on the availability of substitutes,
the Administrator determines that such more stringent
schedule is practicable, taking into account technological
achievability, safety, and other factors the Administrator
deems relevant, or if the Montreal Protocol, or any
applicable international agreement to which the United States
is a party or otherwise adheres, is modified or established
to include a schedule or other requirements to control or
reduce production, consumption, or use of any class II, group
II substance more rapidly than the applicable schedule under
this section.
``(2) Petition.--Any person may submit a petition to
promulgate regulations under this subsection in the same
manner and subject to the same procedures as are provided in
section 606(b).
``(3) Inconsistency.--If the Administrator determines that
the provisions of this section regarding banking, allowance
rollover, or destruction offset credits create a significant
potential for inconsistency with the requirements of any
applicable international agreement to which the United States
is a party or otherwise adheres, the Administrator may
promulgate regulations restricting the availability of
banking, allowance rollover, or destruction offset credits to
the extent necessary to avoid such inconsistency.
``(h) Exchange.--Section 607 shall not apply in the case of
class II, group II substances. Production and consumption
allowances for class II, group II substances may be freely
exchanged or sold but may not be converted into allowances
for class II, group I substances.
``(i) Labeling.--(1) In applying section 611 to products
containing or manufactured with class II, group II
substances, in lieu of the words `destroying ozone in the
upper atmosphere' on labels required under section 611 there
shall be substituted the words `contributing to global
warming'.
``(2) The Administrator may, through rulemaking, exempt
from the requirements of section 611 products containing or
manufactured with class II, group II substances determined to
have little or no carbon dioxide equivalent value compared to
other substances used in similar products.
``(j) Nonessential Products.--For the purposes of section
610, class II, group II substances shall be regulated under
section 610(b), except that in applying section 610(b) the
word `hydrofluorocarbon' shall be substituted for the word
`chlorofluorocarbon' and the term `class II, group II' shall
be substituted for the term `class I'. Class II, group II
substances shall not be subject to the provisions of section
610(d).
``(k) International Transfers.--In the case of class II,
group II substances, in lieu of section 616, this subsection
shall apply. To the extent consistent with any applicable
international agreement to which the United States is a party
or otherwise adheres, including any amendment to the Montreal
Protocol, the United States may engage in transfers with
other parties to such agreement or amendment under the
following conditions:
``(1) The United States may transfer production allowances
to another party to such agreement or amendment if, at the
time of the transfer, the Administrator establishes revised
production limits for the United States accounting for the
transfer in accordance with regulations promulgated pursuant
to this subsection.
``(2) The United States may acquire production allowances
from another party to such agreement or amendment if, at the
time of the transfer, the Administrator finds that the other
party has revised its domestic production limits in the same
manner as provided with respect to transfers by the United
States in the regulations promulgated pursuant to this
subsection.
``(l) Relationship to Other Laws.--
``(1) State laws.--For purposes of section 116, the
requirements of this section for class II, group II
substances shall be treated as requirements for the control
and abatement of air pollution.
``(2) Multilateral agreements.--Section 614 shall apply to
the provisions of this section concerning class II, group II
substances, except that for the words `Montreal Protocol'
there shall be substituted the words `Montreal Protocol, or
any applicable multilateral agreement to which the United
States is a party or otherwise adheres that restricts the
production or consumption of class II, group II substances,'
and for the words `Article 4 of the Montreal Protocol' there
shall be substituted `any provision of such multilateral
agreement regarding trade with non-parties'.
``(3) Federal facilities.--For purposes of section 118, the
requirements of this section for class II, group II
substances and corresponding State, interstate, and local
requirements, administrative authority, and process and
sanctions shall be treated as requirements for the control
and abatement of air pollution within the meaning of section
118.
``(m) Carbon Dioxide Equivalent Value.--(1) In lieu of
section 602(e), the provisions of this subsection shall apply
in the case of class II, group II substances. Simultaneously
with establishing the list of class II, group II substances,
and simultaneously with any addition to that list, the
Administrator shall publish the carbon dioxide equivalent
value of each listed class II, group II substance, based on a
determination of the number of metric tons of carbon dioxide
that makes the same contribution to global warming over

[[Page H7576]]

100 years as 1 metric ton of each class II, group II
substance.
``(2) Not later than February 1, 2017, and not less than
every 5 years thereafter, the Administrator shall--
``(A) review, and if appropriate, revise the carbon dioxide
equivalent values established for class II, group II
substances based on a determination of the number of metric
tons of carbon dioxide that makes the same contributions to
global warming over 100 years as 1 metric ton of each class
II, group II substance; and
``(B) publish in the Federal Register the results of that
review and any revisions.
``(3) A revised determination published in the Federal
Register under paragraph (2)(B) shall take effect for
production of class II, group II substances, consumption of
class II, group II substances, and importation of products
containing class II, group II substances starting on January
1 of the first calendar year starting at least 9 months after
the date on which the revised determination was published.
``(4) The Administrator may decrease the frequency of
review and revision under paragraph (2) if the Administrator
determines that such decrease is appropriate in order to
synchronize such review and revisions with any similar review
process carried out pursuant to the United Nations Framework
Convention on Climate Change, an agreement negotiated under
that convention, The Vienna Convention for the Protection of
the Ozone Layer, or an agreement negotiated under that
convention, except that in no event shall the Administrator
carry out such review and revision any less frequently than
every 10 years.
``(n) Reporting Requirements.--In lieu of subsections (b)
and (c) of section 603, paragraphs (1) and (2) of this
subsection shall apply in the case of class II, group II
substances:
``(1) In general.--On a quarterly basis, or such other
basis (not less than annually) as determined by the
Administrator, each person who produced, imported, or
exported a class II, group II substance, or who imported a
product containing a class II, group II substance, shall file
a report with the Administrator setting forth the carbon
dioxide equivalent amount of the substance that such person
produced, imported, or exported, as well as the amount that
was contained in products imported by that person, during the
preceding reporting period. Each such report shall be signed
and attested by a responsible officer. If all other reporting
is complete, no such report shall be required from a person
after April 1 of the calendar year after such person
permanently ceases production, importation, and exportation
of the substance, as well as importation of products
containing the substance, and so notifies the Administrator
in writing. If the United States becomes a party or otherwise
adheres to a multilateral agreement, including any amendment
to the Montreal Protocol on Substances That Deplete the Ozone
Layer, that restricts the production or consumption of class
II, group II substances, then, if all other reporting is
complete, no such report shall be required from a person with
respect to importation from parties to such agreement or
amendment of products containing any class II, group II
substance restricted by such agreement or amendment, after
April 1 of the calendar year following the year during which
such agreement or amendment enters into force.
``(2) Baseline reports for class ii, group ii substances.--
``(A) In general.--Unless such information has been
previously reported to the Administrator, on the date on
which the first report under paragraph (1) of this subsection
is required to be filed, each person who produced, imported,
or exported a class II, group II substance, or who imported a
product containing a class II substance, (other than a
substance added to the list of class II, group II substances
after the publication of the initial list of such substances
under this section), shall file a report with the
Administrator setting forth the amount of such substance that
such person produced, imported, exported, or that was
contained in products imported by that person, during each of
calendar years 2004, 2005, and 2006.
``(B) Producers.--In reporting under subparagraph (A), each
person who produced in the United States a class II substance
during calendar years 2004, 2005, or 2006 shall--
``(i) report all acquisitions or purchases of class II
substances during each of calendar years 2004, 2005, and 2006
from all other persons who produced in the United States a
class II substance during calendar years 2004, 2005, or 2006,
and supply evidence of such acquisitions and purchases as
deemed necessary by the Administrator; and
``(ii) report all transfers or sales of class II substances
during each of calendar years 2004, 2005, and 2006 to all
other persons who produced in the United States a class II
substance during calendar years 2004, 2005, or 2006, and
supply evidence of such transfers and sales as deemed
necessary by the Administrator.
``(C) Added substances.--In the case of a substance added
to the list of class II, group II substances after
publication of the initial list of such substances under this
section, each person who produced, imported, exported, or
imported products containing such substance in calendar year
2004, 2005, or 2006 shall file a report with the
Administrator within 180 days after the date on which such
substance is added to the list, setting forth the amount of
the substance that such person produced, imported, and
exported, as well as the amount that was contained in
products imported by that person, in calendar years 2004,
2005, and 2006.
``(o) Stratospheric Ozone and Climate Protection Fund.--
``(1) In general.--There is established in the Treasury of
the United States a Stratospheric Ozone and Climate
Protection Fund.
``(2) Deposits.--The Administrator shall deposit all
proceeds from the auction and non-auction sale of allowances
under this section into the Stratospheric Ozone and Climate
Protection Fund.
``(3) Use.--Amounts deposited into the Stratospheric Ozone
and Climate Protection Fund shall be available, subject to
appropriations, exclusively for the following purposes:
``(A) Recovery, recycling, and reclamation.--The
Administrator may utilize funds to establish a program to
incentivize the recovery, recycling, and reclamation of any
Class II substances in order to reduce emissions of such
substances.
``(B) Multilateral fund.--If the United States becomes a
party or otherwise adheres to a multilateral agreement,
including any amendment to the Montreal Protocol on
Substances That Deplete the Ozone Layer, which restricts the
production or consumption of class II, group II substances,
the Administrator may utilize funds to meet any related
contribution obligation of the United States to the
Multilateral Fund for the Implementation of the Montreal
Protocol or similar multilateral fund established under such
multilateral agreement.
``(C) Best-in-class appliances deployment program.--The
Secretary of Energy is authorized to utilize funds to carry
out the purposes of section 214 of the American Clean Energy
and Security Act of 2009.
``(D) Low global warming product transition assistance
program.--
``(i) In general.--The Administrator, in consultation with
the Secretary of Energy, may utilize funds in fiscal years
2012 through 2022 to establish a program to provide financial
assistance to manufacturers of products containing class II,
group II substances to facilitate the transition to products
that contain or utilize alternative substances with no or low
carbon dioxide equivalent value and no ozone depletion
potential.
``(ii) Definition.--In this subparagraph, the term
`products' means refrigerators, freezers, dehumidifiers, air
conditioners, foam insulation, technical aerosols, fire
protection systems, and semiconductors.
``(iii) Financial assistance.--The Administrator may
provide financial assistance to manufacturers pursuant to
clause (i) for--

``(I) the design and configuration of new products that use
alternative substances with no or low carbon dioxide
equivalent value and no ozone depletion potential; and
``(II) the redesign and retooling of facilities for the
manufacture of products in the United States that use
alternative substances with no or low carbon dioxide
equivalent value and no ozone depletion potential.

``(iv) Reports.--For any fiscal year during which the
Administrator provides financial assistance pursuant to this
subparagraph, the Administrator shall submit a report to the
Congress within 3 months of the end of such fiscal year
detailing the amounts, recipients, specific purposes, and
results of the financial assistance provided.''.
(b) Table of Contents.--The table of contents of title VI
of the Clean Air Act (42 U.S.C. 7671 et seq.) is amended by
adding the following new item at the end thereof:

``Sec. 619. Hydrofluorocarbons (HFCs).''.
(c) Fire Suppression Agents.--Section 605(a) of the Clean
Air Act (42 U.S.C. 7671(a)) is amended--
(1) by striking ``or'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; or''; and
(3) by adding the following new paragraph after paragraph
(3):
``(4) is listed as acceptable for use as a fire suppression
agent for nonresidential applications in accordance with
section 612(c).''.
(d) Motor Vehicle Air Conditioners.--
(1) Section 609(e) of the Clean Air Act (42 U.S.C.
7671h(e)) is amended by inserting ``, group I'' after each
reference to ``class II'' in the text and heading.
(2) Section 609 of the Clean Air Act (42 U.S.C. 7671h) is
amended by adding the following new subsection after
subsection (e):
``(f) Class II, Group II Substances.--
``(1) Repair.--The Administrator may promulgate regulations
establishing requirements for repair of motor vehicle air
conditioners prior to adding a class II, group II substance.
``(2) Small containers.--(A) The Administrator may
promulgate regulations establishing servicing practices and
procedures for recovery of class II, group II substances from
containers which contain less than 20 pounds of such class
II, group II substances.
``(B) Not later than 18 months after enactment of this
subsection, the Administrator shall either promulgate
regulations requiring that containers which contain less than
20 pounds of a class II, group II substance be equipped with
a device or technology that limits refrigerant emissions and
leaks from the container and limits refrigerant emissions and
leaks during the transfer of refrigerant from the container
to the motor vehicle air conditioner or issue a determination
that such requirements are not necessary or appropriate.

[[Page H7577]]

``(C) Not later than 18 months after enactment of this
subsection, the Administrator shall promulgate regulations
establishing requirements for consumer education materials on
best practices associated with the use of containers which
contain less than 20 pounds of a class II, group II substance
and prohibiting the sale or distribution, or offer for sale
or distribution, of any class II, group II substance in any
container which contains less than 20 pounds of such class
II, group II substance, unless consumer education materials
consistent with such requirements are displayed and available
at point-of-sale locations, provided to the consumer, or
included in or on the packaging of the container which
contain less than 20 pounds of a class II, group II
substance.
``(D) The Administrator may, through rulemaking, extend the
requirements established under this paragraph to containers
which contain 30 pounds or less of a class II, group II
substance if the Administrator determines that such action
would produce significant environmental benefits.
``(3) Restriction of sales.--Effective January 1, 2014, no
person may sell or distribute or offer to sell or distribute
or otherwise introduce into interstate commerce any motor
vehicle air conditioner refrigerant in any size container
unless the substance has been found acceptable for use in a
motor vehicle air conditioner under section 612.''.
(e) Safe Alternatives Policy.--Section 612(e) of the Clean
Air Act (42 U.S.C. 7671k(e)) is amended by inserting ``or
class II'' after each reference to ``class I''.

SEC. 333. BLACK CARBON.

(a) Definition.--As used in this section, the term ``black
carbon'' means primary light absorbing aerosols, as defined
by the Administrator, based on the best available science.
(b) Black Carbon Abatement Report.--Not later than one year
after the date of enactment of this section, the
Administrator shall, in consultation with other appropriate
Federal agencies, submit to Congress a report regarding black
carbon emissions. The report shall include the following:
(1) A summary of the current information and research that
identifies--
(A) an inventory of the major sources of black carbon
emissions in the United States and throughout the world,
including--
(i) an estimate of the quantity of current and projected
future emissions; and
(ii) the net climate forcing of the emissions from such
sources, including consideration of co-emissions of other
pollutants;
(B) effective and cost-effective control technologies,
operations, and strategies for additional domestic and
international black carbon emissions reductions, such as
diesel retrofit technologies on existing on-road, non-road,
and stationary engines and programs to address residential
cookstoves, and forest and agriculture-based burning;
(C) potential metrics and approaches for quantifying the
climatic effects of black carbon emissions, including its
radiative forcing and warming effects, that may be used to
compare the climate benefits of different mitigation
strategies, including an assessment of the uncertainty in
such metrics and approaches; and
(D) the public health and environmental benefits associated
with additional controls for black carbon emissions.
(2) Recommendations regarding--
(A) development of additional emissions monitoring
techniques and capabilities, modeling, and other black
carbon-related areas of study;
(B) areas of focus for additional study of technologies,
operations, and strategies with the greatest potential to
reduce emissions of black carbon and associated public
health, economic, and environmental impacts associated with
these emissions; and
(C) actions, in addition to those identified by the
Administrator under section 851 of the Clean Air Act (as
added by subsection (c)), the Federal Government may take to
encourage or require reductions in black carbon emissions.
(c) Black Carbon Mitigation.--Title VIII of the Clean Air
Act, as added by section 331 of this Act, and amended by
section 222 of this Act, is further amended by adding after
part D the following new part:

``PART E--BLACK CARBON

``SEC. 851. BLACK CARBON.

``(a) Domestic Black Carbon Mitigation.--Not later than 18
months after the date of enactment of this section, the
Administrator, taking into consideration the public health
and environmental impacts of black carbon emissions,
including the effects on global and regional warming, the
Arctic, and other snow and ice-covered surfaces, shall
propose regulations under the existing authorities of this
Act to reduce emissions of black carbon or propose a finding
that existing regulations promulgated pursuant to this Act
adequately regulate black carbon emissions. Not later than
two years after the date of enactment of this section, the
Administrator shall promulgate final regulations under the
existing authorities of this Act or finalize the proposed
finding. Such regulations shall not apply to specific types,
classes, categories, or other suitable groupings of emissions
sources that the Administrator finds are subject to adequate
regulation.
``(b) International Black Carbon Mitigation.--
``(1) Report.--Not later than one year after the date of
enactment of this section, the Administrator, in coordination
with the Secretary of State and other appropriate Federal
agencies, shall transmit a report to Congress on the amount,
type, and direction of all present United States financial,
technical, and related assistance to foreign countries to
reduce, mitigate, and otherwise abate black carbon emissions.
``(2) Other opportunities.--The report required under
paragraph (1) shall also identify opportunities and
recommendations, including action under existing authorities,
to achieve significant black carbon emission reductions in
foreign countries through technical assistance or other
approaches to--
``(A) promote sustainable solutions to bring clean,
efficient, safe, and affordable stoves, fuels, or both stoves
and fuels to residents of developing countries that are
reliant on solid fuels such as wood, dung, charcoal, coal, or
crop residues for home cooking and heating, so as to help
reduce the public health, environmental, and economic impacts
of black carbon emissions from these sources by--
``(i) identifying key regions for large-scale demonstration
efforts, and key partners in each such region; and
``(ii) developing for each such region a large-scale
implementation strategy with a goal of collectively reaching
20,000,000 homes over 5 years with interventions that will--

``(I) increase stove efficiency by over 50 percent (or such
other goal as determined by the Administrator);
``(II) reduce emissions of black carbon by over 60 percent
(or such other goal as determined by the Administrator); and
``(III) reduce the incidence of severe pneumonia in
children under 5 years old by over 30 percent (or such other
goal as determined by the Administrator);

``(B) make technological improvements to diesel engines and
provide greater access to fuels that emit less or no black
carbon;
``(C) reduce unnecessary agricultural or other biomass
burning where feasible alternatives exist;
``(D) reduce unnecessary fossil fuel burning that produces
black carbon where feasible alternatives exist;
``(E) reduce other sources of black carbon emissions; and
``(F) improve capacity to achieve greater compliance with
existing laws to address black carbon emissions.''.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.

SEC. 334. STATES.

Section 116 of the Clean Air Act (42 U.S.C. 7416) is
amended by adding the following at the end thereof: ``For the
purposes of this section, the phrases `standard or limitation
respecting emissions of air pollutants' and `requirements
respecting control or abatement of air pollution' shall
include any provision to: cap greenhouse gas emissions,
require surrender to the State or a political subdivision
thereof of emission allowances or offset credits established
or issued under this Act, and require the use of such
allowances or credits as a means of demonstrating compliance
with requirements established by a State or political
subdivision thereof.''.

SEC. 335. STATE PROGRAMS.

Title VIII of the Clean Air Act, as added by section 331 of
this Act and amended by several sections of this Act, is
further amended by adding after part E (as added by section
333(c) of this Act) the following new part:

``PART F--MISCELLANEOUS

``SEC. 861. STATE PROGRAMS.

``Notwithstanding section 116, no State or political
subdivision thereof shall implement or enforce a cap and
trade program that covers any capped emissions emitted during
the years 2012 through 2017. For purposes of this section,
the term `cap and trade program' means a system of greenhouse
gas regulation under which a State or political subdivision
issues a limited number of tradable instruments in the nature
of emission allowances and requires that sources within its
jurisdiction surrender such tradeable instruments for each
unit of greenhouse gases emitted during a compliance period.
For purposes of this section, a `cap-and-trade program' does
not include a target or limit on greenhouse gas emissions
adopted by a State or political subdivision that is
implemented other than through the issuance and surrender of
a limited number of tradable instruments in the nature of
emission allowances, nor does it include any other standard,
limit, regulation, or program to reduce greenhouse gas
emissions that is not implemented through the issuance and
surrender of a limited number of tradeable instruments in the
nature of emission allowances. For purposes of this section,
the term `cap and trade program' does not include, among
other things, fleet-wide motor vehicle emission requirements
that allow greater emissions with increased vehicle
production, or requirements that fuels, or other products,
meet an average pollution emission rate or lifecycle
greenhouse gas standard.

``SEC. 862. GRANTS FOR SUPPORT OF AIR POLLUTION CONTROL
PROGRAMS.

``The Administrator is authorized to make grants to air
pollution control agencies pursuant to section 105 for
purposes of assisting in the implementation of programs to
address global warming established under the Safe Climate
Act.''.

SEC. 336. ENFORCEMENT.

(a) Remand.--Section 307(b) of the Clean Air Act (42 U.S.C.
7607(b)) is amended by adding the following new paragraphs at
the end thereof:

[[Page H7578]]

``(3) If the court determines that any action of the
Administrator is arbitrary, capricious, or otherwise
unlawful, the court may remand such action, without vacatur,
if vacatur would impair or delay protection of the
environment or public health or otherwise undermine the
timely achievement of the purposes of this Act.
``(4) If the court determines that any action of the
Administrator is arbitrary, capricious, or otherwise
unlawful, and remands the matter to the Administrator, the
Administrator shall complete final action on remand within an
expeditious time period no longer than the time originally
allowed for the action or one year, whichever is less, unless
the court on motion determines that a shorter or longer
period is necessary, appropriate, and consistent with the
purposes of this Act. The court of appeals shall have
jurisdiction to enforce a deadline for action on remand under
this subparagraph.''.
(b) Petition for Reconsideration.--Section 307(d)(7)(B) of
the Clean Air Act (42 U.S.C. 7607(d)(7)(B)) is amended as
follows:
(1) By inserting after the second sentence ``If a petition
for reconsideration is filed, the Administrator shall take
final action on such petition, including promulgation of
final action either revising or determining not to revise the
action for which reconsideration is sought, within 150 days
after the petition is received by the Administrator or the
petition shall be deemed denied for the purpose of judicial
review.''.
(2) By amending the third sentence to read as follows:
``Such person may seek judicial review of such denial, or of
any other final action, by the Administrator, in response to
a petition for reconsideration, in the United States court of
appeals for the appropriate circuit (as provided in
subsection (b)).''.

SEC. 337. CONFORMING AMENDMENTS.

(a) Federal Enforcement.--Section 113 of the Clean Air Act
(42 U.S.C. 7413) is amended as follows:
(1) In subsection (a)(3), by striking ``or title VI,'' and
inserting ``title VI, title VII, or title VIII''.
(2) In subsection (b), by striking ``or a major stationary
source'' and inserting ``a major stationary source, or a
covered EGU under title VIII'' in the material preceding
paragraph (1).
(3) In paragraph (2) of subsection (b), by striking ``or
title VI'' and inserting ``title VI, title VII, or title
VIII''.
(4) In subsection (c)--
(A) in the first sentence of paragraph (1), by striking
``or title VI (relating to stratospheric ozone control),''
and inserting ``title VI, title VII, or title VIII,''; and
(B) in the first sentence of paragraph (3), by striking
``or VI'' and inserting ``VI, VII, or VIII''.
(5) In subsection (d)(1)(B), by striking ``or VI'' and
inserting ``VI, VII, or VIII''.
(6) In subsection (f), in the first sentence, by striking
``or VI'' and inserting ``VI, VII, or VIII''.
(b) Retention of State Authority.--Section 116 of the Clean
Air Act (42 U.S.C. 7416) is amended as follows:
(1) By striking ``and 233'' and inserting ``233''.
(2) By striking ``of moving sources)'' and inserting ``of
moving sources), and 861 (preempting certain State greenhouse
gas programs for a limited time)''.
(c) Inspections, Monitoring, and Entry.--Section 114(a) of
the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking
``section 112,'' and all that follows through ``(ii)'' and
inserting the following: ``section 112, or any regulation of
greenhouse gas emissions under title VII or VIII, (ii)''.
(d) Enforcement.--Subsection (f) of section 304 of the
Clean Air Act (42 U.S.C. 7604(f)) is amended as follows:
(1) By striking ``; or'' at the end of paragraph (3)
thereof and inserting a comma.
(2) By striking the period at the end of paragraph (4)
thereof and inserting ``, or''.
(3) By adding the following after paragraph (4) thereof:
``(5) any requirement of title VII or VIII.''.
(e) Administrative Proceedings and Judicial Review.--
Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended
as follows:
(1) In subsection (a), by striking ``, or section 306'' and
inserting ``section 306, or title VII or VIII''.
(2) In subsection (b)(1)--
(A) by striking ``,,'' and inserting ``,'' in each place
such punctuation appears; and
(B) by striking ``section 120,'' in the first sentence and
inserting ``section 120, any final action under title VII or
VIII,''.
(3) In subsection (d)(1) by amending subparagraph (S) to
read as follows:
``(S) the promulgation or revision of any regulation under
title VII or VIII,''.

SEC. 338. DAVIS-BACON COMPLIANCE.

(a) In General.--Notwithstanding any other provision of law
and in a manner consistent with other provisions in this Act,
to receive emission allowances or funding under this Act, or
the amendments made by this Act, the recipient shall provide
reasonable assurances that all laborers and mechanics
employed by contractors and subcontractors on projects funded
directly by or assisted in whole or in part by and through
the Federal Government pursuant to this Act, or the
amendments made by this Act, or by any entity established in
accordance with this Act, or the amendments made by this Act,
including the Carbon Storage Research Corporation, will be
paid wages at rates not less than those prevailing on
projects of a character similar in the locality as determined
by the Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code (commonly known as
the ``Davis-Bacon Act''). With respect to the labor standards
specified in this section, the Secretary of Labor shall have
the authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
section 3145 of title 40, United States Code.
(b) Exemption.--Neither subsection (a) nor the requirements
of subchapter IV of chapter 31 of title 40, United States
Code, shall apply to retrofitting of the following:
(1) Single family homes (both attached and detached) under
section 202.
(2) Owner-occupied residential units in larger buildings
that have their own dedicated space-conditioning systems
under section 202.
(3) Residential buildings (as defined in section 202(a)(5))
if designed for residential use by less than 4 families.
(4) Nonresidential buildings (as defined in section
202(a)(1)) if the net interior space of such nonresidential
building is less than 6,500 square feet.

SEC. 339. NATIONAL STRATEGY FOR DOMESTIC BIOLOGICAL CARBON
SEQUESTRATION.

Not later than 1 year after the date of enactment of this
Act, the Administrator of the Environmental Protection
Agency, in consultation with the Secretary of Energy, the
Secretary of Agriculture, the Secretary of the Interior, and
the heads of such other relevant Federal agencies as the
President may designate, shall submit to Congress a report
setting forth a unified and comprehensive strategy to address
the key legal, regulatory, technological, and other barriers
to maximizing the potential for sustainable biological
sequestration of carbon within the United States.

SEC. 340. REDUCING ACID RAIN AND MERCURY POLLUTION.

Not later than 18 months after the date of enactment of
this Act, the Administrator shall submit to Congress a report
that analyzes the effects of different carbon dioxide
reduction strategies and technologies on the emissions of
mercury, sulfur dioxide, and nitrogen oxide, which cause acid
rain, particulate matter, ground level ozone, mercury
contamination, and other environmental problems. The report
shall assess a variety of carbon reduction technologies,
including the application of various carbon capture and
sequestration technologies for both new and existing power
plants. The report shall assess the current scientific and
technical understanding of the interplay between the various
technologies and emissions of air pollutants, identify
hurdles to strategies that could cost-effectively reduce
emissions of multiple pollutants, and make appropriate
recommendations.

Subtitle D--Carbon Market Assurance

SEC. 341. CARBON MARKET ASSURANCE.

(a) Amendment.--The Federal Power Act (16 U.S.C. 791a and
following) is amended by adding at the end the following:

``PART IV--CARBON MARKET ASSURANCE

``SEC. 401. OVERSIGHT AND ASSURANCE OF CARBON MARKETS.

``(a) Definitions.--In this section:
``(1) Contract of sale.--The term `contract of sale'
includes sales, agreements of sale, and agreements to sell.
``(1) Covered entity.--The term `covered entity' shall have
the meaning given in section 700 of the Clean Air Act.
``(2) Regulated allowance.--The term `regulated allowance'
means any emission allowance, compensatory allowance, offset
credit, or Federal renewable electricity credit established
or issued under the American Clean Energy and Security Act of
2009.
``(3) Regulated instrument.--The term `regulated
instrument' means a regulated allowance or a regulated
allowance derivative.
``(b) Regulated Allowance Market.--
``(1) Authority.--The Commission shall promulgate
regulations for the establishment, operation, and oversight
of markets for regulated allowances not later than 18 months
after the date of the enactment of this section, and from
time to time thereafter as may be appropriate.
``(2) Regulations.--The regulations promulgated pursuant to
paragraph (1) shall--
``(A) provide for effective and comprehensive market
oversight;
``(B) prohibit fraud, market manipulation, and excess
speculation, and provide measures to limit unreasonable
fluctuation in the prices of regulated allowances;
``(C) facilitate compliance with title VII of the Clean Air
Act by covered entities;
``(D) ensure market transparency and recordkeeping deemed
necessary and appropriate by the Commission to provide for
efficient price discovery; prevention of fraud, market
manipulation, and excess speculation; and compliance with
title VII of the Clean Air Act and section 610 of the Public
Utility Regulatory Policies Act of 1978;
``(E) as necessary, ensure that position limitations for
individual market participants are established with respect
to each class of regulated allowances;
``(F) as necessary, ensure that margin requirements are
established for each class of regulated allowances;
``(G) provide for the formation and operation of a fair,
orderly and liquid national market system that allows for the
best execution in the trading of regulated allowances;

[[Page H7579]]

``(H) limit or eliminate counterparty risks, market power
concentration risks, and other risks associated with trading
regulated allowances outside of trading facilities
``(I) establish standards for qualification as, and
operation of, trading facilities for regulated allowances;
``(J) establish standards for qualification as, and
operation of, clearing organizations for trading facilities
for regulated allowances; and
``(K) include such other requirements as necessary to
preserve market integrity and facilitate compliance with
title VII of the Clean Air Act and section 610 of the Public
Utility Regulatory Policies Act of 1978 and the regulations
promulgated under such title and such section.
``(3) Enforcement.--
``(A) In general.--If the Commission determines, after
notice and an opportunity for a hearing on the record, that
any entity has violated any rule or order issued by the
Commission under this subsection, the Commission may issue an
order--
``(i) prohibiting the entity from trading on a trading
facility for regulated allowances registered with the
Commission, and requiring all such facilities to refuse the
entity all privileges for such period as may be specified in
the order;
``(ii) if the entity is registered with the Commission in
any capacity, suspending for a period of not more than 6
months, or revoking, the registration of the entity;
``(iii) assessing the entity a civil penalty of not more
than $1,000,000 per day per violation for as long as the
violation continues (and in determining the amount of a civil
penalty, the Commission shall take into account the nature
and seriousness of the violation and the efforts to remedy
the violation); and
``(iv) requiring disgorgement of unjust profits,
restitution to entities harmed by the violation as determined
by the Commission, or both.
``(B) Authority to suspend or revoke registration.--The
Commission may suspend for a period of not more than 6
months, or revoke, the registration of a trading facility for
regulated allowances or of a clearing organization registered
by the Commission if, after notice and opportunity for a
hearing on the record, the Commission finds that--
``(i) the entity violated any rule or order issued by the
Commission under this subsection; or
``(ii) a director, officer, employee, or agent of the
entity has violated any rule or order issued by the
Commission under this subsection.
``(C) Cease and desist proceedings.--
``(i) In general.--If the Commission determines that any
entity may be violating, may have violated, or may be about
to violate any provision of this part, or any regulation
promulgated by, or any restriction, condition, or order made
or imposed by, the Commission under this Act, and if the
Commission finds that the alleged violation or threatened
violation, or the continuation of the violation, is likely to
result in significant harm to covered entities or market
participants, or significant harm to the public interest, the
Commission may issue a temporary order requiring the entity--

``(I) to cease and desist from the violation or threatened
violation;
``(II) to take such action as is necessary to prevent the
violation or threatened violation; and
``(III) to prevent, as the Commission determines to be
appropriate--

``(aa) significant harm to covered entities or market
participants;
``(bb) significant harm to the public interest; and
``(cc) frustration of the ability of the Commission to
conduct the proceedings or to redress the violation at the
conclusion of the proceedings.
``(ii) Timing of entry.--An order issued under clause (i)
shall be entered only after notice and opportunity for a
hearing, unless the Commission determines that notice and
hearing before entry would be impracticable or contrary to
the public interest.
``(iii) Effective date.--A temporary order issued under
clause (i) shall--

``(I) become effective upon service upon the entity; and
``(II) unless set aside, limited, or suspended by the
Commission or a court of competent jurisdiction, remain
effective and enforceable pending the completion of the
proceedings.

``(D) Proceedings regarding dissipation or conversion of
assets.--
``(i) In general.--In a proceeding involving an alleged
violation of a regulation or order promulgated or issued by
the Commission, if the Commission determines that the alleged
violation or related circumstances are likely to result in
significant dissipation or conversion of assets, the
Commission may issue a temporary order requiring the
respondent to take such action as is necessary to prevent the
dissipation or conversion of assets.
``(ii) Timing of entry.--An order issued under clause (i)
shall be entered only after notice and opportunity for a
hearing, unless the Commission determines that notice and
hearing before entry would be impracticable or contrary to
the public interest.
``(iii) Effective date.--A temporary order issued under
clause (i) shall--

``(I) become effective upon service upon the respondent;
and
``(II) unless set aside, limited, or suspended by the
Commission or a court of competent jurisdiction, remain
effective and enforceable pending the completion of the
proceedings.

``(E) Review of temporary orders.--
``(i) Application for review.--At any time after a
respondent has been served with a temporary cease-and-desist
order pursuant to subparagraph (C) or order regarding the
dissipation or conversion of assets pursuant to subparagraph
(D), the respondent may apply to the Commission to have the
order set aside, limited, or suspended.
``(ii) No prior hearing.--If a respondent has been served
with a temporary order entered without a prior hearing of the
Commission--

``(I) the respondent may, not later than 10 days after the
date on which the order was served, request a hearing on the
application; and
``(II) the Commission shall hold a hearing and render a
decision on the application at the earliest practicable time.

``(iii) Judicial review.--

``(I) In general.--An entity shall not be required to
submit a request for rehearing of a temporary order before
seeking judicial review in accordance with this subparagraph.
``(II) Timing of review.--Not later than 10 days after the
date on which a respondent is served with a temporary cease-
and-desist order entered with a prior hearing of the
Commission, or 10 days after the date on which the Commission
renders a decision on an application and hearing under clause
(i) with respect to any temporary order entered without such
a prior hearing--

``(aa) the respondent may obtain a review of the order in a
United States circuit court having jurisdiction over the
circuit in which the respondent resides or has a principal
place of business, or in the United States Court of Appeals
for the District of Columbia Circuit, for an order setting
aside, limiting, or suspending the effectiveness or
enforcement of the order; and
``(bb) the court shall have jurisdiction to enter such an
order.

``(III) No prior hearing.--A respondent served with a
temporary order entered without a prior hearing of the
Commission may not apply to the applicable court described in
subclause (II) except after a hearing and decision by the
Commission on the application of the respondent under clauses
(i) and (ii).

``(iv) Procedures.--Section 222 and Part III shall apply
to--

``(I) an application for review of an order under clause
(i); and
``(II) an order subject to review under clause (iii).

``(v) No automatic stay of temporary order.--The
commencement of proceedings under clause (iii) shall not,
unless specifically ordered by the court, operate as a stay
of the order of the Commission.
``(F) Actions to collect civil penalties.--If any person
fails to pay a civil penalty assessed under this subsection
after an order assessing the penalty has become final and
unappealable, the Commission shall bring an action to recover
the amount of the penalty in any appropriate United States
district court.
``(4) Transaction fees.--
``(A) In general.--The Commission shall, in accordance with
this paragraph, establish and collect transaction fees
designed to recover the costs to the Federal Government of
the supervision and regulation of regulated allowance markets
and market participants, including related costs for
enforcement activities, policy and rulemaking activities,
administration, legal services, and international regulatory
activities.
``(B) Initial fee rate.--Each trading facility on or
through which regulated allowances are transacted shall pay
to the Commission a fee at a rate of not more than $15 per
$1,000,000 of the aggregate dollar amount of sales of
regulated allowances transacted through the facility.
``(C) Annual adjustment of fee rate.--The Commission shall,
on an annual basis--
``(i) assess the rate at which fees are to be collected as
necessary to meet the cost recovery requirement in
subparagraph (A); and
``(ii) consistent with subparagraph (B), adjust the rate as
necessary in order to meet the requirement.
``(D) Report on adequacy of fees in recovering costs.--The
Commission, shall, on an annual basis, report to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate on the adequacy of the transaction
fees in providing funding for the Commission to regulate the
regulated allowance markets.
``(5) Judicial review.--Judicial review of actions taken by
the Commission under this subsection shall be pursuant to
part III.
``(6) Additional employees report and appointment.--Within
18 months after the date of the enactment of this section,
the Commission shall submit to the President, the Committee
on Energy and Commerce of the House of Representatives, and
the Committee on Energy and Natural Resources of the Senate,
a report that contains recommendations as to how many
additional employees would be necessary to provide robust
oversight and enforcement of the regulations promulgated
under this subsection. As soon as practicable after the
completion of the report, subject to appropriations, the
Commission shall appoint the recommended number of additional
employees for such purposes.
``(e) Working Group.--

[[Page H7580]]

``(1) Establishment.--Not later than 30 days after the date
of the enactment of this section, the President shall
establish an interagency working group on carbon market
oversight, which shall include the Administrator of the
Environmental Protection Agency and representatives of other
relevant agencies, to make recommendations to the Commodity
Futures Trading Commission regarding proposed regulations for
the establishment, operation, and oversight of markets for
regulated allowance derivatives.
``(2) Report.--Not later than 180 days after the date of
the enactment of this section, and biennially thereafter, the
interagency working group shall submit a written report to
the President and Congress that includes its recommendations
to the Commodity Futures Trading Commission regarding
proposed regulations for the establishment, operation, and
oversight of markets for regulated allowance derivatives and
any recommendations to Congress for statutory changes needed
to ensure the establishment, operation, and oversight of
transparent, fair, stable, and efficient markets for
regulated allowance derivatives.
``(d) Penalty for Fraud and False or Misleading
Statements.--A person convicted under section 1041 of title
18, United States Code, may be prohibited from holding or
trading regulated allowances for a period of not more than 5
years pursuant to the regulations promulgated under this
section, except that, if the person is a covered entity, the
person shall be allowed to hold sufficient regulated
allowances to meet its compliance obligations.
``(e) Relation to State Law.--Nothing in this section shall
preclude, diminish or qualify any authority of a State or
political subdivision thereof to adopt or enforce any unfair
competition, antitrust, consumer protection, securities,
commodities or any other law or regulation, except that no
such State law or regulation may relieve any person of any
requirement otherwise applicable under this section.
``(f) Market Reports.--
``(1) Collection and analysis of information.--The
Commission, in conjunction with the Commodity Futures Trading
Commission shall, on a continuous basis, analyze the
following information on the functioning of the markets for
regulated instruments established under this part:
``(A) The status of, and trends in, the markets, including
prices, trading volumes, transaction types, and trading
channels and mechanisms.
``(B) Spikes, collapses, and volatility in prices of
regulated instruments, and the causes therefor.
``(C) The relationship between the market for regulated
allowances and allowance derivatives, and the spot and
futures markets for energy commodities, including
electricity.
``(D) The economic effects of the markets, including to
macro- and micro-economic effects of unexpected significant
increases and decreases in the price of regulated
instruments.
``(E) Any changes in the roles, activities, or strategies
of various market participants.
``(F) Regional, industrial, and consumer responses to the
markets, and energy investment responses to the markets.
``(G) Any other issue related to the markets that the
Commission, Commodity Futures Trading Commission, deems
appropriate.
``(2) Annual reports to the congress.-- Not later than 1
month after the end of each calendar year, the Commission, in
conjunction with the Federal agency, shall submit to the
President, the Committee on Agriculture and Committee on
Energy and Commerce of the House of Representatives, and the
Committee on Agriculture, Nutrition, and Forestry and
Committee on Energy and Natural Resources of the Senate, and
make available to the public, a report on the matters
described in paragraph (1) with respect to the year,
including recommendations for any administrative or statutory
measures the Commission, and the Commodity Futures Trading
Commission consider necessary to address any threats to the
transparency, fairness, or integrity of the markets in
regulated instruments.

``SEC. 402. APPLICABILITY OF PART III PROVISIONS.

``(a) Sections 301, 304, and 306.--Sections 301, 304, and
306 shall not apply to this part.
``(b) Section 315.--In applying section 315(a) to this
part, the words ``person or entity'' shall be substituted for
the words ``licensee or public utility''. In applying section
315(b) to this part, the words ``an entity'' shall be
substituted for the words ``a licensee or public utility''
and the words ``such entity'' shall be substituted for the
words ``such licensee or public utility.''
``(c) Section 316.--Section 316(a) shall not apply to
section 401(d).''.
(b) Criminal Prohibition Against Fraud and False or
Misleading Statements.--
(1) Chapter 47 of title 18, United States Code, is amended
by adding at the end the following:

``Sec. 1041. Fraud and false statements in connection with
regulated allowances

``Whoever in connection with a transaction involving a
regulated allowance (as defined in section 401(a) of the
Federal Power Act, as added by section 341 of the American
Clean Energy and Security Act of 2009), knowingly--
``(1) makes or uses a materially false or misleading
statement, writing, representation, scheme, or device; or
``(2) falsifies, conceals, or covers up by any trick,
scheme, or device any material fact,
shall be fined not more than $5,000,000 (or $25,000,000 in
the case of an organization) or imprisoned not more than 20
years, or both.''.
(2) The table of sections at the beginning of chapter 47 of
title 18, United States Code, is amended by adding at the end
the following new item:

``1041. Fraud and false statements in connection with regulated
allowances.''.

SEC. 342. CARBON DERIVATIVE MARKETS.

(a) Section 1a(14) of the Commodity Exchange Act (7 U.S.C.
1a(14)) is amended by striking ``or an agricultural
commodity'' and inserting ``, an agricultural commodity, or
any emission allowance, compensatory allowance, offset
credit, or Federal renewable electricity credit established
or issued under the American Clean Energy and Security Act of
2009''.
(b) Section 4(c) of such Act (7 U.S.C. 6(c)) is amended by
adding at the end the following:
``(6) This subsection does not apply to any agreement,
contract, or transaction for any emission allowance,
compensatory allowance, offset credit, or Federal renewable
electricity credit established or issued under the American
Clean Energy and Security Act of 2009.''.

Subtitle E--Additional Market Assurance

SEC. 351. REGULATION OF CERTAIN TRANSACTIONS IN DERIVATIVES
INVOLVING ENERGY COMMODITIES.

(a) Energy Commodity Defined.--Section 1a of the Commodity
Exchange Act (7 U.S.C. 1a) is amended--
(1) in paragraph (14), by inserting ``, an energy
commodity,'' after ``excluded commodity'';
(2) by redesignating paragraphs (13) through (21) and
paragraphs (22) through (34) as paragraphs (14) through (22)
and paragraphs (24) through (36), respectively;
(3) by inserting after paragraph (12) the following:
``(13) Energy commodity.--The term `energy commodity'
means--
``(A) coal;
``(B) crude oil, gasoline, diesel fuel, jet fuel, heating
oil, and propane;
``(C) electricity (excluding financial transmission rights
which are subject to regulation and oversight by the Federal
Energy Regulatory Commission);
``(D) natural gas; and
``(E) any other substance (other than an excluded
commodity, a metal, or an agricultural commodity) that is
used as a source of energy, as the Commission, in its
discretion, deems appropriate.''; and
(4) by inserting after paragraph (22) (as so redesignated
by paragraph (2) of this subsection) the following:
``(23) Included energy transaction.--The term `included
energy transaction' means a contract, agreement, or
transaction in an energy commodity for future delivery that
provides for a delivery point of the energy commodity in the
United States or a territory or possession of the United
States, or that is offered or transacted on or through a
computer terminal located in the United States.''.
(b) Extension of Regulatory Authority to Swaps Involving
Energy Transactions.--Section 2(g) of such Act (7 U.S.C.
2(g)) is amended by inserting ``or an energy commodity''
after ``agricultural commodity''.
(c) Elimination of Exemption for Over-the-counter Swaps
Involving Energy Commodities.--Section 2(h)(1) of such Act (7
U.S.C. 2(h)(1)) is amended by inserting ``(other than an
energy commodity)'' after ``exempt commodity''.
(d) Extension of Regulatory Authority to Included Energy
Transactions on Foreign Boards of Trade.--Section 4 of such
Act (7 U.S.C. 6) is amended--
(1) in subsection (a), by inserting ``, and which is not an
included energy transaction'' after ``territories or
possessions'' the 2nd place it appears; and
(2) in subsection (b), by adding at the end the following:
``The preceding sentence shall not apply with respect to
included energy transactions.''.
(e) Limitation of General Exemptive Authority of the CFTC
With Respect to Included Energy Transactions.--
(1) In general.--Section 4(c) of such Act (7 U.S.C. 6(c))
is amended by adding at the end the following:
``(6) The Commission may not exempt any included energy
transaction from the requirements of subsection (a), unless
the Commission provides 60 days advance notice to the
Congress and the Position Limit Energy Advisory Group and
solicits public comment about the exemption request and any
proposed Commission action.''.
(2) Nullification of no-action letter exemptions to certain
requirements applicable to included energy transactions.--
Beginning 180 days after the date of the enactment of this
Act, any exemption provided by the Commodity Futures Trading
Commission that has allowed included energy transactions (as
defined in section 1a(13) of the Commodity Exchange Act) to
be conducted without regard to the requirements of section
4(a) of such Act shall be null and void.
(f) Requirement to Establish Uniform Speculative Position
Limits for Energy Transactions.--
(1) In general.--Section 4a(a) of such Act (7 U.S.C. 6a(a))
is amended--
(A) by inserting ``(1)'' after ``(a)'';

[[Page H7581]]

(B) by inserting after the 2nd sentence the following:
``With respect to energy transactions, the Commission shall
fix limits on the aggregate number of positions which may be
held by any person for each month across all markets subject
to the jurisdiction of the Commission.'';
(C) in the 4th sentence by inserting ``, consistent with
the 3rd sentence,'' after ``Commission''; and
(D) by adding after and below the end the following:
``(2)(A) Not later than 60 days after the date of the
enactment of this paragraph, the Commission shall convene a
Position Limit Energy Advisory Group consisting of
representatives from--
``(i) 7 predominantly commercial short hedgers of the
actual energy commodity for future delivery;
``(ii) 7 predominantly commercial long hedgers of the
actual energy commodity for future delivery;
``(iii) 4 non-commercial participants in markets for energy
commodities for future delivery; and
``(iv) each designated contract market or derivatives
transaction execution facility upon which a contract in the
energy commodity for future delivery is traded, and each
electronic trading facility that has a significant price
discovery contract in the energy commodity.
``(B) Not later than 60 days after the date on which the
advisory group is convened under subparagraph (A), and
annually thereafter, the advisory group shall submit to the
Commission advisory recommendations regarding the position
limits to be established in paragraph (1).
``(C) The Commission shall have exclusive authority to
grant exemptions for bona fide hedging transactions and
positions from position limits imposed under this Act on
energy transactions.''.
(2) Conforming amendments.--
(A) Significant price discovery contracts.--Section 2(h)(7)
of such Act (7 U.S.C. 2(h)(7)) is amended--
(i) in subparagraph (A)--

(I) by inserting ``of this paragraph and section 4a(a)''
after ``(B) through (D)''; and
(II) by inserting ``of this paragraph'' before the period;
and

(ii) in subparagraph (C)(ii)(IV)--

(I) in the heading, by striking ``limitations or''; and
(II) by striking ``position limitations or''.

(B) Contracts traded on or through designated contract
markets.--Section 5(d)(5) of such Act (7 U.S.C. 7(d)(5)) is
amended--
(i) in the heading by striking ``limitations or''; and
(ii) by striking ``position limitations or''.
(C) Contracts traded on or through derivatives transaction
execution facilities.--Section 5a(d)(4) of such Act (7 U.S.C.
7a(d)(4)) is amended--
(i) in the heading by striking ``limitations or''; and
(ii) by striking ``position limits or''.
(g) Elimination of the Swaps Loophole.--Section 4a(c) of
such Act (7 U.S.C. 6a(c)) is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding after and below the end the following:
``(2) For the purposes of contracts of sale for future
delivery and options on such contracts or commodities, the
Commission shall define what constitutes a bona fide hedging
transaction or position as a transaction or position that--
``(A)(i) represents a substitute for transactions made or
to be made or positions taken or to be taken at a later time
in a physical marketing channel;
``(ii) is economically appropriate to the reduction of
risks in the conduct and management of a commercial
enterprise; and
``(iii) arises from the potential change in the value of--
``(I) assets that a person owns, produces, manufactures,
processes, or merchandises or anticipates owning, producing,
manufacturing, processing, or merchandising;
``(II) liabilities that a person owns or anticipates
incurring; or
``(III) services that a person provides, purchases, or
anticipates providing or purchasing; or
``(B) reduces risks attendant to a position resulting from
a transaction that--
``(i) was executed pursuant to subsection (d), (g), (h)(1),
or (h)(2) of section 2, or an exemption issued by the
Commission by rule, regulation or order; and
``(ii) was executed opposite a counterparty for which the
transaction would qualify as a bona fide hedging transaction
pursuant to paragraph (2)(A) of this subsection.''.
(h) Detailed Reporting and Disaggregation of Market Data.--
Section 4 of such Act (7 U.S.C. 6) is amended by adding at
the end the following:
``(e) Detailed Reporting and Disaggregation of Market
Data.--
``(1) Index traders and swap dealers reporting.--The
Commission shall issue a proposed rule defining and
classifying index traders and swap dealers (as those terms
are defined by the Commission) for purposes of data reporting
requirements and setting routine detailed reporting
requirements for any positions of such entities in contracts
traded on designated contract markets, over-the-counter
markets, derivatives transaction execution facilities,
foreign boards of trade subject to section 4(f), and
electronic trading facilities with respect to significant
price discovery contracts not later than 120 days after the
date of the enactment of this subsection, and issue a final
rule within 180 days after such date of enactment.
``(2) Disaggregation of index funds and other data in
markets.--Subject to section 8 and beginning within 60 days
of the issuance of the final rule required by paragraph (1),
the Commission shall disaggregate and make public weekly--
``(A) the number of positions and total notional value of
index funds and other passive, long-only and short-only
positions (as defined by the Commission) in all markets to
the extent such information is available; and
``(B) data on speculative positions relative to bona fide
physical hedgers in those markets to the extent such
information is available.
``(3) Disclosure of identity of holders of positions in
indexes in excess of position limits.--The Commission shall
include in its weekly Commitment of Trader reports the
identity of each person who holds a position in an index in
excess of a limit imposed under section 4i.''.
(i) Authority to Set Limits to Prevent Excessive
Speculation in Indexes.--
(1) In general.--Section 4a of such Act (7 U.S.C. 6a) is
amended by adding at the end the following:
``(f) The provisions of this section shall apply to the
amounts of trading which may be done or positions which may
be held by any person under contracts of sale of an index for
future delivery on or subject to the rules of any contract
market, derivatives transaction execution facility, or over-
the-counter market, or on an electronic trading facility with
respect to a significant price discovery contract, in the
same manner in which this section applies to contracts of
sale of a commodity for future delivery.''.
(2) Regulations.--The Commodity Futures Trading Commission
shall issue regulations under section 4a(f) of the Commodity
Exchange Act within 180 days after the date of the enactment
of this Act.

SEC. 352. NO EFFECT ON AUTHORITY OF THE FEDERAL ENERGY
REGULATORY COMMISSION.

Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is
amended by adding at the end the following:.
``(j) This Act shall not be interpreted to affect the
jurisdiction of the Federal Energy Regulatory Commission with
respect to the authority of the Federal Energy Regulatory
Commission under the Federal Power Act (16 U.S.C. 791a et
seq.), the Natural Gas Act (15 U.S.C. 717 et seq.), or other
law to obtain information, carry out enforcement actions, or
otherwise carry out the responsibilities of the Federal
Energy Regulatory Commission.''.

SEC. 353. INSPECTOR GENERAL OF THE COMMODITY FUTURES TRADING
COMMISSION.

(a) Elevation of Office.--
(1) Inclusion of cftc in definition of establishment.--
(A) Section 12(1) of the Inspector General Act of 1978 (5
U.S.C. App.) is amended by striking ``or the Federal
Cochairpersons of the Commissions established under section
15301 of title 40, United States Code;'' and inserting ``the
Federal Cochairpersons of the Commissions established under
section 15301 of title 40, United States Code; or the
Chairman of the Commodity Futures Trading Commission;''.
(B) Section 12(2) of the Inspector General Act of 1978 (5
U.S.C. App.) is amended by striking ``or the Commissions
established under section 15301 of title 40, United States
Code,'' and inserting ``the Commissions established under
section 15301 of title 40, United States Code, or the
Commodity Futures Trading Commission,''.
(2) Exclusion of cftc from definition of designated federal
entity.--Section 8G(a)(2) of the Inspector General Act of
1978 (5 U.S.C. App.) is amended by striking ``the Commodity
Futures Trading Commission,''.
(b) Provisions Relating to Pay and Personnel Authority.--
(1) Provision relating to the position of inspector general
of the cftc.--In the case of the Inspector General of the
Commodities Futures Trading Commission, subsections (b) and
(c) of section 4 of the Inspector General Reform Act of 2008
(Public Law 110-409) shall apply in the same manner as if the
Commission was a designated Federal entity under section 8G.
The Inspector General of the Commodities Futures Trading
Commission shall not be subject to section 3(e) of such Act.
(2) Provision relating to other personnel.--Notwithstanding
paragraphs (7) and (8) of section 6(a) of the Inspector
General Act of 1978 (5 U.S.C. App.), the Inspector General of
the Commodities Futures Trading Commission may select,
appoint, and employ such officers and employees as may be
necessary for carrying out the functions, powers, and duties
of the Office of Inspector General and to obtain the
temporary or intermittent services of experts or consultants
or an organization of experts or consultants, subject to the
applicable laws and regulations that govern such selections,
appointments, and employment, and the obtaining of such
services, within the Commodities Futures Trading Commission.
(c) Effective Date; Transition Rule.--
(1) Effective date.--The amendments made by this section
shall take effect 30 days after the date of the enactment of
this Act.
(2) Transition rule.--An individual serving as Inspector
General of the Commodity

[[Page H7582]]

Futures Trading Commission on the effective date of this
section pursuant to an appointment made under section 8G of
the Inspector General Act of 1978 (5 U.S.C. App.)--
(A) may continue so serving until the President makes an
appointment under section 3(a) of such Act consistent with
the amendments made by this section; and
(B) shall, while serving under subparagraph (A), remain
subject to the provisions of section 8G of such Act which
apply with respect to the Commodity Futures Trading
Commission.

SEC. 354. SETTLEMENT AND CLEARING THROUGH REGISTERED
DERIVATIVES CLEARING ORGANIZATIONS.

(a) In General.--
(1) Application to excluded derivative transactions.--
(A) Section 2(d)(1) of the Commodity Exchange Act (7 U.S.C.
2(d)(1)) is amended--
(i) by striking ``and'' at the end of subparagraph (A);
(ii) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) except as provided in section 4(f), the agreement,
contract, or transaction is settled and cleared through a
derivatives clearing organization registered with the
Commission.''.
(B) Section 2(d)(2) of such Act (7 U.S.C. 2(d)(2)) is
amended--
(i) by striking ``and'' at the end of subparagraph (B);
(ii) by striking the period at the end of subparagraph (C)
and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) except as provided in section 4(f), the agreement,
contract, or transaction is settled and cleared through a
derivatives clearing organization registered with the
Commission.''.
(2) Application to certain swap transactions.--Section 2(g)
of such Act (7 U.S.C. 2(g)) is amended--
(A) by striking ``and'' at the end of paragraph (2);
(B) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(C) by adding at the end the following:
``(4) except as provided in section 4(f), settled and
cleared through a derivatives clearing organization
registered with the Commission.''.
(3) Application to certain transactions in exempt
commodities.--
(A) Section 2(h)(1) of such Act ( 7 U.S.C. 2(h)(1)) is
amended--
(i) by striking ``and'' at the end of subparagraph (A);
(ii) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) except as provided in section 4(f), is settled and
cleared through a derivatives clearing organization
registered with the Commission.''.
(B) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is
amended--
(i) by striking ``and'' at the end of subparagraph (A);
(ii) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) except as provided in section 4(f), settled and
cleared through a derivatives clearing organization
registered with the Commission.''.
(4) General exemptive authority.--Section 4(c)(1) of such
Act (7 U.S.C. 6(c)(1)) is amended by inserting ``the
agreement, contract, or transaction, except as provided in
section 4(h), will be settled and cleared through a
derivatives clearing organization registered with the
Commission and'' before ``the Commission determines''.
(5) Conforming amendment relating to significant price
discovery contracts.--Section 2(h)(7)(D) of such Act (7
U.S.C. 2(h)(7)(D)) is amended by striking the designation and
heading for the subparagraph and all that follows through
``As part of'' and inserting the following:
``(D) Review of implementation.--As part of''.
(b) Alternatives to Clearing Through Designated Clearing
Organizations.--Section 4 of such Act (7 U.S.C. 6), as
amended by section 351(h) of this Act, is amended by adding
at the end the following:
``(f) Alternatives to Clearing Through Designated Clearing
Organizations.--
``(1) Settlement and clearing through certain other
regulated entities.--An agreement, contract, or transaction,
or class thereof, relating to an excluded commodity, that
would otherwise be required to be settled and cleared by
section 2(d)(1)(C), 2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or
2(h)(3)(C) of this Act, or subsection (c)(1) of this section
may be settled and cleared through an entity listed in
subsections (a) or (b) of section 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
``(2) Waiver of clearing requirement.--
``(A) The Commission, in its discretion, may exempt an
agreement, contract, or transaction, or class thereof, that
would otherwise be required by section 2(d)(1)(C),
2(d)(2)(D), 2(g)(4), 2(h)(1)(C), or 2(h)(3)(C) of this Act,
or subsection (c)(1) of this section to be settled and
cleared through a derivatives clearing organization
registered with the Commission from such requirement.
``(B) In granting exemptions pursuant to subparagraph (A),
the Commission shall consult with the Securities and Exchange
Commission and the Board of Governors of the Federal Reserve
System regarding exemptions that relate to excluded
commodities or entities for which the Securities Exchange
Commission or the Board of Governors of the Federal Reserve
System serve as the primary regulator.
``(C) Before granting an exemption pursuant to subparagraph
(A), the Commission shall find that the agreement, contract,
or transaction, or class thereof--
``(i) is highly customized as to its material terms and
conditions;
``(ii) is transacted infrequently;
``(iii) does not serve a significant price-discovery
function in the marketplace; and
``(iv) is being entered into by parties who can demonstrate
the financial integrity of the agreement, contract, or
transaction and their own financial integrity, as such terms
and standards are determined by the Commission. The standards
may include, with respect to any federally regulated
financial entity for which net capital requirements are
imposed, a net capital requirement associated with any
agreement, contract, or transaction subject to an exemption
from the clearing requirement that is higher than the net
capital requirement that would be associated with such a
transaction were it cleared
``(D) Any agreement, contract, or transaction, or class
thereof, which is exempted pursuant to subparagraph (A) shall
be reported to the Commission in a manner designated by the
Commission, or to such other entity the Commission deems
appropriate.
``(E) The Commission, the Securities and Exchange
Commission and the Board of Governors of the Federal Reserve
System shall enter into a memorandum of understanding by
which the information reported to the Commission pursuant to
subparagraph (D) with regard to excluded commodities or
entities for which the Securities Exchange Commission or the
Board of Governors of the Federal Reserve System serve as the
primary regulator may be provided to the other agencies.
``(g) Spot and Forward Exclusion.--The settlement and
clearing requirements of section 2(d)(1)(C), 2(d)(2)(D),
2(g)(4), 2(h)(1)(C), 2(h)(3)(C), or 4(c)(1) shall not apply
to an agreement, contract, or transaction of any cash
commodity for immediate or deferred shipment or delivery, as
defined by the Commission.''.
(c) Additional Requirements Applicable to Applicants for
Registration as a Derivative Clearing Organization.--Section
5b(c)(2) of such Act (7 U.S.C. 7a-1(c)(2)) is amended by
adding at the end the following:
``(O) Disclosure of general information.--The applicant
shall disclose publicly and to the Commission information
concerning--
``(i) the terms and conditions of contracts, agreements,
and transactions cleared and settled by the applicant;
``(ii) the conventions, mechanisms, and practices
applicable to the contracts, agreements, and transactions;
``(iii) the margin-setting methodology and the size and
composition of the financial resource package of the
applicant; and
``(iv) other information relevant to participation in the
settlement and clearing activities of the applicant.
``(P) Daily publication of trading information.--The
applicant shall make public daily information on settlement
prices, volume, and open interest for contracts settled or
cleared pursuant to the requirements of section 2(d)(1)(C),
2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C) or 4(c)(1) of
this Act by the applicant if the Commission determines that
the contracts perform a significant price discovery function
for transactions in the cash market for the commodity
underlying the contracts.
``(Q) Fitness standards.--The applicant shall establish and
enforce appropriate fitness standards for directors, members
of any disciplinary committee, and members of the applicant,
and any other persons with direct access to the settlement or
clearing activities of the applicant, including any parties
affiliated with any of the persons described in this
subparagraph.''.
(d) Amendments.--
(1) Section 409 of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C. 4422) is
amended by adding at the end the following:
``(c) Clearing Requirement.--A multilateral clearing
organization described in subsections (a) or (b) of this
section shall comply with requirements similar to the
requirements of sections 5b and 5c of the Commodity Exchange
Act.''.
(2) Section 407 of the Legal Certainty for Bank Products
Act of 2000 (7 U.S.C. 27e) is amended by inserting ``and the
settlement and clearing requirements of sections 2(d)(1)(C),
2(d)(2)(D), 2(g)(4), 2(h)(1)(C), 2(h)(3)(C), and 4(c)(1) of
such Act'' after ``the clearing of covered swap agreements''.
(e) Effective Date.--The amendments made by this section
shall take effect 150 days after the date of the enactment of
this Act.
(f) Transition Rule.--Any agreement, contract, or
transaction entered into before the date of the enactment of
this Act or within 150 days after such date of enactment, in
reliance on subsection (d), (g), (h)(1), or (h)(3) of section
2 of the Commodity Exchange Act or any other exemption issued
by the Commission Futures Trading Commission by rule,
regulation, or order shall, within 90 days after such date of
enactment, unless settled and cleared through an entity
registered with the Commission as a derivatives clearing
organization or another clearing entity pursuant to section
4(f) of such Act, be

[[Page H7583]]

reported to the Commission in a manner designated by the
Commission, or to such other entity as the Commission deems
appropriate.

SEC. 355. LIMITATION ON ELIGIBILITY TO PURCHASE A CREDIT
DEFAULT SWAP.

(a) In General.--Section 4c of the Commodity Exchange Act
(7 U.S.C. 6c) is amended by adding at the end the following:
``(h) Limitation on Eligibility to Purchase a Credit
Default Swap.--It shall be unlawful for any person to enter
into a credit default swap unless the person--
``(1) owns a credit instrument which is insured by the
credit default swap;
``(2) would experience financial loss if an event that is
the subject of the credit default swap occurs with respect to
the credit instrument; and
``(3) meets such minimum capital adequacy standards as may
be established by the Commission, in consultation with the
Board of Governors of the Federal Reserve System, or such
more stringent minimum capital adequacy standards as may be
established by or under the law of any State in which the
swap is originated or entered into, or in which possession of
the contract involved takes place.''.
(b) Elimination of Preemption of State Bucketing Laws
Regarding Naked Credit Default Swaps.--Section 12(e)(2)(B) of
such Act (7 U.S.C. 16(e)(2)(B)) is amended by inserting
``(other than a credit default swap in which the purchaser of
the swap would not experience financial loss if an event that
is the subject of the swap occurred)'' before ``that is
excluded''.
(c) Definition of Credit Default Swap.--Section 1a of such
Act (7 U.S.C. 1a), as amended by section 351(a) of this Act,
is amended by adding at the end the following:
``(37) Credit default swap.--The term `credit default swap'
means a contract which insures a party to the contract
against the risk that an entity may experience a loss of
value as a result of an event specified in the contract, such
as a default or credit downgrade. A credit default swap that
is traded on or cleared by a registered entity shall be
excluded from the definition of a security as defined in this
Act and in section 2(a)(1) of the Securities Act of 1933 or
section 3(a)(10) of the Securities Exchange Act of 1934,
except it shall be deemed a security solely for purpose of
enforcing prohibitions against insider trading in sections 10
and 16 of the Securities Exchange Act of 1934.''.
(d) Effective Date.--The amendments made by this section
shall be effective for credit default swaps (as defined in
section 1a(37) of the Commodity Exchange Act) entered into
after 60 days after the date of the enactment of this
section.

SEC. 356. TRANSACTION FEES.

(a) In General.--Section 12 of the Commodity Exchange Act
(7 U.S.C. 16) is amended by redesignating subsections (e),
(f), and (g) as subsections (f), (g), and (h), respectively,
and inserting after subsection (d) the following:
``(e) Clearing Fees.--
``(1) In general.--The Commission shall, in accordance with
this subsection, charge and collect from each registered
clearing organization, and each such organization shall pay
to the Commission, transaction fees at a rate calculated to
recover the costs to the Federal Government of the
supervision and regulation of futures markets, except those
directly related to enforcement.
``(2) Fees assessed per side of cleared contracts.--
``(A) In general.--The Commission shall determine the fee
rate referred to in paragraph (1), and shall apply the fee
rate per side of any transaction cleared.
``(B) Authority to delegate.-- The Commission may determine
the procedures by which the fee rate is to be applied on the
transactions subject to the fee, or delegate the authority to
make the determination to any appropriate derivatives
clearing organization.
``(3) Exemptions.--The Commission may not impose a fee
under paragraph (1) on--
``(A) a class of contracts or transactions if the
Commission finds that it is in the public interest to exempt
the class from the fee; or
``(B) a contract or transaction cleared by a registered
derivatives clearing organization that is--
``(i) subject to fees under section 31 of the Securities
Exchange Act of 1934; or
``(ii) a security as defined in the Securities Act of 1933
or the Securities Exchange Act of 1934.
``(4) Dates for payment of fees.--The fees imposed under
paragraph (1) shall be paid on or before--
``(A) March 15 of each year, with respect to transactions
occurring on or after the preceding September 1 and on or
before the preceding December 31; and
``(B) September 15 of each year, with respect to
transactions occurring on or after the preceding January 1
and on or before the preceding August 31.
``(5) Annual adjustment of fee rates.--
``(A) In general.--Not later than April 30 of each fiscal
year , the Commission shall, by order, adjust each fee rate
determined under paragraph (2) for the fiscal year to a
uniform adjusted rate that, when applied to the estimated
aggregate number of cleared sides of transactions for the
fiscal year, is reasonably likely to produce aggregate fee
receipts under this subsection for the fiscal year equal to
the target offsetting receipt amount for the fiscal year.
``(B) Definitions.--In subparagraph (A):
``(i) Estimated aggregate number of cleared sides of
transactions.--The term `estimated aggregate number of
cleared sides of transactions' means, with respect to a
fiscal year, the aggregate number of cleared sides of
transactions to be cleared by registered derivatives clearing
organizations during the fiscal year, as estimated by the
Commission, after consultation with the Office of Management
and Budget, using the methodology required for making
projections pursuant to section 257 of the Balanced Budget
and Emergency Deficit Control Act of 1985.
``(ii) Target offsetting receipt amount.--The term `target
offsetting receipt amount' means, with respect to a fiscal
year, the total level of Commission budget authority for all
non-enforcement activities of the Commission, as contained in
the regular appropriations Acts for the fiscal year.
``(C) No judicial review.--An adjusted fee rate prescribed
under subparagraph (A) shall not be subject to judicial
review.
``(6) Publication.--Not later than April 30 of each fiscal
year, the Commission shall cause to be published in the
Federal Register notices of the fee rates applicable under
this subsection for the succeeding fiscal year, and any
estimate or projection on which the fee rates are based.
``(7) Establishment of futures and options transaction fee
account; deposit of fees.--There is established in the
Treasury of the United States an account which shall be known
as the `Futures and Options Transaction Fee Account'. All
fees collected under this subsection for a fiscal year shall
be deposited in the account. Amounts in the account are
authorized to be appropriated to fund the expenditures of the
Commission.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to fiscal years beginning 30 or more days after
the date of the enactment of this Act.
(c) Transition Rule.--If this section becomes law after
March 31 and before September 1 of a fiscal year, then
paragraphs (5)(A) and (6) of section 12(e) of the Commodity
Exchange Act shall be applied, in the case of the 1st fiscal
year beginning after the date of the enactment of this Act,
by substituting ``August 31'' for ``April 30''.

SEC. 357. NO EFFECT ON ANTITRUST LAW OR AUTHORITY OF THE
FEDERAL TRADE COMMISSION.

(a) Nothing in this subtitle shall be construed to modify,
impair, or supersede the operation of any of the antitrust
laws. For purposes of this subsection, the term ``antitrust
laws'' has the meaning given it in subsection (a) of the 1st
section of the Clayton Act (15 U.S.C. 12(a)), except that
such term includes section 5 of the Federal Trade Commission
Act (15 U.S.C. 45) to the extent that such term applies to
unfair methods of competition.
(b) Nothing in this subtitle shall be construed to affect
or diminish the jurisdiction or authority of the Federal
Trade Commission with respect to its authorities under the
Federal Trade Commission Act (15 U.S.C. 41 et seq.) or the
Energy Independence and Security Act of 2007 (Public Law 110-
140) to obtain information, to carry out enforcement
activities, or otherwise to carry out the responsibilities of
the Federal Trade Commission.

SEC. 358. EFFECT OF DERIVATIVES REGULATORY REFORM
LEGISLATION.

(a) Statutes.--Upon the passage of legislation that
includes derivatives regulatory reform, sections 351, 352,
354, 355, 356, and 357 shall be repealed.
(b) Regulations.--Upon the passage of legislation that
includes derivatives regulatory reform, any regulations
promulgated under section 351, 352, 354, 355, 356, or 357
shall be considered null and void.

SEC. 359. CEASE-AND-DESIST AUTHORITY.

(a) Natural Gas Act.--Section 20 of the Natural Gas Act (15
U.S.C. 717s) is amended by adding the following at the end:
``(e) Cease-and-desist Proceedings; Temporary Orders;
Authority of the Commission.--
``(1) In general.--If the Commission finds, after notice
and opportunity for hearing, that any entity may be
violating, may have violated, or may be about to violate any
provision of this Act, or any rule, regulation, restriction,
condition, or order made or imposed by the Commission under
the authority of this Act, the Commission may publish its
findings and issue an order requiring such entity, and any
other entity that is, was, or would be a cause of the
violation, due to an act or omission the entity knew or
should have known would contribute to such violation, to
cease and desist from committing or causing such violation
and any future violation of the same provision, rule, or
regulation. Such order may, in addition to requiring an
entity to cease and desist from committing or causing a
violation, require such entity to comply, to provide an
accounting and disgorgement, or to take steps to effect
compliance, with such provision, rule, or regulation, upon
such terms and conditions and within such time as the
Commission may specify in such order. Any such order may, as
the Commission deems appropriate, require future compliance
or steps to effect future compliance, either permanently or
for such period of time as the Commission may specify.
``(2) Timing of entry.--An order issued under this
subsection shall be entered only after notice and opportunity
for a hearing, unless the Commission determines that notice
and hearing prior to entry would be impracticable or contrary
to the public interest.

[[Page H7584]]

``(f) Hearing.--The notice instituting proceedings pursuant
to subsection (e) shall fix a hearing date not earlier than
30 days nor later than 60 days after service of the notice
unless an earlier or a later date is set by the Commission
with the consent of any respondent so served.
``(g) Temporary Order.--Whenever the Commission determines
that---
``(1) a respondent may take actions to dissipate or convert
assets prior to the completion of the proceedings referred to
in subsection (e), and such assets would be necessary to
comply with or otherwise satisfy a final enforcement order of
the Commission pursuant to alleged violations or threatened
violations specified in the notice instituting proceedings;
or
``(2) a respondent is engaged in actual or threatened
violations of this Act or a Commission rule, regulation,
restriction or order referred to in subsection (e),

the Commission may issue a temporary order requiring the
respondent to take such action to prevent dissipation or
conversion of assets, significant harm to energy consumers,
or substantial harm to the public interest, frustration of
the Commission's ability to conduct the proceedings, or
frustration of the Commission's ability to redress said
violation at the conclusion of the proceedings, as the
Commission deems appropriate pending completion of such
proceedings.
``(h) Review of Temporary Orders.--
``(1) Commission review.--At any time after the respondent
has been served with a temporary cease-and-desist order
pursuant to subsection (g), the respondent may apply to the
Commission to have the order set aside, limited, or
suspended. If the respondent has been served with a temporary
cease-and-desist order entered without a prior Commission
hearing, the respondent may, within 10 days after the date on
which the order was served, request a hearing on such
application and the Commission shall hold a hearing and
render a decision on such application at the earliest
possible time.
``(2) Judicial review.--Within--
``(A) 10 days after the date the respondent was served with
a temporary cease-and-desist order entered with a prior
Commission hearing; or
``(B) 10 days after the Commission renders a decision on an
application and hearing under paragraph (1),

with respect to any temporary cease-and-desist order entered
without a prior Commission hearing, the respondent may apply
to the United States circuit court having jurisdiction over
the circuit in which the respondent resides or has its
principal place of business, or to the United States Court of
Appeals for the District of Columbia Circuit, for an order
setting aside, limiting, or suspending the effectiveness or
enforcement of the order, and the court shall have
jurisdiction to enter such an order. A respondent served with
a temporary cease-and-desist order entered without a prior
Commission hearing may not apply to the court except after
hearing and decision by the Commission on the respondent's
application under paragraph (1) of this subsection.
``(3) No automatic stay of temporary order.--The
commencement of proceedings under paragraph (2) of this
subsection shall not, unless specifically ordered by the
court, operate as a stay of the Commission's order.
``(4) Exclusive review.--Sections 19(d) and 24 shall not
apply to a temporary order entered pursuant to this section.
``(i) Implementation.--The Commission is authorized to
adopt rules, regulations, and orders as it deems appropriate
to implement this section.''.
(c) Natural Gas Policy Act of 1978.--Section 504 of the
Natural Gas Policy Act of 1978 (15 U.S.C. 3414) is amended by
adding the following at the end:
``(d) Cease-and-desist Proceedings; Temporary Orders;
Authority of the Commission.--
``(1) In general.--If the Commission finds, after notice
and opportunity for hearing, that any entity may be
violating, may have violated, or may be about to violate any
provision of this Act, or any rule, regulation, restriction,
condition, or order made or imposed by the Commission under
the authority of this Act, the Commission may publish its
findings and issue an order requiring such entity, and any
other entity that is, was, or would be a cause of the
violation, due to an act or omission the entity knew or
should have known would contribute to such violation, to
cease and desist from committing or causing such violation
and any future violation of the same provision, rule, or
regulation. Such order may, in addition to requiring an
entity to cease and desist from committing or causing a
violation, require such entity to comply, to provide an
accounting and disgorgement, or to take steps to effect
compliance, with such provision, rule, or regulation, upon
such terms and conditions and within such time as the
Commission may specify in such order. Any such order may, as
the Commission deems appropriate, require future compliance
or steps to effect future compliance, either permanently or
for such period of time as the Commission may specify.
``(2) Timing of entry.--An order issued under this
subsection shall be entered only after notice and opportunity
for a hearing, unless the Commission determines that notice
and hearing prior to entry would be impracticable or contrary
to the public interest.
``(3) Hearing.--The notice instituting proceedings pursuant
to paragraph (1) shall fix a hearing date not earlier than 30
days nor later than 60 days after service of the notice
unless an earlier or a later date is set by the Commission
with the consent of any respondent so served.
``(4) Temporary order.--Whenever the Commission determines
that--
``(A) a respondent may take actions to dissipate or convert
assets prior to the completion of the proceedings referred to
in paragraph (1) and such assets would be necessary to comply
with or otherwise satisfy a final enforcement order of the
Commission pursuant to alleged violations or threatened
violations specified in the notice instituting proceedings;
or
``(B) a respondent is engaged in actual or threatened
violations of this Act or a Commission rule, regulation,
restriction or order referred to in paragraph (1),

the Commission may issue a temporary order requiring the
respondent to take such action to prevent dissipation or
conversion of assets, significant harm to energy consumers,
or substantial harm to the public interest, frustration of
the Commission's ability to conduct the proceedings, or
frustration of the Commission's ability to redress said
violation at the conclusion of the proceedings, as the
Commission deems appropriate pending completion of such
proceedings.
``(5) Review of temporary orders.--
``(A) Commission review.--At any time after the respondent
has been served with a temporary cease-and-desist order
pursuant to paragraph (4), the respondent may apply to the
Commission to have the order set aside, limited, or
suspended. If the respondent has been served with a temporary
cease-and-desist order entered without a prior Commission
hearing, the respondent may, within 10 days after the date on
which the order was served, request a hearing on such
application and the Commission shall hold a hearing and
render a decision on such application at the earliest
possible time.
``(B) Judicial review.--Within--
``(i) 10 days after the date the respondent was served with
a temporary cease-and-desist order entered with a prior
Commission hearing; or
``(ii) 10 days after the Commission renders a decision on
an application and hearing under subparagraph (A), with
respect to any temporary cease-and-desist order entered
without a prior Commission hearing, the respondent may apply
to the United States circuit court having jurisdiction over
the circuit in which the respondent resides or has its
principal place of business, or to the United States Court of
Appeals for the District of Columbia Circuit, for an order
setting aside, limiting, or suspending the effectiveness or
enforcement of the order, and the court shall have
jurisdiction to enter such an order. A respondent served with
a temporary cease-and-desist order entered without a prior
Commission hearing may not apply to the court except after
hearing and decision by the Commission on the respondent's
application under paragraph (1) of this subsection.
``(C) No automatic stay of temporary order.--The
commencement of proceedings under subparagraph (B) of this
paragraph shall not, unless specifically ordered by the
court, operate as a stay of the Commission's order.
``(6) Implementation.--The Commission is authorized to
adopt rules, regulations, and orders as it deems appropriate
to implement this subsection.''.

SEC. 360. PRESIDENTIAL REVIEW OF REGULATIONS.

Not later than 24 months after the date of enactment of
this Act, the President shall review the offset regulations
and derivatives regulations promulgated pursuant to the
American Clean Energy and Security Act of 2009. The President
shall determine whether such regulations adequately protect
the United States financial system from systemic risk.

TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

Subtitle A--Ensuring Real Reductions in Industrial Emissions

SEC. 401. ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS.

Title VII of the Clean Air Act is amended by inserting
after part E the following new part:

``PART F--ENSURING REAL REDUCTIONS IN INDUSTRIAL EMISSIONS

``SEC. 761. PURPOSES.

``(a) Purposes of Part.--The purposes of this part are--
``(1) to promote a strong global effort to significantly
reduce greenhouse gas emissions, and, through this global
effort, stabilize greenhouse gas concentrations in the
atmosphere at a level that will prevent dangerous
anthropogenic interference with the climate system; and
``(2) to prevent an increase in greenhouse gas emissions in
countries other than the United States as a result of direct
and indirect compliance costs incurred under this title.
``(b) Purposes of Subpart 1.--The purposes of subpart 1 are
additionally--
``(1) to provide a rebate to the owners and operators of
entities in domestic eligible industrial sectors for their
greenhouse gas emission costs incurred under this title, but
not for costs associated with other related or unrelated
market dynamics;

[[Page H7585]]

``(2) to design such rebates in a way that will prevent
carbon leakage while also rewarding innovation and facility-
level investments in energy efficiency performance
improvements; and
``(3) to eliminate or reduce distribution of emission
allowances under subpart 1 when such distribution is no
longer necessary to prevent carbon leakage from eligible
industrial sectors.
``(c) Purposes of Subpart 2.--The purposes of subpart 2 are
additionally--
``(1) to induce foreign countries, and, in particular,
fast-growing developing countries, to take substantial action
with respect to their greenhouse gas emissions consistent
with the Bali Action Plan developed under the United Nations
Framework Convention on Climate Change; and
``(2) to ensure that the measures described in subpart 2
are designed and implemented in a manner consistent with
applicable international agreements to which the United
States is a party.

``SEC. 762. DEFINITIONS.

``In this part:
``(1) Carbon leakage.--The term `carbon leakage' means any
substantial increase (as determined by the Administrator) in
greenhouse gas emissions by industrial entities located in
other countries if such increase is caused by an incremental
cost of production increase in the United States resulting
from the implementation of this title.
``(2) Covered good.--The term `covered good' means a good
that, as identified by the Administrator by regulation, is
either--
``(A) entered under a heading or subheading of the
Harmonized Tariff Schedule of the United States that
corresponds to the NAICS code for an eligible industrial
sector, as established in the concordance between NAICS codes
and the Harmonized Tariff Schedule of the United States
prepared by the United States Census Bureau; or
``(B) a manufactured item for consumption.
``(3) Eligible industrial sector.--The term `eligible
industrial sector' means an industrial sector determined by
the Administrator under section 763(b) to be eligible to
receive emission allowance rebates under subpart 1.
``(4) Industrial sector.--The term `industrial sector'
means any sector that is in the manufacturing sector (as
defined in NAICS codes 31, 32, and 33) or that beneficiates
or otherwise processes (including agglomeration) metal ores,
including iron and copper ores, soda ash, or phosphate. The
extraction of metal ores, soda ash, or phosphate shall not be
considered to be an industrial sector.
``(5) Manufactured item for consumption.--
``(A) In general.--The term `manufactured item for
consumption' means any good--
``(i) that includes in substantial amounts one or more
goods like the goods produced by an eligible industrial
sector;
``(ii) with respect to which an international reserve
allowance program pursuant to subpart 2 is in effect with
regard to the eligible industrial sector and the quantity of
international reserve allowances is not zero pursuant to
section 768(b);
``(iii) with respect to which the trade intensity of the
industrial sector that produces the good, as measured
consistent with section 763(b)(2)(A)(iii), is at least 15
percent; and
``(iv) for which the domestic producers of the good have
demonstrated, and the Administrator has determined, that the
application of the international reserve allowance program
pursuant to subpart 2 is technically and administratively
feasible and appropriate to achieve the purposes of this
part, taking into account the energy and greenhouse gas
intensity of the industrial sector that produces the good, as
measured consistent with section 763(b)(2)(A)(ii), and the
ability of such producers to pass on cost increases and other
appropriate factors.
``(B) Rule of construction.--A determination of the
Administrator under subparagraph (A)(iv) shall not be
considered to be a determination of the President under
section 767(b).
``(6) NAICS.--The term `NAICS' means the North American
Industrial Classification System of 2002.
``(7) Output.--The term `output' means the total tonnage or
other standard unit of production (as determined by the
Administrator) produced by an entity in an industrial sector.
The output of the cement sector is hydraulic cement, and not
clinker.

``Subpart 1--Emission Allowance Rebate Program

``SEC. 763. ELIGIBLE INDUSTRIAL SECTORS.

``(a) List.--
``(1) Initial list.--Not later than June 30, 2011, the
Administrator shall publish in the Federal Register a list of
eligible industrial sectors pursuant to subsection (b). Such
list shall include the amount of the emission allowance
rebate per unit of production that shall be provided to
entities in each eligible industrial sector in the following
two calendar years pursuant to section 764.
``(2) Subsequent lists.--Not later than February 1, 2013,
and every four years thereafter, the Administrator shall
publish in the Federal Register an updated version of the
list published under paragraph (1).
``(b) Eligible Industrial Sectors.--
``(1) In general.--Not later than June 30, 2011, the
Administrator shall promulgate a rule designating, based on
the criteria under paragraph (2), the industrial sectors
eligible for emission allowance rebates under this subpart.
``(2) Presumptively eligible industrial sectors.--
``(A) Eligibility criteria.--
``(i) In general.--An owner or operator of an entity shall
be eligible to receive emission allowance rebates under this
subpart if such entity is in an industrial sector that is
included in a six-digit classification of the NAICS that
meets the criteria in both clauses (ii) and (iii), or the
criteria in clause (iv).
``(ii) Energy or greenhouse gas intensity.--As determined
by the Administrator, the industrial sector had--

``(I) an energy intensity of at least 5 percent, calculated
by dividing the cost of purchased electricity and fuel costs
of the sector by the value of the shipments of the sector,
based on data described in subparagraph (D); or
``(II) a greenhouse gas intensity of at least 5 percent,
calculated by dividing--

``(aa) the number 20 multiplied by the number of tons of
carbon dioxide equivalent greenhouse gas emissions (including
direct emissions from fuel combustion, process emissions, and
indirect emissions from the generation of electricity used to
produce the output of the sector) of the sector based on data
described in subparagraph (D); by
``(bb) the value of the shipments of the sector, based on
data described in subparagraph (D).
``(iii) Trade intensity.--As determined by the
Administrator, the industrial sector had a trade intensity of
at least 15 percent, calculated by dividing the value of the
total imports and exports of such sector by the value of the
shipments plus the value of imports of such sector, based on
data described in subparagraph (D).
``(iv) Very high energy or greenhouse gas intensity.--As
determined by the Administrator, the industrial sector had an
energy or greenhouse gas intensity, as calculated under
clause (ii)(I) or (II), of at least 20 percent.
``(B) Metal and phosphate production classified under more
than one naics code.--For purposes of this section, the
Administrator shall--
``(i) aggregate data for the beneficiation or other
processing (including agglomeration) of metal ores, including
iron and copper ores, soda ash, or phosphate with subsequent
steps in the process of metal and phosphate manufacturing,
regardless of the NAICS code under which such activity is
classified; and
``(ii) aggregate data for the manufacturing of steel with
the manufacturing of steel pipe and tube made from purchased
steel in a nonintegrated process.
``(C) Exclusion.--The petroleum refining sector shall not
be an eligible industrial sector.
``(D) Data sources.--
``(i) Electricity and fuel costs, value of shipments.--The
Administrator shall determine electricity and fuel costs and
the value of shipments under this subsection from data from
the United States Census Annual Survey of Manufacturers. The
Administrator shall take the average of data from as many of
the years of 2004, 2005, and 2006 for which such data are
available. If such data are unavailable, the Administrator
shall make a determination based upon 2002 or 2006 data from
the most detailed industrial classification level of Energy
Information Agency's Manufacturing Energy Consumption Survey
(using 2006 data if it is available) and the 2002 or 2007
Economic Census of the United States (using 2007 data if it
is available). If data from the Manufacturing Energy
Consumption Survey or Economic Census are unavailable for any
sector at the six-digit classification level in the NAICS,
then the Administrator may extrapolate the information
necessary to determine the eligibility of a sector under this
paragraph from available Manufacturing Energy Consumption
Survey or Economic Census data pertaining to a broader
industrial category classified in the NAICS. If data relating
to the beneficiation or other processing (including
agglomeration) of metal ores, including iron and copper ores,
soda ash, or phosphate are not available from the specified
data sources, the Administrator shall use the best available
Federal or State government data and may use, to the extent
necessary, representative data submitted by entities that
perform such beneficiation or other processing (including
agglomeration), in making a determination. Fuel cost data
shall not include the cost of fuel used as feedstock by an
industrial sector.
``(ii) Imports and exports.--The Administrator shall base
the value of imports and exports under this subsection on
United States International Trade Commission data. The
Administrator shall take the average of data from as many of
the years of 2004, 2005, and 2006 for which such data are
available. If data from the United States International Trade
Commission are unavailable for any sector at the six-digit
classification level in the NAICS, then the Administrator may
extrapolate the information necessary to determine the
eligibility of a sector under this paragraph from available
United States International Trade Commission data pertaining
to a broader industrial category classified in the NAICS.
``(iii) Percentages.--The Administrator shall round the
energy intensity, greenhouse gas intensity, and trade
intensity percentages under subparagraph (A) to the nearest
whole number.
``(iv) Greenhouse gas emission calculations.--When
calculating the tons of carbon

[[Page H7586]]

dioxide equivalent greenhouse gas emissions for each sector
under subparagraph (A)(ii)(II)(aa), the Administrator--

``(I) shall use the best available data from as many of the
years 2004, 2005, and 2006 for which such data is available;
and
``(II) may, to the extent necessary with respect to a
sector, use economic and engineering models and the best
available information on technology performance levels for
such sector.

``(3) Administrative determination of additional eligible
industrial sectors.--
``(A) Updated trade intensity data.--The Administrator
shall designate as eligible to receive emission allowance
rebates under this subpart an industrial sector that--
``(i) met the energy or greenhouse gas intensity criteria
in paragraph (2)(A)(ii) as of the date of promulgation of the
rule under paragraph (1); and
``(ii) meets the trade intensity criteria in paragraph
(2)(A)(iii), using data from any year after 2006.
``(B) Individual showing petition.--
``(i) Petition.--In addition to designation under paragraph
(2) or subparagraph (A) of this paragraph, the owner or
operator of an entity in an industrial sector may petition
the Administrator to designate as eligible industrial sectors
under this subpart an entity or a group of entities that--

``(I) represent a subsector of a six-digit section of the
NAICS code; and
``(II) meet the eligibility criteria in both clauses (ii)
and (iii) of paragraph (2)(A), or the eligibility criteria in
clause (iv) of paragraph (2)(A).

``(ii) Data.--In making a determination under this
subparagraph, the Administrator shall consider data submitted
by the petitioner that is specific to the entity, data
solicited by the Administrator from other entities in the
subsector, if such other entities exist, and data specified
in paragraph (2)(D).
``(iii) Basis of subsector determination.--The
Administrator shall determine an entity or group of entities
to be a subsector of a six-digit section of the NAICS code
based only upon the products manufactured and not the
industrial process by which the products are manufactured,
except that the Administrator may determine an entity or
group of entities that manufacture a product from primarily
virgin material to be a separate subsector from another
entity or group of entities that manufacture the same product
primarily from recycled material.
``(iv) Use of most recent data.--In determining whether to
designate a sector or subsector as an eligible industrial
sector under this subparagraph, the Administrator shall use
the most recent data available from the sources described in
paragraph (2)(D), rather than the data from the years
specified in paragraph (2)(D), to determine the trade
intensity of such sector or subsector, but only for
determining such trade intensity.
``(v) Final action.--The Administrator shall take final
action on such petition no later than 6 months after the
petition is received by the Administrator.

``SEC. 764. DISTRIBUTION OF EMISSION ALLOWANCE REBATES.

``(a) Distribution Schedule.--
``(1) In general.--For each vintage year, the Administrator
shall distribute pursuant to this section emission allowances
made available under section 782(e), no later than October 31
of the preceding calendar year. The Administrator shall make
such annual distributions to the owners and operators of each
entity in an eligible industrial sector in the amount of
emission allowances calculated under subsection (b), except
that--
``(A) for vintage years 2012 and 2013, the distribution for
a covered entity shall be pursuant to the entity's indirect
carbon factor as calculated under subsection (b)(3);
``(B) for vintage year 2026 and thereafter, the
distribution shall be pursuant to the amount calculated under
subsection (b) multiplied by, except as modified by the
President pursuant to section 767(d)(1)(C) for a sector--
``(i) 90 percent for vintage year 2026;
``(ii) 80 percent for vintage year 2027;
``(iii) 70 percent for vintage year 2028;
``(iv) 60 percent for vintage year 2029;
``(v) 50 percent for vintage year 2030;
``(vi) 40 percent for vintage year 2031;
``(vii) 30 percent for vintage year 2032;
``(viii) 20 percent for vintage year 2033;
``(ix) 10 percent for vintage year 2034; and
``(x) 0 percent for vintage year 2035 and thereafter.
``(2) Resumption of reduction.--If the President has
modified the percentage stated in paragraph (1)(B) under
section 767(d)(1)(C), and the President subsequently makes a
determination under section 767(c) for an eligible industrial
sector that more than 85 percent of United States imports for
that sector are produced or manufactured in countries that
have met at least one of the criteria in that section, then
the 10-year reduction schedule set forth in paragraph (1)(B)
of this subsection shall begin in the next vintage year, with
the percentage reduction based on the amount of the
distribution of emission allowances under this section in the
previous year.
``(3) Newly eligible sectors.--In addition to receiving a
distribution of emission allowances under this section in the
first distribution occurring after an industrial sector is
designated as eligible under section 763(b)(3), the owner or
operator of an entity in that eligible industrial sector may
receive a prorated share of any emission allowances made
available for distribution under this section that were not
distributed for the year in which the petition for
eligibility was granted under section 763(b)(3)(A).
``(4) Cessation of qualifying activities.--If, as
determined by the Administrator, a facility is no longer in
an eligible industrial sector designated under section 763--
``(A) the Administrator shall not distribute emission
allowances to the owner or operator of such facility under
this section; and
``(B) the owner or operator of such facility shall return
to the Administrator all allowances that have been
distributed to it for future vintage years and a pro-rated
amount of allowances distributed to the facility under this
section for the vintage year in which the facility ceases to
be in an eligible industrial sector designated under section
763.
``(b) Calculation of Direct and Indirect Carbon Factors.--
``(1) In general.--
``(A) Covered entities.--Except as provided in subsection
(a), for covered entities that are in eligible industrial
sectors, the amount of emission allowance rebates shall be
based on the sum of the covered entity's direct and indirect
carbon factors.
``(B) Other eligible entities.--For entities that are in
eligible industrial sectors but are not covered entities, the
amount of emission allowance rebates shall be based on the
entity's indirect carbon factor.
``(C) New entities.--Not later than 2 years after the date
of enactment of this title, the Administrator shall issue
regulations governing the distribution of emission allowance
rebates for the first and second years of operation of a new
entity in an eligible industrial sector. These regulations
shall provide for--
``(i) the distribution of emission allowance rebates to
such entities based on comparable entities in the same
sector; and
``(ii) an adjustment in the third and fourth years of
operation to reconcile the total amount of emission allowance
rebates received during the first and second years of
operation to the amount the entity would have received during
the first and second years of operation had the appropriate
data been available.
``(2) Direct carbon factor.--The direct carbon factor for a
covered entity for a vintage year is the product of--
``(A) the average annual output of the covered entity for
the two years preceding the year of the distribution; and
``(B) the most recent calculation of the average direct
greenhouse gas emissions (expressed in tons of carbon dioxide
equivalent) per unit of output for all covered entities in
the sector, as determined by the Administrator under
paragraph (4).
``(3) Indirect carbon factor.--
``(A) In general.--The indirect carbon factor for an entity
for a vintage year is the product obtained by multiplying the
average annual output of the entity for the two years
preceding the year of the distribution by both the
electricity emissions intensity factor determined pursuant to
subparagraph (B) and the electricity efficiency factor
determined pursuant to subparagraph (C) for the year
concerned.
``(B) Electricity emissions intensity factor.--
``(i) In general.--Each person selling electricity to the
owner or operator of an entity in any sector designated as an
eligible industrial sector under section 763(b) shall provide
the owner or operator of the entity and the Administrator, on
an annual basis, the electricity emissions intensity factor
for the entity. The electricity emissions intensity factor
for the entity, expressed in tons of carbon dioxide
equivalents per kilowatt hour, is determined by dividing--

``(I) the annual sum of the hourly product of--

``(aa) the electricity purchased by the entity from that
person in each hour (expressed in kilowatt hours); multiplied
by
``(bb) the marginal or weighted average tons of carbon
dioxide equivalent per kilowatt hour that are reflected in
the electricity charges to the entity, as determined by the
entity's retail rate arrangements; by

``(II) the total kilowatt hours of electricity purchased by
the entity from that person during that year.

``(ii) Use of other data to determine factor.--Where it is
not possible to determine the precise electricity emissions
intensity factor for an entity using the methodology in
clause (i), the person selling electricity shall use the
monthly average data reported by the Energy Information
Administration or collected and reported by the Administrator
for the utility serving the entity to determine the
electricity emissions intensity factor.
``(C) Electricity efficiency factor.--The electricity
efficiency factor is the average amount of electricity (in
kilowatt hours) used per unit of output for all entities in
the relevant sector, as determined by the Administrator based
on the best available data, including data provided under
paragraph (6).
``(D) Indirect carbon factor reduction.--If an electricity
provider received a free allocation of emission allowances
pursuant to section 782(a), the Administrator shall adjust
the indirect carbon factor to avoid rebates to the eligible
entity for costs that the Administrator determines were not
incurred by the eligible entity because the allowances were
freely allocated to the eligible entity's electricity
provider and used for the benefit of industrial consumers.
``(4) Greenhouse gas intensity calculations.--The
Administrator shall calculate

[[Page H7587]]

the average direct greenhouse gas emissions (expressed in
tons of carbon dioxide equivalent) per unit of output and the
electricity efficiency factor for all covered entities in
each eligible industrial sector every four years, using an
average of the four most recent years of the best available
data. For purposes of the lists required to be published no
later than February 1, 2013, the Administrator shall use the
best available data for the maximum number of years, up to 4
years, for which data are available.
``(5) Ensuring efficiency improvements.--When making
greenhouse gas calculations, the Administrator shall--
``(A) limit the average direct greenhouse gas emissions per
unit of output, calculated under paragraph (4), for any
eligible industrial sector to an amount that is not greater
than it was in any previous calculation under this
subsection;
``(B) limit the electricity emissions intensity factor,
calculated under paragraph (3)(B) and resulting from a change
in electricity supply, for any entity to an amount that is
not greater than it was during any previous year; and
``(C) limit the electricity efficiency factor, calculated
under paragraph (3)(C), for any eligible industrial sector to
an amount that is not greater than it was in any previous
calculation under this subsection.
``(6) Data sources.--For the purposes of this subsection--
``(A) the Administrator shall use data from the greenhouse
gas registry established under section 713, where it is
available; and
``(B) each owner or operator of an entity in an eligible
industrial sector and each department, agency, and
instrumentality of the United States shall provide the
Administrator with such information as the Administrator
finds necessary to determine the direct carbon factor and the
indirect carbon factor for each entity subject to this
section.
``(c) Total Maximum Distribution.--Notwithstanding
subsections (a) and (b), the Administrator shall not
distribute more allowances for any vintage year pursuant to
this section than are allocated for use under this subpart
pursuant to section 782(e) for that vintage year. For any
vintage year for which the total emission allowance rebates
calculated pursuant to this section exceed the number of
allowances allocated pursuant to section 782(e), the
Administrator shall reduce each entity's distribution on a
pro rata basis so that the total distribution under this
section equals the number of allowances allocated under
section 782(e).
``(d) Iron and Steel Sector.--For purposes of this section,
the Administrator shall consider as in different industrial
sectors--
``(1) entities using integrated iron and steelmaking
technologies (including coke ovens, blast furnaces, and other
iron-making technologies); and
``(2) entities using electric arc furnace technologies.
``(e) Metal, Soda Ash, or Phosphate Production Classified
Under More Than One NAICS Code.--For purposes of this
section, the Administrator shall not aggregate data for the
beneficiation or other processing (including agglomeration)
of metal ores, soda ash, or phosphate with subsequent steps
in the process of metal, soda ash, or phosphate
manufacturing. The Administrator shall consider the
beneficiation or other processing (including agglomeration)
of metal ores, soda ash, or phosphate to be in separate
industrial sectors from the metal, soda ash, or phosphate
manufacturing sectors. Industrial sectors that beneficiate or
otherwise process (including agglomeration) metal ores, soda
ash, or phosphate shall not receive emission allowance
rebates under this section related to the activity of
extracting metal ores, soda ash, or phosphate.
``(f) Combined Heat and Power.--For purposes of this
section, and to achieve the purpose set forth in section
761(b)(2), the Administrator may consider entities to be in
different industrial sectors or otherwise take into account
the differences among entities in the same industrial sector,
based upon the extent to which such entities use combined
heat and power technologies.

``Subpart 2--Promoting International Reductions in Industrial Emissions

``SEC. 765. INTERNATIONAL NEGOTIATIONS.

``(a) Finding.--Congress finds that the purposes of this
subpart, as set forth in section 761(c), can be most
effectively addressed and achieved through agreements
negotiated between the United States and foreign countries.
``(b) Statement of Policy.--It is the policy of the United
States to work proactively under the United Nations Framework
Convention on Climate Change, and in other appropriate fora,
to establish binding agreements, including sectoral
agreements, committing all major greenhouse gas-emitting
nations to contribute equitably to the reduction of global
greenhouse gas emissions.
``(c) Notification of Foreign Countries.--
``(1) In general.--As soon as practicable after the date of
the enactment of this title, the President shall provide a
notification on climate change described in paragraph (2) to
each foreign country the products of which are not exempted
under section 768(a)(1)(E).
``(2) Notification described.--A notification described in
this paragraph is a notification that consists of--
``(A) a statement of the policy of the United States
described in subsection (b); and
``(B) a declaration--
``(i) requesting the foreign country to take appropriate
measures to limit the greenhouse gas emissions of the foreign
country; and
``(ii) indicating that, beginning on January 1, 2020, the
international reserve requirements of this subpart may apply
to a covered good.

``SEC. 766. UNITED STATES NEGOTIATING OBJECTIVES WITH RESPECT
TO MULTILATERAL ENVIRONMENTAL NEGOTIATIONS.

``(a) In General.--The negotiating objectives of the United
States with respect to multilateral environmental
negotiations described in this subpart are--
``(1) to reach an internationally binding agreement in
which all major greenhouse gas-emitting countries contribute
equitably to the reduction of global greenhouse gas
emissions;
``(2)(A) to include in such international agreement
provisions that recognize and address the competitive
imbalances that lead to carbon leakage and may be created
between parties and non-parties to the agreement in domestic
and export markets; and
``(B) not to prevent parties to such agreement from
addressing the competitive imbalances that lead to carbon
leakage and may be created by the agreement among parties to
the agreement in domestic and export markets ; and
``(3) to include in such international agreement agreed
remedies for any party to the agreement that fails to meet
its greenhouse gas reduction obligations in the agreement.
``(b) Rule of Construction.--Nothing in subsection (a)(2)
shall be construed to require the United States to alter the
provisions of section 764 .

``SEC. 767. PRESIDENTIAL REPORTS AND DETERMINATIONS.

``(a) Report.--Not later than January 1, 2017, and every 2
years thereafter, the President shall submit a report to
Congress on the effectiveness of the distribution of emission
allowance rebates under subpart 1 in mitigating carbon
leakage in eligible industrial sectors. Such report shall
also include--
``(1) an assessment, for each eligible industrial sector
receiving emission allowance rebates, as to whether, and by
how much, the per unit cost of production has increased for
that sector as a result of compliance with section 722 (as
determined in a manner consistent with section 764(b)),
taking into account the provision of the emission allowance
rebates to that industrial sector and the benefit received by
that industrial sector from the provision of free allowances
to electricity providers pursuant to section 782(a);
``(2) recommendations on how to better achieve the purposes
of this subpart, including an assessment of the feasibility
and usefulness of an international reserve allowance program
for the eligible industrial sector under section 768;
``(3) to the extent the President determines that an
international reserve allowance program would not be useful
for the eligible industrial sector because its exposure to
carbon leakage is the result of competition in export markets
with goods produced in countries not implementing similar
greenhouse gas emission reduction policies, an identification
of, and to the extent appropriate a description of how the
President will implement, alternative actions or programs
consistent with the purposes of this subpart (and, in such
case, the President may determine not to apply an
international reserve allowance program to the eligible
industrial sector under subsection (b)); and
``(4) an assessment of the amount and duration of
assistance, including distribution of free allowances, being
provided to industrial sectors in other developed countries
to mitigate costs of compliance with domestic greenhouse gas
reduction programs in such countries.
``(b) Presidential Determination.--
``(1) In general.--If, by January 1, 2018, a multilateral
agreement consistent with the negotiating objectives set
forth in section 766 has not entered into force with respect
to the United States, the President shall establish an
international reserve allowance program for each eligible
industrial sector to the extent provided under section 768
unless--
``(A) the President determines and certifies to the
Congress with respect to such eligible industrial sector that
such program would not be in the national economic interest
or environmental interest of the United States; and
``(B) not later than 90 days after the President transmits
the certification described in subparagraph (A), a joint
resolution is enacted into law that approves the
determination of the President described in subparagraph (A).
``(2) Contents of joint resolution.--For purposes of this
subsection, the term `joint resolution' means only a joint
resolution of the two Houses of Congress, the matter after
the resolving clause of which is as follows: `That the
Congress approves the determination of the President under
section 768(b)(1)(A) of the Clean Air Act transmitted to the
Congress on ______.', the blank space being filled with the
appropriate date.
``(3) Congressional procedures.--Subsections (c), (d), (e),
and (f) of section 152 of the Trade Act of 1974 (19 U.S.C.
2192 (c), (d), (e), and (f)) shall apply to a joint
resolution under this subsection to the same extent as such
subsections apply to a joint resolution under section 152 of
such Act.
``(4) Rule of construction.--For purposes of this section
and section 768, if the President transmits a multilateral
agreement to

[[Page H7588]]

Congress (regardless of whether it is transmitted as a treaty
for ratification by the Senate or another international
agreement for implementation by law enacted by the Congress)
indicating that the agreement is consistent with the
negotiating objectives set forth in section 766, such
agreement will be considered to be consistent with such
negotiating objectives as of the date on which the Senate
ratifies the treaty, or legislation is enacted implementing
such other agreement, unless the Senate (in the case of
ratification) or the implementing legislation expressly
provides that the multilateral agreement shall not be treated
as consistent with such negotiating objectives for purposes
of this section and section 768.
``(c) Determinations With Respect to Eligible Industrial
Sectors.--If the President establishes an international
reserve allowance program pursuant to subsection (b), then
not later than June 30, 2018, and every four years
thereafter, the President, in consultation with the
Administrator and other appropriate agencies, shall
determine, for each eligible industrial sector, whether or
not more than 85 percent of United States imports of covered
goods with respect to that sector are produced or
manufactured in countries that have met at least one of the
following criteria:
``(1) The country is a party to an international agreement
to which the United States is a party that includes a
nationally enforceable and economy-wide greenhouse gas
emissions reduction commitment for that country that is at
least as stringent as that of the United States.
``(2) The country is a party to a multilateral or bilateral
emission reduction agreement for that sector to the which the
United States is a party.
``(3) The country has an annual energy or greenhouse gas
intensity, as described in section 763(b)(2)(A)(ii), for the
sector that is equal to or less than the energy or greenhouse
gas intensity for such industrial sector in the United States
in the most recent calendar year for which data are
available.
``(d) Effect of Presidential Determination.--
``(1) Required actions.--If the President makes a
determination under subsection (c) with respect to an
eligible industrial sector that 85 percent or less of United
States imports of covered goods with respect to the sector
are produced or manufactured in countries that have met one
or more of the criteria in subsection (c), then the President
shall, not later than June 30, 2018, and every four years
thereafter--
``(A) assess the extent to which the emission allowance
rebates provided pursuant to subpart 1 and the benefit
received by that industrial sector from the provision of free
allowances to electricity providers pursuant to section
782(a) have mitigated or addressed, or could mitigate or
address, carbon leakage in that sector;
``(B) assess the extent to which an international reserve
allowance program has mitigated or addressed, or could
mitigate or address, carbon leakage in that sector; and
``(C) with respect to that sector--
``(i) modify the percentage by which direct and indirect
carbon factors will be multiplied under section 764(a)(1)(B);
and
``(ii) apply or continue to apply an international reserve
allowance program under section 768 with respect to imports
of covered goods with respect to that sector.
``(2) Prohibited actions.--If the President makes a
determination under subsection (c) with respect to an
eligible industrial sector that more than 85 percent of
United States imports of covered goods with respect to the
sector are produced or manufactured in countries that have
met one or more of the criteria in subsection (c), then the
President may not apply or continue to apply an international
reserve allowance program under section 768 with respect to
imports of covered goods with respect to that sector.
``(e) Report to Congress.--Not later than June 30, 2018,
and every four years thereafter, the President shall transmit
to the Congress a report providing notice of any
determination made under subsection (c), explaining the
reasons for such determination, and identifying the actions
taken by the President under subsection (d).

``SEC. 768. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.

``(a) Establishment.--
``(1) In general.--The Administrator, with the concurrence
of Commissioner responsible for U.S. Customs and Border
Protection, shall issue regulations--
``(A) establishing an international reserve allowance
program for the sale, exchange, purchase, transfer, and
banking of international reserve allowances for covered goods
with respect to the eligible industrial sector;
``(B) ensuring that the price for purchasing the
international reserve allowances from the United States on a
particular day is equivalent to the auction clearing price
for emission allowances under section 722 for the most recent
emission allowance auction;
``(C) establishing a general methodology for calculating
the quantity of international reserve allowances that a
United States importer of any covered good must submit;
``(D) requiring the submission of appropriate amounts of
such allowances for covered goods with respect to the
eligible industrial sector that enter the customs territory
of the United States;
``(E) exempting from the requirements of subparagraph (D)
such products that are the origin of--
``(i) any country determined to meet any of the standards
provided in section 767(c);
``(ii) any foreign country that the United Nations has
identified as among the least developed of developing
countries; or
``(iii) any foreign country that the President has
determined to be responsible for less than 0.5 percent of
total global greenhouse gas emissions and less than 5 percent
of United States imports of covered goods with respect to the
eligible industrial sector;
``(F) specifying the procedures that U.S. Customs and
Border Protection will apply for the declaration and entry of
covered goods with respect to the eligible industrial sector
into the customs territory of the United States; and
``(G) establishing procedures that prevent circumvention of
the international reserve allowance requirement for covered
goods with respect to the eligible industrial sector that are
manufactured or processed in more than one foreign country.
``(2) Purpose of program.--The Administrator shall
establish the program under paragraph (1) consistent with
international agreements to which the United States is a
party, in a manner that minimizes the likelihood of carbon
leakage as a result of differences between--
``(A) the direct and indirect costs of complying with
section 722; and
``(B) the direct and indirect costs, if any, of complying
in other countries with greenhouse gas regulatory programs,
requirements, export tariffs, or other measures adopted or
imposed to reduce greenhouse gas emissions.
``(b) Emission Allowance Rebates.--In establishing a
general methodology for purposes of subsection (a)(1)(C), the
Administrator shall include an adjustment to the quantity of
international reserve allowances based on the value of
emission allowance rebates distributed under subpart 1 and
the benefit received by the eligible industrial sector
concerned from the provision of free allowances to
electricity providers pursuant to section 782(a) and may, if
appropriate, determine that the quantity of international
reserve allowances should be reduced as low as to zero.
``(c) Effective Date.--The international reserve allowance
program may not apply to imports of covered goods entering
the customs territory of the United States before January 1,
2020.
``(d) Covered Entities.--International reserve allowances
may not be used by covered entities to comply with section
722.

``SEC. 769. IRON AND STEEL SECTOR.

``For purposes of this subpart, the Administrator shall
consider to be in the same eligible industrial sector--
``(1) entities using integrated iron and steelmaking
technologies (including coke ovens, blast furnaces, and other
iron-making technologies); and
``(2) entities using electric arc furnace technologies.''.

Subtitle B--Green Jobs and Worker Transition

PART 1--GREEN JOBS

SEC. 421. CLEAN ENERGY CURRICULUM DEVELOPMENT GRANTS.

(a) Authorization.--The Secretary of Education is
authorized to award grants, on a competitive basis, to
eligible partnerships to develop programs of study
(containing the information described in section 122(c)(1)(A)
of the Carl D. Perkins Career and Technical Education Act of
2006 (20 U.S.C. 2342)), that are focused on emerging careers
and jobs in the fields of clean energy, renewable energy,
energy efficiency, climate change mitigation, and climate
change adaptation. The Secretary of Education shall consult
with the Secretary of Labor and the Secretary of Energy prior
to the issuance of a solicitation for grant applications.
(b) Eligible Partnerships.--For purposes of this section,
an eligible partnership shall include--
(1) at least 1 local educational agency eligible for
funding under section 131 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2351) or an area
career and technical education school or education service
agency described in such section;
(2) at least 1 postsecondary institution eligible for
funding under section 132 of such Act (20 U.S.C. 2352); and
(3) representatives of the community including business,
labor organizations, and industry that have experience in
fields as described in subsection (a).
(c) Application.--An eligible partnership seeking a grant
under this section shall submit an application to the
Secretary at such time and in such manner as the Secretary
may require. Applications shall include--
(1) a description of the eligible partners and partnership,
the roles and responsibilities of each partner, and a
demonstration of each partner's capacity to support the
program;
(2) a description of the career area or areas within the
fields as described in subsection (a) to be developed, the
reason for the choice, and evidence of the labor market need
to prepare students in that area;
(3) a description of the new or existing program of study
and both secondary and postsecondary components;
(4) a description of the students to be served by the new
program of study;
(5) a description of how the program of study funded by the
grant will be replicable and disseminated to schools outside
of the partnership, including urban and rural areas;

[[Page H7589]]

(6) a description of applied learning that will be
incorporated into the program of study and how it will
incorporate or reinforce academic learning;
(7) a description of how the program of study will be
delivered;
(8) a description of how the program will provide
accessibility to students, especially economically
disadvantaged, low performing, and urban and rural students;
(9) a description of how the program will address placement
of students in nontraditional fields as described in section
3(20) of the Carl D. Perkins Career and Technical Education
Act of 2006 (20 U.S.C. 2302(20)); and
(10) a description of how the applicant proposes to consult
or has consulted with a labor organization, labor management
partnership, apprenticeship program, or joint apprenticeship
and training program that provides education and training in
the field of study for which the applicant proposes to
develop a curriculum.
(d) Priority.--The Secretary shall give priority to
applications that--
(1) use online learning or other innovative means to
deliver the program of study to students, educators, and
instructors outside of the partnership; and
(2) focus on low performing students and special
populations as defined in section 3(29) of the Carl D.
Perkins Career and Technical Education Act of 2006 (20 U.S.C.
2302(29)).
(e) Peer Review.--The Secretary shall convene a peer review
process to review applications for grants under this section
and to make recommendations regarding the selection of
grantees. Members of the peer review committee shall
include--
(1) educators who have experience implementing curricula
with comparable purposes; and
(2) business and industry experts in fields as described in
subsection (a).
(f) Uses of Funds.--Grants awarded under this section shall
be used for the development, implementation, and
dissemination of programs of study (as described in section
122(c)(1)(A) of the Carl D. Perkins Career and Technical
Education Act (20 U.S.C. 2342(c)(1)(A))) in career areas
related to clean energy, renewable energy, energy efficiency,
climate change mitigation, and climate change adaptation.

SEC. 422. INCREASED FUNDING FOR ENERGY WORKER TRAINING
PROGRAM.

(a) Authorization.--Section 171(e)(8) of the Workforce
Investment Act of 1998 (29 U.S.C. 2916(e)(8)) is amended by
striking ``$125,000,000'' and inserting ``$150,000,000''.
(b) Establishment of Fund.--There is hereby established in
the Treasury a separate account that shall be known as the
Energy Efficiency and Renewable Energy Worker Training Fund.
(c) Availability of Amounts.--Subject to subtitle F of
title IV, all amounts deposited into the Energy Efficiency
and Renewable Energy Worker Training Fund shall be available
to the Secretary to carry out section 171(e)(8) of the
Workforce Investment Act of 1998 (29 U.S.C. 2916(e)(8))
subject to further appropriation.

SEC. 423. DEVELOPMENT OF INFORMATION AND RESOURCES
CLEARINGHOUSE FOR VOCATIONAL EDUCATION AND JOB
TRAINING IN RENEWABLE ENERGY SECTORS.

(a) Development of Clearinghouse.--Not later than 18 months
after the date of enactment of this Act, the Secretary of
Labor, in collaboration with the Secretary of Energy and the
Secretary of Education, shall develop an internet based
information and resources clearinghouse to aid career and
technical education and job training programs for the
renewable energy sectors. In establishing the clearinghouse,
the Secretary shall--
(1) collect and provide information that addresses the
consequences of rapid changes in technology and regional
disparities for renewable energy training programs and
provides best practices for training and education in light
of such changes and disparities;
(2) place an emphasis on facilitating collaboration between
the renewable energy industry and job training programs and
on identifying industry and technological trends and best
practices, to better help job training programs maintain
quality and relevance; and
(3) place an emphasis on assisting programs that cater to
high-demand middle-skill, trades, manufacturing, contracting,
and consulting careers.
(b) Solicitation and Consultation.--In developing the
clearinghouse pursuant to subsection (a), the Secretary shall
solicit information and expertise from businesses and
organizations in the renewable energy sector and from
institutions of higher education, career and technical
schools, and community colleges that provide training in the
renewable energy sectors. The Secretary shall solicit a
comprehensive peer review of the clearinghouse by such
entities not less than once every 2 years. Nothing in this
subsection should be interpreted to require the divulgence of
proprietary or competitive information.
(c) Contents of Clearinghouse.--
(1) Separate section for each renewable energy sector.--The
clearinghouse shall contain separate sections developed for
each of the following renewable energy sectors:
(A) Solar energy systems.
(B) Wind energy systems.
(C) Energy transmission systems.
(D) Geothermal systems of energy and heating.
(E) Energy efficiency technical training.
(2) Additional requirements.--In addition to the
information required in subsection (a), each section of the
clearinghouse shall include information on basic
environmental science and processes needed to understand
renewable energy systems, Federal government and industry
resources, and points of contact to aid institutions in the
development of placement programs for apprenticeships and
post graduation opportunities, and information and tips about
a green workplace, energy efficiency, and relevant
environmental topics and information on available industry
recognized certifications in each area.
(d) Dissemination.--The clearinghouse shall be made
available via the Internet to the general public. Notice of
the completed clearinghouse and any major revisions thereto
shall also be provided--
(1) to each Member of Congress; and
(2) on the websites of the Departments of Education,
Energy, and Labor.
(e) Revision.--The Secretary of Labor shall revise and
update the clearinghouse on a regular basis to ensure its
relevance.

SEC. 424. MONITORING PROGRAM EFFECTIVENESS.

The Secretary of Labor shall monitor the potential growth
of affected and displaced workers to ensure that the
necessary funding continues to support the number of workers
affected.

SEC. 424A. GREEN CONSTRUCTION CAREERS DEMONSTRATION PROJECT.

(a) Establishment and Authority.--The Secretary of Labor,
in consultation with the Secretary of Energy, shall, not
later than 180 days after the enactment of this Act,
establish a Green Construction Careers demonstration project
by rules, regulations, and guidance in accordance with the
provisions of this section. The purpose of the demonstration
project shall be to promote middle class careers and quality
employment practices in the green construction sector among
targeted workers and to advance efficiency and performance on
construction projects related to this Act. In order to
advance these purposes, the Secretary shall identify
projects, including residential retrofitting projects, funded
directly by or assisted in whole or in part by or through the
Federal Government pursuant to this Act or by any other
entity established in accordance with this Act, to which all
of the following shall apply.
(b) Requirements.--The Secretaries may establish such terms
and conditions for the demonstration projects as the
Secretaries determine are necessary to meet the purposes of
subsection (a), including establishing minimum proportions of
hours to be worked by targeted workers on such projects. The
Secretaries may require the contractors and subcontractors
performing construction services on the project to comply
with the terms and conditions as a condition of receiving
funding or assistance from the Federal Government under this
Act.
(c) Evaluation.--The Secretaries shall evaluate the
demonstration projects against the purposes of this section
at the end of 3 years from initiation of the demonstration
project. If the Secretaries determine that the demonstration
projects have been successful, the Secretaries may identify
further projects to which of the provisions of this section
shall apply.
(d) GAO Report.--The Comptroller General shall prepare and
submit a report to the Committee on Health, Education, Labor
and Pensions and the Committee on Energy and Natural
Resources of the Senate and the Committee on Education and
Labor and the Committee on Energy and Commerce of the House
of Representatives not later than 5 years after the date of
enactment of this Act, which shall advise the committees of
the results of the demonstration projects and make
appropriate recommendations.
(e) Definition and Designation of Targeted Workers.--As
used in this section, the term ``targeted worker'' means an
individual who resides in the same labor market area (as
defined in section 101(18) of the Workforce Investment Act of
1998 (29 U.S.C. 2801(18))) as the project and who--
(1) is a member of a targeted group, within the meaning of
section 51 of the Internal Revenue Code of 1986, other than
an individual described in subsection (d)(1)(C) of such
section;
(2)(A) resides in a census tract in which not less than 20
percent of the households have incomes below the Federal
poverty guidelines; or
(B) is a member of a family that received a total family
income that, during the 2-year period prior to employment on
the project or admission to the pre-apprenticeship program,
did not exceed 200 percent of the Federal poverty guidelines
(exclusive of unemployment compensation, child support
payments, payments described in section 101(25)(A) of the
Workforce Investment Act (29 U.S.C. 2801(25)(A)), and old-age
and survivors insurance benefits received under section 202
of the Social Security Act (42 U.S.C. 402); or
(3) is a displaced homemaker, as such term is defined in
section 3(10) of the Carl D. Perkins Career and Technical
Education Act of 2006 (20 U.S.C. 2302(10)).
(f) Qualified Pre-Apprenticeship Program.--A qualified pre-
apprenticeship program is a pre-apprenticeship program that
has demonstrated an ability to recruit, train, and prepare
for admission to apprenticeship programs individuals who are
targeted workers.

[[Page H7590]]

(g) Qualified Apprenticeship and Other Training Programs.--
(1) Participation by each contractor required.--Each
contractor and subcontractor that seeks to provide
construction services on projects identified by the
Secretaries pursuant to subsection (a) shall submit adequate
assurances with its bid or proposal that it participates in a
qualified apprenticeship or other training program, with a
written arrangement with a qualified pre-apprenticeship
program, for each craft or trade classification of worker
that it intends to employ to perform work on the project.
(2) Definition of qualified apprenticeship or other
training program.--
(A) In general.--For purposes of this section, the term
``qualified apprenticeship or other training program'' means
an apprenticeship or other training program that qualifies as
an employee welfare benefit plan, as defined in section 3(1)
of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1002(1)).
(B) Certification of other programs in certain
localities.--In the event that the Secretary of Labor
certifies that a qualified apprenticeship or other training
program (as defined in subparagraph (A)) for a craft or trade
classification of workers that a prospective contractor or
subcontractor intends to employ, is not operated in the
locality where the project will be performed, an
apprenticeship or other training program that is not an
employee welfare benefit plan (as defined in such section)
may be certified by the Secretary as a qualified
apprenticeship or other training program provided it is
registered with the Office of Apprenticeship of the
Department of Labor, or a State apprenticeship agency
recognized by the Office of Apprenticeship for Federal
purposes.
(h) Facilitating Compliance.--The Secretary may require
Federal contracting agencies, recipients of Federal
assistance, and any other entity established in accordance
with this Act to require contractors to enter into an
agreement in a manner comparable with the standards set forth
in sections 3 and 4 of Executive Order 13502 in order to
achieve the purposes of this section, including any
requirements established by subsection (b).
(i) Limitation.--The requirements of this section shall not
apply to any project funded under this Act in American Samoa,
Guam, the Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, or the United States Virgin
Islands, unless participation is requested by the governor of
such territories within 1 year of the promulgation of rules
under this Act.

PART 2--CLIMATE CHANGE WORKER ADJUSTMENT ASSISTANCE

SEC. 425. PETITIONS, ELIGIBILITY REQUIREMENTS, AND
DETERMINATIONS.

(a) Petitions.--
(1) Filing.--A petition for certification of eligibility to
apply for adjustment assistance for a group of workers under
this part may be filed by any of the following:
(A) The group of workers.
(B) The certified or recognized union or other duly
authorized representative of such workers.
(C) Employers of such workers, one-stop operators or one-
stop partners (as defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)), including State
employment security agencies, or the State dislocated worker
unit established under title I of such Act, on behalf of such
workers.

The petition shall be filed simultaneously with the Secretary
of Labor and with the Governor of the State in which such
workers' employment site is located.
(2) Action by governors.--Upon receipt of a petition filed
under paragraph (1), the Governor shall--
(A) ensure that rapid response activities and appropriate
core and intensive services (as described in section 134 of
the Workforce Investment Act of 1998 (29 U.S.C. 2864))
authorized under other Federal laws are made available to the
workers covered by the petition to the extent authorized
under such laws; and
(B) assist the Secretary in the review of the petition by
verifying such information and providing such other
assistance as the Secretary may request.
(3) Action by the secretary.--Upon receipt of the petition,
the Secretary shall promptly publish notice in the Federal
Register and on the website of the Department of Labor that
the Secretary has received the petition and initiated an
investigation.
(4) Hearings.--If the petitioner, or any other person found
by the Secretary to have a substantial interest in the
proceedings, submits not later than 10 days after the date of
the Secretary's publication under paragraph (3) a request for
a hearing, the Secretary shall provide for a public hearing
and afford such interested persons an opportunity to be
present, to produce evidence, and to be heard.
(b) Eligibility.--
(1) In general.--A group of workers shall be certified by
the Secretary as eligible to apply for adjustment assistance
under this part pursuant to a petition filed under subsection
(a) if--
(A) the group of workers is employed in--
(i) energy producing and transforming industries;
(ii) industries dependent upon energy industries;
(iii) energy-intensive manufacturing industries;
(iv) consumer goods manufacturing; or
(v) other industries whose employment the Secretary
determines has been adversely affected by any requirement of
title VII of the Clean Air Act;
(B) the Secretary determines that a significant number or
proportion of the workers in such workers' employment site
have become totally or partially separated, or are threatened
to become totally or partially separated from employment; and
(C) the sales, production, or delivery of goods or services
have decreased as a result of any requirement of title VII of
the Clean Air Act, including--
(i) the shift from reliance upon fossil fuels to other
sources of energy, including renewable energy, that results
in the closing of a facility or layoff of employees at a
facility that mines, produces, processes, or utilizes fossil
fuels to generate electricity;
(ii) a substantial increase in the cost of energy required
for a manufacturing facility to produce items whose prices
are competitive in the marketplace, to the extent the cost is
not offset by allowance allocation to the facility pursuant
to title VII of the Clean Air Act; or
(iii) other documented occurrences that the Secretary
determines are indicators of an adverse impact on an industry
described in subparagraph (A) as a result of any requirement
of title VII of the Clean Air Act.
(2) Workers in public agencies.--A group of workers in a
public agency shall be certified by the Secretary as eligible
to apply for climate change adjustment assistance pursuant to
a petition filed if the Secretary determines that a
significant number or proportion of the workers in the public
agency have become totally or partially separated from
employment, or are threatened to become totally or partially
separated as a result of any requirement of title VII of the
Clean Air Act.
(3) Adversely affected service workers.--A group of workers
shall be certified as eligible to apply for climate change
adjustment assistance pursuant to a petition filed if the
Secretary determines that--
(A) a significant number or proportion of the service
workers at an employment site where a group of workers has
been certified by the Secretary as eligible to apply for
adjustment assistance under this part pursuant to paragraph
(1) have become totally or partially separated from
employment, or are threatened to become totally or partially
separated; and
(B) a loss of business in the firm providing service
workers to an employment site is directly attributable to one
or more of the documented occurrences listed in paragraph
(1)(C).
(c) Authority to Investigate and Collect Information.--
(1) In general.--The Secretary shall, in determining
whether to certify a group of workers under subsection (d),
obtain information the Secretary determines to be necessary
to make the certification, through questionnaires and in such
other manner as the Secretary determines appropriate from--
(A) the workers' employer;
(B) officials of certified or recognized unions or other
duly authorized representatives of the group of workers; or
(C) one-stop operators or one-stop partners (as defined in
section 101 of the Workforce Investment Act of 1998 (29
U.S.C. 2801)); or
(2) Verification of information.--The Secretary shall
require an employer, union, or one-stop operator or partner
to certify all information obtained under paragraph (1) from
the employer, union, or one-stop operator or partner (as the
case may be) on which the Secretary relies in making a
determination under subsection (d), unless the Secretary has
a reasonable basis for determining that such information is
accurate and complete without being certified.
(3) Protection of confidential information.--The Secretary
may not release information obtained under paragraph (1) that
the Secretary considers to be confidential business
information unless the employer submitting the confidential
business information had notice, at the time of submission,
that the information would be released by the Secretary, or
the employer subsequently consents to the release of the
information. Nothing in this paragraph shall be construed to
prohibit the Secretary from providing such confidential
business information to a court in camera or to another party
under a protective order issued by a court.
(d) Determination by the Secretary of Labor.--
(1) In general.--As soon as possible after the date on
which a petition is filed under subsection (a), but in any
event not later than 40 days after that date, the Secretary,
in consultation with the Secretary of Energy and the
Administrator, as necessary, shall determine whether the
petitioning group meets the requirements of subsection (b)
and shall issue a certification of eligibility to apply for
assistance under this part covering workers in any group
which meets such requirements. Each certification shall
specify the date on which the total or partial separation
began or threatened to begin. Upon reaching a determination
on a petition, the Secretary shall promptly publish a summary
of the determination in the Federal Register and on the
website of the Department of Labor, together with the
Secretary's reasons for making such determination.
(2) One year limitation.--A certification under this
section shall not apply to any

[[Page H7591]]

worker whose last total or partial separation from the
employment site before the worker's application under section
426(a) occurred more than 1 year before the date of the
petition on which such certification was granted.
(3) Revocation of certification.--Whenever the Secretary
determines, with respect to any certification of eligibility
of the workers of an employment site, that total or partial
separations from such site are no longer a result of the
factors specified in subsection (b)(1), the Secretary shall
terminate such certification and promptly have notice of such
termination published in the Federal Register and on the
website of the Department of Labor, together with the
Secretary's reasons for making such determination. Such
termination shall apply only with respect to total or partial
separations occurring after the termination date specified by
the Secretary.
(e) Industry Notification of Assistance.--Upon receiving a
notification of a determination under subsection (d) with
respect to a domestic industry the Secretary of Labor shall
notify the representatives of the domestic industry affected
by the determination, employers publicly identified by name
during the course of the proceeding relating to the
determination, and any certified or recognized union or, to
the extent practicable, other duly authorized representative
of workers employed by such representatives of the domestic
industry, of--
(1) the adjustment allowances, training, and other benefits
available under this part;
(2) the manner in which to file a petition and apply for
such benefits; and
(3) the availability of assistance in filing such
petitions;
(4) notify the Governor of each State in which one or more
employers in such industry are located of the Secretary's
determination and the identity of the employers; and
(5) upon request, provide any assistance that is necessary
to file a petition under subsection (a).
(f) Benefit Information to Workers, Providers of
Training.--
(1) In general.--The Secretary shall provide full
information to workers about the adjustment allowances,
training, and other benefits available under this part and
about the petition and application procedures, and the
appropriate filing dates, for such allowances, training and
services. The Secretary shall provide whatever assistance is
necessary to enable groups of workers to prepare petitions or
applications for program benefits. The Secretary shall make
every effort to insure that cooperating State agencies fully
comply with the agreements entered into under section 426(a)
and shall periodically review such compliance. The Secretary
shall inform the State Board for Vocational Education or
equivalent agency, the one-stop operators or one-stop
partners (as defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801), and other public or
private agencies, institutions, and employers, as
appropriate, of each certification issued under subsection
(d) and of projections, if available, of the needs for
training under as a result of such certification.
(2) Notice by mail.--The Secretary shall provide written
notice through the mail of the benefits available under this
part to each worker whom the Secretary has reason to believe
is covered by a certification made under subsection (d)--
(A) at the time such certification is made, if the worker
was partially or totally separated from the adversely
affected employment before such certification, or--
(B) at the time of the total or partial separation of the
worker from the adversely affected employment, if
subparagraph (A) does not apply.
(3) Newspapers; website.--The Secretary shall publish
notice of the benefits available under this part to workers
covered by each certification made under subsection (d) in
newspapers of general circulation in the areas in which such
workers reside and shall make such information available on
the website of the Department of Labor.

SEC. 426. PROGRAM BENEFITS.

(a) Climate Change Adjustment Allowance.--
(1) Eligibility.--Payment of a climate change adjustment
allowance shall be made to an adversely affected worker
covered by a certification under section 425(b) who files an
application for such allowance for any week of unemployment
which begins on or after the date of such certification, if
the following conditions are met:
(A) Such worker's total or partial separation before the
worker's application under this part occurred--
(i) on or after the date, as specified in the certification
under which the worker is covered, on which total or partial
separation began or threatened to begin in the adversely
affected employment;
(ii) before the expiration of the 2-year period beginning
on the date on which the determination under section 425(d)
was made; and
(iii) before the termination date, if any, determined
pursuant to section 425(d)(3).
(B) Such worker had, in the 52-week period ending with the
week in which such total or partial separation occurred, at
least 26 weeks of full-time employment or 1,040 hours of part
time employment in adversely affected employment, or, if data
with respect to weeks of employment are not available,
equivalent amounts of employment computed under regulations
prescribed by the Secretary. For the purposes of this
paragraph, any week in which such worker--
(i) is on employer-authorized leave for purposes of
vacation, sickness, injury, maternity, or inactive duty or
active duty military service for training;
(ii) does not work because of a disability that is
compensable under a workmen's compensation law or plan of a
State or the United States;
(iii) had his employment interrupted in order to serve as a
full-time representative of a labor organization in such
firm; or
(iv) is on call-up for purposes of active duty in a reserve
status in the Armed Forces of the United States, provided
such active duty is ``Federal service'' as defined in section
8521(a)(1) of title 5, United States Code,

shall be treated as a week of employment.
(C) Such worker is enrolled in a training program approved
by the Secretary under subsection (b)(2).
(2) Ineligibility for certain other benefits.--An adversely
affected worker receiving a payment under this section shall
be ineligible to receive any other form of unemployment
insurance for the period in which such worker is receiving a
climate change adjustment allowance under this section.
(3) Revocation.--If--
(A) the Secretary determines that--
(i) the adversely affected worker--

(I) has failed to begin participation in the training
program the enrollment in which meets the requirement of
paragraph (1)(C); or
(II) has ceased to participate in such training program
before completing such training program; and

(ii) there is no justifiable cause for such failure or
cessation; or
(B) the certification made with respect to such worker
under section 425(d) is revoked under paragraph (3) of such
section,

no adjustment allowance may be paid to the adversely affected
worker under this part for the week in which such failure,
cessation, or revocation occurred, or any succeeding week,
until the adversely affected worker begins or resumes
participation in a training program approved by the Secretary
under section (b)(2).
(4) Waivers of training requirements.--The Secretary may
issue a written statement to an adversely affected worker
waiving the requirement to be enrolled in training described
in subsection (b)(2) if the Secretary determines that it is
not feasible or appropriate for the worker, because of 1 or
more of the following reasons:
(A) Recall.--The worker has been notified that the worker
will be recalled by the employer from which the separation
occurred.
(B) Marketable skills.--
(i) In general.--The worker possesses marketable skills for
suitable employment (as determined pursuant to an assessment
of the worker, which may include the profiling system under
section 303(j) of the Social Security Act (42 U.S.C. 503(j)),
carried out in accordance with guidelines issued by the
Secretary) and there is a reasonable expectation of
employment at equivalent wages in the foreseeable future.
(ii) Marketable skills defined.--For purposes of clause
(i), the term ``marketable skills'' may include the
possession of a postgraduate degree from an institution of
higher education (as defined in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)) or an equivalent
institution, or the possession of an equivalent postgraduate
certification in a specialized field.
(C) Retirement.--The worker is within 2 years of meeting
all requirements for entitlement to either--
(i) old-age insurance benefits under title II of the Social
Security Act (42 U.S.C. 401 et seq.) (except for application
therefor); or
(ii) a private pension sponsored by an employer or labor
organization.
(D) Health.--The worker is unable to participate in
training due to the health of the worker, except that a
waiver under this subparagraph shall not be construed to
exempt a worker from requirements relating to the
availability for work, active search for work, or refusal to
accept work under Federal or State unemployment compensation
laws.
(E) Enrollment unavailable.--The first available enrollment
date for the training of the worker is within 60 days after
the date of the determination made under this paragraph, or,
if later, there are extenuating circumstances for the delay
in enrollment, as determined pursuant to guidelines issued by
the Secretary.
(F) Training not available.--Training described in
subsection (b)(2) is not reasonably available to the worker
from either governmental agencies or private sources (which
may include area career and technical education schools, as
defined in section 3 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2302), and
employers), no training that is suitable for the worker is
available at a reasonable cost, or no training funds are
available.
(5) Weekly amounts.--The climate change adjustment
allowance payable to an adversely affected worker for a week
of unemployment shall be an amount equal to 70 percent of the
average weekly wage of such worker, but in no case shall such
amount exceed the average weekly wage for all workers in the
State where the adversely affected worker resides.
(6) Maximum duration of benefits.--An eligible worker may
receive a climate change adjustment allowance under this
subsection for a period of not longer than 156 weeks.

[[Page H7592]]

(b) Employment Services and Training.--
(1) Information and employment services.--The Secretary
shall make available, directly or through agreements with the
States under section 427(a) to adversely affected workers
covered by a certification under section 425(a) the following
information and employment services:
(A) Comprehensive and specialized assessment of skill
levels and service needs, including through--
(i) diagnostic testing and use of other assessment tools;
and
(ii) in-depth interviewing and evaluation to identify
employment barriers and appropriate employment goals.
(B) Development of an individual employment plan to
identify employment goals and objectives, and appropriate
training to achieve those goals and objectives.
(C) Information on training available in local and regional
areas, information on individual counseling to determine
which training is suitable training, and information on how
to apply for such training.
(D) Information on training programs and other services
provided by a State pursuant to title I of the Workforce
Investment Act of 1998 and available in local and regional
areas, information on individual counseling to determine
which training is suitable training, and information on how
to apply for such training.
(E) Information on how to apply for financial aid,
including referring workers to educational opportunity
centers described in section 402F of the Higher Education Act
of 1965 (20 U.S.C. 1070a-16), where applicable, and notifying
workers that the workers may request financial aid
administrators at institutions of higher education (as
defined in section 102 of such Act (20 U.S.C. 1002)) to use
the administrators' discretion under section 479A of such Act
(20 U.S.C. 1087tt) to use current year income data, rather
than preceding year income data, for determining the amount
of need of the workers for Federal financial assistance under
title IV of such Act (20 U.S.C. 1070 et seq.).
(F) Short-term prevocational services, including
development of learning skills, communications skills,
interviewing skills, punctuality, personal maintenance
skills, and professional conduct to prepare individuals for
employment or training.
(G) Individual career counseling, including job search and
placement counseling, during the period in which the
individual is receiving a climate change adjustment allowance
or training under this part, and after receiving such
training for purposes of job placement.
(H) Provision of employment statistics information,
including the provision of accurate information relating to
local, regional, and national labor market areas, including--
(i) job vacancy listings in such labor market areas;
(ii) information on jobs skills necessary to obtain jobs
identified in job vacancy listings described in subparagraph
(A);
(iii) information relating to local occupations that are in
demand and earnings potential of such occupations; and
(iv) skills requirements for local occupations described in
subparagraph (C).
(I) Information relating to the availability of supportive
services, including services relating to child care,
transportation, dependent care, housing assistance, and need-
related payments that are necessary to enable an individual
to participate in training.
(2) Training.--
(A) Approval of and payment for training.--If the Secretary
determines, with respect to an adversely affected worker
that--
(i) there is no suitable employment (which may include
technical and professional employment) available for an
adversely affected worker;
(ii) the worker would benefit from appropriate training;
(iii) there is a reasonable expectation of employment
following completion of such training;
(iv) training approved by the Secretary is reasonably
available to the worker from either governmental agencies or
private sources (including area career and technical
education schools, as defined in section 3 of the Carl D.
Perkins Career and Technical Education Act of 2006, and
employers);
(v) the worker is qualified to undertake and complete such
training; and
(vi) such training is suitable for the worker and available
at a reasonable cost,

the Secretary shall approve such training for the worker.
Upon such approval, the worker shall be entitled to have
payment of the costs of such training (subject to the
limitations imposed by this section) paid on the worker's
behalf by the Secretary directly or through a voucher system.
(B) Distribution.--The Secretary shall establish procedures
for the distribution of the funds to States to carry out the
training programs approved under this paragraph, and shall
make an initial distribution of the funds made available as
soon as practicable after the beginning of each fiscal year.
(C) Additional rules regarding approval of and payment for
training.--
(i) For purposes of applying subparagraph (A)(iii), a
reasonable expectation of employment does not require that
employment opportunities for a worker be available, or
offered, immediately upon the completion of training approved
under such subparagraph.
(ii) If the costs of training an adversely affected worker
are paid by the Secretary under subparagraph (A), no other
payment for such costs may be made under any other provision
of Federal law. No payment may be made under subparagraph (A)
of the costs of training an adversely affected worker or an
adversely affected incumbent worker if such costs--

(I) have already been paid under any other provision of
Federal law; or
(II) are reimbursable under any other provision of Federal
law and a portion of such costs have already been paid under
such other provision of Federal law.

The provisions of this clause shall not apply to, or take
into account, any funds provided under any other provision of
Federal law which are used for any purpose other than the
direct payment of the costs incurred in training a particular
adversely affected worker, even if such use has the effect of
indirectly paying or reducing any portion of the costs
involved in training the adversely affected worker.
(D) Training programs.--The training programs that may be
approved under subparagraph (A) include--
(i) employer-based training, including--

(I) on-the-job training if approved by the Secretary under
subsection (c); and
(II) joint labor-management apprenticeship programs;

(ii) any training program provided by a State pursuant to
title I of the Workforce Investment Act of 1998;
(iii) any training program approved by a private industry
council established under section 102 of such Act;
(iv) any programs in career and technical education
described in section 3(5) of the Carl D. Perkins Career and
Technical Education Act of 2006;
(v) any program of remedial education;
(vi) any program of prerequisite education or coursework
required to enroll in training that may be approved under
this paragraph;
(vii) any training program for which all, or any portion,
of the costs of training the worker are paid--

(I) under any Federal or State program other than this
part; or
(II) from any source other than this part;

(viii) any training program or coursework at an accredited
institution of higher education (described in section 102 of
the Higher Education Act of 1965 (20 U.S.C. 1002)), including
a training program or coursework for the purpose of--

(I) obtaining a degree or certification; or
(II) completing a degree or certification that the worker
had previously begun at an accredited institution of higher
education; and

(ix) any other training program approved by the Secretary.
(3) Supplemental assistance.--The Secretary may, as
appropriate, authorize supplemental assistance that is
necessary to defray reasonable transportation and subsistence
expenses for separate maintenance in a case in which training
for a worker is provided in a facility that is not within
commuting distance of the regular place of residence of the
worker.
(c) On-the-Job Training Requirements.--
(1) In general.--The Secretary may approve on-the-job
training for any adversely affected worker if--
(A) the Secretary determines that on-the-job training--
(i) can reasonably be expected to lead to suitable
employment with the employer offering the on-the-job
training;
(ii) is compatible with the skills of the worker;
(iii) includes a curriculum through which the worker will
gain the knowledge or skills to become proficient in the job
for which the worker is being trained; and
(iv) can be measured by benchmarks that indicate that the
worker is gaining such knowledge or skills; and
(B) the State determines that the on-the-job training
program meets the requirements of clauses (iii) and (iv) of
subparagraph (A).
(2) Monthly payments.--The Secretary shall pay the costs of
on-the-job training approved under paragraph (1) in monthly
installments.
(3) Contracts for on-the-job training.--
(A) In general.--The Secretary shall ensure, in entering
into a contract with an employer to provide on-the-job
training to a worker under this subsection, that the skill
requirements of the job for which the worker is being
trained, the academic and occupational skill level of the
worker, and the work experience of the worker are taken into
consideration.
(B) Term of contract.--Training under any such contract
shall be limited to the period of time required for the
worker receiving on-the-job training to become proficient in
the job for which the worker is being trained, but may not
exceed 156 weeks in any case.
(4) Exclusion of certain employers.--The Secretary shall
not enter into a contract for on-the-job training with an
employer that exhibits a pattern of failing to provide
workers receiving on-the-job training from the employer
with--
(A) continued, long-term employment as regular employees;
and
(B) wages, benefits, and working conditions that are
equivalent to the wages, benefits, and working conditions
provided to regular employees who have worked a similar
period of time and are doing the same type of work as workers
receiving on-the-job training from the employer.
(d) Administrative and Employment Services Funding.--

[[Page H7593]]

(1) Administrative funding.--In addition to any funds made
available to a State to carry out this section for a fiscal
year, the State shall receive for the fiscal year a payment
in an amount that is equal to 15 percent of the amount of
such funds and shall--
(A) use not more than \2/3\ of such payment for the
administration of the climate change adjustment assistance
for workers program under this part, including for--
(i) processing waivers of training requirements under
subsection (a)(4);
(ii) collecting, validating, and reporting data required
under this part; and
(iii) administering the Climate Change Adjustment
Assistance Allowance payments; and
(B) use not less than \1/3\ of such payment for information
and employment services under subsection (b)(1).
(2) Employment services funding.--
(A) In general.--In addition to any funds made available to
a State to carry out subsection (b)(2) and the payment under
paragraph (1) for a fiscal year, the Secretary shall provide
to the State for the fiscal year a reasonable payment for the
purpose of providing employment and services under subsection
(b)(1).
(B) Voluntary return of funds.--A State that receives a
payment under subparagraph (A) may decline or otherwise
return such payment to the Secretary.
(e) Job Search Allowances.--The Secretary of Labor may
provide adversely affected workers a one-time job search
allowance in accordance with regulations prescribed by the
Secretary. Any job search allowance provided shall be
available only under the following circumstances and
conditions:
(1) The worker is no longer eligible for the climate change
adjustment allowance under subsection (a) and has completed
the training program required by subsection (a)(1)(E).
(2) The Secretary determines that the worker cannot
reasonably be expected to secure suitable employment in the
commuting area in which the worker resides.
(3) An allowance granted shall provide reimbursement to the
worker of all necessary job search expenses as prescribed by
the Secretary in regulations. Such reimbursement under this
subsection may not exceed $1,500 for any worker.
(f) Relocation Allowance Authorized.--
(1) In general.--Any adversely affected worker covered by a
certification issued under section 425 may file an
application for a relocation allowance with the Secretary,
and the Secretary may grant the relocation allowance, subject
to the terms and conditions of this subsection.
(2) Conditions for granting allowance.--A relocation
allowance may be granted if all of the following terms and
conditions are met:
(A) Assist an adversely affected worker.--The relocation
allowance will assist an adversely affected worker in
relocating within the United States.
(B) Local employment not available.--The Secretary
determines that the worker cannot reasonably be expected to
secure suitable employment in the commuting area in which the
worker resides.
(C) Total separation.--The worker is totally separated from
employment at the time relocation commences.
(D) Suitable employment obtained.--The worker--
(i) has obtained suitable employment affording a reasonable
expectation of long-term duration in the area in which the
worker wishes to relocate; or
(ii) has obtained a bona fide offer of such employment.
(E) Application.--The worker filed an application with the
Secretary at such time and in such manner as the Secretary
shall specify by regulation.
(3) Amount of allowance.--The relocation allowance granted
to a worker under paragraph (1) includes--
(A) all reasonable and necessary expenses (including,
subsistence and transportation expenses at levels not
exceeding amounts prescribed by the Secretary in regulations)
incurred in transporting the worker, the worker's family, and
household effects; and
(B) a lump sum equivalent to 3 times the worker's average
weekly wage, up to a maximum payment of $1,500.
(4) Limitations.--A relocation allowance may not be granted
to a worker unless--
(A) the relocation occurs within 182 days after the filing
of the application for relocation assistance; or
(B) the relocation occurs within 182 days after the
conclusion of training, if the worker entered a training
program approved by the Secretary under subsection (b)(2).
(g) Health Insurance Continuation.--Not later than 1 year
after the date of enactment of this part, the Secretary of
Labor shall prescribe regulations to provide, for the period
in which an adversely affected worker is participating in a
training program described in subsection (b)(2), 80 percent
of the monthly premium of any health insurance coverage that
an adversely affected worker was receiving from such worker's
employer prior to the separation from employment described in
section 425(b), to be paid to any health care insurance plan
designated by the adversely affected worker receiving an
allowance under this section.

SEC. 427. GENERAL PROVISIONS.

(a) Agreements With States.--
(1) In general.--The Secretary is authorized on behalf of
the United States to enter into an agreement with any State,
or with any State agency (referred to in this section as
``cooperating States'' and ``cooperating States agencies''
respectively). Under such an agreement, the cooperating State
agency--
(A) as agent of the United States, shall receive
applications for, and shall provide, payments on the basis
provided in this part;
(B) in accordance with paragraph (6), shall make available
to adversely affected workers covered by a certification
under section 425(d) the employment services described in
section 426(b)(1);
(C) shall make any certifications required under section
425(d);
(D) shall otherwise cooperate with the Secretary and with
other State and Federal agencies in providing payments and
services under this part.

Each agreement under this section shall provide the terms and
conditions upon which the agreement may be amended,
suspended, or terminated.
(2) Form and manner of data.--Each agreement under this
section shall--
(A) provide the Secretary with the authority to collect any
data the Secretary determines necessary to meet the
requirements of this part; and
(B) specify the form and manner in which any such data
requested by the Secretary shall be reported.
(3) Relationship to unemployment insurance.--Each agreement
under this section shall provide that an adversely affected
worker receiving a climate change adjustment allowance under
this part shall not be eligible for unemployment insurance
otherwise payable to such worker under the laws of the State.
(4) Review.--A determination by a cooperating State agency
with respect to entitlement to program benefits under an
agreement is subject to review in the same manner and to the
same extent as determinations under the applicable State law
and only in that manner and to that extent.
(5) Coordination.--Any agreement entered into under this
section shall provide for the coordination of the
administration of the provisions for employment services,
training, and supplemental assistance under section 426 and
under title I of the Workforce Investment Act of 1998 upon
such terms and conditions as are established by the Secretary
in consultation with the States and set forth in such
agreement. Any agency of the State jointly administering such
provisions under such agreement shall be considered to be a
cooperating State agency for purposes of this part.
(6) Responsibilities of cooperating agencies.--Each
cooperating State agency shall, in carrying out paragraph
(1)(B)--
(A) advise each worker who applies for unemployment
insurance of the benefits under this part and the procedures
and deadlines for applying for such benefits;
(B) facilitate the early filing of petitions under section
425(a) for any workers that the agency considers are likely
to be eligible for benefits under this part;
(C) advise each adversely affected worker to apply for
training under section 426(b) before, or at the same time,
the worker applies for climate change adjustment allowances
under section 426(a);
(D) perform outreach to, intake of, and orientation for
adversely affected workers and adversely affected incumbent
workers covered by a certification under section 426(a) with
respect to assistance and benefits available under this part;
(E) make employment services described in section 426(b)(1)
available to adversely affected workers and adversely
affected incumbent workers covered by a certification under
section 425(d) and, if funds provided to carry out this part
are insufficient to make such services available, make
arrangements to make such services available through other
Federal programs; and
(F) provide the benefits and reemployment services under
this part in a manner that is necessary for the proper and
efficient administration of this part, including the use of
state agency personnel employed in accordance with a merit
system of personnel administration standards, including--
(i) making determinations of eligibility for, and payment
of, climate change readjustment allowances and health care
benefit replacement amounts;
(ii) developing recommendations regarding payments as a
bridge to retirement and lump sum payments to pension plans
in accordance with this subsection; and
(iii) the provision of reemployment services to eligible
workers, including referral to training services.
(7) In order to promote the coordination of workforce
investment activities in each State with activities carried
out under this part, any agreement entered into under this
section shall provide that the State shall submit to the
Secretary, in such form as the Secretary may require, the
description and information described in paragraphs (8) and
(14) of section 112(b) of the Workforce Investment Act of
1998 (29 U.S.C. 2822(b)) and a description of the State's
rapid response activities under section 221(a)(2)(A).
(8) Control measures.--
(A) In general.--The Secretary shall require each
cooperating State and cooperating State agency to implement
effective control measures and to effectively oversee the
operation and administration of the climate change adjustment
assistance program

[[Page H7594]]

under this part, including by means of monitoring the
operation of control measures to improve the accuracy and
timeliness of the data being collected and reported.
(B) Definition.--For purposes of subparagraph (A), the term
``control measures'' means measures that--
(i) are internal to a system used by a State to collect
data; and
(ii) are designed to ensure the accuracy and verifiability
of such data.
(9) Data reporting.--
(A) In general.--Any agreement entered into under this
section shall require the cooperating State or cooperating
State agency to report to the Secretary on a quarterly basis
comprehensive performance accountability data, to consist
of--
(i) the core indicators of performance described in
subparagraph (B)(i);
(ii) the additional indicators of performance described in
subparagraph (B)(ii), if any; and
(iii) a description of efforts made to improve outcomes for
workers under the climate change adjustment assistance
program.
(B) Core indicators described.--
(i) In general.--The core indicators of performance
described in this subparagraph are--

(I) the percentage of workers receiving benefits under this
part who are employed during the second calendar quarter
following the calendar quarter in which the workers cease
receiving such benefits;
(II) the percentage of such workers who are employed in
each of the third and fourth calendar quarters following the
calendar quarter in which the workers cease receiving such
benefits; and
(III) the earnings of such workers in each of the third and
fourth calendar quarters following the calendar quarter in
which the workers cease receiving such benefits.

(ii) Additional indicators.--The Secretary and a
cooperating State or cooperating State agency may agree upon
additional indicators of performance for the climate change
adjustment assistance program under this part, as
appropriate.
(C) Standards with respect to reliability of data.--In
preparing the quarterly report required by subparagraph (A),
each cooperating State or cooperating State agency shall
establish procedures that are consistent with guidelines to
be issued by the Secretary to ensure that the data reported
are valid and reliable.
(10) Verification of eligibility for program benefits.--
(A) In general.--An agreement under this section shall
provide that the State shall periodically redetermine that a
worker receiving benefits under this part who is not a
citizen or national of the United States remains in a
satisfactory immigration status. Once satisfactory
immigration status has been initially verified through the
immigration status verification system described in section
1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)) for
purposes of establishing a worker's eligibility for
unemployment compensation, the State shall reverify the
worker's immigration status if the documentation provided
during initial verification will expire during the period in
which that worker is potentially eligible to receive benefits
under this part. The State shall conduct such redetermination
in a timely manner, utilizing the immigration status
verification system described in section 1137(d) of the
Social Security Act (42 U.S.C. 1320b-7(d)).
(B) Procedures.--The Secretary shall establish procedures
to ensure the uniform application by the States of the
requirements of this paragraph.
(b) Administration Absent State Agreement.--
(1) In any State where there is no agreement in force
between a State or its agency under subsection (a), the
Secretary shall promulgate regulations for the performance of
all necessary functions under section 426, including
provision for a fair hearing for any worker whose application
for payments is denied.
(2) A final determination under paragraph (1) with respect
to entitlement to program benefits under section 426 is
subject to review by the courts in the same manner and to the
same extent as is provided by section 205(g) of the Social
Security Act (42 U.S.C. 405(g)).
(c) Prohibition on Contracting With Private Entities.--
Neither the Secretary nor a State may contract with any
private for-profit or nonprofit entity for the administration
of the climate change adjustment assistance program under
this part.
(d) Payment to the States.--
(1) In general.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
cooperating State the sums necessary to enable such State as
agent of the United States to make payments provided for by
this part.
(2) Restriction.--All money paid a State under this
subsection shall be used solely for the purposes for which it
is paid; and money so paid which is not used for such
purposes shall be returned, at the time specified in the
agreement under this section, to the Secretary of the
Treasury.
(3) Bonds.--Any agreement under this section may require
any officer or employee of the State certifying payments or
disbursing funds under the agreement or otherwise
participating in the performance of the agreement, to give a
surety bond to the United States in such amount as the
Secretary may deem necessary, and may provide for the payment
of the cost of such bond from funds for carrying out the
purposes of this part.
(e) Labor Standards.--
(1) Prohibition on displacement.--An individual in an
apprenticeship program or on-the-job training program under
this part shall not displace (including a partial
displacement, such as a reduction in the hours of non-
overtime work, wages, or employment benefits) any employed
employee.
(2) Prohibition on impairment of contracts.--An
apprenticeship program or on-the-job raining program under
this Act shall not impair an existing contract for services
or collective bargaining agreement, and no such activity that
would be inconsistent with the terms of a collective
bargaining agreement shall be undertaken without the written
concurrence of the labor organization and employer concerned.
(3) Additional standards.--The Secretary, or a State acting
under an agreement described in subsection (a) may pay the
costs of on-the-job training, notwithstanding any other
provision of this section, only if--
(A) in the case of training which would be inconsistent
with the terms of a collective bargaining agreement, the
written concurrence of the labor organization concerned has
been obtained;
(B) the job for which such adversely affected worker is
being trained is not being created in a promotional line that
will infringe in any way upon the promotional opportunities
of currently employed individuals;
(C) such training is not for the same occupation from which
the worker was separated and with respect to which such
worker's group was certified pursuant to section 425(d);
(D) the employer is provided reimbursement of not more than
50 percent of the wage rate of the participant, for the cost
of providing the training and additional supervision related
to the training; and
(E) the employer has not received payment under with
respect to any other on-the-job training provided by such
employer which failed to meet the requirements of
subparagraphs (A) through (D).
(f) Definitions.--As used in this part the following
definitions apply:
(1) The term ``adversely affected employment'' means
employment at an employment site, if workers at such site are
eligible to apply for adjustment assistance under this part.
(2) The term ``adversely affected worker'' means an
individual who has been totally or partially separated from
employment and is eligible to apply for adjustment assistance
under this part.
(3) The term ``average weekly wage'' means \1/13\ of the
total wages paid to an individual in the quarter in which the
individual's total wages were highest among the first 4 of
the last 5 completed calendar quarters immediately before the
quarter in which occurs the week with respect to which the
computation is made. Such week shall be the week in which
total separation occurred, or, in cases where partial
separation is claimed, an appropriate week, as defined in
regulations prescribed by the Secretary.
(4) The term ``average weekly hours'' means the average
hours worked by the individual (excluding overtime) in the
employment from which he has been or claims to have been
separated in the 52 weeks (excluding weeks during which the
individual was sick or on vacation) preceding the week
specified in the last sentence of paragraph (4).
(5) The term ``benefit period'' means, with respect to an
individual--
(A) the benefit year and any ensuing period, as determined
under applicable State law, during which the individual is
eligible for regular compensation, additional compensation,
or extended compensation; or
(B) the equivalent to such a benefit year or ensuing period
provided for under the applicable Federal unemployment
insurance law.
(6) The term ``consumer goods manufacturing'' means the
electrical equipment, appliance, and component manufacturing
industry and transportation equipment manufacturing.
(7) The term ``employment site'' means a single facility or
site of employment.
(8) The term ``energy-intensive manufacturing industries''
means all industrial sectors, entities, or groups of entities
that meet the energy or greenhouse gas intensity criteria in
section 765(b)(2)(A)(i) of the Clean Air Act based on the
most recent data available.
(9) The term ``energy producing and transforming
industries'' means the coal mining industry, oil and gas
extraction, electricity power generation, transmission and
distribution, and natural gas distribution.
(10) The term ``industries dependent on energy industries''
means rail transportation and pipeline transportation.
(11) The term ``on-the-job training'' means training
provided by an employer to an individual who is employed by
the employer.
(12) The terms ``partial separation'' and ``partially
separated'' refer, with respect to an individual who has not
been totally separated, that such individual has had--
(A) his or her hours of work reduced to 80 percent or less
of his average weekly hours in adversely affected employment;
and
(B) his or her wages reduced to 80 percent or less of his
average weekly wage in such adversely affected employment.
(13) The term ``public agency'' means a department or
agency of a State or political

[[Page H7595]]

subdivision of a State or of the Federal government.
(14) The term ``Secretary'' means the Secretary of Labor.
(15) The term ``service workers'' means workers supplying
support or auxiliary services to an employment site.
(16) The term ``State agency'' means the agency of the
State which administers the State law.
(17) The term ``State law'' means the unemployment
insurance law of the State approved by the Secretary of Labor
under section 3304 of the Internal Revenue Code of 1954.
(18) The terms ``total separation'' and ``totally
separated'' refer to the layoff or severance of an individual
from employment with an employer in which adversely affected
employment exists.
(19) The term ``unemployment insurance'' means the
unemployment compensation payable to an individual under any
State law or Federal unemployment compensation law, including
chapter 85 of title 5, United States Code, and the Railroad
Unemployment Insurance Act. The terms ``regular
compensation'', ``additional compensation'', and ``extended
compensation'' have the same respective meanings that are
given them in section 205(2), (3), and (4) of the Federal-
State Extended Unemployment Compensation Act of 1970 (26
U.S.C. 3304 note.)
(20) The term ``week'' means a week as defined in the
applicable State law.
(21) The term ``week of unemployment'' means a week of
total, part-total, or partial unemployment as determined
under the applicable State law or Federal unemployment
insurance law.
(g) Special Rule With Respect to Military Service.--
(1) In general.--Notwithstanding any other provision of
this part, the Secretary may waive any requirement of this
part that the Secretary determines is necessary to ensure
that an adversely affected worker who is a member of a
reserve component of the Armed Forces and serves a period of
duty described in paragraph (2) is eligible to receive a
climate change adjustment allowance, training, and other
benefits under this part in the same manner and to the same
extent as if the worker had not served the period of duty.
(2) Period of duty described.--An adversely affected worker
serves a period of duty described in this paragraph if,
before completing training under this part, the worker--
(A) serves on active duty for a period of more than 30 days
under a call or order to active duty of more than 30 days; or
(B) in the case of a member of the Army National Guard of
the United States or Air National Guard of the United States,
performs full-time National Guard duty under section 502(f)
of title 32, United States Code, for 30 consecutive days or
more when authorized by the President or the Secretary of
Defense for the purpose of responding to a national emergency
declared by the President and supported by Federal funds.
(h) Fraud and Recovery of Overpayments.--
(1) Recovery of payments to which an individual was not
entitled.--If the Secretary or a court of competent
jurisdiction determines that any person has received any
payment under this part to which the individual was not
entitled, such individual shall be liable to repay such
amount to the Secretary, as the case may be, except that the
Secretary shall waive such repayment if such agency or the
Secretary determines that--
(A) the payment was made without fault on the part of such
individual; and
(B) requiring such repayment would cause a financial
hardship for the individual (or the individual's household,
if applicable) when taking into consideration the income and
resources reasonably available to the individual (or
household) and other ordinary living expenses of the
individual (or household).
(2) Means of recovery.--Unless an overpayment is otherwise
recovered, or waived under paragraph (1), the Secretary shall
recover the overpayment by deductions from any sums payable
to such person under this part, under any Federal
unemployment compensation law or other Federal law
administered by the Secretary which provides for the payment
of assistance or an allowance with respect to unemployment.
Any amount recovered under this section shall be returned to
the Treasury of the United States.
(i) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the provisions
of this part.
(j) Study on Older Workers.--The Secretary shall conduct a
study examine the circumstances of older adversely affected
workers and the ability of such workers to access their
retirement benefits. The Secretary shall transmit a report to
Congress not later than 2 years after the date of enactment
of this part on the findings of the study and the Secretary's
recommendations on how to ensure that adversely affected
workers within 2 years of retirement are able to access their
retirement benefits.
[(k) Spending Limit.--For each fiscal year, the total
amount of funds disbursed for the purposes described in
section 426 shall not exceed the amount deposited in that
fiscal year into the Climate Change Worker Assistance Fund
established under section [782(j)] of the Clean Air Act. The
annual spending limit for any succeeding year shall be
increased by the difference, if any, between the amount of
the prior year's disbursements and the spending limitation
for that year. The Secretary shall promulgate rules to ensure
that this spending limit is not exceeded. Such rules shall
provide that workers who receive any of the benefits
described in section 426 receive full benefits, and shall
include the establishment of a waiting list for workers in
the event that the requests for assistance exceed the
spending limit.]

Subtitle C--Consumer Assistance

SEC. 431. ENERGY REFUND PROGRAM.

The Social Security Act (42 U.S.C. 201 et seq.) is amended
by adding at the end the following:

``TITLE XXII--ENERGY REFUND PROGRAM

``SEC. 2201. ENERGY REFUND PROGRAM.

``(a) In General.--The Secretary shall formulate and
administer the program provided for in this section, which
shall be known as the `Energy Refund Program', and under
which eligible low-income households are provided cash
payments to reimburse the households for the estimated loss
in their purchasing power resulting from the American Clean
Energy and Security Act of 2009.
``(b) Entitlement of Eligible Households to Cash
Payments.--At the request of the State agency of a State,
each eligible low-income household in the State shall be
entitled to receive monthly cash payments under this section
in an amount equal to the monthly energy refund amount
determined under subsection (d).
``(c) Eligibility.--
``(1) Eligible households.--A household shall be considered
to be an eligible low-income household for purposes of this
section if--
``(A) the gross income of the household does not exceed the
greater of--
``(i) 150 percent of the poverty line; or
``(ii) the greatest amount of household gross income in
respect of which a benefit could be payable under subsection
(d)(2)(B);
``(B) the State agency of the State in which the household
is located determines that the household is participating
in--
``(i) the Supplemental Nutrition Assistance Program
authorized by the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.);
``(ii) the Food Distribution Program on Indian Reservations
authorized by section 4(b) of such Act (7 U.S.C. 2013(b)); or
``(iii) the program for nutrition assistance in Puerto Rico
or American Samoa under section 19 of such Act (7 U.S.C.
2028);
``(C) the household consists of a single individual or a
married couple, and--
``(i) receives the subsidy described in section 1860D-14 of
this Act (42 U.S.C. 1395w-114); or
``(ii)(I) participates in the program under title XVIII of
this Act; and
``(II) meets the income requirements described in section
1860D-14(a)(1) or (a)(2) of this Act (42 U.S.C. 1395w-
114(a)(1) or (a)(2)); or
``(D) the household consists of a single individual or a
married couple, and receives benefits under the supplemental
security income program under title XVI of this Act (42
U.S.C. 1381-1383f).
``(2) Streamlined participation for certain
beneficiaries.--The Secretary shall--
``(A) periodically estimate the number of eligible
beneficiaries and households, and the number of participating
beneficiaries and households, for the Energy Refund Program;
and
``(B) develop procedures, in consultation with the
Commissioner of Social Security, the Railroad Retirement
Board, the Secretary of Veterans Affairs, and the State
agencies, to ensure that low-income beneficiaries of the
benefit programs administered by such entities receive the
energy refund for which the beneficiaries are eligible under
the Energy Refund Program.
``(3) Limitation.--Notwithstanding any other provision of
law, the Secretary shall provide refunds to United States
citizens, United States nationals, and individuals lawfully
residing in the United States who qualify for a refund under
paragraph (1)(A), and shall establish procedures to ensure
that other individuals do not receive refunds.
``(4) National standards.--The Secretary shall consult with
the Secretary of Agriculture and establish uniform national
standards of eligibility ensuring that States may seamlessly
co-administer the energy refund program with the Supplemental
Nutrition Assistance Program in accordance with the
provisions of this section. No State agency shall impose any
other standard or requirement as a condition of eligibility
or refund receipt under the program. Assistance in the Energy
Refund Program shall be furnished promptly to all eligible
households who make application for such participation or are
already enrolled in any program referred to in paragraph (1).
``(d) Monthly Energy Refund Amount.--
``(1) Estimated annual total loss in purchasing power.--Not
later than August 31 of each fiscal year, the Energy
Information Administration shall estimate the annual total
loss in purchasing power that will result from American Clean
Energy and Security Act of 2009 in the next fiscal year for
households of each size with gross income equal to 150
percent of the poverty line, based on the projected total
market value of all compliance costs (including, but not
limited to, the emissions allowances used to demonstrate
compliance with title VII of the Clean Air Act in the next
fiscal year, and excluding costs that are not projected to be
incurred

[[Page H7596]]

by households as a result of allowances freely allocated and
intended for residential consumer assistance pursuant to
sections 783 through 785 of the Clean Air Act), in a way
generally recognized as suitable by experts.
``(2) Monthly energy refund.--The monthly energy refund
amount for an eligible household under this section shall
be--
``(A) if the gross income of the household does not exceed
150 percent of the poverty line applicable to the household--
``(i) if the household has 1, 2, 3, or 4 members, \1/12\ of
the amount estimated under paragraph (1) for a household of
the same size, rounded to the nearest whole dollar amount; or
``(ii) if the household has 5 or more members, \1/12\ of
the arithmetic mean value of the amounts estimated under
paragraph (1) for households with 5 or more members, rounded
to the nearest whole dollar amount; or
``(B) if the gross income of the household exceeds 150
percent of the poverty line applicable to the household, \1/
12\ of the amount (if any) by which--
``(i) the amount estimated under paragraph (1) for a
household of the same size; exceeds
``(ii) 20 percent of the amount by which the gross income
of the household exceeds 150 percent of the poverty line.
``(e) Delivery Mechanism.--
``(1) Subject to standards and an implementation schedule
set by the Secretary, the energy refund shall be provided in
monthly installments via--
``(A) direct deposit into the eligible household's
designated bank account;
``(B) the State's electronic benefit transfer system; or
``(C) another Federal or State mechanism, if such a
mechanism is approved by the Secretary.
``(2) Such standards shall include--
``(A)(i) defining the required level of recipient
protection regarding privacy;
``(ii) guidance on how recipients are offered choices, when
relevant, about the delivery mechanism;
``(iii) guidance on ease of use and access to the refund,
including the prohibition of fees charged to recipients for
withdrawals or other services; and
``(iv) cost-effective protections against improper
accessing of the energy refund;
``(B) operating standards that provide for interoperability
between States and law enforcement monitoring; and
``(C) other standards, as determined by the Secretary or
the Secretary's designee.
``(f) Administration.--
``(1) In general.--The State agency of each participating
State shall assume responsibility for the certification of
applicant households and for the issuance of refunds and the
control and accountability thereof.
``(2) Procedures.--Under standards established by the
Secretary, the State agency shall establish procedures
governing the administration of the Energy Refund Program
that the State agency determines best serve households in the
State, including households with special needs, such as
households with elderly or disabled members, households in
rural areas, homeless individuals, and households residing on
reservations as defined in the Indian Child Welfare Act of
1978 and the Indian Financing Act of 1974. In carrying out
this paragraph, a State agency--
``(A) shall provide timely, accurate, and fair service to
applicants for, and participants in, the Energy Refund
Program;
``(B) shall permit an applicant household to apply to
participate in the program at the time that the household
first contacts the State agency, and shall consider an
application that contains the name, address, and signature of
the applicant to be sufficient to constitute an application
for participation;
``(C) shall screen any applicant household for the
Supplemental Nutrition Assistance Program, the State's
medical assistance program under section XIX of this Act,
State Childrens Health Insurance Program under section XXI of
this Act, and a State program that provides basic assistance
under a State program funded under title IV of this Act or
with qualified State expenditures as defined in section
409(a)(7) of this Act for eligibility for the Energy Refund
Program and, if eligible, shall enroll such applicant
household in the Energy Refund Program;
``(D) shall complete certification of and provide a refund
to any eligible household not later than 30 days following
its filing of an application;
``(E) shall use appropriate bilingual personnel and
materials in the administration of the program in those
portions of the State in which a substantial number of
members of low-income households speak a language other than
English; and
``(F) shall utilize State agency personnel who are employed
in accordance with the current standards for a Merit System
of Personnel Administration or any standards later prescribed
by the Office of Personnel Management pursuant to section 208
of the Intergovernmental Personnel Act of 1970 (42 U.S.C.
4728) modifying or superseding such standards relating to the
establishment and maintenance of personnel standards on a
merit basis to make all tentative and final determinations of
eligibility and ineligibility.
``(3) Regulations.--
``(A) Except as provided in subparagraph (B), the Secretary
shall issue such regulations consistent with this section as
the Secretary deems necessary or appropriate for the
effective and efficient administration of the Energy Refund
Program, and shall promulgate all such regulations in
accordance with the procedures set forth in section 553 of
title 5, United States Code.
``(B) Without regard to section 553 of title 5 of such
Code, the Administrator may by rule promulgate as final, to
be effective until no later than two years after the date of
the enactment of the American Clean Energy and Security Act
of 2009, any procedures that are substantially the same as
the procedures governing the Supplemental Nutrition
Assistance Program in section 273.2, 273.12, or 273.15 of
title 7, Code of Federal Regulations.
``(C) Notwithstanding subsection (i)(4), the Secretary may
promulgate regulations allowing for streamlined eligibility
determinations for some or all households which include
individuals receiving assistance under a State plan approved
under title XIX or XXI of this Act. The regulations may
institute procedures whereby the income and family size
information used for determining eligibility under such title
XIX or XXI may be the basis for determining eligibility for
the Energy Refund Program.
``(D) Notwithstanding any other provision of this section,
the Secretary may authorize States to provide benefits under
this section on a quarterly basis if the Secretary determines
that the amount of the benefits that would be provided on a
monthly basis to households is insufficient to be efficiently
paid on a monthly basis in light of the administrative
expenses of the Energy Refund Program.
``(g) Treatment.--The value of the refund provided under
this section shall not be considered income or resources for
any purpose under any Federal, State, or local laws,
including, but not limited to, laws relating to an income
tax, or public assistance programs (including, but not
limited to, health care, cash aid, child care, nutrition
programs, and housing assistance) and no participating State
or political subdivision thereof shall decrease any
assistance otherwise provided an individual or individuals
because of the receipt of a refund under this section.
``(h) Program Integrity.--For purposes of ensuring program
integrity and complying with the requirements of the Improper
Payment Information Act of 2002, the Secretary shall, to the
maximum extent possible, rely on and coordinate with the
quality control sample and review procedures of paragraphs
(2), (3), (4), and (5) of section 16(c) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2025(c)).
``(i) Definitions.--
``(1) Secretary.--The term `Secretary' means the Secretary
of Health and Human Services or the head of another agency
designated by the Secretary of Health and Human Services.
``(2) Electronic benefit transfer system.--The term
`electronic benefit transfer system' means a system by which
household benefits or refunds defined under subsection (e)
are issued from and stored in a central databank via
electronic benefit transfer cards.
``(3) Gross income.--The term `gross income' means the
gross income of a household that is determined in accordance
with standards and procedures established under section 5 of
the Food and Nutrition Act of 2008 (7 U.S.C. 2014) and its
implementing regulations.
``(4) Household.--
``(A) The term `household' means--
``(i) in subparagraphs (A) and (B) of subsection (c)(1) of
this section, except as provided in subparagraph (C) of this
paragraph, an individual or a group of individuals who are a
household under section 3(n) of the Food and Nutrition Act of
2008 (7 U.S.C. 2012(n));
``(ii) in subsection (c)(1)(C) of this section, a single
individual or married couple that receives benefits under
section 1860D-14 of this Act (42 U.S.C. 1395w-114); and
``(iii) in subsection (c)(1)(D) of this section, a single
individual or married couple that receives benefits under the
supplemental security income program under title XVI of this
Act (42 U.S.C. 1381-1383f).
``(B) The Secretary shall establish rules for providing the
energy refund in an equitable and administratively simple
manner to households where the group of individuals who live
together includes members not all of whom are described in a
single clause of subparagraph (A), or includes additional
members not described in any such clause.
``(C) The Secretary shall establish rules regarding the
eligibility and delivery of the energy refund to groups of
individuals described in section 3(n)(4) or (5) of the Food
and Nutrition Act of 2008 (7 U.S.C. 2012(n)).
``(5) Poverty line.--The term `poverty line' has the
meaning given the term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)), including any
revision required by that section.
``(6) State.--The term `State' means the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico,
American Samoa, the United States Virgin Islands, Guam, and
the Commonwealth of the Northern Mariana Islands.
``(7) State agency.--The term `State agency' means an
agency of State government, including the local offices
thereof, that has responsibility for administration of the 1
or more federally aided public assistance programs within the
State, and in those States where such assistance programs are
operated on a decentralized basis, the term shall include the
counterpart local agencies administering such programs.

[[Page H7597]]

``(8) Other terms.--Other terms not defined in this title
shall have the same meaning applied in the Supplemental
Nutrition Assistance Program authorized by the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless the
Secretary finds for good cause that application of a
particular definition would be detrimental to the purposes of
the Energy Refund Program.''.

SEC. 432. MODIFICATION OF EARNED INCOME CREDIT AMOUNT FOR
INDIVIDUALS WITH NO QUALIFYING CHILDREN.

(a) In General.--Subsection (b) of section 32 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(4) Special rule for individuals with no qualifying
children who are affected by the american clean energy and
security act of 2009.--
``(A) In general.--In the case of any household which the
Secretary determines experienced a reduction in purchasing
power as a result of the provisions of, or amendments made
by, the American Clean Energy and Security Act of 2009
(determined without regard to this paragraph and section 2201
of the Social Security Act)--
``(i) Increase in credit percentage and phaseout
percentage.--The table contained in paragraph (1)(A) shall be
applied by substituting `15.3' for `7.65'.
``(ii) Increase in beginning phaseout amount.--The table
contained in paragraph (2)(A) shall be applied by
substituting `$11,640' for `$5,280'.
``(B) Inflation adjustment.--
``(i) In general.--In the case of any taxable year
beginning after 2012, the $11,640 amount in subparagraph
(A)(ii) shall be increased by an amount equal to--

``(I) such dollar amount, multiplied by
``(II) the cost of living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins determined by substituting `calendar year 2011'
for `calendar year 1992' in subparagraph (B) thereof.

``(ii) Rounding.--Subparagraph (A) of subsection (j)(2)
shall apply after taking into account any increase under
clause (i) in the same manner as if such increase were under
paragraph (1) of subsection (j).
``(iii) Coordination with other inflation adjustments.--
Paragraph (1) of subsection (j) shall not apply to the dollar
amount substituted under subparagraph (A)(ii).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2011.

SEC. 433. PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST
FUNDS.

(a) OASDI Trust Funds.--Section 201 of the Social Security
Act (42 U.S.C. 401) is amended by adding at the end the
following new subsection:
``(o) The Secretary of the Treasury shall transfer from
time to time to the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance Trust Fund,
from amounts in the general fund of the Treasury that are not
otherwise appropriated, such sums as the Chief Actuary of the
Social Security Administration calculates as necessary (and
so certifies to such Secretary) for any fiscal year, on
account of changes in benefit costs and changes in tax
revenue attributable to the provisions of the American Clean
Energy and Security Act of 2009 and the amendments made
thereby, in order to place each of such Trust Funds in the
same position at the end of such fiscal year as the position
in which such Trust Fund would have been if such changes had
not occurred.''.
(b) HI Trust Fund.--Section 1817 of such Act (42 U.S.C.
1395i) is amended by adding at the end the following new
subsection:
``(l) Transfers to Account for Changes in Benefit Costs and
Changes in Tax Revenue Attributable to the American Clean
Energy and Security Act of 2009.--The Secretary of the
Treasury shall transfer from time to time to the Trust Fund,
from amounts in the general fund of the Treasury that are not
otherwise appropriated, such sums as the Chief Actuary of the
Centers for Medicare & Medicaid Services calculates as
necessary (and so certifies to such Secretary) for any fiscal
year, on account of changes in benefit costs and changes in
tax revenue attributable to the provisions of the American
Clean Energy and Security Act of 2009 and the amendments made
thereby, in order to place the Trust Fund in the same
position at the end of such fiscal year as the position in
which it would have been if such changes had not occurred.''.

Subtitle D--Exporting Clean Technology

SEC. 441. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds the following:
(1) Protecting Americans from the impacts of climate change
requires global reductions in greenhouse gas emissions.
(2) Although developing countries are historically least
responsible for the cumulative greenhouse gas emissions that
are causing climate change and continue to have very low per
capita greenhouse gas emissions, their overall greenhouse gas
emissions are increasing as they seek to grow their economies
and reduce energy poverty for their populations.
(3) Many developing countries lack the financial and
technical resources to adopt clean energy technologies and
absent assistance their greenhouse gas emissions will
continue to increase.
(4) Investments in clean energy technology cooperation can
substantially reduce global greenhouse gas emissions while
providing developing countries with incentives to adopt
policies that will address competitiveness concerns related
to regulation of United States greenhouse gas emissions.
(5) Investments in clean technology in developing countries
will increase demand for clean energy products, open up new
markets for United States companies, spur innovation, and
lower costs.
(6) Under Article 4 of the United Nations Framework
Convention on Climate Change, developed country parties,
including the United States, committed to ``take all
practicable steps to promote, facilitate, and finance, as
appropriate, the transfer of, or access to, environmentally
sound technologies and know-how to other parties,
particularly developing country parties, to enable them to
implement the provisions of the Convention''.
(7) Under the Bali Action Plan, developed country parties
to the United Nations Framework Convention on Climate Change,
including the United States, committed to ``enhanced action
on the provision of financial resources and investment to
support action on mitigation and adaptation and technology
cooperation,'' including, inter alia, consideration of
``improved access to adequate, predictable, and sustainable
financial resources and financial and technical support, and
the provision of new and additional resources, including
official and concessional funding for developing country
parties''.
(8) Intellectual property rights are a key driver of
investment and research and development in, and the global
deployment of, clean technologies.
(9) Innovative clean technologies, including U.S. and
multilateral financing mechanisms for their deployment, are
critical to mitigating global warming pollution, preventing
catastrophic changes to the climate, and developing robust
economies around the world.
(10) Any weakening of intellectual property rights
protection poses a substantial competitive risk to U.S.
companies and the creation of high-quality U.S. jobs,
inhibiting the creation of new ``green'' employment and the
transformational shift to the ``Green Economy'' of the 21st
Century.
(11) Any U.S. funding directed toward assisting developing
countries with regard to exporting clean technology should
promote the robust compliance with and enforcement of
existing international legal requirements for the protection
of intellectual property rights as formulated in the
Agreement on Trade-Related Aspects of Intellectual Property
Rights, referred to in section 101(d)(15) of the Uruguay
Round Agreements Act (19 U.S.C.3511(d)(15) and in applicable
intellectual property provisions of bilateral trade
agreements.
(b) Purposes.--The purposes of this subtitle are--
(1) to provide United States assistance and leverage
private resources to encourage widespread implementation, in
developing countries, of activities that reduce, sequester,
or avoid greenhouse gas emissions; and
(2) to provide such assistance in a manner that--
(A) encourages such countries to adopt policies and
measures, including sector-based and cross-sector policies
and measures, that substantially reduce, sequester, or avoid
greenhouse gas emissions;
(B) promotes the successful negotiation of a global
agreement to reduce greenhouse gas emissions under the United
Nations Framework Convention on Climate Change; and
(C) promotes robust compliance with and enforcement of
existing international legal requirements for the protection
of intellectual property rights, as formulated in the
Agreement on Trade-Related Aspects of Intellectual Property
Rights referred to in section 101(d)(15) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(15)) and in applicable
intellectual property provisions of bilateral trade
agreements.

SEC. 442. DEFINITIONS.

In this subtitle:
(1) Allowance.--The term ``allowance'' means an emission
allowance established under section 721 of the Clean Air Act.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committees on Energy and Commerce, Foreign Affairs,
and Financial Services of the House of Representatives; and
(B) the Committees on Environment and Public Works, Energy
and Natural Resources, and Foreign Relations of the Senate.
(3) Convention.--The term ``Convention'' means the United
Nations Framework Convention on Climate Change, done at New
York on May 9, 1992, and entered into force on March 21,
1994.
(4) Developing country.--The term ``developing country''
means a country eligible to receive official development
assistance according to the income guidelines of the
Development Assistance Committee of the Organization for
Economic Cooperation and Development.
(5) Eligible country.--The term ``eligible country'' means
a developing country that is determined by the interagency
group under section 444 to be eligible to receive assistance
under this subtitle.
(6) Interagency group.--The term ``interagency group''
means the group established by the President under section
443 to administer the program established under this
subtitle.

[[Page H7598]]

(7) Least developed country.--The term ``least developed
country'' means a foreign country the United Nations has
identified as among the least developed of developing
countries.
(8) Qualifying activity.--The term ``qualifying activity''
means an activity that meets the criteria in section 445.
(9) Qualifying entity.--The term ``qualifying entity''
means a national, regional, or local government in, or a
nongovernmental organization or private entity located or
operating in, an eligible country.

SEC. 443. GOVERNANCE.

(a) Oversight.--The Secretary of State, or such other
Federal agency head as the President may designate, in
consultation with the interagency group established under
subsection (b), shall oversee distributions of allowances
allocated under section 782(o) of the Clean Air Act (as added
by section 321 of this Act) for distribution pursuant to this
subtitle.
(b) Interagency Group.--The President shall establish an
interagency group to administer the program established under
this subtitle. The Members of the interagency group shall
include--
(1) the Secretary of State;
(2) the Administrator of the Environmental Protection
Agency;
(3) the Secretary of Energy;
(4) the Secretary of the Treasury;
(5) the Secretary of Commerce;
(6) the Administrator of the United States Agency for
International Development; and
(7) any other head of a Federal agency or executive branch
appointee that the President may designate.
(c) Chairperson.--The Secretary of State shall serve as the
chairperson of the interagency group.
(d) Supplement Not Supplant.--Allowances distributed
pursuant to this subtitle shall be used to supplement, and
not to supplant, any other Federal, State, or local resources
available to carry out activities that are qualifying
activities under this subtitle.

SEC. 444. DETERMINATION OF ELIGIBLE COUNTRIES.

(a) In General.--The interagency group shall determine a
country to be an eligible country for the purposes of this
subtitle if a country meets the following criteria:
(1) The country is a developing country that--
(A) has entered into an international agreement to which
the United States is a party, under which such country agrees
to take actions to produce measurable, reportable, and
verifiable greenhouse gas emissions mitigation; or
(B) is determined by the interagency group to have in force
national policies and measures that are capable of producing
measurable, reportable, and verifiable greenhouse gas
emissions mitigation.
(2) The country has developed a nationally appropriate
mitigation strategy that seeks to achieve substantial
reductions, sequestration, or avoidance of greenhouse gas
emissions, relative to business-as-usual levels.
(3) Subject to subsection (b)(1), such other criteria as
the President determines will serve the purposes of this
subtitle or other United States national security, foreign
policy, environmental, or economic objectives including
robust compliance with and enforcement of existing
international legal requirements for the protection of
intellectual property rights for clean technology, as
formulated in the Agreement on Trade-Related Aspects of
Intellectual Property Rights, referred to in section
101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(15)) and in applicable intellectual property
provisions of bilateral trade agreements.
(b) Exceptions.--
(1) Subsection (a)(3) applies only to bilateral assistance
under section 446(c)(4).
(2) The eligibility criteria in this section do not apply
in the case of least developed countries receiving assistance
under section 445(7) for the purpose of building capacity to
meet such eligibility criteria.

SEC. 445. QUALIFYING ACTIVITIES.

Assistance under this subtitle may be provided only to
qualifying entities for clean technology activities
(including building relevant technical and institutional
capacity) that contribute to substantial, measurable,
reportable, and verifiable reductions, sequestration, or
avoidance of greenhouse gas emissions including--
(1) deployment of technologies to capture and sequester
carbon dioxide emissions from electric generating units or
large industrial sources (except that assistance under this
subtitle for such deployment shall be limited to the cost of
retrofitting existing facilities with such technologies or
the incremental cost of purchasing and installing such
technologies at new facilities);
(2) deployment of renewable electricity generation from
wind, solar, sustainably produced biomass, geothermal,
marine, or hydrokinetic sources;
(3) substantial increases in the efficiency of electricity
transmission, distribution, and consumption;
(4) deployment of low- or zero emissions technologies that
are facing financial or other barriers to their widespread
deployment which could be addressed through support under
this subtitle in order to reduce, sequester, or avoid
emission;
(5) reduction in transportation sector emissions through
increased transportation system and vehicle efficiency or use
of transportation fuels that have lifecycle greenhouse gas
emissions that are substantially lower than those
attributable to fossil fuel-based alternatives;
(6) reduction in black carbon emissions; or
(7) capacity building activities, including--
(A) developing and implementing methodologies and programs
for measuring and quantifying greenhouse gas emissions and
verifying emissions mitigation;
(B) assessing, developing, and implementing technology and
policy options for greenhouse gas emissions mitigation and
avoidance of future emissions, including sector and cross-
sector mitigation strategies; and
(C) providing other forms of technical assistance to
facilitate the qualification for, and receipt of, assistance
under this Act.

SEC. 446. ASSISTANCE.

(a) In General.--The Secretary of State, or such other
Federal agency head as the President may designate, is
authorized to provide assistance, through the distribution of
allowances, allocated for such purpose under section 782(o)
of the Clean Air Act (as added by section 321 of this Act)
for qualifying activities that take place in eligible
countries, in accordance with the requirements of this
subtitle.
(b) Definition.--For the purposes of this section the term
``clean technology'' means any technology or service related
to the qualifying activities identified in section 445.
(c) Distribution of Allowances.--
(1) In general.--The Secretary of State, or such other
Federal agency head as the President may designate, after
consultation with the interagency group, shall distribute
allowances under this subtitle--
(A) in the form of bilateral assistance in accordance with
paragraph (4);
(B) to multilateral funds or institutions pursuant to the
Convention or an agreement negotiated under the Convention;
or
(C) through some combination of the mechanisms identified
in subparagraphs (A) and (B).
(2) Global environment facility.--For any allowances
provided to the Global Environment Facility pursuant to
paragraph (1)(B), the President shall designate the Secretary
of the Treasury to distribute those allowances to the Global
Environment Facility.
(3) Distribution through international fund or
institution.--If allowances are distributed to a multilateral
fund or institution, as authorized in paragraph (1), the
Secretary of State, or such other Federal agency head as the
President may designate, shall seek to ensure the
establishment and implementation of adequate mechanisms to--
(A) apply and enforce the criteria for determination of
eligible countries and qualifying activities under sections
444 and 445, respectively;
(B) require public reporting describing the process and
methodology for selecting the ultimate recipients of
assistance and a description of each activity that received
assistance, including the amount of obligations and
expenditures for assistance; and
(C) require that no funds be expended for the benefit of
any qualifying activity where that activity or any activity
relating to a qualifying activity under section 445
undermines the robust compliance with and enforcement of
existing legal requirements for the protection of
intellectual property rights for clean technology, as
formulated in the Agreement on Trade-Related Aspects of
Intellectual Property Rights, referred to in section
101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(15)).
(4) Bilateral assistance.--
(A) In general.--Bilateral assistance under paragraph (1)
shall be carried out by the Administrator of the United
States Agency for International Development, in consultation
with the interagency group.
(B) Limitations.--Not more than 15 percent of allowances
made available to carry out bilateral assistance under this
subtitle in any year shall be distributed to support
activities in any single country.
(C) Selection criteria.--Not later than 2 years after the
date of enactment of this subtitle, the Administrator of the
United States Agency for International Development, after
consultation with the interagency group, shall develop and
publish a set of criteria to be used in evaluating activities
within eligible countries for bilateral assistance under this
subtitle.
(D) Criteria requirements.--The criteria under subparagraph
(C) shall require that--
(i) the activity is a qualifying activity;
(ii) the activity will be conducted as part of an eligible
country's nationally appropriate mitigation strategy or as
part of an eligible country's actions towards providing a
nationally appropriate mitigation strategy to reduce,
sequester, or avoid emissions being implemented by the
eligible country;
(iii) the activity will not have adverse effects on human
health, safety, or welfare, the environment, or natural
resources;
(iv) any technologies deployed through bilateral assistance
under this subtitle will be properly implemented and
maintained;
(v) the activity will not cause any net loss of United
States jobs or displacement of United States production;
(vi) costs of the activity will be shared by the host
country government, private sector parties, or a
multinational development bank, except that this clause does
not apply to least developed countries;
(vii) the activity would not undermine the protection of
intellectual property rights for clean technology, as
formulated in the

[[Page H7599]]

Agreement on Trade-Related Aspects of Intellectual Property
Rights, referred to in section 101(d)(15) of the Uruguay
Round Agreements Act (19 U.S.C. 3511(d)(15)) and applicable
intellectual property provisions of bilateral trade
agreements; and
(viii) the activity meets such other requirements as the
interagency group determines appropriate to further the
purposes of this subtitle.
(E) Criteria preferences.--The criteria under subparagraph
(C) shall give preference to activities that--
(i) promise to achieve large-scale greenhouse gas
reductions, sequestration, or avoidance at a national,
sectoral or cross-sectoral level;
(ii) have the potential to catalyze a shift within the host
country towards widespread deployment of low- or zero-carbon
energy technologies;
(iii) build technical and institutional capacity and other
activities that are unlikely to be attractive to private
sector funding; or
(iv) maximize opportunities to leverage other sources of
assistance and catalyze private-sector investment.
(d) Monitoring, Evaluation, and Enforcement.--The Secretary
of State, or such other Federal agency head as the President
may designate, in consultation with the interagency group,
shall establish and implement a system to monitor and
evaluate the performance of activities receiving assistance
under this subtitle. The Secretary of State, or such other
Federal agency head as the President may designate, shall
have the authority to suspend or terminate assistance in
whole or in part for an activity if it is determined that the
activity is not operating in compliance with the approved
proposal.
(e) Coordination With U.S. Foreign Assistance.--Subject to
the direction of the President, the Secretary of State shall,
to the extent practicable, seek to align activities under
this section with broader development, poverty alleviation,
or natural resource management objectives and initiatives in
the recipient country.
(f) Annual Reports.--Not later than March 1, 2012, and
annually thereafter, the President shall submit to the
appropriate congressional committees a report on the
assistance provided under this subtitle during the prior
fiscal year. Such report shall include--
(1) a description of the amount and value of allowances
distributed during the prior fiscal year;
(2) a description of each activity that received assistance
during the prior fiscal year, and a description of the
anticipated and actual outcomes;
(3) an assessment of any adverse effects to human health,
safety, or welfare, the environment, or natural resources as
a result of activities supported under this subtitle;
(4) an assessment of the success of the assistance provided
under this subtitle to improving the technical and
institutional capacity to implement substantial emissions
reductions;
(5) an estimate of the greenhouse gas emissions reductions,
sequestration, or avoidance achieved by assistance provided
under this subtitle during the prior fiscal year; and
(6) an assessment whether any funds expended for the
benefit of any qualifying activity undermined the protection
of intellectual property rights for clean technology, as
formulated in the Agreement on Trade-Related Aspects of
Intellectual Property Rights, referred to in section
101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(15)) and applicable intellectual property provisions
of bilateral trade agreements.
(g) Not Eligible for Offset Credit.--Activities that
receive support under this subtitle shall not be issued
offset credits for the greenhouse gas emissions reductions or
avoidance, or greenhouse gas sequestration, produced by such
activities.

Subtitle E--Adapting to Climate Change

PART 1--DOMESTIC ADAPTATION

Subpart A--National Climate Change Adaptation Program

SEC. 451. GLOBAL CHANGE RESEARCH AND DATA MANAGEMENT.

(a) Short Title.--This section may be cited as the ``Global
Change Research and Data Management Act of 2009''.
(b) Global Change Research.--
(1) Purpose.--The purpose of this subsection is to provide
for the continuation and coordination of a comprehensive and
integrated United States observation, research, and outreach
program which will assist the Nation and the world to
understand, assess, predict, and respond to the effects of
human-induced and natural processes of global change.
(2) Definitions.--For purposes of this subsection--
(A) the term ``global change'' means human-induced or
natural changes in the global environment (including
alterations in climate, land productivity, oceans or other
water resources, atmospheric chemistry, biodiversity, and
ecological systems) that may alter the capacity of the Earth
to sustain life;
(B) the term ``global change research'' means study,
monitoring, assessment, prediction, and information
management activities to describe and understand--
(i) the interactive physical, chemical, and biological
processes that regulate the total Earth system;
(ii) the unique environment that the Earth provides for
life;
(iii) changes that are occurring in the Earth system; and
(iv) the manner in which such system, environment, and
changes are influenced by human actions;
(C) the term ``interagency committee'' means the
interagency committee established under paragraph (3);
(D) the term ``Plan'' means the National Global Change
Research and Assessment Plan developed under paragraph (5);
(E) the term ``Program'' means the United States Global
Change Research Program established under paragraph (4); and
(F) the term ``regional climate change'' means the natural
or human-induced changes manifested in the local or regional
environment (including alterations in weather patterns, land
productivity, water resources, sea level rise, atmospheric
chemistry, biodiversity, and ecological systems) that may
alter the capacity of a specific region to support current or
future social and economic activity or natural ecosystems.
(3) Interagency cooperation and coordination.--
(A) Establishment.--The President shall establish or
designate an interagency committee to ensure cooperation and
coordination of all Federal research activities pertaining to
processes of global change for the purpose of increasing the
overall effectiveness and productivity of Federal global
change research efforts. The interagency committee shall
include research and program representatives of agencies
conducting global change research, agencies with authority
over resources likely to be affected by global change, and
agencies with authority to mitigate human-induced global
change.
(B) Functions of the interagency committee.--The
interagency committee shall--
(i) serve as the forum for developing the Plan and for
overseeing its implementation;
(ii) serve as the forum for developing the vulnerability
assessment under paragraph (7);
(iii) ensure cooperation among Federal agencies with
respect to global change research activities;
(iv) work with academic, State, industry, and other groups
conducting global change research, to provide for periodic
public and peer review of the Program;
(v) cooperate with the Secretary of State in--

(I) providing representation at international meetings and
conferences on global change research in which the United
States participates; and
(II) coordinating the Federal activities of the United
States with programs of other nations and with international
global change research activities;

(vi) work with appropriate Federal, State, regional, and
local authorities to ensure that the Program is designed to
produce information needed to develop policies to mitigate
human-induced global change and to reduce the vulnerability
of the United States and other regions to global change;
(vii) facilitate ongoing dialog and information exchange
with regional, State, and local governments and other user
communities; and
(viii) identify additional decisionmaking groups that may
use information generated through the Program.
(4) United states global change research program.--
(A) Establishment.--The President shall establish an
interagency United States Global Change Research Program to
improve understanding of global change, to respond to the
information needs of communities and decisionmakers, and to
provide periodic assessments of the vulnerability of the
United States and other regions to global and regional
climate change. The Program shall be implemented in
accordance with the Plan.
(B) Lead agency.--The lead agency for the United States
Global Change Research Program shall be the Office of Science
and Technology Policy.
(C) Interagency program activities.--The Director of the
Office of Science and Technology Policy, in consultation with
the interagency committee, shall identify activities included
in the Plan that involve participation by 2 or more agencies
in the Program, and that do not fall within the current
fiscal year budget allocations of those participating
agencies, to fulfill the requirements of this section. The
Director of the Office of Science and Technology Policy shall
allocate funds to the agencies to conduct the identified
interagency activities. Such activities may include--
(i) development of scenarios for climate, land-cover
change, population growth, and socioeconomic development;
(ii) calibration and testing of alternative regional and
global climate models;
(iii) identification of economic sectors and regional
climatic zones; and
(iv) convening regional workshops to facilitate information
exchange and involvement of regional, State, and local
decisionmakers, non-Federal experts, and other stakeholder
groups in the activities of the Program.
(D) Workshops.--The Director shall ensure that at least one
workshop is held per year in each region identified by the
Plan under paragraph (5)(B)(xi) to facilitate information
exchange and outreach to regional, State, and local
stakeholders as required by this section.
(E) Authorization of appropriations.--There are authorized
to be appropriated to the Office of Science and Technology
Policy

[[Page H7600]]

for carrying out this paragraph $10,000,000 for each of the
fiscal years 2009 through 2014.
(5) National global change research and assessment plan.--
(A) In general.--The President shall develop a National
Global Change Research and Assessment Plan for implementation
of the Program. The Plan shall contain recommendations for
global change research and assessment. The President shall
submit an outline for the development of the Plan to the
Congress within 1 year after the date of enactment of this
Act, and shall submit a completed Plan to the Congress within
3 years after the date of enactment of this Act. Revised
Plans shall be submitted to the Congress at least once every
5 years thereafter. In the development of each Plan, the
President shall conduct a formal assessment process under
this paragraph to determine the needs of appropriate Federal,
State, regional, and local authorities and other interested
parties regarding the types of information needed by them in
developing policies to mitigate human-induced global change
and to reduce society's vulnerability to global change and
shall utilize these assessments, including the reviews by the
National Academy of Sciences and the National Governors
Association under subparagraphs (E) and (F), in developing
the Plan.
(B) Contents of the plan.--The Plan shall--
(i) establish, for the 10-year period beginning in the year
the Plan is submitted, the goals and priorities for Federal
global change research which most effectively advance
scientific understanding of global change and provide
information of use to Federal, State, regional, and local
authorities in the development of policies relating to global
change;
(ii) describe specific activities, including efforts to
determine user information needs, research activities, data
collection, database development, and data analysis
requirements, development of regional scenarios, assessment
of model predictability, assessment of climate change
impacts, participation in international research efforts, and
information management, required to achieve such goals and
priorities;
(iii) identify relevant programs and activities of the
Federal agencies that contribute to the Program directly and
indirectly;
(iv) set forth the role of each Federal agency in
implementing the Plan;
(v) consider and utilize, as appropriate, reports and
studies conducted by Federal agencies, the National Research
Council, or other entities;
(vi) make recommendations for the coordination of the
global change research and assessment activities of the
United States with such activities of other nations and
international organizations, including--

(I) a description of the extent and nature of international
cooperative activities;
(II) bilateral and multilateral efforts to provide
worldwide access to scientific data and information; and
(III) improving participation by developing nations in
international global change research and environmental data
collection;

(vii) detail budget requirements for Federal global change
research and assessment activities to be conducted under the
Plan;
(viii) catalog the type of information identified by
appropriate Federal, State, regional, and local
decisionmakers needed to develop policies to reduce society's
vulnerability to global change and indicate how the planned
research will meet these decisionmakers' information needs;
(ix) identify the observing systems currently employed in
collecting data relevant to global and regional climate
change research and prioritize additional observation systems
that may be needed to ensure adequate data collection and
monitoring of global change;
(x) describe specific activities designed to facilitate
outreach and data and information exchange with regional,
State, and local governments and other user communities; and
(xi) identify and describe regions of the United States
that are likely to experience similar impacts of global
change or are likely to share similar vulnerabilities to
global change.
(C) Research elements.--The Plan shall include at a minimum
the following research elements:
(i) Global measurements, establishing worldwide to regional
scale observations prioritized to understand global change
and to meet the information needs of decisionmakers on all
relevant spatial and time scales.
(ii) Information on economic, demographic, and
technological trends that contribute to changes in the Earth
system and that influence society's vulnerability to global
and regional climate change.
(iii) Development of indicators and baseline databases to
document global change, including changes in species
distribution and behavior, extent of glaciations, and changes
in sea level.
(iv) Studies of historical changes in the Earth system,
using evidence from the geological and fossil record.
(v) Assessments of predictability using quantitative models
of the Earth system to simulate global and regional
environmental processes and trends.
(vi) Focused research initiatives to understand the nature
of and interaction among physical, chemical, biological, land
use, and social processes related to global and regional
climate change.
(vii) Focused research initiatives to determine and then
meet the information needs of appropriate Federal, State, and
regional decisionmakers.
(D) Information management.--The Plan shall incorporate, to
the extent practicable, the recommendations relating to data
acquisition, management, integration, and archiving made by
the interagency climate and other global change data
management working group established under subsection (c)(3).
(E) National academy of sciences evaluation.--The President
shall enter into an agreement with the National Academy of
Sciences under which the Academy shall--
(i) evaluate the scientific content of the Plan; and
(ii) recommend priorities for future global and regional
climate change research and assessment.
(F) National governors association evaluation.--The
President shall enter into an agreement with the National
Governors Association Center for Best Practices under which
that Center shall--
(i) evaluate the utility to State, local, and regional
decisionmakers of each Plan and of the anticipated and actual
information outputs of the Program for development of State,
local, and regional policies to reduce vulnerability to
global change; and
(ii) recommend priorities for future global and regional
climate change research and assessment.
(G) Public participation.--In developing the Plan, the
President shall consult with representatives of academic,
State, industry, and environmental groups. Not later than 90
days before the President submits the Plan, or any revision
thereof, to the Congress, a summary of the proposed Plan
shall be published in the Federal Register for a public
comment period of not less than 60 days.
(6) Budget coordination.--
(A) In general.--The President shall provide general
guidance to each Federal agency participating in the Program
with respect to the preparation of requests for
appropriations for activities related to the Program.
(B) Consideration in president's budget.--The President
shall submit, at the time of his annual budget request to
Congress, a description of those items in each agency's
annual budget which are elements of the Program.
(7) Vulnerability assessment.--
(A) Requirement.--Within 1 year after the date of enactment
of this Act, and at least once every 5 years thereafter, the
President shall submit to the Congress an assessment which--
(i) integrates, evaluates, and interprets the findings of
the Program and discusses the scientific uncertainties
associated with such findings;
(ii) analyzes current trends in global change, both human-
induced and natural, and projects major trends for the
subsequent 25 to 100 years;
(iii) based on indicators and baselines developed under
paragraph (5)(C)(iii), as well as other measurements,
analyzes changes to the natural environment, land and water
resources, and biological diversity in--

(I) major geographic regions of the United States; and
(II) other continents;

(iv) analyzes the effects of global change, including the
changes described in clause (iii), on food and fiber
production, energy production and use, transportation, human
health and welfare, water availability and coastal
infrastructure, and human social and economic systems,
including providing information about the differential
impacts on specific geographic regions within the United
States, on people of different income levels within those
regions, and for rural and urban areas within those regions;
and
(v) summarizes the vulnerability of different geographic
regions of the world to global change and analyzes the
implications of global change for the United States,
including international assistance, population displacement,
food and resource availability, and national security.
(B) Use of related reports.--To the extent appropriate, the
assessment produced pursuant to this paragraph may coordinate
with, consider, incorporate, or otherwise make use of related
reports, assessments, or information produced by the United
States Global Change Research Program, regional, State, and
local entities, and international organizations, including
the World Meteorological Organization and the
Intergovernmental Panel on Climate Change.
(8) Policy assessment.--Not later than 1 year after the
date of enactment of this Act, and at least once every 4
years thereafter, the President shall enter into a joint
agreement with the National Academy of Public Administration
and the National Academy of Sciences under which the
Academies shall--
(A) document current policy options being implemented by
Federal, State, and local governments to mitigate or adapt to
the effects of global and regional climate change;
(B) evaluate the realized and anticipated effectiveness of
those current policy options in meeting mitigation and
adaptation goals;
(C) identify and evaluate a range of additional policy
options and infrastructure for mitigating or adapting to the
effects of global and regional climate change;
(D) analyze the adoption rates of policies and technologies
available to reduce the vulnerability of society to global
change with an evaluation of the market and policy obstacles
to their adoption in the United States; and

[[Page H7601]]

(E) evaluate the distribution of economic costs and
benefits of these policy options across different United
States economic sectors.
(9) Annual report.--Each year at the time of submission to
the Congress of the President's budget request, the President
shall submit to the Congress a report on the activities
conducted pursuant to this subsection, including--
(A) a description of the activities of the Program during
the past fiscal year;
(B) a description of the activities planned in the next
fiscal year toward achieving the goals of the Plan; and
(C) a description of the groups or categories of State,
local, and regional decisionmakers identified as potential
users of the information generated through the Program and a
description of the activities used to facilitate
consultations with and outreach to these groups, coordinated
through the work of the interagency committee.
(10) Relation to other authorities.--The President shall--
(A) ensure that relevant research, assessment, and outreach
activities of the National Climate Program, established by
the National Climate Program Act (15 U.S.C. 2901 et seq.),
are considered in developing national global and regional
climate change research and assessment efforts; and
(B) facilitate ongoing dialog and information exchange with
regional, State, and local governments and other user
communities through programs authorized in the National
Climate Program Act (15 U.S.C. 2901 et seq.).
(11) Repeal.--The Global Change Research Act of 1990 (15
U.S.C. 2921 et seq.) is amended by striking titles I and III
thereof.
(12) Global change research information.--The President
shall establish or designate a Global Change Research
Information Exchange to make scientific research and other
information produced through or utilized by the Program which
would be useful in preventing, mitigating, or adapting to the
effects of global change accessible through electronic means.
(13) Ice sheet study and report.--
(A) Study.--
(i) Requirement.--The Director of the National Science
Foundation and the Administrator of National Oceanic and
Atmospheric Administration shall enter into an arrangement
with the National Academy of Sciences to complete a study of
the current status of ice sheet melt, as caused by climate
change, with implications for global sea level rise.
(ii) Contents.--The study shall take into consideration--

(I) the past research completed related to ice sheet melt
as reviewed by Working Group I of the Intergovernmental Panel
on Climate Change;
(II) additional research completed since the fall of 2005
that was not included in the Working Group I report due to
time constraints; and
(III) the need for an accurate assessment of changes in ice
sheet spreading, changes in ice sheet flow, self-lubrication,
the corresponding effect on ice sheets, and current modeling
capabilities.

(B) Report.--Not later than 18 months after the date of
enactment of this Act, the National Academy of Sciences shall
transmit to the Committee on Science and Technology of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on the key
findings of the study conducted under subparagraph (A), along
with recommendations for additional research related to ice
sheet melt and corresponding sea level rise.
(14) Hurricane frequency and intensity study and report.--
(A) Study.--
(i) Requirement.--The Administrator of the National Oceanic
and Atmospheric Administration and the Director of the
National Science Foundation shall enter into an arrangement
with the National Academy of Sciences to complete a study of
the current state of the science on the potential impacts of
climate change on patterns of hurricane and typhoon
development, including storm intensity, track, and frequency,
and the implications for hurricane-prone and typhoon-prone
coastal regions.
(ii) Contents.--The study shall take into consideration--

(I) the past research completed related to hurricane and
typhoon development, track, and intensity as reviewed by
Working Groups I and II of the Intergovernmental Panel on
Climate Change;
(II) additional research completed since the fall of 2005
that was not included in the Working Group I and II reports
due to time constraints;
(III) the need for accurate assessment of potential changes
in hurricane and typhoon intensity, track, and frequency and
of the current modeling and forecasting capabilities and the
need for improvements in forecasting of these parameters; and
(IV) the need for additional research and monitoring to
improve forecasting of hurricanes and typhoons and to
understand the relationship between climate change and
hurricane and typhoon development.

(B) Report.--Not later than 18 months after the date of
enactment of this Act, the National Academy of Sciences shall
transmit to the Committee on Science and Technology of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on the key
findings of the study conducted under subparagraph (A).
(c) Climate and Other Global Change Data Management.--
(1) Purposes.--The purposes of this subsection are to
establish climate and other global change data management and
archiving as Federal agency missions, and to establish
Federal policies for managing and archiving climate and other
global change data.
(2) Definitions.--For purposes of this subsection--
(A) the term ``metadata'' means information describing the
content, quality, condition, and other characteristics of
climate and other global change data, compiled, to the
maximum extent possible, consistent with the requirements of
the ``Content Standard for Digital Geospatial Metadata''
(FGDC-STD-001-1998) issued by the Federal Geographic Data
Committee, or any successor standard approved by the working
group; and
(B) the term ``working group'' means the interagency
climate and other global change data management working group
established under paragraph (3).
(3) Interagency climate and other global change data
management working group.--
(A) Establishment.--The President shall establish or
designate an interagency climate and other global change data
management working group to make recommendations for
coordinating Federal climate and other global change data
management and archiving activities.
(B) Membership.--The working group shall include the
Administrator of the National Aeronautics and Space
Administration, the Administrator of the National Oceanic and
Atmospheric Administration, the Secretary of Energy, the
Secretary of Defense, the Director of the National Science
Foundation, the Director of the United States Geological
Survey, the Archivist of the United States, the Administrator
of the Environmental Protection Agency, the Secretary of the
Smithsonian Institution, or their designees, and
representatives of any other Federal agencies the President
considers appropriate.
(C) Reports.--Not later than 1 year after the date of
enactment of this Act, the working group shall transmit a
report to the Congress containing the elements described in
subparagraph (D). Not later than 4 years after the initial
report under this subparagraph, and at least once every 4
years thereafter, the working group shall transmit reports
updating the previous report. In preparing reports under this
subparagraph, the working group shall consult with expected
users of the data collected and archived by the Program.
(D) Contents.--The reports and updates required under
subparagraph (C) shall--
(i) include recommendations for the establishment,
maintenance, and accessibility of a catalog identifying all
available climate and other global change data sets;
(ii) identify climate and other global change data
collections in danger of being lost and recommend actions to
prevent such loss;
(iii) identify gaps in climate and other global change data
and recommend actions to fill those gaps;
(iv) identify effective and compatible procedures for
climate and other global change data collection, management,
and retention and make recommendations for ensuring their use
by Federal agencies and other appropriate entities;
(v) develop and propose a coordinated strategy for funding
and allocating responsibilities among Federal agencies for
climate and other global change data collection, management,
and retention;
(vi) make recommendations for ensuring that particular
attention is paid to the collection, management, and
archiving of metadata;
(vii) make recommendations for ensuring a unified and
coordinated Federal capital investment strategy with respect
to climate and other global change data collection,
management, and archiving;
(viii) evaluate the data record from each observing system
and make recommendations to ensure that delivered data are
free from time-dependent biases and random errors before they
are transferred to long-term archives; and
(ix) evaluate optimal design of observation system
components to ensure a cost-effective, adequate set of
observations detecting and tracking global change.

SEC. 452. NATIONAL CLIMATE SERVICE.

(a) Short Title.--This section may be cited as the
``National Climate Service Act of 2009''.
(b) Purpose.--The purpose of this section is to establish a
National Climate Service and to define the activities to be
undertaken within the National Oceanic and Atmospheric
Administration to--
(1) advance understanding of climate variability and change
at the global, national, regional, and local levels;
(2) provide forecasts, warnings, and other information to
the public on variability and change in weather and climate
that affect geographic areas, natural resources,
infrastructure, economic sectors, and communities; and
(3) support development of adaptation and response plans by
Federal agencies, State, local, and tribal governments, the
private sector, and the public.
(c) Definitions.--In this section:
(1) Advisory committee.--The term ``Advisory Committee''
means the Climate Service

[[Page H7602]]

Advisory Committee established under subsection (f).
(2) Director.--The term ``Director'' means the Director of
the Climate Service Office.
(3) Representative.--The term ``representative'' means an
individual who is not a full-time or part-time employee of
the Federal Government and who is appointed to an advisory
committee to represent the views of an entity or entities
outside the Federal Government.
(4) Special government employee.--The term ``Special
Government Employee'' has the same meaning as in section
202(a) of title 18, United States Code.
(5) Under secretary.--The term ``Under Secretary'' means
the Under Secretary of Commerce for Oceans and Atmosphere.
(d) Interagency Development of a National Climate
Service.--
(1) In general.--The President shall--
(A) initiate a process within 30 days after the date of
enactment of this Act through the Committee on Environment
and Natural Resources of the National Science and Technology
Council and led by the Director of the Office of Science and
Technology Policy, to evaluate alternative structures to
support a collaborative, interagency research and operational
program that will achieve the goal of meeting the needs of
decisionmakers in--
(i) Federal agencies;
(ii) State, local, and tribal governments;
(iii) regional entities and other stakeholders and users,
for reliable, timely, and relevant information related to
climate variability and change;
(B) within 1 year after the date of enactment of this Act
complete pursuant to paragraph (2) a survey of the needs of
current and future users of information related to climate
variability and change;
(C) within 2 years after the date of enactment of this Act
report to Congress under paragraph (3) the results of the
evaluation described in subparagraph (A) and provide a plan
to establish a collaborative, interagency research and
operational program to deliver information related to climate
variability and change to all users; and
(D) within 3 years after the date of enactment of this Act,
and after delivery of the report to Congress required under
subparagraph (C), establish a National Climate Service, based
upon the information obtained through the process described
in subparagraph (A), that meets the goal described in
subparagraph (A).
(2) Survey of need for climate services.--
(A) In general.--The Director of the Office of Science and
Technology Policy, through the Committee on Environment and
Natural Resources, shall provide a report to Congress within
1 year after the date of enactment of this Act that compiles
information on the current climate products being delivered
by each Federal agency and its partner organizations to users
and stakeholders, and on the needs of users and stakeholders
for new climate products and services.
(B) Contents of the report.--The report shall identify--
(i) specific user groups and stakeholders that currently
are served by each Federal agency and its partner
organizations;
(ii) the type of climate products and services currently
delivered to specific users groups and stakeholders, and the
specific Federal agency office, program, or partner
organization that delivers these products and services;
(iii) potential user groups and stakeholders that may be
served by expanding climate products and services;
(iv) specific needs for new climate products and services
to be delivered by each Federal agency and its partner
organizations identified by user groups and stakeholders;
(v) a characterization of the different user and
stakeholder groups that were surveyed by each Federal agency;
and
(vi) a list of non-Federal entities that deliver climate
products and services.
(3) Report to congress.--
(A) In general.--Within 2 years after the date of enactment
of this Act, the Director of the Office of Science and
Technology Policy shall report to the President and the
Congress on a proposal, prepared through the Committee on
Environment and Natural Resources, to establish and operate a
National Climate Service. The report shall include--
(i) a description of the alternative structures considered;
(ii) a description of the structure proposed for a National
Climate Service, including a discussion of the benefits of
this structure as compared to the alternatives considered;
(iii) designation of a specific office or agency that will
lead the National Climate Service and that shall be
accountable for the daily operation of the National Climate
Service;
(iv) a description of the role and capability of each
Federal agency, including a list of all entities within each
agency or supported with agency funds that currently provide
or may provide climate products or services;
(v) a description of the mechanisms that will be used to
ensure ongoing communication and information exchange among
the Federal agencies and between Federal agencies and their
respective user and stakeholder communities including--

(I) mechanisms to facilitate ongoing dialogue with non-
Federal organizations providing climate services;
(II) mechanisms to facilitate ongoing dialogue with
regional, State, local, and tribal governments, the private
sector, and other users and stakeholders on the development
and delivery of climate services;
(III) mechanisms to collect information, observations, and
other data relevant for improving climate products and
services; and
(IV) designation of points of contact for each Federal
agency with responsibilities to deliver climate services;

(vi) a detailed description of the processes and procedures
that will be necessary to coordinate observations and
information collection by different Federal agencies to
ensure the compatibility of information and to facilitate
data and information exchange among Federal agencies and with
non-Federal entities, and a designation of the agency or
agencies that would be responsible for ongoing oversight of
these functions;
(vii) a detailed description of how research findings and
climate impact assessments produced through the United States
Global Change Research Program and the other activities
undertaken within the United States Global Change Research
Program would be integrated with the activities undertaken by
a National Climate Service;
(viii) a list of the existing observation and monitoring
systems or programs operated by each Federal agency that
provide data, observations, and other information that may be
used to develop or improve climate products and services;
(ix) a description of new infrastructure, equipment,
personnel or other resources, by agency, that may be needed
to achieve the goals of a National Climate Service, and the
time period over which these new resources will be allocated;
(x) an identification of the activities that may be
undertaken in cooperation with international partners;
(xi) the mechanisms established to provide quality
assurance and quality control of climate service products and
services, and the agency or agencies designated to conduct
and oversee these mechanisms;
(xii) an identification of non-Federal entities that
provide climate products and services, and a description of
the relationship envisioned between a National Climate
Service and the non-Federal entities providing climate
services; and
(xiii) responses to the comments received during the public
comment period.
(B) Draft report.--Prior to the submission of the final
report, the Director of the Office of Science and Technology
Policy shall publish a draft report in the Federal Register
with a comment period of at least 30 days.
(C) Consultation.--In developing the report, the Director
of the Office of Science and Technology Policy shall consult
with State, local, and tribal governments, regional entities,
the private sector, and other users and stakeholder groups,
and Congress.
(4) Annual report.--The Director of the Office of Science
and Technology Policy shall transmit to the Congress at the
time of the President's fiscal year 2013 budget request, and
annually thereafter, a report on the annual anticipated cost
of carrying out the research and operational activities of
the National Climate Service, with a description of the
budget for each Federal agency's activities.
(e) Climate Service Program.--
(1) In general.--The Under Secretary, building upon the
resources of the National Weather Service and other weather
and climate programs in the National Oceanic and Atmospheric
Administration, shall establish a Climate Service Program.
(2) Climate service office.--The Under Secretary shall
establish a Climate Service Office and shall appoint a
Director of the Office to collaborate with the leadership of
the National Oceanic and Atmospheric Administration line
offices to perform the duties assigned to the Office. The
Climate Service Office shall--
(A) coordinate programs at the National Oceanic and
Atmospheric Administration to ensure the timely production
and distribution of data and information on global, national,
regional, and local climate variability and change over all
time scales relevant for planning and response, including
intraseasonal, interannual, decadal, and multidecadal time
periods;
(B) ensure exchange of information between the research and
operational offices at the National Oceanic and Atmospheric
Administration to identify research needs for improving
climate products and services and ensure the timely and
orderly transition of research findings, improved
technologies, models, and other tools to the National Oceanic
and Atmospheric Administration's operations;
(C) ensure operational quality control of all Climate
Service Program products including a transparent and open
accounting of all the assumptions built into the global,
national, regional, and local weather and climate computer
models upon which such products are based;
(D) ensure a continuous level of high-quality data
collected through a national observation and monitoring
infrastructure, including at a minimum performing regular
maintenance and verification, and periodic upgrades;
(E) serve as liaison to and exchange information with other
Federal agencies that provide climate services in order to--

[[Page H7603]]

(i) ensure the timely dissemination of data and information
on weather and climate produced by the National Oceanic and
Atmospheric Administration to other Federal agencies;
(ii) ensure that data and information collected by other
Federal agencies relevant to improving climate services are
made available to the National Oceanic and Atmospheric
Administration;
(iii) facilitate the development and delivery of climate
products and services to relevant stakeholders; and
(iv) obtain information from other Federal agencies to
improve the development and dissemination by the National
Oceanic and Atmospheric Administration of information on
weather and climate to other Federal agencies for the
development of climate service products by those agencies;
(F) ensure cooperation and collaboration, as appropriate,
of the Climate Service Program with State, local, and tribal
governments, regional entities, academic and nonprofit
research organizations, and private sector entities,
including weather information providers and other
stakeholders; and
(G) ensure exchange of data, information, and research with
the United States Global Change Research Program to support
the development of assessments required under the Global
Change Research Act of 1990 (15 U.S.C. 2921 et seq.).
(3) Climate service program.--
(A) In general.--The Under Secretary shall operate the
Climate Service Program through a national center, the
Climate Service Office, and a network of regional and local
facilities, including the established regional and local
offices of the National Weather Service, 6 Regional Climate
Centers, the offices of the Regional Integrated Sciences and
Assessments program, the National Integrated Drought
Information System, and any other National Oceanic and
Atmospheric Administration or National Oceanic and
Atmospheric Administration-supported regional and local
entities, as appropriate.
(B) Regional climate centers program.--The Under Secretary
shall maintain a network of 6 Regional Climate Centers to
work cooperatively with the State Climate Offices to--
(i) collect and exchange data and information needed to
characterize, understand, and forecast regional and local
weather and climate;
(ii) facilitate collection and exchange of data and
information between the States and Federal Government on
weather and climate in conjunction with the National Climatic
Data Center;
(iii) support research and observations;
(iv) obtain input on stakeholder needs for weather and
climate information and products; and
(v) support State and local adaptation and response
planning.
(C) Regional integrated sciences and assessments program.--
The Under Secretary shall maintain a network of offices as
part of the Regional Integrated Sciences and Assessments
Program. Such offices shall engage in cooperative research,
development, and demonstration projects with the academic
community, State Climate Offices, Regional Climate Offices,
and other users and stakeholders on climate products,
technologies, models, and other tools to improve
understanding and forecasting of regional and local climate
variability and change and the effects on economic
activities, natural resources, and water availability, and
other effects on communities, to facilitate development of
regional and local adaptation plans to respond to climate
variability and change, and any other needed research
identified by the Under Secretary or the Advisory Committee.
(D) Other offices.--In carrying out the functions of the
Climate Service Program, the Under Secretary shall utilize
the assets and expertise of--
(i) the National Weather Service to--

(I) deliver operational weather and climate forecasts,
warnings, products, and information through the Climate
Service Programs Division, Local Weather Forecast Offices,
Weather Service Offices, and River Forecast Centers; and
(II) develop climate forecast models and tools through the
National Centers for Environmental Prediction;

(ii) the National Environmental Satellite, Data, and
Information Service to provide data services and support for
product development and operations through the National
Climatic Data Center and the Regional Climate Centers;
(iii) the Office of Oceanic and Atmospheric Research to--

(I) provide research on product development;
(II) improve weather and climate forecast models;
(III) provide new technologies and methods of observation;
and
(IV) oversee the National Oceanic and Atmospheric
Administration supported research performed by the Joint
Cooperative Institutes, universities, and other non-Federal
entities;

(iv) the National Integrated Drought Information System
to--

(I) provide an effective drought warning system;
(II) coordinate and integrate Federal research on droughts;
(III) collect and integrate information on key indicators
of drought;
(IV) make usable, reliable, and timely forecasts and
assessments of drought, including assessments of the severity
of drought conditions and effects;
(V) communicate drought forecasts, conditions, and effects
to Federal, State, tribal, and local governments, regional
entities, the private sector, and the public; and
(VI) coordinate with State Climate Offices and RISA teams
to assess management practices and technologies, and the
effects of both, used for drought mitigation at the local,
State, and regional levels; and

(v) any other National Oceanic and Atmospheric
Administration offices or programs, as appropriate.
(E) Mission.--The Under Secretary shall ensure that the
core functions and missions of the National Weather Service,
the National Integrated Drought Information System, and any
other programs within the National Oceanic and Atmospheric
Administration are not diminished or neglected by the
establishment of the Climate Service Program or the duties
imposed on such offices or programs under this paragraph.
(F) Program elements.--The Climate Service Program shall--
(i) conduct analyses of and studies relating to the effects
of weather and climate on communities, including effects on
agricultural production, natural resources, energy supply and
demand, recreation, and other sectors of the economy;
(ii) carry out observations, data collection, and
monitoring of atmospheric and oceanic conditions on a
statewide, regional, national, and global basis;
(iii) provide information and technical support for
Federal, regional, State, tribal, and local government
efforts to assess and respond to climate variability and
change;
(iv) develop systems for the management and dissemination
of data, information, and assessments, including mechanisms
for consultation with current and potential users and other
stakeholders;
(v) conduct research to improve forecasting,
characterization, and understanding of weather and climate
variability and change and its effects on communities,
including its effects on agricultural production, natural
resources, energy supply and demand, recreation, and other
sectors of the economy; and
(vi) develop tools to facilitate the use of climate
information by local and regional stakeholders.
(f) Climate Service Advisory Committee.--
(1) In general.--The Under Secretary shall establish a
Climate Service Advisory Committee to provide advice on--
(A) climate service product development;
(B) delivery of services to decisionmakers and other
stakeholders;
(C) infrastructure to support observations and monitoring;
(D) computation and modeling needs, research needs, and
other resources needed to develop, distribute, and ensure the
utility of climate data, products, and services; and
(E) any other topics as may be requested by the Under
Secretary or Congress.
(2) Members.--
(A) In general.--The Advisory Committee shall be composed
of at least 25 members appointed by the Under Secretary. Each
member of the Advisory Committee shall be qualified either--
(i) by education, training, and experience to evaluate
scientific and technical information on matters referred to
the Advisory Committee under this subsection; or
(ii) to evaluate the utility and need for climate products
by planners, decisionmakers, the private sector, and the
public.
(B) Terms of service.--Members shall be appointed for 3-
year terms, renewable once, and shall serve at the discretion
of the Under Secretary. Vacancy appointments shall be for the
remainder of the unexpired term of the vacancy, and an
individual so appointed may subsequently be appointed for 2
full 3-year terms if the remainder of the unexpired term is
less than one year.
(C) Chairperson.--The Under Secretary shall designate a
chairperson from among the members of the Advisory Committee.
The designated Chairperson shall alternate between a member
who is appointed as a representative and a member who is
appointed as a Special Government Employee.
(D) Subcommittees.--
(i) Establishment.--The Advisory Committee shall
establish--

(I) a Subcommittee on Science and Technology to advise the
Climate Service Program on needed research, technology
development, and additional observations, and on any other
scientific or technical issues as appropriate; and
(II) a Subcommittee on Product Development and Delivery
composed primarily of representatives of the community of
potential users of the products developed and delivered by
the Climate Service Program.

The Advisory Committee may establish such additional
subcommittees of its members as may be necessary.
(ii) Appointment.--

(I) Full advisory committee.--At least 50 percent of the
members of the Advisory Committee shall be appointed as
Special Government Employees.
(II) Subcommittees.--At least 75 percent of the members of
the Subcommittee on Science and Technology shall be appointed
as Special Government Employees. Not more than 25 percent of
the members of the Subcommittee on Product Development and
Delivery shall be appointed as Special Government Employees.

[[Page H7604]]

(3) Administrative provisions.--
(A) Reporting.--The Advisory Committee shall report to the
Under Secretary and the appropriate requesting party.
(B) Administrative support.--The Under Secretary shall
provide administrative support to the Advisory Committee.
(C) Meetings.--The Advisory Committee shall meet at least
twice each year and at other times at the call of the Under
Secretary or the Chairperson.
(D) Compensation and expenses.--A member of the Advisory
Committee shall not be compensated for service on the
Advisory Committee, but may be allowed travel expenses,
including per diem in lieu of subsistence, in accordance with
subchapter I of chapter 57 of title 5, United States Code.
(4) Expiration.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Climate
Service Advisory Committee.
(g) Repeal.--The National Climate Program Act (15 U.S.C.
2901 et seq.) is repealed.
(h) Establishment of Regional Integrated Sciences and
Assessments Teams.--
(1) In general.--In maintaining the network of Regional
Integrated Sciences and Assessments (RISA) Teams under
subsection (e)(3)(C), the Under Secretary shall utilize a
competitive, peer-reviewed selection process. Teams shall
conduct applied regional climate research and projects to
address the needs of local and regional decisionmakers for
information and tools to develop adaptation and response
plans to climate variability and change. The awards shall be
administered through a cooperative agreement between the
National Oceanic and Atmospheric Administration and the RISA
Team. Each award shall be for a period of five years.
(2) RISA teams.--Teams shall be composed of multi-
institutional partnerships whose individual members may
include--
(A) institutions of higher education, as defined in section
101(a) of the Higher Education Act of 1965 (20 U.S.C.
1001(a));
(B) minority serving institutions, as defined in section
371(a) of the Higher Education Act of 1965; and
(C) nongovernmental research organizations, Federal
agencies, State and local agencies, tribal organizations, and
for-profit entities.
(3) Considerations.--In making awards under this
subsection, the Under Secretary shall consider--
(A) the overall geographic distribution of RISA Teams and
existing gaps in applied research to support local and
regional decisionmakers;
(B) the team's ability to contribute to the National
Oceanic and Atmospheric Administration's efforts to deliver
climate services in the region; and
(C) the team's proposal to integrate social and physical
sciences research to address the effects of climate
variability and change on the ecology, economy,
infrastructure, and communities in the region.
(i) Survey of Need for Climate Services.--
(1) In general.--The Under Secretary shall provide a report
to Congress within 9 months after the date of enactment of
this Act that compiles information on the current climate
products being delivered by the National Oceanic and
Atmospheric Administration and its partner organizations to
users and stakeholders and on the needs of users and
stakeholders for new climate products and services.
(2) Contents of report.--The report shall identify--
(A) specific user groups and stakeholders that currently
are served by the National Oceanic and Atmospheric
Administration and its partner organizations;
(B) the type of climate products and services currently
delivered to specific user groups and stakeholders and the
specific National Oceanic and Atmospheric Administration
office or partner organization that delivers these products
and services;
(C) potential user groups and stakeholders that may be
served by expanding climate products and services; and
(D) specific needs for new climate products and services
identified by user groups and stakeholders.
(3) Consultation.--The Under Secretary shall consult with
the Climate Service Advisory Committee in the preparation of
this report.
(j) Implementation Plan.--
(1) In general.--The Under Secretary shall prepare a plan
for creating a Climate Service Program in the National
Oceanic and Atmospheric Administration and delivering climate
products and services to the National Oceanic and Atmospheric
Administration users and stakeholders. The plan shall be
submitted to the President and the Congress within 1 year
after the date of enactment of this Act.
(2) Draft plan.--Prior to the submission of the final plan,
the Under Secretary shall publish a draft plan in the Federal
Register with a public comment period of at least 30 days.
(3) Contents.--The plan shall--
(A) identify the current gaps in climate services and
outline the process and resources the National Oceanic and
Atmospheric Administration will use to fill these gaps;
(B) describe the roles of the National Oceanic and
Atmospheric Administration line offices and the National
Oceanic and Atmospheric Administration partner organizations
in the development and delivery of climate products and
services;
(C) describe the development and implementation of quality
assurance and control mechanisms for climate products and
services delivered by the National Oceanic and Atmospheric
Administration and its partner organizations;
(D) identify the mechanisms and opportunities for
determining user needs and engaging in a two-way dialogue
with users that will inform climate product and service
development and delivery of authoritative, timely, and useful
information on climate variability and change and the effects
on local, State, regional, national, and global scales;
(E) identify new responsibilities or tasks to be undertaken
by existing National Oceanic and Atmospheric Administration
line offices and partner organizations;
(F) identify new infrastructure, equipment, personnel, or
other resources needed to implement the proposed plan; and
(G) include responses to the comments received during the
public comment period.
(4) Continuity of service.--During the development of the
implementation plan, the public comment period, and final
plan, the National Oceanic and Atmospheric Administration
shall continue to provide climate services to the user
community.
(5) Consultation.--In developing the plan, the Under
Secretary shall consult with user groups and stakeholders,
State Climate Offices, Regional Climate Centers, other
Federal agencies, the Climate Service Advisory Committee, and
Congress.
(6) Coordination with interagency development of a national
climate service.--In preparing the plan required under this
subsection, the Under Secretary shall consult with the
Director of the Office of Science and Technology Policy to
ensure that the program developed by the Agency will serve
the needs of a National Climate Service.
(k) Summer Institutes Program at the Regional Climate
Centers.--
(1) Definitions.--In this subsection:
(A) Summer institute.--The term ``summer institute'' means
an institute, operated during the summer, that--
(i) is hosted by a Regional Climate Center or an eligible
partner;
(ii) is operated for a period of not less than 2 weeks; and
(iii) provides direct interaction of middle school and high
school teacher and undergraduate student participants with
personnel of the Regional Climate Centers or eligible
partners who have scientific expertise in weather and
climate.
(B) Eligible partner.--The term ``eligible partner''
means--
(i) the science, engineering, or mathematics department at
an institution of higher education; or
(ii) a nonprofit entity with expertise in providing
educational enrichment experiences for students.
(2) Summer institutes program authorized.--
(A) In general.--The Under Secretary shall establish a
summer institutes program, to be conducted in cooperation
with the Regional Climate Centers, which may include an
eligible partner. The purpose of the program is to provide
training and professional enrichment by providing
opportunities for interaction between participants and
climate scientists in a research and operational setting to--
(i) enable middle school and high school teachers to
integrate weather and climate sciences into their curricula:
and
(ii) encourage undergraduate students to pursue further
study and careers in weather and climate sciences.
(B) Required activities.--Funds authorized under this
subsection shall be used for--
(i) providing educational opportunities for middle school
and high school teachers and undergraduate students not
achievable inside the classroom;
(ii) exposing such teachers and students to researchers,
scientists, or engineers who can demonstrate their daily
activities to the teachers and students;
(iii) exposing teachers and students to scientific methods
in a research discovery setting; and
(iv) assisting teachers with curriculum development in the
areas of weather and climate science.
(3) Priority.--The Under Secretary shall ensure that each
summer institute program authorized under paragraph (2)
includes students from groups underrepresented in the fields
of science, technology, engineering, and mathematics
teaching, including women and members of minority groups.
(4) Report to congress.--The Under Secretary shall submit
to Congress a biennial report on the activities conducted
under this subsection, including the number of participants
and the new curricula developed in atmospheric and climate
sciences.
(l) Clearinghouse of Federal Climate Service Products and
Links to Federal Agencies Providing Climate Services.--
(1) In general.--The Under Secretary shall establish and
maintain a clearinghouse to inform State, local, and tribal
governments and the public about the information and services
available to--
(A) assess the impacts of climate variability and change at
different geographic scales;
(B) characterize and forecast climate variability and
change for specific regions, resources, and economic sectors;
and

[[Page H7605]]

(C) develop and implement adaptation strategies to reduce
vulnerabilities to climate variability and change.
(2) Other resources.--The clearinghouse shall include
hyperlinks to Internet sites that describe the activities,
information, and resources of--
(A) the Federal Government;
(B) State and local governments;
(C) the private sector;
(D) nongovernmental and nonprofit entities and
organizations; and
(E) international organizations.
(m) Financial Burden.--Nothing in this section shall be
construed as authorizing the National Climate Service or the
Climate Service Program at the National Oceanic and
Atmospheric Administration to require State, tribal, or local
governments to develop adaptation or response plans or to
take any other action in response to variations in climate
that may result in an increased financial burden to such
governments.

SEC. 453. STATE PROGRAMS TO BUILD RESILIENCE TO CLIMATE
CHANGE IMPACTS.

(a) Definitions.--For purposes of this section:
(1) Allowance.--The term ``allowance'' means an emission
allowance established under section 721 of the Clean Air Act
(as added by section 311 of this Act).
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(3) Vintage year.--The term ``vintage year'' has the
meaning given that term under section 700 of the Clean Air
Act (as added by section 312 of this Act).
(b) Regulations; Coordination.--Not later than 2 years
after the date of enactment of this Act, the Administrator,
or such Federal agency head or heads as the President may
designate, shall promulgate regulations to implement the
requirements of this section. If the President designates
more than 1 Federal agency to implement this section, the
President shall require such agencies to establish a
memorandum of understanding providing for coordination of
rulemaking and other implementing activities, in accordance
with the requirements of this section.
(c) Distribution of Allowances.--
(1) In general.--Not later than September 30 of each of
calendar years 2011 through 2049, the Administrator shall
distribute, in accordance with this section, allowances
allocated for the following vintage year pursuant to section
782(l) of the Clean Air Act (as added by section 321 of this
Act). The Administrator shall reserve 1 percent of such
allowances for distribution to Indian tribes in accordance
with subsection (d). The remainder of such allowances shall
be distributed ratably among the States based on the product
of--
(A) each State's population; and
(B) each State's allocation factor as determined under
paragraph (2).
(2) State allocation factors.--
(A) In general.--Except as provided in subparagraph (B),
the allocation factor for a State shall be the quotient of--
(i) the per capita income of all individuals in the United
States, divided by
(ii) the per capita income of all individuals in such
State.
(B) Limitation.--If the allocation factor for a State as
calculated under subparagraph (A) would exceed 1.2, then the
allocation factor for such State shall be 1.2. If the
allocation factor for a State as calculated under
subparagraph (A) would be less than 0.8, then the allocation
factor for such State shall be 0.8.
(C) Per capita income.--For purposes of this paragraph, per
capita income shall be--
(i) determined at 2-year intervals; and
(ii) subject to subparagraph (D), equal to the average of
the annual per capita incomes for the most recent period of 3
consecutive years for which satisfactory data are available
from the Department of Commerce at the time such
determination is made.
(D) Revenue directly resulting from a presidentially
declared major disaster.--For purposes of this paragraph, per
capita income from one or more of the following sources shall
be reduced or excluded if the Secretary of Commerce (in
consultation with the Administrator and the secretaries or
administrators of the departments or agencies involved)
determines that the income accrues to persons as the result
of a Major Disaster (as declared by the President of the
United States) and if the Secretary finds that the inclusion
of one or more of these income sources, in whole or in part,
results in a transitory, rather than a sustainable, increase
in a State's per capita income level relative to the national
average:
(i) Property and casualty insurance (including homeowners
and renters insurance).
(ii) The National Flood Insurance Program of the Federal
Emergency Management Agency.
(iii) The Individual and Family Grants Program of the
Federal Emergency Management Agency.
(iv) The Disaster Housing Program of the Federal Emergency
Management Agency.
(v) The Community Development Block Grant Program of the
Department of Housing and Urban Development.
(vi) The Disaster Unemployment Assistance Program of the
Department of Labor.
(vii) Any other source determined appropriate by the
Administrator.
(d) Distribution to Indian Tribes.--The Administrator, or
such Federal agency head or heads as the President may
designate, shall promulgate regulations establishing a
program to distribute allowances on a competitive basis to
Indian tribes, in accordance with the requirements of this
section. Such allowances shall be used exclusively in
accordance with the requirements of subsection (e). Beginning
with vintage year 2015, Indian tribes with a tribal
adaptation plan approved pursuant to subsection (f) shall be
given priority in selection of programs or projects for
receipt of emission allowances under this subsection.
(e) Use of Allowances.--
(1) In general.--States and Indian tribes shall use
allowances distributed under this section exclusively for the
implementation of projects, programs, or measures to build
resilience to the impacts of climate change, including--
(A) extreme weather events such as flooding and tropical
cyclones;
(B) more frequent heavy precipitation events;
(C) water scarcity and adverse impacts on water quality;
(D) stronger and longer heat waves;
(E) more frequent and severe droughts;
(F) rises in sea level;
(G) ecosystem disruption;
(H) increased air pollution; and
(I) effects on public health.
(2) Priority in projects to reduce flood events.--When
implementing any project, program, or measure supported under
this section and designed to reduce flood events, a State or
Indian tribe should consider prioritizing projects that seek
to--
(A) mitigate the destructive impacts of climate-related
increases in the duration, frequency, or magnitude of
rainfall or runoff, including snowmelt runoff, as well as
hurricanes;
(B) improve flood protection for densely populated urban
areas; and
(C) mitigate the destructive impact of ocean-related
climate change effects, including effects on bays, estuaries,
populated barrier islands and other ocean-related features,
through a variety of means and measures, including the
construction of jetties, levies, and other coastal structures
in densely populated coastal areas impacted by climate
change.
(3) State and tribal adaptation plans.--Upon approval of a
State or tribal climate adaptation plan under subsection (f),
allowances received by a State under this section shall be
used in accordance with such plan.
(4) Supplement, not supplant.--It is the intent of the
Congress that allowances distributed to carry out this
section should be used to supplement, and not replace,
existing sources of funding used to build resilience to the
impacts of climate change identified in paragraph (1).
(5) Research on hurricanes.--The authorized uses of
allowances under this section shall include establishment of
projects or programs to conduct research and monitoring on
the effect of ongoing climate change on the frequency and
intensity of hurricanes.

(f) State and Tribal Climate Adaptation Plans.--
(1) In general.--The regulations promulgated pursuant to
subsection (b) shall include requirements for submission and
approval of State or tribal climate adaptation plans under
this section. Beginning with vintage year 2015, distribution
of allowances to a State pursuant to this section shall be
contingent on approval of a State climate adaptation plan for
such State that meets the requirements of such regulations.
Requirements for tribal climate adaptation plans may vary
from those of State adaptation plans to the extent necessary
to account for the special circumstances of Indian tribes.
(2) Requirements.--Regulations promulgated under this
section shall require, at minimum, that State and tribal
climate adaptation plans--
(A) assess and prioritize the State's or Indian tribe's
vulnerability to a broad range of impacts of climate change,
based on the best available science;
(B) include an assessment of potential for carbon reduction
through changes to land management policies (including
enhancement or protection of forest carbon sinks);
(C) identify and prioritize specific cost-effective
projects, programs, and measures to build resilience to
current and predicted impacts of climate change;
(D) ensure that the State or Indian tribe fully considers
and undertakes, to the maximum extent practicable,
initiatives that--
(i) protect or enhance natural ecosystem functions,
including protection, maintenance, or restoration of natural
infrastructure such as wetlands, reefs, and barrier islands
to buffer communities from floodwaters or storms, watershed
protection to maintain water quality and groundwater
recharge, or floodplain restoration to improve natural flood
control capacity; or
(ii) use non-structural approaches including practices that
utilize, enhance, or mimic the natural hydrologic cycle
processes of infiltration, evapotranspiration, and reuse;
(E) be revised and resubmitted for approval not less
frequently than every 5 years; and
(F) be consistent with Federal conservation and
environmental laws and, to the maximum extent practicable,
avoid environmental degradation.
(3) Coordination with prior planning efforts.--In
implementing this subsection, the Administrator, or such
Federal agency head or heads as the President may designate,
shall--

[[Page H7606]]

(A) draw upon lessons learned and best practices from
preexisting State and tribal climate adaptation planning
efforts;
(B) seek to avoid duplication of such efforts; and
(C) ensure that the plans developed under this section
reflect and are fully consistent with State natural resources
adaptation plans developed under section 479 of this Act.
(g) Reporting.--Each State or Indian tribe receiving
allowances under this section shall submit to the
Administrator, or such Federal agency head or heads as the
President may designate, within 12 months after each receipt
of such allowances and once every 2 years thereafter until
the value of any allowances received under this section has
been fully expended, a report that--
(1) provides a full accounting for the State's or Indian
tribe's use of allowances distributed under this section,
including a description of the projects, programs, or
measures supported using such allowances;
(2) includes a report prepared by an independent third
party, in accordance with such regulations as are promulgated
by the Administrator or such other Federal agency head or
heads as the President may designate, evaluating the
performance of the projects, programs, or measures supported
under this section; and
(3) identifies any use by the State or Indian tribe of
allowances distributed under this section for the reduction
of flood and storm damage and the effects of climate change
on water and flood protection infrastructure.
(h) Enforcement.--If the Administrator, or such Federal
agency head or heads as the President may designate,
determines that a State or Indian tribe is not in compliance
with this section, the Administrator or such other agency
head may withhold a quantity of the allowances equal to up to
twice the quantity of allowances that the State or Indian
tribe failed to use in accordance with the requirements of
this section, that such State or Indian tribe would otherwise
be eligible to receive under this section in 1 or more later
years. Allowances withheld pursuant to this subsection shall
be distributed among the remaining States or Indian tribes
ratably in accordance with the formula in subsection (c) in
the case of allowances withheld from a State, or in
accordance with subsection (d) in the case of allowances
withheld from an Indian tribe.

Subpart B--Public Health and Climate Change

SEC. 461. SENSE OF CONGRESS ON PUBLIC HEALTH AND CLIMATE
CHANGE.

It is the sense of the Congress that the Federal
Government, in cooperation with international, State, tribal,
and local governments, concerned public and private
organizations, and citizens, should use all practicable means
and measures--
(1) to assist the efforts of public health and health care
professionals, first responders, States, tribes,
municipalities, and local communities to incorporate measures
to prepare health systems to respond to the impacts of
climate change;
(2) to ensure--
(A) that the Nation's health professionals have sufficient
information to prepare for and respond to the adverse health
impacts of climate change;
(B) the utility and value of scientific research in
advancing understanding of--
(i) the health impacts of climate change; and
(ii) strategies to prepare for and respond to the health
impacts of climate change;
(C) the identification of communities vulnerable to the
health effects of climate change and the development of
strategic response plans to be carried out by health
professionals for those communities;
(D) the improvement of health status and health equity
through efforts to prepare for and respond to climate change;
and
(E) the inclusion of health policy in the development of
climate change responses;
(3) to encourage further research, interdisciplinary
partnership, and collaboration among stakeholders in order
to--
(A) understand and monitor the health impacts of climate
change; and
(B) improve public health knowledge and response strategies
to climate change;
(4) to enhance preparedness activities, and public health
infrastructure, relating to climate change and health;
(5) to encourage each and every American to learn about the
impacts of climate change on health; and
(6) to assist the efforts of developing nations to
incorporate measures to prepare health systems to respond to
the impacts of climate change.

SEC. 462. RELATIONSHIP TO OTHER LAWS.

Nothing in this subpart in any manner limits the authority
provided to or responsibility conferred on any Federal
department or agency by any provision of any law (including
regulations) or authorizes any violation of any provision of
any law (including regulations), including any health,
energy, environmental, transportation, or any other law or
regulation.

SEC. 463. NATIONAL STRATEGIC ACTION PLAN.

(a) Requirement.--
(1) In general.--The Secretary of Health and Human
Services, within 2 years after the date of the enactment of
this Act, on the basis of the best available science, and in
consultation pursuant to paragraph (2), shall publish a
strategic action plan to assist health professionals in
preparing for and responding to the impacts of climate change
on public health in the United States and other nations,
particularly developing nations.
(2) Consultation.--In developing or making any revision to
the national strategic action plan, the Secretary shall--
(A) consult with the Director of the Centers for Disease
Control and Prevention, the Administrator of the
Environmental Protection Agency, the Director of the National
Institutes of Health, the Secretary of Energy, other
appropriate Federal agencies, Indian tribes, State and local
governments, public health organizations, scientists, and
other interested stakeholders; and
(B) provide opportunity for public input.
(b) Contents.--
(1) In general.--The Secretary, acting through the Director
of the Centers for Disease Control and Prevention and other
appropriate Federal agencies, shall assist health
professionals in preparing for and responding effectively and
efficiently to the health effects of climate change through
measures including--
(A) developing, improving, integrating, and maintaining
domestic and international disease surveillance systems and
monitoring capacity to respond to health-related effects of
climate change, including on topics addressing--
(i) water, food, and vector borne infectious diseases and
climate change;
(ii) pulmonary effects, including responses to
aeroallergens;
(iii) cardiovascular effects, including impacts of
temperature extremes;
(iv) air pollution health effects, including heightened
sensitivity to air pollution;
(v) hazardous algal blooms;
(vi) mental and behavioral health impacts of climate
change;
(vii) the health of refugees, displaced persons, and
vulnerable communities;
(viii) the implications for communities vulnerable to
health effects of climate change, as well as strategies for
responding to climate change within these communities; and
(ix) local and community-based health interventions for
climate-related health impacts;
(B) creating tools for predicting and monitoring the public
health effects of climate change on the international,
national, regional, State, and local levels, and providing
technical support to assist in their implementation;
(C) developing public health communications strategies and
interventions for extreme weather events and disaster
response situations;
(D) identifying and prioritizing communities and
populations vulnerable to the health effects of climate
change, and determining actions and communication strategies
that should be taken to inform and protect these communities
and populations from the health effects of climate change;
(E) developing health communication, public education, and
outreach programs aimed at public health and health care
professionals, as well as the general public, to promote
preparedness and response strategies relating to climate
change and public health, including the identification of
greenhouse gas reduction behaviors that are health-promoting;
and
(F) developing academic and regional centers of excellence
devoted to--
(i) researching relationships between climate change and
health;
(ii) expanding and training the public health workforce to
strengthen the capacity of such workforce to respond to and
prepare for the health effects of climate change;
(iii) creating and supporting academic fellowships focusing
on the health effects of climate change; and
(iv) training senior health ministry officials from
developing nations to strengthen the capacity of such nations
to--

(I) prepare for and respond to the health effects of
climate change; and
(II) build an international network of public health
professionals with the necessary climate change knowledge
base;

(G) using techniques, including health impact assessments,
to assess various climate change public health preparedness
and response strategies on international, national, State,
regional, tribal, and local levels, and make recommendations
as to those strategies that best protect the public health;
(H)(i) assisting in the development, implementation, and
support of State, regional, tribal, and local preparedness,
communication, and response plans (including with respect to
the health departments of such entities) to anticipate and
reduce the health threats of climate change; and
(ii) pursuing collaborative efforts to develop, integrate,
and implement such plans;
(I) creating a program to advance research as it relates to
the effects of climate change on public health across Federal
agencies, including research to--
(i) identify and assess climate change health effects
preparedness and response strategies;
(ii) prioritize critical public health infrastructure
projects related to potential climate change impacts that
affect public health; and
(iii) coordinate preparedness for climate change health
impacts, including the development of modeling and
forecasting tools;
(J) providing technical assistance for the development,
implementation, and support of preparedness and response
plans to anticipate and reduce the health threats of climate
change in developing nations; and

[[Page H7607]]

(K) carrying out other activities determined appropriate by
the Secretary to plan for and respond to the impacts of
climate change on public health.
(c) Revision.--The Secretary shall revise the national
strategic action plan not later than July 1, 2014, and every
4 years thereafter, to reflect new information collected
pursuant to implementation of the national strategic action
plan and otherwise, including information on--
(1) the status of critical environmental health parameters
and related human health impacts;
(2) the impacts of climate change on public health; and
(3) advances in the development of strategies for preparing
for and responding to the impacts of climate change on public
health.
(d) Implementation.--
(1) Implementation through hhs.--The Secretary shall
exercise the Secretary's authority under this subpart and
other provisions of Federal law to achieve the goals and
measures of the national strategic action plan.
(2) Other public health programs and initiatives.--The
Secretary and Federal officials of other relevant Federal
agencies shall administer public health programs and
initiatives authorized by provisions of law other than this
subpart, subject to the requirements of such statutes, in a
manner designed to achieve the goals of the national
strategic action plan.
(3) CDC.--In furtherance of the national strategic action
plan, the Secretary, acting through the Director of the
Centers for Disease Control and Prevention and the head of
any other appropriate Federal agency, shall--
(A) conduct scientific research to assist health
professionals in preparing for and responding to the impacts
of climate change on public health; and
(B) provide funding for--
(i) research on the health effects of climate change; and
(ii) preparedness planning on the international, national,
State, tribal, regional, and local levels to respond to or
reduce the burden of health effects of climate change; and
(C) carry out other activities determined appropriate by
the Director or the head of such agency to prepare for and
respond to the impacts of climate change on public health.

SEC. 464. ADVISORY BOARD.

(a) Establishment.--The Secretary shall establish a
permanent science advisory board comprised of not less than
10 and not more than 20 members.
(b) Appointment of Members.--The Secretary shall appoint
the members of the science advisory board from among
individuals--
(1) who have expertise in public health and human services,
climate change, and other relevant disciplines; and
(2) at least \1/2\ of whom are recommended by the President
of the National Academy of Sciences.
(c) Functions.--The science advisory board shall--
(1) provide scientific and technical advice and
recommendations to the Secretary on the domestic and
international impacts of climate change on public health,
populations and regions particularly vulnerable to the
effects of climate change, and strategies and mechanisms to
prepare for and respond to the impacts of climate change on
public health; and
(2) advise the Secretary regarding the best science
available for purposes of issuing the national strategic
action plan.

SEC. 465. REPORTS.

(a) Needs Assessment.--
(1) In general.--The Secretary shall seek to enter into, by
not later than 6 months after the date of the enactment of
this Act, an agreement with the National Research Council and
the Institute of Medicine to complete a report that--
(A) assesses the needs for health professionals to prepare
for and respond to climate change impacts on public health;
and
(B) recommends programs to meet those needs.
(2) Submission.--The agreement under paragraph (1) shall
require the completed report to be submitted to the Congress
and the Secretary and made publicly available not later than
1 year after the date of the agreement.
(b) Climate Change Health Protection and Promotion
Reports.--
(1) In general.--The Secretary, in consultation with the
advisory board established under section 464, shall ensure
the issuance of reports to aid health professionals in
preparing for and responding to the adverse health effects of
climate change that--
(A) review scientific developments on health impacts of
climate change; and
(B) recommend changes to the national strategic action
plan.
(2) Submission.--The Secretary shall submit the reports
required by paragraph (1) to the Congress and make such
reports publicly available not later than July 1, 2013, and
every 4 years thereafter.

SEC. 466. DEFINITIONS.

In this subpart:
(1) Health impact assessment.--The term ``health impact
assessment'' means a combination of procedures, methods, and
tools by which a policy, program, or project may be judged as
to its potential effects on the health of a population, and
the distribution of those effects within the population.
(2) National strategic action plan.--The term ``national
strategic action plan'' means the plan issued and revised
under section 463.
(3) Secretary.--Unless otherwise specified, the term
``Secretary'' means the Secretary of Health and Human
Services.

SEC. 467. CLIMATE CHANGE HEALTH PROTECTION AND PROMOTION
FUND.

(a) Establishment of Fund.--Subject to subtitle F of title
IV, there is hereby established in the Treasury a separate
account that shall be known as the Climate Change Health
Protection and Promotion Fund.
(b) Availability of Amounts.--Subject to Subtitle F of
title IV, all amounts deposited into the Climate Change
Health Protection and Promotion Fund shall be available to
the Secretary to carry out this subpart subject to further
appropriation.
(c) Distribution of Funds by HHS.--In carrying out this
subpart, the Secretary may make funds deposited in the
Climate Change Health Protection and Promotion Fund available
to--
(1) other departments, agencies, and offices of the Federal
Government;
(2) foreign, State, tribal, and local governments; and
(3) such other entities as the Secretary determines
appropriate.
(d) Supplement, Not Replace.--It is the intent of Congress
that funds made available to carry out this subpart should be
used to supplement, and not replace, existing sources of
funding for public health.

Subpart C--Natural Resource Adaptation

SEC. 471. PURPOSES.

The purposes of this subpart are to--
(1) establish an integrated Federal program to protect,
restore, and conserve the Nation's natural resources in
response to the threats of climate change and ocean
acidification; and
(2) provide financial support and incentives for programs,
strategies, and activities that protect, restore, and
conserve the Nation's natural resources in response to the
threats of climate change and ocean acidification.

SEC. 472. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION POLICY.

It is the policy of the Federal Government, in cooperation
with State and local governments, Indian tribes, and other
interested stakeholders to use all practicable means and
measures to protect, restore, and conserve natural resources
to enable them to become more resilient, adapt to, and
withstand the impacts of climate change and ocean
acidification.

SEC. 473. DEFINITIONS.

In this subpart:
(1) Coastal state.--The term ``coastal State'' has the
meaning given the term in section 304 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1453).
(2) Corridors.--The term ``corridors'' means areas that
provide connectivity, over different time scales (including
seasonal or longer), of habitat or potential habitat and that
facilitate the ability of terrestrial, marine, estuarine, and
freshwater fish, wildlife, or plants to move within a
landscape as needed for migration, gene flow, or dispersal,
or in response to the impacts of climate change and ocean
acidification or other impacts.
(3) Ecological processes.--The term ``ecological
processes'' means biological, chemical, or physical
interaction between the biotic and abiotic components of an
ecosystem and includes--
(A) nutrient cycling;
(B) pollination;
(C) predator-prey relationships;
(D) soil formation;
(E) gene flow;
(F) disease epizootiology;
(G) larval dispersal and settlement;
(H) hydrological cycling;
(I) decomposition; and
(J) disturbance regimes such as fire and flooding.
(4) Habitat.--The term ``habitat'' means the physical,
chemical, and biological properties that are used by fish,
wildlife, or plants for growth, reproduction, survival, food,
water, and cover, on a tract of land, in a body of water, or
in an area or region.
(5) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(6) Natural resources.--The term ``natural resources''
means the terrestrial, freshwater, estuarine, and marine
fish, wildlife, plants, land, water, habitats, and ecosystems
of the United States.
(7) Natural resources adaptation.--The term ``natural
resources adaptation'' means the protection, restoration, and
conservation of natural resources to enable them to become
more resilient, adapt to, and withstand the impacts of
climate change and ocean acidification.
(8) Resilience.--Each of the terms ``resilience'' and
``resilient'' means the ability to resist or recover from
disturbance and preserve diversity, productivity, and
sustainability.
(9) State.--The term ``State'' means--
(A) a State of the United States;
(B) the District of Columbia; and
(C) the Commonwealth of Puerto Rico, Guam, the United
States Virgin Islands, the Northern Mariana Islands, and
American Samoa.

[[Page H7608]]

SEC. 474. COUNCIL ON ENVIRONMENTAL QUALITY.

The Chair of the Council on Environmental Quality shall--
(1) advise the President on implementation and development
of--
(A) a Natural Resources Climate Change Adaptation Strategy
required under section 476; and
(B) Federal natural resource agency adaptation plans
required under section 478;
(2) serve as the Chair of the Natural Resources Climate
Change Adaptation Panel established under section 475; and
(3) coordinate Federal agency strategies, plans, programs,
and activities related to protecting, restoring, and
maintaining natural resources to become more resilient, adapt
to, and withstand the impacts of climate change and ocean
acidification.

SEC. 475. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION PANEL.

(a) Establishment.--Not later than 90 days after the date
of the enactment of this subpart, the President shall
establish a Natural Resources Climate Change Adaptation
Panel, consisting of--
(1) the head, or their designee, of each of--
(A) the National Oceanic and Atmospheric Administration;
(B) the Forest Service;
(C) the National Park Service;
(D) the United States Fish and Wildlife Service;
(E) the Bureau of Land Management;
(F) the United States Geological Survey;
(G) the Bureau of Reclamation;
(H) the Bureau of Indian Affairs;
(I) the Environmental Protection Agency; and
(J) the Army Corps of Engineers;
(2) the Chair of the Council on Environmental Quality; and
(3) the heads of such other Federal agencies or departments
with jurisdiction over natural resources of the United
States, as determined by the President.
(b) Functions.--The Panel shall serve as a forum for
interagency consultation on and the coordination of the
development and implementation of a national Natural
Resources Climate Change Adaptation Strategy required under
section 476.
(c) Chair.--The Chair of the Council on Environmental
Quality shall serve as the Chair of the Panel.

SEC. 476. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION
STRATEGY.

(a) In General.--Not later than one year after the date of
the enactment of this subpart, the President, through the
Natural Resources Climate Change Adaptation Panel established
under section 475, shall develop a Natural Resources Climate
Change Adaptation Strategy to protect, restore, and conserve
natural resources to enable them to become more resilient,
adapt to, and withstand the impacts of climate change and
ocean acidification and to identify opportunities to mitigate
those impacts.
(b) Development and Revision.--In developing and revising
the Strategy, the Panel shall--
(1) base the strategy on the best available science;
(2) develop the strategy in close cooperation with States
and Indian tribes;
(3) coordinate with other Federal agencies as appropriate;
(4) consult with local governments, conservation
organizations, scientists, and other interested stakeholders;
(5) provide public notice and opportunity for comment; and
(6) review and revise the Strategy every 5 years to
incorporate new information regarding the impacts of climate
change and ocean acidification on natural resources and
advances in the development of strategies for becoming more
resilient and adapting to those impacts.
(c) Contents.--The National Resources Adaptation Strategy
shall include--
(1) an assessment of the vulnerability of natural resources
to climate change and ocean acidification, including the
short-term, medium-term, long-term, cumulative, and
synergistic impacts;
(2) a description of current research, observation, and
monitoring activities at the Federal, State, tribal, and
local level related to the impacts of climate change and
ocean acidification on natural resources, as well as
identification of research and data needs and priorities;
(3) identification of natural resources that are likely to
have the greatest need for protection, restoration, and
conservation because of the adverse effects of climate change
and ocean acidification;
(4) specific protocols for integrating climate change and
ocean acidification adaptation strategies and activities into
the conservation and management of natural resources by
Federal departments and agencies to ensure consistency across
agency jurisdictions and resources;
(5) specific actions that Federal departments and agencies
shall take to protect, conserve, and restore natural
resources to become more resilient, adapt to, and withstand
the impacts of climate change and ocean acidification,
including a timeline to implement those actions;
(6) specific mechanisms for ensuring communication and
coordination among Federal departments and agencies, and
between Federal departments and agencies and State natural
resource agencies, United States territories, Indian tribes,
private landowners, conservation organizations, and other
nations that share jurisdiction over natural resources with
the United States;
(7) specific actions to develop and implement consistent
natural resources inventory and monitoring protocols through
interagency coordination and collaboration; and
(8) a process for guiding the development of detailed
agency- and department-specific adaptation plans required
under section 478 to address the impacts of climate change
and ocean acidification on the natural resources in the
jurisdiction of each agency.
(d) Implementation.--Consistent with its authorities under
other laws and with Federal trust responsibilities with
respect to Indian lands, each Federal department or agency
with representation on the National Resources Climate Change
Adaptation Panel shall consider the impacts of climate change
and ocean acidification and integrate the elements of the
strategy into agency plans, environmental reviews, programs,
and activities related to the conservation, restoration, and
management of natural resources.

SEC. 477. NATURAL RESOURCES ADAPTATION SCIENCE AND
INFORMATION.

(a) Coordination.--Not later than 90 days after the date of
the enactment of this subpart, the Secretary of Commerce,
acting through the Administrator of the National Oceanic and
Atmospheric Administration, and the Secretary of the
Interior, acting through the Director of the United States
Geological Survey, shall establish a coordinated process for
developing and providing science and information needed to
assess and address the impacts of climate change and ocean
acidification on natural resources. The process shall be led
by the National Climate Change and Wildlife Science Center
established within the United States Geological Survey under
subsection (d) and the National Climate Service of the
National Oceanic and Atmospheric Administration.
(b) Functions.--The Secretaries shall ensure that such
process avoids duplication and that the National Oceanic and
Atmospheric Administration and the United States Geological
Survey shall--
(1) provide technical assistance to Federal departments and
agencies, State and local governments, Indian tribes, and
interested private landowners in their efforts to assess and
address the impacts of climate change and ocean acidification
on natural resources;
(2) conduct and sponsor research and provide Federal
departments and agencies, State and local governments, Indian
tribes, and interested private landowners with research
products, decision and monitoring tools and information, to
develop strategies for assisting natural resources to become
more resilient, adapt to, and withstand the impacts of
climate change and ocean acidification; and
(3) assist Federal departments and agencies in the
development of the adaptation plans required under section
478.
(c) Survey.--Not later than one year after the date of
enactment of this subpart and every 5 years thereafter, the
Secretary of Commerce and the Secretary of the Interior shall
undertake a climate change and ocean acidification impact
survey that--
(1) identifies natural resources considered likely to be
adversely affected by climate change and ocean acidification;
(2) includes baseline monitoring and ongoing trend
analysis;
(3) uses a stakeholder process to identify and prioritize
needed monitoring and research that is of greatest relevance
to the ongoing needs of natural resource managers to address
the impacts of climate change and ocean acidification; and
(4) identifies decision tools necessary to develop
strategies for assisting natural resources to become more
resilient and adapt to and withstand the impacts of climate
change and ocean acidification.
(d) National Climate Change and Wildlife Science Center.--
(1) Establishment.--The Secretary of the Interior shall
establish the National Climate Change and Wildlife Science
Center within the United States Geological Survey.
(2) Functions.--The Center shall, in collaboration with
Federal and State natural resources agencies and departments,
Indian tribes, universities, and other partner
organizations--
(A) assess and synthesize current physical and biological
knowledge and prioritize scientific gaps in such knowledge in
order to forecast the ecological impacts of climate change on
fish and wildlife at the ecosystem, habitat, community,
population, and species levels;
(B) develop and improve tools to identify, evaluate, and,
where appropriate, link scientific approaches and models for
forecasting the impacts of climate change and adaptation on
fish, wildlife, plants, and their habitats, including
monitoring, predictive models, vulnerability analyses, risk
assessments, and decision support systems to help managers
make informed decisions;
(C) develop and evaluate tools to adaptively manage and
monitor the effects of climate change on fish and wildlife at
national, regional, and local scales; and
(D) develop capacities for sharing standardized data and
the synthesis of such data.
(e) Science Advisory Board.--
(1) Establishment.--Not later than 180 days after the date
of enactment of this subpart, the Secretary of Commerce and
the Secretary of the Interior shall establish and appoint the
members of a Science Advisory Board, to be comprised of not
fewer than 10 and not more than 20 members--

[[Page H7609]]

(A) who have expertise in fish, wildlife, plant, aquatic,
and coastal and marine biology, ecology, climate change,
ocean acidification, and other relevant scientific
disciplines;
(B) who represent a balanced membership among Federal,
State, Indian tribes, and local representatives,
universities, and conservation organizations; and
(C) at least \1/2\ of whom are recommended by the President
of the National Academy of Sciences.
(2) Duties.--The Science Advisory Board shall--
(A) advise the Secretaries on the state-of-the-science
regarding the impacts of climate change and ocean
acidification on natural resources and scientific strategies
and mechanisms for protecting, restoring, and conserving
natural resources to enable them to become more resilient,
adapt to, and withstand the impacts of climate change and
ocean acidification; and
(B) identify and recommend priorities for ongoing research
needs on such issues.
(3) Collaboration.--The Science Advisory Board shall
collaborate with other climate change and ecosystem research
entities in other Federal agencies and departments.
(4) Availability to the public.--The advice and
recommendations of the Science Advisory Board shall be made
available to the public.

SEC. 478. FEDERAL NATURAL RESOURCE AGENCY ADAPTATION PLANS.

(a) Development.--Not later than 1 year after the date of
the development of a Natural Resources Climate Change
Adaptation Strategy under section 476, each department or
agency that has a representative on the Natural Resources
Climate Change Adaptation Panel established under section 475
shall--
(1) complete an adaptation plan for that department or
agency, respectively, implementing the Natural Resources
Climate Change Adaptation Strategy under section 476 and
consistent with the Natural Resources Climate Change
Adaptation Policy under section 472, detailing the
department's or agency's current and projected efforts to
address the potential impacts of climate change and ocean
acidification on natural resources within the department's or
agency's jurisdiction and necessary additional actions,
including a timeline for implementation of those actions;
(2) provide opportunities for review and comment on that
adaptation plan by the public, including in the case of a
plan by the Bureau of Indian Affairs, review by Indian
tribes; and
(3) submit such plan to the President for approval.
(b) Review by President and Submission to Congress.--
(1) Review by president.--The President shall--
(A) approve an adaptation plan submitted under subsection
(a)(3) if the plan meets the requirements of subsection (c)
and is consistent with the strategy developed under section
476;
(B) decide whether to approve the plan within 60 days after
submission; and
(C) if the President disapproves a plan, direct the
department or agency to submit a revised plan to the
President under subsection (a)(3) within 60 days after such
disapproval.
(2) Submission to congress.--Not later than 30 days after
the date of approval of such adaptation plan by the
President, the department or agency shall submit the approved
plan to the Committee on Natural Resources of the House of
Representatives, the Committee on Energy and Natural
Resources of the Senate, and the committees of the House of
Representatives and the Senate with principal jurisdiction
over the department or agency.
(c) Requirements.--Each adaptation plan shall--
(1) establish programs for assessing the current and future
impacts of climate change and ocean acidification on natural
resources within the department's or agency's, respectively,
jurisdiction, including cumulative and synergistic effects,
and for identifying and monitoring those natural resources
that are likely to be adversely affected and that have need
for conservation;
(2) identify and prioritize the department's or agency's
strategies and specific conservation actions to address the
current and future impacts of climate change and ocean
acidification on natural resources within the scope of the
department's or agency's jurisdiction and to develop and
implement strategies to protect, restore, and conserve such
resources to become more resilient, adapt to, and better
withstand those impacts, including--
(A) the protection, restoration, and conservation of
terrestrial, marine, estuarine, and freshwater habitats and
ecosystems;
(B) the establishment of terrestrial, marine, estuarine,
and freshwater habitat linkages and corridors;
(C) the restoration and conservation of ecological
processes;
(D) the protection of a broad diversity of native species
of fish, wildlife, and plant populations across their range;
and
(E) the protection of fish, wildlife, and plant health,
recognizing that climate can alter the distribution and
ecology of parasites, pathogens, and vectors;
(3) describe how the department or agency will integrate
such strategies and conservation activities into plans,
programs, activities, and actions of the department or
agency, related to the conservation and management of natural
resources and establish new plans, programs, activities, and
actions as necessary;
(4) establish methods for assessing the effectiveness of
strategies and conservation actions taken to protect,
restore, and conserve natural resources to enable them to
become more resilient, adapt to, and withstand the impacts of
climate change and ocean acidification, and for updating
those strategies and actions to respond to new information
and changing conditions;
(5) include a description of current and proposed
mechanisms to enhance cooperation and coordination of natural
resources adaptation efforts with other Federal agencies,
State and local governments, Indian tribes, and
nongovernmental stakeholders;
(6) include specific written guidance to resource managers
to--
(A) explain how managers are expected to address the
effects of climate change and ocean acidification;
(B) identify how managers are to obtain any site-specific
information that may be necessary; and
(C) reflect best practices shared among relevant agencies,
while also recognizing the unique missions, objectives, and
responsibilities of each agency; and
(7) identify and assess data and information gaps necessary
to develop natural resources adaptation plans and strategies.
(d) Implementation.--
(1) In general.--Upon approval by the President, each
department or agency that serves on the Natural Resources
Climate Change Adaptation Panel shall implement its
adaptation plan through existing and new plans, policies,
programs, activities, and actions to the extent not
inconsistent with existing authority.
(2) Consideration of impacts.--
(A) In general.--To the maximum extent practicable and
consistent with applicable law, every natural resource
management decision made by the department or agency shall
consider the impacts of climate change and ocean
acidification on those natural resources.
(B) Guidance.--The Council on Environmental Quality shall
issue guidance for Federal departments and agencies for
considering those impacts.
(e) Revision and Review.--Not less than every 5 years, each
adaptation plan under this section shall be reviewed and
revised to incorporate the best available science and other
information regarding the impacts of climate change and ocean
acidification on natural resources.

SEC. 479. STATE NATURAL RESOURCES ADAPTATION PLANS.

(a) Requirement.--In order to be eligible for funds under
section 480, not later than 1 year after the development of a
Natural Resources Climate Change Adaptation Strategy required
under section 476 each State shall prepare a State natural
resources adaptation plan detailing the State's current and
projected efforts to address the potential impacts of climate
change and ocean acidification on natural resources and
coastal areas within the State's jurisdiction.
(b) Review or Approval.--
(1) In general.--Each State adaptation plan shall be
reviewed and approved or disapproved by the Secretary of the
Interior and, as applicable, the Secretary of Commerce. Such
approval shall be granted if the plan meets the requirements
of subsection (c) and is consistent with the Natural
Resources Climate Change Adaptation Strategy required under
section 476.
(2) Approval or disapproval.--Within 180 days after
transmittal of such a plan, or a revision to such a plan, the
Secretary of the Interior and, as applicable, the Secretary
of Commerce shall approve or disapprove the plan by written
notice.
(3) Resubmittal.--Within 90 days after transmittal of a
resubmitted adaptation plan as a result of disapproval under
paragraph (3), the Secretary of the Interior and, as
applicable, the Secretary of Commerce, shall approve or
disapprove the plan by written notice.
(c) Contents.--A State natural resources adaptation plan
shall--
(1) include a strategy for addressing the impacts of
climate change and ocean acidification on terrestrial,
marine, estuarine, and freshwater fish, wildlife, plants,
habitats, ecosystems, wildlife health, and ecological
processes, that--
(A) describes the impacts of climate change and ocean
acidification on the diversity and health of the fish,
wildlife and plant populations, habitats, ecosystems, and
associated ecological processes;
(B) establishes programs for monitoring the impacts of
climate change and ocean acidification on fish, wildlife, and
plant populations, habitats, ecosystems, and associated
ecological processes;
(C) describes and prioritizes proposed conservation actions
to assist fish, wildlife, plant populations, habitats,
ecosystems, and associated ecological processes in becoming
more resilient, adapting to, and better withstanding those
impacts;
(D) includes strategies, specific conservation actions, and
a time frame for implementing conservation actions for fish,
wildlife, and plant populations, habitats, ecosystems, and
associated ecological processes;
(E) establishes methods for assessing the effectiveness of
strategies and conservation actions taken to assist fish,
wildlife, and plant populations, habitats, ecosystems, and
associated ecological processes in becoming

[[Page H7610]]

more resilient, adapt to, and better withstand the impacts of
climate changes and ocean acidification and for updating
those strategies and actions to respond appropriately to new
information or changing conditions;
(F) is incorporated into a revision of the State wildlife
action plan (also known as the State comprehensive wildlife
strategy)--
(i) that has been submitted to the United States Fish and
Wildlife Service; and
(ii) that has been approved by the Service or on which a
decision on approval is pending; and
(G) is developed--
(i) with the participation of the State fish and wildlife
agency, the State coastal agency, the State agency
responsible for administration of Land and Water Conservation
Fund grants, the State Forest Legacy program coordinator, and
other State agencies considered appropriate by the Governor
of such State; and
(ii) in coordination with the Secretary of the Interior,
and where applicable, the Secretary of Commerce and other
States that share jurisdiction over natural resources with
the State; and
(2) include, in the case of a coastal State, a strategy for
addressing the impacts of climate change and ocean
acidification on the coastal zone that--
(A) identifies natural resources that are likely to be
impacted by climate change and ocean acidification and
describes those impacts;
(B) identifies and prioritizes continuing research and data
collection needed to address those impacts including--
(i) acquisition of high resolution coastal elevation and
nearshore bathymetry data;
(ii) historic shoreline position maps, erosion rates, and
inventories of shoreline features and structures;
(iii) measures and models of relative rates of sea level
rise or lake level changes, including effects on flooding,
storm surge, inundation, and coastal geological processes;
(iv) habitat loss, including projected losses of coastal
wetlands and potentials for inland migration of natural
shoreline habitats;
(v) ocean and coastal species and ecosystem migrations, and
changes in species population dynamics;
(vi) changes in storm frequency, intensity, or rainfall
patterns;
(vii) saltwater intrusion into coastal rivers and aquifers;
(viii) changes in chemical or physical characteristics of
marine and estuarine systems;
(ix) increased harmful algal blooms; and
(x) spread of invasive species;
(C) identifies and prioritizes adaptation strategies to
protect, restore, and conserve natural resources to enable
them to become more resilient, adapt to, and withstand the
impacts of climate change and ocean acidification,
including--
(i) protection, maintenance, and restoration of
ecologically important coastal lands, coastal and ocean
ecosystems, and species biodiversity and the establishment of
habitat buffer zones, migration corridors, and climate
refugia; and
(ii) improved planning, siting policies, and hazard
mitigation strategies;
(D) establishes programs for the long-term monitoring of
the impacts of climate change and ocean acidification on the
ocean and coastal zone and to assess and adjust, when
necessary, such adaptive management strategies;
(E) establishes performance measures for assessing the
effectiveness of adaptation strategies intended to improve
resilience and the ability of natural resources in the
coastal zone to adapt to and withstand the impacts of climate
change and ocean acidification and of adaptation strategies
intended to minimize those impacts on the coastal zone and to
update those strategies to respond to new information or
changing conditions; and
(F) is developed with the participation of the State
coastal agency and other appropriate State agencies and in
coordination with the Secretary of Commerce and other
appropriate Federal agencies.
(d) Public Input.--States shall provide for solicitation
and consideration of public and independent scientific input
in the development of their plans.
(e) Coordination With Other Plans.--The State plan shall
take into consideration research and information contained
in, and coordinate with and integrate the goals and measures
identified in, as appropriate, other natural resources
conservation strategies, including--
(1) the national fish habitat action plan;
(2) plans under the North American Wetlands Conservation
Act (16 U.S.C. 4401 et seq.);
(3) the Federal, State, and local partnership known as
``Partners in Flight'';
(4) federally approved coastal zone management plans under
the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et
seq.);
(5) federally approved regional fishery management plants
and habitat conservation activities under the Magnuson-
Stevens Fishery Conservation and Management Act (16 U.S.C.
1801 et seq.);
(6) the national coral reef action plan;
(7) recovery plans for threatened species and endangered
species under section 4(f) of the Endangered Species Act of
1973 (16 U.S.C. 1533(f));
(8) habitat conservation plans under section 10 of that Act
(16 U.S.C. 1539);
(9) other Federal, State, and tribal plans for imperiled
species;
(10) State or tribal hazard mitigation plans;
(11) State or tribal water management plans; and
(12) other State-based strategies that comprehensively
implement adaptation activities to remediate the effects of
climate change and ocean acidification on terrestrial,
marine, and freshwater fish, wildlife, plants, and other
natural resources.
(f) Updating.--Each State plan shall be updated not less
than every 5 years.
(g) Funding.--
(1) In general.--Funds allocated to States under section
480 shall be used only for activities that are consistent
with a State natural resources adaptation plan that has been
approved by the Secretaries of Interior and Commerce.
(2) Funding prior to the approval of a state plan.--Until
the earlier of the date that is 3 years after the date of the
enactment of this subpart or the date on which a State
receives approval for the State strategy, a State shall be
eligible to receive funding under section 480 for adaptation
activities that are--
(A) consistent with the comprehensive wildlife strategy of
the State and, where appropriate, other natural resources
conservation strategies; and
(B) in accordance with a workplan developed in coordination
with--
(i) the Secretary of the Interior; and
(ii) the Secretary of Commerce, for any coastal State
subject to the condition that coordination with the Secretary
of Commerce shall be required only for those portions of the
strategy relating to activities affecting the coastal zone.
(3) Pending approval.--During the period for which approval
by the applicable Secretary of a State plan is pending, the
State may continue receiving funds under section 480 pursuant
to the workplan described in paragraph (2)(B).

SEC. 480. NATURAL RESOURCES CLIMATE CHANGE ADAPTATION FUND.

(a) Allocations to States.--100 percent of the emission
allowances made available for each year to carry out this
subpart shall be provided to States to carry out natural
resources adaptation activities in accordance with State
natural resources adaptation plans approved under section
479. Specifically--
(1) 84.4 percent shall be available to State wildlife
agencies in accordance with the apportionment formula
established under the second subsection (c) of section 4 of
the Pittman-Robertson Wildlife Restoration Act (16 U.S.C.
669c), as added by section 902(e) of H.R. 5548 as introduced
in the 106th Congress and enacted into law by section 1(a)(2)
of Public Law 106-553 (114 Stat. 2762A-119); and
(2) 15.6 percent shall be available to State coastal
agencies pursuant to the formula established by the Secretary
of Commerce under section 306(c) of the Coastal Management
Act of 1972 (16 U.S.C. 1455(c)).
(b) Establishment of Fund.--
(1) Establishment.--Subject to Subtitle F of title IV,
there is hereby established in the Treasury a separate
account that shall be known as the Natural Resources Climate
Change Adaptation Fund.
(2) Authorization of appropriations.--Subject to Subtitle F
of this title IV, there are authorized to be appropriated for
subsection (c) such sums as are deposited in the Natural
Resources Climate Change Fund, and the amounts appropriated
for subsection (c) shall be no less than the total estimated
annual deposits in the Natural Resources Climate Change
Adaptation Fund.
(c) Allocations to Federal Agencies.--
(1) Department of the interior.--Of the amounts made
available for each fiscal year to carry out this subpart--
(A) 27.6 percent shall be allocated to the Secretary of the
Interior for use in funding--
(i) natural resources adaptation activities carried out--

(I) under endangered species, migratory species, and other
fish and wildlife programs administered by the National Park
Service, the United States Fish and Wildlife Service, the
Bureau of Indian Affairs, and the Bureau of Land Management;
(II) on wildlife refuges, National Park Service land, and
other public land under the jurisdiction of the United States
Fish and Wildlife Service, the Bureau of Land Management, the
Bureau of Indian Affairs, or the National Park Service; or
(III) within Federal water managed by the Bureau of
Reclamation and the National Park Service; and

(ii) for the implementation of the National Fish and
Wildlife Habitat and Corridors Identification Program
pursuant to section 481;
(B) 8.1 percent shall be allocated to the Secretary of the
Interior for natural resources adaptation activities carried
out under cooperative grant programs, including--
(i) the cooperative endangered species conservation fund
authorized under section 6 of the Endangered Species Act of
1973 (16 U.S.C. 1535);
(ii) programs under the North American Wetlands
Conservation Act (16 U.S.C. 4401 et seq.);
(iii) the Neotropical Migratory Bird Conservation Fund
established by section 478(a) of the Neotropical Migratory
Bird Conservation Act (16 U.S.C. 6108(a));
(iv) the Coastal Program of the United States Fish and
Wildlife Service;
(v) the National Fish Habitat Action Plan;
(vi) the Partners for Fish and Wildlife Program;

[[Page H7611]]

(vii) the Landowner Incentive Program;
(viii) the Wildlife Without Borders Program of the United
States Fish and Wildlife Service; and
(ix) the Migratory Species Program and Park Flight
Migratory Bird Program of the National Park Service; and
(C) 4.9 percent shall be allocated to the Secretary of the
Interior to provide financial assistance to Indian tribes to
carry out natural resources adaptation activities through the
Tribal Wildlife Grants Program of the United States Fish and
Wildlife Service and in accordance with the Indian Self-
Determination and Educational Assistance Act (25 U.S.C.
450(f).
(2) Land and water conservation fund.--
(A) Deposits.--
(i) In general.--Of the amounts made available for each
fiscal year to carry out this subpart, 19.5 percent shall be
deposited into the Land and Water Conservation Fund
established under section 2 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-5).
(ii) Use of deposits.-- (I) Deposits into the Land and
Water Conservation Fund under this paragraph shall be
supplemental to authorizations provided under section 3 of
the Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l-6), which shall remain available for nonadaptation
needs.
(II) There are authorized to be appropriated for activities
in this subpart such sums as are deposited in the Land and
Water Conservation Fund pursuant to section 480(c)(3)(A)(ii),
and the amounts appropriated for this paragraph shall be no
less than the total estimated annual deposits in the Land and
Water Conservation Fund.
(B) Allocations.--Of the amounts deposited under this
paragraph into the Land and Water Conservation Fund--
(i) \1/6\ shall be allocated to the Secretary of the
Interior and made available on a competitive basis to carry
out natural resources adaptation activities through the
acquisition of land and interests in land under section 6 of
the Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l-8)--

(I) to States in accordance with their natural resources
adaptation plans, and to Indian tribes;
(II) notwithstanding section 5 of that Act (16 U.S.C. 460l-
7); and
(III) in addition to any funds provided pursuant to annual
appropriations Acts, the Energy Policy Act of 2005 (42 U.S.C.
15801 et seq.), or any other authorization for nonadaptation
needs;

(ii) \1/3\ shall be allocated to the Secretary of the
Interior to carry out natural resources adaptation activities
through the acquisition of lands and interests in land under
section 7 of the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460l-9);
(iii) \1/6\ shall be allocated to the Secretary of
Agriculture and made available to the States and Indian
tribes to carry out natural resources adaptation activities
through the acquisition of land and interests in land under
section 7 of the Forest Legacy Program under the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2103c); and
(iv) \1/3\ shall be allocated to the Secretary of
Agriculture to carry out natural resources adaptation
activities through the acquisition of land and interests in
land under section 7 of the Land and Water Conservation Fund
Act of 1965 (16 U.S.C. 460l-9).
(C) Expenditure of funds.--In allocating funds under
subparagraph (B), the Secretary of the Interior and the
Secretary of Agriculture shall take into consideration
factors including--
(i) the availability of non-Federal contributions from
State, local, or private sources;
(ii) opportunities to protect fish and wildlife corridors
or otherwise to link or consolidate fragmented habitats;
(iii) opportunities to reduce the risk of catastrophic
wildfires, drought, extreme flooding, or other climate-
related events that are harmful to fish and wildlife and
people; and
(iv) the potential for conservation of species or habitat
types at serious risk due to climate change, ocean
acidification, and other stressors.
(3) Forest service.--Of the amounts made available for each
fiscal year to carry out this subpart, 8.1 percent shall be
allocated to the Secretary of Agriculture for use in funding
natural resources adaptation activities carried out on
national forests and national grasslands under the
jurisdiction of the Forest Service and for natural resource
adaptation activities on state and private lands carried out
under the Cooperative Forestry Assistance Act of 1978.
(4) Department of commerce.--Of the amounts made available
for each fiscal year to carry out this subpart, 11.5 percent
shall be allocated to the Secretary of Commerce for use in
funding natural resources adaptation activities to protect,
maintain, and restore coastal, estuarine, and marine
resources, habitats, and ecosystems, including such
activities carried out under--
(A) the coastal and estuarine land conservation program;
(B) the community-based restoration program;
(C) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.), that are specifically designed to strengthen the
ability of coastal, estuarine, and marine resources,
habitats, and ecosystems to adapt to and withstand the
impacts of climate change and ocean acidification;
(D) the Open Rivers Initiative;
(E) the Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et seq.);
(F) the Marine Mammal Protection Act of 1972 (16 U.S.C.
1361 et seq.);
(G) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.);
(H) the Marine Protection, Research, and Sanctuaries Act of
1972 (33 U.S.C. 1401 et seq.);
(I) the Coral Reef Conservation Act of 2000 (16 U.S.C. 6401
et seq.); and
(J) the Estuary Restoration Act of 2000 (33 U.S.C. 2901 et
seq.).
(5) Environmental protection agency.--Of the amounts made
available each fiscal year to carry out this section, 12.2
percent shall be allocated to the Administrator for use in
natural resources adaptation activities restoring and
protecting--
(A) large-scale freshwater aquatic ecosystems, such as the
Everglades, the Great Lakes, Flathead Lake, the Missouri
River, the Mississippi River, the Colorado River, the
Sacramento-San Joaquin Rivers, the Ohio River, the Columbia-
Snake River System, the Apalachicola, Chattahoochee, and
Flint River System, the Connecticut River, and the
Yellowstone River;
(B) large-scale estuarine ecosystems, such as Chesapeake
Bay, Long Island Sound, Puget Sound, the Mississippi River
Delta, the San Francisco Bay Delta, Narragansett Bay, and
Albemarle-Pamlico Sound; and
(C) freshwater and estuarine ecosystems, watersheds, and
basins identified as priorities by the Administrator, working
in cooperation with other Federal agencies, States, Indian
tribes, local governments, scientists, and other conservation
partners.
(6) Corps of engineers.--Of the amounts made available each
fiscal year to carry out this section, 8.1 percent shall be
available to the Secretary of the Army for use by the Corps
of Engineers to carry out natural resources adaptation
activities restoring--
(A) large-scale freshwater aquatic ecosystems, such as the
ecosystems described in paragraph (5)(A);
(B) large-scale estuarine ecosystems, such as the
ecosystems described in paragraph (5)(B);
(C) freshwater and estuarine ecosystems, watersheds, and
basins identified as priorities by the Corps of Engineers,
working in cooperation with other Federal agencies, States,
Indian tribes, local governments, scientists, and other
conservation partners; and
(D) habitats and ecosystems through the implementation of
estuary habitat restoration projects authorized by the
Estuary Restoration Act of 2000 (33 U.S.C. 2901 et seq.),
project modifications for improvement of the environment,
aquatic restoration and protection projects authorized by
section 206 of the Water Resources Development Act of 1996
(33 U.S.C. 2330), and other appropriate programs and
activities.
(d) Use of Funds by Federal Departments and Agencies.--
Funds allocated to Federal departments and agencies under
this section shall only be used for natural resources
adaptation activities that are consistent with an adaptation
plan developed and approved by the President under section
478.
(e) State Cost Sharing.--Notwithstanding any other
provision of law, a State that receives a grant with amounts
allocated under this section shall use funds from non-Federal
sources to pay at least 10 percent of the costs of each
activity carried out using amounts provided under the grant.

SEC. 481. NATIONAL WILDLIFE HABITAT AND CORRIDORS INFORMATION
PROGRAM.

(a) Establishment.--Within 6 months of the date of
enactment of this subpart, the Secretary of the Interior, in
cooperation with the States and Indian tribes, shall
establish a National Fish and Wildlife Habitat and Corridors
Information Program in accordance with the requirements of
this section.
(b) Purpose.--The purpose of this program is to--
(1) support States and Indian tribes in the development of
a geographic information system database of fish and wildlife
habitat and corridors that would inform planning and
development decisions within each State and Indian tribe,
enable each State and Indian tribe to model climate impacts
and adaptation, and provide geographically specific
enhancements of State and tribal wildlife action plans;
(2) ensure the collaborative development, with the States
and Indian tribes, of a comprehensive, national geographic
information system database of maps, models, data, surveys,
informational products, and other geospatial information
regarding fish and wildlife habitat and corridors, that--
(A) is based on consistent protocols for sampling and
mapping across landscapes that take into account regional
differences; and
(B) that utilizes--
(i) existing and planned State- and tribal-based geographic
information system databases; and
(ii) existing databases, analytical tools, metadata
activities, and other information products available through
the National Biological Information Infrastructure maintained
by the Secretary and nongovernmental organizations; and
(3) facilitate the use of such databases by Federal, State,
local, and tribal decisionmakers to incorporate qualitative
information on fish and wildlife habitat and corridors at the
earliest possible stage to--

[[Page H7612]]

(A) prioritize and target natural resources adaptation
strategies and activities;
(B) avoid, minimize, and mitigate the impacts on fish and
wildlife habitat and corridors in siting energy development,
water, transmission, transportation, and other land use
projects;
(C) assess the impacts of existing development on habitats
and corridors; and
(D) develop management strategies to enhance the ability of
fish, wildlife, and plant species to migrate or respond to
shifting habitats within existing habitats and corridors.
(c) Habitat and Corridors Information System.--
(1) In general.--The Secretary, in cooperation with the
States and Indian tribes, shall develop a Habitat and
Corridors Information System.
(2) Contents.--The System shall--
(A) include maps, data, and descriptions of fish and
wildlife habitat and corridors, that--
(i) have been developed by Federal agencies, State wildlife
agencies and natural heritage programs, Indian tribes, local
governments, nongovernmental organizations, and industry;
(ii) meet accepted Geospatial Interoperability Framework
data and metadata protocols and standards;
(B) include maps and descriptions of projected shifts in
habitats and corridors of fish and wildlife species in
response to climate change;
(C) assure data quality and make the data, models, and
analyses included in the System available at scales useful to
decisionmakers--
(i) to prioritize and target natural resources adaptation
strategies and activities;
(ii) to assess the impacts of proposed energy development,
water, transmission, transportation, and other land use
projects and avoid, minimize, and mitigate those impacts on
habitats and corridors;
(iii) to assess the impacts of existing development on
habitats and corridors; and
(iv) to develop management strategies to enhance the
ability of fish, wildlife, and plant species to migrate or
respond to shifting habitats within existing habitats and
corridors;
(D) establish a process for updating maps and other
information as landscapes, habitats, corridors, and wildlife
populations change or as other information becomes available;
(E) encourage the development of collaborative plans by
Federal and State agencies and Indian tribes to monitor and
evaluate the efficacy of the System to meet the needs of
decisionmakers;
(F) identify gaps in habitat and corridor information,
mapping, and research that should be addressed to fully
understand and assess current data and metadata, and to
prioritize research and future data collection activities for
use in updating the System and provide support for those
activities;
(G) include mechanisms to support collaborative research,
mapping, and planning of habitats and corridors by Federal
and State agencies, Indian tribes, and other interested
stakeholders;
(H) incorporate biological and geospatial data on species
and corridors found in energy development and transmission
plans, including renewable energy initiatives,
transportation, and other land use plans;
(I) be based on the best scientific information available;
and
(J) identify, prioritize, and describe key parcels of non-
Federal land located within the boundaries of units of the
National Park System, National Wildlife Refuge System,
National Forest System, or National Grassland System that are
critical to maintenance of wildlife habitat and migration
corridors.
(d) Financial and Other Support.--The Secretary may provide
support to the States and Indian tribes, including financial
and technical assistance, for activities that support the
development and implementation of the System.
(e) Coordination.--The Secretary, in cooperation with the
States and Indian tribes, shall make recommendations on how
the information developed in the System may be incorporated
into existing relevant State and Federal plans affecting fish
and wildlife, including land management plans, the State
Comprehensive Wildlife Conservation Strategies, and
appropriate tribal conservation plans, to ensure that they--
(1) prevent unnecessary habitat fragmentation and
disruption of corridors;
(2) promote the landscape connectivity necessary to allow
wildlife to move as necessary to meet biological needs,
adjust to shifts in habitat, and adapt to climate change; and
(3) minimize the impacts of energy, development, water,
transportation, and transmission projects and other
activities expected to impact habitat and corridors.
(f) Definitions.--In this section:
(1) Geospatial interoperability framework.--The term
``Geospatial Interoperability Framework'' means the strategy
utilized by the National Biological Information
Infrastructure that is based upon accepted standards,
specifications, and protocols adopted through the
International Standards Organization, the Open Geospatial
Consortium, and the Federal Geographic Data Committee, to
manage, archive, integrate, analyze, and make accessible
geospatial and biological data and metadata.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.

SEC. 482. ADDITIONAL PROVISIONS REGARDING INDIAN TRIBES.

(a) Federal Trust Responsibility.--Nothing in this subpart
is intended to amend, alter, or give priority over the
Federal trust responsibility to Indian tribes.
(b) Exemption From FOIA.--Information received by a Federal
agency pursuant to this Act relating to the location,
character, or ownership of human remains of a person of
Indian ancestry; or resources, cultural items, uses, or
activities identified by an Indian tribe as traditional or
cultural because of the long-established significance or
ceremonial nature to the Indian tribe; shall not be subject
to disclosure under section 552 of title 5, United States
Code, if the head of the agency, in consultation with the
Secretary of the Interior and an affected Indian tribe,
determines that disclosure may--
(1) cause a significant invasion of privacy;
(2) risk harm to the human remains or resources, cultural
items, uses, or activities; or
(3) impede the use of a traditional religious site by
practitioners.
(c) Application of Other Law.--The Secretary of the
Interior may apply the provisions of Public Law 93-638 where
appropriate in the implementation of this subpart.

PART 2--INTERNATIONAL CLIMATE CHANGE ADAPTATION PROGRAM

SEC. 491. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds the following:
(1) Global climate change is a potentially significant
national and global security threat multiplier and is likely
to exacerbate competition and conflict over agricultural,
vegetative, marine, and water resources and to result in
increased displacement of people, poverty, and hunger within
developing countries.
(2) The strategic, social, political, economic, cultural,
and environmental consequences of global climate change are
likely to have disproportionate adverse impacts on developing
countries, which have less economic capacity to respond to
such impacts.
(3) The countries most vulnerable to climate change, due
both to greater exposure to harmful impacts and to lower
capacity to adapt, are developing countries with very low
industrial greenhouse gas emissions that have contributed
less to climate change than more affluent countries.
(4) To a much greater degree than developed countries,
developing countries rely on the natural and environmental
systems likely to be affected by climate change for
sustenance, livelihoods, and economic growth and stability.
(5) Within developing countries there may be varying
climate change adaptation and resilience needs among
different communities and populations, including impoverished
communities, children, women, and indigenous peoples.
(6) The consequences of global climate change, including
increases in poverty and destabilization of economies and
societies, are likely to pose long-term challenges to the
national security, foreign policy, and economic interests of
the United States.
(7) It is in the national security, foreign policy, and
economic interests of the United States to recognize, plan
for, and mitigate the international strategic, social,
political, cultural, environmental, health, and economic
effects of climate change and to assist developing countries
to increase their resilience to those effects.
(8) Under Article 4 of the United Nations Framework
Convention on Climate Change, developed country parties,
including the United States, committed to ``assist the
developing country parties that are particularly vulnerable
to the adverse effects of climate change in meeting costs of
adaptation to those adverse effects''.
(9) Under the Bali Action Plan, developed country parties
to the United Nations Framework Convention on Climate Change,
including the United States, committed to ``enhanced action
on the provision of financial resources and investment to
support action on mitigation and adaptation and technology
cooperation,'' including, inter alia, consideration of
``improved access to adequate, predictable, and sustainable
financial resources and financial and technical support, and
the provision of new and additional resources, including
official and concessional funding for developing country
parties''.
(b) Purposes.--The purposes of this part are--
(1) to provide new and additional assistance from the
United States to the most vulnerable developing countries,
including the most vulnerable communities and populations
therein, in order to support the development and
implementation of climate change adaptation programs and
activities that reduce the vulnerability and increase the
resilience of communities to climate change impacts,
including impacts on water availability, agricultural
productivity, flood risk, coastal resources, timing of
seasons, biodiversity, economic livelihoods, health and
diseases, and human migration; and
(2) to provide such assistance in a manner that protects
and promotes the national security, foreign policy,
environmental, and economic interests of the United States to
the extent such interests may be advanced by minimizing,
averting, or increasing resilience to climate change impacts.

SEC. 492. DEFINITIONS.

In this part:

[[Page H7613]]

(1) Allowance.--The term ``allowance'' means an emission
allowance established under section 721 of the Clean Air Act.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committees on Energy and Commerce, Financial
Services, and Foreign Affairs of the House of
Representatives; and
(B) the Committees on Environment and Public Works and
Foreign Relations of the Senate.
(3) Developing country.--The term ``developing country''
means a country eligible to receive official development
assistance according to the income guidelines of the
Development Assistance Committee of the Organization for
Economic Cooperation and Development.
(4) Most vulnerable developing countries.--The term ``most
vulnerable developing countries'' means, as determined by the
Administrator of USAID, developing countries that are at risk
of substantial adverse impacts of climate change and have
limited capacity to respond to such impacts, considering the
approaches included in any international treaties and
agreements.
(5) Most vulnerable communities and populations.--The term
``most vulnerable communities and populations'' means
communities and populations that are at risk of substantial
adverse impacts of climate change and have limited capacity
to respond to such impacts, including impoverished
communities, children, women, and indigenous peoples.
(6) Program.--The term ``Program'' means the International
Climate Change Adaptation Program established under section
493.
(7) USAID.--The term ``USAID'' means the United States
Agency for International Development.
(8) United nations framework convention on climate
change.--The term ``United Nations Framework Convention on
Climate Change'' or ``Convention'' means the United Nations
Framework Convention on Climate Change done at New York on
May 9, 1992, and entered into force on March 21, 1994.

SEC. 493. INTERNATIONAL CLIMATE CHANGE ADAPTATION PROGRAM.

(a) Establishment.--The Secretary of State, in consultation
with the Administrator of USAID, the Secretary of the
Treasury, and the Administrator of the Environmental
Protection Agency, shall establish an International Climate
Change Adaptation Program in accordance with the requirements
of this part.
(b) Allowance Account.--Allowances allocated pursuant to
section 782(n) of the Clean Air Act shall be available for
distribution to carry out the Program established under
subsection (a).
(c) Supplement Not Supplant.--Assistance provided under
this part shall be used to supplement, and not to supplant,
any other Federal, State, or local resources available to
carry out activities of the type carried out under the
Program.

SEC. 494. DISTRIBUTION OF ALLOWANCES.

(a) In General.--The Secretary of State, or such other
Federal agency head as the President may designate, after
consultation with the Secretary of the Treasury, the
Administrator of USAID, and the Administrator of the
Environmental Protection Agency, shall direct the
distribution of allowances to carry out the Program--
(1) in the form of bilateral assistance pursuant to the
requirements under section 495;
(2) to multilateral funds or international institutions
pursuant to the Convention or an agreement negotiated under
the Convention; or
(3) through a combination of the mechanisms identified
under paragraphs (1) and (2).
(b) Limitation.--
(1) Conditional distribution to multilateral funds or
international institutions.--In any fiscal year, the
Secretary of State, or such other Federal agency head as the
President may designate, in consultation with the
Administrator of USAID, the Secretary of the Treasury, and
the Administrator of the Environmental Protection Agency,
shall distribute at least 40 percent and up to 60 percent of
the allowances available to carry out the Program to one or
more multilateral funds or international institutions that
meet the requirements of paragraph (2), if any such fund or
institution exists, and shall annually certify in a report to
the appropriate congressional committees that any
multilateral fund or international institution receiving
allowances under this section meets the requirements of
paragraph (2) or that no multilateral fund or international
institution that meets the requirements of paragraph (2)
exists, as the case may be. The Secretary of State shall
notify the appropriate congressional committees not less than
15 days prior to any transfer of allowances to a multilateral
fund or international institution pursuant to this section.
(2) Multilateral fund or international institution
eligibility.--A multilateral fund or international
institution is eligible to receive allowances available to
carry out the Program--
(A) if--
(i) such fund or institution is established pursuant to--

(I) the Convention; or
(II) an agreement negotiated under the Convention; or

(ii) the allowances are directed to one or more
multilateral development banks or international development
institutions, pursuant to an agreement negotiated under such
Convention; and
(B) if such fund or institution--
(i) specifies the terms and conditions under which the
United States is to provide allowances to the fund or
institution, and under which the fund or institution is to
provide assistance to recipient countries;
(ii) ensures that assistance from the United States to the
fund or institution and the principal and income of the fund
or institution are disbursed only for purposes that are
consistent with those described in section 491(b)(1);
(iii) requires a regular meeting of a governing body of the
fund or institution that includes representation from
countries among the most vulnerable developing countries and
provides public access;
(iv) requires that local communities and indigenous peoples
in areas where any activities or programs are planned are
engaged through adequate disclosure of information, public
participation, and consultation; and
(v) prepares and makes public an annual report that--

(I) describes the process and methodology for selecting the
recipients of assistance from the fund or institution,
including assessments of vulnerability;
(II) describes specific programs and activities supported
by the fund or institution and the extent to which the
assistance is addressing the adaptation needs of the most
vulnerable developing countries, and the most vulnerable
communities and populations therein;
(III) describes the performance goals for assistance
authorized under the fund or institution and expresses such
goals in an objective and quantifiable form, to the extent
practicable;
(IV) describes the performance indicators to be used in
measuring or assessing the achievement of the performance
goals described in subclause (III);
(V) provides a basis for recommendations for adjustments to
assistance authorized under this part to enhance the impact
of such assistance; and
(VI) describes the participation of other nations and
international organizations in supporting and governing the
fund or institution.

(c) Oversight.--
(1) Distribution to multilateral funds or international
institutions.--The Secretary of State, or such other Federal
agency head as the President may designate, in consultation
with the Administrator of USAID, shall oversee the
distribution of allowances available to carry out the Program
to a multilateral fund or international institution under
subsection (b).
(2) Bilateral assistance.--The Administrator of USAID, in
consultation with the Secretary of State, shall oversee the
distribution of allowances available to carry out the Program
for bilateral assistance under section 495.

SEC. 495. BILATERAL ASSISTANCE.

(a) Activities and Foreign Aid.--
(1) In general.--In order to achieve the purposes of this
part, the Administrator of USAID may carry out programs and
activities and distribute allowances to any private or public
group (including international organizations and faith-based
organizations), association, or other entity engaged in
peaceful activities to--
(A) provide assistance to the most vulnerable developing
countries for--
(i) the development of national or regional climate change
adaptation plans, including a systematic assessment of
socioeconomic vulnerabilities in order to identify the most
vulnerable communities and populations;
(ii) associated national policies; and
(iii) planning, financing, and execution of adaptation
programs and activities;
(B) support investments, capacity-building activities, and
other assistance, to reduce vulnerability and promote
community-level resilience related to climate change and its
impacts in the most vulnerable developing countries,
including impacts on water availability, agricultural
productivity, flood risk, coastal resources, timing of
seasons, biodiversity, economic livelihoods, health, human
migration, or other social, economic, political, cultural, or
environmental matters;
(C) support climate change adaptation research in or for
the most vulnerable developing countries;
(D) reduce vulnerability and provide increased resilience
to climate change for local communities and livelihoods in
the most vulnerable developing countries by encouraging--
(i) the protection and rehabilitation of natural systems;
(ii) the enhancement and diversification of agricultural,
fishery, and other livelihoods; and
(iii) the reduction of disaster risks;
(E) support the deployment of technologies to help the most
vulnerable developing countries respond to the destabilizing
impacts of climate change and encourage the identification
and adoption of appropriate renewable and efficient energy
technologies that are beneficial in increasing community-
level resilience to the impacts of global climate change in
those countries; and
(F) encourage the engagement of local communities through
disclosure of information, consultation, and the communities'
informed participation relating to the development of plans,
programs, and activities to increase community-level
resilience to climate change impacts.
(2) Limitations.--Not more than 10 percent of the
allowances made available to carry

[[Page H7614]]

out bilateral assistance under this part in any year shall be
distributed to support activities in any single country.
(3) Prioritizing assistance.--In providing assistance under
this section, the Administrator of USAID shall give priority
to countries, including the most vulnerable communities and
populations therein, that are most vulnerable to the adverse
impacts of climate change, determined by the likelihood and
severity of such impacts and the country's capacity to adapt
to such impacts.
(b) Community Engagement.--
(1) In general.--The Administrator of USAID shall ensure
that local communities, including the most vulnerable
communities and populations therein, in areas where any
programs or activities are carried out pursuant to this
section are engaged in, through disclosure of information,
public participation, and consultation, the design,
implementation, monitoring, and evaluation of such programs
and activities.
(2) Consultation and disclosure.--For each country
receiving assistance under this section, the Administrator of
USAID shall establish a process for consultation with, and
disclosure of information to, local, national, and
international stakeholders regarding any programs and
activities carried out pursuant to this section.
(c) Coordination.--
(1) Alignment of activities.--Subject to the direction of
the President and the Secretary of State, the Administrator
of USAID shall, to the extent practicable, seek to align
activities under this section with broader development,
poverty alleviation, or natural resource management
objectives and initiatives in the recipient country.
(2) Coordination of activities.--The Administrator of USAID
shall ensure that there is coordination among the activities
under this section, subtitle D of this title, and part E of
title VII of the Clean Air Act, in order to maximize the
effectiveness of United States assistance to developing
countries.
(d) Reporting.--
(1) Initial report.--Not later than 180 days after the date
of enactment of this part, the Administrator of USAID, in
consultation with the Secretary of State, shall submit to the
President and the appropriate congressional committees an
initial report that--
(A) based on the most recent information available from
reliable public sources or knowledge obtained by USAID on a
reliable basis, as determined by the Administrator of USAID,
identifies the developing countries, including the most
vulnerable communities and populations therein, that are most
vulnerable to climate change impacts and in which assistance
may have the greatest and most sustainable benefit in
reducing vulnerability to climate change; and
(B) describes the process and methodology for selecting the
recipients of assistance under subsection (a)(1).
(2) Annual reports.--Not later than 18 months after the
date on which the initial report is submitted pursuant to
paragraph (1), and annually thereafter, the Administrator of
USAID, in consultation with the Secretary of State, shall
submit to the President and the appropriate congressional
committees a report that--
(A) describes the extent to which global climate change,
through its potential negative impacts on sensitive
populations and natural resources in the most vulnerable
developing countries, may threaten, cause, or exacerbate
political, economic, environmental, cultural, or social
instability or international conflict in those regions;
(B) describes the ramifications of any potentially
destabilizing impacts climate change may have on the national
security, foreign policy, and economic interests of the
United States, including--
(i) the creation of environmental migrants and internally
displaced peoples;
(ii) international or internal armed conflicts over water,
food, land, or other resources;
(iii) loss of agricultural and other livelihoods, cultural
stability, and other causes of increased poverty and economic
destabilization;
(iv) decline in availability of resources needed for
survival, including water;
(v) increased impact of natural disasters (including
droughts, flooding, and other severe weather events);
(vi) increased prevalence or virulence of climate-related
diseases; and
(vii) intensified urban migration;
(C) describes how allowances available under this section
were distributed during the previous fiscal year to enhance
the national security, foreign policy, and economic interests
of the United States and assist in avoiding the economically,
politically, environmentally, culturally, and socially
destabilizing impacts of climate change in most vulnerable
developing countries;
(D) identifies and recommends the developing countries,
including the most vulnerable communities and populations
therein, that are most vulnerable to climate change impacts
and in which assistance may have the greatest and most
sustainable benefit in reducing vulnerability to climate
change, including in the form of deploying technologies,
investments, capacity-building activities, and other types of
assistance for adaptation to climate change impacts and
approaches to reduce greenhouse gases in ways that may also
provide community-level resilience to climate change impacts;
and
(E) describes cooperation undertaken with other nations and
international organizations to carry out this part.
(e) Monitoring and Evaluation.--
(1) In general.--The Administrator of USAID shall establish
and implement a system to monitor and evaluate the
effectiveness and efficiency of assistance provided under
this section in order to maximize the long-term sustainable
development impact of such assistance, including the extent
to which such assistance is meeting the purposes of this part
and addressing the adaptation needs of developing countries.
(2) Requirements.--In carrying out paragraph (1), the
Administrator of USAID shall--
(A) in consultation with national governments in recipient
countries, establish performance goals for assistance
authorized under this section and express such goals in an
objective and quantifiable form, to the extent practicable;
(B) establish performance indicators to be used in
measuring or assessing the achievement of the performance
goals described in subparagraph (A), including an evaluation
of--
(i) the extent to which assistance under this section
provided for disclosure of information to, consultation with,
and informed participation by local communities;
(ii) the extent to which local communities participated in
the design, implementation, and evaluation of programs and
activities implemented pursuant to this section; and
(iii) the impacts of such participation on the goals and
objectives of the programs and activities implemented under
this section;
(C) provide a basis for recommendations for adjustments to
assistance authorized under this section to enhance the
impact of such assistance; and
(D) include, in the annual report to the appropriate
congressional committees and other relevant agencies required
under subsection (d)(2), findings resulting from the
monitoring and evaluation of programs and activities under
this section.

Subtitle F--Deficit Neutral Budgetary Treatment

SEC. 496. DEFICIT NEUTRALITY.

(a) Funds Established.--Funds established under sections
422, 467, and 480 of this Act are to be treated as separate
accounts in the Treasury and shall be known as ``the Funds''.
(b) Availability.--Funds appropriated or made available
pursuant to sections 422(b), 467(b), and 480(b)(2) are only
available for the purposes set forth under this Act. Receipts
in the Funds and appropriations therefrom shall not be
available and are precluded from obligation for any other
purpose.
(c) Estimation of Budgetary Impact.--For the purposes of
estimating the revenue and spending effects of this Act;
(1) the revenue assumed to be deposited into the Funds
established under sections 422, 467, and 480, shall be
attributed to this Act; and
(2) the authorization or availability of appropriations
from the Funds shall be treated as new direct spending and
attributed to this Act.
(d) Budgetary Treatment.--For the purposes of section 257
of the Balanced Budget and Emergency Deficit Control Act of
1985, the Funds, and amounts subsequently appropriated or
made available for the purposes for which such Funds were
established, shall be deemed to be included on the list of
appropriations referenced under section 250(c)(17) of that
Act. Such appropriations from each Fund shall not be in
excess of the amounts deposited into the respective Fund in
the previous year.

TITLE V--AGRICULTURAL AND FORESTRY RELATED OFFSETS

Subtitle A--Offset Credit Program From Domestic Agricultural and
Forestry Sources

SEC. 501. DEFINITIONS.

(a) In General.--In this title:
(1) Additional.--The term ``additional'', when used with
respect to reductions or avoidance of greenhouse gas
emissions, or to sequestration of greenhouse gases, means
reductions, avoidance, or sequestration that result in a
lower level of net greenhouse gas emissions or atmospheric
concentrations than would occur in the absence of an offset
project.
(2) Additionality.--The term ``additionality'' means the
extent to which reductions or avoidance of greenhouse gas
emissions, or sequestration of greenhouse gases, are
additional.
(3) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(4) Advisory committee.--The term ``Advisory Committee''
means the USDA Greenhouse Gas Emission Reduction and
Sequestration Advisory Committee established under section
1245(f) of the Food Security Act of 1985 (16 U.S.C. 3845).
(5) Greenhouse gas.--The term ``greenhouse gas'' means any
of the following:
(A) Carbon dioxide.
(B) Methane.
(C) Nitrous oxide.
(D) Sulfur hexafluoride.
(E) Hydrofluorocarbons from a chemical manufacturing
process at an industrial stationary source.
(F) Any perfluorocarbon.
(G) Nitrogen trifluoride.
(H) Any other anthropogenic gas designated as a greenhouse
gas by the Administrator.
(6) Leakage.--The term ``leakage'' means a significant and
quantifiable increase in

[[Page H7615]]

greenhouse gas emissions, or a significant and quantifiable
decrease in sequestration, which is caused by an offset
practice and occurs outside the boundaries of the offset
practice.
(7) Offset credit.--The term ``offset credit'' means a
tradeable compliance instrument that--
(A) represents the reduction, avoidance, or sequestration
of 1 ton of carbon dioxide equivalent; and
(B) is issued pursuant to this title.
(8) Offset practice.--The term ``offset practice'' means an
activity that reduces, avoids, or sequesters greenhouse gas
emissions, and for which offset credits may be issued
pursuant to this title.
(9) Offset producer.--The term ``offset producer'' means an
owner, operator, landlord, tenant, or sharecropper who has or
shares responsibility for ensuring that an offset practice is
established and maintained during the crediting period for
purposes of an offset credit.
(10) Offset project.--The term ``offset project'' means a
practice or set of practices that reduce or avoid greenhouse
gas emissions, or sequester greenhouse gases as implemented
by an offset producer.
(11) Offset project developer.--The term ``offset project
developer'' means the offset producer or designee of the
offset producer.
(12) Practice type.--The term ``practice type'' means a
discrete category of offset practices for which the Secretary
develops a standardized methodology to accurately estimate
the amount of greenhouse gas emissions reduced or avoided or
greenhouse gases sequestered.
(13) Reversal.--The term ``reversal'' means an intentional
or unintentional loss of sequestered greenhouse gases to the
atmosphere.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) Sequestration and sequestered.--The terms
``sequestered'' and ``sequestration'' mean the separation,
isolation, or removal of greenhouse gases from the
atmosphere, as determined by the Secretary. The terms include
biological sequestration, but do not include ocean
fertilization techniques.
(16) Term offset credit.--The term ``term offset credit''
means a compliance instrument authorized under section
504(d).
(b) Agricultural and Forestry Exception to Definition of
Capped Sector.--For purposes of this title and title III of
this Act, and amendments made by such titles, the term
``capped sector'' means a sector of economic activity that
directly emits capped emissions, including the industrial
sector, the electricity generation sector, the transportation
sector, and the residential and commercial sectors (to the
extent they burn oil or natural gas), but not including the
agricultural or forestry sectors.

SEC. 502. ESTABLISHMENT OF OFFSET CREDIT PROGRAM FROM
DOMESTIC AGRICULTURAL AND FORESTRY SOURCES.

(a) Establishment.--Not later than 1 year after the date of
enactment of this title, the Secretary shall establish a
program governing the generation of offset credits from
domestic agricultural and forestry sources.
(b) Requirements.--The program described in subsection (a)
shall--
(1) ensure that offset credits represent verifiable and
additional greenhouse gas emission reductions or avoidance,
or increases in sequestration; and
(2) ensure that offset credits issued for sequestration
offset projects are only issued for greenhouse gas reductions
that result in a permanent net reduction in atmospheric
greenhouse gases.
(c) Duties of Secretary.--In addition to the duties
described in subsection (a) and section 1245 of the Food
Security Act of 1985 (16 U.S.C. 3845), the Secretary shall,
with respect to practices relating to offset credits from
agricultural and forestry sources--
(1) establish by rule methodologies by practice types for
quantifying greenhouse gas benefits;
(2) establish by rule methodologies for each practice type
for establishing activity baselines and determining
additionality;
(3) establish by rule methodologies by practice types for
accounting for and mitigating potential leakage;
(4) establish rules to account for and address reversals;
(5) establish rules to require third-party verification;
(6) provide technical assistance to offset project
developers using funds appropriated to the Conservation
Operations account;
(7) establish rules for approval of offset project plans;
(8) establish rules for certification of implementation of
offset project plans;
(9) establish by rule requirements for reporting and record
keeping; and
(10) conduct audits.

SEC. 503. LIST OF ELIGIBLE DOMESTIC AGRICULTURAL AND FORESTRY
OFFSET PRACTICE TYPES.

(a) List Required.--
(1) Preparation and publication.--Not later than 1 year
after the date of enactment of this title, the Secretary
shall prepare and publish in the Federal Register a list of
domestic agricultural and forestry practice types that are
eligible to generate offset credits under this title because
the practices avoid or reduce greenhouse gas emissions or
sequester greenhouse gases.
(2) Recommendations.--In preparing the list under paragraph
(1), the Secretary shall take into consideration the
recommendations of the Advisory Committee.
(b) Initial List.--At a minimum, the list prepared under
this section shall include those practices that avoid or
reduce greenhouse gas emissions or sequester greenhouse
gases, such as--
(1) agricultural, grassland, and rangeland sequestration
and management practices, including--
(A) altered tillage practices;
(B) winter cover cropping, continuous cropping, and other
means to increase biomass returned to soil in lieu of
planting followed by fallowing;
(C) reduction of nitrogen fertilizer use or increase in
nitrogen use efficiency;
(D) reduction in the frequency and duration of flooding of
rice paddies;
(E) reduction in carbon emissions from organic soils;
(F) reduction in greenhouse gas emissions from manure and
effluent; and
(G) reduction in greenhouse gas emissions due to changes in
animal management practices, including dietary modifications;
(2) changes in carbon stocks attributed to land use change
and forestry activities, including--
(A) afforestation or reforestation of acreage that is not
forested;
(B) forest management resulting in an increase in forest
carbon stores including but not limited to harvested wood
products;
(C) management of peatland or wetland;
(D) conservation of grassland and forested land;
(E) improved forest management, including accounting for
carbon stored in wood products;
(F) reduced deforestation or avoided forest conversion;
(G) urban tree-planting and maintenance;
(H) agroforestry; and
(I) adaptation of plant traits or new technologies that
increase sequestration by forests; and
(3) manure management and disposal, including--
(A) waste aeration;
(B) biogas capture and combustion; and
(C) application to fields as a substitute for commercial
fertilizer.
(c) Additions and Revisions to List.--
(1) Periodic revision.--Not later than 2 years after the
date of enactment of this title, and every 2 years
thereafter, the Secretary, after public notice and
opportunity for comment, shall add to and revise the types of
offset practices to the list established under subsection (a)
if those types of practices meet the standards for
environmental integrity that are consistent with the purposes
of this title.
(2) Consideration of petitions.--The Secretary shall--
(A) consider petitions to add types of offset practices to
the list established under subsection (a); and
(B) add those types of offset practices to the list if the
types of offset practices meet standards for environmental
integrity consistent with the purposes of this title.
(3) Time for consideration of petitions.--Not later than 1
year after the receipt of a petition under paragraph (2), the
Secretary shall make a decision to either grant or deny the
petition and publish a written explanation of the reasons for
the Secretary's decision. The Secretary may not deny a
petition under this subsection on the basis of inadequate
Department of Agriculture resources at the time of the
review.

SEC. 504. REQUIREMENTS FOR DOMESTIC AGRICULTURAL AND FORESTRY
PRACTICES.

(a) Methodologies.--
(1) In general; condition.--In promulgating regulations
under section 502, the Secretary shall establish
methodologies for domestic agricultural and forestry
practices listed under section 503, if the Secretary
determines that methodologies can be established for such
practices that meet each of the requirements of this section.
The Secretary shall only issue offset credits under this
title pursuant to promulgated methodologies applicable to the
offset practice that avoided or reduced greenhouse gas
emissions or sequestered greenhouse gases.
(2) Specified methodologies.--The Secretary shall establish
the following methodologies under this section:
(A) Activity baselines.--A standardized methodology for
establishing activity baselines for an offset practice of
that type. The Secretary shall set activity baselines to
reflect a conservative estimate of performance or activities
for the relevant type of practice (excluding changes in
performance or activities due to the availability of offset
credits) such that the baseline provides an adequate margin
of safety to ensure the environmental integrity of offset
credits calculated in reference to such baseline.
(B) Additionality.--A standardized methodology for
determining the additionality of greenhouse gas emissions
reduction or avoidance, or greenhouse gas sequestration,
achieved by an offset practice of that type. Such methodology
shall ensure, at a minimum, that any greenhouse gas emission
reduction or avoidance, or any greenhouse gas sequestration,
is considered additional only to the extent that it results
from activities that--
(i) are not required by existing government regulations, as
determined by the Secretary;
(ii) were not commenced prior to January 1, 2009, except in
the case of--

[[Page H7616]]

(I) offset project activities that commenced after January
1, 2001, and were registered as of the date of enactment of
this title under an offset program with respect to which an
affirmative determination has been made under section 740 of
the Clean Air Act; or
(II) activities that are readily reversible, with respect
to which the Secretary may set an alternative earlier date
under this subparagraph that is not earlier than January 1,
2001, where the Secretary determines that setting such an
alternative date may produce an environmental benefit by
removing an incentive to cease and then reinitiate activities
that began prior to January 1, 2009; and

(iii) exceed the applicable activity baseline established
under paragraph (2).
(C) Quantification methods.--A standardized methodology for
determining the extent to which greenhouse gas emission
reductions or avoidance, or greenhouse gas sequestration,
achieved by an offset practice of that type exceeded a
relevant activity baseline, including methods for monitoring
and accounting for uncertainty.
(D) Leakage.--A standardized methodology for accounting for
and mitigating potential leakage, if any, from an offset
practice of that type, taking uncertainty into account,
excluding international indirect land use changes unless a
positive determination is made under section
211(o)(13)(C)(iii) of the Clean Air Act.
(b) Special Considerations.--
(1) Existing offset practices.--In establishing the
methodologies under subsection (a), the Secretary shall give
due consideration to methodologies for offset practices
existing as of the date of the enactment of this title.
(2) Certain factors.--As part of the methodologies
established under subsection (a), the Secretary shall
establish a formula that takes into account the components of
the practice, the characteristics of the land on which the
practice is applied, the crop produced, and such other
factors as determined appropriate by the Secretary.
(c) Accounting for Reversals.--
(1) In general.--Except as provided in subsection (d) with
respect to issuance of a term offset credit, for each type of
practice listed under section 503, the Secretary shall
establish requirements to account for and address reversals,
including--
(A) a requirement to report any reversal with respect to an
offset practice for which offset credits have been issued
under this title;
(B) provisions to require emission allowances or offset
credits to be held in amounts to fully compensate for
greenhouse gas emissions attributable to reversals, and to
assign responsibility for holding such emission allowances;
and
(C) any other provisions that the Secretary determines to
be necessary to account for and address reversals.
(2) Mechanisms.--
(A) In general.--The Secretary shall prescribe mechanisms
to ensure that any sequestration of greenhouse gases, with
respect to which an offset credit is issued under this title,
results in a permanent net increase in sequestration of
greenhouse gases, and that full account is taken of any
actual or potential reversal of such sequestration, with an
adequate margin of safety.
(B) Specific mechanisms.--The Secretary shall make
available one or more of the following mechanisms to meet the
requirements of this paragraph:
(i) An offsets reserve, pursuant to paragraph (3).
(ii) Insurance that provides for purchase and provision to
the Secretary for retirement of a quantity of offset credits
or emission allowances equal in number to the tons of carbon
dioxide equivalents of greenhouse gas emissions released due
to reversal.
(iii) Another mechanism if the Secretary determines it is
necessary to satisfy the requirements of this title, taking
into account whether the reversal was intentional or
unintentional.
(3) Offsets reserve.--
(A) In general.--An offsets reserve referred to in
paragraph (2)(B)(i) is a program under which, before issuance
of offset credits under this title, the Secretary shall--
(i) subtract and reserve from the quantity to be issued a
quantity of offset credits based on the risk of reversal;
(ii) hold those reserved offset credits in the offsets
reserve; and
(iii) register the holding of the reserved offset credits
in an offset registry.
(B) Practice reversal.--
(i) In general.--If a reversal has occurred with respect to
an offset practice within an offset project, for which offset
credits are reserved under this paragraph, the Secretary
shall retire offset credits from the offsets reserve to fully
account for the tons of carbon dioxide equivalent that are no
longer sequestered.
(ii) Intentional reversals.--If the Secretary determines
that a reversal was intentional, the offset practice
developer for the relevant offset practice shall place into
the offsets reserve a quantity of offset credits, or
combination of offset credits and emission allowances, equal
in number to the number of reserve offset credits that were
retired pursuant to clause (i).
(iii) Unintentional reversals.--If the Secretary determines
that a reversal was unintentional, the offset project
developer for the relevant offset project shall place into
the offsets reserve a quantity of offset credits, or
combination of offset credits and emission allowances, equal
in number to half the number of offset credits that were
reserved for that offset project, or half the number of
reserve offset credits that were canceled due to the reversal
pursuant to clause (i), whichever is less, except that the
Secretary may lower this amount based on undue hardship in
the event of a catastrophic occurrence.
(C) Use of reserved offset credits.--Offset credits placed
into the offsets reserve under this paragraph may not be used
to comply with section 722 of the Clean Air Act.
(d) Term Offset Credits.--
(1) Applicability.--With respect to a practice listed under
section 503 that sequesters greenhouse gases and has a
crediting period of no more than five years, the Secretary
may address reversals pursuant to this subsection in lieu of
permanently accounting for reversals pursuant to subsection
(c).
(2) Accounting for reversals.--For such practices or
projects implementing such practices, the Secretary shall
require only reversals that occur during the crediting period
to be accounted for and addressed pursuant to subsection (c).
(3) Credits issued.--For practices or projects regulated
pursuant to paragraph (2), the Secretary shall issue under
section 507 a term offset credit, in lieu of an offset
credit, for each ton of carbon dioxide equivalent that has
been sequestered.
(e) Crediting Periods.--
(1) In general.--For each offset practice type within an
offset project, the Secretary shall specify a crediting
period, and establish provisions for reenrollment for a
subsequent crediting period, in accordance with this
subsection.
(2) Duration.--The crediting period shall have a term of up
to--
(A) 5 years for agricultural sequestration practices;
(B) 20 years for forestry sequestration practices; and
(C) 10 years for other practice types that reduce or avoid
greenhouse gas emissions or sequester greenhouse gases.
(3) Eligibility.--An offset practice, within an offset
project, shall--
(A) be eligible to generate offset credits under this title
only during the crediting period of the offset practice; and
(B) remain eligible to generate offset credits, only during
the crediting period, subject to the methodologies and
practice type eligibility list that applied as of the date of
the project approval.
(4) Reenrollment for subsequent crediting period.--
(A) Reenrollment authorized; time for reenrollment.--An
offset project developer may reenroll for a subsequent
crediting period, to commence after termination of the
current crediting period, subject to the methodologies and
practice type eligibility list in effect at the time of
reenrollment. Reenrollment may not occur more than 18 months
before the end of the crediting period then in effect.
(B) Limitation.--The Secretary may limit the number of
subsequent crediting periods available for a particular
practice type.
(f) Environmental Integrity.--In establishing the
requirements under this section, the Secretary shall apply
conservative assumptions or methods to ensure the
environmental integrity of the cap established under section
703 of the Clean Air Act is not compromised.

SEC. 505. PROJECT PLAN SUBMISSION AND APPROVAL.

(a) Project Plan Required.--An offset project developer
shall submit to the Secretary an offset project plan for
approval.
(b) Requirements.--As part of the regulations promulgated
under this title, the Secretary shall include provisions for,
and shall specify, the required components of an offset
project plan, including--
(1) designation of an offset project developer;
(2) a list and schedule of the practices to be implemented;
(3) any other information that the Secretary considers to
be necessary--
(A) to determine whether the offset practice, within the
offset project, is eligible for issuance of offset credits
under regulations promulgated under this title; and
(B) to achieve the purposes of this title.
(c) Time for Consideration; Notification.--Not later than
90 days after receiving a complete offset project plan under
subsection (a), the Secretary shall--
(1) approve the plan in writing and include an estimate of
the offset project credits that will be earned if the plan is
implemented, subject to verification of all project-specific
variables; or
(2) if the plan is denied, provide the reasons for denial
in writing.
(d) Appeal.--The Secretary shall establish procedures for
appeal and review of determinations made under this section.
(e) Resubmission.--After an offset project plan is
approved, the offset project developer shall not be required
to resubmit a project plan during the crediting period.

SEC. 506. VERIFICATION OF OFFSET PRACTICES.

(a) In General.--As part of the regulations promulgated
under this title, the Secretary shall establish requirements
to verify--
(1) that offset practices in an approved offset project
plan have been implemented; and
(2) the quantity of greenhouse gas emission reductions or
avoidance, or sequestration of greenhouse gases, resulting
from an offset practice and project.

[[Page H7617]]

(b) Verification Reports.--
(1) In general.--The regulations described in subsection
(a) shall require an offset project developer to submit a
report, prepared by a third-party verifier accredited under
subsection (c).
(2) Requirements.--The Secretary shall specify the
components of a verification report required under paragraph
(1), including--
(A) the name and contact information for the offset project
developer;
(B) a certification that the project plan has been
implemented;
(C) the quantity of greenhouse gases reduced, avoided, or
sequestered;
(D) a certification establishing that the conflict of
interest requirements in the regulations promulgated under
this title have been complied with;
(E) any other information that the Secretary requires to
determine the quantity of greenhouse gas emission reduction
or avoidance, or sequestration of greenhouse gases, resulting
from the offset practice and project; and
(F) any other information that the Secretary considers to
be necessary to achieve the purposes of this title.
(c) Verifier Accreditation.--
(1) In general.--As part of the regulations promulgated
under this title, the Secretary shall establish a process and
requirements for periodic accreditation of third-party
verifiers for offset credits under this program to ensure
that those verifiers are professionally qualified and have no
conflicts of interest.
(2) Public accessibility.--Each verifier meeting the
requirements for accreditation in accordance with this
subsection shall be listed in a publicly accessible database,
which shall be maintained and updated by the Secretary.

SEC. 507. CERTIFICATION OF OFFSET CREDITS.

(a) Determination and Notification.--Not later than 90 days
after receiving a complete verification report, the Secretary
shall--
(1) make a determination of the quantity of greenhouse gas
emissions that have been reduced or avoided, or greenhouse
gases that have been sequestered, by the offset practice in
an approved and verified offset project plan; and
(2) notify the offset project developer in writing of the
determination.
(b) Issuance of Offset Credits.--The Secretary shall issue
1 offset credit to an offset project developer for each ton
of carbon dioxide equivalent that the Secretary determines
has been reduced, avoided, or sequestered during the
crediting period. Offset credits may be issued only for
greenhouse gas emissions reduced, avoided, or sequestered
after January 1, 2009.
(c) Appeal.--The Secretary shall establish procedures for
appeal and review of determinations made under subsection
(a).
(d) Timing.--Offset credits meeting the criteria described
in subsection (b) shall be issued by the Secretary not later
than 14 days after the date on which the Secretary makes a
determination under subsection (a).
(e) Registration.--The Secretary shall obtain from the
Administrator a unique serial number to allow for the
registration of each offset credit to be issued under this
title.

SEC. 508. OWNERSHIP AND TRANSFER OF OFFSET CREDITS.

(a) Ownership.--Initial ownership of an offset credit shall
lie with the offset project developer, unless otherwise
specified in a legally binding contract or agreement.
(b) Transferability.--An offset credit issued under this
title may be sold, traded, or transferred, unless the offset
credit has expired or been retired.

SEC. 509. PROGRAM REVIEW AND REVISION.

At least once every 5 years, the Secretary shall review
and, based on new or updated information and taking into
consideration the recommendations of the Advisory Board,
update and revise--
(1) the list of eligible practice types established under
section 503;
(2) the methodologies established, including specific
activity baselines, under section 504(a);
(3) the reversal requirements and mechanisms established or
prescribed under subsections (c) and (d) of section 504;
(4) measures to improve the accountability of the offsets
program; and
(5) any other requirements established under this title to
ensure the environmental integrity and effective operation of
this title.

SEC. 510. ENVIRONMENTAL CONSIDERATIONS.

If the Secretary lists forestry practices as eligible
offset practice types under section 503, the Secretary, in
consultation with appropriate Federal agencies, shall
promulgate regulations for the selection and use of species
in forestry and other relevant land management-related offset
practices--
(1) to ensure that native species are given primary
consideration in such practices;
(2) to encourage the conservation of biological diversity
in such practices;
(3) to prohibit the use of federally designated or State-
designated noxious weeds;
(4) to prohibit the use of a species listed by a regional
or State invasive plant authority within the applicable
region or State; and
(5) in accordance with widely accepted, environmentally
sustainable forestry practices.

SEC. 511. AUDITS.

(a) Audits Required.--The Secretary shall conduct, on an
annual basis, random audits of offset projects, offset
credits, and the practices of third-party verifiers. At a
minimum, the Secretary shall conduct audits each year for a
representative sample of practice types and geographical
areas.
(b) Additional Authority.--Nothing in this section prevents
the Secretary from conducting any audit the Secretary
considers to be necessary.

Subtitle B--USDA Greenhouse Gas Emission Reduction and Sequestration
Advisory Committee

SEC. 531. ESTABLISHMENT OF USDA GREENHOUSE GAS EMISSION
REDUCTION AND SEQUESTRATION ADVISORY COMMITTEE.

Section 1245 of the Food Security Act of 1985 (16 U.S.C.
3854), as added by section 2709 of the Food, Conservation,
and Energy Act of 2008 (Public Law 110-246; 122 Stat. 1809),
is amended by adding at the end the following new subsection:
``(f) USDA Greenhouse Gas Emission Reduction and
Sequestration Advisory Committee.--
``(1) Establishment.--Not later than 30 days after the date
of the enactment of the American Clean Energy and Security
Act of 2009, the Secretary shall establish an independent
advisory committee, to be known as the `USDA Greenhouse Gas
Emission Reduction and Sequestration Advisory Committee', to
provide scientific and technical advice on establishing,
implementing, and ensuring the overall environmental
integrity of an offset program for domestic agricultural and
forestry practices that reduce or avoid greenhouse gas
emissions, or sequester greenhouse gases.
``(2) Membership.--The Advisory Committee shall be
comprised of nine members, including a chairperson and vice-
chairperson, appointed by the Secretary. Each member shall be
qualified by education, training, and experience to evaluate
scientific and technical information for domestic
agricultural and forestry offset practices that reduce or
avoid greenhouse gas emissions or sequester greenhouse gases.
``(3) Terms.--Terms shall be 3 years in length, except for
the initial terms, which may be up to 5 years in length to
allow staggered terms. Members may be reappointed only once
for an additional 3-year term, and such term may follow
directly after a first term.
``(4) Duties.--The Advisory Committee shall--
``(A) provide options and recommendations, not later than
180 days after the date of the enactment of the American
Clean Energy and Security Act of 2009, to the Secretary
regarding the establishment of methodologies as described in
section 504 of such Act, taking into account relevant
scientific information, including--
``(i) the availability of representative data for use in
developing an activity baseline for a land area, forest,
soil, industry sector, and facility type;
``(ii) the potential for accurate quanitification of
greenhouse gas reduction, or sequestration for an offset
practice type;
``(iii) the potential level of scientific and measurement
uncertainty associated with an offset practice type; and
``(iv) the use of practice methodologies that account for
common practice or other direct comparisons within a relevant
land area, industry sector, forest, soil, or facility type;
``(B) make available to the Secretary options and
recommendations for the program as a whole and on offset
methodologies for each practice type that should be
considered under regulations promulgated pursuant to section
504 of the American Clean Energy and Security Act of 2009,
including methodologies to address the issues of
additionality, activity baselines, measurement, leakage,
including the application of sector specific leakage factors,
uncertainty, permanence, and environmental integrity;
``(C) make available to the Secretary advice and comment on
areas where further knowledge is required to appraise the
adequacy of existing, revised, or proposed methodologies and
describe the research efforts necessary to provide the
required information;
``(D) make available to the Secretary advice and comments
on other ways to improve or safeguard the environmental
integrity of the offset practice types listed under section
503 of the American Clean Energy and Security Act of 2009;
and
``(E) provide options and recommendations regarding new
practice types.
``(5) Scientific review of offset program.--Not later than
January 1, 2017, and at 5-year intervals thereafter, the
Advisory Committee shall--
``(A) submit to the Secretary and make available to the
public an analysis of relevant scientific and technical
information regarding agricultural and forestry offset
practices that reduce or avoid greenhouse gas emissions or
sequester greenhouse gases;
``(B) review approved and potential practice types,
methodologies, scientific studies, offset project monitoring,
offset project verification reports, reporting of reversals,
audits related to the offset program, and other relevant
information needed to evaluate the offset program;
``(C) evaluate the net emission effects of implemented
offset projects; and
``(D) recommend changes to offset methodologies,
procedures, practice types, or the overall program to ensure
that--

[[Page H7618]]

``(i) the offset practices result in reduced or avoided
greenhouse gas emissions or sequestration of greenhouse
gases;
``(ii) the offset credits issued by the Secretary do not
compromise the integrity of the annual emissions reductions
established under section 703 of the Clean Air Act; and
``(iii) the offset program avoids or minimizes adverse
affects to human health and the environment.
``(6) Coordination.--To avoid duplication, the Advisory
Committee shall coordinate its activities with those of any
other Federal advisory committees working in related areas,
and shall to the maximum extent possible use research data
and services of the research, education, extension agencies
of the Department of Agriculture.
``(7) Consultation.--On a periodic basis, the Advisory
Committee shall consult with, and be informed by the views
of, the Offsets Integrity Advisory Board established under
section 731 of the Clean Air Act.
``(8) Meeting.--The Advisory Committee shall meet on at
least a quarterly basis each year.
``(9) Administrative support and funding.--The Secretary
may provide such administrative and funding support as
necessary to enable the Advisory Committee to carry out its
duties under this section.
``(10) Report.--For each fiscal year, the Secretary shall
submit to Congress a report on--
``(A) the status and progress on the offset practices;
``(B) the general status of cooperation and research and
development; and
``(C) the plans for addressing future issues and
concerns.''.

Subtitle C--Miscellaneous

SEC. 551. INTERNATIONAL INDIRECT LAND USE CHANGES.

Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is
amended by adding at the end the following
``(13) International indirect land use changes.--
``(A) Exclusion from regulatory requirements regarding
lifecycle greenhouse gas emissions.--Notwithstanding the
definition of `lifecycle greenhouse gas emissions' in
paragraph (1)(H), for purposes of determining whether the
fuel meets a definition in paragraph (1) or complies with
paragraph (2)(A)(i), the Administrator shall exclude
emissions from indirect land use changes outside the
renewable fuel's feedstock's country of origin.
``(B) National academies of science report.--(i) Not later
than 6 months after the date of enactment of this paragraph,
the Administrator and the Secretary of Agriculture shall
jointly arrange for the National Academies of Science to
review and report on specified issues related to indirect
greenhouse gas emissions related to transportation fuels.
``(ii) The report shall evaluate and report on whether
there are economic and environmental models and methodologies
that individually, or as a system, can project with
reliability, predictability, and confidence--
``(I) for purposes of determining whether the fuel meets a
definition in paragraph (1) or complies with paragraph
(2)(A)(i), indirect land use changes that are related to the
production of renewable fuels and that may occur outside the
country in which the feedstocks are grown, and the impacts of
these changes on greenhouse gas emissions; and
``(II) indirect effects, both domestic and international,
related to the production and importation of non-renewable
transportation fuels that have significant greenhouse gas
emissions, and the impact of these effects on greenhouse gas
emissions.
``(iii) The report shall include a review and assessment of
all pertinent scientific studies, methodologies and data,
shall evaluate potential methodologies for calculating such
emissions (including an evaluation of methods for annualizing
emissions associated with forest degradation or land
conversion), and shall make appropriate recommendations. The
recommendations shall address indirect effects, both domestic
and international, related to the production and importation
of non-renewable transportation fuels that have significant
greenhouse gas emissions. The report shall use appropriate
validation procedures, including sensitivity analyses, of how
results change as assumptions change. The evaluation shall
include for a model, a methodology, or a system of models--
``(I) an assessment of how reliably the models,
methodologies, or systems track actual outcomes over
historical periods using available historical data; and
``(II) an assessment of how reliably the models,
methodologies or systems will project future outcomes.
``(iv) The report shall be publicly available and shall
include sufficient information and data such that economists
and other scientists with relevant expertise that are not on
the National Academies of Science panel can fully evaluate
the conclusions of the report.
``(v) The report shall be completed within three years of
the date of enactment of this paragraph.
``(C) Determination.--(i) The Administrator and the
Secretary of Agriculture shall, after notice and an
opportunity for public comment, determine whether, for
purposes of determining compliance with the percent
reductions in lifecycle greenhouse gas emissions specified in
paragraph (1) for various renewable fuels, scientifically
valid models and methodologies exist to project indirect land
use changes that are related to the production of renewable
fuels and that occur outside the country in which the
feedstocks are grown, and the impact of these changes on
greenhouse gas emissions.
``(ii) The determination shall take into account the
findings and recommendations of the report required under
subparagraph (B), as well as other available scientific,
economic, and other relevant information. The Administrator
and the Secretary may also consider methods used by the
Environmental Protection Agency, the Department of
Agriculture, and other Federal agencies to assess or guide
their related policies.
``(iii) The Administrator and the Secretary of Agriculture
shall publish a proposed determination not later than 4 years
after date of enactment of this paragraph, and shall publish
a final determination not later than 5 years after date of
enactment of this paragraph. An explanation and justification
of the determination shall be included in the proposed and
final actions, together with a response to comments received.
``(D) Response to determination.--(i) In the event of a
positive determination under subparagraph (C), the
Administrator and the Secretary of Agriculture shall, after
notice and an opportunity for public comment, by the same
date jointly establish a methodology (or methodologies) to
calculate greenhouse gas emissions from indirect land use
changes that are attributable to the production of renewable
fuels and that occur outside the country in which feedstocks
are grown for purposes of calculating a renewable fuel's
lifecycle greenhouse gas emissions to determine whether the
fuel meets a definition in paragraph (1) or complies with
paragraph (2)(A)(i). The exclusion in subparagraph (A) shall
end, and the Administrator shall issue a regulation by the
same date that shall include emissions from indirect land use
changes outside the renewable fuel's feedstock's country of
origin for purposes of calculating a renewable fuel's
lifecycle greenhouse gas emissions to determine whether the
fuel meets a definition in paragraph (1) or complies with
paragraph (2)(A)(i) for renewable fuels sold in the calendar
year following the year of the positive determination. The
effective date of the regulation shall be six years after the
date of enactment of this paragraph.
``(ii) A negative determination under subparagraph (C)
shall include a statement of the basis for the determination.
``(E) Accountability.--The joint duties and actions of the
Administrator and the Secretary of Agriculture shall be
subject to sections 304 and 307 of this Act as if they were
the duties and actions of the Administrator alone.''.

SEC. 552. BIOMASS-BASED DIESEL.

Section 211(o)(2)(A) of the Clean Air Act (42 U.S.C.
7545(o)(2)(A)) is amended by adding at the end the following
new clause:
``(v) Grandfathering biomass-based diesel.--The
Administrator shall promulgate regulations exempting from the
lifecycle greenhouse gas requirements in subparagraphs (B)
and (D) of paragraph (1) up to the greater of 1 billion
gallons or the volume mandate adopted pursuant to
subparagraph (B)(ii) of biomass-based diesel annually from
facilities that commenced construction before the date of
enactment of the Energy Independence and Security Act of
2007.''.

SEC. 553. MODIFICATION OF DEFINITION OF RENEWABLE BIOMASS.

(a) National Academy of Sciences Report.--Not later than 1
year after the date of enactment of this Act, the
Administrator of the Environmental Protection Agency, the
Secretary of Agriculture, and the Federal Energy Regulatory
Commission shall jointly arrange for the National Academy of
Sciences to evaluate how sources of renewable biomass
contribute to the goals of increasing America's energy
independence, protecting the environment, and reducing global
warming pollution.
(b) Modification.--
(1) EPA modification authority.--After reviewing the report
required by subsection (a), the Administrator of the
Environmental Protection Agency, in concurrence with the
Secretary of Agriculture, may, by regulation and after public
notice and comment, modify the non-Federal lands portion of
the definition of ``renewable biomass'' in sections
211(o)(1)(I) and 700 of the Clean Air Act in order to advance
the goals of increasing America's energy independence,
protecting the environment, and reducing global warming
pollution.
(2) FERC modification authority.--After reviewing the
report required by subsection (a), the Federal Energy
Regulatory Commission, in concurrence with the Secretary of
Agriculture, may, by regulation and after public notice and
comment, modify the non-Federal lands portion of the
definition of ``renewable biomass'' in section 610 of the
Public Utility Regulatory Policies Act of 1978 in order to
advance the goals of increasing America's energy
independence, protecting the environment, and reducing global
warming pollution.
(c) Federal Lands.--
(1) Scientific review.--The Secretary of the Interior, the
Secretary of Agriculture, and the Administrator of the
Environmental Protection Agency shall conduct a joint
scientific review, within one year after the date of
enactment of this Act, to evaluate how sources of biomass
from Federal lands could

[[Page H7619]]

contribute to the goals of increasing America's energy
independence, protecting the environment, and reducing global
warming pollution.
(2) Modification authority.--Based on the scientific
review, the agencies may, by rule, modify the definition of
``renewable biomass'' from Federal lands in sections
211(o)(1)(I) and 700 of the Clean Air Act and section 610 of
the Public Utility Regulatory Policies Act of 1978 as
appropriate to advance the goals of increasing America's
energy independence, protecting the environment, and reducing
global warming pollution.

The SPEAKER pro tempore. After 3 hours of debate on the bill, as
amended, with 2\1/2\ hours equally divided and controlled by the Chair
and ranking minority member of the Committee on Energy and Commerce and
30 minutes equally divided and controlled by the Chair and ranking
minority member of the Committee on Ways and Means, it shall be in
order to consider a further amendment in the nature of a substitute
printed in part B of the report, if offered, by the gentleman from
Virginia (Mr. Forbes) or his designee, which shall be considered read,
and shall be debatable for 30 minutes, equally divided and controlled
by the proponent and an opponent.
The gentleman from California (Mr. Waxman) and the gentleman from
Texas (Mr. Barton) each will control 1 hour and 15 minutes. The
gentleman from New York (Mr. Rangel) and the gentleman from Michigan
(Mr. Camp) each will control 15 minutes of debate on the bill.
The Chair recognizes the gentleman from California.

General Leave

Mr. WAXMAN. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
on the legislation under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. WAXMAN. Madam Speaker, I yield myself such time as I may consume.
Today we are taking a decisive and historic action to promote
America's energy security and to create millions of clean-energy jobs
that will drive our economic recovery and long-term growth.
This bill, when enacted into law, will break our dependence on
foreign oil, make our Nation the world leader in clean-energy jobs and
technology, and cut global warming pollution. As a result of these new
policy settings, we will create millions of clean-energy jobs for
America and restore our technological leadership in clean energy. We
are also protecting consumers.
The bill tackles big problems that have been ignored for far too
long. It proposes solutions that will transform our economic and clean-
air environment.
There is a remarkable coalition behind this bill. Electric utilities
support the bill. Manufacturers support the bill. Farmers support the
bill, and so do the Nation's leading environmental organizations, labor
unions, and faith-based groups.
There are many Members responsible for this remarkable coalition. On
the Energy and Commerce Committee, John Dingell helped forge
compromises with the auto industry. Rick Boucher developed ideas that
will provide a future for coal. Mike Doyle addressed the concerns of
the steel industry and other trade-vulnerable industries. The chairman
of the Ways and Means Committee worked with us to make sure that the
interest of low-income families are fully protected. And the chairman
of the Agriculture Committee made sure the legislation addresses the
concerns of farmers and makes them part of our energy future.
The need to act is clear and urgent. There is a national security
imperative to act. This legislation at long last begins to break our
addiction to imported foreign oil and put us on a path to true energy
security.
There is a scientific imperative to act. The evidence on global
warming, on the consequences of carbon emission is overwhelming, and we
have based our bill on the science. And there is a moral imperative to
act. We have obligations to protect and preserve the environment for
our children and the generations that follow.
And there is an economic imperative to act. This legislation is an
enormous jobs bill for America. It will promote investment and growth
for decades ahead, creating jobs for the new-energy economy of the 21st
century.
People in industry have told us that as soon as this legislation
becomes law, we will find billions of dollars invested in
infrastructure over the next 5 years. We can see an incredible lost
opportunity if we don't act now. There are amazing developing new
technological centers around the U.S., and we can see those jobs going
overseas and that technological superiority going overseas as well.
And this bill is affordable. Contrary to what we will hear from our
friends on the other side of the aisle, the Congressional Budget Office
found that this legislation will cost households an average of only
$175 in 2020, less than 50 cents a day. EPA's analysis put the cost at
22 to 30 cents a day, less than the cost of a single postage stamp,
while lowering utility bills by 7 percent.
This bill is a tremendous opportunity to prevent a dangerous threat
while creating millions of new jobs and driving economic growth. It
will end our dependence on foreign oil and keep us more secure. This
bill will drive a new era of sustainable growth and innovation, and I
urge all Members to support it.

House of Representatives,

Committee on the Judiciary,

Washington, DC, June 24, 2009.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce, House of
Representatives, Washington, DC.
Dear Chairman Waxman: This is to advise you that, as a
result of your having consulted with us on provisions in H.R.
2454, the American Clean Energy and Security Act of 2009,
that fall within the rule X jurisdiction of the Committee on
the Judiciary, we are able to agree to waive seeking any
formal referral of the bill, in order that it may proceed
without delay to the House floor for consideration.
The Judiciary Committee takes this action with the
understanding that by forgoing further consideration of H.R.
2454 at this time, we do not waive any jurisdiction over
subject matter contained in this or similar legislation. We
reserve the right to seek appointment of an appropriate
number of conferees to any House-Senate conference involving
this important legislation, and request your support if such
a request is made.
I would appreciate your including this letter in the
Congressional Record during consideration of the bill on the
House floor. Thank you for your attention to our requests,
and for the cooperative relationship between our two
committees.
Sincerely,
John Conyers, Jr.
Chairman.
____

House of Representatives, Committee on Science and
Technology,
Washington, DC, June 19, 2009.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce, House of
Representatives, Rayburn House Office Building,
Washington, DC.
Dear Chairman Waxman: I write to you. regarding H.R. 2454,
the American Clean Energy and Security Act of 2009. This
legislation was initially referred to the Committee on Energy
and Commerce and in addition to the Committees on Foreign
Affairs, Financial Services, Education and Labor, Science and
Technology, Transportation. and-Infrastructure, Natural
Resources, Agriculture, and Ways and Means.
H.R. 2454 was reported to the House by the Committee on
Energy and Commerce on June 5, 2009. I recognize and
appreciate your desire to bring this legislation before the
House in an expeditious manner, and, accordingly, I will
waive further consideration of this bill in Committee.
However, agreeing to waive consideration of this bill should
not be construed as the Committee on Science and Technology
waiving its jurisdiction over H.R. 2454.
Further, I request your support for the appointment of
Science and Technology Committee conferees during any House-
Senate conference convened on this, or any similar
legislation. I also ask that a copy of this letter and your
response be placed in the Congressional Record during
consideration of this bill on the House floor.
I look forward to working with you as we prepare to pass
this important legislation.
Sincerely,
Bart Gordon,
Chairman.
____

House of Representatives,

Committee on Energy and Commerce,

Washington, DC, June 24, 2009.
Hon. Bart Gordon,
Chairman, House Committee on Science and Technology,
Washington, DC.
Dear Chairman Gordon: Thank you for your letter regarding
H.R. 2454, the ``American Clean Energy and Security Act of
2009.''

[[Page H7620]]

The letter noted that certain provisions of the bill are
within the jurisdiction of the Committee on Science and
Technology under rule X of the Rules of the House.
The Committee on Energy and Commerce recognizes the
jurisdictional interest of the Committee on Science and
Technology in these provisions. We appreciate your agreement
to forgo action on the bill, and I concur that this agreement
does not in any way prejudice the Committee on Science and
Technology with respect to the appointment of conferees or
its jurisdictional prerogatives on this bill or similar
legislation in the future.
I will include our letters in the Congressional Record
during consideration of the bill on the House floor. Again I
appreciate your cooperation regarding this important
legislation.
Sincerely,
Henry A. Waxman.
____

House of Representatives,

Committee on Energy and Commerce,

Washington, DC, June 25, 2009.
Hon. Edolphus Towns,
Chairman, House Committee on Oversight and Government Reform,
Washington DC.
Dear Chairman Towns: Thank you for your letter regarding
H.R. 2454, the ``American Clean Energy and Security Act of
2009.'' The letter noted that provisions of the bill are
within the jurisdiction of the Committee on Oversight and
Government Reform under rule X of the Rules of the House.
The Committee on Energy and Commerce recognizes the
jurisdictional interest of the Committee on Oversight and
Government Reform in these provisions. We appreciate your
agreement to work with us without sequential referral, and I
concur that this agreement does not in any way prejudice the
Committee on Oversight with respect to its jurisdictional
prerogatives on this bill or similar legislation in the
future. I also agree to support a request by the Committee
with respect to serving as conferees on the bill, consistent
with the Speaker's practice in this regard.
I will include our letters in the Congressional Record
during consideration of the bill on the House floor. Again I
appreciate your cooperation regarding this important
legislation.
Sincerely,
Henry A. Waxman,
Chairman.
____

House of Representatives, Committee on Oversight and
Government Reform,
Washington, DC, June 25, 2009.
Hon. Henry A. Waxman,
Chairman, House Committee on Energy and Commerce, Rayburn
House Office Building, Washington, DC.
Dear Chairman Waxman: I am writing regarding H.R. 2454, the
``American Clean Energy and Security Act of 2009''. I
appreciate your commitment and willingness to work with the
Committee on Oversight and Government Reform on the
provisions of H.R. 2454 that fall within the Oversight
Committee's jurisdiction. These provisions include matters
such as, but not limited to, federal procurement requirements
and the elevation of the Inspector General of the Commodity
Futures Trading Commission.
In the interest of expediting consideration of H.R. 2454,
the Oversight Committee agreed to work with you on these
provisions without a sequential referral of the bill. This
should not be construed as a waiver of the Oversight
Committee's legislative jurisdiction over subjects addressed
in H.R. 2454 that fall within the jurisdiction of the
Committee.
The Committee maintains its interest in any provisions of
the bill that are within the Committee's jurisdiction. I
therefore request your support for the appointment of
conferees from the Oversight Committee should H.R. 2454 or a
similar bill be considered in conference with the Senate.
I also respectfully request that you include our exchange
of letters on this matter in the Congressional Record during
consideration of this legislation on the House floor.
Thank you for your attention to these matters.
Sincerely,
Edolphus Towns,
Chairman.
____

House of Representatives,

Committee on Energy and Commerce,

Washington, DC, June 26, 2009.
Hon. Howard L. Berman,
Chairman, House Committee on Foreign Affairs,
Washington DC.
Dear Chairman Berman: Thank you for your letter regarding
H.R. 2454, the ``American Clean Energy and Security Act of
2009.'' The letter noted that certain provisions of the bill
are within the jurisdiction of the Committee on Foreign
Affairs under rule X of the Rules of the House.
The Committee on Energy and Commerce recognizes the
jurisdictional interest of the Committee on Foreign Affairs
in these provisions. We appreciate your agreement to forgo
action on the bill, and I concur that this agreement does not
in any way prejudice the Committee on Foreign Affairs with
respect to its jurisdictional prerogatives on this bill or
similar legislation in the future. I also agree to support a
request by the Committee with respect to serving as conferees
on the bill, consistent with the Speaker's practice in this
regard.
I will include our letters in the Congressional Record
during consideration of the bill on the House floor. Again I
appreciate your cooperation regarding this important
legislation.
Sincerely,
Henry A. Waxman,
Chairman.
____

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, June 26, 2009.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
Washington, DC.
Dear Mr. Chairman: I am writing to you concerning H.R.
2454, the American Clean Energy and Security Act of 2009.
This bill contains provisions within the Rule X
jurisdiction of the Committee on Foreign Affairs. In the
interest of permitting your Committee to proceed
expeditiously to floor consideration of this important bill,
I am willing to waive this Committee's right to mark up this
bill. I do so with the understanding that by waiving
consideration of the bill, the Committee on Foreign Affairs
does not waive any future jurisdictional claim over the
subject matters contained in the bill which fall within its
Rule X jurisdiction.
Further, I request your support for the appointment of
Foreign Affairs Committee conferees during any House-Senate
conference convened on this legislation. I would ask that you
place this letter into the Congressional Record during floor
consideration of H.R. 2454.
I look forward to working with you as we move this
important measure through the legislative process.
Sincerely,
Howard L. Berman,
Chairman.
____

House of Representatives,

Committee on Energy and Commerce,

Washington, DC, June 26, 2009.
Hon. Howard L. Berman,
Chairman, House Committee on Foreign Affairs,
Washington DC.
Dear Chairman Berman: Thank you for your letter regarding
H.R. 2454, the ``American Clean Energy and Security Act of
2009.'' The letter noted that certain provisions of the bill
are within the jurisdiction of the Committee on Foreign
Affairs under rule X of the Rules of the House.
The Committee on Energy and Commerce recognizes the
jurisdictional interest of the Committee on Foreign Affairs
in these provisions. We appreciate your agreement to forgo
action on the bill, and I concur that this agreement does not
in any way prejudice the Committee on Foreign Affairs with
respect to its jurisdictional prerogatives on this bill or
similar legislation in the future. I also agree to support a
request by the Committee with respect to serving as conferees
on the bill, consistent with the Speaker's practice in this
regard.
I will include our letters in the Congressional Record
during consideration of the bill on the House floor. Again I
appreciate your cooperation regarding this important
legislation.
Sincerely,
Henry A. Waxman,
Chairman.
____

House of Representatives, Committee on Science and
Technology,
Washington, DC, June 25, 2009.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
Washington, DC.
Dear Chairman Waxman: I write to you regarding Congressman
Boccieri's amendment to the amendment in the nature of a
substitute to H.R. 2454, the American Clean Energy and
Security Act of 2009.
It is my understanding that you are seeking my support to
have this amendment made in order for floor consideration. I
will support this amendment being made in order, but only
with the understanding that the programs contained in this
amendment are within the sole jurisdiction of the Committee
on Science and Technology based on our Rule X jurisdiction
over the National Institutes of Standards and Technology. In
addition, I ask for your commitment that the Science and
Technology Committee will be given deference in any House-
Senate conference on any matters relating to this provision
or any similar provision.
I look forward to working with you as we prepare to pass
this important legislation.
Sincerely,
Bart Gordon,
Chairman.
____

House of Representatives,

Committee on Energy and Commerce,

Washington, DC, June 25, 2009.
Hon. Bart Gordon,
Chairman, Committee on Science and Technology, Washington,
DC.
Dear Chairman Gordon: Thank you for your letter regarding
Congressman Boccieri's amendment to the amendment in the
nature of a substitute to H.R. 2454, the American Clean
Energy and Security Act of 2009.
I agree that the programs contained within this amendment
would receive an exclusive referral to the Committee on
Science and Technology. I also agree that the inclusion of
this provision in H.R. 2454 should not be construed to give
the Committee on Energy and Commerce a jurisdictional claim
to the provision. In addition, I agree to defer to the

[[Page H7621]]

Science and Technology Committee in any House-Senate
conference on any matters relating to this provision or any
similar provision.
I appreciate your support of this amendment, and I
appreciate your cooperation regarding this important
legislation.
Sincerely,
Henry A. Waxman,
Chairman.

I reserve the balance of my time.
Mr. BARTON of Texas. Madam Speaker, I ask unanimous consent that the
ranking member of the Agriculture Committee, the gentleman from
Oklahoma (Mr. Lucas), control the first 15 minutes of debate on the
minority side.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. LUCAS. Madam Speaker, I thank the gentleman from Texas, and I
yield myself such time as I may consume.
The Waxman-Markey bill promises to destroy our standard of living and
the quality of life with higher energy costs, higher food prices, and
lost jobs. The bill is the single largest economic threat to our
farmers and ranchers in decades. We have more than 115 agricultural and
food groups who publicly oppose this bill as of today, and I ask that
the list be entered in the Record.
Do you know why? The greatest threat to our agricultural producers is
ignored. Under H.R. 2454, input costs will escalate as a direct result
of the energy tax. Meanwhile, the markets for their crops will shrink
because of foreign competitors whose governments will not place burdens
on their farmers. They will be able to undersell us.
And what about the billions of dollars annually that farmers are
supposed to garner selling offset credits? Many farmers will not be
able to participate. Soil sequestration of carbon was going to be the
way for farmers to generate credits, but if the producer started soil
tillage practices before 2001, they will be ineligible to participate.
The amendment does not exempt agriculture from performance standards
in the bill, which means the EPA could tell our producers how to manage
their farms.
This bill will tax you. This bill will destroy the livelihoods of
those who live and work in rural America, those who work every day to
consistently provide our Nation and the world with a safe, affordable,
abundant food and fiber supply. Agriculture sits squarely in the
crosshairs of this bill because it is energy intensive. Whether it is
the fuel for the tractor, the fertilizer for the crops, or the delivery
of food to the grocery store, agriculture uses a great deal of energy
throughout production and processing.
Although USDA hasn't devoted any time or resources to complete an
economic analysis of how this bill will impact farmers, the Heritage
Foundation has. A recent study from the Heritage Foundation revealed
that by the year 2035, the average net income for farms will be
decreased by 57 percent. And also by 2035, gasoline and diesel costs
are expected to be 58 percent higher and electric rates 90 percent
higher. For example, residents in Oklahoma can expect their electric
rates to increase by $300 million.
So why are we doing this bill? So the U.S. can lead on climate change
in the world? We can lead when China and India have refused to
participate? We can lead when Europe is willing to do half of what this
bill calls for? We can lead when the rest of the developing world is
unable to do anything at all about climate change?
Some of my idealistic colleagues will say we have to set a standard
for the rest of the world. But I say I will not make any constituents
poor--poorer--so that others can get richer at our expense. My friends,
this is the wrong bill at the wrong time for the wrong reason.
Madam Speaker, I reserve the balance of my time.
Mr. WAXMAN. Madam Speaker, at this time I am delighted to yield to
the gentleman from Massachusetts (Mr. Markey), the chairman of the
Subcommittee on Energy and the Environment as well as the Select
Committee on Global Warming. He has played the fundamental role of
shepherding this bill through our committee and working to get it to
the floor today. I yield to Mr. Markey 3 minutes.
Mr. MARKEY of Massachusetts. I thank the gentleman from California,
and I thank him and his staff for the outstanding leadership and vision
which he has provided on this legislation. This is the culmination of a
career of work for the gentleman from California, and it is my honor to
have been allowed to partner with him in order to construct this
legislation that we bring to the floor here today.
I want to thank, as the gentleman from California has noted, the
other Members who have worked on this legislation: Mr. Dingell, Mr.
Boucher, Mr. Doyle, Mr. Inslee, Mr. Green, Mr. Butterfield, Mr. Stupak,
Mr. Rush. So many Members, including Members off the committee like
Henry Cuellar from the State of Texas who worked with us on natural
gas-related issues. We would not be here unless we had the cooperation
of so many Members across the full spectrum of the House.
During this process, we have received valuable input and expertise
from other leaders in the House, like Chairman Rangel on trade issues,
Chairman Peterson on agriculture issues, amongst, again, many others.
The legislation we have before us today is the most important energy
and environment legislation to ever have been considered in the history
of the United States. The consequences for our country are great unless
we act to deal with these issues.
This legislation sets a new course for our country, creating millions
of new, clean-energy jobs while reducing our dependence upon imported
oil. And when it becomes law, and it will, for the first time in the
history of the United States Congress, for the first time in the
history of our country, we will put enforceable limits on global
warming pollution.
At its core, however, this is a jobs bill. It will create millions of
new, clean-energy jobs in whole new industries with incentives to drive
competition in the energy marketplace. It sets ambitious and achievable
standards for energy efficiency and renewable energy from solar, wind,
geothermal, biomass so that by 2020, 20 percent of America's energy
will be clean.
It saves consumers money by updating efficiency standards for new
buildings, appliances, and lighting systems. It invests $10 billion a
year in energy efficiency programs in States across this country.
The SPEAKER pro tempore. The gentleman's time has expired.
Mr. WAXMAN. Madam Speaker, I yield the gentleman an additional
minute.
Mr. MARKEY of Massachusetts. And it starts the much-needed process of
making our electric grid a smart grid so we can plug in the hybrid and
electric cars of the future into an advanced, efficient energy network
that by the year 2030 we will be raising a generation of children who
know not how to receive gasoline at a gasoline station but, rather, by
plugging their cars into a plug so that the electricity that we are
generating ensures that those vehicles are being run for the benefit of
our people.
This is a revolution. This is a moment in history. This is what the
American people were calling for in the election of 2008, a fundamental
change that breaks our dependence upon imported oil, creates millions
of new jobs, reduces the amount of pollution that we send up into the
atmosphere, and points us in a new direction in our country that breaks
with the pattern of cyclical dependence on imported oil coming from
OPEC that holds our Nation hostage.
I urge an ``aye'' vote on this bill.
Madam Speaker, I rise in strong support of H.R. 2454, the Waxman-
Markey American Clean Energy and Security Act.
I want to start by thanking the Chairman of the Energy and Commerce
Committee and my partner in this legislation, Henry Waxman. He and I
and our staffs have worked tirelessly on this bill, and his leadership,
patience and fortitude have been remarkable.
And I want to thank all of my Energy and Commerce colleagues,
especially Rick Boucher, John Dingell, Mike Doyle, Jay Inslee, Gene
Green, GK Butterfield, Bart Stupak and so many others. And special
thanks to Speaker Nancy Pelosi on her outstanding leadership on these
issues since she became Speaker.
And during this process we have received valuable input and expertise
from other leaders in the House like Chairman Rangel on trade issues
and Mr. Peterson on agriculture issues.
The legislation we have before us today is the most important energy
and environmental

[[Page H7622]]

legislation in the history of our country. It sets a new course for our
country, one that steers us away from foreign oil and towards a path of
clean American energy.
It will create millions of new clean energy jobs while reducing our
dependence on foreign oil.
And when it becomes law, it will, for the first time in the history
of the United States Congress, put enforceable limits on global warming
pollution.
I also want to take time to commend my colleague John McHugh for his
outstanding leadership on acid rain and air pollution control.
His state and my state both share a common problem of transported air
pollution which falls in New York and New England as acid rain.
John McHugh has worked tirelessly to protect public health and the
environment from the deleterious effects of air pollution, especially
the problems of acid rain and toxic mercury pollution.
Reducing emissions of greenhouse gases must be done immediately to
stop global warming, but we must also continue to reduce emissions of
NO<inf>X</inf> SO<inf>X</inf> and mercury.
The technologies that we will use to reduce global warming pollution
will also reduce other pollutants that kill our citizens and damage our
environment.
We need to get the programs, including the Clean Air Interstate Rule
and facility-specific mercury regulations, back on track.
Representative McHugh has introduced H.R. 1841, legislation that
would help protect public health and fight acid rain.
That legislation describes well the problems we face today in
fighting acid rain, soot and smog and sets forth thoughtful solutions
to those problems. I agree with the gentleman that:
(1) reductions of atmospheric sulfur dioxide and nitrogen oxide from
utility plants, in addition to the reductions required under the Clean
Air Act (42 U.S.C. 7401 et seq.), are needed to reduce acid deposition
and its serious adverse effects on public health, natural resources,
building structures, sensitive ecosystems, and visibility; (2) sulfur
dioxide and nitrogen oxide contribute to the development of fine
particulates, suspected of causing human mortality and morbidity to a
significant extent; (3) regional nitrogen oxide reductions of 75
percent in the Eastern United States, in addition to the reductions
required under the Clean Air Act, may be necessary to protect sensitive
watersheds from the effects of nitrogen deposition; (4) since the Clean
Air Act Amendments of 1990 were enacted, some acidic lakes in the
Adirondacks in the State of New York have started to slowly show
chemical recovery from acid rain, demonstrating that sulfur dioxide and
nitrogen oxide regulations can be implemented in a cost-effective
manner, but the recovery is progressing at a slower rate than
originally intended; (5) nitrogen oxide is highly mobile and can lead
to ozone formation hundreds of miles from the emitting source; (6) on
March 10, 2005, the Environmental Protection Agency (EPA) issued the
Clean Air Interstate Rule (CAIR) to require additional reductions in
sulfur dioxide and nitrogen oxide in 28 Eastern States and the District
of Columbia; (7) these reductions represent approximately a 70 percent
reduction in sulfur dioxide and a 60 percent reduction in nitrogen
oxide in the affected States; (8) on July 11, 2008, the United States
Court of Appeals for the District of Columbia Circuit vacated CAIR and
on December 23, 2008, the same court remanded the rule back to the EPA
without vacature; (9) fossil fuel-fired electric generating units emit
approximately 1/3 of the total mercury emissions in the United States;
(10) mercury is considered a neurotoxin which can bioaccumulate as it
moves its way up the food chain and is especially harmful to
young children and developing fetuses; (11) according to the EPA, there
were 3,080 fish advisories for mercury in 2006; there are over 90 fish
advisories for mercury in New York alone, with blanket warning for the
Adirondack and Catskill Mountains; (12) on March 15, 2005, EPA issued
the Clean Air Mercury Rule (CAMR), which for the first time sought to
regulate mercury emissions from power plants, but used a less
restrictive cap-and-trade approach for this very harmful substance and
would take a full decade to implement; (13) on February 8, 2008, the
United States Court of Appeals for the District of Columbia Circuit
vacated CAMR; and (14) on February 23, 2009, the Supreme Court denied a
request to reconsider the decision.

This bill includes a study on the effects of different carbon
reduction strategies on reducing emissions of NO<inf>X</inf>,
SO<inf>X</inf> and mercury. Such a study will ensure that as we move to
control greenhouse gas emissions, particularly from coal fired power
plants that emit mercury, NO<inf>X</inf> and SO<inf>X</inf>, we do not
lose the opportunity to implement the most cost effective ways of
controlling soot, smog and mercury.
This is exactly the type of very thoughtful work that John McHugh has
done during his many years in Congress to protect public health and
fight acid rain and I am proud to stand beside this champion of
environmental protection as we move to pass this legislation.
At its core, this is a jobs bill. It will create millions of new,
clean energy jobs in whole new industries with incentives to drive
competition in the energy marketplace.
It sets ambitious and achievable standards for energy efficiency and
renewable energy from solar, wind, geothermal and biomass, so that by
2020, 20 percent of America's energy will be clean.
It saves consumers money by updating efficiency standards for our new
buildings and the appliances and lighting systems we use. It invests
$10 billion a year in energy efficiency programs in states across the
country.
And it starts the much-needed process of making our electric grid a
Smart Grid, so we can plug in the hybrid and electric cars of the
future into an advanced, efficient, domestically-powered energy network
that will give consumers more control of their power bill.
It makes nearly $200 billion in investments in clean energy
technologies, including $20 billion in vital clean energy research and
development.
And it does all this while nearly doubling the size of the economy by
2030, remaining budget neutral, and costing the average American family
less than a postage stamp a day--a small price to pay as we transition
off foreign oil once and for all.
By bringing competition and efficiency back to the energy
marketplace, Waxman-Markey will deliver consumer savings. America's
low-income families will actually benefit by $40 a year in 2020, and
the energy efficiency policies alone will save American families more
than $200 every year by 2030.
This bill address a technological imperative to lead on clean energy,
the economic imperative to compete in a global clean energy race, and
the moral imperative to protect our planet and the rights of all to
live and prosper for generations to come.
This bill has the goals of the moon landing, the moral imperative of
the Civil Rights Act, and the scope of the Clean Air Act, wrapped up in
one.
I believe this is the most important vote we will take in our lives.
The entire world is watching us. Our children and grandchildren are
watching us. We have a choice to make and the fate of the planet hangs
in the balance.
We cannot afford to be governed by fear and cling to the failed
policies that have brought us to this crisis. As the President said
yesterday: ``We cannot be afraid of the future, and we can't be
prisoners of the past.''
Scientists say that global warming is a dangerous man-made problem.
Today we are saying clean energy will be the American-made solution.
This is an historic bill. This is a historic vote. This is a historic
choice.
I urge my colleagues to support the Waxman-Markey American Clean
Energy and Security Act. Vote ``aye.''

{time}  1300

Mr. LUCAS. Madam Speaker, I recognize the gentleman from Virginia
(Mr. Goodlatte) for 2 minutes.
(Mr. GOODLATTE asked and was given permission to revise and extend
his remarks.)
Mr. GOODLATTE. Madam Speaker, I rise in strong opposition to this
bill.
I agree with one thing the gentleman from Massachusetts had to say
and, that is, this bill has very important consequences, but those
consequences are devastating for the future of the economy of this
country, and it's in pursuit of the fantasy of thinking that this
legislation will cause us to be able to turn down the thermostat of the
world by reducing CO<inf>2</inf> gas emissions when China and India and
other nations are pumping more and more CO<inf>2</inf> gas into the
atmosphere all the time.
We would be far better served with legislation that devotes itself to
developing new technologies before we slam the door on our traditional
sources of energy like coal and oil and natural gas and nuclear power,
the most CO<inf>2</inf>-free emission that we have; and this bill does
nothing to promote it.
It stifles the ability of the people of this country to have the kind
of competitiveness they need in the world to be able to get inexpensive
sources of energy. So I strongly oppose this legislation.
You know, we, Republicans and Democrats, offered over 200 amendments
to try to improve this bill. They made in order one. In shutting down
this democratic process, the Speaker of the House has taken away the
voice of the American people. The simple truth behind this legislation
is it raises taxes, kills jobs, and will lead to more government
intrusion.

[[Page H7623]]

It is estimated this bill will raise electricity rates 90 percent,
gasoline prices 74 percent, natural gas prices 55 percent--and that's
in addition to the expected rise in all of those sources of energy
because this Congress, for the last 2\1/2\ years, has refused to take
up a real American energy plan to devote more to producing domestic
sources of all of our traditional sources of energy and developing new
sources.
We support the effort for energy efficiency. We support the effort to
promote new and alternative forms of energy. We do not support this
kind of suicide for the American economy.
I urge my colleagues to oppose this legislation.
It would be true democracy to allow the people's representatives to
have a say about what is in this legislation. However, committees with
jurisdiction, including the Agriculture Committee, were not allowed to
mark-up the bill and make changes.
The simple truth behind this legislation--it raises taxes, kills jobs
and will lead to more government intrusion. Many have said the
``Peterson compromise'' is a win for farmers. Let me be clear, this
legislation is not a win for American famers. Agriculture is an energy
intensive industry, and this legislation will make the cost of energy
even higher for everyone.
In effect this legislation turns off the ability to produce energy
from reliable sources in favor of energy technologies that have not
proven that they can meet the energy demands of our nation. We cannot
ignore that America's economy is intrinsically linked to the
availability and affordability of energy. During this economic slow-
down we should adopt policies that seek to rebuild our economy and
create more jobs. We need reliable and affordable energy supplies.
Unfortunately, cap and trade legislation would only further cripple our
economy.
Mr. WAXMAN. Madam Speaker, I want to yield now to the gentleman who
had been the chairman of the Energy Subcommittee on our full committee
last Congress and who was instrumental in getting the first draft of
the legislation that we worked off, but more importantly, as a
knowledgeable individual of this area and from a constituency that has
a special concern about the problems, he was able to negotiate with us
so that we could reach some of the accommodations in this legislation
that has made it a much better bill.
I yield, with great admiration, 5 minutes to the gentleman from
Virginia (Mr. Boucher).
(Mr. BOUCHER asked and was given permission to revise and extend his
remarks.)
Mr. BOUCHER. I thank the gentleman from California for yielding and
congratulate him on the tremendous leadership that he has shown in
bringing this measure to the House floor this afternoon.
Madam Speaker, I rise in strong support of the bill, and I urge its
approval by the House. It achieves broad reductions in greenhouse
gases, enhances America's energy security, and by placing a price on
carbon dioxide emissions, will unleash investments in clean-energy
technologies that will create millions of new American jobs.
These energy technologies will evolve from America's laboratories;
they will be deployed at home; they will be exported around the world;
they will be the foundation for our next technology revolution. And it
all starts here with passage today of the Clean Energy Security Act.
Approximately 80 percent of the electricity in the district that I
represent is coal-generated. Coal production is one of our region's
major industries, and it is a major employer of our constituents. Not
surprisingly, my focus in the shaping of the bill in the Energy and
Commerce Committee was to keep electricity rates affordable and to
enable utilities to continue using coal, which accounts for fully 51
percent of America's electricity generation. Both of these goals have
been achieved in the bill that is before us today.
Electricity rates will be only modestly affected. The nonpartisan
Congressional Budget Office says that by 2020, the cost of the entire
program for the typical American family will be $175 per year. The
Environmental Protection Agency projects that the nearer-term cost for
the typical family from all elements of this legislation will be
between $80 and $110 per year; that's about 20 cents a day for the
typical American family. And so the claims by the opponents that this
legislation will impose enormous electricity price increases are simply
wrong.
The Environmental Protection Agency projects that by 2020, the usage
of coal in our economy will grow as compared to today's usage. Now,
that may seem somewhat counterintuitive in a bill that regulates
greenhouse gas emissions, so let me repeat that: the EPA projects that
by 2020, coal usage in America, under the terms of this bill, will
actually grow.
As transportation electrifies and the demand for electricity
increases, coal, our most abundant fuel, will still be the fuel of
choice to meet that rising demand. The claims of opponents that the
CO<inf>2</inf> controls under the bill will force utilities to
surrender coal use, causing an overreliance on natural gas with
attendant broad economic harm to the Nation, are also simply wrong.
This is a responsible measure. It is carefully balanced; it reduces
greenhouse gases by 83 percent by the year 2050 as compared to 2005
levels; it keeps electricity rates affordable; it enables coal usage to
grow as the demand for electricity increases nationwide; and it opens
the door to a more secure energy future and the creation of millions of
new jobs, innovating, deploying and exporting to the world the new,
low-carbon-dioxide-emitting technologies that will power our energy
future.
Now, these are sound reasons to approve the bill; but for those who
still harbor doubts, let me make a more practical argument to vote for
passage.
In March of 2007, the Supreme Court held that carbon dioxide is a
pollutant. Under that ruling, and the terms of the existing Clean Air
Act, the Environmental Protection Agency is now effectively required to
regulate CO<inf>2</inf> emissions, and so Federal regulation for
greenhouse gases is now inevitable. It is not a question of whether we
are going to have regulation. The only question is whether the
regulation will be our carefully balanced, congressionally adopted,
economically sustainable regulation, as contained within the bill
before us today, or whether we will have EPA's regulation under the
blunt instrument of the Clean Air Act where economic considerations
cannot be fully waived.
Given that choice, and the path this bill charts for affordable
electricity, for increased coal use, and for new job creation, I would
urge the Members to make the reasonable decision to approve today the
Clean Energy Security Act.
Mr. LUCAS. Madam Speaker, I yield 2 minutes to the gentleman from
Kansas (Mr. Moran).
Mr. MORAN of Kansas. I thank the gentleman for yielding.
Madam Speaker, there is an assertion, a story around Congress today
that with the adoption of the Peterson amendment, the negotiations
between the chairman of the Agriculture Committee and the chairman of
the Commerce Committee, that this bill somehow now becomes acceptable,
something advantageous for those of us who represent rural America. I
can assure my colleagues, Republican or Democrat, who come from rural
America and who represent agricultural interests that nothing could be
further from the truth. While the Peterson amendment substantially
improves the bill, at least modestly improves the bill, the end result
is nothing but something that is disadvantageous and negative for rural
economies.
Agriculture had thought at one point in time there would be something
they could gain from sequestering carbon in the soil, and yet this bill
still provides no assurance that the EPA--not the Department of
Agriculture, but that the EPA will allow that to occur. If they would,
then the Department of Agriculture is involved; but once again,
agriculture is not even mentioned in this bill in regard to offsets.
In addition to that, the electric cooperatives are still
disadvantaged. If you come from rural America, the allowances that this
bill allows are advantages to those who live on the west and east
coasts, and yet those of us who represent some of the poor areas of the
country, we will be transferring our income and wealth to those coasts.
This bill, in my opinion, is a jobs bill, as indicated by the
gentleman from

[[Page H7624]]

Massachusetts, but it is a jobs elimination bill. This bill creates a
significant competitive disadvantage for American small business and
agriculture as we try to compete in the global economy in which other
countries do not abide by these caps, rules, or regulations.
I would assert that during my time in Congress there is no piece of
legislation that will be more damaging to the future of rural America,
to the future of small farms and businesses than the bill that is
before us today. This bill--a jobs bill, as described by the gentleman
from Massachusetts--is a job elimination bill, not a job creation bill.
I urge my colleagues, both Republicans and Democrats, who come from the
Midwest, who come from rural America to vote ``no.''
Mr. WAXMAN. Madam Speaker, it is my privilege now to yield 1 minute
to a very important member of the committee, Mr. Engel.
Mr. ENGEL. I thank the chairman for yielding to me, and I rise in
support of this bill as I supported it in committee.
I think this bill goes a great step in the right direction. It will
revitalize our economy by creating millions of clean-energy jobs,
increase our national security by reducing our dependence on foreign
oil, and help preserve our planet by reducing greenhouse gas emissions.
But I want to mention, as I did in committee, my disappointment that
the bill does not contain strong enough language in terms of flex-fuel
cars in this country. I believe very strongly that the United States
needs to move towards cars manufactured in America that can run on
methanol, ethanol, and gasoline. If you give gasoline competition with
ethanol and methanol, I believe that it will reduce the price of
gasoline. So I am disappointed that while the bill goes a step in that
direction, it doesn't go totally in the direction that I would like to
see.
Yesterday, Energy Secretary Chu said all new cars should have flex-
fuel capacity in this country. And I would like to enter this into the
Record from The Des Moines Register.
Madam Speaker, flex-fuel vehicles would only cost $90 or $100 per
car, and it would be very important to moving us in that direction.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman 1 minute.
Mr. ENGEL. I thank the chairman.
Just 6 months ago, the CEOs of GM, Chrysler and Ford appeared before
the House Financial Services Committee, and each committed to making 50
percent of their cars flex-fuel vehicles by 2012. They are reneging
now, and I believe that we should have strong language to move them
back to their original position. I really believe that flex-fuel cars
are the way to go.
But we have a bill before us, and the bill is much, much more
positive than anything else. It is a big step in the right direction.
And I think that our colleagues who are on the fence--as I pointed out,
the bill doesn't give everything to everybody and it doesn't do nearly
what I would like it to do, but I think it does enough so that we ought
to move this country in the right direction to make ourselves energy
independent, to reduce the warming of our planet, and to reduce the
greenhouse gases.
So I would urge my colleagues for a ``yes'' vote. We can work
afterwards to make the bill better, we can work afterwards to have the
policies that we want to see, but rejection of this bill would be a
terrible step in the wrong direction.
I urge my colleagues to vote ``yes.''

[From the Des Moines Register, June 22, 2009]

Chu: All New Cars Should Have Flex-Fuel Capacity

(By Thomas Beaumont)

U.S. Energy Secretary Steven Chu said in Des Moines today
the nation's car manufacturers ought to make all new
automobiles able to run on E85 ethanol-blended fuel.
But Chu said the government could face resistance should it
insist on the new standard, despite two of the nation's three
main automakers' having recently filed for bankruptcy
protection.
Chu, in Iowa awarding the state a share of its federal
stimulus money, later said all pumps ought to offer at least
a blend of 15 percent ethanol.
``We should think about doing the following. I've been told
it costs about $100 in gaskets and fuel lines to turn a car
so that it can go all the way to E85,'' Chu said, addressing
public officials and news media at the Des Moines Botanical
Center.
E85 is a blend of 85 percent ethanol and 15 percent
gasoline. Iowa is the nation's leading producer of ethanol.
``But a new car, it would only cost $100 out of $15,000.
Wouldn't it be nice to put in those fuel lines and gaskets so
that we can use any ratio we wanted,'' Chu added. ``It's just
a thought, I don't think you're going to get any objections
in this audience.''
Chu stopped short of saying the Obama administration would
require the companies to build all vehicles as flex-fuel-
ready.
``It's beginning to be discussed,'' Chu said. ``But, again,
it's one of those things where I think with virtually
anything, once the government steps in the natural tendency
is to resist government intervention.''
General Motors and Chrysler have recently sought
bankruptcy. The federal government would become a majority
shareholder in GM.
There is legislation pending in Congress that would require
all domestic automobiles to eventually make all vehicles
capable of running on E85.
Monte Shaw, executive director of the Iowa Renewable Fuel
Association said the government's new financial stake in the
auto industry means it can require the higher renewable fuel
standard.
``Clearly, if the White House decided they wanted GM and
Chrysler to do this, they would do it,'' Shaw said. ``I think
it would be good. Once one company goes that way, I think it
puts pressure on the other automakers not to be left out.''

Mr. LUCAS. Madam Speaker, I recognize the gentleman from Ohio (Mr.
Latta) for 1 minute.
Mr. LATTA. I thank the gentleman for yielding.
Madam Speaker, I rise today in opposition to this massive national
energy tax.
You know, we are all for clean energy. And Republicans have put forth
an all-of-the-above strategy, and that's the strategy we need to do in
this country. We can't pick winners and losers.
I represent a very interesting district in Ohio. Not only do I
represent the largest manufacturing district in the State of Ohio, I
represent the largest agricultural district. Ohio uses 87 percent of
its coal for our generation. What this bill is going to do is kill jobs
in Ohio, and we are struggling right now. It's tough.
One of the things that a lot of people don't realize out there
because we have so few farmers out there that are left, less than 1
percent in Ohio, is that we have so many of our farmers, my relatives
included, that not only work a full day on the farm, but they go out
and work all night on another job. But we've got to have jobs going
both ways parallel with each other.
This bill is not going to help these people out there. This bill is
going to kill jobs across this country. And when the Secretary of
Agriculture was before us not too long ago, I posed this question: Is
China going to comply with what we're going to do? And the answer was,
Well, maybe not this month, or maybe not next month, but it's going to
happen.
The SPEAKER pro tempore. The gentleman's time has expired.
Mr. LUCAS. I yield the gentleman an additional 15 seconds.
Mr. LATTA. We can't put the American farmer behind the proverbial
eight ball. We've got to be able to compete against the world, and this
bill is going to kill that ability to do that.
I thank the gentleman for yielding.

{time}  1315

Mr. WAXMAN. Madam Speaker, it's my distinct honor to yield 2 minutes
to the chairman emeritus of our committee who has been the leader in
fashioning so many important legislative proposals that are now law and
are serving our country so well, the gentleman from Michigan (Mr.
Dingell).
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. I thank my good friend from California for his kind
remarks, and I express my appreciation to him.
Madam Speaker, I rise in support of the Clean Energy Security Act.
But before I address my remarks, I want to congratulate you on your
distinguished service here and wish you well in the future and express
my personal distress that you are leaving us.
Now, my colleagues on the Republican side, they are very anxious to
criticize the bill. And there are criticisms that can be had. There is
not one of the 435 of us that could not come forward with statements in
saying that

[[Page H7625]]

the bill could be improved and that there are faults in the bill. Both
of those statements are true.
But the harsh fact of the matter is it is urgent that we commence
acting upon this legislation. It is based largely on the
recommendations of USCAP, which is a diverse group of environmental
groups and industry with a shared desire for a commonsense bill to
address climate change. That process began last year with the drafting
of the initial versions of this legislation, which were taken and which
were then handled by my friend from California. I would note that those
proposals have undergone significant improvement by reason of the work
of Members of this Congress and this committee.
Now, there are some hard facts to be addressed. There's a scientific
consensus that we need to address climate change quickly and
effectively. We need and industry needs certainty. This bill gives
certainty to American industry. Without this certainty new expansion
and new investment in this difficult time is not going to occur. There
will be jobs which will flow from this legislation.
Actions by the Supreme Court, and I urge my colleagues to be scared
to death of this----
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman an additional minute.
Mr. DINGELL. Actions by the Supreme Court in a recent endangerment
finding by EPA makes it critically important that we act. Otherwise,
greenhouse gases will be regulated by EPA. And if you want something to
shudder about, I beg you to take a look at that because we will see
better than 300 different kinds of regulations coming from Federal and
State bodies if we're charged with this.
Now, the bill does protect the consumers. It's going to cost
consumers about $175 a year. It will also protect American
manufacturing, and there are provisions in the legislation for that.
And it has, in addition to that, additional programs which will meet
the concerns of all of our branches of industry--coal, electric
utility, manufacturing, chemicals--and also the securities market,
which will be controlled under an amendment offered by our good friend
and colleague Mr. Stupak.
I am happy that this bill does have a dedicated allowance for natural
resource adaptation and significant protection in acquisition of lands.
This is a good bill. I urge my colleagues to support it.
Madam Speaker, I rise in support of the American Clean Energy and
Security Act.
Is the bill before us perfect? No. But I have long told my friends on
both the right and the left, we must not let the perfect be the enemy
of the good.
The legislation before us is largely based on the recommendations of
USCAP, a diverse group of environmental groups and industry with a
shared desire for a commonsense bill to address climate change.
One might ask why such a diverse group would agree on a matter like
this. Well, the answer is three-fold:
1. There is scientific consensus that we need to address climate
change quickly and effectively.
2. We need, and industry needs, certainty. Without this certainty,
expansion and new investment is not going to happen.
3. Actions by the Supreme Court which led to the recent endangerment
finding by EPA makes it critically important we act. If we do not, we
will face regulation under the Clean Air Act--and I assure you, the
Clean Air Act was not designed to regulate greenhouse gases.
I am pleased with the provisions of the bill to protect consumers--
the legislation will cost consumers on average only $175 per year--and
protect American manufacturing and pave the way for the green jobs of
the future. In fact, my home state of Michigan just had some wonderful
news today: General Electric has decided to locate a new research &
development facility, working on renewable energy technologies and
other green jobs in the 15th District, which I have the honor of
representing. We have the best workers in the world in Michigan and I
look forward to many more green job announcements just like this thanks
to provisions in this bill. However, job protection and creation
warrants a very watchful eye to ensure the United States does not face
job leakage and these matters will need to be readdressed if we do see
such consequences.
We have seen remarkable innovations from our automakers and this bill
builds on those successes by providing allowance values for retooling
existing plants to make the cars of the future and new, green job
creation here at home.
I am very pleased the bill includes an amendment I offered to
establish a Clean Energy Bank. As we transition to clean energy, we
must fund the R&D as well as deployment of these energy sources to meet
the mounting demand for zero-carbon technology to dramatically reduce
our greenhouse gas emissions.
Finally, I am very pleased that this bill includes a dedicated
allowance for natural resource adaptation. The great conservationist
and the 26th President of these United States, Theodore Roosevelt,
taught us that conservation is a great moral issue--that it is our
duty, as it insures the safety and continuance of the nation.
This is a good bill and I urge my colleagues to support it.
Mr. LUCAS. Madam Speaker, I wish to recognize the gentleman from
Texas (Mr. Conaway) for 1 minute.
Mr. CONAWAY. Madam Speaker, I too congratulate you on your long
distinguished service.
There's an old Western movie entitled ``Bad Day at Black Rock.''
Madam Speaker, if this bill passes today, this will be a bad day at
Black Rock for America.
This bill will raise energy costs. Our President has said they will
skyrocket. Claims of higher coal usage at lower costs are nonsensical
on their face. The sense of urgency is muted by the fact that we delay
implementation of many of these provisions for years and years in order
to convince people to vote for this nonsense. It has no meaningful
effect.
We all want to breathe clean air. We all want to drink clean water.
God has put us on this Earth as responsible stewards of these
resources, and we ought to use them responsibly. This bill does not do
it. In fact, it does nothing good. The only meaningful thing that it
might do is provide a relatively meaningless photo op for our President
in December in Copenhagen as he stands to brag about what America has
done while the leaders of India and China laugh at us behind his back.
A vote for this bill is a vote to lower living standards for all
Americans for the foreseeable future. I urge my colleagues to vote
against this bill. It does nothing good.
Mr. WAXMAN. Madam Speaker, I yield 1 minute to my colleague from
California (Ms. Eshoo), who is a very important member for our
committee.
Ms. ESHOO. I thank our very distinguished chairman for yielding.
First, Madam Speaker, congratulations to you and God speed.
There may be no more critical issue facing our Nation today than that
of our energy future and the desperate need for new policies that will
dramatically and forever change how we live and work in our country.
Our national security is irrevocably linked to it. Our economic
stability depends on it. The future of our planet, the legacy of health
and prosperity we all want to leave for our children cannot be assured
without it. So it's time to take up this energy bill.
In this season of days we are granted in this honorable institution,
this is truly a historic moment. By passing this act, we are
guaranteeing an investment of $190 billion in new, clean-energy
technologies and energy efficiency, creating jobs, spurring on new
industries, and fulfilling the desire of all Americans that each of us
in our own way can make this a better world.
In my home district of Silicon Valley, dozens of burgeoning companies
at the cutting edge of green and clean-energy technology are poised for
an explosion in innovation and healthy, sustainable economic growth.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. WAXMAN. I yield another 30 seconds to the gentlewoman.
Ms. ESHOO. I thank the gentleman.
It's a particular pride for me to have had the opportunity to work on
this act and to influence some of its outcome. I'm proud that my own
bill, H.R. 1742, the Electric Vehicle Infrastructure Act, which will
allow State and local governments to apply for financial assistance for
the deployment of regional infrastructure to support the widespread use
of electric vehicles, is included.
We are a hardworking people, Madam Speaker, who face the future with
optimism and hope. This act embodies these qualities, a vehicle for our
willingness to work hard, to innovate, to

[[Page H7626]]

imagine a better future, and then to reach out and grasp it.
Mr. LUCAS. Madam Speaker, I yield 1 minute to the gentleman from Iowa
(Mr. King).
Mr. KING of Iowa. I thank the gentleman from Oklahoma for yielding.
Madam Speaker, first I would say that the canard of this court case
that says the EPA will regulate CO<inf>2</inf> regardless, it takes a
little change in Interior approps to fix that. We're the United States
Congress. We don't capitulate to cap-and-tax because a court made a
ruling; we tell them what the American people think.
Second, this bill freezes or rolls back oil, natural gas, coal,
nuclear, and biofuels. We'll have less. We are not going to break
dependency on foreign oil with less energy. Iowa no-till corn farmers,
6.2 million acres; 5 million of them went in before 2001, and only 25
percent of those that went in afterwards will be able to qualify
because they rotate. So we're down to 4.8 percent of the guys doing it
right. One out of 20 are going to get any benefit out of the Peterson
amendment that's been incorporated into this bill.
And, furthermore, when Speaker Pelosi set up the cap-and-trade and
bought the carbon credits, I can't verify that any of that changed any
behavior for the positive. The ones I could verify had already been in
place.
We've seen the example in Spain. It's a colossal mistake there, a
political and an economic error. This could be the most colossal
mistake ever made in the history of the United States Congress.
Mr. WAXMAN. Madam Speaker, I am pleased at this point to yield 1
minute to my good friend and colleague from southern California (Mrs.
Capps).
Mrs. CAPPS. Madam Speaker, I rise with great pride today to express
my support for the American Clean Energy and Security Act.
Over the last two Congresses, thanks to tremendous leadership, we
have built a record on energy and climate policy that indicates that
the time for action is now. America is ready. The world is watching. We
must transition to a clean-energy economy so that we can create jobs,
achieve energy independence, and protect our planet.
We have before us a powerful, thorough, and effective bill. It
includes a nationwide renewable electricity standard. It contains
critical investments in energy efficiency. It requires immediate
significant reductions in greenhouse gas emissions that are harming the
health of our people and our planet.
The bill also makes substantial investments in domestic,
international, natural resource, and public health adaptations that are
crucial to the continuing prosperity of our Nation and our world.
Madam Speaker, to protect our health, to protect our economy, our
national security, and our planet, we must enact comprehensive climate
legislation and we must enact it now. We cannot sit idly by. I hope
others will join me in seizing this opportunity to transition our
economy to a new, clean-energy economy.
I urge a ``yes'' vote on this bill.
Mr. LUCAS. Madam Speaker, once again I would like to yield 1 minute
to the gentleman from Pennsylvania (Mr. Thompson).
Mr. THOMPSON of Pennsylvania. I thank my friend from Oklahoma for
yielding.
I have more concerns with this legislation than I even have time to
discuss. But since agriculture is Pennsylvania's number one industry
and because I'm a member of the House Agriculture Committee, I would
like to focus on the alarming effects cap-and-trade will have on the
farmers in my home State.
This legislation, through mandates, attempts to decrease our use of
fossil fuels. The whole point of cap-and-trade is to make fossil fuels,
or 85 percent of the energy we consume, more expensive. Fossil fuels
are essential for energy and electrical generation and also are equally
important to use as a feedstock in many goods that we utilize.
Agriculture is an energy-intensive industry, and natural gas will be
capped under this legislation. Natural gas is a basic ingredient in
fertilizer, which is a building block for all of the food the U.S.
supplies. We can't make our food without fertilizer, and we can't make
fertilizer without natural gas.
The dairy industry in my State is having a difficult time making
profits because of falling milk prices. And while there are many
reasons for low milk prices, energy costs are certainly part of that
equation.
This legislation will do nothing to reduce our carbon emissions or
help Pennsylvania agriculture and will only cause more economic
hardship for many small farmers and businesses.
I urge my colleagues to reject this misguided measure.
Mr. WAXMAN. Madam Speaker, I am pleased to yield 2 minutes to the
gentleman from Texas (Mr. Gene Green), who played a very significant
role in developing this legislation.
Mr. GENE GREEN of Texas. Madam Speaker, like my colleagues, we will
miss you and good luck in your new endeavor in the administration.
Today the House is set to consider the first comprehensive climate
program in the history of the House of Representatives, and I support
H.R. 2454.
This bill represents efforts to reach a consensus across our diverse
membership and produce legislation that seeks to reduce greenhouse gas
emissions both at home but also abroad. If Congress does nothing,
greenhouse gas emissions could be regulated administratively through
the EPA without input from Members that represent diverse
constituencies nationwide.
I represent the Port of Houston, a petrochemical complex that
stretches along the Texas gulf coast and is home to thousands of
chemical industry and petroleum refining jobs. We cannot allow the
petrochemical and refining industries to migrate out of America. They
are vital to our economy and to our national security, and we cannot
outsource that capability.
These energy-intensive industries could be left vulnerable to foreign
competitors not facing carbon regulations if we do not carefully craft
transitional policies to prevent job loss and strengthen U.S.
industries at home.
I want to thank Congressman Inslee and Congressman Doyle for putting
forth a proposal to provide 15 percent of the free allowances to
emission-intensive industries to address competitive concerns,
especially in the chemical industry. If a manufacturing facility is
energy intensive and trade exposed, allowances will be provided to that
facility on a production output basis, providing rebates for both the
direct and indirect costs of complying with the climate program. These
rebates will level the playing field relative to imports while
encouraging emission reductions.
The bill also helps protects the U.S. domestic refining industry
while creating a climate-change program. Our domestic refiners will
face a competitive disadvantage with foreign competitors that are not
subject to carbon regulations. U.S. refiners in this bill will receive
2 percent of the allowances starting in 2014 and ending in 2026, plus
an additional .25 percent for small business refiners.

{time}  1330

That's over one-half of the projected 4 percent of refined emissions.
This funding will help defray expenses associated with direct and
indirect costs and their stationary source of emissions under the cap
as well as help improve the efficiency of refineries through technical
and feedstock changes.
To level the playing field, foreign importers of refined oil must pay
for carbon content of imported fuel, just as our domestic producers
have to do, Madam Speaker.
And that's why I think this bill is a good first step. If I were
writing it, it would be different.
Madam Speaker, today the House is set to consider the first
comprehensive climate program in the history of the U.S. House of
Representatives and I support H.R. 2454.
This bill represents efforts to reach consensus across our diverse
membership and produce legislation that seeks to reduce greenhouse gas
emissions both at home and abroad.
If Congress does nothing, greenhouse gas emissions could be regulated
administratively through the EPA without input from Members that
represent diverse constituencies nationwide.
I represent the port of Houston, a petrochemical complex that
stretches along the Texas Gulf Coast and is home to thousands of
chemical industry and petroleum refining jobs.
We cannot allow the petrochemical and refining industries to migrate
out of America.

[[Page H7627]]

They are vital to our economy, to our national security, and we cannot
outsource this capability.
These energy-intensive industries could be left vulnerable to foreign
competitors not facing carbon regulations if we do not carefully craft
transitional policies to prevent job loss and strengthen U.S.
industries at home.
I want to thank Congressman Inslee and Congressman Doyle for putting
forward a proposal to provide 15 percent of free allowances to
emissions-intensive industries to address competitiveness concerns,
especially in the chemical industry.
If a manufacturing facility is energy-intensive and trade-exposed,
allowances will be provided to that facility on a production output
basis, providing rebates for both the direct and indirect costs of
complying with the climate program.
These rebates will level the playing field relative to imports while
encouraging emission reductions.
The bill also helps protect the U.S. domestic refining industry while
creating a climate change program.
Our domestic refiners will face a competitive disadvantage with
foreign competitors that are not subject to carbon regulations.
U.S. refiners will receive 2 percent of allowances starting in 2014
and ending in 2026, plus an additional .25 percent for small business
refiners. That's over one-half of the projected 4 percent of refinery
emissions.
This funding will help defray expenses associated with the direct and
indirect costs of their stationary source emissions under the cap, as
well as help improve the energy efficiency of refineries through
technological and feedstock changes.
To level the playing field, foreign importers of refined oil must pay
for the carbon content of imported fuel, as do domestic refiners.
While I believe the refining industry could use additional
assistance, and I hope any final agreement does so, this is a
reasonable first step to protecting our energy infrastructure and
keeping good-paying jobs here at home.
These proposals, however, cannot substitute for the need for a strong
international agreement with binding carbon reductions amongst the
world's largest emitters, including developing countries.
Mr. LUCAS. Madam Speaker, I yield myself the remainder of my time.
The SPEAKER pro tempore. The gentleman has 3\3/4\ minutes remaining.
Mr. LUCAS. Madam Speaker, my fellow Members, let me rise to conclude
the House Agriculture Republican portion of this discussion this
evening and remind my colleagues one more time that this bill has a
tremendous effect on rural America and production agriculture. When 115
farm groups send in letters, and food groups, expressing their
opposition to the bill, that says something, 115 groups.
Madam Speaker, I submit a list of these groups for the Record.

Agriculture Groups Oppose to Waxman-Markey--as of June 26,
2009
1. Agribusiness Association of Iowa
2. Agricultural Retailers Association
3. Agrium Inc.
4. Alabama Farmers Federation
5. American Agri-Women
6. American Farm Bureau Association
7. American Farmers & Ranchers
8. American Feed Industry Association
9. American Frozen Food Institute
10. American Meat Institute
11. American Plant Food Corporation
12. AmeriFlax
13. Associated Industries of Florida
14. Beck' Superior Hybrids
15. Brandt Consolidated
16. CF Industries
17. Chemical Industry Council of Illinois
18. CHS Inc.
19. Corn Producers Association of Texas
20. D.B. Western, Inc.
21. Far West Agribusiness Association
22. Florida Chamber of Commerce
23. Florida Farm Bureau Federation
24. Florida Fertilizer & Agrichemical Association
25. Florida Strawberry Growers Association
26. Food Industry Environmental Council
27. GROWMARK
28. Hardee County Farm Bureau (FL)
29. Hillsborough County Farm Bureau (FL)
30. Illinois Farm Bureau
31. Illinois Fertilizer & Chemical Association
32. Indiana Beef Cattle Association
33. Indiana Farm Bureau
34. Indiana Grain & Feed Association
35. Indiana Office of Energy Development
36. Indiana Plant Food & Ag Chemicals Association
37. Indiana Pork Producers Association
38. Indiana Professional Dairy Producers
39. Indiana State Department of Agriculture
40. Indiana State Poultry Association
41. Institute for Shortening and Edible Oils
42. International Raw Materials, Ltd.
43. J.R. Simplot Company
44. Kansas Agribusiness Retailers Association
45. Kansas Grain and Feed Association
46. Minnesota Agri-Growth Council
47. Minnesota Corn Growers Association
48. Minnesota Crop Production Retailers
49. Missouri Agribusiness Association
50. Missouri Farm Bureau
51. Montana Agricultural Business Association
52. National Cattlemen's Beef Association
53. National Chicken Council
54. National Grain and Feed Association
55. National Grange
56. National Meat Association
57. National Oilseed Processors Association
58. National Pork Producers Council
59. National Turkey Federation
60. Nebraska Farm Bureau
61. NCRA
62. Nebraska Agri-Business Association
63. New Mexico Peanut Growers Association
64. North American Millers Association
65. North Carolina Peanut Growers Association
66. North Dakota Agricultural Association
67. North Dakota Barley Council
68. North Dakota Farm Bureau
69. North Dakota Grain Dealers Association
70. North Dakota Grain Growers Association
71. North Dakota Soybean Growers Association
72. North Dakota Stockmen's Association
73. North Dakota Wheat Commission
74. Northern Canola Growers Association
75. Northern Pulse Growers Association
76. Ohio Corn Growers Association
77. Ohio Farm Bureau
78. Ohio Poultry Association
79. Ohio Rural Electric Cooperatives, Inc.
80. Ohio Wheat Growers Association
81. Oklahoma Ag Retailers Association
82. Oklahoma Grain & Feed Association
83. Oklahoma Peanut Commission
84. Oklahoma Seed Trade Association
85. Oklahoma Wheat Growers Association
86. Panhandle Peanut Growers Association
87. Peace River Valley Citrus Growers Association
88. Peanut Growers Cooperative Marketing Association
89. Polk County Farm Bureau (FL)
90. PotashCorp
91. Rocky Mountain Agribusiness Association
92. Sarasota County Farm Bureau (FL)
93. Society of American Florists
94. South Carolina Fertilizer & Agrichemicals Association
95. South Carolina Peanut Growers Association
96. South Dakota Agri-Business Association
97. South Dakota Farm Bureau
98. South Dakota Grain & Feed Association
99. Southern Crop Production Association
100. Southwest Council of Agribusiness
101. Terra Industries Inc.
102. Texas Agricultural Cooperative Council
103. Texas Cattle Feeders Association
104. Texas Farm Bureau
105. Texas Grain & Feed Association
106. Texas Peanut Producers Board
107. Texas Sheep & Goat Raisers Association
108. Texas Wheat Producers Association
109. The Andersons, Inc.
110. The Fertilizer Institute
111. The McGregor Company
112. Todd Staples, Commissioner, Texas Department of
Agriculture
113. Tom Farms (Kip Tom, CEO)
114. United Egg Producers
115. USA Rice Federation
116. Virginia Peanut Growers Association
117. W.B. Johnston Grain Co.
118. Western Peanut Growers Association
119. Western Plant Health Association
120. Wyoming Stock Growers Association

Madam Speaker, I would also be remiss if I didn't express my
appreciation and the appreciation of my colleagues on the Republican
side of the Agriculture Committee to Chairman Peterson. He made, we
believe, good-faith efforts with Chairman Waxman to try to correct the
worst features of this bill. Unfortunately, good faith in the
legislative process doesn't always cure every problem.
The fundamental underlying issue still is this bill will raise the
cost of energy for production agriculture, an energy-intensive
business. It will reduce our competitiveness with our competitors
around the world, South America, Asia, Europe. But look at the way the
so-called grand compromise on agriculture was put together.
``Compromise'' is a phrase used in one of the electronic publications
this morning.
Indirect land use, where an agency of the Federal Government can
determine how your corn farm or your wheat farm affects farms on other
continents and tell you to change the way you do your business? Now, I
know the bill says that can't happen for 5 years, and we will have a
study and a moratorium for another year. But 6 years from now, 6 years
from now, it comes at us like a brick bat.
The section of the bill talking about farms being able to be rewarded
for good stewardship, carbon sequestration and those kinds of matters,
the bill

[[Page H7628]]

says the amendment adopted, the practices can only be rewarded if they
began after 2001. You heard my friend from Iowa talk about the
percentage of corn farmers who adopted those good practices before
2001.
How do you explain to the folks back home that the good farmers, the
good stewards, don't get anything, but the bad farmers who waited until
they were shamed or embarrassed into adopting the best practices get
rewarded?
Renewable fuel. Yes, we protect facilities that were under
construction or have been completed or in production in 2007 and
before, but that doesn't apply to everything since then. If you have
got a mature ethanol plant, you are in good shape. But does that mean
no one else can build an ethanol plant?
We, on the minority side of the Ag Committee, view ourselves as the
conscience of the body. We have a responsibility to defend rural
America and production agriculture. We thank Chairman Peterson for what
he tried to accomplish, but we believe it is not enough to protect the
future of farming and ranching and the folks out in rural America.
That's why we have to be united in our opposition against this bill.
I am a farmer by trade. I may not always be a Member of this body,
but I am going home to Oklahoma. I can't vote for this and go home to
Oklahoma.
Mr. WAXMAN. Madam Speaker, I am pleased to yield to the vice chairman
of the Commerce Committee, the gentlewoman from Colorado (Ms. DeGette)
for 90 seconds
(Ms. DeGETTE asked and was given permission to revise and extend her
remarks.)
Ms. DeGETTE. Madam Speaker, I rise today in support of this important
energy and environmental legislation, probably the most important this
body has ever considered.
And I will say to my friends who say it's not enough, that we need to
remember how important it is for us to put together a framework in
place so that we can assure energy independence and create jobs.
In Colorado, Madam Speaker, in 2004, our voters passed a renewable
energy standard, the first time that it was done in any State by ballot
initiative. Industry opposed it universally, but yet it passed 53-47
percent. That standard was 10 percent by 2015, and we exceeded that
standard within 2 years. Two years later, we came back to the Colorado
Legislature. We doubled that standard. It was bipartisan and industry
supported it.
When people see the wonderful framework we are putting in place today
for energy independence, which will create jobs, they will embrace this
concept. They will embrace the concept of becoming independent from
foreign oil and making sure that we develop clean alternative sources
of energy, which are going to benefit our children and our children's
children.
One last thing. According to the Congressional Budget Office, this
bill will cost the typical family less than that of a postage stamp per
day.
And I will say, once we develop these clean alternative energy
sources, we will benefit, because we will regain our place in the world
as a leader in technology and as a leader in clean alternative sources
of energy.
I want to urge my colleagues to support this legislation, which
relies on scientific evidence to set our Nation's policy.
Mr. BARTON of Texas. Madam Speaker, I want to yield 3 minutes to the
deputy ranking member of the Energy and Commerce Committee, Mr. Blunt
of Missouri.
Mr. BLUNT. I thank the gentleman for yielding.
Madam Speaker, you and I came to the House of Representatives at the
same time. We have often voted differently, but I have always
appreciated your public service and will continue to and wish you well
in the new responsibility that you are taking and well in the other
announcement that you made today.
I think this bill, Madam Speaker, heads the country very much in the
wrong direction. It's the wrong direction for America. It's the wrong
direction for our economy. It puts us at a competitive disadvantage.
The Republican alternative that many Democrats could easily support
would look for more American energy, would look for more ways to
conserve the energy we use, and would invest in the future in a way
that makes our energy future make sense.
We have 28 percent to 30 percent of all the coal in the world. If
this was something that the majority wanted to do, the majority would
be saying, if this country could put a man on the Moon in a decade, we
could find a way to use coal in a way that doesn't create an immediate
penalty on every coal-producing utility in America. In Mr. Waxman's
State, I have great respect for him, the primary sponsor of the bill,
less than 4 percent of California's electricity comes from coal.
In Mr. Markey's State, less than 24 percent of the electricity comes
from coal. In Missouri, more than 85 percent of the electricity comes
from coal, and we are not the top State. We are in the top 10. We will
be affected by this dramatically, but so will everybody from, say,
Pittsburgh to Wyoming.
This is going to impact utility bills unfairly. It will impact job
opportunity unfairly. And, frankly, the jobs we lose in our part of the
country, and in the country generally, are not likely to relocate
somewhere else in America. They are more likely--these manufacturing
jobs use lots of energy--to locate in a country that has less
environmental standards than we do, the ultimate lose-lose. We lose the
jobs. You actually put more of these things in the air than you would
otherwise, and Americans suffer because of that.
In our State, the estimate is that utility bills would go up 40
percent in the first 5 years, 80 percent in the first 10 years, and
even more after the various allowances are gone. This is unfair to
American families, and, frankly, the less you can afford to put in new
windows, new insulation, new everything else, the harder a burden this
is going to be.
I urge my colleagues to vote this bill down and work together to have
a better bill for America.
Mr. WAXMAN. Madam Speaker, I want to yield to the gentleman from
Pennsylvania (Mr. Doyle) a minute, with an option for another one, if
he needs it. And I want to point out the essential role that he played
in making sure this legislation protected those industries that are
vulnerable to trade that might be at their disadvantage. I thank him
for the work he has done.
Mr. DOYLE. Madam Speaker, today we have a historic opportunity to
create thousands of clean-energy jobs, to secure this country's energy
future, and to give our kids and grandkids a brighter, cleaner planet.
Madam Speaker, we do that while protecting our basic industries like
steel, aluminum, cement, and our ratepayers, both residential,
commercial and industrial.
I was proud to work on this committee with my friend and colleague
Jay Inslee to develop a formula that looks at our carbon intensive
industries like steel, that have trade pressures, and level the playing
field for them so that we don't lose jobs. This bill wasn't going to
cause any jobs to be lost. This is a job-creating bill, and you don't
need to take my word for it.
I have a letter from the international president of the steelworkers
union--people whose very jobs would be on the line if we didn't get
this right--who endorses this bill, who says this bill will create more
jobs for steelworkers in Pittsburgh.
And we do that by rewarding efficiencies. We say to our carbon-
intensive industries, Be average in your sector. We will make you whole
for the cost of this program.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
Mr. DOYLE. For those industries that invest and become more
efficient, we give them more rewards. We encourage efficiency in our
markets at the same time, giving them a level playing field with their
competitors. We do the same thing in the electricity markets.
Every one of my constituents get their electricity from coal. We
protect those ratepayers. Thirty-five percent of the allocations in
this bill go towards protecting residential, commercial and industrial
ratepayers. This is not a job loser. This is not a rate hike for
consumers; $173 a year for the average family in America as a result of
this bill. That's a small price to pay for a cleaner planet and more
jobs for America.

[[Page H7629]]

Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the
distinguished Representative from Washington State, Mr. Hastings.
Mr. HASTINGS of Washington. I thank the gentleman for yielding.
Madam Speaker, this bill was written in a fantasy land where
unemployment isn't reaching 10 percent, thousands haven't lost homes to
foreclosure, and millions haven't witnessed half their retirement
savings disappear. By imposing this national energy tax and creating a
massive new bureaucracy to regulate the entire economy, this bill will
drive up the cost of doing business in America, sending jobs overseas
to China and India, nations that flat out refuse to reduce their own
carbon emissions.
We are told America must lead by example. Are we to believe that
after the government drives America's economy further into the gutter,
the rest of the world will do the same?
Madam Speaker, America should not be the first lemming to jump off
the cliff just because Nancy Pelosi and Al Gore are convinced that
China, India and Russia and others will follow us over the ledge.
Republicans have an all-of-the-above energy plan to build more nuclear
power and invest in cleaner alternative energies funded by drilling oil
here in America. Yet, Madam Speaker, Democrats refuse to even allow a
vote on this plan.
So I urge my colleagues to vote ``no'' on this bill.
Madam Speaker, this bill has been written in a fantasyland where
unemployment isn't reaching 10 percent, thousands haven't lost their
homes to foreclosure, and millions haven't witnessed half of their
401k's and retirement savings disappear.
By imposing a national energy tax, our economy will shrink in size,
millions of jobs will be lost, energy costs will, to use the
President's own word, ``skyrocket'', and gas prices will again reach
record highs.
By creating a massive new government bureaucracy to regulate the
entire economy, this bill will drive up the cost of doing business in
America, sending jobs overseas to countries like China and India,
nations that flat-out reject reducing their carbon emissions, and that
are building coal-fired energy plants at a breakneck pace.
Democrats are trying to impose a high-priced, gourmet energy plan
that restricts and dictates what specific sources of energy America
should use. What our country actually needs is Republicans' all-of-the-
above approach that says yes to nuclear power, yes to alternative
energy, yes to wind and solar power, yes to energy from wood-waste and
biomass, yes to hydro power, and, yes to opening more areas to drilling
for oil and natural gas in America to reduce our vulnerability to
spikes in prices at the pump because of turmoil in overseas oil
nations.
America's economy can't afford this Democrat plan to cherry-pick a
few high-priced energy sources. Creating green jobs makes good sense,
but creating nuclear jobs, drilling jobs, green jobs and all new energy
jobs is far, far better for America's economy.
America's economy is ailing, and enacting a new national energy tax
is like a doctor ordering his sick patient to go stand outside in the
cold rain. Our economy needs to recover, not be made sicker.
We're told America must lead by example, and then the rest of the
world will follow. Are we to believe that after the federal government
drives America's economy further into the gutter, the rest of world
will do the same?
Yet, Democrats have refused to condition putting this national energy
tax into force upon reciprocal action by China and the world's other
nations.
Madam Speaker, America should not be the first lemming to jump off
the cliff just because Nancy Pelosi and Al Gore are convinced that
China, India, Russia and others will follow us over the ledge.
And what would this Democrat scheme do with the hundreds of billions
of dollars taxed away from families and businesses? Shockingly, this
bill would give away billions in foreign aid. In fact, this bill pays
four times as much in foreign aid than it provides to the over two and
half million Americans who will lose their jobs because of this bill.
And on top of that foreign aid, it pays five times as much to countries
to protect tropical trees than it does to help jobless Americans.
We don't need the biggest job-killing tax in history to reduce carbon
emissions and put in place cleaner energy sources.
We can promote nuclear power that emits no carbon and we can invest
in new alternative energies funded by revenues from simply getting our
oil here in America rather than from volatile foreign nations.
This is the Republicans' all-of-the-above energy plan--called the
American Energy Act. Yet the Democrats refuse to even allow a vote on
it.
Democrats are forcing Congress to either accept or reject their
national energy tax and high-priced, gourmet energy mandates. The only
right choice to protect our economy and American jobs is to vote no.
Mr. WAXMAN. Madam Speaker, I am pleased at this time to yield 1\1/2\
minutes to the gentleman from Illinois, who made sure in this
legislation, among other important contributions, that we looked out
for the interests of low-income people.
Mr. RUSH. Madam Speaker, today marks a historic chance to move our
great country forward and transform our economy for the demands of the
21st century.
I fully support this bill. It will not only make our country more
substantive and energy efficient, but it would also provide jobs and
economic opportunities for all of our citizens while opening an
entirely new sector of our economy. I really must begin by thanking
Chairman Waxman and Chairman Markey for their hardworking staffs and
for all the work that they have done to improve this bill as it made
its way through the legislative process and onto the floor today.
With the chairman's help, we were able to strengthen this legislation
by not only protecting low-, moderate-, and middle-income families from
rising energy costs, but also providing real assistance for communities
like the one I represent for new career pathways to move out of poverty
and to move into quality, career-oriented jobs in construction and
energy-related fields.

{time}  1345

Some of these provisions that we were able to get in the bill are the
low-income allowances, 60 percent of all the total allowances go to
low-income people; local targeted hiring for middle class careers in
construction; Low-Income Community Energy-Efficiency programs. The
LICEEP program, the Low Income Community Energy-Efficiency Program,
will provide loans, technical assistance, and grants to community
development organizations to provide financing to minority
entrepreneurs.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
Mr. RUSH. The Public Housing Retrofit program, which I worked with
the gentlelady from California, Ms. Waters, as well as my colleague
from Vermont, Mr. Welch. It's a new program that provides grants to
public housing agencies for energy retrofits and green investments in
property.
Madam Speaker, this is a great bill. This is a good bill. This bill
should pass. I urge all of my colleagues to vote in support of this
bill.
Mr. BARTON of Texas. Madam Speaker, I'd like to yield 2 minutes to a
member of the committee, the gentleman from Michigan (Mr. Rogers).
Mr. ROGERS of Michigan. Madam Speaker, my appreciation for your years
in the House and your great service here. Congratulations and great
success in your new endeavor.
I agree, Madam Speaker, with President Obama and Warren Buffett:
under this bill, ``Electricity rates will necessarily skyrocket.''
Under this bill, we create the single largest energy tax in United
States history. Warren Buffett called it ``a huge tax, and there's no
sense calling it anything else. Very poor people are going to pay a lot
more for electricity.''
Last night, in my district, a utility company calculated its estimate
of what this bill will cost the families in my district. It will
increase their electric rates $500 a year--not your statistics from
those who don't live in a place like Michigan; $500 a year. And that
doesn't incorporate the fact that their clothes will now be more
expensive, their groceries will now be more expensive, their school
supplies will now be more expensive.
If you haven't noticed, people are hurting around the United States.
Adding costs today is absolutely the wrong direction. It will destroy
$1,400 in wages for the average family in my district. $1,400. That's a
$2,000 swing. People in Michigan, who are already under assault, want
to know what they're getting for that $2,000 swing.
Well, they won't get a new nuclear plant. Not one. They will not get
the

[[Page H7630]]

modern electric grid that they need to carry clean electricity. Not
going to get that. And they will not get a level playing field with
China and India. And--make no mistake--they want to steal the jobs that
make up our middle class. They're active and aggressive in doing it.
You pass this bill, you won't be able to build anything in the United
States of America. Their jobs are going overseas.
They will also see their gas prices rise, on average, 70 cents--70
cents a gallon to families who are already under financial crisis. And
who gets their money? Wall Street will.
This bill takes millions, billions out of families' budgets and
launders it through Wall Street. The same people who brought you the
credit default swap in the housing market are now going to sell you
carbon offset swaps. Billions of dollars from average Americans sent to
Wall Street. That's no solution.
If you want an economy built on foreign manufacturing and financial
engineering, vote ``yes.'' But if you still want to live in a country
that makes things, in a country that grows its own food and actually
produces its own energy, vote ``no.''
Mr. WAXMAN. Madam Speaker, at this time I yield 2 minutes to the very
distinguished chairman of the House Armed Services Committee, the
gentleman from Missouri (Mr. Skelton).
Mr. SKELTON. I certainly thank the gentleman for yielding. Madam
Speaker, as a farm State Representative, I have said for quite some
time that any climate change legislation approved by the House must
take into consideration the unique needs of rural America, including
those of farmers and rural electric cooperatives.
Since first being introduced, the climate change measure has improved
a great deal, thanks in large part to the work of House Agriculture
Committee Chairman Collin Peterson and his negotiations with House
Energy and Commerce Committee Chairman Henry Waxman.
I first approached this legislation with a great deal of skepticism.
I have since been pleased that some, though not all, concerns of
utilities, electric cooperatives, and farmers have been addressed in
the version of the bill that is being considered today.
As this bill was being drafted, I have heard the views of Fourth
District residents and have raised them with the House leaders. To be
sure, the measure before us is not perfect, but it's a step in the
right direction.
I think it's important that we move this bill forward. After we pass
it in the House, the measure will receive additional refinement in the
other body. I think that the congressional leadership and the
administration understand the concerns of rural America, and I will
keep working to ensure our point of view is more completely addressed
in the final bill.
Truth be told, Congress has an obligation to enact energy reform this
year, especially given that the U.S. Environmental Protection Agency,
that is the EPA, is working right now to create tough, costly
regulations on greenhouse gases emitted by livestock, farms, factories,
and utilities. Without congressional action, the EPA will have free
rein. That is unacceptable to me, and ought to be unacceptable to every
farmer and business owner in Missouri.
Unlike the EPA proposal, the House bill would exempt livestock and
farms from greenhouse gas regulation, and it would provide farmers an
opportunity to potentially profit from their carbon-friendly farm
practices by participating in the carbon market.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
Mr. SKELTON. Also, for farmers, the legislation would correct a
problem that has been lingering since enactment of the 2007 energy
bill. For the next 5 years, it would prevent EPA from calculating
indirect land use when determining how to implement our Nation's
renewable fuel standard.
This is good news for ethanol and biodiesel production facilities and
for the farmers who sell the goods to these facilities.
Energy reform is not just a matter of wanting to keep our air and
planet clean, as worthy and important as those goals are. It's also a
matter of national security.
In recent years, the Pentagon has taken a hard look at how climate
change could have an impact on global security and stability.
Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to a member of
the committee, the gentleman from Georgia (Mr. Gingrey).
Mr. GINGREY of Georgia. Madam Speaker, we are at a crossroads. Our
Nation faces significant challenges, with unemployment nearing 10
percent and trillion-dollar deficits piling up decades of debt for our
children and our grandchildren.
However, congressional Democrats should not be so shortsighted to
think that we cannot make a bad situation significantly worse by
enacting legislation like this bill that will only knock more Americans
off the assembly line and into the unemployment line.
This bill will impose the Pelosi Global Warming Tax on every single
American household and business, raising home electricity costs and
annual energy costs by almost $3,000 for every family, and the only
reduction will be in our Nation's gross domestic product by almost $10
trillion and in the number of Americans employed by the millions.
Madam Speaker, Washington cannot save this country. Only the American
people and American ingenuity can. Unfortunately, congressional
Democrats have already allowed the Federal Government to take over our
banking industry, the automobile industry, and now this House may very
well vote to take over America's energy, with control over health care
not far behind.
Let's stop the insanity and wake up to the reality imposed in the
Global Pelosi Warming Tax and, in the words of another Californian, our
distinguished former first lady, Nancy Reagan: Just say no.
Mr. WAXMAN. Madam Speaker, may I inquire about the time each side has
remaining.
The SPEAKER pro tempore. The gentleman from California has 44\1/2\
minutes remaining; the gentleman from Texas has 53\1/2\ minutes
remaining.
Mr. WAXMAN. Thank you. At this time I'd like to yield 1 minute to a
distinguished member of our committee, the gentlewoman from Illinois
(Ms. Schakowsky).
Ms. SCHAKOWSKY. Madam Speaker, I rise today in strong support of H.R.
2454 and congratulate Mr. Waxman for his leadership.
For over a century, the United States has embraced an energy policy
based almost entirely on fossil fuels that have several dangerous
consequences for today. This outdated policy has compromised our
national security by making us reliant on foreign oil, has led the
United States to lag behind other countries in the research and
development of new energy technologies that would have created jobs,
and has poison our planet. Now, today, we have the opportunity to
change directions.
When I was back in my district last recess, I could feel the
crackling of new innovation. S&C Electric is making our electric grid
much smarter and more reliable. Northwestern University is enabling
entrepreneurs who are utilizing nanotechnology and applying it to the
energy field. Republic Doors and Windows, a Chicago business that made
Energy Star windows, shut down. But those 260 skilled workers were
rehired with help from the recovery bill that we passed.
These are just a few of the thousands of success stories around the
country, and the 1.7 million good jobs that will be created with the
passage of H.R. 2454.
Mr. BARTON of Texas. I'd like to yield 1 minute to a member of the
committee, the gentleman from Nebraska, (Mr. Terry).
Mr. TERRY. There's a vigorous debate about the anthropologic impact
on our climate. I believe that we do have an obligation to reduce
CO<inf>2</inf>, if we can. But this must be balanced with an equal
obligation to treat our constituents in a manner that preserves our
Nation's economic competitiveness.
Advocates for the cap-and-trade bill state that it will not
significantly increase economic burdens on our constituents. This is
just not true. The cap-and-tax bill also contains a renewable electric
standard and other elements which will significantly increase costs to
utilities and consumers. The Omaha Public Power District in my district
conducted an independent

[[Page H7631]]

analysis of the cost to my constituents, free of political interference
like the one put out by the EPA.
Even with the free allowances allocated under the Waxman-Markey cap-
and-tax bill, Nebraskans will have to suffer a $74 million bill in
2012, and increased to $410 million a year by 2030 in the most
optimistic case.
Vote against this bill.
Mr. WAXMAN. Madam Speaker, it's my privilege at this time to yield
1\1/2\ minutes to a gentleman who has worked successfully with Members
representing disparate interests in different parts of the country to
find workable solutions that helped lead to the consensus product we
have today, the gentleman from Washington (Mr. Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his
remarks.)
Mr. INSLEE. Madam Speaker, this bill renews some basic American
values of confidence in ourselves, optimism about our future, and a
``can-do'' spirit. We support this bill because we believe Americans
still have the right stuff that we had in the 1960s when we went to the
Moon.
This bill calls forward Americans' future to get off of foreign oil,
to put millions of people to work in clean technology, and to give our
grandkids a chance at a future with a decent atmosphere like we grew up
with.
The people who are against this bill, I urge them to avoid the
pessimism and the lack of imagination that I have heard on the floor of
this House.
Now, will this have some investment cost? Yes. And what is the best
assessment of that cost? It is the Congressional Budget Office, a
nonpartisan group that Republicans typically rely upon, and what have
they said? They said this will cost a typical family of four 47 cents,
a little more than the cost of a stamp.
Will we pay the cost of a stamp to get rid of five million barrels of
oil a day from the Mid East? You bet we will. And this bill will do
that. Will we pay a stamp to give our grandkids a future of an
environment that's not going to destroy their health? You bet we will.
Will we pay a stamp to give people at the Bright Source Company a
chance? You bet we will.
We're going to put a stamp on America's future for the price of a
stamp. It's a good deal for our future.
Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the
distinguished chairman of the Republic Policy Committee, the gentleman
from Michigan (Mr. McCotter).

{time}  1400

Mr. McCOTTER. Today we consider a bill that claims the government can
control the weather by raising your taxes, taking your job and
dictating your life. In my State of Michigan, with a 15 percent
unemployment rate, we know we cannot afford this cap-and-tax bill.
Others, however, disagree.
``Make no mistake,'' President Obama pronounced, ``this is a jobs
bill.'' He is correct. This bill will destroy jobs. But then again,
this comes from an administration that claimed its trillion-dollar
stimulus bill would stop unemployment from going over 8 percent.
The argument for this bill is nuts on its face. Government cannot
design our economy and prosperity. It can only engineer our decline in
poverty. But such feelings explain why this job-killing cap-and-tax
bill is a fundamental shift from a manufacturing economy to an old
green economy called hunting and gathering.
Passing this abominable energy tax on working families in a recession
shows this job-killing, budget-busting government doesn't understand
how much real Americans are hurting for work. This is the hubris of Big
Government, the delusion that our families' economic futures rest in
the manicured hands of Congress rather than the hardworking hands of
the American people.
I disagree, and I urge the rejection of this bill.
Mr. WAXMAN. Madam Speaker, I am pleased at this time to yield 1\1/2\
minutes to the gentlelady from Wisconsin (Ms. Baldwin) who is an
important member of our committee in both the energy and the health
areas.
Ms. BALDWIN. Thank you, Mr. Chairman.
Madam Speaker, the Waxman-Markey American Clean Energy and Security
Act represents our Nation's response to a challenge that has
consequences of epic proportions. Global climate change must be
addressed in a real and meaningful manner. Our greenhouse gas emissions
have put our global environment, our security and our very social
structure at risk; and if we fail to act, the impact will reverberate
throughout this century with the loss of human lives, species
destruction, destruction of ecosystems, declines in health and
increased social conflict.
Climate change is a unique challenge in that our greatest obligation
in tackling this threat is to the generations of Americans and people
throughout the world who haven't even been born yet, the ones who will
inhabit this planet long after we're all gone. The legislation we have
before us addresses global climate change while spurring innovation,
creating clean energy jobs and containing costs. It brings what we need
in terms of leadership and commitment as we look toward Copenhagen and
beyond. It recognizes that our Nation's security, our planet's
sustainability and our children's future hang in the balance.
I urge my colleagues to support this bill and commit to a clean
energy economy that creates jobs and protects our health, national
security and planet for generations to come.
Mr. BARTON of Texas. Madam Speaker, I yield 2 minutes to a
distinguished gentleman on the committee, a member of the Energy
Solutions Group and a tireless worker on behalf of energy solutions for
America, the gentleman from Illinois (Mr. Shimkus).
(Mr. SHIMKUS asked and was given permission to revise and extend his
remarks.)
Mr. SHIMKUS. Madam Speaker, this bill is a disaster, and let me just
explain who is opposed. Rural America is opposed to this bill. The
manufacturing sector is opposed to this bill. Utilities are opposed to
this bill. The transportation sector is opposed to this bill. Why?
Because they believe Democrats. They believe John Dingell when he says,
Nobody in this country realizes that a cap-and-trade is a tax, and it
is a very big one. They believe Barack Obama when he said, Under my
plan of a cap-and-trade system, electricity costs would necessarily
skyrocket. What's the result? They believe the Pennsylvania Public
Utility Commission that says, 66,000 Pennsylvanians will lose their
jobs. Why am I so impassioned? These are miners who lost their jobs the
last time we came to the well on climate legislation, when 1,200 miners
lost their jobs, 35,000 miners lost their jobs in the State of Ohio.
What will this do to the average American? Here's one example. When
the Democrats came into power, a gallon of gas was $2.33. Today it's
$2.66. Add the cap-and-trade tax, 77 cents per gallon, and you're going
to be paying $3.43. Now that's okay in the big city; but in rural
America where you've got to drive long distances to get to school, to
get to the grocery store, to get to health care, rural America is poor.
Why do we have the rich areas of this country attack the rural poor of
America? This is a shame. How dare you do that to my constituents.
Mr. WAXMAN. Madam Speaker, I yield 1\1/2\ minutes to the gentleman
from New York (Mr. Weiner) who has been a very constructive and
important member of our committee and has played a very essential role
in having us recognize the essential part that transportation efforts
can play in reducing carbon emissions.
Mr. WEINER. The chairman will be recognized for generations to come
for confronting the challenges that we face. You know, the fact of the
matter is that the EPA, under a court's decision, is going to have the
ability to write these regulations. We're taking the responsibility to
do it here in this Congress. The fact of the matter is, despite some of
the contrarian views on this floor, there is a real global crisis that
we face. Despite the objections of my colleagues on the other side,
there is a need to create new jobs, and this bill would create 1.7
million of them. But I want to give you one other reason that we should
support this change in our policy. Ahmadinejad, the Saudi kingdom, they
want exactly what my Republican friends are advocating--Don't do
anything. Keep pumping the same amount of petroleum. Keep using

[[Page H7632]]

the same amount of oil. Every time we put the pump to our gas tanks, we
are helping the tyrants in Iran and the tyrants in Saudi Arabia export
their terrorism. Why do we keep doing it? We need to change our
behavior, and this bill recognizes it. It reduces carbon emissions and
makes our Earth safer, of course; but it also creates new jobs and
takes away the lifeblood to these terrorist regimes. We can't come to
the floor and say I'm outraged at what's going on in Iran, I'm outraged
at what's going on around the world with the exporting of terrorism and
then continue the same policies where we pay for them. That's what our
present policy does. Our policies are paying for the terrorists around
the world, whether we like it or not. The American people understand
that. We need energy independence. We need a thriving economy that
creates 1.7 million new jobs. We need to reduce the carbon emissions,
despite the fact that still some people in this House deny it's a
necessity. We need to act, and that's what the Democrats are doing.

global warming wow facts

The number of Category 4 and 5 hurricanes has almost
doubled in the last 30 years. Source: Inconvenient Truth
Average global temperatures could increase 11 degrees
Fahrenheit by the end of the century, with greater overall
increases in the United States exceeding global averages,
Source: US Global Change Research Program
By 2030, local temperatures in NYC could rise by two
degrees. This compounds an existing problem, known as the
``urban heat island effect.'' This is due to the fact the
NYC's urban infrastructure absorbing and retaining heat. As a
result, NYC is often four to seven degrees warmer than the
surrounding suburbs, Source: PlaNYC 2030

key provisions in the bill

Keep costs low for American families: the bill directs 15%
of the allowances be auctioned with the proceeds going to
consumers through a combination of refundable tax credits and
electronic benefit payments. EPA and C130 estimate that the
bill will cost American families less than 50 cents per day.
Bill will cut foreign dependence on oil: Would require
electric utilities to meet 20% of their electricity demand
through renewable energy sources and energy efficiency by
2020.
Cut Greenhouse gases: Bill reduces carbon emissions from
major U.S. sources by 17% by 2020 and over 80% by 2050
compared to 2005 levels.

economic benefits

The stimulus bill and the energy bill will create 1.7
million new clean energy jobs nationwide, Source: Center for
American Progress
The energy efficiency provisions alone in the Waxman-Markey
bill will generate 770,000 jobs nationwide by 2030. Source:
American Council for an Energy-Efficient Economy
Clean-energy investments create over 16 jobs for every $1
million in spending. Spending on fossil fuels, by contrast,
generates 5 jobs per $1 million in spending. Source: Center
for American Progress
NYS will see 109,000 new jobs and a net increase of about
$10 billion in clean-energy investments. Source: Center for
American Progress

Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the gentleman
from California, Mr. ``Surf's Up'' Rohrabacher.
Mr. ROHRABACHER. Thank you very much.
Wake up, America. What's happening on the floor today is a power grab
that will leave you with empty pockets and no jobs. The jobs will go to
China, and the economy will go to hell. Worse than that, the scientific
basis for the claims being made to frighten us into accepting this
economy-destroying legislation are wrong.
Wake up, America. There hasn't been any global warming, which is what
we heard over and over and over again--there hasn't been any global
warming for 10 years. In fact, the ice caps are melting, which we see
over and over again. Yeah, they're melting on Mars too, which in any
honest discussion would lead to the conclusion that the ice caps are
melting and these things are happening because of solar activity, not
because of the activity of human beings.
The science is wrong. The economics is wrong. You're going to cause
great damage to the people of this country, to their well-being, in the
name of phony science. There are hundreds and hundreds of scientific
leaders, like Dr. Lindzen of the Massachusetts Institute of Technology,
that have refuted the arguments. They are pleading with us. Pay
attention to the good science. Don't hurt our people based on the false
claim of global warming, which they don't even use that language
anymore.
Mr. WAXMAN. Madam Speaker, I am pleased now to yield 1\1/2\ minutes
to an important and distinguished member of the Energy and Commerce
Committee, the gentleman from North Carolina (Mr. Butterfield).
Mr. BUTTERFIELD. I want to thank the chairman of the committee for
giving me this very precious time this afternoon.
Madam Speaker, the House of Representatives is ready today to pass
this historic legislation that will literally save the planet. You can
call it a cap-and-tax all you want. You can say that the science does
not support this legislation. You can say that the scientists are
wrong. But I say, Republicans are wrong on this issue. We cannot afford
to wait any longer to enact this legislation that will reduce
greenhouse gas emissions. Chairman Waxman and Chairman Markey should
each be commended for their extraordinary work in reaching a good
compromise that will now allow this legislation to advance to the other
body.
It saddens me that our Republican friends were not partners with us
as we crafted this legislation, but Democrats understand the mandate of
the American people, and we are moving forward. One of my roles as the
vice chairman of the Energy subcommittee was to ensure that any
increase in costs to consumers would be painless. So 15 percent of the
allowances will be dedicated to providing a safety net for the lowest-
income Americans. My district is one of the poorest districts in
America. My constituents are low-income families, and they need the
assurance that their goods and services will not dramatically increase.
I am pleased with the report from the Congressional Budget Office that
estimates that low-income households will actually see a net gain, not
a loss, of $40 per year as a result of the legislation in 2020. The CBO
also says that it is estimated that as a result of this legislation,
the average cost per household will be, as the gentleman from the State
of Washington said, 48 cents a day.
I ask my colleagues to join with me in voting ``yes'' on this
important legislation.
Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the
gentlelady on the committee from Nashville, Tennessee, Congresswoman
Blackburn.
Mrs. BLACKBURN. Madam Speaker, this is not an energy bill. This is a
tax bill. They're going to tax the air you breathe. It is a transfer-
of-wealth bill. The American people are figuring this out. Our friends
across the aisle have, indeed, become the party of punishment, and my
constituents in Tennessee are being punished.
Listen to this: By 2012 we will lose 33,000 jobs. For the next 23
years, every year it is estimated this bill will cause us to lose
25,600 jobs. The American people are figuring this out. We want them to
know it. When my colleagues come down here and talk about it being
important and talk about it being historic, it's all from the negative.
The impacts of this bill will shut small businesses. It will close
family farms. It will shutter manufacturing plants, and those jobs will
end up in China, in India. It will increase our taxes. The President
told us so. Every household is going to pay between $1,300 and $3,100
in new taxes every year. The cost of products will increase. The
American people know that the bill chooses winners and losers, and the
taxpayer is the big loser.
Mr. WAXMAN. Madam Speaker, I wish to yield 1 minute to the gentleman
from Maryland (Mr. Sarbanes).
Mr. SARBANES. I want to salute Chairman Waxman and Chairman Markey
for their tremendous work on this bill.
When it comes to energy policy, the United States has been a sleeping
giant; but the giant is beginning to stir. And with the passage of this
legislation today, we'll awaken to a new era of possibility. That's
what makes this so exciting.
This bill, the American Clean Energy and Security Act, is going to
create a new framework and new space so that ordinary citizens and
entrepreneurs can jump into that space and take us to the next level.
And what most excites me is that this is about the future. The next
generation is going to take these clean technologies, they're going to
take this knowledge, and they're going to lead us to a new place.

[[Page H7633]]

I urge passage of this bill, and I congratulate its architects.
Mr. BARTON of Texas. I yield 1 minute to the distinguished gentleman
from Oklahoma (Mr. Cole).

{time}  1415

Mr. COLE. Madam Speaker, I rise today to speak against this flawed
cap-and-trade, or rather, cap-and-tax legislation. There is no good
time for a bad idea, Madam Speaker. This bad bill is nothing more or
less than a national energy tax. The legislation will force American
families to pay on average more than $3,000 a year in additional energy
costs.
The majority would like us to believe that passing this legislation
will benefit all Americans. Nothing could be further from the truth.
Under this bill, energy-producing States like Oklahoma will be
economically punished and devastated. Residents in rural areas who must
commute long distances to work will be disproportionately affected.
Rising fuel prices, coupled with rising home energy costs, will force
people to make ever tougher choices. Many will face reduced living
standards; spending less, saving less, and going without many of the
items they need for a decent life.
Madam Speaker, for over 100 years, the people in my State and my
district have worked hard to produce the energy that this country
needs. Now that energy is going to be taxed. Taking away their choices,
their jobs and their future just isn't bad policy. It is punitive, and
it is shameful.
Mr. WAXMAN. May I inquire how much time we have for the Energy and
Commerce Committee?
The SPEAKER pro tempore. The gentleman from California has 36\1/2\
minutes remaining.
The gentleman from Texas has 46\3/4\ minutes remaining.
Mr. WAXMAN. At this time, I would like to yield to my colleague from
California (Mr. McNerney) 1 minute.
Mr. McNERNEY. Thank you, Mr. Chairman.
Madam Speaker, I rise in strong support of the American Clean Energy
and Security Act. I would also like to thank Chairman Waxman and
Chairman Markey for their leadership on this issue.
Before I came to Congress, I developed new energy technologies. I
have seen firsthand these industries develop by leaps and bounds. The
economic benefits of the American Clean Energy and Security Act will be
profound. This bill will create jobs across the country in fields as
diverse as construction, engineering, education and others. These jobs
will lay the foundation for long-term prosperity.
The American Clean Energy and Security Act is also a serious
commitment to combating climate change. It is long past time for our
country to lead in addressing this threat. Fewer emissions will mean
cleaner, healthier air for our children and grandchildren.
I am also proud that the legislation includes key provisions that I
wrote, including language that will spur the development of a more
efficient electrical grid and provide funding for clean-energy job
training. I also encourage that during the conference committee
process, the opportunity is seized to strengthen the renewable energy
standard. This will help ensure that the new energy projects created by
this bill will utilize American-made components manufactured by
American workers.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. BARTON of Texas. I want to yield 1 minute to the distinguished
ranking member of the Financial Services Committee, our expert on
derivatives, Mr. Spencer Bachus.
Mr. BACHUS. Madam Speaker, as Under Secretary Robert Shapiro, under
the Clinton administration, said, we are going to create a
multitrillion dollar derivative market overnight. These will be based
on carbon offsets.
These projects, most of them, we anticipate, will be in
underdeveloped countries or foreign countries, almost all of them. And
when you start a project, a clean-coal project in China or India, or
you plant trees in Borneo and Brazil, who pays for it? The American
taxpayers. Does it reduce discharges and pollution here? No. It
absolutely allows you to discharge carbon dioxide into the environment
here in the United States.
Before you vote for this bill, ask yourself, if the subprime lending
market was hard to police, how do you police the derivatives market
based on projects in China and Borneo? Ask yourself, am I going to
stick my constituents with the cost of clean-coal projects in China? Go
home and explain that to your constituents. Go home and explain how
you're going to plant trees in Brazil. They are going to pay for it. It
is going to allow more pollution here.
The SPEAKER pro tempore. The time of the gentleman has expired.

Announcement by the Speaker Pro Tempore

Members are reminded to address their comments to the Chair.
Mr. WAXMAN. I wish to yield 1 minute to the gentlelady from Ohio (Ms.
Sutton).
Ms. SUTTON. Madam Speaker, I rise in support of this legislation, and
I want to thank the chairman for his leadership and for working with me
and other Members of this House to address our concerns about
manufacturing and jobs in this bill.
This bill isn't perfect. I have yet to see a bill that is. But the
status quo is not the right choice. We must unleash the entrepreneurial
spirit of this country and provide the economic opportunities that our
constituents need. This bill is part of that mission. It is not the
entire answer to all that ails us. But let there be no mistake. This is
a jobs bill. This bill has support from groups that represent workers;
the United Steel Workers, the UAW, the SEIU, CWA, Building and
Construction Trades and the AFL-CIO are all urging a ``yes'' vote on
this legislation.
Madam Speaker, the people I represent are facing difficult times.
They are looking for jobs, and sometimes they can't find them the way
they used to. The inaction of the past has cost them dearly.
There are those who complain that this bill is not perfect. They say
it won't do this or it won't do that. But we have got to get started
and keep acting until we get it right and provide them with the chance
that they need for a change in direction.
Mr. BARTON of Texas. I want to yield 1 minute to ``Mr. Iowa
Agriculture,'' Mr. Latham of Iowa.
Mr. LATHAM. I thank the gentleman.
Everyone understands that we are in the middle of a very difficult
downturn in the economy, a recession. It is difficult enough today to
create jobs. We have the second-highest tax rate in the world. We have
the most onerous regulatory burden in the world. We have the most
litigation in the world. So how do we create new jobs? Well, it is not
with this tax-and-cap bill.
I will tell you, in China today they must think that Christmas is
coming in June. If you look at this box here, it says ``To China from
the U.S. Congress.'' Well, let's see what is inside of it, okay?
What is inside of it is U.S. jobs. This is going to cost 17,000 jobs
in Iowa in 2012 and each year after that. Nationwide, 2\1/2\ to 3
million jobs will be lost because of this bill.
If we are going to do anything to help the economy, let's not put
another burden, let's not make us less competitive in the world, and
let's not destroy hope for the next generation, which this bill does.
Please vote ``no'' and save our country.
Mr. WAXMAN. Madam Speaker, I'm pleased at this time to yield to a
real leader from the State of Iowa who has taken an active role in this
and so many other policy areas, Mr. Braley, for 1 minute.
Mr. BRALEY of Iowa. Madam Speaker, this is a defining moment in our
country's history. And last night out at the White House, I saw the
chairman holding his grandchild in his hands. The question every Member
of this body is going to have to face when they look into the eyes of
their children and grandchildren is, Where were you on this pivotal
vote in our country's history? Where were you when we tried to free
ourselves from our dependency on foreign oil? Where were you when we
tried to create a new energy policy based on clean energy like the
clean-energy revolution taking place in my State of Iowa?
This bill won't cost jobs in Iowa. It will create thousands of jobs
in clean energy. That is what the message is I'm sending to my
children. That is the

[[Page H7634]]

message I'm sending to my grandchildren. This is the time to break away
from Middle East oil oligarchs, set a new policy for our energy future,
and send a message to the world that we will be leaders, not followers,
when it comes to climate change.
Mr. BARTON of Texas. Madam Speaker, I want to yield myself 30 seconds
just briefly.
According to David Sokol, the CEO of MidAmerican Energy, which serves
most of the utility customers in the State of Iowa, the bill before us
will raise utility prices, for every residential customer in Iowa, $110
a month, or $1,320 a year. That is not a job creator in Iowa; that is a
job killer in Iowa.
I now want to yield 1 minute to a distinguished member of the
committee from the great Keystone State, Mr. Tim Murphy of
Pennsylvania, 1 minute.
Mr. TIM MURPHY of Pennsylvania. A headline in yesterday's Pittsburgh
paper said ``More Pa. Residents Suffering in Recession, Poll Shows.''
And this is the time to give people in Pennsylvania, and throughout the
Nation, hope.
Pennsylvania and the Pittsburgh area is the area that was built upon
energy. We had abundant supplies of coal, natural gas and water. That
is why steel was there. We invested in the National Energy Technology
labs, and we still have hundreds of years of coal.
Folks, this is a time when we need to improve the efficiency of wind
and solar so we can have them as energy resources. But let's not
abandon steel because you can't make it without coal. Let's not abandon
coal. And let's make sure we invest in clean coal. This is a time when
we say to kids that right now we get about 35 percent of our energy out
of a lump of coal. And it does pollute. What we have to do is clean it
up, invest in that and build clean-coal plants. Whoever figures out how
to do that, that is Nobel Prize material. It is the scientific,
technological, and educational challenge of our generation.
And what's more, you can't have lights on without doing that. Let's
do all of the things we need to do. But this bill is not the way to do
it. We can solve these problems. But we can't rush into it the way we
are doing it now.
Mr. WAXMAN. Madam Speaker, at this time, I want to yield to the
distinguished sole representative from the State of Vermont, a man we
are very pleased to have on our committee and who has been a leader in
some of the areas on this bill. He reminds us that efficiency is the
way to go to use less fuel. I yield 1 minute to Mr. Welch.
Mr. WELCH. Thank you, Mr. Waxman.
Madam Speaker, although some dispute it, there is little doubt that
oil is a finite resource and we are at or near peak oil, that global
warming is real, that the threat to our economy is immediate and that
the need to act is urgent.
And while our friends on the other side raise questions about how our
actions will affect jobs and utility bills, those very legitimate
concerns have been exhaustively addressed in this legislation.
But what they fail to acknowledge is that the cost of inaction is
great in lost opportunity for jobs, a cleaner environment and a
stronger economy. Many of the new jobs in Vermont and around the
country are related to the new clean-energy economy.
Madam Speaker, today Congress will make a very fundamental decision.
Will America confidently and directly declare a policy of American
energy independence? Will it unleash the talents of our scientists and
engineers, empower our entrepreneurs and manufacturers? Will it put to
work our farmers, carpenters, masons, electricians and plumbers through
efficiency, through renewable energy and through the new technology for
coal?
The great decisions a nation makes, Madam Speaker, are always about
facing our problems, not retreating from them, and about the conquest
of hope over fear.
I first wanted to thank Chairman Waxman, Chairman Markey, and the
Energy and Commerce Committee staff for their tremendous work and
leadership on this legislation. To bring to the floor the first ever
bill to address our global warming crisis was no small feat, and while
we would all like to see changes in this bill, it represents the best
step forward toward charting a new energy future for our country.
If civil rights was the issue of my generation, addressing climate
change is the issue of today's. The young people and students across
this country deserve great credit for providing the energy--renewable,
of course--behind this historic legislation. They have the most at
stake; they will inherit this planet and the economy we leave them.
Their future must be addressed now.
Earlier this year when we first began taking testimony on this
legislation, I had the opportunity to ask executives of some of the
world's largest companies whether Congressional inaction for addressing
climate change threatened their bottom line, their viability, and our
economy. One by one, they each responded: ``yes . . . yes . . . yes.''
These were our nation's economic leaders unanimously recognizing the
urgent need for a new, post-carbon economy.
The scientific facts are clear: global warming is real, it is urgent
and it threatens our economy, our national security, and our way of
life if unaddressed. We must tackle this challenge squarely, like the
confident nation that we are.
Addressing this challenge presents us with opportunity--an
opportunity to create new, green jobs and build a stronger economy; an
opportunity to make our country more secure and energy independent; and
an opportunity to save on electric bills at home and turn better
profits at the workplace.
This legislation sets us toward the bright future of a post-carbon
economy. If we don't make this commitment now, nations like Japan,
Germany, Brazil--countries around the world will outpace us and leave
us far behind.
In this legislation, we take the bold steps necessary--with a firm
cap on carbon pollution, new renewable energy and energy efficiency
standards, and investments in renewable energy development. But we also
make policy changes throughout our energy economy that will help hard
working Americans get and stay ahead.
We create a national Certified Clean Stove Program, building on
Vermont's success to encourage those who heat their homes with wood
stoves to install cleaner-burning stoves.
We establish the nation's first energy efficiency improvement target.
Among many consumer protection previsions, but critical for states
like Vermont, we establish consumer rebates and weatherization
efficiency investments to residents in states that rely upon home
heating oil.
And we establish The Retrofit for Energy and Environmental
Performance (REEP) Program to provide billions of dollars in financial
incentives to homeowners and business owners to encourage them to
retrofit the nation's existing buildings, which account for 10 percent
of global carbon emissions. This program, supported by the Home
Builders, Realtors, NRDC and others, will create thousands of jobs and
help homeowners and business owners save on energy bills.
At less than the cost of a postage stamp a day, through this bold
legislation we will make our nation more secure, create a new, more
efficiency, more productive, more prosperous energy future.
When President Kennedy said we would put a man on the moon, many
thought it wasn't possible. We did it. Today, we take the bold and
necessary step to address one of the most pressing and urgent
challenges in generations.
As the author of the provisions of this bill that creates the
Retrofit for Energy and Environmental Performance (REEP) Program Act,
it is my goal to ensure the greatest possible participation in efforts
to reduce energy consumption in residential and commercial buildings.
It has come to my attention that real estate investment trusts
(REITs) may be reluctant to participate in this program as it is
currently crafted. They are concerned that they may lose their REIT
status unless the REEP grants are considered qualifying assets that
generate qualifying income for the purposes of the REIT income and
asset tests.
Listed REITs own and manage over 6 billion square feet of commercial
real estate. This is a significant amount of property that, if
retrofitted, could yield significant energy savings.
Therefore it is my hope that as this bill moves through the
legislative process we will include the necessary clarifications to
ensure that REITs will be able to fully participate in the REEP
program.
Mr. BARTON of Texas. Madam Speaker, could I inquire as to when the
majority is prepared to go to the Ways and Means Committee's time?
Mr. WAXMAN. If the gentleman would yield to me, when our time expires
for both committees. Perhaps we ought to let you take additional time
at this point, because we have used far more than you have.
Mr. BARTON of Texas. I have agreed to do that. But my question is,
when is it the intention to allow the Ways and Means Committee to use
their time? Is that in the next 15 minutes or is it around 3 o'clock?
When is your inclination?

[[Page H7635]]

Mr. WAXMAN. If the gentleman would yield, perhaps we can inquire of
the Chair how much time is still available to the Energy and Commerce
Committee.
The SPEAKER pro tempore. The gentleman from California has 32\1/2\
minutes remaining.
The gentleman from Texas has 43\1/4\ minutes remaining.
Mr. BARTON of Texas. I just need a planning estimate to tell the
Members on my side when we are going to go to the Ways and Means. I'm
not being argumentative.
Mr. WAXMAN. Why don't we discuss that informally?
Mr. BARTON of Texas. At this time, I want to yield to another
distinguished member of the Energy and Commerce Committee from the
Pelican State, Mr. Scalise, 1 minute.
Mr. SCALISE. Madam Speaker, I want to thank the gentleman from Texas
for yielding.
I stand here to strongly oppose this cap-and-trade national energy
tax that is being proposed to be created here today.
One of the things we have heard is about jobs. Let's talk about jobs.
The National Association of Manufacturers estimates the United States
will lose 3 to 4 million jobs if this bill becomes law. The President's
own budget director has said American families will see a $1,200
increase per year on their electricity bill if this bill becomes law.
That is the policy that they are trying to pass. That is the policy we
are standing up and opposing today.
Let's talk about job loss. If you look at the bill, they have 55
pages in this bill dedicated to job losses. Now why would they put 55
pages in the bill dedicated to job losses if they didn't think this was
going to lose jobs and run those jobs over to China and India?
And the real irony is for those who think that we need to reduce
carbon emissions, this bill will actually increase carbon emissions
because when that steel mill moves from the United States to Brazil,
four times more carbon is emitted to produce steel in Brazil than in
the United States. And not only do we lose jobs, they emit more carbon.
This is a horrible way to wreck the American economy. We need to defeat
it.

{time}  1430

Mr. WAXMAN. Madam Speaker, I wish to yield to the gentleman from
Michigan and chairman emeritus of our committee (Mr. Dingell) so he and
I could engage in a colloquy.
(Mr. DINGELL asked and was given permission to revise and extend his
remarks.)
Mr. DINGELL. Madam Speaker, I ask my good friend to join in a
colloquy about the electric transmission provisions. I support
renewable power, as does he. However, there is a delicate State-Federal
balance of authority in this area.
I yield to my good friend.
Mr. WAXMAN. I agree we must be sensitive to the State and Federal
roles, but we must also move forward on transmission policy. My goal
here is to take the first step.
Mr. DINGELL. I have concerns about the wisdom of splitting the
country in two parts, into eastern and western interconnections, for
the purpose of regulating transmissions. Does my colleague agree we
should have a unified national transmission policy?
Mr. WAXMAN. Yes, that is my preference. However, there is more
consensus about how to move forward in the western interconnect than
there is in the eastern interconnect, and we should make the progress
we can in the west. I will continue to work towards a policy that is
comprehensive and effective.
Mr. DINGELL. I thank my good friend. I have a further question. I am
also concerned that wilderness areas and conservation easements be
fully protected, particularly in the eastern interconnection.
Mr. WAXMAN. This proposal leaves in place the current environmental
protection in the eastern interconnection. The changes in the west
account for the very sensitive nature of the lands there, including
Federal lands.
Mr. DINGELL. Reclaiming my time, finally, the effect of this language
on existing law is unclear, which might only lead to more litigation
and delay.
Mr. WAXMAN. Well, we need a policy that is clear and can be
implemented. This is only a partial step forward, as I have said, and I
look forward to having your help in adopting a workable policy.
Mr. BARTON of Texas. I yield 1 minute to a distinguished senior
member of the committee from the great State of Georgia, Mr. Deal.
Mr. DEAL of Georgia. I thank the gentleman for yielding. There are
many issues that need to be discussed. I rise in opposition to this
legislation. One of the topics is that of jobs. We are told we are
going to gain jobs. By most reasonable estimates, we are going to lose
jobs. The best example of that is to look at what happened in Spain.
Spain has traveled this path of renewables and green energy. Their
estimate is that for every job they gained, they lost over two. I don't
consider that to be a direction that our country needs to go,
especially in these difficult economic times.
The second thing that needs to be said is that there is a disparity
that is being created in the renewable portfolio requirements. For
portions of the country such as Georgia and the Southeast, in general,
we don't have the volume of alternatives that are allowed under this
legislation, especially if we are not going to get credit for the
nuclear plants that we are trying to bring on board in our State.
Therefore, we will have to purchase those credits from some other part
of the country, something that I think will have an undoubtable,
definite negative effect on the power bills of the citizens of my
State.
I rise in opposition to the legislation and urge my colleagues to
vote against it.
Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from
Georgia (Mr. Scott) for the purpose of a colloquy.
Mr. SCOTT of Georgia. Madam Speaker, let me thank Chairman Waxman for
the excellent job he has done in providing leadership and for expanding
the renewable energy standard to reflect the interests of my
constituents in Georgia, and certainly the Energy Star home labeling
program.
As you know, Mr. Chairman, there is one issue that I have discussed
with you that I am very concerned about that we are working our way
through, and I would like to enter into a colloquy with you. I am
concerned about the jurisdiction of derivatives.
I serve on the Agriculture Committee and the Financial Services
Committee. We feel very strongly that any language in this dealing with
the regulation of derivatives certainly should be handled by the
Financial Services and Agriculture Committees, and you and I have
discussed that, and I would like to know how that is done, particularly
in view of the fact that 95 percent of the 500 largest global
corporations use derivatives for risk management.
I yield to the gentleman.
Mr. WAXMAN. You and others have expressed concern about this issue.
This matter will be determined by the work of the Financial Services
Committee and the Agriculture Committee. We have a placeholder in the
bill. Once they agree on the issue that is within their jurisdiction,
it will be placed in the bill.
I want to point out that you have a unique role in that because you
are on both committees and have a special interest on this question. So
I look forward to seeing your work on that matter.
Mr. SCOTT of Georgia. I thank you, and with that I will certainly
support the bill and urge my colleagues to support the bill.
Mr. BARTON of Texas. I yield myself 15 seconds.
We have just experienced something somewhat revolutionary. We have a
bill before us that has a placeholder in the bill. We are passing a
bill with a placeholder to be determined later. I have never seen a
final passage on a bill that had a placeholder in the bill.
With that, I yield to Mr. Pitts, a member of the committee from the
State of Pennsylvania, for 1 minute.
Mr. PITTS. Madam Speaker, like all of us, I believe we should work to
decrease the amount of greenhouse gas emissions in our atmosphere, and
we should be good stewards of this Earth and its resources. However, I
don't believe this bill will accomplish a dramatic decrease in
greenhouse gas emissions; yet I do believe it will have a crippling
effect on our economy for years.

[[Page H7636]]

No matter how you doctor or tailor it, it is a tax, a national energy
tax that will hurt each and every household. It will destroy sectors of
our economy and cause job losses at an unprecedented rate.
Here is a chart that shows the jobs losses in thousands of jobs here,
nearly 2 million jobs, 2012; 2035, over 2 million jobs a year. We
should be protecting our environment through innovation, through
entrepreneurship and cooperation, but this bill tries to cut carbon
emissions through punishment taxation, heavy hand of government, and
litigation.
The bill as originally introduced, analyzed by the PUC, a bipartisan
group in Pennsylvania, said it would cost Pennsylvanians 66,000 jobs by
the year 2020.
I urge my colleagues to consider just how irresponsible it is to move
legislation that is going to cost so many jobs, so much damage to our
economy, and yet it is anticipated to slow temperature increases by
only two-tenths of 1 degree Fahrenheit by the end of the century. There
is a better way.
Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from
Maine (Mr. Michaud) for the purposes of a colloquy.
Mr. MICHAUD. I rise for a colloquy with the chairman of the
Agriculture Committee, Chairman Peterson. I want to thank Chairman
Peterson for his hard work on that legislation, and I seek
clarification of two provisions in section 788 of the bill relative to
the forest land and forestry sector.
Specifically, on page 198, line 14 of the bill, I would like to know
if the agricultural sector language includes forest lands and forestry
sector. Also, on page 199, line 22 of the bill, I would like to know,
does the term ``projects'' include sustainable forest practices, such
as avoided deforestation agreement?
Mr. PETERSON. I want to thank the gentleman for his work on improving
the definition in this bill and assure him that, just as with many USDA
conservation programs, forest land fully qualifies for this energy
incentive program and it is our intent that it be included in this
section. Both the terms ``agriculture sector'' and ``projects'' in 788
are inclusive of forest land and could be used to provide incentives
for private forest land owners who may not otherwise qualify to
participate in the ag offset program.
I will continue to work with the gentleman. He can be assured this
will be included.
Mr. MICHAUD. I thank the gentleman for that.
Mr. BARTON of Texas. I yield myself another 15 seconds.
I want to tell all of the Members, if you haven't made your deal yet,
come on down to the floor. What we are seeing is unprecedented. We're
making deals on the floor. I want to commend Mr. Waxman; at least he is
now doing it in public. I mean, that is unprecedented, but at least it
is transparent.
With that, I yield 2 minutes to the gentleman from Florida (Mr.
Stearns).

Announcement by the Speaker Pro Tempore

The SPEAKER pro tempore. The gentleman will suspend.
Members are reminded to address their remarks to the Chair.
Mr. STEARNS. Madam Speaker, you know, this is a defining moment. And
``where were you when this legislation came on the floor'' is going to
be something that you're going to remember.
As the ranking member has indicated, the lobbying on this by Vice
President Gore and the President and all of the people has been
tremendous, and there is a possibility that they still don't have the
votes. One of the reasons is there is not a fairness factor here.
China adds more CO<inf>2</inf> to the atmosphere each year than any
other nation in the world. However, they have consistently said they
reject any binding international cap on such emissions and claim the
right to continue to increase its release of greenhouse gases while at
the same time we are going to pass--attempt to pass this legislation.
My colleagues, without equivalent efforts by China and India to limit
greenhouse gas emissions, the United States stands to lose many
hundreds of thousands of jobs to these countries that will profit from
this bill today.
The proponents of this legislation say we should make unilateral
reductions, unilateral disarmament, which will in turn impose moral
pressure on other countries. I find it hard to believe that China and
India will reduce their economic growth and idle their people because
they are willing to adopt a cap-and-trade. The cap-and-trade is flawed.
China and India are not going to go forward. Any meaningful effort to
achieve long-term, sustainable reductions in global greenhouse gas
emissions depend on the development and deployment of new energy
technologies, we all agree, we must include clean coal technologies,
carbon capture and sequestration, and advanced nuclear power
generations. I had an amendment that was designed to do this. It was
not allowed.
The rapid development demonstration of widespread deployment of such
technologies are of paramount importance in any reasonable and any
effective effort to address CO<inf>2</inf> reductions. The massive new
regulatory burdens imposed by this cap-and-trade scheme will invariably
cut the growth and innovation in this country and we will lose jobs.
Let's foster new technology. Let's not pass this bill.
Last night, I offered two substantive amendments to improve this
flawed legislation. One of my amendments would have allowed states that
have existing nuclear power plants to more easily meet the Renewable
Electricity Standard by excluding all electricity generated by nuclear
power from a retail electric suppliers bases amount. My other amendment
would have eliminated the home Energy Star labeling program that will
further reduce property values at a time when many homeowners have seen
their equity and retirement savings vanish. Unfortunately, both of
these amendments were struck down by the Rules Committee along with 221
other amendments.
Quoting from yesterday's Wall Street Journal editorial, Americans
should know that those Members who vote for this climate bill are
voting for what is likely to be the biggest tax in American history.''
In fact this cap and tax scheme could cost families up to $3,100 more
per year and result in real GDP losses of $9.6 trillion over the life
of the bill, especially if we do it alone.
China adds more CO<inf>2</inf> to the atmosphere each year than any
other nation in the world, however they have consistently rejected any
binding international cap on such emissions and claims the right to
continue to increase its release of greenhouse gases. Without
equivalent efforts by China and India to limit greenhouse gas
emissions, the U.S. stands to lose many hundreds of thousands of jobs
to these countries that will profit from this bill.
The proponents of this legislation say we should make unilateral
reductions, which will in turn impose moral pressure on other countries
to reduce their emissions. I find it hard to believe that other nations
would follow the United States in reducing economic growth and idling
millions of workers. Although cap and trade is flawed, there is much
that we can do to reduce carbon emissions and our dependence on
imported energy sources.
Any meaningful effort to achieve long-term, sustainable reductions in
global greenhouse gas emissions will depend on the development and
deployment of new energy technologies, including advanced clean coal
technologies, carbon capture and sequestration and advanced nuclear
power generators. The rapid development, demonstration and widespread
deployment of such technologies are of paramount importance in any
reasoned and effective effort to address carbon dioxide reductions.
The massive new regulatory burdens imposed by this cap and trade tax
scheme will inevitably undercut the growth and innovation we
desperately need to build lasting and effective solutions. Fostering
new technology and scientific research across all sectors of the
economy, not capping our economy and trading U.S. jobs, will guard our
nations security and increase our energy independence.
I encourage all my colleagues to join me in strong opposition to this
legislation.
Mr. WAXMAN. Madam Speaker, I reserve the balance of my time.
Mr. BARTON of Texas. Madam Speaker, I yield 3 minutes to the
gentleman from Virginia (Mr. Cantor), the distinguished minority whip.
Mr. CANTOR. Madam Speaker, if there is one thing everyone in this
Chamber should be able to agree on, it is that we need to focus on job
creation and relieve the burden on middle-class families, not increase
it. Yet the evidence suggests that by taking up this cap-and-trade
bill, we are abandoning this fundamental mission.
According to an MIT study, the legislation before us will force
America's middle-class families to pay as much as $3,100 in higher
prices every year. The EPA, meanwhile, estimates that a family of four
will eventually pay an additional average of $1,100 each year.

[[Page H7637]]

The impact on jobs is equally dismal. A CRA International study finds
the legislation, when fully implemented, will cost America 2.3 to 2.7
million jobs. This, at a time when hundreds of thousands of workers are
losing their jobs every month.
In the midst of a severe recession, why would we even contemplate a
plan that amounts to a growth-killing millstone around the neck of
small businesses and all American consumers.
Madam Speaker, it is not the utilities, the oil companies, and the
other producers who will bear the cost of this new regime. We already
know that the companies will pass their higher costs along to the
consumers and small businesses that rely on their services. This means
more expensive bills for all Americans on everything from electricity
to heating to gasoline to groceries.
We also can't forget that this national energy tax comes down hardest
on the poor. The highest income quintile spends less than 5 percent of
its income on energy-intensive products, but our families in the lowest
income quintile spend over 20 percent on those items--this, according
to CBO.

{time}  1445

Madam Speaker, with a watchful eye toward the consequences for jobs
and economic growth, let us give thoughtful consideration to the
limited benefits this unilateral action will bring about. Even if the
bill cuts U.S. carbon emissions to 83 percent of current levels by
2050, we still are only anticipated to slow global temperature
increases by a mere two-tenths of a degree.
And then there's the real elephant in the room, India and China. Both
of these freewheeling nations are growing rapidly and not prepared to
slow down. Do we really want to hamstring U.S. industry and put it at a
competitive disadvantage to Asia? Can we be so naive to assume our
businesses, jobs--and emissions--won't emigrate to China and India?
Moving to eliminate CO<inf>2</inf> from the atmosphere is a noble
endeavor, but taking this kind of action without enforceable carbon
commitments from our competitors is only an exercise in futility.
Madam Speaker, Republicans remain committed to bringing a swift end
to the recession and paving the path to prosperity. We intend to focus
on policies that will put people back to work and grow the economy.
That does not include this cap-and-trade proposal. With stakes so high,
gambling the house away on such a high-cost, low-reward program is a
grave mistake that Republicans will not support.
Mr. BARTON of Texas. I yield 1 minute to the distinguished gentlelady
from West Virginia, Congresswoman Capito.
Mrs. CAPITO. Madam Speaker, at a time when families are already
struggling to meet their basic needs, the last thing we need is a new
energy tax on all consumers, and that's exactly what this cap-and-trade
bill is. It is a national energy tax that will burden consumers, burden
businesses, and particularly burden the lower-income families in this
country. It picks regional winners and losers, with coal-dependent
States like mine, West Virginia, bearing the brunt of this bill.
Under this bill, we will actually be penalized for our lower-cost
power and will have to pay more to continue using our greatest
resource, coal. We should be innovating towards clean coal and carbon
sequestration where we can continue to use our most abundant resource.
We all want cleaner sources of fuel and more efficient energy, but
this cap-and-trade bill is not the way forward. This bill is a jobs
killer. This bill has real costs for real people. Vote ``no'' on this
bill.
The SPEAKER pro tempore. The gentleman from New York is recognized
for 15 minutes.
Mr. RANGEL. Mr. Speaker, I rise today in support of the American
Clean Energy and Security Act of 2009 and urge my colleagues to support
it.
Listening to the beginning of this debate, I'm convinced that--one of
the people on the other side said that our voting today will be well
remembered, not by Democrats and Republicans, but by the entire world.
We know that we have a crisis. It is a universal crisis; it's a crisis
that affects our country and our communities. But the ironic thing
about it with the other side, all of their comments have been in
criticism of the great work that has been done by Congressmen Waxman
and Markey and their committee, the Ways and Means Committee, and those
that were concerned about perfecting something to protect the people of
this Earth. And just as they will remember the courageous and political
forces that were put together to make this great contribution to
humankind, they also will remember the negative political shots that
have been taken and the absence of any positive program that the
minorities have brought forward.
I congratulate our great Speaker for coordinating this effort. People
call it, on the other side, ``deals,'' when they don't have any ideas
to put forward. But ``deals,'' if it means bringing people together and
getting a better bill and moving forward in order to provide a
majority, then I'm proud to be on this side of the aisle.
Mr. Speaker, I reserve the balance of my time.
Mr. BARTON of Texas. I yield 1 minute to the member of the committee
from the Golden State of California (Mr. Radanovich).
Mr. RADANOVICH. Mr. Speaker, I rise in strong opposition to the
global cap-and-tax bill that is on the floor today. You don't have to
look any further than my own beloved State of California to see
environmental alarmism at its worst. California has adopted its own
renewable energy standard and carbon cap-and-trade scheme. It's killing
business in California and driving people out of the State in record
numbers.
Rural and agricultural communities will be most affected by this
bill, forcing local agriculture producers to pay more for seed,
equipment, machinery, steel, and other supplies. If you like getting
your oil from Hugo Chavez, with cap-and-tax you're going to love
getting breakfast, lunch and dinner from him too.
If we were truly interested in achieving dramatic reductions in
CO<inf>2</inf> emissions without destroying our economy, we should
preserve our robust economy and allow the free market to continue to
produce commercially viable energy efficiencies and clean-energy
technologies.
I urge my colleagues to do something good for the economy and the
environment and put this bill where it belongs, in the recycle bin.
Mr. BARTON of Texas. Will the gentleman from New York yield for a
procedural inquiry?
Mr. RANGEL. I would be glad to.
Mr. BARTON of Texas. I've got two nonmembers of the Ways and Means
Committee that I would like to go out of order to get us in balance so
Mr. Camp and you can balance each other.
Mr. RANGEL. I yield to the gentleman.
Mr. BARTON of Texas. I yield 1 minute to the gentleman from New York
(Mr. Lee), and I want to thank Mr. Rangel for his courtesy.
Mr. LEE of New York. I thank my friend for yielding.
The people in my district know only too well that when Washington
applies itself to a problem, it overregulates and always hides the true
cost to the taxpayer. This bill is truly no different with it being
over 1,100 pages in length and 50 pages dedicated to regulating light
bulbs.
In order to garner enough votes, the majority has tried to shift the
most punitive cost of this bill to later years so they can get it
passed. Early on, it will be the government footing this enormous bill
with your tax dollars, and then down the road this subsidy will shift
to consumers who will pay directly to sustain this program through
higher, job-killing energy prices. Either way, it's the taxpayer who
bears the burden.
This bill is truly a pipe dream. We need to focus on an energy
solution that rewards innovation using American-made energy, not trying
to find a way to tax our way to prosperity and continue this horrific
job loss. That is why I urge my colleagues to oppose this bill.
Mr. BARTON of Texas. Mr. Speaker, I yield 1 minute to the
distinguished Congresswoman from Illinois, a member of the Science
Committee, Congresswoman Biggert.
Mrs. BIGGERT. I thank the gentleman for yielding.

[[Page H7638]]

Mr. Speaker, I rise in opposition to the American Clean Energy and
Security Act.
In my home State of Illinois, we depend on nuclear, coal, and natural
gas for our electricity. Because this bill discriminates against these
energy sources, Illinois will be hit especially hard. Gas prices could
rise by 77 cents a gallon and diesel by 88 cents a gallon. This is part
of an entirely arbitrary penalty on oil and gas that is passed straight
on to the consumer.
H.R. 2454 does little to incentivize new nuclear production, despite
the fact that nuclear power is safe and emissions free, and what little
it does is grossly inadequate concerning the overall goal of this bill.
I am deeply concerned also that there is no framework for an
international agreement on climate change in this bill. In the absence
of such framework, and in agreement from developing nations, my
district can count on losing thousands of jobs to countries like India
and China if this legislation is enacted.
Mr. Speaker, I oppose this bill and urge my colleagues to do the
same.
Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from
Michigan, Chairman Levin.
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. Action on climate change is a policy, indeed, a moral
imperative. Prompt action is a vital part of our legacy to the Nation,
and to our children and grandchildren.
As we act, we can and must ensure that the U.S. energy-intensive
industries are not placed at a competitive disadvantage by nations that
have not made a similar commitment to reduce greenhouse gases.
After discussions between the Energy and Commerce and the Ways and
Means Committees and the administration, we have developed reasonable
and effective provisions which involve the President and the Congress
in taking action--no more than necessary--to ensure that this important
legislation is trade-neutral for our energy-intensive industries.
We want to see a meaningful international agreement. If we are unable
to do so through an international agreement, this legislation ensures
that the U.S. will avoid carbon leakage in its energy-intensive and
trade-sensitive industries.
There are some critics--and we may hear from them today--who claim
that these changes make the bill subject to trade challenges. They are
wrong. Just today, the World Trade Organization and the U.N.
Environment Program issued a report which confirms that ``WTO rules do
not trump environmental requirements.''
Mr. CAMP. Mr. Speaker, I yield myself 3 minutes.
As a candidate, the President stated that under his energy plan
``electricity rates would necessarily skyrocket.'' I give him credit,
he was being honest with the American people.
Today, the Nation's unemployment level is fast approaching 10
percent. That means one out of every 10 Americans will soon be without
a job and without a paycheck to provide for themselves and their
families. Yet, this national energy tax will drive up prices while
making jobs scarcer. In fact, one utility which is even supporting this
legislation has already applied to State regulators to raise their
electricity rates in anticipation of the cost of complying with this
national energy tax.
While the Speaker wants us to pay more in energy taxes, China and
India have repeatedly said they will not follow suit. They will not
impose those hardships on their people. This shouldn't surprise us. As
our mothers used to ask, if everyone else jumped off a cliff, would
you? Of course not. Neither will China and India. They recognize
enacting these caps is like jumping off an economic cliff.
So what does a ``yes'' vote mean? It means more American
manufacturing jobs move to China and India, fewer Americans have jobs,
and there is no reduction in global greenhouse gases. And because this
bill was rushed to the floor, because the American people were not
given a chance to review it because their Representatives were not
given a chance to improve it through the committee process, this bill
contains numerous flaws.
The border measures, which the Committee on Ways and Means has not
reviewed, are an area open for our trading partners to retaliate
against our goods and against our workers. How does this help our
economy? How does this help families? How does this help our
environment? It doesn't.
Now, I know promises have been made that your constituents won't be
harmed by this bill, that it contains plenty of consumer protections.
What are those protections? Who's going to get them? Not the middle
class. Not the people the President promised to protect, families
making less than $250,000 a year. Somewhere in this House late at night
someone made the decision to eliminate the tax credits designed to help
middle class families pay for these high energy prices.
Here are the plain and simple facts: under the Speaker's national
energy tax, a family of four with income over $33,000 per year will
lose under this bill. They, and 235 million other Americans, will pay
higher costs and receive no help in offsetting those costs. Let's be
clear what this means: three out of every four Americans will pay more
under this bill.
The Speaker's national energy tax is bad for our economy, bad for
families who are already struggling to make ends meet, and it will do
nothing to reduce global greenhouse gas emissions. It's all pain and no
gain. I urge my colleagues to vote ``no'' on this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. When the Republican Party becomes the protector of the
poor, it's a day that I've been waiting for.
I would like to yield 2 minutes to Mr. Larson, an outstanding leader
of the Democratic Party.
Mr. LARSON of Connecticut. I thank the distinguished chairman.
Mr. Speaker, it has been an interesting day in listening to the
claims that have emanated from the other side of the aisle, claims
about honesty, claims about being forthright. The President of the
previous administration, President Bush, stood on the floor and claimed
our addiction to oil, and everybody put their head in the sand and did
nothing as we continued to send and export American dollars overseas.
We send American taxpayer dollars overseas to Russia, to Saudi
Arabia, to Libya, to Venezuela, all the people that you have chimed in
about today. That's the real tax that we are paying because of our
increasing addiction and our need to stand up and rid ourselves of
dependency on foreign soil.
So the challenge faces us once again--it was here 30 years ago, and
we didn't have the courage to make the stand, nor the patriotic fervor
or fiber to stand up and do the right thing.

{time}  1500

Stop this addiction. If T. Boone Pickens can get out front across
this country and talk about this awful addiction, and, as Thomas
Friedman said very eloquently, if the American policy of the previous
administration is to ``leave no mullah behind'' and find our funds that
we pay with American taxpayers going to fund our enemies' efforts
against our own troops in our efforts against terrorism, that is what
this is about in the final analysis. It's about this great country of
ours and making a stand for what we believe in, standing up for
American dominance and superiority.
Yes, the Chinese and Indian nations are out there competing. We want
to compete against them because we have better technology. We just have
to make the investment here and not in Saudi Arabia and Libya and
Venezuela and Russia. That's what the policy of previous
administrations have led us to. And that's where it must end today, on
this floor.
Mr. CAMP. Mr. Speaker, I wish the gentleman's passion was directed at
bringing the bill before the Ways and Means Committee.
With that, Mr. Speaker, I yield 1 minute to the distinguished
gentleman from California (Mr. Herger).
Mr. HERGER. Mr. Speaker, not only is this legislation not the right
thing; this legislation is one of the most overreaching, damaging
pieces of legislation that has ever come before this House of
Representatives.
This national energy tax is a job killer and will cost American
families over $3,000 per year while doing very little

[[Page H7639]]

to affect global temperatures. Rural America, low- and middle-income
families, and our farmers will suffer the most under this new tax.
Mr. Speaker, we all want to protect our environment. But we should
accomplish that through innovation and investment, not by government
micromanagement that undercuts Americans' ability to compete globally.
I urge all Members to protect the American economy and livelihoods of
millions of American families and say ``no'' to this gigantic national
energy tax.
Mr. RANGEL. Mr. Speaker, I would like to yield 2 minutes to the
gentleman from Massachusetts, Chairman Neal.
Mr. NEAL of Massachusetts. I want to commend Mr. Rangel and Mr.
Waxman and Mr. Markey, who have attempted against long odds to forge a
consensus on this legislation.
Mr. Speaker, the bottom line to this legislation as proposed today is
it will make America less dependent on foreign oil. And, remember,
despite protestations to the contrary from our friends on the other
side, there is an element on the other side who rejects to this day the
concept of climate change and global warming. It is very difficult to
find middle ground if there's a side that simply rejects the science of
our times. Part of our job in leadership in governing is to make some
difficult decisions and, indeed, some very tough choices. This climate-
change bill we have before us today makes those tough choices for our
future and our children's future. It's in the interest of America, but
just as importantly, it's in the interest of the world. America leads
the way, and this is an opportunity for us to reclaim that leadership.
This legislation will lead our consumers, our businesses, and our
communities towards smarter, cleaner, and more efficient energy use.
And it will not be alone. Strong trade enforcement mechanisms will mean
that the American business community will not be disadvantaged by
importers who skirt the rules. This long legislation is a vote for
innovation and environmental stewardship.
I almost would be remiss if I didn't mention this as well. For the
previous 8 years, the administration rejected the idea of global
warming. The other side was given fancy talking points to grudgingly
acknowledge that perhaps it might be happening but to spin the argument
that it presented a peril to our times. You would be hard pressed to
find scientists anywhere across this globe who have not at least forged
a consensus on identifying and defining the problem. As is always the
case in public life, it is difficult once definition has settled in to
offer a solution. This legislation today offers a solution.
Mr. CAMP. Mr. Speaker, I yield 1 minute to a true American hero, a
distinguished member of the Ways and Means Committee, the gentleman
from Texas (Mr. Sam Johnson).
Mr. SAM JOHNSON of Texas. Mr. Speaker, as a clean-energy advocate, I
believe we should be good stewards of the Earth and its resources.
We're in the midst of a long recession. Yet the Democrats want to
impose a massive new energy tax on American families and businesses,
costing every American family heavily. Americans are sick and tired of
Democrats spending too much, taxing too much, and borrowing too much.
With the price at the pump rising 65 percent this year, the Democrats
would create a 70-cent-per-gallon tax hike. With unemployment close to
10 percent, the Democrats would kill 2\1/2\ million jobs per year. My
district alone would lose 3,000 jobs per year.
Democrat Congressman John Dingell said it best, Nobody in this
country realizes that cap-and-trade is a tax, and it's a great big one.
This is America. Let's don't sell it down the river.
Mr. RANGEL. Mr. Speaker, it's my honor to yield 1 minute to Mr.
Blumenauer, an outstanding advocate of prevention of global warming.
Mr. BLUMENAUER. I appreciate the gentleman's courtesy.
For the last 2\1/2\ years, I have had the privilege of working with
the Speaker's Select Committee on Global Warming, driving home the
reality of climate change. Today we have a major opportunity to rebuild
and renew America while protecting the planet.
I want to thank the Ways and Means Committee and the Commerce
Committee for working with me to harness billions of dollars over the
life of this bill to develop transportation that reduces carbon
footprint for transit, bike, and pedestrian, development patterns,
things that will make a difference for a country that emits more carbon
with its transportation than China, India, and Europe combined. We have
an opportunity to protect the planet, but unless you're prepared to
lead, China and India will continue to pollute more and more.
This is the first step in this leadership, and I urge the courage to
vote ``yes'' on this legislation today.
Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of
the Ways and Means Committee, the gentleman from Georgia (Mr. Linder).
Mr. LINDER. I thank the chairman for yielding.
Mr. Speaker, I will submit a statement for the Record, but I'm not
going to read that statement. I want to respond to the gentleman from
Connecticut, who said we need some honesty in this discussion, and the
gentleman from Illinois this morning on the rule. The gentleman from
Illinois said on the rule that there are zero peer-reviewed articles by
scientists who disagree with the notion that humans are causing global
warming.
That will come as a surprise to Professor Morner from the University
of Stockholm, who has written 520 himself on sea levels. He's the
world's foremost expert on sea levels. Or Richard Lindzen from MIT, the
Alfred P. Sloan professor of meteorology at MIT, who has written many
peer-reviewed articles. He is a denier. Professor Willie Soon from MIT,
one of the world's foremost scientists on precipitation. John Christy
and Roy Spencer from Huntsville, Alabama. Fred Singer, who was
responsible for leading the charge to get all of our weather satellites
in the air from Northern Virginia.
And the five authors of the first IPCC report who wrote in their
scientific reports that there is no evidence that humans are causing
any of this. And those five sentences were removed by a bureaucrat who
replaced them with one sentence that said, It's clear that humans are
the cause. In a court action under oath, that bureaucrat was asked why
he removed those sentences and replaced them, and he said because of
intense pressure from the top of the United States Government.
There are 32,000 scientists, 9,000 Ph.D.s and 23,000 masters in
science who signed a petition against this silliness that we're
discussing, and they want to join the deniers Galileo and Einstein.
Einstein questioned Newton's 200 years of settled science, and he was
sent a letter by 100 of the most important scientists in the world who
challenged him on his questioning of that settled science, and he
showed the letter to his friend, and he said, You would think one of
them might have produced a fact.
That's all we ask from you is a fact. Not a computer model but a
fact.
``Energy Stamps'' in Democrat Bill Is the Biggest Welfare Program
Ever--16 Times Bigger than the Current Welfare Program
Mr. Chairman, some Members deny this bill is a massive tax hike. To
them, I can only say you're not paying attention. Everything takes
energy. If you raise the price of energy, as this bill does, you raise
the price of everything. CBO admits it, again and again.
The authors know very well their bill is a massive tax hike. That's
why, as this chart shows, they create the largest welfare program in
U.S. history, to relieve some. This legislation would pay checks--call
them energy stamps--to 16 times as many people as are on welfare now.
Here's what it says on page 1010:
``The Secretary shall . . . administer . . . the `Energy Refund
Program' . . . under which eligible low-income households are provided
cash payments to reimburse the households for the estimated loss in
their purchasing power resulting from (this bill) . . . each eligible
low-income household . . . shall be entitled to receive monthly cash
payments . . . if . . . the gross income of the household does not
exceed . . . 150 percent of the poverty line . . .''
65 million Americans fall below 150 percent of poverty. Every one
would receive a monthly energy stamp check, on top of any welfare or
other benefits they collect now.
Amazingly, this number is down from prior versions because Democrats,
predictably, removed any vestige of middle class tax relief.
So the other 235 million Americans would get nothing but a new
National Energy Tax.

[[Page H7640]]

Every family of four earning over $33,000 ``loses''--getting no energy
stamps but all the energy tax hikes.
So much for the President's pledge to cut taxes for 95 percent of
Americans. And so much for the Speaker's pledge this won't raise costs
for American families.
In his 1935 State of the Union Address, Franklin Roosevelt said
``continued dependence upon relief induces a spiritual and moral
disintegration fundamentally destructive to the national fiber. To dole
out relief in this way is to administer a narcotic, a subtle destroyer
of the human spirit.''
On that President Roosevelt was right, as surely as this legislation
is wrong.
Vote ``no.''
Mr. RANGEL. Mr. Speaker, I yield for the purpose of making a
unanimous consent request to the gentleman from Virginia (Mr.
Connolly).
(Mr. CONNOLLY of Virginia asked and was given permission to revise
and extend his remarks.)
Mr. CONNOLLY of Virginia. Mr. Speaker, it is an honor to speak in
support of this historic legislation. Congress has never faced a
challenge of such magnitude, complexity, or urgency. Global climate
change is an existential threat that undermines our national security
and imperils our coastal cities, agricultural heartland, and economic
vitality.
After enduring eight years of intransigence, denial, and fealty to
special interests, we are poised to transform the marketplace and spur
a new generation of technological and industrial innovation.
By creating incentives for clean energy we will jump-start job
creation and investment in production of advanced batteries, wind
turbines, solar panels, geothermal systems, carbon capture and storage,
and cellulosic biofuels. The dozens of companies that support this
legislation have told us that they are poised to make these
investments.
Although we have seen an alarming rise in greenhouse gas pollution,
we also know that it is not too late to act. From New Orleans to
Glacier National Park to the Everglades, by acting now we will protect
America's iconic places and our national identity.
I thank Chairman Waxman, Chairman Markey, and their committee for
leading the effort to write this legislation. Like many of my
colleagues, I ran for Congress in order to restore economic growth,
reform health care, and address global warming. We have made progress
on the first pledge and are embarking on the second. With my vote for
this bill I redeem my pledge to begin to address global warming and ask
my colleagues to join me.
I also wish to thank Chairman Waxman, Chairman Markey, and the staff
of the Energy and Commerce Committee for their collaboration in
drafting this bill. When this discussion draft was released in March,
the American Clean Energy and Security Act did not provide dedicated
funding for local governments through the State Energy and
Environmental Development (SEED) or Retrofit for Energy and
Environmental Performance (REEP) programs. I wrote to Chairman Waxman
and requested that a portion of funding through these programs be
dedicated to local governments, to support local efforts to improve
buildings' efficiency and reduce greenhouse gas pollution. The
Committee responded to my request by dedicating SEED funding to local
governments and by ensuring that REEP funding would support local
weatherization programs. These important changes ensure that Northern
Virginia localities can continue to lead efforts to reduce residents'
electric bills and greenhouse gas pollution. These changes are very
significant for Virginia. According to the Congressional Research
Service, Virginia will receive between $108 and $216 million in SEED
funding in 2012. As a result of the changes I requested, between $13.5
and $27 million should flow directly to local government programs to
reduce pollution.
In my letter to Chairman Waxman, I also requested reforms to the
transmission line siting process in order to protect environmental and
cultural resources. Northern Virginians know that we must act to
correct deficiencies to the 2005 Energy Policy Act, which created a
National Interest Electric Transmission Corridor process that granted
unprecedented authority for federal agencies to site transmission lines
without regard for the impact on environmental and cultural resources
or property values. Fortunately, the manager's amendment that is
incorporated in the American Clean Energy and Security Act takes the
important first step of ensuring that state and federal environmental
agencies and land managers have a seat at the table in the planning
process. Although additional reform of the transmission siting process
is still needed, this change will better enable us to protect important
Northern Virginia resources such as Manassas National Battlefield Park,
Prince William Forest Park, and Shenandoah National Park.
I also applaud Chairman Waxman for incorporating an amendment
proposed by the Sustainable Energy and Environment Caucus, of which I
am a member. This amendment ensures that the Federal government will
derive 20% of its energy from renewable sources by 2020. This proposal,
which Chairman Waxman incorporated into the manager's amendment, is
particularly important for Northern Virginia because it will result in
renewable energy deployment to power Federal facilities in the National
Capital Region. This is important because we must move to clean energy
generation if our region is to achieve ground level ozone reductions,
which are essential for public health, as recommended by the
Environmental Protection Agency.
Finally, I thank Mr. Waxman for incorporating language that expresses
the sense of Congress that the International Civil Aviation Association
limit aviation-related emissions worldwide. Following Committee passage
of H.R. 2454, the Washington Airports Task Force asked members of the
Northern Virginia delegation to identify a role for the International
Civil Aviation Association in limiting emissions, and I asked the
Committee to see if they could address the Washington Airports Task
Force's request. I believe that the language incorporated in Mr.
Waxman's manager's amendment is a step in the right direction, and
appreciate his willingness to address this issue at such a late point
in the legislative process.
In summary, Chairman Waxman, Chairman Markey, and the staff on the
Energy and Commerce Committee have been very responsive to my requests
for changes to this bill that benefit Northern Virginia. I greatly
appreciate their willingness to work with members like me to ensure
that this legislation will benefit residents of Northern Virginia and
across the country. As important as it is to have sound overarching
legislation, I believe it also is essential that the legislative
process allow individuals and businesses from across the country to
have a role in crafting any bill. Because of the outstanding work by
Chairman Waxman, Chairman Markey, and their committee, this bill has
evolved to reflect the needs of Northern Virginians and others from
across the country.
Finally, I would like to offer special praise to my colleague from
Virginia, Mr. Boucher. As a senior member of the Energy and Commerce
Committee, Mr. Boucher played a central role in writing the American
Clean Energy and Security Act. He is the only Virginia Congressman on
that Committee, and I believe he did an outstanding job representing
the interests of the Commonwealth. Specifically, he ensured that coal-
reliant states like ours can transition to cleaner energy sources
without creating price spikes and without negatively impacting regions
where coal extraction is important economically. This was a difficult
balance to strike, and required the skill and experience of a
legislator of Mr. Boucher's caliber. Years from now, when coal
extraction and electricity generation is substantially cleaner than
today, and when Virginia finally has significant renewable electricity
generation, we may look back and thank Mr. Boucher for his role in
crafting this legislation that made such a transition possible.
Congress has never dealt with such a complex bill of such fundamental
importance to our economy, environment, and quality of life. Led by Mr.
Waxman and Mr. Markey, the American Clean Energy and Security Act
reflects a carefully crafted consensus that has the support of large
utilities like Dominion and environmental organizations alike. While
forging this consensus the Committee found time to address requests
from members representing diverse regions of the nation with competing
needs. I thank Chairman Waxman, Chairman Markey, and I am proud to cast
my vote for the American Clean Energy and Security Act.
Mr. RANGEL. Mr. Speaker, at this time it's my pleasure to yield 1
minute to the gentlewoman from Nevada (Ms. Berkley), an outstanding
member of the Committee on Ways and Means.
Ms. BERKLEY. I thank the chairman for yielding.
Mr. Speaker, I rise today in support of this bill. It addresses
climate change, promotes the development of clean-energy sources, and
brings us closer to our goal of securing America's energy independence.
This bill also takes extra steps to protect consumers while creating
new green jobs.
Nevada is in the forefront of renewable energy use. In 1997 Nevada
enacted a renewable portfolio standard requiring that 20 percent of our
electricity comes from renewable sources by 2015. Nevada's solar
potential, coupled with our State's geothermal and wind resources, will
bring jobs to Nevada and make us a leader in the use of production of
clean energy.
In contrast, the alternative proposed by the House Republicans
continues the same old failed policies, including the Yucca Mountain
project. It doubles the amount of nuclear waste that can

[[Page H7641]]

be shipped to Nevada and jams twice as much of this radioactive garbage
down our throats. The Republican plan to more than double the size of
the Yucca Mountain dump would only double the danger to families in
Nevada and across our Nation at a cost of hundreds of billions of
dollars.
I urge all of my colleagues to support this bill.
Mr. CAMP. Mr. Speaker, I yield 1 minute to a distinguished member of
the Ways and Means Committee and the ranking member on the House Budget
Committee, the gentleman from Wisconsin (Mr. Ryan).
Mr. RYAN of Wisconsin. I thank the gentleman for yielding.
Mr. Speaker, this bill is not about science, it's not about costs and
benefits; it's about ideology. Because if you look at the costs and
benefits, the goal of this bill is to reduce global warming by 2/10 of
a degree over a hundred years, hit our economy with this massive tax
increase on homeowners, on people buying gasoline, heating their homes,
hit manufacturing at a time when our competitors will not do this. This
bill will result in jobs leaving the Midwest and jobs leaving America
and going to other countries. And for every 1 ton of greenhouse gases
we reduce, what will China do? They'll increase greenhouse gases by 3
tons. And that means more dirty air. That means more greenhouse gases.
What will the U.S. have achieved? They will have pushed production off
our shores. Jobs will be lost. Prices will go up. And other countries
will take those jobs and put more greenhouse gases in the atmosphere.
This unilateral big government, Big Brother bill is not good for the
planet. It's not good for our economy. And it sure as heck is not good
for the Midwest. And I encourage my colleagues not to vote ideology,
vote your districts and your constituents.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to an outstanding
Democratic leader, the gentleman from Maryland (Mr. Van Hollen).
Mr. VAN HOLLEN. Mr. Speaker, this is an historic day for this House
of Representatives. After years of delay and inaction, we're finally
poised to embrace America's clean-energy future and adopt an energy
strategy for the 21st century.
This act delivers on the change that President Obama has called for
in our energy policy. It will strengthen our national security by
slashing our dependence on foreign oil by as much as 2 million barrels
a day by 2030, which is as much as we export from the Persian Gulf
today. We will use those hundreds of billions of dollars instead right
here at home on homegrown, clean energy. And by doing so, we're going
to create millions of jobs, high-skilled, well-paying jobs that will
focus on renewable energy and energy efficiency. And we will do all
that without adding a single penny to our national debt.
Mr. Speaker, I especially want to thank Mr. Rangel, Mr. Waxman, Mr.
Markey, Mr. Dingell, Mr. Inslee, Mr. Gordon, and their staff for the
collaborative effort that went into the final provisions establishing a
Clean Energy Deployment Administration. As a result of this effort,
America is going to have an independent----
The SPEAKER pro tempore (Mr. Pastor of Arizona). The time of the
gentleman has expired.
Mr. VAN HOLLEN. Well capitalized bank charged with the exclusive
mission of accelerating the deployment of clean energy.
The SPEAKER pro tempore. The time of the gentleman has expired.

{time}  1515

Mr. CAMP. Mr. Speaker, at this time, I yield 1 minute to a
distinguished member of the Ways and Means Committee, the gentlewoman
from Florida (Ms. Ginny Brown-Waite).
Ms. GINNY BROWN-WAITE of Florida. You know, this bill started out as
the cap-and-tax bill, then it became the clean energy bill because my
colleagues on the other side of the aisle realized it wasn't selling
anymore at home. It should really be called the Let's Send More Jobs to
China Act.
This bill is going to cost people in the State of Florida an
additional $500 on their utility bills, but let's look at the jobs that
are going to be lost. In my district alone, we will lose 2,100
manufacturing jobs, 3,200 construction jobs, and 1,900 retail and
wholesale jobs.
Personal income loss for Florida's Fifth District in 2012 will be
over $508 million. America cannot afford this at a time when our
economy is so fragile. Gasoline prices under this will rise
substantially. Electricity prices will rise up to 90 percent.
This is a bad bill. This is a bill that is going to cost Americans
not only more in their wallets but certainly jobs going elsewhere.
Mr. RANGEL. Mr. Speaker, I would like to recognize the gentleman from
Chicago, Illinois (Mr. Davis) for 1 minute.
Mr. DAVIS of Illinois. Mr. Speaker, I rise in strong support of H.R.
2454.
I want to commend Chairman Waxman, Chairman Rangel, Mr. Barton,
Chairman Peterson, Chairman Markey, Mr. Dingell, and all of those who
have worked so hard to reach compromises which help to make this
legislation possible. Especially do I want to commend Representative
Bobby Rush for his hard work to protect low-income consumers,
Representative Butterfield for making sure that Historically Black
Colleges and Universities and predominantly black institutions had an
opportunity to be involved in the research and job creation.
And I also want to thank Representatives Jan Schakowsky and Donna
Christensen for their hard work on environmental issues to help reduce
health disparities. It's a good bill, Mr. Speaker, and I urge all of my
colleagues to vote in favor of it.
Mr. CAMP. At this time, I yield 1 minute, Mr. Speaker, to a
distinguished gentleman from the Ways and Means Committee, Mr. Davis.
Mr. DAVIS of Kentucky. Mr. Speaker, this legislation will increase
utility bills, raise the price of a gallon of gas, push fuel prices and
food prices to new heights, and increase the cost of nearly every
consumer product. It is a national energy tax. Let's make that clear.
This will punish middle class families, farmers, the elderly, and small
businesses both in Kentucky and especially across the Nation.
America needs a comprehensive energy plan, not a national energy tax.
Local, State and Federal officials have stressed the need for policy to
create jobs. This cap-and-trade proposal will fail to do that when
America needs them most. We will lose jobs. Manufacturers will simply
move their plants to other countries with cheaper energy and lower
taxes, hurting American workers and the environment globally.
In the past 4\1/2\ years, I have watched House Democrats defeat every
meaningful proposal for energy independence and job creation that has
been proposed in this Chamber, and we have got to bring an end to that.
This bill is nothing more than the economic colonization of the
heartland by the coastal States like New York and California.
The one thing that I will tell you is it is not about energy. It is
about confiscation of wealth. Vote ``no'' to protect our children's
future.
Mr. RANGEL. At this time, I would like to inquire--I only have one
speaker, that would be me, to conclude, so I would like to see whether
the other side has more than one speaker.
Mr. CAMP. We have five speakers remaining.
Mr. RANGEL. I reserve the balance of my time.
Mr. CAMP. At this time, Mr. Speaker, I yield 1 minute to the
distinguished member of the Ways and Means Committee, the gentleman
from Texas (Mr. Brady).
Mr. BRADY of Texas. Mr. Speaker, I have two young children, so the
environment is very important to me, but I question the benefits of
this bill and strongly oppose its devastating cost.
This bill won't impact the natural cycle of the Earth's temperature.
It will cost Texas families dearly in bigger utility bills, higher
energy costs, and losing nearly 200,000 jobs, many of them in southeast
Texas in our energy refining, paper, steel, and ag industries. And with
China and India not likely to go along, this will have no environmental
benefits at all.
The protectionist trade measures added in secret at the 11th hour are
so rigid, they undermine our ability to reach an international
agreement on carbon emissions, which is the best way to protect
American jobs here. And they are written so poorly, it will be
difficult to defend the measure against trade challenges by our
competitors. And I should point out, that

[[Page H7642]]

WTO report referenced earlier today doesn't even deal with the border
measures that are under consideration in this bill.
Instead of rushing this 1,200-page bill through Congress with no time
to read it, a better solution is for both parties to get serious about
increasing cleaner-burning fuel, like nuclear and natural gas,
accelerating research.
That makes more sense, creates jobs and produces real environmental
results without the devastating cost to families and businesses from
cap and trade.
Mr. RANGEL. The gentleman from Ohio (Mr. Ryan), not a member of the
committee but an outstanding Member of this body, I would like to yield
1 minute to him.
Mr. RYAN of Ohio. I would like to thank the gentleman and thank the
chairman for this bill. You know, we hear a lot from the other side
about, if we pass this bill, all these jobs are going to go to China;
if we pass this bill, gas is going to go up higher.
The jobs already went to China. That's what this bill is all about.
Come to Youngstown, Ohio. See how many jobs have already gone to China.
This bill is about revitalizing manufacturing. And your energy policy
has already been implemented, and it gave us $4 a gallon gas here. And
we have a $700 billion transfer in wealth from this country to states
that want to fly planes into our building.
And this bill is about creating programs like the green bank that
will loan $750 billion to companies that want to create alternative
energy resources. This bill has in it $30 billion for auto suppliers,
medium and small auto suppliers, to refurbish and retool so that they
can sell their products into these windmill companies.
Everyone is talking about losing jobs. Come to my district. Parker-
Hannifin Corporation in Cleveland, they make the hydraulics that go
into windmills. Thomas Steel, they make the specialty steel that goes
into solar panels. When these businesses explode--Roth Brothers makes
an electrical system that goes into a wind cube that will sit on top of
the buildings. In Youngstown, Ohio, in Akron, Ohio, there will be jobs
because this bill passes. We need to nudge this industry and unleash
the creative power.
Mr. CAMP. Madam Speaker, I yield 1 minute to a distinguished member
of the Ways and Means Committee, the gentleman from Louisiana.
Mr. BOUSTANY. I thank our ranking member.
This bill is a unilateral blueprint for economic disarmament of the
United States, let's be clear. Responsible energy production in the
Gulf of Mexico is the backbone of American energy security and it
creates good, high-paying jobs. This bill, their bill, dramatically
increases taxes and will kill American jobs.
Now, I have repeatedly questioned Secretary Geithner about the job
loss that's going to be caused by new taxes on American energy
producers. I have asked the administration to prove its claim of saving
jobs, and they can't do it.
And no one can define what a green job is and how these displaced
workers will transition to one. Secretary Geithner says, ``The
administration believes that oil and gas preferences distort markets by
encouraging more investment in the oil and gas industry that would
occur under a neutral system.''
Again, he goes on to say, ``To the extent the credit encourages
overproduction of oil, it is detrimental to long-term energy
security.'' Who in this country believes we have enough American-made
energy?
If we want to move towards cleaner energy and renewable energy, as
this bill purports to do, it's clear we need a transition strategy that
involves natural gas. It must be part of that. This administration must
stop its attack on American business and American independent oil and
gas producers if we are going to make this a reality.
The American public deserves a comprehensive energy plan that creates
jobs, spurs innovation, and unleashes American genius. That's how we
will solve this problem.
Mr. CAMP. I yield 1 minute to a distinguished member of the Ways and
Means Committee, the gentleman from Nevada (Mr. Heller).
Mr. HELLER. Thank you. I appreciate the Member for yielding.
Here is the bill again. I think we have seen this a couple of times.
Here is the bill. It is 1,201 pages. What does this cost the American
taxpayer? It is $700 million a page for this bill. What does this bill
do? Every time you flip on your light switch, you are taxed. Every time
you drive your kids to school, you are taxed. Every time you cook your
family dinner, you are taxed. Air travel, food prices, electricity
costs, gas prices, transportation cost, all will skyrocket under this
bill.
This bill will cost my district a half billion dollars in economic
activity. It will cost my district 5,500 jobs. It will cost my district
nearly 650 million in personal income loss in just the first year.
Nevada, as a whole, will lose 14,000 jobs. Mining, housing, farming,
ranching, tourism industries will be devastated at a time when Nevadans
are hurting. The majority can't afford the time for hearings or debate,
but Americans can't afford this bill.
Mr. CAMP. Madam Speaker, at this time, I yield 1 minute to a
distinguished member of the Ways and Means Committee, the gentleman
from Illinois (Mr. Roskam).
Ms. ROSKAM. I thank the gentleman for yielding.
You know what's happening in suburban Chicago is there are businesses
who are really in a touch-and-go position right now. They are treading
water. They are barely keeping their heads above the surface of the
water. And what they expect from this Congress is for us to come along
and literally throw them a lifeline. But you know what this bill is?
This bill is a bowling ball. It comes along, it says, Hey, there you
go. Hit that with a thud right on your chest. Deal with it, because we
are debating ideology today.
My district says let's do the right thing, let's do the
transformational thing, but let's not give our markets over to the
Chinese, where they have clearly said they are not in this game. Let's
not give our markets over to the Indians where they say they are not in
this game. Let's not put an additional $3,100 tax on a family of four.
Let's offer a lifeline to the American public. Let's pull the plug on
this bill.
Mr. CAMP. At this time, Madam Speaker, I have one speaker remaining.
The SPEAKER pro tempore (Mrs. Tauscher). The gentleman has 1 minute
remaining.
Mr. CAMP. At this time, I yield 1 minute to the distinguished
gentleman from the Ways and Means Committee, the gentleman from
California (Mr. Nunes).
Mr. NUNES. Madam Speaker, don't be deceived by the comments of the
Democratic Party. This bill is a tax increase. This bill is the largest
tax increase in American history.
I ask my Democratic friends, Is this really what you have come to? Do
you want to throw away the economic prosperity for nothing, because
that's what this bill does. And for what, to satisfy the twisted
desires of radical environmentalists.
I would ask my colleagues one more question. How will you force
China, India, and anyone else to accept this economic suicide pact? The
dirty little secret is that you can't.
While you congratulate each other today, I remind my colleagues the
State of California is out of water. We have communities with 40
percent unemployment. And in the meantime, Democrats bring up fairy-
tale legislation to the floor, phantom green job legislation.
However, we agree on one thing. We should try to reduce our carbon
emissions. Republicans have a plan, an all-the-above plan where we
drill for American resources, we drill for oil in America. We take the
revenue and we put it into solar, wind, nuclear technologies. That's a
real plan, Madam Speaker. This bill is a scam.
Mr. RANGEL. I would like to yield to Mr. Fattah of Pennsylvania for
the purpose of a unanimous consent request.
(Mr. FATTAH asked and was given permission to revise and extend his
remarks.)
Mr. FATTAH. I thank the gentleman for yielding.
Madam Speaker, I rise for a unanimous consent in support of this very
important bill on behalf of my four children and for millions of young
Americans who we hope never to see another die on a foreign battlefield
trying to get oil from some other place in

[[Page H7643]]

the world. We need independence in our energy.
Mr. RANGEL. Madam Speaker, I would just like to conclude, this is a
very historic moment in our Nation's life where we have an opportunity
to provide leadership to the whole world to prevent the continuation of
the global warming. I wish it had been more positive from the other
side that they would have had some contribution to make in order to
make certain that our Nation maintains the leadership that it has.
I would like to yield the balance of my time to Chairman Waxman of
the Energy and Commerce Committee, with your kind permission.
The SPEAKER pro tempore. The gentleman from California is recognized
for 2\1/2\ minutes.

{time}  1530

Mr. WAXMAN. At this point I'd like to yield 1 minute for the purpose
of a colloquy to the gentleman from Florida (Mr. Grayson).
Mr. GRAYSON. I rise to enter into a colloquy with the chairman of the
Energy and Commerce Committee, Mr. Waxman.
My attention today is to draw attention to the need for further
research and work concerning the effect of ongoing changes in climate
and on the frequency and intensity and effects of hurricanes.
As you know, damages from hurricanes--in terms of human lives,
infrastructure, and property--have grown in scope and cost; and it is
critical that we continue to make progress in furthering our
understanding of the science behind hurricanes. Doing so will
ultimately help vulnerable communities in my district, in Florida, and
elsewhere in the United States prepare for and reduce the impacts from
hurricanes.
I ask that a portion of the allowance value in H.R. 2454 be directed
towards research on hurricanes at a new $50 million National Hurricane
Research Center in my district in Orlando. The National Hurricane
Research Center in Orlando will be a worldwide center of expertise in
the 21st-century science of meteorology.
In a world already affected by global warming, it will help to
develop both short-range and long-range hurricane forecasting, conduct
practical research on mitigation of hurricane damage, disseminate to
the public realtime information on hurricanes----
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman 1 additional minute.
Mr. GRAYSON. Advise policymakers and the public, and expand knowledge
on what can and should be done to impact the frequency, course, and
human and property consequences of hurricanes.
Mr. WAXMAN. I share the gentleman's concern about the need for
research on hurricane intensity and frequency and effects. The harm
from hurricanes is only going to increase with global warming, and we
need to better understand the connections and impacts.
H.R. 2454 includes domestic adaptation provisions giving States
substantial resources to study and adapt to climate change. Based on
our estimates, the bill will provide up to $1 billion per year from
2012, when the program starts, through 2021. From 2022 through 2026,
the amount will be over $2 billion annually.
Research on hurricanes is explicitly listed as an authorized use of
these revenues. The project the gentleman mentions is among the type of
activity that would be eligible to received funding under these
provisions.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
Mr. GRAYSON. Mr. Chairman, I understand that H.R. 2454 includes
provisions directing allowance value towards State adaptation. I hope
that we will be able to work together as this bill moves forward to
make certain that hurricane research receives full funding and that we
are able to ensure that the work of the National Hurricane Research
Center will be supported.
Mr. WAXMAN. The gentleman has discussed this project with me, and I
think it's a very worthwhile project. I look forward to working on it
and making it a priority as the legislative process moves on.
Mr. GRAYSON. I thank the chairman for his support of our efforts to
ensure that our hurricane research efforts are adequately supported.
Mr. BARTON of Texas. Can I inquire how much time we have on the last
part of the debate?
The SPEAKER pro tempore. The gentleman from Texas has 30\3/4\ minutes
remaining. The gentleman from California has 28\1/2\ minutes remaining.
Mr. BARTON of Texas. Well, I want to compliment Chairman Waxman on
apparently getting another vote--of Congressman Grayson--at the cost of
4,100 jobs in Congressman Grayson's district in the year 2012.
With that, I want to yield 1 minute to a distinguished member of the
committee, the gentleman from Kentucky (Mr. Whitfield.)
Mr. WHITFIELD. Mr. Speaker, I rise to speak in opposition to the
bill. This legislation is not so much about stopping the import of
foreign oil as it is designed to change the way we produce electricity
in America.
Today, 52 percent of all electricity produced is produced with coal,
and this bill will require the use of permits to burn coal. In my State
of Kentucky, the utilities believe--and they have looked at this
closely--that in order to comply with this legislation, they will have
to spend an additional $500 million.
As we look around the country, we see that only about eight States
will really benefit in the sense that their electricity rates will not
go up. The problem with this is that as you increase the cost to
produce electricity, that makes the United States less competitive in
the global marketplace, because when companies decide where they're
going to locate and build new plants, they look at cost of production,
and one big cost is electricity.
And so those of us who oppose it do so genuinely because we believe
that at a time when we are in an economic recession, we should not be
jeopardizing more jobs.
Mr. WAXMAN. I'm pleased at this time to yield 1 minute to the
gentlewoman from Illinois (Mrs. Halvorson).
Mrs. HALVORSON. Mr. Speaker, I thank the gentleman for yielding.
Chairman Waxman, I'm pleased, as I know you are, with the work of the
Energy and Commerce and Agriculture Committee and what we have done to
address the concerns of agriculture producers and forest landowners in
this historic bill.
I would like to clarify provisions in this bill regarding section
795, Exchange for Early Action Offset Credits, and section 740,
Requirement of Early Offset Supply. These provisions attempt to fairly
compensate farmers and others who have been enrolled in voluntary
offset programs since 2001.
I have noted the legislative goal of providing equity and fairness to
those early actors and believe that further clarity would improve the
understanding of those who are eligible under the requirements in
section 740. Therefore, to remove the possibility of uncertainty of
economic harm to the holders of potential credits under section 740 and
those that would be compensated under section 795, it is my
understanding that registries like the Chicago Climate Exchange and
their partners should qualify in all respects to the provisions----
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. WAXMAN. I yield the gentlewoman an additional 30 seconds.
Mrs. HALVORSON. Provisions in section 740(a)(2). I believe this is in
the spirit and intention of the legislation. Is that the chairman's
understanding?
Mr. WAXMAN. The gentlewoman is correct that the provisions of section
795 and 740 are intended to fairly compensate farmers and their
partners who have enrolled in voluntary programs and have taken early
action to reduce carbon pollution.
All existing voluntary offset programs with strong standards for
environmental integrity would meet the requirements of section 740. We
expect that offset credits registered with the Chicago Climate
Exchange, along with the credits from other recognized voluntary
programs, will provide an important source of offset credits in the
early years of the program.
Mr. BARTON of Texas. I planted some trees on my grandfather's farm 30
years ago. I hope that that qualifies under that section of the bill.

[[Page H7644]]

I want to yield 2 minutes to the distinguished member of the
committee, the gentleman from Arizona (Mr. Shadegg).
Mr. SHADEGG. I thank the gentleman for yielding. Passing this bill at
this time will be a tragic error. It simply cannot be justified on a
cost-benefit analysis. Every day we make decisions in our lives by
balancing the costs of our decisions with the benefits of those
decisions; and on that basis, this bill can't be justified.
As a Republican who crossed my leadership on many major-profile
bills, I urge my colleagues on the other side who are being pressured
and all my colleagues who have doubts to carefully think through this
vote. Crossing your leadership is not fun or easy, but sometimes its
the right thing to do. I know. I've done it.
First, while we have been told that the science on this issue is
settled, it clearly is not and is becoming less and less settled every
day. Carbon dioxide emissions in the United States have gone up every
year since 2001, but global temperatures have remained flat.
Carbon dioxide emissions are going up; global temperatures have been
flat since 2001. They have stopped going up almost a decade ago.
More and more scientists are coming forward every day casting doubt
on the alleged consensus that greenhouse gases are causing global
warming.
Joanne Simpson, the first woman in America to receive a
meteorological Ph.D., expressed relief upon her retirement last year,
saying she could now speak freely about her nonbelief. Dr. Kiminori
Itoh, a Japanese environmental physical chemist, recently said--and he
contributed to the U.N. climate report--he called man-made warming the
worst scientific scandal in history.
Second, even if you assume that man-made greenhouse gases and carbon
dioxide are causing global warming, this bill can't be justified
because it doubles the cost of reducing carbon dioxide emissions.
Witnesses testified before our committee that they can control
CO<inf>2</inf>, but that the cost of doing so under this bill would be
twice as much. And why is that? It's because they have to pay first to
buy carbon credits and then they have to spend the capital to improve
their plants.
Mr. BARTON of Texas. I yield the gentleman 15 seconds.
MR. SHADEGG. Those costs get passed on to American consumers. Why
should we double those costs? My colleagues on the other side want the
revenue of the carbon credits that have to be purchased. That money
ought to go into the capital cost of reducing carbon emissions, but
that money won't do one bit for that cause.
I urge my colleagues to vote against this dangerous bill.
Mr. WAXMAN. Mr. Speaker, I'm pleased at this time to yield 1 minute
for the purpose of a colloquy to the distinguished chairman of the
Agriculture Committee, the gentleman from Minnesota (Mr. Peterson).
Mr. PETERSON. I want to thank Chairman Waxman for his leadership and
cooperation on this bill and would ask him to engage in a colloquy
regarding subtitle E of title III, which contains a host of provisions
amending the Commodity Exchange Act.
Mr. WAXMAN. I'd be pleased to do so.
Mr. PETERSON. These provisions are among those that triggered the
referral of H.R. 2454 to the Agriculture Committee, which has
jurisdiction over the CEA. Some of these provisions would deal with
over-the-counter energy derivatives and credit default swaps, mirror
provisions in legislation, H.R. 977, passed by our committee in
February. Other provisions are similar, and still others are wholly
different. H.R. 977 is awaiting action in the Financial Services
Committee.
As the gentleman knows the Financial Services and Agriculture
Committees will be working on financial regulation reform, part of
which will include derivatives regulation reform. As such, Chairman
Frank and I initially resisted the inclusion of these CEA amendments in
H.R. 2454. However, we understand that some Members feel strongly about
sending a signal to address potential excessive speculation in
derivative markets and rein in some of the current trading practices on
Wall Street.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield the gentleman an additional 30 seconds.
Mr. PETERSON. To that end, we agreed not to object to the inclusion
of the CEA amendment subject to the understanding that the ultimate
resolution of these provisions would take place in the context of
financial regulation reform legislation. I want to confirm this
understanding we have among the chairmen.
Mr. WAXMAN. The gentleman has correctly described our understanding.
Mr. PETERSON. I want to thank the distinguished chairman for his
confirmation, and I look forward to working with him on this bill as it
moves through the legislative process.
Mr. BARTON of Texas. I yield myself 15 seconds to explain what they
just said. What they just said was, Mr. Speaker, is that you have got
something in the bill that we don't agree with, but we're going to let
you put it in the bill with the understanding we will take it out later
on in Agriculture and Financial Services. I commend the Agriculture
chairman for his strong resistance to that part of the bill.
I want to yield 2 minutes to a distinguished member of the committee,
the ranking member of the Oversight and Investigation Subcommittee, the
gentleman from Oregon (Mr. Walden).
Mr. WALDEN. I want to talk about a couple of things here involving
this bill: process, cost, and language.
This is the 309 pages that were printed at 1:34 in the morning and
submitted to the Rules Committee sometime around 2:49 this morning.
Nobody--it's impossible--I can't imagine anybody's read this.
I've just discovered they change the hydro language so that--it used
to say before 1992 it counted, now they have gone back 4 years.
Somewhere in the middle of the night we have added 4 years of hydro as
renewable. It's page after page after page of technical changes that
have major, major impact.
There were nine committees this bill was referred to, and yet only
one of them was allowed to have a markup on the bill, the Energy and
Commerce Committee. The other eight waived. So a lot of this got put
together in the dark of night, backroom deals, whatever you want to
say, private conversations; but no committees held a hearing on this
new bill, 309 pages, amending the 1,201 that are sitting there on the
desk.
Costs. Look at fuel costs: $811 more for Oregonians in 2012. If
you're a PacifiCorp customer in Oregon, you can expect in 2012 to pay
17.7 percent higher electricity costs. They have run the numbers
according to the bill.
You want to talk about a massive new welfare program for energy? It's
in here too. In fact, this energy tax refund, in effect, this proposed
energy stamp bill, 16 times the current U.S. welfare program, the TANF
program. Sixteen times. It's a whole new welfare program for energy.

{time}  1545

If energy costs aren't going up on the rest of us, why do they have
to have this? Because it does drive up energy costs. That's going to
hurt small businesspeople. It's going to hurt families. It's going to
cost jobs. And we don't know for sure what else it does because I can't
imagine anybody on this floor has read every word of this bill that was
filed at 2:49 a.m. in the Rules Committee and been able to juxtapose
what's here against the 1,201 pages.
I urge a ``no'' vote on this bill.
Mr. WAXMAN. Madam Speaker, I am pleased at this time to yield 1
minute to the very distinguished Representative from the State of Iowa
(Mr. Boswell).
(Mr. BOSWELL asked and was given permission to revise and extend his
remarks.)
Mr. BOSWELL. I will say, with some reservation, that I support H.R.
2454, the American Clean Energy and Security Act. I am pleased with the
deal between Chairman Peterson and Chairman Waxman to protect America's
farmers and ensure many of agriculture's concerns were resolved. They
both should be commended for their hard work. This bill makes
tremendous progress on jobs, energy, national security and the
environment. However, one troubling issue remains. A formula

[[Page H7645]]

partially based on retail sales means consumers in coal-reliant States,
like Iowa and the Midwest, who need the most help will see greater rate
increases than consumers in other parts of the country.
When Iowa's unemployment rate is at its highest in over 20 years,
Iowans are struggling to repay student loans, pay rent, and put food on
the table, why are we asking those of us in the heartland to shoulder
more of the burden than others? This is neither fair nor equitable
because it creates winners and losers.
I am not giving up. This bill is worth supporting; but it is my hope
that when the House addresses this legislation again, the allocation
formula will be more equitable for Iowans and Midwesterners alike.
I rise today with some reservation to support for H.R. 2454, the
American Clean Energy and Security Act. I am proud that this
legislation preempts potentially devastating regulation by the EPA, and
responds to our constituents' demands to prevent that from happening. I
am also proud that it would harness the most innovative workforce in
the world to create a clean energy future, creating millions of jobs in
the process. Energy independence is vital to our national security and
economic future, and this legislation advances this goal while
confronting the serious challenge of climate change.
However, when we started this process I had a list of many things
which concerned me and needed to be addressed, such as fixing the
indirect land use issues under the Renewable Fuel Standard-2, a robust
agricultural offset provision which recognized early adaptors and was
exclusively operated by USDA to implement and oversee the agriculture
and forestry offset program, and the 50-50 allocation formula. I was
pleased with the deal that was struck between Chairman Peterson and
Chairman Waxman to ensure many of those issues were resolved. They both
should be commended for their hard work.
However, one key concern has yet to be addressed. As currently
written, this legislation provides local distribution companies with
allowances through a formula equally weighted between historic
emissions and retail sales. Since the intent of the legislation is to
reduce emissions, and the intent of providing allowances is to protect
consumers from price increases, basing allowances on retail sales
reduces the legislation's effectiveness. While certain providers will
receive enough allowances to offset 100 percent of the cost of
compliance, many companies throughout the Midwest will be forced to
purchase numerous allowances, passing those prices on to their
consumers. Consumers in coal-reliant states such as Iowa--who need the
most help--will see far greater rate increases than consumers in other
parts of the country.
This doesn't have to happen. Congressman Loebsack and I offered an
amendment to change the formula so that allowances will be distributed
based solely on historic emissions. I am gravely disappointed that the
Rules Committee did not make this amendment in order.
Under the amendment I had hoped to offer on the floor today, a
utility would receive emission allowances based only on its emitting
assets, like coal and natural gas-fired plants. It would not receive
emission allowances for non-emitting nuclear and hydro assets, because
they don't need them.
As such, there will not be enough allowances for higher-emitting
electric utilities in the Midwest that need them to comply with H.R.
2454. This makes the bill very different from the Clean Air Act, which
distributed sulfur dioxide emission allowances only to utilities that
actually had sulfur dioxide emissions to reduce.
Under the current formula, utilities in my area will only receive 65
percent of compliance costs at most, and less than 50 percent in some
areas--the shortfall will cost hundreds of millions of dollars. When
you compare this to other regions of the country they will receive 100
percent of the needed allocations. Because of this inequity consumers
in the Midwest will have to make up the difference; their rates will go
up far more than consumers in other areas. This is neither fair nor
equitable, because it creates winners and losers.
The retail sales component of the formula benefits companies like FPL
and Exelon with heavy nuclear or hydro assets, because they will
receive emission allowances for assets that don't emit.
They don't need these windfall allowances to comply with the bill's
cap, so they can sell them in a carbon trading market for a profit.
If you don't believe that, just read a June 10th Bernstein Research
analysis, in which Exelon's CEO, John Rowe, predicted that H.R. 2454
``will add $700 to $750 million to Exelon's annual revenues.''
In these tough economic times when Iowa's unemployment rate is at its
highest in over 20 years, when Iowan's are struggling to repay student
loans, pay rent, and put food on the table, why are we asking those of
us in the heartland to shoulder more of the burden than others?
I would also like to take a moment to talk about another amendment I
tried to offer. My amendment would have provided a government backed
loan guarantee for the construction of a renewable fuel pipeline.
Transporting fuels by rail and truck has higher energy input
requirements and much higher greenhouse gas emissions. CO<inf>2</inf>
emissions are reduced by 30 percent when comparing liquid fuel
transported by pipelines vs. railcars and 87 percent when comparing
pipelines to trucks.
Even though my amendment to bring equity to the formula was not ruled
in order I am not giving up. I plan to work with my colleagues in the
other body to bring this serious issue to light and to work towards a
solution that works for Iowa families. It is my hope that when the
House addresses this legislation again the allocation formula will be
more equitable for Iowan's and Midwesterners alike.
Mr. BARTON of Texas. Madam Speaker, I yield 3 minutes to the ranking
member of the Energy and Air Quality Subcommittee, Mr. Upton of
Michigan.
Mr. UPTON. Madam Speaker, there's an old saying, ``Will the last one
out please turn out the lights.'' Well, this bill turns out the lights
for many Americans. And no matter what you say, this bill does not have
the job protections that will prevent jobs from leaving our country and
going to India or China. What do you tell that small refinery that came
to our committee a couple of weeks ago, a small refinery that's got
1,200 jobs--that it's going to cost $150 million to ramp up the changes
that they're going to have to do, and they're going to end up going out
of business? That asphalt and that petroleum is going to be made
someplace else--India.
What do you tell that small company that I visited last month in
Niles, Michigan, a company that figures out that their energy costs are
going to increase by perhaps as much as $20,000 dollars a month? Well,
they're thinking about it. They want to stay in business. They're
thinking about telling the folks not to come to work anymore during the
day so they can do the night shift, and they can maybe pay lower
utility rates. There are more coal-fired plants in China than there are
in the United States, India and Britain combined; and it's going to
double by the year 2030. Emissions in China are going to grow by 86
percent.
What does this bill do about emissions in China or India? It does
nothing. Environmental restrictions in this country, protections, are
the reason why steel, per ton, has one-third the emissions in this
country than in China. We want those jobs to stay in this country and
not go to China. Michigan, my State, we're already at 15 percent
unemployment and headed maybe towards 20. We were told earlier this
week that we're going to have as many as 100,000 people, unemployed
folks, lose their benefits that they're receiving today because those
benefits are going to be exhausted. I didn't come up with the figure
that gasoline costs were going to increase by 77 cents a gallon because
of this legislation or that diesel prices were going up 88 cents a
gallon. It wasn't me. It was the CBO who said that. I hope and pray
that they're wrong because I want to protect our workers here to make
sure that we can grow jobs, not lose them.
Consumers Energy came up with a study, a major utility in my part of
the State, that shows that the estimate of the impact, including
certain requirements in this bill, are going to grow as much as 38
percent by the year 2024. Some folks say that it's only going to cost a
postage stamp. Well, I'm glad I bought a lot of promise stamps because
these stamps are good for life. If they're not worth 44 cents, these
may be worth thousands of dollars apiece based on what these costs are
going to do to the average consumer.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. UPTON. Let me just close. We as Members of Congress may have to
declare these in our financial disclosure reports if we bought more
than 10 of them.
Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentlelady from
Texas (Ms. Jackson-Lee).
Ms. JACKSON-LEE of Texas. I thank the gentleman very much. As he

[[Page H7646]]

knows, we've been working on this because I come from an area that
certainly has vested in the energy industry with a number of jobs that
are tied, huge numbers of jobs.
To my constituents, we are working on your behalf today. This bill
does not discount your jobs or your commitment to this Nation because
1.7 million jobs will be created, $750 per household will occur in
savings and $29 billion in consumer savings will occur.
Also, I appreciate the chairman for working with me to ensure that we
are investing in small business, guaranteeing that minority- and women-
owned businesses will be involved in energy-innovative competition,
language and amendments that I got into this legislation.
In addition, we are still working on the question of whether or not
our older homes will be impacted negatively. The language in the bill
says new construction only. I want to continue to work with the
chairman to ensure that we will also have additional protection for
older homes. Jobs--we are going to protect jobs.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. WAXMAN. I yield the gentlelady 30 additional seconds.
Ms. JACKSON-LEE of Texas. There is language in the bill that I wish
my friends would read because we insist that the Secretary of Labor
shall monitor the potential growth of affected and displaced workers,
if any, and continue to have the funding that I got in the bill to
ensure that they're not left out in the cold. Mr. Chairman, in spite of
the good work, there are those who are saying that our breakthroughs in
alternative low-carbon technologies will not be fast enough, that we're
going to lose petroleum jobs, we're going to lose jobs. I believe we
can work through this and we will not lose jobs but gain jobs because
of the new technology. However there is still time to work on this
issue of the large and small refineries so that can be efficient and
operational. Also manufacturing under this bill will only be efficient
not extinguished.
I would like to yield to the chairman.
Mr. WAXMAN. I say to you that they are wrong. This bill is going to
produce breakthroughs. It pushes the development of new technology, and
it's going to lead to more jobs.
Ms. JACKSON-LEE of Texas. Will you continue to work with me?
Mr. WAXMAN. I look forward to working with you. You have played an
important role and made enormous contributions to this legislation. I
thank the gentlelady.
Mr. BARTON of Texas. Could I inquire as to the time remaining on both
sides, Madam Speaker?
The SPEAKER pro tempore. The gentleman from Texas has 22\1/4\ minutes
remaining. The gentleman from California has 23 minutes remaining.
Mr. BARTON of Texas. I yield 1 minute to a member of the committee
from Denton, Texas, or actually Flower Mound, Texas, Dr. Burgess.
Mr. BURGESS. I thank the chairman for yielding.
Madam Speaker, last night I offered an amendment that would prohibit
the transfer of or receipt of carbon and credit derivatives. And why is
that important? Well, this bill will ensure a price for carbon, and
it's going to ensure a market for trading carbon credits. This is a
breeding ground for financial malfeasance. We are aware that if
something has a price, Wall Street will find a way to create a
financial instrument to option, swap or hedge and create fees for
trading those instruments and drive value from the price of the
underlying asset. The current financial crisis has heightened our
awareness of the use of derivatives. Here is the problem: None of us
can visualize a ton of carbon dioxide, yet that's what we're going to
be buying and selling in these credits. Where would you put a ton of
carbon dioxide? What kind of container would it come in? In fact, we've
had multiple hearings in our committee about problems with the futures
market in trading oil. But at least someone eventually has to take
possession of that oil. No one has to take possession of that chunk of
blue sky that we are going to call a ton of carbon dioxide. My
amendment would have stopped the invention of carbon credit derivatives
before it starts. It would have stopped the next Enron before it
starts. Unfortunately my attempt to prohibit this activity was denied.
I can only ask why.
Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from New
Jersey (Mr. Holt) for the purpose of a colloquy.
Mr. HOLT. Madam Speaker, I thank the Chair.
Energy, climate and environment are principal subjects that I have
spoken about and worked on for decades, before and since I first came
to Congress and to work on these issues, I believe, is a principal
reason my constituents sent me to Congress. I admire the chairman's
skill in assembling a bill, and I fully support the chairman's efforts
to reduce the release of greenhouse gases. However, I'm deeply
concerned that the bill does not include the research funding necessary
to reach the target of 80 percent emission reduction set in the bill.
We must transform the way we produce and use energy. We cannot meet
this goal with today's technologies; and this bill, as written, will
not provide the billions of dollars needed to fund and develop the
future technologies.
So I'm here to ask the chairman of the committee if I may have his
assurance that he will work with me to increase the amount of research
and development funding in this bill and other legislation that we need
in order to reduce our reliance on foreign fuels and to slow the rate
of growth of climate change.
Mr. WAXMAN. I thank the gentleman for his comments. There is much in
this bill to promote research and to bring about the necessary
innovation.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield myself another 10 seconds.
However, I agree that we will need billions more in research and
development funding into new innovative ways to produce and use energy.
I pledge to work with you to provide additional funding for energy
research and development in this bill as this bill moves forward.
Mr. BARTON of Texas. I yield for a unanimous consent request to a
member of the committee, Mr. Buyer of Indiana.
(Mr. BUYER asked and was given permission to revise and extend his
remarks.)
Mr. BUYER. Madam Speaker, I rise in opposition to this legislation.
I rise in defense of the Midwest and the State of Indiana to oppose
this carbon cap and tax bill. This is the most economically disastrous
energy policy our nation has ever considered. It's over 1200 pages and
full of last minute changes! This is not the way, or the time, to
consider a rushed policy that will devastate our economy. The American
people deserve more from their Representatives than a bill of empty
promises that will send their jobs overseas, raise the cost of living,
and increase our dependence on energy from foreign countries.
Over the past few years, I have participated in multiple hearings
concerning carbon dioxide emission control. During the mark-up of H.R.
2454 by the Energy and Commerce Committee, I, along with my colleagues,
continued to raise concerns about this policy's negative effects on
American ratepayers, businesses and industry. Importantly, we offered
many amendments in the mark-up we would like to consider on the Floor
today, but we have been denied the opportunity. We would have added
nuclear energy--the cleanest and most efficient energy generation--but
were denied. Other amendments would have offered off-ramps should this
legislation prove too costly to the American people. Unfortunately, no
significant changes providing off-ramps or safety-valves have been
offered to the American people, and our concerns have not been
addressed.
H.R. 2454 would hand down the single biggest energy tax in the
history of our country. Now is not the time! The unemployment rate is
at the highest we have seen in over 25 years. Our automotive industry
is just beginning new business plans. This week we are selling off more
of our national debt to foreign countries, and next month we are
considering a national healthcare plan projected to cost $3.4 trillion!
It is not the time to pass a policy that will result in an annual
additional cost of $1,241 more in energy costs for a family of four. It
is not the time to pass a policy that will drive up the price of goods
and services, or export our hard-earned jobs to countries like China.
This legislation will kill jobs. Let's talk numbers. An estimated
1,145,000 will be lost under cap and trade. There is a whole section
dedicated to unemployment with a price tag to the taxpayer of over a
billion dollars! Farmers

[[Page H7647]]

will also suffer. This act would lower farm profits by 28: percent in
2012 alone, and 57 percent from 2012-2035. Projections show this would
result in total gross domestic product losses averaging $383 billion
annually from 2012-2035 and cost our country a total of $9.4 trillion
dollars. Where will that money come from?
Well, under this proposal, the Midwest, for one. This cap and tax
bill unfairly targets the heartland of our nation. Indiana is the sixth
highest carbon dioxide emitting state in the nation. As a state reliant
on coal for 96 percent of its electricity, Indiana would be unfairly
burdened by the current legislative proposal for producing American-
made goods with American-made energy. What kind of energy policy is
that? Under the current language, permits are allocated to utilities
using a basis of 50 percent of their emissions and 50 percent of their
retail sales--providing utilities without emissions access to
allowances. Sending allowances to those that do not require them does
not benefit the people or states that need them most. I offered an
amendment in Rules to correct this bad policy. My amendment would have
modified the utility allocation formula to being strictly based on 100%
of a utility's emissions. It is common sense: the utilities reliant on
the costlier fuel should be the ones receiving the help. We shouldn't
be handing out allowances to those who do not need them! Under the
current formula, utilities of similar size in California would get 2.43
times the allowances of an Indiana utility--and a Washington utility
would receive 8.84 times the allowances of a utility in Indiana! That
is not acceptable! Under the current bill, our rates will rise by a
projected 90 percent by 2035, driving our manufacturing jobs elsewhere
and the costs of goods sky high. The State of Indiana has worked hard
over the past several years to bring new jobs and industries to
Hoosiers. This bill could undo all the progress we have made.
Unfortunately, my amendment was denied by the Rules Committee.
I call upon my colleagues to see this is not the time for this bill.
An energy tax anticipated to slow temperature increases by merely
hundredths of a single degree Fahrenheit by 2050 is not good policy. I
strongly urge Members to protect the economic well-being of the
American people and vote no on this bill.
Mr. BARTON of Texas. Madam Speaker, I yield 2 minutes to the
distinguished ranking member of the climate change committee and the
former chairman of both the Judiciary and the Science Committees, Mr.
Sensenbrenner of Wisconsin.
(Mr. SENSENBRENNER asked and was given permission to revise and
extend his remarks.)
Mr. SENSENBRENNER. Madam Speaker, this bill is not only everything
that the opponents have said it is, but it is also a massive transfer
of wealth from the United States to foreign countries. And the reason
it is that is because this bill legalizes offsets. Over 40 percent of
the offsets that have been created under the Kyoto Protocol have come
from China. The $2.2 trillion that will be transferred through purchase
of offsets in foreign countries will be the largest nonmilitary foreign
aid bill that this House of Representatives has ever passed.
The chart that is beside me here shows that the $2.2 trillion in
foreign giveaways is equal to 210 times the amount of money we give to
help people with domestic heating oil and propane; 119 times the amount
of money we give for making buildings more efficient; 111 times the
money we give for clean vehicle technology; 33 times the money that we
give for domestic natural gas consumers; 11 times the amount that we
give for the domestic industrial sector; and five times the amount that
we give to help out our domestic electric consumers.
Madam Speaker, this money should be spent at home. We have enough
problems at home that we have to deal with, and I think the Congress
has recognized this today. But let's not send more money overseas,
money that will come through higher prices at the pump, higher bills
from our utilities, higher food prices when we buy them in the
supermarket.
Vote this bill down, and keep the money at home.
Mr. WAXMAN. Madam Speaker, at this time I yield 2 minutes to the
gentleman from Massachusetts, Chairman Frank, for purposes of a
colloquy.

{time}  1600

The SPEAKER pro tempore. The gentleman from Massachusetts (Mr. Frank)
is recognized for 2 minutes.
Mr. FRANK of Massachusetts. Madam Speaker, I yield to the gentleman
from New York (Mr. McMahon).
Mr. McMAHON. Thank you, Chairman Frank.
Madam Speaker, I rise today to thank Chairman Frank, Chairman Waxman,
Chairman Markey and Chairman Peterson for agreeing to include in this
good piece of legislation the manager's amendment language that makes
clear that the sections of this bill that relate to the regulation of
energy commodity derivatives shall be superseded by future
Congressional financial regulatory reform if it comes forward.
Specifically, the manager's amendment would add section 358 that
renders ``null and void'' the sections of the American Clean Energy and
Security Act dealing with energy commodity derivatives, as well as all
related agency regulations, after Congress adopts future derivative
reform legislation.
I and many of my colleagues in the New Democratic Coalition have
expressed concerns about many of the provisions included in subtitles D
and E of this bill. The energy bill is not the place to set regulatory
policy over our financial services industry.
In coordination with the New Dems Financial Services Task Force, I'm
in the process of crafting a bill that will take some of the best ideas
of the President and the Congress to forge a consensus that protects
American jobs and financial innovation. And while I and many of my
colleagues would have liked to strike altogether much of the
derivatives language from this bill, we understand the need to move
this process forward and section 358 will allow us to provide a clean
slate when we take up comprehensive reform this year.
Despite the mess at AIG, the over-the-counter derivative market helps
companies manage risks and create jobs. We also live in an age of a
truly global economy. And if we don't get this right, many of our
financial sector jobs, particularly in New York, will just disappear or
be shipped offshore.
Again, Madam Speaker, I thank our chairmen for the inclusion of
section 358 in the manager's amendment. I and the New Dems look forward
to working with you and having future discussions with the Senate and
the White House.
Mr. FRANK of Massachusetts. Madam Speaker, I will take back my time.
You now have the answer, listening to the gentleman address myself, Mr.
Waxman, Mr. Markey and Mr. Peterson, to that age-old question of how
many chairmen does it take to answer a colloquy?
I ask the gentleman from Massachusetts for 1 additional minute to
finish the response to the colloquy.
Mr. MARKEY. I yield further.
Mr. FRANK of Massachusetts. And I want to say that the gentleman from
New York has been a very articulate advocate for the very important
functions of the financial community in New York in which many of the
people in his district live, and he is very well informed about it. We
agree with him, myself and members of the Financial Services Committee
and the Agriculture Committee. Chairman Peterson, the gentleman from
Minnesota, and I have worked with the gentleman from Massachusetts (Mr.
Markey) and the gentleman from California (Mr. Waxman). And we have the
agreement he alluded to.
We are hard at work on a comprehensive, and I believe responsible,
proposal for regulation of financial derivatives in their entirety. And
it will, under the terms of this bill, become the operative word. So
what we have here is a placeholder to tell Members we are aware of it.
Earlier today, Chairman Gensler of the CFTC and Chairwoman Shapiro,
in case we didn't have enough chair people in this, met with Mr.
Peterson and myself. I am optimistic that we will have a proposal that
responsibly, appropriately and toughly regulates derivatives without
doing them harm. The gentleman is to be congratulated for making sure
that that will be what will be in the bill.
Mr. McMAHON. Thank you, Chairman Frank, and to all the chairmen for
your strong leadership in crafting this important piece of legislation
and reaching out to form this consensus.
With that, I urge my colleagues to support H.R. 2454.

[[Page H7648]]

Parliamentary Inquiry

Mr. GOHMERT. I have a parliamentary inquiry.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.
Mr. GOHMERT. Madam Speaker, in order to find out what we are doing,
how much damage we are doing to the country, I tried to get a copy of
the bill. We have out here on the table H.R. 2454 that has 1,090 pages
in it. But I understood since debate in here that there are another 300
pages that were added in the middle of the night.
My inquiry is how do I get a copy of the other 300 pages that people
here on the floor haven't had a chance to read or see? Where do we get
that before we slam this and cram this down on the American people?
The SPEAKER pro tempore. The amendment is printed in the Rules
Committee report.
Mr. GOHMERT. In the Rules Committee report. And Madam Speaker, where
would I get that report?
The SPEAKER pro tempore. The rule was passed earlier today.
Mr. GOHMERT. Rules passed it earlier today?
The SPEAKER pro tempore. The rule was passed earlier today.
Mr. GOHMERT. That says basically we are going to the floor without
everybody being able to get a copy in the Speaker's Lobby as is
normally required?
The SPEAKER pro tempore. The gentleman is not asking a parliamentary
inquiry.
Mr. GOHMERT. Well, I'm asking an inquiry because I really want to
know. Normally, the rules require we have access to a copy of the bill
so we can look at it.
The SPEAKER pro tempore. The amendment was included in the Rules
Committee report.
Mr. GOHMERT. My inquiry is, where is it? There is one copy in the
Rules Committee? Is that the answer?
The SPEAKER pro tempore. It was part of the Rules Committee report
that was part of the rule that was passed earlier today.
Mr. GOHMERT. It was part of the rule passed earlier today. But where
is a physical copy I can get, read and look at?
The SPEAKER pro tempore. The Chair is not responsible for
dissemination of documents.
Mr. GOHMERT. The Chair is not responsible for disseminating copies. I
appreciate that. I was just asking for where I can get a copy. I know
that your hands are full. And congratulations on the position. I think
the President did a great thing. But I'm still needing a copy of the
other 300 mysterious pages that we don't get to see here.

Parliamentary Inquiry

Mr. BARTON of Texas. Madam Speaker, I'm going to ask a parliamentary
inquiry.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.
Mr. BARTON of Texas. Is there somewhere physically in the House of
Representatives a copy of what we are voting on?
The SPEAKER pro tempore. The engrossing paper is at the desk. As to
copies, the gentleman has not stated a parliamentary inquiry that the
Chair can answer.
Mr. BARTON of Texas. All right. Let me digest that, Madam Speaker.
In the meantime, I want to yield 1 minute to the distinguished
Congressman from California (Mr. McClintock) 1 minute.
Mr. McCLINTOCK. I thank the gentleman for yielding.
Madam Speaker, when we talk about Herbert Hoover's mishandling of the
recession of 1929, the very first thing that economists point to is the
Smoot-Hawley Tariff Act that imposed new taxes on over 20,000 imported
products.
I believe the Waxman-Markey bill is going to be looked back upon as
our generation's Smoot-Hawley Act. In fact, it is worse. It imposes new
taxes on an infinitely larger number of domestic products on a scale
that utterly dwarfs Smoot-Hawley. At least Hoover could argue that
Smoot-Hawley made domestic products more competitive with imports.
Waxman-Markey disadvantages American products.
When California adopted similar carbon restrictions 3 years ago, we
too were promised an explosion of green jobs. Instead, California's
unemployment rate has skyrocketed to one of the highest in the country.
I believe that if this bill becomes law, history guarantees us two
things. Number one, the planet will continue to warm and to cool as it
has been doing for billions of years; and two, Congress will have just
delivered a staggering blow to our Nation's economy just at the time
when it is most vulnerable.
Mr. MARKEY. We would like to reserve at this time.

Parliamentary Inquiry

Mr. BARTON of Texas. I have another parliamentary inquiry.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.
Mr. BARTON of Texas. Is there a rule of the House that requires a
copy of the pending legislation to be present in or near the body?
The SPEAKER pro tempore. The official papers are at the desk. The
Chair is not aware of a rule concerning additional copies.
Mr. BARTON of Texas. So there is no such rule?
The SPEAKER pro tempore. The Chair is not aware of one.
Mr. BARTON of Texas. I appreciate that honest answer.
I want to yield 1 minute to the gentleman from Pennsylvania (Mr.
Dent).
Mr. DENT. Madam Speaker, I rise in strong opposition to this national
energy tax. This bill is all cost and no benefit. And I want to read
some excerpts from a letter that was sent to me from the Pennsylvania
Public Utility Commission:
``This policy will have a profound adverse impact on the Commonwealth
of Pennsylvania. If the Waxman-Markey bill were to pass, Pennsylvania
is looking at a bleak scenario, a net loss of as many as 66,000 jobs, a
sizeable hike in the electric bills of residential customers, an
increase in natural gas prices, and significant downward pressure on
our gross State product.''
``The cost estimates are staggering.''
``Congress has a responsibility to ensure that legislation enacted on
this important topic is in the best interests of every State and region
in the United States.''
``Residents of Pennsylvania will be severely and disproportionately
harmed. It will be impossible to rapidly or immediately stop using
power generated at existing coal-fired or natural gas-fired power
plants without causing severe and protracted reliability problems.''
``Is Pennsylvania ready to acquiesce behind Federal legislation that
will choke off our economy by displacing thousands of jobs and
increasing utility bills for residential taxpayers? We hope not.''
That is the Pennsylvania PUC. I say, save jobs. Save money. Vote
``no.''
Mr. MARKEY. The Chair recognizes the gentleman from Rhode Island (Mr.
Langevin) for 1 minute.
(Mr. LANGEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LANGEVIN. I thank the gentleman for yielding.
Madam Speaker, I rise today in strong support of the American Clean
Energy and Security Act. I thank our leaders who made this bill a
priority, especially Chairman Waxman and the gentleman from
Massachusetts (Mr. Markey) who worked tirelessly to bring this bill to
the floor today.
I have long been an advocate for reducing harmful carbon emissions
and investing in a clean-energy economy. The effects of climate change
are already beginning, and we must act now not only for this generation
but for generations yet to come. By increasing the renewable energy
standard, capping carbon emissions and investing in the creation of
domestic clean-energy jobs, this bill is directing our Nation towards a
sustainable and economically viable energy future.
This bill also establishes five programs to protect consumers from
energy price increases. I want to say that again. It establishes
programs to protect consumers from energy price increases.
I urge my colleagues to vote ``yes'' on the American Clean Energy and
Security Act. It is time for America once again to lead on sustainable
energy.

Parliamentary Inquiry

Mr. BARTON of Texas. I have one more parliamentary inquiry.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.

[[Page H7649]]

Mr. BARTON of Texas. If a bill for which there is no copy were to
actually pass this body, could the bill without a copy be sent to the
Senate for its consideration, having no copy?
The SPEAKER pro tempore. The official copy will be at the desk. The
Chair cannot comment about extra copies.
Mr. BARTON of Texas. The official copy will be at the desk. Could I
inquire as to when that copy will be at the desk? Is it necessary that
the official copy be at the desk in order for final passage to occur?
The SPEAKER pro tempore. The official copy is always at the desk
during consideration of the bill.
Mr. BARTON of Texas. Then where is it, Madam Speaker?
The SPEAKER pro tempore. At the desk.
Mr. BARTON of Texas. Is it now at the desk? Is it now--I appreciate
the Congressman who brought it in. Oh, that is not it. That is not at
the desk.
Well, while we research whether the official copy is at the desk, I'm
going to yield 1 minute to the gentlelady from Oklahoma, Congresswoman
Fallin, for 1 minute.
Ms. FALLIN. Madam Speaker, I have to say that I am outraged. Here we
are getting ready to vote on a piece of legislation, and we haven't
even seen 300 pieces of this legislation. No one can even find the bill
or even knows where it is at. And here we are talking about major
policy that could change the face of America, that will certainly be a
large tax increase to our taxpayers. And here we don't even know where
the bill is. I'm just shocked at the way we are running this House
today before we leave to go on our Independence Day holiday.
And I will say that the government's first priority right now should
be addressing our economy and jobs. And economists can tell you that
one of the surest ways to prolong a recession and to damage an economy
is to raise taxes. My friends on the other side of the aisle apparently
didn't get that memo.
This plan for carbon emissions taxes amounts to a $646 billion tax
increase on the American public. It will have a negative effect upon
every American family, upon business and upon family farms. Family
energy costs will increase. In fact, it is said that utility costs can
go up anywhere from 30 to 50 percent, not to even mention what cost
increases will be upon manufacturing.
So Madam Speaker, I will just tell you that I hope we get a copy of
the bill so we can at least look at it before we enact this policy.
Mr. MARKEY. I continue to reserve.
Mr. BARTON of Texas. Madam Speaker, I'm going to ask unanimous
consent for a brief recess to find the official copy that includes
everything passed at the Rules Committee last night, because I am told
that what is at the desk is missing 300 pages. That cannot be the
official copy.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
Mr. MARKEY. I would object, but ask the gentleman to yield to me if
he would.
Mr. BARTON of Texas. Why don't you reserve the right to object?
Mr. MARKEY. I reserve the right to object.
Mr. BARTON of Texas. I will be happy to yield to my friend from
Massachusetts on his reservation.
Mr. MARKEY. The manager's amendment, which I think is what is of
concern to him, is on the Rules Committee Web site that can be accessed
right now, and has been there and available for any Member or any
citizen of the United States to be able to read. It is on the Web site.
Mr. BARTON of Texas. Do Members have access to the Web site on the
floor of the House?
Mr. MARKEY. In the Cloakroom there is access to it. We have these
similar technological capacities in our cloak room, yes.
Mr. BARTON of Texas. In the Cloakroom, but not on the floor.
Mr. MARKEY. It is also available at the desk.

{time}  1615

Mr. BARTON of Texas. Reclaiming my time on the gentleman's
reservation on my unanimous consent request, what is at the desk for
any Member of this body who is engaged in the debate is not apparently
the official copy. It is missing 300 pages. Now what is on the Web site
is almost immaterial because it is unprecedented in this gentleman's
history in the Congress to not have some, usually at least two copies
that both sides can access during the debate on the floor.
I am just asking for a 15-minute recess to get an actual copy that we
can access.
I yield to the gentleman on his reservation.
Mr. MARKEY of Massachusetts. I continue to reserve my right to
objection, there is a copy up there on the Speaker's podium at the
desk.
Mr. BARTON of Texas. It is missing 300 pages.
Mr. MARKEY of Massachusetts. It is not missing the 300 pages. They
are all up there. Everything you are looking for is up there next to
the Speaker, and it is available on the Rules Committee Web site for
anyone and everyone to have access to. But it is sitting right up
there. The 300 pages are right up there.
Mr. BARTON of Texas. I am going to ask a unanimous consent request to
give me a minute to go down and look at that and see if it is actually
1,300 pages.
Mr. MARKEY of Massachusetts. I would have to object at this time
because the actual document is sitting there right now, and has been
sitting there, as it has been on the Web site for the entirety of this
debate.
Mr. BARTON of Texas. So the gentleman does object?
Mr. MARKEY of Massachusetts. I do object, yes.

Parliamentary Inquiry

Mr. GOHMERT. Parliamentary inquiry.
The SPEAKER pro tempore. The gentleman from Texas will state his
parliamentary inquiry.
Mr. GOHMERT. My parliamentary inquiry, I was just at the dais and the
clerks, as always, were immensely helpful. But apparently the official
copy of the 1,090 pages are there, and then the additional 300 pages
are sitting beside it, and the Clerk is having to go through and is in
the process as we speak of going through and figuring out where the
extra 300 pages that has been added goes in the official copy. So even
as I speak, Madam Speaker, the official copy is not truly an official
copy because it doesn't have all of the amendments in it.
And since the rule says there is an official copy at the desk, my
inquiry is whether it is truly an official copy if it, as yet, does not
have all of the pages in the official copy.
The SPEAKER pro tempore. The Clerk is currently executing the order
of the House in House Resolution 587.
Mr. GOHMERT. Right, to put the extra pages into the official copy.
But is it required that it actually be a full official copy put
together before you satisfy the requirement of having an official copy
at the desk?
The SPEAKER pro tempore. The two components of the official copy are
there together, so it is, in effect, the official copy.
Mr. GOHMERT. So the two together in two different piles that are
being worked out together is the official copy. I appreciate the
explanation.
Mr. BARTON of Texas. I am parliamentary inquiried out, Madam Speaker,
so I am going to yield 1 minute to the chairman of the Republican Study
Committee, Mr. Price from Georgia.
Mr. PRICE of Georgia. Madam Speaker, this would be humorous if it
weren't so doggone sad.
This national energy tax bill will impose a massive tax that even the
President's own aides have admitted would cost $2 trillion to
taxpayers.
The President himself boasted about the enormous cost saying, ``under
my plan of cap-and-trade system, electricity rates would necessarily
skyrocket.''
Indeed, this plan would increase taxes on American families by $3,100
and raise their energy bill by $1,500 a year. This national energy tax
will force many businesses to outsource jobs overseas or close their
doors altogether, which will cost over a million jobs annually.
Amazingly, it will have little or no impact on the environment. Many
experts believe the environment will be adversely affected since many
companies will be forced overseas where emission and environmental
standards are minimal or nonexistent.
Hundreds of groups such as the NFIB, the U.S. Chamber, and the
National Association of Manufacturers oppose this

[[Page H7650]]

legislation. Tax and government watchdog groups, including the National
Taxpayer Union, Americans for Tax Reform, and Citizens Against
Government Waste, oppose this legislation.
This bill is bad for the environment and bad for the American people.
Just vote ``no.''
Mr. MARKEY of Massachusetts. I continue to reserve.
Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to the gentleman
from California (Mr. Bilbray).
Mr. BILBRAY. Madam Speaker, as someone who has spent a decade
regulating air pollution, I look at this bill, of what I can read of it
that is presented, and come to the conclusion that the greatest threat
to the environment seems to be all of the smoke coming out of the
backroom deals that appear to have been made to put this package
together.
People may talk about the aspects of clean coal. Clean coal is as
logical as safe cigarettes, and that is trying to be sold in this
document.
I have to say, in all fairness, what I see here is a huge tax scheme
that doesn't fulfill the mandates that the U.N. Convention on Climate
Change set as a minimum. In fact, it not only does not fulfill the need
of the environment; it does it 5 years late and short. So it is late
and short on this task.
Madam Speaker, we have seen legislation come over this floor before.
Twenty years ago this body approved a snake oil called ethanol and
methanol and MTBE, and today, we still don't have the bravery to admit
the mistake and correct it with this bill. We continue the past
mistakes. The difference between the mistake we did with methanol and
ethanol is the fact that it will take 150 years to correct the mistake
that Congress is about ready to do if we pass this piece of
legislation.
I look forward to having to spend the next 100 years having to try to
correct this mistake.
Mr. MARKEY of Massachusetts. I continue to reserve.

Parliamentary Inquiry

Mr. SHADEGG. Madam Speaker, parliamentary inquiry.
The SPEAKER pro tempore. The gentleman from Arizona will state his
parliamentary inquiry.
Mr. SHADEGG. I simply want to clarify the points that the gentleman
from Texas (Mr. Gohmert) was making before and make sure I understand
this.
This is the printed version of the bill which apparently went to
Rules last night. As I understand it, these are the 304 pages that make
up the manager's amendment. And together, as I understand the Chair's
ruling, this constitutes the official copy; is that correct?
The SPEAKER pro tempore. The Clerk is currently integrating the pages
of the amendments with the original copy of the bill. It is available
for Members to see. It is right where it is meant to be, and yes, it is
the official version.
Mr. SHADEGG. Further parliamentary inquiry.
The SPEAKER pro tempore. The gentleman may state his parliamentary
inquiry.
Mr. SHADEGG. Each of these pages, as I understand it, could change a
page in this matter, and so the Clerk is presently trying to meld these
together. So you can't read this without also reading this, and this
modifies any given page in this; is that correct?
The SPEAKER pro tempore. The Clerk is executing the order of the
House according to its terms.
Mr. SHADEGG. I thank the Speaker.
Mr. BARTON of Texas. Madam Speaker, I want to yield 1 minute to the
gentleman from Missouri (Mr. Akin).
Mr. AKIN. Madam Speaker, I am the ranking member of the Armed
Services Subcommittee on Seapower. We have talked a lot about climate
change and global things and taxes, but my concern is very specific
with this bill.
I have had a chance to tour the huge shipyards where the steel frames
go up and the nuclear reactors go into the ships of our mighty Navy,
and every single step of the way, there is energy involved in making
the steel, in making the aluminum for the aircraft, heavy, heavy uses
of energy in welding the steel together.
If this bill passes, it is a major threat to heavy industry because
it increases the cost of energy. When we increase the cost of ships and
planes, we are going to be able to buy less because we are not going to
have enough money in the defense budget to be able to buy as many, and
in that regard we become more vulnerable as a Nation.
This bill, while it has not been talked about in this regard, is a
serious threat to our industrial base and, therefore, a threat to the
security of our Nation.
Mr. MARKEY of Massachusetts. I continue to reserve.
Mr. BARTON of Texas. Madam Speaker, I have been so confused by all of
the parliamentary inquiries, I have lost track of time. How much time
remains?
The SPEAKER pro tempore. The gentleman from Texas has 13\1/2\ minutes
remaining. The gentleman from California has 17\3/4\ remaining.
Mr. BARTON of Texas. I yield 1 minute to the gentleman from Lubbock,
Texas (Mr. Neugebauer).
Mr. NEUGEBAUER. Madam Speaker, one of the sayings we have in Texas
is, when someone is pretending to be a cowboy, we say that fella is all
hat and no cattle.
A lot of people have come down here today to try to represent that
this is an energy bill. Well, let me tell you, it is not an energy
bill; it is all tax and no energy.
Some of the people were talking about the fact that we are going to
make America more energy independent. We are not. This bill does not
make America more energy independent.
Every day we get up and write other countries a check for nearly a
billion dollars, $900 million. Now, what we get to do with this new
bill is we get to send $15 billion in 2012 to countries so they can
plant trees and give us credits. Now doesn't that make a lot of sense?
What this bill is, and I think the title is appropriate, cap-and-
trade. It is going to cap energy production in America and trade away
American jobs. I think the American people are kind of concerned about
jobs right now. We have families that are losing their jobs and we have
families that are trying to pay their utility costs and trying to
afford their gasoline, and yet we have got a bill down here that
evidently is all talk and no bill. Don't vote for this bill.
Mr. WAXMAN. Madam Speaker, I continue to reserve my time.
Mr. BARTON of Texas. Madam Speaker, I'm going to reserve my time
because they have got more time than we've got.
Mr. WAXMAN. Madam Speaker, I'm pleased at this time to yield 1 minute
to the gentlelady from Maryland (Ms. Edwards).
Ms. EDWARDS of Maryland. Madam Speaker, I rise today in strong favor
and support of the American Clean Energy and Security Act of 2009. I am
going to tell you, I was a reluctant comer, but I really commend
Chairman Markey and Chairman Waxman on their leadership and dedication
to this bill. This is a big step toward ensuring that our children live
in a cleaner and better environment and that we preserve and protect
our planet for future generations.
The Earth is warming and glaciers are melting, and some may question
the science, but I am not one of them. By the time a child born today,
in 2009, reaches first grade, we will reach peak carbon. And without a
doubt, we must use every tool attainable to respond to this crisis.
This bill is one of those tools, and perhaps our strongest yet. It is
my hope as we continue forward we will increase our investment in
renewables, that we will ensure that we preserve and protect our planet
and reverse the warming of our Earth.
I want to again thank the chairman. And despite my concerns, I
support this bill strongly. I urge my colleagues to join me. And the
statements made earlier today questioning global warming underscores
the importance of this legislation today.
Mr. TAYLOR. Madam Speaker, I ask unanimous consent to express my
opposition to this bill and for permission to insert a statement in the
Record.
Mr. TAYLOR. Madam Speaker, I rise in opposition to this bill.
One of the provisions of this bill would create a cap and trade
system throughout the United States in an effort to reduce the
production of global warming gases. This system would limit the amount
global warming gases emitted through regulation of ``allowances'' to
each company. If a company released more

[[Page H7651]]

gases than their ``allowances'' permitted the company would be taxed by
the federal government.
The system also would establish an ``allowance'' market that would
permit companies to buy and sell ``allowances.'' The same speculators
who manipulated oil futures last year, pushing gasoline prices over $4
per gallon will be trading in the cap and trade market, trying to
figure out how to game the system at the expense of consumers and
taxpayers.
I do not believe a cap and trade system is the approach that is best
to reduce global warming gases. As a matter of fact I think it is a
simple ``Ponzi Scheme'' that will increase energy prices. According to
the Congressional Budget Office it will create a complex financial
system that allows risky investment in the energy market increasing the
cost of living per household by $1600 per year. Additionally, I don't
like the idea that a factory in one state is cleaner than it has to be
so that another factory is dirtier than it should be. This could
potentially leave Mississippi with the cancer causing agents and other
states with the credit.
Madam Speaker, I'll be brief.
This is a bad deal for South Mississippi and my nation. I hope that
we will defeat this bill.

{time}  1630

Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to another great
Californian, Mr. Royce.
Mr. ROYCE. Madam Speaker, I don't know where this ends. This cap-and-
trade bill would give Washington 17 percent control of the economy.
Nationalizing health care, which is next on the majority agenda here,
would give it another 16 percent. The Federal Government right now runs
General Motors. The government has a huge equity stake in many of our
financial institutions. This Congress is relentlessly politicizing our
economy. It has got to stop.
And this bill is an expensive job killer that won't achieve its
objectives, and I will just give an example--and that's what's left out
of the bill. The bill does nothing to encourage nuclear power plant
construction, a sure job creator, a source of clean energy. The
Department of Energy reports that the best way for utilities to reduce
carbon emissions is nuclear energy, yet nothing here in this bill.
This bill is a bureaucrat's dream, the scheme that we see before us.
It gives the EPA, the DOE, the IRS, and many other bureaucracies levers
over our energy markets. Some in Congress will have these bureaucrats
in their cross-hairs aiming to game the system as this massively
complex plan is implemented.
I oppose this bill.
Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from
Kansas (Mr. Moore).
Mr. MOORE of Kansas. Madam Speaker, I commend Chairmen Waxman and
Markey for crafting this historic energy legislation that will help our
country make the transition to a new clean-energy economy.
I urge Members to vote in support of the underlying bill. Americans
are demanding bold policies that will push our country in a new
direction on energy and ensure a clean, secure energy future for
America.
This legislation is a positive step forward, but I urge Chairman
Waxman's leadership to go even further to strengthen the renewable
electricity standard during the conference committee.
A strong standard would mean more jobs in the United States and a
larger share of domestic and clean energy. Our children and
grandchildren are watching. If we don't take this step for them today
to leave them with a world that is healthy and more secure, when will
we? As a proud grandfather of nine, I urge my colleagues to vote in
favor of this legislation.
Mr. BARTON of Texas. Madam Speaker, I reserve at this point.
Mr. WAXMAN. Madam Speaker, I yield 1 minute to the gentleman from the
State of Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Madam Speaker, Chairman Waxman, I appreciate your
courtesy as I appreciate your leadership.
It's strange that the debate boils down to our friends from the
minority party being unable to access the Web site of the Rules
Committee to print out the rule that has been available to any Member
of the House. And I understand some of them were waving it earlier in
the day talking about provisions that they didn't like. But I guess we
shouldn't be surprised because this is the same leadership that
continually misrepresents the MIT study, citing $3,000 of costs that
has been refuted by the author of that report and asks the Republican
leadership to stop misrepresenting his handiwork.
The CBO and the EPA have given estimates that are pennies a day, not
thousands of dollars a year. And we're not talking about the long-term
benefits of transitioning to an economy of the future.
I appreciate the leadership. On a recent trip to China with the
Speaker, we saw the Chinese moving ahead. This legislation is an
opportunity for us to keep pace and assume our rightful leadership
within an economy for the future.
Mr. WAXMAN. Madam Speaker, I reserve the balance of my time.
The SPEAKER pro tempore. The gentleman from Texas has 10\1/4\ minutes
remaining. The gentleman from California has 16 minutes remaining.
Mr. BARTON of Texas. I yield 1 minute to Mr. Poe of Texas.
Mr. POE of Texas. Madam Speaker, I appreciate the gentleman for
yielding.
I represent southeast Texas, the energy capital of the United States.
Twenty percent of the refineries in this country that help all these
folks all over the fruited plain with energy, I represent them.
This week alone, we've had 86 people call and say, Vote for this
bill. We've had 1,578 people in my district call and say vote ``no'' on
this bill, almost 20 times the number of yes votes.
I'm an advocate for those people in southeast Texas. They believe, as
I believe, we're going to close up America's energy with this bill. The
CBO and the EPA says there's not going to be much difference in the
climate if we pass this deal. Bummer. It's not even going to work.
And it's more important to realize this bill is about control,
government control of our lives, our businesses, and everything we do.
Washington, D.C. is going to dictate how we live and how we shall live
and how our businesses will live. And it's all bad because D.C. is in
control and not the people. This is a bad bill. Vote ``no.''
And that's just the way it is.
Mr. WAXMAN. Madam Speaker, I am pleased to yield at this time 1
minute to the gentleman from Colorado (Mr. Perlmutter), who has made
many important contributions to this effort.
Mr. PERLMUTTER. Thank you, Chairman Waxman.
I rise in support of the Clean Energy Act here. And I want to read
the first sentence of a letter we received today from the National
Association of Realtors. The National Association of Realtors supports
H.R. 2998 (2454) the American Clean Energy and Security Act, which
addresses a broad and global array of issues.
In closing, the National Association of Realtors ask for the
favorable passage of this, as do Duke Energy, American Electric Power,
BP Amoco, GE, and the American Institute of Architects.
This bill is designed to help us with national security, the climate,
and jobs. My friend, Mr. Poe, from Texas says, Just vote no. Well,
that's the party of the status quo. Just vote no, we like the status
quo.
It is time for a change, ladies and gentlemen. We can't afford the
status quo, and this bill brings us in that change and a new direction.
Mr. BARTON of Texas. Madam Speaker, I yield 1 minute to Mr. Gohmert
of Texas.
Mr. GOHMERT. Madam Speaker, you know, I've been trying to get through
what I could of this bill and then finding out, well, actually, it's
another bill. And then you have to incorporate all these other pages
into it because I'd like to know what we're doing to the American
people.
We've had people say we're playing politics on this side. If we
wanted to play politics, because we know in our hearts this is bad for
America, we would let you pass it and let you lose your jobs. But I've
grown kind of fond of some of my friends on the other side; I'd like to
keep you around.
But let me tell you, those who say there won't be any job loss, we're
going to create jobs, let me just read you some of the things that are
in your bill. The climate change adjustment allowance: when you lose
your job, for any week of unemployment you are going to get some
unemployment assistance after that. That's in there.

[[Page H7652]]

You've got some relocation allowance. But the coup de grace is that if
you're an older American and you lose your job because of this, we fund
a study in here.
So I would encourage my colleagues, if you lose your job because of
this bill, you probably are going to be able to get assistance because
you lost your job because of this bill. Don't vote for it.
Mr. WAXMAN. Madam Speaker, at this time, I want to yield to my good
friend, a leader in environmental areas and many others as well, the
gentleman from Texas, Mr. Doggett.
Mr. DOGGETT. I thank the gentleman.
Earlier today, I voiced my strong objections to this bill. I voted
against the rule to permit this bill because of its rejection of some
amendments that I thought were important to improve the legislation.
For three reasons, I'm voting for final passage. First, I've been
listening to the debate, not so much those who support the bill that
I'm not all that enthusiastic about, but listening to the ``flat earth
society,'' the climate denials, some of the most inane arguments that I
have heard against refusing to act on this vital national security
challenge.
Second, I believe there is still some hope to make improvements to
this bill once it gets out of the House. Better to have a seat at the
table to try to influence the change that is needed in this
legislation.
And, third, I'm convinced that unless we act today, the Senate will
not act. And unless we act in this Congress, we will not get the
international agreements we need to address this serious challenge.
I am voting ``yes'' in the hopes that we will have a better bill and
we will have the international accord that we so desperately need to
deal with this critical matter.
Mr. WAXMAN. Madam Speaker, at this time, I have an additional
colleague who wants to address this issue before we close. I am very
pleased to recognize her for 1 minute because she is a good friend and
a very important Member of the House of Representatives, a colleague
from California, Barbara Lee.
Ms. LEE of California. I want to thank the Chair for yielding and
also for your leadership. You and Mr. Markey, everyone has done a
phenomenal job on this bill.
I rise today in support of H.R. 2454, which really does send a clear
and unequivocal message that polluting our planet, our communities, and
our livelihood no longer comes without a cost. This bill will create
millions of high-paying, career-term green jobs that represent a much-
needed pathway out of poverty for millions of individuals across this
country, and I am pleased to see the inclusion of much-needed funding
for the Green Jobs Act.
I must also be clear in saying that in America we should do more to
address the climate crisis than provided for in this bill, but this is
an unbelievable first start.
I believe we can produce more renewable electricity and achieve more
aggressive emission reductions over time. I also recognize that passing
the American Clean Energy and Security Act is a major, major bold
critical first step toward achieving our goal of realizing a greener
future.
As a person of faith, and as a long-time advocate for safeguarding
our environment for future generations, Mr. Chairman, Madam Speaker, I
think it's our moral and our ethical imperative and our responsibility
to support this bill.
Mr. WAXMAN. Madam Speaker, we reserve the right to close on the
debate, so I will now look to the other side to complete their
statements.
Mr. PRICE of Georgia. Madam Speaker, unanimous consent request.
The SPEAKER pro tempore. The gentleman will state his request.
Mr. PRICE of Georgia. Madam Speaker, it's been estimated, with great
accuracy, that between 2.3 million and 2.7 million jobs will be lost
each year with this bill. I would ask unanimous consent that the House
rise for a moment of silence to recognize those who will lose their
jobs because of this bill.
Mr. WAXMAN. I reserve the right to object.
The SPEAKER pro tempore. The gentleman from California reserves the
right to object.
Mr. WAXMAN. I object.
The SPEAKER pro tempore. The gentleman has objected.
Mr. PRICE of Georgia. I thank the Speaker.
Mr. BARTON of Texas. I yield 3 minutes to the distinguished
Republican Conference chairman, Mr. Pence of Indiana.
(Mr. PENCE asked and was given permission to revise and extend his
remarks.)
Mr. PENCE. I thank the gentleman for yielding.
It's hard to know where to start. I've got to think, Madam Speaker, a
lot of people who are looking in on this debate and hearing about
copies filed, esoteric process really don't care very much about all
that because this economy is hurting. American families are struggling
under the weight of the worst recession in a generation. Families in my
district are losing their jobs, small businesses and family farms are
struggling, and all they've seen out of Washington, D.C. so far is a
gusher of runaway Federal spending, deficits, debt and bailouts. They
didn't think it could get worse, but here we go.
In the midst of the worst recession in a generation, this
administration and this majority in Congress are prepared to pass a
national energy tax that will raise the cost of energy on every
American family. Now, my colleague sporting the green lapel button, who
I greatly respect, said that there is a lot of dispute about how much
the average American household will pay if this national energy tax
becomes law, and that's true. There are estimates ranging from a few
hundred dollars a year, to the Heritage Foundation's over $4,000 a
year. The estimate I prefer was from candidate Barack Obama, who said
in January 2008 to the San Francisco Chronicle, and I shall quote with
the deepest respect: ``Under my plan of cap-and-trade system,
electricity rates would necessarily skyrocket. That will cost money.
They''--referring to the utility companies--``They will pass that money
on to consumers.'' Now-President Barack Obama.
Now, I know earlier this week the President of the United States said
that polluters are going to pay the cost of this national energy tax.
That's not what he said last year. Now, I don't know how you all define
``skyrocket'' when the President said electricity rates would
necessarily ``skyrocket under my cap-and-trade plan,'' but I would be
prepared to defer to you.

{time}  1645

I define ``skyrocket'' as a prescription for economic decline. There
may be a dispute in the numbers about how much I'll be paying in my
electrical bill or how much the costs of goods and services are going
to go up. But there is no dispute that this cap-and-trade legislation
will cost millions of American jobs. Raising the cost of energy is a
bad idea in prosperous times. Raising a national energy tax in the
worst recession in a generation is a profoundly bad idea.
But for anyone looking in, Madam Speaker, let me say, we are in the
minority, as we have been reminded with some firmness on this debate on
occasion today. We don't have the votes to stop this bill. But you do.
If you oppose the national energy tax, call your Congressman right
now. If you think we can do better to serve the interests of the
American people and achieve energy independence with an all-of-the-
above strategy, call your congressman right now.
Alexander Hamilton said it best: ``Here, sir, the people govern.''
We can stop this bill. We can do better. And so we must.

Parliamentary Inquiry

Mr. BARTON of Texas. Madam Speaker, I have one more parliamentary
inquiry.
The SPEAKER pro tempore. The gentleman will state his parliamentary
inquiry.
Mr. BARTON of Texas. Under the rules that we operate on, the
leadership on both sides, each is allowed 1 minute to speak at any
time. Will that time come out of this debate, or does that time come
out of the debate on the Forbes amendment?
The SPEAKER pro tempore. It depends on what part of the debate they
are yielded to.
Mr. BARTON of Texas. I'm sorry?
The SPEAKER pro tempore. It depends on what part of the debate they
are yielded to.

[[Page H7653]]

Mr. BARTON of Texas. Would Mr. Waxman yield for a question, then?
I'm trying to figure out if I need to reserve 1 minute for Mr.
Boehner to speak now or if the Speaker and the majority leader are
going to speak later and not in this part of the debate.
Mr. WAXMAN. Will the gentleman yield?
Mr. BARTON of Texas. I would be happy to yield.
Mr. WAXMAN. We're ready to conclude the general debate. We will then
move on to the amendment, and in the course of the discussion of the
amendment in the nature of a substitute, our leadership plans to speak,
and they will close the debate for our side as we move to vote on that
amendment and then passage on the bill.
Mr. BARTON of Texas. Then I will yield myself the balance of my time,
Madam Speaker.
The SPEAKER pro tempore. The gentleman from Texas has 5\1/4\ minutes
remaining.
(Mr. BARTON of Texas asked and was given permission to revise and
extend his remarks.)
Mr. BARTON of Texas. Madam Speaker, before I begin I want to
compliment you on your speakership of this debate. As always, you've
been gracious and temperate and fair, and we wish you the very best in
your new position at the Department of State.
As the country western song goes, Madam Speaker, I've got a long way
to go and a short time to get there. So I'm trying to get through in
the next 5 minutes the major issues on the debate before us.
I want to first start with the so-called compromise the chairman of
the Agriculture Committee and the chairman of the Energy and Commerce
Committee have worked out. As we have seen during the debate by the
number of colloquies, the compromise is a work in process. I've seen it
amended and referred and rebutted several times on the majority side.
But if you will look to my far left on this chart, in the base text
of the bill, there is a provision that gives the Administrator of the
EPA the right at any time, at any time, to designate any man-made gas
as a greenhouse gas subject to the regulations of this bill. As far as
I can tell, that paragraph trumps everything that Chairman Peterson has
attempted to negotiate with Chairman Waxman.
The second thing that I want to point out is the basic math of their
allowance system simply doesn't work. The transportation sector today
is responsible for 35 percent of the greenhouse gas emissions in the
United States, 35 percent. If you count the good work that Mr. Dingell
did and the good work that Mr. Green did on the majority side in
getting allowances for the transportation sector, they get a grand
total of 4 percent, 4 percent. Well 4 from 35 is 31 percent. When you
get down to 2050, you have to reduce CO<inf>2</inf> emissions by 83
percent, which only leaves 17 percent of total emissions from the
baseline year. You've got to cut the transportation sector in half. And
if you assume that we're not going to develop some sort of a giant
rubberband for general aviation, you can't put an electric battery or a
nuclear reactor in an airplane. General aviation is going to have to
use fossil fuel. You simply can't get to that 83 percent reduction from
the 2005 baseline with the math in their bill. It is a physical
impossibility.
The third point: The science is not there to back it up. There is an
EPA report that has been suppressed, that was never made a part of the
record, that we are trying to get as we speak that raises grave doubts
about the endangerment finding. Now, if you don't have an endangerment
finding, you don't need this bill. We don't need this bill. And for
some reason, the EPA saw fit not to include that in making the
decision. We have e-mails that show that the director of the subcabinet
agency within the EPA said the decision has been made the report is not
helpful. It's not only not helpful; it's harmful. So the science isn't
there.
The next point: No matter how you cut it, costs are going up. Just
basic math. Just basic math. In Iowa the CEO of the utility that
provides most of the electricity for Iowa says in Iowa alone, costs are
going to go up $110 a month per residential customer. That's $1,200 a
year. Gasoline prices are going to go up somewhere between 40 to 70
cents a gallon. If you take a midpoint of, say, 50 cents a gallon and
assume that the husband and wife work outside the home and they each
drive a thousand miles a month, you're going to have a gasoline price
increase per family in America of about $800. That is $2,000 a year per
family in 2012. It's not a postage stamp.
Now, there are estimates as high as $6,000 a year, but as a baseline
let's start with $2,000. That's in the first year and every year
thereafter. If you look at this chart here on unemployment, if it goes
below the bar, that's a negative: 2015, 2.3 million jobs; 2025, 2.7
million. Go on down the road. It averages over 2 million jobs every
year.
Now, you talk about a green job revolution. In Spain they have been
trying to do that, Madam Speaker. And in Spain for every green job
they've created, they have lost two conventional jobs. And the green
jobs they have created in Spain have cost about $1.2 million per job
created in terms of government subsidies. That's not a revolution that
I want to be part of, Madam Speaker.
I simply cannot express enough to get to 83 percent baseline
reduction in CO<inf>2</inf> by the year 2050, which doesn't change in
this bill, you have to reduce the emissions in the United States to the
level that we had in 1910. And if you want to look at it on a per
capita basis, assuming the population is going to average about 1
percent growth a year, it takes us back to 1875.
This is a bad bill. It deserves to be defeated. Please vote ``no.''
This legislation threatens to lock the United States into an era of
economic stagnation and global decline, thanks to a massive national
energy tax that will kill American industry and send jobs overseas.
We are here today voting on one of the most significant pieces of
energy legislation ever, and we have only had the final text for a
matter of hours. Surely, a majority of the Members have not read any of
the bill, and I doubt that one in a hundred have read the 400 new pages
that were turned in to the Rules Committee in the dark hours of this
morning. This is not the way this Congress should do business. It is
not the way the American people expect us to do business. What happened
to the promises of the President and the Speaker of transparency?
This bill will cause the average American's electricity bill to
increase by 77 percent to 129 percent. Filling up the gas tank will
cost anywhere from 60 percent to 144 percent more. That means, at
today's prices, gasoline would be well over $4 per gallon. As we all
vividly remember from last summer, $4 gas is painful and unsustainable.
The negative economic effects of this bill will hit some parts of the
country worse than others. The Democrats cite a recent CBO study, which
is now based on outdated text, which says that the negative economic
impact will only be $175 per household. I dispute this analysis because
it ignores the full negative consequences of this legislation, in that
the study completely ignored the economic damage from restricting
energy use. Well, gross costs will be closer to $900 per household. And
if average gross costs will be $900, then I can only imagine how bad it
will be in the Midwest and Southeast who are going to be much harder
hit.
The cost of home heating oil and natural gas will nearly double. An
independent analysis of the latest Waxman-Markey text explains that
when all of the tax impacts have been added up, the lost GDP in 2035
works out to $6,790 per family-of-four and that is before they pay
their $4,600 share of the carbon taxes. That puts the costs per family
for the whole energy tax aggregated from 2012 to 2035 to $114,915. Do
you think the above estimate will help the American economy? Of course
not.
If Democrats manage to pass this fiasco, millions of lost American
jobs will likely be sent overseas. Already the recession seems to
deepen by the day. The national unemployment rate is 9.4 percent and
President Obama has already declared that we are going to see it
topping 10 percent. All this even though this House passed the
President's Stimulus bill in January without even taking the time to
read that bill either. Michigan has an unemployment rate of over 14
percent. South Carolina has an unemployment rate of over 12 percent.
North Carolina and California have over 11 percent unemployment. Ohio
and Indiana have over 10 percent unemployment. Using the latest
numbers, in May of 2009, 14 states have double-digit unemployment, with
another 5 states between 9 and 10 percent. We should pass legislation
that seeks to decrease unemployment--let's not add fuel to the fire.
This bill would create a trillion dollar carbon derivatives market.
We introduced an amendment to ban speculators from participating in

[[Page H7654]]

the market during mark-up because we don't think that our economy can
withstand another AIG Credit Default Swap Crisis. And we certainly
cannot afford another multi-billion dollar bail-out.
Because there is so little protection for industry jobs that rely
heavily on affordable and dependable baseload power, I think we can
expect to start buying more Mexican cement, Chinese fertilizer and
Indian steel.
How can we cap global greenhouse emissions without the participation
of China and India? Not only does China reject any mandatory caps on
its emissions, but they demanded that we subsidize them in their quest
for better technology. Well, I have good news for China--this bill has
plenty of handouts for foreign polluters at the expense of American
industry. So, congratulations.
This bill is reckless and does not have a safety valve or exit ramp,
even though my colleagues and I introduced several safety valves during
the mark-up. It seems to me that it would be a good idea to kill this
bill if gas goes up to $5 or electricity bills double because of this
legislation. But, obviously my colleagues on the other side of the
aisle are willing to roll the dice with the American economy. We filed
these amendments with the Rules Committee and were shut out completely.
The Democrats are so unconfident in the costs and repercussions of
their own bill that they cannot even risk an amendment that would
sunset the policies when costs and unemployment resulting from this Act
cripple the American economy.
This bill grants near-dictatorial powers to the head of the
Environmental Protection Agency to sacrifice the American economy in
the cause of suppressing greenhouse gases. If you think suppression is
the wrong word, I want you to know that it was just yesterday we
learned that the EPA administrator and the Obama Administration
suppressed an inconvenient dissent offered by a career EPA official.
It seems clear that officials who already engage in political
suppression of opposition opinion are hardly the people in whom we want
to invest the future of the U.S. economy.
Let's investigate that scandal, but in the meantime, let's turn back
this power grab today and go to work on an all-of-the-above energy
solution that includes nuclear and offshore drilling.
The SPEAKER pro tempore. The time of the gentleman has expired.
The gentleman from California has 13 minutes remaining.
Mr. WAXMAN. Madam Speaker, I yield myself the balance of my time. I
won't take 13 minutes.
My colleagues, we have a unique historical opportunity today to pass
a bill that will lead us to greater independence as a Nation,
controlling our own national security. We have an opportunity to
transform our economy with new jobs. And we must do something about the
carbon emissions that are causing such an enormous problem to our
planet. We have this opportunity because President Obama has set this
high on his agenda. We have it because of the commitment of Speaker
Pelosi. We have it because the scientists are telling us there's an
overwhelming consensus that, despite the comments that we have heard
from the other side of the aisle, global warming is real, and it's
moving very rapidly, and we may get to a point that will be a tipping
point. Our actions will make no difference after that.
Let us not lose this historical opportunity for our national
security, for jobs in this country, to protect our environment, to make
us the leader once again in the international community, and to get
them to join with us in doing what we must to avoid the disasters that
many scientists have predicted. Vote for this legislation.
Mr. POLIS. Madam Speaker I rise today in support of this legislation,
and urge its passage.
I also would like to thank Chairman Waxman for his hard work on this
bill, it is of incredible importance and he has taken that
responsibility to heart.
I also thank the chairman for including two of my amendments within
the manager's amendment, provisions that are important to ensure
quality clean energy jobs training programs are accessible to all
communities and that state SEED funds can go directly to renewable
energy producers ensuring we get the most for our clean energy
investment.
Mr. Speaker, today we will be casting an historic vote, a vote of
moral responsibility, a vote of economic prosperity, and a vote FOR our
nation's future and our nation's leadership on the international stage.
We've heard the arguments against acting, we've heard the nay sayers
and those who would rather fear something they don't understand then
roll up our sleeves and work to solve a monumental challenge.
To my younger colleagues and the millions of young men and women in
this country who are embarking on their adult lives, who are starting
young families and are looking to a brighter future I say . . . This is
our generation's space race, this is our generations cold war, this is
our generation's greatest challenge and it is past time that we accept
that challenge to do better rather than shy away in the face of the
unknown.
I'd just like to reiterate the scale of this issue, and say that I
find it truly troubling that when we are faced with overwhelming
credible and independent scientific evidence, and we can see the
effects of a changing climate in our daily lives, the delusion it takes
to drum up facts and figures paid for by oil companies and promote
those as if they were science is truly reaching a new low.
This bill is not a tax. This bill isn't even a preverbal tax, and to
paint something as a tax simply because you don't understand it is
irresponsible.
We simply can't afford to do nothing.
Opponents of action would continue the status quo of doing nothing,
which has cost the average family a $1,000 increase in energy bills
over the past eight years.
America's energy costs will increase by $420 billion annually within
the next 5 years if we do nothing to reduce our dependence on oil and
fossil fuels. That amounts to $3,500 annually for every family in the
nation.
This bill has oversight after oversight, and ensures that consumers
aren't hurt at all.
This bill is good for our economy. Low income consumers are protected
first, the CBO estimates that this bill will save low income consumers
$40 by 2020. The energy efficiency provisions in this bill could save
$750 per household by 2020 and $3,900 per household by 2030.
My colleague on the other side of the aisle seems to be giving data
compiled by the partisan Heritage foundation, espousing to know
something about my district.
But Coloradans already know that in our state we already have many of
the provisions that this bill makes federal, like a Renewable Energy
Portfolio Standard. These policies have made Colorado a clean energy
leader and have brought our state high tech and high quality jobs.
I encourage my colleagues and the American people to learn about this
critical issue, learn about the science, learn about the market
mechanisms that this bill creates . . . and DON'T BUY the falsities
that big oil and big energy companies are spending millions to promote.
We've had enough. We've had enough of old ideas, of fear, of just
saying no to a better tomorrow and we've had enough of old technology
running our country and economy into the ground.
It's time we take a significant step forward, shaking the special
interests and act boldly for the good of our country. You might be
scared, but don't hurt our country because of that fear.
This bill is our Apollo project, our Manhattan project but now we act
for a nobler cause and we must act in bold and decisive terms.
I urge passage of this legislation.
Mr. HOLT. Madam Speaker, I rise today in support of H.R. 2454, the
American Clean Energy and Security Act of 2009.
For years, the consensus in the scientific community has been that
the release of greenhouse gasses into the atmosphere is altering the
Earth's climate in ways that are expensive and deadly. This is one of
the principle subjects I have spoken about and worked on for decades--
before and since I first ran for office--and it is one of the reasons,
I believe that my constituents sent me to Congress.
Today the House of Representatives at last is taking sweeping action
to cap greenhouse gas emissions, promote the production of renewable
energy, and make our homes, cars, and businesses more energy efficient.
This legislation would require that we reduce our carbon emissions by
17 percent from 2005 levels by 2020 and 80 percent by 2050. It would
implement a Renewable Electricity Standard that would require electric
utilities to provide 20 percent of their electricity from renewable
sources by 2020. It would make historic investments new clean energy
technologies and energy efficiency, including energy efficiency and
renewable energy, carbon capture and sequestration, electric and other
advanced technology vehicles, and research and development. These
provisions would help to slow the rate of global warming and preserve
our environment for future generations. Further, a recent report from
the Center for American Progress estimates that these provisions would
help to create 1.7 million new, high skilled clean energy jobs over the
next decade.
Opponents of this bill have argued that it would cost American
families over $500 a year in additional energy costs. While it is true
that there would be increases in the cost of energy, this bill would
return almost 50 percent of the proceeds from the cap-and-trade

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auction to consumers. In my home state of New Jersey, families who
currently pay $100 on their monthly energy bill would see their bill
increase by less than $3 a month. If you include the savings that would
come through the energy efficiency provisions in this legislation
American families could save $4,000 by 2030 on their energy bills.
According to the Environmental Protection Agency, in New Jersey
climate change has caused temperatures to be 4 degrees warmer than they
were in 1970. Over the past century precipitation has increased by 5
percent and severe weather incidents have increased by 12-20 percent,
and sea level along our coast is increasing .14 inches a year. It is
worth devoting some money and effort to slow the devastating climate
change is having on our state.
I am pleased that several provisions that I wrote were included in
this bill. I worked with Rep. George Miller and Rep. Jerry McNerney
authorize the WaterSense program that would help consumers identify
water efficient products. Water efficiency saves energy by reducing the
amount of energy used to heat, transport, and clean water. The savings
are substantial and real. According to the Environmental Protection
Agency, if only one out of every 100 American homes retrofitted their
homes with water-efficient fixtures, we would save 100 GWh of
electricity, enough energy to power more than 9,000 homes for an entire
year, while reducing greenhouse gas emissions by 80,000 tons.
Rep. Jared Polis and I wrote a provision that would require the
Departments of Energy, Labor and Education to compile an online
database for a renewable energy curriculum that would be easily
accessible to community colleges, vocational schools and universities
looking to create training programs but lacking local or technical
expertise. The transformation to a clean energy future will require a
trained workforce and our amendment would ensure that these
communities, whether in rural Wyoming or urban Pittsburg, have easy
access to green jobs training in new energy and new manufacturing
sectors so they can prosper in a new energy economy.
I worked with Rep. Rosa DeLauro, Rep. Tammy Baldwin, and Rep. Brian
Baird to include a provision that would allow the Secretary of Energy
to create a research program to study the role that human behavior will
play in energy consumption and climate change. Changing consumer
behavior offers a promising opportunity to promote energy independence
and reduce greenhouse gas emissions, however there is still much to be
learned about the forces that drive consumer actions.
As a member of the Committee on Natural Resources, I worked to make
sure that sufficient funding from the cap and trade auction would be
used for domestic and international adaptation. Funding allocated under
this provision would help to ensure the protection, restoration, and
conservation of natural resources and enable them to become more
resilient, adapt to and withstand the impacts of climate change and
ocean acidification. It will require the study of how wildlife
corridors will change as climate change affects migration patterns and
identify the steps to minimize the effects of climate change on
migratory species. It would be used to protect the public health from
the effects of climate change. Internationally, it would be used to
prevent the tropical deforestation that is adding billions of tons of
carbon to our atmosphere.
I remain deeply concerned that this bill does not include the
necessary research and development funding that is needed to reach the
80 percent reduction target set in H.R. 2425. We will not be able to
meet this goal with today's technologies, and as written, the bill does
not provide the billions of dollars a year that will be needed to
develop them. This is not a small or parochial concern. If Americans
and others around the world are to embrace a transformation in the way
we use and produce energy, they must know that our effort includes the
engine to drive the innovation for that transformation. Without a very
robust research effort--many billions of dollars--the vision of
transformation will be a mirage and the public will know it. I have
been assured by Chairman Waxman, Chairman Markey, Speaker Pelosi,
members of the Administration and members of the Senate that they
understand this shortcoming and that they will work with me to increase
the research funding to drive the innovation we need to transform the
way we produce and use energy.
Ultimately, I support this bill because doing nothing is not an
option. If we continue on the same path the U.S. Global Change Research
Program estimates that average global temperatures will increase 11
degrees Fahrenheit by the end of the century, causing among other
effects a rise in sea level of 3 to 4 feet, completely flooding low
lying areas like the Everglades and Cape Canaveral or Cape May. By
passing this legislation we can slow the rate of climate change, we can
create millions of new jobs, save consumers money through energy
efficiency, and end our reliance on foreign fossil fuels. I urge my
colleagues to support it.
Mr. HIMES. Madam Speaker, I rise in support of the Manager's
Amendment to H.R. 2454, the American Clean Energy and Security Act.
According to the Department of Energy the building sector is
responsible for 39 percent of total U.S. CO<inf>2</inf> emissions. At
long last, and due in part to the improvements contained in this
amendment, Congress is acting to decrease the negative effect buildings
have on our environment. Over the past year, members of the Financial
Services Committee have met with a wide array of housing advocates,
nonprofits and agency leaders to craft legislation that improves the
energy efficiency of housing while creating sustainable and affordable
communities for our citizens.
The result of this painstaking work is a bill known as the Green
Resources for Energy Efficient Neighborhoods, or GREEN, Act, led by my
esteemed colleague from Colorado Mr. Perlmutter and currently contained
within the Manager's Amendment to H.R. 2454. Through a broad array of
public and private incentives, it seeks to encourage energy efficiency
and develop renewable energy sources for housing and commercial
buildings in order to achieve the changes in the housing sector that
will help build America's clean energy economy for the next century.
A provision I contributed to the GREEN Act provides incentives to
lenders and financial institutions to help consumers who build, buy or
remodel their homes and businesses to improve their energy efficiency--
lowering their energy bills, curbing waste and reducing carbon
emissions all at once. I strongly encourage my colleagues to support
these priorities by passage of the amendment and of the underlying
legislation.
While I support many of the changes in the Manager's Amendment, I do
have concerns about provisions in the Amendment which address over-the-
counter derivatives, a matter which falls properly within the
jurisdiction of the Financial Services Committee, and which I believe
would best be addressed in that setting.
These reservations notwithstanding, I strongly encourage the passage
of the Manager's Amendment and of the American Clean Energy and
Security Act, which marks a historic step toward innovation and energy
independence for our Nation.
Mr. MATHESON. Madam Speaker, the two great energy issues our
generation faces right now are domestic energy security and climate
change. These issues deserve our active attention, and they deserve
action. Unfortunately, the bill we are considering today does not
appropriately address these issues.
Some continue to argue that climate change is not happening. In fact,
scientific consensus has clearly been established that climate change
is a very real, significant problem and we need to determine an
effective way to reduce global greenhouse gas emissions. However, this
legislation has problems.
The early-year carbon reduction targets assume an aggressive pace of
new technological development that may be unachievable. These targets
received little attention in the debates that have taken place on this
bill.
I remain concerned that this energy bill will result in unfair
regional wealth transfers. The one-size-fits all renewable electricity
standard is not the right approach to address climate change. It is an
add-on without a purpose. Data shows that the renewable targets in this
bill are only slightly better than business-as-usual. So why are we
bothering to dictate these standards when we should encourage the 15
States that currently do not have renewable energy targets to find
something workable for their communities?
The bill's distribution of emission allowances also creates regional
inequities. The ``50-50'' formula in the bill gives extra, unneeded
allowances to utilities with lower fossil fuels resources, and less to
utilities with greater reliance on fossil fuel resources. Those regions
that receive excessive allowances would sell those allowances to other
regions of the country that received less.
With respect to carbon markets, this bill overreaches and will
effectively destroy the derivatives market. Many people seem to confuse
the different types of markets that exist. The futures market contains
listed derivatives--these are standardized exchange-traded agreements.
There is also a market for cleared derivatives, which are standard
contracts that are privately negotiated but booked with a clearinghouse
as a counterparty. And finally, you have the over-the-counter
derivatives market where people negotiate deals to fit the needs of
everyone ranging from utilities, to airlines, to banks, and finally,
regular investors. This is a very complicated financial system and
while it is clear that we are not appropriately regulating this market
today, we should also avoid gutting the market altogether. I think
there is a reasonable way to structure the new carbon market and to
address deficiencies in the commodity markets. The provisions in the
bill are not the right approach, and these provisions of the bill were

[[Page H7656]]

never really debated in a House committee hearing.
There are also some changes made to the offsets section which are
troubling to me. I have been supportive of the effort to build a
strong, accountable offsets program and I am sorry to see that this
bill allows USDA to try to establish a much looser, less effective
program. This is short-sighted because unless offsets signify real,
verifiable carbon reductions, they will be worthless. This is
problematic because buying and using offsets is much cheaper for
businesses than it is to buy allowances.
I have been advocating for the inclusion of transmission language in
order to build much-needed infrastructure. However, this bill only
addresses the Western Interconnection, not the whole country. That
doesn't get at the underlying problem which is the lack of electricity
transmission capacity across the Nation. I wish this bill had taken an
approach similar to the one the Senate is considering.
Finally, the issue of energy independence calls for additional items
that are not included in today's bill. In the long run, technological
advances will provide new options to help this country gain a more
secure, stable energy profile. In the interim, we need policies that
keep all options on the table for the development and use of
conventional energy sources.
As a result of all of these concerns, I will vote against this
legislation. However, I will continue to work on the important issues
of climate change and energy independence.
Mr. KUCINICH. Madam Speaker, I rise in opposition to H.R. 2454, the
American Clean Energy and Security Act of 2009. The reason is simple.
It won't address the problem. In fact, it might make the problem worse.
It sets targets that are too weak, especially in the short term, and
sets about meeting those targets through Enron-style accounting
methods. It gives new life to one of the primary sources of the problem
that should be on its way out--coal--by giving it record subsidies. And
it is rounded out with massive corporate giveaways at taxpayer expense.
There is $60 billion for a single technology which may or may not work,
but which enables coal power plants to keep warming the planet at least
another 20 years.
Worse, the bill locks us into a framework that will fail. Science
tells us that immediately is not soon enough to begin repairing the
planet. Waiting another decade or more will virtually guarantee
catastrophic levels of warming. But the bill does not require any
greenhouse gas reductions beyond current levels until 2030.
Today's bill is a fragile compromise, which leads some to claim that
we cannot do better. I respectfully submit that not only can we do
better; we have no choice but to do better. Indeed, if we pass a bill
that only creates the illusion of addressing the problem, we walk away
with only an illusion. The price for that illusion is the opportunity
to take substantive action.
There are several aspects of the bill that are problematic:
1. Overall targets are too weak. The bill is predicated on a target
atmospheric concentration of 450 parts per million, a target that is
arguably justified in the latest report from the Intergovernmental
Panel on Climate Change, but which is already out of date. Recent
science suggests 350 parts per million is necessary to help us avoid
the worst effects of global warming.
2. The offsets undercut the emission reductions. Offsets allow
polluters to keep polluting; they are rife with fraudulent claims of
emissions reduction; they create environmental, social, and economic
unintended adverse consequences; and they codify and endorse the idea
that polluters do not have to make sacrifices to solve the problem.
3. It kicks the can down the road. By requiring the bulk of the
emissions to be carried out in the long term and requiring few
reductions in the short term, we are not only failing to take the
action when it is needed to address rapid global warming, but we are
assuming the long term targets will remain intact.
4. EPA's authority to help reduce greenhouse gas emissions in the
short- to medium-term is rescinded. It is our best defense against a
new generation of coal power plants. There is no room for coal as a
major energy source in a future with a stable climate.
5. Nuclear power is given a lifeline instead of phasing it out.
Nuclear power is far more expensive, has major safety issues including
a near release in my own home state in 2002, and there is still no
resolution to the waste problem. A recent study by Dr. Mark Cooper
showed that it would cost $1.9 trillion to $4.1 trillion more over the
life of 100 new nuclear reactors than to generate the same amount of
electricity from energy efficiency and renewables.
6. Dirty Coal is given a lifeline instead of phasing it out. Coal-
based energy destroys entire mountains, kills and injures workers at
higher rates than most other occupations, decimates ecologically
sensitive wetlands and streams, creates ponds of ash that are so toxic
the Department of Homeland Security will not disclose their locations
for fear of their potential to become a terrorist weapon, and fouls the
air and water with sulfur oxides, nitrogen oxides, particulates,
mercury, polycyclic aromatic hydrocarbons, and thousands of other toxic
compounds that cause asthma, birth defects, learning disabilities, and
pulmonary and cardiac problems for starters. In contrast, several times
more jobs are yielded by renewable energy investments than comparable
coal investments.
7. The $60 billion allocated for Carbon Capture and Sequestration
(CCS) is triple the amount of money for basic research and development
in the bill. We should be pressuring China, India, and Russia, to slow
and stop their power plants now instead of enabling their perpetuation.
We cannot create that pressure while spending unprecedented amounts on
a single technology that may or may not work. If it does not work on
the necessary scale, we have then spent 10-20 years emitting more
CO<inf>2</inf>, which we cannot afford to do. In addition, those who
will profit from the technology will not be viable or able to stem any
leaks from CCS facilities that may occur 50, 100, or 1000 years from
now.
8. Carbon markets can and will be manipulated using the same Wall
Street sleights of hand that brought us the financial crisis.
9. It is regressive. Free allocations doled out with the intent of
blunting the effects on those of modest means will pale in comparison
to the allocations that go to polluters and special interests. The
financial benefits of offsets and unlimited banking also tend to accrue
to large corporations. And of course, the trillion dollar carbon
derivatives market will help Wall Street investors. Much of the
benefits designed to assist consumers are passed through coal companies
and other large corporations, on whom we will rely to pass on the
savings.
10. The Renewable Electricity Standard, RES, is not an improvement.
The 15 percent RES standard would be achieved even if we failed to act.
11 Dirty energy options qualify as ``renewable'': The bill allows
polluting industries to qualify as ``renewable energy.'' Trash
incinerators not only emit greenhouse gases, but also emit highly toxic
substances. These plants disproportionately expose communities of color
and low-income to the toxics. Biomass burners that allow the use of
trees as a fuel source are also defined as ``renewable.'' Under the
bill, neither source of greenhouse gas emissions is counted as
contributing to global warming.
12. It undermines our bargaining position in international
negotiations in Copenhagen and beyond. As the biggest per capita
polluter, we have a responsibility to take action that is
disproportionately stronger than the actions of other countries. It is,
in fact, the best way to preserve credibility in the international
context.
13. International assistance is much less than demanded by developing
countries. Given the level of climate change that is already in the
pipeline, we are going to need to devote major resources toward
adaptation. Developing countries will need it the most, which is why
they are calling for much more resources for adaptation and technology
transfer than is allocated in this bill. This will also undercut our
position in Copenhagen.
I offered eight amendments and cosponsored two more that collectively
would have turned the bill into an acceptable starting point. All
amendments were not allowed to be offered to the full House. Three
amendments endeavored to minimize the damage that will be done by
offsets, a method of achieving greenhouse gas reductions that has
already racked up a history of failure to reduce emissions--increasing
emissions in some cases--while displacing people in developing
countries who rely on the land for their well being.
Three other amendments would have made the Federal Government a force
for change by requiring all Federal energy to eventually come from
renewable resources, by requiring the Federal Government to transition
to electric and plug-in hybrid cars, and by requiring the installation
of solar panels on government rooftops and parking lots. These
provisions would accelerate the transition to a green economy.
Another amendment would have moved up the year by which reductions of
greenhouse gas emissions were required from 2030 to 2025. It would have
encouraged the efficient use of allowances and would have reduced
opportunities for speculation by reducing the emission value of an
allowance by a third each year.
The last amendment would have removed trash incineration from the
definition of renewable energy. Trash incineration is one of the
primary sources of environmental injustice in the country. It is a
primary source of compounds in the air known to cause cancer, asthma,
and other chronic diseases. These facilities are disproportionately
sited in communities of color and communities of low income.

[[Page H7657]]

Furthermore, incinerators emit more carbon dioxide per unit of
electricity produced than coal-fired power plants.
Passing a weak bill today gives us a weak bill tomorrow. Rejecting a
weak bill today gives us another chance to pass something more in line
with the science tomorrow.
Mr. DICKS. Madam Speaker, as the chairman of the Interior
Appropriations Subcommittee and someone who is very concerned about the
need to safeguard wildlife and ecosystems from global warming, I wish
to express my strong support for the ``American Clean Energy and
Security Act of 2009.'' I believe that the policy provisions in this
legislation, coupled with a new core funding stream for wildlife and
natural resources derived from a portion of the Federal revenues from
expected cap-and-trade legislation will provide the policy response
necessary to tackle this significant challenge.
I am very much aware of the need to take action to address global
warming, and I have held hearings to examine the impact of climate
change on many of the agencies and resources under my subcommittee's
jurisdiction. I have consistently stated my belief that climate change
may be the emerging issue of our time. Climate change will alter the
face of our planet in ways we cannot yet fully comprehend, and I
believe it is our responsibility not only to do as much as possible to
halt or slow it, but also to do everything in our power to protect the
earth's resources from its impacts so that future generations will be
able to benefit from them as we and past generations have done.
Our Nation's wildlife is one critically important resource that is
particularly vulnerable to climate change and is also a resource that
is a fundamental part of America's history and character. Conservation
of wildlife and wildlife habitat is a core value shared by all
Americans.
America's wildlife is vital to our Nation for many reasons. Wildlife
conservation provides economic, social, educational, recreational,
emotional, and spiritual benefits. The economic value of the outdoor
recreation industry--hunting, fishing, and wildlife viewing, hiking,
paddling--alone is estimated to contribute $730 billion annually to the
U.S. economy. Wildlife habitat, including forests, grasslands, riparian
lands, wetlands, rivers and other water bodies, is an essential
component of the American landscape, and is protected and valued by
Federal, State, and local governments, Tribes, private landowners, and
conservation organizations.
Unfortunately, it is becoming increasingly apparent that the effect
of climate change on wildlife will be profound. The Intergovernmental
Panel on Climate Change reports have made clear that global warming is
occurring, that it is exacerbated by human activity, and that it will
have devastating impacts on wildlife and wildlife habitat. In addition,
a recent report, Global Climate Change in the United States, was
released by the Administration and reflects the most current
information from our Nation's leading scientists who agree that the
impacts from climate change are already being felt and will continue to
increase.
Global warming is already impacting all of us: threatening the water
we drink, the air we breathe, the medicines we use, the food we eat,
the forests and fisheries we depend on, the special places we take our
children. Wildlife is suffering from massive changes in habitat,
particularly in the arctic, and shifts in ranges and timing of
migration and breeding cycles. Continued global warming could lead to
large-scale species extinctions. These impacts add to and compound the
adverse effects wildlife and its habitat already suffer from land
development, energy development, road construction, and other human
activities, and from other threats such as invasive species and
disease.
According to the IPCC, global warming and associated sea level rise
will continue for centuries due to the timescales associated with
climate processes and feedbacks, even if greenhouse gas concentrations
are stabilized now or in the very near future. I believe that, as a
nation, we must craft responses and mechanisms now to help navigate the
threats global warming poses to the natural resources that we all
depend upon for survival.
To conserve natural resources and wildlife in the face of the far-
reaching effects of global warming, there is a need for a coordinated,
national strategy based on sound scientific information to ensure that
impacts on wildlife that span government jurisdictions are effectively
addressed and to ensure that Federal funds are prudently committed.
Ensuring strategic and efficient allocation of funding is something of
particular interest to me as an appropriator.
To that end, I have acted within my capacity as a lead appropriator
on this issue to advance steps necessary to combat the climate change
impacts we have already set underway. I have worked to establish the
Global Warming and Wildlife Science center at the U.S. Geological
Survey, now receiving its second year of funding. Also in the recent
FY09 omnibus appropriations bill and the FY2010 Interior Appropriations
bill. I have provided direction to the Department of the Interior to
develop a national strategy to address global warming's impacts on
fish, wildlife, and natural resources.
The American Clean Energy and Security Act will help ensure that the
pressing needs that are faced by the agencies and programs under the
Interior and Environment appropriations subcommittee to help wildlife
and wildlife habitat are addressed strategically, based on a foundation
of sound scientific information, and that funding is driven through
proven programs at the Federal, State and tribal levels in the most
efficient way possible. I have also included significant funding
increases. But I can only do so much in the Interior Appropriations
bill.
I also have one additional but very significant point to make about
funding to address impacts to natural resources and wildlife from
global warming. It is essential that actions to safeguard wildlife and
the natural resources will all depend upon receiving adequate funding.
Addressing the greatest conservation challenge of our time will require
long-term investments of the magnitude that only the revenue stream
created by comprehensive climate and energy legislation can provide.
While I support dedicating more of the allowances under this bill to
natural resources adaptation, the 1 percent currently contained in the
bill represents an important start of the problem. As I have indicated,
the impacts are occurring today and the need is urgent. Paying for
these investments through climate revenues takes the burden of
protecting these resources off taxpaying citizens and onto the
polluting entities responsible for causing global warming pollution.
The Interior and Environment appropriations subcommittee allocation
is woefully stressed just dealing with the current needs of the
agencies and programs under its jurisdiction. Our Federal land
management agencies have tremendous backlogs for operations and
maintenance of our national wildlife refuges, parks, forests, and other
public lands. This situation was greatly exacerbated under the Bush
administration budgets and prior Congresses. Hundreds of important
biologist positions have been cut, and the agencies' budgets are far
below what they have needed just to keep up with inflation. These
programs have been starved to the point where they are on life support.
It became apparent in hearings the subcommittee has held on global
warming that the land management agencies are already seeing the
results of climate change on the ground, but that they have few, if
any, resources to deal with these changes. With the effects of global
warming only expected to increase in severity in the coming years, I
believe it is crucial to infuse a new core funding stream into our
efforts to address this crisis, and I am pleased that the American
Clean Energy and Security Act provides an important new funding stream.
This is a great Nation with a unique and irreplaceable natural
heritage. We must take steps now to protect our wonderful wildlife from
the ravages of climate change. With this in mind, I plan to vote for
the American Clean Energy and Security Act of 2009.
Mr. CONYERS. Madam Speaker, I rise in support of H.R. 2454, ``The
American Clean Energy and Security Act of 2009,'' because, as a nation,
we simply cannot afford to delay addressing the cataclysmic economic,
national security, and environmental threats posed by global climate
change any longer. Although imperfect, this piece of legislation is a
necessary precondition for crafting a global solution to climate
change. With this vote today, the United States reclaims the mantle of
world leadership in addressing the single most important issue facing
the planet.
The opponents of this legislation will argue that we are taxing away
our economic prosperity and our jobs. This could not be further from
the truth. For 22- to 30-cents a day, less than the cost of a stamp,
this bill will transform our economy by investing in new energy
technologies that will create whole new industries and millions of
jobs. All together, this legislation will create 1.7 million new jobs,
53,816 of which will be located in my home State of Michigan. This bill
isn't a job killer. In fact, it will unleash a flood of jobs created by
a mean, lean, and innovative energy sector.
This bill also furthers other important national priorities. If
enacted, this bill would finally break the chokehold the OPEC cartel
has over our energy security, provide a lifetime of clean air for our
children and their children, and prevent the threats of environmental
catastrophes like hurricanes, draughts, and famines.
We must consider the costs of inaction. During the Bush-Cheney years,
our dependence on foreign oil increased, average household energy costs
went up $1,100, and job growth slowed to a crawl. Throughout this time,
the threat of climate change multiplied as the administration ignored
reality and the scientific

[[Page H7658]]

community and turned a blind eye to the plight of future generations.
Although this is not the bill I would have written, the costs of
inaction are simply too great to ignore. A vote for this bill is a vote
for jobs at home, energy independence, and a livable world for all.
Mr. STUPAK. Madam Speaker, I rise to support and discuss regulations
I included in the American Clean Energy and Security Act to prevent
excessive energy speculation, which has played a role in the run away
energy prices we saw last year, and are seeing in the first half of
2009.
In January, oil was trading at $35 per barrel. Today, it is trading
near $70 per barrel. The price for oil has doubled in the midst of a
global recession. Oil supplies are at a 20-year high, and demand is at
a 10-year low, yet oil prices have skyrocketed since the beginning of
the year. If this is based on supply and demand, what is happening to
explain rising oil prices? If supply is up and demand is down during
this global recession, why would oil continue to climb?
The Federal Energy Regulatory Commission, the Senate, as well as a
number of respected oil market traders and analysts, have pointed to
excessive speculation in the energy markets as the primary reason we
see price spikes and volatility in the marketplace. In May, I
introduced the Prevent Unfair Manipulation of Prices Act, or the PUMP
Act of 2009. I worked with Energy and Commerce Chairman Waxman and
Subcommittee Chairman Markey to include the bulk of my bill into the
American Clean Energy and Security Act, which is on the floor today.
This legislation is not new; I have been introducing this bill in one
form or another since April 2006. But new weaknesses in our regulatory
structure, brought to light by the financial crisis and spikes in the
price of oil last year, are addressed in the 2009 PUMP Act.
The need for this legislation is two fold: 1. the dramatic rise in
prices of oil and natural gas, and 2. the new carbon derivatives
trading market created by the ACES bill. Some object to the inclusion
of regulations on derivatives in this energy bill. I believe ACES
proposed cap-and-trade program is fatally flawed without strong
regulations to police this market from run-away price swings on carbon.
Addressing excessive energy speculation should be a key part of any
new energy policy pursued, because a dramatic spike in oil prices or
carbon prices, would further devastate our already weakened economy.
According to NYMEX officials, less than \1/10\ of one percent of
futures trades in crude oil ever result in physical delivery. Most
futures traders are not interested in delivery of a product, they are
interested in profit. When speculators increase their investments,
physical hedgers--businesses like airlines, trucking companies, and
other industries that actually use the energy being traded--represent a
smaller and smaller portion of the market. They are being squeezed out!
As a growing majority of the market is controlled by speculators,
crude oil is morphed from a commodity into a financial asset, traded
for its financial value instead of its energy value! As a result, this
excessive speculation by index speculators is a significant factor in
the price Americans are paying for gasoline, diesel and home heating
oil, and has similar affects on agricultural prices. For too long,
through loopholes, exemptions, and poor enforcement by the Commodity
Futures Trading Commission, energy speculators have been able to avoid
position limits. As a result, excessive speculation has exploded.
My legislation in the 2009 PUMP Act and in ACES is comprehensive, and
changes the regulations for the energy markets in fundamental ways. It
makes the Commodity Futures Trading Commission regulate all over-the-
counter trades that are currently not regulated; it regulates foreign
boards of trades' energy transactions that trade for delivery in the
United States or on a computer located in the United States. These
boards are subject to the same regulations as current markets,
including large trader reporting, recordkeeping, and prohibitions
against fraud and market manipulation.
My bill closes the swaps loophole; no longer allowing energy
transactions to be excluded from the requirements of the Commodity
Exchange Act. This would require the CFTC to provide greater oversight
over these swap transactions. It bans naked credit default swaps. Naked
credit default swaps, or one where the holder has no risk obligation on
the swap, which creates a moral hazard by incentivizing economic loss.
It sets aggregate position limits for energy speculators across all
markets; it includes a CFTC Inspector General provision that makes that
office independent and accountable. It also requires all trades be
cleared through a designated clearing organization, eliminating the
unregulated ``dark markets.''
My bill allows the CFTC to collect fees and create an independent
funding stream for oversight and enforcement of commodity markets.
Finally, it includes carbon derivatives as a regulated energy
commodities under the authority of the CFTC. This incorporates all
greenhouse gas emissions, offsets, and financial products derived from
carbon credits.
As the House works on the ACES bill, it is important that carbon
trading not lead to a speculative bubble like we saw in the 2008 oil
markets. Congress needs to pass legislation to set strong position
limits, and ensure that excessive speculation does not allow
speculators to detach carbon or energy prices from supply and demand
fundamentals.
I am committed to continuing to work with my colleagues in passing
legislation for the President to sign that sets strong position limits
and improves CFTC enforcement to end this excessive speculation and
provide relief to American consumers.
Ms. WOOLSEY. Madam Speaker, as a mother and grandmother, the health
of our earth is at the top of my list of concerns so that my kids and
grandkids aren't left with the messes we've created. For too long, we
have ignored the warning signs that human activity is having a negative
impact on our environment. It's up to us to change our ways, use our
brains, and stop our bad behavior.
The facts are clear. The time for debate on whether or not global
climate change exists is over. What we need to do now, is address the
problem before it's too late. We need to listen to the world scientific
community, and act immediately to curb our carbon emissions. That's why
I support H.R. 2454, the American Clean Energy and Security Act.
The single most important part of this bill is that it puts in place
the federal structure to, for the first time, seriously regulate carbon
emissions that are adversely affecting our climate. And with proper
oversight and science--with the right people in charge--this bill will
do what we need to do.
Now, it's never easy to change the status quo. There's a lot of money
out there for people who would continue the practices that we know are
harmful to all of us. And we all know how that money can be used to
muddy the issues and derail the will of the people.
The plain fact of the matter is this: Without this bill, without a
strict regime for controlling carbon emissions, Big Oil and Big Coal
Win. And the environment, endangered species, our kids, our grandkids,
you, and I will be the losers.
Now, people point to China and India, and all the carbon they emit as
a big problem too, and they're right. But the United States leads the
world in carbon emissions and, as the world leader, it's our
responsibility to lead the world in a new direction. The burden falls
on America to set the tone. By instituting a cap and trade system, we
are showing the rest of the world that we're serious about addressing
the issue, and proving to them that it can be done.
Madam Speaker, I'm not willing to risk our future by doing nothing. I
urge my colleagues to support this bill, take a stand, and lead the
world in addressing the issue of global climate change.
Mr. KIND. Madam Speaker, I rise today to express my qualified support
for the landmark bill before us, H.R. 2454, the American Clean Energy
Security Act.
Global climate change poses grave risks to our planet, our economy,
and our way of life; it, therefore, cries out for bold action to
reverse mankind's contribution to the problem. At the same time, taking
such action offers us the tremendous opportunity to remake our energy
infrastructure to become less dependent on foreign sources of energy,
improve the health of our population and environment, and create high-
paying jobs here in America.
The sponsors of H.R. 2454 and its many champions here in the House
claim that it will do all of these things--that it will ignite
America's leadership in reducing global greenhouse gas emissions to
sustainable levels, shift our nation's energy paradigm away from
polluting sources and into clean, renewable ones, and create millions
of jobs for domestic workers. I also believe this is the case. However,
I fear that under this bill, progress toward these goals will come at
great cost to American families, particularly in the area of western
Wisconsin I represent and others like it. I am disappointed we did not
have more time to debate the cost of the legislation and address our
concerns through additional consideration of the bill in the Ways and
Means Committee.
H.R. 2454 will require utilities and other greenhouse gas emitters to
hold an allowance for each ton of these gases they emit. In the
beginning of the program, the government will give a large number of
these away to regulated utilities with the requirement that the value
of these free allowances be used to mitigate the cost to consumers.
While some people are very comfortable with this arrangement, I am not
so confident that utilities will pass on the full value of these
allowances to ratepayers. The initial years of the European Emissions
Trading System demonstrated that giving valuable allowances to
utilities for free encourages them to pocket the value rather

[[Page H7659]]

than reducing electricity rates. Whether the bill's additional layers
of administration, oversight, and bureaucracy will be effective at
preventing this from happening here is an experiment I would rather not
impose on my constituents in western Wisconsin.
I am also concerned that the ACES bill is skewed against regions like
mine that are rural and heavily dependent on coal for energy. The
formula it establishes for doling out the free allowances to utilities
provides more to those areas that need them the least--those that have
a lot of zero-emission hydro or nuclear power--rather than those areas
like Wisconsin that need the allowances because of their higher
emissions. The federal government helped subsidize the hydro and
nuclear plants in other parts of the country; ratepayers in my district
should not have to send more money their way while we seek to realize
the same low-carbon generation.
Finally, the bill allocates funds derived from consumers and spends
it on such things as international deforestation, investments in
technology, and wildlife adaptation. While these are worthwhile goals
that will need to be addressed in the context of combating climate
change, I do not think we should do so by putting an additional
financial burden on those who can least afford it.
That is why I introduced H.R. 2757, the Consumer Assistance Rebate
for Energy, or CARE, Act. This bill would have ensured that any money
raised by the government as a result of climate change legislation
would be given back to consumers directly to help them cope with any
price increases for energy and consumer goods. The EPA stated in its
analysis of the ACES bill that this type of approach is the least
burdensome on low-income consumers, and that it achieves greenhouse gas
reductions at a lower overall cost than the ACES system of free
allowances to businesses and utilities.
While I wish my concerns about consumer protection had been addressed
more fully in the bill before us, the legislation has changed for the
better since being reported out of the Energy and Commerce Committee,
and there is enough in the bill to recommend it that I am willing to
support its passage today so that it will move to the Senate where it
can be improved further.
The American Clean Energy Security Act will live up to its name in
many ways. It will transition our energy systems away from
unsustainable, polluting fossil fuels and toward clean, renewable
resources such as wind, solar, biomass, and hydrogen. It will provide
an unprecedented investment in the technologies and industries of
tomorrow, creating more than 4,000 jobs in my Congressional District
alone, and millions nationwide.
America is the nation that invented solar cell technology decades
ago, and the investments we make in the coming years will allow us to
regain our leadership in the world and be the center of innovation and
industry that will drive the clean energy revolution.
The bill also includes funding to help our natural resources, and
fish and wildlife in particular, adapt to the changes in their habitat
that have already begun.
Finally, the bill includes opportunities for farmers, ranchers, and
foresters to be a part of the climate solution, which is critical for
my district, where agriculture remains the largest industry. The USDA,
in consultation with EPA, will establish a program where businesses and
utilities can meet their greenhouse gas obligations by paying farmers
who help sequester carbon. This new revenue stream will be very
important in helping the agriculture sector cope with higher costs for
energy, fuel, and fertilizer.
Again, I wish we had had more time to deliberate on this extremely
large and complex piece of legislation. I wish the bill contained more
direct, more transparent ways of compensating consumers. I wish the
bill treated regions equitably. But I support strong action on climate
change and the creation of millions of new jobs, and I will vote to
move this bill forward in the hope that the Senate will pass a bill
that works better for more Americans.
Mr. COSTELLO. Madam Speaker, I rise today in opposition to H.R. 2454,
the American Clean Energy and Security Act of 2009.
I believe that climate change is occurring, and that increased
greenhouse gas emissions have profoundly impacted our climate and our
resources. To combat these changes, we need to develop a sustainable
energy policy that will meet our energy needs today without
compromising the ability of our children and grandchildren to meet
their energy needs tomorrow.
For these reasons, I support a balanced energy plan that will
increase our energy independence by promoting the development and
deployment of 1) renewable domestic sources of energy, such as ethanol
and biodiesel, and 2) technology that will use traditional fuels in a
cleaner way, such as clean coal carbon capture and storage. These
energy sources eventually may satisfy the needs of the entire country,
but they are still being developed and expanded. We must ensure that
Americans maintain access to affordable and reliable energy until these
sources are broadly available.
I oppose H.R. 2454 because it does not provide a bridge for coal and
other fossil fuels to develop and demonstrate new technologies to
provide reliable energy and meet the necessary reductions in greenhouse
gas emissions. The timelines contained in this legislation do not
provide sufficient time to put these technologies in place.
Manufacturers and utility companies will be forced to stop using the
affordable, abundant fuels they use today and transition to far more
expensive energy sources. As a result, this bill will force our most
affordable domestic energy source, coal, into extinction. Energy costs
will skyrocket and workers will face layoffs and plant closures.
American families cannot face these additional burdens during these
difficult economic times.
In addition, we cannot ignore the fact that climate change is a
global problem and requires a global solution. We must consider the
consequences of enacting this legislation when other countries, like
China and India, have not taken steps to reduce their own carbon
emissions. Without some measure of equity on this issue, our emissions
may appear to decrease, but they will simply shift overseas, taking
jobs and industries with them.
Madam Speaker, I oppose H.R. 2454 because it does not do enough to
bridge the transition to clean energy sources, to prevent spikes in
electricity costs, to protect workers from new layoffs, or to provide a
global solution to climate change. Quite simply, it is the wrong bill
at the wrong time. I ask my colleagues to join me in opposing this
measure.
Mr. YOUNG of Florida. Madam Speaker, I rise in opposition to H.R.
2454, the so-called American Clean Energy and Security Act. Throughout
my time in Congress I have supported protecting America's environment
and climate as well as incentives for clean alternative energy,
including solar, wind, and biofuels. It is in our county's best
interest environmentally, economically, and for our national security
to transition away from imported oil to domestically available,
renewable, and clean sources of alternative energy.
For instance, I have supported efforts by the City of St. Petersburg
to power 40 of the city's parks entirely using a sustainable solar
energy network which will allow these parks to be removed from the
city's power grid.
In the 110th Congress I was a cosponsor of the Clean Energy Tax
Stimulus Act of 2008. This measure would have provided for the
continuation of eight clean energy production and efficiency tax
benefits in order to incentivize important alternative energy
investment and production.
I am also supportive of initiatives to require auto manufacturers to
increase the fuel efficiency of the cars sold in America. In fact, in
March I signed a letter to President Obama to urge him to take the
strongest stand possible to increase the Corporate Average Fuel Economy
(CAFE) standards. Last Congress I was a cosponsor of the Fuel Economy
Reform Act which would have raised CAFE standards to 35 miles per
gallon over the next decade.
And I have long been supportive of protecting Florida's environment
and our military's training needs by opposing offshore drilling in the
Eastern Gulf of Mexico.
I also believe in creating and supporting new green jobs. At the same
time that we encourage conservation and the production of renewable
resources, we must also help prepare Americans to work in these new
green jobs. That is why I voted in favor of the Green Energy Education
Act. This legislation would authorize funds to be made available to
support advanced energy and green building training and graduate
programs throughout the country.
Despite my support for clean energy and a clean environment, I must
oppose this cap and trade legislation which will impose increased costs
on American citizens who have done nothing wrong. At a time when the
people of Pinellas County and our nation are hurting, it is
incomprehensible that the House will knowingly approve legislation that
will impose a new energy tax on American citizens, will put American
companies at a competitive disadvantage, and will endanger the jobs of
American workers.
Supporters of this legislation have tried to claim that the cap and
trade scheme will only cost some negligible amount, a postage stamp per
day or $15 per month. They claim that a report by the Congressional
Budget Office backs up this statement. However, if you actually take
the time to read the CBO's report, you will understand that this is
simply not true. The analysis only includes one limited portion of the
1,201 page bill. The analysis does not include the effects from the
lower incomes and lost jobs that the CBO predicts will occur. The
analysis does not include the effects from the decreased retirement
accounts that will be realized as the value of stocks decline, as the
CBO predicts. The analysis does not include the increased costs of
producing goods in the United States, as the CBO predicts. In short, to
say that this legislation will not hurt American families is simply
misleading.

[[Page H7660]]

If this legislation is signed into law, energy costs are going to
rise. Even the President acknowledges that electricity rates are going
to ``necessarily skyrocket.'' Britain's Taxpayer Alliance estimates
that families there are paying $1,300 more in taxes after the
implementation of a similar program only a few short years ago. In
drafting this legislation, proposals were offered to suspend the cap
and trade program if gas prices rose above $5 per gallon, if
electricity prices rose by 10 percent, or if the unemployment rate hits
an unthinkable 15 percent. All three of these sensible ideas were voted
down by supporters of this bill. All Americans will be impacted by
these higher energy prices, but the hardest hit will be the low income
and the many of my constituents are seniors who live on fixed incomes.

I do not think that I need to remind any of my colleagues of the
energy crisis of last summer. I remember all to well the stories from
my constituents of the difficulty they had in dealing with $4 per
gallon gasoline. However, a study conducted by the American Petroleum
Institute has found that the impact from this legislation will add an
additional 77 cents to the price of a gallon of gasoline, and even
higher costs for critical diesel fuel. In the last two years alone more
than 5,000 trucking companies with at least five trucks went out of
business, costing a countless number of jobs. Is this really the type
of result we want?
Inexplicably, this legislation would spend seven percent of the cap
and trade allowances--paid for by American consumers--in foreign
countries. Let me repeat that: this bill will send $302 billion U.S.
tax dollars under cap and trade to foreign countries. Most of this
money is set aside to plant trees. The Congressional Budget Office has
said that ``the allowances spent overseas would impose a net cost on
U.S. households: They would bear the cost of the allowances but would
not receive the value.''
The cap and trade scheme also creates a new tradable commodity that
Wall Street investors will be able to buy and manipulate. The pollution
allowances will be traded and sold on the open market to the highest
bidder. Companies who will be forced to buy these to provide necessary
energy and products will pass on these costs to consumers. Even worse,
this bill sets a minimum price for which the allowances can be sold
for, not a maximum price to prevent the fleecing of American consumers.
After the financial collapse of last year, we should not allow Wall
Street speculators and commodity traders to hold the American people
hostage in this way. I thought the purpose of this legislation was to
protect the environment, not to help Wall Street get richer.
Also included in this bill is a one-size-fits-all nationwide
renewable energy standard that favors certain regions of the country at
the expense of others. It is estimated that residents in Florida will
be forced to pay an additional $339 million in their energy bills
within only a few years, while the residents of some states in the
northeast and the west coast will be heavily subsidized. Fundamentally,
I believe that the federal government must get out of the business of
picking winners and losers.
These are just some of the things that we actually know are in the
bill. But there is no way for Members to understand everything that is
included. The bill itself is 1,201 pages that few, if any of us have
read. Then only this morning, the Democrat leadership unveiled and
added on a 309 page manager's amendment. The Washington Post says that
this is a ``1,201 page measure filled with political compromises,
directives, subsidies and selections of winners and losers that members
won't be able to analyze before the vote and that leaves us wondering
how effective it will be.'' The St. Petersburg Times, which supports
the legislation, admits that the bill is ``imperfect'', ``not ideal,''
and that it includes ``weasel language.'' Even the Chairman of the
Agriculture Committee Colin Peterson, who was one of the principal
negotiators of the final bill that we are discussing today, said, ``The
truth is, nobody knows for sure how this is going to work.'' Despite
the importance of this issue, only one amendment has been allowed to
even be considered by the House. The fact of the matter is, this
legislation sets emission standards from now until 2050, and will
affect our American way of life even further out from there. The
initial reaction from my constituents in Pinellas County is that there
is no need to rush through this process without understanding the
effect on our nation the over the next 40 years. About 80 percent of
the calls and e-mails that I have received have opposed this cap and
trade bill.
We all agree that the United States must begin the transition to
domestically available, renewable, and clean sources of energy. We
should work to make it easier for this change to happen, and it is
appropriate for the government to provide incentives, not penalties, on
those who do the right thing by investing in new sources of energy. We
can do this by following in the tradition of the Manhattan Project,
where the United States government brought our best and brightest minds
together to create the atomic bomb to win World War II. The New
Manhattan Project for Energy Independence, which my colleagues and I
will have an opportunity to support, will provide funding for American
universities, scientists, and inventors to come together and create
more energy efficient and affordable cars, buildings, advanced power
plants, advanced biofuels, and carbon capturing technology to help
clean our air. This can be accomplished without imposing new tax
increases on the American people while taking the steps necessary to
secure a clean and secure future. We can take this important step by
including Democrats and Republicans working together, rather than
refusing to even consider suggestions from Republican members or even
letting us know of details of this cap and trade bill as it was being
written.
This is the right way to approach our future energy and environmental
needs. The wrong way is to punish average American citizens simply for
going about their everyday lives--picking their children up from
school, starting a small business, keeping their family cool in the
summer and warm in the winter, or trying to make ends meet. And that's
who this bill taxes and punishes.
Madam Speaker, if this was truly an energy bill, there is little
doubt in my mind that both sides could come together, as we have done
so many times in the past, to find a bipartisan solution that will help
this country move in the right direction and reduce our dependence on
imported oil, lower our energy costs, and reduce carbon emissions
without punishing American families. Unfortunately, this legislation
only amounts to imposing a new burden on the American people at a time
when they are already overburdened and I cannot support what the Wall
Street Journal has called ``the biggest tax in American history.''
Let's vote this down so we can go back and work together and do what's
right for America.
Mr. MEEK of Florida. Madam Speaker, I stand for the creation of new
American jobs, for less dependence on foreign energy, and for a
reduction in the carbon pollution that causes global warming.
This bill is about national security, creating jobs in a new energy
economy, and defending consumers through a fiscally responsible bill
with consumer protections.
These investments will also spur new jobs. The Political Economy
Research Institute estimates that 3.5 jobs will be created in the new
green job sector for every 1 job that is fossil fuel source based in
Florida. This could mean over 94,000 jobs in Florida alone.
Too often our foreign policy decisions are affected by the regional
stability of oil producing countries. In Iraq we are paying for our
oil-centric obsession and Floridians have paid over $37 billion for the
war there. This legislation offers incentives that promote energy
efficiency and that will break our addiction to foreign oil. We must be
focused on research and development for green technologies and end the
obsession with crude oil that is fueling too much of our economy.
The bill is not perfect--few landmark bills are. Once the Senate
takes up the bill later this year, this bill will be further improved
and will address the shortcomings that exist in this version. My
mission will be to ensure that the final legislation that is passed
will include the necessary consumer protections to minimize price
increases.
We cannot wait to act on climate change legislation. Florida is
already experiencing eroding shorelines, flooding and dying coral
reefs. In particular, the Everglades face severely altered water flows
and harmful invasive species. This will also have a devastating impact
on Florida's economy. In 2007, tourists flocking to Florida's beaches
and other priceless environmental areas spent over $65 billion in
Florida.
Without aggressively capping carbon emissions, the earth's
temperature will continue to rise, causing more extreme storms and
altered ocean conditions which will have a devastating effect on
Florida's ecosystem.
The American Clean Energy and Security Act (ACES) works to minimize
price increases for consumers. On average the EPA estimates that this
bill will cost an average household $98 to $140 per year in price
increases, while holding those in the lowest income quintile harmless.
Without carbon emissions caps, we have seen energy prices fluctuate
drastically. By regulating carbon intensive goods and creating a
transparent market this bill will help to stabilize those prices and
help protect consumers.
By investing in conservation, efficiency and renewables, Florida
residents will see lower costs in energy though building weatherization
improvement benefits, and energy efficiency savings.
Mr. TEAGUE. Madam Speaker, as most of my colleague know by this
point, I'm an oil man.
Always have been.
Always will be.

[[Page H7661]]

When I was 17 years old, my father became sick, so I went to work in
the oil fields, making $1.50 an hour on a pulling unit, to help support
the family.
I kept at it until I had my own company, employing and providing
quality health care for 250 people.
Over the years, I've done just about everything there is to do in oil
and gas around New Mexico. People know that Harry Teague is an oil man,
and I am proud of that.
In 2007, when I announced that I would be running for Congress,
people were surprised to find an oil man like myself campaigning on a
platform that emphasized energy independence through a focus on the
development of full and diverse slate of energy sources. Not only was I
advocating increased production of our valuable petroleum resources. I
told people in Hobbs, Roswell, Carlsbad and across Southern New Mexico
that technologies like wind, solar, and biofuels were not only good for
the environment, but would also create jobs in our communities and
bolster our national security.
I did not wait long after being sworn in as a Member of the 111th
Congress to turn my campaign platform into a legislative record. The
very first bill I introduced, H.R. 451, provides a multiyear extension
of the Renewable Energy Tax Credit. I worked hard to have that
legislation included in the House version stimulus package, and when
you signed the American Recovery and Reinvestment Act into law on
February 17, 2009, the production credit was included.
I am proud to say that H.R. 451 not only gave one of the largest
boosts we have ever given to renewable energy production in this
country, but it also saved the oil and gas industry $13.1 billion
dollars in prospective tax increases.
As the 111th Congress continued, I likewise continued my work
promoting energy production in America. I passed several amendments to
various legislation promoting renewable energy, and I worked tirelessly
to ensure the Budget Resolution passed by Congress did not include tax
hikes on oil and natural gas.
Then came the American Clean Energy and Security Act, which is the
bill we're here debating today.
When the legislation was introduced and then reported out of
committee, I must say, I was deeply skeptical. I had one central
concern:
I worried that this bill would hurt the rural communities and small
towns and cities that I represent in Congress.
So, I had a choice. I could stand by and issue my reservations and my
opposition from the sidelines. Or I could get involved, and stand up
for the good people in New Mexico I represent, and advocate for changes
that would help people and businesses in my district.
Madam Speaker, anyone who knows me from the oil fields of Hobbs, New
Mexico knows one thing: If there's one thing I know, it's hard work.
And if there's a job to be done, I'm going to get it done.
The very first thing I saw to in the bill is that there would be no
taxes, no additional costs, and no added red tape at the wellhead. I
knew we needed to keep this bill away from production because we need
more energy in this country, and putting taxes on the folks who produce
it makes then produce less energy, not more.
Once I saw that oil and gas producers would not be covered by the
legislation, I noted other improvements that had to be made.
The first thing was that portions of the bill threaten to put small
refiners out of business. Smaller refiners process below about 200,000
barrels a day, while larger refiners typically process closer to 1.5
million barrels. The difference is drastic. Despite their small size,
small refiners still supply about 11 percent of the United States
market, serving mainly rural areas and military installations.
The legislation as reported from committee contained only two percent
of available allocations for the entire refining sectors stationary
emissions, even though refiners emit 3.8 percent of carbon across our
economy. Small refiners operate at extraordinarily thin margins and
would be fighting for that limited allocation with super-majors like
ExxonPhillips, Chevron, and ConocoPhillips. Smaller companies would
likely not survive.
If refiners close in rural areas, gas prices there would have to
skyrocket in order to attract supplies from the coasts and other
refining centers. Thousands of job losses from refinery closings would
also result.
To prevent this terrible situation from coming to pass in rural
America, I proposed that small refiners receive an allocation for all
of their stationary source emissions and further mechanisms that would
limit their exposure to the volatility that may exist in the market for
allowances for fuels.
I am very pleased that this provision has been included in the bill.
Additionally, I was deeply concerned with the economic livelihood of
180,000 Southern New Mexicans in my Congressional district who get
their power from rural electric coops. While the bill's sponsors claim
that electric utilities were ``held whole'' with allowance allocations
when the bill was reported out of committee, in reality there were
regional disparities that unfairly punished rural electric coops. For
example, in regions that possess abundant sources of carbon-neutral
electricity like hydro and nuclear, consumers would receive far above
their needed allocations. But in New Mexico and other states that rely
in large part on coal and other carbon sources for electricity,
consumers would only receive a portion of the allowances they need to
cover their carbon emissions.
To remedy this problem, I proposed that emission allocations be
distributed on the basis of carbon intensity rather than the number of
people who receive the electricity and that no utilities should receive
more than 100 percent of allocations. Allocations over 100 percent
would then be redistributed to consumers in places like New Mexico.
I also proposed the same carbon molecule shouldn't be given
allowances twice in its life cycle in one part of the country, while a
carbon molecule being used in New Mexico receives zero allocations.
Now, we didn't get everything we asked for. But working with Chairman
Collin Peterson of the Agriculture Committee and the National Rural
Electric Cooperatives Association, we were able to get language in the
bill that will protect rural electric coops from costly rate hikes.
Madam Speaker, this bill is not perfect. In fact, it is far from
perfect.
We need to do more for rural coops. We need to improve this bill so
that it promotes the use of clean burning natural gas.
I do thank my friends on the Energy and Commerce Committee for
working with me to address my concerns regarding small business
refiners and rural electric coops.
Mr. JORDAN of Ohio. Madam Speaker, I rise today in opposition to this
bill. Simply put, this is bad policy for America, particularly the
Midwest. In an independent study, my district is the fourth-most
impacted district in the nation by this disastrous legislation. The
parts of our nation that are powered by coal-burning plants and are
heavy in manufacturing and agriculture--like the part of Ohio I get to
represent--will be devastated.
Make no mistake, we are about to vote on the largest tax increase and
transfer of wealth in American history. In a misguided attempt by the
federal government to put a command and control bureaucracy in charge
of our national energy economy, this Congress will raise the energy
costs of every American who drives a car or turns on a light switch.
And for what? Even supporters of this legislation admit that this bill
will have a negligible impact on global temperatures.
By unilaterally disarming ourselves, we become less economically
competitive for the 21st century. We are preparing, Madam Speaker, to
cede our global leadership role to foreign competitors by capping our
growth and innovation, and trading even more manufacturing jobs
overseas.
Republicans have a better way forward. We have an all-of-the-above
energy solution that increases domestic production and use of our own
resources and creates incentives to move us toward clean, renewable,
and reliable sources of energy like nuclear, wind, solar, and bio-
fuels. And we do it the way America has always done it--through the
ingenuity and innovation of the American entrepreneur and worker, not
top down federal government mandates. I encourage my colleagues to vote
down this National Energy Tax and to support real American energy
solutions.
Ms. KILPATRICK of Michigan. Madam Speaker, I rise in strong support
of H.R 2454, the American Clean Energy and Security Act (ACES) of 2009.
This long overdue, necessary, and needed step will make the earth a
better place, reduce our dependence on foreign oil, by cutting our use
of foreign oil by more than five million barrels per day. The cost of
this legislation is just 22 to 30 cents per day--less than the price of
a postage stamp--or $80 to $111 per year, according to the EPA. This
bill means more than 1.7 million jobs for our nation, 54,000 for the
State of Michigan and 23,000 jobs for the City of Detroit. In order to
ensure that we no longer import hundreds of barrels of oil per day, to
have cleaner air, cleaner land, cleaner water and a better future for
my grandchildren and all children, most, if not all, Americans are
willing to make that investment.
This bill represents the largest investment in jobs by our government
since the Great Depression. Michigan, and America, must become part of
the new technology which is renewable technology. The factories and
industries that once built cars and trucks can now build wind turbines,
solar panels, and help get our electrical grid more efficient and
effective. Replacing our nation's old-fashioned, outdated, outmoded and
obsolete fossil fuel based energy production equipment will result in
new research, new manufacturing, new energy sources and new jobs.
Michigan desperately needs this legislation.

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I am blessed to represent the people of the 13th Congressional
District of Michigan. The 13th Congressional District of Michigan has
the highest percent and number of low income families in the State of
Michigan. Contrary to what opponents of this bill say, this bill will
not add to the already burdensome pain our citizens have already
endured and continue to endure. Among other things, the bill provides
$40 per month to low income families to help offset potential increases
in energy. In fact, the Congressional Budget Office (CBO) has estimated
that the bill would actually save low income consumers money on their
utility bills. The wealthiest twenty percent of American households
would only experience modest, affordable rate increases.
This bill will create the largest growth in jobs in the private
sector since the Great Depression. According to the Environmental
Protection Agency and the Congressional Budget Office, 1.7 million jobs
will be created that cannot be resourced to other countries. These are
good paying and secure jobs that will restore businesses and bring
economic stability to our cities, counties and states. According to the
Political Economy Research Institute, Michigan stands to gain 54,000
jobs or 5.4% jobs for every resident in the state. That means 23,000
new jobs in Detroit alone.
This legislation is the work of many Committees and has been
carefully crafted to avoid any undue burdens on agriculture and rural
families. Farmers spend more money than any other industry on energy,
which only underscores the fact that we need new energy policies that
will lower their costs and lower their dependence on fuel. This
legislation provides farmers and the agricultural industry with unique
opportunities to make money in energy, through siting windmills or
solar panels on their lands, or growing crops suitable for the
production of biofuels. The bill provides assistance to farmers and
agricultural businesses as we transition to renewable energy by
providing them with free emissions allowances.
This legislation does not force other countries to reduce their
emissions. This legislation cannot do that, anyway. It does show the
world that the United States is ready to take the lead in the fight
against climate change. China and other European countries that have
relied on fossil fuels have shown a willingness to start the fight
against global warming. This is our opportunity, once again, to be the
world leader that we have always been.
The reduction of the greenhouse gases is not only good for our health
and our children's health--it sets the nation on a new pathway using
Free-Enterprise principles. Polluted air affects our elderly and young
people the most. That's why the American Lung Association supports this
bill.
This bill is 30 years overdue, if we had started back then, we would
not only be much less dependent on foreign oil, but our water, air and
earth would be cleaner. For the government to involve itself in the
public health, the economy and national security is the oldest role of
the government in the United States. This partnership of the government
in these goals has added to the quality of the life we enjoy.
We have the opportunity, and I will say the responsibility to grow
jobs in Detroit, Michigan and America. We have a duty to promote
renewable energy, clean the air, clean the water, clean the earth and
deal with climate change. The nation that leads the effort toward clean
and renewable energy will not only make our world a better place for
our children, our grandchildren, and our families, but it will lead the
world economy for the next hundred years. This is that bill, and that
is why I voted for H.R. 2454, the American Clean Energy and Security
Act of 2009.
Ms. HERSETH SANDLIN. Madam Speaker, today the House is voting on a
bill that is designed to shape the course of our nation's economy and
way of life for decades to come. Unfortunately, I believe the process
has been too rushed, and I cannot support the bill in its current form.
I believe it's imperative for Congress to address climate change. I
agree with the scientific consensus that human activity has
substantially increased the accumulation of greenhouse gases and is
contributing to a rise in average global temperature. This rise
threatens to create a number of dramatic and negative impacts. With
much of South Dakota's economy dependent on agriculture, which in turn
depends on our climate, global warming could have a profound effect on
South Dakota's economy and our way of life.
Moreover, the alternative to no action by Congress is action by the
U.S. Environmental Protection Agency (EPA) under the Clean Air Act to
step in and in a more punitive fashion dictate rules and impose costs
on industry. Given the complexity both of the climate change problem
and the steps needed to address it, we need to take time to get it
right. The stakes are simply too high for a rushed solution that can
potentially create more problems than it solves.
While I can't support the bill before the House today, it has already
come a long way from where it started both in its discussion draft form
and in the form the Energy and Commerce Committee approved. Both of
those versions were imperfect and incomplete and would have imposed
regional inequities on a greater scale than the legislation before the
House today. Since the committee approved its version of the bill,
there have been some positive changes made, most notably in the
agricultural sector.
Important and common sense improvements have been made that go a long
way towards recognizing the value that agricultural producers in South
Dakota can bring to the climate change issue. I commend Agriculture
Committee Chairman Peterson's efforts as he worked together with many
members of the Agriculture Committee to ensure that agriculture's
concerns are addressed in this legislation. This has been a priority
for me over a long period of time, and I am pleased with the progress
made.
The inclusion of an agricultural and forestry offsets program will
enable farmers, ranchers and forest owners to fully participate in a
market-based carbon offset program, earning income for activities they
undertake to address global climate change while also ensuring
environmental integrity and protecting early actors. Importantly, these
provisions put the U.S. Department of Agriculture (USDA), not the EPA,
in charge of regulating the use of farm and forestry projects intended
to offset carbon dioxide emissions from industrial sources. The EPA
itself has estimated that agricultural and forest lands currently
sequester approximately 12 percent of our nation's carbon emissions and
that the agriculture and forest sectors can sequester up to 25 percent
of emissions. As such, the agriculture and forestry industries must
play an essential role in efforts to mitigate climate change.
I am pleased that the manager's amendment also corrects the
controversial and unproven methods for calculating indirect emissions
through the lifecycle greenhouse gas analysis for biofuels. EPA's
current indirect land use proposal would be put on hold for five years
pending a needed scientific study and consultation with federal
agencies and Congress. Importantly, USDA, the Energy Department or EPA
could veto the results of the study if it is not based on sound, peer-
reviewed science. The bill also makes it very clear that agriculture
and forestry sectors will be exempt from the greenhouse gas emission
reduction requirements.
Lastly, this bill ensures that Wall Street speculators will not be
able to further drive up energy costs through dark market and secretive
trading of derivatives of carbon allowances, offset credits, or
renewable electricity credits by requiring that all carbon derivatives
trading is conducted only on Commodity Futures Trading Commission-
regulated markets.
However, while I am supportive of many of the changes made to the
bill that stand to benefit agriculture, serious substantive and process
concerns remain when it comes to doing right by rural America. The
following represent some of my concerns.
I have heard from several utilities serving South Dakota, such as
Black Hills Corporation, which serves tens of thousands of South
Dakotans, that the allowances for emissions in the bill still aren't
fairly distributed and this disparity could mean dramatic rate hikes
for its customers in South Dakota.
Additionally, the bill does not adequately fix the flawed definition
of renewable biomass in the Renewable Fuels Standard (RFS) or in the
proposed Renewable Electricity Standard (RES). Again, the definition of
biomass has improved greatly from the highly restrictive definition
included in the discussion draft. However, the flawed definition used
in the final bill before the House today unnecessarily and unwisely
excludes much federally-sourced biomass from counting toward the RFS
and a new RES. It also overlooks the essential role forests can and
should play in sustainably generating renewable energy, ensuring our
nation meets the cellulosic biofuels mandate in the RFS, moving our
nation toward energy independence, and creating jobs in rural
communities across the nation. I continue to believe strongly that we
can take advantage of this amazing potential within the existing
protections provided under current environmental laws and responsible
forest management policy.
I have worked for nearly two years to broaden the biomass definition
to allow for federally-sourced biomass to count toward the RFS and have
urged its inclusion in this legislation, as well as the application of
this definition to the RES. Overall, a federal RES presents tremendous
economic opportunities for South Dakota in large part because of our
state's tremendous wind potential. That is why I was a strong supporter
of including an RES in the 2007 Energy Bill, and helped generate
support for the RES Amendment when it passed the House. An RES has the
potential to create

[[Page H7663]]

thousands of jobs and generate economic development all across South
Dakota, for farmers, ranchers, and rural communities, as well as our
sovereign Native American tribes. And much of what is in the RES in
this bill presents great opportunity for South Dakota.
However, the definition of biomass added in the manager's amendment
is still flawed. I am concerned with the ``harvested in environmentally
sustainable quantities'' requirement, which I think invites new
analysis, appeals and/or litigation about biomass in general, but more
specifically, about trees that have been killed by fires or insect
epidemics. Likewise, I'm concerned with the ``old growth'' and ``late-
successional'' forest stands restriction because there is no generally
accepted definition of either term, and the bill doesn't define either
term. So, that would leave an avenue open for challenges, and would
leave uncertainty about supply for potential investors. These are some
but not all of my concerns regarding the biomass provisions included in
the manager's amendment. I hope they will be addressed during the
remainder of the legislative process.
Underlying these specific policy concerns are serious concerns about
the rushed process for such an important and consequential bill. This
bill is intended to help guide the economic future of our nation for
decades and I think the process of fixing the bill since it's been
approved by the committee has been too rushed, and has raised too many
questions about whether the concerns of rural America are adequately
addressed. Therefore, I will vote against this bill, but I hope that
the legislative process will address these concerns, and ultimately, a
bill can be presented to the House that treats South Dakota and rural
America fairly as it moves the nation toward the new energy economy and
addresses the real threat of climate change for our nation's future.
Mr. ETHERIDGE. Madam Speaker, I rise reluctantly to speak on H.R.
2456, the American Clean Energy and Security Act of 2009.
This is not a perfect bill, and I will work for its improvement
before it comes back here for another vote.
However, one thing is clear to most Americans: the time for action is
now. Last summer we had gas prices that hit more than $4 per gallon.
Last winter some folks could not afford to heat their homes. We need to
start a clean energy economy that will reduce our dependence on foreign
oil and position America as a leader in a new technological industry.
America has traditionally been a global leader in innovation and
economic growth, and this legislation takes a first step to get America
running on new energy technologies. We have the technology and the
research infrastructure to create new ideas. We have talented people
ready to go to work. And we certainly need the jobs, especially in
North Carolina. This bill will put people to work creating the
industries of the 21st Century.
We have seen that our current energy policy is not working. By doing
nothing, or delaying action, we risk further crippling our economy.
That is not a risk we can afford. We will continue to use oil, coal and
natural gas, solar, wind, hydroelectric, and nuclear, but should also
create new sources of energy and develop efficient technologies. We
need to start an energy economy today, with a policy of ``all of the
above.''
This is an economic imperative, to create jobs and to prevent spikes
in energy costs. This is a national security priority, to reduce our
dependence on foreign oil and to keep the hundreds of billions of
dollars we send overseas here at home. This is a competitiveness issue,
to make America a leader in an emerging industry and promote research
and development here in the U.S.A.
North Carolina has always been a leader in technology, and has the
potential to meet America's energy needs through our agricultural
strength. Moving forward towards a clean energy economy will be a boon
for North Carolinians and the whole country.
This is not a perfect bill. It contains some protections for low and
moderate income families, but does not do enough for the middle class.
It makes some efforts to prevent regional price differences, but does
not do enough to recognize the investments North Carolina's rate payers
have already made. It takes some steps to establish goals for
international climate negotiations and to ensure that the United States
is not placed at a competitive disadvantage, but it should do more to
protect American companies if we take responsible action and other
nations do not.
I will reserve the right to work to improve this bill to improve its
consumer relief provisions, promote regional fairness, and ensure that
our businesses have a level playing field with their international
competitors. But I will vote for this bill today to move us forward
into the future that America needs and deserves.
Mr. MOORE of Kansas. Madam Speaker, I commend Chairman Waxman and
Chairman Markey for crafting this truly historic energy legislation
that will help our country make the transition to a new, clean energy
economy.
I want to also thank Chairman Waxman for including a bill I drafted,
H.R. 2246, in the manager's amendment. This bipartisan legislation,
which I introduced with my friend from Illinois, Congresswoman Judy
Biggert, will establish the Community Building Code Administration
Grant, or CBCAG, Program.
This competitive grant program will help with local building code
enforcement by authorizing $100 million over 5 years, capping awards at
$1 million per recipient, and requiring recipients to match a portion
of funds received.
Much attention has been focused on the huge energy savings that can
be achieved by increased energy efficiency in buildings, which consume
nearly 40 percent of all energy and 70 percent of the electricity
produced in the U.S.
But building codes don't make a difference unless they are enforced
by local code officials who are properly trained and have sufficient
resources to inspect buildings for compliance. It will save taxpayer
dollars as well--according to a study conducted by the National
Institute of Building Sciences, for every $1 spent on mitigation saves
$4 in future disaster assistance.
H.R. 2246 is supported by the International Code Council, the
Alliance to Save Energy and many other organizations. Again, I'm
pleased my legislation has been incorporated into the manager's
amendment to the American Clean Energy and Security Act.
I support the underlying bill and urge members to vote in favor of
passage. But, I also strongly urge Chairman Waxman and Leadership to
strengthen the Renewable Electricity Standard (R.E.S.) during the
Conference Committee.
I commend Chairman Waxman and Chairman Markey for crafting this truly
historic energy legislation that will help our country make the
transition to a new clean energy economy.
The strong R.E.S. that we started with has unfortunately been watered
down so significantly that it will not even provide an incentive to
maintain current levels of renewable deployment.
Kansas utilities, like those of so many other states, are on track to
cost-effectively meet a state R.E.S. of 10 percent by 2011. A federal
goal of 6 percent by 2012 would provide no incentive for new
investments in wind development or manufacturing.
That means that more jobs will be left on the table and that the U.S.
will continue to lag behind the 37 countries around the world that have
a binding, long-term commitment to renewable energy development.
The global marketplace is watching us. Companies both here and abroad
are waiting to see if we enact an R.E.S. that will provide a true
commitment to transitioning our economy to cleaner forms of energy.
They are making critical decisions on whether and where to build new
manufacturing facilities or retool their companies to create new, high-
quality jobs.
We can decide right now if we are going to build more of the new
energy components right here in the United States or continue to import
them from overseas.
Kansas is thrilled that Siemens chose to build nacelles for wind
turbines in Hutchinson, creating 400 jobs in one small town and supply
chain opportunities for hundreds of companies in the region. Several
recent reports project job growth in the tens of thousands in our
industrial heartland if we make a real commitment to renewable energy.
A stronger national R.E.S. is the most important policy tool we have
to make sure new energy projects utilize American-made components
manufactured by American workers.
Harnessing renewable energy also builds our rural communities--this
``new crop'' sustains farmers and ranchers and keeps the schools,
clinics, roads and services strong in America's small towns.
A stronger national R.E.S. would also benefit consumers by holding
down energy prices and protecting them against the price spikes of
fossil fuels by promoting fuel diversity.
In fact, numerous independent studies have shown that the R.E.S.
saves consumers money on their energy bills in all regions of the
country.
In addition, a strong national R.E.S. will ensure that currently
available clean technology is deployed quickly to help achieve greater
emission reductions in the future at a lower cost.
And perhaps most importantly, Americans are demanding bold policies
that will push our country in a new direction on energy and ensure a
clean, secure energy future for America.
In April a national poll found that 75 percent of Third District
residents support a R.E.S. of 25 percent by 2025. This support is
strong across all counties of my state and throughout all regions of
the country.
That is why I urge Chairman Waxman and House Leadership to strengthen
the R.E.S. as this legislation moves forward.
Ms. MARKEY of Colorado. Madam Speaker, I rise today in support of the
transmission

[[Page H7664]]

siting section of the manager's amendment to the American Clean Energy
and Security Act of 2009. Yesterday, Congressman Inslee and I offered
this amendment to strengthen siting authority within the Western
Interconnection, which extends from Colorado to the west coast.
My home state of Colorado has enormous renewable energy potential,
but our outdated transmission infrastructure is inadequate to bring
these resources to where they are needed. According to the Renewable
Resource Generation Development Areas Task Force, Colorado has eight
potential high concentration wind development areas and two potential
high concentration solar development areas capable of generating more
than 96 GW and 26 GW of energy, respectively. These estimates show that
Colorado is more than able to generate excess renewable electricity for
export to other states, and does not take into account smaller scale
projects or distributed generation.
For western states like Colorado, the renewable energy potential is
there, but the areas with the best wind and solar resources are often
in remote areas that lack adequate transmission lines to transport the
energy to where it is needed. As I travel to the Eastern Plains of
Colorado, the landowners often tell me they are more than willing for
wind and solar developers to install wind turbines and solar panels on
their property, because for them it is an economic development tool.
Ranchers can receive compensation by putting wind turbines on their
land and their cattle can still graze under the towers.
Our current transmission system has evolved from local demands
without an integrated national plan. Implementation of interstate
transmission lines requires coordinating the regulatory permitting
processes in each of the individual states and localities that the line
will traverse. Our amendment builds upon the existing regional planning
section of the American Clean Energy and Security Act and adds a siting
plan for the Western Interconnection. This siting plan gives the
Federal Energy Regulatory Commission backstop siting authority to
ensure the construction of high-priority interstate transmission lines.
Self identified regional planning entities will build a national
transmission plan from the bottom up and with higher priority given to
meet the demand of deploying renewable electricity generation projects.
Our amendment will give ample deference to states and will encourage
state and local participation throughout the planning and siting
process.
In addition to the Inslee/Markey transmission siting amendment, I
would like to express my strong support of Chairman Peterson's
agriculture amendment. My district in eastern Colorado contains some of
the best agricultural land in Colorado. Weld County, in the 4th CD, is
the number one ranking county in the state for agricultural products
sold and eighth in the nation. I worked hard with my colleagues on the
Agriculture committee to ensure that Colorado's farmers and ranchers
will be able to benefit from the programs in this legislation.
I support authorizing the Secretary of Agriculture to carry out the
agriculture and forestry related offsets programs in Title V of the
American Clean Energy and Security Act. The United States Department of
Agriculture conservation programs and the Department's extensive
knowledge of optimizing agricultural practices leave them well poised
to establish measurable and reliable offsets. Furthermore, the
multitude of USDA offices near likely offset projects leave the
Department in a better position to provide regulatory and technical
assistance to farmers and ranchers.
Finally, I would like to express my support of amending the
definition of renewable biomass in the renewable electricity standard
and the renewable fuels standard of the Energy Independence and
Security Act of 2007 to include infested trees removed from public
lands. The Forest Service expects this bark beetle outbreak will kill
most of the mature lodgepole pines covering 2.2 million acres in
Colorado and southern Wyoming within the next 5 years. Some estimates
indicate almost 2 million acres the have already been decimated. While
it is not our intention to incentivize unnecessary cutting in our
public lands, work is already being done in our public lands to remove
trees killed by bark beetles to reduce the threat of wildfires and
preserve forest health. We should utilize this available waste.
We have an opportunity to be smarter about the way we create and use
energy. By utilizing the great renewable electricity potential in the
west, we can invest in our future and put Americans back to work.
Mr. FATTAH. Madam Speaker, I thank you for allowing me the time to
speak on this topic of paramount importance. Climate change and the
problem of rising carbon emissions is one of the most important public
policy quandaries that the nation currently faces. Congress needs to
take the lead in helping to solve this issue. Therefore, I implore my
fellow members of Congress to vote yes and help pass the American Clean
Energy and Security Act, H.R. 2454.
As you well know, H.R. 2454 is a broad-based bill that includes a
number of initiatives on clean energy, economic development, and
climate change. Taken together, these initiatives will create the
national policy framework and all important funding streams that are
needed to adequately tackle the threat posed by rising carbon
emissions.
Moreover, the incentives contained within H.R. 2454 will help
strengthen and support those emerging renewable energy industries to
help create jobs that will enable millions of Americans to get back to
work. I know that these jobs will be created because I have already
seen it happening in my home state of Pennsylvania. I have seen the
jobs created by the wind and solar manufactures, and I have spoken to
the leaders of local Philadelphia business who have told me how
important the clean energy industry is to the Philadelphia region.
Moreover, I have read the studies that show how many jobs will be
created if Congress passes H.R. 2454. For example, in a 2008 report
published by the Clean Air Council entitled ``Job Opportunities for the
Green Economy,'' it was estimated that over 533,000 jobs in
Pennsylvania alone will see growth or wage increases by putting global
energy solutions to work. As the world moves into a less carbon
intensive future, these new industries will allow the country to thrive
as they become the new economic engines that power future growth.
I believe that our nation needs a comprehensive energy strategy that
makes our nation more energy efficient, decreases our reliance on
foreign oil, creates jobs, and helps prevent increases in carbon
emissions. I am not alone in my beliefs. People throughout the nation
want Congress to get moving on reducing carbon emissions. These
Americans understand that climate change is one of the most important
issues that face the nation today. They understand that the rapidly
changing climate that is due to rising carbon emissions is having a
profound impact on the nation's forests, coastal areas, drinking water,
and other important ecosystems that human beings rely on.
Therefore, I implore my fellow members of Congress to pass the
American Clean Energy and Security Act. Help put our nation on track to
a cleaner energy future.
Mr. OLSON. Madam Speaker, this Democratic cap-and-tax plan is simply
a shell game designed to funnel billions of taxpayer and industry
dollars through government to fund their restrictive energy plan. Faced
with an outcry over the impact their plan will have on family budgets,
Democrats have tried to buy off opposition by offering ``rebates'' to
help offset increased costs.
Let's be clear, this rebate is nothing more than the government
giving you your own money back. It is typical Washington: steal your
wallet, and pat themself on the back for giving you back the spare
change. And let's not forget the fundamental failure of this job-
killing plan--it doesn't even reduce carbon emissions.
According to analysis from the Heritage Foundation, hard working
folks in my congressional district alone will lose nearly 5,000 jobs in
2012 alone. That is just one year of job losses in one district and the
numbers only go up from there. And the average household in Texas could
pay an additional $1,136 for household goods and services over a given
year.
My office has received 680 calls this week on cap-and-tax and 671 of
them strongly urged me to oppose this bill. In these times of economic
hardship, Congress must be focused on creating and maintaining jobs. My
Democratic colleagues who are advocating for this legislation tout the
fact that more ``green'' jobs will be created by this job.
What they fail to mention is that good paying jobs that already exist
in this country will be shipped overseas and our national unemployment
rate will increase. We have already seen this happen in Spain, where a
study found that for every one green job created two other jobs were
lost. I do not want this for my constituents, I do not want this for
the businesses in the 22nd District of Texas, and I do not want this
for the American people.
Madam Speaker, this is simply a scheme to restrict needed energy and
decide who is worthy of working in which government approved energy
job. That is not the role of government and Americans should be
outraged. The stimulus plan was designed to create jobs through
billions and billions of tax dollars. It has not created the jobs it
promised and this energy shell game will not work either.
Mr. TIAHRT. Madam Speaker, I heard of a climatologist who went to
apply for a job recently. During his interview, he was asked, ``What do
you predict will happen with the earth's climate next year'?'' He
immediately replied, ``Whatever you want me to predict.''
Unfortunately, this joke seems to hit a little too close to home,
when we are considering

[[Page H7665]]

global warming legislation. Rather than responding to serious questions
with serious answers, Congress is replying with what we think people
want to hear. Rather than considering all angles before offering a
solution, Congress is rushing through legislation in hopes to score
points with voters back home. And instead of basing a bill on sound
scientific data, we will be considering legislation that is devoid of
input from this side of the aisle.
I rise today to express my strong opposition to Waxman-Markey ``cap
and tax'' bill. I believe there are three interrelated problems with
this misguided legislation. I am concerned with the process by which we
have arrived at the point we are today. I am concerned with the
political showmanship that has gone on as the bill was written. And I
am concerned with the policy itself, which bears the tragic scars of
both the process and the politics.
Madam Speaker, from the beginning of the 111th Congress to the
present, the cap-and-tax bill has been subjected to unfortunate abuses
of the legislative process. In April, the Energy and Commerce Committee
held four days of hearings, with the intention of, according to the
Committee's website, ``examine the views of the Administration and a
broad range of stakeholders,'' on a discussion draft of Chairman
Waxman's bill. However, these hearings reflected only the Chairman's
perspective. Only four of the twenty-one witnesses called before the
Committee expressed any opposition to cap-and-tax, despite a petition
signed by more than thirty thousand meteorologists, climatologists, and
other scientists stating their skepticism about the evidence of man-
made greenhouse gases being responsible for increases in the earth's
temperature. Contrary to claims made by the Committee, and witnesses at
the hearing, there is no ``overwhelming consensus'' in favor of the
hypothesis of human-caused global warming. There was also a report
issued by Republicans on the Senate Environment and Public Works
Committee outlining the dissent views of more than 700 scientists
opposing the idea of manmade global warming. Clearly, no consensus has
been reached.
Madam Speaker, This bill was drafted without input from our side of
the aisle. At no point was any Republican consulted regarding the
contents of the bill. In the rush to get the legislation passed through
Committee, it seems no one had time to read the entire bill, or figure
out what it means. Committee members repeatedly asked questions
regarding the potential cost of particular provisions or amendments,
but received no answers.
All of this raises the question, ``why''? Why was the bill rushed
through the Committee, With hardly enough time to read it, let alone
determine the impact that it would have on American taxpayers, farms,
and businesses? The only answer I can come up with is the desire on the
part of some in this body to score points with their voters back home.
Which brings me to the third problem with Chairman Waxman's cap and
tax bill--its just bad policy. Earlier this week, Investor's Business
Daily had a front page article about the failures of Europe's program,
called the Emissions Trading Scheme, or ETS. The article cites numerous
studies finding that the ETS has significantly increased energy prices,
``with `uncertain' effects on greenhouse gas emissions.'' That hardly
sounds like a model of success that we should be emulating here in the
United States.
Proponents of the cap and tax bill claim that they have learned from
Europe's mistakes, but I disagree, Madam Speaker. The article
identifies the giving away of the program's carbon allowances as the
largest reason for the program's failure. This bill follows that same
model, giving away roughly 85 percent of the emissions allowances.
The entire idea of a cap and trade program fails in practice. We are
told, ``The cost of polluting will be paid by the polluters.'' And
believe me, the authors of this bill expect them to pay a hefty price.
In fact, President Obama's budget assumes that even with the sale of
only 15 percent of the total emissions permits, the federal government
will still take in more than $650 billion. As the cap gets lower, and
there are fewer permits available, the cost for ``polluters'' is going
to grow ever higher. But that is exactly what the authors want.
President Obama recently stated that the only way for a cap-and-trade
system to work is for energy prices to ``skyrocket.''
There is nothing in the bill to keep the ``polluters'' from passing
those skyrocketing costs on to the consumers. In fact, they will be
forced to so. Any business that cannot pass the costs on to consumers
runs the risk of being driven out of business. In the end, it will be
the American taxpayer that foots the bill for this program, in the form
of higher prices at the pump, higher home energy bills, and lost
economic growth. But don't just take my word for it. Even the director
of the Congressional Budget Office has said that, ``under a cap-and-
trade program, consumers would ultimately bear most of the costs of
emission reductions.''
One analysis of this bill found that if the standards within the bill
are met, by 2035 Americans will see gas prices rise 74 percent,
electricity prices increase by 90 percent, and a loss of at least
850,000 jobs every year. The average American household will see its
annual energy bill go up by nearly $1,500. For my home state of Kansas
in particular, we are going to have to purchase an estimated $206.8
million worth of carbon credits. That is $206 million more that Kansans
are going to have to pay in energy costs every year. My district will
be particularly hard-hit, as estimates show my district standing to
lose nearly half a billion dollars of production in 2012, and more than
5,000 non-agriculture jobs. It's this kind of economic pain that
advocates are counting on to force a reduction in carbon emissions.
The European system proves this idea doesnt work. With no signs of a
reduction in carbon emissions, Europeans have seen their household
energy costs rise by 16%, and the industrial energy costs increase by
32%.
Spain is an especially poignant example of the failure of the
European system. They committed to reaching the benchmarks set out by
the Kyoto Protocol, with renewable energy standards, so-called green-
collar jobs, and a commitment to reduce their carbon emission levels.
But the high cost of energy in Spain has destroyed their economy, which
is currently facing a 17.5% unemployment rate. Proponents of this bill
say that we will be creating new, green jobs. But most of these jobs
are temporary construction jobs that go away once facilities, like wind
farms for example, are built. In Spain, for every 4 jobs that were
created, 9 were lost due to the higher cost of doing business under the
Emissions Scheme. We should avoid going down this same path.
There is huge potential for exploitation of the system, on multiple
levels. Especially with permits being given out, rather than auctioned,
government officials are in a prime position to divert additional
credits towards industries or companies of their choice. There is also
the possibility that utilities here in the United States could follow
the lead of one European company that immediately raised their rate by
70%, explaining to customers that the rate hike was necessary to cover
the costs of cap-and-trade. But this utility company was given more
credits than it needed, and sold them on the open market.
Tack on a renewables standard to this bill, and we have the perfect
recipe for failure. No place that has implemented a renewable standard
has ever been able to meet the required levels. And there is little to
indicate that a federal standard would be any different. As a 2008
article in the Energy Law Journal stated, ``The DOE has little, if any,
experience in administering a program on the scale of a national RPS,
and has shown no indication that enforcement of a major program is
within the agency's capabilities...[this is] an area in which the DOE
has already failed to show effective leadership.''
So what we have here is a bill that has been rammed through with no
minority input, to create a system that is ripe for abuse, costs the
American taxpayer thousands of dollars, cripples our businesses, and in
the end, has no measureable result. This is a bill I cannot support,
and urge my colleagues to reject as well. Instead, I would encourage my
colleagues to join me in supporting the American Energy Act, a
comprehensive energy bill that increases access to domestic energy
sources, encourages conservation, and promotes the increased use of
renewable sources of energy.
Across this country, we are, once again, seeing gas prices rise.
Since the beginning of the year, gas prices are up 60 cents, and crude
oil has raised more than $20 a barrel, with no end in sight. Just last
week, Russian oil executives predicted that crude prices could reach
$250 per barrel.
It is possible for us to relieve some of this pressure by tapping
into our own vast resources. The Department of Energy estimates that
nearly 20 billion barrels of recoverable oil lie offshore beneath
restricted waters, the equivalent to nearly 30 years worth of current
imports from Saudi Arabia. Substantial offshore natural gas reserves
are also restricted. Even though longstanding restrictions on offshore
energy production were lifted last year, the process of leasing these
areas falls under the jurisdiction of the Department of the Interior.
Unfortunately, new Secretary of the Interior Ken Salazar refuses to
allow additional drilling permits, dredging up every excuse not to
produce energy in these areas. The Alaskan National Wildlife Refuge,
reported to hold more than 10 billion barrels of oil continues to
remain off-limits. He has also sought to block progress on oil shale, a
promising source of oil trapped in rock under parts of Colorado, Utah,
and Wyoming. The Department of the Interior has even cancelled some
existing oil and gas leases.
Often, environmental concerns are cited as the reason for opposing
additional drilling. However, technological advances have greatly
increased the safety of drilling. During hurricanes Rita and Katrina,
less than one cup of

[[Page H7666]]

oil was spilled in the Gulf of Mexico, despite damage to more than 120
drilling platforms. There is absolutely no reason why permits for
additional drilling should be denied. Furthermore, revenue generated by
these oil leases will be invested in the development of cleaner,
alternative sources of energy. The end result is a reduced dependency
on foreign oil, lower levels of pollution, and new jobs for Americans,
all without crippling our economy.
Lastly, Madam Speaker, the American Energy Act includes one key
source that could provide clean energy without emissions nuclear power.
The Department of Energy has stated that the best way for energy
companies to reduce their carbon emissions is to increase their use of
nuclear energy. Despite encouragement from DoE, and the fact that that
it has been proven safe by countries like France, where more than 80%
of their electricity is generated by nuclear power, the Waxman-Markey
bill does nothing to encourage nuclear power.
Instead, this administration has begun to walk away from the hundreds
of millions of dollars spent on the nuclear storage facility at Yucca
Mountain, Nevada. The American Energy Act would provide the Nuclear
Regulatory Commission authority to complete its review of the Yucca
Mountain facility, repeal the limitations on Yucca's Mountain's storage
capacity, and establishes a method for recycling spent nuclear fuel in
the U.S. Furthermore, it would reduce the bureaucratic hoops and length
of time required to receive a permit for the construction of new
nuclear plants.
In conclusion, let me again encourage my colleagues to join me in
rejecting the Waxman-Markey cap-and-tax bill that would cripple our
economy, without addressing their environmental concerns. Instead, lets
support the American Energy Act, which provides real solutions for our
energy problems in an economically, and environmentally sound manner.
Mr. BURTON of Indiana. Madam Speaker, if this energy tax passes, the
estimated job loss or my district is an average of 3,702 jobs per year
from 2012 through 2035. If this bill passes it will mean financial ruin
for thousands of my constituents.
5th CD Gross State Product Loss for 2012: $361.7 million
5th CD Gross State Product Loss on average from 2012-2035: $720.1
million
5th CD Personal Income Loss in 2012: $458.7 million
5th CD Personal Income Loss on average from 2012-2035: $265.7 million
5th CD Non-farm Job Loss in 2012: 4,552
5th CD Non-farm Job Loss on average from 2012-2035: 3,702

the consequences of cap and tax

Over 1,200 pages long, H.R. 2454 contains four sections outlining
mandates for renewable energy, mandates for energy efficiency, a cap-
and-tax proposal, and a ``transitioning'' section focused on
forestalling expected job loss.

higher Energy Prices

Every consumer will pay for this both directly and indirectly.
Independent researchers, CBO, and the President all agree that this
cost will be passed to consumers.
every provision in the bill either increases the cost of energy
directly or tried to keep it from increasing too much.
Example: new federal renewable electricity standard that would likely
cause electricity prices to spike.
This is the ultimate regressive consumption tax to the tune of nearly
$3,000 per year according to the Heritage Foundation.
The costs per family for the whole energy tax aggregated from 2012 to
2035 are estimated to be $71,493.

fewer jobs

Yesterday in the Rose Garden, President Obama said that Cap-and-Trade
was a ``jobs bill.'' Yet many studies reports rampant job loss through
the year 2035.
A national energy tax would undoubtedly outsource millions of
manufacturing jobs to countries such as China and India.
According to the independent Charles River Associates International,
H.R. 2454 would result in a ``net reduction in U.S. employment of 2.3
million to 2.7 million jobs each year of the policy through 2030,''
even after the ``creation'' of new green jobs.
Green Jobs Are a Proven Failure: According to a recent study that
reviewed the impact of ``green jobs'' in Spain, the U.S. can expect 2.2
jobs to be destroyed for every 1 renewable job financed by the
government. Only 1 in 10 of the jobs actually created through green
investment is permanent, and since 2000, Spain has spent 753,778 U.S.
dollars to create each ``green job,'' including subsidies of more than
$1,319,783 per wind industry job.

government mandates and intervention

This includes new federal mandates on everything from outdoor light
bulbs and table lamps to water dispensers, commercial hot food
cabinets, and Jacuzzis.
Establishes a myriad of new federal agencies intertwined between at
least 21 established agencies with the mission of reallocating
trillions of taxpayer dollars. According the U.S. Chamber of Commerce,
the bill will impose 397 new federal regulations that require
traditional agency rulemakings.
The bill transfers wealth from rural areas to cities. States like
California, Washington, and New Jersey would receive more emission
credits than they need, enabling them to sell surplus credits to
smaller facilities in states like Ohio that receive maybe half of the
credits they need--making the rich, richer, and the poor, poorer.
The bill would also increase the demand for electricity (to fuel
plug-in vehicles via new hybrid incentives) at the same time as the
other portions of the bill cause consumer electricity costs to spike.
Although the bill includes ``free'' allowances for some sectors,
economists agree that even if 100 percent of the industry's emissions
were initially covered by free allocations, the bill's declining carbon
cap will force higher and higher costs onto the American public.
According to the Heritage Foundation, by 2035 this legislation would:
Reduce aggregate gross GDP by $9.4 trillion;
Raise electricity rates 90 percent;
Raise gasoline prices by 58 percent;
Raise residential natural gas prices by 55 percent; and
Increase inflation-adjusted federal debt by 26 percent, or $28,728
additional federal debt per person, again after adjusting for
inflation.
Furthermore, a recent poll shows that 78 percent of individuals
questioned said that a $50 increase in monthly utility bills would be a
hardship.
58 percent of respondents say that they are unwilling to pay any more
than they currently pay for electricity to combat climate change.
To that end, one-half of those polled oppose enacting a carbon tax to
fund energy research (up from 31 percent in 2007).
In addition, the bill:
Creates a Derivatives Market for Companies like AIG: Companies like
AIG and ENRON will be participating in a new derivatives market that is
much more volatile than housing or natural gas. This new unregulated
derivatives market will be more perilous for companies like these than
the traditional ones that got them into trouble in the first place. In
addition, since the created artificial market contains no transparency,
it is more likely to attract traders intent on imposing Ponzi schemes
in the same spirit of Bernie Madoff and swindle thousands of Americans.
Devastates Rural America: Rural households spend 58% more on fuel
than urban residents as a percentage of their income. The Heritage
Foundation estimates farm income will drop by $50 billion by 2035.
Concedes to the Competition: Currently, China accounts for 85% of
global growth in coal each year and is the world's largest annual
emitter of greenhouse gases. China's energy usage rose by 7.2% last
year and they are building approximately two coal fired power plants
per week to keep up with demand. Recently, at a U.N. conference, the
Chinese government's advisory panel on climate change asserted that the
cap and tax targets were too low by stating Given that, it is natural
for China to have some increase in its emissions, so it is not possible
for China in that context to accept a binding or compulsory target. In
addition, India will not agree to any cap on their total energy
production, and many believe India will double their coal-fired-
capacity by 2030.
Discriminates Against Developing Nations: The bill creates a new
program under USAID to provide U.S. foreign aid to developing countries
for their efforts to adapt to climate change. Essentially, the bill is
sending taxpayer funds to encourage third world nations to not develop
carbon emitting energy sources keeping them at a competitive
disadvantage from developed nations for even more decades to come.
Establishes an Unrealistic Renewable Energy Standard (RES): ``Cap and
tax'' does not take into account the fact that additional hydropower,
nuclear and advanced fossil coal power plants cannot be deployed
quickly enough to meet expected growth in electricity demand while also
dramatically reducing greenhouse gas (GHG) emissions. Since renewable
technology accounts for a small percentage of energy demand, consumers
can expect not only higher rates, but more transmission problems during
peak hours of demand. Additionally, the bill preempts at least 23 state
renewable electricity standards.
Includes Davis-Bacon: ``Cap and tax'' expands Davis-Bacon prevailing
wage requirements to many provisions of the bill. This policy has been
shown to increase public construction costs by anywhere from 5 to 38
percent above projected costs for the same project in the private
sector.
Groups Scoring as a Key Vote: 60 Plus Association, Americans for
Prosperity, Americans for Tax Reform (double-rating), Citizens Against
Government Waste, Club for Growth, FreedomWorks, Independent Petroleum
Association of America, National Association of

[[Page H7667]]

Manufacturers, National Association of Wholesaler-Distributors,
National Cattleman Beef Association, National Federation of Independent
Businesses, National Taxpayers Union, Small Business & Entrepreneurship
Council (SBE Council).
Mr. PAULSEN. Madam Speaker, it must be a priority to work
aggressively and prudently as a nation to cut greenhouse gas emissions.
However, I believe we can do this without the current ``cap and trade''
plan we are voting on today.
Reducing emissions and strengthening our environment are important
priorities--priorities I support. However, the ``cap and trade'' bill
before us today is just a fancy way of masking ``tax and spend''--and
it is the wrong approach to addressing this issue.
America needs a comprehensive energy solution to reduce our
dependence on foreign oil and jump-start our economy, but it should not
be at the expense of every American taxpayer.
Analysis shows cap and trade will raise gas prices, raise electricity
prices and eliminate American jobs. Studies have shown up to 2.5
million jobs will be lost, making America less globally competitive.
In the worst recession in over 70 years, this legislation would
exacerbate our situation by increasing energy costs for every sector of
our economy. If the priority is jobs, it is stunning to me that we're
bringing this bill to the floor that will create a national energy tax
on every working family and every small business in America.
There are several common sense, bipartisan solutions that invest in
new, clean and reliable sources of energy. I'm supporting a plan that
aggressively reduces emissions, promotes conservation, creates jobs and
strengthens our environment by promoting nuclear energy--a zero
emissions, renewable source. It also boosts domestic supplies of both
natural gas and oil.
I hope today that we do what is right for America, by voting down
this cap and trade proposal and moving forward with a plan that will
work for--not against--all Americans.
Mr. OBERSTAR. Madam Speaker, I rise today in support of H.R. 2454,
the ``American Clean Energy and Security Act of 2009''.
This bill seeks to promote clean energy use and reduce carbon
emissions in the United States. The legislation will create millions of
new clean energy jobs, enhance America's energy independence, and
protect the environment. Additionally, this bill recognizes the
important role that transportation plays in addressing global climate
change, and I am pleased that the Committee on Energy and Commerce has
worked in concert with the Committee on Transportation and
Infrastructure in crafting key provisions of this bill.
According to the U.S. Environmental Protection Agency (EPA), nearly
30 percent of the total greenhouse gas emissions produced by the United
States comes from the transportation sector, second only to electricity
generation. The U.S. Department of Energy (DOE) reports that the carbon
dioxide emissions from the transportation sector grew 25.4 percent
between 1990 and 2006, an average of 1.4 percent each year. The most
recent DOE data show that transportation produces more metric tons of
energy-related carbon dioxide than the residential and commercial
sectors, and almost as much as the industrial sector.
Nearly all of these transportation-related emissions come from the
use of petroleum products. The transportation sector accounts for 68
percent of the total U.S. petroleum consumption; Americans used almost
14 million barrels of oil each day for transportation purposes in 2006.
According to the Federal Highway Administration (FHWA), the amount of
miles Americans drive each year has grown three times faster than the
U.S. population, and almost twice as fast as vehicle registrations.
Private vehicles are now the largest contributor to household ``carbon
footprints''--accounting for 55 percent of carbon emissions from U.S.
households. Federal policies over the last 50 years, however, have done
little to address the growing problem of greenhouse gas emissions.
A February 2008 report by ICF International released by the American
Public Transportation Association found that a person who switches a
20-mile round trip commute alone from car to existing public
transportation, can reduce his or her annual carbon dioxide emissions
by 4,800 pounds per year. This dramatic energy savings is equal to a 10
percent reduction in all greenhouse gas emissions produced by a typical
two-adult, two-car household. Furthermore, if Americans used public
transit at the same rate as Europeans--for roughly 10 percent of their
daily travel needs--the United States could reduce its dependence on
imported oil by more than 40 percent, nearly equal to the 550 million
barrels of crude oil that we import from Saudi Arabia each year.
To reduce America's carbon footprint and to encourage the development
and expansion of sustainable transportation options, the American Clean
Energy and Security Act will implement a number of initiatives to
significantly reduce transportation-related greenhouse gas emissions.
These provisions represent the next steps to mitigate the negative
impact the transportation sector has on climate protection, while
increasing the livability of our communities nationwide.
Under the American Clean Energy and Security Act, States will receive
allowances for clean energy and energy efficiency investments, and are
authorized to use up to 10 percent of these allowances for certain
transportation projects. States may use allowances to fulfill the local
matching requirement to receive Federal funds for projects like public
transportation system improvements, clean fuel buses, or construction
of bicycle facilities. While this provision offers only a small portion
of the funds needed to address surface transportation-related
greenhouse gas emissions, it is a very good first step.
Additional provisions of the legislation expand the scope of current
surface transportation planning to include emissions reduction
requirements administered by the Department of Transportation (DOT).
The Act requires EPA, in consultation with DOT, to set national
emission reduction goals, but requires DOT to set transportation-
related emissions reduction performance measures for each State and
large metropolitan areas. States and metropolitan planning
organizations (MPOs) must meet individualized transportation-related
emissions reductions targets, and the Act requires public notice of
those targets, including an assessment of how well States and MPOs are
meeting emission reduction goals.
These important transportation planning provisions are also included
in the Surface Transportation Authorization Act of 2009, legislation
that the Subcommittee on Highways and Transit passed unanimously this
week by voice vote, and which I plan to bring before the full Committee
on Transportation and Infrastructure and the House soon after the
fourth of July recess.
These transformational changes to our surface transportation planning
requirements, especially when coupled with dedicated funding for clean
energy transportation projects, will save fuel, reduce emissions, and
advance America's long-sought goal of energy independence.
In addition to these important transportation provisions, I am very
pleased that agreement has been reached to clarify the definition of
renewable biomass. I want to commend the leadership of my Minnesota
colleague, Collin Peterson, Chairman of the Committee on Agriculture,
for his superb advocacy for rural America and the wood product
industry. The new biomass definition and provisions that provide credit
for forestry and wood products for carbon sequestration are essential
to ensure that our vital wood product sector is not disadvantaged in
the climate change legislation.
I am also very pleased that additional language has been added to
ensure that the iron ore sector will receive emission allowances, and I
greatly appreciate Chairman Waxman's willingness to work with my
colleague Bart Stupak and me on this important iron ore mining
clarification.
While I am prepared to support this legislation today, I continue to
have concerns with the climate change bill regarding the border
adjustment mechanism. It is imperative that the final climate change
legislation contain strong safeguards to ensure that our manufacturing
sector is not disadvantaged by imports from nations that have not
implemented carbon reduction technologies.
Without further improvements, it is likely that the steel, wood
product, and other energy-intensive sectors of our economy would face
unfair competition from nations with insufficient environmental
safeguards. I am encouraged by the important contributions that my
colleagues Mike Doyle, Jay Inslee, Charlie Rangel, and Sandy Levin have
made in this area, and I will continue to work with my colleagues to
make additional improvements.
We must also ensure that the final climate change bill addresses
regional concerns regarding the allocation of emissions allowances to
utilities in the Midwest. While I am pleased that improvements were
made to assist rural electrical cooperatives, I remain concerned that
the current formula, which would allocate emissions allowances to
utilities based on a combination of sales and emissions, would unfairly
impact Midwestern power producers, and I am hopeful that further
refinements can be made to ensure regional equity.
For these reasons and more, I support H.R. 2454, the ``American Clean
Energy and Security Act of 2009'', and urge my colleagues to do the
same.
Mr. RAHALL. Madam Speaker, the Congress would be unwise to sit by and
simply allow the Environmental Protection Agency to regulate a
reduction in greenhouse gas emissions, as the agency has been mandated
to do by the Supreme Court. Similarly, it would be a mistake to sit
back and allow other countries to devise international rules that will
affect America's economic and energy interests.

[[Page H7668]]

I do not agree with those who advocate for sitting on our hands and
just saying no to everything, sight unseen. The international community
has no interest in protecting American businesses, and the
Environmental Protection Agency is not required by the Supreme Court to
consider the views of our constituents or the economic consequences to
our communities.
I believe America is the one nation best equipped to lead such a
multinational effort and, in doing so, to strike a balance between
environmental preservation and the preservation of jobs. The hands-off
approach of recent years did nothing to help promote new energy
technologies, or to advance carbon capture and sequestration, or to
protect American jobs.
It is evident that wishing that this complex issue would simply go
away will not lead to better results for our Nation or the people we
represent. And ``just saying no'' to any and all proposals, sight
unseen, is unrealistic and irresponsible.
For those reasons, I chose to work with my colleagues and with
numerous stakeholders--including the coal industry, manufacturers, and
labor--to positively influence this bill and America's climate change
strategies. And for those reasons our coal miners and responsible
industry members have been at the table, too, rather than on the
sidelines.
I thank Chairman Waxman, who has made many concessions in this bill,
and I thank leadership for listening to my concerns about this
legislation and moving to help address them.
As well, I commend my colleague Rick Boucher, from southwestern
Virginia, who serves on the Energy and Commerce Committee and worked in
determined fashion to make improvements to the bill that we both
sought. I am grateful that he has been so welcoming of my views and
supportive of our interests--such as ensuring the availability of $10
billion to advance carbon capture and sequestration technologies and
other changes that are beneficial to the people of our neighboring
districts.
While this bill is greatly improved from the discussion draft that
was first circulated in March of this year--and opponents were saying
no even before that draft was written--more improvements are needed to
gain my support.
Coal does much more than keep the lights on in big cities across
America. In southern West Virginia, it covers the mortgage, puts food
on the family dinner table, and keeps open the doors of small
businesses. While the emissions target in the early years of this
program has been lowered from the 20% cap initially contained in this
bill, there remains widespread concern that even the reduced cap--17%
in 2020--is still too high and too soon to incentivize rapid
development and deployment of carbon capture and sequestration
technologies, so as to ensure coal mining jobs for the future. We must
allow time for expensive clean coal technologies to come on line.
These technologies are critical to lowering emissions across multiple
sectors of our economy. And they are necessary for keeping hardworking
coal miners in the jobs they want, providing power for the country they
love.
For these reasons, I cannot cast my vote for this bill.
Mr. CALVERT. Madam Speaker, Families in communities across our nation
continue to struggle through the most difficult economy most of them
have ever experienced. Nationally, our unemployment rate is nearing 10
percent. In California, the unemployment rate has soared to 11 percent
and in some of the hardest hit portions of my congressional district it
has reached almost 18 percent.
Like many Americans, I am dismayed by the decision of the Democratic
leadership to bring such an economically damaging bill to the House
floor in the midst of these historically difficult times.
Economic organizations and think tanks from around the country have
studied the economic impacts of the bill before us . . . and the
results are not good. A study conducted by the National Black Chamber
of Commerce determined that by 2030 the Waxman-Markey bill will cut net
employment by 2.5 million jobs--even after accounting for new ``green''
jobs. Similar studies by the Brookings Institution and the Heritage
Foundation also project huge job losses.
Ironically the Democratic leadership in Congress and the Democratic
Administration have made job creation one of their biggest priorities
this year. During the consideration of the stimulus bill we repeatedly
heard claims that the bill would ``save or create more than 3.5 million
jobs.'' As most Americans know, the bill has yet to deliver as
promised. I think it is notable that as we consider another major piece
of legislation both the Administration and Democratic leadership are
eerily silent on their job creation predictions.
The reality is the bill before us will kill jobs, weaken our economic
security, and enacts punitive measures that will only make matters
worse for families struggling to get by. I urge all of my colleagues to
vote against this poorly conceived bill that is being pushed through
with little to no time for debate or discussion.
Mr. GARRETT of New Jersey. Madam Speaker, I rise in opposition to the
so-called cap & trade legislation before us. While there are countless
reasons to oppose it, including the millions of jobs that are expected
to be lost, I wanted to take a moment to speak on the amendment that I
offered to this legislation. More than 200 amendments were offered to
this legislation in addition to my amendment, and all of them, with the
exception of one, was rejected by the Democrat majority.
My amendment would have stricken all sections of H.R. 2454 that deal
with the regulation of derivatives. This bipartisan effort was
supported by six cosponsors, including Democratic Reps. Mike McMahon
and David Scott as well as FSC Ranking Member Bachus and several
others.
Despite lacking any jurisdiction and expertise, the Energy & Commerce
Committee added sections to this bill imposing costly new regulations
on this portion of our financial services sector. I think we can all
agree that a broader discussion within Congress need to take place on
these issues, including at the committees of jurisdiction where there
is experience and expertise in dealing with them.
Just one week ago, Congress received an outline of President Obama's
financial regulatory reform plan, which includes suggestions for the
regulation of derivatives. The Financial Services Committee has not yet
had a chance to digest the President's proposal, nor has it fully
debated this issue within the context of broader financial regulatory
reform, which will continue to be the focus of our committee's work
over the next several months.
It is not appropriate to enact language that regulates a portion of
the derivatives market, potentially in a manner that conflicts with
later consensus on how to regulate the industry at large. Ninety-four
percent of the 500 largest global companies use derivatives to manage
risk and maintain stable consumer prices. Given the importance of these
financial products, Congress needs to tread carefully as it looks at
regulatory options for these markets. Over-regulation or improper
regulation that might sound good politically could have major
unintended negative consequences, not just for our financial markets,
but for our broader economy.
The sections that remain in this bill that deal with the regulation
of our derivatives markets are but one of many reasons to oppose this
massive and massively-flawed piece of legislation.
Ms. SCHWARTZ. Madam Speaker, I rise today in support of the American
Clean Energy and Security Act (ACES). This historic initiative will
create jobs in new renewable energy industries and energy efficiency,
reduce American dependence on imported oil, and decrease the greenhouse
gas emissions that are causing global climate change.
The growth of these new industries will enhance the ability of the
United States to produce its own energy and reduce the need for oil
imports from foreign countries. We currently import nearly 60 percent
of our energy needs from abroad. This imbalance makes our country
dependent upon foreign countries for the fuel that keeps our economy
running. It is estimated that ACES will reduce U.S. oil consumption by
2 million barrels per day by 2030.
Growing our domestic clean energy industry and reducing our use of
foreign oil will have an important tangible benefit--reducing the
greenhouse gas emissions that are causing global climate change. The
Nobel-Prize winning Intergovernmental Panel on Climate Change has
determined that significant reductions in greenhouse gas emissions,
like carbon dioxide, are necessary to mitigate significant
environmental consequences. ACES meets this challenge by creating a
framework to reduce U.S. emissions 83 percent below 2005 levels by
2050.
ACES accomplishes these goals while limiting costs to businesses and
the consumer. The nonpartisan Congressional Budget Office has
determined that implementing this bill would cost the average household
about 48-cents per day. ACES also includes assistance for energy-
intensive manufacturing industries like steel, cement, and glass to
ensure that these industries remain economically competitive in the
global marketplace as we strengthen our environmental laws and
transitioned to clean energy and greater energy efficiency.
I am proud that this bill includes a provision I spearheaded that
will require the Environmental Protection Agency Administrator to
create a national strategy to reduce carbon emissions through biologic
sequestration. Carbon dioxide can be absorbed from the atmosphere into
plants, trees, and other vegetation through the natural process of
photosynthesis. My provision would ensure that we utilize natural
landscape and green infrastructure to maximize our ability to remove
carbon from the atmosphere through a determined strategy for
reforestation, improved agricultural practices, and urban greening.
This important legislation defines new energy goals for our nation
and enables us to

[[Page H7669]]

lead the world towards a clean energy future. For businesses and
families back home it identifies a way forward to not only reduce
harmful carbon emissions but to create new economic opportunities, new
``green'' jobs, conservation and energy efficiency, and alternative,
cleaner sources of energy. Together these actions will better ensure
our nation's security, economy, and health. I urge my colleagues to
vote ``yes'' on this important bill.
Mr. GRIJALVA. Madam Speaker, I rise in support of the legislation
before us today.
As the Chair of the Subcommittee on National Parks, Forests and
Public Lands of the House Natural Resources Committee, I have held a
series of hearings on the impacts that climate change is having, and
will have, on our lands, waters, and wildlife. In response, my
congressional colleagues and I developed a bill to give state and
federal natural resource managers the tools to respond and adapt to
these impacts. That bill is included within the American Clean Energy
and Security Act which I strongly urge my colleagues to support today.
Any serious attempt to address climate change must include a focus on
the management of our nation's natural resources. Our land, water, fish
and wildlife resources are critical to public health and the American
economy.
These natural resources are also vulnerable to a wide range of
physical, biological, economic, and social effects as a result of
climate change. At the same time, public lands and resources represent
some of the best opportunities we have for implementing natural
resource adaptation strategies to help mitigate some of those effects.
Unfortunately, the previous Administration pursued a ``Head in the
Sand'' policy regarding climate change and, as a result, the gap
between what we know about climate change, and what federal and state
resource management agencies are doing about it, has never been wider.
After the Natural Resources Committee held a series of hearings on
the impacts that climate change is having, and will have, on our lands,
our oceans, and our wildlife, several of my colleagues and I introduced
H.R. 2192 to promote a proactive federal-state partnership to address
the impacts of climate change on our nation's natural resources and
provide the direction and the tools that resource managers will need to
develop mitigation and adaptation strategies for our land, water, and
wildlife.
We are gratified that the Energy and Commerce Committee shares the
belief that this is an important piece of the puzzle and has elected to
include our legislation as part of the bill before us today.
The bill establishes a Natural Resources Climate Change Adaptation
Panel made up of Federal agencies responsible for managing our Nation's
natural resources. The Panel's mission will be to foster the kind of
interagency and federal-state cooperation and planning that is both
critical in responding to climate change and, so far, sorely lacking.
The Panel will be tasked with developing a comprehensive, national
strategy for combating climate change. Once the national strategy is in
place, each Federal agency with jurisdiction over natural resources
will be required to translate that broader plan into a climate change
response tailored specifically to their programs and activities.
Furthermore, funding will be authorized to assist states in developing
similar state-wide adaptation plans that lead to concrete, on the
ground actions to address the impacts of climate change on the natural
resources they manage.
In addition, the bill will streamline, centralize and improve the
collection and dissemination of climate-related scientific information.
This provision will ensure that Federal climate research will be better
funded, more aggressive and more easily available to land managers,
policy-makers and the public.
Finally, the bill will create a centralized database of geographic
mapping information designed to identify significant wildlife habitat
and migration corridors. Such areas must be included in any ecosystem-
level adaptation planning efforts.
These efforts are belated--we cannot hope to reverse a decade of
inaction immediately--but they are important tools and these provisions
are an important step forward in developing a response to climate
change that will protect the lands and waters owned, and deeply valued,
by the American people.
We have wasted valuable time when we should have been working to stop
harmful global warming, but with this vote to rein in carbon emissions,
we will take a big step toward joining the rest of the world in
addressing mankind's impact on our environment. Our existence on this
planet depends on our taking action now rather than later, and
therefore, I urge passage of the legislation today.
Mr. BACHUS. Madam Speaker, I rise in opposition to the Waxman-Markey
bill.
This legislation creates a new multi-trillion dollar market for
Carbon Allowance Derivatives overnight, all without one hearing before
the Financial Services Committee. This continues a disturbing pattern
of conduct of passing sweeping legislative proposals without
consideration of the consequences and ramifications.
While Congress and financial regulators continue to work to determine
how best to oversee existing derivatives markets, it is ill-advised to
rubber stamp the creation of a brand new, hard to price, and convoluted
Carbon Allowance Derivative Market. The new market would be open to
potential abuse because it will be difficult for regulators to
understand and monitor.
Under the Waxman-Markey bill the government would issue allowances
(carbon allowance permits) that allow companies to emit a certain
amount of greenhouse gases. Companies that emit too much can buy
allowances from companies that produce less than their limit. In
addition to carbon allowances, there are carbon offsets which allow
companies to emit greenhouse gases in excess of the federal cap or
limit. They do this by investing in projects that cut emissions and it
is anticipated that many of these projects will be in developing
countries C.F.T.C. Commissioner Bart Chilton anticipates that overnight
the bill will create a $2 trillion dollar market, which he describes as
``the biggest of any commodities derivative product in the next five
years.'' Robert Shapiro, a former undersecretary of Commerce in the
Clinton administration and a co-founder of the US climate Task Force
warns that ``we are on the verge of creating a new trillion dollar
market in financial assets that will be securitized, derivatized, and
speculated by Wall Street, like the mortgage-backed securities
market.'' Mother Jones' Rachel Morris warns that without strong
financial regulation of the market you could have abuses, over
leveraging and ultimately collapse of the market. Democratic Senator
Jeff Bingaman has described these offset projects as ``fraught with
opportunity for game playing, which will be fully exploited, I'm
sure.''
Many of these projects will be created in developing countries. A
clean coal project in China or India could be used for carbon offsets,
as could a tree planting project in Brazil or Borneo. As much as China
needs to clean up their environment, should Americans pay for it?
Should a tree planting project in Borneo allow the discharge of more
pollution in America? Many of these remote projects will be notoriously
difficult to confirm and monitor. Even in America with a well-
established regulatory system we witnessed abuses in the subprime
mortgage market. The derivatives market has the potential for even
greater game playing in remote countries with questionable rule of law
and little regulation.
Michele Chan of Friends of the Earth says if not properly regulated
the offset derivatives could become what she calls ``subprime
carbon''--futures contracts that promise emissions reductions but fail
to deliver and then become toxic or worthless. Already the financial
markets and speculators are planning how to slice and dice them and
sell them to investors. It sounds altogether too familiar--a brand new,
hard to price, vast convoluted market of carbon derivatives. And if
these warnings are correct, one that certainly could pose a systemic
risk in the financial markets.
If you liked what Wall Street did with the securitization of subprime
mortgages, you'll love what they are going to do with carbon
derivatives.
Finally, ``cap and tax'' will have a devastating impact on my home
state of Alabama. The bias against coal and the renewable energy
mandates will force consumers in Alabama to buy expensive ``green
power'' from other states, which will raise energy costs across the
board. One study has projected that the typical family in Alabama could
eventually see electricity bills rise by more than $1500 a year. Higher
energy costs will make our manufacturers less competitive, and Alabama
and the rest of our country will lose jobs to nations like China,
Korea, and Mexico which have lower energy costs.
This bill is bad for Alabama, bad for the U.S. economy, and doesn't
even begin to solve the serious energy challenges facing our nation.
I urge my colleagues to join me in opposing this legislation.
Mr. STARK. Madam Speaker, I rise today in opposition to the American
Clean Energy and Security Act (H.R. 2454). Global warming is real. Man
causes it and it threatens nearly every aspect of life. We are right to
act with urgency to end our nation's addiction to fossil fuels and
combat global warming. But we cannot waste this opportunity by moving a
deeply flawed bill that provides too much to special interests and too
little to the environment and consumers. I cannot support the American
Clean Energy and Security Act in its current form.
This legislation continues the ``clean coal'' myth by providing at
least $60 billion for pie in the sky projects that will only continue
the destruction of mountains and waterways at the hands of coal mining
operations. More importantly, the bill takes away a vital weapon in the

[[Page H7670]]

fight to defeat new coal burning plants by repealing the EPA's current
authority to regulate greenhouse gas emissions, including the emissions
of individual power plants. The result will be a rush to build new coal
powered plants over the next decade and then an intense lobbying effort
to ensure that these plants are grandfathered in by the time the rules
are supposedly set to tighten in 2020.
The creation of a massive, trillion-dollar new carbon market should
scare all of us. The new, highly complex carbon market will be ripe
with opportunities for Wall Street speculation and manipulation. The
Commissioner of the Commodity Futures Trading Commission estimates that
the carbon market will consist of 180 million contracts within 5 years,
making it the world's largest commodity and derivatives market. The
subsequent market volatility will hurt consumers by ensuring that
energy prices continue to fluctuate. Market volatility will also
dissuade long-term investments in clean energy and efficiency. This is
the scenario that has played out in the European Union, where prices
have swung wildly and some power plants have actually switched back to
coal due to the low cost of emissions permits.
Many of these problems could have been dealt with through amendments
that were brought before the Committee on Rules yesterday. One
amendment that I cosponsored would have reigned in the carbon market by
only allowing entities covered under the Cap and Trade program to trade
allowances. This amendment would have greatly curtailed the ability of
Wall Street to influence the carbon market and would have protected our
economy from another financial meltdown. Unfortunately, this amendment
was not allowed to come to the floor for a vote. I also cosponsored an
amendment that would have continued EPA's current authority to regulate
greenhouse gas emissions under the Clean Air Act. This authority would
provide a backstop should the new cap and trade regime prove
ineffective. Sadly, this amendment was also not allowed to come to the
floor.
I commend the emission reduction targets laid out in the legislation.
I am not convinced, however, that these targets will be met in the near
future due to the many loopholes and dubious offset provisions
contained in the bill. This bill unfortunately continues the
Congressional tradition of subsidizing the fossil fuel industry. Only
this time it is cloaked in the disguise of environmentalism and the
subsidies come in the form of free allowances, institutionalization of
the ``clean coal'' fiction, and the gutting of EPA authority.
We have the opportunity and the responsibility to confront
catastrophic global warming with bold action. Congress should seize
that opportunity by passing legislation that would end our addiction to
fossil fuels, prove our leadership to the world, and build a foundation
for long-term prosperity. This legislation falls short of these goals.
Many have said that this vote is a historic one that we will be judged
by. In my view, history will judge this legislation as a missed
opportunity. I urge my colleagues to oppose the bill in its current
form and work to bring a truly progressive bill to the floor.
Mr. LANGEVIN. Madam Speaker, I rise today in strong support of H.R.
2454, the American Clean Energy and Security Act. I thank our leaders
who made this bill a priority, especially Speaker Pelosi, Leader Hoyer,
Chairman Waxman, Chairman Rangel, Chairman Peterson, and Chairman
Markey, who worked tirelessly to bring this bill to the floor today.
I have long been an advocate for reducing harmful carbon emissions
and investing in a clean energy economy. The path that we are on is
unsustainable. Last year's spike in gasoline prices and home heating
oil was only a small example of the challenges our nation faces due to
our reliance on foreign oil. The effects of climate change are already
beginning, and I believe that we must act now if we are to stop--and
ultimately reverse--the damage done to our planet and our economy.
I support this legislation because it will set our nation on a path
toward an energy independent future. The bill increases the renewable
energy standard to 20 percent by 2020, which means that more of the
energy we all use at home will come from clean, renewable resources. It
caps harmful carbon emissions that are damaging our environment and
ecosystem through a responsible and transparent approach, reaching an
overall reduction of 83 percent by 2050. With this reduction, it is my
hope that we will be the first generation to pass on a healthier planet
to our children and our grandchildren.
The $90 billion investment included in this bill will help create 1.7
million clean energy jobs throughout the nation, particularly in
manufacturing industries as demand for construction of renewable energy
components will dramatically increase. Increased funding for research
and development of renewable technologies, including wind, solar, and
wave energy, will drive American entrepreneurship and competitiveness
to make the U.S. a global leader in clean energy development.
This bill was also carefully written to ensure that consumers are not
overburdened by any increase in cost. Allowances are provided to
electricity, natural gas, and heating oil companies that must be
redirected to their customers. Low-income families are given even
further protections in the bill and will receive specific allowances in
the form of monthly energy refunds. The Congressional Budget Office
(CBO) estimates that protecting our nation through a cap on emissions
would cost an average family $175 per year, or less than 50 cents a
day, by 2020. Alternatively, if we fail to act and continue to rely on
oil, energy prices per household are estimated to reach $3,500
annually. Further, CBO has determined that the bill meets PAYGO
requirements and will not increase the deficit.
Lastly, it must be noted that our nation spends over $400 billion for
foreign oil each year. The time has come to stop investing our
taxpayers dollars overseas, and to bring them home to invest in clean
energy jobs and a healthier planet for our citizens. By increasing the
renewable energy standard, capping carbon emissions, and investing in
the creation of domestic jobs, this bill is directing our nation
towards a sustainable and economically viable energy future. I urge my
colleagues to invest in the future of this great nation, and vote yes
on the American Energy and Security Act.
Mr. BERMAN. Madam Speaker, I rise in strong support of H.R. 2454, the
American Clean Energy and Security Act of 2009.
This groundbreaking legislation will help protect our environment and
create an estimated 37 million jobs in the United States over the next
20 years by significantly reducing greenhouse gas emissions,
implementing a renewable electricity standard, providing incentives for
the adoption of energy efficiency measures, and promoting renewable
energy technology research and development.
H.R. 2454 also provides assistance to developing countries to help
them adapt to the effects of climate change, deploy clean energy
technologies, and reduce emissions from deforestation.
Some of the world's poorest countries--including those that have
contributed the least to the problem of climate change--will suffer the
most immediate and severe consequences of global warming if we don't
take action to reverse it.
Many developing countries face the threat of flooding, the loss of
arable lands, and the spread of climate-related diseases, such as
malaria and cholera.
A recent World Bank study estimated that storm surges resulting from
rising sea levels could threaten 52 million people and 29,000 square
kilometers of agricultural land in developing coastal countries around
the world.
H.R. 2454 will help people in low-income countries prepare for and
adapt to climate change by strengthening local planning capacity and
promoting the development and implementation of national adaptation
programs.
This legislation also provides financial and technical assistance and
leverages private sector involvement to mitigate the emissions of
greenhouse gases in developing countries.
This will help reduce the impact of climate change here in the United
States and benefit the American economy by encouraging innovation in
green technologies and the creation of high quality jobs.
Finally, the bill will help reduce greenhouse gas emissions by
helping low-income countries reduce emissions associated with
deforestation.
Madam Speaker, the programs on international adaptation, clean
technology, forestation as well as provisions for international offsets
will all require close collaboration between the Environmental
Protection Agency, the United States Agency for International
Development, and the Department of State.
In international negotiations on framework agreements to carry out
these programs, I expect the Department to continue to have
responsibility to approve the initiation of such negotiations,
consistent with current law and regulations.
I also expect that USAID, which has significant expertise in dealing
with a range of environmental activities overseas, will play a central
role in planning and helping administer these critical programs.
Madam Speaker, the international provisions in this legislation are
crucial for the successful completion of climate change negotiations in
Copenhagen later this year.
They will demonstrate to the rest of the world that the United States
is truly committed to working cooperatively with other nations to
tackle the global challenges of climate change.
I thank my good friends Chairman Waxman and Chairman Markey for
working closely with me to develop and refine the international
provisions in this important legislation, and urge all of my colleagues
to vote yes.
Mr. McCAUL. Madam Speaker, ``Electricity rates would necessarily
skyrocket.'' That is a direct quote from President Obama describing

[[Page H7671]]

his ``Cap and Trade'' plan. I agree with the President. That is why we
call it Cap and Tax. This is a failed European model that should not be
imported into the United States. We've already seen the effects in
Europe where household energy prices went up 25% and emissions were not
reduced. This is the wrong bill at the wrong time. Imposing a national
energy tax on the working families in my district who are already
struggling to make ends meet is wrong. And who benefits from this? You
guessed it, Wall Street, not Main Street.
While I strongly support investing in alternative energy and green
technology, I cannot support this bill.
Overall, in my home state of Texas, energy costs will increase by
$1.15 billion imposing an enormous tax each year on every Texas family.
All of this for something that simply won't work.
Companies that are not able to meet the cap will simply move their
manufacturing facilities overseas to countries with fewer regulations.
Nationwide, our country will lose around 2.5 million jobs and Texas
alone could lose 277,000 jobs in the first year alone. Perhaps that is
why the U.S. Chamber, the National Association of Manufacturers, the
Farm Bureau, and dozens of other organizations oppose this plan.
I continue to support the American Energy Act which increases our
domestic energy supply by developing more of our resources here in the
United States, investing in alternative fuels and offering incentives
for better efficiency and conservation--without placing a greater
burden on our families, our businesses and our economy.
Mr. POSEY. Madam Speaker, I rise to express my strong concerns about
the bill before us--a bill which no one has read. This morning members
of Congress were told about the addition of 309 pages that were added
to this bill early this morning. No one has read it.
Why the rush? Why does Congress have to pass this bill today, before
everyone can read it and understand what this new language is doing?
When Congress did this with the stimulus bill earlier this year it was
discovered after passage of that bill that it contained bonus payments
for AIG employees. But this bill, affecting every segment of our
economy, has much broader applications. We and the American people have
a right to know what is in this bill, how it will affect the American
people, and what impact it will have on our economy. Nobody knows that
this morning. We do not even have a cost estimate on this latest
version of the bill from the Congressional Budget Office (CBO). No one
knows what it will cost. My rule is that if you are not going to give
Members of Congress the time to read the bill, a cost estimate of the
bill, and an ability to understand its impact on the taxpayers and
American businesses, I'm going to vote no.
Supporters of the bill claim that it will only cost the average
American $175 per year. This is a fatally flawed estimate for three
reasons: (1) this figure is derived from a selective reading of the CBO
cost estimate, (2) 3 days after the CBO issued their cost estimate 300
additional pages were added to the bill, and (3) at 3 a.m. last night
another 309 pages were added to the bill. This bill has grown by nearly
70% since CBO's cost estimate was prepared.
The CBO estimate has serious deficiencies. In fact if you read the
entire CBO estimate you would find that they highlight the
deficiencies, deficiencies that are being conveniently ignored. The
most critical flaw is that CBO picked a year as the basis for their
estimate that is before the most costly parts of the bill take effect.
This excludes hundreds of billions of dollars from the cost estimate.
The footnote on page 4 of the estimate says that they exclude from the
costs estimate the ``decrease in gross domestic product (GDP)''
resulting from the bill. Most estimates conclude that it will result in
$1-$2 trillion in lost economic activity in the U.S. translating into a
loss of over 2.5 million jobs. The CBO fails to incorporate tens of
billions of increased costs to the states which will be passed on
through higher state taxes. CBO lists a number of other cost estimate
omissions.
When you factor in the deficiencies of the CBO estimate most analyses
put the cost estimate at between $750 and $3100 per year. Washington
has a habit of underestimating the cost of legislation. They are doing
so again today. That's why this bill was significantly changed last
night and rushed to the floor before Members of Congress have had a
chance to read the bill and understand what the changes do.
This 1200-plus page bill started out as legislation aimed at
improving the environment but it has become a means of raising money to
pay for larger, more intrusive government while having little impact on
the global environment.
The idea behind ``Cap and Trade'' is to purposely increase the cost
of energy that is produced using fossil fuels like natural gas, coal or
petroleum. Nearly 85% of electricity across the U.S. is generated using
these sources of fuel. The price of everything you buy will go up, from
gas to food, because there will be a hidden national energy tax built
into the price of everything.
Senator Cardin (D-MD) told the Washington Post that, ``This is the
greatest revenue generating [read tax] proposal of our time.'' This
bill moves money from the family budget to Washington.
Estimates are that this bill will have a negligible effect on the
global environment. It is estimated that if enacted, this bill will
lower the global temperature two-tenths of one percent. This is
equivalent to the annual fluctuation in global temperatures. Also, this
fails to acknowledge the fact that China, India and the rest of the
developing world are exempt from such regulations and their emissions
will far exceed any reductions that result from this bill.
This costly national energy tax will put American products at a
competitive disadvantage and further erode the ability of the American
worker to compete with China, India and the rest the developing world.
The result will be the loss of millions of jobs as more businesses move
to countries that will not impose these caps on their citizens.
Businesses that otherwise might have built facilities in the U.S. will
instead open up factories in countries that are exempt from these
regulations. It's no wonder China has called for the U.S. to pass this
energy tax bill. With a national unemployment rate nearing 10%, it's
estimated that this tax will cost Americans another 2.5 million jobs.
I oppose this plan and will vote against it because it is not good
for the American worker, small businesses, seniors on fixed incomes, or
families struggling to pay their bills and mortgages. Washington
doesn't need more of your money, it needs to control spending. Europe
adopted a similar plan several years ago and it forced jobs to leave
Europe, caused electricity prices to skyrocket, and they have little to
show for the costs. It's all pain and no gain. Check out the non-
partisan Tax Foundation's online energy tax calculator
(
www.taxfoundation.org/capandtrade
) to figure out how much it may cost
you.
Finally, it is a sad day for the Congress and the American people
that the Speaker chose to rush this bill through the Congress without
an open debate and amendment process. Members of Congress asked that
224 amendments be allowed to be considered to this bill. Unfortunately,
the Speaker allowed only one amendment to be offered. Among the
amendments denied were one to: (1) suspend the bill if gas exceeds $5
per gallon; (2) suspend the bill if electricity prices increase more
than 10%; and (3) suspend the bill if unemployment exceeds 15%. These
and many more amendments were reasonable and worthy of consideration.
They should have been allowed, as they are in the best interest of the
American people.
Again, I rise in strong opposition to this bill and urge my
colleagues to vote down this bill. It will further harm our economy and
slow our economic recovery.
Mr. PAYNE. Madam Speaker, today I rise on behalf of the 1 billion
people who live on less than $1.25 a day and who will most acutely feel
the impacts of climate change.
At first glance, climate change is a lot about numbers--temperature
rise of 2 degrees, 450 parts per million, a 25-40 percent reduction in
greenhouse gas emissions, one percent of allowances. The list goes on.
However, climate change is more than science and numbers. At the end
of the day, climate change is about people. Climate change is happening
far more rapidly than first thought. For the world's poor the climate
crisis is not looming on the horizon. It is happening today. The
impacts are hitting the world's poorest first and worst--those least
responsible for climate change.
Poor communities--individuals eking out an existence on less than
$1.25 a day--are the hardest hit and have the fewest resources to
adapt. Harsher climate conditions mean these vulnerable communities are
facing more severe, more frequent, and more intense floods, droughts,
and cyclones--leading to natural disasters and major disruptions in
agricultural growing seasons. Climate change is increasing malnutrition
as agricultural productivity declines. In Africa, agricultural
productivity is predicted to decrease by as much as 50 percent over the
next decade. A quarter billion people will be facing water scarcity.
The United States will not be isolated from these events. If left
unabated, the spillover caused by climate change will be visited upon
U.S. shores.
As resources like water and arable land become scarcer, outbreaks of
conflict, mass migration, and refugee crises will rise. A recent report
released by CARE, UN University, and Columbia University's Center for
International Earth Science Information Network reveals that climate
change is expected to spur human migration and displacement on a scale
never before seen. According to the International Organization for
Migration, as many as 200 million climate migrants may be forced to
cross borders by 2050.

[[Page H7672]]

One man from Niger interviewed for the study said: ``I have been
suffering from the rain water shortage, which made the river very
shallow and decreased my fish production, which had negative
implications on my income. If the situation does not improve, I might
leave for another country like some of my friends and relatives did;
they left for Nigeria and Burkina Faso and settled there.'' Left
unchecked, climate change will force him, and hundreds of thousands
like him, to migrate from home.
These negative impacts will be even greater on women and girls. As
primary family caretakers, food providers, and health care providers,
women will be forced to walk further to fetch ever scarcer water. They
will have to work harder to squeeze a harvest out of the earth to feed
their families. As the burden increases, children will be pulled out of
school--the girl child will undoubtedly be first.
Passing this bill is imperative. It begins our journey of tackling
climate change. It begins to assist poor communities in their efforts
to adapt to climate impacts. The challenge of climate change is not
insurmountable. We know adaptation works--and it can be fairly simple--
though it can also require substantial resources. Development
assistance organizations like Oxfam and CARE are allies in this
struggle. For example, Oxfam is working with communities in El Salvador
to plant mangroves as a natural coastal buffer to protect against
severe storms. CARE is partnering with women in Bangladesh who
identified duck rearing as a viable adaptive alternative to rearing
chickens, since chickens were getting wiped out in increasing flood
disasters.
The reality for poor vulnerable communities on the receiving end of
the effects of climate change is that the situation is dire. The least
developed countries face the brunt of the impacts but contribute less
than half a percent of global greenhouse gas emissions. Climate change
is not something of the future, the impacts are already happening. For
over 100 of the countries most vulnerable to the impacts of climate
change, international adaptation will be the key that unlocks their
commitment to a global agreement on climate change.
Climate change is a study of injustice--those hardest hit by climate
change are the least responsible for it. As a global leader, the U.S.
has a critical role to play: our leadership can help bring other
countries along--we simply cannot tackle climate change alone. As a
global problem, climate change requires a global solution based on a
shared sense of community. That solution starts here with this bill.
My esteemed colleagues, I call upon you to pass this bill that will
begin to provide President Obama with some of the tools he needs to
conclude a global climate agreement. While we might focus on the
numbers in this bill, let us remember that this issue is really about
people everywhere. People matter. The poor matter. Their livelihoods
matter. Their survival matters. This bill marks a historic beginning of
putting the U.S. back in the fore of global leadership on climate
change. Thank you.
Mrs. CHRISTENSEN. Madam Speaker, the American Clean Energy and
Security Act of 2009 is about the future. All the decisions that we
know must be made, that we have put off for far too long on energy
independence, climate change and retooling our economy for the
industries of the future must be made now.
As this bill was crafted, I know that we were careful in making sure
that all the regions of our country, from the coal producers, to the
oil producers, to the environmentalists, to the farmers, to the climate
change experts to those concerned about costs and the transition to
green jobs were heard from and our committees and membership worked
hard on a bill that will be the first foot forward to the goals that we
want to achieve for the 21st century.
While this bill is in no way a panacea to the myriad of issues before
us, it certainly is a progressive step towards creating clean energy
jobs, achieving energy independence, reducing global warming and
slowing climate change.
As a representative of one of the offshore territories of the United
States, I would reiterate that the U.S. territories, like other
distressed economies around the Nation, stand to be disproportionately
affected by the impact of climate change. We are also
disproportionately dependent on diesel for power generation and
vulnerable to its shifting costs.
On the other hand our geography and natural resources have the
potential to promote and utilize a diverse portfolio of renewable
energy options. I am proud that my colleagues have recognized this and
that this legislation contains language that will help us prepare for
the coming challenges and the shift to a greener economy.
Madam Speaker, The American Clean Energy and Security Act undoubtedly
responds to the call of countless citizens who have clearly articulated
this generation and this Congress must invest in renewable energy,
green jobs, clean technology, and adaptation strategies--domestically
and internationally--to buffer the ramifications of climate change
while at the same time ensuring that the cost will not be prohibitive
to poor and middle income Americans.
I am proud that we are responding to the President's vision and
mandate to meet our country's climate and energy security needs, in the
near future and beyond.
We have accomplished an amazing feat by arriving to where we are
today. I implore my colleagues here today to put politics aside and
keep the interest of the American people at heart throughout this
process.
Let us make this a truly historic day as we hold true to the
commitment of leading the world into an economy of 21st century clean
technology and industry.
Mr. GRAVES. Madam Speaker, I rise today in strong opposition to the
energy tax recklessly being forced through the legislative process only
to harm small business owners, farmers, and families in Missouri.
As a 6th generation farmer I can tell you that it is an extremely
energy intensive practice. Sixty-five percent of a farmer's costs are
dedicated to electricity, fuel, fertilizer, and chemicals; even a
slight increase in costs would have a damaging effect on farmers.
When it comes to rising fuel prices, we farmers drive trucks because
we have to haul stuff. I would challenge any of my colleagues to come
to Missouri and try doing farm chores in a Prius.
Those claiming this bill benefits agriculture don't know a thing
about the business. Agriculture producers are price takers on both ends
of the equation. It is one of the few industries in the world that
purchases its inputs at retail to sell its end product at wholesale.
Farmers have very little ability to pass their own costs onto their
customers and even those costs that agriculture producers can pass on
will mean only one thing: higher food prices for American families.
Rising food prices will be an indirect tax imposed on American
families by this Cap and Tax bill and its effects won't just be
confined to agriculture. Business everywhere will be confronted by a
new dueling reality of seeing their own energy costs rise and the
disposable income of their customers fall. All this can accomplish is
to restrain future economic growth and lead to long-term joblessness.
That is if there are any jobs left. None of the regulations or
increased costs in this bill will be shouldered by our trading partners
and competitors. How can we expect our businesses to remain competitive
and create jobs when we are imposing new taxes not only on those same
businesses, but their customers as well?
Let's be honest with ourselves. This legislation is nothing more than
a thinly veiled attempt to address climate change, while its actual
goal is to direct more taxpayer dollars to the government coffers to
fund a big government agenda, including the federal takeover of health
care.
Today I strongly urge my colleagues to stand with me. It is
irresponsible of Congress to use taxation as an answer to our nation's
challenges. Voting against this bill will demonstrate your willingness
to work together towards real energy solutions for our future and our
children's future.
Mr. WAXMAN. Madam Speaker, I yield back the balance of my time.

Amendment in the Nature of a Substitute Offered by Mr. Forbes

Mr. FORBES. Madam Speaker, I have an amendment in the nature of a
substitute at the desk.
The SPEAKER pro tempore. The Clerk will designate the amendment.
The text of the amendment in the nature of a substitute is as
follows:

Amendment in the nature of a substitute offered by Mr.
Forbes:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``New Manhattan Project for
Energy Independence''.

SEC. 2. DEFINITIONS.

In this Act--
(1) Commission.--The term ``Commission'' means the
Commission established under section 7.
(2) Research.--The term ``research'' includes research on
the technologies, materials, and manufacturing processes
required to achieve the goals described in section 3.

SEC. 3. GOALS.

(a) In General.--The purpose of this Act is to enable the
achievement of each of the following goals:
(1) Vehicle fuel efficiencies and alternative fuel
sources.--Development and manufacturing of a plug-in hybrid
vehicle, alternative fuel vehicle, electric vehicle, hydrogen
fuel cell vehicle, or other alternative technology vehicle--
(A) that is not more than 10 percent more expensive than a
comparable model vehicle of the same model year;
(B) with--
(i) equal acceleration, horsepower, and top speed
performance; and
(ii) not more than 20 percent reduction in cargo space,

[[Page H7673]]

as compared to a comparable model vehicle of the same model
year;
(C) that meets or exceeds Federal safety standards;
(D) that can travel at least 750 miles between refueling;
and
(E) in the case of a gasoline powered vehicle, that can
travel at least 70 miles per gallon of gasoline.
(2) Green buildings.--Develop and build an energy efficient
residential or commercial building that--
(A) uses no more than 50 percent of the energy of the
average new building of similar size and type;
(B) costs no more than 15 percent more to construct than
the cost of a building of similar size and type; and
(C) can be effectively reproduced in a variety of climate
environments found in the United States.
(3) Solar power.--Construction of a large scale solar
thermal power plant or solar photovoltaic power plant capable
of generating 300 megawatts or more at a cost of 10 cents or
less per kilowatt-hour when all capital and operating
expenses are calculated into the cost.
(4) Biofuels.--Development and production of a biofuel
that, when mass produced, does not exceed 105 percent of the
cost for the energy equivalent of unleaded gasoline when all
capital and operating expenses are calculated into the cost
of the biofuel.
(5) Carbon sequestration.--Development and implementation
of a carbon capture and storage system for a large scale
coal-burning power plant that does not increase operating
costs more than 15 percent compared to a baseline design
without carbon capture and storage while providing an
estimated chance of carbon dioxide escape no greater than 1
percent over 5,000 years.
(6) Nuclear waste.--Development of both--
(A) a validated process for remediation of the radioactive
waste form so it is no longer harmful to the health or
welfare of the environment or individuals for a period to be
determined by the Commission, which shall be not less than
5,000 years; and
(B) a model that accounts for all the effects of nuclear
waste in that process.
(7) Nuclear fusion.--Development of a sustainable nuclear
fusion reaction capable of providing a large-scale (greater
than 300 megawatts), sustainable source of electricity for
residential, commercial, or government entities.
(b) Amendment of Goals.--The Secretary of Energy may amend
a goal described in subsection (a) pursuant to a
recommendation from the Commission under section 7(b)(5), or
on his own initiative, if such amendment serves the purpose
of achieving the goal of United States energy independence
through the development of technologies that lead to the
widespread adoption of improvements that increase energy
supply or energy efficiency.

SEC. 4. SUMMIT.

(a) In General.--Not later than 60 days after the date of
enactment of this Act, the President shall convene a summit
that includes--
(1) the principal advisors and directors of all programs in
the Federal Government related to the achievement of the
goals described in section 3;
(2) the members of the Commission; and
(3) leading researchers at the Federal laboratories and
representatives of private sector partners engaged in the
production and manufacturing of technologies necessary to
achieve the goals described in section 3.
(b) Purpose.--The summit shall be for the purpose of
reviewing the progress and promise for each of these
technologies, the interrelationship of these technologies to
each other, and additional funding resources needed to
accelerate the progress of these programs toward achieving
the goals described in section 3.

SEC. 5. GRANT PROGRAM.

(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Defense, the Secretary of
Transportation, the Administrator of the Environmental
Protection Agency, and other Federal agencies as appropriate,
shall carry out a program consisting of a collaborative
effort with industry, government, and academia to support
research, development, demonstration, and commercial
application activities related to achieving the goals
described in section 3.
(b) Grants.--Such program shall consist of grants to
researchers, large and small businesses, National
Laboratories, institutions of higher education, or any other
qualified applicant, including veterans.
(c) Limitation on Amount.--No grant shall be made under
this section in an amount that exceeds 5 percent of the
amount authorized under section 8(1) for prizes for the
achievement of the same goal.
(d) Cost Sharing.--The Federal share of the costs of a
project for which a grant is made under this section shall
not exceed 15 percent.

SEC. 6. PRIZE PROGRAM.

(a) Prize Authority.--
(1) In general.--The Secretary of Energy shall carry out a
program to competitively award cash prizes in conformity with
this section to advance the research, development,
demonstration, and commercial application necessary to
achieve the goals described in section 3.
(2) Advertising and solicitation of competitors.--
(A) Advertising.--The Secretary shall widely advertise
prize competitions under this section to encourage broad
participation by researchers, large and small businesses,
institutions of higher education, and any other qualified
applicants, including veterans.
(B) Announcement through federal register notice.--The
Secretary shall announce each prize competition under this
section by publishing a notice in the Federal Register. This
notice shall include essential elements of the competition
such as the subject of the competition, the duration of the
competition, the eligibility requirements for participation
in the competition, the process for participants to register
for the competition, the amount of the prize, and the
criteria for awarding the prize, which shall include, at a
minimum, the achievement of one of the goals described in
section 3.
(3) Announcement of prizes.--The Secretary may not issue a
notice required by paragraph (2)(B) until all the funds
needed to pay out the announced amount of the prize have been
appropriated.
(b) Prize Categories.--
(1) Categories.--The Secretary of Energy shall establish a
single prize under this section for each of the goals
described in paragraphs (1) through (7) of section 3.
(2) Criteria.--In establishing the criteria required by
this section, the Secretary--
(A) shall consult with other Federal agencies, including
the National Science Foundation; and
(B) may consult with other experts such as private
organizations, including professional societies, industry
associations, and the National Academy of Sciences and the
National Academy of Engineering.
(c) Eligibility.--To be eligible to win a prize under this
section, an individual or entity--
(1) shall have complied with all the requirements in
accordance with the Federal Register notice required under
subsection (a)(2)(B);
(2) in the case of a private entity, shall be incorporated
in and maintain a primary place of business in the United
States, and in the case of an individual, whether
participating singly or in a group, shall be a citizen of, or
an alien lawfully admitted for permanent residence in, the
United States; and
(3) shall not be a Federal entity, a Federal employee
acting within the scope of his employment, or an employee of
a national laboratory acting within the scope of his
employment.
(d) Award Selection.--
(1) In general.--The Secretary of Energy shall award prizes
under this section on the basis of the criteria published in
the notice required under subsection (a)(2)(B), after
receiving the recommendations of the Commission under section
7(b)(3).
(2) Congressional notification.--If the Secretary awards a
prize under paragraph (1) in a manner that does not conform
to the recommendations of the Commission, the Secretary shall
transmit a report to the Congress explaining the reasons for
such action.
(e) Intellectual Property.--The Federal Government shall
not, by virtue of offering or awarding a prize under this
section, be entitled to any intellectual property rights
derived as a consequence of, or direct relation to, the
participation by a registered participant in a competition
authorized by this section. This subsection shall not be
construed to prevent the Federal Government from negotiating
a license for the use of intellectual property developed for
a prize competition under this section.
(f) Liability.--
(1) Waiver of liability.--The Secretary of Energy may
require registered participants to waive claims against the
Federal Government (except claims for willful misconduct) for
any injury, death, damage, or loss of property, revenue, or
profits arising from the registered participants'
participation in a competition under this section. The
Secretary shall give notice of any waiver required under this
paragraph in the notice required by subsection (a)(2)(B).
(2) Liability insurance.--
(A) Requirements.--Registered participants in a prize
competition under this section shall be required to obtain
liability insurance or demonstrate financial responsibility,
in amounts determined by the Secretary, for claims by--
(i) a third party for death, bodily injury, or property
damage or loss resulting from an activity carried out in
connection with participation in a competition under this
section; and
(ii) the Federal Government for damage or loss to
Government property resulting from such an activity.
(B) Federal government insured.--The Federal Government
shall be named as an additional insured under a registered
participant's insurance policy required under subparagraph
(A) with respect to claims described in clause (i) of that
subparagraph, and registered participants shall be required
to agree to indemnify the Federal Government against third
party claims for damages arising from or related to
competition activities under this section.
(g) Nonsubstitution.--The programs created under this
section shall not be considered a substitute for Federal
research and development programs.

SEC. 7. COMMISSION.

(a) Establishment.--There shall be established the New
Manhattan Project Commission on Energy Independence.

[[Page H7674]]

(b) Functions.--The Commission shall--
(1) not later than 1 year after the date of enactment of
this Act, submit to Congress and the President a report
containing--
(A) recommendations on steps that must be taken in order
for the United States to achieve 50 percent energy
independence within 10 years and 100 percent energy
independence within 20 years; and
(B) an assessment of the impact of foreign energy
dependence on United States national security;
(2) advise the Secretary of Energy on the design and
operation of the grant program established under section 5;
(3) make recommendations to the Secretary of Energy on the
design and operation, including selection criteria, of the
prize program carried out under section 6;
(4) make recommendations to the Secretary of Energy
selecting participants who have achieved a goal for which a
prize will be awarded under section 6; and
(5) submit recommendations to Congress for any amendments
to make the goals described in section 3 more stringent, as
appropriate because of changing circumstances, if such
amendments serve the purpose of achieving the goal of United
States energy independence through the development of
technologies that lead to the widespread adoption of
improvements that increase energy supply or energy
efficiency.
(c) Membership.--The Commission shall be composed of 13
members as follows:
(1) The Under Secretary for Science of the Department of
Energy.
(2) The Administrator of the Research and Innovative
Technology Administration.
(3) The Director of the National Science Foundation.
(4) The Chairman of the Federal Laboratory Consortium for
Technology Transfer.
(5) The President of the National Academy of Sciences.
(6) 2 members appointed by the Speaker of the House of
Representatives.
(7) 2 members appointed by the minority leader of the House
of Representatives.
(8) 2 members appointed by the majority leader of the
Senate.
(9) 2 members appointed by the minority leader of the
Senate.
(d) Terms of Membership.--Each member of the Commission
appointed under subsection (c)(6) through (9) shall be
appointed for a term of two years, except that of the members
first appointed, one under each of those paragraphs shall be
appointed for a term of one year. A member of the Commission
may serve after the expiration of the member's term until a
successor has taken office.
(e) Vacancies.--A vacancy in the Commission shall not
affect its powers but, in the case of a member appointed
under subsection (c)(6) through (9), shall be filled in the
same manner as the original appointment was made. Any member
appointed to fill a vacancy for an unexpired term shall be
appointed for the remainder of such term.
(f) Quorum.--Seven members of the Commission shall
constitute a quorum.
(g) Meetings.--The Commission shall meet at the call of the
Chairman or a majority of its members.
(h) Compensation.--(1) Each member of the Commission shall
serve without compensation.
(2) While away from their homes or regular places of
business in the performance of duties for the Commission,
members of the Commission shall be allowed travel expenses,
including per diem in lieu of subsistence, at rates
authorized for employees of agencies under sections 5702 and
5703 of title 5, United States Code.
(i) Staff.--Subject to rules prescribed by the Commission,
the Commission may appoint personnel as it considers
appropriate.
(j) Applicability of Certain Civil Service Laws.--The staff
of the Commission shall be appointed subject to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid in
accordance with the provisions of chapter 51 and subchapter
III of chapter 53 of that title relating to classification
and General Schedule pay rates.
(k) Experts and Consultants.--The Commission may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
(l) Hearings and Sessions.--The Commission may, for the
purpose of carrying out this Act, hold hearings, sit and act
at times and places, take testimony, and receive evidence as
the Commission considers appropriate.
(m) Powers of Members and Agents.--Any member or agent of
the Commission may, if authorized by the Commission, take any
action which the Commission is authorized to take by this
section.
(n) Obtaining Official Data.--The Commission may secure
directly from any department or agency of the United States
information necessary to enable it to carry out this Act.
Upon request of the Commission, the head of that department
or agency shall furnish that information to the Commission.
(o) Subpoena Power.--
(1) In general.--The Commission may issue subpoenas
requiring the attendance and testimony of witnesses and the
production of any evidence relating to any matter under
investigation by the Commission. The attendance of witnesses
and the production of evidence may be required from any place
within the United States at any designated place of hearing
within the United States.
(2) Failure to obey a subpoena.--If a person refuses to
obey a subpoena issued under paragraph (1), the Commission
may apply to a United States district court for an order
requiring that person to appear before the Commission to give
testimony, produce evidence, or both, relating to the matter
under investigation. The application may be made within the
judicial district where the hearing is conducted or where
that person is found, resides, or transacts business. Any
failure to obey the order of the court may be punished by the
court as civil contempt.
(3) Service of subpoenas.--The subpoenas of the Commission
shall be served in the manner provided for subpoenas issued
by a United States district court under the Federal Rules of
Civil Procedure for the United States district courts.
(4) Service of process.--All process of any court to which
application is made under paragraph (2) may be served in the
judicial district in which the person required to be served
resides or may be found.
(p) Federal Advisory Committee Act.--Section 14 of the
Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Commission.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary of
Energy--
(1) for the period encompassing fiscal years 2010 through
2019--
(A) $500,000,000 for awarding the prize under section 6 for
meeting the goal described in section 3(1);
(B) $250,000,000 for awarding the prize under section 6 for
meeting the goal described in section 3(2);
(C) $250,000,000 for awarding the prize under section 6 for
meeting the goal described in section 3(3);
(D) $1,000,000,000 for awarding the prize under section 6
for meeting the goal described in section 3(4);
(E) $1,000,000,000 for awarding the prize under section 6
for meeting the goal described in section 3(5);
(F) $1,000,000,000 for awarding the prize under section 6
for meeting the goal described in section 3(6);
(G) $10,000,000,000 for awarding the prize under section 6
for meeting the goal described in section 3(7); and
(H) $10,000,000,000 for carrying out the grant program
under section 5; and
(2) such sums as may be necessary for carrying out this Act
for subsequent fiscal years.

The SPEAKER pro tempore. Pursuant to House Resolution 587, the
gentleman from Virginia (Mr. Forbes) and a Member opposed each will
control 15 minutes.
The Chair recognizes the gentleman from Virginia.
Mr. FORBES. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, first of all, I would like to thank the Rules
Committee for allowing me to bring this amendment by making it in
order. No matter what the motivation or the intentions, I appreciate
that opportunity. And I want to make it clear this amendment is not an
addition. It is an amendment in the nature of a substitute that would
replace the current bill on the floor.
Madam Speaker, I would also like to make clear that this is not a
Democratic amendment, obviously, and I think we will hear from the
Democratic leadership in a few minutes to make that clear. It's not a
Republican amendment, and we will probably hear from the Republican
leadership to that extent in just a few moments. But it is an amendment
that's overwhelmingly supported by the American people.
I never cease to be amazed at how day after day we come in this body,
and as we enter this great Chamber, we somehow put on our adversarial
robes and we pick up our adversarial clubs and then we go about our
business. But, unfortunately, the adversarial process often leads us to
be more concerned with scoring points than we are with winning
solutions. In this debate I have listened to today there are good men
and women on both sides, and there are smart men and women on both
sides, and they all believe they are right. But there are limits to the
good ideas that we can bring into this one Chamber about energy.
The reality is if you're from a coal area, the people back at home
know you're going to be fighting for coal. If you're from a gas area,
you're going to be fighting for gas. And if you're from an area with a
lot of wind or solar technology, that's what you're going to be certain
it's going to solve our energy problem. But even the majority can't
always be right, and that's why only 33 percent of the people in
America approve of what Congress is doing currently today.
This amendment, Madam Speaker, is the new Manhattan Project for
energy independence. A lot of people have talked about doing something
like this.

[[Page H7675]]

Today we have an opportunity to do it. And it has a novel approach. It
says that instead of the 435 of us on this floor bringing our ideas and
imposing them on the American people, what we do is bring together a
commission of the brightest men and women in America, from government,
from the private sector, from academics, and we have them create in the
next year a plan of energy for this country that would get us 50
percent independent from foreign oil in 10 years and 100 percent in 20
years or tell us why we can't get there.

{time}  1700

And this amendment also realizes that in this bill on the floor
today, we are essentially redistributing another $800 billion of
taxpayer money because we think we know what's best for Americans. The
new Manhattan Project amendment would set seven goals for energy
independence. They are goals that almost everybody agrees we need to
reach energy independence: doubling vehicle fuel efficiency, cutting
home and business energy usage in half, having solar power work as
cheaply as coal, making biofuels work as cheaply as gasoline, safely
and cheaply storing carbon emissions from our coal-fired plants, safely
storing nuclear waste and producing electricity from nuclear fusion
reactions. Then through grants and prizes it energizes an entire Nation
to reach those goals through their innovation and their ideas and their
imagination. But, Madam Speaker, perhaps the most important thing this
amendment does is it restores American competitiveness by sending out
two signals.
First of all, it sends a signal out across this country to the
American people that we trust them and America is coming back on its
competitive edge. And, secondly, it sends a shot across the bow of
every country in the world, telling them we are not going to surrender,
that we are going to come back, and we are going to compete, and we are
going to win on a fair playing field, and we are going to restore a
competitive advantage that is going to lead us for the next 50 years.
And then finally, Madam Speaker, it invigorates a whole generation of
Americans to go into math and science and be a part of our energy
solution for years to come.
And so with that, Madam Speaker, I hope that we will pass this
amendment, and I reserve the balance of my time.
Mr. WAXMAN. Madam Speaker, I rise in opposition to this proposal.
The SPEAKER pro tempore. The gentleman from California is recognized
for 15 minutes.
Mr. WAXMAN. I yield myself such time as I might consume.
This amendment is more of the same from the Republicans. After 8
years of failed energy policies, the Republican answer to our energy
problems is to do more research and to provide people with prizes for
good ideas.
Well, during the last 8 years, the average American family has seen
its energy cost increase by nearly $2,800 a year. Those are increases
in gasoline prices, home heating, electricity bills. American families
cannot afford the same failed policies.
Now, I like the idea of having good, innovative approaches to our
challenges. I don't mind giving people awards if they come up with good
ideas, but I think good ideas come up with market incentives and
competition and rewarding people for good ideas with something more
than a good ribbon to pin on their chest.
This amendment strikes the whole bill and substitutes this idea of
giving prizes. Could you imagine, giving prizes. Why didn't you give
out prizes in the last 8 years, and maybe our energy problems would
have been solved if we had given out more prizes for good ideas.
But the bill before us, the American Clean Energy and Security Act,
is a comprehensive energy policy. It will create new clean-energy jobs,
increase our energy independence and dramatically cut pollution. We are
talking about 1.7 million new jobs.
This bill will save 240 million barrels of oil each year. That's oil
we don't have to import from the Middle East. And this bill is going to
help consumers, because the energy efficiency provisions alone will
save consumers $750 per year by 2020.
This bill before us makes a landmark investment in the future of the
country by providing $190 billion through 2025 to increase our
efficiency and deploy cutting edge energy technologies. We provide for
renewable energy, coal with carbon capture and storage, nuclear power
and advance technologies, electric vehicles, smart grid transmission,
energy efficiency. I could go on.
This substitute amounts to a grant program and a competition with
prizes for good ideas. There is no comparison between the two.
The bill before us is a real solution to our very real energy
challenges. The Republican amendment simply fails to rise to the
challenge.
I urge its defeat and reserve the balance of my time.
Mr. FORBES. Madam Speaker, the gentleman mentions those 8 years of
bad ideas. That's why these similar concepts were endorsed in the
campaign by President Obama, Senator McCain, Senator Clinton and also
individuals like Newt Gingrich.
I would like to yield 1 minute to the distinguished gentleman from
Illinois (Mr. Schock).
Mr. SCHOCK. Madam Speaker, I woke up this morning to the front page
of my hometown paper, which read, Peoria's unemployment rate crosses
double digits for first time in two decades.
At a time when our communities across this country are losing work
and out of jobs, we in this body are passing a piece of legislation
that will only do more, only put more people out on the street and in
the unemployment lines.
This bill, on the average, will add to Illinois residents the cost
equal to 1 month of their electricity bill. In essence, we are adding a
13th month to their utility bill. It doesn't matter whether my
constituents are senior citizens living on a fixed income, families,
businesses, we are asking them to pay more at a time when they have
less.
Now, there is not a person in this room that doesn't want more of the
same, more green energy, more wind, more nuclear, more solar power. But
I, for one, believe we can get there without putting the conventional
methods of energy out of business.
The Forbes amendment will do just that. It is creative ideas,
incentivizing the behaviors that we want as opposed to what we don't
that we need.
I urge a ``yes'' vote on this amendment and a ``no'' on the cap-and-
tax bill.
Mr. WAXMAN. Madam Speaker, I would yield 1 minute to my cosponsor of
the legislation that's before us. My name came first, his second,
because I am older and I am chairman of the full committee. He is
chairman of the subcommittee. But the real author of the legislation,
he has worked on this problem for many, many years, is Ed Markey.
Mr. MARKEY of Massachusetts. Thank you, Mr. Chairman.
With our bill, we will take back America's position as the
technological leader, give back money to consumers by lowering energy
bills, send back the millions of barrels of oil we import from foreign
dictators every day, and we will export wind turbines and solar panels
that say ``Made in America'' instead of continuing to import millions
of barrels of oil a day that say ``Made by OPEC.''
This bill has the ambition of the Moon landing, the moral imperative
of the Civil Rights Act, and the scope of the Clean Air Act all wrapped
up in one. All we are hearing here this evening are the same
discredited policies from the past that have gotten us into this
economic national security and environmental situation that we live
with today.
Vote ``no'' on this substitute and vote ``aye'' for the bill that we
are considering. The gentleman from California has done an excellent
job in bringing us to this point.
Vote ``no'' on this substitute.
Mr. FORBES. Madam Speaker, I would like to yield 1 minute to the
distinguished gentleman from South Carolina (Mr. Inglis).
Mr. INGLIS. I thank the gentleman for yielding.
This is not the time for a tax increase. It's not the time for
another Wall Street trading scheme, and it's not the time to burden
American manufacturing. It is the time to inspire innovation through
amendments like Mr. Forbes' and to come together to find a solution
that breaks our addiction to oil, that creates new energy jobs, and
that cleans up the air.

[[Page H7676]]

We can get there if we stop this cap-and-trade, do some fresh
thinking, and then come together for America's sake around a revenue-
neutral tax swap. It would start with a tax cut on FICA taxes, then in
equal amount, we would shift the tax onto carbon. We could then apply
that tax to imported as well as domestically produced goods. Just like
the fair tax, we would just be changing what we tax.
We would be swapping a FICA tax cut for a similar tax on carbon. The
accountability of a revenue-neutral tax swap would cause old fuels to
lose out to new fuels. We would be building nuclear power plants, and
free enterprise would deliver the triple play of this American century.
Ladies and gentleman, let's support the Forbes amendment for
innovation, stop the cap-and-trade, and solve the problem.
Mr. WAXMAN. Madam Speaker, I would like to inquire of the gentleman
from Virginia (Mr. Forbes) who is controlling the time, how many
speakers do you have? We have two on our side.
Mr. FORBES. I would say to the gentleman, we have three, maybe four
more speakers.
Mr. WAXMAN. We will reserve the balance of our time.
Mr. FORBES. Madam Speaker, can you tell us how much time we have
remaining.
The SPEAKER pro tempore. The gentleman from Virginia has 9 minutes
remaining. The gentleman from California has 11 minutes remaining.
Mr. FORBES. Madam Speaker, I would like to yield 1 minute to the
gentleman from Virginia (Mr. Goodlatte).
Mr. GOODLATTE. I thank the gentleman for yielding and commend him for
offering this amendment, which is a great opportunity for our
colleagues on the other side of the aisle to stop putting the cart
before the horse and suppressing our traditional sources of energy,
oil, natural gas, coal. Doesn't even do anything for nuclear power, and
yet you want to push us into a direction where the technology doesn't
yet exist.
This legislation, this amendment, this substitute is exactly what you
can need. You can vote for this, put us on a Manhattan Project to
develop the new green technology that we need in this country, to do it
in a way that is commercially feasible, to do it in a way that can rise
up to replacing the 95 percent of our sources of energy that we have in
our country this day, that you can push down in this legislation.
And if you were to vote for that and against the underlying bill, we
would be putting this country on a course in a bipartisan fashion that
would lead our country to exactly what we need. Unlike the Markey-
Waxman approach, this amendment does not pick winners or losers in
technology. It allows the ingenuity of American citizens to create the
technology that will make our country energy independent.
I urge my colleagues to support the gentleman's substitute.
This amendment focuses on making our country energy independent
through the innovation of American individuals and businesses, not
through government mandates and intrusion. Unlike the Waxman-Markey
approach, this amendment does not pick winners and losers in technology
but allows the ingenuity of American citizens to create the technology
that will make our country energy independent while at the same time
reducing carbon emissions.
Most importantly, the Forbes Amendment won't raise the cost of living
to American consumers or hinder the ability for American businesses to
compete. The technology that a new Manhattan Project could spur has the
ability to rebuild our economy and make it stronger than ever before.
The Forbes Amendment is the right approach to make our country energy
independent while reducing carbon emissions. I encourage all my
colleagues to vote for this amendment.
Mr. FORBES. Madam Speaker, I would like to yield 1 minute to the
distinguished gentlelady from Minnesota (Mrs. Bachmann).
Mrs. BACHMANN. I thank the gentleman from Virginia. I support the
gentleman's amendment.
We know, Madam Speaker, that this national energy tax will cost the
American people $2 trillion. We know that. We know this will result in
a loss of 2.5 million jobs every year for the American people. We know
that. We know this will result in a reduced standard of living for
Americans. We know that. What is the point and what's the benefit?
But what is worse than this is the fact that now, because of this
underlying bill, the Federal Government will virtually have control
over every aspect of lives for the American people. It is time to stand
up and say, We get to choose. We choose liberty or we choose tyranny.
It's one of the two.
The underlying bill represents the tyranny and the intervention of
the Federal Government. Mr. Forbes' amendment represents liberty for
the American people.
It's our choice. What will we choose today? Will we choose liberty or
will we choose tyranny?
I choose Mr. Forbes' amendment.
Mr. FORBES. Madam Speaker, I yield 1 minute to the distinguished
gentleman from Texas, the ranking member of the Energy and Commerce
Committee, Mr. Barton.
Mr. BARTON of Texas. Madam Speaker, I rise in strong support of the
Forbes amendment. This is not a comprehensive substitute, because the
majority party, which controls the Rules Committee, ruled out of order
and didn't make it in order on the floor either the Republican
leadership comprehensive substitute or the Energy and Commerce
Committee comprehensive substitute.
So they did rule in order Mr. Forbes' substitute. And I will
guarantee you, this is better than the base bill.
It doesn't wreck the economy. It does include, and you can count on
the ingenuity of the American people, through an incentives package, to
unleash the productivity and innovativeness of our folks in the United
States to find new solutions to our energy and environmental problems.
But it doesn't have this boondoggle cap-and-trade program that will
wreck the economy, deindustrialize America, and make us a second-rate
economic power. It is not a comprehensive substitute, but it is darn
better than the base bill.
Vote for it.
Mr. FORBES. Madam Speaker, can you tell me how much additional time
we have?
The SPEAKER pro tempore. The gentleman from Virginia has 6 minutes
remaining. The gentleman from California has 11 minutes remaining.
Mr. FORBES. Madam Speaker, I yield myself 5 minutes.

{time}  1715

Mr. FORBES. Madam Speaker, I yield myself 5 minutes.
Madam Speaker, we have heard a lot today about how these ideas of a
new Manhattan Project were stale ideas of this party. I stated at the
beginning that, unfortunately, we get so tied up in this Chamber in our
adversarial process that all we're concerned about is how many points
we take from each other.
The reality is that a project like this, the new Manhattan Project,
or you can call it a ``poppy project,'' were concepts that were talked
about by President Obama during the campaign, by Senator Clinton during
the campaign, by Senator McCain during the campaign and, as I mentioned
earlier, by former Speaker Newt Gingrich, and many other people.
They're concepts that have been approved by 77 percent of the
American people. And what they do is substitute for taxation of the
American people the concept of innovation and trusting the ideas of the
ingenuity and imagination of people across America.
We talked about what this bill can do if we reach just one of these
goals. Just one of these goals, it could change and save us as much as
$100 billion. But, most of all, Madam Speaker, this trusts the American
people to do what they always do, and that is find a way to win, if we
don't quit before they have a chance to win. And it sends a message to
them at a time when they're back on their heels and they need some
wins, that we trust that they, with their imagination and innovation,
can do things that this body can't do and can't dictate to them.
Perhaps it was best said by Mr. Friedman in a New York Times article
that he wrote--and I don't agree with everything he says, but I agree
with this. He said, I want an energy bubble. I want so many people
throwing crazy dollars at every idea and every garage that we have a
hundred thousand people trying a hundred thousand things, five of which
might work and two

[[Page H7677]]

might be the next green Google. But I don't want a Manhattan Project of
12 people in Los Alamos. I want it to be like the IT revolution:
everyone becoming a programmer. Only, in this case, it's everyone
becoming a green innovator. What IT was to the eighties and nineties,
ET, energy technology, will be to the early 21st century.
Madam Speaker, this amendment gives us that opportunity. This
amendment will birth that ability for Americans to create the energy
solutions that we need as we go forward into the next several decades
and to give our children and our grandchildren the competitive edge to
compete in a world economy.
With that, Madam Speaker, I reserve the balance of my time.
Mr. WAXMAN. Madam Speaker, I'm pleased at this time to yield 1 minute
to the majority leader so that he may speak on this amendment and the
legislation that's before us, the gentleman from Maryland (Mr. Hoyer.)
Mr. HOYER. I thank the gentleman for yielding. Mark this day, June
26, 2009. My colleagues, we have an opportunity to serve in a historic
session of the Congress of the United States. We have an opportunity to
take action that will make a major difference in the security and
independence and environment of our globe as well as our country.
We have been given the privilege by our fellow citizens to serve at a
time of historic change and meeting challenges that were the subject of
this past Presidential campaign. And in this past Presidential campaign
there were three major candidates. You could perhaps name more, but
there were two, certainly, at the end.
And the campaign of Senator McCain and Senator Obama had something in
common. They were both for comprehensive cap-and-trade legislation, the
candidate you supported and the candidate I supported. They put an
agenda of action before the American people that they would pursue if
they were elected President of the United States. Only one could be
elected, but presumably both would have followed through on their
commitment, as this President has, and we are today.
This is a transformative moment. This is a moment to build a clean-
energy future for our country. This is a moment to create jobs in
America. This is a moment to take on, at long last, a defining
challenge of our time--global warming. I know my colleagues can seize
this moment, if they only will.
The substitute talks about a Manhattan Project. I think the
sentiments expressed in the substitute are good ones. The objectives
are good ones. But Americans voted for action, not additional studies.
America voted to make a difference, not to make a point. America voted
for the change we could believe in. That's what this bill represents.
I know they can look back from a future in which America is
independent of foreign oil. There has been much talk about taxes.
Tragically, almost every debate we have on this floor devolves into:
We're going to raise your taxes.
My fellow Americans know about having their expenses raised and
because the foreign potentates who hold us hostage because they provide
so much of our energy gave us a new tax at the gas pump--and every
American remembers it. Why? Because we have not taken the action
necessary to become energy independent.
And so our gasoline prices at the pump for my commuters who drive
sometimes an hour or an hour and a half to get to work to support their
families paid an additional $2.50 per gallon tax imposed by those from
abroad who provide us energy.
This bill is about making sure that foreign interests cannot raise
the expenses of our families. This bill is about making sure that we in
America provide our energy, efficient energy, clean energy, energy that
will not bring our globe to a heating process that will drown out what
the Navy calls the littorals, the seashores, where most of our people
live.
My colleagues, this bill, the American Clean Energy and Security Act,
is a true turning point. This is one of the historic actions we will
take not just in this Congress, but as Members of Congress, for however
long a tenure we may have.
It's a complex bill because we face a complex problem. But we can sum
up its outcome simply: new American jobs, less dependence on foreign
energy, a reduction in the carbon pollution that causes global warming.
How does this bill accomplish those goals? Among its most important
provisions are a requirement that utilities meet 20 percent of electric
demand through renewable sources and energy efficiency by 2020.
I'm old enough to remember the lines of the seventies when you waited
in line an hour or two or three to put gasoline in your car so you
could get your child to school, get to work, pick up your child from
child care. America should have acted, but we did not. Today, we're
going to act.
Significant new investments in renewables, carbon capture and
sequestration, electric vehicles, and cutting-edge energy research, all
of that is in this bill to take action, change that America can believe
in. And energy savings standards for buildings, appliances, and
industries.
This bill also creates a clean-energy bank to fund promising energy
projects across America. Investment in America's ingenuity and
innovative entrepreneurial spirit, that's what this bill is about. That
is why it's so important to America.
It invests in high-tech transmission lines to build the essential
foundation for a more efficient grid. That is essential if the energy
we produced can be delivered to those who need it in businesses and in
homes.
New transmission lines comprised of superconducting cable and other
efficient wires will carry more power within existing rights-of-way
with less land use is included. The result will be a more secure,
environmentally friendly grid. That's what this bill does.

I worked with the chairman and Representative Inslee to ensure that
those transmission provisions were included because they are such an
important part of a more cost-effective, energy efficient future that
our country needs.
Of course, the bill also includes the reduction of our carbon
emissions by 17 percent by 2020. Some would like to do more. Some would
like to do less. But we have reached a compromise. That is the
legislative process. And it is compromise that can pass this House and
pass that Senate and be signed by the President and become law. And
make progress. That's what our responsibility is. And then, more than
an 80 per reduction by 2050.
We can fight global warming with the same kind of market-based cap-
and-trade solution that was so effective in combating acid rain at
minimal cost in the 1990s. Global warming threatens every one of us.
There was disagreement on that for a long period of time--some 7 years
in the Bush administration, until the last year, President Bush, our
President, decided that, yes, global warming was in fact a challenge
that must be met.
This is not a partisan issue. This is an issue on which we have
reached consensus. Global warming threatens every one of us. It will
affect the kind of lives our children will lead and the kind of
prosperity our country and our world will enjoy.
To those who complain about the cost of the bill, I answer that we
are all paying the cost of carbon emissions already, and certainly, as
I pointed out earlier, paying the cost of being hostage to those abroad
who provide our energy.
The longer we wait to act, the more we will pay year after year after
year. But if we take action now, we can get jobs, growth, clean energy,
and energy independence for less than the price of a postage stamp a
day for each of us, according to the EPA and CBO.
And with this bill passed and signed, the United States will finally
be able to argue persuasively and credibly for global action on a
challenge that knows no borders. We understand that if the Chinese do
not act, or the Indians don't act, the air that they belch will soon
come to this continent and our children and families will be at risk.
This is a global problem. But America is the leader. America must
lead. America must set the example. This bill does exactly that.
At the same time, action on global warming will send a powerful job-
creating price signal to the private sector, spurring innovation in
every part of the renewable energy economy. Jobs, jobs, jobs. That is
one of the reasons

[[Page H7678]]

why the U.S. Climate Action Partnership, a business coalition dedicated
to fighting climate change has argued that ``the way we produce and use
energy must fundamentally change both nationally and globally''--and
that this coming change represents an excellent opportunity for
economic growth.
And that is why another coalition of 19 businesses, including the
Pacific Gas and Electric Company, Duke Energy, National Grid, H.P.,
Starbucks, and Nike wrote to President Obama that this bill ``will
drive investment into cost-saving, energy saving technologies and job-
creating innovation, create the next wave of jobs in the new energy
economy and will provide the predictability we need to plan for future
business success.''
Those aren't my words. Those are the words of leaders in the
corporate community in America who know something about innovation,
enterprise, and free markets.
It has long been understood that acting on global warming is a moral
necessity as well as an intellectual necessity. But now, more and more
of us are realizing that it makes powerful economic sense as well.
Madam Speaker, let me as an aside thank you for your presiding at
this time on this historic bill and for presiding over so much
legislation in such a fair and effective fashion.

{time}  1730

This House will miss your service, but the country will enjoy your
continuing service. I thank you, Madam Speaker.
Madam Speaker, a future of clean energy is well worth the price. A
Republican governor, inaugurated in the State of Maryland, in his
inaugural address said that the cost of failure far exceeds the price
of progress.
The cost of failure for the last three to four decades has cost this
country. Progress will be far less expensive than failure. My children,
my grandchildren and the generations to come will be either the
beneficiaries of our stewardship or the victims of our neglect.
I urge my colleagues this day to reject this substitute, not because
it is bad for the words that it incorporates, but because its effect
would be to stop action so desperately needed by this country and this
globe.
I urge my colleagues, defeat this substitute, pass this bill, and
take this historic opportunity for our children, our grandchildren and
generations yet unborn.
Mr. FORBES. Madam Speaker, may I request how much time is remaining?
The SPEAKER pro tempore. The gentleman from Virginia has 3\1/2\
minutes remaining. The gentleman from California has 10 minutes
remaining.
Mr. FORBES. Madam Speaker, I yield myself 1\1/2\ minutes.
Madam Speaker, the distinguished minority leader just said that
Americans must lead; and lead, they must. He also indicated that the
cost of their failure would be passed on to our children and
grandchildren.
As one of only 17 Members in this body that has voted against every
bailout bill and stimulus bill we have passed, I ask the American
people who watch here, what has been the enormous cost of our failure
in spending all of those dollars, and what have you got from it? Also,
Madam Speaker, I would say this--that the American people can lead.
They're not stupid. Only 33 percent of them approve of what we're
doing.
We have a choice. Only in this body could they believe that we could
say words like, We're going to create jobs by destroying jobs. We're
going to reduce your taxes by increasing your taxes. We're going to
come in here with all your parochialism, and we can create a plan for
you that is far better than the brightest experts on energy could do by
having this amendment. We prefer taxation over innovation of the
American people. Or we'll have a bill like this that only sets a 20
percent goal in 11 years for renewable energy, where in this bill we
set a 50 percent goal of dependence from foreign oil in 10 years and
100 percent in 20 years. And, finally, that in this bill we know we're
going to spend $800 billion that probably won't work.
In our bill and this amendment, Madam Speaker, we know that we only
pay $24 billion, and we only have to pay it when we get the results.
With that, I reserve the balance of my time.
Mr. WAXMAN. Madam Speaker, I understand that our side has the right
to close.
The SPEAKER pro tempore. The gentleman is correct.
Mr. WAXMAN. I reserve the balance of my time.
Mr. FORBES. Madam Speaker, I yield the balance of my time to the
distinguished minority leader, the gentleman from Ohio (Mr. Boehner).
The SPEAKER pro tempore. The gentleman from Ohio is recognized for 2
minutes.
Mr. BOEHNER. Let me thank my colleague for yielding.
Madam Speaker, I congratulate you on your upcoming marriage and your
new job. All of us on the Republican side of the aisle thank you for
your service to this institution and your service in the Chair. Good
luck to you.
My colleagues, we've been through a very difficult time in our
economy. We've had the great economic shocks of last fall, and we've
seen unemployment climbing month after month after month. It is now at
some 9.4 percent.
Earlier this year we passed a 1,100-page bill that no one read. It
was supposed to be about putting the American people back to work
again. It was supposed to be about stimulating our economy. And all we
heard during that debate was about jobs, jobs and jobs. It's pretty
clear that what the bill really ended up being was nothing more than
spending, spending and more spending, because since that bill passed,
some 1.7 million Americans have lost their jobs. So when we look at the
legislation that continues to go through here, the American people are
seeing an awful lot of spending, an awful lot of money going to
government, but they're not seeing new jobs.
Now we come to what I believe is the most profound piece of
legislation that has come to the floor of this House in the last 100
years. It's hard to say in the first 6 months of the new Congress that
this could be the defining vote and the defining bill for this
Congress, but I really, truly believe that this is the defining bill.
The problems that this bill attempts to go after are the issues of
climate change and cleaning up our air, and, secondly, to build a new
alternative energy industry in the United States. Those are really the
two issues. Well, I guess a third issue would be jobs. Those are the
goals that this bill attempts to go after. But when you look at the
structure that's being built, it defies anyone's imagination to believe
that the Federal Government could create such an elaborate process to
deliver on those three goals.
I've got a chart here that goes through all of the agencies involved,
all of the structures that are created under this bill. It's all being
done, of course, by the Environmental Protection Agency. They are at
the center of this.
But if you look at all of the different agencies involved, you will
see that we've got the Federal Energy Regulatory Commission involved.
We've got the United States Department of Agriculture that's going to
be involved. The Internal Revenue Service will be engaged in this bill
as well. The Department of the Treasury. I wish I could tell you what
FWS was, but somebody could probably tell me. We have the Commodity
Futures Trading Commission that's going to be involved in helping to
regulate this. The National Oceanic and Atmospheric Administration, the
Weather Service, basically. The Department of Health and Human Services
is going to be involved in putting this together. The Department of
State will play a big role in making sure that we get cleaner air and
green energy. We've got the Department of Energy, of course, the
Department of Labor, the U.S. Army Corps of Engineers, the Bureau of
Indian Affairs, and the Bureau of Land Management. All these Federal
agencies are going to take part in trying to put this bill into action.
But that's not all. Not even close. We've got the Offsets Integrity
Advisory Board. We also have a Carbon Markets Oversight Interagency
Working Group that is going to try to help control who gets these
carbon credits and who doesn't, how they can be traded and how they
can't, and where in the world these offsets are going to be.
They don't have to be in the United States. We're going to see
billions of

[[Page H7679]]

American tax dollars being shipped around the world. Whether it's
replanting forests in other parts of the world, they're going to help
clean up our air. I'm sure our constituents want our money being
shipped overseas to plant trees.
But that's not all. That's not all. It's not even close. We've got
the Consumer Refunds Fund that is going to be outlined here. We've got
the International Reserve Allowance Program here. How about the
domestic offset providers? We've got the offset traders and the
national offset providers. We've got the Clean Vehicle Technical
Advisory Board. We have a Carbon Capture Board. And it goes on and on
and on.
This elaborate government structure that will cost the American
people several trillion dollars over the next 10 years, all in an
effort to clean up our air, will help build a new alternative energy
industry in the United States and help create jobs in our country. I
don't believe there are hardly any people in America who believe that
this giant government bureaucracy is going to be able to deliver on the
three goals that you outline.
And it's not just the cost, and it's not just the bureaucracy.
Listen, there's not a Member in this body that doesn't want to improve
the air quality in our country and around the world. There isn't a
Member in this body who doesn't believe that speeding up the
development of alternative sources of energy isn't good for America. No
one. There's complete agreement on that.
But do we need to go through all of this? Do we need to have a
national energy tax on every person in America who would drive a car,
who would flip on a light switch or who would buy an American-made
product, because virtually every American-made product has an awful lot
of energy in it.
That's not enough. If you look at this bill and you look at the
analysis of this bill, you'll see that two-and-a-half million jobs on
average will be lost each and every year over the next 10 years as a
result of this bill. Some of those people happen to reside in my
district, in Middletown, Ohio, where AK Steel is headquartered. They
make steel the old-fashioned way. They bring in iron ore, coal and
limestone. You get it hot enough, you've got steel. The cost of their
steel will increase 30 to 40 percent if this bill were to pass. And at
a time when we're trying to help the American automobile industry get
back on its feet, the last thing they're going to do is pay 30 or 40
percent more for their steel.

So what are they going to do? They're going to bring it in from
China, they'll bring it in from India, who are not burdened under this
regulatory scheme, nor are they burdened under our current
environmental regulations. So what happens is, high-energy jobs in
America are going to get shipped overseas at exactly the wrong time.
The American people sent us here to help this economy, to get them
back to work. This is the biggest job-killing bill that has ever been
on the floor of the House of Representatives, right here, this bill,
and I don't think that's what the American people want.
But if our goals are to clean up the air, to build a alternative
energy business in the United States, a thriving one, and to create
jobs, there's a better way to do this, and it's the all-of-the-above
strategy that we've been talking about in this Chamber for nearly a
year. That is to say, we need to have more alternative sources, whether
they be solar, wind, geothermal.
We can produce those additional types of energy and help renew them.
But, in the meantime, America needs energy to grow our economy, so we
need to have more drilling for oil and gas in the United States.
There's no question about it. We need to increase the supply of
American-made energy so that we bring down the price.
What we do in our bill is, we take all the royalties from the
development of additional oil and gas reserves in the United States and
we plow it back into renewable sources of energy. As a result, our bill
puts more money into renewables and speeding up the development of
renewables at a faster pace than the bill on the floor of the House
today.
That's not enough. We need to do all of the above. We need to develop
clean coal technology. We need to be serious about nuclear energy.
There's nothing in this bill before us that's going to allow us to
produce nuclear energy in any kind of a quick way, or, frankly, any at
all. But we all know it's the cleanest source of energy that we can
have in the United States. So why shouldn't we do all of the above?
Because here's what all-of-the-above does for us: It gives us cleaner
air. It gives us lower energy prices. It really does move us quickly
away from our dependence on all the foreign sources of oil that we have
to rely on today. And it will do more in a very simple way than this
big complex bureaucracy that is being outlined in this bill.
Why can't we do all of the above? Why do we have to try to establish
this giant structure that attempts to put some cap in, but really
doesn't, when we can do something simple that will help lower prices
for Americans while cleaning up the air and moving us to alternative
sources of energy. No, that's not what we're dealing with here today.
And if all of this wasn't enough, I woke up this morning and realized
that last night at 3:09 a.m., a 300-page manager's amendment was
dropped into the hopper, at 3:09 a.m.

{time}  1745

I have spent most of the day trying to look at this 309-page bill and
trying to come up with and understand what this 309-page amendment to
the 1,200-page bill really does? As I started to go through this, I
didn't get past the first page, where on page 16, line 5 strike 1992
and insert 1988, and on line 13 strike 1992 and insert 1988. This
appears to deal with the hydropower, and I'm trying to figure out what
is the impact of this date change? Nowhere in this manager's amendment
can I find out what the impact of that is.
Then we get to page 2, not from components of the National Wilderness
Preservation System, Wilderness Study Areas, Inventoried Roadless Areas
or old growth stands and late-successional stands. So does this mean
that renewable biomass is not defined by what it is but rather where it
comes from? And why was this change made at 3:09 a.m. this morning?
We get to page 9, the President shall ensure that, of the total
amount of electricity Federal agencies consume in the United States
during each calendar year, the following percentage shall be renewable
electricity.
We are going to mandate to every Federal agency how much electricity
they buy that comes from renewable sources. And in here we have this
year, 2012, 6 percent, 2013, 6 percent, 2014 we go to 9\1/2\ percent,
2016 we go to 13 percent. 2018 we go to 16\1/2\ percent. And 2020
through 2039, 20 percent of the electricity that goes into every
Federal agency has to come from renewable sources. Do we have any idea
whether this is possible? I can't find the answer here.
On Page 10 it says, contracts for renewable energy, a contract for
the acquisition of electricity generated from a renewable energy
resource for the Federal Government may be made for a period of not
more than 20 years. Twenty-year contracts. What if the price of
renewable energy goes down? Are taxpayers going to be stuck with a
contract that is written today as opposed to what that contract could
be negotiated for 10 years from now? I can't tell, because there is no
answer here.
Or we get on page 12, renewable biomass. The term ``renewable'' means
any of the following. And it goes through of this language. Of course,
there is nothing renewable in a National Wilderness Preservation System
or a Wilderness Study Area or Inventoried Roadless Areas or old growth
stands or late-successional stands except for dead, severely damaged or
badly infested trees. Wasn't this the same language that we had on page
2? And why is it being repeated again? I can't tell as I read through
this.
So we get to page 16, so that the vehicle or engine is capable of
alternative fuel. First we are going to require now every car sold in
America, it has to have an engine that is capable of operating on an
alternative fuel. So what if you have a car that doesn't operate on a
renewable fuel? Are we going to buy the car back from the American
people? Are we going to reimburse them for their cost? I can't tell,
because, again, this was dropped at 3:09 a.m., and no one probably has
had a chance to read it.
How about on page 24, there are authorized to be appropriated such
sums

[[Page H7680]]

as may be necessary to carry out this paragraph. It sounds like a blank
check to me.
Or on page 26, this section applies only to States located in the
Western Interconnection and does not apply to States located in the
Eastern Interconnection, to the States of Alaska or Hawaii or ERCOT. So
are we going to have different rates for different parts of the country
under this amendment that was filed at 3:09 a.m. this morning?
Then we get to Page 30. The Federal Energy Regulatory Commission
shall act as the lead agency for purposes of coordinating all
applicable Federal authorizations and related environmental reviews. So
now we have FERC is in charge of coordinating environmental reviews, as
I read this. Is that what Greenpeace demanded be part of this bill?
Then we get to page 34. Page 34, it says not later than 1 year after
August 8, 2005--

Parliamentary Inquiries

Mr. WAXMAN. Madam Speaker, I have a parliamentary inquiry.
The SPEAKER pro tempore. The gentleman will suspend.
Does the gentleman yield for a parliamentary inquiry?
Mr. BOEHNER. I would be happy to yield to the gentleman.
Mr. WAXMAN. The Republican leader was yielded the balance of the
time, which I think amounted to around 4 or 5 minutes. He has talked
for around 20. I know we have this ``magic'' minute that gives leaders
a lot of extra time to speak, but I'm just wondering if there is some
limit under the rules on the time that a leader may take, even though
the time yielded was not 20 or 30 minutes.
The SPEAKER pro tempore. It is the custom of the House to hear the
leaders' remarks.
Mr. WAXMAN. Further parliamentary inquiry.
The SPEAKER pro tempore. Does the gentleman yield for a parliamentary
inquiry?
Mr. BOEHNER. I will be happy to yield to the gentleman.
Mr. WAXMAN. I know it is the custom of the House to give a little
extra latitude. Is there any outside limit to the amount of time a
leader might take? And do we have historical records that might be
broken tonight? Or is this an attempt to try to get some people to
leave on a close vote?
The SPEAKER pro tempore. It is the custom of the House to hear to the
leaders' remarks.
Mr. BOEHNER. Reclaiming my time, the gentleman has had his 30 years
to put this bill together, and the House is going to spend a whopping 5
hours debating the most profound piece of legislation to come to this
floor in 100 years. And the chairman has the audacity to drop a 300-
plus-page amendment in the hopper at 3:09 a.m. this morning. And so I
would ask my colleagues, don't you think the American people expect us
to understand what is in this bill before we vote on it?
So we get to page 34. Not 1 year after August 8, 2005. Now, wait a
minute. One year later? One year after August of 2005? Wasn't that 3
years ago? I'm just trying to understand what the gentleman has in his
amendment.
Then we get to page 36, high efficiency gas turbine research,
development and demonstration. Now, I'm trying to figure out who
inserted this broad new section of the bill that is covered nowhere in
the underlying bill.
Then we get to page 39, $65 million for each of the fiscal years 2011
through 2014, $65 million for 3 years. And who is going to get this
money? I can't tell in this amendment.
And as we go through this, page 41, determine any geographic area
within the contiguous United States that lacks a Federal power
marketing agency. Because, you know, we can't move power around the
country without a Federal power marketing agency. We do it today, but
now we have to have a new government agency to do this. We are doing it
already.
Or same page, 41, the establishment of any new Federal lending
authority, including authorization of additional lending authority for
existing Federal agencies, not to exceed $3.5 billion per geographic
area identified in subsection (a)(1). This is $3.5 billion in loans for
each geographic area, but we don't know how many geographic areas are
included or how many billions in total we are really talking about.
How about on page 42, any source of funds, including Federal funds
provided through the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, shall qualify as the building owner's 50 percent
contribution. Now, let me make sure I get this straight. So now you can
use federal money for non-Federal matching requirements. How much is
all of this going to cost?
Or on page 45--remember now, this is the amendment. This is not the
bill. This is the amendment filed at 3:09 a.m. On Page 45, this section
shall apply only to construction beginning after the date of enactment
of this Act. For those of you who don't know it, all of California
housing standards are now going to be imposed on every American
community. You don't have the right to have your own building standards
in your community or in your State. Hell, no, the Federal Government is
going to tell you what they are. And guess what? We all get to have
California standards. Who is going to pay the price for those new
homes? How are we going to do affordable housing when we are pushing up
the cost of houses? And while I'm at it, we have to have an energy
rating for every home in America. In this bill, we require every home
to have an energy rating. And if you are going to sell your house,
guess what? You have to have a review, bring people in, have them check
out your windows, your appliances, your hot water heater, your door,
make sure that your house is energy efficient. And guess what if it
isn't? You have got to bring it up to standards before you can sell it.
Now what kind of bizarre notion is that?
Well, we get to page 46 at the bottom, a plan for local governmental
actions to be taken to establish and sustain local building code
enforcement administration functions, without continuing Federal
support, at a level at least equivalent to that proposed in the grant
application. Do you all get that? It doesn't explain it. But here is
what it is. The Federal Government is going to mandate all of these new
standards on every house built in America. It is going to cost your
local building department all kinds of money to enforce this and to
revise their code. And when the money runs out, we are going to allow
them to apply for a grant to the United States Government. I'm sure my
constituents will love that.
Page 48, each building code enforcement department receiving a grant
under subsection (a) shall empanel a code administration and
enforcement team consisting of at least one full-time building code
enforcement officer, a city planner, and a health planner or similar
officer.
Now I have some big towns in my district. Hamilton, Middletown and
Westchester can probably afford this new enforcement. But I can take
you to Chickasaw, Mercer County, in my district. They don't have one
full-time person that works for the village. Not one. Look at the
mandate on every city and village in America right here in this bill.
So that we are not only going to tell you what the codes are going to
be. But we are going to tell you how many people you need to hire to
enforce this in this section of this code. See, we actually did take
time, most of today, trying to understand what was in here.
How about on page 53, solar energy systems building permit
requirements for receipt of community development block grants. So what
are we doing here to amend the community development block grant
program? Are we going to impose global warming requirements on all the
cities who get CDBG monies from us? That is what it appears to say to
me.

{time}  1800

Or on page 54, any metropolitan city or urban county, during such
fiscal year the cost of any permit or license, for construction or
installation of any solar energy system for any structure, that is
required by the metropolitan city or urban county, or by any other
political subdivision of such city or county complies with paragraph
(2).
So now we are going to tell them what to charge for their building
permits as well in every city in America.
Then we get to page 56. The Secretary of Energy shall issue
regulations to prohibit any private covenant, contract provision, lease
provision, homeowners' association rule or bylaw.
Let me read this again: The Secretary of Energy here in Washington,

[[Page H7681]]

DC, shall issue regulations to prohibit any private covenant, contract
provision, lease provision, homeowners' association rule or bylaw. Just
for those of you who didn't think there might not be a lot of
government bureaucracy in this bill.
We get to page 63. The amount necessary to change consumer behavior
to purchase water efficient products and services. So now--let me read
this again and make sure that I am right. The amount necessary to
change consumer behavior to purchase water efficient products and
services. So we are going to provide the American people with money in
order to change their behavior so they will buy goods and services that
they don't want to buy.
I wonder how much that will cost.
Page 64, subsection 2, to create jobs through the retooling and
expansion of manufacturing facilities to produce clean energy
technologies to create jobs. So how many jobs is this going to create?
Will it replace the 2.5 million jobs that will be lost each year as a
result of this bill? I can't tell.
Now going to page 68, the Secretary shall award grants to States to
establish revolving loan funds to provide loans to small and medium-
sized manufacturers. So who is going to compensate manufacturers for
putting them out of business with more loans?
Let me get to page 70. In particular, where mass layoffs have
resulted in a precipitous increase in unemployment. So we have a
provision in here that recognizes that millions of American jobs are
going to be lost; but don't worry, don't worry, we are going to extend
your unemployment. Most of my constituents who are unemployed don't
want more unemployment. They want a job, and this is going to kill
them.
I hate to do this to all of you, I do. I hate to do this, but when
you file a 300-page amendment at 3:09 in the morning, somebody needs to
work on it, and I worked on it today and I want to make sure that
everybody understands what is in this 300-page amendment.
Page 76. Certification by Hollings Manufacturing Extension Center. A
Hollings Manufacturing Extension Center or other entity designated by
the Secretary for purposes of providing certification under clause so
and so and so and so.
So now, why are we singling out one company, one company, and where
did this company come from?
Further down the page on page 76, Repayment upon relocation outside
the United States. In general. If a person receives a loan under
paragraph (1) to finance the cost of reequipping, expanding, or
establishing a manufacturing facility as described in subsection
(c)(1)(A) or to reduce the energy intensity of a manufacturing facility
and such person relocates the production activities of such
manufacturing facility outside the United States.
So we recognize here that we are going to force companies to take
their jobs and ship them overseas. It is right here. It is right here
in the bill, and I am glad it is recognized by my colleagues.
Then we go to page 80, to support manufacturers in their
identification of and diversification to new markets. Another admission
that the bill before us is going to kill millions of small businesses
and even tens of millions of jobs, so we have to have an effort in here
to support manufacturers in their identification and diversification
into new markets.
Then we get to page 83. Consumer Behavior Research. The Secretary of
Energy is authorized to establish a research program to identify the
factors affecting consumer actions to conserve energy and make
improvements in energy efficiency. Through the program the Secretary
will make grants to public and private institutions of higher education
to study the effects of consumer behavior on total energy use.
Do we really need to spend government money to do a study on why
people don't want to pay twice the cost and get half the quality?
Page 87, the development of a global framework for the regulation of
greenhouse gas emissions from civil aircraft that recognizes the
uniquely international nature of the industry and treats commercial
aviation industries in all countries fairly.
Will this include China and India? I can't tell from the amendment
that we have in front of us.
On page 92, we want to make sure that the structure have appropriate
electrical outlets with the facility and capacity to recharge a
standard electric passenger vehicle, including an electric hybrid
vehicle, where such vehicle would normally be parked.
Oh, no, we are not just going to take the California standard and
impose it on every community in America, oh, no. Now we are going to
tell you where the electric outlets are going to be and how big they
have to be to charge a hybrid vehicle.
I just don't understand whether this would apply to nursing homes
where there are no cars.
Oh, here we are, page 96. Existing structures. For existing
structures, a reduction in energy consumption from the previous level
of consumption for the structure, as determined in accordance with
energy audits performed both before and after any rehabilitation or
improvements undertaken to reduce such consumption, that exceeds the
reduction necessary for compliance with the energy efficiency standards
under subsection (a) then in effect and applicable to existing
structures.
So not only are we going to tell every community in America what the
building codes are going to be, what the efficiency standards are going
to be, but if you make changes to your house, you have to have another
study done to show how much increase in energy efficiency was gained.
That will help sell a lot of new houses and a lot of old ones.
Page 97, for manufactured housing, energy star rating with respect to
fixtures, appliances, and equipment in such housing, as such standard
or successor standard is in effect for purposes of this section.
Please, is there anything that we are not regulating in this bill?
How about page 105. Waive or modify any existing statutory or
regulatory provision that would otherwise impair the implementation or
effectiveness of the demonstration program under this section,
including provisions relating to methods for rent adjustments,
comparability standards, maximum rent schedules, and utility
allowances; notwithstanding the preceding provisions of this paragraph,
the Secretary may not waive any statutory requirement relating to fair
housing, nondiscrimination, labor standards, or the environment.
Now in implementing this demo program, rising rent can be dismissed
out of hand, but labor standards or the environment cannot, as I read
it.
Let me go to page 107. No amounts made available under the American
Recovery and Reinvestment Act of 2009 can be used to carry out the
demonstration program under this section.
So if no stimulus funds can be used, and the majority claims stimulus
funds are for job creation, is this demo going to create one new job? I
don't think so.
Page 112, additional credit for Fannie Mae and Freddie Mac housing
goals for energy-efficient and location-efficient mortgages. Oh, yeah.
Oh yeah, everybody listen up here. It is not enough that we have huge
problems with Fannie Mae and Freddie Mac, they are at the core of the
credit meltdown we have had in our country, but we are going to give
them a little more money so they can have goals for energy-efficient
and location-efficient mortgages. Now we are going to tell Fannie Mae
and Freddie Mac what kind of mortgages we are going to have in the
marketplace.
How about page 113. Supports housing that complies with enhanced
energy efficiency and conservation standards, or the green building
standards, under section 284 of such Act.
This is the Federal Government using Fannie Mae and Freddie Mac to
impose new Federal building codes and standards across the country.
Let me go to page 114. The Federal Housing Enterprises Financial
Safety and Soundness Act of 1992, as amended, by the Federal Housing
Finance Regulatory Reform Act of 2008.
If this is supposed to be about energy, why are we further bogging it
down with trying to solve problems for Fannie Mae and Freddie Mac?
Page 115, the term ``energy-efficient mortgage'' means a mortgage
loan under which the income of the borrower, for purposes of
qualification for such loan, is considered to be increased by not less
than $1 for each $1 of savings projected to be realized by the borrower
as a result of cost-effective energy-saving designs.

[[Page H7682]]

I'm sure that will create a lot of jobs.
And then we get to page 141, the Cranston-Gonzalez National
Affordable Housing Act is amended. Why are we amending the Cranston-
Gonzalez National Affordable Housing Act? I thought we were doing an
energy bill here.
Page 142, use of building materials and methods that are healthier
for residents of the housing, including the use of building materials
that are free of added known carcinogens that are classified as Group 1
Known Carcinogens by the International Agency for Research on Cancer.
We are going to outline building materials as well, it appears.
Then we have a grant program to increase the sustainability of low-
income community development capacity. We are going to provide loans,
grants, or predevelopment assistance to eligible community development
organizations or qualified youth service and conservation corps to
carry out energy efficiency improvements.
I just want to know if ACORN would qualify for these grants.
And on page 146, we have another authorization here. There are
authorized to be appropriated to the Secretary to carry out this
section $10 million for each of the fiscal years 2010 through 2014.
So all the Members know, we have spent all of the year's income by
April 16th. Everything we spend here, we have to borrow from our kids
and grandchildren and the Chinese and everybody else who wants to loan
us money.
Page 148, 25 points, in the case of any proposed plan, or portion
thereof, consisting of new construction. So now we have a new
government formula to determine winners and losers when it comes to the
building of new houses.
Page 149, at the bottom, for purposes of this paragraph, the
Secretary shall identify rating systems and levels for green buildings
that the Secretary determines to be the most likely to encourage a
comprehensive and environmentally sound approach to ratings and
standards for green buildings.
So the government is going to decide what is green, not the American
people.
In identifying these green rating systems, the Secretary has to take
into consideration the ability and availability of assessors and
auditors to independently verify the criteria and measurement of
metrics at the scale necessary to implement this paragraph.
She also has to improve indoor and outdoor environmental quality
through enhanced indoor and outdoor air quality, thermal comfort,
acoustics, outdoor noise pollution, day lighting, pollutant source
control, sustainable landscaping, and use of building system controls
and low- or no-emission materials, and such other criteria as
determined by the Secretary.
So why are we giving the Secretary all of this authority under this
Act to determine virtually everything?

{time}  1815

The Secretary may, by regulation, adopt and apply, for purposes of
this paragraph, future amendments and supplements to, and editions of,
the national Green Communities criteria checklist, any standard or
standards that the Secretary has determined to be substantially
equivalent to such checklist, and the green building ratings systems.
So a lot of power for the new Secretary without any congressional
oversight.
Now I really hate to do this, but when you file a 300-page amendment
at 3:09 a.m., the American people have a right to know what's in this
bill and they have a right to know what we're voting on.
Let me get to the bottom of page 155:
Revision of Appraisal Standards. Each Federal financial institutions
regulatory agency shall, not later than 6 months after the date of the
enactment of this Act, revise its standards for the performance of real
estate appraisers in connection with federally related transactions
under the jurisdiction of the agency to comply with the requirement
under the amendments made by paragraph (1) of this subsection.
So now we have to retrain every appraiser in America so that they
understand this law, so that they know how to properly appraise the
value of someone's property. And they need to meet the requirements
established pursuant to subsection (f) for qualifications regarding
consideration of any renewable energy sources, or energy efficiency.
So every appraiser is not only going to be retrained but now we're
going to have to send them all to school.
Let me get to page 157: The Appraisal Subcommittee--another new part
of the bureaucracy--shall establish requirements for State
certification of State certified real estate appraisers and for State
licensing of State licensed appraisers, to ensure that appraisers are
qualified to consider, in determining the value of a property, any
renewable energy sources for, or energy efficiency or energy-conserving
improvements or features of, the property.
Interesting.
And the Secretary--on page 158--shall require the Housing Assistance
Council to encourage each organization that receives assistance from
the Council with any amounts made available from the Secretary to
provide that any structures and buildings developed or assisted under
projects, programs, and activities funded with such amounts complies
with the energy efficiency standards under section 284(a) of this
subtitle.
More power for a lot of unelected bureaucrats.
Then on page 160, the middle of the page, it says:
In General. The Secretary shall use amounts in the Fund to provide
loans to States and Indian tribes to provide incentives to owners of
single-family and multifamily housing, commercial properties, and
public buildings to provide renewable energy sources, and it goes on
and gives a whole long list. But there is no appropriation in here for
it.
And then on page 164 we authorize another $5 billion and there is no
idea where this money comes from.
Page 165. Green Banking Centers. It's not going to do houses and
commercial properties and multifamily housing. Now we're going to have
Green Banking Centers.
The Federal banking agencies shall prescribe guidelines encouraging
the establishment and maintenance of ``green banking'' centers by
insured depository institutions to provide any consumer who seeks
information on obtaining a mortgage, home improvement loan, home equity
loan, or renewable energy lease with additional information.
Are you kidding me? I've heard of blackmail, but now I know what
greenmail really is.
On page 170 at the top of the page, section 299F.
Government Accountability Office Reports on Availability of
Affordable Mortgages.
Really. After we drive the price of every mortgage up in America,
we're going to have them do a report on affordable mortgages. Guess
what--they're going to be a hell of a lot more expensive.
You get to page 173.
The Secretary of Housing and Urban Development may make commitments
to a guarantee under this section and may guarantee the repayment of
the portions of the principal obligations of eligible mortgages that
are used to finance eligible sustainable building elements for the
housing that is subject to the mortgage.
So now we're not only going to guarantee the mortgage but we're going
to guarantee the improvements to the property as well.
Page 180. And I would direct all of your attention if you have a copy
of this to section 3 of that page:
The full faith and credit of the United States is pledged to the
payment of all guarantees issued under this section with respect to
principal and interest.
The term ``green portion'' means, with respect to an eligible
mortgage, the portion of the mortgage principal referred to in
subsection (b)(2) that is attributable, as determined in accordance
with regulations issued by the Secretary.
So we've got a new government program and we're going to guarantee
this with the full faith and credit of the United States.
Then on page 184:
On April 1 (or a later date established by the administrator under
subsection (j)) of the calendar year in which a term offset credit
expires, the owner or operator holds for purposes of finally
demonstrating compliance, an allowance or a domestic offset credit.

[[Page H7683]]

I read it because I cannot tell you what that means.
On page 190 at the bottom of the page it talks about algae.
And on page 189 we've got Renewable Biomass. This is the third
definition of Renewable Biomass that we have just in the manager's
amendment, much less in the bill.
This caught my attention, at the bottom of page 191, section 3, for
vintage year 2012.
Are we talking about wine?
Then we get to page 208. Carbon Derivative Markets. Now we've already
heard enough about credit default swaps, but I think most of you know
that under this section, the Commodity Exchange Act is amended by
striking ``or an agricultural commodity'' and inserting ``an
agricultural commodity, or any emission allowance, compensatory
allowance, offset credit, or Federal renewable electricity credit
established or issued under this Act.''

So now we're going to let those governed under the CFTC trade these
credits with others around the world.
And on page 209 it talks about the effect of derivatives regulatory
reform legislation. Upon passage of this legislation that includes
derivatives, regulatory reform, sections 351, 352, 354, 355, 356 or 357
shall be repealed.
Any idea of the derivatives regulations that we're repealing in this
bill? You probably didn't know we were doing that.
Then on page 210:
To prevent an increase in greenhouse gas emissions in countries other
than the United States--I presume that means countries like India and
China--to induce foreign countries, and, in particular, fast-growing
developing countries, to take substantial action with respect to their
greenhouse gas emissions.
India and China have made it perfectly clear to every one of us that
they have no interest and will not go down this path.
It further goes on to ensure that the measures described in subpart 2
are designed and implemented in a manner consistent with applicable
international agreements to which the United States is a party.
The very structure of the border provisions, however, makes this
impossible to achieve. The Wall Street Journal said the other day and
suggested that this bill really could start a trade war and that if we
begin to try to impose our bureaucracy on other countries, we could
just have that.
Let me get to page 225. Distribution of Emission Allowance Rebates.
Further down the page, it says, Shall be pursuant to the entity's
indirect carbon factor as calculated under subsection (b)(3).
Can anybody tell me how to calculate an indirect carbon factor or
what an indirect carbon factor is?
Then we get to page 226. That more than 85 percent of United States
imports for that sector are produced or manufactured in countries that
have met one of the criteria in that section, then the 10-year
reduction schedule set forth in this subsection shall begin in the next
vintage year.
So now we're going to try to control imports from countries based on
what they're doing with regard to their energy policy.
Use of Other Data to Determine Factor, page 231. Where it is not
possible to determine the precise electricity emissions intensity
factor for an entity using the methodology in clause (i). In what
instances would it not be possible to determine what that is?
Then we get to page 233:
In each eligible industrial sector every 4 years, using an average of
the four most recent years of the best available data. For purposes of
the lists required to be published no later than February 1, 2013, the
Administrator shall use the best available data for the maximum number
of years, up to 4 years, for which data are available.
Why every 4 years? What's this data used for? Then it goes on: The
Administrator shall limit the average direct greenhouse gas emissions
per unit output, calculated under paragraph (4), for any eligible
industrial sector to an amount that is not greater than it was in any
previous calculation under this subsection.
So what is the cost of this provision?
Or on page 234: The Administrator shall use data from the greenhouse
gas registry established under section 713. How much is this going to
cost?
Promoting International Reductions in Industrial Emissions, page 236.
Congress finds that for the purposes of this subpart, as set forth in
section 761(c), can be most effectively addressed and achieved through
agreements negotiated between the United States and foreign countries.
It is the policy of the United States to work proactively under the
United Nations Framework Convention on Climate Change, and in other
appropriate fora, to establish binding agreements, including sectoral
agreements, committing all major greenhouse gas-emitting nations to
contribute equitably to the reduction of global greenhouse emissions.
The bottom line of all of this is all pain for United States citizens
and no gain.
Then we get to page 237: The President shall provide a notification
on climate change described in paragraph (2) to each foreign country
the products of which are not exempted under section 768.
This is less than a fig leaf here. They're trying to pretend that
this notification will satisfy the consultation required by the WTO
rules. It won't end there and it's going to result in retaliation
against United States exports.
Then we get further down on that page: Requesting the foreign country
to take appropriate measures to limit the greenhouse gas emissions in
those countries.
So if they're really nice they won't have to but if we can, we can
force them to adopt our bizarre regulatory scheme.
Then we get to page 238. United States Negotiating Objectives with
Respect to Multilateral Environmental Negotiations.

{time}  1830

So here we are telling the administration what their objectives are
going to be as they negotiate environmental issues with other countries
around the world.
Presidential Reports, page 239: Not later than January 1, 2017, and
every 2 years thereafter, the President shall submit a report to
Congress on the effectiveness of the distribution of emission allowance
rebates under subpart 1 in mitigating carbon leakage in eligible
industrial sectors.
Let me go to page 260: Modification of Earned Income Credit Amount
For Individuals With No Qualifying Children.
Why does this bill neglect middle class families in America? Why is
it that we're only going to help some people who will qualify for the
earned income credit for individuals with no qualifying children?
Further down here it says: the Secretary determines experienced a
reduction in purchasing power as a result of the provisions of this
act.
That's a flat-out admission that every American is going to pay more
for all of their energy. And it goes on and on and on.
Ladies and gentlemen, does this give you some idea of why the
American people think their Congress is out of touch? The idea that the
Federal Government can create this giant bureaucracy to try to control
how much CO<inf>2</inf> gets into atmosphere.
We know that if we were to do our all-of-the-above energy strategy,
we'd see renewable sources of energy on the scene, available, producing
jobs more quickly than under the underlying bill. We know that under
our bill, you could actually have nuclear energy plants being built,
cleaning up the air at a much faster rate than the underlying bill.
But there's really a big underlying difference between our approach
and the approach of my colleagues on the other side of the aisle, and
that is trusting the American people. If we give the American people
the right incentives, they'll make the right decisions. But that's not
what we have on the floor today. What we have on the floor today is
typical big government. And the fight that we have between the two
sides of the aisle really boils down to one word: It boils down to
freedom. The freedom to allow the American people to live their lives
without all of these extra taxes and all of this bureaucracy.
And I would just say to my colleagues, I did my best to try to get
through the 300-page amendment that

[[Page H7684]]

was filed at 3:09 in the morning. Obviously somebody knew this was
coming, but it wasn't filed until 3:09 this morning.
This is not the way we should be doing legislation. The American
people expect more of us. And you know what? They deserve a lot more
from us.
So I would say to my colleagues let's not go down this path of
increasing taxes on every single American. Let's not go down the path
of moving millions of jobs to China, India, and other countries around
the world. Let's trust the American people. Let's give them our all-of-
the-above energy act and allow America to flourish, to allow jobs to
flourish, and, most importantly, to allow freedom to flourish.
Mr. WAXMAN. Madam Speaker, the minority leader was yielded 2\1/2\
minutes. Could you tell us how much time he consumed?
The SPEAKER pro tempore. The gentleman used a customary amount of
time.
Mr. WAXMAN. Well, Madam Speaker, the 2\1/2\ minutes was extended to
over an hour, and this is from the same party that had a 15-minute roll
call extended into 3 hours while they tried to twist the arms of their
own people.
Madam Speaker, to close the debate, I wish to yield the balance of my
time, and I presume it will not be an hour or two, to our distinguished
Speaker because of whose leadership we have the attempt to do something
that the Republicans neglected, and that's to help our country deal
with our energy problems, Speaker Nancy Pelosi.
Ms. PELOSI. I thank the gentleman for yielding.
Madam Speaker, I want to join those who have sung your praises as a
distinguished presider over hundreds of hours of debate in the House of
Representatives. Your service here, your leadership here will long be
remembered and be an inspiration to us. Katherine will be very missed,
but now she's off to college. Thank you, Ellen Tauscher, for being such
a great chairwoman and presider over the House of Representatives.
Madam Speaker, I also wish to acknowledge the leadership of our
chairmen, who so ably brought this important legislation, this historic
and transformational legislation, to the floor: Chairman Waxman of the
Energy and Commerce Committee, Chairman Markey of the Energy Security
and Climate Change Committee, Chairman Rangel of the Ways and Means
Committee, and Chairman Peterson of the Agriculture Committee. We thank
them for their leadership and for giving us this opportunity today.
Madam Speaker, no matter how long this Congress wants to talk about
it, we cannot hold back the future. And so in order to move on with the
future, I want to yield back my time, submit my statement for the
Record, and urge my colleagues to vote for this important legislation.
And when you do, just remember these four words for what this
legislation means: jobs, jobs, jobs, and jobs.
Let's vote for jobs.
Madam Speaker, today the House has an opportunity to pass historic
and transformative legislation: the American Clean Energy and Security
Act.
I would like to acknowledge the authors of the legislation: Chairman
Waxman of the Committee on Energy and Commerce and Chairman Markey of
the Select Committee on Energy Security and Climate Change.
I would also like to acknowledge: Chairman Collin Peterson of the
Agriculture Committee for bringing the priorities of America's farmers
to this bill and Chairman Rangel who helped ensure that this bill is
fiscally responsible and fully paid for.
And I would like to acknowledge the many staff who worked so hard on
this legislation.
In his inaugural speech, President Obama called upon us to, ``harness
the sun and the winds and the soil to fuel our cars and run our
factories.''
One week and one day later, we did just that. We passed the American
Recovery and Reinvestment Act--the single largest investment in history
in clean energy--with over $69 billion for new investments in clean
energy.
Shortly thereafter, we passed the Omnibus spending bill, with
significant investments in advanced energy research and the labs and
equipment necessary to perform the next generation of advanced energy
research.
We passed the Budget, which included a 10% increase in investment in
clean energy and energy efficiency.
This was building upon the work of the last Congress: The Farm Bill
was the first in history to include a real investment in energy
independence, with over $1 billion to leverage renewable energy
industry investments in new technologies and new feedstocks.
And the historic and bipartisan energy bill signed by President Bush
increased fuel efficiency standards for vehicles for the first time in
30 years and redirected this country's energy policy toward clean,
renewable energy.
Creating a new energy policy and addressing the global climate crisis
is: Energy independence is: a national security issue by reducing our
dependence on foreign oil; an environmental and health issue; it is a
moral issue; and it is an economic issue for America's families.
There are four words that can describe this bill: jobs, jobs, jobs,
and jobs.
Madam Speaker, we debate this legislation as millions of Americans
are struggling in this economy. This is our moment to transform our
economy and create jobs.
This is the moment when we can unleash private sector investment in
clean energy to create millions of new jobs and make America the global
innovation leader. It will promote clean energy technology--made in
America. It will put America in the lead in the global competition.
As we rebuild America in a green way, we will create jobs that cannot
be shipped overseas. We are creating a framework in which innovation
can occur and that gives business certainty that we are moving to a
clean energy economy. That will unleash innovation, investment, and
venture capital to drive new technologies into the market.
America's farmers will fuel America's energy independence. They will
do so with carbon-offsetting crops and forests, and biofuel and wind
farms to repower America.
This historic legislation is the product of months of consensus
building to achieve an effective and affordable transition to a clean
energy future.
I am so pleased that the diverse coalition supporting this bill
includes everyone from: The Union of Concerned Scientists to the
Evangelical Climate Initiative and the U.S. Conference of Catholic
Bishops; from the business community to labor organizations, from ALCOA
to the U.S. Steelworkers of America; from the U.S. Conference of Mayors
to members of the U.S. Climate Action Partnership, a coalition of
business and nonprofit groups.
Today, we have an opportunity to lead America toward an effective and
affordable transition to a clean energy future. It is a moment we
cannot afford to miss. We have a responsibility to create jobs and make
America more secure, protect the health of our citizens, and honor our
moral responsibility to our children and our future generations.
Vote to create jobs. Let's put this Congress on the right side of the
future. Vote yes on the American Clean Energy and Security Act.
I urge my colleagues on both sides of the aisle to protect God's
beautiful creation by supporting this legislation.

Organizations Expressing Support for House Passage of The American
Clean Energy and Security Act

Electric Utilities and Energy Companies

Duke Energy
Exelon
PG&E Corporation
FPL Group
Austin Energy
National Grid
PNM Resources
Avista
NRG Energy Inc.
PSE+G
Edison Electric Institute
ConEdison
Constellation Energy
Entergy
Austin Energy
Renewable Fuels Assn.

Manufacturing, Industry and Corporate

GE
Dow Chemical
Dow Corning
National Semiconductor
HP
Business Council on Sustainable Energy
Solar Power Industries
Alcoa
John Deere
Alstom Power
Johnson & Johnson
Siemens
Rio Tinto
BP Solar
Symantec
Applied Materials
eBay
Levi Strauss
Nike
Starbucks
Aspen/Snowmass
Seventh Generation
Clif Bar
Kleiner Perkins Caufield & Buyers
Calpine Corp.
Genpower
BluewaterWind

Labor

Steelworkers
Boilermakers
Communications Workers
Laborers International
Services Employees

[[Page H7685]]

Utilities Workers Union
Building and Construction Trades

Farm and Agriculture

National Farmers Union
American Farmland Trust
Growth Energy

Community, Faith and Environment

U.S. Conference of Mayors
Environmental Defense Fund
League of Women Voters
National Parks Conservation Assn.
National Wildlife Federation
National Resource Defense Council
The Wilderness Society
American Institute of Architects
World Resources Institute
Pew Center on Global Climate Change
The Nature Conservancy
Sierra Club
HipHop Caucus
Center for American Progress
Latino Coalition
Union of Concerned Scientists
National Congress of American Indians
World Wildlife Fund
American Public Health Association
Defenders of Wildlife
League of Conservation Voters
Pew Environment Group
National Audubon Society
Renewable Fuels Assn.
American Chemical Society
American Rivers
Clean Water Action
Earthjustice
Environment America
International Forum on Globalization
Oxfam Oceana
Physicians for Social Responsibility
Jewish Council for Public Affairs
Izaak Walton League of America
Baptist Pastors and Theologians
Woods Hole Research Center/20 eminent scientists and
leaders
United Nations Foundation
The Episcopal Church
United States Conf. of Catholic Bishops
Catholic Relief Services
Evangelical Climate Initiative
National Council of Churches
National Assn. of Clean Air Agencies
CARE
Trout Unlimited
United Methodist Church-General Board of Church & Society
Evangelical Lutheran Church in America
Climate Communities/ICLEI-Local Governments for
Sustainability USA

Mr. WOLF. Madam Speaker, our country has always been the world's
innovation leader, and I believe innovation and not taxation must be
the answer to the energy challenges we face.
That's why I support the Forbes amendment which would substitute this
bill with a new Manhattan project for energy independence, bringing
together the best and brightest minds of a new generation of
scientists, engineers and researchers in a unified national challenge
just as we did with the original Manhattan project in World War II.
Like the first project, which was launched to ensure the security of
our country, today our national security depends on our ability to
produce reliable, cost-effective and environmentally friendly sources
of energy to fuel our economy.
This project would award significant cash prizes to the first person
or entity to achieve set energy goals, such as doubling car fuel
efficiency to 70 mpg while keeping vehicles affordable, cutting home
and business energy usage in half, making solar power work at the same
cost as coal, making the production of biofuels cost-competitive with
gasoline, safely and cheaply storing carbon emissions from coal-powered
plants, safely storing or neutralizing nuclear waste, and producing
usable electricity from a nuclear fusion reaction.
Just like the challenge of the space program to put a man on the moon
in a decade, I believe by working together, a new Manhattan project
could transform our nation's energy security. But the ``cap-and-trade''
plan the House considered is the wrong solution at the wrong time. We
can do better and I think this alternative is a better solution.
The SPEAKER pro tempore. The question is on the amendment in the
nature of a substitute offered by the gentleman from Virginia (Mr.
Forbes).
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.

Recorded Vote

Mr. FORBES. Madam Speaker, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 172,
noes 256, not voting 5, as follows:

[Roll No. 476]

AYES--172

Aderholt
Akin
Alexander
Altmire
Austria
Bachmann
Bachus
Barrett (SC)
Barrow
Bartlett
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boren
Boustany
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp
Campbell
Cantor
Cao
Capito
Carney
Carter
Cassidy
Castle
Chaffetz
Coble
Coffman (CO)
Cole
Conaway
Crenshaw
Culberson
Davis (KY)
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Dreier
Duncan
Ehlers
Emerson
Fallin
Fleming
Forbes
Fortenberry
Franks (AZ)
Frelinghuysen
Gallegly
Gerlach
Gingrey (GA)
Gohmert
Goodlatte
Granger
Graves
Guthrie
Hall (TX)
Harper
Hastings (WA)
Hensarling
Herger
Hoekstra
Holden
Hunter
Inglis
Issa
Jenkins
Johnson (IL)
Johnson, Sam
Jones
King (IA)
King (NY)
Kingston
Kirk
Kline (MN)
Lamborn
Lance
Latham
LaTourette
Latta
Lee (NY)
Lewis (CA)
Linder
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Manzullo
Marchant
Marshall
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McHugh
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Myrick
Neugebauer
Nunes
Olson
Paul
Paulsen
Pence
Petri
Pitts
Platts
Poe (TX)
Posey
Putnam
Radanovich
Rehberg
Reichert
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rooney
Ros-Lehtinen
Roskam
Royce
Scalise
Schmidt
Schock
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (TX)
Souder
Stearns
Terry
Thompson (PA)
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walden
Wamp
Waters
Whitfield
Wilson (SC)
Wittman
Wolf
Young (AK)
Young (FL)

NOES--256

Abercrombie
Ackerman
Adler (NJ)
Andrews
Arcuri
Baca
Baird
Baldwin
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boccieri
Boswell
Boucher
Boyd
Brady (PA)
Braley (IA)
Bright
Broun (GA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carson (IN)
Castor (FL)
Chandler
Childers
Clarke
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Cooper
Costa
Costello
Courtney
Crowley
Cuellar
Cummings
Dahlkemper
Davis (AL)
Davis (CA)
Davis (IL)
Davis (TN)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Donnelly (IN)
Doyle
Driehaus
Edwards (MD)
Edwards (TX)
Ellison
Ellsworth
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Foster
Foxx
Frank (MA)
Fudge
Garrett (NJ)
Giffords
Gonzalez
Gordon (TN)
Grayson
Green, Al
Green, Gene
Griffith
Grijalva
Gutierrez
Hall (NY)
Halvorson
Hare
Harman
Heinrich
Heller
Herseth Sandlin
Higgins
Hill
Himes
Hinchey
Hinojosa
Hirono
Hodes
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Johnson (GA)
Johnson, E. B.
Jordan (OH)
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick (MI)
Kilroy
Kind
Kirkpatrick (AZ)
Kissell
Klein (FL)
Kosmas
Kratovil
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maffei
Maloney
Markey (CO)
Markey (MA)
Massa
Matheson
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McMahon
McNerney
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (NC)
Miller, George
Minnick
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Murphy (CT)
Murphy (NY)
Murphy, Patrick
Murphy, Tim
Murtha
Nadler (NY)
Napolitano
Neal (MA)
Nye
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor (AZ)
Payne
Perlmutter
Perriello
Peters
Peterson
Pingree (ME)
Polis (CO)
Pomeroy
Price (GA)
Price (NC)
Quigley
Rahall
Rangel
Reyes
Richardson
Rodriguez
Ross
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schauer
Schiff
Schrader
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Space
Speier
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Teague
Thompson (CA)
Thompson (MS)
Tierney
Titus
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Visclosky
Walz
Wasserman Schultz
Watson
Watt
Waxman
Weiner
Welch
Westmoreland
Wexler
Wilson (OH)
Woolsey
Yarmuth

NOT VOTING--5

Flake
Hastings (FL)
Moran (VA)
Sullivan
Wu

{time}  1859

Messrs. ADLER of New Jersey, PATRICK J. MURPHY of Pennsylvania,
BERMAN, McMAHON, and Mrs.

[[Page H7686]]

MALONEY changed their vote from ``aye'' to ``no.''
Messrs. McHENRY and HOLDEN changed their vote from ``no'' to ``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore (Mr. Pastor of Arizona). The question is on
the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.

Recorded Vote

Mr. WAXMAN. Madam Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on passage will be followed by a 5-minute vote on approval
of the Journal, if ordered.
The vote was taken by electronic device, and there were--ayes 219,
noes 212, not voting 3, as follows:

[Roll No. 477]

AYES--219

Abercrombie
Ackerman
Adler (NJ)
Andrews
Baca
Baird
Baldwin
Bean
Becerra
Berkley
Berman
Bishop (GA)
Bishop (NY)
Blumenauer
Boccieri
Bono Mack
Boswell
Boucher
Boyd
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carson (IN)
Castle
Castor (FL)
Chandler
Clarke
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Cooper
Courtney
Crowley
Cuellar
Cummings
Davis (CA)
Davis (IL)
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Doyle
Driehaus
Edwards (MD)
Ellison
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Frank (MA)
Fudge
Giffords
Gonzalez
Gordon (TN)
Grayson
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Halvorson
Hare
Harman
Heinrich
Higgins
Hill
Himes
Hinchey
Hinojosa
Hirono
Hodes
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Johnson (GA)
Johnson, E. B.
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick (MI)
Kilroy
Kind
Kirk
Klein (FL)
Kosmas
Kratovil
Lance
Langevin
Larsen (WA)
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maffei
Maloney
Markey (CO)
Markey (MA)
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McHugh
McMahon
McNerney
Meek (FL)
Meeks (NY)
Michaud
Miller (NC)
Miller, George
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy (NY)
Murphy, Patrick
Murtha
Nadler (NY)
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Perriello
Peters
Peterson
Pingree (ME)
Polis (CO)
Price (NC)
Quigley
Rangel
Reichert
Reyes
Richardson
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schauer
Schiff
Schrader
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Space
Speier
Spratt
Stupak
Sutton
Tauscher
Teague
Thompson (CA)
Thompson (MS)
Tierney
Titus
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Walz
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch
Wexler
Woolsey
Wu
Yarmuth

NOES--212

Aderholt
Akin
Alexander
Altmire
Arcuri
Austria
Bachmann
Bachus
Barrett (SC)
Barrow
Bartlett
Barton (TX)
Berry
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Boozman
Boren
Boustany
Brady (TX)
Bright
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp
Campbell
Cantor
Cao
Capito
Carney
Carter
Cassidy
Chaffetz
Childers
Coble
Coffman (CO)
Cole
Conaway
Costa
Costello
Crenshaw
Culberson
Dahlkemper
Davis (AL)
Davis (KY)
Davis (TN)
Deal (GA)
DeFazio
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Donnelly (IN)
Dreier
Duncan
Edwards (TX)
Ehlers
Ellsworth
Emerson
Fallin
Fleming
Forbes
Fortenberry
Foster
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gingrey (GA)
Gohmert
Goodlatte
Granger
Graves
Griffith
Guthrie
Hall (TX)
Harper
Hastings (WA)
Heller
Hensarling
Herger
Herseth Sandlin
Hoekstra
Holden
Hunter
Inglis
Issa
Jenkins
Johnson (IL)
Johnson, Sam
Jones
Jordan (OH)
King (IA)
King (NY)
Kingston
Kirkpatrick (AZ)
Kissell
Kline (MN)
Kucinich
Lamborn
Latham
LaTourette
Latta
Lee (NY)
Lewis (CA)
Linder
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Manzullo
Marchant
Marshall
Massa
Matheson
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McIntyre
McKeon
McMorris Rodgers
Melancon
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Minnick
Mitchell
Mollohan
Moran (KS)
Murphy, Tim
Myrick
Neugebauer
Nunes
Nye
Olson
Ortiz
Paul
Paulsen
Pence
Petri
Pitts
Platts
Poe (TX)
Pomeroy
Posey
Price (GA)
Putnam
Radanovich
Rahall
Rehberg
Rodriguez
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rooney
Ros-Lehtinen
Roskam
Ross
Royce
Ryan (WI)
Salazar
Scalise
Schmidt
Schock
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (TX)
Souder
Stark
Stearns
Tanner
Taylor
Terry
Thompson (PA)
Thornberry
Tiahrt
Tiberi
Turner
Upton
Visclosky
Walden
Wamp
Westmoreland
Whitfield
Wilson (OH)
Wilson (SC)
Wittman
Wolf
Young (AK)
Young (FL)

NOT VOTING--3

Flake
Hastings (FL)
Sullivan

{time}  1917

Mr. GOHMERT changed his vote from ``aye'' to ``no.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.

____________________