Keep America Competitive Global Warming Policy Act of 2006 - Requires the Administrator of the Environmental Protection Agency (EPA) to issue regulations to establish a system for: (1) issuing, recording, and tracking greenhouse gas emission allowances; (2) measuring carbon that will be produced by covered fossil fuels; and (3) measuring greenhouse gases in carbon equivalents.
Directs the Administrator to issue annually, maintain a registry of, and assign unique serial numbers to allowances based on the estimated emission matching allowances required to be transferred to the Administrator, before activities may be conducted, by: (1) importers of refined petroleum products or coal; (2) owners and operators of natural gas pipelines, natural gas processing plants, oil refineries, coal preparation plants, or coal mines; and (3) persons selling or disposing of other covered fossil fuels, greenhouse gases, or products processed through an agricultural, industrial, or manufacturing process that emits a greenhouse gas. Allows a person to sell or exchange an allowance to any other person.
Requires the Administrator to allocate specified percentages of allowances: (1) to the Secretary of Energy to establish the Advanced Research Projects Agency-Energy to implement an innovative energy research and technology development and deployment program; (2) to the Secretary of State for investing in and providing assistance for low-emission policies, technologies, and projects in developing countries; (3) for distribution to specified industry sectors to offset their losses of profits that are directly attributable to this Act; (4) to the states for grants to help individuals who have lost their jobs due to this Act, for grants to assist communities that demonstrate economic loss due to this Act, and for low-income home energy assistance; and (5) to the Treasury.
Requires the Secretary of the Treasury to offer an unlimited number of allowances for sale at a safety valve price, which the Secretary shall increase after the President accepts a certification by the Secretary of State that the five developing countries with the most greenhouse gas emissions are enforcing policies and programs comparable to those established pursuant to this Act.
Sets forth a civil penalty for entities that do not transfer the required number of allowances to the Administrator. Allows government agencies with ratemaking regulatory authority to allow an entity required to submit allowances to recover the full market value of such allowances.
Directs the Administrator to: (1) review and approve appropriate domestic sequestration project proposals that will result in a measurable reduction in greenhouse gas emissions; and (2) issue allowances based on the amount of greenhouse gas sequestered.