,i #aaith ,,congress #ast ,session ,h4 ,r4 #bagg ,,in ,,the ,,house ,,of ,,representatives ,march #ah1 #bjbe,mr4 ,casten 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 energy performance standard for large electricity generators and thermal energy users1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,tradeable ,energy ,performance ,standards ,act4 #b4 ,establishing tradeable energy performance standards ,the ,clean ,air ,act 7#db ,u4,s4,c4 #gdja et seq47 is amended by adding after title ,,vi the following3 ,,vii ,,tradeable ,,energy ,,performance ,,standards ,sec4 #gja4 ,definitions4,sec4 #gjb4 ,emission allowance submission requirement4,sec4 #gjc4 ,emission allowance distribution4,sec4 #gjd4 ,trading of emission allowances4,sec4 #gje4 ,emission allowance bilateral purchase agreements4,sec4 #gjf4 ,voluntary program participation4,sec4 #gjg4 ,emission allowance tracking system4,sec4 #gjh4 ,offset program4,sec4 #gji4 ,penalty for noncompliance4,sec4 #gaj4 ,comptroller general reports4,sec4 #gaa4 ,final regulations4,sec4 #gab4 ,savings provisions4 #gja4 ,definitions ,in this title3 7#a7 ,alternative compliance payment ,the term ,alternative ,compliance ,payment means a payment made under section #gjc7;e7 in lieu of the submission of an emission allowance4 7#b7 ,bilateral purchase agreement ,the term bilateral purchase agreement means an agreement-- 7,a7 entered into after the date of enactment of this title2 7,b7 for a term of at least #aj years2 7,c7 between the owner or operator of an ,existing ,covered ,facility and the owner or operator of a ,newly ,constructed ,low-,emission ,covered ,facility2 and 7,d7 in which the owner or operator of an ,existing ,covered ,facility agrees to purchase some or all of the emissions allowances distributed to the owner or operator of a ,newly ,constructed ,low-,emission ,covered ,facility4 7#c7 ,covered cogeneration facility ,the term ,covered ,cogeneration ,facility means a facility that simultaneously produces useful thermal energy output and electricity and-- 7,a7 has a rated electric capacity of #b megawatts or greater2 or 7,b7 is a facility for which the ,administrator has approved a request under section #gjf7;a77#c74 7#d7 ,covered electric facility ,the term ,covered ,electric ,facility means a facility that produces electricity and-- 7,a7 has a rated electric capacity of #b megawatts or greater2 or 7,b7 is a facility for which the ,administrator has approved a request under section #gjf7;a77#a74 7#e7 ,covered facility ,the term ,covered ,facility means a ,covered ,electric ,facility1 a ,covered ,thermal ,facility1 or a ,covered ,cogeneration ,facility4 7#f7 ,covered thermal facility ,the term ,covered ,thermal ,facility means a facility-- 7,a7 that produces useful thermal energy output at a ,rated ,fuel-,based ,capacity of at least #ej million ,british thermal units per hour1 calculated on a higher heating value basis1 excluding any facility 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 for which the ,administrator has approved a request under section #gjf7;a77#b74 7#g7 ,designated representative ,the term designated representative means an individual for which a certificate of representation has been submitted under section #gjc7;e77#c74 7#h7 ,emission allowance ,the term emission allowance means a limited authorization to emit #a metric ton of carbon dioxide that is distributed under section #gjc4 7#i7 ,existing ,covered ,facility ,the term ,existing ,covered ,facility means a ,covered ,facility-- 7,a7 the owner or operator of which is a party to a bilateral purchase agreement2 and 7,b7 that produced electricity or useful thermal energy output as of the date on which the owner or operator entered into such agreement4 7#aj7 ,fossil fuel ,the term fossil fuel-- 7,a7 means a carbon compound formed in the crust of the ,earth from decayed organic material2 and 7,b7 includes natural gas1 petroleum1 and coal4 7#aa7 ,higher heating value basis ,the term higher heating value basis means that a given calculation regarding the total energy content of a fuel is made on the basis of the heat produced per unit of fuel when-- 7,a7 complete combustion takes place at constant pressure2 7,b7 the products of combustion are cooled to the initial temperature of the fuel and air2 and 7,c7 the water vapor formed during combustion is condensed4 7#ab7 ,hold ,the term hold means1 with respect to an emission allowance1 to have in the appropriate account created pursuant to the process under section #gjg7;a77#b74 7#ac7 ,newly constructed low-emission covered facility ,the term ,newly ,constructed ,low-,emission ,covered ,facility means a ,covered ,facility-- 7,a7 the owner or operator of which is a party to a bilateral purchase agreement2 7,b7 that did not produce electricity or useful thermal energy output prior to the date on which the owner or operator entered into such agreement2 7,c7 that1 in the first full calendar year during which the ,covered ,facility produces electricity or useful thermal energy output1 emits a lesser quantity of carbon dioxide per megawatt-hour of electricity production or per million ,british thermal units of useful thermal energy output than the average ,covered ,facility4 7#ad7 ,output-based co#b emissions ,the term ,output-,based ,,co#b ,emissions means the following3 7,a7 ,covered ,electric ,facility ,for a ,covered ,electric ,facility1 the number that equals-- 7i7 the total number of metric tons of carbon dioxide emissions released by all ,covered ,electric ,facilities in a calendar year2 divided by 7ii7 the total number of megawatt-hours of electricity produced by all ,covered ,electric ,facilities in such calendar year4 7,b7 ,covered ,thermal ,facility ,for a ,covered ,thermal ,facility1 the number that equals-- 7i7 the total number of metric tons of carbon dioxide emissions from all ,covered ,thermal ,facilities in a calendar year2 divided by 7ii7 the total number of millions of ,british thermal units of useful thermal energy output from all ,covered ,thermal ,facilities in such calendar year4 7#ae7 ,output-based co#b emissions baseline ,the term ,output-,based ,,co#b ,emissions ,baseline means1 with respect to a category of ,covered ,facility1 the ,output-,based ,,co#b ,emissions in calendar year #bjbg4 7#af7 ,output-based co#b emissions target ,the term ,output-,based ,,co#b ,emissions ,target means the number of metric tons of carbon dioxide per megawatt-hour or per million ,british thermal units1 as applicable1 that is used to calculate the number of emission allowances distributed by the ,administrator to each ,covered ,facility under section #gjc4 7#ag7 ,permanently sequestered ,the term ,permanently ,sequestered1 with respect to carbon dioxide1 means the carbon dioxide shall not enter the atmosphere for at least #bjj years1 according to the best available science4 7#ah7 ,rated fuel-based capacity ,the term ,rated ,fuel-,based ,capacity means-- 7,a7 for facilities that produce useful thermal energy output with the combustion of fuel1 the peak fuel combustion rate1 expressed in millions of ,british thermal units per hour2 and 7,b7 for facilities that produce useful thermal energy output without the combustion of fuel1 the peak useful thermal energy output rate divided by #j4g1 expressed in millions of ,british thermal units per hour4 7#ai7 ,social cost of carbon ,the term ,social ,cost of ,carbon means the amount1 in dollars1 of the economic damages that would result from emitting one additional metric ton of carbon dioxide into the atmosphere1 as determined by the ,administrator in accordance with the method described in the document titled ,report on the ,social ,cost of ,greenhouse ,gases3 ,estimates ,incorporating ,recent ,scientific ,advances as published by the ,environmental ,protection ,agency in ,november #bjbc4 7#bj7 ,total emission adjustment index ,the term ,total ,emission ,adjustment ,index means1 with respect to a given year1 the number used to adjust the amount of emission allowances distributed for each megawatt-hour and for each million ,british thermal units1 as applicable1 as described under section #gjc7;c74 7#ba7 ,total u4s4 co#b emissions ,the term ,total ,u4,s4 ,,co#b ,emissions means1 with respect to a given calendar year1 the total amount of carbon dioxide that would be produced if all the fossil fuels imported into the ,united ,states or extracted within the ,united ,states were fully combusted4 7#bb7 ,useful thermal energy output ,the term useful thermal energy output-- 7,a7 means the net amount of thermal energy produced by a facility1 including thermal energy produced through the use of electricity2 and 7,b7 does not include energy in inlet combustion air1 feedwater1 or other fluids not used as fuels for combustion4 #gjb4 ,emission allowance submission requirement 7a7 ,in general ,beginning in calendar year #bjbh1 not later than ,june #a of each calendar year1 the owner or operator of each ,covered ,facility shall submit to the ,administrator one emission allowance for each metric ton of carbon dioxide released directly to the atmosphere by the facility during the preceding calendar year4 7b7 ,acquisition of emission allowances ,the owner or operator of a ,covered ,facility may acquire an emission allowance-- 7#a7 by receiving an emission allowance distributed under section #gjc2 and 7#b7 by purchasing1 exchanging1 or transferring an emission allowance in accordance with section #gjd4 7c7 ,period of use ,an emission allowance may be used by the owner or operator of a ,covered ,facility to comply with subsection 7a7 only for-- 7#a7 the calendar year for which the emission allowance is distributed2 or 7#b7 the following calendar year4 7d7 ,rounding of emission allowances ,any fraction of an emission allowance shall be rounded to the nearest whole emission allowance4 #gjc4 ,emission allowance distribution 7a7 ,distribution 7#a7 ,covered electric facilities ,for each of calendar years #bjbh through #bjdh1 the ,administrator shall1 not later than ,march #a of a given calendar year1 distribute to the owner or operator of each ,covered ,electric ,facility a number of emission allowances equal to the product of-- 7,a7 the number of megawatt-hours of electricity produced by the ,covered ,electric ,facility during the previous calendar year2 and 7,b7 the ,output-,based ,,co#b ,emissions ,target for the calendar year4 7#b7 ,covered thermal facilities ,for each of calendar years #bjbh through #bjdh1 the ,administrator shall1 not later than ,march #a of a given calendar year1 distribute to the owner or operator of each ,covered ,thermal ,facility a number of emission allowances equal to the product of-- 7,a7 the number of millions of ,british thermal units of useful thermal energy output produced by the ,covered ,thermal ,facility during the previous calendar year2 and 7,b7 the ,output-,based ,,co#b ,emissions ,target for the calendar year4 7#c7 ,covered cogeneration facilities ,for each of calendar years #bjbh through #bjdh1 the ,administrator shall1 not later than ,march #a of a given calendar year1 distribute to the owner or operator of each ,covered ,cogeneration ,facility-- 7,a7 for each megawatt hour of electricity produced by the ,covered ,cogeneration ,facility1 a number of emission allowances calculated in accordance with paragraph 7#a72 and 7,b7 for each million ,british thermal units of useful thermal energy output produced by the ,covered ,cogeneration ,facility1 a number of emission allowances calculated in accordance with paragraph 7#b74 7b7 ,calculation of the output-,based co#b emissions target 7#a7 #bjbh ,the ,output-,based ,,co#b ,emissions ,target for calendar year #bjbh shall equal the ,output-,based ,,co#b ,emissions ,baseline4 7#b7 ,subsequent years ,in a given calendar year other than calendar year #bjbh1 the ,output-,based ,,co#b ,emissions ,target shall be the greater of-- 7,a7 zero2 and 7,b7 the lesser of-- 7i7 the ,output-,based ,,co#b ,emissions ,target of the preceding calendar year minus #e percent of the ,output-,based ,,co#b ,emissions ,baseline2 7ii7 the ,output-,based ,,co#b ,emissions of the preceding calendar year minus #e percent of the ,output-,based ,,co#b ,emissions ,baseline2 7iii7 the ,output-,based ,,co#b ,emissions ,target of preceding calendar year minus #aj percent of the ,output-,based ,,co#b ,emissions ,baseline minus the ,total ,emission ,adjustment ,index of the given calendar year2 and 7iv7 the ,output-,based ,,co#b ,emissions of preceding calendar year minus #aj percent of the ,output-,based ,,co#b ,emissions ,baseline minus the ,total ,emission ,adjustment ,index of the given calendar year4 7c7 ,calculation of total emission adjustment index ,with respect to a given calendar year1 the ,total ,emission ,adjustment ,index shall be calculated as #a minus the ratio of-- 7#a7 the ,total ,u4,s4 ,,co#b ,emissions in the previous calendar year2 to 7#b7 the ,total ,u4,s4 ,,co#b ,emissions in the calendar year that began two years before the given year4 7d7 ,general rules 7#a7 ,identification numbers ,the ,administrator shall assign to each emission allowance distributed under this section a unique identification number4 7#b7 ,designated representatives ,the owner or operator of each ,covered ,facility1 and the owner or operator of each other entity holding an emission allowance or receiving an emission allowance from the ,administrator under this title1 shall submit to the ,administrator a certificate of representation designating a designated representative4 7#c7 ,prevention of double counting ,the ,administrator shall not consider any ,covered ,facility to which the ,administrator distributes emission allowances under this section to be more than one type of facility as defined under paragraphs 7#c71 7#d71 or 7#f7 of section #gja4 7e7 ,alternative compliance payments 7#a7 ,in general ,the owner or operator of a ,covered ,facility may satisfy the requirements of section #gjb7;a71 in whole or in part1 with respect to any calendar year1 by submitting to the ,administrator an ,alternative ,compliance ,payment in lieu of an emission allowance that would otherwise be due4 7#b7 ,amounts 7,a7 ,calendar years #bjbh through #bjch ,for calendar years #bjbh through #bjch1 the amount of an ,alternative ,compliance ,payment shall be as follows1 except as the ,administrator shall adjust for inflation3 ,calendar ,year,alternative ,compliance ,payment#bjbhej4jjbjbieb4jjbjcjed4jjbjca ef4jjbjcbeh4jjbjccfj4jjbjcdfb4jjbjcefd4j jbjcfff4jjbjcgfh4jjbjchgj4jj 7,b7 ,calendar years #bjci through #bjdh ,for calendar years #bjci through #bjdh1 the amount of the ,alternative ,compliance ,payment for a given year shall annually increase by an equal amount from #gj in #bjch1 adjusted for inflation under subparagraph 7,a71 to the ,social ,cost of ,carbon in #bjdh4 7,c7 ,calendar year #bjdh and thereafter ,the amount of an ,alternative ,compliance ,payment for calendar year #bjdh and thereafter shall be equal to the ,social ,cost of ,carbon4 #gjd4 ,trading of emission allowances 7a7 ,permitted transactions ,an entity that holds an emission allowance may-- 7#a7 submit the emission allowances to the ,administrator2 and 7#b7 sell1 exchange1 and transfer the emission allowance to another entity in accordance with subsection 7c74 7b7 ,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 title shall be construed to limit or alter the authority of the ,united ,states to terminate or limit the sale1 exchange1 transfer1 holding1 or submission of emission allowances4 7c7 ,effectiveness of emission allowance transactions ,no sale1 exchange1 transfer1 or submission of an emission allowance shall be effective for purposes of this title until a certification of the sale1 transfer1 exchange1 or submission is-- 7#a7 signed by the designated representative of the entity holding the emission allowance2 and 7#b7 received and recorded by the ,administrator in accordance with regulations issued under section #gjg4 #gje4 ,emission allowance bilateral purchase agreements 7a7 ,distribution of allowances to an ,existing ,covered ,facility 7#a7 ,in general ,for a calendar year that is covered by a bilateral purchase agreement1 beginning with the first full calendar year during which the ,newly ,constructed ,low-,emission ,covered ,facility produces electricity or useful thermal energy output1 the ,administrator shall distribute to the owner or operator of the ,existing ,covered ,facility-- 7,a7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the ,existing ,covered ,facility that are covered by the agreement1 a number of emission allowances that is equal to-- 7i7 such number of megawatt hours or million ,british thermal units1 as applicable2 multiplied by 7ii7 the ,output-,based ,,co#b ,emissions for ,covered ,electric ,facilities or ,covered ,thermal ,facilities1 as applicable1 for such first full calendar year2 and 7,b7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the ,existing ,facility that are not covered by the agreement1 the number of emission allowances calculated under section #gjc7;a74 7#b7 ,calculation of megawatt hours or million ,british thermal units covered by agreement ,for purposes of paragraph 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 ,covered ,facility that are covered by the agreement shall be equal to-- 7,a7 the number of emission allowances sold to the owner or operator of the ,existing ,covered ,facility pursuant to the agreement for the first full calendar year described in paragraph 7#a71 divided by the difference of-- 7i7 the number of emission allowances submitted to the ,administrator by the owner or operator of the ,existing ,covered ,facility for such first full calendar year2 minus 7ii7 the number of emission allowances distributed to the owner or operator of the ,existing ,covered ,facility by the ,administrator for such first full calendar year2 multiplied by 7,b7 the total number of megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the ,existing ,covered ,facility in such first full calendar year4 7b7 ,distribution of allowances to a ,newly ,constructed ,low-,emission ,covered ,facility 7#a7 ,in general ,for calendar years that are covered by an agreement described in subsection 7a71 beginning with the first full calendar year during which the ,newly ,constructed ,low-,emission ,covered ,facility produces at least #a megawatt-hour of electricity or #a million ,british thermal units of useful thermal energy output1 the ,administrator shall distribute to the owner or operator of the ,newly ,constructed ,low-,emission ,covered ,facility-- 7,a7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the ,newly ,constructed ,low-,emission ,covered ,facility that are covered by the agreement1 a number of emission allowances that is equal to-- 7i7 such number of megawatt hours or million ,british thermal units of useful thermal energy output2 multiplied by 7ii7 the ,output-,based ,,co#b ,emissions for ,covered ,electric ,facilities or ,covered ,thermal ,facilities1 as applicable1 for such first full calendar year2 and 7,b7 for megawatt hours of electricity or million ,british thermal units of useful thermal energy output1 as applicable1 produced by the ,newly ,constructed ,low-,emission ,covered ,facility that are not covered by the agreement1 the number of emission allowances calculated under section #gjc7;a74 7#b7 ,calculation of megawatt hours or million ,british thermal units covered by agreement ,for purposes of paragraph 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 ,covered ,facility that are covered by the agreement shall be equal to-- 7,a7 the number of emission allowances sold to the owner or operator of the ,existing ,covered ,facility pursuant to the agreement for the first full calendar year described in paragraph 7#a71 divided by the difference of-- 7i7 the number of emission allowances submitted to the ,administrator by the owner or operator of the ,newly ,constructed ,low-,emission ,covered ,facility for such first full calendar year2 minus 7ii7 the number of emission allowances distributed to the owner or operator of the ,newly ,constructed ,low-,emission ,covered ,facility by the ,administrator for such first full calendar year2 multiplied by 7,b7 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 7c7 ,conditions ,the owner or operator of an existing ,covered ,facility or ,newly ,constructed ,low-,emission ,covered ,facility that is a party to a bilateral purchase agreement may receive emission allowances under this section only if such owner or operator provides to the ,administrator a copy of-- 7#a7 the applicable bilateral purchase agreement2 and 7#b7 any amendment to such bilateral purchase agreement within #cj days of the amendment being made4 7d7 ,regulations ,the ,administrator shall promulgate regulation to ensure the integrity and enforceability of contracts executed under this section4 #gjf4 ,voluntary program participation 7a7 ,eligible entities ,the ,administrator may1 upon the request of the owner or operator1 classify-- 7#a7 as a ,covered ,electric ,facility1 any facility that produces electricity at a ,rated ,fuel-,based ,capacity of less than #b megawatts2 7#b7 as a ,covered ,thermal ,facility1 any facility that produces useful thermal energy output at a ,rated ,fuel-,based ,capacity of less than #ej million ,british thermal units per hour1 calculated on a higher heating value basis2 and 7#c7 as a ,covered ,cogeneration ,facility1 any facility that-- 7,a7 simultaneously produces useful thermal energy output and electricity2 and 7,b7 has a rated electric capacity of less than #b megawatts4 7b7 ,designation of representative ,the ,administrator shall approve a request submitted under subsection 7a7 if the owner or operator of the facility designates a representative under section #gjc7;d77#b74 7c7 ,deadline for notification ,not later than #ij days after receipt of a request submitted under subsection 7a71 the ,administrator shall notify the owner or operator of the facility whether the ,administrator approves or disapproves the request4 7d7 ,termination of classification ,the ,administrator shall terminate the classification of a facility as a ,covered ,facility under subsection 7a7 if1 during the previous calendar year1 the facility did not-- 7#a7 produce electricity2 or 7#b7 produce useful thermal energy output4 #gjg4 ,emission allowance tracking system 7a7 ,regulations ,the ,administrator shall issue regulations to provide for-- 7#a7 the establishment of a system to process the distribution of emission allowances to ,covered ,facilities under section #gjc and section #gje2 7#b7 a process to create accounts in which ,covered ,facilities and other entities may hold emission allowances2 7#c7 the establishment of an emission allowance tracking system to track-- 7,a7 the number of emission allowances sold1 exchanged1 transferred1 and submitted2 7,b7 the price or monetary value of such emission allowances2 7,c7 the date of each such sale1 exchange1 transfer1 and submission2 7,d7 the parties involved in each such sale1 exchange1 transfer1 and submission2 and 7,e7 any additional information the ,administrator determines necessary to ensure the integrity and efficiency of the market for emission allowances2 and 7#d7 the weekly publication by the ,administrator on the website of the ,environmental ,protection ,agency1 in a publicly available and searchable format1 of-- 7,a7 a summary of average prices or monetary values of emission allowances1 the total number of emission allowances sold1 exchanged1 transferred1 or submitted1 and any other additional information determined by the ,administrator as necessary to ensure the integrity and efficiency of the market for emission allowances2 7,b7 the number of emission allowances distributed by the ,administrator under section #gjc and section #gje2 7,c7 the number of emission allowances distributed by the ,administrator under section #gjc and section #gje during the calendar year before the year of publication that are held at the end of each month of the current calendar year by each category of ,covered ,facility2 and 7,d7 the number of emission allowances submitted to the ,administrator each year by each category of ,covered ,facility4 7b7 ,position limits ,the ,administrator1 in consultation with the ,commodity ,futures ,trading ,commission1 shall establish by regulation limits on the number of emission allowances that an entity may hold so that1 in the determination of the ,administrator-- 7#a7 no entity shall hold a number of emission allowances that may influence the price or monetary value of emission allowances2 and 7#b7 adequate liquidity for buyers and sellers of emission allowances shall be ensured4 7c7 ,status of submitted emission allowances ,once an emission allowance is submitted to the ,administrator under section #gjb1 the emission allowance shall be disqualified from subsequent use under this title1 including subsequent sale1 exchange1 transfer1 and submission4 7d7 ,orderly and competitive market ,the ,administrator shall issue regulations as necessary in the determination of the ,administrator for an orderly and competitive market for selling1 exchanging1 transferring1 and submitting emission allowances4 #gjh4 ,offset program 7a7 ,carbon mitigation fund 7#a7 ,creation of fund ,the ,administrator shall establish a fund to be known as the ,carbon ,mitigation ,fund4 7#b7 ,administration ,the ,carbon ,mitigation ,fund shall be administered by the ,administrator4 7#c7 ,deposits ,there shall be deposited into the ,carbon ,mitigation ,fund the following3 7,a7 ,the amounts paid as ,alternative ,compliance ,payments pursuant to section #gjc7;e74 7,b7 ,the amounts collected as civil penalties under section #gji4 7#d7 ,appropriation ,amounts in the ,carbon ,mitigation ,fund shall be available without further appropriation or fiscal year limitation to carry out the ,offset ,program under subsection 7b74 7b7 ,offset program 7#a7 ,in general ,the ,administrator shall carry out a program 7to be known as the ,offset ,program7 to award grants to entities to carry out activities that avoid emissions of greenhouse gases or permanently sequester carbon dioxide from the atmosphere1 as determined in accordance with paragraph 7#c74 7#b7 ,activities ,the activities described in paragraph 7#a7 may include-- 7,a7 improvements to the energy efficiency of existing facilities and devices2 7,b7 improvements to the electrical grid2 7,c7 the replacement of natural gas space heaters1 natural gas water heaters1 and natural gas stoves with electric appliances2 7,d7 the replacement of fossil fuel-powered vehicles owned by ,state or local agencies with electric vehicles or other low-carbon fuel vehicles2 7,e7 the replacement of fossil fuel-powered ground airport and seaport vehicles with electric vehicles or other low-carbon fuel vehicles2 7,f7 installation of charging stations for electric vehicles along highways and other public roads in urban areas and rural areas in which the availability of such charging stations is significantly below the national average2 and 7,g7 beneficial electrification-related reductions not otherwise identified in this paragraph4 7#c7 ,criteria ,the ,administrator may only award grants under the ,offset ,program for an activity for which the ,administrator determines that-- 7,a7 the amount of greenhouse gas emissions to be avoided or permanently sequestered from the atmosphere by the activity will be adequately confirmed through monitoring1 reporting1 and verification2 7,b7 the risk that some amount of the carbon dioxide that is to be sequestered from the atmosphere by the activity may reenter the atmosphere at a later date is adequately reflected through a discounting of the amount described in paragraph 7#d77;,c77ii72 7,c7 the risk that some amount of the greenhouse gases1 the emission of which is avoided by the activity1 may enter the atmosphere at a later date is adequately reflected through a discounting of the amount described in paragraph 7#d77;,c77i72 7,d7 the risk that the activity may directly or indirectly increase the release of greenhouse gases from another location has been adequately addressed2 7,e7 the activity is not required1 or being supported financially 7except pursuant to this subsection71 by a ,federal1 ,state1 or local law1 program1 or activity2 and 7,f7 if the activity involves land use1 the activity-- 7i7 aligns with the ,sustainable ,development ,goals1 as adopted by of the ,united ,nations under the ,post-#bjae ,development ,agenda1 and amended by the ,united ,nations1 including being consistent with the conservation of biological diversity and natural ecosystems 7including forests and grasslands72 and 7ii7 maintains ecosystem services and other social and environmental benefits4 7#d7 ,proposals ,in order to apply for a grant awarded under the ,offset ,program1 an entity shall submit to the ,administrator a proposal that-- 7,a7 describes the activity to be carried out with the grant2 7,b7 identifies the amount of money for which the entity is applying2 7,c7 identifies the amount 7to be measured in one-year increments7 of1 as applicable-- 7i7 greenhouse gas emissions to be avoided by the activity2 and 7ii7 carbon dioxide to be permanently sequestered from the atmosphere by the activity2 7,d7 identifies the bid amount1 expressed as dollars per metric ton1 which shall be the quotient obtained by dividing the amount identified under subparagraph 7,b7 by the amount identified under subparagraph 7,c72 7,e7 provides any information required by the ,administrator in order to make a determination described in paragraph 7#c72 and 7,f7 provides any other certifications the ,administrator determines appropriate4 7#e7 ,deadlines 7,a7 ,solicitation ,not later than ,february #a1 #bjbh1 and each ,february #a thereafter1 the ,administrator shall solicit proposals for activities described in paragraph 7#a7 for which the ,administrator may award grants under the ,offset ,program4 7,b7 ,identification ,not later than ,june #a1 #bjbh1 and each ,june #a thereafter1 the ,administrator shall identify and publish a list of proposals that have been submitted by ,march #a of the applicable year for activities described in paragraph 7#a7 that qualify for an award of a grant under the ,offset ,program4 7,c7 ,award of grants ,not later than ,august #a1 #bjbh1 and each ,august #a thereafter1 the ,administrator shall1 to the extent amounts are available in the ,carbon ,mitigation ,fund1 award grants to entities that submitted a proposal that is listed pursuant to subparagraph 7,b74 7#f7 ,awards to most cost-effective activities ,the ,administrator shall award funds to entities for activities described in proposals identified under paragraph 7#e77;,b7-- 7,a7 beginning by awarding funds to the entity submitting such a proposal with the lowest bid amount identified pursuant to paragraph 7#d77;,d72 and 7,b7 then awarding funds to entities sequentially by entity submitting such a proposal with the next lowest bid amount so identified until all funds are awarded4 7c7 ,regulations regarding carbon dioxide sequestration 7#a7 ,regulations ,under section #gaa1 the ,administrator shall issue regulations establishing-- 7,a7 the conditions under which carbon dioxide may be safely and permanently sequestered2 7,b7 the methods and processes by which carbon dioxide may be safely and permanently sequestered1 including by incorporating the carbon in a commercial product2 and 7,c7 requirements to account for the risk that some fraction of the carbon dioxide intended to be permanently sequestered may be emitted into the atmosphere4 7#b7 ,existing requirements ,in issuing regulations described in this subsection1 the ,administrator shall incorporate to the extent practicable any existing requirements for the sequestration of carbon dioxide1 including any requirements promulgated under section #de,q of the ,internal ,revenue ,code of #aihf4 7d7 ,consultation ,the ,administrator shall consult with the ,secretary of the ,interior and the ,secretary of ,agriculture in issuing regulations to measure1 monitor1 and verify any natural sequestration activities carried out using a grant awarded under the ,offset ,program4 #gji4 ,penalty for noncompliance 7a7 ,civil penalty 7#a7 ,in general ,the owner or operator of a ,covered ,facility that fails to submit an emission allowance as required by section #gjb7;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 described in this paragraph shall be equal to the product of-- 7,a7 three times the highest price or monetary value during the previous calendar year 7as indicated by the emission allowance tracking system established pursuant to section #gjg7 for the sale1 exchange1 or transfer of an emission allowance2 and 7,b7 the number of emission allowances that the owner or operator of the ,covered ,facility failed to submit as described in paragraph 7#a74 7#c7 ,timing ,a penalty required under this subsection shall be immediately due to the ,administrator1 without demand by the ,administrator4 7#d7 ,no effect on liability ,a penalty due by the owner or operator of a ,covered ,facility under this subsection shall not diminish the liability of the owner or operator for any fine1 penalty1 or assessment against the owner or operator 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 ,facility that fails to submit one or more emission allowances as required under section #gjb7;a7 for a calendar year shall submit a number of emission allowances that is equal to sum of the number the owner or operator failed to submit and the emission allowances otherwise required to be submitted by the ,april #a deadline of the second succeeding calendar year4 #gaj4 ,comptroller general reports ,not later than ,january #a1 #bjbi1 and every #b years thereafter1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on the results of implementation of this title1 which shall include-- 7#a7 a comprehensive evaluation of-- 7,a7 the efficiency1 transparency1 and integrity of the distribution of emission allowances under section #gjc and section #gje2 7,b7 the cost-effectiveness of this title in reducing greenhouse gas emissions2 and 7,c7 the effectiveness of this title in-- 7i7 creating and preserving jobs2 7ii7 ensuring a manageable transition to a zero-emission economy for working families and workers2 7iii7 driving the innovation and deployment of zero-emission technologies2 and 7iv7 maintaining an orderly and competitive market for selling1 exchanging1 transferring1 and submitting emission allowances2 and 7#b7 recommendations1 if any1 for legislative1 regulatory1 or administrative changes with respect to this title to improve its effectiveness4 #gaa4 ,final regulations ,the ,administrator shall issue final regulations to carry out this title not later than #bd months after the date of enactment of this title4 #gab4 ,savings provisions ,nothing in this title shall be interpreted to affect the requirements of any other title of this ,act4 4