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 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 term “production baseline” means the baseline established for the production of regulated substances under subsection (e)(1)(B).
Each of the following substances, and any isomers of such a substance, shall be a regulated substance:
Chemical Name |
Common Name |
Exchange Value |
---|---|---|
CHF2CHF2 |
HFC–134 |
1100 |
CH2FCF3 |
HFC–134a |
1430 |
CH2FCHF2 |
HFC–143 |
353 |
CHF2CH2CF3 |
HFC–245fa |
1030 |
CF3CH2CF2CH3 |
HFC–365mfc |
794 |
CF3CHFCF3 |
HFC–227ea |
3220 |
CH2FCF2CF3 |
HFC–236cb |
1340 |
CHF2CHFCF3 |
HFC–236ea |
1370 |
CF3CH2CF3 |
HFC–236fa |
9810 |
CH2FCF2CHF2 |
HFC–245ca |
693 |
CF3CHFCHFCF2CF3 |
HFC–43–10mee |
1640 |
CH2F2 |
HFC–32 |
675 |
CHF2CF3 |
HFC–125 |
3500 |
CH3CF3 |
HFC–143a |
4470 |
CH3F |
HFC–41 |
92 |
CH2FCH2F |
HFC–152 |
53 |
CH3CHF2 |
HFC–152a |
124 |
CHF3 |
HFC–23 |
14800. |
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.
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.)).
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.
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 |
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 |
||
---|---|---|
Chemical Name |
Common Name |
Exchange Value |
CFC13 |
CFC–11 |
4750 |
CF2C12 |
CFC–12 |
10900 |
C2F3C13 |
CFC–113 |
6130 |
C2F4C12 |
CFC–114 |
10000 |
C2F5C1 |
CFC–115 |
7370 |
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 |
---|---|---|
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.
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).
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.
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.
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).
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).
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).
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.
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.
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.
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.
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 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.