S. 2877 (111th): Carbon Limits and Energy for America’s Renewal (CLEAR) Act

111th Congress, 2009–2010. Text as of Dec 11, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

II

111th CONGRESS

1st Session

S. 2877

IN THE SENATE OF THE UNITED STATES

December 11, 2009

(for herself and Ms. Collins) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To direct the Secretary of the Treasury to establish a program to regulate the entry of fossil carbon into commerce in the United States to promote clean energy jobs and economic growth and avoid dangerous interference with the climate of the Earth, and for other purposes.

1.

Short title

This Act may be cited as the Carbon Limits and Energy for America’s Renewal (CLEAR) Act.

2.

Definitions

In this Act:

(1)

Administrator

The term Administrator means the Administrator of the Environmental Protection Agency.

(2)

Carbon dioxide equivalent

The term carbon dioxide equivalent means the equivalent weight of carbon dioxide obtained by multiplying—

(A)

the weight of fossil carbon; and

(B)

the quotient obtained by dividing—

(i)

the molecular weight of carbon dioxide; by

(ii)

the molecular weight of carbon.

(3)

Carbon refund trust fund

The term Carbon Refund Trust Fund means the Carbon Refund Trust Fund established by section 4(f).

(4)

Carbon share

The term carbon share means the right to sell or otherwise place into commerce in the United States 1 ton of fossil carbon.

(5)

Carbon share derivative

The term carbon share derivative means any transaction or contract that derives the value of the transaction or contract in part or in whole from the value of a carbon share.

(6)

CERT Fund

The term CERT Fund means the Clean Energy Reinvestment Trust Fund established by section 6(a).

(7)

Clean energy technology

The term clean energy technology means a technology relating to the production, use, transmission, storage, control, or conservation of energy that would—

(A)

reduce the need for additional energy supplies by—

(i)

using energy sources in existence as of the date of enactment of this Act with greater efficiency; or

(ii)

transmitting, distributing, or transporting energy with greater effectiveness through the infrastructure of the United States;

(B)

diversify the sources of energy supply of the United States and reduce the dependence of the United States on imported energy; or

(C)

contribute to the reduction, avoidance, or sequestration of energy-related greenhouse gas emissions.

(8)

Covered fossil carbon

The term covered fossil carbon means fossil carbon that is—

(A)

introduced into domestic commerce;

(B)

combusted or released into the atmosphere by a first seller; or

(C)

transferred as a royalty-in-kind.

(9)

Energy security dividend

The term energy security dividend means, with respect to any month, a payment in an amount that is equal to the quotient obtained by dividing—

(A)

the amount of auction proceeds transferred into the Carbon Refund Trust Fund for the month preceding such month; by

(B)

the number of qualified individuals for the preceding month.

(10)

First seller

The term first seller means an entity in the business of producing or importing fossil carbon or production process carbon, as determined by the Secretary.

(11)

Fossil carbon

The term fossil carbon means—

(A)

carbon in the form of a fossil fuel (such as coal, natural gas, and crude oil) in the raw state in which the fossil fuel exists at the time the fossil fuel is removed from the Earth; and

(B)

the carbon content of imported refined fuel products (such as gasoline, diesel, and jet fuels) derived from a fossil fuel.

(12)

Greenhouse gas

The term greenhouse gas means—

(A)

carbon dioxide;

(B)

methane;

(C)

nitrous oxide;

(D)

a hydrofluorocarbon;

(E)

a perfluorocarbon;

(F)

sulfur hexafluoride; and

(G)

any other anthropogenically emitted gas that the Administrator, after notice and comment, determines to contribute to climate change.

(13)

Point-of-entry

(A)

In general

The term point-of-entry means, with respect to the economy of the United States, the point at which fossil carbon is introduced into commerce.

(B)

Inclusions

The term point-of-entry includes—

(i)

a wellhead;

(ii)

a mine entrance; and

(iii)

any port-of-entry, as determined by the Secretary.

(14)

Production process carbon

The term production process carbon means the quantity of fossil carbon used to manufacture an energy-intensive commodity.

(15)

Program

The term program means the fossil carbon limitation program established under section 4(a)(1).

(16)

Qualified individual

The term qualified individual means any individual who lawfully resides in the United States.

(17)

Rate of capital investment return

The term rate of capital investment return means an annual real rate of return on capital investment of 6 percent.

(18)

Rate of inflation

The term rate of inflation means the annual rate increase of the price of goods and services, as measured by the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(19)

Safety valve price

The term safety valve price means the maximum price per ton of carbon dioxide equivalent for any 1 calendar year established under section 4(a)(4).

(20)

Secretary

The term Secretary means the Secretary of the Treasury.

(21)

Voluntary carbon reduction purchase

The term voluntary carbon reduction purchase means the voluntary purchase of credits that—

(A)

are not used to meet any regulatory mandate (including any renewable energy standard required by the Federal Government or any State);

(B)

include Federal or State renewable energy certificates, energy efficiency certificates, and other eligible purchases as determined by the Secretary; and

(C)

are solely responsible for the reduction of domestic fossil carbon emissions.

3.

Global warming emissions reduction standards

(a)

In general

The President shall, through the program and the CERT Fund and in accordance with this Act, reduce steadily the quantity of United States greenhouse gas emissions to achieve the emissions reduction standards described in subsection (b).

(b)

Periodic emissions reduction standards

(1)

Calendar year 2020

During calendar year 2020, the quantity of United States greenhouse gas emissions shall not exceed 80 percent of the quantity of United States greenhouse gas emissions during calendar year 2005.

(2)

Calendar year 2025

During calendar year 2025, the quantity of United States greenhouse gas emissions shall not exceed 70 percent of the quantity of United States greenhouse gas emissions during calendar year 2005.

(3)

Calendar year 2030

During calendar year 2030, the quantity of United States greenhouse gas emissions shall not exceed 58 percent of the quantity of United States greenhouse gas emissions during calendar year 2005.

(4)

Calendar year 2050

During calendar year 2050, the quantity of United States greenhouse gas emissions shall not exceed 17 percent of the quantity of United States greenhouse gas emissions during calendar year 2005.

4.

Fossil carbon limitation program

(a)

Establishment

(1)

In general

The Secretary shall by regulation establish within the Department of the Treasury a program to reduce the emission of greenhouse gases—

(A)

by placing a gradually declining limitation on the quantity of fossil carbon permitted to be sold into commerce in the United States; and

(B)

by requiring each first seller to surrender periodically to the Secretary a number of carbon shares equal to the quantity of covered fossil carbon produced or imported by the first seller by not later than 2 years after the date on which the fossil carbon becomes covered fossil carbon.

(2)

Annual quantity of carbon shares

(A)

Initial quantity

(i)

In general

Not later than January 1, 2011, to carry out the program, in accordance with clause (ii), the President, in consultation with the Secretary, the Administrator, and the Secretary of Energy, shall establish and announce a maximum aggregate quantity of fossil carbon, and a corresponding number of carbon shares, permitted to be introduced through points-of-entry for calendar year 2012.

(ii)

Requirement

The maximum aggregate quantity of carbon shares for calendar year 2012 under clause (i) shall equal the approximate level of fossil carbon likely to be required by the economy of the United States during calendar year 2012.

(B)

Subsequent quantities

(i)

Calendar years 2013 and 2014

For each of calendar years 2013 and 2014, the maximum aggregate quantity of carbon shares permitted to be introduced through points-of-entry shall be equal to the maximum aggregate quantity established under subparagraph (A)(i).

(ii)

Calendar year 2015 and subsequent calendar years

For calendar year 2015 and each calendar year thereafter, the maximum aggregate quantity of carbon shares shall be reduced from the quantity of the previous calendar year at a rate that—

(I)

for calendar year 2015, is equal to 0.25 percent; and

(II)

for each subsequent calendar year, increases by an additional 0.25 percent.

(C)

Modification of quantity of carbon shares available

Subject to paragraph (3), the President, in consultation with the Secretary, the Administrator, and the Secretary of Energy, may increase or decrease the number of carbon shares available for an auction to respond to—

(i)

changes in the scientific understanding of climate change;

(ii)

the need to stabilize atmospheric greenhouse gas concentrations to avoid dangerous interference with the climate of the Earth;

(iii)

any international obligations of the United States, including any commitment of the United States under the United Nations Framework Convention on Climate Change;

(iv)

the need to maintain the international competitiveness of the United States;

(v)

the quantity of carbon that has, or is likely, to be permanently sequestered from release into the atmosphere or ocean;

(vi)

the need to provide a sufficient price signal to ensure private sector investment in clean energy technology research, development, and deployment; and

(vii)

appropriations for the programs and initiatives described in section 6(c) that are insufficient to permit the President to meet the standards established by section 3(b).

(3)

Expedited congressional review

(A)

Definition of joint resolution

In this paragraph, the term joint resolution means only a joint resolution introduced during the 30-day period beginning on the date on which the report referred to in subparagraph (B) is received by Congress (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: That Congress approves the modification of the number of shares available for auction described in the report required under section 4(a)(3)(B) of the CLEAR Act submitted by the President to Congress on ____, and the modification shall take effect. (The blank space being appropriately filled in).

(B)

Report

Before any modification of the number of shares available for auction take effect under paragraph (2)(C), the President shall submit to each House of Congress a report that provides a notice of the modification.

(C)

Approval

The modification of the number of shares available for auction under paragraph (2)(C) shall take effect if Congress enacts a joint resolution of approval of the modification.

(D)

Procedure

(i)

In general

Subject to clause (ii), the procedures described in subsections (b) through (g) of section 802 of title 5, United States Code, shall apply to the consideration of a joint resolution under this paragraph.

(ii)

Terms

For purposes of this subparagraph—

(I)

the reference to section 801(a)(1) in section 802(b)(2)(A) of that title shall be considered to refer to subparagraph (B); and

(II)

the reference to section 801(a)(1)(A) in section 802(e)(2) of that title shall be considered to refer to subparagraph (B).

(4)

Auction price safeguards

(A)

Calendar year 2012

The carbon share price shall be limited in a manner to ensure that the corresponding price per ton of carbon dioxide equivalent for calendar year 2012 is—

(i)

not less than $7; and

(ii)

not more than $21.

(B)

Subsequent calendar years

For calendar year 2013 and each calendar year thereafter—

(i)

subject to clause (ii), the minimum allowable carbon share price shall increase by the aggregate rate obtained by adding—

(I)

the rate of inflation; and

(II)

the rate of capital investment return plus 0.5 percent; and

(ii)

the maximum allowable carbon share price shall increase by the aggregate rate obtained by adding—

(I)

the rate of inflation; and

(II)

the rate of capital investment return minus 0.5 percent.

(5)

Penalty for noncompliance

(A)

In general

Any first seller that fails to surrender a sufficient number of carbon shares for the fossil carbon that the first seller introduced to the United States market by not later than 2 years after the date on which the fossil carbon becomes covered fossil carbon shall be liable for payment to the Secretary of a penalty in the amount described in subparagraph (B).

(B)

Amount

The amount of a penalty required to be paid under subparagraph (A) shall be equal to the product obtained by multiplying—

(i)

the number of carbon shares that the owner failed to surrender by the deadline; by

(ii)

5 times the carbon share price set at an auction described in subsection (b), the date of which is closest to that of the sale of the fossil carbon subject to a noncompliance penalty.

(C)

Timing

A penalty required under this paragraph shall be immediately due and payable to the Secretary.

(D)

No effect on liability

A penalty due and payable by the owner of a covered entity under this paragraph shall not diminish the liability of the owner for any fine, penalty, or assessment against the owner for the same violation under any other provision of law.

(E)

Use of penalties

Any penalties collected by the Secretary under this paragraph shall be transferred to the CERT Fund.

(6)

Production process carbon adjustment

(A)

In general

Not later than January 1, 2013, the Secretary, in consultation with the Secretary of Commerce, the Secretary of Energy, and the United States Trade Representative, shall impose fees on individuals and entities for the production process carbon associated with commodities imported for sale in the United States.

(B)

Amount of fee

To the maximum extent practicable, a fee described in subparagraph (A) shall be an amount commensurate with the carbon share value of the production process carbon that is the subject of the fee.

(C)

Applicability

A fee described in subparagraph (A) shall only apply to imported commodities if—

(i)

the fee is compatible with the obligations of the United States with respect to any applicable international trade agreement or treaty to which the United States is a party;

(ii)

the country in which the commodity was produced does not impose comparable limits or fees on the use of fossil carbon; and

(iii)

domestic producers of comparable commodities would be demonstrably disadvantaged economically by the Program in the absence of the fees.

(D)

Use of fees

Any fees collected by the Secretary under this paragraph shall be transferred to the CERT Fund.

(E)

Adjustment methodology

Not later than 180 days after the date of enactment of this Act and periodically thereafter, the Secretary, in consultation with the Secretary of Commerce, the Secretary of Energy, and the United States Trade Representative, shall propose specific data sources and methodologies for measuring and determining which sectors and commodities should be covered by production process carbon adjustments.

(7)

Targeted relief funds

(A)

In general

Not later than January 1, 2013, the Secretary, in consultation with the Secretary of Commerce, the Secretary of Energy, and the United States Trade Representative, shall distribute funds that are appropriated from the CERT Fund to individuals and entities that are unable to compete due to unfair market prices arising from disparate fossil carbon limits or fees among countries.

(B)

Amount of fee

To the maximum extent practicable, the funds described in subparagraph (A) shall be an amount commensurate with the product obtained by multiplying—

(i)

the average additional cost per unit output for the industry or economic sector due to disparate carbon limits among countries; and

(ii)

the number of output units.

(C)

Applicability

The funds described in subparagraph (A) shall only apply to an industry or economic sector if—

(i)

the funds are compatible with the obligations of the United States with respect to any applicable international trade agreement or treaty to which the United States is a party;

(ii)

the destination country for United States exports does not impose comparable limits or fees on—

(I)

the use of fossil carbon within the territories of that country; or

(II)

the importation of production process carbon; and

(iii)

domestic producers would be demonstrably disadvantaged economically and competitively by the program in the absence of the funds.

(D)

Transfer of funds

Any funds distributed by the Secretary under this paragraph shall be transferred from the CERT Fund, as authorized under section 6(c).

(E)

Adjustment methodology

(i)

In general

Not later than 180 days after the date of enactment of this Act and periodically thereafter, in accordance with clause (ii), the Secretary, in consultation with the Secretary of Commerce, the Secretary of Energy, and the United States Trade Representative, shall propose specific data sources and methodologies for measuring and determining which sectors and industries should be considered to be eligible for targeted relief funds.

(ii)

Priority

In carrying out clause (i), to maximize the effectiveness of available funds, the Secretary shall give priority to the most economically and competitively disadvantaged industries and economic sectors.

(b)

Auctions

(1)

In general

Subject to paragraph (9), in carrying out the program, during each calendar year, the Secretary shall conduct monthly uniform price auctions of a portion of the carbon shares made available for the calendar year under subsection (a)(2).

(2)

Eligible participants

First sellers shall be the only entities eligible to participate in an auction conducted under paragraph (1).

(3)

Reserve price

The minimum price of any carbon share purchased under an auction conducted under paragraph (1) shall be the minimum price for the corresponding calendar year specified in subsection (a)(4).

(4)

Safety valve price

(A)

In general

Subject to subparagraph (B), the maximum price of any carbon share purchased under an auction conducted under paragraph (1) shall be the maximum price for the corresponding calendar year specified in subsection (a)(4).

(B)

Safety valve shares

If the safety valve price is reached in any 1 auction conducted under paragraph (1), the number of available carbon shares may be increased to exceed the aggregate quantity described in subsection (a)(2) to ensure that all legal bids at the safety valve price can be accommodated for the 1 auction.

(C)

Safety valve revenues

Any revenue generated by the sale of a carbon share at the safety valve price that is in excess of the aggregate quantity described in subsection (a)(2) shall be—

(i)

deposited in the CERT Fund; and

(ii)

used only for the conduct of a program or initiative within the United States described in subparagraph (F) or (G) of section 6(c)(1).

(D)

Use of safety valve carbon shares

A carbon share purchased at the safety valve price shall be redeemed by not later than 90 days after the date on which the original purchaser purchased the carbon share.

(5)

Use of carbon shares

A carbon share purchased under an auction conducted under paragraph (1), or on an exchange described in paragraph (7)(A), may only be redeemed by a first seller during the 10-year period commencing on the date of issuance to the original carbon share holder.

(6)

Limitation of carbon share purchases and accumulation

(A)

Purchase limitation

During any calendar year, a first seller may not purchase a quantity of carbon shares that significantly exceeds the anticipated volume of covered fossil carbon of the first seller for the calendar year, as determined by the Secretary.

(B)

Accumulation limitation

A first seller may not accumulate a quantity of carbon shares that, as determined by the Secretary—

(i)

exceeds the anticipated volume of covered fossil carbon of the first seller for the duration of the period during which the carbon shares held by the first seller may be redeemed;

(ii)

allows for speculation or manipulation; or

(iii)

interferes with normal market competition.

(7)

Purchase or sale of carbon shares

(A)

In general

A transaction other than an auction described in paragraph (1) that involves the purchase or sale of a carbon share may be carried out only if—

(i)

the carbon share is offered for sale to any eligible first seller on a dedicated public carbon share exchange established and administered by the Secretary for that purpose; and

(ii)

all relevant transaction dates, carbon share quantities, and prices are made publicly available on a real-time basis.

(B)

Certain recipients of carbon shares

Recipients of carbon shares under subsection (c) shall be granted access to an exchange described in subparagraph (A) solely for the purpose of selling carbon shares to eligible first sellers.

(8)

Carbon share derivatives market

(A)

Prohibition

A first seller may not directly or indirectly create, purchase, sell, or trade carbon share derivatives.

(B)

Regulations

Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Commodity Futures Trading Commission, the Federal Energy Regulatory Commission, and the Federal Trade Commission, shall promulgate regulations for the establishment, operation, and oversight of markets for all carbon share derivatives—

(i)

to provide for effective and comprehensive market oversight;

(ii)

to prohibit fraud, market manipulation (in accordance with section 222 of the Federal Power Act (16 U.S.C. 824v)), and excessive speculation; and

(iii)

to limit unreasonable or excessive fluctuations in the price of carbon share derivatives and carbon shares.

(9)

Modification of auction frequency

The Secretary may modify the frequency of the uniform price auctions under paragraph (1) if the Secretary determines that the modification will significantly—

(A)

improve the accuracy, predictability, and stability of the market-clearing auction price; or

(B)

facilitate greater program efficiency.

(c)

Reimbursement for embedded, reinjected, and sequestered carbon

The Secretary shall provide carbon shares that are in excess of the aggregate quantity established under subsection (a)(2) to each—

(1)

operator of a carbon capture and storage facility, in a quantity that corresponds to the quantity of fossil carbon verifiably sequestered by the carbon capture and storage facility in compliance with each appropriate law (including regulations);

(2)

operator of an oil or gas reinjection project, in a quantity that corresponds to the quantity of reinjected covered fossil carbon; and

(3)

manufacturer that embeds fossil carbon in the products produced by the manufacturer in—

(A)

a manner that prevents the emission of the fossil carbon into the atmosphere for a period of time that is sufficient to prevent any negative impact on the climate; and

(B)

a quantity that corresponds to the aggregate quantity of covered fossil carbon embedded in the products.

(d)

Adjustment for voluntary carbon reduction market

(1)

In general

The Secretary shall reduce the aggregate quantity of carbon shares established under subsection (a)(2) for all verifiable reductions of fossil carbon emissions attributable solely to voluntary carbon reduction purchases.

(2)

Quantity

The aggregate quantity of carbon shares established under subsection (a)(2) shall be reduced by an amount equal to the product obtained by multiplying—

(A)

the corresponding quantity of fossil carbon emission reductions that are attributable solely to voluntary carbon reduction purchases; and

(B)
(i)

if the market price of the voluntary carbon reduction purchases is not less than the market price of the corresponding carbon shares (as determined by the most recent auction described in subsection (b)), 1; or

(ii)

if clause (i) does not apply, the quotient of the market price of the voluntary carbon reduction purchases and the market price of the corresponding carbon shares (as determined by the most recent auction described in subsection (b)).

(3)

Verification

The quantity of carbon shares determined under paragraph (2) shall be verified by the Federal Energy Regulatory Commission.

(e)

Contractual treatment of carbon shares

(1)

Litigation reduction

A carbon share surrendered for fossil carbon produced by an oil or natural gas well shall be considered to be a lifting expense.

(2)

Cost allocation

With respect to any long-term, fixed-price delivery contract entered into before the date of enactment of this Act, the duration of which is longer than 1 year, there shall be a rebuttable presumption that—

(A)

this Act makes performance of the contract impracticable; and

(B)

each party that entered into the contract assumed at the time of bargaining that the effects of this Act would not occur.

(f)

Carbon refund trust fund

(1)

In general

There is established in the Treasury of the United States a trust fund to be known as the Carbon Refund Trust Fund, consisting of such amounts as may be appropriated to the trust fund under this subsection.

(2)

Transfer of auction proceeds

There are appropriated to the Carbon Refund Trust Fund, out of funds in the Treasury not otherwise appropriated, an amount equal to 3/4 of the proceeds from auctions conducted under subsection (b).

(3)

Expenditures from fund

Amounts in the Carbon Refund Trust Fund shall be available for the purpose of making energy security dividends as provided in section 5.

5.

Per capita distribution of auction proceeds

(a)

In general

Every qualified individual is eligible to receive an energy security dividend for each month beginning with the first month after such individual becomes a qualified individual and ending with the last full month prior to an individual ceasing to be a qualified individual.

(b)

Administration

(1)

Energy security dividends

To provide an energy security dividend to each qualifying individual, the Secretary shall coordinate with—

(A)

the Commissioner of Social Security;

(B)

the Secretary of Energy;

(C)

the Secretary of Agriculture;

(D)

the Secretary of Health and Human Services;

(E)

the head of any other appropriate Federal agency, as determined by the Secretary; and

(F)

the Governor or appropriate official of—

(i)

each State;

(ii)

the District of Columbia; and

(iii)

each territory and possession of the United States.

(2)

Cost-effective mechanism requirement

To distribute energy security dividends, the Secretary shall use the most cost-effective mechanism, including any public benefit program or electronic delivery mechanism administered by—

(A)

the Federal Government; or

(B)

any State.

(3)

Privacy guarantee requirement

The Secretary shall guarantee—

(A)

the protection of the privacy of every qualified individual; and

(B)

that any personal information of a qualified individual shall be used by the Secretary only to ensure the accurate distribution of energy security dividends.

(4)

Dividend taxation

Any amount received from the receipt of an energy security dividend shall be excluded from gross income under the Internal Revenue Code of 1986.

(c)

Frequency and mode of allocation of energy security dividends

The Secretary may modify the frequency or mode of allocation of energy security dividends—

(1)

to minimize administrative costs associated with the program; or

(2)

to increase the value of energy security dividends.

(d)

Monitoring; annual reports

(1)

Monitoring

Effective beginning January 1, 2012, the Administrator of the Energy Information Administration shall, on a monthly basis, calculate and record the incremental contribution of carbon share prices to wholesale and retail fossil fuel prices.

(2)

Annual reports

Not later than June 1, 2013, and annually thereafter, the Administrator of the Energy Information Administration shall prepare and post on the website of the Energy Information Administration a report that contains, for the period covered by the report, the results of the monitoring carried out by the Administrator of the Energy Information Administration under paragraph (1).

(e)

Energy efficiency consumer loan program

As soon as practicable after the date of enactment of this Act, the Secretary shall establish a program that enables a qualifying individual to borrow against any future energy security dividend to the qualifying individual to enable the qualifying individual to make investments in approved energy efficiency or clean energy technologies and services that would, within a reasonable time period—

(1)

result in a reduced energy bill for the qualifying individual; and

(2)

reduce greenhouse gas emissions.

(f)

Office of Consumer Advocacy

(1)

Establishment

As soon as practicable after the date of enactment of this Act, the Secretary shall establish in the Department of the Treasury an Office of Consumer Advocacy to serve as an advocate for the public interest of energy consumers.

(2)

Duties

The Office of Consumer Advocacy may—

(A)

represent (and appeal on behalf of) residential and small commercial customers of energy;

(B)

monitor and review energy customer complaints and grievances; and

(C)

investigate, collect data, and report on matters relating to the manner by which this Act impacts rates charged or services provided by public utilities and natural gas companies.

6.

Clean energy reinvestment trust fund

(a)

Establishment

There is established in the Treasury of the United States a revolving fund, to be known as the Clean Energy Reinvestment Trust Fund or the CERT Fund, consisting of such amounts as are appropriated to the Fund under subsection (b).

(b)

Transfers to fund

(1)

In general

There are appropriated to the CERT Fund, out of funds in the Treasury not otherwise appropriated, amounts equivalent to—

(A)

1/4 of the proceeds from auctions conducted under section 4(b)(1) and all of the proceeds under section 4(b)(4)(C);

(B)

the amount of penalties transferred to the CERT Fund under section 4(a)(5)(E); and

(C)

the amount of fees transferred to the CERT Fund under section 4(a)(6)(D).

(2)

Investment of corpus

Rules similar to the rules of section 9602(b) of the Internal Revenue Code of 1986 shall apply for purposes of this section.

(c)

Expenditures from fund

(1)

In general

To the extent that budget authority and appropriations are made available in advance and subject to paragraph (2), amounts in the CERT Fund shall be used to carry out programs and initiatives (including allocation to the CERT Fund to support financing programs designed or administered by the Clean Energy Deployment Administration), provide incentives, and make loans and grants—

(A)

to provide targeted and region-specific transition assistance to workers, communities, industries, and small businesses of the United States experiencing the greatest economic dislocations due to efforts to reduce carbon emissions and address climate change and ocean acidification;

(B)

to provide targeted and region-specific compensation for early retirement of carbon-intensive facilities, machinery, or related assets in the United States that are stranded by new market dynamics;

(C)

to provide targeted and region-specific mitigation and adaptation assistance to residents, communities, industries, and small businesses of the United States that experience the greatest demonstrable negative impacts from climate change;

(D)

subject to the criteria described in section 4(a)(7)(C), to provide targeted relief to energy-intensive industries (including agriculture and forestry industries) that export goods or products to countries that do not have similar restrictions on fossil carbon;

(E)

to support training and development programs to prepare United States workers for careers in energy efficiency, renewable energy, and other emerging clean technology industries;

(F)

to curtail the emission of—

(i)

greenhouse gases other than carbon dioxide from fossil carbon; and

(ii)

nongreenhouse gas substances that exacerbate or accelerate climate change (including black carbon);

(G)

to fund cost-effective domestic and international projects that verifiably reduce, avoid, or sequester greenhouse gas emissions through the modification of agriculture, forestry, or other land use practices;

(H)

to ensure sustained and robust investments in clean energy and fuels research, development, and deployment activities;

(I)

to fund projects or initiatives that verifiably increase energy efficiency or energy productivity;

(J)

to fund programs that provide financial support for low-income families that experience difficulty paying high seasonal utility bills;

(K)

to fund projects or initiatives that support residential fuel switching (with priority given to projects or initiatives relating to home heating oil);

(L)

to provide matching grants to low-income energy efficiency consumer loan recipients;

(M)

to carry out weatherization and improve energy efficiency of low-income and public buildings;

(N)

to provide funding for climate change or ocean acidification mitigation and adaptation projects, activities, and research to increase the resilience of human populations and communities, fish and wildlife, and managed and unmanaged terrestrial, aquatic, and marine ecosystems in areas at which impacts are likely to be most severe;

(O)

to provide funding for programs that protect or advocate for energy consumers (including the Office of Consumer Advocacy established under section 5(f)); and

(P)

to ensure that the program does not contribute to the budget deficit of the Federal Government.

(2)

Use

Amounts in the CERT Fund shall—

(A)

only be used for the purposes described in paragraph (1);

(B)

be allocated to ensure compliance with the standards established by section 3(b), including meeting reasonable interyear emissions reduction standards;

(C)

to the extent practicable, be awarded—

(i)

on a competitive-bid basis; and

(ii)

in accordance with applicable laws (including regulations) and procedures of existing Federal programs; and

(D)

to the extent practicable, complement and leverage existing Federal programs, the scope and mission of which complement the purposes described in paragraph (1).

(d)

Transfers of amounts

(1)

In general

The amounts required to be transferred to the CERT Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the CERT Fund on the basis of estimates made by the Secretary.

(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.

7.

Sense of the Senate

It is the sense of the Senate that—

(1)

the goals of this Act are complemented and supported by policies and incentives, appropriated programs, and pending legislative proposals, including—

(A)

Federal and State renewable energy standards;

(B)

energy tax credits;

(C)

energy efficiency standards for buildings and household appliances; and

(D)

vehicle fuel economy standards;

(2)

the Federal Government should take further action to reduce the risks associated with greenhouse gas emissions, especially greenhouse gas emissions not derived from fossil carbon;

(3)

climate change is a global problem that requires a global solution, and action by the United States alone or by a coalition of developed nations will not—

(A)

adequately address the risks associated with greenhouse gas emissions; or

(B)

solve the global energy problem; and

(4)

international trade and climate policy agreements are the most effective instruments by which to address concerns about carbon leakage and international trade competitiveness.