Credit for Voluntary Actions Act

Credit for Voluntary Actions Act - Authorizes the President to enter into legally binding voluntary action agreements with any person under which the United States agrees to provide greenhouse gas reduction credit usable beginning in the compliance period (during which a domestic greenhouse gas regulatory statute is in effect) if such person reduces greenhouse gas emissions or sequesters carbon before the end of the credit period. Defines the credit period as: (1) the period of January 1, 1999, through the earlier of the day before the compliance period begins or the end of the ninth calendar year beginning after enactment of this Act; or (2) a different period determined under extension or adjustment provisions of this Act.

(Sec. 5) Requires a participant to receive greenhouse gas reduction credit under such an agreement if such participant takes an action that: (1) reduces such emissions or sequesters carbon before the end of the credit period; and (2) will result in an addition to the U.S. quantified emission limitation during the credit period. Authorizes agreements to entitle a participant to receive credit for a reduction or sequestration that is not creditable under such requirements and is for a project accepted before December 31, 2000, under the U.S. Initiative for Joint Implementation, financing for which was provided or construction of which was commenced before such date.

Limits the period in which credit may be earned to the earlier of the earliest date on which credit may be earned for a reduction, sequestration, or comparable project under a congressionally authorized domestic greenhouse gas regulatory statute or the end of the credit period.

Grants a participant credit if, during the credit period, the participant's aggregate greenhouse gas emissions from domestic sources covered by the agreement are less than the sum of the participant's annual source baselines during such period. Treats the amount by which the aggregate net carbon sequestration for such period in a participant's domestic carbon reservoirs exceeds the sum of the annual reservoir baselines for such period as an emission reduction.

Sets forth circumstances under which a participant is entitled to receive one ton of reduction credit for reductions or sequestration for 1991 through 1998. Authorizes an extension of the period during which credit may be earned if the Congress so permits by law.

Requires the President to report the cumulative balance of emissions credits potentially earned under all agreements annually to Congress and notify Congress of a determination that such balance has reached or exceeded 365 million.

Entitles participants, at the end of the credit period, to one ton of reduction credit for each creditable ton.

Bars credits for the reduction of certain greenhouse gases used in automatic fire suppression systems.

(Sec. 6) Establishes annual source or reservoir baselines for the years in the credit period equal to a participant's average annual greenhouse gas emissions from domestic sources or average level of carbon stocks in reservoirs during a three-year base period ending with this Act's enactment date, with specified adjustments. Provides for alternative base periods if data is unavailable or unrepresentative. Authorizes participants to elect a base period earlier than the one prescribed by this Act (excluding years earlier than 1990) to reflect voluntary reductions made before that period. Provides for adjustment of the period during which credit may be earned if an election is made for a base period earlier than 1996.

(Sec. 7) Requires agreements to cover all greenhouse gas sources that a participant owns on the date on which an agreement is entered into. Permits agreements to exclude small or diverse sources where the emissions represent a de minimis percentage of the participant's total emissions.

Defines a participant's annual baseline as the product of its baseline emissions, economic change factor (ratio of product output during the year and average annual output during the base period), and the Gross Domestic Product (GDP) adjustment factor (difference between 100 and the percentage by which the U.S. GDP has increased since the base period).

Authorizes coverage for other owned sources and reservoirs.

(Sec. 8) Establishes reporting, measurement, and verification procedures and requires public availability of participants' reports.

(Sec. 9) Permits the President to enter into agreements with participants that manufacture or construct for sale to end-users equipment or facilities that emit greenhouse gases and adopt end use efficiency technologies.

Sets forth provisions regarding the emissions baselines and calculation of reduction credits for such participants.

Authorizes participants that manufacture automobiles to enter into agreements under this section.

(Sec. 10) Requires agreements to entitle participants to receive reduction credit for permanent protection of carbon stocks in mature primary forests, reforestation and afforestation, and improved forest carbon stock management in forests that have merchantable timber.

Sets forth provisions for the calculation of credits under this section.

Makes eligible to participate in the program established by this section: (1) private lands and lands that are transferred into permanent protection under State or Federal jurisdiction during the credit period; and (2) mature primary forests and lands on which reforestation and afforestation is initiated during the credit period. Sets forth additional requirements for eligible forests.

Limits carbon stock increase credits to 20 percent of all credits allocated under this Act.

Sets forth requirements for monitoring and reporting with respect to carbon stocks.

(Sec. 11) Permits participants to purchase credit from and sell credit to other participants and sell credit to non-participants. Authorizes pooling arrangements under which a group of participants acts as a single participant for purposes of entering into an agreement.

(Sec. 12) Requires agreements to provide that: (1) credit earned under an agreement shall be provided in addition to any otherwise available authorizations of the participant to emit greenhouse gases during the compliance period under a domestic statute; and (2) if the allocation of authorizations under such statute is based on the level of a participant's emissions in a historic period later than the participant's base period under the agreement, any credit to which the participant was entitled during such historic period shall be added back to the participant's emissions level for such period.