Title: American Innovation and Manufacturing Act of 2019
Policy area: Environmental Protection

Summary:
American Innovation and Manufacturing Act of 2019
This bill addresses the use and regulation of fluorinated compounds in products and manufacturing, including by requiring the Environmental Protection Agency to establish specified production and consumption baselines for the phase-down of specified fluorinated compounds.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2754 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2754

 To create jobs and drive innovation and economic growth in the United 
 States by supporting and promoting the manufacture of next-generation 
technologies, including refrigerants, solvents, fire suppressants, foam 
               blowing agents, aerosols, and propellants.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 30, 2019

   Mr. Kennedy (for himself, Mr. Carper, Mr. Cassidy, Mr. Coons, Ms. 
   Collins, Mr. Whitehouse, Mr. Wicker, Mr. Merkley, Mr. Graham, Mr. 
    Booker, Mr. Young, Mr. Markey, Mr. Boozman, Mr. Blumenthal, Mr. 
  Alexander, and Mr. Cardin) introduced the following bill; which was 
  read twice and referred to the Committee on Environment and Public 
                                 Works

_______________________________________________________________________

                                 A BILL


 
 To create jobs and drive innovation and economic growth in the United 
 States by supporting and promoting the manufacture of next-generation 
technologies, including refrigerants, solvents, fire suppressants, foam 
               blowing agents, aerosols, and propellants.

    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 ``American Innovation and 
Manufacturing Act of 2019''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress finds that--
            (1) industries in the United States that use and produce 
        fluorocarbons--
                    (A) contribute more than $158,000,000,000 annually 
                in goods and services to the economy of the United 
                States; and
                    (B) provide employment to more than 700,000 
                individuals, with an industry-wide payroll of more than 
                $32,000,000,000;
            (2) the support and promotion of the technological 
        leadership of the United States in fluorocarbon production and 
        related products, equipment, and other uses provided by this 
        Act is expected--
                    (A) to create approximately 33,000 new 
                manufacturing jobs in the United States; and
                    (B) to add approximately $12,500,000,000 per year 
                to the economy of the United States;
            (3) supporting and promoting the technological leadership 
        of the United States in fluorocarbon production and related 
        products, equipment, and other uses also creates a significant 
        new export advantage for manufacturers of fluorinated compounds 
        and related products and equipment in the United States;
            (4) the new markets for fluorinated products and equipment 
        created by this Act are expected to increase the share of the 
        United States of the global fluorocarbon product and equipment 
        market by 25 percent (to 9 percent from 7.2 percent); and
            (5) this Act incentivizes the investment of approximately 
        $5,000,000,000 in the United States through fiscal year 2025 to 
        exploit the new markets for fluorinated products and equipment 
        created by this Act.
    (b) Sense of Congress.--It is the sense of Congress that the 
Administrator should provide for a safe hydrofluorocarbon transition by 
ensuring that heating, ventilation, air conditioning, and refrigeration 
practitioners are positioned to comply with safe servicing, repair, 
disposal, or installation procedures.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Allowance.--The term ``allowance'' means a limited 
        authorization for the production or consumption of a regulated 
        substance established under section 6.
            (3) Consumption.--The term ``consumption'', with respect to 
        a regulated substance, means a quantity equal to the difference 
        between--
                    (A) a quantity equal to the sum of--
                            (i) the quantity of that regulated 
                        substance produced in the United States; and
                            (ii) the quantity of the regulated 
                        substance imported into the United States; and
                    (B) the quantity of the regulated substance 
                exported from the United States.
            (4) Consumption baseline.--The term ``consumption 
        baseline'' means the baseline established for the consumption 
        of regulated substances under section 6(a)(3).
            (5) Exchange value.--The term ``exchange value'' means the 
        value assigned to a regulated substance in accordance with 
        sections 4 and 6, as applicable.
            (6) Import.--The term ``import'' means to land on, bring 
        into, or introduce into, or attempt to land on, bring into, or 
        introduce into, any place subject to the jurisdiction of the 
        United States, regardless of whether that landing, bringing, or 
        introduction constitutes an importation within the meaning of 
        the customs laws of the United States.
            (7) Produce.--
                    (A) In general.--The term ``produce'' means the 
                manufacture of a regulated substance from a raw 
                material or feedstock chemical (but not including the 
                destruction of a regulated substance by a technology 
                approved by the Administrator).
                    (B) Exclusions.--The term ``produce'' does not 
                include--
                            (i) the manufacture of a regulated 
                        substance that is used and entirely consumed 
                        (except for trace quantities) in the 
                        manufacture of another chemical; or
                            (ii) the reuse or recycling of a regulated 
                        substance.
            (8) Production baseline.--The term ``production baseline'' 
        means the baseline established for the production of regulated 
        substances under section 6(a)(2).
            (9) Reclaim.--The term ``reclaim'' means--
                    (A) the reprocessing of a recovered regulated 
                substance to at least the purity described in standard 
                700-2016 of the Air-Conditioning, Heating, and 
                Refrigeration Institute (or an appropriate successor 
                standard adopted by the Administrator); and
                    (B) the verification of the purity of that 
                regulated substance using, at a minimum, the analytical 
                methodology described in the standard referred to in 
                subparagraph (A).
            (10) Recover.--The term ``recover'' means the process by 
        which a regulated substance is--
                    (A) removed, in any condition, from equipment; and
                    (B) stored in an external container, with or 
                without testing or processing the regulated substance.
            (11) Regulated substance.--The term ``regulated substance'' 
        means--
                    (A) a substance listed in the table contained in 
                section 4(a); and
                    (B) a substance included as a regulated substance 
                by the Administrator under section 4(c).

SEC. 4. LISTING OF REGULATED SUBSTANCES.

    (a) List of Regulated Substances.--Each of the following 
substances, and any isomers of such a substance, shall be a regulated 
substance:


----------------------------------------------------------------------------------------------------------------
                                                                                                       Exchange
                      Chemical Name                                       Common Name                   Value
----------------------------------------------------------------------------------------------------------------
CHF2CHF2                                                   HFC-134                                          1100
----------------------------------------------------------------------------------------------------------------
CH2FCF3                                                     HFC-134a                                        1430
----------------------------------------------------------------------------------------------------------------
CH2FCHF2                                                   HFC-143                                           353
----------------------------------------------------------------------------------------------------------------
CHF2CH2CF3                                                 HFC-245fa                                        1030
----------------------------------------------------------------------------------------------------------------
CF3CH2CF2CH3                                               HFC-365mfc                                        794
----------------------------------------------------------------------------------------------------------------
CF3CHFCF3                                                  HFC-227ea                                        3220
----------------------------------------------------------------------------------------------------------------
CH2FCF2CF3                                                 HFC-236cb                                        1340
----------------------------------------------------------------------------------------------------------------
CHF2CHFCF3                                                 HFC-236ea                                        1370
----------------------------------------------------------------------------------------------------------------
CF3CH2CF3                                                  HFC-236fa                                        9810
----------------------------------------------------------------------------------------------------------------
CH2FCF2CHF2                                                HFC-245ca                                         693
----------------------------------------------------------------------------------------------------------------
CF3CHFCHFCF2CF3                                            HFC-43-10mee                                     1640
----------------------------------------------------------------------------------------------------------------
CH2F2                                                      HFC-32                                            675
----------------------------------------------------------------------------------------------------------------
CHF2CF3                                                    HFC-125                                          3500
----------------------------------------------------------------------------------------------------------------
CH3CF3                                                     HFC-143a                                         4470
----------------------------------------------------------------------------------------------------------------
CH3F                                                       HFC-41                                             92
----------------------------------------------------------------------------------------------------------------
CH2FCH2F                                                   HFC-152                                            53
----------------------------------------------------------------------------------------------------------------
CH3CHF2                                                    HFC-152a                                          124
----------------------------------------------------------------------------------------------------------------
CHF3                                                       HFC-23                                         14800.
----------------------------------------------------------------------------------------------------------------

    (b) Review.--The Administrator may--
            (1) review the exchange values listed in the table 
        contained in subsection (a) on a periodic basis; and
            (2) subject to notice and opportunity for public comment, 
        adjust the exchange values solely on the basis of--
                    (A) publicly available, peer-reviewed scientific 
                data; and
                    (B) other information consistent with widely used 
                or commonly accepted existing exchange values.
    (c) Other Regulated Substances.--
            (1) In general.--Subject to notice and opportunity for 
        public comment, the Administrator may designate a substance not 
        included in the table contained in subsection (a) as a 
        regulated substance if--
                    (A) the substance--
                            (i) is a chemical substance that is a 
                        saturated hydrofluorocarbon; and
                            (ii) has an exchange value, as determined 
                        by the Administrator in accordance with the 
                        basis described in subsection (b)(2), of 
                        greater than 53; and
                    (B) the designation of the substance as a regulated 
                substance would be consistent with the purposes of this 
                Act.
            (2) Savings provision.--Nothing in this subsection 
        authorizes the Administrator to designate as a regulated 
        substance a blend of substances that includes a saturated 
        hydrofluorocarbon for purposes of phasing down production or 
        consumption of regulated substances under section 6, even if 
        the saturated hydrofluorocarbon is, or may be, designated as a 
        regulated substance.

SEC. 5. MONITORING AND REPORTING REQUIREMENTS.

    (a) Production, Import, and Export Level Reports.--
            (1) In general.--On a periodic basis, to be determined by 
        the Administrator, but not less frequently than annually, each 
        person who, within the applicable reporting period, produces, 
        imports, exports, destroys, transforms, uses as a process 
        agent, or reclaims a regulated substance shall submit to the 
        Administrator a report that describes, as applicable, the 
        quantity of the regulated substance that the person--
                    (A) produced, imported, and exported;
                    (B) reclaimed;
                    (C) destroyed by a technology approved by the 
                Administrator;
                    (D) used and entirely consumed (except for trace 
                quantities) in the manufacture of another chemical; or
                    (E) used as a process agent.
            (2) Requirements.--
                    (A) Signed and attested.--The report under 
                paragraph (1) shall be signed and attested by a 
                responsible officer (within the meaning of the Clean 
                Air Act (42 U.S.C. 7401 et seq.)).
                    (B) No further reports required.--A report under 
                paragraph (1) shall not be required from a person if 
                the person--
                            (i) permanently ceases production, 
                        importation, exportation, destruction, 
                        transformation, use as a process agent, or 
                        reclamation of all regulated substances; and
                            (ii) notifies the Administrator in writing 
                        that the requirement under clause (i) has been 
                        met.
                    (C) Baseline period.--Each report under paragraph 
                (1) shall include, as applicable, the information 
                described in that paragraph for the baseline period of 
                calendar years 2011 through 2013.
    (b) Coordination.--The Administrator may allow any person subject 
to the requirements of subsection (a)(1) to combine and include the 
information required to be reported under that subsection with any 
other related information that the person is required to report to the 
Administrator.

SEC. 6. PHASE-DOWN OF PRODUCTION AND CONSUMPTION OF REGULATED 
              SUBSTANCES.

    (a) Baselines.--
            (1) In general.--Subject to paragraph (4), the 
        Administrator shall establish for the phase-down of regulated 
        substances--
                    (A) a production baseline for the production of all 
                regulated substances in the United States, as described 
                in paragraph (2); and
                    (B) a consumption baseline for the consumption of 
                all regulated substances in the United States, as 
                described in paragraph (3).
            (2) Production baseline described.--The production baseline 
        referred to in paragraph (1)(A) is the quantity equal to the 
        sum of--
                    (A) the average annual quantity of all regulated 
                substances produced in the United States during the 
                period--
                            (i) beginning on January 1, 2011; and
                            (ii) ending on December 31, 2013; and
                    (B) the quantity equal to the sum of--
                            (i) 15 percent of the production level of 
                        hydrochlorofluorocarbons in calendar year 1989; 
                        and
                            (ii) 0.42 percent of the production level 
                        of chlorofluorocarbons in calendar year 1989.
            (3) Consumption baseline described.--The consumption 
        baseline referred to in paragraph (1)(B) is the quantity equal 
        to the sum of--
                    (A) the average annual quantity of all regulated 
                substances consumed in the United States during the 
                period--
                            (i) beginning on January 1, 2011; and
                            (ii) ending on December 31, 2013; and
                    (B) the quantity equal to the sum of--
                            (i) 15 percent of the consumption level of 
                        hydrochlorofluorocarbons in calendar year 1989; 
                        and
                            (ii) 0.42 percent of the consumption level 
                        of chlorofluorocarbons in calendar year 1989.
            (4) Exchange values.--
                    (A) In general.--For purposes of paragraphs (2) and 
                (3), the Administrator shall use the following exchange 
                values for hydrochlorofluorocarbons and chlorofluoro-
                carbons:


----------------------------------------------------------------------------------------------------------------
                                                     Table 2
-----------------------------------------------------------------------------------------------------------------
                                                                                                       Exchange
                      Chemical Name                                       Common Name                   Value
----------------------------------------------------------------------------------------------------------------
CHFC12                                                     HCFC-21                                           151
----------------------------------------------------------------------------------------------------------------
CHF2C1                                                      HCFC-22                                         1810
----------------------------------------------------------------------------------------------------------------
C2HF3C12                                                   HCFC-123                                           77
----------------------------------------------------------------------------------------------------------------
C2HF4C1                                                    HCFC-124                                          609
----------------------------------------------------------------------------------------------------------------
CH3CFC12                                                   HCFC-141b                                         725
----------------------------------------------------------------------------------------------------------------
CH3CF2C1                                                   HCFC-142b                                        2310
----------------------------------------------------------------------------------------------------------------
CF3CF2CHC12                                                HCFC-225ca                                        122
----------------------------------------------------------------------------------------------------------------
CF2C1CF2CHC1F                                              HCFC-225cb                                        595
----------------------------------------------------------------------------------------------------------------



----------------------------------------------------------------------------------------------------------------
                                                     Table 3
-----------------------------------------------------------------------------------------------------------------
                                                                                                       Exchange
                      Chemical Name                                       Common Name                   Value
----------------------------------------------------------------------------------------------------------------
CFC13                                                      CFC-11                                           4750
----------------------------------------------------------------------------------------------------------------
CF2C12                                                     CFC-12                                          10900
----------------------------------------------------------------------------------------------------------------
C2F3C13                                                    CFC-113                                          6130
----------------------------------------------------------------------------------------------------------------
C2F4C12                                                    CFC-114                                         10000
----------------------------------------------------------------------------------------------------------------
C2F5C1                                                     CFC-115                                         7370.
----------------------------------------------------------------------------------------------------------------

                    (B) Review.--The Administrator may--
                            (i) review the exchange values listed in 
                        the tables contained in subsection (a) on a 
                        periodic basis; and
                            (ii) subject to notice and opportunity for 
                        public comment, adjust the exchange values 
                        solely on the basis of--
                                    (I) publicly available, peer-
                                reviewed scientific data; and
                                    (II) other information consistent 
                                with widely used or commonly accepted 
                                existing exchange values.
    (b) Production and Consumption Phase-Down.--
            (1) In general.--During the period beginning on January 1 
        of each year listed in the table contained in paragraph (3) and 
        ending on December 31 of the year before the next year listed 
        on that table, except as otherwise permitted under this Act, no 
        person shall--
                    (A) produce a quantity of a regulated substance 
                without a corresponding quantity of production 
                allowances, except as provided in subsection (e); or
                    (B) consume a quantity of a regulated substance 
                without a corresponding quantity of consumption 
                allowances.
            (2) Compliance.--For each year listed on the table 
        contained in paragraph (3), the Administrator shall ensure that 
        the annual quantity of all regulated substances produced or 
        consumed in the United States does not exceed the product 
        obtained by multiplying--
                    (A) the production baseline or consumption 
                baseline, as applicable; and
                    (B) the applicable percentage listed on the table 
                contained in paragraph (3).
            (3) Relation to baseline.--On January 1 of each year listed 
        in the following table, the Administrator shall apply the 
        applicable percentage, as described in paragraph (1):


----------------------------------------------------------------------------------------------------------------
                                                     Percentage of Production        Percentage of Consumption
                      Date                                   Baseline                        Baseline
----------------------------------------------------------------------------------------------------------------
2020-2023                                         90 percent                      90 percent
----------------------------------------------------------------------------------------------------------------
2024-2028                                         60 percent                      60 percent
----------------------------------------------------------------------------------------------------------------
2029-2033                                         30 percent                      30 percent
----------------------------------------------------------------------------------------------------------------
2034-2035                                         20 percent                      20 percent
----------------------------------------------------------------------------------------------------------------
2036 and thereafter                               15 percent                      15 percent.
----------------------------------------------------------------------------------------------------------------

            (4) Allowances.--
                    (A) Quantity.--Not later than October 1 of each 
                calendar year, the Administrator shall use the quantity 
                calculated under paragraph (2) to determine the 
                quantity of allowances for the production and 
                consumption of regulated substances that may be used 
                for the following calendar year.
                    (B) Nature of allowances.--
                            (i) In general.--An allowance allocated 
                        under this Act--
                                    (I) does not constitute a property 
                                right; and
                                    (II) is a limited authorization for 
                                the production or consumption of a 
                                regulated substance under this Act.
                            (ii) Savings provision.--Nothing in this 
                        Act or in any other provision of law limits the 
                        authority of the United States to terminate or 
                        limit an authorization described in clause 
                        (i)(II).
    (c) Regulations Regarding Production and Consumption of Regulated 
Substances.--Not later than 270 days after the date of enactment of 
this Act, the Administrator shall issue a final rule--
            (1) phasing down the production of regulated substances in 
        the United States through an allowance allocation and trading 
        program in accordance with this Act; and
            (2) phasing down the consumption of regulated substances in 
        the United States through an allowance allocation and trading 
        program in accordance with the schedule under subsection (b)(3) 
        (subject to the same exceptions and other requirements as are 
        applicable to the phase-down of production of regulated 
        substances under this Act).
    (d) Exceptions.--
            (1) Feedstocks and process agents.--Except for the 
        reporting requirements described in section 5(a), this Act does 
        not apply to--
                    (A) a regulated substance that is used and entirely 
                consumed (except for trace quantities) in the 
                manufacture of another chemical; or
                    (B) a regulated substance that is used and not 
                entirely consumed in the manufacture of another 
                chemical, if the remaining amounts of the regulated 
                substance are subsequently destroyed.
            (2) Essential uses.--
                    (A) In general.--Not earlier than January 1, 2034, 
                the Administrator may, after notice and opportunity for 
                public comment, authorize the production or consumption 
                of a regulated substance for a period of not more than 
                5 years in a quantity in excess of the quantities 
                authorized under subsection (b)(1) for the exclusive 
                use of the regulated substance in an application with 
                respect to which the Administrator determines that--
                            (i) no substitute will be available during 
                        the applicable period for that application, 
                        considering technological achievability, 
                        commercial demands, safety, and other relevant 
                        factors; and
                            (ii) the total supply of the regulated 
                        substance authorized under subsection (b)(1), 
                        including any quantities of a regulated 
                        substance available from reclaiming, prior 
                        production, or prior import, is insufficient to 
                        accommodate the application.
                    (B) Limitation.--No person receiving an 
                authorization under subparagraph (A) may, on an annual 
                basis, produce or consume a quantity of a regulated 
                substance that is greater than 10 percent of the 
                quantity that the person produced or consumed to 
                contribute to the production baseline or the 
                consumption baseline, as applicable.
                    (C) Review.--
                            (i) In general.--For each application for 
                        which the Administrator has authorized the 
                        production or consumption, as applicable, of a 
                        regulated substance under subparagraph (A), the 
                        Administrator shall review the availability of 
                        substitutes, including any quantities of the 
                        regulated substance available from reclaiming 
                        or prior production, not less frequently than 
                        once every 5 years, considering technological 
                        achievability, commercial demands, safety, and 
                        other relevant factors.
                            (ii) Extension.--If the Administrator 
                        determines, subject to notice and opportunity 
                        for public comment, that no substitute will be 
                        available for an application for which the 
                        Administrator granted a waiver under 
                        subparagraph (A) during a subsequent period, 
                        the Administrator may authorize the production 
                        or consumption, as applicable, of any regulated 
                        substance used in the application for not more 
                        than an additional 5 years in a quantity in 
                        excess of the quantity authorized under 
                        subsection (b)(1) for exclusive use in the 
                        application.
    (e) Domestic Manufacturing.--Notwithstanding subsection (b)(1)(A), 
the Administrator may authorize a person to produce a regulated 
substance in excess of the number of production allowances held by that 
person, subject to the conditions that--
            (1) the authorization is--
                    (A) for a renewable period of not more than 5 
                years; and
                    (B) subject to notice and opportunity for public 
                comment; and
            (2) the production--
                    (A) is at a facility located in the United States;
                    (B) is solely for export to, and use in, a foreign 
                country that is not subject to the prohibition in 
                section 11(a); and
                    (C) would not violate subsection (b)(2).

SEC. 7. ACCELERATED SCHEDULE.

    (a) In General.--Subject to subsection (d), the Administrator may, 
in response to a petition submitted to the Administrator in accordance 
with subsection (c) and after notice and opportunity for public 
comment, promulgate regulations that establish a schedule for phasing 
down the production or consumption of regulated substances that is more 
stringent than the production and consumption levels of regulated 
substances required under section 6(b)(3) if, based on the availability 
of substitutes for regulated substances, the Administrator determines 
that a more-stringent schedule is practicable, taking into account 
technological achievability, commercial demands, safety, and other 
relevant factors, including the quantities of regulated substances 
available from reclaiming, prior production, or prior import.
    (b) Requirement.--In making a determination on whether to implement 
a more-stringent phase-down schedule under subsection (a), the 
Administrator shall--
            (1) consider--
                    (A) the remaining phase-down period for regulated 
                substances under section 6, if applicable; and
                    (B) relevant, publicly available, peer-reviewed 
                scientific data;
            (2) apply uniformly any regulations promulgated pursuant to 
        subsection (a) to the allocation of production and consumption 
        allowances for regulated substances, in accordance with section 
        6(c); and
            (3) adjust the production and consumption allowances 
        accordingly.
    (c) Petition.--
            (1) In general.--A person may petition the Administrator to 
        promulgate regulations for an accelerated schedule for the 
        phase-down of production or consumption of regulated substances 
        under subsection (a).
            (2) Requirement.--A petition submitted under paragraph (1) 
        shall--
                    (A) be made at such time, in such manner, and 
                containing such information as the Administrator shall 
                require; and
                    (B) include a showing by the petitioner that there 
                are data to support the petition.
            (3) Timelines.--
                    (A) Petitions.--The Administrator shall grant or 
                deny the petition under paragraph (1) by not later than 
                270 days after the date on which the Administrator 
                receives the petition.
                    (B) Regulations.--If the Administrator grants a 
                petition under paragraph (1), the final regulations 
                with respect to the petition shall be promulgated by 
                not later than 1 year after the date on which the 
                Administrator grants the petition.
            (4) Denial.--If the Administrator denies a petition under 
        paragraph (1), the Administrator shall publish a description of 
        the reason for the denial.
            (5) Insufficient information.--If the Administrator 
        determines that the data included under paragraph (2)(B) in a 
        petition are not sufficient to make a determination under this 
        subsection, the Administrator shall use any authority available 
        to the Administrator to acquire the necessary data.
    (d) Applicability.--The Administrator may not promulgate under 
subsection (a) a regulation for the production or consumption of 
regulated substances that is more stringent than the production or 
consumption levels required under section 6(b)(3) that takes effect 
before January 1, 2024.

SEC. 8. EXCHANGE AUTHORITY.

    (a) Transfers.--Not later than 270 days after the date of enactment 
of this Act, the Administrator shall promulgate a final regulation that 
governs the transfer of allowances for the production of regulated 
substances under section 6(c)(1) that uses--
            (1) the applicable exchange values described in the table 
        contained in section 4(a); or
            (2) the exchange value described in the rule designating 
        the substance as a regulated substance under section 4(c).
    (b) Requirements.--The final rule promulgated pursuant to 
subsection (a)(1) shall--
            (1) ensure that the transfers under this section will 
        result in greater total reductions in the production of 
        regulated substances in each year than would occur during the 
        year in the absence of the transfers;
            (2) permit 2 or more persons to transfer production 
        allowances if the transferor of the allowances will be subject, 
        under the final rule, to an enforceable and quantifiable 
        reduction in annual production that--
                    (A) exceeds the reduction otherwise applicable to 
                the transferor under this Act;
                    (B) exceeds the quantity of production represented 
                by the production allowances transferred to the 
                transferee; and
                    (C) would not have occurred in the absence of the 
                transaction; and
            (3) provide for the trading of consumption allowances in 
        the same manner as is applicable under this section to the 
        trading of production allowances.

SEC. 9. MANAGEMENT OF REGULATED SUBSTANCES.

    (a) In General.--For purposes of maximizing reclaiming and 
minimizing the release of a regulated substance from equipment and 
ensuring the safety of technicians and consumers, the Administrator 
shall promulgate regulations to control, where appropriate, any 
practice, process, or activity regarding the servicing, repair, 
disposal, or installation of equipment (including requiring, where 
appropriate, that any such servicing, repair, disposal, or installation 
be performed by a trained technician meeting minimum standards, as 
determined by the Administrator) that involves--
            (1) a regulated substance;
            (2) a substitute for a regulated substance;
            (3) the reclaiming of a regulated substance used as a 
        refrigerant; or
            (4) the reclaiming of a substitute for a regulated 
        substance used as a refrigerant.
    (b) Reclaiming.--
            (1) In general.--In carrying out this Act, the 
        Administrator shall consider the use of authority available to 
        the Administrator under this Act to increase opportunities for 
        the reclaiming of regulated substances used as refrigerants.
            (2) Recovery.--A regulated substance used as a refrigerant 
        that is recovered shall be reclaimed before the regulated 
        substance is sold or transferred to a new owner, except where 
        the recovered regulated substance is sold or transferred to a 
        new owner solely for the purposes of being reclaimed or 
        destroyed.
    (c) Coordination.--In promulgating regulations to carry out this 
section, the Administrator may coordinate those regulations with any 
other regulations promulgated by the Administrator that involve--
            (1) the same or a similar practice, process, or activity 
        regarding the servicing, repair, disposal, or installation of 
        equipment; or
            (2) reclaiming.

SEC. 10. TECHNOLOGY TRANSITIONS.

    (a) Authority.--Subject to the provisions of this section, the 
Administrator may by rule restrict, fully, partially, or on a graduated 
schedule, the use of a regulated substance in the sector or subsector 
in which the regulated substance is used.
    (b) Negotiated Rulemaking.--
            (1) Consideration required.--Before proposing a rule for 
        the use of a regulated substance for a sector or subsector 
        under subsection (a), the Administrator shall consider 
        negotiating with stakeholders in the sector or subsector 
        subject to the potential rule in accordance with the negotiated 
        rulemaking procedure provided for under subchapter III of 
        chapter 5 of title 5, United States Code (commonly known as the 
        ``Negotiated Rulemaking Act of 1990'').
            (2) Negotiated rulemakings.--If the Administrator 
        negotiates a rulemaking with stakeholders using the procedure 
        described in paragraph (1), the Administrator shall, to the 
        extent practicable, give priority to completing that rulemaking 
        over completing rulemakings that were not negotiated using that 
        procedure.
            (3) No negotiated rulemaking.--If the Administrator does 
        not negotiate a rulemaking with stakeholders using the 
        procedure described in paragraph (1), the Administrator shall, 
        before commencement of the rulemaking process for a rule under 
        subsection (a), publish an explanation of the decision of the 
        Administrator to not use that procedure.
    (c) Transition.--
            (1) Proposals.--Not later than 18 months after the date of 
        enactment of this Act, the Administrator shall publish in the 
        Federal Register a proposal of 1 or more dates after which the 
        use of a regulated substance in a sector or subsector shall be 
        restricted.
            (2) Final rules.--Not later than 18 months after the date 
        on which the Administrator publishes a proposed rule under 
        paragraph (1) in the Federal Register, the Administrator shall 
        issue a final rule for that proposed rule.
    (d) Petitions.--
            (1) In general.--A person may petition the Administrator to 
        issue a rule under subsection (a) for the restriction on use of 
        a regulated substance in a sector or subsector, which may 
        include a request that the Administrator negotiate with 
        stakeholders in accordance with subsection (b)(1).
            (2) Response.--The Administrator shall grant or deny a 
        petition under paragraph (1) not later than 180 days after the 
        date of receipt of the petition.
            (3) Requirements.--
                    (A) Explanation.--If the Administrator denies a 
                petition under paragraph (2), the Administrator shall 
                publish in the Federal Register an explanation of the 
                denial.
                    (B) Final rule.--If the Administrator grants a 
                petition under paragraph (2), the Administrator shall 
                issue a final rule not later than 2 years after the 
                date on which the Administrator grants the petition.
                    (C) Publication of petitions.--Not later than 30 
                days after the date on which the Administrator receives 
                a petition under paragraph (1), the Administrator shall 
                publish in the Federal Register that petition in full.
    (e) Criteria.--In issuing a rule under subsection (a), the 
Administrator shall consider the need--
            (1) to promote and support domestic economic development;
            (2) to maximize protections for human health and the 
        environment;
            (3) to minimize costs for the production, use, and 
        reclaiming of regulated substances;
            (4) to maximize flexibility for the recovery, reclaiming, 
        and reuse of regulated substances;
            (5) to ensure consumer safety;
            (6) for the availability of substitutes, taking into 
        account technological achievability, commercial demands, 
        safety, and other relevant factors, including lead times for 
        equipment conversion; and
            (7) to minimize any additional costs to consumers.
    (f) Evaluation.--In carrying out this section, the Administrator 
shall evaluate substitutes for regulated substances in a sector or 
subsector, taking into account technological achievability, commercial 
demands, safety, and other relevant factors.

SEC. 11. INTERNATIONAL COOPERATION.

    (a) In General.--Subject to subsection (b), no person subject to 
the requirements of this Act shall trade or transfer a production 
allowance or, after January 1, 2033, export a regulated substance to a 
person in a foreign country that, as determined by the Administrator, 
has not enacted or otherwise established within a reasonable timeframe 
after the date of enactment of this Act the same or similar 
requirements or otherwise undertaken commitments regarding the 
production and consumption of regulated substances as are contained in 
this Act.
    (b) Transfers.--Pursuant to subsection (a), a person in the United 
States may engage in a trade or transfer of a production allowance--
            (1) to a person in a foreign country if, at the time of the 
        transfer, the Administrator revises the number of allowances 
        for production under section 6(b), as applicable, for the 
        United States such that the aggregate national production of 
        the regulated substance to be traded under the revised 
        production limits is equal to the least of--
                    (A) the maximum production level permitted for the 
                applicable regulated substance in the year of the 
                transfer under this Act, less the production allowances 
                transferred;
                    (B) the maximum production level permitted for the 
                applicable regulated substances in the transfer year 
                under applicable law, less the production allowances 
                transferred; and
                    (C) the average of the actual national production 
                level of the applicable regulated substances for the 3-
                year period ending on the date of the transfer, less 
                the production allowances transferred; or
            (2) from a person in a foreign country if, at the time of 
        the trade or transfer, the Administrator finds that the foreign 
        country has revised the domestic production limits of the 
        regulated substance in the same manner as provided with respect 
        to transfers by a person in United States under this section.
    (c) Effect of Transfers on Production Limits.--The Administrator 
may--
            (1) reduce the production limits established under section 
        6(b)(2) as required as a prerequisite to a transfer described 
        in subsection (b)(1); or
            (2) increase the production limits established under 
        section 6(b)(2) to reflect production allowances acquired under 
        a trade or transfer described in subsection (b)(2).
    (d) Regulations.--The Administrator shall--
            (1) not later than 1 year after the date of enactment of 
        this Act, promulgate a final rule to carry out this section; 
        and
            (2) not less frequently than annually, review and, if 
        necessary, revise the final rule promulgated pursuant to 
        paragraph (1).

SEC. 12. RELATIONSHIP TO OTHER LAW.

    (a) Implementation.--
            (1) Rulemakings.--The Administrator may promulgate such 
        regulations as are necessary to carry out the functions of the 
        Administrator under this Act.
            (2) Delegation.--The Administrator may delegate to any 
        officer or employee of the Environmental Protection Agency such 
        of the powers and duties of the Administrator under this Act as 
        the Administrator determines to be appropriate.
            (3) Clean air act.--Sections 113, 114, 304, and 307 of the 
        Clean Air Act (42 U.S.C. 7413, 7414, 7604, 7607) shall apply to 
        this Act and any regulations promulgated by the Administrator 
        pursuant to this Act as though this Act were expressly included 
        in each of those sections, as applicable, and the requirements 
        of this Act were part of that Act (42 U.S.C. 7401 et seq.).
    (b) Authority.--On issuance of a final rule under section 6(c) for 
the production and consumption of regulated substances, notwithstanding 
any other provision of law, the Administrator shall have no authority 
to regulate the production or consumption of regulated substances under 
section 614(b) of the Clean Air Act (42 U.S.C. 7671m(b)).
                                 <all>