[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3448 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3448

 To reduce emissions of ozone depleting substances in order to protect 
   the climate and stratospheric ozone layer, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 2007

  Mr. Waxman introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
 To reduce emissions of ozone depleting substances in order to protect 
   the climate and stratospheric ozone layer, and for other purposes.

    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 ``Global Climate and Ozone Layer 
Protection Act of 2007''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Ozone depleting chemicals such as chlorofluorocarbons 
        (CFCs) and hydrochlorofluorocarbons (HCFCs) threaten human 
        health and 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 rivers 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 
        affect agricultural crops and aquatic organisms, such as 
        zooplankton and phytoplankton, with adverse consequences for 
        aquatic ecosystems.
            (4) September 2007 will be the 20th anniversary of the 
        signing of the Montreal Protocol on Substances that Deplete the 
        Ozone Layer, which set controls on the production and 
        consumption of ozone 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 dramatic climate 
        benefits. Between 1990 and 2010, the Montreal Protocol will 
        have eliminated the equivalent 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 delaying 
        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. Accelerating the 
        phase-out of HCFCs in a way that supports climate change 
        objectives could reduce emissions by the equivalent of 
        approximately 25 billion tons of carbon dioxide between 2010 
        and 2050. Further 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 destroyed. By accelerating the 
        phase-out of ozone depleting HCFCs and recovering and 
        destroying CFC and HCFC banks, the Parties to the Montreal 
        Protocol could achieve an immediate reduction in emissions from 
        both developed and developing countries, and further delay 
        global warming impacts.

SEC. 3. SENSE OF CONGRESS REGARDING MONTREAL PROTOCOL 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 Protocol to 
        mitigate global warming impacts, while ensuring continued 
        protection of the ozone layer, by focusing 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;
            (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 developing 
        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 consistent with 
        past practice so that an accelerated phase out of HCFCs can be 
        accomplished with maximum benefit for both ozone layer and 
        climate protection.

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 substance is 
        used as a fire suppression agent for military, commercial 
        aviation, industrial, space, or national 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 person to import 
any product manufactured after January 1, 2010, containing any class II 
substance that has been phased out of production and consumption under 
regulations 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 January 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 secured, and verified the destruction of three times this amount of 
class I or class II substances on an ozone depletion potential 
equivalent basis.
    ``(2) Effective January 1, 2012, and until December 31, 2014, it 
shall be unlawful for any person to produce or import an amount of any 
class II substance unless the Administrator certifies that the person 
has destroyed or secured, and verified the destruction of 1.2 times 
this amount of class I or class II substances on an ozone depletion 
potential equivalent basis.
    ``(3) Effective January 1, 2015, and until December 31, 2029, it 
shall be unlawful for any person to produce or import an amount of any 
class II substance unless the Administrator certifies that the person 
has destroyed or secured, and verified the destruction of two times 
this amount of class I or class II substances on an ozone depletion 
potential equivalent basis.
    ``(4) The Administrator shall, within 2 years after the enactment 
of this Act, but in no event later than December 31, 2009, promulgate 
regulations establishing standards and requirements for the 
certifications under paragraphs (1), (2) and (3). Such regulations must 
provide that--
            ``(A) in order for a person to receive certification from 
        the Administrator for the destruction of 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 destruction 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 quantity 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 convincing evidence that it is 
technically and economically infeasible to obtain material for 
destruction, the Administrator may adjust the offset ratio downward or, 
if necessary, waive the requirements of paragraphs (1), (2), or (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 following new paragraph after 
paragraph (2) and redesignating 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, distribution or offer for sale and 
distribution in interstate commerce, 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 standards and 
requirements shall become effective not later than 12 months after 
promulgation of the regulations.''.
    (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 substances,'' 
        after ``class I or class II substances'' in paragraph (1).
            (3) Inserting ``, or a substitute for such substance,'' 
        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 container 
which contains less than 20 pounds of such substitute.''.

SEC. 7. REFRIGERANT ENVIRONMENTAL MANAGEMENT COUNCIL.

    (a) Definitions.--For the purposes of this section:
            (1) The terms ``recover,'' ``recycle,'' and ``reclaim'' 
        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 refrigerants and controlled by the 
        Montreal Protocol.
            (5) The term ``hydrochlorofluorocarbons'' means halogenated 
        compounds containing carbon, hydrogen, chlorine and fluorine 
        used widely as a refrigerants and controlled by the Montreal 
        Protocol.
            (6) The term ``hydrofluorocarbons'' means halogenated 
        hydrocarbons in which the molecule contains hydrogen, fluorine, 
        and carbon but is absent of chlorine used widely as 
        refrigerants.
            (7) The term ``fluorocarbons'' means chlorofluorocarbons, 
        hydrochlorofluorocarbons or hydrofluorocarbons.
            (8) The term ``certified reclaimer'' means entities 
        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 operator'' 
        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 Administrator of 
        the U.S. Environmental Protection Agency.
            (12) The term ``Secretary'' means the U.S. Secretary 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 Management Council.
    (b) Establishment.--
            (1) Establishment of nonprofit organization.--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 fluorocarbon 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 fluorocarbon refrigerants, thereby reducing 
        emissions of these compounds.
            (2) Governance.--The Council shall be governed 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 refrigerant equipment manufacturers, 3 members 
        representing reclaimers, destruction process operators, 
        distributors, wholesalers, contractors or technicians, 3 
        employees of the U.S. Environmental Protection Agency, 3 
        employees of the U.S. Department of Commerce, and 5 public 
        members representing non-industry, non-government stakeholders. 
        The industry members shall be full-time employees or owners of 
        businesses in the industry. Only one person at a time from any 
        company or its affiliate may serve on the Board. Vacancies in 
        unfinished terms of Board members shall be filled in the same 
        manner as were the original appointments.
            (2) Establishment.--Within 90 days of the enactment of this 
        Act--
                    (A) the following representative industry 
                organizations may appoint the industry members of the 
                Board of Directors: Air-Conditioning and Refrigeration 
                Institute; Heating, Air conditioning & Refrigeration 
                Distributors International; and Alliance for 
                Responsible Atmospheric Policy;
                    (B) the Administrator shall appoint 3 EPA employees 
                and 5 public members to sit on the Board; and
                    (C) the Secretary shall appoint 3 Department of 
                Commerce employees to sit on the Board.
            (3) Representation.--In selecting the members of the Board 
        appointed pursuant to subparagraph (2)(a), due regard shall be 
        given to selecting members that are representative of the 
        industry and diverse geographic regions of the country, 
        including representation of--
                    (A) refrigerant producers and importers;
                    (B) original refrigerant equipment manufacturers; 
                and
                    (C) large and small companies among reclaimers, 
                destruction process operators, distributors, 
                wholesalers, contractors, or technicians.
            (4) Compensation.--Board members shall receive no 
        compensation for their services. Board members shall be 
        reimbursed for reasonable expenses related to their 
        participation in Council meetings.
            (5) Terms.--Board members shall serve terms of 3 years and 
        may serve not more than 2 full consecutive terms, except that 
        government board members may serve any number of consecutive 
        terms. Industry and public Board Members filling unexpired 
        terms may serve not more than a total of 7 consecutive 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 
        subcommittees, 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 Council shall establish procedures for the 
        solicitation of industry, nongovernmental, and government 
        comment and recommendations on any significant plans, programs, 
        and projects.
            (7) Administration expenses.--The administrative expenses 
        of operating the Council shall not exceed 10 percent of the 
        funds collected in any fiscal year.
            (8) Reimbursement.--The Council shall annually reimburse 
        the Administrator for costs incurred by the Federal Government 
        relating to the Council, except that such reimbursement for any 
        fiscal year shall not exceed the amount that the Administrator 
        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 recommend 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 
        accountant 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 Representatives 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, violations, and complaints regarding 
        the implementation of this Act.
            (11) Minutes.--The minutes of all meetings of the Board 
        shall be made available to and readily accessible 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 
        allocation or planned allocation of Council resources for each 
        program and project. Such report shall also include estimates 
        of the quantities and types of substances recycled and 
        destroyed as a result of the incentives provided under 
        subsection (e)(1).
    (d) Levies.--
            (1) Levy.--The Council shall have authority to institute 
        and collect a per pound levy, equally applied, on the domestic 
        production of all virgin HCFC 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. Thereafter, 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 
        approved 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 importers of all HCFC and HFC 
        refrigerants, and the importers of all HCFC and HFC 
        refrigerants contained 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 exported from the United States to another 
        country 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 collecting 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 
        imposed on any person who fails to remit or pay to the Council 
        any amount due under this Act.
            (5) Investment of funds.--Pending disbursement pursuant to 
        a program, plan, or project, the Council may invest funds 
        collected through levies, and any other funds received by the 
        Council, only in obligations of the United States or any agency 
        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 obligations fully guaranteed as 
        to principal and interest by the United States. Funds shall 
        only be disbursed for operating expenses, reimbursements to the 
        U.S. Environmental Protection Agency, programs approved by the 
        Board, and the provision of incentive payments under subsection 
        (e).
    (e) Disbursements.--
            (1) Incentive.--The Council shall have authority to provide 
        incentive payments, per pound of reclaimed and destroyed CFCs, 
        HCFCs, and HFCs, to entities that document that CFCs, HCFCs, 
        and HFCs have been reclaimed or destroyed by certified 
        processes. The initial incentive shall be $1.00 per pound. Any 
        change in the incentive amount must be approved by a two-thirds 
        vote of the Board.
            (2) Documenting procedures.--The Council shall establish 
        procedures to document that CFCs, HCFCs, and HFCs have been 
        reclaimed or destroyed. In establishing these procedures, the 
        Council shall consider regulations concerning reclamation and 
        destruction processes promulgated by the Administrator of the 
        Environmental Protection Agency under section 608 of the Clean 
        Air Act (42 U.S.C. 7671g).
    (f) Compliance.--
            (1) It shall be unlawful to sell virgin HCFC and HFC 
        refrigerants, all imported HCFC and HFC refrigerants, and 
        imported equipment containing HCFC and HFC refrigerants in the 
        United States on which the levy has not been paid.
            (2) The Council may bring suit in Federal court to compel 
        compliance with a levy assessed by the Council under this Act. 
        A successful action for compliance under this section may also 
        require payment by the defendant of the costs incurred by the 
        Council in bringing such action.
            (3) All refrigerant producers, importers, equipment 
        importers, and certified reclaimers and destruction process 
        operators shall file annual reports with the Administrator. The 
        reports shall contain, at a minimum, the amount of refrigerants 
        manufactured, imported, exported, reclaimed, and destroyed, and 
        the amount of refrigerants contained in imported equipment.
    (g) Penalties.--In the case of any person who sells refrigerants on 
which a levy has not been paid, the Administrator is authorized to take 
any of the actions provided for in section 113 of the Clean Air Act (42 
U.S.C. 7413).
    (h) Lobbying Restrictions.--No funds collected by the Council shall 
be used in any manner for influencing legislation or elections, except 
that the Council may recommend to the Administrator in writing changes 
in this Act or other statutes that would further the purposes of this 
Act.
    (i) Pricing.--In all cases, the price of refrigerants shall be 
determined by market forces. Consistent with the antitrust laws, the 
Council may take no action, nor may any provision of this Act be 
interpreted as establishing an agreement to pass along to consumers the 
cost of the levy provided for in subsection (d).
    (j) Reports.--Within 2 years after the date of enactment of this 
Act, and at least once every 2 years thereafter, the Secretary and the 
Administrator shall jointly prepare and submit to the House of 
Representatives Committee on Energy and Commerce and the Senate 
Committee on Environment and Public Works a report examining whether 
operation of the Council, in conjunction with the cumulative effects of 
market changes and Federal programs, (1) has had an effect on 
refrigerant consumers and (2) has had an effect on ozone layer 
depletion and climate change. The Secretary and Administrator shall 
consider and, to the extent practicable, shall include in the report 
submissions by refrigerant users, distributors and consumers, and shall 
consider whether there have been long-term and short-term effects on 
refrigerant prices as a result of Council activities and Federal 
programs. To the extent that the report demonstrates that there has 
been an adverse effect, the Secretary and Administrator shall include 
recommendations for correcting the situation.

SEC. 8. SUNWISE PROGRAM.

    The Administrator of the Environmental Protection Agency is 
authorized to carry out the mission and activities of the SunWise 
Program to raise awareness of ozone layer depletion and the potential 
health risks of overexposure to ultraviolet radiation as well as 
measures that can be taken to avoid such overexposure. There is 
authorized to be appropriated $5 million for fiscal year 2009 and $5 
million for each of the next 5 years to carry out this section.
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