S. 3698 (109th): Global Warming Pollution Reduction Act

109th Congress, 2005–2006. Text as of Jul 20, 2006 (Introduced).

Status & Summary | PDF | Source: GPO

II

109th CONGRESS

2d Session

S. 3698

IN THE SENATE OF THE UNITED STATES

July 20, 2006

(for himself, Mrs. Boxer, Mr. Lautenberg, Mr. Kennedy, Mr. Leahy, Mr. Reed, Mr. Akaka, Mr. Dodd, Mr. Sarbanes, and Mr. Menendez) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works

A BILL

To amend the Clean Air Act to reduce emissions of carbon dioxide, and for other purposes.

1.

Short title

This Act may be cited as the Global Warming Pollution Reduction Act.

2.

Global warming pollution emission reductions

The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at the end the following:

VII

Comprehensive Global Warming Pollution Reductions

Sec. 701. Findings.

Sec. 702. Purposes.

Sec. 703. Definitions.

Sec. 704. Global warming pollution emission reductions.

Sec. 705. Conditions for accelerated global warming pollution emission reduction.

Sec. 706. Use of allowances for transition assistance and other purposes.

Sec. 707. Vehicle emission standards.

Sec. 708. Emission standards for electric generation units.

Sec. 709. Low-carbon generation requirement.

Sec. 710. Geological disposal of global warming pollutants.

Sec. 711. Research and development.

Sec. 712. Energy efficiency performance standard.

Sec. 713. Renewable portfolio standard.

Sec. 714. Standards to account for biological sequestration of carbon.

Sec. 715. Global warming pollution reporting.

Sec. 716. Clean energy technology deployment in developing countries.

Sec. 717. Paramount interest waiver.

Sec. 718. Effect on other law.

701.

Findings

Congress finds that—

(1)

global warming poses a significant threat to the national security and economy of the United States, public health and welfare, and the global environment;

(2)

due largely to an increased use of energy from fossil fuels, human activities are primarily responsible for the release of carbon dioxide and other heat-trapping global warming pollutants that are accumulating in the atmosphere and causing surface air and subsurface ocean temperatures to rise;

(3)

as of the date of enactment of this title, atmospheric concentrations of carbon dioxide are 35 percent higher than those concentrations were 150 years ago, at 378 parts per million compared to 280 parts per million;

(4)

the United States emits more global warming pollutants than any other country, and United States carbon dioxide emissions have increased by an average of 1.3 percent annually since 1990;

(5)
(A)

during the past 100 years, global temperatures have risen by 1.44 degrees Fahrenheit; and

(B)

from 1970 to the present, those temperatures have risen by almost 1 degree Fahrenheit;

(6)

8 of the past 10 years (1996 to 2005) are among the 10 warmest years on record;

(7)

average temperatures in the Arctic have increased by 4 to 7 degrees Fahrenheit during the past 50 years;

(8)

global warming has caused—

(A)

ocean temperatures to increase, resulting in rising sea levels, extensive bleaching of coral reefs worldwide, and an increase in the intensity of tropical storms;

(B)

the retreat of Arctic sea ice by an average of 9 percent per decade since 1978;

(C)

the widespread thawing of permafrost in polar, subpolar, and mountainous regions;

(D)

the redistribution and loss of species; and

(E)

the rapid shrinking of glaciers;

(9)

the United States must adopt a comprehensive and effective national program of mandatory limits and incentives to reduce global warming pollution emissions into the atmosphere;

(10)

at the current rate of emission, global warming pollution concentrations in the atmosphere could reach more than 600 parts per million in carbon dioxide equivalent, and global average mean temperature could rise an additional 2.7 to 11 degrees Fahrenheit, by the end of the century;

(11)

although an understanding of all details of the Earth system is not yet complete, present knowledge indicates that potential future temperature increases could result in—

(A)

the further or complete melting of the Antarctic and Greenland ice sheets;

(B)

the disruption of the North-Atlantic Thermohaline Circulation (commonly known as the Gulf Stream);

(C)

the extinction of species; and

(D)

large-scale disruptions of the natural systems that support life;

(12)

there exists an array of technological options for use in reducing global warming pollution emissions, and significant reductions can be attained using a portfolio of options that will not adversely impact the economy;

(13)

the ingenuity of the people of the United States will allow the Nation to become a leader in solving global warming; and

(14)

it should be a goal of the United States to achieve a reduction in global warming pollution emissions in the United States—

(A)

to ensure that the average global temperature does not increase by more than 3.6 degrees Fahrenheit (2 degrees Celsius); and

(B)

to facilitate the achievement of an average global atmospheric concentration of global warming pollutants that does not exceed 450 parts per million in carbon dioxide equivalent.

702.

Purposes

The purposes of this title are—

(1)

to achieve a reduction in global warming pollution emissions compatible with ensuring that—

(A)

the average global temperature does not increase by more than 3.6 degrees Fahrenheit (2 degrees Celsius) above the preindustrial average; and

(B)

total average global atmospheric concentrations of global warming pollutants do not exceed 450 parts per million in carbon dioxide equivalent;

(2)

to reduce by calendar year 2050 the aggregate net level of global warming pollution emissions of the United States to a level that is 80 percent below the aggregate net level of global warming pollution emissions for calendar year 1990;

(3)

to allow for an acceleration of reductions in global warming pollution emissions to prevent—

(A)

average global temperature from increasing by more than 3.6 degrees Fahrenheit (2 degrees Celsius) above the preindustrial average; or

(B)

global atmospheric concentrations of global warming pollutants from exceeding 450 parts per million;

(4)

to establish a motor vehicle global warming pollution emission requirement;

(5)

to require electric generation units to meet a global warming pollution emission standard;

(6)

to establish rules for the safe geological sequestration of carbon dioxide;

(7)

to encourage energy efficiency and the use of renewable energy by establishing a renewable portfolio standard and an energy efficiency portfolio standard;

(8)

to provide for research relating to, and development of, the technologies to control global warming pollution emissions;

(9)

to position the United States as the world leader in reducing the risk of the potentially devastating, wide-ranging impacts associated with global warming; and

(10)

to promote, through leadership by the United States, accelerated reductions in global warming pollution from other countries with significant global warming pollution emissions.

703.

Definitions

In this title:

(1)

Academy

The term Academy means the National Academy of Sciences.

(2)

Carbon dioxide equivalent

The term carbon dioxide equivalent means, for each global warming pollutant, the quantity of the global warming pollutant that makes the same contribution to global warming as 1 metric ton of carbon dioxide, as determined by the Administrator, taking into account the study and report described in section 705(a).

(3)

Facility

The term facility means all buildings, structures, or installations that are—

(A)

located on 1 or more contiguous or adjacent properties under common control of the same persons; and

(B)

located in the United States.

(4)

Global warming pollutant

The term global warming pollutant means—

(A)

carbon dioxide;

(B)

methane;

(C)

nitrous oxide;

(D)

hydrofluorocarbons;

(E)

perfluorocarbons;

(F)

sulfur hexafluoride; and

(G)

any other anthropogenically-emitted gas that the Administrator, after notice and comment, determines to contribute to global warming.

(5)

Global warming pollution

The term global warming pollution means any combination of 1 or more global warming pollutants emitted into the ambient air or atmosphere.

(6)

Market-based program

The term market-based program means a program that places an absolute limit on the aggregate net global warming pollution emissions of 1 or more sectors of the economy of the United States, while allowing the transfer or sale of global warming pollution emission allowances.

(7)

NAS report

The term NAS report means a report completed by the Academy under subsection (a) or (b) of section 705.

704.

Global warming pollution emission reductions

(a)

Emission reduction goal

Congress declares that—

(1)

it shall be the goal of the United States, acting in concert with other countries that emit global warming pollutants, to achieve a reduction in global warming pollution emissions—

(A)

to ensure that the average global temperature does not increase by more than 3.6 degrees Fahrenheit (2 degrees Celsius); and

(B)

to facilitate the achievement of an average global atmospheric concentration of global warming pollutants that does not exceed 450 parts per million in carbon dioxide equivalent; and

(2)

in order to achieve the goal described in paragraph (1), the United States shall reduce the global warming pollution emissions of the United States by a quantity that is proportional to the share of the United States of the reductions that are necessary—

(A)

to ensure that the average global temperature does not increase more than 3.6 degrees Fahrenheit (2 degrees Celsius); and

(B)

to stabilize average global warming pollution concentrations globally at or below 450 parts per million in carbon dioxide equivalent.

(b)

Emission reduction milestones for 2020

(1)

In general

To achieve the goal described in subsection (a)(1), not later than 2 years after the date of enactment of this title, after an opportunity for public notice and comment, the Administrator shall promulgate any rules that are necessary to reduce, by not later than January 1, 2020, the aggregate net levels of global warming pollution emissions of the United States to the aggregate net level of those global warming pollution emissions during calendar year 1990.

(2)

Achievement of milestones

To the maximum extent practicable, the reductions described in paragraph (1) shall be achieved through an annual reduction in the aggregate net level of global warming pollution emissions of the United States of approximately 2 percent for each of calendar years 2010 through 2020.

(c)

Emission reduction milestones for 2030, 2040, and 2050

Except as described in subsection (d), not later than January 1, 2018, after an opportunity for public notice and comment, the Administrator shall promulgate any rules that are necessary to reduce the aggregate net levels of global warming pollution emissions of the United States—

(1)

by calendar year 2030, by 1/3 of 80 percent of the aggregate net level of global warming pollution emissions of the United States during calendar year 1990;

(2)

by calendar year 2040, by 2/3 of 80 percent of the aggregate net level of the global warming pollution emissions of the United States during calendar year 1990; and

(3)

by calendar year 2050, by 80 percent of the aggregate net level of global warming pollution emissions of the United States during calendar year 1990.

(d)

Accelerated emission reduction milestones

If an NAS report determines that any of the events described in section 705(a)(2) have occurred, or are more likely than not to occur in the foreseeable future, not later than 2 years after the date of completion of the NAS report, the Administrator, after an opportunity for public notice and comment and taking into account the new information reported in the NAS report, may adjust the milestones under this section and promulgate any rules that are necessary—

(1)

to reduce the aggregate net levels of global warming pollution emissions from the United States on an accelerated schedule; and

(2)

to minimize the effects of rapid climate change and achieve the goals of this title.

(e)

Report on achievement of milestones

If an NAS report determines that a milestone under paragraph (1) or (2) of subsection (c) cannot be achieved because of technological infeasibility, the Administrator shall submit to Congress a notification of that determination.

(f)

Emission reduction policies

(1)

In general

In implementing subsections (a) through (e), the Administrator may establish 1 or more market-based programs.

(2)

Market-based program policies

(A)

In general

In implementing any market-based program, the Administrator shall allocate to households, communities, and other entities described in section 706(a) any global warming pollution emission allowances that are not allocated to entities covered under the emission limitation.

(B)

Recognition of emission reductions made in compliance with State and local laws

A market-based program may recognize reductions of global warming pollution emissions made before the effective date of the market-based program if the Administrator determines that—

(i)
(I)

the reductions were made in accordance with a State or local law;

(II)

the State or local law is at least as stringent as the rules established for the market-based program under paragraph (1); and

(III)

the reductions are at least as verifiable as reductions made in accordance with those rules; or

(ii)

for any given entity subject to the market-based program, the entity demonstrates that the entity has made entity-wide reductions of global warming pollution emissions before the effective date of the market-based program, but not earlier than calendar year 1992, that are at least as verifiable as reductions made in accordance with the rules established for the market-based program under paragraph (1).

(C)

Publication

If the Administrator determines that it is necessary to establish a market-based program, the Administrator shall publish notice of the determination in the Federal Register.

(D)

Limitations on market-based programs

(i)

Definitions

In this subparagraph:

(I)

Annual allowance price

The term annual allowance price means the average market price of global warming pollution emission allowances for a calendar year.

(II)

Declining emissions cap with a technology-indexed stop price

The term declining emissions cap with a technology-indexed stop price means a feature of a market-based program for an industrial sector, or on an economy-wide basis, under which the emissions cap declines by a fixed percentage each calendar year or, during any year in which the annual allowance price exceeds the technology-indexed stop price, the emissions cap remains the same until the occurrence of the earlier of—

(aa)

the date on which the annual allowance price no longer exceeds the technology-indexed stop price; or

(bb)

the date on which a period of 3 years has elapsed during which the emissions cap has remained unchanged.

(III)

Emissions cap

The term emissions cap means the total number of global warming pollution emission allowances issued for a calendar year.

(IV)

Technology-indexed stop price

The term technology-indexed stop price means a price per ton of global warming pollution emissions determined annually by the Administrator that is not less than the technology-specific average cost of preventing the emission of 1 ton of global warming pollutants through commercial deployment of any available zero-carbon or low-carbon technologies. With respect to the electricity sector, those technologies shall consist of—

(aa)

wind-generated electricity;

(bb)

photovoltaic-generated electricity;

(cc)

geothermal energy;

(dd)

solar thermally-generated energy;

(ee)

wave-based forms of energy;

(ff)

any fossil fuel-based electric generating technology emitting less than 250 pounds per megawatt hour; and

(gg)

any zero-carbon-emitting electric generating technology that does not generate radioactive waste.

(ii)

Implementation

In implementing any market-based program under this Act, for the period prior to January 1, 2020, the Administrator shall consider the impact on the economy of the United States of implementing the program with a declining emissions cap through the use of a technology-indexed stop price.

(iii)

Other emitting sectors

The Administrator may consider the use of a declining emissions cap with a technology-indexed stop price, or similar approaches, for other emitting sectors based on low-carbon or zero-carbon technologies, including—

(I)

biofuels;

(II)

hydrogen power; and

(III)

other sources of energy and transportation fuel.

(g)

Cost-effectiveness

In promulgating regulations under this section, the Administrator shall select the most cost-effective options for global warming pollution control and emission reduction strategies.

705.

Conditions for accelerated global warming pollution emission reduction

(a)

Report on global change events by the Academy

(1)

In general

The Administrator shall offer to enter into a contract with the Academy under which the Academy, not later than 2 years after the date of enactment of this title, and every 3 years thereafter, shall submit to Congress and the Administrator a report that describes whether any of the events described in paragraph (2)—

(A)

have occurred or are more likely than not to occur in the foreseeable future; and

(B)

in the judgment of the Academy, are the result of anthropogenic climate change.

(2)

Events

The events referred to in paragraph (1) are—

(A)

the exceedance of an atmospheric concentration of global warming pollutants of 450 parts per million in carbon dioxide equivalent; and

(B)

an increase of global average temperatures in excess of 3.6 degrees Fahrenheit (2 degrees Celsius) above the preindustrial average.

(b)

Technology reports

(1)

Definition of technologically infeasible

In this subsection, the term technologically infeasible, with respect to a technology, means that the technology—

(A)

will not be demonstrated beyond laboratory-scale conditions;

(B)

would be unsafe;

(C)

would not reliably reduce global warming pollution emissions; or

(D)

would prevent the activity to which the technology applies from meeting or performing its primary purpose (such as generating electricity or transporting goods or individuals).

(2)

Reports

The Administrator shall offer to enter into a contract with the Academy under which the Academy, not later than 2 years after the date of enactment of this title and every 3 years thereafter, shall submit to Congress and the Administrator a report that describes or analyzes—

(A)

the status of current global warming pollution emission reduction technologies, including—

(i)

technologies for capture and disposal of global warming pollutants;

(ii)

efficiency improvement technologies;

(iii)

zero-global-warming-pollution-emitting energy technologies; and

(iv)

above- and below-ground biological sequestration technologies;

(B)

whether any of the requirements under this title (including regulations promulgated under this title) mandate a level of emission control or reduction that, based on available or expected technology, will be technologically infeasible at the time at which the requirements become effective;

(C)

the projected date on which any technology determined to be technologically infeasible will become technologically feasible;

(D)

whether any technology determined to be technologically infeasible cannot reasonably be expected to become technologically feasible prior to calendar year 2050; and

(E)

the costs of available alternative global warming pollution emission reduction strategies that could be used or pursued in lieu of any technologies that are determined to be technologically infeasible.

(3)

Report evaluating 2050 milestone

Not later than December 31, 2037, the Administrator shall offer to enter into a contract with the Academy under which, not later than December 31, 2039, the Academy shall prepare and submit to Congress and the Administrator a report on the appropriateness of the milestone described in section 704(c)(3), taking into consideration—

(A)

information that was not available as of the date of enactment of this title; and

(B)

events that have occurred since that date relating to—

(i)

climate change;

(ii)

climate change technologies; and

(iii)

national and international climate change commitments.

(c)

Additional items in NAS report

In addition to the information described in subsection (a)(1) that is required to be included in the NAS report, the Academy shall include in the NAS report—

(1)

an analysis of the trends in annual global warming pollution emissions by the United States and the other countries that collectively account for more than 90 percent of global warming pollution emissions (including country-specific inventories of global warming pollution emissions and facility-specific inventories of global warming pollution emissions in the United States);

(2)

an analysis of the trends in global warming pollution concentrations (including observed atmospheric concentrations of global warming pollutants);

(3)

a description of actual and projected global change impacts that may be caused by anthropogenic global warming pollution emissions, in addition to the events described in subsection (a)(2); and

(4)

such other information as the Academy determines to be appropriate.

706.

Use of allowances for transition assistance and other purposes

(a)

Regulations governing allocation of allowances for transition assistance to individuals and entities

(1)

In general

In implementing any market-based program, the Administrator may promulgate regulations providing for the allocation of global warming pollution emission allowances to the individuals and entities, or for the purposes, specified in subsection (b).

(2)

Requirements

Regulations promulgated under paragraph (1) may, as the Administrator determines to be necessary, provide for the appointment of 1 or more trustees—

(A)

to receive emission allowances for the benefit of households, communities, and other entities described in paragraph (1);

(B)

to sell the emission allowances at fair market value; and

(C)

to distribute the proceeds of any sale of emission allowances to the appropriate beneficiaries.

(b)

Allocation for Transition Assistance

The Administrator may allocate emission allowances, in accordance with regulations promulgated under subsection (a), to—

(1)

communities, individuals, and companies that have experienced disproportionate adverse impacts as a result of—

(A)

the transition to a lower carbon-emitting economy; or

(B)

global warming;

(2)

owners and operators of highly energy-efficient buildings, including—

(A)

residential users;

(B)

producers of highly energy-efficient products; and

(C)

entities that carry out energy-efficiency improvement projects pursuant to section 712 that result in consumer-side reductions in electricity use;

(3)

entities that will use the allowances for the purpose of carrying out geological sequestration of carbon dioxide produced by an anthropogenic global warming pollution emission source in accordance with requirements established by the Administrator;

(4)

such individuals and entities as the Administrator determines to be appropriate, for use in carrying out projects to reduce net carbon dioxide emissions through above-ground and below-ground biological carbon dioxide sequestration (including sequestration in forests, forest soils, agricultural soils, rangeland, or grassland in the United States);

(5)

such individuals and entities (including fish and wildlife agencies) as the Administrator determines to be appropriate, for use in carrying out projects to protect and restore ecosystems (including fish and wildlife) affected by climate change; and

(6)

manufacturers producing consumer products that result in substantially reduced global warming pollution emissions, for use in funding rebates for purchasers of those products.

707.

Vehicle emission standards

(a)

Vehicles under 10,000 pounds

(1)

In general

Not later than January 1, 2010, the Administrator shall promulgate regulations requiring each fleet of automobiles sold by a manufacturer in the United States beginning in model year 2016 to meet the standards for global warming pollution emissions described in paragraph (2).

(2)

Emission standards

The average global warming pollution emissions of a vehicle fleet described in paragraph (1) shall not exceed—

(A)

205 carbon dioxide equivalent grams per mile for automobiles with—

(i)

a gross vehicle weight of not more than 8,500 pounds; and

(ii)

a loaded vehicle weight of not more than 3,750 pounds;

(B)

332 carbon dioxide equivalent grams per mile for—

(i)

automobiles with—

(I)

a gross vehicle weight of not more than 8,500 pounds; and

(II)

a loaded vehicle weight of more than 3,750 pounds; and

(ii)

medium-duty passenger vehicles; and

(C)

405 carbon dioxide equivalent grams per mile for vehicles—

(i)

with a gross vehicle weight of between 8,501 pounds and 10,000 pounds; and

(ii)

that are not medium-duty passenger vehicles.

(3)

Heightened standards

After model year 2016, the Administrator may promulgate regulations that increase the stringency of emission standards described in paragraph (2) as necessary to meet the emission reduction goal described in section 704(e)(3).

(b)

Highway vehicles over 10,000 pounds

(1)

In general

Not later than January 1, 2010, the Administrator shall promulgate regulations requiring each fleet of highway vehicles over 10,000 pounds sold by a manufacturer in the United States beginning in model year 2020 to meet the standards for global warming pollution emissions described in paragraph (2).

(2)

Emission standards

The average global warming pollution emissions of a vehicle fleet described in paragraph (1) shall not exceed—

(A)

850 carbon dioxide equivalent grams per mile for highway vehicles with a gross vehicle weight rating between 10,001 pounds and 26,000 pounds; and

(B)

1,050 carbon dioxide equivalent grams per mile for highway vehicles with a gross vehicle weight rating of more than 26,000 pounds.

(3)

Heightened standards

After model year 2020, the Administrator may promulgate regulations that increase the stringency of emission standards described in paragraph (2) as necessary to meet the emission reduction goal described in section 704(a)(1).

(c)

Adjustment of requirements

Taking into account appropriate lead times for vehicle manufacturers, if the Academy determines, pursuant to an NAS report, that a vehicle emission standard under this section is or will be technologically infeasible as of the effective date of the standard, the Administrator may, by regulation, modify the requirement to take into account the determination of the Academy.

(d)

Study

(1)

In general

Not later than January 1, 2008, the Administrator shall enter into a contract with the Academy under which the Academy shall conduct a study of, and submit to the Administrator a report on, the potential contribution of the non-highway portion of the transportation sector toward meeting the emission reduction goal described in section 704(a)(1).

(2)

Requirements

The study shall analyze—

(A)

the technological feasibility and cost-effectiveness of global warming pollution reductions from the non-highway sector; and

(B)

the overall potential contribution of that sector in terms of emissions, in meeting the emission reduction goal described in section 704(a)(1).

708.

Emission standards for electric generation units

(a)

Initial standard

(1)

In general

Not later than 2 years after the date of enactment of this title, the Administrator shall, by regulation, require each unit that is designed and intended to provide electricity at a unit capacity factor of at least 60 percent and that begins operation after December 31, 2011, to meet the standard described in paragraph (2).

(2)

Standard

Beginning on December 31, 2015, a unit described in paragraph (1) shall meet a global warming pollution emission standard that is not higher than the emission rate of a new combined cycle natural gas generating unit.

(3)

More stringent requirements

For the period beginning on January 1 of the calendar year following the effective date of the regulation described in paragraph (1) and ending on December 31, 2029, the Administrator may increase the stringency of the global warming pollution emission standard described in paragraph (1) with respect to electric generation units described in that paragraph.

(b)

Final standard

Not later than December 31, 2030, the Administrator shall require each electric generation unit, regardless of when the unit began to operate, to meet the applicable emission standard under subsection (a).

(c)

Adjustment of requirements

If the Academy determines, pursuant to section 705, that a requirement of this section is or will be technologically infeasible at the time at which the requirement becomes effective, the Administrator, may, by regulation, adjust or delay the effective date of the requirement as is necessary to take into consideration the determination of the Academy.

709.

Low-carbon generation requirement

(a)

Definitions

In this section:

(1)

Base quantity of electricity

The term base quantity of electricity means the total quantity of electricity produced for sale by a covered generator during the calendar year immediately preceding a compliance year from coal, petroleum coke, lignite, or any combination of those fuels.

(2)

Covered generator

The term covered generator means an electric generating unit that—

(A)

has a rated capacity of 25 megawatts or more; and

(B)

has an annual fuel input at least 50 percent of which is provided by coal, petroleum coke, lignite, or any combination of those fuels.

(3)

Low-carbon generation

The term low-carbon generation means electric energy generated from an electric generating unit at least 50 percent of the annual fuel input of which, in any year—

(A)

is provided by coal, petroleum coke, lignite, biomass, or any combination of those fuels; and

(B)

results in an emission rate into the atmosphere of not more than 250 pounds of carbon dioxide per megawatt-hour (after adjustment for carbon dioxide from the electric generating unit that is geologically sequestered in a geological repository approved by the Administrator pursuant to subsection (e)).

(4)

Program

The term program means the low-carbon generation credit trading program established under subsection (d)(1).

(b)

Requirement

(1)

Calendar years 2015 through 2020

Of the base quantity of electricity produced for sale by a covered generator for a calendar year, the covered generator shall provide a minimum percentage of that base quantity of electricity for the calendar year from low-carbon generation, as specified in the following table:

Calendar year:Minimum annual percentage:
20150.5
20161.0
20172.0
20183.0
20194.0
20205.0
(2)

Calendar years 2021 through 2025

For each of calendar years 2021 through 2025, the Administrator may increase the minimum percentage of the base quantity of electricity from low-carbon generation described in paragraph (1) by up to 2 percentage points from the previous year, as the Administrator determines to be necessary to achieve the emission reduction goal described in section 704(a)(1).

(3)

Calendar years 2026 through 2030

For each of calendar years 2026 through 2030, the Administrator may increase the minimum percentage of the base quantity of electricity from low-carbon generation described in paragraph (1) by up to 3 percentage points from the previous year, as the Administrator determines to be necessary to achieve the emission reduction goal described in section 704(a)(1).

(c)

Means of compliance

An owner or operator of a covered generator shall comply with subsection (b) by—

(1)

generating electric energy using low-carbon generation;

(2)

purchasing electric energy generated by low-carbon generation;

(3)

purchasing low-carbon generation credits issued under the program; or

(4)

undertaking a combination of the actions described in paragraphs (1) through (3).

(d)

Low-carbon generation credit trading program

(1)

In general

Not later than January 1, 2008, the Administrator shall establish, by regulation after notice and opportunity for comment, a low-carbon generation trading program to permit an owner or operator of a covered generator that does not generate or purchase enough electric energy from low-carbon generation to comply with subsection (b) to achieve that compliance by purchasing sufficient low-carbon generation credits.

(2)

Requirements

As part of the program, the Administrator shall—

(A)

issue to producers of low-carbon generation, on a quarterly basis, a single low-carbon generation credit for each kilowatt hour of low-carbon generation sold during the preceding quarter; and

(B)

ensure that a kilowatt hour, including the associated low-carbon generation credit, shall be used only once for purposes of compliance with subsection (b).

(e)

Enforcement

An owner or operator of a covered generator that fails to comply with subsection (b) shall be subject to a civil penalty in an amount equal to the product obtained by multiplying—

(1)

the number of kilowatt-hours of electric energy sold to electric consumers in violation of subsection (b); and

(2)

the greater of—

(A)

2.5 cents (as adjusted under subsection (g)); or

(B)

200 percent of the average market value of those low-carbon generation credits during the year in which the violation occurred.

(f)

Exemption

This section shall not apply for any calendar year to an owner or operator of a covered generator that sold less than 40,000 megawatt-hours of electric energy produced from covered generators during the preceding calendar year.

(g)

Inflation adjustment

Not later than December 31, 2008, and annually thereafter, the Administrator shall adjust the amount of the civil penalty for each kilowatt-hour calculated under subsection (e)(2) to reflect changes for the 12-month period ending on the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(h)

Technological infeasibility

If the Academy determines, pursuant to section 705, that the schedule for compliance described in subsection (b) is or will be technologically infeasible for covered generators to meet, the Administrator may, by regulation, adjust the schedule as the Administrator determines to be necessary to take into account the consideration of the determination of the Academy.

(i)

Termination of authority

This section and the authority provided by this section terminate on December 31, 2030.

710.

Geological disposal of global warming pollutants

(a)

Geological carbon dioxide disposal deployment projects

(1)

In general

The Administrator shall establish a competitive grant program to provide grants to 5 entities for the deployment of projects to geologically dispose of carbon dioxide (referred to in this subsection as geological disposal deployment projects).

(2)

Location

Each geological disposal deployment project shall be conducted in a geologically distinct location in order to demonstrate the suitability of a variety of geological structures for carbon dioxide disposal.

(3)

Components

Each geological disposal deployment project shall include an analysis of—

(A)

mechanisms for trapping the carbon dioxide to be geologically disposed;

(B)

techniques for monitoring the geologically disposed carbon dioxide;

(C)

public response to the geological disposal deployment project; and

(D)

the permanency of carbon dioxide storage in geological reservoirs.

(4)

Requirements

(A)

In general

The Administrator shall establish—

(i)

appropriate conditions for environmental protection with respect to geological disposal deployment projects to protect public health and the environment; and

(ii)

requirements relating to applications for grants under this subsection.

(B)

Rulemaking

The establishment of requirements under subparagraph (A) shall not require a rulemaking.

(C)

Minimum requirements

At a minimum, each application for a grant under this subsection shall include—

(i)

a description of the geological disposal deployment project proposed in the application;

(ii)

an estimate of the quantity of carbon dioxide to be geologically disposed over the life of the geological disposal deployment project; and

(iii)

a plan to collect and disseminate data relating to each geological disposal deployment project to be funded by the grant.

(5)

Partners

An applicant for a grant under this subsection may carry out a geological disposal deployment project under a pilot program in partnership with 1 or more public or private entities.

(6)

Selection criteria

In evaluating applications under this subsection, the Administrator shall—

(A)

consider the previous experience of each applicant with similar projects; and

(B)

give priority consideration to applications for geological disposal deployment projects that—

(i)

offer the greatest geological diversity from other projects that have previously been approved;

(ii)

are located in closest proximity to a source of carbon dioxide;

(iii)

make use of the most affordable source of carbon dioxide;

(iv)

are expected to geologically dispose of the largest quantity of carbon dioxide;

(v)

are combined with demonstrations of advanced coal electricity generation technologies;

(vi)

demonstrate the greatest commitment on the part of the applicant to ensure funding for the proposed demonstration project and the greatest likelihood that the demonstration project will be maintained or expanded after Federal assistance under this subsection is completed; and

(vii)

minimize any adverse environmental effects from the project.

(7)

Period of grants

(A)

In general

A geological disposal deployment project funded by a grant under this subsection shall begin construction not later than 3 years after the date on which the grant is provided.

(B)

Term

The Administrator shall not provide grant funds to any applicant under this subsection for a period of more than 5 years.

(8)

Transfer of information and knowledge

The Administrator shall establish mechanisms to ensure that the information and knowledge gained by participants in the program under this subsection are published and disseminated, including to other applicants that submitted applications for a grant under this subsection.

(9)

Schedule

(A)

Publication

Not later than 180 days after the date of enactment of this title, the Administrator shall publish in the Federal Register, and elsewhere as appropriate, a request for applications to carry out geological disposal deployment projects.

(B)

Date for applications

An application for a grant under this subsection shall be submitted not later than 180 days after the date of publication of the request under subparagraph (A).

(C)

Selection

After the date by which applications for grants are required to be submitted under subparagraph (B), the Administrator, in a timely manner, shall select, after peer review and based on the criteria under paragraph (6), those geological disposal deployment projects to be provided a grant under this subsection.

(b)

Interim standards

Not later than 3 years after the date of enactment of this title, the Administrator, in consultation with the Secretary of Energy, shall, by regulation, establish interim geological carbon dioxide disposal standards that address—

(1)

site selection;

(2)

permitting processes;

(3)

monitoring requirements;

(4)

public participation; and

(5)

such other issues as the Administrator and the Secretary of Energy determine to be appropriate.

(c)

Final standards

Not later than 6 years after the date of enactment of this title, taking into account the results of geological disposal deployment projects carried out under subsection (a), the Administrator shall, by regulation, establish final geological carbon dioxide disposal standards.

(d)

Considerations

In developing standards under subsections (b) and (c), the Administrator shall consider the experience in the United States in regulating—

(1)

underground injection of waste;

(2)

enhanced oil recovery;

(3)

short-term storage of natural gas; and

(4)

long-term waste storage.

(e)

Termination of authority

This section and the authority provided by this section terminate on December 31, 2030.

711.

Research and development

(a)

In general

The Administrator shall carry out a program to perform and support research on global climate change standards and processes, with the goals of—

(1)

providing scientific and technical knowledge applicable to the reduction of global warming pollutants; and

(2)

facilitating implementation of section 704.

(b)

Research program

(1)

In general

The Administrator shall carry out, directly or through the use of contracts or grants, a global climate change standards and processes research program.

(2)

Research

(A)

Contents and priorities

The specific contents and priorities of the research program shall be determined in consultation with appropriate Federal agencies, including—

(i)

the National Oceanic and Atmospheric Administration;

(ii)

the National Aeronautics and Space Administration; and

(iii)

the Department of Energy.

(B)

Types of research

The research program shall include the conduct of basic and applied research—

(i)

to develop and provide the enhanced measurements, calibrations, data, models, and reference material standards necessary to enable the monitoring of global warming pollution;

(ii)

to assist in establishing a baseline reference point for future trading in global warming pollutants (including the measurement of progress in emission reductions);

(iii)

for international exchange as scientific or technical information for the stated purpose of developing mutually-recognized measurements, standards, and procedures for reducing global warming pollution; and

(iv)

to assist in developing improved industrial processes designed to reduce or eliminate global warming pollution.

(3)

Abrupt climate change research

(A)

Definition of abrupt climate change

In this paragraph, the term abrupt climate change means a change in climate that occurs so rapidly or unexpectedly that humans or natural systems may have difficulty adapting to the change.

(B)

Research

The Administrator shall carry out a program of scientific research on potential abrupt climate change that is designed—

(i)

to develop a global array of terrestrial and oceanographic indicators of paleoclimate in order to identify and describe past instances of abrupt climate change;

(ii)

to improve understanding of thresholds and nonlinearities in geophysical systems relating to the mechanisms of abrupt climate change;

(iii)

to incorporate those mechanisms into advanced geophysical models of climate change; and

(iv)

to test the output of those models against an improved global array of records of past abrupt climate changes.

(c)

Sense of the Senate

It is the sense of the Senate that Federal funds for clean, low-carbon energy research, development, and deployment should be increased by at least 100 percent for each year during the 10-year period beginning on the date of enactment of this title.

712.

Energy efficiency performance standard

(a)

Definitions

In this section:

(1)

Electricity savings

(A)

In general

The term electricity savings means reductions in end-use electricity consumption relative to consumption by the same customer or at the same new or existing facility in a given year, as defined in regulations promulgated by the Administrator under subsection (e).

(B)

Inclusions

The term savings includes savings achieved as a result of—

(i)

installation of energy-saving technologies and devices; and

(ii)

the use of combined heat and power systems, fuel cells, or any other technology identified by the Administrator that recaptures or generates energy solely for onsite customer use.

(C)

Exclusion

The term savings does not include savings from measures that would likely be adopted in the absence of energy-efficiency programs, as determined by the Administrator.

(2)

Retail electricity sales

The term retail electricity sales means the total quantity of electric energy sold by a retail electricity supplier to retail customers during the most recent calendar year for which that information is available.

(3)

Retail electricity supplier

The term retail electricity supplier means a distribution or integrated utility, or an independent company or entity, that sells electric energy to consumers.

(b)

Energy efficiency performance standard

Each retail electricity supplier shall implement programs and measures to achieve improvements in energy efficiency and peak load reduction, as verified by the Administrator.

(c)

Targets

For calendar year 2008 and each calendar year thereafter, the Administrator shall ensure that retail electric suppliers annually achieve electricity savings and reduce peak power demand and electricity use by retail customers by a percentage that is not less than the applicable target percentage specified in the following table:

Calendar YearReduction in peak demandReduction in electricity use
2008.25 percent.25 percent
2009.75 percent.75 percent
20101.75 percent1.5 percent
20112.75 percent2.25 percent
20123.75 percent3.0 percent
20134.75 percent3.75 percent
20145.75 percent4.5 percent
20156.75 percent5.25 percent
20167.75 percent6.0 percent
20178.75 percent6.75 percent
20189.75 percent7.5 percent
201910.75 percent8.25 percent
2020 and each calendar year thereafter11.75 percent9.0 percent
(d)

Beginning date

For the purpose of meeting the targets established under subsection (c), electricity savings shall be calculated based on the sum of—

(1)

savings realized as a result of actions taken by the retail electric supplier during the specified calendar year; and

(2)

cumulative savings realized as a result of electricity savings achieved in all previous calendar years (beginning with calendar year 2006).

(e)

Implementing regulations

(1)

In general

Not later than 1 year after the date of enactment of this title, the Administrator shall promulgate regulations to implement the targets established under subsection (c).

(2)

Requirements

The regulations shall establish—

(A)

a national credit system permitting credits to be awarded, bought, sold, or traded by and among retail electricity suppliers;

(B)

a fee equivalent to not less than 4 cents per kilowatt hour for retail energy suppliers that do not meet the targets established under subsection (c); and

(C)

standards for monitoring and verification of electricity use and demand savings reported by the retail electricity suppliers.

(3)

Consideration of transmission and distribution efficiency

In developing regulations under this subsection, the Administrator shall consider whether savings, in whole or part, achieved by retail electricity suppliers by improving the efficiency of electric distribution and use should be eligible for credits established under this section.

(f)

Compliance with State law

Nothing in this section shall supersede or otherwise affect any State or local law requiring or otherwise relating to reductions in total annual electricity consumption, or peak power consumption, by electric consumers to the extent that the State or local law requires more stringent reductions than those required under this section.

(g)

Voluntary participation

The Administrator may—

(1)

pursuant to the regulations promulgated under subsection (e)(1), issue a credit to any entity that is not a retail electric supplier if the entity implements electricity savings; and

(2)

in a case in which an entity described in paragraph (1) is a nonprofit or educational organization, provide to the entity 1 or more grants in lieu of a credit.

713.

Renewable portfolio standard

(a)

Renewable energy

(1)

In general

The Administrator, in consultation with the Secretary of Energy, shall promulgate regulations defining the types and sources of renewable energy generation that may be carried out in accordance with this section.

(2)

Inclusions

In promulgating regulations under paragraph (1), the Administrator shall include of all types of renewable energy (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))) other than energy generated from—

(A)

municipal solid waste;

(B)

wood contaminated with plastics or metals; or

(C)

tires.

(b)

Renewable energy requirement

Of the base quantity of electricity sold by each retail electric supplier to electric consumers during a calendar year, the quantity generated by renewable energy sources shall be not less than the following percentages:

Calendar year:Minimum annual percentage:
2008 through 20095
2010 through 201410
2015 through 201915
2020 and subsequent years20
(c)

Renewable energy credit program

Not later than 1 year after the date of enactment of this title, the Administrator shall establish—

(1)

a program to issue, establish the value of, monitor the sale or exchange of, and track renewable energy credits; and

(2)

penalties for any retail electric supplier that does not comply with this section.

(d)

Prohibition on double counting

A renewable energy credit issued under subsection (c)—

(1)

may be counted toward meeting the requirements of subsection (b) only once; and

(2)

shall vest with the owner of the system or facility that generates the renewable energy that is covered by the renewable energy credit, unless the owner explicitly transfers the renewable energy credit.

(e)

Sale under purpa contract

If the Administrator, after consultation with the Secretary of Energy, determines that a renewable energy generator is selling electricity to comply with this section to a retail electric supplier under a contract subject to section 210 of the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 824a–3), the retail electric supplier shall be treated as the generator of the electric energy for the purposes of this title for the duration of the contract.

(f)

State programs

Nothing in this section precludes any State from requiring additional renewable energy generation under any State renewable energy program.

(g)

Voluntary participation

The Administrator may issue a renewable energy credit pursuant to subsection (c) to any entity that is not subject to this section only if the entity applying for the renewable energy credit meets the terms and conditions of this section to the same extent as retail electric suppliers subject to this section.

714.

Standards to account for biological sequestration of carbon

(a)

In general

Not later than 2 years after the date of enactment of title, the Secretary of Agriculture, with the concurrence of the Administrator, shall establish standards for accrediting certified reductions in the emission of carbon dioxide through above-ground and below-ground biological sequestration activities.

(b)

Requirements

The standards shall include—

(1)

a national biological carbon storage baseline or inventory; and

(2)

measurement, monitoring, and verification guidelines based on—

(A)

measurement of increases in carbon storage in excess of the carbon storage that would have occurred in the absence of a new management practice designed to achieve biological sequestration of carbon;

(B)

comprehensive carbon accounting that—

(i)

reflects sustained net increases in carbon reservoirs; and

(ii)

takes into account any carbon emissions resulting from disturbance of carbon reservoirs in existence as of the date of commencement of any new management practice designed to achieve biological sequestration of carbon;

(C)

adjustments to account for—

(i)

emissions of carbon that may result at other locations as a result of the impact of the new biological sequestration management practice on timber supplies; or

(ii)

potential displacement of carbon emissions to other land owned by the entity that carries out the new biological sequestration management practice; and

(D)

adjustments to reflect the expected carbon storage over various time periods, taking into account the likely duration of the storage of carbon in a biological reservoir.

(c)

Updating of standards

Not later than 3 years after the date of establishment of the standards under subsection (a), and every 3 years thereafter, the Secretary of Agriculture shall update the standards to take into account the most recent scientific information.

715.

Global warming pollution reporting

(a)

In general

Not later than 2 years after the date of enactment of this title, and annually thereafter, any entity considered to be a major stationary source (as defined in section 169A(g)) shall submit to the Administrator a report describing the emissions of global warming pollutants from the entity for the preceding calendar year.

(b)

Voluntary reporting

An entity that is not described in subsection (a) may voluntarily report the emissions of global warming pollutants from the entity to the Administrator.

(c)

Requirements for reports

(1)

Expression of measurements

Each global warming pollution report submitted under this section shall express global warming pollution emissions in—

(A)

metric tons of each global warming pollutant; and

(B)

metric tons of the carbon dioxide equivalent of each global warming pollutant.

(2)

Electronic format

The information contained in a report submitted under this section shall be reported electronically to the Administrator in such form and to such extent as may be required by the Administrator.

(3)

De minimis exemption

The Administrator may specify the level of global warming pollution emissions from a source within a facility that shall be considered to be a de minimis exemption from the requirement to comply with this section.

(d)

Public availability of information

Not later than March 1 of the year after which the Administrator receives a report under this subsection from an entity, and annually thereafter, the Administrator shall make the information reported under this section available to the public through the Internet.

(e)

Protocols and methods

The Administrator shall, by regulation, establish protocols and methods to ensure completeness, consistency, transparency, and accuracy of data on global warming pollution emissions submitted under this section.

(f)

Enforcement

Regulations promulgated under this section may be enforced pursuant to section 113 with respect to any person that—

(1)

fails to submit a report under this section; or

(2)

otherwise fails to comply with those regulations.

716.

Clean energy technology deployment in developing countries

(a)

Definitions

In this section:

(1)

Clean energy technology

The term clean energy technology means an energy supply or end-use technology that, over the lifecycle of the technology and compared to a similar technology already in commercial use in any developing country—

(A)

is reliable; and

(B)

results in reduced emissions of global warming pollutants.

(2)

Developing country

(A)

In general

The term developing country means any country not listed in Annex I of the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992.

(B)

Inclusion

The term developing country may include a country with an economy in transition, as determined by the Secretary.

(3)

Task Force

The term Task Force means the Task Force on International Clean, Low-Carbon Energy Cooperation established under subsection (b)(1).

(b)

Task force

(1)

Establishment

Not later than 90 days after the date of enactment of this title, the President shall establish a task force to be known as the Task Force on International Clean, Low Carbon Energy Cooperation.

(2)

Composition

The Task Force shall be composed of—

(A)

the Administrator and the Secretary of State, who shall serve jointly as Co-Chairpersons; and

(B)

representatives, appointed by the head of the respective Federal agency, of—

(i)

the Department of Commerce;

(ii)

the Department of the Treasury;

(iii)

the United States Agency for International Development;

(iv)

the Export-Import Bank;

(v)

the Overseas Private Investment Corporation;

(vi)

the Office of United States Trade Representative; and

(vii)

such other Federal agencies as are determined to be appropriate by the President.

(c)

Duties

(1)

Initial strategy

(A)

In general

Not later than 1 year after the date of enactment of this title, the Task Force shall develop and submit to the President an initial strategy—

(i)

to support the development and implementation of programs and policies in developing countries to promote the adoption of clean, low-carbon energy technologies and energy-efficiency technologies and strategies, with an emphasis on those developing countries that are expected to experience the most significant growth in global warming pollution emissions over the 20-year period beginning on the date of enactment of this title; and

(ii)
(I)

open and expand clean, low-carbon energy technology markets; and

(II)

facilitate the export of that technology to developing countries.

(B)

Submission to congress

On receipt of the initial strategy from the Task Force under subparagraph (A), the President shall submit the initial strategy to Congress.

(2)

Final strategy

Not later than 2 years after the date of submission of the initial strategy under paragraph (1), and every 2 years thereafter—

(A)

the Task Force shall—

(i)

review and update the initial strategy; and

(ii)

report the results of the review and update to the President; and

(B)

the President shall submit to Congress a final strategy.

(3)

Performance criteria

The Task Force shall develop and submit to the Administrator performance criteria for use in the provision of assistance under this section.

(d)

Provision of assistance

The Administrator may—

(1)

provide assistance to developing countries for use in carrying out activities that are consistent with the priorities established in the final strategy; and

(2)

establish a pilot program that provides financial assistance for qualifying projects (as determined by the Administrator) in accordance with—

(A)

the final strategy submitted under subsection (c)(2)(B); and

(B)

any performance criteria developed by the Task Force under subsection (c)(3).

717.

Paramount interest waiver

(a)

In general

If the President determines that a national security emergency exists and, in light of information that was not available as of the date of enactment of this title, that it is in the paramount interest of the United States to modify any requirement under this title to minimize the effects of the emergency, the President may, after opportunity for public notice and comment, temporarily adjust, suspend, or waive any regulations promulgated pursuant to this title to achieve that minimization.

(b)

Consultation

In making an emergency determination under subsection (a), the President shall, to the maximum extent practicable, consult with and take into account any advice received from—

(1)

the Academy;

(2)

the Secretary of Energy; and

(3)

the Administrator.

(c)

Judicial review

An emergency determination under subsection (a) shall be subject to judicial review under section 307.

718.

Effect on other law

Nothing in this title—

(1)

affects the ability of a State to take State actions to further limit climate change (except that section 209 shall apply to standards for vehicles); and

(2)

except as expressly provided in this title—

(A)

modifies or otherwise affects any requirement of this Act in effect on the day before the date of enactment of this title; or

(B)

relieves any person of the responsibility to comply with this Act.

.

3.

Renewable content of gasoline

Section 211(o) of the Clean Air Act (as amended by section 1501 of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 1067)) is amended—

(1)

in paragraph (1)—

(A)

by redesignating subparagraph (B) as subparagraph (E); and

(B)

by inserting after subparagraph (A) the following:

(B)

Low-carbon renewable fuel

The term low-carbon renewable fuel means renewable fuel the use of which, on a full fuel cycle, per-mile basis, and as compared with the use of gasoline, achieves a reduction in global warming pollution emissions of 75 percent or more.

; and

(2)

in paragraph (2)—

(A)

in subparagraph (A)(i), by inserting and low-carbon renewable fuel after renewable fuel; and

(B)

in subparagraph (B)—

(i)

in clause (iv), by striking (iv) Minimum applicable volume.—For the purpose of subparagraph (A), the applicable volume and inserting the following:

(iv)

Minimum applicable volume of renewable fuel

For the purpose of subparagraph (A), the minimum applicable volume of renewable fuel

; and

(ii)

by adding at the end the following:

(v)

Minimum applicable volume of low-carbon renewable fuel

For the purpose of subparagraph (A), the minimum applicable volume of low-carbon renewable fuel for calendar year 2015 and each calendar year thereafter shall be 5,000,000,000 gallons.

.

4.

Enforcement and judicial review

(a)

Federal enforcement

Section 113 of the Clean Air Act (42 U.S.C. 7413) is amended—

(1)

in subsection (a)(3), by striking or title VI, and inserting title VI, or title VII,;

(2)

in subsection (b)(2), by striking or title VI, and inserting title VI, or title VII,;

(3)

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 (relating to stratospheric ozone control), or title VII (relating to global warming pollution emission reductions),; and

(B)

in the first sentence of paragraph (3), by striking or VI and inserting VI, or VII;

(4)

in subsection (d)(1)(B), by striking or VI and inserting VI, or VII; and

(5)

in the first sentence of subsection (f), by striking or VI and inserting VI, or VII.

(b)

Establishment of standards

Section 202 of the Clean Air Act (42 U.S.C. 7521) is amended—

(1)

by redesignating the second subsection (f) (as added by section 207(b) of Public Law 101–549 (104 Stat. 2482)) as subsection (n); and

(2)

by inserting after subsection (n) (as redesignated by paragraph (1)) the following:

(o)

Global warming pollution emission reductions

(1)

In general

Not later than January 1, 2010, the Administrator shall promulgate regulations in accordance with subsection (a) and section 707 to require manufacturers of motor vehicles to meet the vehicle emission standards established under subsections (a) and (b) of section 707.

(2)

Effective date

The regulations promulgated under paragraph (1) shall take effect with respect to motor vehicles sold by a manufacturer beginning in model year 2016.

.

(c)

Administrative proceedings and judicial review

Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended—

(1)

in subsection (b)(1)—

(A)

in the first sentence—

(i)

by striking section 111,, and inserting section 111,; and

(ii)

by inserting any emission standard or requirement issued pursuant to title VII, after under section 120,; and

(B)

in the second sentence, by striking section 112,, and inserting section 112,; and

(2)

in subsection (d)(1)—

(A)

in subparagraph (T), by striking , and at the end;

(B)

in subparagraph (U), by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(V)

the promulgation or revision of any regulation under title VII (relating to global warming pollution).

.

5.

Federal fleet fuel economy

Section 32917 of title 49, United States Code, is amended by adding at the end the following:

(3)

New vehicles

(A)

In general

Except as provided in subparagraph (B), each passenger vehicle purchased, or leased for a period of at least 60 consecutive days, by an Executive agency after the date of enactment of this paragraph shall be as fuel-efficient as practicable.

(B)

Waiver

In an emergency situation, an Executive agency may submit to Congress a written request for a waiver of the requirement under paragraph (1).

.

6.

International negotiations and trade restrictions

It is the sense of the Senate that the United States should act to reduce the health, environmental, economic, and national security risks posed by global climate change, and foster sustained economic growth through a new generation of technologies, by—

(1)

participating in negotiations under the United Nations Framework Convention on Climate Change, done at New York May 9, 1992, and leading efforts in other international forums, with the objective of securing participation of the United States in agreements that—

(A)

advance and protect the economic and national security interests of the United States;

(B)

establish mitigation commitments by all countries that are major emitters of global warming pollution, in accordance with the principle of common but differentiated responsibilities;

(C)

establish flexible international mechanisms to minimize the cost of efforts by participating countries; and

(D)

achieve a significant long-term reduction in global warming pollution emissions; and

(2)

establishing a bipartisan Senate observation group, the members of which should be designated by the Chairman and Ranking Member of the Committee on Foreign Relations of the Senate, and which should include the Chairman and Ranking Member of the Committee on Environment and Public Works of the Senate—

(A)

to monitor any international negotiations on climate change; and

(B)

to ensure that the advice and consent function of the Senate is exercised in a manner to facilitate timely consideration of any applicable treaty submitted to the Senate.

7.

Report on trade and innovation effects

Not later than 2 years after the date of enactment of this Act, and annually thereafter, the Secretary of Commerce, in consultation with the United States Trade Representative, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Energy, and the Administrator of the Environmental Protection Agency (referred to in this section as the Secretary), shall prepare and submit to Congress a report on the trade, economic, and technology innovation effects of the failure of the United States to adopt measures that require or result in a reduction in total global warming pollution emissions in the United States, in accordance with the goals for the United States under the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992.

8.

Climate change in environmental impact statements

In any case in which a Federal agency prepares an environmental impact statement or similar analysis required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Federal agency shall consider and evaluate—

(1)

the impact that the Federal action or project necessitating the statement or analysis would have in terms of net changes in global warming pollution emissions; and

(2)

the ways in which climate changes may affect the action or project in the short term and the long term.

9.

Corporate environmental disclosure of climate change risks

(a)

Regulations

Not later than 2 years after the date of enactment of this Act, the Securities and Exchange Commission (referred to in this section as the Commission) shall promulgate regulations in accordance with section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) directing each issuer of securities under that Act to inform securities investors of the risks relating to—

(1)

the financial exposure of the issuer because of the net global warming pollution emissions of the issuer; and

(2)

the potential economic impacts of global warming on the interests of the issuer.

(b)

Uniform format for disclosure

In carrying out subsection (a), the Commission shall enter into an agreement with the Financial Accounting Standards Board, or another appropriate organization that establishes voluntary standards, to develop a uniform format for disclosing to securities investors information on the risks described in subsection (a).

(c)

Interim interpretive release

(1)

In general

As soon as practicable after the date of enactment of this Act, the Commission shall issue an interpretive release clarifying that under items 101 and 303 of Regulation S-K of the Commission under part 229 of title 17, Code of Federal Regulations (as in effect on the date of enactment of this Act)—

(A)

the commitments of the United States to reduce emissions of global warming pollution under the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992, are considered to be a material effect; and

(B)

global warming constitutes a known trend.

(2)

Period of effectiveness

The interpretive release issued under paragraph (1) shall remain in effect until the effective date of the final regulations promulgated under subsection (a).