SEC. 101. Reauthorization of Diesel Emissions Reduction Program.
Section 797(a) of the Energy Policy Act of 2005 (42 U.S.C. 16137(a)) is amended by striking “ 2016” and inserting “ 2024”.
Division S — Innovation for the Environment
DIVISION S Innovation for the Environment
SEC. 102. Encouraging Projects to Reduce Emissions.
Short Title.— This section may be cited as the “Utilizing Significant Emissions with Innovative Technologies Act” or the “USE IT Act”.
Research, Investigation, Training, and Other Activities.— Section 103 of the Clean Air Act (42 U.S.C. 7403) is amended—
in subsection (c)(3), in the first sentence of the matter preceding subparagraph (A), by striking “ percursors” and inserting “ precursors”; and
in subsection (g)—
by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and indenting appropriately;
in the undesignated matter following subparagraph (D) (as so redesignated)—
in the second sentence, by striking “ The Administrator” and inserting the following:
“(5) Coordination and avoidance of duplication.—The Administrator”
; and
in the first sentence, by striking “ Nothing” and inserting the following:
“(4) Effect of subsection.—Nothing”
in the matter preceding subparagraph (A) (as so redesignated)—
in the third sentence, by striking “ Such program” and inserting the following:
“(3) Program inclusions.—The program under this subsection”
in the second sentence—
by inserting “ States, institutions of higher education,” after “ scientists,”; and
by striking “ Such strategies and technologies shall be developed” and inserting the following:
“(2) Participation requirement.—Such strategies and technologies described in paragraph (1) shall be developed”
; and
in the first sentence, by striking “ In carrying out” and inserting the following:
“(1) In general.—In carrying out”
; and
by adding at the end the following:
“(6) Certain carbon dioxide activities.—
“(A) In general.—In carrying out paragraph (3)(A) with respect to carbon dioxide, the Administrator—
“(i) is authorized to carry out the activities described in subparagraph (B); and
“(ii) shall carry out the activities described in subparagraph (C).
“(B) Direct air capture research.—
“(i) Definitions.—In this subparagraph:
“(I) Board.—The term ‘Board’ means the Direct Air Capture Technology Advisory Board established by clause (iii)(I).
“(II) Dilute.—The term ‘dilute’ means a concentration of less than 1 percent by volume.
“(III) Direct air capture.—
“(aa) In general.—The term ‘direct air capture’, with respect to a facility, technology, or system, means that the facility, technology, or system uses carbon capture equipment to capture carbon dioxide directly from the air.
“(bb) Exclusion.—The term ‘direct air capture’ does not include any facility, technology, or system that captures carbon dioxide—
“(AA) that is deliberately released from a naturally occurring subsurface spring; or
“(BB) using natural photosynthesis.
“(IV) Intellectual property.—The term ‘intellectual property’ means—
“(aa) an invention that is patentable under title 35, United States Code; and
“(bb) any patent on an invention described in item (aa).
“(ii) Technology prizes.—
“(I) In general.—Not later than 1 year after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act, the Administrator, in consultation with the Secretary of Energy, is authorized to establish a program to provide financial awards on a competitive basis for direct air capture from media in which the concentration of carbon dioxide is dilute.
“(II) Duties.—In carrying out this clause, the Administrator shall—
“(aa) subject to subclause (III), develop specific requirements for—
“(AA) the competition process; and
“(BB) the demonstration of performance of approved projects;
“(bb) offer financial awards for a project designed—
“(AA) to the maximum extent practicable, to capture more than 10,000 tons of carbon dioxide per year;
“(BB) to operate in a manner that would be commercially viable in the foreseeable future (as determined by the Board); and
“(CC) to improve the technologies or information systems that enable monitoring and verification methods for direct air capture projects; and
“(cc) to the maximum extent practicable, make financial awards to geographically diverse projects, including at least—
“(AA) 1 project in a coastal State; and
“(BB) 1 project in a rural State.
“(III) Public participation.—In carrying out subclause (II)(aa), the Administrator shall—
“(aa) provide notice of and, for a period of not less than 60 days, an opportunity for public comment on, any draft or proposed version of the requirements described in subclause (II)(aa); and
“(bb) take into account public comments received in developing the final version of those requirements.
“(iii) Direct air capture technology advisory board.—
“(I) Establishment.—The Administrator may establish an advisory board to be known as the ‘Direct Air Capture Technology Advisory Board’.
“(II) Composition.—The Board, on the establishment of the Board, shall be composed of 9 members appointed by the Administrator, who shall provide expertise in—
“(aa) climate science;
“(bb) physics;
“(cc) chemistry;
“(dd) biology;
“(ee) engineering;
“(ff) economics;
“(gg) business management; and
“(hh) such other disciplines as the Administrator determines to be necessary to achieve the purposes of this subparagraph.
“(III) Term; vacancies.—
“(aa) Term.—A member of the Board shall serve for a term of 6 years.
“(bb) Vacancies.—A vacancy on the Board—
“(AA) shall not affect the powers of the Board; and
“(BB) shall be filled in the same manner as the original appointment was made.
“(IV) Initial meeting.—Not later than 30 days after the date on which all members of the Board have been appointed, the Board shall hold the initial meeting of the Board.
“(V) Meetings.—The Board shall meet at the call of the Chairperson or on the request of the Administrator.
“(VI) Quorum.—A majority of the members of the Board shall constitute a quorum, but a lesser number of members may hold hearings.
“(VII) Chairperson and vice chairperson.—The Board shall select a Chairperson and Vice Chairperson from among the members of the Board.
“(VIII) Compensation.—Each member of the Board may be compensated at not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level V of the Executive Schedule under section 5316 of title 5, United States Code, for each day during which the member is engaged in the actual performance of the duties of the Board.
“(IX) Duties.—The Board shall—
“(aa) advise the Administrator on carrying out the duties of the Administrator under this subparagraph; and
“(bb) provide other assistance and advice as requested by the Administrator.
“(iv) Intellectual property.—
“(I) In general.—As a condition of receiving a financial award under this subparagraph, an applicant shall agree to vest the intellectual property of the applicant derived from the technology in 1 or more entities that are incorporated in the United States.
“(II) Reservation of license.—The United States—
“(aa) may reserve a nonexclusive, nontransferable, irrevocable, paid-up license, to have practiced for or on behalf of the United States, in connection with any intellectual property described in subclause (I); but
“(bb) shall not, in the exercise of a license reserved under item (aa), publicly disclose proprietary information relating to the license.
“(III) Transfer of title.—Title to any intellectual property described in subclause (I) shall not be transferred or passed, except to an entity that is incorporated in the United States, until the expiration of the first patent obtained in connection with the intellectual property.
“(v) Authorization of appropriations.—There is authorized to be appropriated to carry out this subparagraph $35,000,000, to remain available until expended.
“(vi) Termination of authority.—Notwithstanding section 14 of the Federal Advisory Committee Act (5 U.S.C. App.), the Board and all authority provided under this subparagraph shall terminate not later than 12 years after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act.
“(C) Deep saline formation report.—
“(i) Definition of deep saline formation.—
“(I) In general.—In this subparagraph, the term ‘deep saline formation’ means a formation of subsurface geographically extensive sedimentary rock layers saturated with waters or brines that have a high total dissolved solids content and that are below the depth where carbon dioxide can exist in the formation as a supercritical fluid.
“(II) Clarification.—In this subparagraph, the term ‘deep saline formation’ does not include oil and gas reservoirs.
“(ii) Report.—In consultation with the Secretary of Energy, and, as appropriate, with the head of any other relevant Federal agency and relevant stakeholders, not later than 1 year after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act, the Administrator shall prepare, submit to Congress, and make publicly available a report that includes—
“(I) a comprehensive identification of potential risks and benefits to project developers associated with increased storage of carbon dioxide captured from stationary sources in deep saline formations, using existing research;
“(II) recommendations for managing the potential risks identified under subclause (I), including potential risks unique to public land; and
“(III) recommendations for Federal legislation or other policy changes to mitigate any potential risks identified under subclause (I).
“(D) GAO report.—Not later than 5 years after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act, the Comptroller General of the United States shall submit to Congress a report that—
“(i) identifies all Federal grant programs in which a purpose of a grant under the program is to perform research on carbon capture and utilization technologies, including direct air capture technologies; and
“(ii) examines the extent to which the Federal grant programs identified pursuant to clause (i) overlap or are duplicative.”
Carbon Utilization Program.—
In general.— Subtitle F of title IX of the Energy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended by inserting after section 968 the following: Note: See Part 2 for pages 134 Stat. 2248 through 134 Stat. 3305.
“SEC. 969. CARBON UTILIZATION PROGRAM.
“(a) In General.—The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall carry out a program of research, development, demonstration, and commercialization relating to carbon utilization.
“(b) Activities.—Under the program described in subsection (a), the Secretary shall—
“(1) assess and monitor—
“(A) potential changes in lifecycle carbon dioxide and other greenhouse gas emissions; and
“(B) other environmental safety indicators of new technologies, practices, processes, or methods used in enhanced hydrocarbon recovery as part of the activities authorized under section 963;
“(2) identify and evaluate novel uses for carbon (including conversion of carbon oxides) that, on a full lifecycle basis, achieve a permanent reduction, or avoidance of a net increase, in carbon dioxide in the atmosphere, for use in commercial and industrial products such as—
“(A) chemicals;
“(B) plastics;
“(C) building materials;
“(D) fuels;
“(E) cement;
“(F) products of coal utilization in power systems or in other applications; and
“(G) other products with demonstrated market value;
“(3) identify and assess carbon capture technologies for industrial systems; and
“(4) identify and assess alternative uses for coal that result in zero net emissions of carbon dioxide or other pollutants, including products derived from carbon engineering, carbon fiber, and coal conversion methods.
“(c) Prioritization.—In supporting demonstration and commercialization research under the program described in subsection (a), the Secretary shall prioritize consideration of projects that—
“(1) have access to a carbon dioxide emissions stream generated by a stationary source in the United States that is capable of supplying not less than 250 metric tons per day of carbon dioxide for research;
“(2) have access to equipment for testing small-scale carbon dioxide utilization technologies, with onsite access to larger test bays for scale-up; and
“(3) have 1 or more existing partnerships with a National Laboratory, an institution of higher education, a private company, or a State or other government entity.
“(d) Coordination.—The Secretary shall coordinate the activities authorized under this section with the activities authorized in section 969A as part of a single consolidated program of the Department.
“(e) Authorization of Appropriations.—There is authorized to be appropriated to the Secretary to carry out this section $50,000,000, to remain available until expended.”
Study.—
In general.— The Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency, shall seek to enter into an agreement with the National Academies of Sciences, Engineering, and Medicine to conduct a study that assesses the barriers and opportunities relating to the commercial application of carbon dioxide in the United States.
Contents.— The study under subparagraph (A) shall—
analyze the technical feasibility, related challenges, and impacts of—
commercializing carbon dioxide; and
as part of that commercialization—
creating a national system of carbon dioxide pipelines and geologic sequestration sites;
mitigating environmental and landowner impacts; and
regional economic challenges and regional economic opportunities;
identify potential markets, industries, or sectors that may benefit from greater access to commercial carbon dioxide;
assess the current state of infrastructure and any necessary updates to that infrastructure to allow for the integration of safe and reliable carbon dioxide transportation, utilization, and storage;
estimate the economic, climate, and environmental impacts of any well-integrated national carbon dioxide pipeline system; and
suggest policies that could improve the economic impact of that system;
assess the global status and progress of existing chemical and biological carbon utilization technologies that utilize waste carbon (including carbon dioxide, carbon monoxide, methane, and biogas) from power generation, biofuels production, and other industrial processes relevant to minimizing net greenhouse gas emissions;
identify emerging technologies for and approaches to carbon utilization that show promise for scale-up, demonstration, deployment, and commercialization relevant to minimizing net greenhouse gas emissions;
analyze the factors associated with making carbon utilization technologies relevant to minimizing net greenhouse gas emissions viable at a commercial scale, including carbon waste stream availability, economics, market capacity, and energy and lifecycle requirements;
assess the major technical challenges associated with increasing the commercial viability of carbon reuse technologies; and
identify the research and development questions that will address those challenges;
assess current research efforts, including engineering and computational research, that address the challenges described in clause (viii)(I); and
identify any gaps in the current research portfolio; and
develop a comprehensive research agenda that addresses both long- and short-term research needs and opportunities for carbon capture utilization and storage technologies relevant to minimizing net greenhouse gas emissions.
Technical amendment.— The table of contents for the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 600) is amended by inserting after the item relating to section 968 the following:
“Sec. 969. Carbon utilization program.”.
Improvement of Permitting Process for Carbon Dioxide Capture and Infrastructure Projects.—
Inclusion of carbon capture infrastructure projects.— Section 41001(6) of the FAST Act (42 U.S.C. 4370m(6)) is amended—
in subparagraph (A)—
in the matter preceding clause (i), by inserting “ carbon capture,” after “ manufacturing,”;
in clause (i)(III), by striking “ or” at the end;
by redesignating clause (ii) as clause (iii); and
by inserting after clause (i) the following:
“(ii) is covered by a programmatic plan or environmental review developed for the primary purpose of facilitating development of carbon dioxide pipelines; or”
; and
by adding at the end the following:
“(C) Inclusion.—For purposes of subparagraph (A), construction of infrastructure for carbon capture includes construction of—
“(i) any facility, technology, or system that captures, utilizes, or sequesters carbon dioxide emissions, including projects for direct air capture (as defined in paragraph (6)(B)(i) of section 103(g) of the Clean Air Act (42 U.S.C. 7403(g)); and
“(ii) carbon dioxide pipelines.”
Development of carbon capture, utilization, and sequestration report, permitting guidance, and regional permitting task force.—
Definitions.— In this paragraph:
Carbon capture, utilization, and sequestration projects.— The term “carbon capture, utilization, and sequestration projects” includes projects for direct air capture (as defined in paragraph (6)(B)(i) of section 103(g) of the Clean Air Act (42 U.S.C. 7403(g))).
Efficient, orderly, and responsible.— The term “efficient, orderly, and responsible” means, with respect to development or the permitting process for carbon capture, utilization, and sequestration projects and carbon dioxide pipelines, a process that promotes environmental, health, and safety protections while maintaining a process that is completed in an expeditious manner.
Report.—
In general.— Not later than 180 days after the date of enactment of this Act, the Chair of the Council on Environmental Quality (referred to in this section as the “Chair”), in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Energy, the Secretary of the Interior, the Secretary of Transportation, the Executive Director of the Federal Permitting Improvement Council, and the head of any other relevant Federal agency (as determined by the President), shall prepare a report that—
compiles all existing relevant Federal permitting and review information and resources for project applicants, agencies, and other stakeholders interested in the deployment and impact of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines, including—
the appropriate points of interaction with Federal agencies;
clarification of the permitting responsibilities and authorities among Federal agencies; and
best practices and templates for permitting in an efficient, orderly, and responsible manner, including through improved staff capacity and training at Federal permitting agencies;
inventories current or emerging activities that transform captured carbon dioxide into a product of commercial value, or as an input to products of commercial value;
inventories existing initiatives and recent publications that analyze or identify priority carbon dioxide pipelines needed to enable efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects at increased scale;
identifies gaps in the current Federal regulatory framework for the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines;
identifies Federal financing mechanisms available to project developers; and
identifies public engagement opportunities through existing laws, including under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Submission; publication.— The Chair shall—
submit the report under clause (i) to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce, the Committee on Natural Resources, and the Committee on Transportation and Infrastructure of the House of Representatives; and
as soon as practicable, make the report publicly available.
Guidance.—
In general.— After submission of the report under subparagraph (B)(ii), but not later than 1 year after the date of enactment of this Act, the Chair shall submit guidance consistent with that report to all relevant Federal agencies that—
facilitates reviews associated with the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines; and
supports the efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines.
Requirements.—
In general.— The guidance under clause (i) shall address applicable requirements under—
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.);
the Clean Air Act (42 U.S.C. 7401 et seq.);
the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.);
division A of subtitle III of title 54, United States Code (formerly known as the “National Historic Preservation Act”);
the Migratory Bird Treaty Act (16 U.S.C. 703 et seq.);
the Act of June 8, 1940 (16 U.S.C. 668 et seq.) (commonly known as the “Bald and Golden Eagle Protection Act”);
chapter 601 of title 49, United States Code (including those provisions formerly cited as the Natural Gas Pipeline Safety Act of 1968 (Public Law 90–481; 82 Stat. 720) and the Hazardous Liquid Pipeline Safety Act of 1979 (Public Law 96–129; 93 Stat. 1003)); and
any other Federal law that the Chair determines to be appropriate.
Environmental reviews.— The guidance under clause (i) shall include direction to States and other interested parties for the development of programmatic environmental reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for carbon capture, utilization, and sequestration projects and carbon dioxide pipelines.
Public involvement.— The guidance under clause (i) shall be subject to the public notice, comment, and solicitation of information procedures under section 1506.6 of title 40, Code of Federal Regulations (or a successor regulation).
Submission; publication.— The Chair shall—
submit the guidance under clause (i) to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce, the Committee on Natural Resources, and the Committee on Transportation and Infrastructure of the House of Representatives; and
as soon as practicable, make the guidance publicly available.
Evaluation.— The Chair shall—
periodically evaluate the reports of the task forces under subparagraph (D)(v) and, as necessary, revise the guidance under clause (i); and
each year, submit to the Committee on Environment and Public Works of the Senate, the Committee on Energy and Commerce, the Committee on Natural Resources, and the Committee on Transportation and Infrastructure of the House of Representatives, and relevant Federal agencies a report that describes any recommendations for rules, revisions to rules, or other policies that would address the issues identified by the task forces under subparagraph (D)(v).
Task forces.—
Establishment.— Not later than 18 months after the date of enactment of this Act, the Chair shall establish not less than 2 task forces, which shall each cover a different geographical area with differing demographic, land use, or geological issues—
to identify permitting and other challenges and successes that permitting authorities and project developers and operators face in permitting projects in an efficient, orderly, and responsible manner; and
to improve the performance of the permitting process and regional coordination for the purpose of promoting the efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines.
Members and selection.—
In general.— The Chair shall—
develop criteria for the selection of members to each task force; and
select members for each task force in accordance with item (aa) and subclause (II).
Members.— Each task force—
shall include not less than 1 representative of each of—
the Environmental Protection Agency;
the Department of Energy;
the Department of the Interior;
the Pipeline and Hazardous Materials Safety Administration;
any other Federal agency the Chair determines to be appropriate;
any State that requests participation in the geographical area covered by the task force;
developers or operators of carbon capture, utilization, and sequestration projects or carbon dioxide pipelines; and
nongovernmental membership organizations, the primary mission of which concerns protection of the environment;
at the request of a Tribal or local government, may include a representative of—
not less than 1 local government in the geographical area covered by the task force; and
not less than 1 Tribal government in the geographical area covered by the task force; and
shall include 1 expert in each of the following fields—
health and environmental effects, including exposure evaluation; and
pipeline safety.
Meetings.—
In general.— Each task force shall meet not less than twice each year.
Joint meeting.— To the maximum extent practicable, the task forces shall meet collectively not less than once each year.
Duties.— Each task force shall—
inventory existing or potential Federal and State approaches to facilitate reviews associated with the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines, including best practices that—
avoid duplicative reviews to the extent permitted by law;
engage stakeholders early in the permitting process; and
make the permitting process efficient, orderly, and responsible;
develop common models for State-level carbon dioxide pipeline regulation and oversight guidelines that can be shared with States in the geographical area covered by the task force;
provide technical assistance to States in the geographical area covered by the task force in implementing regulatory requirements and any models developed under subclause (II);
inventory current or emerging activities that transform captured carbon dioxide into a product of commercial value, or as an input to products of commercial value;
identify any priority carbon dioxide pipelines needed to enable efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects at increased scale;
identify gaps in the current Federal and State regulatory framework and in existing data for the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines;
identify Federal and State financing mechanisms available to project developers; and
develop recommendations for relevant Federal agencies on how to develop and research technologies that—
can capture carbon dioxide; and
would be able to be deployed within the region covered by the task force, including any projects that have received technical or financial assistance for research under paragraph (6) of section 103(g) of the Clean Air Act (42 U.S.C. 7403(g)).
Report.— Each year, each task force shall prepare and submit to the Chair and to the other task forces a report that includes—
any recommendations for improvements in efficient, orderly, and responsible issuance or administration of Federal permits and other Federal authorizations required under a law described in subparagraph (C)(ii)(I); and
any other nationally relevant information that the task force has collected in carrying out the duties under clause (iv).
Evaluation.— Not later than 5 years after the date of enactment of this Act, the Chair shall—
reevaluate the need for the task forces; and
submit to Congress a recommendation as to whether the task forces should continue.
SEC. 103. American Innovation and Manufacturing.
Short Title.— This section may be cited as the “American Innovation and Manufacturing Act of 2020”.
Definitions.— In this section:
Administrator.— The term “Administrator” means the Administrator of the Environmental Protection Agency.
Allowance.— The term “allowance” means a limited authorization for the production or consumption of a regulated substance established under subsection (e).
Consumption.— The term “consumption”, with respect to a regulated substance, means a quantity equal to the difference between—
a quantity equal to the sum of—
the quantity of that regulated substance produced in the United States; and
the quantity of the regulated substance imported into the United States; and
the quantity of the regulated substance exported from the United States.
Consumption baseline.— The term “consumption baseline” means the baseline established for the consumption of regulated substances under subsection (e)(1)(C).
Exchange value.— The term “exchange value” means the value assigned to a regulated substance in accordance with subsections (c) and (e), as applicable.
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.
Produce.—
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).
Exclusions.— The term “produce” does not include—
the manufacture of a regulated substance that is used and entirely consumed (except for trace quantities) in the manufacture of another chemical; or
the reclamation, reuse, or recycling of a regulated substance.
Production baseline.— The term “production baseline” means the baseline established for the production of regulated substances under subsection (e)(1)(B).
Reclaim; reclamation.— The terms “reclaim” and “reclamation” mean—
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
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).
Recover.— The term “recover” means the process by which a regulated substance is—
removed, in any condition, from equipment; and
stored in an external container, with or without testing or processing the regulated substance.
Regulated substance.— The term “regulated substance” means—
a substance listed in the table contained in subsection (c)(1); and
a substance included as a regulated substance by the Administrator under subsection (c)(3).
Listing of Regulated Substances.—
List of regulated substances.— 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. |
Review.— The Administrator may—
review the exchange values listed in the table contained in paragraph (1) on a periodic basis; and
subject to notice and opportunity for public comment, adjust the exchange values solely on the basis of—
the best available science; and
other information consistent with widely used or commonly accepted existing exchange values.
Other regulated substances.—
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—
the substance—
is a chemical substance that is a saturated hydrofluorocarbon; and
has an exchange value, as determined by the Administrator in accordance with the basis described in paragraph (2)(B), of greater than 53; and
the designation of the substance as a regulated substance would be consistent with the purposes of this section.
Savings provision.—
In general.— 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.
Authority of administrator.— Clause (i) does not affect the authority of the Administrator to regulate under this Act a regulated substance within a blend of substances.
Monitoring and Reporting Requirements.—
Production, import, and export level reports.—
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—
produced, imported, and exported;
reclaimed;
destroyed by a technology approved by the Administrator;
used and entirely consumed (except for trace quantities) in the manufacture of another chemical; or
used as a process agent.
Requirements.—
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.)).
No further reports required.— A report under subparagraph (A) shall not be required from a person if the person—
permanently ceases production, importation, exportation, destruction, transformation, use as a process agent, or reclamation of all regulated substances; and
notifies the Administrator in writing that the requirement under subclause (I) has been met.
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.
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.
Phase-down of Production and Consumption of Regulated Substances.—
Baselines.—
In general.— Subject to subparagraph (D), the Administrator shall establish for the phase-down of regulated substances—
a production baseline for the production of all regulated substances in the United States, as described in subparagraph (B); and
a consumption baseline for the consumption of all regulated substances in the United States, as described in subparagraph (C).
Production baseline described.— The production baseline referred to in subparagraph (A)(i) is the quantity equal to the sum of—
the average annual quantity of all regulated substances produced in the United States during the period—
beginning on January 1, 2011; and
ending on December 31, 2013; and
the quantity equal to the sum of—
15 percent of the production level of hydrochlorofluorocarbons in calendar year 1989; and
0.42 percent of the production level of chlorofluorocarbons in calendar year 1989.
Consumption baseline described.— The consumption baseline referred to in subparagraph (A)(ii) is the quantity equal to the sum of—
the average annual quantity of all regulated substances consumed in the United States during the period—
beginning on January 1, 2011; and
ending on December 31, 2013; and
the quantity equal to the sum of—
15 percent of the consumption level of hydrochlorofluorocarbons in calendar year 1989; and
0.42 percent of the consumption level of chlorofluorocarbons in calendar year 1989.
Exchange values.—
In general.— 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 |
Review.— The Administrator may—
review the exchange values listed in the tables contained in clause (i) on a periodic basis; and
subject to notice and opportunity for public comment, adjust the exchange values solely on the basis of—
the best available science; and
other information consistent with widely used or commonly accepted existing exchange values.
Production and consumption phase-down.—
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—
produce a quantity of a regulated substance without a corresponding quantity of production allowances, except as provided in paragraph (5);
consume a quantity of a regulated substance without a corresponding quantity of consumption allowances; or
hold, use, or transfer any production allowance or consumption allowance allocated under this section except in accordance with regulations promulgated by the Administrator pursuant to subsection (g).
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—
the production baseline or consumption baseline, as applicable; and
the applicable percentage listed on the table contained in subparagraph (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):
| Date | Percentage of Production Base- line | Percentage of 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 |
Allowances.—
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.
Nature of allowances.—
In general.— An allowance allocated under this section—
does not constitute a property right; and
is a limited authorization for the production or consumption of a regulated substance under this section.
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).
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—
phasing down the production of regulated substances in the United States through an allowance allocation and trading program in accordance with this section; and
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).
Exceptions; essential uses.—
Feedstocks and process agents.— Except for the reporting requirements described in subsection (d)(1), this section does not apply to—
a regulated substance that is used and entirely consumed (except for trace quantities) in the manufacture of another chemical; or
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.
Essential uses.—
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, by rule, after considering technical achievability, commercial demands, affordability for residential and small business consumers, 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—
no safe or technically achievable substitute will be available during the applicable period for that application; and
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 production or import, is insufficient to accommodate the application.
Petition.— If the Administrator receives a petition requesting the designation of an application as an essential use under clause (i), the Administrator shall—
not later than 180 days after the date on which the Administrator receives the petition—
make the complete petition available to the public; and
when making the petition available to the public under item (aa), propose and seek public comment on—
a determination of whether to designate the application as an essential use; and
if the Administrator proposes to designate the application as an essential use, making the requisite allocation of allowances; and
not later than 270 days after the date on which the Administrator receives the petition, take final action on the petition.
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 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.
Mandatory allocations.—
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—
a propellant in metered-dose inhalers;
defense sprays;
structural composite preformed polyurethane foam for marine use and trailer use;
the etching of semiconductor material or wafers and the cleaning of chemical vapor deposition chambers within the semiconductor manufacturing sector;
mission-critical military end uses, such as armored vehicle engine and shipboard fire suppression systems and systems used in deployable and expeditionary applications; and
onboard aerospace fire suppression.
Requirement.— The allocation of allowances under subclause (I) shall be determined through a rulemaking.
Review.—
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.
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.
Domestic manufacturing.— Notwithstanding paragraph (2)(A)(i), the Administrator may, by rule, 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—
the authorization is—
for a renewable period of not more than 5 years; and
subject to notice and opportunity for public comment; and
the production—
is at a facility located in the United States;
is solely for export to, and use in, a foreign country that is not subject to the prohibition in subsection (j)(1); and
would not violate paragraph (2)(B).
Accelerated Schedule.—
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).
Requirements.— Any regulations promulgated under this subsection—
shall—
apply uniformly to the allocation of production and consumption allowances for regulated substances, in accordance with subsection (e)(3);
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—
applications that receive an allocation under clause (i) of subsection (e)(4)(B); and
all applications that receive a mandatory allocation under items (aa) through (ff) of clause (iv)(I) of that subsection; and
foster continued reclamation of and transition from regulated substances; and
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).
Petition.—
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).
Requirement.— A petition submitted under subparagraph (A) shall—
be made at such time, in such manner, and containing such information as the Administrator shall require; and
include a showing by the petitioner that there are data to support the petition.
Timelines.—
In general.— If the Administrator receives a petition under subparagraph (A), the Administrator shall—
not later than 180 days after the date on which the Administrator receives the petition—
make the complete petition available to the public; and
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
not later than 270 days after the date on which the Administrator receives the petition, take final action on the petition.
Factors for determination.— In making a determination to grant or deny a petition submitted under subparagraph (A), the Administrator shall, to the extent practicable, factor in—
the best available data;
the availability of substitutes for uses of the regulated substance that is the subject of the petition, taking into account technological achievability, commercial demands, affordability for residential and small business consumers, 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;
overall economic costs and environmental impacts, as compared to historical trends; and
the remaining phase-down period for regulated substances under the final rule issued under subsection (e)(3), if applicable.
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—
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
meet the requirements of paragraph (2).
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).
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.
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.
Review.—
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, 2026 (for the first review), by January 1, 2031 (for the second review), and at least once every 5 years thereafter.
Public availability.— The Administrator shall make the results of a review conducted under subparagraph (A) publicly available.
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).
Exchange Authority.—
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—
the applicable exchange values described in the table contained in subsection (c)(1); or
the exchange value described in the rule designating the substance as a regulated substance under subsection (c)(3).
Requirements.— The final rule promulgated pursuant to paragraph (1) shall—
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;
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—
exceeds the reduction otherwise applicable to the transferor under this section;
exceeds the quantity of production represented by the production allowances transferred to the transferee; and
would not have occurred in the absence of the transaction; and
provide for the trading of consumption allowances in the same manner as is applicable under this subsection to the trading of production allowances.
Management of Regulated Substances.—
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 regulated substance;
a substitute for a regulated substance;
the reclaiming of a regulated substance used as a refrigerant; or
the reclaiming of a substitute for a regulated substance used as a refrigerant.
Reclaiming.—
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.
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.
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—
the same or a similar practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment; or
reclaiming.
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.
Small business grants.—
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).
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.
Matching funds.— The non-Federal share of a project carried out with a grant under this paragraph shall be not less than 25 percent.
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.
Technology Transitions.—
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.
Negotiated rulemaking.—
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”).
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 under this subsection that were not negotiated using that procedure.
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.
Petitions.—
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 shall include a request that the Administrator negotiate with stakeholders in accordance with paragraph (2)(A).
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.
Requirements.—
Explanation.— If the Administrator denies a petition under subparagraph (B), the Administrator shall publish in the Federal Register an explanation of the denial.
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.
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.
Factors for determination.— In carrying out a rulemaking using the procedure 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—
the best available data;
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, affordability for residential and small business consumers, 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;
overall economic costs and environmental impacts, as compared to historical trends; and
the remaining phase-down period for regulated substances under the final rule issued under subsection (e)(3), if applicable.
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, overall economic costs and environmental impacts, and other relevant factors; and
make the evaluation under subparagraph (A) available to the public, including the factors associated with the safety of those substitutes.
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.
Applicability.—
Definition of retrofit.— In this paragraph, the term “retrofit” means to upgrade existing equipment where the regulated substance is changed, which—
includes the conversion of equipment to achieve system compatibility; and
may include changes in lubricants, gaskets, filters, driers, valves, o-rings, or equipment components for that purpose.
Applicability of rules.— A rule promulgated under this subsection shall not apply to—
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
except for a retrofit application, equipment in existence in a sector or subsector before the date of enactment of this Act.
International Cooperation.—
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.
Transfers.— Pursuant to paragraph (1), a person in the United States may engage in a trade or transfer of a production allowance—
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—
the maximum production level permitted for the applicable regulated substance in the year of the transfer under this section, less the production allowances transferred;
the maximum production level permitted for the applicable regulated substances in the transfer year under applicable law, less the production allowances transferred; and
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
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.
Effect of transfers on production limits.— The Administrator may—
reduce the production limits established under subsection (e)(2)(B) as required as a prerequisite to a transfer described in paragraph (2)(A); or
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).
Regulations.— The Administrator shall—
not later than 1 year after the date of enactment of this Act, promulgate a final rule to carry out this subsection; and
not less frequently than annually, review and, if necessary, revise the final rule promulgated pursuant to subparagraph (A).
Relationship to Other Law.—
Implementation.—
Rulemakings.— The Administrator may promulgate such regulations as are necessary to carry out the functions of the Administrator under this section.
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.
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 title VI of that Act (42 U.S.C. 7671 et seq.).
Preemption.—
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.
Extension.—
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.
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.