[Senate Report 110-491]
[From the U.S. Government Publishing Office]
Calendar No. 1067
110th Congress Report
SENATE
2d Session 110-491
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FEDERAL GREENHOUSE GAS REGISTRY ACT OF 2008
_______
September 24 (legislative day, September 17), 2008.--Ordered to be
printed
_______
Mrs. Boxer, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[To accompany S. 1387]
together with
MINORITY VIEWS
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, having
considered the bill (S. 1387) to amend the Emergency Planning
and Community Right-to-Know Act of 1986 to provide for
greenhouse gases, having considered the same, reports favorably
thereon with an amendment and an amendment to the title and
recommends that the bill as amended do pass.
PURPOSES OF THE LEGISLATION
The Federal Greenhouse Gas Registry Act of 2008 (the Act),
as amended would require the Administrator of the Environmental
Protection Agency (EPA) to establish a Federal greenhouse gas
(GHG) registry that is complete, consistent, transparent, and
accurate, will collect reliable and accurate data for use by
public and private entities, and will provide high-quality data
to be used for implementing GHG reduction policies.
GENERAL STATEMENT AND BACKGROUND
Atmospheric greenhouse gas (GHG) concentrations have
steadily been increasing since the industrial revolution. The
accumulation of these GHGs traps more heat in the atmosphere
and leads to increases in global average temperatures of air
and water.
According to the Intergovernmental Panel on Climate Change
(IPCC), ``the warming of the climate system is unequivocal.''
The IPCC also concluded with 90% certainty that humans are
responsible for most of the recent warming.
According to the IPCC, continued increases in GHG
concentrations will cause continued warming of the water and
air, increased risk of droughts, threats to water resources,
food shortages, more frequent and intense heat waves, spread of
disease, and the extinction of species.
The 2008 Appropriations Act provided EPA $3.5 million to
draft a rule for mandatory reporting of greenhouse gas
emissions in all sectors of the U.S. economy. The Act requires
EPA to publish a draft rule in September 2008 and a final rule
in June 2009.
S. 1387 builds upon the current EPA rulemaking, adding more
detailed requirements relating to which facilities are covered,
data collection and reporting, data verification and EPA
enforcement.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 would provide that the Act may be cited as the
``Federal Greenhouse Gas Registry Act of 2008.''
Section 2. Purpose
The purpose of the act is to provide for the establishment
of a Federal greenhouse gas registry that: (1) is complete,
consistent, transparent, and accurate, (2) will collect
reliable and accurate data that can be used by public and
private entities to design efficient and effective energy
security initiatives and greenhouse gas emission reduction
strategies, and (3) will provide appropriate high-quality data
to be used for implementing greenhouse gas reduction policies.
Section 3. Definitions
The term `affected facility' is defined in detail, and the
Administrator is authorized in certain cases to include
additional facilities that emit greenhouse gas.
`Carbon content' means the quantity of carbon in carbon
dioxide equivalent.
`Carbon dioxide equivalent' means the quantity of
greenhouse gas that makes the same contribution to global
warming as 1 metric ton of carbon dioxide.
`Climate registry' means the greenhouse gas emissions
registry jointly established and managed by more than 40 states
and Indian tribes.
`Facility' means 1 or more buildings, structures, or
installations of an entity on 1 or more contiguous or adjacent
properties in the United States.
The term `greenhouse gas' refers to carbon dioxide,
methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons,
and sulfur hexafluoride, and other anthropogenically-emitted
gas that EPA determines contribute to climate change.
The `greenhouse gas emissions' include:
Stationary combustion source emissions emitted as a
result of combustion of fuels, such as boilers,
furnaces, burners, turbines, heaters, incinerators,
engines, flares, and other similar sources;
Process emissions from chemical or physical processes
other than combustion;
Fugitive emissions consisting of intentional and
unintentional emissions from equipment leaks, piles,
pits, and cooling towers;
Biogenic emissions from biological processes, such as
anaerobic composition, nitrification, and
denitrification.
`Indian Tribe', `Local Distribution Company', `Registry',
and `Source' are defined. `Reversal' means an intentional or
unintentional release of a significant quantity of greenhouse
gases to the atmosphere that was sequestered. `Sequestered'
refers to the isolation of greenhouse gas without reversal in
geological formations.
Section 4. Reporting requirements
Section 4 would require affected facilities to submit
reports to the Administrator describing the quantities and
types of feedstocks, greenhouse gases, and electricity
produced, generated, imported, exported, or sequestered. The
report shall include a list of the sources of the greenhouse
gas and quantify the amount in metric tons of source emissions,
process emissions, and fugitive emissions. Additional detailed
requirements for these reports are specified, and a provision
authorizing the Administrator to provide de minimis exemptions
from reporting is established. Reports must be verified by the
Administrator.
Beginning in 2010, and each subsequent year, each affected
facility shall submit quarterly data no later than 90 days
after the end of the applicable quarter.
Nothing in this Act affects any requirements in effect
relating to the reporting of fossil fuel production, refining,
importation, exportation, or consumption, greenhouse gas
emission data, or other relevant data.
Section 5. Data quality and verification
The Administrator shall establish by regulation
comprehensive protocols and methods to ensure complete,
accurate, consistent, and transparent data on greenhouse gas
emissions that are to conform to best practices. EPA is to take
into account the Climate Registry in issuing this rule.
Specific protocols and methods are established in paragraphs
(A) through (H), and best practices from other protocols and
verification methods are required to be incorporated as
specified.
Each affected entity shall provide information for the
Administrator to verify and ensure the submission or retention
of data, information on control and assumptions, and
uncertainty.
The Administrator may waive reporting requirements for
specific facilities if sufficient and equally or more reliable
data are available under other provisions of law.
If data for an affected facility satisfactory to the
Administrator is not provided, the Administrator shall
prescribe methods to estimate emissions for the missing data
and take appropriate enforcement action.
Section 6. Federal greenhouse gas registry
Not later than 2 years after the date of enactment of the
Act, the Administrator is to promulgate regulations
establishing a Federal greenhouse gas registry that builds upon
the final rule promulgated under the Consolidated
Appropriations Act of 2008, making necessary changes to achieve
the purposes of this Act. Emissions reporting is to begin no
later than January 1, 2011.
The Administrator shall design and operate the Registry and
establish an advisory body broadly representative of private
enterprise, agriculture, environmental groups, and State,
tribal, and local governments to guide the development and
management of the Registry. Coordination and technical
assistance, taking into account the states' Climate Registry,
is required.
The Administrator shall develop electronic reporting
guidelines for affected entities, verify and audit reported
data, calculate carbon content and greenhouse gas emissions
using consistent methods, and immediately publish all Registry
information on the internet, except information that is vital
to national security, as determined by the President, or
confidential business information that cannot be derived from
information that is otherwise publicly available and that would
cause competitive harm if published. Information relating to
GHG emissions shall not be considered to be confidential
business information.
The Administrator may use third parties that do not have
any conflicts of interest to verify reported data.
The Administrator shall propose regulations no later than
180 days after the enactment of this Act and promulgate final
regulations no later than July 1, 2009.
Section 7. Enforcement
The Administrator may bring a civil action against the
owner or operator of an affected facility that fails to comply
with any requirement of this Act. Any violation of this Act
shall be subject to a $25,000 fine per day for each violation.
The bill's title is amended to be ``A bill to direct the
Administrator of the Environmental Protection Agency to
establish a Federal greenhouse gas registry.''.
LEGISLATIVE HISTORY
Senators Klobuchar and Snowe introduced S. 1387 on May 14,
2008 which was read twice and referred to the Committee on
Environment and Public Works. The Committee met on September
17, 2008 and considered Senator Klobuchar's amendment in the
nature of a substitute, which was adopted by voice vote without
further amendment.
ROLLCALL VOTES
There were no rollcall votes. The measure was approved, a
quorum being present, by voice vote.
REGULATORY IMPACT STATEMENT
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the committee finds that the
legislation does not impose substantial additional regulatory
costs, and agrees with the Congressional Budget Office that
``[b]ecause the rule EPA is drafting under current law would
likely include many of the facilities covered by the bill, the
incremental costs of the mandates would likely not be
substantial. In addition, most electric utilities are already
required to report similar data to EPA under the Clean Air
Act.'' The Committee also agrees with CBO that costs of any
mandates ``would fall below the annual thresholds established
in UMRA ($68 million for intergovernmental mandates and $136
million for private-sector mandates in 2008, adjusted annually
for inflation).''
MANDATES ASSESSMENT
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the Committee notes that the Congressional
Budget Office has found that ``S. 1387 would impose an
intergovernmental and private-sector mandate as defined in the
Unfunded Mandates Reform Act (UMRA) by requiring facilities, as
defined in the bill, to submit data on greenhouse gas emissions
to the registry established in the bill. Because the rule EPA
is drafting under current law would likely include many of the
facilities covered by the bill, the incremental costs of the
mandates would likely not be substantial. In addition, most
electric utilities are already required to report similar data
to EPA under the Clean Air Act. Consequently, CBO estimates
that the costs of the mandate would fall below the annual
thresholds established in UMRA ($68 million for
intergovernmental mandates and $136 million for private-sector
mandates in 2008, adjusted annually for inflation).''
CONGRESSIONAL BUDGET OFFICE ESTIMATE
September 24, 2008.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1387, the Federal
Greenhouse Gas Registry Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Peter R. Orszag.
Enclosure.
S. 1387--Federal Greenhouse Gas Registry Act of 2008
S. 1387 would require the Environmental Protection Agency
(EPA), not later than two years after enactment, to establish a
greenhouse gas registry that contains data from electricity-
generating facilities and other types of facilities about
greenhouse gas emissions. The bill also would require EPA to
establish rules related to data collection, reporting, and data
verification.
According to EPA, the agency is currently working on a
draft rule that requires mandatory reporting of greenhouse
gases for the largest emissions sources in the United States.
Based on information from EPA, CBO estimates that implementing
this legislation would cost less than $500,000 a year, subject
to the availability of appropriated funds.
Enacting this legislation also would establish civil
penalties (which are recorded in the budget as revenues) for
the owners and operators of affected facilities that fail to
comply with the requirements under this legislation. CBO
estimates that any increase in revenues resulting from those
civil penalties would not be significant. Enacting this bill
would not affect direct spending.
S. 1387 would impose an intergovernmental and private-
sector mandate as defined in the Unfunded Mandates Reform Act
(UMRA) by requiring facilities, as defined in the bill, to
submit data on greenhouse gas emissions to the registry
established in the bill. Because the rule EPA is drafting under
current law would likely include many of the facilities covered
by the bill, the incremental costs of the mandates would likely
not be substantial. In addition, most electric utilities are
already required to report similar data to EPA under the Clean
Air Act. Consequently, CBO estimates that the costs of the
mandate would fall below the annual thresholds established in
UMRA ($68 million for intergovernmental mandates and $136
million for private-sector mandates in 2008, adjusted annually
for inflation).
The CBO staff contacts for this estimate are Susanne S.
Mehlman (for federal costs), Burke Doherty (for the state and
local impact), and Amy Petz (for the private-sector impact).
This estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
MINORITY VIEWS
S. 1387, the Federal Greenhouse Gas Registry Act of 2008, a
bill that requires the Administrator of the Environmental
Protection Agency (EPA) to establish a Federal greenhouse gas
(GHG) registry, should be opposed and returned to the
Environment and Public Works Committee by the full Senate. The
legislation is unnecessary, duplicative, and may lead to legal
confusion by amending two different Acts.
The FY 2008 Consolidated Appropriations Act provided $3.5
million to EPA to develop and publish a draft Mandatory
Greenhouse Gas Reporting Rule that is set to go final sometime
next year. That Rule is nearly on track and is in the final
stage of internal review and set to go to OMB in the next few
weeks. While the draft Rule is not yet final, there has already
been extensive stakeholder outreach and hours dedicated to its
development. S. 1387 and its Substitute represent the authors'
intentions to rewrite that Rule before they have even seen a
preliminary draft. The language authorizing the Rule, while I
did not support it, was actually drafted by the Majority last
year. This language used familiar existing reporting
requirement language from the Clean Air Act, and set an already
ambitious timetable.
In addition, this legislation intends to amend the
Emergency Planning and Community Right to Know Act of 1986,
which may lead to more confusion upon implementation because it
also seeks to build off the Appropriations language from the FY
2008 Act which directed the Administrator to act under the
Clean Air Act. I am concerned that this bill will also
complicate that Rule's development by using threshold reporting
requirements and definitions from the Lieberman Warner bill,
which the Senate rejected earlier this year. It also includes
extensive penalties for noncompliance and introduces new terms
into the Act. It is my hope that we reject this legislation and
focus on oversight of what the Agency is already in the process
of producing, and avoid this duplicative mandate that is no
longer necessary.
James M. Inhofe.
CHANGES IN EXISTING LAW
Section 12 of rule XXVI of the Standing Rules of the Senate
requires the committee to publish changes in existing law made
by the bill as reported. Passage of this bill will make no
changes to existing law.