[Congressional Record Volume 166, Number 156 (Thursday, September 10, 2020)]
[Senate]
[Pages S5555-S5559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2655. Mr. KENNEDY (for himself, Mr. Barrasso, and Mr. Carper)
submitted an amendment intended to be proposed by him to the bill S.
2657, to support innovation in advanced geothermal research and
development, and for other purposes; which was ordered to lie on the
table; as follows:
At the appropriate place, insert the following:
SEC. ___. AMERICAN INNOVATION AND MANUFACTURING.
(a) Short Title.--This section may be cited as the
``American Innovation and Manufacturing Act of 2020''.
(b) Definitions.--In this section:
(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 subsection (e).
(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 subsection (e)(1)(C).
(5) Exchange value.--The term ``exchange value'' means the
value assigned to a regulated substance in accordance with
subsections (c) and (e), 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 reclamation, 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 subsection (e)(1)(B).
(9) Reclaim; reclamation.--The terms ``reclaim'' and
``reclamation'' mean--
(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 subsection
(c)(1); and
(B) a substance included as a regulated substance by the
Administrator under subsection (c)(3).
(c) Listing of Regulated Substances.--
(1) 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
------------------------------------------------------------------------
[[Page S5556]]
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.
------------------------------------------------------------------------
(2) Review.--The Administrator may--
(A) review the exchange values listed in the table
contained in paragraph (1) on a periodic basis; and
(B) 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.
(3) Other regulated substances.--
(A) In general.--Subject to notice and opportunity for
public comment, the Administrator may designate a substance
not included in the table contained in paragraph (1) as a
regulated substance if--
(i) 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
paragraph (2)(B), of greater than 53; and
(ii) the designation of the substance as a regulated
substance would be consistent with the purposes of this
section.
(B) Savings provision.--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.
(d) Monitoring and Reporting Requirements.--
(1) Production, import, and export level reports.--
(A) 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--
(i) produced, imported, and exported;
(ii) reclaimed;
(iii) destroyed by a technology approved by the
Administrator;
(iv) used and entirely consumed (except for trace
quantities) in the manufacture of another chemical; or
(v) used as a process agent.
(B) Requirements.--
(i) Signed and attested.--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.)).
(ii) No further reports required.--A report under
subparagraph (A) 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 subclause (I) has been met.
(iii) Baseline period.--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.
(2) Coordination.--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.
(e) Phase-down of Production and Consumption of Regulated
Substances.--
(1) Baselines.--
(A) In general.--Subject to subparagraph (D), the
Administrator shall establish for the phase-down of regulated
substances--
(i) a production baseline for the production of all
regulated substances in the United States, as described in
subparagraph (B); and
(ii) a consumption baseline for the consumption of all
regulated substances in the United States, as described in
subparagraph (C).
(B) Production baseline described.--The production baseline
referred to in subparagraph (A)(i) is the quantity equal to
the sum of--
(i) 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
(ii) 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.
(C) Consumption baseline described.--The consumption
baseline referred to in subparagraph (A)(ii) is the quantity
equal to the sum of--
(i) 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
(ii) 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.
(D) Exchange values.--
(i) In general.--For purposes of subparagraphs (B) and (C),
the Administrator shall use the following exchange values for
hydrochlorofluorocarbons and chlorofluorocarbons:
------------------------------------------------------------------------
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
------------------------------------------------------------------------
(ii) Review.--The Administrator may--
(I) review the exchange values listed in the tables
contained in clause (i) on a periodic basis; and
(II) subject to notice and opportunity for public comment,
adjust the exchange values solely on the basis of--
(aa) publicly available, peer-
reviewed scientific data; and
(bb) other information consistent with widely used or
commonly accepted existing exchange values.
(2) Production and consumption phase-down.--
(A) In general.--During the period beginning on January 1
of each year listed in the table contained in subparagraph
(C) and ending on December 31 of the year before the next
year listed on that table, except as otherwise permitted
under this section, no person shall--
(i) produce a quantity of a regulated substance without a
corresponding quantity of production allowances, except as
provided in paragraph (5); or
(ii) consume a quantity of a regulated substance without a
corresponding quantity of consumption allowances.
(B) Compliance.--For each year listed on the table
contained in subparagraph (C), 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--
(i) the production baseline or consumption baseline, as
applicable; and
(ii) the applicable percentage listed on the table
contained in subparagraph (C).
(C) Relation to baseline.--On January 1 of each year listed
in the following table, the Administrator shall apply the
applicable percentage, as described in subparagraph (A):
[[Page S5557]]
------------------------------------------------------------------------
Percentage of Production Percentage of
Date Baseline 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
------------------------------------------------------------------------
(D) Allowances.--
(i) Quantity.--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.
(ii) Nature of allowances.--
(I) In general.--An allowance allocated under this
section--
(aa) does not constitute a property right; and
(bb) is a limited authorization for the production or
consumption of a regulated substance under this section.
(II) Savings provision.--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).
(3) Regulations regarding production and consumption of
regulated substances.--Not later than 270 days after the date
of enactment of this Act, which shall include a period of
notice and opportunity for public comment, the Administrator
shall issue a final rule--
(A) phasing down the production of regulated substances in
the United States through an allowance allocation and trading
program in accordance with this section; and
(B) 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).
(4) Exceptions; essential uses.--
(A) Feedstocks and process agents.--Except for the
reporting requirements described in subsection (d)(1), this
section does not apply to--
(i) a regulated substance that is used and entirely
consumed (except for trace quantities) in the manufacture of
another chemical; or
(ii) 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.
(B) Essential uses.--
(i) In general.--Beginning on the date of enactment of this
Act and subject to paragraphs (2) and (3) and clauses (ii)
and (iii), the Administrator may, after considering technical
achievability, commercial demands, safety, and other relevant
factors, including overall economic costs and environmental
impacts compared to historical trends, allocate a quantity of
allowances for a period of not more than 5 years for the
production and consumption of a regulated substance
exclusively for the use of the regulated substance in an
application, if--
(I) no safe or technically achievable substitute will be
available during the applicable period for that application;
and
(II) 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 reclaiming, prior production, or prior import, is
insufficient to accommodate the application.
(ii) Petition.--If the Administrator receives a petition
requesting the designation of an application as an essential
use under clause (i), the Administrator shall--
(I) not later than 180 days after the date on which the
Administrator receives the petition--
(aa) make the complete petition available to the public;
and
(bb) when making the petition available to the public under
item (aa), propose and seek public comment on--
(AA) a determination of whether to designate the
application as an essential use; and
(BB) if the Administrator proposes to designate the
application as an essential use, making the requisite
allocation of allowances; and
(II) not later than 270 days after the date on which the
Administrator receives the petition, take final action on the
petition.
(iii) Limitation.--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 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.
(iv) Mandatory allocations.--
(I) In general.--Notwithstanding clause (i) and subject to
clause (iii) and paragraphs (2) and (3), for the 5-year
period beginning on the date of enactment of this Act, the
Administrator shall allocate the full quantity of allowances
necessary, based on projected, current, and historical
trends, for the production or consumption of a regulated
substance for the exclusive use of the regulated substance in
an application solely for--
(aa) a propellant in metered-dose inhalers;
(bb) defense sprays;
(cc) structural composite preformed polyurethane foam for
marine use and trailer use;
(dd) the etching of semiconductor material or wafers and
the cleaning of chemical vapor deposition chambers within the
semiconductor manufacturing sector;
(ee) mission-critical military end uses, such as armored
vehicle engine and shipboard fire suppression systems and
systems used in deployable and expeditionary applications;
and
(ff) onboard aerospace fire suppression.
(II) Requirement.--The allocation of allowances under
subclause (I) shall be determined through a rulemaking.
(v) Review.--
(I) In general.--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.
(II) Extension.--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.
(5) Domestic manufacturing.--Notwithstanding paragraph
(2)(A)(i), 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--
(A) the authorization is--
(i) for a renewable period of not more than 5 years; and
(ii) subject to notice and opportunity for public comment;
and
(B) the production--
(i) is at a facility located in the United States;
(ii) is solely for export to, and use in, a foreign country
that is not subject to the prohibition in subsection (j)(1);
and
(iii) would not violate paragraph (2)(B).
(f) Accelerated Schedule.--
(1) In general.--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).
(2) Requirements.--Any regulations promulgated under this
subsection--
(A) shall--
(i) apply uniformly to the allocation of production and
consumption allowances for regulated substances, in
accordance with subsection (e)(3);
(ii) ensure that there will be sufficient quantities of
regulated substances, including substances available from
reclaiming, prior production, or prior import, to meet the
needs for--
(I) applications that receive an allocation under clause
(i) of subsection (e)(4)(B); and
(II) all applications that receive a mandatory allocation
under items (aa) through (ff) of clause (iv)(I) of that
subsection; and
(iii) foster continued reclamation of and transition from
regulated substances; and
(B) 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).
(3) Petition.--
(A) 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 paragraph (1).
(B) Requirement.--A petition submitted under subparagraph
(A) shall--
(i) be made at such time, in such manner, and containing
such information as the Administrator shall require; and
(ii) include a showing by the petitioner that there are
data to support the petition.
(C) Timelines.--
(i) In general.--If the Administrator receives a petition
under subparagraph (A), the Administrator shall--
(I) not later than 180 days after the date on which the
Administrator receives the petition--
(aa) make the complete petition available to the public;
and
(bb) 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
(II) not later than 270 days after the date on which the
Administrator receives the petition, take final action on the
petition.
(ii) Factors for determination.--In making a determination
to grant or deny a petition submitted under subparagraph (A),
the
[[Page S5558]]
Administrator shall, to the extent practicable, factor in--
(I) the best available data, including relevant publicly
available and peer-reviewed scientific data;
(II) the availability of substitutes for uses of the
regulated substance that is the subject of the petition,
taking into account technological achievability, commercial
demands, 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;
(III) overall economic costs and environmental impacts, as
compared to historical trends; and
(IV) the remaining phase-down period for regulated
substances under the final rule issued under subsection
(e)(3), if applicable.
(iii) Regulations.--After receiving public comment with
respect to the proposal under clause (i)(I)(bb), if the
Administrator makes a final determination to grant a petition
under subparagraph (A), the final regulations with respect to
the petition shall--
(I) 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
(II) meet the requirements of paragraph (2).
(D) Publication.--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).
(E) Insufficient information.--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.
(4) Date of effectiveness.--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.
(5) Review.--
(A) In general.--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, 2025 (for the first review), by January 1, 2030
(for the second review), and at least once every 5 years
thereafter.
(B) Public availability.--The Administrator shall make the
results of a review conducted under subparagraph (A) publicly
available.
(6) Savings provision.--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).
(g) Exchange Authority.--
(1) Transfers.--Not later than 270 days after the date of
enactment of this Act, which shall include a period of notice
and opportunity for public comment, the Administrator shall
promulgate a final regulation that governs the transfer of
allowances for the production of regulated substances under
subsection (e)(3)(A) that uses--
(A) the applicable exchange values described in the table
contained in subsection (c)(1); or
(B) the exchange value described in the rule designating
the substance as a regulated substance under subsection
(c)(3).
(2) Requirements.--The final rule promulgated pursuant to
paragraph (1) shall--
(A) 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;
(B) 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--
(i) exceeds the reduction otherwise applicable to the
transferor under this section;
(ii) exceeds the quantity of production represented by the
production allowances transferred to the transferee; and
(iii) would not have occurred in the absence of the
transaction; and
(C) provide for the trading of consumption allowances in
the same manner as is applicable under this subsection to the
trading of production allowances.
(h) Management of Regulated Substances.--
(1) 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--
(A) a regulated substance;
(B) a substitute for a regulated substance;
(C) the reclaiming of a regulated substance used as a
refrigerant; or
(D) the reclaiming of a substitute for a regulated
substance used as a refrigerant.
(2) Reclaiming.--
(A) In general.--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.
(B) 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.
(3) Coordination.--In promulgating regulations to carry out
this subsection, the Administrator may coordinate those
regulations with any other regulations promulgated by the
Administrator that involve--
(A) the same or a similar practice, process, or activity
regarding the servicing, repair, disposal, or installation of
equipment; or
(B) reclaiming.
(4) Inapplicability.--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.
(5) Small business grants.--
(A) Definition of small business concern.--In this
paragraph, the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632).
(B) Establishment.--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.
(C) Matching funds.--The non-Federal share of a project
carried out with a grant under this paragraph shall be not
less than 25 percent.
(D) Authorization of appropriations.--There is authorized
to be appropriated to carry out this paragraph $5,000,000 for
each of fiscal years 2021 through 2023.
(i) Technology Transitions.--
(1) Authority.--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.
(2) Negotiated rulemaking.--
(A) Consideration required.--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, United States Code (commonly
known as the ``Negotiated Rulemaking Act of 1990'').
(B) Negotiated rulemakings.--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 that were not
negotiated using that procedure.
(C) No negotiated rulemaking.--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.
(3) Petitions.--
(A) In general.--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
may include a request that the Administrator negotiate with
stakeholders in accordance with paragraph (2)(A).
(B) Response.--The Administrator shall grant or deny a
petition under subparagraph (A) not later than 180 days after
the date of receipt of the petition.
(C) Requirements.--
(i) Explanation.--If the Administrator denies a petition
under subparagraph (B), the Administrator shall publish in
the Federal Register an explanation of the denial.
(ii) Final rule.--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.
(iii) Publication of petitions.--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.
(4) Factors for determination.--In carrying out a
rulemaking using the procedure
[[Page S5559]]
described in paragraph (2) or making a determination to grant
or deny a petition submitted under paragraph (3), the
Administrator shall, to the extent practicable, factor in--
(A) the best available data, including relevant publicly
available and peer-reviewed scientific data;
(B) 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,
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;
(C) overall economic costs and environmental impacts, as
compared to historical trends; and
(D) the remaining phase-down period for regulated
substances under the final rule issued under subsection
(e)(3), if applicable.
(5) Evaluation.--In carrying out this subsection, the
Administrator shall--
(A) 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
(B) make the evaluation under subparagraph (A) available to
the public.
(6) Effective date of rules.--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.
(7) Applicability.--
(A) Definition of retrofit.--In this paragraph, the term
``retrofit'' means to upgrade existing equipment where the
regulated substance is changed, which--
(i) includes the conversion of equipment to achieve system
compatibility; and
(ii) may include changes in lubricants, gaskets, filters,
driers, valves, o-rings, or equipment components for that
purpose.
(B) Applicability of rules.--A rule promulgated under this
subsection shall not apply to--
(i) 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
(ii) except for a retrofit application, equipment in
existence in a sector or subsector before the date of
enactment of this Act.
(j) International Cooperation.--
(1) In general.--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 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 section.
(2) Transfers.--Pursuant to paragraph (1), a person in the
United States may engage in a trade or transfer of a
production allowance--
(A) to a person in a foreign country if, at the time of the
transfer, the Administrator revises the number of allowances
for production under subsection (e)(2), 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--
(i) the maximum production level permitted for the
applicable regulated substance in the year of the transfer
under this section, less the production allowances
transferred;
(ii) the maximum production level permitted for the
applicable regulated substances in the transfer year under
applicable law, less the production allowances transferred;
and
(iii) 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
(B) 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
subsection.
(3) Effect of transfers on production limits.--The
Administrator may--
(A) reduce the production limits established under
subsection (e)(2)(B) as required as a prerequisite to a
transfer described in paragraph (2)(A); or
(B) 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).
(4) Regulations.--The Administrator shall--
(A) not later than 1 year after the date of enactment of
this Act, promulgate a final rule to carry out this
subsection; and
(B) not less frequently than annually, review and, if
necessary, revise the final rule promulgated pursuant to
subparagraph (A).
(k) Relationship to Other Law.--
(1) Implementation.--
(A) Rulemakings.--The Administrator may promulgate such
regulations as are necessary to carry out the functions of
the Administrator under this section.
(B) 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
section as the Administrator determines to be appropriate.
(C) 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 section and any rule, rulemaking, or regulation
promulgated by the Administrator pursuant to this section as
though this section were expressly included in each of those
sections, as applicable, and the requirements of this section
were part of that Act (42 U.S.C. 7401 et seq.).
(2) Preemption.--
(A) In general.--Subject to subparagraph (B), during the 5-
year period beginning on the date of enactment of this Act,
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.
(B) Extension.--
(i) In general.--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.
(ii) Limitation.--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.
____________________