[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 485 Introduced in Senate (IS)]
110th CONGRESS
1st Session
S. 485
To amend the Clean Air Act to establish an economy-wide global warming
pollution emission cap-and-trade program to assist the economy in
transitioning to new clean energy technologies, to protect employees
and affected communities, to protect companies and consumers from
significant increases in energy costs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 1, 2007
Mr. Kerry (for himself and Ms. Snowe) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Clean Air Act to establish an economy-wide global warming
pollution emission cap-and-trade program to assist the economy in
transitioning to new clean energy technologies, to protect employees
and affected communities, to protect companies and consumers from
significant increases in energy costs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Global Warming
Reduction Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS
Sec. 101. Global warming pollution emission reductions.
Sec. 102. Biofuels infrastructure.
TITLE II--TAX INCENTIVES FOR ADVANCED TECHNOLOGY VEHICLES
Subtitle A--Providing Consumers With Additional Advanced Technology
Vehicle Purchase Incentives
Sec. 201. Expansion and extension of alternative motor vehicle credit.
Sec. 202. Plug-in hybrid motor vehicle tax credit.
Subtitle B--Advanced Technology Motor Vehicles Manufacturing Credit
Sec. 211. Advanced technology motor vehicles manufacturing credit.
TITLE III--INTERNATIONAL AND CORPORATE OBLIGATIONS
Sec. 301. International negotiations and trade restrictions.
Sec. 302. Corporate environmental disclosure of climate change risks.
TITLE IV--NATIONAL CLIMATE CHANGE VULNERABILITY AND RESILIENCE PROGRAM
Sec. 401. Definitions.
Sec. 402. National Climate Change Vulnerability and Resilience Program.
SEC. 2. FINDINGS.
Congress finds that--
(1) the United States is a party to the United Nations
Framework Convention on Climate Change, done at New York on May
9, 1992, which has the objective of stabilizing global warming
pollution concentrations in the atmosphere at a level that
would prevent dangerous anthropogenic interference with the
climate system;
(2) to achieve this objective, the increase in global mean
surface temperature should not exceed 2 degrees Celsius (3.6
degrees Fahrenheit) above preindustrial temperatures;
(3) the risks associated with a temperature increase above
2 degrees Celsius (3.6 degrees Fahrenheit) are grave, including
the disintegration of the Greenland ice sheet, which, if melted
completely, would raise the global average sea level by
approximately 23 feet, devastating many of the coastal areas
and population centers of the world;
(4) the Intergovernmental Panel on Climate Change projects
that, under a range of expected emissions trends, temperatures
will rise between 1.4 degrees Celsius to 5.8 degrees Celsius
(2.5 degrees Fahrenheit to 10.4 degrees Fahrenheit) by the end
of the century;
(5) serious global warming impacts have already been
observed in the United States and worldwide, including--
(A) increases in heat waves and other extreme
weather events;
(B) a rise in sea levels;
(C) a retreat of glaciers and polar ice;
(D) a decline in mountain snowpacks;
(E) increased drought and wildfires;
(F) stronger hurricanes;
(G) ocean acidification;
(H) extensive coral bleaching;
(I) migrations and shifts in the yearly cycles of
plants and animals; and
(J) the spread of infectious diseases;
(6) by 2050, scientists project that, under a mid-range
estimate of global warming, approximately 25 percent of animal
and plant species would be doomed to extinction;
(7) decisive action is--
(A) needed to minimize the many dangers posed by
global warming; and
(B) critical since global warming pollutants can
persist in the atmosphere for more than a century;
(8) reductions in emissions from current levels should
begin within a decade of the date of enactment of this Act to
preserve the ability to stabilize atmospheric global warming
pollution concentrations at levels likely to protect against a
temperature rise above 2 degrees Celsius (3.6 degrees
Fahrenheit);
(9) while the United States has only 5 percent of the world
population, the United States--
(A) emits at least 20 percent of the total global
warming pollution emissions of the world; and
(B) needs to be a leader in addressing global
warming; and
(10) existing energy efficiency and clean, renewable energy
technologies would reduce global warming pollution, while--
(A) saving consumers money;
(B) reducing the dependence of the United States on
oil;
(C) enhancing national security;
(D) cleaning the air; and
(E) protecting pristine places from drilling and
mining.
TITLE I--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS
SEC. 101. 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:
``TITLE VII--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS
``Sec. 701. Definitions.
``Sec. 702. Global warming pollution emission reductions.
``Sec. 703. Market-based cap on emissions.
``Sec. 704. Global warming pollution emission standards for passenger
vehicles.
``Sec. 705. Research and development.
``Sec. 706. Energy efficiency performance standard.
``Sec. 707. Renewable portfolio standard.
``Sec. 708. Standards to account for biological sequestration of
carbon.
``Sec. 709. Global warming pollution reporting.
``Sec. 710. National Academy of Sciences report.
``Sec. 711. Additional authority to regulate emissions of global
warming pollutants.
``SEC. 701. DEFINITIONS.
``In this title:
``(1) Academy.--The term `Academy' means the National
Academy of Sciences.
``(2) Allowance.--The term `allowance' means an
authorization by the Administrator to emit--
``(A) 1 metric ton of carbon dioxide; or
``(B) in the case of a global warming pollutant
other than carbon dioxide, a carbon dioxide equivalent.
``(3) 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.
``(4) Covered entity.--The term `covered entity' means any
individual or entity subject to the cap on emissions of global
warming pollutants imposed under section 703(a)(1), as
determined by the Administrator.
``(5) 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.
``(6) Fund.--The term `Fund' means the Climate Reinvestment
Fund established by section 703(g)(1).
``(7) Global warming pollutant.--The term `global warming
pollutant' means each of--
``(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.
``(8) 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.
``(9) Program.--The term `program' means the cap-and-trade
program established by the Administrator under section 703(a).
``SEC. 702. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.
``(a) Goals.--
``(1) Emission reduction goal.--Congress declares that 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 pollutant emissions--
``(A) to facilitate the achievement of an average
global atmospheric concentration of global warming
pollution that does not exceed 450 parts per million;
and
``(B) beginning not later than calendar year 2010,
to reverse increases in global warming pollution
emissions so as to achieve, by not later than calendar
year 2050, a 65-percent reduction in global warming
pollution emissions in the United States (as compared
to those global warming pollution emissions for
calendar year 2000).
``(2) Additional goal.--In addition to the emission
reduction goal described in paragraph (1), Congress declares
that, in implementing this title, it shall be the goal of the
United States--
``(A) to maximize public benefits and promote
economic growth;
``(B) to mitigate the effect of any energy cost
increases to consumers, particularly low-income
consumers;
``(C) to provide equitable transition assistance to
any employees and regions affected by a transition away
from the use of high carbon-emitting energy sources;
``(D) to encourage research, development, and
commercial deployment of innovative technologies for
avoiding, reducing, or sequestering emissions of global
warming pollutants;
``(E) to encourage reduced carbon emissions from,
and enhanced sequestration of, carbon in the forest and
agricultural sectors;
``(F) to recognize and reward early reductions of
greenhouse gases; and
``(G) to support activities, including providing
support for State activities, to protect against and
mitigate the impacts of climate change, including--
``(i) the depletion of snowpack and water
supplies;
``(ii) droughts;
``(iii) wildfires;
``(iv) enhanced coastal erosion;
``(v) increases in sea levels;
``(vi) higher storm surges;
``(vii) more intense precipitation events
and hurricanes;
``(viii) the spread of disease;
``(ix) damage to fish and wildlife habitat;
``(x) negative commercial effects (such as
damage to the maple syrup and fishing
industries); and
``(xi) agricultural and forestry losses
resulting from drought, disease, and insect
infestations.
``(b) Regulations.--
``(1) Emission reduction targets.--In order to achieve the
goals described in subsection (a), not later than 2 years after
the date of enactment of this title, the Administrator shall
promulgate any regulations that are necessary to reduce the
aggregate net level of global warming pollution emissions of
the United States--
``(A) by calendar year 2020, through appropriate
measures taken during the period of calendar years 2010
through 2019, to the aggregate net level of global
warming pollution emissions of the United States for
calendar year 1990;
``(B) for each of calendar years 2021 through 2030,
by at least an additional 2.5 percent below the level
achieved for the preceding calendar year in accordance
with this paragraph; and
``(C) for each of calendar years 2031 through 2050,
by at least an additional 3.5 percent below the level
achieved for the preceding calendar year in accordance
with this paragraph.
``(2) Additional regulations.--The regulations promulgated
under this subsection may include--
``(A) requirements to reduce emissions of
greenhouse gases from any source or sector, regardless
of whether the source or sector is described in section
703(b)(1);
``(B) emissions performance standards;
``(C) efficiency performance standards;
``(D) best management practices;
``(E) technology-based requirements; and
``(F) such other requirements as the Administrator
determines to be appropriate.
``SEC. 703. MARKET-BASED CAP ON EMISSIONS.
``(a) In General.--In carrying out section 702, the Administrator
shall establish a program that--
``(1) imposes a cap on the emissions of global warming
pollutants from sources and sectors described in subsection
(b)(1); and
``(2) allows trading of allowances among covered entities.
``(b) Scope.--The program established under subsection (a) shall--
``(1) apply the cap required by subsection (a)(1) to the
sources or sectors of the United States economy with--
``(A) the greatest global warming pollutant
emissions;
``(B) the most cost-effective opportunities to
reduce global warming pollutant emissions; or
``(C) other characteristics that the Administrator
determines make the source or sector appropriate for
inclusion in the program; and
``(2) cover a sufficient proportion of total United States
emissions of global warming pollutants, such that, in
combination with other measures adopted under this title, and
under the Global Warming Reduction Act of 2007 and the
amendments made by that Act, the program will ensure, to the
maximum extent practicable, that the aggregate United States
emissions of global warming pollutants will not exceed the
emission reduction targets promulgated pursuant to section
702(b)(1).
``(c) Allowances.--
``(1) Issuance.--
``(A) In general.--The regulations promulgated
under section 702(b) shall provide for the
Administrator to issue, for each calendar year, a
quantity of allowances equal to the aggregate emissions
allowed under the cap imposed under subsection (a)(1)
for the calendar year.
``(B) Treatment as property.--An allowance issued
under subparagraph (A) shall not constitute a property
right.
``(C) No effect on authority.--Nothing in this
title or any other provision of law limits or otherwise
affects the authority of the United States to terminate
or limit an allowance issued under subparagraph (A).
``(2) Trading.--An allowance issued under this subsection
may be held and traded by any person.
``(3) Flexibility.--An allowance issued under this
subsection may be--
``(A) used for the calendar year in which the
allowance was issued; or
``(B) banked for use in a calendar year subsequent
to the calendar year of issuance.
``(d) Distribution of Allowances.--
``(1) Submission of plan by president.--
``(A) In general.--Not later than 1 year after the
date of enactment of this title, the President, in
consultation with the Administrator and heads of other
appropriate Federal agencies, shall develop and submit
to Congress a plan--
``(i) to distribute the allowances issued
under this section through--
``(I) auctions; and
``(II) at the discretion of the
President and subject to subparagraph
(B)(iii), allocations without charge to
covered entities or entities that are
not covered by the cap imposed under
subsection (a)(1);
``(ii) to deposit the proceeds of those
auctions in the Fund; and
``(iii) to ensure, to the maximum extent
practicable, that those allowances are
distributed, and those proceeds are used, in a
manner consistent with achieving the goals
described in section 702(a).
``(B) Contents.--The plan submitted under
subparagraph (A) shall--
``(i) identify each Federal department or
agency responsible for implementing each action
required;
``(ii) require that allowances be
distributed not later than January 1, 2010, for
calendar year 2010; and
``(iii) in no case allow any distribution
of allowances without charge, resulting in the
creation of windfall profits for covered
entities.
``(2) Plan implementation.--If, after the 1-year period
beginning on the date of submission of the plan under paragraph
(1)(A), Congress has not enacted a law that implements the plan
(or an alternative to the plan), the Administrator and the head
of each Federal department or agency identified in paragraph
(1)(B)(i) shall implement the actions identified in the plan.
``(e) Monitoring.--The Administrator shall ensure, to the maximum
extent practicable, that--
``(1) the emissions of global warming pollutants and the
use of allowances issued under this section are accurately
tracked, reported, and verified; and
``(2) the cap-and-trade system established pursuant to this
section is robust and enforceable.
``(f) Enforcement.--
``(1) In general.--In the case of excess emissions of
global warming pollutants under this section by an covered
entity during any calendar year, the regulations promulgated
under section 702(b) shall require the covered entity--
``(A) to submit allowances for the emissions during
the following calendar year; and
``(B) to pay a civil penalty in an amount
determined under paragraph (2).
``(2) Amount of civil penalty.--
``(A) In general.--The amount of a civil penalty
for each quantity of excess emissions of global warming
pollutants constituting 1 carbon dioxide equivalent
shall be an amount equal to twice the market price for
an allowance as of December 31 of the calendar year in
which the excess emissions occurred.
``(B) Determination of market price.--The
Administrator shall, by regulation, establish a method
of determining the market price of allowances for the
purpose of subparagraph (A).
``(3) No demand required.--A civil penalty under this
subsection shall be due and payable to the Administrator
without demand.
``(4) Deposit and use of amounts.--A civil penalty paid to
the Administrator under this subsection shall be--
``(A) deposited in the Fund; and
``(B) available for use by the President, in
accordance with subsection (g), without further
appropriation.
``(g) Climate Reinvestment Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a fund, to be known as the `Climate
Reinvestment Fund', consisting of--
``(A) amounts collected pursuant to auctions of
allowances issued under this section;
``(B) amounts received as civil penalties and
deposited in the Fund under subsection (f)(4)(A); and
``(C) any interest earned on investment of amounts
in the Fund under paragraph (3).
``(2) Expenditures from fund.--On request by the President,
the Secretary of the Treasury shall transfer from the Fund to
the President such amounts as the President determines to be
necessary to carry out projects and activities to achieve the
goals described in section 702(a).
``(3) Investment of amounts.--
``(A) In general.--The Secretary of the Treasury
shall invest such portion of the Fund as is not, in the
judgment of the Secretary of the Treasury, required to
meet current withdrawals.
``(B) Interest-bearing obligations.--Investments
may be made only in interest-bearing obligations of the
United States.
``(C) Acquisition of obligations.--For the purpose
of investments under subparagraph (A), obligations may
be acquired--
``(i) on original issue at the issue price;
or
``(ii) by purchase of outstanding
obligations at the market price.
``(D) Sale of obligations.--Any obligation acquired
by the Fund may be sold by the Secretary of the
Treasury at the market price.
``(E) Credits to fund.--The interest on, and the
proceeds from the sale or redemption of, any
obligations held in the Fund shall be credited to, and
form a part of, the Fund.
``(4) Funding.--For each fiscal year, there are
appropriated to the Fund, to remain available until expended,
an amount equal to the sum of, with respect to the preceding
fiscal year--
``(A) amounts collected pursuant to auctions of
allowances issued under this section; and
``(B) the amount of civil penalties deposited in
the Fund under subsection (f)(4)(A).
``SEC. 704. GLOBAL WARMING POLLUTION EMISSION STANDARDS FOR PASSENGER
VEHICLES.
``(a) Definition of Passenger Vehicle.--In this section, the term
`passenger vehicle' means--
``(1) a passenger automobile (as that term is defined in
section 32901 of title 49, United States Code);
``(2) a light truck; and
``(3) any other vehicle that the Administrator determines
is a vehicle the primary use of which is noncommercial personal
transportation.
``(b) Standards.--
``(1) In general.--In carrying out section 702(b), the
Administrator shall promulgate regulations that establish
standards for global warming pollution emissions from passenger
vehicles.
``(2) Requirements.--The standards established under
paragraph (1) shall provide for the reduction of global warming
pollution emissions from passenger vehicles, on an average-
vehicle basis, at a rate and in quantities that are equal to or
greater than the rate and quantity reductions in those
emissions achieved under standards adopted by the California
Air Resources Board at the September 23-24, 2004 hearing of
that Board (California Code of Regulations, title 13, sec.
1961.1).
``(3) Revisions.--Not later than January 1, 2014, and every
5 years thereafter, the Administrator shall promulgate
regulations revising the standards described in paragraph (1)
to further reduce global warming pollution emissions from
passenger vehicles, taking into account--
``(A) the reductions necessary to achieve the
emission reduction targets promulgated pursuant to
section 702(b)(1); and
``(B) the technological feasibility of further
reducing those emissions.
``SEC. 705. 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 providing scientific and technical
knowledge applicable to the reduction of global warming pollutants.
``(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;
``(iv) to assist in developing improved
industrial processes designed to reduce or
eliminate global warming pollution; and
``(v) to assist in understanding the
acidification of the oceans and the ways in
which that process affects ocean ecosystems and
fisheries of the United States.
``(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.
``SEC. 706. 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 2009 and each calendar year
thereafter, the Administrator shall ensure, to the maximum extent
practicable, 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:
------------------------------------------------------------------------
Reduction in peak Reduction in
Calendar Year demand electricity use
------------------------------------------------------------------------
2009........................ .25 percent......... .25 percent
2010........................ .75 percent......... .75 percent
2011........................ 1.75 percent........ 1.5 percent
2012........................ 2.75 percent........ 2.25 percent
2013........................ 3.75 percent........ 3.0 percent
2014........................ 4.75 percent........ 3.75 percent
2015........................ 5.75 percent........ 4.5 percent
2016........................ 6.75 percent........ 5.25 percent
2017........................ 7.75 percent........ 6.0 percent
2018........................ 8.75 percent........ 6.75 percent
2019........................ 9.75 percent........ 7.5 percent
2020........................ 10.75 percent....... 8.25 percent
2021 and each calendar year 11.75 percent....... 9.0 percent
thereafter.
------------------------------------------------------------------------
``(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 2007).
``(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.
``SEC. 707. 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:
2009 through 2010...................................... 5
2011 through 2015...................................... 10
2016 through 2020...................................... 15
2021 and subsequent years.............................. 20.
``(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.
``SEC. 708. 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.
``SEC. 709. 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.
``SEC. 710. NATIONAL ACADEMY OF SCIENCES REPORT.
``(a) In General.--Not later than 2 years after the date of
enactment of this title, and every 2 years thereafter, the Academy,
acting in coordination with the National Research Council, shall submit
to the Administrator and Congress a report that assesses--
``(1) the probability of avoiding dangerous anthropogenic
interference with the climate system; and
``(2) the progress made by the United States as of the date
of the report to avoid that interference.
``(b) Contents.--A report submitted under subsection (a) shall--
``(1) evaluate whether the emission reduction targets
promulgated pursuant to section 702(b)(1) are, after taking
into account the actions of the international community, likely
to be sufficient to avoid dangerous climate change;
``(2) include an assessment of the occurrence, or
probability of occurrence, of--
``(A) a concentration of atmospheric global warming
pollution of greater than 450 carbon dioxide equivalent
parts per million;
``(B) a global mean surface temperature increase of
greater than 2 degrees Celsius (3.6 degrees Fahrenheit)
from preindustrial levels;
``(C) a substantial slowing of the Atlantic
thermohaline circulation;
``(D) a sea level rise of more than 8 inches;
``(E) an ice-free Arctic Ocean in the summer;
``(F) a decrease in the area of permafrost to a
level less than 50 percent of the area of permafrost in
existence in 2000;
``(G) a loss of more than 40 percent of the
coverage of coral reefs in the world because of
increased ocean temperature or acidity; and
``(H) any other indicator of significant global
warming, as determined by the Academy;
``(3) if the Academy concludes that the emission reduction
targets promulgated pursuant to section 702(b)(1) are not
likely to be sufficient to avoid dangerous climate change, or
that any event specified in paragraph (2) has occurred or is
likely to occur--
``(A) identify the necessary level of further
reductions in atmospheric global warming pollution
concentrations; and
``(B) recommend additional actions by the United
States and the international community to further
reduce atmospheric concentrations of global warming
pollution; and
``(4) if the Academy concludes that an emission reduction
target described in section 702(b)(1) cannot be achieved due to
technological infeasibility, include a notification of that
determination.
``SEC. 711. ADDITIONAL AUTHORITY TO REGULATE EMISSIONS OF GLOBAL
WARMING POLLUTANTS.
``The authority of the Administrator under this title shall be in
addition to the authority of the Administrator to regulate emissions of
global warming pollutants pursuant to any other provision of law in
effect as of the date of enactment of this title.''.
SEC. 102. BIOFUELS INFRASTRUCTURE.
(a) Renewable Fuel Program.--Section 211(o)(2) of the Clean Air Act
(42 U.S.C. 7545(o)(2)) is amended by striking subparagraph (B) and
inserting the following:
``(B) Applicable volume.--
``(i) In general.--For the purpose of
subparagraph (A), the applicable volume for
calendar year 2010 and each calendar year
thereafter shall be determined, by rule, by the
Administrator, in consultation with the
Secretary of Agriculture and the Secretary of
Energy, in a manner that ensures, to the
maximum extent practicable, that--
``(I) the requirements described in
clause (ii) for specified calendar
years are met; and
``(II) the applicable volume for
each calendar year not specified in
clause (ii) is determined on an annual
basis.
``(ii) Requirements.--The requirements
referred to in clause (i) are--
``(I) for calendar year 2010, at
least 10,000,000,000 gallons of
renewable fuel;
``(II) for calendar year 2020, at
least 30,000,000,000 gallons of
renewable fuel; and
``(III) for calendar year 2030, at
least 60,000,000,000 gallons of
renewable fuel.''.
(b) Installation of E-85 Fuel Pumps by Major Oil Companies at Owned
Stations and Branded Stations.--Section 211(o) of the Clean Air Act (42
U.S.C. 7545(o)) is amended by adding at the end the following:
``(11) Installation of e-85 fuel pumps by major oil
companies at owned stations and branded stations.--
``(A) Definitions.--In this paragraph:
``(i) E-85 fuel.--The term `E-85 fuel'
means a blend of gasoline approximately 85
percent of the content of which is derived from
ethanol produced in the United States.
``(ii) Major oil company.--The term `major
oil company' means any person that,
individually or together with any other person
with respect to which the person has an
affiliate relationship or significant ownership
interest, has not less than 4,500 retail
station outlets according to the latest
publication of the Petroleum News Annual
Factbook.
``(iii) Secretary.--The term `Secretary'
means the Secretary of Energy, acting in
consultation with the Administrator and the
Secretary of Agriculture.
``(B) Regulations.--The Secretary shall promulgate
regulations to ensure, to the maximum extent
practicable, that each major oil company that sells or
introduces gasoline into commerce in the United States
through wholly-owned stations or branded stations
installs or otherwise makes available 1 or more pumps
that dispense E-85 fuel (including any other equipment
necessary, such as including tanks, to ensure that the
pumps function properly) at not less than the
applicable percentage of the wholly-owned stations and
the branded stations of the major oil company specified
in subparagraph (C).
``(C) Applicable percentage.--For the purpose of
subparagraph (B), the applicable percentage of the
wholly-owned stations and the branded stations shall be
determined in accordance with the following table:
Applicable percentage of wholly-
owned stations and
``Calendar year: branded stations (percent):
2008................................................... 5
2009................................................... 10
2010................................................... 15
2011................................................... 20
2012................................................... 25
2013................................................... 30
2014................................................... 35
2015................................................... 40
2016................................................... 45
2017 and each calendar year thereafter................. 50.
``(D) Geographic distribution.--
``(i) In general.--Subject to clause (ii),
in promulgating regulations under subparagraph
(B), the Secretary shall ensure that each major
oil company described in subparagraph (B)
installs or otherwise makes available 1 or more
pumps that dispense E-85 fuel at not less than
a minimum percentage (specified in the
regulations) of the wholly-owned stations and
the branded stations of the major oil company
in each State.
``(ii) Requirement.--In specifying the
minimum percentage under clause (i), the
Secretary shall ensure that each major oil
company installs or otherwise makes available 1
or more pumps described in that clause in each
State in which the major oil company operates.
``(E) Financial responsibility.--In promulgating
regulations under subparagraph (B), the Secretary shall
ensure that each major oil company described in that
subparagraph assumes full financial responsibility for
the costs of installing or otherwise making available
the pumps described in that subparagraph and any other
equipment necessary (including tanks) to ensure that
the pumps function properly.
``(F) Production credits for exceeding e-85 fuel
pumps installation requirement.--
``(i) Earning and period for applying
credits.--If the percentage of the wholly-owned
stations and the branded stations of a major
oil company at which the major oil company
installs E-85 fuel pumps in a particular
calendar year exceeds the percentage required
under subparagraph (C), the major oil company
earns credits under this paragraph, which may
be applied to any of the 3 consecutive calendar
years immediately after the calendar year for
which the credits are earned.
``(ii) Trading credits.--Subject to clause
(iii), a major oil company that has earned
credits under clause (i) may sell credits to
another major oil company to enable the
purchaser to meet the requirement under
subparagraph (C).
``(iii) Exception.--A major oil company may
not use credits purchased under clause (ii) to
fulfill the geographic distribution requirement
in subparagraph (D).''.
TITLE II--TAX INCENTIVES FOR ADVANCED TECHNOLOGY VEHICLES
Subtitle A--Providing Consumers With Additional Advanced Technology
Vehicle Purchase Incentives
SEC. 201. EXPANSION AND EXTENSION OF ALTERNATIVE MOTOR VEHICLE CREDIT.
(a) Increases in Credit.--
(1) New qualified fuel cell motor vehicle.--Subsection (b)
of section 30B of the Internal Revenue Code of 1986 (relating
to new qualified fuel cell motor vehicle credit) is amended--
(A) in paragraph (1)--
(i) by striking ``$8,000 ($4,000'' in
subparagraph (A) and inserting ``$16,000
($8,000'';
(ii) by striking ``$10,000'' in
subparagraph (B) and inserting ``$20,000'';
(iii) by striking ``$20,000'' in
subparagraph (C) and inserting ``$40,000''; and
(iv) by striking ``$40,000'' in
subparagraph (D) and inserting ``$80,000''; and
(B) in paragraph (2)(A)--
(i) by striking ``$1,000'' in clause (i)
and inserting ``$2,000'';
(ii) by striking ``$1,500'' in clause (ii)
and inserting ``$3,000'';
(iii) by striking ``$2,000'' in clause
(iii) and inserting ``$4,000'';
(iv) by striking ``$2,500'' in clause (iv)
and inserting ``$5,000'';
(v) by striking ``$3,000'' in clause (v)
and inserting ``$6,000'';
(vi) by striking ``$3,500'' in clause (vi)
and inserting ``$7,000''; and
(vii) by striking ``$4,000'' in clause
(vii) and inserting ``$8,000''.
(2) New advanced lean burn technology motor vehicle.--
(A) Fuel economy.--The table in clause (i) of
section 30B(c)(2)(A) of such Code (relating to fuel
economy) is amended--
(i) by striking ``$400'' and inserting
``$800'';
(ii) by striking ``$800'' and inserting
``$1,600'';
(iii) by striking ``$1,200'' and inserting
``$2,400'';
(iv) by striking ``$1,600'' and inserting
``$3,200'';
(v) by striking ``$2,000'' and inserting
``$4,000''; and
(vi) by striking ``$2,400'' and inserting
``$4,800''.
(B) Conservation.--The table in subparagraph (B) of
section 30B(c)(2) of such Code (relating to
conservation credit) is amended--
(i) by striking ``$250'' and inserting
``$500'';
(ii) by striking ``$500'' and inserting
``$1,000'';
(iii) by striking ``$750'' and inserting
``$1,500''; and
(iv) by striking ``$1,000'' and inserting
``$2,000''.
(b) Expansion of Number of New Qualified Hybrid and Advanced Lean
Burn Technology Vehicles Eligible for Credit.--Paragraph (2) of section
30B(f) of the Internal Revenue Code of 1986 (relating to phaseout) is
amended--
(1) by striking ``the period'' and inserting ``any
period'',
(2) by striking ``United States after December 31, 2005, is
at least 60,000'' and inserting ``United States is--
``(A) after December 31, 2005, at least 60,000, and
``(B) after December 31, 2008, and before January
1, 2013, 60,000.'', and
(3) by adding at the end the following new sentence: ``For
purposes of the preceding sentence, the Secretary may extend
the time period through 2014 if the Secretary determines that
market conditions merit such action.''.
(c) Extension.--Section 30B(j) of the Internal Revenue Code of 1986
(relating to termination) is amended--
(1) by striking ``December 31, 2010'' both places it
appears and inserting ``December 31, 2014'', and
(2) by striking ``December 31, 2009'' in paragraph (3) and
inserting ``December 31, 2014''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 202. PLUG-IN HYBRID MOTOR VEHICLE TAX CREDIT.
(a) In General.--Section 30B of the Internal Revenue Code of 1986
is amended by redesignating subsections (i) and (j) as subsections (j)
and (k), respectively, and by inserting after subsection (h) the
following new subsection:
``(i) New Plug-In Hybrid Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
plug-in hybrid motor vehicle credit determined under this
subsection with respect to a new qualified plug-in hybrid motor
vehicle or new qualified flexible-fuel plug-in hybrid motor
vehicle placed in service by the taxpayer during the taxable
year is--
``(A) $3,000, if such vehicle is a new qualified
plug-in hybrid motor vehicle with a gross vehicle
weight rating of not more than 8,500 pounds, and
``(B) $3,150, if such vehicle is a new qualified
flexible-fuel plug-in hybrid motor vehicle with a gross
vehicle weight rating of not more than 8,500 pounds.
``(2) Increase for fuel efficiency.--
``(A) In general.--The amount determined under
paragraph (1)(A) with respect to a new qualified plug-
in hybrid motor vehicle or new qualified flexible-fuel
plug-in hybrid motor vehicle which is a passenger
automobile or light truck shall be increased by--
``(i) $1,000 if such vehicle achieves at
least 250 percent but less than 250 percent of
the 2002 model year city fuel economy,
``(ii) $1,500 if such vehicle achieves at
least 250 percent but less than 275 percent of
the 2002 model year city fuel economy,
``(iii) $2,000 if such vehicle achieves at
least 275 percent but less than 300 percent of
the 2002 model year city fuel economy,
``(iv) $2,500 if such vehicle achieves at
least 300 percent but less than 325 percent of
the 2002 model year city fuel economy, and
``(v) $3,000 if such vehicle achieves at
least 325 percent of the 2002 model year city
fuel economy,
``(B) 2002 model year city fuel economy.--For
purposes of subparagraph (A), the 2002 model year city
fuel economy with respect to a vehicle shall be
determined using the tables provided in subsection
(b)(2)(B).
``(3) New qualified plug-in hybrid motor vehicle.--For
purposes of this subsection, the term `new qualified plug-in
hybrid motor vehicle' means a motor vehicle--
``(A) which is propelled by an internal combustion
engine or heat engine using --
``(i) any combustible fuel,
``(ii) an on-board, rechargeable storage
device, and
``(iii) a means of using an off-board
source of electricity,
``(B) which, in the case of a passenger automobile
or light truck, has received on or after the date of
the enactment of this section a certificate that such
vehicle meets or exceeds the Bin 5 Tier II emission
level established in regulations prescribed by the
Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make
and model year vehicle,
``(C) the original use of which commences with the
taxpayer,
``(D) which is acquired for use or lease by the
taxpayer and not for resale, and
``(E) which is made by a manufacturer.
``(4) New qualified flexible-fuel plug-in hybrid motor
vehicle.--For purposes of this subsection, the term `new
qualified flexible-fuel plug-in hybrid motor vehicle' means a
motor vehicle--
``(A) which is propelled by an internal combustion
engine or heat engine using--
``(i) an on-board, rechargeable storage
device, and
``(ii) a means of using an off-board source
of electricity,
``(B) which is warrantied by its manufacturer to
operate on any combination of gasoline and a fuel blend
containing up to 85 percent ethanol and 15 percent
gasoline by volume (E85),
``(C) which, in the case of a passenger automobile
or light truck, has received on or after the date of
the enactment of this section a certificate that such
vehicle meets or exceeds the Bin 5 Tier II emission
level established in regulations prescribed by the
Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make
and model year vehicle,
``(D) the original use of which commences with the
taxpayer,
``(E) which is acquired for use or lease by the
taxpayer and not for resale, and
``(F) which is made by a manufacturer.''.
(b) Conforming Amendments.--
(1) Section 30B(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (3), by
striking the period at the end of paragraph (4) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(5) the new plug-in hybrid motor vehicle credit
determined under subsection (i).''.
(2) Section 30B(k)(2) of such Code, as redesignated by
subsection (a), is amended by striking ``or'' and inserting a
comma and by inserting ``, a new qualified plug-in hybrid motor
vehicle (as described in subsection (i)(3)), or a new qualified
flexible-fuel plug-in hybrid motor vehicle (as described in
subsection (i)(4))'' after ``subsection (d)(2)(A))''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
Subtitle B--Advanced Technology Motor Vehicles Manufacturing Credit
SEC. 211. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:
``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.
``(a) Credit Allowed.--There shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an amount equal to
35 percent of the qualified investment of an eligible taxpayer for such
taxable year.
``(b) Qualified Investment.--For purposes of this section--
``(1) In general.--The term `qualified investment' means,
with respect to any taxable year, the sum of--
``(A) the costs paid or incurred by the eligible
taxpayer during such taxable year--
``(i) to re-equip, expand, or establish any
manufacturing facility of the eligible taxpayer
to produce advanced technology motor vehicles
or to produce eligible components, and
``(ii) for qualified research (as defined
in section 41(d)) related to advanced
technology motor vehicles and eligible
components, and
``(B) qualified engineering integration costs.
``(2) Attribution rules.--For purposes of paragraph
(1)(A)(i), in the case of a manufacturing facility of the
eligible taxpayer which produces both advanced technology motor
vehicles and other motor vehicles, or eligible components and
other components, only the amount paid or incurred for the
production of advanced technology motor vehicles and eligible
components shall be taken into account.
``(c) Eligible Taxpayer.--For purposes of this section, the term
`eligible taxpayer' means any taxpayer if more than 50 percent of its
gross receipts for the taxable year is derived from the manufacture of
motor vehicles or any component parts of such vehicles.
``(d) Definitions.--For purposes of this section--
``(1) Advanced technology motor vehicle.--The term
`advanced technology motor vehicle' means--
``(A) any new qualified fuel cell motor vehicle (as
defined in section 30B(b)(3)),
``(B) any new advanced lean burn technology motor
vehicle (as defined in section 30B(c)(3)),
``(C) any new qualified hybrid motor vehicle (as
defined in section 30B(d)(3)(A) and determined without
regard to any gross vehicle weight rating),
``(D) any new qualified alternative motor fuel
vehicle (as defined in section 30B(e)(4)), and
``(E) any new qualified plug-in hybrid motor
vehicle (as defined in section 30B(i)(3)) or any new
qualified flexible-fuel plug-in hybrid motor vehicle
(as defined in section 30B(i)(4)).
``(2) Eligible components.--The term `eligible component'
means any component inherent to any advanced technology motor
vehicle but not inherent to a motor vehicle which is not an
advanced technology motor vehicle, including--
``(A) with respect to any gasoline or diesel-
electric new qualified hybrid motor vehicle, any--
``(i) electric motor or generator,
``(ii) power split device,
``(iii) power control unit,
``(iv) power controls,
``(v) integrated starter generator, or
``(vi) battery,
``(B) with respect to any hydraulic new qualified
hybrid motor vehicle, any--
``(i) hydraulic accumulator vessel,
``(ii) hydraulic pump, or
``(iii) hydraulic pump-motor assembly,
``(C) with respect to any new advanced lean burn
technology motor vehicle, any--
``(i) diesel engine,
``(ii) turbocharger,
``(iii) fuel injection system, or
``(iv) after-treatment system, such as a
particle filter or NO<INF>X</INF> absorber, and
``(D) with respect to any advanced technology motor
vehicle, any other component submitted for approval by
the Secretary.
``(3) Qualified engineering integration costs.--For
purposes of subsection (b)(1)(B), the term `qualified
engineering integration costs' means, with respect to any
advanced technology motor vehicle, costs incurred prior to the
market introduction of such motor vehicle for engineering tasks
related to--
``(A) establishing functional, structural, and
performance requirements for components and subsystems
to meet overall vehicle objectives for a specific
application,
``(B) designing interfaces for components and
subsystems with mating systems within a specific
vehicle application,
``(C) designing cost effective, efficient, and
reliable manufacturing processes to produce components
and subsystems for a specific vehicle application, and
``(D) validating functionality and performance of
components and subsystems for a specific vehicle
application.
``(4) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(e) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the sum of--
``(A) the taxpayer's regular tax liability (as
defined in section 26(b)) for the taxable year, plus
``(B) the tax imposed under section 55 for the
taxable year.
``(2) Carryover of unused credit amounts.--
``(A) In general.--If the credit allowable under
subsection (a) for a taxable year exceeds the
limitation under paragraph (1) for such taxable year,
such excess shall be allowed--
``(i) as a credit carryback to each of the
13 taxable years preceding such year, and
``(ii) as a credit carryforward to each of
the 20 taxable years following such year.
``(B) Amount carried to each year.--For purposes of
this paragraph, rules similar to the rules of section
39(a)(2) shall apply.
``(f) Special Rules.--
``(1) Reduction in basis.--For purposes of this subtitle,
if a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of such
property which would (but for this paragraph) result from such
expenditure shall be reduced by the amount of the credit so
allowed.
``(2) Investments and property outside the united states.--
No credit shall be allowed under subsection (a) with respect
to--
``(A) any manufacturing facility which is located
outside the United States, and
``(B) any engineering integration or research and
development conducted outside the United States.
``(3) Aggregation of expenditures; allocations.--For
purposes of this section, rules similar to the rules of
paragraphs (1) and (2) of section 41(f) shall apply.
``(4) Recapture.--The Secretary shall, by regulation,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any manufacturing facility
which ceases to produce advanced technology motor vehicles or
eligible components.
``(5) Public statement.--
``(A) In general.--No credit shall be allowed under
subsection (a) for any taxable year unless the eligible
taxpayer makes publicly available a statement
describing the activities of the eligible taxpayer for
which the credit is allowed and the public benefits of
such activities, including the estimated amount of any
reduction in national oil consumption in future years
as a result of such activities.
``(B) Time for publication.--The statement required
under subparagraph (A) shall be made available not
later than 90 days after the end of the taxable year
for which the credit under subsection (a) is allowed
and shall be in such form as the Secretary shall
prescribe.
``(6) No double benefit.--
``(A) Coordination with other deductions and
credits.--Except as provided in subparagraph (B), the
amount of any deduction or other credit allowable under
this chapter for any cost taken into account in
determining the amount of the credit under subsection
(a) shall be reduced by the amount of such credit
attributable to such cost.
``(B) Research and development costs.--
``(i) In general.--Except as provided in
clause (ii), any amount described in subsection
(b)(1)(A)(ii) taken into account in determining
the amount of the credit under subsection (a)
for any taxable year shall not be taken into
account for purposes of determining the credit
under section 41 for such taxable year.
``(ii) Costs taken into account in
determining base period research expenses.--Any
amounts described in subsection (b)(1)(A)(ii)
taken into account in determining the amount of
the credit under subsection (a) for any taxable
year which are qualified research expenses
(within the meaning of section 41(b)) shall be
taken into account in determining base period
research expenses for purposes of applying
section 41 to subsequent taxable years.
``(g) Election Not To Take Credit.--No credit shall be allowed
under subsection (a) for any property if the taxpayer elects not to
have this section apply to such property.
``(h) Regulations.--The Secretary shall prescribe such regulations
as necessary to carry out the provisions of this section.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(38) to the extent provided in section 30D(f)(1).''.
(2) Section 6501(m) of such Code is amended by inserting
``30D(g),'' after ``30C(e)(5),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30C the following new item:
``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts incurred in taxable years beginning after December 31,
1993.
TITLE III--INTERNATIONAL AND CORPORATE OBLIGATIONS
SEC. 301. 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.
SEC. 302. 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 with
a market capitalization of more than $1,000,000,000, regardless of
whether the issuer is publicly- or privately-held, 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).
TITLE IV--NATIONAL CLIMATE CHANGE VULNERABILITY AND RESILIENCE PROGRAM
SEC. 401. DEFINITIONS.
In this title:
(1) Office.--The term ``Office'' means the Office of
Climate Change Vulnerability and Resilience Research
established under section 402(c).
(2) Program.--The term ``Program'' means the National
Climate Change Vulnerability and Resilience Program established
under section 402(a).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
SEC. 402. NATIONAL CLIMATE CHANGE VULNERABILITY AND RESILIENCE PROGRAM.
(a) Establishment.--The Secretary shall establish a National
Climate Change Vulnerability and Resilience Program to evaluate and
make recommendations about local, regional, and national vulnerability
and resilience to impacts relating to longer-term climatic changes and
shorter-term climatic variations, including changes and variations
resulting from human activities.
(b) Consultation.--In designing the Program, the Secretary shall
consult with Federal agencies participating in the United States Global
Change Research Program established under section 103 of the Global
Change Research Act of 1990 (15 U.S.C. 2933) and any other appropriate
Federal, State, or local agency.
(c) Office of Climate Change Vulnerability and Resilience
Research.--The Secretary shall establish an Office of Climate Change
Vulnerability and Resilience Research within the Department of
Commerce, which shall--
(1) be responsible for managing the Program; and
(2) in accordance with the design of the Program,
coordinate climatic change and climatic variation vulnerability
and resilience research in the United States.
(d) Vulnerability Assessments.--The Program shall include--
(1) evaluations, based on historical data, current
observational data, and, where appropriate, available
predictions, of local, State, regional, and national
vulnerability to phenomena associated with climatic change and
climatic variation, including--
(A) severe weather events, such as severe
thunderstorms, tornadoes, and hurricanes;
(B) annual and interannual climate events, such as
the El Nino Southern Oscillation and the North Atlantic
Oscillation;
(C) changes in sea level and shifts in the
hydrological cycle;
(D) natural hazards, including tsunamis, droughts,
floods, and wildfires; and
(E) alterations of ecological communities as a
result of climatic change and climatic variation; and
(2) the production of a vulnerability scorecard, in
cooperation with State and local institutions including
university researchers and programs, that assesses the
vulnerability and capacity of each State to respond to climatic
change and climatic variation hazards.
(e) Preparedness Recommendations.--Not later than 2 years after the
date of enactment of this Act, the Office shall submit to Congress a
report that--
(1) includes the vulnerability scorecards produced under
subsection (d)(2); and
(2) identifies, and recommends implementation and funding
strategies for, short-term and long-term actions that may be
taken at the local, State, regional, or national level--
(A) to minimize climatic change and climatic
variation threats to human life and property;
(B) to minimize negative economic impacts of
climatic change and climatic variation; and
(C) to improve resilience to climatic change and
climatic variation hazards.
(f) Vulnerability Research.--In addition to other responsibilities
under this section, the Office shall--
(1) apply the results of available vulnerability research
to develop and improve criteria that measure resilience to
climatic change and climatic variation hazards at the local,
State, regional, and national levels;
(2) coordinate the implementation of short-term and long-
term research programs based on the recommendations made under
subsection (e)(2);
(3) measure progress in increasing the capacity of each
State to respond to climatic change and climatic variation
hazards, using the vulnerability scorecards produced under
subsection (d)(2) as a benchmark; and
(4) not less than annually, review and, if appropriate due
to the availability of additional information, update the
vulnerability scorecards and the recommendations made under
subsection (e)(2).
(g) Information and Technology Dissemination.--The Secretary
shall--
(1) make widely available appropriate information,
technologies, and products to assist local, State, regional,
and national efforts to reduce loss of life and property due to
climatic change and climatic variation; and
(2) coordinate the dissemination of the information,
technologies, and products through all appropriate channels.
(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $10,000,000.
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