substantial assistance in compiling this summary.

Transcription

1 WRI Summary f The American Pwer Act (Kerry-Lieberman Discussin Draft) Jhn Larsen, 1 James Bradbury, Alexia Kelly, Allisn Bishins and Micah Ziegler 2 This summary prvides a cncise verview f the American Pwer Act (here in referred t as the APA 3 ) released as a discussin draft by Senatrs Jhn Kerry and Jseph Lieberman n May 12, The APA is a cmprehensive energy and greenhuse gas reductin bill cnsisting f seven titles: Title I, Dmestic Clean Energy Develpment Title II, Greenhuse Gas Pllutin Reductin Title III, Cnsumer Prtectin Title IV, Jb Prtectin and Grwth Title V, Internatinal Climate Change Activities Title VI, Cmmunity Prtectin frm Glbal Warming Impacts Title VII, Budgetary Effects This summary rughly fllws the structure f the bill. In sme cases this summary deviates frm this structure and grups tgether related cmpnents t facilitate understanding. Fr a detailed review f allwance value distributin under the APA please see Appendix A. Fr mre infrmatin n specific cmpnents f the APA, please refer t the actual legislative language as referenced by sectin and page number in this dcument. 5 NUCLEAR Expedite Nuclear Regulatry Prcess: Applicatin: Nuclear Regulatry Cmmissin (NRC) must establish an expedited applicatin prcedure cmbining cnstructin and peratin licensing fr qualified new nuclear reactrs f pre-apprved designs, n sites f existing reactrs, and with sufficient financial cmmitment (Sec. 1101, pg. 15). Eliminates requirement fr certain mandatry public hearings n uncntested issues and makes hearings ptinal and/r by-request-nly fr cnstructin permits and cmbined cnstructin and perating licenses fr prductin and utilizatin facilities. Fr uranium enrichment facilities, remves n the recrd requirement fr hearings and requires a hearing nly upn request. Applies these rules als t currently pending applicatins (Sec. 1105, pg. 28). Restricts NRC s ability t review facilities befre peratin. Remves the requirement that the prescribed acceptance criteria must be met prir t peratin f a facility issued a cmbined license (Sec. 1108, pg 33). Envirnmental impact statement: Amends the Atmic Energy Act f 1954 t require that a secnd envirnmental impact statement (EIS) fr a cmbined license fr a facility with an 1 Inquiries can be directed t Jhn Larsen, ; JLarsen@wri.rg 2 The authrs are grateful t Nathan Sandwick fr his input and Suchita Mathur and Aliza Wasserman fr their substantial assistance in cmpiling this summary. 3 References t the American Pwer Act in this summary shuld nt be cnfused with the Administrative Prcedure Act. 4 This summary applies nly t the APA as released and nt subsequent iteratins. 5 Page numbers apply t the APA as released and available here: 1

2 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) early site permit shuld supplement the EIS prepared fr the early site permit with new and significant infrmatin (Sec. 1109, pg. 34). Financial Supprt: Lan guarantees: Increases frm $18.5 t $54 billin the amunts reserved fr nuclear pwer facilities under current lan guarantee prgrams and cllects lan guarantee retentin fees frm applicable nuclear plants (Sec. 1102, pg. 18). Financial assistance fr pwer plant delays: Expands eligibility fr financial assistance in the event f nuclear pwer plant delays; expands the cverage (100 percent fr all reactrs) and adds a limit f $500 millin per cntract (Sec. 1103, pg. 22). Suspends imprt tariffs n nuclear facility cmpnents, with a fcus n cmpnents rdered in 2010 and entered befre 2020 (Sec. 1111, pg. 35). Tax benefits t nuclear pwer plants. Prvides several tax benefits including accelerated cst recvery thrugh a depreciatin deductin (Sec. 1121, pg. 38). Investment tax credits fr cnstructin f nuclear pwer facilities perating befre 2025, expanded eligibility fr prductin tax credits and grants in lieu f tax credits, t public pwer prviders r cperative electric cmpanies fr new facilities (Sec and 1126, pg ). Research and Reprts: NRC must reprt t Cngress n 1) develping technlgy-neutral guidelines fr nuclear plant licensing; 2) recmmending prcedures that wuld enable the NRC t pursue factbased, transparent, expeditius decisins (Sec. 1101, pg. 16) and 3) the status f nuclear facility licensing and recmmendatins t ensure expeditius review and prcessing f licensing applicatins (Sec. 1103, pg. 24). Requires the Department f Energy s (DOE) Nuclear Energy Research Initiative t research methds t lwer the cst f nuclear reactr systems (Sec. 1107, pg. 31) Directs DOE t designate a spent fuel recycling R&D center f excellence. DOE t designate a natinal labratry t lead R&D n nuclear fuel cycles and technlgies t reduce waste and prevent prliferatin (Sec. 1104, pg. 26). NRC Cmmissiners: Cmmissiners may cntinue in service until anther is appinted r an entire sessin f Cngress has passed (Sec. 1106, pg. 30). OIL & GAS PRODUCTION AND REFINING Envirnmental Prtectins and Revenues: O Establishes a mratrium n new ffshre drilling until the cause f the Deepwater Hrizn explsin is knwn and the Department f Interir (DOI) determines that it is safe t cntinue prpsed drilling plans (Sec. 1201, pg. 61). O A prtin f drilling revenue will be invested in prtectin and restratin f ceans and castlines. Requires liability mechanisms t ensure adequate funds fr mitigating envirnmental and ecnmic impacts f ffshre drilling accidents; accelerates investments in respnse capacities (Sec. 1201, pg. 62). A cnservatin ryalty f 12.5 percent f the federal revenue frm all leased ffshre lands will be paid t the land and water cnservatin fund (Sec. 1202, pg. 67). O Mandates new safety measures fr wrkers and cean ecsystems and new studies f mitigatin prcedure effectiveness (Sec. 1201, pg. 62). O States maintain authrity t vet ffshre drilling plans if they are at risk fr significant adverse impacts frm a spill r if the tract is within 75 miles f their cast (Sec. 1201, pg. 62, Sec. 1204, pg. 72, and Sec. 1205, pg. 75). O The Cmmerce Department must cnduct an envirnmental impact assessment f il spill risks fr tracts that are eligible fr state revenue sharing and are part f the five-year uter cntinental shelf il and gas leasing prgram (Sec. 1205, pg. 74). Sharing f Ryalty Revenue Payments: O Eligible castal states clsest t ffshre leased tracts will receive 37.5 percent f rental and ryalty payments, up t $500 millin annually per state (Sec. 1202, pg. 67). Funds are t be used fr castal prtectins and accident respnse (Sec. 1201, pg. 62). O Half f federal ryalties, after payments t states and cnservatin fund, are dedicated t deficit payments (Sec. 1202, pg. 68). 2

3 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) O Ryalties frm the Alaskan adjacent zne will be integrated int this system five years after ffshre drilling revenue sharing ges int effect, with significant percentages paid t Alaskan native tribes clsest t the drilling sites (Sec. 1203, pg. 68). Refinery Allcatin: Prvides emissin allwance rebates t petrleum refineries fr each calendar year between 2013 and Rebates are distributed t individual refineries based n each facility s share f utput and emissins intensity, relative t the sectr average during the previus fur calendar years, such that relatively mre allwances wuld be distributed t larger and mre greenhuse gas emissins-intensive (including less efficient) facilities (Sec [new sec. 796 f the CAA 6 ], pg. 823). COAL Natinal Strategy fr Carbn Capture and Sequestratin (CCS): Directs federal agencies t establish and reprt n a unified strategy t address key legal, regulatry and ther barriers t cmmercial-scale CCS deplyment (Sec. 1401, pg. 76). Establishes an interagency and multi-stakehlder task frce t study and reprt t Cngress n existing laws that apply t carbn dixide strage; mdels fr assuming liability and financial respnsibility and fr managing risks frm clsed gelgical strage sites; and relevant mineral, water and prperty rights issues (Sec. 1402, pg. 78). Directs the Envirnmental Prtectin Agency (EPA) t study and reprt n envirnmental laws fr which they are respnsible that wuld apply t CO 2 injectin and gelgical strage (Sec. 1402, pg. 79). Special Funding Prgram fr CCS Develpment and Deplyment: Cntingent n the apprval f at least 30 state regulatry authrities directs the DOE t establish a prgram t supprt develpment and deplyment f CCS and carbn cnversin technlgies (Sec. 1412, pg. 83). Prgram supprt fr large-scale (>300 MW) prjects t accelerate the cmmercial availability f CCS technlgies and methds (Sec. 1414, pg. 96); ensures that funded prjects demnstrate a variety f cmmercial-scale technlgies that, amng ther requirements, culd result in a capture f emissins frm the generatin f at least 10 gigawatts (Sec. 1414, pg. 97). Revenue fr the prgram t be generated by a charge assessed n all fssil fuel-based electricity sld by electric utilities t industrial and cmmercial custmers. Charge t reflect the carbn intensity f electricity by each utility and adjusted t generate between $2 billin and $2.1 billin per year (Sec. 1415, pg. 101). Incentives fr Cmmercial Deplyment f CCS: Directs the EPA t prmulgate regulatins fr distributing emissins allwances (see Appendix A) t supprt cmmercial deplyment f CCS fr electricity generatin and industrial peratins, during their first ten years f peratin (Sec [new sec. 794 f the CAA], pg. 111). Eligible prjects and facilities include electricity generating units (EGUs) fueled by cal r petrleum cke at least 50 percent annually with CCS technlgy applied t nt less than 200MW f capacity and industrial surces that wuld therwise emit mre than 50,000 tns f CO 2 per year (Sec [new sec. 794 f the CAA], pg. 112). Eligible EGU r industrial prjects must meet permitting requirements, be lcated in the US, gelgically r therwise permanently sequester the CO 2, and achieve at least 50% reductin in CO 2 emissins annually, r fr EGU retrfits reduce emissins by 50% f the treated prtin f flue gas (Sec [new sec. 794 f the CAA] pg. 114). Review f CCS Technlgy Deplyment: Directs the Cmptrller General t study and reprt n the state f CCS technlgy and barriers t its deplyment if allwances allcated fr cmmercial CCS deplyment are becming insufficient and 72 GW f CCS-equipped capacity have nt been installed, r by Based n the results f this study, the EPA may increase the quantity f allwances allcated t CCS deplyment by up t 2.5 percent f the ttal quantity established fr the year; Cngress has 90 days t verride r revise the allwance adjustment (Sec [new sec. 789 f the CAA], pg. 168). 6 CAA refers t the Clean Air Act 3

4 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Retrfit r Replacement f Existing Cal-Fueled Pwer Plants Offers incentives t existing cal-fueled pwer plants deriving at least [85] percent f annual heat input frm cal r petrleum cke and nt subject t the new perfrmance standards with the bjective f reducing greenhuse gas emissins and increasing efficiency (Sec [new sec. 802 f the CAA], pg. 179). Task-Frce Study and Reprt: Establishes an interagency, multi-stakehlder taskfrce t study and reprt including any cnsensus recmmendatins n (Sec [new sec. 802 f the CAA], pg. 182): Existing envirnmental prgrams that may affect the transitin r retirement f existing cal-fueled plants (Sec [new sec. 802 f the CAA], pg. 182). The effects f exempting units frm current additinal pllutant cntrl (required by the CAA s existing unit perfrmance standards, hazardus air pllutants standards, and frm definitin as majr emitting facility) n the ability t significantly reduce greenhuse gas emissins perating after [xx] and cmmitting t permanently cease peratins befre [xx], them (Sec [new sec. 802 f the CAA], pg. 183). The effect federal regulatins being develped t cntrl nn-greenhuse gas air pllutants might have n pwer plant emissins, attainment f air quality standards, and transitin f cal-fueled plants, and existing envirnmental prgrams (Sec [new sec. 802 f the CAA], pg. 183). Financial incentives, including tax incentives in additin t thse authrized, award f additinal allwances fr retirement, fr early clsure and regulatry changes that wuld facilitate transitin r retirement (Sec [new sec. 802 f the CAA], pg. 184). The effect n emplyment in the energy sectrs and amelirating actins (Sec [new sec. 802 f the CAA], pg. 184). Directs the EPA, DOE, and Treasury t respnd t the study. Respnse can include implementatin, by accelerated regulatin, f ne r mre f the study s cnsensus recmmendatins (Sec [new sec. 802 f the CAA], pg. 186). Allwances t Incentivize Retiring r Repwering Merchant Cal-Fueled Pwer Plants: EPA t prvide incentives t imprve efficiency and reduce carbn intensity f the merchant calfueled, electricity generatr fleet. By 2014, wners/peratrs must ntify the EPA f their intent t retire r repwer merchant cal unit. After the permanent clsure r repwering, the EPA shall issue emissins allwances equal t ne half f the unit s annual base-perid emissins, phased dwn based n time after clsure. Incentives may be prvided t n mre than 35 GW f capacity (Sec [new sec. 798 f the CAA], pg. 531). RENEWABLE ENERGY AND ENERGY EFFICIENCY Cngressinal Finding: Cngress finds that measures are needed t accelerate renewable energy deplyment and energy efficiency, including a clean and renewable energy mandate, innvative mechanisms t fund renewable and clean energy deplyment, electric transmissin prvisins t help cnnect renewable resurces t lad centers, imprved building cdes and imprved appliance standards (Sec. 1601, pg. 188). State Allwances fr Renewable Energy and Energy Efficiency: Allcates 2 percent f allwances fr the years , declining t zer by 2022 t states fr: imprving energy efficiency (e.g., imprvements t building cdes and lw-incme building, retrfits f existing buildings); deplying renewable energy technlgies fr the generatin f electricity r thermal energy; enabling smart-grid develpment (including distributed generatin, demand respnse and demand-side management); nt mre than 10 percent t be spent n nn-federal share f surface transprtatin capital prjects, mstly fr public transprtatin imprvement and special needs access (Sec. 1603, pg. 200). Rural Energy Savings Prgram: USDA t administer federal lan prgram (funded by 1 percent f allwances fr the years , up t $1 billin cumulatively) fr qualified public utility districts and electric cperatives prviding 10-year lans and quick-start grants fr custmer investments in energy efficiency measures that reduce hme energy use (includes auditing prcedures t ensure effective implementatin) (Sec. 1602, pg. 188). 4

5 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Lw-Carbn Industrial Technlgies R&D: Within 180 days f enactment, the Cmmerce Department will establish an R&D institute fr immediate and lng-term technlgies (funded by 1 percent f allwances fr the years , declining t zer by 2022) t help dmestic manufacturing becme mre efficient, cmpetitive, and reduce their emissins. The Cmmerce Department will manage intellectual prperty rules and partner with DOE t supprt industry cllabratin, facilitate jb creatin, and prmte rapid adptin f innvatins arising frm the R&D institute (Sec. 4161, pg. 889). Vluntary Renewable Energy Markets: Prvides a statement f plicy that nthing in the APA is intended t interfere with r prevent the grwth f vluntary U.S. renewable energy markets. U.S. Cmptrller General must reprt t Cngress in tw years n the efficacy f the vluntary renewable energy market at reducing dmestic greenhuse gas emissins including recmmendatins (Sec. 1604, pg. 206). Research and Develpment: DOE must distribute 2 percent f allwances fr the years n a cmpetitive basis t higher educatin, cmpanies, research fundatins, and similar entities t advance research, develpment and deplyment f a brad range f clean energy technlgies, taking int accunt the gals f Advanced Research Prjects Administratin - Energy (ARPA-E), and supplementing, nt supplanting, ther federal resurces (Sec. 1801, pg. 258). Renewable Bimass: Exempts frm cverage under the cap emissins frm the cmbustin f renewable bimass r derived fuel (Sec [new sec. 722 f the CAA], pg. 325), including a brad range f rganic matter (plants, waste and wd residues surced frm any nn-federal r Indian lands; sme materials frm federal lands such as pre-cmmercial thinning and invasive species, but nt bimass surced frm radless areas, wilderness study areas, natinal parks and ther sensitive lands) (Sec [new sec. 700 f the CAA], pg. 486). Review: requires reprts by Natinal Academy f Sciences, and a jint scientific review (including respectively the EPA and USDA fr nn-federal lands and EPA, USDA and DOI fr federal lands) f cntributin f renewable bimass t energy independence and greenhuse gas reductin with recmmendatins t Cngress fr pssible legislative mdificatins (Sec [new sec. 809 f the CAA], pg. 673). O Studies: EPA, in cnsultatin with DOI and USDA, must cnduct peridic studies and reprt t Cngress n hw bimass is used fr fuel cnsidering net greenhuse gas emissins and envirnmental and cnservatin factrs and impacts n supply and cst f fd and the agriculture industry, with plicy recmmendatins cncerning abve exemptin (Sec [new sec. 808 f the CAA], pg. 671). TRANSPORTATION Transprtatin Efficiency: Greenhuse gas emissin reductins: EPA, in cnsultatin with DOT must set natinal transprtatin-related greenhuse gas emissin reductin gals and supprt mdeling, data cllectin methds and greenhuse gas baselines t measure and manage prgress twards meeting these gals (Sec [new sec. 803 f the CAA], pg. 211). Requires Metrplitan Planning Organizatins (MPOs) representing cities with greater than 200,000 ppulatin t engage in transprtatin planning prcess t address transprtatin-related greenhuse gas emissins by including emissin reductin targets and plans t meet targets. Each plan shall demnstrate prgress in reducing greenhuse gas emissins s as t achieve state reductin targets. Plans that meet DOT requirements will be eligible fr grant funding t supprt greenhuse gas reductin effrts (Sec [new sec. 803 f the CAA], pg. 219). Transprtatin greenhuse gas reductin effrts in states: Establishes transprtatin greenhuse gas emissin planning prcess, cnsistent with requirements fr MPOs. State transprtatin plans must be develped in crdinatin with all MPOs required t prduce greenhuse gas plans, state transprtatin and air quality agencies, representatives frm lcal husing, ecnmic develpment and land use agencies and Indian tribes (Sec [new sec. 803 f the CAA], pg. 236). Investing in transprtatin greenhuse gas emissins reductin prgrams: Annual allwances t states and MPOs supprt the develpment and updating f transprtatin 5

6 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) greenhuse gas reductin targets and strategies, prvide financial assistance t implement apprved plans (Sec. 1712, pg. 253). Augmenting the Highway Trust Fund (HTF): HTF receives funding thrugh the distributin f allwances t prmte the safety, effectiveness and efficiency f transprtatin in the United States thrugh measures that are cnsistent with transprtatin efficiency planning under sectin 803 f the CAA and ther relevant prvisins f the law (Sec [new sec. 785 f the CAA], pg. 258). Transprtatin Technlgy: Investing in clean vehicles: Allcates allwances t Clean Vehicle Technlgy Fund, an EPA/DOT managed grant prgram t reequip r expand idle dmestic manufacturing facilities lcated in areas with experienced autmtive wrkfrce t prduce advanced technlgy vehicles and cmpnents. Minimum amunts f grant funding are directed twards plug-in vehicle technlgies, alternative technlgy vehicles, plug-in vehicles, hybrids, medium- and heavy-duty vehicles, and public transit (Sec. 4111, pg. 846). Pwering vehicles with natural gas: Ten-year tax incentives fr qualified natural gas vehicles, including cnverted vehicles. Amends Internal Revenue Cde fr natural gas vehicle bnds fr gvernmental bdies, subject t a natinal limitatin f $3 billin. Prvides incentives fr qualified natural gas vehicle manufacturing facilities (Sec , pg ). Electric Vehicle Infrastructure: Natinal Transprtatin Lw Emissins Energy Plan (NTLEEP): DOT must develp a plan that: prjects near- and lng-term needs fr electric vehicle infrastructure; establishes a gal f achieving strategic deplyment f such infrastructure by 2020, priritizes develpment f standardized charge prts (Sec. 1701, pg. 208). Pilt prjects: fllw plan with pilts in different regins (including at least ne rural and ne freight prject t determine reginal readiness (Sec. 1701, pg. 209). CLIMATE CHANGE POLLUTION REDUCTION TARGETS AND TIMETABLES 7 Gals and Caps: Sets bth a nn-binding ecnmy-wide greenhuse gas emissins reductin gal (Sec [new sec. 702 f the CAA], pg. 265) and a mandatry cap n cvered greenhuse gases (Sec [new sec. 703 f the CAA], pg. 266, [new sec. 721 f the CAA], pg. 310). The targets fr bth the ecnmy-wide emissin reductin gals and fr the primary cap n cvered surces are as fllws: 2013: 4.75 percent belw 2005 emissin levels (~11 percent abve 1990 emissins levels) 2020: 17 percent belw 2005 (~7 percent belw 1990) 2030: 42 percent belw 2005 (~33 percent belw 1990) 2050: 83 percent belw 2005 (~80 percent belw 1990) The cap brings in cvered surces in tw phases frm 2013 thrugh 2016 (see Pint f Regulatin). A Cnsumptin 8 Cap n All HFCs: Title VI f the CAA is extended t apply t HFCs by setting a maximum annual allwable amunt f cnsumptin. Reductin amunts are relative t average U.S. HFC cnsumptin levels between 2004 and 2006 (Sec [new sec. 619 f the CAA], pg. 533) as fllws: 2013: 12.5 percent belw 2020: 33 percent belw 2030: 75 percent belw 2033 and nward: 85 percent belw Onging Review: Requires a peridic inter-agency review f climate science, dmestic and glbal emissin reductins, technlgy develpment and deplyment and mnitring, verificatin and reprting f emissin reductin actins (Sec [new sec. 705 f the CAA], pg. 267). 7 See WRI s frthcming analysis f emissin reductins under the APA, available here: 8 Cnsumptin = Prductin + Imprts - Exprts 6

7 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Study f Nn-CO 2 gases: Interagency prcess will review existing and ptential plicies t prmte fast mitigatin f nn CO 2 greenhuse gases, reprting t Cngress in nt later than tw years and prviding recmmendatins n further steps n fast mitigatin strategies (Sec. 2231, pg. 617). POINT OF REGULATION, EMISSIONS REPORTING AND COVERAGE Cvered Gases: Five Kyt gases (nt HFCs, see abve) plus NF 3 with the EPA authrized t add additinal greenhuse gases in the future and t regulate PFCs and certain ther substances under a separate prgram (Sec [new sec. 711 f the CAA], pg. 280, [new sec. 714 f the CAA], pg. 306). Mandatry Reprting: Required by 2011 fr all prir years thrugh Quarterly reprting is required beginning in All cvered entities plus ther types f entities specified in the APA are required t reprt (Sec [new sec. 713 f the CAA], pg. 291). Pint f Regulatin: Uses hybrid apprach with surces phased in ver a 4-year time frame (see definitins Sec [new sec. 700 f the CAA], pg. 469, Sec [new sec. 722 f the CAA], pg. 324). O Cvered in 2013: The APA assumes the cap cvers 66.2 percent f ttal U.S. emissins during this phase 9. All electric pwer generatrs (dwnstream) nt including emissins frm renewable bimass (fr details: see Clean Energy sectin f this summary). Natural gas liquid-, petrleum-, and cal-based refined prduct prviders nt including prducts sld t electric pwer and industrial surces. Prducers and imprters f flurinated gases (upstream) and ther manufactured greenhuse gases except HFCs and ptentially PFCs and certain ther substances if regulated under ther prvisins. Certified gelgic strage sites. O Added t cverage in 2016: The APA assumes the cap cvers 84.5 percent f ttal U.S. emissins during this phase 9. Industrial surces (dwnstream) that annually emit 25,000 tns r mre, nt including renewable bimass cmbustin emissins, plus all surces (regardless f size) in select sectrs (e.g., cement, petrleum refining and silicn carbide prductin). Natural gas lcal distributin cmpanies (LDCs) (midstream) that deliver mre than 460,000,000 cubic feet f gas annually t nn-cvered entities. Emissins that result frm sales are regulated with measures t prevent duble cunting. Cmpliance Obligatin: All regulated entities must hld cmpliance instruments (e.g. allwances) in an amunt equal t their cvered emissins in each cmpliance year: O Prvisins fr refined prduct prducers: Prducers f refined prducts must purchase allwances set aside by the EPA at a fixed price set by the quarterly auctin clearing price. Refined prduct prducers may nt any cmpliance instrument (including ffsets) ther than allwances purchased thrugh this prvisin and such allwances may nt be sld, banked r traded (Sec [new sec. 729 f the CAA], pg. 361). O Prvisins fr all ther entities: All ther entities may use allwances, internatinal allwances, ffsets r cst cntainment reserve allwances fr cmpliance (Sec [new sec. 722 f the CAA], pg. 324). CARBON MARKET ASSURANCE AND OVERSIGHT Cmmdities Futures Trading Cmmissin (CFTC): The CFTC has regulatry authrity ver allwance and ffset markets and allwance derivative markets. CFTC must set rules and requirements t achieve the fllwing with regards t markets fr greenhuse gas instruments (such as allwances, ffsets and derivatives) (Sec. 2402, pg. 631): 9 Legislative assumptins f emissins cverage are cnsistent with WRI estimates. 7

8 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Regulate greenhuse gas instruments in the same manner as agricultural cmmdities (Sec. 2403, pg. 632). Prevent excessive market speculatin by establishing psitin limits (Sec. 2404, pg. 632). Prhibit fraud and market manipulatin (Sec. 2405, 2407, pg. 636). Restrict the trading f greenhuse gas instruments t designated exchanges cleared thrugh apprved clearing rganizatins. Restricts participatin t cvered entities and registered market participants. Free trading is permitted fr any cntracts that d nt prvide fr physical delivery f greenhuse gas instruments (Sec. 2408, pg. 637). Use new emergency and market suspensin authrities t prtect the public interest in the event f a market emergency (Sec. 2413, pg. 655). ALLOWANCE VALUE DISTRIBUTION Fr a detailed review f allwance value distributin bth by distributin methd (auctin r allcatin) and purpse please see Appendix A f this summary. Auctin Prcedure: Quarterly auctins beginning n later than March 2012 fr designated allwances. Auctins pen nly t cvered entities and regulated greenhuse gas market participants. A reserve price is established fr all regular auctins initially set at $12/tnne increasing at 3 percent abve inflatin in each subsequent year. Any allwances nt sld at auctin at the end f each calendar year shall be depsited in the Cst Cntainment Reserve. All entities in pssessin f allwances may request that the EPA sell their allwances n cnsignment (Sec [new sec. 790 f the CAA], pg. 518). Distributin f Value: Distributes allwance value in a number f ways t supprt varius existing and newly established federal and state prgrams; benefit energy cnsumers; and distribute value t regulated entities fr free. The amunt f value directed t varius purpses changes ver time. (Sec [new sec f the CAA, pg ). Carryver: If allwances allcated t certain purpses (including CCS deplyment and allwances t industry) are nt all distributed in a vintage year, the EPA shall use the undistributed allwances t increase, fr the same vintage year, the allcatin f allwances t be auctined. In the fllwing vintage year, the allcatins t these prgrams are decreased by the same amunt as they were increased the previus year, and thse allwances are allcated fr the purpse fr which the undistributed allwances were riginally allcated (Sec [new sec. 781 f the CAA], pg. 507). Allwance Value Distributin Limits: Allwances distributed fr certain purpses (such as the industrial energy efficiency prgram and the HTF) may be subject t an annual r cumulative upper dllar limit based n the market value f allwances. If the limit is reached befre all allwances intended fr that purpse are distributed, the remaining allwances are auctined with the prceeds directed twards deficit reductin (Sec [new sec. 781f the CAA], pg. 509). COST CONTAINMENT (OTHER THAN OFFSETS) Trading: Trading f allwances and ffsets is permitted nly between cmpliance entities and/r regulated greenhuse gas market participants. N ther entities may hld r trade allwances. The EPA must receive ntice f and recrd any transfers f cmpliance instruments. All allwances will be tracked in an allwance tracking system (Sec [new sec. 724 f the CAA], pg. 343). Banking and Brrwing: Banking: Unlimited banking f allwances (Sec [new sec. 725 f the CAA], pg. 344). Brrwing withut interest: Allwances can be used fr cmpliance fr emissins in the calendar year preceding the vintage year (e.g., fr cmpliance in 2015 a cvered entity culd use an allwance frm 2016), withut limitatin (Sec [new sec. 725 f the CAA], pg. 346). Brrwing with interest: Up t 15 percent f an entity s cmpliance bligatin can be met thrugh submissin f allwances with a vintage year 1-5 years later than that calendar year. Fr each brrwed allwance, at the time f brrwing the brrwer needs t submit additinal allwances in advance t meet an 8 percent annual interest requirement (Sec [new sec. 725 f the CAA], pg. 346). 8

9 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Cst Cntainment Reserve: Within 90 days f each annual cmpliance date, cvered entities that are nt refined prduct prviders are eligible t purchase allwances frm the cst cntainment reserve at a set price (Sec [new sec. 726 f the CAA], pg. 347). Filling the reserve: The reserve will be filled n later than tw years f date f enactment with 1.5 percent f allwances frm each year frm 2013 thrugh 2021, 2.5 percent f allwances frm each year frm 2022 and 2029 and 5 percent f allwances frm each year frm 2030 thrugh 2050 (Sec [new sec. 726 f the CAA], pg. 348). Cst cntainment reserve price: 2013: The reserve price will be $25 per tnne : the minimum reserve auctin price shall be the previus year s reserve price, increased by 5 percent plus the rate f inflatin. Replenishing the reserve: The reserve will be replenished t its riginal size with any unsld allwances frm reserve sales r frm regular allwance auctins as well as with allwances cnverted by the EPA frm ffsets purchased using the prceeds frm cst cntainment reserve allwance sales. Purchase limits: A cvered entity may nt purchase mre than 15 percent f its cmpliance bligatin frm the reserve annually. Purchase restrictins: N entity shall purchase allwances frm the reserve within 90 days f selling an allwance r ffset; r if the entity adds t its cumulative bank f allwances during the cmpliance perid. Restrictins n use: Any allwance purchased frm the reserve may nly be used fr cmpliance in the year it is sld. Prceeds frm allwance sales: Prceeds frm auctin will be used t purchase ffset credits frm internatinal reduced defrestatin. The EPA will retire thse credits and establish emissins allwances equal t 80 percent f the number f ffset credits retired and place them int the Cst Cntainment Reserve t fill it t its riginal size. If internatinal ffsets frm reduced defrestatin are unavailable, the EPA shall purchase dmestic ffsets and cnvert them int allwances at a ne fr ne rati (Sec [new sec. 726 f the CAA], pg. 350). Internatinal Emissin Allwances: Entities may use an unlimited number f allwances frm apprved natinal and supranatinal emissins trading prgrams t meet cmpliance, althugh the EPA by rule may restrict their use (Sec [new sec. 728 f the CAA], pg. 358). OFFSETS Prgram Administratin: The Department f Agriculture (USDA) and EPA, in cnsultatin with apprpriate federal agencies, shall prmulgate regulatins establishing a prgram fr the issuance f ffset credits (Sec [new sec. 733 f the CAA], pg. 378). The USDA is designated lead agency t determine eligible ffset prject types (Sec [new sec. 734 f the CAA], pg. 383), requirements fr ffset prjects (Sec [new sec. 735 f the CAA], pg. 391), apprval (Sec [new sec. 736 f the CAA], pg. 404), and audits and review (Sec [new sec. 739 f the CAA], pg. 412) fr dmestic agriculture and frestry prjects. Prgram establishment: Nt mre than 18 mnths after enactment the EPA and USDA shall prmulgate regulatins establishing a prgram fr the issuance f ffsets. The EPA must establish an ffset registry (Sec [new sec. 733 f the CAA], pg. 378). Eligible prject types: Nt later than ne year after enactment, the USDA shall establish the initial list f eligible prject types fr which there are well develped methdlgies fr dmestic agriculture and frestry prjects, including a list f prjects expressly eligible under the APA (Sec [new sec. 734 f the CAA], pg. 383). The EPA is respnsible fr all ther dmestic ffset prject types (Sec [new sec. 733 f the CAA], pg. 382). Advisement: Establishes an independent Greenhuse Gas Emissin Reductin and Sequestratin Advisry Cmmittee t prvide guidance t the USDA and EPA n a range f tpics including prject types, areas f scientific uncertainty and acceptable qualificatin and quantificatin methdlgies. Cmmittee will cnduct a scientific review f ffset prgram by 2017 and every five years thereafter (Sec [new sec. 732 f the CAA], pg. 367). 9

10 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Prgram review: The prgram will be reviewed at least nce every five years by the EPA in cnsultatin with the USDA and revised if necessary (Sec [new sec. 741 f the CAA], pg. 421). Requirements fr Offset Prjects: Requires EPA and USDA t prmulgate standardized methdlgies within 18 mnths f a prject type being added t list. The methdlgy must include prvisins fr addressing: additinality, baseline establishment, and leakage; and must ensure that ffset credits prvide fr a reductin in net cncentratins f greenhuse gases s (Sec [new sec. 735 f the CAA], pg. 391). Limits n Offset Use: O System-level ffset limit: N mre than tw billin tns f ffsets annually may be used fr cmpliance by cvered entities (Sec [new sec. 722 f the CAA], pg. 331). The president may recmmend t Cngress whether the tw billin tn limit shuld be increased r decreased (Sec [new sec. 722 f the CAA], pg. 336). Entity-level ffset limits: Cvered entities may satisfy a percentage f their cmpliance bligatin with ffsets each year. This number is determined by the rati f an entity s cmpliance emissins t system-wide cmpliance emissins in the year tw years befre the current cmpliance year multiplied by tw billin (Sec [new sec. 722 f the CAA], pg. 332). Dmestic/Internatinal ffset limits: Of the ttal ffsets allwed, nt mre than 75 percent can cme frm dmestic r term ffsets, and nt mre than 25 percent can cme frm internatinal ffsets. If the EPA determines that less than 1.5 billin tns f dmestic ffsets at r belw allwance prices are available, the EPA shall increase the percentage f internatinal ffsets allwed up t a maximum f ne billin tns. (Sec [new sec. 722 f the CAA], pg. 335). Internatinal ffset discunt: After 2018, regulated entities must surrender 1.25 internatinal ffsets in lieu f ne allwance (Sec [new sec. 722 f the CAA, pg. 332, 336). Offset Apprval, Verificatin, Issuance and Auditing Requirements: Establishes apprval prcess fr ffsets credits (Sec [new sec. 736 f the CAA], pg. 404) and verificatin guidelines requiring third party verificatin f prjects by verifiers accredited by the EPA and USDA (Sec [new sec. 737 f the CAA], pg. 407). The USDA and EPA shall cnduct randm audits f ffset prjects and credits. May delegate audit respnsibility t states and develp methdlgies fr audit (Sec [new sec. 739 f the CAA], pg. 412). Early Actin Recgnitin: Establishes a prgram t recgnize early ffsets and early n-site reductins. Apprximately 33 percent f the allwance set aside is fr ffsets and early reductins, with the remaining 66 percent allcated t eligible state cap-and-trade prgrams. Credits issued by an EPA-apprved ffset prgram under the early ffset prvisins (Sec [new sec. 740 f the CAA], pg. 414) may be exchanged fr allwances (Sec [new sec. 788 f the CAA], pg. 512). Early Offset Supply: Vluntary and regulatry ffset prgram administratrs may apply t the EPA and USDA fr apprval as an early ffset prvider. Prgrams shall be apprved as lng as they have met several requirements included in the APA (Sec [new sec. 740 f the CAA], pg. 414). INTERNATIONAL OFFSETS Administratin: The EPA, in cnsultatin with the Secretary f State and the U.S. Administratin fr Internatinal Develpment (USAID), may issue internatinal ffset credits based n prjects that avid, reduce r sequester emissins in develping cuntries. Regulatins must be prmulgated within tw years frm date f enactment (Sec [new sec. 753 f the CAA], pg. 427). Advisement: Establishes an independent Internatinal Offsets Integrity Advisry Cmmittee t prvide guidance t the EPA n prject types and prgram envirnmental integrity (Sec [new sec. 752 f the CAA], pg. 423). 10

11 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) O Regulatin: Internatinal ffset credits may be issued nly if: 1) the United States is a party t a bilateral r multilateral agreement that includes the cuntry in which the prject has ccurred; 2) such a cuntry is a develping cuntry 10 ; 3) the agreement ensures all relevant requirements included in APA apply, and 4) the ffset prject representative is eligible t receive service f prcess in the United States (Sec [new sec. 753 f the CAA], pg. 427). Prject Surces: Offset credits may be issued fr prjects identified by the EPA under new Sec. 733 f the CAA thrugh an apprved internatinal bdy, sectral crediting mechanisms r internatinal reduced defrestatin as set ut belw (Sec. 753, pg. 430). Recgnitin f ther prgrams: The EPA can issue credits in exchange fr credits issued by an internatinal bdy established by the UNFCCC, a prtcl t such cnventin r a treaty that succeeds such a cnventin as lng as thse credits were generated thrugh a prgram that creates equal r greater assurance f the envirnmental integrity f the U.S. prgram. Beginning Jan. 1, 2016, n credits shall be issued frm sectrs identified by the EPA as eligible t prduce sectr based credits (Sec [new sec. 756 f the CAA], pg. 447). Sectr-based credits: Apprves the issuance f ffset credits based n sectral crediting mechanisms targeted at sectrs in any cuntry that: 1) has cmparatively high emissins r greater levels f ecnmic develpment r 2) wuld be subject t a cmpliance bligatin under Sectin 722 if it were lcated in the United States (Sec [new sec. 756 f the CAA], pg. 442). Offsets frm reduced defrestatin: Internatinal ffset credits are allwed nly if the activity ccurs in a cuntry identified by the EPA pursuant t the cuntry s capacity t participate in such a prgram accrding t specific criteria as established by the APA. Offset credits can be issued relative t a natinal r sub-natinal defrestatin baseline. Sub-natinal credits can nly be issued fr first five years f prgram. Prject-based credits may be included at the discretin f the EPA. (Sec [new sec. 756 f the CAA], pg. 449). DOMESTIC AGRICULTURE AND FORESTRY POLICIES AND PROGRAMS Annual Greenhuse Gas Accunting fr the Frestry Sectr: EPA, in cnsultatin with the USDA and DOI, must prvide an annual accunting f frests and frest prducts sequestratin and emissins frm federal, private and tribal lands larger than 5000 acres that are regularly used fr frestry, based n infrmatin available frm existing surces (Sec [new sec. 807 f the CAA], pg. 669). Carbn Cnservatin Fund: An unspecified amunt f allwances administered by the Secretaries f Agriculture and Interir are set aside t create incentives fr additinal activities (ther than thse qualified under the ffset prgram) in the agriculture sectr t reduce greenhuse gas emissins r sequester carbn. Cmpensatin will be based n the amunt f emissins reductins btained and the duratin f the reductins. Requires reprting f results t EPA and reviews every five years (Sec. 4152, pg. 878). Prductivity Study: The USDA must cnduct an annual assessment f the amunt f agricultural land that has been remved frm agricultural prductin due t participatin f landwners in affrestatin ffset prjects and evaluate the impact f the ffset prgram n a range f ther issues (Sec [new sec. 741 f the CAA], pg. 419). INTERACTION WITH EXISTING EPA AUTHORITY UNDER THE CLEAN AIR ACT Standards: EPA must: Regulate black carbn with cnsideratin t public health and envirnmental impacts (including glbal and reginal warming impacts) within three years; r decide, thrugh a 10 The term develping cuntry means a cuntry eligible t receive fficial develpment assistance accrding t the incme guidelines f the Develpment Assistance Cmmittee f the Organizatin fr Ecnmic Cperatin and Develpment. 11

12 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) public finding, that current CAA regulatins are adequate (Sec [new sec. 805 f the CAA], pg. 605). Set emissins standards fr heavy-duty vehicles which must reflect the greatest emissins reductins achievable giving cnsideratin t cst, energy and safety factrs (Sec [new sec. 804 f the CAA], pg. 872). Set emissin standards fr nn-rad vehicles and engines after EPA identifies which nnrad vehicles and engines cntribute significantly t ttal emissins frm that categry and prvide the greatest ptential fr significant and cst-effective reductins (Sec [new sec. 804 f the CAA], pg. 873). Set passenger vehicle emissins standards fr 2017 and beynd in cnsultatin with DOT and ther agencies that reflect the greatest emissins reductins achievable fr each vehicle year, as determined by the EPA, giving cnsideratin t cst, energy and safety factrs (Sec [new sec. 804 f the CAA], pg. 877). Set standards fr gelgic strage sites and new cal-fired pwer plants (see Cal Prvisins ). Perfrmance Standards fr New Cal-Fired Pwer Plants. Cal fired electric generating units (EGU) must meet perfrmance standards based n their initial permitting date (Sec [new sec. 801 f the CAA], pg. 172). EGUs initially permitted during r after 2020 must achieve at least a 65 percent reductin in CO 2 emissins annually, r a mre stringent standard as set by the EPA (Sec [new sec. 801 f the CAA], pg. 173). EGUs initially permitted between 2009 and 2019 (inclusive) must achieve at least a 50 percent reductin in CO 2 emissins annually by the earlier f tw cmpliance dates (either fur years after the EPA reprts that there is at least the equivalent f 10 GW f CCSapplied capacity in the US), r Jan. 1, The date may be extended t 2022 if the EPA and DOE jintly find, and Cngress apprves, that it wuld be technically infeasible t meet the standard in this timeframe. If the fallback date is used, individual EGUs may apply fr specific extensins (Sec [new sec. 801 f the CAA], pg. 177). The EPA must review these standards at least every five years after the cmpliance date and reduce the maximum CO 2 emissins rate reflecting achievable emissin limitatins thrugh the applicatin f the best system f emissin reductin taking int accunt cst and nn-air quality health and envirnmental impact and energy requirements. (Sec [new sec. 801 f the CAA], pg. 178) Extensin f CAA Title VI (stratspheric zne prtectin) t include HFCs (Sec [new sec. 619 f the CAA], pg. 533): Sets a cap n cnsumptin f HFCs with mst allwances auctined and the rest sld at fixed prices t prducers, imprters and cnsumers f HFCs (see targets and timetables sectin abve). This cap is separate frm the brader cap-and-trade prgram. (Sec [new sec. 619 f the CAA], pg. 533). Offsets frm the destructin f chlrflurcarbns (CFCs) may be used fr cmpliance in this prgram and may als ptentially qualify as eligible ffset types under the primary cap-and-trade and early ffset prgram (Sec [new sec. 619 f the CAA], pg. 567). Impses ther requirements restricting the sale and imprtatin f HFCs and HFC cntaining prducts (Sec [new sec. 619 f the CAA], pg. 536). EPA is Given Discretin t Set Standards fr Perflurcarbns (PFCs) and ther nnhydrflurcarbn flurinated substances: The EPA may determine that PFCs and ther nnhydrflurcarbn flurinated substances shuld be regulated separately frm the brader cap-and-trade prgram and set best-achievable perfrmance standards fr cvered entities. Standards must be reviewed and their stringency increased ver time. NF 3 and SF 6 are nt eligible t be regulated under this sectin (Sec [new sec. 714 f the CAA], pg. 306). Prhibits EPA Frm: Setting emissin perfrmance standards fr surces f capped emissins except cal fired electric generating units. In additin, n standards f perfrmance shall be set fr surces f uncapped emissins that are als surces that qualify fr ffset prject status until after Jan. 1, 2020 (Sec. 2302, pg. 619). 12

13 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Establishing Natinal Ambient Air Quality Standards (NAAQS) fr greenhuse gases and designating greenhuse gases as hazardus air pllutants (HAPs) (Sec. 2301, 2303; pg. 619, 621). Applying New Surce Review requirements n the basis f greenhuse gas emissins fr surces initially permitted r mdified after Jan. 1, 2009 (Sec. 2306, pg. 623). INTERACTION WITH STATE PROGRAMS Permanently Prhibits States frm Running Their Own Cap-and-Trade Prgrams: The prhibitin des nt apply t state lw-carbn fuel standards, vehicle fleet standards such as Califrnia cars r mst ther areas f state authrity (Sec [new sec. 806 f the CAA], pg. 667). Thse wh hld Califrnia, Reginal Greenhuse Gas Initiative r Western Climate Initiative allwances may be cmpensated with allwances frm the federal prgram. Cmpensatin is based n the cst f btaining and hlding allwances, nt n a tn-frtn basis (Sec [new sec. 786 f the CAA], pg. 510). States may require federal allwances fr cmpliance with state air regulatins that reduce greenhuse gasess (Sec. 2305, pg. 622). Early actin allwances: States that have issued allwances under their wn cap-andtrade prgrams are eligible (Sec [new sec. 788 f the CAA], pg. 516) States Receive Allwances t Supprt New and Existing Prgrams and Requirements (See Renewable Energy and Energy Efficiency and Transprtatin sectins) ASSISTANCE DURING THE TRANSITION TO A LOW-CARBON ECONOMY Cnsumer Assistance: Electric and natural gas LDC ratepayer assistance: Emissin allwances distributed t an electricity r natural gas lcal distributin cmpany (LDC) must be used exclusively fr the benefit f retail ratepayers. The LDC shall ensure that the ratepayer benefit is distributed amng ratepayer classes (i.e., residential, industrial and cmmercial) ratably based n deliveries t each class and equally within each class. State utility regulatrs must implement these requirements using regulatin r rate prceedings (Sec [new sec. 782 f CAA], pg. 680; Sec [new sec. 783 f CAA], pg. 728). Hme heating il and prpane cnsumer assistance: Emissin allwances are distributed t states exclusively fr the benefit f cnsumers f il heat fuel, prpane r kersene fr residential r cmmercial purpses by using the prceeds fr cst-effective energy efficiency prgrams, rebates r ther direct financial assistance prgrams (Sec [new sec. 784 f CAA], pg. 742). Cnsumer and Lw-incme Family Payments, Tax Credits and Prtectin: Establishes a Universal Trust Fund by 2026 funded with auctin prceeds, 25 percent f which will g twards deficit reductin and 75 percent fr a universal refund prgram distributed t all taxpayers in the frm f a tax credit. Refund amunts will be equal t the ttal revenue frm allwance auctins fr this purpse divided by the number f eligible Americans adjusted fr family size (Sec. 3207, pg. 772). 2.5 percent f allwances reserved fr annual tax credit fr lw-incme tax payers beginning in 2013, adjusted t reflect family size and incmes, with reduced credits fr incme that is abve 250 percent f the pverty line (Sec. 3201, pg. 746). Energy Refund Prgram prvides mnthly payments t lw incme families earning up t 150 percent f the pverty line r that are participating in supplemental nutritin prgrams, funded by 12.5 percent f allwances (Sec. 3204, pg.753). Establishes an Office f Cnsumer Advcacy t investigate cnsumer cmplaints and represent cnsumer interests at Federal Energy Regulatry Cmmissin and ther regulatry hearings (Sec. 3301, pg. 778). Wrker Training, Clean Energy Career Develpment Clean energy curriculum develpment. Department f Educatin (DOEd), with the Department f Labr (DOL) and DOE, t review and award cmpetitive grants t eligible educatinal partnerships t develp prgrams f study fcused n emerging careers and jbs in the fields f clean and renewable energy, energy efficiency, and climate change mitigatin and adaptatin (Sec. 4101, pg. 829). 13

14 WRI Summary f the American Pwer Act (Kerry-Lieberman Discussin Draft) Clearinghuse fr infrmatin and resurce n vcatinal educatin and jb training in the renewable energy sectr. Directs the DOL, with the DOE and DOEd, t develp an internet-based clearing huse t aid career and technical educatin and jb training prgrams fr the renewable energy sectr, especially high-demand, middle-skill trades and careers (Sec. 4102, pg. 833). Clean energy cnstructin careers demnstratin prject. Directs the DOL, with the DOE, t establish demnstratin prject(s) t prmte middle class careers and quality emplyment practices in the green cnstructin sectr amng targeted (generally lwerincme, disadvantaged) wrkers (Sec. 4103, pg. 839). DOMESTIC ADAPTATION Funding: Establishes a Natural Resurces Climate Change Adaptatin Accunt that allcates assistance t state and federal agencies t fund adaptatin activities (Sec. 6008, pg. 966). State Prgrams: Requires state-level Natural Resurce Adaptatin Plans detailing each state s current and prjected effrts t address the nging and expected impacts f climate change n natural resurces and castal areas. T be eligible fr Federal funding under the title, the plans must be cnsistent with the Natural Resurces Climate Change Adaptatin Strategy and are subject t apprval by the DOI (Sec. 6007, pg. 955). Federal Prgrams: Establishes a Natural Resurces Climate Change Adaptatin Panel including heads f 12 specified federal agencies with pssible additinal members with jurisdictin ver natural resurces (Sec. 6003, pg. 937). The panel shall develp a Natural Resurces Climate Change Adaptatin Strategy that assesses vulnerability and includes specific prtcls n natural resurce management and cnservatin fr federal agencies (Sec. 6004, pg. 939). Directs each agency n the panel t cmplete individual adaptin plans that implement the strategy (Sec. 6006, pg. 948). Establishes a Natinal Climate Change and Wildlife Science Center t mnitr the impacts f climate change. Requires the Natinal Oceanic and Atmspheric Administratin (NOAA) and the Directr f the U.S. Gelgical Survey t establish prcedures t address the impacts f climate change n natural resurces, and t prvide technical assistance t ther federal agencies, state and lcal gvernments, Indian tribes and interested private landwners (Sec. 6005, pg. 942). Establishes a Natinal Fish and Wildlife Habitat and Crridrs Infrmatin Prgram in cperatin with states and Indian tribes t supprt the develpment f gegraphical infrmatin system databases f fish and wildlife habitats and crridrs (Sec. 6009, pg. 979). Additinal Climate Change Adaptatin Prgrams: Permits NOAA t establish additinal adaptatin prgrams that address water systems, fld cntrl and preventin, wildland fire awareness and training, and castal state ecnmic prtectin (Sec. 6011, pg. 986). INTERNATIONAL ISSUES Cmpetitiveness/Leakage: Allwance rebates: Allwances are allcated n the basis f prductin utput, prviding rebates t energy-intensive trade-expsed (EITE) manufacturers t ffset their csts f cmpliance. Sectrs are presumed eligible if they meet a five percent energy r greenhuse gas -intensity threshld and 15 percent trade intensity r a 20 percent energyr greenhuse gas -intensity threshld. Each eligible sectr is rebated at 100 percent f sectr average direct and indirect cmpliance csts. Up t 15 percent f ttal allwances are available fr rebates during the years Fr any year in which the available allwance pl exceeds the number f rebates, excess allwances will be credited, carried ver, and made available in later years (See allwance values distributin sectin f this summary). Allwances are phased ut between the years 2026 and 2029 but the president may cntinue prviding rebates, if necessary t prevent carbn leakage (Sec [new sectins f CAA], pg. 782). U.S. plicy fr internatinal negtiatins and reprts: 14