SEC. 201. DEFINITIONS.
In this Act:
(1) Administrator.—The term “Administrator” means the Administrator of the Environmental Protection Agency, except as otherwise expressly provided.
(2) Affiliated group.—The term “affiliated group” means 2 or more persons under common control or common beneficial ownership.
(3) Attributable emissions.—The term “attributable emissions” means greenhouse gas emissions that are attributable to a person under this Act, including direct operational emissions and, to the extent expressly provided by section 504 or 603, emissions from controlled affiliates, covered products, or financed activities.
(4) Attributable share.—The term “attributable share” means the proportion of relevant cumulative emissions or relevant cumulative harm assigned to a defendant under section 504.
(5) Beneficial owner.—The term “beneficial owner” means any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, has or shares voting power, investment power, the right to receive economic benefit, or material power to direct management or capital allocation with respect to a covered entity or covered activity.
(6) Board.—The term “Board” means the Interagency Scientific and Economic Assessment Board established under section 901.
(7) Climate-related damage.—The term “climate-related damage” means physical injury, adaptation cost, resilience expenditure, natural-resource damage, health-monitoring cost, property damage, infrastructure loss, displacement cost, subsistence loss, cultural-resource loss, or economic loss associated through reliable scientific or economic methods with anthropogenic greenhouse gas pollution or its reasonably foreseeable consequences.
(8) Control person.—The term “control person” means a person who possesses actual power, directly or indirectly, to direct the management, operations, or capital allocation of a covered entity or covered activity.
(9) Covered activity.—The term “covered activity” means an activity subject to this Act under section 202 or 203, including a high-risk industrial activity, a covered financial transaction, a disclosure obligation, or a monitored emissions source.
(10) Covered environmental report.—The term “covered environmental report” means any report, certification, filing, plan, reserve disclosure, transition plan, emissions report, bond filing, or incident notice required by this Act.
(11) Ecological destruction.—The term “ecological destruction” means environmental harm that is severe and either widespread or long-term.
(12) Environmental accountability program.—The term “environmental accountability program” means a program required under section 302.
(13) Environmental harm.—The term “environmental harm” means any direct or indirect adverse change to air, water, soil, sediment, wildlife, habitat, ecosystem services, biodiversity, or public health arising from pollution, resource extraction, land conversion, waste handling, emissions, or related conduct.
(14) Family office.—The term “family office” means a company, partnership, trust, or other entity established primarily to manage the investments or affairs of one or more related natural persons and exempted or excluded from registration as an investment adviser under Federal law.
(15) Federal environmental law.—The term “Federal environmental law” means this Act and any provision of the Clean Air Act, the Federal Water Pollution Control Act, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, the Resource Conservation and Recovery Act of 1976, the Toxic Substances Control Act, the Emergency Planning and Community Right-to-Know Act of 1986, the Endangered Species Act of 1973, the Oil Pollution Act of 1990, the Marine Protection, Research, and Sanctuaries Act of 1972, the Safe Drinking Water Act, and any regulation, permit, order, or consent decree issued thereunder.
(16) Greenhouse gas.—The term “greenhouse gas” means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, nitrogen trifluoride, and any other gas designated by rule under this Act because of its radiative forcing characteristics.
(17) High-risk activity.—The term “high-risk activity” means an activity that, because of scale, substances used, location, waste stream, emissions profile, or accident potential, presents a material risk of a major environmental incident, including any ultra-hazardous activity described in section 508.
(18) Indian Tribe.—The term “Indian Tribe” has the meaning given that term in section 4 of the Indian Self-Determination and Education Assistance Act.
(19) Knowing; knowingly.—The terms “knowing” and “knowingly” mean actual knowledge, deliberate ignorance, or awareness of a high probability of the existence of the relevant fact, unless the person actually believed the fact did not exist.
(20) Large covered entity.—The term “large covered entity” means a covered entity described in section 203(b).
(21) Long-term.—The term “long-term” means effects reasonably expected to persist for more than 5 years absent substantial remediation, restoration, or natural recovery.
(22) Major environmental incident.—The term “major environmental incident” means an event, series of related events, or continuing condition that results in 1 or more of the following:
(A) Death or serious bodily injury to 5 or more persons.
(B) Evacuation or shelter-in-place affecting 100 or more persons for 48 hours or more.
(C) Estimated response, restoration, adaptation, relocation, or public health cost exceeding $25,000,000.
(D) Destruction or severe degradation of 100 acres or more of a critical ecological resource or 1,000 acres or more of other habitat.
(E) Material population-level injury to a listed species or a mass mortality event meeting thresholds established by rule under section 902.
(F) Unlawful, concealed, or materially misreported greenhouse gas emissions of not less than 1,000,000 metric tons of carbon dioxide equivalent in any 12-month period, or 5,000,000 metric tons over any 5-year period.
(G) Material contamination of a public drinking water system serving 10,000 or more persons.
(H) A release, discharge, explosion, spill, collapse, or similar occurrence that creates an imminent and substantial endangerment to health or the environment.
(23) Material contribution.—The term “material contribution”—
(A) for direct physical or ecological harm, means conduct that was a substantial factor in producing the harm; and
(B) for cumulative climate-related damage, means attributable emissions or financed emissions of not less than 250,000 metric tons of carbon dioxide equivalent in any year, 1,000,000 metric tons in the aggregate over any 5-year period, or any lower amount that a court determines is not de minimis in light of the scale and type of harm at issue.
(24) Person.—The term “person” means any natural person, corporation, company, association, firm, partnership, trust, estate, family office, joint venture, insurer, reinsurer, investment adviser, asset manager, bank, governmental entity, or other legal entity.
(25) Public issuer.—The term “public issuer” means an issuer required to file periodic reports under section 13(a) or 15(d) of the Securities Exchange Act of 1934.
(26) Reckless; recklessly.—The terms “reckless” and “recklessly” mean conscious disregard of a substantial and unjustifiable risk that constitutes a gross deviation from the standard of conduct that a law-abiding person would observe.
(27) Responsible corporate officer.—The term “responsible corporate officer” means an officer, director, manager, plant superintendent, environmental compliance officer, or similar person who had authority to prevent, detect, correct, or report the relevant conduct.
(28) Restoration cost.—The term “restoration cost” means the cost of returning an injured resource, ecosystem, community resource, or public infrastructure to baseline condition, or, where restoration is not reasonably possible, the cost of replacement, compensatory restoration, or equivalent public benefit.
(29) Severe.—The term “severe” means harm involving serious degradation of ecosystem function, serious impairment of air, water, or soil quality, significant mortality, significant public health injury, or estimated response, restoration, adaptation, or public health cost exceeding $25,000,000.
(30) Social cost schedule.—The term “social cost schedule” means the schedule promulgated under section 903.
(31) State.—The term “State” means a State of the United States, the District of Columbia, Puerto Rico, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States.
(32) Tribal government.—The term “Tribal government” means the recognized governing body of an Indian Tribe.
(33) Ultra-hazardous activity.—The term “ultra-hazardous activity” means any activity identified in section 508(b).
(34) Widespread.—The term “widespread” means harm affecting an area exceeding 1,000 acres, 10 linear miles of waterway or coastline, 2 or more counties or equivalent jurisdictions, 2 or more Tribal jurisdictions, or crossing State, territorial, or international borders.
(35) Willful; willfully.—The terms “willful” and “willfully” mean intentional conduct undertaken with knowledge that the conduct is unlawful, or with specific intent to evade a legal duty.
SEC. 202. SCOPE AND APPLICABILITY.
(a) General applicability.—This Act applies to any person that—
(1) engages in interstate or foreign commerce and carries out a covered activity;
(2) owns, operates, finances, insures, underwrites, advises, manages, or controls a covered activity;
(3) conducts a covered activity on Federal land, in Federal waters, on the outer Continental Shelf, in Indian country, or in any place subject to the jurisdiction of the United States;
(4) files, furnishes, certifies, audits, or materially contributes to a covered environmental report; or
(5) is otherwise described in section 203.
(b) Governmental entities.—
(1) The United States, each Federal agency, and each State, territorial, Tribal, or local governmental entity shall be subject to this Act to the same extent as any nongovernmental person when acting as owner, operator, permittee, contractor, market participant, financier, insurer, or proprietary actor.
(2) No criminal fine shall be imposed upon the United States.
(3) No State, territorial, Tribal, or local governmental entity shall be liable under this Act solely by reason of discretionary permitting, rulemaking, adjudication, or emergency-response functions, absent gross negligence, corruption, bad-faith concealment, or intentional misconduct.
(4) Nothing in this subsection shall preclude criminal or civil liability of any officer, employee, contractor, or agent.
(c) De minimis household conduct.—This Act does not apply to ordinary, noncommercial household conduct, except where such conduct involves intentional unlawful dumping, trafficking, concealment, or conduct causing a major environmental incident.
(d) No limitation on other law.—Nothing in this Act limits liability under title 18, United States Code, or any other Federal statute.
SEC. 203. COVERED PERSONS AND THRESHOLD CATEGORIES.
(a) Covered entities.—A person is a covered entity if the person or any facility, affiliate, or controlled activity of the person—
(1) is subject to the Greenhouse Gas Reporting Program or any successor Federal greenhouse gas reporting regime;
(2) emits, releases, or causes attributable emissions of 25,000 metric tons or more of carbon dioxide equivalent annually;
(3) handles, disposes of, manufactures, stores, transports, extracts, refines, injects, incinerates, or otherwise manages hazardous substances, toxic pollutants, oil, gas, coal, mining waste, tailings, or other substances or materials above thresholds established by rule under section 902;
(4) engages in a high-risk activity; or
(5) is a public issuer or a covered financial institution under subsection (c).
(b) Large covered entities.—A covered entity is a large covered entity if the entity, taken together with its affiliated group—
(1) has annual attributable emissions of 1,000,000 metric tons or more of carbon dioxide equivalent;
(2) has annual gross revenue exceeding $1,000,000,000 and engages in a high-risk activity; or
(3) holds assets or market capitalization exceeding $5,000,000,000 and has material environmental or climate risk requiring enhanced controls under this Act.
(c) Covered financial institutions.—For purposes of this Act, the term “covered financial institution” includes—
(1) any insured depository institution, bank holding company, savings and loan holding company, or nonbank financial company with total consolidated assets exceeding $10,000,000,000;
(2) any insurance or reinsurance company with annual written premiums exceeding $1,000,000,000;
(3) any registered broker-dealer, investment adviser, investment company, commodity pool operator, or futures commission merchant with assets under management, net capital, or equivalent regulated assets exceeding $10,000,000,000; and
(4) any family office or private investment vehicle that directs, finances, or controls covered transactions with an aggregate value exceeding $500,000,000 in any 12-month period.
(d) Aggregation.—For purposes of this section, emissions, revenues, assets, and transaction values shall be aggregated across affiliated groups, controlled funds, and special-purpose entities where required to prevent evasion.
SEC. 204. RELATIONSHIP TO OTHER LAWS AND EXISTING PERMITS.
(a) This Act supplements, and does not displace, any duty, remedy, or penalty under any other Federal environmental law unless this Act expressly provides otherwise.
(b) Compliance with a permit, registration, or license shall be relevant evidence, but shall not constitute a complete defense if—
(1) the permit was obtained or maintained through fraud, concealment, or material omission;
(2) the holder materially misreported monitoring, emissions, releases, or risks;
(3) the permit or authorization does not by its terms address the conduct at issue; or
(4) the person otherwise violated this Act.
(c) Nothing in this Act shall be construed to occupy the field of environmental, tort, or public health law.
SEC. 205. STANDARDS OF PROOF, SCIENTER, CAUSATION, AND ATTRIBUTION.
(a) Criminal matters.—No person shall be convicted under title IV except upon proof beyond a reasonable doubt of each element of the offense, including the mental state specified for that offense.
(b) Civil matters.—Except as otherwise provided, liability under titles V and VI shall be established by a preponderance of the evidence.
(c) Attribution and cumulative harm.—In actions involving cumulative climate-related damage, a plaintiff need not prove exclusive but-for causation if the plaintiff proves—
(1) a scientifically reliable causal pathway between anthropogenic greenhouse gas pollution and the type of harm at issue;
(2) that the defendant is a material contributor; and
(3) that the damages sought are apportioned under section 504 or are otherwise recoverable under this Act.
(d) Adverse inference for nonreporting.—If a defendant fails to retain records or submit reports required by this Act, a court may draw an adverse inference against the defendant regarding attributable emissions, knowledge, and economic benefit, unless the defendant proves the failure was substantially justified.
SEC. 206. DEFENSES AND EQUITABLE CONSIDERATIONS.
(a) Affirmative defenses.—Except as otherwise provided, a defendant may assert as an affirmative defense that the harm was caused solely by—
(1) an act of war;
(2) an act of God of such exceptional character that the harm could not reasonably have been prevented by due care and prudent planning; or
(3) sabotage or criminal third-party interference by an unrelated person, if the defendant exercised due care and took reasonable precautions.
(b) No defense for financial inability.—Inability to pay shall not eliminate restoration, restitution, or monitoring obligations, but may be considered in structuring payment schedules for civil penalties.
(c) Good-faith compliance efforts.—Documented good-faith compliance efforts may mitigate civil penalties but shall not bar injunctive relief, restoration, restitution, or victim compensation.