[Senate Executive Report 117-2]
[From the U.S. Government Publishing Office]
117th Congress } { Exec. Rept.
SENATE
2d Session } { 117-2
======================================================================
AMENDMENT TO MONTREAL PROTOCOL
(``KIGALI AMENDMENT'')
_______
May 26, 2022.--Ordered to be printed
_______
Mr. Menendez, from the Committee on Foreign Relations,
submitted the following
REPORT
[To accompany Treaty Doc. 117-1]
The Committee on Foreign Relations, to which was referred
the Amendment to the Montreal Protocol on Substances that
Deplete the Ozone Layer (the ``Montreal Protocol''), Adopted at
Kigali on October 15, 2016, by the Twenty-Eighth Meeting of the
Parties to the Montreal Protocol (``The Kigali Amendment'')
(Treaty Doc. 117-1), having considered the same, reports
favorably thereon with one declaration, as indicated in the
resolution of advice and consent, and recommends that the
Senate give its advice and consent to ratification thereof, as
set forth in this report and the accompanying resolution of
advice and consent.
CONTENTS
Page
I. Purpose..........................................................1
II. Background.......................................................1
III. Implementing Legislation.........................................2
IV. Committee Action.................................................3
V. Committee Recommendation and Comments............................3
VI. Text of Resolution of Advice and Consent to Ratification.........3
I. Purpose
The purpose of the Kigali Amendment to the Montreal
Protocol is to update the Montreal Protocol to add to its
phasedown framework 18 harmful chemicals called
hydrofluorocarbons (HFCs), which will facilitate the transition
to next-generation, more efficient refrigerant chemicals,
including those developed and manufactured by U.S. companies
and workers.
II. Background
The Treaty would be the fifth amendment to the Montreal
Protocol; the Senate provided advice and consent to the
Montreal Protocol and to the prior four amendments on an
overwhelming, bipartisan basis. Major U.S. companies and
industry groups, including those in the chemicals, retail, and
manufacturing industries, strongly support U.S. ratification of
the Kigali Amendment.
The principal features of the Kigali Amendment closely
parallel control measures for other controlled substances under
the Montreal Protocol. The Kigali Amendment provides for the
gradual phasedown of the production and consumption of 18
listed HFCs between 2019 and 2036, subject to certain
exemptions. The Amendment contains a stepwise phasedown
schedule that would require a 10 percent reduction upon entry
into force for the United States, a 40 percent reduction by
2024, a 70 percent reduction by 2029, and an 80 percent
reduction by 2034. The last step of the phasedown would be an
85 percent reduction by 2036.
The Kigali Amendment amends the trade provisions in Article
4 of the Montreal Protocol to treat HFCs like other controlled
substances, that is, Parties to the Amendment are banned from
trading in HFCs with a non-Party, beginning in 2033. The Kigali
Amendment similarly amends the Montreal Protocol's licensing
provisions under Article 4B, to treat HFCs like other
controlled substances by requiring each Party to establish a
system for licensing the import and export of new, used,
recycled, and reclaimed HFCs. The Amendment extends the
Montreal Protocol's reporting regime in Article 7 to HFCs, by
requiring Parties to report annually on their production and
consumption of HFCs. The Amendment also requires Parties to
destroy, to the extent practicable, byproduct emissions of HFC-
23, a highly potent greenhouse gas generated from the
production of some substances listed in Annexes C and F of the
Montreal Protocol, and to report on these efforts. Provisions
related to the financial mechanism in Article 10 extend the
scope of the financial mechanism to support implementation of
the Amendment.
A business community witness testified before the committee
that transitioning away from HFCs, including through U.S.
ratification and global implementation of the Kigali Amendment,
will generate new U.S. jobs and revenue for U.S. businesses.
Further, the President's transmittal package cited a study
conducted in 2018 by Inforum, the University of Maryland's
Interindustry Forecasting Project, on behalf of the Air-
conditioning, Heating, and Refrigeration Institute and the
Alliance for Responsible Atmospheric Policy, which estimated
that joining the Kigali Amendment and its global implementation
will result in the creation of 33,000 new domestic
manufacturing jobs, $4.8 billion annually of increased exports,
and $12.5 billion of increased economic output per year.
The Kigali Amendment was negotiated among Parties to the
Montreal Protocol, including the United States, and reflects
significant input from the United States government and U.S.
industry. It entered into force on January 1, 2019 and
currently has 131 Parties.
III. Implementing Legislation
The Kigali Amendment is not self-executing; however, no
further legislation is required to implement it. On December
27, 2020, the American Innovation and Manufacturing (AIM) Act
of 2020 was enacted, which provides the Executive Branch with
the necessary authorities to phase-down the production and
consumption of HFCs in the United States, consistent with the
Kigali Amendment. The U.S. Government is already implementing
the AIM Act.
IV. Committee Action
The Committee on Foreign Relations held a hearing to
consider the Kigali Amendment on April 7, 2022. On May 4, 2022,
the committee considered the Kigali Amendment and ordered it
favorably reported by voice vote, with a quorum present.
V. Committee Recommendation and Comments
The Committee on Foreign Relations believes that
ratification of the Kigali Amendment will advance the interests
of U.S. businesses and consumers, by contributing to the global
adoption of next-generation refrigerant technologies in which
U.S. industry leads and by opening markets to U.S. businesses.
As a consequence, it will generate revenue and create U.S.
jobs, while addressing harmful chemicals. Meanwhile, citing
Article 4 of the Kigali Amendment, government and industry
witnesses emphasized in their testimony before the committee
the serious risks associated with U.S. businesses being locked
out of the global trade in HFCs with the large and growing
number of Parties to the treaty, if the United States fails to
ratify the treaty. The committee therefore urges the Senate to
act promptly to give advice and consent to ratification of the
Kigali Amendment, as set forth in this report and the
accompanying resolution of advice and consent.
The committee has included in its resolution of advice and
consent one proposed declaration, which states that the Kigali
Amendment is not self-executing. This declaration is consistent
with the views of the executive branch. Historically, the
Senate had not routinely included statements regarding the
self-executing nature of treaties in resolutions of advice and
consent, but in light of the Supreme Court decision, Medellin
v. Texas, 552 U.S. 491 (2008), the committee has determined
that a clear statement in the resolution continues to be
warranted. A further discussion of the committee's views on
this matter can be found in Section VIII of Executive Report
110-12.
VI. Text of Resolution of Advice and Consent
to Ratification
Resolved (two-thirds of the Senators present concurring
therein),
SECTION 1. SENATE ADVICE AND CONSENT SUBJECT TO A DECLARATION
The Senate advises and consents to the ratification of the
Amendment to the Montreal Protocol on Substances that Deplete
the Ozone Layer (the ``Montreal Protocol''), adopted at Kigali
on October 15, 2016, by the Twenty-Eighth Meeting of the
Parties to the Montreal Protocol (``The Kigali Amendment'')
(Treaty Doc. 117-1), subject to the declaration of section 2.
SECTION 2. DECLARATION
The advice and consent of the Senate under section 1 is
subject to the following declaration:
The Kigali Amendment is not self-executing.
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