Amends the CAA to require the Administrator to promulgate regulations to limit and reduce GHG emissions, annually, so that GHG emissions from capped sources are reduced to 97% of 2005 levels by 2012, 80% by 2020, 58% by 2030, and 17% by 2050.
Requires the Administrator to report to Congress by July 1, 2013, and every four years thereafter, on an analysis of:
(1) key findings based on up-to-date scientific information relevant to global climate change;
(2) capabilities to monitor and verify GHG reductions on a worldwide basis;
(3) the status of worldwide GHG emission reduction efforts; and
(4) the technological feasibility of achieving additional reductions in GHGs. Requires the Administrator to offer to enter into a contract with the National Academy of Sciences (NAS) to report to Congress and the Administrator every four years on:
(1) a review of the most recent report on the latest climate change science and recommendations based on such review; and
(2) an analysis of technologies to achieve reductions in GHG emissions.
Requires the President to direct relevant federal agencies to use existing statutory authority to take appropriate actions and address shortfalls identified in the NAS reports.
Requires the President, if the NAS report finds that emission reduction targets are not on schedule or that global actions will not maintain safe global average surface temperature and atmospheric GHG concentration thresholds, to submit a plan to Congress by July 1, 2015, identifying domestic and international actions that will achieve necessary additional GHG reductions.
Requires the Administrator, in developing and implementing regulations to implement the global warming pollution and reduction investment program, to consult with the states in the Regional Greenhouse Gas Initiative, the Western Climate Initiative, and the Mid-West Governors Accord. Designates as GHGs carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons (HFCs) from a chemical manufacturing process at an industrial stationary source, any perfluorocarbon that is an anthropogenic gas one metric ton of which makes the same or greater contribution to global warming over 100 years as one metric ton of carbon dioxide, and nitrogen trifluoride.
Specifies a carbon dioxide equivalent value for each gas.
Requires the Administrator, by February 1, 2017, and every five years thereafter, to review and, if appropriate, revise such values.
Establishes a process by which EPA can designate other GHGs. Allows any person to petition EPA for other manmade gases to be added as GHGs. Requires the Administrator to issue regulations establishing a federal GHG registry.
Requires reporting entities to submit data on:
(1) GHG emissions in the United States,
(2) the production, manufacture, and importation of fuels and industrial gases the uses of which may result in GHG emissions,
(3) deliveries of natural gas the combustion of which results in GHG emissions; and
(4) the capture and sequestration of GHGs. Requires such regulations to require reporting of electricity delivered to industrial sources in energy-intensive industries.
Requires reporting entities to submit:
(1) 2007-2010 data by March 31, 2011; and
(2) data for 2011 and subsequent years quarterly.
Requires the Administrator to determine whether fluorinated gases that are GHGs emitted during the production of nonhydrofluorocarbon fluorinated substances should be regulated:
(1) through best achievable performance standards; or
(2) under requirements relating to emissions of GHGs during the production of fluorinated substances at covered entities.
Prohibits any person from manufacturing, introducing into interstate commerce, or emitting in a year a significant quantity (as determined by the Administrator but no less than ½ ton) of certain fluorinated gas that is generated as a byproduct during the production or use of another fluorinated gas.
Requires the Administrator to establish a specific quantity of emission allowances starting in 2012.
Prescribes the quantity of emission allowances for:
(1) each of 2012-2049; and
(2) 2050 and thereafter.
Authorizes EPA to revise such quantities if specified assumptions are subsequently found to be inaccurate.
Provides for the establishment and distribution of compensatory allowances for:
(1) the destruction, in 2012 or later, of fluorinated gases that are GHGs if allowances or offset credits were retired for their production or importation and such gases are not required to be destroyed under any other law;
(2) 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 GHGs that would have been emitted from their combustion; and
(3) the conversionary use, in 2012 or later, of fluorinated gases in a manufacturing process if allowances or offset credits were retired for the production or importation of such gas.
Authorizes the Administrator to study:
(1) 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
(2) the GHG emissions resulting from such uses.
Requires the Administrator to conduct an assessment by March 31, 2014, of the regulation of nonhydrofluorocarbon fluorinated gases to determine whether the most appropriate point of regulation is at the gas manufacturer or importer level or at the downstream source of the emissions.
Requires the Administrator, upon a determination that such emissions should be regulated by designating downstream emission sources as covered entities with compliance obligations, to amend CAA by revising the definition of "covered entity" and compliance obligations with respect to nonhydrofluorocarbon fluorinated gases.
Prohibits a covered entity, on or after January 1, 2012, from emitting GHGs and having attributable GHG emissions, in combination, in excess of its allowable emissions level (i.e., the number of emission allowances or offset credits or other allowances a covered entity holds as of 12:01 a.m.
on April 1 or a later date of the following calendar year established by the Administrator). Requires covered entities to demonstrate compliance through:
(1) holding emission allowances (including international emission or compensatory allowances) at least as great as attributable emissions (as specified); or
(2) using offset credits.
Phases in compliance provisions by entity.
Authorizes covered entities collectively to use offset credits to demonstrate compliance for up to a maximum of 2 billion tons of GHGs annually.
Sets forth provisions concerning distribution of offset credits and penalties.
Authorizes holders of emission allowances, compensatory allowances, or offset credits to sell, exchange, transfer, hold, bank, borrow from subsequent years, or retire them.
Provides that the privilege of purchasing, holding, selling, exchanging, transferring, and requesting retirement of such allowances and credits is not restricted to the owners and operators of covered entities.
Provides for the establishment of an allowance tracking system for issuing, recording, holding, and tracking allowances, offset credits, and term offset credits.
Requires the Administrator to:
(1) establish a market stability reserve account; and
(2) auction strategic reserve allowances quarterly.
Limits auctions to covered entities.
Sets forth provisions concerning minimum reserve prices and the use of auction proceeds.
Establishes the Market Stability Reserve Fund in the Treasury. Sets forth the obligations of stationary sources under the CAA's Title V operating permit program under the new global warming and pollution reduction requirements.
Requires stationary sources subject to CAA to have permits that require the covered entity to hold a number of emission allowances or offset credits at least equal to the total annual amount of carbon dioxide equivalents for its combined emissions and attributable GHG emissions.
Sets forth provisions concerning:
(1) designating an international climate change program as a qualifying international program; and
(2) holding and retiring international emission allowances.
Requires the President to establish an Independent Offsets Integrity Advisory Board to make recommendations to the Administrator for use in promulgating and revising regulations on the types of offset that should be eligible for compliance purposes and on methodologies for evaluating offset projects.
Requires the Board to report to the Administrator on the offset program and make recommendations on such program by January 1, 2017, and every five years thereafter.
Requires the President to promulgate regulations establishing a program for the issuance of offset credits to:
(1) ensure that such offset credits represent verifiable and additional GHG emission reductions or avoidance, or increases in sequestration;
(2) ensure that offset credits issued for sequestration offset projects are only issued for GHG reductions that are permanent; and
(3) include as reductions in GHGs reductions achieved through the destruction of methane and chlorofluorocarbons (CFCs) or other ozone depleting substances.
Requires the President to:
(1) establish within the allowance tracking system an Offset Registry for qualifying offset projects and credits;
(2) establish a list of types of projects eligible to generate offset credits, including international offset credits;
(3) designate the Secretary of Agriculture as the lead agency in implementing the offset program;
(4) conduct audits of offset projects, offset credits, and practices of third-party verifiers; and
(5) review, at least once every five years, the list of eligible project types and requirements to ensure the environmental integrity and effective operation of the offset program.
Authorizes any person to petition the President to modify such list.
Establishes within the Office of the Assistant Attorney General of the Environment and Natural Resources Division in the Department of Justice (DOJ) a Carbon Offsets Integrity Unit, to be headed by a Special Counsel, who shall:
(1) supervise and coordinate investigations and civil enforcement within DOJ of the carbon offsets program;
(2) ensure that federal law relating to civil enforcement of the carbon offsets program is used to the fullest extent authorized; and
(3) ensure that adequate resources are made available for the investigation and enforcement of civil violations of the carbon offsets program.
Provides for the issuance and retirement of international offset credits (including credits that reduce deforestation) based on activities that reduce or avoid GHG emissions, or that increase sequestration of GHGs, in developing countries.
Prohibits the Administrator from issuing international offset credits generated by projects based on the destruction of hydrofluorocarbons.