[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2877 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 2877
To direct the Secretary of the Treasury to establish a program to
regulate the entry of fossil carbon into commerce in the United States
to promote clean energy jobs and economic growth and avoid dangerous
interference with the climate of the Earth, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 11, 2009
Ms. Cantwell (for herself and Ms. Collins) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To direct the Secretary of the Treasury to establish a program to
regulate the entry of fossil carbon into commerce in the United States
to promote clean energy jobs and economic growth and avoid dangerous
interference with the climate of the Earth, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Carbon Limits and Energy for
America's Renewal (CLEAR) Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Carbon dioxide equivalent.--The term ``carbon dioxide
equivalent'' means the equivalent weight of carbon dioxide
obtained by multiplying--
(A) the weight of fossil carbon; and
(B) the quotient obtained by dividing--
(i) the molecular weight of carbon dioxide;
by
(ii) the molecular weight of carbon.
(3) Carbon refund trust fund.--The term ``Carbon Refund
Trust Fund'' means the Carbon Refund Trust Fund established by
section 4(f).
(4) Carbon share.--The term ``carbon share'' means the
right to sell or otherwise place into commerce in the United
States 1 ton of fossil carbon.
(5) Carbon share derivative.--The term ``carbon share
derivative'' means any transaction or contract that derives the
value of the transaction or contract in part or in whole from
the value of a carbon share.
(6) CERT fund.--The term ``CERT Fund'' means the Clean
Energy Reinvestment Trust Fund established by section 6(a).
(7) Clean energy technology.--The term ``clean energy
technology'' means a technology relating to the production,
use, transmission, storage, control, or conservation of energy
that would--
(A) reduce the need for additional energy supplies
by--
(i) using energy sources in existence as of
the date of enactment of this Act with greater
efficiency; or
(ii) transmitting, distributing, or
transporting energy with greater effectiveness
through the infrastructure of the United
States;
(B) diversify the sources of energy supply of the
United States and reduce the dependence of the United
States on imported energy; or
(C) contribute to the reduction, avoidance, or
sequestration of energy-related greenhouse gas
emissions.
(8) Covered fossil carbon.--The term ``covered fossil
carbon'' means fossil carbon that is--
(A) introduced into domestic commerce;
(B) combusted or released into the atmosphere by a
first seller; or
(C) transferred as a royalty-in-kind.
(9) Energy security dividend.--The term ``energy security
dividend'' means, with respect to any month, a payment in an
amount that is equal to the quotient obtained by dividing--
(A) the amount of auction proceeds transferred into
the Carbon Refund Trust Fund for the month preceding
such month; by
(B) the number of qualified individuals for the
preceding month.
(10) First seller.--The term ``first seller'' means an
entity in the business of producing or importing fossil carbon
or production process carbon, as determined by the Secretary.
(11) Fossil carbon.--The term ``fossil carbon'' means--
(A) carbon in the form of a fossil fuel (such as
coal, natural gas, and crude oil) in the raw state in
which the fossil fuel exists at the time the fossil
fuel is removed from the Earth; and
(B) the carbon content of imported refined fuel
products (such as gasoline, diesel, and jet fuels)
derived from a fossil fuel.
(12) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) a hydrofluorocarbon;
(E) a perfluorocarbon;
(F) sulfur hexafluoride; and
(G) any other anthropogenically emitted gas that
the Administrator, after notice and comment, determines
to contribute to climate change.
(13) Point-of-entry.--
(A) In general.--The term ``point-of-entry'' means,
with respect to the economy of the United States, the
point at which fossil carbon is introduced into
commerce.
(B) Inclusions.--The term ``point-of-entry''
includes--
(i) a wellhead;
(ii) a mine entrance; and
(iii) any port-of-entry, as determined by
the Secretary.
(14) Production process carbon.--The term ``production
process carbon'' means the quantity of fossil carbon used to
manufacture an energy-intensive commodity.
(15) Program.--The term ``program'' means the fossil carbon
limitation program established under section 4(a)(1).
(16) Qualified individual.--The term ``qualified
individual'' means any individual who lawfully resides in the
United States.
(17) Rate of capital investment return.--The term ``rate of
capital investment return'' means an annual real rate of return
on capital investment of 6 percent.
(18) Rate of inflation.--The term ``rate of inflation''
means the annual rate increase of the price of goods and
services, as measured by the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor.
(19) Safety valve price.--The term ``safety valve price''
means the maximum price per ton of carbon dioxide equivalent
for any 1 calendar year established under section 4(a)(4).
(20) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(21) Voluntary carbon reduction purchase.--The term
``voluntary carbon reduction purchase'' means the voluntary
purchase of credits that--
(A) are not used to meet any regulatory mandate
(including any renewable energy standard required by
the Federal Government or any State);
(B) include Federal or State renewable energy
certificates, energy efficiency certificates, and other
eligible purchases as determined by the Secretary; and
(C) are solely responsible for the reduction of
domestic fossil carbon emissions.
SEC. 3. GLOBAL WARMING EMISSIONS REDUCTION STANDARDS.
(a) In General.--The President shall, through the program and the
CERT Fund and in accordance with this Act, reduce steadily the quantity
of United States greenhouse gas emissions to achieve the emissions
reduction standards described in subsection (b).
(b) Periodic Emissions Reduction Standards.--
(1) Calendar year 2020.--During calendar year 2020, the
quantity of United States greenhouse gas emissions shall not
exceed 80 percent of the quantity of United States greenhouse
gas emissions during calendar year 2005.
(2) Calendar year 2025.--During calendar year 2025, the
quantity of United States greenhouse gas emissions shall not
exceed 70 percent of the quantity of United States greenhouse
gas emissions during calendar year 2005.
(3) Calendar year 2030.--During calendar year 2030, the
quantity of United States greenhouse gas emissions shall not
exceed 58 percent of the quantity of United States greenhouse
gas emissions during calendar year 2005.
(4) Calendar year 2050.--During calendar year 2050, the
quantity of United States greenhouse gas emissions shall not
exceed 17 percent of the quantity of United States greenhouse
gas emissions during calendar year 2005.
SEC. 4. FOSSIL CARBON LIMITATION PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall by regulation
establish within the Department of the Treasury a program to
reduce the emission of greenhouse gases--
(A) by placing a gradually declining limitation on
the quantity of fossil carbon permitted to be sold into
commerce in the United States; and
(B) by requiring each first seller to surrender
periodically to the Secretary a number of carbon shares
equal to the quantity of covered fossil carbon produced
or imported by the first seller by not later than 2
years after the date on which the fossil carbon becomes
covered fossil carbon.
(2) Annual quantity of carbon shares.--
(A) Initial quantity.--
(i) In general.--Not later than January 1,
2011, to carry out the program, in accordance
with clause (ii), the President, in
consultation with the Secretary, the
Administrator, and the Secretary of Energy,
shall establish and announce a maximum
aggregate quantity of fossil carbon, and a
corresponding number of carbon shares,
permitted to be introduced through points-of-
entry for calendar year 2012.
(ii) Requirement.--The maximum aggregate
quantity of carbon shares for calendar year
2012 under clause (i) shall equal the
approximate level of fossil carbon likely to be
required by the economy of the United States
during calendar year 2012.
(B) Subsequent quantities.--
(i) Calendar years 2013 and 2014.--For each
of calendar years 2013 and 2014, the maximum
aggregate quantity of carbon shares permitted
to be introduced through points-of-entry shall
be equal to the maximum aggregate quantity
established under subparagraph (A)(i).
(ii) Calendar year 2015 and subsequent
calendar years.--For calendar year 2015 and
each calendar year thereafter, the maximum
aggregate quantity of carbon shares shall be
reduced from the quantity of the previous
calendar year at a rate that--
(I) for calendar year 2015, is
equal to 0.25 percent; and
(II) for each subsequent calendar
year, increases by an additional 0.25
percent.
(C) Modification of quantity of carbon shares
available.--Subject to paragraph (3), the President, in
consultation with the Secretary, the Administrator, and
the Secretary of Energy, may increase or decrease the
number of carbon shares available for an auction to
respond to--
(i) changes in the scientific understanding
of climate change;
(ii) the need to stabilize atmospheric
greenhouse gas concentrations to avoid
dangerous interference with the climate of the
Earth;
(iii) any international obligations of the
United States, including any commitment of the
United States under the United Nations
Framework Convention on Climate Change;
(iv) the need to maintain the international
competitiveness of the United States;
(v) the quantity of carbon that has, or is
likely, to be permanently sequestered from
release into the atmosphere or ocean;
(vi) the need to provide a sufficient price
signal to ensure private sector investment in
clean energy technology research, development,
and deployment; and
(vii) appropriations for the programs and
initiatives described in section 6(c) that are
insufficient to permit the President to meet
the standards established by section 3(b).
(3) Expedited congressional review.--
(A) Definition of joint resolution.--In this
paragraph, the term ``joint resolution'' means only a
joint resolution introduced during the 30-day period
beginning on the date on which the report referred to
in subparagraph (B) is received by Congress (excluding
days either House of Congress is adjourned for more
than 3 days during a session of Congress), the matter
after the resolving clause of which is as follows:
``That Congress approves the modification of the number
of shares available for auction described in the report
required under section 4(a)(3)(B) of the CLEAR Act
submitted by the President to Congress on ____, and the
modification shall take effect.'' (The blank space
being appropriately filled in).
(B) Report.--Before any modification of the number
of shares available for auction take effect under
paragraph (2)(C), the President shall submit to each
House of Congress a report that provides a notice of
the modification.
(C) Approval.--The modification of the number of
shares available for auction under paragraph (2)(C)
shall take effect if Congress enacts a joint resolution
of approval of the modification.
(D) Procedure.--
(i) In general.--Subject to clause (ii),
the procedures described in subsections (b)
through (g) of section 802 of title 5, United
States Code, shall apply to the consideration
of a joint resolution under this paragraph.
(ii) Terms.--For purposes of this
subparagraph--
(I) the reference to ``section
801(a)(1)'' in section 802(b)(2)(A) of
that title shall be considered to refer
to subparagraph (B); and
(II) the reference to ``section
801(a)(1)(A)'' in section 802(e)(2) of
that title shall be considered to refer
to subparagraph (B).
(4) Auction price safeguards.--
(A) Calendar year 2012.--The carbon share price
shall be limited in a manner to ensure that the
corresponding price per ton of carbon dioxide
equivalent for calendar year 2012 is--
(i) not less than $7; and
(ii) not more than $21.
(B) Subsequent calendar years.--For calendar year
2013 and each calendar year thereafter--
(i) subject to clause (ii), the minimum
allowable carbon share price shall increase by
the aggregate rate obtained by adding--
(I) the rate of inflation; and
(II) the rate of capital investment
return plus 0.5 percent; and
(ii) the maximum allowable carbon share
price shall increase by the aggregate rate
obtained by adding--
(I) the rate of inflation; and
(II) the rate of capital investment
return minus 0.5 percent.
(5) Penalty for noncompliance.--
(A) In general.--Any first seller that fails to
surrender a sufficient number of carbon shares for the
fossil carbon that the first seller introduced to the
United States market by not later than 2 years after
the date on which the fossil carbon becomes covered
fossil carbon shall be liable for payment to the
Secretary of a penalty in the amount described in
subparagraph (B).
(B) Amount.--The amount of a penalty required to be
paid under subparagraph (A) shall be equal to the
product obtained by multiplying--
(i) the number of carbon shares that the
owner failed to surrender by the deadline; by
(ii) 5 times the carbon share price set at
an auction described in subsection (b), the
date of which is closest to that of the sale of
the fossil carbon subject to a noncompliance
penalty.
(C) Timing.--A penalty required under this
paragraph shall be immediately due and payable to the
Secretary.
(D) No effect on liability.--A penalty due and
payable by the owner of a covered entity under this
paragraph shall not diminish the liability of the owner
for any fine, penalty, or assessment against the owner
for the same violation under any other provision of
law.
(E) Use of penalties.--Any penalties collected by
the Secretary under this paragraph shall be transferred
to the CERT Fund.
(6) Production process carbon adjustment.--
(A) In general.--Not later than January 1, 2013,
the Secretary, in consultation with the Secretary of
Commerce, the Secretary of Energy, and the United
States Trade Representative, shall impose fees on
individuals and entities for the production process
carbon associated with commodities imported for sale in
the United States.
(B) Amount of fee.--To the maximum extent
practicable, a fee described in subparagraph (A) shall
be an amount commensurate with the carbon share value
of the production process carbon that is the subject of
the fee.
(C) Applicability.--A fee described in subparagraph
(A) shall only apply to imported commodities if--
(i) the fee is compatible with the
obligations of the United States with respect
to any applicable international trade agreement
or treaty to which the United States is a
party;
(ii) the country in which the commodity was
produced does not impose comparable limits or
fees on the use of fossil carbon; and
(iii) domestic producers of comparable
commodities would be demonstrably disadvantaged
economically by the Program in the absence of
the fees.
(D) Use of fees.--Any fees collected by the
Secretary under this paragraph shall be transferred to
the CERT Fund.
(E) Adjustment methodology.--Not later than 180
days after the date of enactment of this Act and
periodically thereafter, the Secretary, in consultation
with the Secretary of Commerce, the Secretary of
Energy, and the United States Trade Representative,
shall propose specific data sources and methodologies
for measuring and determining which sectors and
commodities should be covered by production process
carbon adjustments.
(7) Targeted relief funds.--
(A) In general.--Not later than January 1, 2013,
the Secretary, in consultation with the Secretary of
Commerce, the Secretary of Energy, and the United
States Trade Representative, shall distribute funds
that are appropriated from the CERT Fund to individuals
and entities that are unable to compete due to unfair
market prices arising from disparate fossil carbon
limits or fees among countries.
(B) Amount of fee.--To the maximum extent
practicable, the funds described in subparagraph (A)
shall be an amount commensurate with the product
obtained by multiplying--
(i) the average additional cost per unit
output for the industry or economic sector due
to disparate carbon limits among countries; and
(ii) the number of output units.
(C) Applicability.--The funds described in
subparagraph (A) shall only apply to an industry or
economic sector if--
(i) the funds are compatible with the
obligations of the United States with respect
to any applicable international trade agreement
or treaty to which the United States is a
party;
(ii) the destination country for United
States exports does not impose comparable
limits or fees on--
(I) the use of fossil carbon within
the territories of that country; or
(II) the importation of production
process carbon; and
(iii) domestic producers would be
demonstrably disadvantaged economically and
competitively by the program in the absence of
the funds.
(D) Transfer of funds.--Any funds distributed by
the Secretary under this paragraph shall be transferred
from the CERT Fund, as authorized under section 6(c).
(E) Adjustment methodology.--
(i) In general.--Not later than 180 days
after the date of enactment of this Act and
periodically thereafter, in accordance with
clause (ii), the Secretary, in consultation
with the Secretary of Commerce, the Secretary
of Energy, and the United States Trade
Representative, shall propose specific data
sources and methodologies for measuring and
determining which sectors and industries should
be considered to be eligible for targeted
relief funds.
(ii) Priority.--In carrying out clause (i),
to maximize the effectiveness of available
funds, the Secretary shall give priority to the
most economically and competitively
disadvantaged industries and economic sectors.
(b) Auctions.--
(1) In general.--Subject to paragraph (9), in carrying out
the program, during each calendar year, the Secretary shall
conduct monthly uniform price auctions of a portion of the
carbon shares made available for the calendar year under
subsection (a)(2).
(2) Eligible participants.--First sellers shall be the only
entities eligible to participate in an auction conducted under
paragraph (1).
(3) Reserve price.--The minimum price of any carbon share
purchased under an auction conducted under paragraph (1) shall
be the minimum price for the corresponding calendar year
specified in subsection (a)(4).
(4) Safety valve price.--
(A) In general.--Subject to subparagraph (B), the
maximum price of any carbon share purchased under an
auction conducted under paragraph (1) shall be the
maximum price for the corresponding calendar year
specified in subsection (a)(4).
(B) Safety valve shares.--If the safety valve price
is reached in any 1 auction conducted under paragraph
(1), the number of available carbon shares may be
increased to exceed the aggregate quantity described in
subsection (a)(2) to ensure that all legal bids at the
safety valve price can be accommodated for the 1
auction.
(C) Safety valve revenues.--Any revenue generated
by the sale of a carbon share at the safety valve price
that is in excess of the aggregate quantity described
in subsection (a)(2) shall be--
(i) deposited in the CERT Fund; and
(ii) used only for the conduct of a program
or initiative within the United States
described in subparagraph (F) or (G) of section
6(c)(1).
(D) Use of safety valve carbon shares.--A carbon
share purchased at the safety valve price shall be
redeemed by not later than 90 days after the date on
which the original purchaser purchased the carbon
share.
(5) Use of carbon shares.--A carbon share purchased under
an auction conducted under paragraph (1), or on an exchange
described in paragraph (7)(A), may only be redeemed by a first
seller during the 10-year period commencing on the date of
issuance to the original carbon share holder.
(6) Limitation of carbon share purchases and
accumulation.--
(A) Purchase limitation.--During any calendar year,
a first seller may not purchase a quantity of carbon
shares that significantly exceeds the anticipated
volume of covered fossil carbon of the first seller for
the calendar year, as determined by the Secretary.
(B) Accumulation limitation.--A first seller may
not accumulate a quantity of carbon shares that, as
determined by the Secretary--
(i) exceeds the anticipated volume of
covered fossil carbon of the first seller for
the duration of the period during which the
carbon shares held by the first seller may be
redeemed;
(ii) allows for speculation or
manipulation; or
(iii) interferes with normal market
competition.
(7) Purchase or sale of carbon shares.--
(A) In general.--A transaction other than an
auction described in paragraph (1) that involves the
purchase or sale of a carbon share may be carried out
only if--
(i) the carbon share is offered for sale to
any eligible first seller on a dedicated public
carbon share exchange established and
administered by the Secretary for that purpose;
and
(ii) all relevant transaction dates, carbon
share quantities, and prices are made publicly
available on a real-time basis.
(B) Certain recipients of carbon shares.--
Recipients of carbon shares under subsection (c) shall
be granted access to an exchange described in
subparagraph (A) solely for the purpose of selling
carbon shares to eligible first sellers.
(8) Carbon share derivatives market.--
(A) Prohibition.--A first seller may not directly
or indirectly create, purchase, sell, or trade carbon
share derivatives.
(B) Regulations.--Not later than 1 year after the
date of enactment of this Act, the Secretary, in
consultation with the Commodity Futures Trading
Commission, the Federal Energy Regulatory Commission,
and the Federal Trade Commission, shall promulgate
regulations for the establishment, operation, and
oversight of markets for all carbon share derivatives--
(i) to provide for effective and
comprehensive market oversight;
(ii) to prohibit fraud, market manipulation
(in accordance with section 222 of the Federal
Power Act (16 U.S.C. 824v)), and excessive
speculation; and
(iii) to limit unreasonable or excessive
fluctuations in the price of carbon share
derivatives and carbon shares.
(9) Modification of auction frequency.--The Secretary may
modify the frequency of the uniform price auctions under
paragraph (1) if the Secretary determines that the modification
will significantly--
(A) improve the accuracy, predictability, and
stability of the market-clearing auction price; or
(B) facilitate greater program efficiency.
(c) Reimbursement for Embedded, Reinjected, and Sequestered
Carbon.--The Secretary shall provide carbon shares that are in excess
of the aggregate quantity established under subsection (a)(2) to each--
(1) operator of a carbon capture and storage facility, in a
quantity that corresponds to the quantity of fossil carbon
verifiably sequestered by the carbon capture and storage
facility in compliance with each appropriate law (including
regulations);
(2) operator of an oil or gas reinjection project, in a
quantity that corresponds to the quantity of reinjected covered
fossil carbon; and
(3) manufacturer that embeds fossil carbon in the products
produced by the manufacturer in--
(A) a manner that prevents the emission of the
fossil carbon into the atmosphere for a period of time
that is sufficient to prevent any negative impact on
the climate; and
(B) a quantity that corresponds to the aggregate
quantity of covered fossil carbon embedded in the
products.
(d) Adjustment for Voluntary Carbon Reduction Market.--
(1) In general.--The Secretary shall reduce the aggregate
quantity of carbon shares established under subsection (a)(2)
for all verifiable reductions of fossil carbon emissions
attributable solely to voluntary carbon reduction purchases.
(2) Quantity.--The aggregate quantity of carbon shares
established under subsection (a)(2) shall be reduced by an
amount equal to the product obtained by multiplying--
(A) the corresponding quantity of fossil carbon
emission reductions that are attributable solely to
voluntary carbon reduction purchases; and
(B)(i) if the market price of the voluntary carbon
reduction purchases is not less than the market price
of the corresponding carbon shares (as determined by
the most recent auction described in subsection (b)),
1; or
(ii) if clause (i) does not apply, the quotient of
the market price of the voluntary carbon reduction
purchases and the market price of the corresponding
carbon shares (as determined by the most recent auction
described in subsection (b)).
(3) Verification.--The quantity of carbon shares determined
under paragraph (2) shall be verified by the Federal Energy
Regulatory Commission.
(e) Contractual Treatment of Carbon Shares.--
(1) Litigation reduction.--A carbon share surrendered for
fossil carbon produced by an oil or natural gas well shall be
considered to be a lifting expense.
(2) Cost allocation.--With respect to any long-term, fixed-
price delivery contract entered into before the date of
enactment of this Act, the duration of which is longer than 1
year, there shall be a rebuttable presumption that--
(A) this Act makes performance of the contract
impracticable; and
(B) each party that entered into the contract
assumed at the time of bargaining that the effects of
this Act would not occur.
(f) Carbon Refund Trust Fund.--
(1) In general.--There is established in the Treasury of
the United States a trust fund to be known as the ``Carbon
Refund Trust Fund'', consisting of such amounts as may be
appropriated to the trust fund under this subsection.
(2) Transfer of auction proceeds.--There are appropriated
to the Carbon Refund Trust Fund, out of funds in the Treasury
not otherwise appropriated, an amount equal to \3/4\ of the
proceeds from auctions conducted under subsection (b).
(3) Expenditures from fund.--Amounts in the Carbon Refund
Trust Fund shall be available for the purpose of making energy
security dividends as provided in section 5.
SEC. 5. PER CAPITA DISTRIBUTION OF AUCTION PROCEEDS.
(a) In General.--Every qualified individual is eligible to receive
an energy security dividend for each month beginning with the first
month after such individual becomes a qualified individual and ending
with the last full month prior to an individual ceasing to be a
qualified individual.
(b) Administration.--
(1) Energy security dividends.--To provide an energy
security dividend to each qualifying individual, the Secretary
shall coordinate with--
(A) the Commissioner of Social Security;
(B) the Secretary of Energy;
(C) the Secretary of Agriculture;
(D) the Secretary of Health and Human Services;
(E) the head of any other appropriate Federal
agency, as determined by the Secretary; and
(F) the Governor or appropriate official of--
(i) each State;
(ii) the District of Columbia; and
(iii) each territory and possession of the
United States.
(2) Cost-effective mechanism requirement.--To distribute
energy security dividends, the Secretary shall use the most
cost-effective mechanism, including any public benefit program
or electronic delivery mechanism administered by--
(A) the Federal Government; or
(B) any State.
(3) Privacy guarantee requirement.--The Secretary shall
guarantee--
(A) the protection of the privacy of every
qualified individual; and
(B) that any personal information of a qualified
individual shall be used by the Secretary only to
ensure the accurate distribution of energy security
dividends.
(4) Dividend taxation.--Any amount received from the
receipt of an energy security dividend shall be excluded from
gross income under the Internal Revenue Code of 1986.
(c) Frequency and Mode of Allocation of Energy Security
Dividends.--The Secretary may modify the frequency or mode of
allocation of energy security dividends--
(1) to minimize administrative costs associated with the
program; or
(2) to increase the value of energy security dividends.
(d) Monitoring; Annual Reports.--
(1) Monitoring.--Effective beginning January 1, 2012, the
Administrator of the Energy Information Administration shall,
on a monthly basis, calculate and record the incremental
contribution of carbon share prices to wholesale and retail
fossil fuel prices.
(2) Annual reports.--Not later than June 1, 2013, and
annually thereafter, the Administrator of the Energy
Information Administration shall prepare and post on the
website of the Energy Information Administration a report that
contains, for the period covered by the report, the results of
the monitoring carried out by the Administrator of the Energy
Information Administration under paragraph (1).
(e) Energy Efficiency Consumer Loan Program.--As soon as
practicable after the date of enactment of this Act, the Secretary
shall establish a program that enables a qualifying individual to
borrow against any future energy security dividend to the qualifying
individual to enable the qualifying individual to make investments in
approved energy efficiency or clean energy technologies and services
that would, within a reasonable time period--
(1) result in a reduced energy bill for the qualifying
individual; and
(2) reduce greenhouse gas emissions.
(f) Office of Consumer Advocacy.--
(1) Establishment.--As soon as practicable after the date
of enactment of this Act, the Secretary shall establish in the
Department of the Treasury an Office of Consumer Advocacy to
serve as an advocate for the public interest of energy
consumers.
(2) Duties.--The Office of Consumer Advocacy may--
(A) represent (and appeal on behalf of) residential
and small commercial customers of energy;
(B) monitor and review energy customer complaints
and grievances; and
(C) investigate, collect data, and report on
matters relating to the manner by which this Act
impacts rates charged or services provided by public
utilities and natural gas companies.
SEC. 6. CLEAN ENERGY REINVESTMENT TRUST FUND.
(a) Establishment.--There is established in the Treasury of the
United States a revolving fund, to be known as the ``Clean Energy
Reinvestment Trust Fund'' or the ``CERT Fund'', consisting of such
amounts as are appropriated to the Fund under subsection (b).
(b) Transfers to Fund.--
(1) In general.--There are appropriated to the CERT Fund,
out of funds in the Treasury not otherwise appropriated,
amounts equivalent to--
(A) \1/4\ of the proceeds from auctions conducted
under section 4(b)(1) and all of the proceeds under
section 4(b)(4)(C);
(B) the amount of penalties transferred to the CERT
Fund under section 4(a)(5)(E); and
(C) the amount of fees transferred to the CERT Fund
under section 4(a)(6)(D).
(2) Investment of corpus.--Rules similar to the rules of
section 9602(b) of the Internal Revenue Code of 1986 shall
apply for purposes of this section.
(c) Expenditures From Fund.--
(1) In general.--To the extent that budget authority and
appropriations are made available in advance and subject to
paragraph (2), amounts in the CERT Fund shall be used to carry
out programs and initiatives (including allocation to the CERT
Fund to support financing programs designed or administered by
the Clean Energy Deployment Administration), provide
incentives, and make loans and grants--
(A) to provide targeted and region-specific
transition assistance to workers, communities,
industries, and small businesses of the United States
experiencing the greatest economic dislocations due to
efforts to reduce carbon emissions and address climate
change and ocean acidification;
(B) to provide targeted and region-specific
compensation for early retirement of carbon-intensive
facilities, machinery, or related assets in the United
States that are stranded by new market dynamics;
(C) to provide targeted and region-specific
mitigation and adaptation assistance to residents,
communities, industries, and small businesses of the
United States that experience the greatest demonstrable
negative impacts from climate change;
(D) subject to the criteria described in section
4(a)(7)(C), to provide targeted relief to energy-
intensive industries (including agriculture and
forestry industries) that export goods or products to
countries that do not have similar restrictions on
fossil carbon;
(E) to support training and development programs to
prepare United States workers for careers in energy
efficiency, renewable energy, and other emerging clean
technology industries;
(F) to curtail the emission of--
(i) greenhouse gases other than carbon
dioxide from fossil carbon; and
(ii) nongreenhouse gas substances that
exacerbate or accelerate climate change
(including black carbon);
(G) to fund cost-effective domestic and
international projects that verifiably reduce, avoid,
or sequester greenhouse gas emissions through the
modification of agriculture, forestry, or other land
use practices;
(H) to ensure sustained and robust investments in
clean energy and fuels research, development, and
deployment activities;
(I) to fund projects or initiatives that verifiably
increase energy efficiency or energy productivity;
(J) to fund programs that provide financial support
for low-income families that experience difficulty
paying high seasonal utility bills;
(K) to fund projects or initiatives that support
residential fuel switching (with priority given to
projects or initiatives relating to home heating oil);
(L) to provide matching grants to low-income energy
efficiency consumer loan recipients;
(M) to carry out weatherization and improve energy
efficiency of low-income and public buildings;
(N) to provide funding for climate change or ocean
acidification mitigation and adaptation projects,
activities, and research to increase the resilience of
human populations and communities, fish and wildlife,
and managed and unmanaged terrestrial, aquatic, and
marine ecosystems in areas at which impacts are likely
to be most severe;
(O) to provide funding for programs that protect or
advocate for energy consumers (including the Office of
Consumer Advocacy established under section 5(f)); and
(P) to ensure that the program does not contribute
to the budget deficit of the Federal Government.
(2) Use.--Amounts in the CERT Fund shall--
(A) only be used for the purposes described in
paragraph (1);
(B) be allocated to ensure compliance with the
standards established by section 3(b), including
meeting reasonable interyear emissions reduction
standards;
(C) to the extent practicable, be awarded--
(i) on a competitive-bid basis; and
(ii) in accordance with applicable laws
(including regulations) and procedures of
existing Federal programs; and
(D) to the extent practicable, complement and
leverage existing Federal programs, the scope and
mission of which complement the purposes described in
paragraph (1).
(d) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the CERT Fund under this section shall be transferred at least
monthly from the general fund of the Treasury to the CERT Fund
on the basis of estimates made by the Secretary.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior estimates
were in excess of or less than the amounts required to be
transferred.
SEC. 7. SENSE OF THE SENATE.
It is the sense of the Senate that--
(1) the goals of this Act are complemented and supported by
policies and incentives, appropriated programs, and pending
legislative proposals, including--
(A) Federal and State renewable energy standards;
(B) energy tax credits;
(C) energy efficiency standards for buildings and
household appliances; and
(D) vehicle fuel economy standards;
(2) the Federal Government should take further action to
reduce the risks associated with greenhouse gas emissions,
especially greenhouse gas emissions not derived from fossil
carbon;
(3) climate change is a global problem that requires a
global solution, and action by the United States alone or by a
coalition of developed nations will not--
(A) adequately address the risks associated with
greenhouse gas emissions; or
(B) solve the global energy problem; and
(4) international trade and climate policy agreements are
the most effective instruments by which to address concerns
about carbon leakage and international trade competitiveness.
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