---
kind: "section"
citation: "42 U.S.C. § 7671f"
title: "42"
title_heading: "The Public Health and Welfare"
number: "7671f"
heading: "Exchange authority"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/7671f"
units:
  - "Chapter 85 — Air Pollution Prevention and Control"
  - "Subchapter VI — Stratospheric Ozone Protection"
---

# §7671f. Exchange authority

- (a) **Transfers—** The [Administrator](/usc/42/7602.md?p=a) shall, within 10 months after November 15, 1990, promulgate rules under this subchapter providing for the issuance of allowances for the [production](/usc/42/7671.md?p=11) of class I and II substances in accordance with the requirements of this subchapter and governing the transfer of such allowances. Such rules shall insure that the transactions under the authority of this section will result in greater total reductions in the [production](/usc/42/7671.md?p=11) in each year of class I and [class II substances](/usc/42/7671.md?p=4) than would occur in that year in the absence of such transactions.
- (b) **Interpollutant transfers—**
  - (1) The rules under this section shall permit a [production](/usc/42/7671.md?p=11) allowance for a substance for any year to be transferred for a [production](/usc/42/7671.md?p=11) allowance for another substance for the same year on an ozone depletion weighted basis.
  - (2) Allowances for substances in each group of [class I substances](/usc/42/7671.md?p=3) (as listed pursuant to [section 7671a of this title](/usc/42/7671a.md)) may only be transferred for allowances for other substances in the same Group.
  - (3) The [Administrator](/usc/42/7602.md?p=a) shall, as appropriate, establish groups of [class II substances](/usc/42/7671.md?p=4) for trading purposes and assign [class II substances](/usc/42/7671.md?p=4) to such groups. In the case of [class II substances](/usc/42/7671.md?p=4), allowances may only be transferred for allowances for other [class II substances](/usc/42/7671.md?p=4) that are in the same Group.
- (c) **Trades with other persons—** The rules under this section shall permit 2 or more [persons](/usc/42/7602.md?p=e) to transfer [production](/usc/42/7671.md?p=11) allowances (including interpollutant transfers which meet the requirements of subsections [(a)](#a) and [(b)](#b)) if the transferor of such allowances will be subject, under such rules, to an enforceable and quantifiable reduction in annual [production](/usc/42/7671.md?p=11) which—
  - (1) exceeds the reduction otherwise applicable to the transferor under this subchapter,
  - (2) exceeds the [production](/usc/42/7671.md?p=11) allowances transferred to the transferee, and
  - (3) would not have occurred in the absence of such transaction.
- (d) **Consumption—** The rules under this section shall also provide for the issuance of [consumption](/usc/42/7671.md?p=6) allowances in accordance with the requirements of this subchapter and for the trading of such allowances in the same manner as is applicable under this section to the trading of [production](/usc/42/7671.md?p=11) allowances under this section.

## Source credit

(July 14, 1955, ch. 360, title VI, § 607, as added Pub. L. 101–549, title VI, § 602(a), Nov. 15, 1990, 104 Stat. 2660.)