HR2454 and S1733 - International Adaptation

Produced: 10/15/2009 3:52:29 PM by Nick Santos, 1Sky Policy Staff

H.R. 2454		S. 1733
	<>	Subtitle B--International Climate Change Programs
		SEC. 321. STRATEGIC INTERAGENCY BOARD ON INTERNATIONAL CLIMATE INVESTMENT.
		(a) Establishment-
		(1) IN GENERAL- Not later than 90 days after the date of the enactment of this Act, the President shall establish the Strategic Interagency Board on International Climate Investment' (referred to in this subtitle as the Board').
		(2) COMPOSITION- The Board shall be composed of--
		(A) the Secretary of State;
		(B) the Administrator of United States Agency for International Development;
		(C) the Secretary of Energy;
		(D) the Secretary of the Treasury;
		(E) the Secretary of Commerce;
		(F) the Secretary of Agriculture;
		(G) the Administrator; and
		(H) such other relevant officials as the President may designate.
		(b) Duties- The duties of the Board shall include assessing, monitoring, and evaluating the progress and contributions of relevant departments and agencies of the Federal Government in supporting financing for international climate change activities.
		SEC. 322. EMISSION REDUCTIONS FROM REDUCED DEFORESTATION.
		Title VII of the Clean Air Act (as amended by section 101 of division B) is amended by adding at the end the following:
PART E--SUPPLEMENTAL EMISSIONS REDUCTIONS FROM REDUCED DEFORESTATION		PART E--SUPPLEMENTAL EMISSION REDUCTIONS
SEC. 751. DEFINITIONS.	=	SEC. 751. DEFINITIONS.
In this part:		In this part:
	<>	(1) ADMINISTRATOR- The term Administrator' means the Administrator of the United States Agency for International Development.
		(2) DEFORESTATION- The term deforestation' means a change in land use from a forest to any other land use.
		(3) DEGRADATION- The term degradation', with respect to a forest, is any reduction in the carbon stock of a forest due to the impact of human land-use activities.
		(4) EMISSION REDUCTIONS- The term emission reductions' means greenhouse gas emission reductions achieved from reduced or avoided deforestation under this title.
(1) LEAKAGE PREVENTION ACTIVITIES- The term leakage prevention activities' means activities in developing countries that are directed at preserving existing forest carbon stocks, including forested wetlands and peatlands, that might, absent such activities, be lost through leakage.		(5) LEAKAGE PREVENTION ACTIVITIES- The term leakage prevention activities' means activities in developing countries that are directed at preserving existing forest carbon stocks, including forested wetlands and peatlands, that might, absent such activities, be lost through leakage.
(2) NATIONAL DEFORESTATION REDUCTION ACTIVITIES- The term national deforestation reduction activities' means activities in developing countries that reduce a quantity of greenhouse gas emissions from deforestation that is calculated by measuring actual emissions against a national deforestation baseline established pursuant to section 754(d)(1) and (2).
(3) SUBNATIONAL DEFORESTATION REDUCTION ACTIVITIES- The term subnational deforestation reduction activities' means activities in developing countries that reduce a quantity of greenhouse gas emissions from deforestation that are calculated by measuring actual emissions using an appropriate baseline established by the Administrator that is less than national in scope.
(4) SUPPLEMENTAL EMISSIONS REDUCTIONS- The term supplemental emissions reductions' means greenhouse gas emissions reductions achieved from reduced or avoided deforestation under this part.
(5) USAID- The term USAID' means the United States Agency for International Development.
SEC. 752. FINDINGS.		SEC. 752. PURPOSES.
Congress finds that--
(1) as part of a global effort to mitigate climate change, it is in the national interest of the United States to assist developing countries to reduce and ultimately halt emissions from deforestation;
(2) deforestation is one of the largest sources of greenhouse gas emissions in developing countries, amounting to roughly 20 percent of overall emissions globally;
(3) recent scientific analysis shows that it will be substantially more difficult to limit the increase in global temperatures to less than 2 degrees centigrade above preindustrial levels without reducing and ultimately halting net emissions from deforestation;
(4) reducing emissions from deforestation is highly cost-effective, compared to many other sources of emissions reductions;
(5) in addition to contributing significantly to worldwide efforts to address global warming, assistance under this part will generate significant environmental and social cobenefits, including protection of biodiversity, ecosystem services, and forest-related livelihoods; and
(6) under the Bali Action Plan, developed country parties to the United Nations Framework Convention on Climate Change, including the United States, committed to enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation,' including, inter alia, consideration of improved access to adequate, predictable, and sustainable financial resources and financial and technical support, and the provision of new and additional resources, including official and concessional funding for developing country parties' .
		The purposes of this part are to provide United States assistance to developing countries--
		(1) to develop, implement and improve nationally appropriate greenhouse gas mitigation policies and actions that reduce deforestation and forest degradation or conserve or restore forest ecosystems, in a measurable, reportable, and verifiable manner; and
		(2) in a manner that is consistent with and enhances the implementation of complementary United States policies that support the good governance of forests, biodiversity conservation, and environmentally sustainable development, while taking local communities, most vulnerable populations and communities, particularly forest-dependent communities and indigenous peoples into consideration.
SEC. 753. SUPPLEMENTAL EMISSIONS REDUCTIONS THROUGH REDUCED DEFORESTATION.		SEC. 753. EMISSION REDUCTIONS FROM REDUCED DEFORESTATION.
(a) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator, in consultation with the Administrator of USAID and any other appropriate agencies, shall promulgate regulations establishing a program to use emission allowances set aside for this purpose under section 781 to reduce greenhouse gas emissions from deforestation in developing countries in accordance with the requirements of this part.		(a) In General- Not later than 2 years after the date of the enactment of this part, the Administrator, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Agriculture, and the head of any other appropriate agency, shall establish a program to provide assistance to reduce greenhouse gas emissions from deforestation in developing countries, in accordance with this title.
(b) Objectives- The objectives of the program established under this section shall be to--		(b) Objectives- The objectives of the program established under this section shall be--
(1) achieve supplemental emissions reductions of at least 720,000,000 tons of carbon dioxide equivalent in 2020, a cumulative amount of at least 6,000,000,000 tons of carbon dioxide equivalent by December 31, 2025, and additional supplemental emissions reductions in subsequent years;		(1) to reduce greenhouse gas emissions from deforestation in developing countries by at least 720,000,000 tons of carbon dioxide equivalent in 2020, and a cumulative quantity of at least 6,000,000,000 tons of carbon dioxide equivalent by December 31, 2025, with additional reductions in subsequent years;
(2) build capacity to reduce deforestation in developing countries experiencing deforestation, including preparing developing countries to participate in international markets for international offset credits for reduced emissions from deforestation; and		(2) to assist developing countries in preparing to participate in international markets for international offset credits for reduced emissions from deforestation; and
(3) preserve existing forest carbon stocks in countries where such forest carbon may be vulnerable to international leakage, particularly in developing countries with largely intact native forests.		(3) to preserve existing forest carbon stocks in countries where such forest carbon may be vulnerable to international leakage.'.
		SEC. 323. INTERNATIONAL CLEAN ENERGY DEPLOYMENT PROGRAM.
		(a) Purposes- The purposes of this section are--
		(1) to assist developing countries in activities that reduce, sequester, or avoid greenhouse gas emissions;
		(2) to encourage those countries to shift toward low-carbon development, and promote a successful global agreement under the United Nations Framework Convention on Climate Change, done at New York on May 9, 1992 (or a successor agreement) (referred to in this subtitle as the Convention'); and
		(3) to promote robust compliance with and enforcement of existing international legal requirements for the protection of intellectual property rights.
		(b) Establishment of International Clean Energy Deployment Program-
		(1) ESTABLISHMENT- The Secretary of State, in consultation with an interagency group designated by the President, shall establish an International Clean Energy Deployment Program in accordance with this section.
		(2) DISTRIBUTION OF ASSISTANCE- The Secretary of State, or the head of such other Federal agency as the President may designate, shall direct the distribution of funding to carry out the Clean Energy Technology Program--
		(A) in the form of bilateral assistance;
		(B) to multilateral funds or international institutions pursuant to the Convention or an agreement negotiated under the Convention; or
		(C) through a combination of the mechanisms identified under subparagraphs (A) and (B).
		(c) Determination of Qualifying Activities- Assistance under this subtitle may be provided only to qualifying entities for clean technology activities (including building relevant technical and institutional capacity) that contribute to substantial, measurable, reportable, and verifiable reductions, sequestration, or avoidance of greenhouse gas emissions.
		SEC. 324. INTERNATIONAL CLIMATE CHANGE ADAPTATION AND GLOBAL SECURITY PROGRAM.
		(a) Purposes- The purposes of this section are--
		(1) to provide assistance to the most vulnerable developing countries, particularly to the most vulnerable communities and populations in those countries; and
		(2) to support the development and implementation of climate change adaptation programs in a way that protects and promotes interests of the United States, to the extent those interests may be advanced by minimizing, averting, or increasing resilience to climate change impacts.
		(b) International Climate Change Adaptation and Global Security Program-
		(1) ESTABLISHMENT- The Secretary of State, in consultation with the Administrator of the United States Agency for International Development, the Secretary of the Treasury, and the Administrator, shall establish an International Climate Change Adaptation and Global Security Program in accordance with this section.
		(2) DISTRIBUTION OF ASSISTANCE- The Secretary of State, or the head of such other Federal agency as the President may designate, after consultation with the Secretary of the Treasury, the Administrator of the United States Agency for International Development, and the Administrator, shall direct the distribution of funding to carry out the International Climate Change Adaptation and Global Security Program--
		(A) in the form of bilateral assistance;
		(B) to multilateral funds or international institutions pursuant to the Convention or an agreement negotiated under the Convention; or
		(C) through a combination of the mechanisms identified under subparagraphs (A) and (B).
SEC. 754. REQUIREMENTS FOR INTERNATIONAL DEFORESTATION REDUCTION PROGRAM.
(a) Eligible Countries- The Administrator may support activities under this part only with respect to a developing country that--
(1) the Administrator, in consultation with the Administrator of USAID, determines is experiencing deforestation or forest degradation or has standing forest carbon stocks that may be at risk of deforestation or degradation; and
(2) has entered into a bilateral or multilateral agreement or arrangement with the United States establishing the conditions of its participation in the program established under this part, which shall include an agreement to meet the standards established under subsection (d) for the activities to which those standards apply.
(b) Activities-
(1) AUTHORIZED ACTIVITIES- Subject to the requirements of this part, the Administrator, in consultation with the Administrator of USAID, may support activities to achieve the objectives identified in section 753(b), including--
(A) national deforestation reduction activities;
(B) subnational deforestation reduction activities, including pilot activities that reduce greenhouse gas emissions but are subject to significant uncertainty;
(C) activities to measure, monitor, and verify deforestation, avoided deforestation, and deforestation rates;
(D) leakage prevention activities;
(E) development of measurement, monitoring, and verification capacities to enable a country to quantify supplemental emissions reductions and to generate for sale offset credits from reduced or avoided deforestation;
(F) development of governance structures to reduce deforestation and illegal logging;
(G) enforcement of requirements for reduced deforestation or forest conservation;
(H) efforts to combat illegal logging and increase enforcement cooperation;
(I) providing incentives for policy reforms to achieve the objectives identified in section 753(b); and
(J) monitoring and evaluation of the results of the activities conducted under this section.
(2) ACTIVITIES SELECTED BY USAID-
(A) The Administrator of USAID, in consultation with the Administrator, may select for support and implementation pursuant to subsection (c) any of the activities described in paragraph (1), consistent with this part and the regulations promulgated under subsection (d), and subject to the requirement to achieve the objectives listed in section 753(b)(1).
(B) With respect to the activities listed in subparagraphs (D) through (J) of paragraph (1), the Administrator of USAID, in consultation with the Administrator, shall have primary but not exclusive responsibility for selecting the activities to be supported and implemented.
(3) INTERAGENCY COORDINATION- The Administrator and the Administrator of USAID shall jointly develop and biennially update a strategic plan for meeting the objectives listed in section 753(b) and shall execute a memorandum of understanding delineating the agencies' respective roles in implementing this part.
(c) Mechanisms-
(1) IN GENERAL- The Administrator may support activities to achieve the objectives identified in section 753(b) by--
(A) developing and implementing programs and projects that achieve such objectives; and
(B) distributing emission allowances to a country that is eligible under subsection (a), to a private or public group (including international organizations), or to an international fund established by an international agreement to which the United States is a party, to carry out activities to achieve such objectives.
(2) USAID ACTIVITIES- With respect to activities selected and implemented by the Administrator of USAID pursuant to subsection (b)(2), the Administrator shall distribute emission allowances as provided in paragraph (1) of this subsection based upon the direction of the Administrator of USAID, subject to the availability of allowances for such activities.
(3) IMPLEMENTATION THROUGH INTERNATIONAL ORGANIZATIONS- If support is distributed through an international organization, the agency responsible for selecting activities in accordance with subsection (b)(1) or (2), in consultation with the Secretary of State, shall ensure the establishment and implementation of adequate mechanisms to apply and enforce the eligibility requirements and other requirements of this section.
(4) ROLE OF THE SECRETARY OF STATE- The Administrator may not distribute emission allowances under this part to the government of another country or to an international organization or international fund unless the Secretary of State has concurred with such distribution.
(d) Standards- The Administrator, in consultation with the Administrator of USAID, shall promulgate regulations establishing standards to ensure that supplemental emissions reductions achieved through supported activities are additional, measurable, verifiable, permanent, and monitored, and account for leakage and uncertainty. In addition, such standards shall--
(1) require the establishment of a national deforestation baseline for each country with national deforestation reduction activities that is used to account for reductions achieved from such activities;
(2) provide that a national deforestation baseline established under paragraph (1) shall--
(A) be national in scope;
(B) be consistent with nationally appropriate mitigation commitments or actions with respect to deforestation, taking into consideration the average annual historical deforestation rates of the country during a period of at least 5 years, the applicable drivers of deforestation, and other factors to ensure additionality;
(C) establish a trajectory that would result in zero net deforestation by not later than 20 years from the date the baseline is established;
(D) be adjusted over time to take account of changing national circumstances;
(E) be designed to account for all significant sources of greenhouse gas emissions from deforestation in the country; and
(F) be consistent with the national deforestation baseline, if any, established for such country under section 743(e)(4);
(3) with respect to support provided pursuant to subsection (b)(1)(A) or (B), require supplemental emissions reductions to be achieved and verified prior to compensation through the distribution of emission allowances under this part;
(4) with respect to accounting for subnational deforestation reduction activities that lack the standardized or precise measurement and monitoring techniques needed for a full accounting of changes in emissions or baselines, or are subject to other sources of uncertainty, apply a conservative discount factor to reflect the uncertainty regarding the levels of reductions achieved;
(5) ensure that activities under this part shall be designed, carried out, and managed--
(A) in accordance with widely accepted, environmentally sustainable forest management practices;
(B) to promote or restore native forest species and ecosystems where practicable, and to avoid the introduction of invasive nonnative species;
(C) in a manner that gives due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;
(D) with consultations with, and full participation of, local communities, indigenous peoples, and forest-dependent communities in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, and monitoring and evaluation of activities; and
(E) with equitable sharing of profits and benefits derived from the activities with local communities, indigenous peoples, and forest-dependent communities; and
(6) with respect to support for all activities under this part, seek to ensure the establishment and enforcement, by the country in which the activities occur, of legal regimes, standards, processes, and safeguards that--
(A) give due regard to the rights and interests of local communities, indigenous peoples, forest-dependent communities, and vulnerable social groups;
(B) promote consultations with local communities and indigenous peoples and forest-dependent communities in affected areas, as partners and primary stakeholders, prior to and during the design, planning, implementation, monitoring, and evaluation of activities under this part; and
(C) encourage equitable sharing of profits and benefits from incentives for emissions reductions or leakage prevention with local communities, indigenous peoples, and forest-dependent communities.
(e) Scope- (1) The Administrator shall include within the scope of activities under this part reduced emissions from forest degradation.
(2) The Administrator, in consultation with the Administrator of USAID, may decide, taking into account any advice from the Advisory Board, to expand, where appropriate, the scope of activities under this part to include reduced soil carbon-derived emissions associated with deforestation and degradation of forested wetlands and peatlands.
(f) Accounting- The Administrator shall establish a publicly accessible registry of the supplemental emissions reductions achieved through support provided under this part each year, after appropriately discounting for uncertainty and other relevant factors as required by the standards established under subsection (d).
(g) Transition to National Reductions- Beginning 5 years after the date that a country entered into the agreement or arrangement required under subsection (a)(2), the Administrator shall provide no further compensation through emission allowances to that country under this part for any subnational deforestation reduction activities, except that the Administrator may extend this period by an additional 5 years if the Administrator, in consultation with the Administrator of USAID, determines that--
(1) the country is making substantial progress towards adopting and implementing a program to achieve reductions in deforestation measured against a national baseline;
(2) the greenhouse gas emissions reductions achieved are not resulting in significant leakage; and
(3) the greenhouse gas emissions reductions achieved are being appropriately discounted to account for any leakage that is occurring.
The limitation under this subsection shall not apply to support for activities to further the objectives listed in section 753(b)(2) or (3).
(h) Coordination With U.S. Foreign Assistance- Subject to the direction of the President, the Administrator and the Administrator of USAID shall, to the extent practicable and consistent with the objectives of this program, seek to align activities under this section with broader development, poverty alleviation, or natural resource management objectives and initiatives in the recipient country.
(i) Support as Supplement- The provision of support for activities under this part shall be used to supplement, and not to supplant, any other Federal, State, or local support available to carry out such qualifying activities under this part.
(j) Not Eligible for Offset Credit- Activities that receive support under this part shall not be issued offset credits for the greenhouse gas emissions reductions or avoidance, or greenhouse gas sequestration, produced by such activities.
SEC. 755. REPORTS AND REVIEWS.		SEC. 325. EVALUATION AND REPORTS.
(a) Reports- Not later than January 1, 2014, and annually thereafter, the Administrator and the Administrator of USAID shall submit to the Committee on Energy and Commerce and the Committee on Foreign Affairs of the House of Representatives, and the Committee on Environment and Public Works and the Committee on Foreign Relations of the Senate, and make available to the public, a report on the support provided under this part during the prior fiscal year. The report shall include--
(1) a statement of the quantity of supplemental emissions reductions for which compensation in the form of emission allowances was provided under this part during the prior fiscal year, as registered by the Administrator under section 754(f); and		(a) Monitoring, Evaluation, and Enforcement- The Board shall establish and implement a system to monitor and evaluate the effectiveness and efficiency of assistance provided under this subtitle by including evaluation criteria, such as performance indicators.
(2) a description of the national and subnational deforestation reduction activities, capacity-building activities, and leakage prevention activities supported under this part, including a statement of the quantity of emission allowances distributed to each recipient for each activity during the prior fiscal year, and a description of what was accomplished through each of the activities.		(b) Reports and Review-
		(1) ANNUAL REPORT- Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Board shall submit to the appropriate committees of Congress a report that describes--
		(A) the steps Federal agencies have taken, and the progress made, toward accomplishing the objectives of this section; and
		(B) the ramifications of any potentially destabilizing impacts climate change may have on the interests of the United States.
(b) Reviews- Not later than 4 years after the date of enactment of this title and every 5 years thereafter, the Administrator and the Administrator of USAID, taking into consideration any evaluation by or recommendations from the Advisory Board established under section 731, shall conduct a review of the activities undertaken pursuant to this part and make any appropriate changes in the program established under this part, consistent with the requirements of this part, based on the findings of the review. The review shall include the effects of the activities on--		(2) REVIEWS- Not later than 3 years after the date of enactment of this Act, and triennially thereafter, the Board, in cooperation with the National Academy of Sciences and other appropriate research and development institutions, shall--
		(A) review the global needs and opportunities for climate change investment in developing countries; and
		(B) submit to Congress a report that describes the findings of the review.
(1) total documented carbon stocks of each country that directly or indirectly received support under this part compared with such country's national deforestation baseline established under section 754(d)(1) and (2);
(2) the number of countries with the capacity to generate for sale instruments in the nature of offset credits from forest-related activities, and the amount of such activities;
(3) forest governance in each country that directly or indirectly received support under this part;
(4) indigenous peoples and forest-dependent communities residing in areas affected by such activities;
(5) biodiversity and ecosystem services within forested areas associated with the activities;
(6) subnational and international leakage; and
(7) any program or mechanism established under the United Nations Framework Convention on Climate Change related to greenhouse gas emissions from deforestation.
SEC. 756. LEGAL EFFECT OF PART.
(1) IN GENERAL- Nothing in this part supersedes, limits, or otherwise affects any restriction imposed by Federal law (including regulations) on any interaction between an entity located in the United States and an entity located in a foreign country.
(2) ROLE OF THE SECRETARY OF STATE- Nothing in this part shall be construed as affecting the role of the Secretary of State or the responsibilities of the Secretary under section 622(c) of the Foreign Assistance Act of 1961.'.
SEC. 312. DEFINITIONS.
Title VII of the Clean Air Act, as added by section 311 of this Act, is amended by inserting before part A the following new section:
SEC. 700. DEFINITIONS.
In this title:
(1) ADDITIONAL- The term additional', when used with respect to reductions or avoidance of greenhouse gas emissions, or to sequestration of greenhouse gases, means reductions, avoidance, or sequestration that result in a lower level of net greenhouse gas emissions or atmospheric concentrations than would occur in the absence of an offset project.
(2) ADDITIONALITY- The term additionality' means the extent to which reductions or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, are additional.
(3) ADVISORY BOARD- The term Advisory Board' means the Offsets Integrity Advisory Board established under section 731.
(4) AFFILIATED- The term affiliated'--
(A) when used in relation to an entity means owned or controlled by, or under common ownership or control with, another entity, as determined by the Administrator; and
(B) when used in relation to a natural gas local distribution company, means owned or controlled by, or under common ownership or control with, another natural gas local distribution company, as determined by the Administrator.
(5) ALLOWANCE- The term allowance' means a limited authorization to emit, or have attributable greenhouse gas emissions in an amount of, 1 ton of carbon dioxide equivalent of a greenhouse gas in accordance with this title. Such term includes an emission allowance, a compensatory allowance, and an international emission allowance, but does not include an international reserve allowance established under section 766.
(6) ATTRIBUTABLE GREENHOUSE GAS EMISSIONS- The term attributable greenhouse gas emissions', for a given calendar year, means--
(A) for a covered entity that is a fuel producer or importer described in paragraph (13)(B), greenhouse gases that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by that covered entity during that calendar year for sale or distribution in interstate commerce, assuming no capture and sequestration of any greenhouse gas emissions;
(B) for a covered entity that is an industrial gas producer or importer described in paragraph (13)(C), the tons of carbon dioxide equivalent of any gas described in clauses (i) through (vi) of paragraph (13)(C)--
(i) produced or imported by such covered entity during that calendar year for sale or distribution in interstate commerce; or
(ii) released as fugitive emissions in the production of fluorinated gas; and
(C) for a natural gas local distribution company described in paragraph (13)(J), greenhouse gases that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, that such entity delivered during that calendar year to customers that are not covered entities, assuming no capture and sequestration of that greenhouse gas.
(7) BIOLOGICAL SEQUESTRATION; BIOLOGICALLY SEQUESTERED- The terms biological sequestration' and biologically sequestered' mean the removal of greenhouse gases from the atmosphere by terrestrial biological means, such as by growing plants, and the storage of those greenhouse gases in plants or soils.
(8) CAPPED EMISSIONS- The term capped emissions' means greenhouse gas emissions to which section 722 applies, including emissions from the combustion of natural gas, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid to which section 722(b)(2) or (8) applies.
(9) CAPPED SOURCE- The term capped source' means a source that directly emits capped emissions.
(10) CARBON DIOXIDE EQUIVALENT- The term carbon dioxide equivalent' means the unit of measure, expressed in metric tons, of greenhouse gases as provided under section 711 or 712.
(11) CARBON STOCK- The term carbon stock' means the quantity of carbon contained in a biological reservoir or system which has the capacity to accumulate or release carbon.
(12) COMPENSATORY ALLOWANCE- The term compensatory allowance' means an allowance issued under section 721(f).
(13) COVERED ENTITY- The term covered entity' means each of the following:
(A) Any electricity source.
(B) Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce in 2008 or any subsequent year, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, the combustion of which would emit 25,000 or more tons of carbon dioxide equivalent, as determined by the Administrator.
(C) Any stationary source that produces, and any entity that (or any group of two or more affiliated entities that, in the aggregate) imports, for sale or distribution in interstate commerce, in bulk, or in products designated by the Administrator, in 2008 or any subsequent year 25,000 or more tons of carbon dioxide equivalent of--
(i) fossil fuel-based carbon dioxide;
(ii) nitrous oxide;
(iii) perfluorocarbons;
(iv) sulfur hexafluoride;
(v) any other fluorinated gas, except for nitrogen trifluoride, that is a greenhouse gas, as designated by the Administrator under section 711; or
(vi) any combination of greenhouse gases described in clauses (i) through (v).
(D) Any stationary source that has emitted 25,000 or more tons of carbon dioxide equivalent of nitrogen trifluoride in 2008 or any subsequent year.
(E) Any geologic sequestration site.
(F) Any stationary source in the following industrial sectors:
(i) Adipic acid production.
(ii) Primary aluminum production.
(iii) Ammonia manufacturing.
(iv) Cement production, excluding grinding-only operations.
(v) Hydrochlorofluorocarbon production.
(vi) Lime manufacturing.
(vii) Nitric acid production.
(viii) Petroleum refining.
(ix) Phosphoric acid production.
(x) Silicon carbide production.
(xi) Soda ash production.
(xii) Titanium dioxide production.
(xiii) Coal-based liquid or gaseous fuel production.
(G) Any stationary source in the chemical or petrochemical sector that, in 2008 or any subsequent year--
(i) produces acrylonitrile, carbon black, ethylene, ethylene dichloride, ethylene oxide, or methanol; or
(ii) produces a chemical or petrochemical product if producing that product results in annual combustion plus process emissions of 25,000 or more tons of carbon dioxide equivalent.
(H) Any stationary source that--
(i) is in one of the following industrial sectors: ethanol production; ferroalloy production; fluorinated gas production; food processing; glass production; hydrogen production; iron and steel production; lead production; pulp and paper manufacturing; and zinc production; and
(ii) has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year.
(I) Any fossil fuel-fired combustion device (such as a boiler) or grouping of such devices that--
(i) is all or part of an industrial source not specified in subparagraph (D), (F), (G), or (H); and
(ii) has emitted 25,000 or more tons of carbon dioxide equivalent in 2008 or any subsequent year.
(J) Any natural gas local distribution company that (or any group of 2 or more affiliated natural gas local distribution companies that, in the aggregate), in 2008 or any subsequent year, delivers 460,000,000 cubic feet or more of natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, to customers that are not covered entities.
(14) CREDITING PERIOD- The term crediting period' means the period with respect to which an offset project is eligible to earn offset credits under part D, as determined under section 734(c).
(15) DESIGNATED REPRESENTATIVE- The term designated representative' means, with respect to a covered entity, a reporting entity (as defined in section 713), an offset project developer, or any other entity receiving or holding allowances, offset credits, or term offset credits under this title, an individual authorized, through a certificate of representation submitted to the Administrator by the owners and operators or similar entity official, to represent the owners and operators or similar entity official in all matters pertaining to this title (including the holding, transfer, or disposition of allowances or offset credits), and to make all submissions to the Administrator under this title.
(16) DEVELOPING COUNTRY- The term developing country' means a country eligible to receive official development assistance according to the income guidelines of the Development Assistance Committee of the Organization for Economic Cooperation and Development.
(17) DOMESTIC OFFSET CREDIT- For purposes of part D, the term domestic offset credit' means an offset credit issued under part D, other than an international offset credit. For purposes of part C, the term means any offset credit issued under the American Clean Energy and Security Act of 2009, or the amendments made thereby. The term does not include a term offset credit.
(18) ELECTRICITY SOURCE- The term electricity source' means a stationary source that includes one or more utility units.
(19) EMISSION- The term emission' means the release of a greenhouse gas into the ambient air. Such term does not include gases that are captured and geologically sequestered, except to the extent that they are later released into the atmosphere, in which case compliance must be demonstrated pursuant to section 722(b)(5).
(20) EMISSION ALLOWANCE- The term emission allowance' means an allowance established under section 721(a) or section 726(g)(2) or (h)(1)(C).
(21) FAIR MARKET VALUE- The term fair market value' means the average daily closing price on registered exchanges or, if such a price is unavailable, the average price as determined by the Administrator, during a specified time period, of an emission allowance.
(22) FEDERAL LAND- The term Federal land' means land that is owned by the United States, other than land held in trust for an Indian or Indian tribe.
(23) FOSSIL FUEL- The term fossil fuel' means natural gas, petroleum, or coal, or any form of solid, liquid, or gaseous fuel derived from such material, including consumer products that are derived from such materials and are combusted.
(24) FOSSIL FUEL-FIRED- The term fossil fuel-fired' means powered by combustion of fossil fuel, alone or in combination with any other fuel, regardless of the percentage of fossil fuel consumed.
(25) FUGITIVE EMISSIONS- The term fugitive emissions' means emissions from leaks, valves, joints, or other small openings in pipes, ducts, or other equipment, or from vents.
(26) GEOLOGIC SEQUESTRATION; GEOLOGICALLY SEQUESTERED- The terms geologic sequestration' and geologically sequestered' mean the sequestration of greenhouse gases in subsurface geologic formations for purposes of permanent storage.
(27) GEOLOGIC SEQUESTRATION SITE- The term geologic sequestration site' means a site where carbon dioxide is geologically sequestered.
(28) GREENHOUSE GAS- The term greenhouse gas' means any gas described in section 711(a) or designated under section 711, except to the extent that it is regulated under title VI.
(29) HOLD- The term hold' means, with respect to an allowance, offset credit, or term offset credit, to have in the appropriate account in the allowance tracking system established under section 724(d), or submit to the Administrator for recording in such account.
(30) INDUSTRIAL SOURCE- The term industrial source' means any stationary source that--
(A) is not an electricity source; and
(B) is in--
(i) the manufacturing sector (as defined in North American Industrial Classification System codes 31, 32, and 33); or
(ii) the natural gas processing or natural gas pipeline transportation sector (as defined in North American Industrial Classification System codes 211112 and 486210).
(31) INTERNATIONAL EMISSION ALLOWANCE- The term international emission allowance' means a tradable authorization to emit 1 ton of carbon dioxide equivalent of greenhouse gas that is issued by a national or supranational foreign government pursuant to a qualifying international program designated by the Administrator pursuant to section 728(a).
(32) INTERNATIONAL OFFSET CREDIT- The term international offset credit' means an offset credit issued by the Administrator under section 743.
(33) LEAKAGE- Except as provided in part F, the term leakage' means a significant increase in greenhouse gas emissions, or significant decrease in sequestration, which is caused by an offset project or activities under part E and occurs outside the boundaries of the offset project or the relevant program or project under part E.
(34) MINERAL SEQUESTRATION- The term mineral sequestration' means sequestration of carbon dioxide from the atmosphere by capturing carbon dioxide into a permanent mineral, such as the aqueous precipitation of carbonate minerals that results in the storage of carbon dioxide in a mineral form.
(35) NATURAL GAS LIQUID- The term natural gas liquid' means ethane, butane, isobutane, natural gasoline, and propane.
(36) NATURAL GAS LOCAL DISTRIBUTION COMPANY- The term natural gas local distribution company' has the meaning given the term local distribution company' in section 2(17) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3301(17)).
(37) OFFSET CREDIT- For purposes of this section and part D, the term offset credit' means an offset credit issued under part D. For purposes of part C, the term means any offset credit issued under the American Clean Energy and Security Act of 2009, or the amendments made thereby. The term does not include a term offset credit.
(38) OFFSET PROJECT- The term offset project' means a project or activity that reduces or avoids greenhouse gas emissions, or sequesters greenhouse gases, and for which offset credits are or may be issued under part D.
(39) OFFSET PROJECT DEVELOPER- The term offset project developer' means the individual or entity designated as the offset project developer in an offset project approval petition under section 735(c)(1).
(40) PETROLEUM- The term petroleum' includes crude oil, tar sands, oil shale, and heavy oils.
(41) RENEWABLE BIOMASS- The term renewable biomass' means any of the following:
(A) Materials, pre-commercial thinnings, or removed invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)), including those that are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed as part of a federally recognized timber sale, or that are removed to reduce hazardous fuels, to reduce or contain disease or insect infestation, or to restore ecosystem health, and that are--
(i) not from components of the National Wilderness Preservation System, Wilderness Study Areas, Inventoried Roadless Areas, old growth stands, late-successional stands (except for dead, severely damaged, or badly infested trees), components of the National Landscape Conservation System, National Monuments, National Conservation Areas, Designated Primitive Areas, or Wild and Scenic Rivers corridors;
(ii) harvested in environmentally sustainable quantities, as determined by the appropriate Federal land manager; and
(iii) harvested in accordance with Federal and State law, and applicable land management plans.
(B) Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including--
(i) renewable plant material, including--
(I) feed grains;
(II) other agricultural commodities;
(III) other plants and trees; and
(IV) algae; and
(ii) waste material, including--
(I) crop residue;
(II) other vegetative waste material (including wood waste and wood residues);
(III) animal waste and byproducts (including fats, oils, greases, and manure);
(IV) construction waste; and
(V) food waste and yard waste.
(C) Residues and byproducts from wood, pulp, or paper products facilities.
(42) RETIRE- The term retire', with respect to an allowance, offset credit, or term offset credit, established or issued under the American Clean Energy and Security Act of 2009 or the amendments made thereby, means to disqualify such allowance or offset credit for any subsequent use under this title, regardless of whether the use is a sale, exchange, or submission of the allowance, offset credit, or term offset credit to satisfy a compliance obligation.
(43) REVERSAL- The term reversal' means an intentional or unintentional loss of sequestered greenhouse gases to the atmosphere.
(44) SEQUESTERED AND SEQUESTRATION- The terms sequestered' and sequestration' mean the separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator. The terms include biological, geologic, and mineral sequestration, but do not include ocean fertilization techniques.
(45) STATIONARY SOURCE- The term stationary source' means any integrated operation comprising any plant, building, structure, or stationary equipment, including support buildings and equipment, that is located within one or more contiguous or adjacent properties, is under common control of the same person or persons, and emits or may emit a greenhouse gas.
(46) STRATEGIC RESERVE ALLOWANCE- The term strategic reserve allowance' means an emission allowance reserved for, transferred to, or deposited in the strategic reserve under section 726.
(47) TON- The term ton' means metric ton.
(48) UNCAPPED EMISSIONS- The term uncapped emissions' means emissions of greenhouse gases emitted after December 31, 2011, that are not capped emissions.
(49) UNITED STATES GREENHOUSE GAS EMISSIONS- The term United States greenhouse gas emissions' means the total quantity of annual greenhouse gas emissions from the United States, as calculated by the Administrator and reported to the United Nations Framework Convention on Climate Change Secretariat.
(50) UTILITY UNIT- The term utility unit' means a combustion device that, on January 1, 2009, or any date thereafter, is fossil fuel-fired and serves a generator that produces electricity for sale, unless such combustion device, during the 12-month period starting the later of January 1, 2009, or the commencement of commercial operation and each calendar year starting after such later date--
(A) is part of an integrated cycle system that cogenerates steam and electricity during normal operation and that supplies one-third or less of its potential electric output capacity and 25 MW or less of electrical output for sale; or
(B) combusts materials of which more than 95 percent is municipal solid waste on a heat input basis.
(51) VINTAGE YEAR- The term vintage year' means the calendar year for which an emission allowance is established under section 721(a) or which is assigned to an emission allowance under section 726(g)(3)(A), except that the vintage year for a strategic reserve allowance shall be the year in which such allowance is purchased at auction.'.
		SEC. 326. REPORT ON CLIMATE ACTIONS OF MAJOR ECONOMIES.
		(a) In General- The Secretary of State, in cooperation with the Board, shall prepare an interagency report on climate change and energy policy of the 5 countries that, of the countries that are not members of the Organisation for Economic Co-Operation and Development, emit the greatest annual quantity of greenhouse gases.
		(b) Purposes- The purposes of the report shall be--
		(1) to provide to Congress and the public of the United States--
		(A) a better understanding of the actions the countries described in subsection (a) are taking to reduce greenhouse gas emissions; and
		(B) an assessment of the climate change and energy policy commitments and actions of those countries; and
		(2) to identify the means by which the United States can assist those countries in achieving such a reduction.
		(c) Submission to Congress- Not later than 15 months after the date of enactment of this Act, the Secretary of State shall submit to the appropriate committees of Congress the report prepared under this section.

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HR2454 and S1733 - International Adaptation

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