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(iii) any project or activity for the re-
1
duction of greenhouse gas emissions or se-
2
questration of a greenhouse gas that is car-
3
ried out by the entity, including a project
4
or activity relating to—
5
(I) fuel switching;
6
(II) energy efficiency improve-
7
ments;
8
(III) use of renewable energy;
9
(IV) use of combined heat and
10
power systems;
11
(V) management of cropland,
12
grassland, or grazing land;
13
(VI) a forestry activity that in-
14
creases forest carbon stocks or reduces
15
forest carbon emissions;
16
(VII) carbon capture and storage;
17
(VIII) methane recovery;
18
(IX) greenhouse gas offset invest-
19
ment; and
20
(X) any other practice for achiev-
21
ing greenhouse gas reductions as recog-
22
nized by 1 or more designated agencies.
23
(3) E
XEMPTIONS FROM REPORTING
.—
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(A) I
N GENERAL
.—If the Director of the Of-
1
fice of National Climate Change Policy deter-
2
mines under section 1108(b) that the reporting
3
requirements under paragraph (1) shall apply to
4
all entities (other than entities exempted by this
5
paragraph), regardless of participation or non-
6
participation in the registry, an entity shall be
7
required to submit reports under paragraph (1)
8
only if, in any calendar year after the date of
9
enactment of this Act—
10
(i) the total greenhouse gas emissions
11
of at least 1 facility owned by the entity ex-
12
ceeds 10,000 metric tons of carbon dioxide
13
equivalent (or such greater quantity as may
14
be established by a designated agency by
15
regulation); or
16
(ii)(I) the total quantity of greenhouse
17
gases produced, distributed, or imported by
18
the entity exceeds 10,000 metric tons of car-
19
bon dioxide equivalent (or such greater
20
quantity as may be established by a des-
21
ignated agency by regulation); and
22
(II) the entity is not a feedlot or other
23
farming operation (as defined in section
24
101 of title 11, United States Code).
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(B) E
NTITIES ALREADY REPORTING
.—
1
(i) I
N GENERAL
.—An entity that, as of
2
the date of enactment of this Act, is re-
3
quired to report carbon dioxide emissions
4
data to a Federal agency shall not be re-
5
quired to re-report that data for the pur-
6
poses of this title.
7
(ii) R
EVIEW OF PARTICIPATION
.—For
8
the purpose of section 1108, emissions re-
9
ported under clause (i) shall be considered
10
to be reported by the entity to the registry.
11
(4) P
ROVISION OF VERIFICATION INFORMATION
12
BY REPORTING ENTITIES
.—Each entity that submits
13
a report under this subsection shall provide informa-
14
tion sufficient for each designated agency to which the
15
report is submitted to verify, in accordance with
16
measurement and verification methods and standards
17
developed under section 1106, that the greenhouse gas
18
report of the reporting entity—
19
(A) has been accurately reported; and
20
(B) in the case of each voluntary report
21
under paragraph (2), represents—
22
(i) actual reductions in direct green-
23
house gas emissions—
24
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HR 6 EAS1S/PP
(I) relative to historic emission
1
levels of the entity; and
2
(II) net of any increases in—
3
(aa) direct emissions; and
4
(bb) indirect emissions de-
5
scribed in paragraph (1)(C)(ii);
6
or
7
(ii) actual increases in net sequestra-
8
tion.
9
(5) F
AILURE TO SUBMIT REPORT
.—An entity
10
that participates or has participated in the registry
11
and that fails to submit a report required under this
12
subsection shall be prohibited from including emission
13
reductions reported to the registry in the calculation
14
of the baseline of the entity in future years.
15
(6)
I
NDEPENDENT
THIRD
-
PARTY
VERIFICA
-
16
TION
.—To meet the requirements of this section and
17
section 1106, a entity that is required to submit a re-
18
port under this section may—
19
(A)
obtain
independent
third-party
20
verification; and
21
(B) present the results of the third-party
22
verification to each appropriate designated agen-
23
cy.
24
(7) A
VAILABILITY OF DATA
.—
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HR 6 EAS1S/PP
(A) I
N GENERAL
.—The designated agencies
1
shall ensure, to the maximum extent practicable,
2
that information in the database is—
3
(i) published;
4
(ii) accessible to the public; and
5
(iii) made available in electronic for-
6
mat on the Internet.
7
(B) E
XCEPTION
.—Subparagraph (A) shall
8
not apply in any case in which the designated
9
agencies determine that publishing or otherwise
10
making available information described in that
11
subparagraph poses a risk to national security.
12
(8) D
ATA
INFRASTRUCTURE
.—The designated
13
agencies shall ensure, to the maximum extent prac-
14
ticable, that the database uses, and is integrated with,
15
Federal, State, and regional greenhouse gas data col-
16
lection and reporting systems in effect as of the date
17
of enactment of this Act.
18
(9) A
DDITIONAL ISSUES TO BE CONSIDERED
.—
19
In promulgating the regulations under section
20
1104(c)(1) and implementing the database, the des-
21
ignated agencies shall take into consideration a broad
22
range of issues involved in establishing an effective
23
database, including—
24
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(A) the appropriate units for reporting each
1
greenhouse gas;
2
(B) the data and information systems and
3
measures necessary to identify, track, and verify
4
greenhouse gas emission reductions in a manner
5
that will encourage the development of private
6
sector trading and exchanges;
7
(C) the greenhouse gas reduction and se-
8
questration methods and standards applied in
9
other countries, as applicable or relevant;
10
(D) the extent to which available fossil fuels,
11
greenhouse gas emissions, and greenhouse gas
12
production and importation data are adequate
13
to implement the database;
14
(E) the differences in, and potential unique-
15
ness of, the facilities, operations, and business
16
and other relevant practices of persons and enti-
17
ties in the private and public sectors that may
18
be expected to participate in the registry; and
19
(F) the need of the registry to maintain
20
valid and reliable information on baselines of en-
21
tities so that, in the event of any future action
22
by Congress to require entities, individually or
23
collectively, to reduce greenhouse gas emissions,
24
Congress will be able—
25
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HR 6 EAS1S/PP
(i) to take into account that informa-
1
tion; and
2
(ii) to avoid enacting legislation that
3
penalizes entities for achieving and report-
4
ing reductions.
5
(d) A
NNUAL
R
EPORT
.—The designated agencies shall
6
jointly publish an annual report that—
7
(1) describes the total greenhouse gas emissions
8
and emission reductions reported to the database dur-
9
ing the year covered by the report;
10
(2) provides entity-by-entity and sector-by-sector
11
analyses of the emissions and emission reductions re-
12
ported;
13
(3) describes the atmospheric concentrations of
14
greenhouse gases; and
15
(4) provides a comparison of current and past
16
atmospheric concentrations of greenhouse gases.
17
SEC. 1106. MEASUREMENT AND VERIFICATION.
18
(a) S
TANDARDS
.—
19
(1) I
N GENERAL
.—Not later than 1 year after
20
the date of enactment of this Act, the designated agen-
21
cies shall jointly develop comprehensive measurement
22
and verification methods and standards to ensure a
23
consistent and technically accurate record of green-
24
house gas emissions, emission reductions, sequestra-
25
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HR 6 EAS1S/PP
tion, and atmospheric concentrations for use in the
1
registry.
2
(2) R
EQUIREMENTS
.—The methods and stand-
3
ards developed under paragraph (1) shall address the
4
need for—
5
(A)
standardized
measurement
and
6
verification practices for reports made by all en-
7
tities participating in the registry, taking into
8
account—
9
(i) protocols and standards in use by
10
entities desiring to participate in the reg-
11
istry as of the date of development of the
12
methods and standards under paragraph
13
(1);
14
(ii) boundary issues, such as leakage
15
and shifted use;
16
(iii) avoidance of double counting of
17
greenhouse gas emissions and emission re-
18
ductions; and
19
(iv) such other factors as the des-
20
ignated agencies determine to be appro-
21
priate;
22
(B) measurement and verification of actions
23
taken to reduce, avoid, or sequester greenhouse
24
gas emissions;
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HR 6 EAS1S/PP
(C) in coordination with the Secretary of
1
Agriculture, measurement of the results of the use
2
of carbon sequestration and carbon recapture
3
technologies, including—
4
(i) organic soil carbon sequestration
5
practices; and
6
(ii) forest preservation and reforest-
7
ation activities that adequately address the
8
issues
of
permanence,
leakage,
and
9
verification;
10
(D)
such
other
measurement
and
11
verification standards as the Secretary of Com-
12
merce, the Secretary of Agriculture, the Adminis-
13
trator, and the Secretary of Energy determine to
14
be appropriate; and
15
(E) other factors that, as determined by the
16
designated agencies, will allow entities to ade-
17
quately establish a fair and reliable measure-
18
ment and reporting system.
19
(b) R
EVIEW AND
R
EVISION
.—The designated agencies
20
shall periodically review, and revise as necessary, the meth-
21
ods and standards developed under subsection (a).
22
(c) P
UBLIC
P
ARTICIPATION
.—The Secretary of Com-
23
merce shall—
24
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HR 6 EAS1S/PP
(1) make available to the public for comment, in
1
draft form and for a period of at least 90 days, the
2
methods and standards developed under subsection
3
(a); and
4
(2) after the 90-day period referred to in para-
5
graph (1), in coordination with the Secretary of En-
6
ergy, the Secretary of Agriculture, and the Adminis-
7
trator, adopt the methods and standards developed
8
under subsection (a) for use in implementing the
9
database.
10
(d) E
XPERTS AND
C
ONSULTANTS
.—
11
(1) I
N GENERAL
.—The designated agencies may
12
obtain the services of experts and consultants in the
13
private and nonprofit sectors in accordance with sec-
14
tion 3109 of title 5, United States Code, in the areas
15
of greenhouse gas measurement, certification, and
16
emission trading.
17
(2) A
VAILABLE ARRANGEMENTS
.—In obtaining
18
any service described in paragraph (1), the designated
19
agencies may use any available grant, contract, coop-
20
erative agreement, or other arrangement authorized
21
by law.
22
SEC. 1107. INDEPENDENT REVIEWS.
23
(a) I
N
G
ENERAL
.—Not later than 5 years after the
24
date of enactment of this Act, and every 3 years thereafter,
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HR 6 EAS1S/PP
the Comptroller General of the United States shall submit
1
to Congress a report that—
2
(1) describes the efficacy of the implementation
3
and operation of the database; and
4
(2) includes any recommendations for improve-
5
ments to this title and programs carried out under
6
this title—
7
(A) to achieve a consistent and technically
8
accurate record of greenhouse gas emissions,
9
emission reductions, and atmospheric concentra-
10
tions; and
11
(B) to achieve the purposes of this title.
12
(b) R
EVIEW
OF
S
CIENTIFIC
M
ETHODS
.—The des-
13
ignated agencies shall enter into an agreement with the Na-
14
tional Academy of Sciences under which the National Acad-
15
emy of Sciences shall—
16
(1) review the scientific methods, assumptions,
17
and standards used by the designated agencies in im-
18
plementing this title;
19
(2) not later than 4 years after the date of enact-
20
ment of this Act, submit to Congress a report that de-
21
scribes any recommendations for improving—
22
(A) those methods and standards; and
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HR 6 EAS1S/PP
(B) related elements of the programs, and
1
structure of the database, established by this title;
2
and
3
(3) regularly review and update as appropriate
4
the list of anthropogenic climate-forcing emissions
5
with significant global warming potential described
6
in section 1102(8)(G).
7
SEC. 1108. REVIEW OF PARTICIPATION.
8
(a) I
N
G
ENERAL
.—Not later than 5 years after the
9
date of enactment of this Act, the Director of the Office of
10
National Climate Change Policy shall determine whether
11
the reports submitted to the registry under section
12
1105(c)(1) represent less than 60 percent of the national
13
aggregate anthropogenic greenhouse gas emissions.
14
(b) I
NCREASED
A
PPLICABILITY OF
R
EQUIREMENTS
.—
15
If the Director of the Office of National Climate Change
16
Policy determines under subsection (a) that less than 60
17
percent of the aggregate national anthropogenic greenhouse
18
gas emissions are being reported to the registry—
19
(1) the reporting requirements under section
20
1105(c)(1) shall apply to all entities (except entities
21
exempted under section 1105(c)(3)), regardless of any
22
participation or nonparticipation by the entities in
23
the registry; and
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