,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hehb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,octob] #ac1 #bjbj,mr4
 ,ca/5 ( ,ill9ois 7= himself & ,mr4     
,m\lton7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,en]gy &      
,comm]ce  ,a ,,bill  ,to am5d ! ,clean  
,air ,act to e/abli% a tradeable        
p]=mance /&>d cov]+ emissions f !       
electricity g5]ation & indu/rial        
sectors1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z !         
,tradeable ,p]=mance ,/&>d ,act4  #b4   
,table ( cont5ts ,! table ( cont5ts =   
?is ,act is z foll[s3 ,sec4 #a4 ,%ort   
title4,sec4 #b4 ,table ( cont5ts4,sec4  
#c4 ,combat+ ! climate crisis4,title    
,,vii--,gre5h\se ,gas ,pollution        
,r$uction ,program,part ,a--,global     
,w>m+ ,pollution ,r$uction ,targets,sec4
 #gja4 ,def9itions4,sec4 #gjb4 ,r$uction
 t>gets = cov]$ entities4,"p            
,b--,designation ( ,gre5h\se ,gases &   
,!rmal ,en]gy ,report+ ,program,sec4    
#gaa4 ,gre5h\se gases4,sec4 #gab4 ,c>bon

 dioxide equival5t value ( gre5h\se     
gases4,sec4 #gac4 ,!rmal en]gy report+  
program4,sec4 #gad4 ,,eia & ,,epa       
report+4,"p ,c--,program ,rules,sec4    
#gba4 ,requirem5ts4,sec4 #gbb4          
,di/ribution ( emission all[ances4,sec4 
#gbc4 ,trad+4,sec4 #gbd4 ,volunt>y      
program p>ticipation4,sec4 #gbe4 ,p5alty
 = noncompliance4,sec4 #gbf4 ,emission  
all[ance track+ sy/em4,sec4 #gbg4 ,o!r  
program rules4,sec4 #gbh4               
,ov]sight4,sec4 #gbi4 ,regulations4,sec4
 #gcj4 ,sav+s provisions4  #c4 ,combat+ 
! climate crisis ,! ,clean ,air ,act    
7#db ,u4,s4,c4 et seq47 is am5d$ by add+
 aft] title ,,vi ! foll[+ new title3    
,,vii ,gre5h\se ,gas ,pollution         
,r$uction ,program  ,a ,global ,w>m+    
,pollution ,r$uction ,t>gets  #gja4     
,def9itions ,9 ?is title3 7#a7 ,av]age  
c>bon int5sity = qualifi$ electric      
facilities ,! t]m av]age c>bon int5sity 
= qualifi$ electric facilities means !  
numb] t equals ! total am\nt ( gre5h\se 
gas emissions 9 metric tons ( c>bon     

dioxide equival5t emitt$ f qualifi$     
electric facilities 9 a cal5d> ye> z    
report$ "u section #gad divid$ by !     
total quantity ( megawatt h\rs (        
electricity produc$ by qualifi$ electric
 facilities 9 su* cal5d> ye> z report$  
"u section #gad4  7#b7 ,av]age c>bon    
int5sity = qualifi$ !rmal facilities ,! 
t]m av]age c>bon int5sity = qualifi$    
!rmal facilities means ! numb] t equals 
! total am\nt ( gre5h\se gas emissions 9
 metric tons ( c>bon dioxide equival5t  
emitt$ f qualifi$ !rmal facilities 9 a  
cal5d> ye> z report$ "u section #gac    
divid$ by ! total quantity ( useful     
!rmal en]gy output f qualifi$ !rmal     
facilities 9 su* cal5d> ye> z report$ "u
 section #gac4  7#c7 ,bottom+ cycle     
cog5]ation g5]ator ,! t]m bottom+ cycle 
cog5]ation g5]ator means any g5]ator t  
produces electricity f o!rwise-wa/$     
heat1 pressure1 or bo?1 us+ any ( !     
foll[+ te*nologies3 7,a7 ,an organic    
rank+ cycle4  7,b7 ,a wa/e-heat recov]y 
/eam g5]ator4  7,c7 ,a back pressure    

/eam turb9e4  7,d7 ,a ,/irl+ eng9e4     
7#d7 ,c>bon dioxide equival5t ,! t]m    
c>bon dioxide equival5t means ! unit (  
measure1 express$ 9 metric tons1 (      
gre5h\se gases1 z provid$ "u section    
#gab4  7#e7 ,cov]$ entity ,! t]m cov]$  
entity means ea* ( ! foll[+3 7,a7 ,a    
qualifi$ cog5]ation facility4  7,b7 ,a  
qualifi$ electric facility4  7,c7 ,a    
qualifi$ !rmal facility4  7#f7          
,designat$ repres5tative ,! t]m         
designat$ repres5tative means1 ) respect
 to a cov]$ entity1 a !rmal report+     
entity1 or any o!r entity receiv+ or    
hold+ emission all[ances "u ?is title1  
an individual au?oriz$1 ?r\gh a         
c]tificate ( repres5tation submitt$ to !
 ,adm9i/rator by ! own]s & op]ators1 to 
repres5t ! own]s & op]ators 9 all matt]s
 p]ta9+ to ?is title 7includ+ ! hold+1  
transf]1 or disposition ( emission      
all[ances71 & to make all submissions to
 ! ,adm9i/rator "u ?is title4  7#g7     
,emission all[ance ,! t]m emission      
all[ance means a limit$ au?orization to 

emit1 9 an am\nt (1 #a metric ton (     
c>bon dioxide equival5t ( a gre5h\se gas
 9 accordance ) ?is title4  7#h7        
,fuel-bas$ capacity ,! t]m fuel-bas$    
capacity means-- 7,a7 = g5]ators t      
produce useful !rmal en]gy output ) !   
combu/ion ( fuel1 ! peak fuel combu/ion 
rate2 &  7,b7 = g5]ators t produce      
useful !rmal en]gy output )\t !         
combu/ion ( fuel1 ! peak useful !rmal   
en]gy output rate divid$ by #j4g4  7#i7 
,gre5h\se gas ,! t]m gre5h\se gas means 
any gas li/$ 9 section #gaa4  7#aj7     
,gre5h\se gas emission ,! t]m gre5h\se  
gas emission means ! release ( a        
gre5h\se gas into ! ambi5t air4  7#aa7  
,hold ,! t]m hold means1 ) respect to an
 emission all[ance1 to h 9 ! appropriate
 acc\nt creat$ pursuant to ! process "u 
section #gbf7b74  7#ab7 ,qualifi$       
cog5]ation facility ,! t]m qualifi$     
cog5]ation facility means any g5]ator t 
simultane\sly produces useful !rmal     
en]gy output & electricity &-- 7,a7 has 
a rat$ capacity ( #b megawatts or       

great]2 or  7,b7 is classifi$ z a       
qualifi$ cog5]ation facility pursuant to
 section #gbd7;c74  7#ac7 ,qualifi$     
electric facility ,! t]m qualifi$       
electric facility means any g5]ator t   
produces electricity1 includ+ a bottom+ 
cycle cog5]ation g5]ator-- 7,a7 ) a rat$
 capacity ( #b megawatts or great]2 or  
7,b7 ) a rat$ capacity ( less ?an #b    
megawatts t is classifi$ z a qualifi$   
electric facility pursuant to section   
#gbd7;a74  7#ad7 ,qualifi$ !rmal        
facility ,! t]m qualifi$ !rmal facility 
means any g5]ator t produces !rmal      
en]gy-- 7,a7 ) a rat$ fuel-bas$ capacity
 ( at lea/ #ej1jjj1jjj ,briti% !rmal    
units on a high] heat+ value basis p]   
h\r or great]1 exclud+ any g5]ator      
produc+ useful !rmal en]gy output t !   
,adm9i/rator det]m9es is us$ to :olly or
 p>tially provide c>bon z a *emical     
+r$i5t = a process to manufacture goods2
 or  7,b7 ) a rat$ fuel-bas$ capacity ( 
less ?an #ej1jjj1jjj ,briti% !rmal units
 on a high] heat+ value basis p] h\r t  

is classifi$ z a qualifi$ !rmal facility
 pursuant to section #gbd7;b74  7#ae7   
,!rmal report+ entity ,! t]m !rmal      
report+ entity means-- 7,a7 a qualifi$  
!rmal facility2  7,b7 a qualifi$        
cog5]ation facility2  7,c7 any g5]ator t
 produces useful !rmal en]gy output ) a 
rat$ fuel-bas$ capacity ( at lea/       
#cj1jjj1jjj ,briti% !rmal units on a    
high] heat+ value basis p] h\r1 b less  
?an #ej1jjj1jjj ,briti% !rmal units on a
 high] heat+ value basis p] h\r2 or     
7,d7 any o!r entity t produces or       
deliv]s useful !rmal en]gy output !     
production or deliv]y ( :i* results or  
may result 9 gre5h\se gas emissions if !
 ,adm9i/rator det]m9es t report+ "u     
section #gac by su* entity w help a*ieve
 ! t>gets specifi$ 9 section #gjb4      
7#af7 ,useful !rmal en]gy output ,! t]m 
useful !rmal en]gy output means !rmal   
en]gy z measur$ 9 million ,briti% !rmal 
units on a high] heat+ value basis      
produc$ by a g5]ator t produces !rmal   
en]gy net ( ! en]gy 9 inlet combu/ion   

air1 fe$wat]1 or any o!r fluids n us$ z 
fuels ( combu/ion4  #gjb4 ,r$uction     
t>gets = cov]$ entities  7a7 ,9 g5]al ,!
 regulations issu$ "u section #gbi %all 
e/abli% en=ceable t>gets = ! gre5h\se   
gas emissions ( cov]$ entities1 su* t-- 
7#a7 9 #bjcj1 ! aggregate quantity (    
gre5h\se gas emissions f cov]$ entities 
does n exce$ #fj p]c5t ( ! aggregate    
quantity ( gre5h\se gas emissions f     
cov]$ entities 9 #bjai2 &  7#b7 9 #bjdj1
 ! aggregate quantity ( gre5h\se gas    
emissions f cov]$ entities does n exce$ 
z]o4  7b7 ,def9ition ,= purposes ( ?is  
section1 ! t]m gre5h\se gas emissions f 
cov]$ entities 9 #bjai means gre5h\se   
gas emissions to :i* section #gba w\ld h
 appli$ if ! requirem5ts ( ?is title = !
 specifi$ ye> _h be5 9 effect = #bjai4  
,b ,designation ( ,gre5h\se ,gases &    
,!rmal ,en]gy ,report+ ,program  #gaa4  
,gre5h\se gases ,= purposes ( ?is title1
 ! foll[+ are gre5h\se gases3 7#a7      
,c>bon dioxide4  7#b7 ,me?ane4  7#c7    
,nitr\s oxide4  7#d7 ,sulfur            

hexafluoride4  7#e7 ,any p]fluoroc>bon4 
7#f7 ,nitrog5 trifluoride4  #gab4 ,c>bon
 dioxide equival5t value ( gre5h\se     
gases  7a7 ,9 g5]al ,any provision ( ?is
 title t ref]s to a quantity or p]c5tage
 ( a quantity ( a gre5h\se gas %all be  
treat$ z a ref]5ce to ! quantity or     
p]c5tage ( ! gre5h\se gas express$ 9    
c>bon dioxide equival5ts4  7b7 ,values  
,except z provid$ by ! ,adm9i/rator "u  
subsection 7c71 = ! purposes ( ?is      
title1 ! c>bon dioxide equival5t value (
 a gre5h\se gas %all be equal to !      
#ajj-ye> global w>m+ pot5tial = su*     
gre5h\se gas t is provid$ 9 ! ,fif?     
,assessm5t ,report ( ! ,int]gov]nm5tal  
,panel on ,climate ,*ange4  7c7 ,use (  
#bj-,ye> global w>m+ pot5tial ,if !     
,adm9i/rator det]m9es t x is m          
appropriate = a gre5h\se gas1 !         
,adm9i/rator may publi% a det]m9ation 9 
! ,f$]al ,regi/] t su* gre5h\se gas has 
a c>bon dioxide equival5t value equal to
 ! #bj-ye> global w>m+ pot5tial = su*   
gre5h\se gas t is provid$ 9 ! ,fif?     

,assessm5t ,report ( ! ,int]gov]nm5tal  
,panel on ,climate ,*ange4  #gac4 ,!rmal
 en]gy report+ program  7a7 ,regulations
 ,n lat] ?an #ah mon?s aft] ! date (    
enactm5t ( ?is title1 ! ,adm9i/rator    
%all issue regulations e/abli%+ a       
program1 to be kn[n z ! ,f$]al !rmal    
en]gy report+ program4 ,su* regulations 
%all-- 7#a7 require ea* !rmal report+   
entity to submit to ! ,adm9i/rator data 
on-- 7,a7 ! type1 quality1 & quantity ( 
fuel us$ = onsite useful !rmal en]gy    
output production by su* !rmal report+  
entity2  7,b7 ! quantity ( useful !rmal 
en]gy output produc$ by su* !rmal       
report+ entity z calculat$ pursuant to  
subsection 7e72 &  7,c7 ! quantity (    
gre5h\se gas emissions associat$ ) su*  
useful !rmal en]gy output production2   
7#b7 require !rmal report+ entities to  
submit to ! ,adm9i/rator data suffici5t 
to ensure compliance ) or implem5tation 
( ! requirem5ts ( ?is title2  7#c7      
ensure ! complet5ess1 consi/5cy1        
transp>5cy1 accuracy1 precision1 &      

reliability ( data ga!r$ "u ! ,f$]al    
!rmal en]gy report+ program2  7#d7      
include me?ods = avoid+ d\ble report+ to
 ! maximum ext5t possible2  7#e7 require
 t !rmal report+ entities provide ! data
 requir$ 9 ?is section 9 reports        
submitt$ electronically to !            
,adm9i/rator1 9 su* =m & conta9+ su*    
in=mation z may be requir$ by !         
,adm9i/rator2  7#f7 include requirem5ts 
= keep+ records support+ or relat$ to1 &
 protocols = audit+1 data submitt$ "u ! 
,f$]al !rmal en]gy report+ program2     
7#g7 e/abli% consi/5t policies =        
calculat+ c>bon cont5t & gre5h\se gas   
emissions = any type ( fuel = :i* data  
is submitt$ "u ! ,f$]al !rmal en]gy     
report+ program2  7#h7 provide =        
imm$iate dissem9ation1 to ,/ates &      
,indian ,tribes1 ( all data report$ "u !
 ,f$]al !rmal en]gy report+ program z   
soon z practicable aft] electronic audit
 by ! ,adm9i/rator & any result+        
correction ( data1 except t data %all n 
be dissem9at$ "u ?is p>agraph if-- 7,a7 

nondissem9ation ( ! data is vital to !  
national security ( ! ,unit$ ,/ates1 z  
det]m9$ by ! ,presid5t2 or  7,b7 ! data 
is confid5tial bus9ess in=mation t _c be
 d]iv$ f in=mation t is o!rwise publicly
 available & t w\ld cause significant   
calculable competitive h>m if publi%$1  
except t data t is confid5tial bus9ess  
in=mation %all be provid$ to a ,/ate or 
,indian ,tribe )9 ^: jurisdiction !     
!rmal report+ entity is locat$ if !     
,adm9i/rator det]m9es t su* ,/ate or    
,indian ,tribe has 9 effect protections 
= confid5tial bus9ess in=mation t are at
 lea/ z protective z protections        
applicable to ! ,f$]al ,gov]nm5t2  7#i7 
provide t ! ,adm9i/rator publi% an      
aggregate summ>y ( all data report$ "u !
 ,f$]al !rmal en]gy report+ program     
publicly on ! int]net z soon z          
practicable aft] electronic audit by !  
,adm9i/rator & any result+ correction ( 
data1 includ+ publication (-- 7,a7 any  
confid5tial bus9ess data "u p>agraph    
7#h77;,b72 &  7,b7 at ! discretion ( !  

,presid5t1 data ! nondissem9ation ( :i* 
0 det]m9$ to be vital to ! national     
security ( ! ,unit$ ,/ates "u p>agraph  
7#h77;,a72  7#aj7 prescribe me?ods by   
:i* ! ,adm9i/rator %all1 9 cases 9 :i*  
satisfactory data are n submitt$ by a   
!rmal report+ entity "u ! ,f$]al !rmal  
en]gy report+ program to ! ,adm9i/rator 
= any p]iod ( "t1 e/imate ! data = su*  
!rmal report+ entity requir$ "u p>agraph
 7#a7 )-- 7,a7 9 ! case ( a !rmal       
report+ entity t is a qualifi$ !rmal    
facility or a qualifi$ cog5]ation       
facility1 an e/imate ( ! highe/ gre5h\se
 gas emission levels t may h occurr$    
dur+ ! p]iod = :i* data are miss+2 or   
7,b7 9 ! case ( any o!r !rmal report+   
entity1 a reasonable e/imate ( !        
gre5h\se gas emission levels t may h    
occurr$ dur+ ! p]iod = :i* data are     
miss+2  7#aa7 require ! designation ( a 
designat$ repres5tative = ea* !rmal     
report+ entity2  7#ab7 require an       
appropriate c]tification1 by ! designat$
 repres5tative = ! !rmal report+ entity1

 ( accurate & complete acc\nt+ ( ! data 
requir$ "u p>agraph 7#a71 z det]m9$ by !
 ,adm9i/rator2 &  7#ac7 include         
requirem5ts = ! submission ( o!r data   
necess>y = accurate & complete acc\nt+ (
 ! quantity ( useful !rmal en]gy output1
 & ! quantity ( gre5h\se gas emissions  
associat$ ) su* useful !rmal en]gy      
output production1 z det]m9$ by !       
,adm9i/rator1 includ+ data = quality    
assurance ( monitor+ sy/ems & o!r       
measurem5t devices4  7b7 ,tim+  7#a7    
,cal5d> ye>s #bjai ?r\gh #bjbb  7,a7 ,9 
g5]al ,n lat] ?an ,m>* #ba1 #bjbc1 ea*  
!rmal report+ entity %all submit to !   
,adm9i/rator data requir$ "u ! ,f$]al   
!rmal en]gy report+ program ) respect to
 ea* ( cal5d> ye>s #bjai ?r\gh #bjbb4   
7,b7 ,waiv] or modification ,!          
,adm9i/rator may waive or modify report+
 requirem5ts = cal5d> ye>s #bjai ?r\gh  
#bjbb = !rmal report+ entities to !     
ext5t t ! ,adm9i/rator det]m9es t !     
!rmal report+ entities did n keep data  
or records necess>y to meet su* report+ 

requirem5ts4 ,! ,adm9i/rator may1 9     
addition to or 9 lieu ( su* report+     
requirem5ts1 collect additional         
in=mation on en]gy consumption &        
production4  7#b7 ,subsequ5t cal5d> ye>s
 ,) respect to cal5d> ye> #bjbc & ea*   
subsequ5t cal5d> ye>1 ea* !rmal report+ 
entity %all submit qu>t]ly data requir$ 
"u ! ,f$]al !rmal en]gy report+ program 
to ! ,adm9i/rator n lat] ?an #fj days   
aft] ! end ( ! applicable qu>t]1 except 
:5 ! data is already be+ report$ to !   
,adm9i/rator on an e>li] timeframe =    
ano!r program4  7c7 ,waiv] ( report+    
requirem5ts = specific entities ,!      
,adm9i/rator may waive report+          
requirem5ts "u ?is section = specific   
entities to ! ext5t t ! ,adm9i/rator    
det]m9es t suffici5t & equally or m     
reliable v]ifi$ & timely data are       
available to ! ,adm9i/rator & ! public  
"u o!r /atutory requirem5ts4  7d7       
,int]relation%ip ) o!r sy/ems  7#a7 ,9  
g5]al ,9 develop+ ! regulations issu$ "u
 subsection 7a71 ! ,adm9i/rator %all    

take into acc\nt ! "w done by ! ,en]gy  
,in=mation ,adm9i/ration & o!r m&atory  
,f$]al1 ,/ate1 or multi/ate programs to 
collect in=mation t is simil> to !      
in=mation to be collect$ "u ?is section4
  7#b7 ,explanation ,regulations issu$  
"u subsection 7a7 %all include an       
explanation ( any major diff]5ces 9     
in=mation collect$ betwe5 ! ,f$]al !rmal
 en]gy report+ program & in=mation      
available f ! ,en]gy ,in=mation         
,adm9i/ration & o!r m&atory ,f$]al1     
,/ate1 or multi/ate programs to collect 
simil> in=mation4  7e7 ,calculation (   
useful !rmal en]gy output ,!            
,adm9i/rator & !rmal report+ entities   
%all-- 7#a7 9 ! case ( !rmal report+    
entities t h rev5ue-grade s5d out met]s1
 calculate useful !rmal en]gy output by 
us+ ! data provid$ by ^? met]s2 &  7#b7 
9 ! case ( !rmal report+ entities t d n 
h su* met]s1 or t h su* met]s b = :i* ! 
,adm9i/rator det]m9es t ! values obta9$ 
by calculat+ useful !rmal en]gy output  
"u p>agraph 7#a7 are unreasonable1      

calculate useful !rmal en]gy output bas$
 on ! met]$ fuel use = a giv5 qu>t]     
multipli$ by ! av]age conv]sion         
effici5cy ( fuel to useful !rmal en]gy  
output 9 all o!r simil>ly situat$       
facilities us+ ! same fuel4  #gad4 ,,eia
 & ,,epa report+  7a7 ,9 g5]al ,beg9n+ )
 cal5d> ye> #bjbb1 by ! end ( ea* mon?1 
! ,adm9i/rator ( ! ,en]gy ,in=mation    
,adm9i/ration %all provide to !         
,adm9i/rator ( ! ,environm5tal          
,protection ,ag5cy in=mation on ! total 
am\nt ( electricity produc$ f qualifi$  
electric facilities dur+ ! previ\s mon?4
  7b7 ,new qualifi$ electric facilities 
,! ,adm9i/rator ( ! ,environm5tal       
,protection ,ag5cy %all notify !        
,adm9i/rator ( ! ,en]gy ,in=mation      
,adm9i/ration :5ev] an electric facility
 ) a rat$ capacity ( less ?an #b        
megawatts elects to be classifi$ z a    
qualifi$ electric facility or a qualifi$
 cog5]ation facility "u section #gbd4   
,c ,program ,rules  #gba4 ,requirem5ts  
7a7 ,9 g5]al ,by #ab3ja a4m4 on ,april  

#a ( a cal5d> ye>1 a cov]$ entity %all  
surr5d] to ! ,adm9i/rator "o emission   
all[ance = ea* metric ton ( c>bon       
dioxide equival5t ( a gre5h\se gas      
emitt$ by ! cov]$ entity dur+ ! prec$+  
cal5d> ye>4  7b7 ,acquisition ( emission
 all[ances ,a cov]$ entity %all acquire 
emission all[ances z foll[s3 7#a7 ,by   
receiv+ emission all[ances z provid$ 9  
section #gbb4  7#b7 ,by pur*ase1        
ex*ange1 or transf] "u section #gbc4    
7c7 ,applicability ,! requirem5t ( ?is  
"p applies ) respect to cal5d> ye> #bjbc
 & subsequ5t cal5d> ye>s4  7d7 ,p]iod ( 
use ,an emission all[ance may be us$ by 
a cov]$ entity to comply ) subsection   
7a7 only =-- 7#a7 ! cal5d> ye> 9        
connection ) :i* x is di/ribut$ "u      
section #gbb2 or  7#b7 ! foll[+ cal5d>  
ye>4  7e7 ,adju/m5t ( deadl9e ,!        
,adm9i/rator may1 by rule1 e/abli% a    
deadl9e = compliance ) subsection 7a7 ) 
respect to a cal5d> ye> t is lat] ?an   
#ab3ja a4m4 on ,april #a ( ! foll[+     
cal5d> ye>1 z necess>y to ensure !      

availability ( gre5h\se gas emissions   
data1 b 9 no ev5t %all ! adju/$ deadl9e 
be lat] ?an ,june #a4  #gbb4            
,di/ribution ( emission all[ances  7a7  
,qualifi$ electric facilities ,dur+ a   
cal5d> ye>1 ! ,adm9i/rator %all         
di/ribute1 on a cont9ual basis1 to a    
qualifi$ electric facility = ea*        
megawatt h\r ( electricity produc$ by ! 
qualifi$ electric facility a numb] (    
emission all[ances 7or fractions !re(7  
equal to ! product ( "o multipli$ by !  
great] (-- 7#a7 z]o2 &  7#b7 ! less] (--
 7,a7 ! value equal to ! product ( #j4ic
 & ! prec$+ cal5d> ye>'s av]age c>bon   
int5sity = qualifi$ electric facilities2
  7,b7 ! value equal to ! diff]5ce (--  
7i7 ! prec$+ cal5d> ye>'s av]age c>bon  
int5sity = qualifi$ electric facilities2
 m9us  7ii7 ! product ( #j4jf multipli$ 
by cal5d> ye> #bjbb's av]age c>bon      
int5sity = qualifi$ electric facilities2
 or  7,c7 a value set by ! ,adm9i/rator 
= purposes ( ?is subsection to ensure t 
! aggregate quantity ( gre5h\se gas     

emissions f cov]$ entities does n exce$ 
! t>gets specifi$ 9 section #gjb7;a74   
7b7 ,qualifi$ !rmal facilities ,dur+ a  
cal5d> ye>1 ! ,adm9i/rator %all         
di/ribute1 on a cont9ual basis1 to a    
qualifi$ !rmal facility = ea* million   
,briti% !rmal units ( useful !rmal en]gy
 output produc$ by ! qualifi$ !rmal     
facility a numb] ( emission all[ances   
7or fractions !re(7 equal to ! product (
 "o multipli$ by ! great] (-- 7#a7 z]o2 
&  7#b7 ! less] (-- 7,a7 ! value equal  
to ! product ( #j4ic & ! prec$+ cal5d>  
ye>'s av]age c>bon int5sity = qualifi$  
!rmal facilities2  7,b7 ! value equal to
 ! diff]5ce (-- 7i7 ! prec$+ cal5d>     
ye>'s av]age c>bon int5sity = qualifi$  
!rmal facilities2 m9us  7ii7 ! product (
 #j4jf multipli$ by cal5d> ye> #bjbb's  
av]age c>bon int5sity = qualifi$ !rmal  
facilities2 or  7,c7 a value set by !   
,adm9i/rator = purposes ( ?is subsection
 to ensure t ! aggregate quantity (     
gre5h\se gas emissions f cov]$ entities 
does n exce$ ! t>gets specifi$ 9 section

 #gjb7;a74  7c7 ,qualifi$ cog5]ation    
facilities ,dur+ a cal5d> ye>1 !        
,adm9i/rator %all di/ribute1 on a       
cont9ual basis1 to a qualifi$ cog5]ation
 facility-- 7#a7 = ea* megawatt h\r (   
electricity produc$ by ! qualifi$       
cog5]ation facility1 a numb] ( emission 
all[ances 7or fractions !re(7 calculat$ 
9 accordance ) subsection 7a72 &  7#b7 =
 ea* million ,briti% !rmal units (      
useful !rmal en]gy output produc$ by !  
qualifi$ cog5]ation facility1 a numb] ( 
emission all[ances 7or fractions !re(7  
calculat$ 9 accordance ) subsection 7b74
  7d7 ,adju/$ di/ribution = ent]+ into  
c]ta9 agreem5ts  7#a7 ,9 g5]al ,if an   
exi/+ facility or a newly con/ruct$     
l[-emission facility ent]s into an      
agreem5t describ$ 9 p>agraph 7#b71 !n   
ov] ! p]iod ( ! agreem5t ! ,adm9i/rator 
%all di/ribute emission all[ances to su*
 facility 9 accordance ) ?is subsection 
9 lieu ( subsection 7a71 7b71 or 7c74   
7#b7 ,agreem5t ,an agreem5t describ$ 9  
?is p>agraph is a #aj-ye> or long]      

bilat]al agreem5t sign$ aft] ! date (   
enactm5t ( ?is title betwe5 an exi/+    
qualifi$ electric facility1 an exi/+    
qualifi$ !rmal facility1 or an exi/+    
qualifi$ cog5]ation facility1 & a newly 
con/ruct$ l[-emission facility = !      
annual pur*ase ( a specifi$ am\nt (     
emission all[ances4  7#c7 ,def9itions ,9
 ?is subsection3 7,a7 ,! t]m exi/+      
means1 ) respect to a facility1 9       
op]ation z ( ! date ( entry into an     
agreem5t describ$ 9 p>agraph 7#b74  7,b7
 ,! t]m exi/+ facility means an exi/+   
qualifi$ electric facility1 an exi/+    
qualifi$ !rmal facility1 or an exi/+    
qualifi$ cog5]ation facility t is a p>ty
 to an agreem5t describ$ 9 p>agraph     
7#b74  7,c7 ,! t]m newly con/ruct$ means
 t ! facility involv$ did n produce     
electricity or useful !rmal en]gy output
 prior to ! date ( entry into an        
agreem5t describ$ 9 p>agraph 7#b74  7,d7
 ,! t]m newly con/ruct$ l[-emission     
facility means a newly con/ruct$        
qualifi$ electric facility1 a newly     

con/ruct$ qualifi$ !rmal facility1 or a 
newly con/ruct$ qualifi$ cog5]ation     
facility t w\ld emit a less] quantity ( 
gre5h\se gases p] megawatt h\r (        
electricity or p] million ,briti% !rmal 
units ( useful !rmal en]gy output1 z    
applicable1 ?an ! ,adm9i/rator          
di/ributes to cov]$ entities "u         
subsection 7a71 7b71 or 7c71 z          
applicable1 9 ! fir/ full cal5d> ye>    
dur+ :i* ! newly con/ruct$ facility     
op]ates & is a p>ty to an agreem5t      
describ$ 9 p>agraph 7#b74  7#d7         
,di/ribution ( all[ances to an exi/+    
facility  7,a7 ,9 g5]al ,= cal5d> ye>s t
 are cov]$ by an agreem5t describ$ 9    
p>agraph 7#b71 beg9n+ ) ! fir/ full     
cal5d> ye> dur+ :i* ! newly con/ruct$   
l[-emission facility op]ates1 !         
,adm9i/rator %all di/ribute1 on a       
cont9ual basis1 to ! exi/+ facility--   
7i7 = megawatt h\rs ( electricity or    
million ,briti% !rmal units ( useful    
!rmal en]gy output1 z applicable1       
produc$ by ! exi/+ facility t are cov]$ 

by ! agreem5t1 a numb] ( emission       
all[ances t is equal to-- 7,i7 su* numb]
 ( megawatt h\rs or million ,briti%     
!rmal units1 z applicable2 multipli$ by 
7,,ii7 ! av]age c>bon int5sity =        
qualifi$ electric facilities or ! av]age
 c>bon int5sity = qualifi$ !rmal        
facilities1 z applicable1 = su* fir/    
full cal5d> ye>2 &  7ii7 = megawatt h\rs
 ( electricity or million ,briti% !rmal 
units ( useful !rmal en]gy output1 z    
applicable1 produc$ by ! exi/+ facility 
exce$+ ^? t are cov]$ by ! agreem5t1 !  
numb] ( emission all[ances calculat$ "u 
subsection 7a71 7b71 or 7c71 z          
applicable4  7,b7 ,calculation (        
megawatt h\rs or million ,briti% !rmal  
units cov]$ by agreem5t ,= purposes (   
subp>agraph 7,a71 ! numb] ( megawatt    
h\rs ( electricity or million ,briti%   
!rmal units ( useful !rmal en]gy output1
 z applicable1 produc$ by an exi/+      
facility t are cov]$ by ! agreem5t      
describ$ 9 p>agraph 7#b7 %all be equal  
to-- 7i7 ! numb] ( emission all[ances   

sold to ! exi/+ facility pursuant to !  
agreem5t = ! fir/ full cal5d> ye>       
describ$ 9 subp>agraph 7,a71 divid$ by !
 diff]5ce (-- 7,i7 ! numb] ( emission   
all[ances surr5d]$ by ! exi/+ facility  
to ! ,adm9i/rator = su* fir/ full cal5d>
 ye>2 m9us  7,,ii7 ! numb] ( emission   
all[ances di/ribut$ to ! exi/+ facility 
by ! ,adm9i/rator = su* fir/ full cal5d>
 ye>2 multipli$ by  7ii7 ! total numb] (
 megawatt h\rs ( electricity or million 
,briti% !rmal units ( useful !rmal en]gy
 output1 z applicable1 produc$ by !     
exi/+ facility 9 su* fir/ full cal5d>   
ye>4  7#e7 ,di/ribution ( all[ances to a
 newly con/ruct$ l[-emission facility   
7,a7 ,9 g5]al ,= cal5d> ye>s t are cov]$
 by an agreem5t describ$ 9 p>agraph     
7#b71 beg9n+ ) ! fir/ full cal5d> ye>   
dur+ :i* ! newly con/ruct$ l[-emission  
facility op]ates1 ! ,adm9i/rator %all   
di/ribute1 on a cont9ual basis1 to !    
newly con/ruct$ l[-emission facility--  
7i7 = megawatt h\rs ( electricity or    
million ,briti% !rmal units ( useful    

!rmal en]gy output1 z applicable1       
produc$ by ! newly con/ruct$ l[-emission
 facility t are cov]$ by ! agreem5t1 a  
numb] ( emission all[ances t is equal   
to-- 7,i7 su* numb] ( megawatt h\rs or  
million ,briti% !rmal units ( useful    
!rmal en]gy output2 multipli$ by  7,,ii7
 ! av]age c>bon int5sity = qualifi$     
electric facilities or ! av]age c>bon   
int5sity = qualifi$ !rmal facilities1 z 
applicable1 9 su* fir/ full cal5d> ye>2 
&  7ii7 = megawatt h\rs ( electricity or
 million ,briti% !rmal units ( useful   
!rmal en]gy output1 z applicable1       
produc$ by ! newly con/ruct$ l[-emission
 facility exce$+ ^? t are cov]$ by !    
agreem5t1 ! numb] ( emission all[ances  
calculat$ "u subsection 7a71 7b71 or    
7c71 z applicable4  7,b7 ,calculation ( 
megawatt h\rs or million ,briti% !rmal  
units cov]$ by agreem5t ,= purposes (   
subp>agraph 7,a71 ! numb] ( megawatt    
h\rs ( electricity or million ,briti%   
!rmal units ( useful !rmal en]gy output1
 z applicable1 produc$ by a newly       

con/ruct$ l[-emission facility t are    
cov]$ by ! agreem5t describ$ 9 p>agraph 
7#b7 %all be equal to-- 7i7 ! numb] (   
emission all[ances sold to ! exi/+      
facility pursuant to ! agreem5t = ! fir/
 full cal5d> ye> describ$ 9 subp>agraph 
7,a71 divid$ by ! diff]5ce (-- 7,i7 !   
numb] ( emission all[ances surr5d]$ by !
 newly con/ruct$ l[-emission facility to
 ! ,adm9i/rator = su* fir/ full cal5d>  
ye>2 m9us  7,,ii7 ! numb] ( emission    
all[ances di/ribut$ to ! newly con/ruct$
 l[-emission facility by ! ,adm9i/rator 
= su* fir/ full cal5d> ye>2 multipli$ by
  7ii7 ! total numb] ( megawatt h\rs (  
electricity or million ,briti% !rmal    
units ( useful !rmal en]gy output1 z    
applicable1 produc$ by ! exi/+ facility 
9 su* fir/ full cal5d> ye>4  7#f7       
,conditions ,an exi/+ facility or newly 
con/ruct$ l[-emission facility may      
receive emission all[ances "u ?is       
subsection only if-- 7,a7 su* facility  
provides ! ,adm9i/rator a copy (-- 7i7 !
 applicable bilat]al agreem5t2 &  7ii7  

any am5dm5t to su* bilat]al agreem5t )9 
#cj days ( ! am5dm5t be+ made2 &  7,b7 !
 ,adm9i/rator c]tifies t all[+ !        
facility to ma9ta9 ! bilat]al agreem5t  
is n impact+ ! ability to a*ieve !      
t>gets specifi$ 9 section #gjb7;a7-- 7i7
 ^u receiv+ ! applicable bilat]al       
agreem5t1 & at lea/ once e #e ye>s      
!reaft]2 &  7ii7 ^u receiv+ any am5dm5t 
!reto4  #gbc4 ,trad+  7a7 ,p]mitt$      
transactions ,except z o!rwise provid$ 9
 ?is title1 ! lawful hold] ( an emission
 all[ance may1 )\t re/riction1 sell1    
ex*ange1 transf]1 hold1 or surr5d] to ! 
,adm9i/rator1 ! emission all[ance4  7b7 
,id5tification numb]s ,! ,adm9i/rator   
%all assign to ea* emission all[ance a  
unique id5tification numb]4  7c7 ,legal 
/atus ( emission all[ances  7#a7 ,9     
g5]al ,an emission all[ance di/ribut$ by
 ! ,adm9i/rator "u ?is title does n     
con/itute a prop]ty "r4  7#b7 ,t]m9ation
 or limitation ,no?+ 9 ?is ,act or any  
o!r provision ( law %all be con/ru$ to  
limit or alt] ! au?ority ( ! ,unit$     

,/ates to t]m9ate or limit emission     
all[ances4  7#c7 ,o!r provisions ,except
 z o!rwise specifi$ 9 ?is ,act1 no?+ 9  
?is ,act relat+ to emission all[ances   
di/ribut$ "u ?is title %all affect !    
application ( any o!r provision ( law to
 a cov]$ entity1 or ! responsibility = a
 cov]$ entity to comply ) any su*       
provision ( law4  7d7 ,effectiv5ess (   
emission all[ance transf]s ,no transf] (
 an emission all[ance %all be effective 
= purposes ( ?is title until a          
c]tification ( ! transf]1 sign$ by !    
designat$ repres5tative ( ! transf]or1  
is receiv$ & record$ by ! ,adm9i/rator 9
 accordance ) regulations promulgat$ "u 
section #gbi4  #gbd4 ,volunt>y program  
p>ticipation  7a7 ,volunt>y program     
p>ticipation z qualifi$ electric        
facility  7#a7 ,9 g5]al ,a g5]ator t    
produces electricity ) a rat$ capacity (
 less ?an #b megawatts may1 9 accordance
 ) ?is subsection1 elect to be classifi$
 z a qualifi$ electric facility =       
purposes ( ?is title4  7#b7             

,qualification ,9 ord] = a g5]ator ) a  
rat$ capacity ( less ?an #b megawatts to
 be classifi$ z a qualifi$ electric     
facility1 ! g5]ator %all-- 7,a7 submit a
 notification to ! ,adm9i/rator ( !     
int5tion ( ! g5]ator to elect to be     
classifi$ z a qualifi$ electric         
facility2  7,b7 receive approval ( su*  
classification f ! ,adm9i/rator2 &  7,c7
 designate a repres5tative z requir$ "u 
section #gbg7;b74  7#c7 ,approval ,n    
lat] ?an #ij aft] receipt ( a           
notification "u p>agraph 7#b77;,a71 !   
,adm9i/rator %all notify ! applicable   
g5]ator :e!r ! ,adm9i/rator approves or 
disapproves ! classification ( su*      
g5]ator z a qualifi$ electric facility4 
7#d7 ,classification ,if a g5]ator      
elects to be classifi$ z a qualifi$     
electric facility pursuant to ?is       
subsection1 su* classification %all     
rema9 9 effect unless ! facility        
produces no electricity ov] ! previ\s   
cal5d> ye>4  7b7 ,volunt>y program      
p>ticipation z a qualifi$ !rmal facility

  7#a7 ,9 g5]al ,a g5]ator t produces   
!rmal en]gy ) a rat$ fuel-bas$ capacity 
( less ?an #ej1jjj1jjj ,briti% !rmal    
units on a high] heat+ value basis p]   
h\r may1 9 accordance ) ?is subsection1 
elect to be classifi$ z a qualifi$ !rmal
 facility = purposes ( ?is title4  7#b7 
,qualification ,9 ord] = a g5]ator t    
produces !rmal en]gy ) a rat$ fuel-bas$ 
capacity ( less ?an #ej1jjj1jjj ,briti% 
!rmal units on a high] heat+ value basis
 p] h\r to be classifi$ z a qualifi$    
!rmal facility1 ! facility %all-- 7,a7 h
 a rat$ fuel-bas$ capacity ( no less ?an
 #b1jjj1jjj ,briti% !rmal units on a    
high] heat+ value basis p] h\r2  7,b7   
submit a notification to ! ,adm9i/rator 
( ! int5tion ( ! g5]ator to elect to be 
classifi$ z a qualifi$ !rmal facility2  
7,c7 receive approval ( su*             
classification f ! ,adm9i/rator2  7,d7  
report annually to ! ,adm9i/rator       
relevant in=mation collect$ on type1    
quality1 & quantity ( fuel us$ = onsite 
useful !rmal en]gy output production1 ! 

quantity ( useful !rmal en]gy output1 & 
! quantity ( associat$ gre5h\se gas     
emissions "u section #gac2 &  7,e7      
designate a repres5tative z requir$ "u  
section #gbg7;b74  7#c7 ,classification 
,if a g5]ator t produces useful !rmal   
en]gy output elects to be classifi$ z a 
qualifi$ !rmal facility pursuant to ?is 
subsection1 su* classification %all     
rema9 9 effect unless ! facility-- 7,a7 
falls bel[ a rat$ fuel-bas$ capacity (  
#b1jjj1jjj ,briti% !rmal units on a     
high] heat+ value basis p] h\r2 or  7,b7
 produces no useful !rmal en]gy output  
ov] ! previ\s cal5d> ye>4  7c7 ,volunt>y
 program p>ticipation z qualifi$        
cog5]ation facility  7#a7 ,9 g5]al ,a   
g5]ator t simultane\sly produces useful 
!rmal en]gy output & electricity ) a    
rat$ capacity ( less ?an #b megawatts   
may1 9 accordance ) ?is subsection1     
elect to be classifi$ z a qualifi$      
cog5]ation facility = purposes ( ?is    
title4  7#b7 ,qualification ,9 ord] = a 
g5]ator t simultane\sly produces useful 

!rmal en]gy output & electricity ) a    
rat$ capacity ( less ?an #b megawatts to
 be classifi$ z a qualifi$ cog5]ation   
facility1 ! facility %all-- 7,a7 submit 
a notification to ! ,adm9i/rator ( !    
int5tion ( ! g5]ator to elect to be     
classifi$ z a qualifi$ cog5]ation       
facility2  7,b7 receive approval ( !    
classification f ! ,adm9i/rator2  7,c7  
report annually to ! ,adm9i/rator       
relevant in=mation collect$ on type1    
quality1 & quantity ( fuel us$ = onsite 
useful !rmal en]gy output production1 ! 
quantity ( useful !rmal en]gy output1 & 
! quantity ( associat$ gre5h\se gas     
emissions "u section #gac2 &  7,d7      
designate a repres5tative z requir$ "u  
section #gbg7;b74  7#c7 ,classification 
,if a g5]ator elects to be classifi$ z a
 qualifi$ cog5]ation facility pursuant  
to ?is subsection1 su* classification   
%all rema9 9 effect unless ! facility   
produces no electricity ov] ! previ\s   
cal5d> ye>4  #gbe4 ,p5alty =            
noncompliance  7a7 ,civil p5alty  7#a7  

,9 g5]al ,! own] or op]ator ( a cov]$   
entity t fails to surr5d] an emission   
all[ance z requir$ by section #gba7;a7  
%all be liable = paym5t to !            
,adm9i/rator ( a p5alty 9 ! am\nt       
describ$ 9 p>agraph 7#b74  7#b7 ,am\nt  
,! am\nt ( a p5alty "u p>agraph 7#a7    
%all be equal to ! product (-- 7,a7     
twice ! highe/ monet>y value 7z indicat$
 by ! emission all[ance track+ sy/em    
e/abli%$ pursuant to section #gbf ov] ! 
previ\s cal5d> ye>7 = ! sale or transf] 
( an emission all[ance2 multipli$ by    
7,b7 ! numb] ( emission all[ances :i* ! 
own] or op]ator ( ! cov]$ entity fail$  
to surr5d] z describ$ 9 p>agraph 7#a74  
7#c7 ,tim+ ,a p5alty requir$ "u ?is     
subsection %all be imm$iately due &     
payable to ! ,adm9i/rator1 )\t dem&1 9  
accordance ) regulations promulgat$ "u  
section #gbi4  7#d7 ,no effect on       
liability ,a p5alty due & payable by !  
own]s or op]ators ( a cov]$ entity "u   
?is subsection %all n dim9i% ! liability
 ( ! own]s or op]ators = any f9e1       

p5alty1 or assessm5t aga9/ ! own]s or   
op]ators = ! same violation "u any o!r  
provision ( ?is ,act or any o!r law4    
7b7 ,replacem5t emission all[ances ,!   
own] or op]ator ( a cov]$ entity t fails
 to surr5d] "o or m emission all[ances z
 requir$ by section #gba7;a7 = a cal5d> 
ye> %all surr5d] a quantity ( emission  
all[ances t is equal to ! quantity !    
cov]$ entity fail$ to surr5d] 79        
addition to ! emission all[ances o!rwise
 requir$ to be surr5d]$7 by ! ,april #a/
 deadl9e ( ! second succe$+ cal5d> ye>4 
#gbf4 ,emission all[ance track+ sy/em ,!
 regulations promulgat$ "u section #gbi 
%all provide =-- 7#a7 ! e/abli%m5t ( a  
sy/em to di/ribute emission all[ances to
 cov]$ entities2  7#b7 a process to     
create acc\nts 9 :i* cov]$ entities &   
any o!r entities t buy or sell emission 
all[ances may hold emission all[ances2  
7#c7 ! e/abli%m5t ( an emission all[ance
 track+ sy/em to track-- 7,a7 ! numb] ( 
emission all[ances transf]r$2  7,b7 !   
price or monet>y value = :i* emission   

all[ances are transf]r$2  7,c7 ! date ( 
ea* su* transf]2  7,d7 ! p>ties involv$ 
9 ! transf]2 &  7,e7 any additional     
in=mation ! ,adm9i/rator det]m9es       
necess>y = ea* su* transf]2 &  7#d7 !   
publication by ! ,adm9i/rator on !      
int]net (-- 7,a7 a weekly summ>y (      
av]age prices ( emission all[ances      
weight$ by transaction size1 ! total    
numb] ( emission all[ances trad$1 & any 
o!r additional in=mation det]m9$ by !   
,adm9i/rator z necess>y = ! ord]ly &    
competitive function+ ( any emission    
all[ance m>ket2  7,b7 ! numb] ( emission
 all[ances di/ribut$ by ! ,adm9i/rator  
"u section #gbb ea* mon? to qualifi$    
electric facilities2  7,c7 ! numb] (    
emission all[ances di/ribut$ by !       
,adm9i/rator "u section #gbb ea* mon? to
 qualifi$ !rmal facilities2  7,d7 !     
numb] ( emission all[ances di/ribut$ by 
! ,adm9i/rator "u section #gbb ea* mon? 
to qualifi$ cog5]ation facilities2  7,e7
 ! numb] ( emission all[ances di/ribut$ 
by ! ,adm9i/rator "u section #gbb dur+ a

 cal5d> ye> t are held by qualifi$      
electric facilities at ! end ( ea* mon?2
  7,f7 ! numb] ( emission all[ances     
di/ribut$ by ! ,adm9i/rator "u section  
#gbb dur+ a cal5d> ye> t are held by    
qualifi$ !rmal facilities at ! end ( ea*
 mon?2  7,g7 ! numb] ( emission         
all[ances di/ribut$ by ! ,adm9i/rator "u
 section #gbb dur+ a cal5d> ye> t are   
held by qualifi$ cog5]ation facilities  
at ! end ( ea* mon?2  7,h7 ! numb] (    
emission all[ances di/ribut$ by !       
,adm9i/rator "u section #gbb dur+ a     
cal5d> ye> t are held by entities o!r   
?an cov]$ entities at ! end ( ea* mon?2 
7,i7 ! numb] ( emission all[ances       
surr5d]$ to ! ,adm9i/rator ea* ye> by   
qualifi$ electric facilities2  7,j7 !   
numb] ( emission all[ances surr5d]$ to !
 ,adm9i/rator ea* ye> by qualifi$ !rmal 
facilities2 &  7,k7 ! numb] ( emission  
all[ances surr5d]$ to ! ,adm9i/rator ea*
 ye> by qualifi$ cog5]ation facilities4 
#gbg4 ,o!r program rules  7a7 ,?re%old  
review ,= ea* category ( cov]$ entities 

li/$ 9 section #gja7e71 ! ,adm9i/rator--
 7#a7 9 #bjbe1 & once e #e ye>s !reaft]1
 %all review ! ?re%old = electricity or 
useful !rmal en]gy output production t  
is us$ to def9e cov]$ entities 9 su*    
category2 &  7#b7 may by rule l[] su*   
?re%old aft] consid]ation (-- 7,a7      
gre5h\se gas emissions f cov]$ entities 
9 su* category1 & f o!r entities ( !    
same type t produce less electricity or 
useful !rmal en]gy output 7includ+      
gre5h\se gas emission s\rces t comm5ce  
op]ation aft] ! date ( enactm5t ( ?is   
title t are n cov]$ entities72 &  7,b7  
:e!r great] gre5h\se gas emission       
r$uctions c be co/-effectively a*iev$ by
 l[]+ ! applicable ?re%old4  7b7        
,designat$ repres5tatives ,! regulations
 promulgat$ "u section #gbi %all require
 t ea* cov]$ entity1 & ea* entity hold+ 
an emission all[ance or receiv+ an      
emission all[ance f ! ,adm9i/rator "u   
?is title1 submit to ! ,adm9i/rator a   
c]tificate ( repres5tation designat+ a  
designat$ repres5tative4  7c7 ,sav+s    

provision ,no?+ 9 ?is title %all be     
con/ru$-- 7#a7 z requir+ a *ange ( any  
k9d 9 any ,/ate law regulat+ electric   
utility rates & *>ges1 or z affect+ any 
,/ate law reg>d+ su* ,/ate regulation1  
or z limit+ ,/ate regulation 7includ+   
any prud5cy review7 "u su* a ,/ate law2 
7#b7 z modify+ ! ,f$]al ,p[] ,act or z  
affect+ ! au?ority ( ! ,f$]al ,en]gy    
,regulatory ,commission "u t ,act2 or   
7#c7 z int]f]+ ) or impair+ any program 
= competitive bidd+ = p[] supply 9 a    
,/ate 9 :i* su* a program is e/abli%$4  
7d7 ,position limits  7#a7 ,9 g5]al ,!  
regulations promulgat$ "u section #gbi  
%all limit ! numb] ( emission all[ances 
t an entity may hold at any "t 9 a      
cal5d> ye>4  7#b7 ,limits ,!            
,adm9i/rator1 9 consultation ) !        
,commodity ,futures ,trad+ ,commission1 
%all set limits "u p>agraph 7#a7-- 7,a7 
on ! numb] ( emission all[ances         
di/ribut$ 9 a cal5d> ye> t an entity may
 hold 9 su* cal5d> ye>2  7,b7 on ! total
 numb] ( emission all[ances t an entity 

may hold 9 a cal5d> ye>2  7,c7 s t no   
entity may at any "t hold a numb] (     
emission all[ances t may influ5ce !     
price ( emission all[ances2 &  7,d7 9 a 
mann] t w ensure adequate liquidity =   
buy]s & sell]s ( emission all[ances4    
7e7 ,/atus ( surr5d]$ emission all[ances
 ,once an emission all[ance is surr5d]$ 
to ! ,adm9i/rator "u ?is title1 !       
emission all[ance %all be disqualifi$ f 
subsequ5t use "u ?is title1 includ+     
subsequ5t sale1 ex*ange1 or submission4 
7f7 ,ord]ly & competitive m>ket ,!      
regulations promulgat$ "u section #gbi  
%all specify all proc$ures & requirem5ts
 necess>y = ! ord]ly & competitive      
function+ ( any emission all[ance m>ket4
  #gbh4 ,ov]sight  7a7 ,9 g5]al ,n lat] 
?an ,janu>y #a1 #bjbb1 & e #b ye>s      
!reaft]1 ! ,comptroll] ,g5]al ( ! ,unit$
 ,/ates %all submit to ,congress a      
report on-- 7#a7 ! results (            
implem5tation ( ?is title2 &  7#b7 !    
progress 9 meet+ ! t>gets specifi$ 9    
section #gjb7;a74  7b7 ,cont5ts ,ea*    

report "u subsection 7a7 %all include-- 
7#a7 a compreh5sive evaluation (-- 7,a7 
! effici5cy1 transp>5cy1 & s\ndness ( ! 
di/ribution ( emission all[ances "u ?is 
title1 & ! ,f$]al !rmal en]gy report+   
program2  7,b7 ! co/-effectiv5ess ( ?is 
title 9 a*iev+ ! t>gets specifi$ 9      
section #gjb7;a72 &  7,c7 ! effectiv5ess
 ( ?is title 9 facilitat+ ! deploym5t ( 
additional z]o-c>bon electricity        
capacity & useful !rmal en]gy output    
capacity2 &  7#b7 recomm5dations1 if    
any1 = legislative1 regulatory1 or      
adm9i/rative *anges ) respect to ?is    
title to improve its effectiv5ess & to  
r$uce or elim9ate any id5tifi$ wa/e1    
fraud1 or abuse4  7c7 ,additional       
cont5ts ,ea* report "u subsection 7a7   
%all address ! effectiv5ess ( ?is title 
9-- 7#a7 creat+ & pres]v+ jobs2  7#b7   
ensur+ a manageable transition to a     
z]o-emission economy = work+ families & 
work]s2  7#c7 r$uc+1 or enhanc+         
seque/ration (1 gre5h\se gases2  7#d7   
develop+ clean te*nologies2 &  7#e7     

ma9ta9+ a liquid m>ket = emission       
all[ances4  #gbi4 ,regulations ,except z
 o!rwise specifi$ 9 ?is title1 !        
,adm9i/rator %all promulgate f9al       
regulations to c>ry out ?is title n lat]
 ?an #bd mon?s aft] ! date ( enactm5t ( 
?is title4  #gcj4 ,sav+s provisions     
,no?+ 9 ?is title %all be int]pret$ to  
relieve any p]son f comply+ ) any       
requirem5t ( ano!r title ( ?is ,act4  4