42 U.S.C. § 7675: American innovation and manufacturing

This section may be cited as the “American Innovation and Manufacturing Act of 2020”. The term “Administrator” means the Administrator of the Environmental Protection Agency. The term “allowance” means a limited authorization for the production or consumption of a regulated substance established under subsection (e). the quantity of that regulated substance produced in the United States; and the quantity of the regulated substance imported into the United States; and the quantity of the regulated substance exported from the United States. The term “consumption baseline” means the baseline established for the consumption of regulated substances under subsection (e)(1)(C). The term “exchange value” means the value assigned to a regulated substance in accordance with subsections (c) and (e), as applicable. 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. 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). the manufacture of a regulated substance that is used and entirely consumed (except for trace quantities) in the manufacture of another chemical; or the reclamation, reuse, or recycling of a regulated substance. The term “production baseline” means the baseline established for the production of regulated substances under subsection (e)(1)(B). 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 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). removed, in any condition, from equipment; and stored in an external container, with or without testing or processing the regulated substance. a substance listed in the table contained in subsection (c)(1); and a substance included as a regulated substance by the Administrator under subsection (c)(3). Each of the following substances, and any isomers of such a substance, shall be a regulated substance: Chemical Name Common Name Exchange Value CHF 2 CHF 2 HFC–134 1100 CH 2 FCF 3 HFC–134a 1430 CH 2 FCHF 2 HFC–143 353 CHF 2 CH 2 CF 3 HFC–245fa 1030 CF 3 CH 2 CF 2 CH 3 HFC–365mfc 794 CF 3 CHFCF 3 HFC–227ea 3220 CH 2 FCF 2 CF 3 HFC–236cb 1340 CHF 2 CHFCF 3 HFC–236ea 1370 CF 3 CH 2 CF 3 HFC–236fa 9810 CH 2 FCF 2 CHF 2 HFC–245ca 693 CF 3 CHFCHFCF 2 CF 3 HFC–43–10mee 1640 CH 2 F 2 HFC–32 675 CHF 2 CF 3 HFC–125 3500 CH 3 CF 3 HFC–143a 4470 CH 3 F HFC–41 92 CH 2 FCH 2 F HFC–152 53 CH 3 CHF 2 HFC–152a 124 CHF 3 HFC–23 14800. review the exchange values listed in the table contained in paragraph (1) on a periodic basis; and the best available science; and other information consistent with widely used or commonly accepted existing exchange values. is a chemical substance that is a saturated hydrofluorocarbon; and has an exchange value, as determined by the Administrator in accordance with the basis described in paragraph (2)(B), of greater than 53; and the designation of the substance as a regulated substance would be consistent with the purposes of this section. Nothing in this paragraph 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 subsection (e), even if the saturated hydrofluorocarbon is, or may be, designated as a regulated substance. Clause (i) does not affect the authority of the Administrator to regulate under this Act 1 a regulated substance within a blend of substances. 1 So in original. Probably means “this section”. produced, imported, and exported; reclaimed; destroyed by a technology approved by the Administrator; used and entirely consumed (except for trace quantities) in the manufacture of another chemical; or used as a process agent. The report under subparagraph (A) shall be signed and attested by a responsible officer (within the meaning of the Clean Air Act ( 42 U.S.C. 7401 et seq.)). permanently ceases production, importation, exportation, destruction, transformation, use as a process agent, or reclamation of all regulated substances; and notifies the Administrator in writing that the requirement under subclause (I) has been met. Each report under subparagraph (A) shall include, as applicable, the information described in that subparagraph for the baseline period of calendar years 2011 through 2013. The Administrator may allow any person subject to the requirements of paragraph (1)(A) to combine and include the information required to be reported under that paragraph with any other related information that the person is required to report to the Administrator. a production baseline for the production of all regulated substances in the United States, as described in subparagraph (B); and a consumption baseline for the consumption of all regulated substances in the United States, as described in subparagraph (C). beginning on January 1, 2011 ; and ending on December 31, 2013 ; and 15 percent of the production level of hydrochlorofluorocarbons in calendar year 1989; and 0.42 percent of the production level of chlorofluorocarbons in calendar year 1989. beginning on January 1, 2011 ; and ending on December 31, 2013 ; and 15 percent of the consumption level of hydrochlorofluorocarbons in calendar year 1989; and 0.42 percent of the consumption level of chlorofluorocarbons in calendar year 1989. For purposes of establishing the baselines pursuant to subparagraphs (B) and (C), the Administrator shall use the exchange values listed in the table contained in subsection (c)(1) for regulated substances and the following exchange values for hydrochlorofluorocarbons and chlorofluorocarbons: Table 2 Chemical Name Common Name Exchange Value CHFC1 2 HCFC–21 151 CHF 2 C1 HCFC–22 1810 C 2 HF 3 C1 2 HCFC–123 77 C 2 HF 4 C1 HCFC–124 609 CH 3 CFC1 2 HCFC–141b 725 CH 3 CF 2 C1 HCFC–142b 2310 CF 3 CF 2 CHC1 2 HCFC–225ca 122 CF 2 C1CF 2 CHC1F HCFC–225cb 595 Table 3 Chemical Name Common Name Exchange Value CFC1 3 CFC–11 4750 CF 2 C1 2 CFC–12 10900 C 2 F 3 C1 3 CFC–113 6130 C 2 F 4 C1 2 CFC–114 10000 C 2 F 5 C1 CFC–115 7370 review the exchange values listed in the tables contained in clause (i) on a periodic basis; and the best available science; and other information consistent with widely used or commonly accepted existing exchange values. produce a quantity of a regulated substance without a corresponding quantity of production allowances, except as provided in paragraph (5); consume a quantity of a regulated substance without a corresponding quantity of consumption allowances; or hold, use, or transfer any production allowance or consumption allowance allocated under this section except in accordance with regulations promulgated by the Administrator pursuant to subsection (g). the production baseline or consumption baseline, as applicable; and the applicable percentage listed on the table contained in subparagraph (C). On January 1 of each year listed in the following table, the Administrator shall apply the applicable percentage, as described in subparagraph (A): Date Percentage of Production Baseline Percentage of Consumption 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 Not later than October 1 of each calendar year, the Administrator shall use the quantity calculated under subparagraph (B) to determine the quantity of allowances for the production and consumption of regulated substances that may be used for the following calendar year. does not constitute a property right; and is a limited authorization for the production or consumption of a regulated substance under this section. Nothing in this section or in any other provision of law limits the authority of the United States to terminate or limit an authorization described in subclause (I)(bb). phasing down the production of regulated substances in the United States through an allowance allocation and trading program in accordance with this section; and phasing down the consumption of regulated substances in the United States through an allowance allocation and trading program in accordance with the schedule under paragraph (2)(C) (subject to the same exceptions and other requirements as are applicable to the phase-down of production of regulated substances under this section). a regulated substance that is used and entirely consumed (except for trace quantities) in the manufacture of another chemical; or 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. no safe or technically achievable substitute will be available during the applicable period for that application; and the supply of the regulated substance that manufacturers or users of the regulated substance for that application are capable of securing from chemical manufacturers, as authorized under paragraph (2)(A), including any quantities of a regulated substance available from production or import, is insufficient to accommodate the application. make the complete petition available to the public; and a determination of whether to designate the application as an essential use; and if the Administrator proposes to designate the application as an essential use, making the requisite allocation of allowances; and not later than 270 days after the date on which the Administrator receives the petition, take final action on the petition. A person receiving an allocation under clause (i) or (iv) or as a result of a petition granted under clause (ii) may not produce or consume a produced quantity of regulated substances that, considering the respective exchange values of the regulated substances, exceeds the number of allowances issued under paragraphs (2) and (3) that are held by that person. a propellant in metered-dose inhalers; defense sprays; structural composite preformed polyurethane foam for marine use and trailer use; the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector; mission-critical military end uses, such as armored vehicle engine and shipboard fire suppression systems and systems used in deployable and expeditionary applications; and onboard aerospace fire suppression. For each essential use application receiving an allocation of allowances under clause (i) or (iv), 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. If, pursuant to a review under subclause (I), the Administrator determines, subject to notice and opportunity for public comment, that the requirements described in subclauses (I) and (II) of clause (i) are met, the Administrator shall authorize the production or consumption, as applicable, of any regulated substance used in the application for renewable periods of not more than 5 years for exclusive use in the application. for a renewable period of not more than 5 years; and subject to notice and opportunity for public comment; and is at a facility located in the United States; is solely for export to, and use in, a foreign country that is not subject to the prohibition in subsection (j)(1); and would not violate paragraph (2)(B). Subject to paragraph (4), the Administrator may, only in response to a petition submitted to the Administrator in accordance with paragraph (3) 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 subsection (e)(2)(C). apply uniformly to the allocation of production and consumption allowances for regulated substances, in accordance with subsection (e)(3); applications that receive an allocation under clause (i) of subsection (e)(4)(B); and all applications that receive a mandatory allocation under items (aa) through (ff) of clause (iv)(I) of that subsection; and foster continued reclamation of and transition from regulated substances; and shall not set the level of production allowances or consumption allowances below the percentage of the consumption baseline that is actually consumed during the calendar year prior to the year during which the Administrator makes a final determination with respect to the applicable proposal described in paragraph (3)(C)(iii)(I). 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 paragraph (1). be made at such time, in such manner, and containing such information as the Administrator shall require; and include a showing by the petitioner that there are data to support the petition. make the complete petition available to the public; and when making the petition available to the public under item (aa), propose and seek public comment on the proposal of the Administrator to grant or deny the petition; and not later than 270 days after the date on which the Administrator receives the petition, take final action on the petition. the best available data; the availability of substitutes for uses of the regulated substance that is the subject of the petition, taking into account technological achievability, commercial demands, affordability for residential and small business consumers, safety, consumer costs, building codes, appliance efficiency standards, contractor training costs, and other relevant factors, including the quantities of regulated substances available from reclaiming, prior production, or prior import; overall economic costs and environmental impacts, as compared to historical trends; and the remaining phase-down period for regulated substances under the final rule issued under subsection (e)(3), if applicable. be promulgated by not later than 1 year after the date on which the Administrator makes the proposal to grant the petition under that clause; and meet the requirements of paragraph (2). When the Administrator makes a final determination to grant or deny a petition under subparagraph (A), the Administrator shall publish a description of the reasons for that grant or denial, including a description of the information considered under subclauses (I) through (IV) of subparagraph (C)(ii). If the Administrator determines that the data included under subparagraph (B)(ii) in a petition are not sufficient to make a determination under this paragraph, the Administrator shall use any authority available to the Administrator to acquire the necessary data. The Administrator may not promulgate under paragraph (1) a regulation for the production or consumption of regulated substances that is more stringent than the production or consumption levels required under subsection (e)(2)(C) that takes effect before January 1, 2025 . The Administrator shall review the availability of substitutes for regulated substances subject to an accelerated schedule established under paragraph (1) in each sector and subsector in which the regulated substance is used, 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, by January 1, 2026 (for the first review), by January 1, 2031 (for the second review), and at least once every 5 years thereafter. The Administrator shall make the results of a review conducted under subparagraph (A) publicly available. Nothing in this subsection authorizes the Administrator to promulgate regulations pursuant to this subsection that establish a schedule for phasing down the production or consumption of regulated substances that is less stringent than the production and consumption levels of regulated substances required under subsection (e)(2)(C). the applicable exchange values described in the table contained in subsection (c)(1); or the exchange value described in the rule designating the substance as a regulated substance under subsection (c)(3). ensure that the transfers under this subsection 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; exceeds the reduction otherwise applicable to the transferor under this section; exceeds the quantity of production represented by the production allowances transferred to the transferee; and would not have occurred in the absence of the transaction; and provide for the trading of consumption allowances in the same manner as is applicable under this subsection to the trading of production allowances. a regulated substance; a substitute for a regulated substance; the reclaiming of a regulated substance used as a refrigerant; or the reclaiming of a substitute for a regulated substance used as a refrigerant. In carrying out this section, the Administrator shall consider the use of authority available to the Administrator under this section to increase opportunities for the reclaiming of regulated substances used as refrigerants. 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. the same or a similar practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment; or reclaiming. No regulation promulgated pursuant to this subsection shall apply to a regulated substance or a substitute for a regulated substance that is contained in a foam. In this paragraph, the term “small business concern” has the same meaning as in section 632 of title 15 . Subject to the availability of appropriations, the Administrator shall establish a grant program to award grants to small business concerns for the purchase of new specialized equipment for the recycling, recovery, or reclamation of a substitute for a regulated substance, including the purchase of approved refrigerant recycling equipment (as defined in section 609(b) of the Clean Air Act ( 42 U.S.C. 7671h(b) )) for recycling, recovery, or reclamation in the service or repair of motor vehicle air conditioning systems. The non-Federal share of a project carried out with a grant under this paragraph shall be not less than 25 percent. There is authorized to be appropriated to carry out this paragraph $5,000,000 for each of fiscal years 2021 through 2023. Subject to the provisions of this subsection, 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. Before proposing a rule for the use of a regulated substance for a sector or subsector under paragraph (1), 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 (commonly known as the “Negotiated Rulemaking Act of 1990”). If the Administrator negotiates a rulemaking with stakeholders using the procedure described in subparagraph (A), the Administrator shall, to the extent practicable, give priority to completing that rulemaking over completing rulemakings under this subsection that were not negotiated using that procedure. If the Administrator does not negotiate a rulemaking with stakeholders using the procedure described in subparagraph (A), the Administrator shall, before commencement of the rulemaking process for a rule under paragraph (1), publish an explanation of the decision of the Administrator to not use that procedure. A person may petition the Administrator to promulgate a rule under paragraph (1) for the restriction on use of a regulated substance in a sector or subsector, which shall include a request that the Administrator negotiate with stakeholders in accordance with paragraph (2)(A). The Administrator shall grant or deny a petition under subparagraph (A) not later than 180 days after the date of receipt of the petition. If the Administrator denies a petition under subparagraph (B), the Administrator shall publish in the Federal Register an explanation of the denial. If the Administrator grants a petition under subparagraph (B), the Administrator shall promulgate a final rule not later than 2 years after the date on which the Administrator grants the petition. Not later than 30 days after the date on which the Administrator receives a petition under subparagraph (A), the Administrator shall make that petition available to the public in full. the best available data; the availability of substitutes for use of the regulated substance that is the subject of the rulemaking or petition, as applicable, in a sector or subsector, taking into account technological achievability, commercial demands, affordability for residential and small business consumers, safety, consumer costs, building codes, appliance efficiency standards, contractor training costs, and other relevant factors, including the quantities of regulated substances available from reclaiming, prior production, or prior import; overall economic costs and environmental impacts, as compared to historical trends; and the remaining phase-down period for regulated substances under the final rule issued under subsection (e)(3), if applicable. evaluate substitutes for regulated substances in a sector or subsector, taking into account technological achievability, commercial demands, safety, overall economic costs and environmental impacts, and other relevant factors; and make the evaluation under subparagraph (A) available to the public, including the factors associated with the safety of those substitutes. No rule under this subsection may take effect before the date that is 1 year after the date on which the Administrator promulgates the applicable rule under this subsection. includes the conversion of equipment to achieve system compatibility; and may include changes in lubricants, gaskets, filters, driers, valves, o-rings, or equipment components for that purpose. an essential use under clause (i) or (iv) of subsection (e)(4)(B), including any use for which the production or consumption of the regulated substance is extended under clause (v)(II) of that subsection; or except for a retrofit application, equipment in existence in a sector or subsector before December 27, 2020 . Subject to paragraph (2), no person subject to the requirements of this section 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 December 27, 2020 , the same or similar requirements or otherwise undertaken commitments regarding the production and consumption of regulated substances as are contained in this section. the maximum production level permitted for the applicable regulated substance in the year of the transfer under this section, less the production allowances transferred; the maximum production level permitted for the applicable regulated substances in the transfer year under applicable law, less the production allowances transferred; and 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 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 2 States under this subsection. 2 So in original. Probably should be preceded by “the”. reduce the production limits established under subsection (e)(2)(B) as required as a prerequisite to a transfer described in paragraph (2)(A); or increase the production limits established under subsection (e)(2)(B) to reflect production allowances acquired under a trade or transfer described in paragraph (2)(B). not later than 1 year after December 27, 2020 , promulgate a final rule to carry out this subsection; and not less frequently than annually, review and, if necessary, revise the final rule promulgated pursuant to subparagraph (A). The Administrator may promulgate such regulations as are necessary to carry out the functions of the Administrator under this section. 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 section as the Administrator determines to be appropriate. Sections 113, 114, 304, and 307 of the Clean Air Act ( 42 U.S.C. 7413 , 7414, 7604, 7607) shall apply to this section and any rule, rulemaking, or regulation promulgated by the Administrator pursuant to this section as though this section were expressly included in title VI of that Act ( 42 U.S.C. 7671 et seq.). Subject to subparagraph (B), during the 5-year period beginning on December 27, 2020 , and with respect to an exclusive use for which a mandatory allocation of allowances is provided under subsection (e)(4)(B)(iv)(I), no State or political subdivision of a State may enforce a statute or administrative action restricting the management or use of a regulated substance within that exclusive use. Subject to clause (ii), if, pursuant to subclause (I) of subsection (e)(4)(B)(v), the Administrator authorizes an additional period under subclause (II) of that subsection for the production or consumption of a regulated substance for an exclusive use described in subparagraph (A), no State or political subdivision of a State may enforce a statute or administrative action restricting the management or use of the regulated substance within that exclusive use for the duration of that additional period. The period for which the limitation under clause (i) applies shall not exceed 5 years from the date on which the period described in subparagraph (A) ends.