,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hehb ,,in ,,the ,,house ,,of ,,representatives ,october #ac1 #bjbj,mr4 ,casten of ,illinois 7for himself and ,mr4 ,moulton7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce ,a ,,bill ,to amend the ,clean ,air ,act to establish a tradeable performance standard covering emissions from the electricity generation and industrial sectors1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,tradeable ,performance ,standard ,act4 #b4 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title4,sec4 #b4 ,table of contents4,sec4 #c4 ,combating the climate crisis4,title ,,vii--,greenhouse ,gas ,pollution ,reduction ,program,part ,a--,global ,warming ,pollution ,reduction ,targets,sec4 #gja4 ,definitions4,sec4 #gjb4 ,reduction targets for covered entities4,part ,b--,designation of ,greenhouse ,gases and ,thermal ,energy ,reporting ,program,sec4 #gaa4 ,greenhouse gases4,sec4 #gab4 ,carbon dioxide equivalent value of greenhouse gases4,sec4 #gac4 ,thermal energy reporting program4,sec4 #gad4 ,,eia and ,,epa reporting4,part ,c--,program ,rules,sec4 #gba4 ,requirements4,sec4 #gbb4 ,distribution of emission allowances4,sec4 #gbc4 ,trading4,sec4 #gbd4 ,voluntary program participation4,sec4 #gbe4 ,penalty for noncompliance4,sec4 #gbf4 ,emission allowance tracking system4,sec4 #gbg4 ,other program rules4,sec4 #gbh4 ,oversight4,sec4 #gbi4 ,regulations4,sec4 #gcj4 ,savings provisions4 #c4 ,combating the climate crisis ,the ,clean ,air ,act 7#db ,u4,s4,c4 et seq47 is amended by adding after title ,,vi the following new title3 ,,vii ,greenhouse ,gas ,pollution ,reduction ,program ,a ,global ,warming ,pollution ,reduction ,targets #gja4 ,definitions ,in this title3 7#a7 ,average carbon intensity for qualified electric facilities ,the term average carbon intensity for qualified electric facilities means the number that equals the total amount of greenhouse gas emissions in metric tons of carbon dioxide equivalent emitted from qualified electric facilities in a calendar year as reported under section #gad divided by the total quantity of megawatt hours of electricity produced by qualified electric facilities in such calendar year as reported under section #gad4 7#b7 ,average carbon intensity for qualified thermal facilities ,the term average carbon intensity for qualified thermal facilities means the number that equals the total amount of greenhouse gas emissions in metric tons of carbon dioxide equivalent emitted from qualified thermal facilities in a calendar year as reported under section #gac divided by the total quantity of useful thermal energy output from qualified thermal facilities in such calendar year as reported under section #gac4 7#c7 ,bottoming cycle cogeneration generator ,the term bottoming cycle cogeneration generator means any generator that produces electricity from otherwise-wasted heat1 pressure1 or both1 using any of the following technologies3 7,a7 ,an organic ranking cycle4 7,b7 ,a waste-heat recovery steam generator4 7,c7 ,a back pressure steam turbine4 7,d7 ,a ,stirling engine4 7#d7 ,carbon dioxide equivalent ,the term carbon dioxide equivalent means the unit of measure1 expressed in metric tons1 of greenhouse gases1 as provided under section #gab4 7#e7 ,covered entity ,the term covered entity means each of the following3 7,a7 ,a qualified cogeneration facility4 7,b7 ,a qualified electric facility4 7,c7 ,a qualified thermal facility4 7#f7 ,designated representative ,the term designated representative means1 with respect to a covered entity1 a thermal reporting entity1 or any other entity receiving or holding emission allowances under this title1 an individual authorized1 through a certificate of representation submitted to the ,administrator by the owners and operators1 to represent the owners and operators in all matters pertaining to this title 7including the holding1 transfer1 or disposition of emission allowances71 and to make all submissions to the ,administrator under this title4 7#g7 ,emission allowance ,the term emission allowance means a limited authorization to emit1 in an amount of1 #a metric ton of carbon dioxide equivalent of a greenhouse gas in accordance with this title4 7#h7 ,fuel-based capacity ,the term fuel-based capacity means-- 7,a7 for generators that produce useful thermal energy output with the combustion of fuel1 the peak fuel combustion rate2 and 7,b7 for generators that produce useful thermal energy output without the combustion of fuel1 the peak useful thermal energy output rate divided by #j4g4 7#i7 ,greenhouse gas ,the term greenhouse gas means any gas listed in section #gaa4 7#aj7 ,greenhouse gas emission ,the term greenhouse gas emission means the release of a greenhouse gas into the ambient air4 7#aa7 ,hold ,the term hold means1 with respect to an emission allowance1 to have in the appropriate account created pursuant to the process under section #gbf7b74 7#ab7 ,qualified cogeneration facility ,the term qualified cogeneration facility means any generator that simultaneously produces useful thermal energy output and electricity and-- 7,a7 has a rated capacity of #b megawatts or greater2 or 7,b7 is classified as a qualified cogeneration facility pursuant to section #gbd7;c74 7#ac7 ,qualified electric facility ,the term qualified electric facility means any generator that produces electricity1 including a bottoming cycle cogeneration generator-- 7,a7 with a rated capacity of #b megawatts or greater2 or 7,b7 with a rated capacity of less than #b megawatts that is classified as a qualified electric facility pursuant to section #gbd7;a74 7#ad7 ,qualified thermal facility ,the term qualified thermal facility means any generator that produces thermal energy-- 7,a7 with a rated fuel-based capacity of at least #ej1jjj1jjj ,british thermal units on a higher heating value basis per hour or greater1 excluding any generator producing useful thermal energy output that the ,administrator determines is used to wholly or partially provide carbon as a chemical ingredient for a process to manufacture goods2 or 7,b7 with a rated fuel-based capacity of less than #ej1jjj1jjj ,british thermal units on a higher heating value basis per hour that is classified as a qualified thermal facility pursuant to section #gbd7;b74 7#ae7 ,thermal reporting entity ,the term thermal reporting entity means-- 7,a7 a qualified thermal facility2 7,b7 a qualified cogeneration facility2 7,c7 any generator that produces useful thermal energy output with a rated fuel-based capacity of at least #cj1jjj1jjj ,british thermal units on a higher heating value basis per hour1 but less than #ej1jjj1jjj ,british thermal units on a higher heating value basis per hour2 or 7,d7 any other entity that produces or delivers useful thermal energy output the production or delivery of which results or may result in greenhouse gas emissions if the ,administrator determines that reporting under section #gac by such entity will help achieve the targets specified in section #gjb4 7#af7 ,useful thermal energy output ,the term useful thermal energy output means thermal energy as measured in million ,british thermal units on a higher heating value basis produced by a generator that produces thermal energy net of the energy in inlet combustion air1 feedwater1 or any other fluids not used as fuels of combustion4 #gjb4 ,reduction targets for covered entities 7a7 ,in general ,the regulations issued under section #gbi shall establish enforceable targets for the greenhouse gas emissions of covered entities1 such that-- 7#a7 in #bjcj1 the aggregate quantity of greenhouse gas emissions from covered entities does not exceed #fj percent of the aggregate quantity of greenhouse gas emissions from covered entities in #bjai2 and 7#b7 in #bjdj1 the aggregate quantity of greenhouse gas emissions from covered entities does not exceed zero4 7b7 ,definition ,for purposes of this section1 the term greenhouse gas emissions from covered entities in #bjai means greenhouse gas emissions to which section #gba would have applied if the requirements of this title for the specified year had been in effect for #bjai4 ,b ,designation of ,greenhouse ,gases and ,thermal ,energy ,reporting ,program #gaa4 ,greenhouse gases ,for purposes of this title1 the following are greenhouse gases3 7#a7 ,carbon dioxide4 7#b7 ,methane4 7#c7 ,nitrous oxide4 7#d7 ,sulfur hexafluoride4 7#e7 ,any perfluorocarbon4 7#f7 ,nitrogen trifluoride4 #gab4 ,carbon dioxide equivalent value of greenhouse gases 7a7 ,in general ,any provision of this title that refers to a quantity or percentage of a quantity of a greenhouse gas shall be treated as a reference to the quantity or percentage of the greenhouse gas expressed in carbon dioxide equivalents4 7b7 ,values ,except as provided by the ,administrator under subsection 7c71 for the purposes of this title1 the carbon dioxide equivalent value of a greenhouse gas shall be equal to the #ajj-year global warming potential for such greenhouse gas that is provided in the ,fifth ,assessment ,report of the ,intergovernmental ,panel on ,climate ,change4 7c7 ,use of #bj-,year global warming potential ,if the ,administrator determines that it is more appropriate for a greenhouse gas1 the ,administrator may publish a determination in the ,federal ,register that such greenhouse gas has a carbon dioxide equivalent value equal to the #bj-year global warming potential for such greenhouse gas that is provided in the ,fifth ,assessment ,report of the ,intergovernmental ,panel on ,climate ,change4 #gac4 ,thermal energy reporting program 7a7 ,regulations ,not later than #ah months after the date of enactment of this title1 the ,administrator shall issue regulations establishing a program1 to be known as the ,federal thermal energy reporting program4 ,such regulations shall-- 7#a7 require each thermal reporting entity to submit to the ,administrator data on-- 7,a7 the type1 quality1 and quantity of fuel used for onsite useful thermal energy output production by such thermal reporting entity2 7,b7 the quantity of useful thermal energy output produced by such thermal reporting entity as calculated pursuant to subsection 7e72 and 7,c7 the quantity of greenhouse gas emissions associated with such useful thermal energy output production2 7#b7 require thermal reporting entities to submit to the ,administrator data sufficient to ensure compliance with or implementation of the requirements of this title2 7#c7 ensure the completeness1 consistency1 transparency1 accuracy1 precision1 and reliability of data gathered under the ,federal thermal energy reporting program2 7#d7 include methods for avoiding double reporting to the maximum extent possible2 7#e7 require that thermal reporting entities provide the data required in this section in reports submitted electronically to the ,administrator1 in such form and containing such information as may be required by the ,administrator2 7#f7 include requirements for keeping records supporting or related to1 and protocols for auditing1 data submitted under the ,federal thermal energy reporting program2 7#g7 establish consistent policies for calculating carbon content and greenhouse gas emissions for any type of fuel for which data is submitted under the ,federal thermal energy reporting program2 7#h7 provide for immediate dissemination1 to ,states and ,indian ,tribes1 of all data reported under the ,federal thermal energy reporting program as soon as practicable after electronic audit by the ,administrator and any resulting correction of data1 except that data shall not be disseminated under this paragraph if-- 7,a7 nondissemination of the data is vital to the national security of the ,united ,states1 as determined by the ,president2 or 7,b7 the data is confidential business information that cannot be derived from information that is otherwise publicly available and that would cause significant calculable competitive harm if published1 except that data that is confidential business information shall be provided to a ,state or ,indian ,tribe within whose jurisdiction the thermal reporting entity is located if the ,administrator determines that such ,state or ,indian ,tribe has in effect protections for confidential business information that are at least as protective as protections applicable to the ,federal ,government2 7#i7 provide that the ,administrator publish an aggregate summary of all data reported under the ,federal thermal energy reporting program publicly on the internet as soon as practicable after electronic audit by the ,administrator and any resulting correction of data1 including publication of-- 7,a7 any confidential business data under paragraph 7#h77;,b72 and 7,b7 at the discretion of the ,president1 data the nondissemination of which was determined to be vital to the national security of the ,united ,states under paragraph 7#h77;,a72 7#aj7 prescribe methods by which the ,administrator shall1 in cases in which satisfactory data are not submitted by a thermal reporting entity under the ,federal thermal energy reporting program to the ,administrator for any period of time1 estimate the data for such thermal reporting entity required under paragraph 7#a7 with-- 7,a7 in the case of a thermal reporting entity that is a qualified thermal facility or a qualified cogeneration facility1 an estimate of the highest greenhouse gas emission levels that may have occurred during the period for which data are missing2 or 7,b7 in the case of any other thermal reporting entity1 a reasonable estimate of the greenhouse gas emission levels that may have occurred during the period for which data are missing2 7#aa7 require the designation of a designated representative for each thermal reporting entity2 7#ab7 require an appropriate certification1 by the designated representative for the thermal reporting entity1 of accurate and complete accounting of the data required under paragraph 7#a71 as determined by the ,administrator2 and 7#ac7 include requirements for the submission of other data necessary for accurate and complete accounting of the quantity of useful thermal energy output1 and the quantity of greenhouse gas emissions associated with such useful thermal energy output production1 as determined by the ,administrator1 including data for quality assurance of monitoring systems and other measurement devices4 7b7 ,timing 7#a7 ,calendar years #bjai through #bjbb 7,a7 ,in general ,not later than ,march #ba1 #bjbc1 each thermal reporting entity shall submit to the ,administrator data required under the ,federal thermal energy reporting program with respect to each of calendar years #bjai through #bjbb4 7,b7 ,waiver or modification ,the ,administrator may waive or modify reporting requirements for calendar years #bjai through #bjbb for thermal reporting entities to the extent that the ,administrator determines that the thermal reporting entities did not keep data or records necessary to meet such reporting requirements4 ,the ,administrator may1 in addition to or in lieu of such reporting requirements1 collect additional information on energy consumption and production4 7#b7 ,subsequent calendar years ,with respect to calendar year #bjbc and each subsequent calendar year1 each thermal reporting entity shall submit quarterly data required under the ,federal thermal energy reporting program to the ,administrator not later than #fj days after the end of the applicable quarter1 except when the data is already being reported to the ,administrator on an earlier timeframe for another program4 7c7 ,waiver of reporting requirements for specific entities ,the ,administrator may waive reporting requirements under this section for specific entities to the extent that the ,administrator determines that sufficient and equally or more reliable verified and timely data are available to the ,administrator and the public under other statutory requirements4 7d7 ,interrelationship with other systems 7#a7 ,in general ,in developing the regulations issued under subsection 7a71 the ,administrator shall take into account the work done by the ,energy ,information ,administration and other mandatory ,federal1 ,state1 or multistate programs to collect information that is similar to the information to be collected under this section4 7#b7 ,explanation ,regulations issued under subsection 7a7 shall include an explanation of any major differences in information collected between the ,federal thermal energy reporting program and information available from the ,energy ,information ,administration and other mandatory ,federal1 ,state1 or multistate programs to collect similar information4 7e7 ,calculation of useful thermal energy output ,the ,administrator and thermal reporting entities shall-- 7#a7 in the case of thermal reporting entities that have revenue-grade send out meters1 calculate useful thermal energy output by using the data provided by those meters2 and 7#b7 in the case of thermal reporting entities that do not have such meters1 or that have such meters but for which the ,administrator determines that the values obtained by calculating useful thermal energy output under paragraph 7#a7 are unreasonable1 calculate useful thermal energy output based on the metered fuel use for a given quarter multiplied by the average conversion efficiency of fuel to useful thermal energy output in all other similarly situated facilities using the same fuel4 #gad4 ,,eia and ,,epa reporting 7a7 ,in general ,beginning with calendar year #bjbb1 by the end of each month1 the ,administrator of the ,energy ,information ,administration shall provide to the ,administrator of the ,environmental ,protection ,agency information on the total amount of electricity produced from qualified electric facilities during the previous month4 7b7 ,new qualified electric facilities ,the ,administrator of the ,environmental ,protection ,agency shall notify the ,administrator of the ,energy ,information ,administration whenever an electric facility with a rated capacity of less than #b megawatts elects to be classified as a qualified electric facility or a qualified cogeneration facility under section #gbd4 ,c ,program ,rules #gba4 ,requirements 7a7 ,in general ,by #ab3ja a4m4 on ,april #a of a calendar year1 a covered entity shall surrender to the ,administrator one emission allowance for each metric ton of carbon dioxide equivalent of a greenhouse gas emitted by the covered entity during the preceding calendar year4 7b7 ,acquisition of emission allowances ,a covered entity shall acquire emission allowances as follows3 7#a7 ,by receiving emission allowances as provided in section #gbb4 7#b7 ,by purchase1 exchange1 or transfer under section #gbc4 7c7 ,applicability ,the requirement of this part applies with respect to calendar year #bjbc and subsequent calendar years4 7d7 ,period of use ,an emission allowance may be used by a covered entity to comply with subsection 7a7 only for-- 7#a7 the calendar year in connection with which it is distributed under section #gbb2 or 7#b7 the following calendar year4 7e7 ,adjustment of deadline ,the ,administrator may1 by rule1 establish a deadline for compliance with subsection 7a7 with respect to a calendar year that is later than #ab3ja a4m4 on ,april #a of the following calendar year1 as necessary to ensure the availability of greenhouse gas emissions data1 but in no event shall the adjusted deadline be later than ,june #a4 #gbb4 ,distribution of emission allowances 7a7 ,qualified electric facilities ,during a calendar year1 the ,administrator shall distribute1 on a continual basis1 to a qualified electric facility for each megawatt hour of electricity produced by the qualified electric facility a number of emission allowances 7or fractions thereof7 equal to the product of one multiplied by the greater of-- 7#a7 zero2 and 7#b7 the lesser of-- 7,a7 the value equal to the product of #j4ic and the preceding calendar year's average carbon intensity for qualified electric facilities2 7,b7 the value equal to the difference of-- 7i7 the preceding calendar year's average carbon intensity for qualified electric facilities2 minus 7ii7 the product of #j4jf multiplied by calendar year #bjbb's average carbon intensity for qualified electric facilities2 or 7,c7 a value set by the ,administrator for purposes of this subsection to ensure that the aggregate quantity of greenhouse gas emissions from covered entities does not exceed the targets specified in section #gjb7;a74 7b7 ,qualified thermal facilities ,during a calendar year1 the ,administrator shall distribute1 on a continual basis1 to a qualified thermal facility for each million ,british thermal units of useful thermal energy output produced by the qualified thermal facility a number of emission allowances 7or fractions thereof7 equal to the product of one multiplied by the greater of-- 7#a7 zero2 and 7#b7 the lesser of-- 7,a7 the value equal to the product of #j4ic and the preceding calendar year's average carbon intensity for qualified thermal facilities2 7,b7 the value equal to the difference of-- 7i7 the preceding calendar year's average carbon intensity for qualified thermal facilities2 minus 7ii7 the product of #j4jf multiplied by calendar year #bjbb's average carbon intensity for qualified thermal facilities2 or 7,c7 a value set by the ,administrator for purposes of this subsection to ensure that the aggregate quantity of greenhouse gas emissions from covered entities does not exceed the targets specified in section #gjb7;a74 7c7 ,qualified cogeneration facilities ,during a calendar year1 the ,administrator shall distribute1 on a continual basis1 to a qualified cogeneration facility-- 7#a7 for each megawatt hour of electricity produced by the qualified cogeneration facility1 a number of emission allowances 7or fractions thereof7 calculated in accordance with subsection 7a72 and 7#b7 for each million ,british thermal units of useful thermal energy output produced by the qualified cogeneration facility1 a number of emission allowances 7or fractions thereof7 calculated in accordance with subsection 7b74 7d7 ,adjusted distribution for entering into certain agreements 7#a7 ,in general ,if an existing facility or a newly constructed low-emission facility enters into an agreement described in paragraph 7#b71 then over the period of the agreement the ,administrator shall distribute emission allowances to such facility in accordance with this subsection in lieu of subsection 7a71 7b71 or 7c74 7#b7 ,agreement ,an agreement described in this paragraph is a #aj-year or longer bilateral agreement signed after the date of enactment of this title between an existing qualified electric facility1 an existing qualified thermal facility1 or an existing qualified cogeneration facility1 and a newly constructed low-emission facility for the annual purchase of a specified amount of emission allowances4 7#c7 ,definitions ,in this subsection3 7,a7 ,the term existing means1 with respect to a facility1 in operation as of the date of entry into an agreement described in paragraph 7#b74 7,b7 ,the term existing facility means an existing qualified electric facility1 an existing qualified thermal facility1 or an existing qualified cogeneration facility that is a party to an agreement described in paragraph 7#b74 7,c7 ,the term newly constructed means that the facility involved did not produce electricity or useful thermal energy output prior to the date of entry into an agreement described in paragraph 7#b74 7,d7 ,the term newly constructed low-emission facility means a newly constructed qualified electric facility1 a newly constructed qualified thermal facility1 or a newly constructed qualified cogeneration facility that would emit a lesser quantity of greenhouse gases per megawatt hour of electricity or per million ,british thermal units of useful thermal energy output1 as applicable1 than the ,administrator distributes to covered entities under subsection 7a71 7b71 or 7c71 as applicable1 in the first full calendar year during which the newly constructed facility operates and is a party to an agreement described in paragraph 7#b74 7#d7 ,distribution of allowances to an existing facility 7,a7 ,in general ,for calendar years that are covered by an agreement described in paragraph 7#b71 beginning with the first full calendar year during which the newly constructed low-emission facility operates1 the ,administrator shall distribute1 on a continual basis1 to the existing facility-- 7i7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the existing facility that are covered by the agreement1 a number of emission allowances that is equal to-- 7,i7 such number of megawatt hours or million ,british thermal units1 as applicable2 multiplied by 7,,ii7 the average carbon intensity for qualified electric facilities or the average carbon intensity for qualified thermal facilities1 as applicable1 for such first full calendar year2 and 7ii7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the existing facility exceeding those that are covered by the agreement1 the number of emission allowances calculated under subsection 7a71 7b71 or 7c71 as applicable4 7,b7 ,calculation of megawatt hours or million ,british thermal units covered by agreement ,for purposes of subparagraph 7,a71 the number of megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by an existing facility that are covered by the agreement described in paragraph 7#b7 shall be equal to-- 7i7 the number of emission allowances sold to the existing facility pursuant to the agreement for the first full calendar year described in subparagraph 7,a71 divided by the difference of-- 7,i7 the number of emission allowances surrendered by the existing facility to the ,administrator for such first full calendar year2 minus 7,,ii7 the number of emission allowances distributed to the existing facility by the ,administrator for such first full calendar year2 multiplied by 7ii7 the total number of megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the existing facility in such first full calendar year4 7#e7 ,distribution of allowances to a newly constructed low-emission facility 7,a7 ,in general ,for calendar years that are covered by an agreement described in paragraph 7#b71 beginning with the first full calendar year during which the newly constructed low-emission facility operates1 the ,administrator shall distribute1 on a continual basis1 to the newly constructed low-emission facility-- 7i7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the newly constructed low-emission facility that are covered by the agreement1 a number of emission allowances that is equal to-- 7,i7 such number of megawatt hours or million ,british thermal units of useful thermal energy output2 multiplied by 7,,ii7 the average carbon intensity for qualified electric facilities or the average carbon intensity for qualified thermal facilities1 as applicable1 in such first full calendar year2 and 7ii7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the newly constructed low-emission facility exceeding those that are covered by the agreement1 the number of emission allowances calculated under subsection 7a71 7b71 or 7c71 as applicable4 7,b7 ,calculation of megawatt hours or million ,british thermal units covered by agreement ,for purposes of subparagraph 7,a71 the number of megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by a newly constructed low-emission facility that are covered by the agreement described in paragraph 7#b7 shall be equal to-- 7i7 the number of emission allowances sold to the existing facility pursuant to the agreement for the first full calendar year described in subparagraph 7,a71 divided by the difference of-- 7,i7 the number of emission allowances surrendered by the newly constructed low-emission facility to the ,administrator for such first full calendar year2 minus 7,,ii7 the number of emission allowances distributed to the newly constructed low-emission facility by the ,administrator for such first full calendar year2 multiplied by 7ii7 the total number of megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the existing facility in such first full calendar year4 7#f7 ,conditions ,an existing facility or newly constructed low-emission facility may receive emission allowances under this subsection only if-- 7,a7 such facility provides the ,administrator a copy of-- 7i7 the applicable bilateral agreement2 and 7ii7 any amendment to such bilateral agreement within #cj days of the amendment being made2 and 7,b7 the ,administrator certifies that allowing the facility to maintain the bilateral agreement is not impacting the ability to achieve the targets specified in section #gjb7;a7-- 7i7 upon receiving the applicable bilateral agreement1 and at least once every #e years thereafter2 and 7ii7 upon receiving any amendment thereto4 #gbc4 ,trading 7a7 ,permitted transactions ,except as otherwise provided in this title1 the lawful holder of an emission allowance may1 without restriction1 sell1 exchange1 transfer1 hold1 or surrender to the ,administrator1 the emission allowance4 7b7 ,identification numbers ,the ,administrator shall assign to each emission allowance a unique identification number4 7c7 ,legal status of emission allowances 7#a7 ,in general ,an emission allowance distributed by the ,administrator under this title does not constitute a property right4 7#b7 ,termination or limitation ,nothing in this ,act or any other provision of law shall be construed to limit or alter the authority of the ,united ,states to terminate or limit emission allowances4 7#c7 ,other provisions ,except as otherwise specified in this ,act1 nothing in this ,act relating to emission allowances distributed under this title shall affect the application of any other provision of law to a covered entity1 or the responsibility for a covered entity to comply with any such provision of law4 7d7 ,effectiveness of emission allowance transfers ,no transfer of an emission allowance shall be effective for purposes of this title until a certification of the transfer1 signed by the designated representative of the transferor1 is received and recorded by the ,administrator in accordance with regulations promulgated under section #gbi4 #gbd4 ,voluntary program participation 7a7 ,voluntary program participation as qualified electric facility 7#a7 ,in general ,a generator that produces electricity with a rated capacity of less than #b megawatts may1 in accordance with this subsection1 elect to be classified as a qualified electric facility for purposes of this title4 7#b7 ,qualification ,in order for a generator with a rated capacity of less than #b megawatts to be classified as a qualified electric facility1 the generator shall-- 7,a7 submit a notification to the ,administrator of the intention of the generator to elect to be classified as a qualified electric facility2 7,b7 receive approval of such classification from the ,administrator2 and 7,c7 designate a representative as required under section #gbg7;b74 7#c7 ,approval ,not later than #ij after receipt of a notification under paragraph 7#b77;,a71 the ,administrator shall notify the applicable generator whether the ,administrator approves or disapproves the classification of such generator as a qualified electric facility4 7#d7 ,classification ,if a generator elects to be classified as a qualified electric facility pursuant to this subsection1 such classification shall remain in effect unless the facility produces no electricity over the previous calendar year4 7b7 ,voluntary program participation as a qualified thermal facility 7#a7 ,in general ,a generator that produces thermal energy with a rated fuel-based capacity of less than #ej1jjj1jjj ,british thermal units on a higher heating value basis per hour may1 in accordance with this subsection1 elect to be classified as a qualified thermal facility for purposes of this title4 7#b7 ,qualification ,in order for a generator that produces thermal energy with a rated fuel-based capacity of less than #ej1jjj1jjj ,british thermal units on a higher heating value basis per hour to be classified as a qualified thermal facility1 the facility shall-- 7,a7 have a rated fuel-based capacity of no less than #b1jjj1jjj ,british thermal units on a higher heating value basis per hour2 7,b7 submit a notification to the ,administrator of the intention of the generator to elect to be classified as a qualified thermal facility2 7,c7 receive approval of such classification from the ,administrator2 7,d7 report annually to the ,administrator relevant information collected on type1 quality1 and quantity of fuel used for onsite useful thermal energy output production1 the quantity of useful thermal energy output1 and the quantity of associated greenhouse gas emissions under section #gac2 and 7,e7 designate a representative as required under section #gbg7;b74 7#c7 ,classification ,if a generator that produces useful thermal energy output elects to be classified as a qualified thermal facility pursuant to this subsection1 such classification shall remain in effect unless the facility-- 7,a7 falls below a rated fuel-based capacity of #b1jjj1jjj ,british thermal units on a higher heating value basis per hour2 or 7,b7 produces no useful thermal energy output over the previous calendar year4 7c7 ,voluntary program participation as qualified cogeneration facility 7#a7 ,in general ,a generator that simultaneously produces useful thermal energy output and electricity with a rated capacity of less than #b megawatts may1 in accordance with this subsection1 elect to be classified as a qualified cogeneration facility for purposes of this title4 7#b7 ,qualification ,in order for a generator that simultaneously produces useful thermal energy output and electricity with a rated capacity of less than #b megawatts to be classified as a qualified cogeneration facility1 the facility shall-- 7,a7 submit a notification to the ,administrator of the intention of the generator to elect to be classified as a qualified cogeneration facility2 7,b7 receive approval of the classification from the ,administrator2 7,c7 report annually to the ,administrator relevant information collected on type1 quality1 and quantity of fuel used for onsite useful thermal energy output production1 the quantity of useful thermal energy output1 and the quantity of associated greenhouse gas emissions under section #gac2 and 7,d7 designate a representative as required under section #gbg7;b74 7#c7 ,classification ,if a generator elects to be classified as a qualified cogeneration facility pursuant to this subsection1 such classification shall remain in effect unless the facility produces no electricity over the previous calendar year4 #gbe4 ,penalty for noncompliance 7a7 ,civil penalty 7#a7 ,in general ,the owner or operator of a covered entity that fails to surrender an emission allowance as required by section #gba7;a7 shall be liable for payment to the ,administrator of a penalty in the amount described in paragraph 7#b74 7#b7 ,amount ,the amount of a penalty under paragraph 7#a7 shall be equal to the product of-- 7,a7 twice the highest monetary value 7as indicated by the emission allowance tracking system established pursuant to section #gbf over the previous calendar year7 for the sale or transfer of an emission allowance2 multiplied by 7,b7 the number of emission allowances which the owner or operator of the covered entity failed to surrender as described in paragraph 7#a74 7#c7 ,timing ,a penalty required under this subsection shall be immediately due and payable to the ,administrator1 without demand1 in accordance with regulations promulgated under section #gbi4 7#d7 ,no effect on liability ,a penalty due and payable by the owners or operators of a covered entity under this subsection shall not diminish the liability of the owners or operators for any fine1 penalty1 or assessment against the owners or operators for the same violation under any other provision of this ,act or any other law4 7b7 ,replacement emission allowances ,the owner or operator of a covered entity that fails to surrender one or more emission allowances as required by section #gba7;a7 for a calendar year shall surrender a quantity of emission allowances that is equal to the quantity the covered entity failed to surrender 7in addition to the emission allowances otherwise required to be surrendered7 by the ,april #ast deadline of the second succeeding calendar year4 #gbf4 ,emission allowance tracking system ,the regulations promulgated under section #gbi shall provide for-- 7#a7 the establishment of a system to distribute emission allowances to covered entities2 7#b7 a process to create accounts in which covered entities and any other entities that buy or sell emission allowances may hold emission allowances2 7#c7 the establishment of an emission allowance tracking system to track-- 7,a7 the number of emission allowances transferred2 7,b7 the price or monetary value for which emission allowances are transferred2 7,c7 the date of each such transfer2 7,d7 the parties involved in the transfer2 and 7,e7 any additional information the ,administrator determines necessary for each such transfer2 and 7#d7 the publication by the ,administrator on the internet of-- 7,a7 a weekly summary of average prices of emission allowances weighted by transaction size1 the total number of emission allowances traded1 and any other additional information determined by the ,administrator as necessary for the orderly and competitive functioning of any emission allowance market2 7,b7 the number of emission allowances distributed by the ,administrator under section #gbb each month to qualified electric facilities2 7,c7 the number of emission allowances distributed by the ,administrator under section #gbb each month to qualified thermal facilities2 7,d7 the number of emission allowances distributed by the ,administrator under section #gbb each month to qualified cogeneration facilities2 7,e7 the number of emission allowances distributed by the ,administrator under section #gbb during a calendar year that are held by qualified electric facilities at the end of each month2 7,f7 the number of emission allowances distributed by the ,administrator under section #gbb during a calendar year that are held by qualified thermal facilities at the end of each month2 7,g7 the number of emission allowances distributed by the ,administrator under section #gbb during a calendar year that are held by qualified cogeneration facilities at the end of each month2 7,h7 the number of emission allowances distributed by the ,administrator under section #gbb during a calendar year that are held by entities other than covered entities at the end of each month2 7,i7 the number of emission allowances surrendered to the ,administrator each year by qualified electric facilities2 7,j7 the number of emission allowances surrendered to the ,administrator each year by qualified thermal facilities2 and 7,k7 the number of emission allowances surrendered to the ,administrator each year by qualified cogeneration facilities4 #gbg4 ,other program rules 7a7 ,threshold review ,for each category of covered entities listed in section #gja7e71 the ,administrator-- 7#a7 in #bjbe1 and once every #e years thereafter1 shall review the threshold for electricity or useful thermal energy output production that is used to define covered entities in such category2 and 7#b7 may by rule lower such threshold after consideration of-- 7,a7 greenhouse gas emissions from covered entities in such category1 and from other entities of the same type that produce less electricity or useful thermal energy output 7including greenhouse gas emission sources that commence operation after the date of enactment of this title that are not covered entities72 and 7,b7 whether greater greenhouse gas emission reductions can be cost-effectively achieved by lowering the applicable threshold4 7b7 ,designated representatives ,the regulations promulgated under section #gbi shall require that each covered entity1 and each entity holding an emission allowance or receiving an emission allowance from the ,administrator under this title1 submit to the ,administrator a certificate of representation designating a designated representative4 7c7 ,savings provision ,nothing in this title shall be construed-- 7#a7 as requiring a change of any kind in any ,state law regulating electric utility rates and charges1 or as affecting any ,state law regarding such ,state regulation1 or as limiting ,state regulation 7including any prudency review7 under such a ,state law2 7#b7 as modifying the ,federal ,power ,act or as affecting the authority of the ,federal ,energy ,regulatory ,commission under that ,act2 or 7#c7 as interfering with or impairing any program for competitive bidding for power supply in a ,state in which such a program is established4 7d7 ,position limits 7#a7 ,in general ,the regulations promulgated under section #gbi shall limit the number of emission allowances that an entity may hold at any time in a calendar year4 7#b7 ,limits ,the ,administrator1 in consultation with the ,commodity ,futures ,trading ,commission1 shall set limits under paragraph 7#a7-- 7,a7 on the number of emission allowances distributed in a calendar year that an entity may hold in such calendar year2 7,b7 on the total number of emission allowances that an entity may hold in a calendar year2 7,c7 so that no entity may at any time hold a number of emission allowances that may influence the price of emission allowances2 and 7,d7 in a manner that will ensure adequate liquidity for buyers and sellers of emission allowances4 7e7 ,status of surrendered emission allowances ,once an emission allowance is surrendered to the ,administrator under this title1 the emission allowance shall be disqualified from subsequent use under this title1 including subsequent sale1 exchange1 or submission4 7f7 ,orderly and competitive market ,the regulations promulgated under section #gbi shall specify all procedures and requirements necessary for the orderly and competitive functioning of any emission allowance market4 #gbh4 ,oversight 7a7 ,in general ,not later than ,january #a1 #bjbb1 and every #b years thereafter1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on-- 7#a7 the results of implementation of this title2 and 7#b7 the progress in meeting the targets specified in section #gjb7;a74 7b7 ,contents ,each report under subsection 7a7 shall include-- 7#a7 a comprehensive evaluation of-- 7,a7 the efficiency1 transparency1 and soundness of the distribution of emission allowances under this title1 and the ,federal thermal energy reporting program2 7,b7 the cost-effectiveness of this title in achieving the targets specified in section #gjb7;a72 and 7,c7 the effectiveness of this title in facilitating the deployment of additional zero-carbon electricity capacity and useful thermal energy output capacity2 and 7#b7 recommendations1 if any1 for legislative1 regulatory1 or administrative changes with respect to this title to improve its effectiveness and to reduce or eliminate any identified waste1 fraud1 or abuse4 7c7 ,additional contents ,each report under subsection 7a7 shall address the effectiveness of this title in-- 7#a7 creating and preserving jobs2 7#b7 ensuring a manageable transition to a zero-emission economy for working families and workers2 7#c7 reducing1 or enhancing sequestration of1 greenhouse gases2 7#d7 developing clean technologies2 and 7#e7 maintaining a liquid market for emission allowances4 #gbi4 ,regulations ,except as otherwise specified in this title1 the ,administrator shall promulgate final regulations to carry out this title not later than #bd months after the date of enactment of this title4 #gcj4 ,savings provisions ,nothing in this title shall be interpreted to relieve any person from complying with any requirement of another title of this ,act4 4