[2312135] 1 -262 5/ 1 5/01 Chairman T. ELLIOTT Honda President T. TO: AIAM Environment Energy Subcommittee FROM: John M. Cabaniss, Jr. Honda Director, Environment Energy Hyunda? RE: CLIMATE CHANGE Draft Outline of Senate Climate Change Bill Mitsubism Attached is a draft outline of a climate change bill being put together by N'ssa? Senators Murknowski and Hagel entitled the ?National Climate Change Saab Risk Management Act of 2001?. Subaru Suzuki Toyota ASSOCIATES Bosch Denso JAMA Peugeot Renault ASSOCIATION OF INTERNATIONAL AUTOMOBILE MANUFACTURERS, INC. 1001 19TH ST. NORTH I SUITE 1200 I ARLINGTON, VA 22209 I TELEPHONE 703.525.7788 I FAX 708.525.8817 INTERNET: AIAM-056738 AIAM-056739 Talking Pom? . i Climate Change Legislation review cf domestlc anti mtcmahnnal policy undcr way Introduction 51' 169.81.33.01}. best Signal ivc can ?ve to White House they?ve scenit; arecuppome 4 4 I, . 4 mung ($882 81776 106th Congress} can be .. died to ?t statements on chmatc change . - -. >5 March 13 letter I ?technologies, markct incentives, and othci' I creative: ways to address ginbal climate change cf-I I i anaticnal emery ?iv-I FHM/Crazg/Hagei risk cf chmate change 18 in: must - -_'Ijrespon31biy address using cnergr technology? . Several voluntary unhauvcs under my need focused mechamsm to 4, - i I I build support for U. S. in mtcma?aonai negouatxons . Long-term approach requzred~rcgu1atory ccrtamty key Ifnr new make?: Signals - . The Proposal. Organzze mund central notmn of ?nsk management? . . I cinnatc change PoscS tasks cf unknown mg and seventy need l' I. 4 to develop approach tn manage rick responsibly . management means I if _.deveioy long-term strategy Convene a of experts Ifrcm a vanety of ??Ids tn achicieI gnals (Sign. 3~44) 9* '7 :1th tin]: - Improve scienti?c research program inicst in - simprnicd chmate rhodcis {Sec 12) I Ir 7 I I'deifelnp tonic to address problem - R8513 [7 (Scc 5, 1 program; next~generat10n energr technologcs, sequestrauon A n1 A Alan/1' I f? '3 remove disincentives nde regulatory certam?cy that I -- emissions reductions made now W131 not be penalized later; remoye barriers to deployment of emery teehnolog (Sec 6,10) i I encourage a global solution mtemabonal teehnologr transfer programs remove bamers {See 11} 7 . . 9'97 mews voluntary long-term, emery. 7 :7 5714.33111101037 based; ?ee market;1east~cost, global solutmn 3? mm cost Common determnes least-cost path to goal using energy technolog, ?exdbie marks; mechamsms and meennves global sebum: encourages developmg country through teehnoloy transfer fosters competzmeness 7 does not reqwre ?xture cap-mid made system b11t pmdes regulatory 7 eertainty needed to encourage early emu-mono reduotons 3? '15 yields real reductions stakeholders {comments} mdustry) 9- j, _?develop necessary wrong and .7 .. 'actzon, allows to Work 0111: deta?s 701? system ?learns-1g by domg? 3" is more thanjust CO2-wou1d reward reductions of emssiOns Of methane I 3' 7 3 and mtrous oxide, halosarbons 01311111 be expanded to mciude soot, ete agnculture foreshy, . 3 IV 7 :transporeahon, and end-use energr consumpuon also parumpate I I 7' I 3 1151933515: ?9h: Signals focus on movamon, 111 new 3- -7 DISCUSSION DRAI-?rwstarca?mm PROPOSED ANALYSIS CLIMATE CHANGE LEGISLATION Lawson 1-. Short Tithe. nus Act may as cited as the ?Narrow Chmatc Change Risk (Managemenmctorsoott . Section 2 Purpose. Establishes that the mac legislation is to develop anaheuai andregicnal eihnatechange, andte mahotize energytechnolcgyandscic carryiteut. Change,nameiy, .. of greenhouse gas concentrations in the atmosphere at a level that would prevent ,7 I Section 3 Presiriential Commission. Estabhshas an Presidential Commisszou on Chmete Changete devciepanetionai stintegyte cinnate change The 2' ?,Directcr of the O?ce ofSerenoe and Technology weuld serve as Chair ofthe Commission, and the remaining members Weald be :1er by prafessicnai societies in ?eids of science, econommnandtachnoicgy out" A Section 4 National Climate Change Straw Regents the Commence SectiOnS torepomo 18 of easement en for legrsiatrve or actions thatwcuid comprise a I I Suitahie national chmat'e change strategy. Such a strategy conic include actions to (I) develop breakthrough artery mohnelogies that use the ?111 diversity of energy sesame; (2) accelerate the of new energy technologies into domestic and international chem: markets; (3) .7 forecasting ofgiohai mpacts and(4) towhat extent social and poiiticei instrument; and systems can adapt to climate inspects 1 Section 5 - Of?ce at Giobai Climate Change. Amends Section 1603 ofthc Energy Pohcy Act '3 Egef 1992torep1ece prcvisieas Protection wij'ththose 7 an O?ee of Global Chmate Change Within the Department of Energy Requires the aha departments! teases and policies regarding climate change and related matters, and to he headed 7 7 '7 Section 6 Voluntary Greenhouse Gas Emissions Reductien Incentive Program Regimes the Secretary efEnergy; through the Administrator of the Energy Infannstien Administration, to conduct and submit to speci?ed congressmnei committees a- review chhat changes should be nascussmnemr annals 2001 715m to guidelines (Section 1505?0fthe Energy Policy so or 1992) for enemas? and It Mreportedmfonnauenanditsm 3; f: I Section 7 - - Regalia the Seaetmy oft-Energy to establish a tong-term Closets Technology Research, rehability of voluntarily reported emcee on greenhouse tsdawh?ons, to staid penalizing imp!ementehon ofany- poen?ble ?sts-e missions control program (?nachos protection?), and to provide for registration of voluntary interactions efsneh reporter! greenhouse gas emissions re?ne?onshetween 9 gs?ugpaties. Prondesfermcorpomhoamto to chhnotog Research, Development, and Demonstration Program. 9 3 Development, and Demonstration Program to fostadevetopment sfnew technologies and the A i ?5 enhancement ofexisting mammograms: (1) re?nes or svoi<1 anthropogenie emissione of 58'2: greenhouse gases; removeaed mammbouse mes from emissions streams; aside) i 50331me - 5 proposal selection I Section ?Gemini-charisma Pine and Implementing Program a: Eatery: Research, Deveiepment and Demonstration Amends the Federal Nominee Energy Research and :5 gas-nionstran?en pins to include solutions to the chastise .. finthe longtam -- - . - SEWnn?xonmannuel availabicmn?expended. of greenhouse gas missions development, and 5 demonstrate a treaty of technologies to reduce, avoid, 0! I . a" a 1?1: RmewofFedas?yFunde? 5: '7 technologg, minding {sedation required un?ldepioymem, cost, safety, patriotic! bosom 5 A . development activates. p'useoftheresoureehase. 5 DISCUSSION March 15 206-1 Section 18- -_;Smdy of Regulatory Barriers to Rapid Deployment of Greenhouse Gas 7 Emission Reduction Technoloy. the Comptroller General, in consultation with the "vi, Secretary ofCommerce and ideoufyandevaluateregnlamtyor I at ~_gasemiseions if; section 11- Internotional Deployment ofEnery Technology to Mitigate Cinnote Change. f} _1Aiuilorizes api!Ot program topoovide?nancial assastauce, subject to available appropriations, for! . g- iM?mg mimosa! emery deployment projects. Sets forth criteria for selection, nameiy,thot ondmustincimse - I "if. ~7 7 sperm? wcimgy compared to the technoloy that wordd otherwise be implemented Provides for selection a?crcoomiltononwi?itheSecmtoiy ome, the . ?sparkle maturity periods Provides that ioqualifying international enerydeployment progect fundedimderthis title wealdnot be eIigible as aqualifying cleancoal technoloytmder Section 7 ?751 3 Global Change Research Program yum new oa'thority for the proposes of poem'ble 7 Section 13 Conforming Amendment. Amends Section {110303 ofthe 61an Climate deveiotimg and proposmg national policy on climate change