the environment by both depleting the stratospheric 
ozone layer and contributing to global warming. 
(2) The harms associated with global warming 
are serious and well recognized. These include the 
global retreat of mountain glaciers, reduction in 
snow cover extent, the earlier spring melting of riv-
ers and lakes, the accelerated rise of sea levels, the 
extinction of up to 30 percent of the world’s species, 
the increased frequency of cardio-respiratory and 
diarrhoeal diseases, and the increased intensity of 
hurricanes and typhoons. 
(3) The harms associated with the depletion of 
the stratospheric ozone layer are also serious and 
well recognized. The thinning of the stratospheric 
ozone layer allows more harmful ultraviolet radiation 
to reach the surface of the Earth. This radiation can 
contribute to skin cancer, cataracts, and weakened 
immune systems in humans. It can also adversely af-
fect agricultural crops and aquatic organisms, such 
as zooplankton and phytoplankton, with adverse con-
sequences for aquatic ecosystems. 
(4) September 2007 will be the 20th anniver-
sary of the signing of the Montreal Protocol on Sub-
stances that Deplete the Ozone Layer, which set 
controls on the production and consumption of ozone 
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depleting substances. The Protocol, which has been 
ratified by 191 countries, is widely regarded as the 
most successful international environmental treaty 
ever adopted. By 2005, the treaty had driven global 
production of ozone depleting substances down by 
approximately 95 percent from their 1990 levels. 
(5) The Montreal Protocol currently requires 
developed countries to phase out the consumption of 
HCFCs by 2030 and developing countries to phase 
out the consumption of these chemicals by 2040. 
(6) The Montreal Protocol has provided dra-
matic climate benefits. Between 1990 and 2010, the 
Montreal Protocol will have eliminated the equiva-
lent of 11 billion tons of carbon dioxide per year. 
This is equivalent each year to over five times the 
reductions that are to be achieved under the Kyoto 
Protocol. This reduction will have the effect of delay-
ing global warming impacts by seven to twelve years. 
Without the Montreal Protocol, the world would be 
approximately a decade further along the path to 
catastrophic climate change. 
(7) The Montreal Protocol has the potential to 
provide additional significant climate benefits. Accel-
erating the phase-out of HCFCs in a way that sup-
ports climate change objectives could reduce emis-
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sions by the equivalent of approximately 25 billion 
tons of carbon dioxide between 2010 and 2050. Fur-
ther substantial environmental benefits will accrue if 
CFCs and HCFCs contained in banks of existing 
equipment and products are recovered at equipment 
and product end-of-life and then recycled or de-
stroyed. By accelerating the phase-out of ozone de-
pleting HCFCs and recovering and destroying CFC 
and HCFC banks, the Parties to the Montreal Pro-
tocol could achieve an immediate reduction in emis-
sions from both developed and developing countries, 
and further delay global warming impacts. 
SEC. 3. SENSE OF CONGRESS REGARDING MONTREAL PRO-
TOCOL NEGOTIATIONS. 
It is the sense of Congress that the United States 
should negotiate with the other Parties to the Montreal 
Protocol at the earliest opportunity to— 
(1) maximize the ability of the Montreal Pro-
tocol to mitigate global warming impacts, while en-
suring continued protection of the ozone layer, by fo-
cusing on the climate impacts of ozone depleting 
substances and their substitutes, and on the energy 
efficiency of equipment in which such substances 
and their substitutes are used; 
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(2) accelerate the phase out of HCFCs by ten 
years for developed and developing countries or take 
alternative steps to achieve equivalent climate and 
ozone layer protection benefits; 
(3) set interim HCFC reduction steps for devel-
oping countries so that a 65 percent reduction is 
mandated by 2020 and a 90 percent reduction is 
mandated by 2025; 
(4) change the baseline date for developing 
countries from 2015 to 2010; and 
(5) fully finance the Multilateral Fund con-
sistent with past practice so that an accelerated 
phase out of HCFCs can be accomplished with max-
imum benefit for both ozone layer and climate pro-
tection. 
SEC. 4. PRODUCTS CONTAINING HCFCS. 
(a) FIRE SUPPRESSION AGENTS.—Section 605(a) of 
the Clean Air Act (42 U.S.C. 7671d(a)) is amended by 
striking ‘‘or’’ at the end of paragraph (2), striking the 
period at the end of paragraph (3) and inserting ‘‘; or’’ 
and adding the following new paragraph after paragraph 
(3): 
‘‘(4) the Administrator determines that the sub-
stance is used as a fire suppression agent for mili-
tary, commercial aviation, industrial, space, or na-
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tional security applications, and reduces overall risk 
to human health and the environment compared to 
alternatives.’’. 
(b) IMPORT BAN.—Section 605 of the Clean Air Act 
(42 U.S.C. 7671d) is amended by inserting the following 
new subsection after subsection (b) and redesignating the 
suceeceding subsections accordingly: 
‘‘(c) IMPORT BAN.—It shall be unlawful for any per-
son to import any product manufactured after January 
1, 2010, containing any class II substance that has been 
phased out of production and consumption under regula-
tions promulgated by the Administrator under this section 
for any purpose other than for use in a process resulting 
in its transformation, for use in a process resulting in its 
destruction, or under exceptions stated in subsection (d).’’. 
SEC. 5. DESTRUCTION OF BANKS OF OZONE DEPLETING 
SUBSTANCES. 
Section 604 of the Clean Air Act (42 U.S.C. 7671c) 
is amended by adding the following new subsection at the 
end thereof: 
‘‘(i) DESTRUCTION OF BANKS.—(1) Effective Janu-
ary 1, 2010, it shall be unlawful for any person to produce 
or import an amount of any class I substance otherwise 
permitted under subsections (e), (g), or (h)(6) unless the 
Administrator certifies that the person has destroyed or 
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a given quantity of any class I or class II substance 
pursuant to paragraphs (1), (2) and (3): 
‘‘(i) the production and consumption of 
such substances is controlled to a level of zero 
under the Clean Air Act without regard to 
amounts permitted under subsections (d), (e), 
(f), (g), or (h); 
‘‘(ii) such substance was not in possession 
of the federal government prior to destruction; 
and 
‘‘(iii) such substance was destroyed using a 
controlled process approved by the Parties to 
the Montreal Protocol; 
‘‘(B) certification can be received for the de-
struction of a given quantity of any class I or class 
II substance within or outside the United States; 
‘‘(C) once issued, certifications may be applied 
to any future production or import of a given quan-
tity of any class I or class II substance. 
‘‘(5) If, after January 1, 2015, upon petition of any 
entity, the Administrator determines by clear and con-
vincing evidence that it is technically and economically in-
feasible to obtain material for destruction, the Adminis-
trator may adjust the offset ratio downward or, if nec-
essary, waive the requirements of paragraphs (1), (2), or 
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(3). The Administrator shall issue a final decision on such 
petition within 90 days.’’. 
SEC. 6. SUBSTITUTES FOR CFC AND HCFC REFRIGERANTS. 
(a) DEFINITION.—Section 608 of the Clean Air Act 
(42 U.S.C. 7671g) is amended by adding the following 
new subsection at the end thereof: 
‘‘(d) DEFINITION.—For the purposes of this section, 
the term ‘substitute’ means any substance or chemical 
used in or for types of equipment, appliances, or processes 
previously relying on class I or class II substances.’’. 
(b) REGULATIONS.—Section 608(a) of the Clean Air 
Act (42 U.S.C. 7671g(a))is amended by inserting the fol-
lowing new paragraph after paragraph (2) and redesig-
nating paragraph (3) as (4): 
‘‘(3) The Administrator shall, within 1 year after the 
enactment of this Act, promulgate regulations establishing 
standards and requirements regarding the sale, distribu-
tion or offer for sale and distribution in interstate com-
merce, use, and disposal of substitutes for class I and class 
II substances not covered by paragraph (1), including the 
use, recycling, and disposal of such substitutes during the 
maintenance, service, repair, or disposal of appliances and 
industrial process refrigeration equipment. Such stand-
ards and requirements shall become effective not later 
than 12 months after promulgation of the regulations.’’. 
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(c) SAFE DISPOSAL.—Section 608(b) of the Clean 
Air Act (42 U.S.C. 7671g(b)) is amended as follows: 
(1) Inserting ‘‘and their substitutes’’ after 
‘‘class I and II substances’’ in the matter preceding 
paragraph (1). 
(2) Inserting ‘‘, or substitutes for such sub-
stances,’’ after ‘‘class I or class II substances’’ in 
paragraph (1). 
(3) Inserting ‘‘, or a substitute for such sub-
stance,’’ after ‘‘class I or class II substance’’ in 
paragraphs (2), and (3). 
(d) SMALL CONTAINERS.—Section 609(e) of such 
Act (42 U.S.C. 7671g(e)) is amended as follows: 
(1) Inserting ‘‘and Their Substitutes’’ at the 
end of the paragraph heading. 
(2) Inserting ‘‘(1)’’ before ‘‘Effective 2 years’’. 
(3) Adding the following at the end thereof: 
‘‘(2) Effective January 1, 2010, it shall be unlawful 
for any person to sell or distribute, or offer for sale or 
distribution, in interstate commerce to any person (other 
than a person performing service for consideration on 
motor vehicle air-conditioning systems in compliance with 
this section) any substitute that is suitable for use in a 
motor vehicle air-conditioning system and that is in a con-
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tainer which contains less than 20 pounds of such sub-
stitute.’’. 
SEC. 7. REFRIGERANT ENVIRONMENTAL MANAGEMENT 
COUNCIL. 
(a) DEFINITIONS.—For the purposes of this section: 
(1) The terms ‘‘recover,’’ ‘‘recycle,’’ and ‘‘re-
claim’’ have the meanings provided in 40 CFR 
82.152. 
(2) The term ‘‘destruction’’ has the meaning 
provided in 40 CFR 82.3. 
(3) The term ‘‘virgin refrigerants’’ means newly 
produced refrigerants in an originally sealed original 
container. 
(4) The term ‘‘chlorofluorocarbons’’ means the 
many various halocarbon compounds consisting of 
carbon, chlorine, and fluorine used widely as refrig-
erants and controlled by the Montreal Protocol. 
(5) 
The 
term 
‘‘hydrochlorofluorocarbons’’ 
means halogenated compounds containing carbon, 
hydrogen, chlorine and fluorine used widely as a re-
frigerants and controlled by the Montreal Protocol. 
(6) The term ‘‘hydrofluorocarbons’’ means halo-
genated hydrocarbons in which the molecule contains 
hydrogen, fluorine, and carbon but is absent of chlo-
rine used widely as refrigerants. 
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(7) 
The 
term 
‘‘fluorocarbons’’ 
means 
chlorofluorocarbons, 
hydrochlorofluorocarbons 
or 
hydrofluorocarbons. 
(8) The term ‘‘certified reclaimer’’ means enti-
ties certified by the U.S. Environmental Protection 
Agency to reclaim used refrigerant for the purposes 
of resale to a new owner. 
(9) The term ‘‘certified destruction process op-
erator’’ means destruction process operators certified 
by the U.S. Environmental Protection Agency. 
(10) The term ‘‘original refrigerant equipment’’ 
means air conditioning and refrigeration products 
that rely on refrigerants to operate, including motor 
vehicle air conditioning systems. 
(11) The term ‘‘Administrator’’ means the Ad-
ministrator of the U.S. Environmental Protection 
Agency. 
(12) The term ‘‘Secretary’’ means the U.S. Sec-
retary of Commerce. 
(13) The term ‘‘Council’’ means the Refrigerant 
Environmental Management Council. 
(14) The term ‘‘Board’’ means the Board of 
Directors of the Refrigerant Environmental Manage-
ment Council. 
(b) ESTABLISHMENT.— 
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(1) ESTABLISHMENT OF NONPROFIT ORGANIZA-
TION.—The Refrigerant Environmental Management 
Council is hereby established as a non-profit entity 
organized under the District of Columbia Nonprofit 
Corporation Act to address the emissions of fluoro-
carbon refrigerants in an economical, efficient, and 
effective manner. The Council shall not be an agency 
or establishment of the United States Government. 
The purpose of the Council shall be to lead industry 
in recovery, reclamation, and destruction of fluoro-
carbon refrigerants, thereby reducing emissions of 
these compounds. 
(2) GOVERNANCE.—The Council shall be gov-
erned by a Board of Directors representing the air 
conditioning, refrigeration, and related industries, 
government agencies, and independent entities or 
persons as stated in subsection (c). 
(c) REFRIGERANT ENVIRONMENTAL MANAGEMENT 
COUNCIL.— 
(1) 
BOARD
COMPOSITION.—The 
Council’s 
Board of Directors shall consist of 21 members, with 
3 members representing refrigerant producers and 
importers, 4 members representing original refrig-
erant equipment manufacturers, 3 members rep-
resenting reclaimers, destruction process operators, 
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dustry and public Board Members filling unexpired 
terms may serve not more than a total of 7 consecu-
tive years. Former Board members may be returned 
to the Board if they have not been members for a 
period of 2 years. Initial appointments to the Board 
shall be for terms of 1, 2, and 3 years, staggered to 
provide for the selection of 7 members each year. 
(6) ADMINISTRATION.—The Board shall select 
from among the members appointed pursuant to 
subparagraph (2)(a) a Chairman and other officers 
as necessary, may establish committees and sub-
committees, and shall adopt rules and bylaws for the 
conduct of business and the implementation of this 
Act and shall hire appropriate administrative staff 
to operate and conduct Council business. The Coun-
cil shall establish procedures for the solicitation of 
industry, nongovernmental, and government com-
ment and recommendations on any significant plans, 
programs, and projects. 
(7) ADMINISTRATION EXPENSES.—The admin-
istrative expenses of operating the Council shall not 
exceed 10 percent of the funds collected in any fiscal 
year. 
(8) REIMBURSEMENT.—The Council shall an-
nually reimburse the Administrator for costs in-
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curred by the Federal Government relating to the 
Council, except that such reimbursement for any fis-
cal year shall not exceed the amount that the Ad-
ministrator determines is the average annual budget 
for this program to the Administrator and to the 
Congress. 
(9) BUDGET.—Before August 1 each year, the 
Council shall publish for public review and comment 
a budget plan for the next calendar year, including 
the probable costs of all programs, projects, and 
contracts and a recommended rate of assessment 
sufficient to cover such costs. Following this review 
and comment, the Council shall submit the budget 
to the Administrator. The Administrator may rec-
ommend programs and activities the Administrator 
considers appropriate. 
(10) RECORDS; AUDITS.—The Council shall 
keep minutes, books, and records that clearly reflect 
all of the acts and transactions of the Council and 
make public such information. The books of the 
Council shall be audited by a certified public ac-
countant at least once each fiscal year and at such 
other times as the Council may designate. Copies of 
such audit shall be provided to all Board members, 
the Administrator, the Secretary, the House of Rep-
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resentatives Committee on Energy and Commerce, 
and the Senate Committee on Environment and 
Public Works. The Administrator shall receive notes 
of meetings and may require reports on the activities 
of the Council, as well as reports on compliance, vio-
lations, and complaints regarding the implementa-
tion of this Act. 
(11) MINUTES.—The minutes of all meetings of 
the Board shall be made available to and readily ac-
cessible by the public. 
(12) ANNUAL REPORT.—Each year, the Council 
shall prepare and make publicly available a report 
that includes an identification and description of all 
programs and projects undertaken by the Council 
during the previous year as well as those planned for 
the coming year. Such report shall detail the alloca-
tion or planned allocation of Council resources for 
each program and project. Such report shall also in-
clude estimates of the quantities and types of sub-
stances recycled and destroyed as a result of the in-
centives provided under subsection (e)(1). 
(d) LEVIES.— 
(1) LEVY.—The Council shall have authority to 
institute and collect a per pound levy, equally ap-
plied, on the domestic production of all virgin HCFC 
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and HFC refrigerants, the import of all HCFC and 
HFC refrigerants, and on the import of all HCFC 
and HFC refrigerants contained in equipment. The 
levy shall be collected at the first point of sale in the 
United States. 
(2) AMOUNT.—The Board shall set the initial 
levy at thirty cents per pound of refrigerant. There-
after, annual levies shall be sufficient to cover the 
costs of the plans and programs developed by the 
Council. Any change in the levy amount must be ap-
proved by a two-thirds vote of the Board. In no case 
may the levy be raised by more than ten cents per 
pound of refrigerant in any one year. 
(3) OWNERSHIP.—The domestic producers of 
virgin HCFC and HFC refrigerants, and the import-
ers of all HCFC and HFC refrigerants, and the im-
porters of all HCFC and HFC refrigerants con-
tained in equipment at the time of the first point of 
sale in the United States, shall pay the levy based 
on the pounds of refrigerants produced or imported. 
Levies collected are payable to the Council on a 
monthly basis by the 25th of the month following 
the month of such collection. Virgin refrigerants ex-
ported from the United States to another country 
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and refrigerants reclaimed in the United States are 
not subject to the levy. 
(4) ALTERNATIVE
COLLECTION
RULES.—The 
Board may establish an alternative means of col-
lecting the levy if another means is found to be more 
efficient and effective. The Board may establish a 
late payment charge and a rate of interest to be im-
posed on any person who fails to remit or pay to the 
Council any amount due under this Act. 
(5) INVESTMENT
OF
FUNDS.—Pending dis-
bursement pursuant to a program, plan, or project, 
the Council may invest funds collected through lev-
ies, and any other funds received by the Council, 
only in obligations of the United States or any agen-
cy thereof, in general obligations of any State or any 
political subdivision thereof, in any interest-bearing 
account or certificate of deposit of a bank that is a 
member of the Federal Reserve System, or in obliga-
tions fully guaranteed as to principal and interest by 
the United States. Funds shall only be disbursed for 
operating expenses, reimbursements to the U.S. En-
vironmental Protection Agency, programs approved 
by the Board, and the provision of incentive pay-
ments under subsection (e). 
(e) DISBURSEMENTS.— 
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