EUROPEAN UNION EMISSIONS TRADING SCHEME PROHIBITION ACT OF 2011
(Senate - September 21, 2012)

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[Pages S6611-S6612]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    EUROPEAN UNION EMISSIONS TRADING SCHEME PROHIBITION ACT OF 2011

  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of Calendar No. 484, S. 1956.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1956) to prohibit operators of civil aircraft of 
     the United States from participating in the European Union's 
     emissions trading scheme, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Commerce, Science, and 
Transportation, with an amendment to strike all after the enacting 
clause and insert in lieu thereof the following:

                                S. 1956

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``European Union Emissions 
     Trading Scheme Prohibition Act of 2011''.

     SEC. 2. PROHIBITION ON PARTICIPATION IN THE EUROPEAN UNION'S 
                   EMISSIONS TRADING SCHEME.

       (a) In General.--The Secretary of Transportation shall 
     prohibit an operator of a civil aircraft of the United States 
     from participating in the emissions trading scheme 
     unilaterally established by the European Union in EU 
     Directive 2003/87/EC of October 13, 2003, as amended, in any 
     case in which the Secretary determines the prohibition to be, 
     and in a manner that is, in the public interest, taking into 
     account--
       (1) the impacts on U.S. consumers, U.S. carriers, and U.S. 
     operators;
       (2) the impacts on the economic, energy, and environmental 
     security of the United States; and
       (3) the impacts on U.S. foreign relations, including 
     existing international commitments.
       (b) Public Hearing.--After determining that a prohibition 
     under this section may be in the public interest, the 
     Secretary must hold a public hearing at least 30 days before 
     imposing any prohibition.

     SEC. 3. NEGOTIATIONS.

       The Secretary of Transportation, the Administrator of the 
     Federal Aviation Administration, and other appropriate 
     officials of the United States Government--
       (1) should, as appropriate, use their authority to conduct 
     international negotiations, including using their authority 
     to conduct international negotiations to pursue a worldwide 
     approach to address aircraft emissions; and
       (2) shall, as appropriate, take other actions under 
     existing authorities that are in the public interest 
     necessary to hold operators of civil aircraft of the United 
     States harmless from the emissions trading scheme referred to 
     under section 2.

     SEC. 4. DEFINITION OF CIVIL AIRCRAFT OF THE UNITED STATES.

       In this Act, the term ``civil aircraft of the United 
     States'' has the meaning given the term under section 
     40102(a) of title 49, United States Code.

  Mr. THUNE. Mr. President, I would like to thank my colleague from 
Oregon, Mr. Merkley, for working with the Senator from Missouri, Mrs. 
McCaskill, and me today to address his concerns with our bipartisan 
bill, S. 1956, the European Union Emissions Trading Scheme Prohibition 
Act. The amendment, which he has filed for consideration and which is 
currently running through the hotline process, reconfirms that the 
Secretary of Transportation's responsibility to determine there is a 
public interest before taking any action does not end after the first 
determination. Instead, it is an ongoing responsibility.
  The amendment that Mr. Merkley has filed, and which I support, 
clarifies that it is the Secretary's right to reassess the public 
interest determination. Additionally, the amendment clarifies that if 
the EU ETS is amended, if there is an international agreement on 
aviation emissions, or if a Federal public law is enacted that 
addresses aviation emissions, that the Secretary will again revisit the 
public interest determination.
  Again, I would like to thank the Senator from Oregon for working with 
me, and I look forward to passage of S. 1956.
  Mr. REID. Mr. President, I ask unanimous consent that the committee-
reported amendment be considered, the Cardin and Merkley amendments at 
the desk be agreed to, the committee-reported amendment, as amended, be 
agreed to, the bill, as amended, be read a third time and passed, the 
motion to reconsider be considered made and laid upon the table, and 
any statements relating to this bill be printed in the Record.
  I would also extend my appreciation to all Senators who have been 
involved in this contentious issue--for a while, at least--and 
especially Senator Thune, who has helped us work through this and a 
number of other things.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendments were agreed to, as follows:

  (Purpose: To prohibit the use of taxpayer dollars to pay taxes and 
    penalties imposed on United States air carriers pursuant to the 
                European Union emissions trading scheme)

       Beginning on page 5, strike line 14 and all that follows 
     through page 6, line 2, and insert the following:

     SEC. 3. NEGOTIATIONS.

       (a) In General.--The Secretary of Transportation, the 
     Administrator of the Federal Aviation Administration, and 
     other appropriate officials of the United States Government--
       (1) should, as appropriate, use their authority to conduct 
     international negotiations, including using their authority 
     to conduct international negotiations to pursue a worldwide 
     approach to address aircraft emissions, including the 
     environmental impact of aircraft emissions; and
       (2) shall, as appropriate and except as provided in 
     subsection (b), take other actions under existing authorities 
     that are in the public interest necessary to hold operators 
     of civil aircraft of the United States harmless from the 
     emissions trading scheme referred to under section 2.
       (b) Exclusion of Payment of Taxes and Penalties.--Actions 
     taken under subsection (a)(2) may not include the obligation 
     or expenditure of any amounts in the Airport and Airway Trust 
     Fund established under section 9905 of the Internal Revenue 
     Code of 1986, or amounts otherwise made available to the 
     Department of Transportation or any other Federal agency 
     pursuant to appropriations Acts, for the payment of any tax 
     or penalty imposed on an operator of civil aircraft of the 
     United States pursuant to the emissions trading scheme 
     referred to under section 2.
                                  ____


     (Purpose: To provide for the reassessment by the Secretary of 
Transportation of a determination that it is in the public interest to 
    prohibit operators of civil aircraft of the United States from 
    participating in the European Union's emissions trading scheme)

       On page 5, between lines 13 and 14, insert the following:
       (c) Reassessment of Determination of Public Interest.--The 
     Secretary--
       (1) may reassess a determination under subsection (a) that 
     a prohibition under that subsection is in the public interest 
     at any time after making such a determination; and
       (2) shall reassess such a determination after--
       (A) any amendment by the European Union to the EU Directive 
     referred to in subsection (a); or
       (B) the adoption of any international agreement pursuant to 
     section 3(1).
       (C) enactment of a public law or issuance of a final rule 
     after formal agency rulemaking, in the United States to 
     address aircraft emissions.

  The committee-reported amendment in the nature of a substitute, as 
amended, was agreed to.

[[Page S6612]]

  The bill (S. 1956), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed, as follows:

                                S. 1956

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``European Union Emissions 
     Trading Scheme Prohibition Act of 2011''.

     SEC. 2. PROHIBITION ON PARTICIPATION IN THE EUROPEAN UNION'S 
                   EMISSIONS TRADING SCHEME.

       (a) In General.--The Secretary of Transportation shall 
     prohibit an operator of a civil aircraft of the United States 
     from participating in the emissions trading scheme 
     unilaterally established by the European Union in EU 
     Directive 2003/87/EC of October 13, 2003, as amended, in any 
     case in which the Secretary determines the prohibition to be, 
     and in a manner that is, in the public interest, taking into 
     account--
       (1) the impacts on U.S. consumers, U.S. carriers, and U.S. 
     operators;
       (2) the impacts on the economic, energy, and environmental 
     security of the United States; and
       (3) the impacts on U.S. foreign relations, including 
     existing international commitments.
       (b) Public Hearing.--After determining that a prohibition 
     under this section may be in the public interest, the 
     Secretary must hold a public hearing at least 30 days before 
     imposing any prohibition.
       (c) Reassessment of Determination of Public Interest.--The 
     Secretary--
       (1) may reassess a determination under subsection (a) that 
     a prohibition under that subsection is in the public interest 
     at any time after making such a determination; and
       (2) shall reassess such a determination after--
       (A) any amendment by the European Union to the EU Directive 
     referred to in subsection (a); or
       (B) the adoption of any international agreement pursuant to 
     section 3(1).
       (C) enactment of a public law or issuance of a final rule 
     after formal agency rulemaking, in the United State to 
     address aircraft emissions.

     SEC. 3. NEGOTIATIONS.

       (a) In General.--The Secretary of Transportation, the 
     Administrator of the Federal Aviation Administration, and 
     other appropriate officials of the United States Government--
       (1) should, as appropriate, use their authority to conduct 
     international negotiations, including using their authority 
     to conduct international negotiations to pursue a worldwide 
     approach to address aircraft emissions, including the 
     environmental impact of aircraft emissions; and
       (2) shall, as appropriate and except as provided in 
     subsection (b), take other actions under existing authorities 
     that are in the public interest necessary to hold operators 
     of civil aircraft of the United States harmless from the 
     emissions trading scheme referred to under section 2.
       (b) Exclusion of Payment of Taxes and Penalties.--Actions 
     taken under subsection (a)(2) may not include the obligation 
     or expenditure of any amounts in the Airport and Airway Trust 
     Fund established under section 9905 of the Internal Revenue 
     Code of 1986, or amounts otherwise made available to the 
     Department of Transportation or any other Federal agency 
     pursuant to appropriations Acts, for the payment of any tax 
     or penalty imposed on an operator of civil aircraft of the 
     United States pursuant to the emissions trading scheme 
     referred to under section 2.

     SEC. 4. DEFINITION OF CIVIL AIRCRAFT OF THE UNITED STATES.

       In this Act, the term ``civil aircraft of the United 
     States'' has the meaning given the term under section 
     40102(a) of title 49, United States Code.
  Mr. REID. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. PRYOR. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________