SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carbon Neutral Government Act of 
2009''.

SEC. 2. AUTHORIZATION TO PURCHASE OFFSETS AND CREDITS.

    (a) Federal Authorities.--Subject to the requirements of this Act, 
each executive agency (as defined in section 105 of title V of the 
United States Code) and each legislative branch office is authorized to 
use appropriated funds to purchase either or both of the following in 
any open market transaction, that complies with all applicable 
procurement rules and regulations and is approved in accordance with 
subsection (c):
            (1) Qualified tradeable greenhouse gas offsets.
            (2) Qualified tradeable renewable energy credits.
    (b) Qualification of Offsets and Credits.--A tradeable greenhouse 
gas offset or renewable energy credit shall be treated as qualified for 
purposes of this section if the Secretary of Energy certifies the 
generator of such offset or credit. Upon the application of any person 
generating or planning to generate any such offsets or credits, the 
Secretary shall certify the generator if the Secretary determines that 
the generator meets, or will, upon implementation, meet, such 
requirements as the Secretary deems necessary, under rules promulgated 
by the Secretary, to ensure that the offsets or credits generated will 
represent the reduction of greenhouse gases as specified or estimated 
in the offset (in the case of an offset) or in the generation of the 
amount of renewable energy which the credit represents or is estimated 
to represent (in the case of a credit). A reduction in greenhouse gases 
that the Secretary determines would have occurred in the absence of the 
opportunity to sell an offset for such reduction shall not be treated 
as a qualified offset for purposes of this Act.
    (c) Approval of Open Market Transactions.--The Secretary of Energy 
shall promulgate rules, after notice and opportunity for comment, 
regarding the open market transactions (involving qualified tradeable 
greenhouse gas offsets and qualified tradeable renewable energy 
credits) that will be treated as approved for purposes of this Act. 
Such rules shall accommodate forward purchasing and crediting of 
offsets and credits on an estimated basis from small scale offset and 
renewable energy generators, and other open market transactions that 
are useful in enabling short-term purchases of greenhouse gas offsets 
and renewable energy credits to contribute meaningfully to the 
implementation of small scale offset and renewable energy generators.
    (d) Definitions.--For purposes of this Act:
            (1) Greenhouse gas offset.--The term ``greenhouse gas 
        offset'' means the reduction in emissions of greenhouse gases 
        that results from an action or actions undertaken for the 
        purpose, among others, of reducing greenhouse gas emissions 
        (including the generation of renewable energy), where: (A) such 
        action or actions would not have occurred in the absence of the 
        opportunity to sell an offset for the resulting reductions; (B) 
        the party claiming credit for the reductions has acquired the 
        exclusive legal rights to claim credit for the reductions; and 
        (C) such exclusive legal rights can be verified and approved by 
        the Secretary through an auditable contract path or other 
        system established by the Secretary.
            (2) Greenhouse gas.--The term ``greenhouse gas'' includes 
        carbon dioxide, methane, nitrous oxide, and fluorinated gases.
            (3) Renewable energy credit.--The term ``renewable energy 
        credit'' means all of the environmental attributes associated 
        with a single unit of energy generated by a renewable energy 
        source where: (A) those attributes are transferred or recorded 
        separately from that unit of energy; (B) the party claiming 
        ownership of the credit has acquired the exclusive legal 
        ownership of all, and not less than all, the environmental 
        attributes associated with that unit of energy; and (C) 
        exclusive legal ownership of the credit can be verified and 
        approved by the Secretary through an auditable contract path or 
        other system established by the Secretary.
            (4) Renewable energy.--The term ``renewable energy'' means 
        electric energy generated from solar, wind, biomass, landfill 
        gas, ocean (including tidal, wave, current, and thermal), 
        geothermal, municipal solid waste, or new hydroelectric 
        generation capacity achieved from increased efficiency or 
        additions of new capacity at an existing hydroelectric project.
            (5) Tradeable.--The term ``tradeable'' when used in 
        connection with an offset or credit means that the offset or 
        credit is available for purchase and sale in an open and 
        transparent market.
    (e) Effective Date.--The authority of section 1 shall take effect 
for fiscal years after the enactment of this Act.
Carbon Neutral Government Act of 2009 - Authorizes federal agencies and legislative branch offices to purchase qualified tradeable: (1) greenhouse gas (GHG) offsets; and (2) renewable energy credits.

Requires the Secretary of Energy to promulgate rules regarding approved open market transactions involving such offsets and credits. Requires such rules to accommodate forward purchasing and crediting of offsets and credits on an estimated basis from small scale offset and renewable energy generators and other open market transactions that help enable short-term purchases of offsets and credits to contribute to the implementation of such generators.

Defines "greenhouse gas offsets" to mean a reduction in GHG emissions that results from actions that would not have occurred in the absence of the opportunity to sell an offset for the resulting reduction.
To authorize Federal agencies and legislative branch offices to purchase greenhouse gas offsets and renewable energy credits, and for other purposes.