S.Amdt. 1504

SA 1504. Mr. KENNEDY (for himself, Mr. Carper, Mr. Cassidy, Mr.
Coons, Ms. Collins, Mr. Whitehouse, Mr. Young, Mrs. Feinstein, Mr.
Moran, Mr. Schatz, Mr. Graham, Mr. Booker, Ms. Ernst, Mr. Merkley, Mr.
Cotton, Mr. Van Hollen, Mr. Grassley, Mr. Markey, Mr. Boozman, Mr.
Jones, Mr. Blunt, Mr. Blumenthal, Mr. Perdue, Mr. Heinrich, Mrs. Hyde-
Smith, Mr. Cardin, Mr. Burr, Mr. Murphy, and Mr. King) submitted an
amendment intended to be proposed to amendment SA 1407 proposed by Ms.
Murkowski 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) Findings; Sense of Congress.--
(1) Findings.--Congress finds that--
(A) industries in the United States that use and produce
fluorocarbons--
(i) contribute more than $158,000,000,000 annually in goods
and services to the economy of the United States; and
(ii) provide employment to more than 700,000 individuals,
with an industry-wide payroll of more than $32,000,000,000;
(B) the support and promotion of the technological
leadership of the United States in fluorocarbon production
and related products, equipment, and other uses provided by
this section is expected--
(i) to create approximately 33,000 new manufacturing jobs
in the United States; and
(ii) to add approximately $12,500,000,000 per year to the
economy of the United States;
(C) supporting and promoting the technological leadership
of the United States in fluorocarbon production and related
products, equipment, and other uses also creates a
significant new export advantage for manufacturers of
fluorinated compounds and related products and equipment in
the United States;
(D) the new markets for fluorinated products and equipment
created by this section are expected to increase the share of
the United States of the global fluorocarbon product and
equipment market by 25 percent (to 9 percent from 7.2
percent); and
(E) this section incentivizes the investment of
approximately $5,000,000,000 in the United States through
fiscal year 2025 to exploit the new markets for fluorinated
products and equipment created by this section.
(2) Sense of congress.--It is the sense of Congress that
the Administrator should provide for a safe hydrofluorocarbon
transition by ensuring that heating, ventilation, air
conditioning, and refrigeration practitioners are positioned
to comply with safe servicing, repair, disposal, or
installation procedures.
(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 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.--The term ``reclaim'' means--
(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
----------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------

[[Page S1496]]

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
subpagraph (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
----------------------------------------------------------------------------------------------------------------

[[Page S1497]]

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 paragraph (1) 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):

----------------------------------------------------------------------------------------------------------------
Percentage of Production        Percentage of Consumption
Date                                   Baseline                        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, 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.--
(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.--Not earlier than January 1, 2034, the
Administrator may, after notice and opportunity for public
comment, authorize the production or consumption of a
regulated substance for a period of not more than 5 years in
a quantity in excess of the quantities authorized under
paragraph (2)(A) for the exclusive use of the regulated
substance in an application with respect to which the
Administrator determines that--

(I) no substitute will be available during the applicable
period for that application, considering technological
achievability, commercial demands, safety, and other relevant
factors; and
(II) the total supply of the regulated substance 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) Limitation.--No person receiving an authorization
under clause (i) may, on an annual basis, produce or consume
a quantity of a regulated substance that is greater than 10
percent of the quantity that the person produced or consumed
to contribute to the production baseline or the consumption
baseline, as applicable.
(iii) Review.--

(I) In general.--For each application for which the
Administrator has authorized the production or consumption,
as applicable, of a regulated substance under clause (i), 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, considering technological achievability,
commercial demands, safety, and other relevant factors.
(II) Extension.--If the Administrator determines, subject
to notice and opportunity for public comment, that no
substitute will be available for an application for which the
Administrator granted a waiver under clause (i) during a
subsequent period, the Administrator may authorize the
production or consumption, as applicable, of any regulated
substance used in the application for not more than an
additional 5 years in a quantity in excess of the quantity
authorized under paragraph (2)(A) 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, 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) if,
based on the availability of substitutes for regulated
substances, the Administrator determines that a more-
stringent schedule is practicable, taking into account
technological

[[Page S1498]]

achievability, commercial demands, safety, and other relevant
factors, including the quantities of regulated substances
available from reclaiming, prior production, or prior import.
(2) Requirement.--In making a determination on whether to
implement a more-stringent phase-down schedule under
paragraph (1), the Administrator shall--
(A) consider--
(i) the remaining phase-down period for regulated
substances under subsection (e), if applicable; and
(ii) relevant, publicly available, peer-reviewed scientific
data;
(B) apply uniformly any regulations promulgated pursuant to
paragraph (1) to the allocation of production and consumption
allowances for regulated substances, in accordance with
subsection (e)(3); and
(C) adjust the production and consumption allowances
accordingly.
(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) Petitions.--The Administrator shall grant or deny the
petition under subparagraph (A) by not later than 270 days
after the date on which the Administrator receives the
petition.
(ii) Regulations.--If the Administrator grants a petition
under subparagraph (A), the final regulations with respect to
the petition shall be promulgated by not later than 1 year
after the date on which the Administrator grants the
petition.
(D) Denial.--If the Administrator denies a petition under
subparagraph (A), the Administrator shall publish a
description of the reason for the denial.
(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) Applicability.--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,
2024.
(g) Exchange Authority.--
(1) Transfers.--Not later than 270 days after the date of
enactment of this Act, 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)(A) 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.
(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) Transition.--
(A) Proposals.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall publish in the
Federal Register a proposal of 1 or more dates after which
the use of a regulated substance in a sector or subsector
shall be restricted.
(B) Final rules.--Not later than 18 months after the date
on which the Administrator publishes a proposed rule under
subparagraph (A) in the Federal Register, the Administrator
shall issue a final rule for that proposed rule.
(4) Petitions.--
(A) In general.--A person may petition the Administrator to
issue 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 issue 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 publish in
the Federal Register that petition in full.
(5) Criteria.--In issuing a rule under paragraph (1), the
Administrator shall consider the need--
(A) to promote and support domestic economic development;
(B) to maximize protections for human health and the
environment;
(C) to minimize costs for the production, use, and
reclaiming of regulated substances;
(D) to maximize flexibility for the recovery, reclaiming,
and reuse of regulated substances;
(E) to ensure consumer safety;
(F) for the availability of substitutes, taking into
account technological achievability, commercial demands,
safety, and other relevant factors, including lead times for
equipment conversion; and
(G) to minimize any additional costs to consumers.
(6) Evaluation.--In carrying out this subsection, the
Administrator shall evaluate substitutes for regulated
substances in a sector or subsector, taking into account
technological achievability, commercial demands, safety, and
other relevant factors.
(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.

[[Page S1499]]

(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 regulations 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) Authority.--On issuance of a final rule under
subsection (e)(3) for the production and consumption of
regulated substances, notwithstanding any other provision of
law, the Administrator shall have no authority to regulate
the production or consumption of regulated substances under
section 614(b) of the Clean Air Act (42 U.S.C. 7671m(b)).
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